Annual Report 2007-2008

1.00 ESTABLISHMENT

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2.00 FUNCTIONS

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Rajshahi Krishi Unnayan Bank (RAKUB) was
established by the President's Ordinance No.58
of 1986 with the aim of providing institutional
agricultural credit for optimum utilization of
agricultural potentials of Rajshahi Division.
Taking over all the 253 branches and other
offices along with assets and liabilities of the
Bangladesh Krishi Bank within Rajshahi
Division, RAKUB started functioning on 15
March 1987.

3.00 CAPITAL

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As the largest development partner in the
northwest
region
Rajshahi
Krishi
Unnayan
Bank
aims
at
overall
development of the farmers and all the
sectors and sub-sectors of agriculture in this
region. Besides catering to agricultural
credit, financing agri-business and agrobased industries, activities related to socioeconomic
development
and
poverty
alleviation programs, the bank performs
most commercial banking functions.

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the bank was Tk. 1500.00 million which was
raised do Tk. 1800.00 million during the
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financial year 2005-2006. During fiscal 20073
2008 the bank under look a plan, approved by
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the ministry of finance, to raise authorized
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capital of the bank in the four consecutive years
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and lift it to Tk. 7500.00 million. Accordingly
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authorized capital stood at Tk. 2200.00 million
on 30.06.2008. Paid up capital was Tk 2200.00
million and reserve amounted to Tk. 208.40
million on 30.06.2008.

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4.00 MANAGEMENT

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A seven-member Board of Directors is entrusted
with the responsibility of policy formulation
for attainment of growth in agriculture leading
to economic development of the country
through agricultural credit support. The
government appoints all the directors of the
board. An executive committee constituted of
the Chairman and two other directors
including the Managing Director is there for
taking emergency decisions. The Managing
Director is the chief executive of the bank.

5.00 ORGANIZATIONAL STRUCTURE
The Head Office of the bank is stationed at
Rajshahi. The branch network comprises 364
branches including one in Dhaka. One
General Manager's office at Rangpur and one at
Rajshahi eighteen zonal offices stationed at
district headquarters control branches under
them. There are 18 independent regional
audit offices under direct control of the head
office for conducting regular audit in branches as
well as in zonal offices. The bank has a
training institute at Rajshahi. Out of total
workforce of 3,448 officers counted 1,419
and other staff 2,029 as on 30 June 2008 against
approved strength of 4236 including 2110
officers and 2126 others staff.
Board of Directors

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Administration
Division

MD’S Vigilance Cell

Operation Division

MD’S Secretariat

Audit, Accounts &
Recovery Division

Public Relation Cell

Divisional Office Rangpur

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General Manager
Office
Personal Department
HRD Dept.
Common Service Dept
Computer Department
Training Institute

DMD’s Secretariat
Loan & Advance-1
Loan & Advance-2
Research &
Development Dept.
ID Cell
Branch Control Dept
Budget& Expenditure
Control
Engineering,
Procurement &
Maintenance Dept.
LPO Rajshahi
Dhaka Branch
ZM Office Rajshahi
ZM Office Naogaon
ZM Office Chapai
ZM Office Natore
ZM Office Pabna
ZM Office Sirajganj

GM’s Office
Central Accounts-1
Central Accounts-2
Recovery-1
Recovery-2
Law Department
Audit & Inspection Dept

ZAO Rajshahi

ZAO Naogaon
ZAO Chapai
ZAO Natore
ZAO Pabna

ZM Office Bogra (N)
ZM Office Bogra (S)
ZM Office Joypurhat
ZM Office Rangpur
ZM Office Gaibandha
ZM Office
Nilphamary
ZM Office Kurigram
ZM Office
Lalmonirhat
ZM Office Dinajpur

