RAKUB seeks Tk 6.75b capital injection

In a bid to scale up lending to agriculture and agro-based industries, and bolster food security, Rajshahi Krishi Unnayan Bank (RAKUB) has sought an additional Tk 6.75 billion in paid-up capital from the government, according to sources.

The state-run specialised bank has recently submitted a formal request to the secretary of the Financial Institutions Division (FID) to initiate the necessary steps in this regard.

RAKUB's current paid-up capital stands at Tk 8.25 billion. However, the FID has recently decided to raise it to Tk 15 billion. As RAKUB is a fully state-owned bank, the remaining amount is expected to be contributed by the government.

The bank operates 383 branches, including its Local Principal Office (LPO), and Dhaka branch. Of these, 194 are located in the Rajshahi division and 187 in Rangpur division. RAKUB has 333 rural branches and 50 in urban areas.

Its authorised capital currently stands at Tk 20 billion, and the bank reports no provision shortfall at present.

When contacted, a senior RAKUB official said: "We have requested the FID to provide the remaining amount of paid-up capital as per the division's decision. According to the existing policy, the full amount is to be provided by the government."

RAKUB, the largest lender to the agricultural sector in north-western Bangladesh, borrows funds at interest rates between 4.0 and 5.0 per cent to support its lending programmes.

These efforts contribute to the development of farmers and the broader agricultural sector in the region.

An FID official confirmed: "We are working on the matter. However, no final decision has been made yet."

RAKUB continues to operate its agricultural and rural loan programmes across the north and western regions by mobilising deposits from various sources at interest rates ranging between 9.0 and 11 per cent.

rezamumu@gmail.com