OVERVIEW OF RAJSHAHI KRISHI UNNAYAN BANK
Rajshahi Krishi Unnayan Bank (RAKUB) was established by the President's Ordinance No. 58 of 1986 (later replaced by 'Rajshahi Krishi Unnayan Bank Act, 2014'). It took over the operations of 253 branches of Bangladesh Krishi Bank of the then Rajshahi administrative division (presently Rajshahi and Rangpur divisions) and started functioning on March 15, 1987. There are 383 branches of the bank including LPO and Dhaka branch among which 194 are in Rajshahi and 187 in Rangpur division. Number of rural branches are 333 while urban 50. RAKUB is the only specialized nationalized bank having its head office outside Dhaka, i.e. at Rajshahi.
Authorized capital of the bank as determined by the government amounts to Tk. 10000 million and paid up capital Tk. 8250 million.
Board of Directors:
To steer the bank in accordance with the government policies there is a Board of Directors comprised of the chairman and ten other directors as appointed by the government. Besides, there is a three-member executive committee for deciding on emergency policy matters.
Though a specialized bank, RAKUB performs most deposit banking activities like commercial banks. Special products of the bank include deposit schemes like
- School Banking Account
- RAKUB Daily Profit Account (RDP)
- RAKUB Millionaire Deposit Scheme (RMDS)
- RAKUB Grihini Savings Scheme (RGSS)
- Krishok Savings Scheme (KSS)
- RAKUB Travelling Savings Scheme (RTSS)
- RAKUB Lakhopoti Savings Scheme (RLSS)
- RAKUB Grameen Pension Scheme (RGPS)
- RAKUB Bangabandhu Special Monthly Savings Scheme (RBSMS)
- RAKUB Double Money Scheme (RDMS)
- RAKUB Monthly Profit Scheme (RMPS)
RAKUB caters to financing of all the agricultural activities including
- SMALL & MEDIUM ENTERPRISES (SME)
- BB Refinance Scheme 10TK Account Holder (Short Term)
- Revolving Crops Credit (RCC)
- Farmer's Credit Limit (FCL)
- Agricultural Loans Medium Term General
- Agriculture Loan Medium Term Green Banking
- BB Refinance Scheme 10TK Account Holder (Medium Term)
- Agricultural Loans Medium Term for Freedom Fighter
The bank pays importance to financing poverty alleviation and employment generation activities, SME and other off-farm activities. The bank disburses 60 percent of its annual target for crop production. The bank’s outstanding loan amounts to Tk. 5,490.68 core and number of borrowers are 7,97,193 (as on 03.01.2020).
Foreign Aided Credit Projects:
1. North-west Crop Diversification Project (NCDP)
The ADB financed project finances for high-value crop production. Four NGOs namely BRAC, Proshika, RDRS and GKF draws loan from RAKUB and relends among farmers.
2. Small Enterprise Credit Program (SECP)
The project is jointly funded by the Royal Norwegian government and RAKUB. It aims at promotion of entrepreneurship in agro-based small enterprises and non-farm activities. The main objective of the project is to create employment through development of small enterprises. It gives priority to financing the women entrepreneurs. Maximum credit limit for a single enterprise is Taka 0.50 million. The project provides training to the entrepreneurs. A process is undergoing for converting the project into a subsidiary company of RAKUB.
Use of IT
Banks in Bangladesh have witnessed sea change in use of information technology during the recent years. To cope with the advancement RAKUB has intensified IT activities. At Present all branches (total 383) of the bank have been used off-line banking software. Besides the bank has been taken proper initiative to implement Online Real-time Core Banking Solution (CBS). A Time Bound Action Plan has been approved by RAKUB Board of Director to implement CBS. According to the Time Bound Action Plan all branches will be brought under CBS within January, 2021. Meanwhile total 40 branches including head office has been brought under CBS.
RAKUB at a Glance:
|Establishment||:||15 March 1987|
|Autdorized Capital||:||Tk. 1000 Crore|
|Paid up Capital||:||Tk. 825 Crore|
|Total No. of Branches||:||383|
|Region||:||Rajshahi & Rangpur Divisions|
|Area||:||34,513 Square KM|
|Upazila (administrative tier in between district & union)||:||125|
|Union (lowest administrative tier)||:||1100|
|Total Population||:||3.40 Crore|