% IT6 0LW IT 0 ! D 0 U9 Y' .9 percent in June 2008 from 7. >E ' IT 8 IT a 5J Source: Bangladesh Bank. The major advanced economics were already in recession while a number of emerging and developing countries were under inflationary pressure. /0 i ! ' h' i5 D ! 6 ' 0L IT @ h 0 ( %0 /D ! IT ! 8 < $ % -!$A ! L ' !Q A !$ -Q< 0L M 8 .< ! _. and lower growth of crop production. ^' IT E3 eN ' ( % J . 'J A ' 6 0 0@ % -$' IT 12 .< 8 5 0L . .0 percent a year for consecutive four years entered a major down turn in the face of the most severe shock in mature financial makes since 1930s.5% percent while the emerging market and developing countries were projected to grow at 6.2 During FY08.7/ 0 0L 6 ' .00 NATIONAL ECONOMIC TREND1 A 0 $ $ IT 0 0 L ^' ! A .-5 @o! h ' 0L . ^ ' _ .1 The world economy that registered an unprecedented average growth of 5.9 percent in 2008.B contributed toward a strong real growth of 6. The annual average inflation increased to 9. Advanced economics were protected to grow by 1. ^' --Q/ IT Y U? D ! 0L .L IT .' ' 0L 0L M 8 B Q' _ Q C ! U9 IT @ .K ' 5 12 ' / '( @ M'D N -$' l ! Q E . 0L .2 percent in FY08. ^' IT >E= eN ' ( % D >E 7Q J i$%pN !a 8 0 U9 Y' .6.4 percent of FY07. The Government and Bangladesh Bank continued to adopt policies in bringing the economy back in its growth momentum. 0 ! ! @ !$n 7Qm .Y 0 i -Q/ N h ' 8 M j0L N @ % k [ D @ 0L . and spike prices of oil.@ -d 12 L 8 0L 6 ' . slightly lower than 6.2 percent in June 2007. Economic growth was also aided by rapid growth in exports and surging remittances. Inflation was on uptrend during FY08 due mainly to rising import prices of fuel oil. food grains and some other essentials in the international markets. rice and most commodities in the global market. The downturn in advanced economics were triggered by collapse of the US sub prime mortgage following major corrections in housing markets is US and a number of advanced economics. ^' . 5 -Q' l A ND 7Qm .L / 6 ! / 0L M 8 0 D * 1 !f ' J M N 3E / 0 . 6. Annual Report 2006-2007 4 O % IT 6. The Governments growth stimulating and poverty reduction programmes coupled with prudent monetary policies of B. ' >E a IT 0 0 /J 7 0L M 8 >ER IT q' ! -D Z / <[ IT 6 ! . the Bangladesh economy showed signs of resilience by maintaining a satisfactory growth momentum in the face of repeated floods and cyclone sidr.' / ! 8 0 Mq % -$' IT 8 / ! * IT % 0L M 8 -$' l @o@ 0 F 0 ' I -Q< . ! Q =E= eN D ! .

