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Exclusive Interview

Krishi Banks 140 loss-making branches made profitable in last 6 months: BKB MD

Published : Thursday, 8 February, 2024 at 12:00 AM  Count : 1324
Md Shawkat Ali Khan, Managing Director (MD) of the BKB, elaborated on initiatives and future plans of the bank in an exclusive interview with the Daily Observer correspondent Jibon Islam.


Bangladesh Krishi Bank (BKB), a bank for farmers, has been working to change the lot of the farmers, and in doing so it is playing a leading role in implementing governments agriculture policies.

The rural people need to be involved in a variety of jobs as per respective capacities. Rural development should focus on poverty reduction, increasing peoples economic power and improving overall economy of the country. The BKB usually plays vital role in this sector providing necessary monetary supports under its loan scheme.

However, the bank had been turned into a loss making project as most of the branches of the bank were losing concerns since years. In this situation, the bank has turned around and starting earning profits making its losing concern branches into a profitable one by taking new policy and initiative.

The initiatives have been taken while Md Shawkat Ali Khan has taken the charge of the Managing Director (MD) of the BKB. Shawkat Ali recently elaborated the initiatives and future plans of the banks in an exclusive interview with the Daily Observer.

Md Shawkat Ali said Bangladesh Krishi Bank had 465 loss-making branches when he had taken the charge. Out of this, 140 branches have already been upgraded to profit making ones in the last six months. As a result, the number of loss making branches has now reduced to 325.

He said, "We, Bangladesh Krishi Bank, want some more initiatives from the government for improving the farmers fortune. Our slogan is If the farmers live, the country lives. As per governments directives, we are giving the highest agricultural loan through the bank. There is a target of disbursing around Tk 6,800 crore as agricultural loan in the current fiscal year."

Up to January 30, Tk 4,619 crore was disbursed, according to the banks top official. Besides, BKB gives loans to the landless and marginal farmers for poverty alleviation through rearing cows and goats, growing fruit trees and forestation, Shawkat Ali Khan said and added there is no other bank that provides such loans.

Shawkat Ali said, "Taking the charge, I have taken a 100-day crash programme. In particular, for recovery of default loans, reduction of loss-making branches and activation of sluggish banking activities.

In the last six months, he has reached success on these issues. Initiatives have been taken to reward branches and individuals who collect more remittances. Maximum efforts are being given to disburse and collect agricultural loans. Besides, initiatives have been taken to disburse and recover the second highest amount of loans to the Small and Medium Enterprises (SME) sector.

There is a plan to bring down the losing branch to 100 in the future. He said that the number of Bangladesh Krishi Bank branches in the country is 1,038. Among them, 176 branches are located in the city, while the remaining 862 branches are located in villages or rural areas.

Appropriate initiatives have been taken to bring the remittances of expatriates to the country through these branches. The branch or officer through which more remittances will come are being rewarded. He said, in the current fiscal year, the target of agricultural loan distribution has been set at a total of Tk 35,000 crore.

Out of this, the target of disbursement of agricultural credit through Bangladesh Krishi Bank is Tk 6,800 crore.

Some 60 domestic and 9 foreign banks of the country will distribute the remaining Tk 28,200 crore of agricultural loans. In the previous financial year, the target of agricultural loans distribution was Tk 30,811 crore. Out of this, the target of loan disbursement through Bangladesh Krishi Bank is Tk 6,500 crore.

He said the amount of defaulted loans till June 30, 2023 was Tk 3,188 crore. Of this, Tk 511.45 crore has been collected till December 31, 2022. In the current financial year, the target of recovery of defaulted loans has been fixed at Tk 1,600 crore. Tk 224.41 crore has been collected till December 31, 2023.

He said in spite of natural disasters, floods and other adversities, the amount of default loans in the agricultural sector is very low. As of December 31, Krishi Banks gross non-performing loans stood at Tk 3,188 crore. An initiative has been taken to bring down the amount of defaulted loans to Tk 2,000 crore in the next 6 months.

In response to another question, he said, Bangladesh Kristi Bank is scattered all over the country.

Initiatives have been taken to collect money sent by expatriates through these branches. The remittance has set a target of Tk 8,000 crore for collection in the current financial year. In the last 6 months, the amount of remittances collected by expatriates stood at Tk 3,696.14 crore or 46 per cent of the total collection.

Md Shawkat Ali Khan said, while implementing the governments instructions, it is not possible to implement normal banking properly. However, in the last 6 months, we have reduced many loss-making branches and achieved success in recovering default loans. At the end of the year there is a possibility of success in collecting remittances from expatriates.



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