! ^ ' 3E> ' 5 8 ^ ' E3 ' 5 +% % R 6.L -D 0 U9 % A 6 Z -Q/ . cyclone sidr and an wide spread out break of the avian the in the country.4 percent from 28.2 percent real GDP growth in FY08 was under pinned on the supply side.7/ 0L M 8 IT M' RE> D -$' ! 6 ! / 6 k !": / IT h ' 8 / IT sL D ! 6 ! / 0L M 8 RER IT q' 0L M 8 -n 4ER IT 0 D 0 Q $' 0 6 6 ! !. The industry sector attained a growth of 6.5 Agriculture and rural finance programme seemed to have boosted up as the private commercial banks began to participate along with State-owned commercial banks.. Growth rate in the agriculture sector achieved a moderate growth of 3. The deceleration in this sector was mainly due to lower growth in crops and horticulture sub-sector and animal tarming subsector.5< 5 .7 percent in FY08. The private and foreign banks also came forward in distributing agricultural credit in collaboration ./ * 0L M 8 E . h! ' 0 @ * J h ' 0L M 8 !. slightly dower than 6.% 0 L L D 0* 0L M 8 q' E t! D ..8 million metrictons in FY08 mainly due to higher Boro production. resulting mainly from a lower growth in animal farming.4 The agriculture sector achieved a moderate growth of 3.6 percent in FY08 against 4.J ! J !A Y' 6 0 %! ! %8 @ h!' .L >ER IT .0 million metrictons in FY07 to 29.Qh A .9 percent in FY08. The growth was supported by sustained growth in export oriented manufacturing activity an expansion in domestic demand.' @ 6 0 ) ^' +% % ! L . Overall output of food grains increased by 6. q-$' f ! 6 ! / 6 k !": / IT % / 4E> IT 0 D 0L M 8 !": / IT6 !IT D 0L M 8 O / ! U9 >E= IT 0 J UF 0L M 8 ER .9 percent of FY07.' . which was lower than 8.! ! 8 8 6 ! 7 +% % !":Im D 0L M 8 12 . Forest and related services sub-sector attained a slightly higher rate of growth in FY08..6 percent of FY07. Overall services sector grew by 6. 56 8 -@ . >ER 6.4 percent in FY08. =E .6 percent in FY08 following two consecutive floods.< .5< 5 e N D 0L M 80 * $ M !. Aman output decreased due to severe damage caused by two rounds of flood and devastating cyclone sidr.P IT O / 8 IT 0 ! D ! / 0L M 8 >E IT 0 J 7 0L M 8 >E= q' ! -D 6.6 $5< * 6 's/ 7 -% IT D >E3 . by a moderate growth in agriculture sector and continued strong growth with industry sector and in the services sector.! 8 ^ '6 <H . and crops and horticulture sub-sector. Aus output remained at the previous year’s level.>E4 0L M 8 Q5 J i$%pN !a 8 8 hrq8 Q .3 The 6. Wheat and maize production increased significantly / IT 0 0L M 8 4E> J .' .

four SCBs and BRDB although played key role in q' >E3 .50 million in FY07.% M' > R= .78 billion was 16.' ! 5 ' amount of accumulated loss of the bank by A ' ' ( === R .67 billion.D J . K ' formulation and incorporation of pragmatic and v# 6 G 12 0U9 $m M'D dynamic mechanism as and when required for credit management and UV% 7' 6 -\ 7 . D 6 's + % % ( n Q5 6 J A 5 . Total foreign exchange reserves stood at USD 6149 million as at the end of June 2008. Performance of RAKUB: 2007-08 7.< .44 percent to Tk. 0L M 8 6 's + % % '( .F% + % 's/ 7 -% t! D % 0 [T + % 0 ' ( v# ( ^ ' 0L M 8 6 0 M'D 0 ' A 0L M 0 a J 8 8 + % .n >=E 3 ' 5 % > E> ' 5 The actual disbursement of TK.7 Inward remittances from Bangladesh nationals working abroad increased by 32. with the aim of offsetting large QX Q .' @ 8 > E> ' 5 +% % -@ 6 . 61. Measures like MBO !7 6 !Q O ' K ' IT (Management by Objectives) and PARL management by objectives (MBO) 8 ! (Participation of all in recovery of total loans) O PARL Bparticipation of were on effect for stimulating activities and all in recovery of total loans) D augmenting over all operation at field level as .* IT ' ( commendable maximizing profit.% 0L IT -Q/ $' ^' D with NGOs. These programs included A *y f A @ z I D -!$A strategy and policy for prudent utilization of m O G % 6 +% 12 bank’s existing workforce and also left scope for ' ( !7 6 !Q O ' . the contribution of foreign and private commercial banks was also remarkable. The incentive measures introduced previously for recovery of stuck-up loans also continued in FY08. ! 6 ^' 0 CJ 7 FY08 against target of 69. >E> 0L M 8 +% 0 $ 0L M q' >ERR t! . 0L -% 0L M 8 3= E3 .' a' D 6. w -Q<.75 billion from the recovery made in FY07 mainly due to consecutive floods and cyclone sids causing huge damage to agriculture throughout the major part of the year. R4E 3 ' 5 eN D 8 i$%pN u!a b 8 .67 billion in eN B.00 RAKUB’S Work Strategy: The bank introduced a five year reform program for 1999-2004 and long term respective plan for 2001-2010.< .93 billion of FY07.4 percent to USD. SCBs and specialized banks still played dominant role for the growth of agriculture and rural economy with disbursement of Tk.51 percent higher than 52.' @ 8 0 a -Q/ $' D 7L % disbursement of agricultural and rural finance.. Bank’s attention and activities were concentrated on 3 . >E ! ' .% M' 7L S >E= J E 6 4 E4 D 6.80 million during FY08 from 5978. <% + % t! 6 0 <% +% IT well and in the controlling officess. 19 % 8' QN ( _ +% 0 t! @ %D J 8 M .! 1x practicing progressive and profit oriented banking business and earning real profit in the -!$A 8 !culminating year.5 % 3 E=4 ' 5 specialized banks Viz BKB and RAKUB.' a' D M . Two 0L M 8 .' a' = RE .Q . 61. 7914.6 Recovery of agricultural credit during FY08 decreased by 6. 43.

40 1612.! ! ' / emphasised financing in local potential sectors and also provided credit facility as forward 8! ' .7 credit supply on area approach basis and .n +% ! / M' =4R D !/ A t! }MD 8. In order to counter balancing shortfall in annual income emanating from reduced rate of interest on loans the bank set harmonized yearly target of loan disbursement and recovery and paid special attention to increased deposit collection for maintaining liquidity of fund. economically viable sectors of finance and credit % D! policy of the government were better considered ' towards fulfilling yearly disbursement target of % -$' / !-$ Tk.00 6425. <% + % .00 23509.P !"# M .10 15677.! / 0 @ 0L 0 Q! % * N '( h a ' 7S 6 +% O J 8' A 6 0L .00 Loan Disbursement 0L M E -' + % +% M' D S-% 7S - 8. E -' '( .-@ h .20 14062.00 20398.00 million for financial year 2007-2008 the bank disbursed Tk.( n Area Aproach . <% +% 0 !"# D ! % f0 + %J .03 7302. Tk million FY Outstanding loan Classified Loa n 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 12135.30 million (96 percent of the target) among 229341 borrowers.1 Against the lending target of Tk.06 17410.80 7465.00 1107.n @ %J ' ' / '( 0! ( % D 0 ' A M +% % 6 +% 0 7S / ' L 8 's/ 7 .09 25578.n % >3 E4 .00 1780. <% 0 0L M === 4 R 3 > 4 R 3 > + % 6 . Table 1: Position of outstanding loan.10 1171.% . The bank could uphold expected momentum in disbursement and recovery of loan and also succeeded in substantial recovery of classified loan during the year under report.60 9334. 8000 million in the under mentioned main 5 +% % sectors of lending. expansion of branches network. raising skill and efficiency of the bank employees.00 6716.( n ! 0L % . Local credit needs.80 1150.26 1001. enhancement of commercial banking activities.P linkage and backward linkage in this sectors to ' 6 a ensure enhanced production. efficient fund management and effective utilization of bank’s assets.10 Percent Recovery of CL age Of CL 64 61 54 48 42 31 28 33 36 1071.' 5 7 '( .72 7614.{ -A % ( ITJ ! !": 7L 7L G ( % D + % !Q t! h ' 0 t! ! % 7 / ' ( ! -X! $% +% %6 0 '( . 7650. % '( .8 !5 IT 6 -Q h 0 G %J % 7S ! J / !" ! % 8 .n @ 7 D 5 => > .25 8063.48 858. In this context the bank formulated suitable lending policy and laid out necessary credit norms to facilitate effective F 7 8' .00 7760. <% 43E44 =RRE R > E 3> E > R E 4= E 43 =E = RR E 33 E |B. 8000. <% 0 +% > E3 R=E > RE R>3E 4 4 E >R 3E > >E 3 >4E> =44RE >R > 3R R R 4 44 4> 5 C +% ER 3 E > E E 3 E E E ER > E> important aspects like reducing rate of classified loan and raising rate of unclassified loan for increased performing asset of the bank.89 24470. classified loan and recovery of classified loan.51 7849.70 1070. h ' C !" " +% 0 B-' .33 12944. With the rapid growth of population in the country agricultural land is decreasing day by day.60 (*Excluding Staff Loan) 8.12 +% % A ' .

34 based industries Cash 1680.00 40923 229341 8000 7371.40 machinery Agro400.00 8761 15967 270 16751 152.00 13147 100 92.0 143569 Fishery 69.36 Total 8000.00 224231 R43>= 4R 4 R (Tk in million) Crop E 3>ER 4 > = E R E > E4R >3 3 4R E > E R E3 > R 3 =>E 33 Fishery Livestock 19% 4 2% 46% Farm machinery Agro based industries Cash Credit E3 33E> 3=> 3 E > 3 Provrety Alleviation Others 22% 4% R E3 R =E4> RR =4 E >3 E4 =4R > R E R = 4 4 E R 1% 5% 1% .n R > E3 43>3E R R R >=E 3 E > R3 E3 4 E >R4 0 % 44= E R3E R3 3 E !/ 2006-2007 Target Achieve Borrower Target Achieve Borrower ment s ment s 4262.00 341 450 507.50 155.60 Alleviation Others 841.00 1747.20 Livestock 451.10 147477 4000 3390.n 0 % !/ '( . Tk million ! -*! k!": 7UV O A' eQ < -A 0 & ~ / 6 5 C > '( .00 7650.00 188 8604 2250 1796.! % f +% % > 6 q' -$' An # $ % 0L M =~ ~ R~ ~ Crops ~ / 7UV I O A' eQ < -A 0 -5 Sub-sector R>~ 3~ B-' ! -*! k !": Table 2: Comparative position of sub-sector wise loan disbursement during financial year 2006-07 and 2007-08.00 551 765 250 342.00 44293 600 1047.50 1429.50 377.30 286 11643 306 0 80 45.50 3565.00 56.00 268.50 Credit Poverty 177.00 50.80 Farm 118.

A 'Q Q 5J 7U9 . government rules of industrialization RAKUB has started financing small and medium ' ( !" J ( q<6 . }M B C p „2p .p O BSME’SC 0L enterprises following all rules and regulations in .- ‚! 6 }MD /() $1! " { 5 Q q{ ' D ! ‚ !J B C % ) MD 8 _ 8' m -' A 'Q ' 6 ( q<-*! A . Later on it was extended in the remaining districts of Rajshahi division. experiment and observation of the farmers with consultation and guidance of the fish research institute. Aim of the programme is to raise production of fish. As per -p O BSME’S) N 0L !Q !I. #SME’S& )' . J Q.a' 0 Q7 Qq +% MD 8.5 acres of land. (c) Financing small and medium enterprises: Rajshahi Krishi Unnayan Bank extends financial ( q<6 . ' 's ( 6 7 'A % _ . Pabna. Credit norms of Bangladesh Bank are followed while sanctioning loans for cultivation in 2.5 5 .MJ B>C ! A ! S U9 > 5 . achieve economic development and generate employment by producing fish by using modern and scientific technics (in the small ponds and water reservoirs). A fish-village to be established taking together 8 to 10 small ponds or water reservoirs owned by different persons but of the same locality. B C (*+ ! A / /() + .0 ' ITJ 0LW @ 12 -' 0 ' A 6 0 Q!g -*! BRC - 0 @ Z -*! ( q<( q< Q q 6 ' . Objectives of financing SME’s are (i) MD 8/ 0L . (a) Revolving crop credit program: with a view to strengthening and augmenting RAKUB’S usual crop-loan disbursement program the bank introduced revolving crop credit programme. Naogoan.2 Recently Introduced Loan and Deposit Programs: During financial year 2007-2008 the bank introduced the following sub-sectors entitled ‘new products’ for providing necessary credit support. K' 6 -A 8/ 0L k [ this regard.A' 0L M % u . and Dinajpur. namely (1) cultivation of Pangus (2) Pangus and Carp-type fish (3) Carp-type fish (4) Mono-sex Tilapia fish (5) Thai-kai cultivation (6) Cultivation of Pangus and carp-fish in nursery ponds has been set up for cultivation of fish under thorough supervision. .. Borga. Six models.' + % -XQ 6 -*! A € !"• % -!QA -A + % !Q @ 0 @Q 1? ' ! + % -!$A 6 . M M 0 12 -*! 6 -*! A Z L ( ‚! 6 J B3C L _ w 8 .+% B C .M * K' - -! 12 !I.MJ B4C !ƒ . -!$A % ! L 0 ' .! +% . (b) RAKUB Fish-village for intensive fish Production: In the fish cultivation rules of the government cultivation of fish is given prime importance.A 0 Q! % f '( 8 +% E3 8 ! 7 ! +% 0 L- 6 e J ^N J D k [ ' % D / (*+ f 6 .p m hesitation (ii) Help-build promising.p 0 F O 0L assistance for establishing small and medium 0 ! MD Q ! O 0 ' F ( q<6 enterprises since it started functioning. a •!b Q +% % ' $ '() ! " B C -!$A 0 6 . Primarily this programme was introduced in the districts of Rajshahi. eligible and B4C 2 3456 7 '. ! Treating SME’s as tools of raising economic production and sector for poverty alleviation and 0LW IT 8 < -A .( n @ A ' extend sufficient financial assistance without m ! ! J ( q<6 .

! L 12 F H ' B 1? O $0 € * +% .. Keeping this in view many nursery were established in the country. seedless mango and also bao-kul. ' q' 8 +% }MD #. apple-kul and narikelkul plants. small business related to computer. Though commercial cultivation of high-breed mango and jujube started in different parts of Rajshahi division production of high-breed plants has not yet started for establishing high-breed plant nursery.!K A % .'s J *$ U†!- ! $ D \ MD 0@ 6 0 8 ( .h Q@ ' J h ƒ ! S U9 L !U9 / D 8 ! F' . J B3C . The objective of the program is to establish nursery for production of hish-breed amropaly. 8/ ^ [ Y' * ' 6 h' 0 M 8- }MD 0 -< 'J ! J .5 %J ": 5 ! J . So they can engage themselves in some other income generating activities easily. Solar-power plant and bio-gas plant are preferred sectors.7 *! }A ( 6 0 -!$A A 'Q sd5 0 @ }A ( 12 J ( q< ! J %J . +$ 7Qm N Venture Capital 8 ! ! <% J BRC + % +% . vastara.a T @ ! ' !_ _ <a MD .P [.+ % m 6 ! }MD = dynamic SME’s entrepreneurs through necessary credit support (iii) Ensure extended scope of employment generation (iv) Extending credit be treated as relationship Banking to generate speed in disbursement and repayment of credits (v) Service asset be treated as substitute of venture capital and find out technics of financing new and dynamic entrepreneurs. They need financial support for such activities and also in educating their children. ! %_ . (d) Cash Credit loan in High-breed Nursery: Nursery plays important role in producing forest and fruit plants. beef fattening.!K m sd5J 7 8! ' -@ . mallika. bio-gas plant.& ( 4)$ !" (*+ 1?O ( { ( . poultry and duckery maintenance. fishy culture. As per demand of time production of high-breed plants by using developed technics has surpassed importance of plant production through days old bed-system plantation procedure. ' J B4C -! 12 @f N 7 y _@ !I.A J !a '! 0 -J A v# !-^ [ Y ! _ <a A . Most of them render service but reside at their own native homes or in the same locality. milch cow rearing. (e) Special Credit program for government primary school Teachers: Teachers of the schools lead their lively hood with limited source income.L ( 0 *! $m % 0 - . establishment of nursery. education and higher education of children etc.7- 0 !12' e 6 ! L 8 / J ! J .7 12 q'J 0 .P !Q)q ! ' '2 <' 2 . O m 0L I( A * … ! N * _ <a A * -' C m _ 0 !" .i J B C 7L 7L 0L -@ - [ .'0 L- P 0 L % e ! _ D . K ' !I. solar-power plant. 8 9 5: A - N \ m !I. 0 ' J -*! A J ! ! S U9 @ !U9 0 ! !- e !-Q 8' ( A' * ' / D e ( { ( ! ) . business related to phone-fax.- J ! sd5 12 MD . marketing of agro-product. sewing machine.4 ( 7S . In this context RAKUB introduced the above credit program for primary school teachers who draw their salary through bank accounts with RAKUB. chosa. . Under the program bank finances for purposes like maintaining kitchen-garden.-@ !": ! BRC (SME’SC ' 6 .!' _ .

' . % A $% 6 7n '( !.00 to TK. > 5 / . electronic gadgets and furniture etc. ' A +% % -!$A % MD $@ A/ 4 (*+ 8 a !b Aqm T A -@ 0 'Q * O +% 0 .J w Q ! X6 0! nS + % !Q @ 0 / MD + % !!4E '( 5 J w Q ! X 60! nS E '( 5 7U9D + % !Q D -% / 12 % + % -XQ 7 R M .0 12 6 -A % 7 .L 8_ 7S . ! " 4 H N .! L !":Im MD ' A. Tk 91.' 5 D !" A + % 8 .@ .p +% % MD 4 > / 12 E 4 . RAKUB has been with the program since then. During fiscal 2007-2008 the bank reargued percale credit norms from TK.f 0 'QJ 8. Sixteen branches of the bank spread over nine zones disburse credit at 8 percent interest per annum under the program. 6 A7 7S k [ A M $ 8 !$A ' .7 D 0L M 0 ' A / % + % . The loans are repayable in equal monthly installments in four years. the bank under took a plan to expand area of tea cultivation by including the districts of thakurgaon and Lalmonirhat for financing in tea cultivates under the programme “Development os small holding tea cultivation in Northern Bangladesh” Potato Seeds Production The bank has been financing under the joint credit program to Contract Growers of BADC for potato seeds production.50.7. During 2006-2007 sixteen district level branches disbursed loan under the Credit Scheme. for improvement their of living standards.' 7 > 5 / .52 million has been disbursed among 1249 borrowers up to 30-06-2007..@ . • 0 Q.000 per hectare to disbursed in four years. Besides. The aim of the scheme is to empower them to purchase means of transportation. Maximum credit limit under the scheme has been fixed at Tk 300 thousand for vehicles. 62728. autonomous bodies and semi-government organizations.00 and approved TK. m +% % }MD 4 > / +% -% E 3 -' 5 D .= . 1.% =4E4 . / MD 8 =5 . 100 thousand for electronic gadgets and furniture.7 + % -% eN J3 J { 5 D 8M N ‡Development of Small Holding Tea Cultivation in Northern Bangladesh” A ( q<A 6 ( q< A A O 8' !" ! \ q e6 6 ' '5 .3 Special Credit Programs Consumers'Credit Scheme The bank coined a new credit scheme entitled “Consumers Credit Scheme” for the fixed income target group permanent staff of government agencies.7KL 8_ + % -!$A 19 D 8a! * % . a FY @ ( q<A A .-! 19 @. Rate of interest under the scheme is 12 percent per annum.S a5 -! RL M +% . BADC supplies . e Q' A A ..' 5 D +% !/ 4 D .R3J4RR{ 5 > J {5 MD . Branch managers are delegated with the business power to sanction the loans irrespective of amount.8_ + % % D !Q D 6 8 a ! . a ! L 1?( Aqm ' A .'0 ! " (*+ #Consumer Credit Scheme) ! J 1? Y ! 6 0 @ 1? Y ! ) A q !. 48344.> ? ! " 2 345+ 0 6 2 345 + + 0 . Credit for Small Holding Tea Plantation Tea plantation in Tetulia under Panchagarh district began just 4 years back.

' 0 Q7 <6 . and farmers are being inspired for cultivating such import substitute agri-crops under joint collaboration of agriculture extension and RAKUB. and pesticide to the farmers and provides extension services. 19-agri-crops like various type of pulses. on the other hand. An amount of Tk 19. fertilizer.36 million was disbursed among 446 borrowers during the year under report. Besides. oil seeds.' 5 ! 6 !" ! % Aqm T A ! 8 a ! Aqm T A * % +% 0 7U9 0 ' A 0L M RR> +% +% MD 4 B0 ")A/ 4 z 0O % . provides crop hypothecation credit at moderate terms.7KL ! '0O h!' * *! 7S MD C 4 45 .! ( n M 0 h' h ' F 8 0 0 7 A _ ! ( Q%f0L A ' D inputs like seeds.4 Poverty Alleviation Credit Programs The bank has been disbursing micro-credit for poverty alleviation in the 16 northwestern districts since inception. ' 0H ' F < . the bank finances short-term collateral-free credit under selected individual or group-based programs for income generating activities among poor and unemployed youths in compliance with government policy. + (*+ . . F G. % 0 @ -! 12 !I.H ' < ) < $ '( )' _ > 5 .A -$' ( q< + % -!$A A' MD ! . 8. 1?O !m{ ' 7 6 8 ' 0L ( q<+ % ! MD A' 0L M $6 U9 A 0 ' ' ( 8/ + % % 7S . .7KL D =E4> .7@ a 'J w ' J -!' h!'J Qˆ ! =5 0 0 A' 0L h!' * 0@ ^ [Y 8_ ! ' / * IT % *! '( +% !Q -n ~ @ % MD 6 !" ! % 0 @ Z .! ! J 5 ! 7 8 ! g +% D 0 'Q! D +% ! 12 . Harvest is collected from the farmers by BADC as potato seeds and helps recover bank loans. The Production of import substitutes: The bank finances at the rate of two percent per annum for production for import substitutes.0 / . RAKUB. maize etc.

. 3) Swanirvar Credit Program 5 / The bank has been implementing RAKUB+ % 7S .000 collateral-free credit k ' per group of poor borrowers at 10 percent.through its 77 branches in nine districts. Rate of interest under the scheme is 12 percent per annum. Outstanding loan as on 30-06/ +% 2008 amounted to Tk 295. ' '( D4 -% = E = -' - 8 -!$A 0 6 > 1) RAKUB Self-help Credit Program (RSCP) RSCP is RAKUB's own group-based credit program introduced in 1994 in all the districts of Rajshahi division except Kurigram. Following are the bank’s poverty alleviation credit programs: ). fishery and D livestock farming. Rate of interest under the scheme is 12 percent per annum.- 5 (*+ 0 + % -!$A 6 ( q<+ % - % D4 1? '"? 5 D !" " (*+ (MSFSCIP) qN .19 million taka. The bank provides collateral-free small loans to poor and unemployed persons for income generating activities under the program through 129 branches.‰ f # & D > !" ==R ! ' QN . @ 6 I The bank financed Tk 155. ' -@ 5 _ 1? A' }MD 8 -!$A 0 6 F Q[ 0L . was originally funded by IFAD and technically supported by German agency GTZ.00 million annual disbursement target poverty alleviation credit programs during the year under report. resist the increasing trend of losing land under cultivation and attain self-dependence.' 5 D U9 Intensification Project (MSFSCIP Kurigram) The project meant for Kurigram district aims at increasing productivity in farm as well as off+ % !Q farm activities. . MSFSCIP.8 / + % 12 34ER> .46 million on 3006-2008.5 33E> - A 'Q( q<+ % -!$A ^ ' . tree-farming. / 5 D #=& HI > ! " (*+ = !' =5... <6 [ D !Q # & % @ 1? -! 12 - 1? -!$AD -' 0 Š % 0 . per annum in such income generating activities as ! @ food processing. Outstanding loan as on 30-06-2008 amounted to 98. ' .Swanirvar joint credit program since 1988 6 !-.P 3 E 5 7U9 +% !Q D 4 > 12 =3E> .60 million against Tk 270.0L M E3 -' 5 < -A / '( .62 million.n < -A / !-$ . 1?O . The % program finances Tk15.' ! ! ' \ S %J J -*! A 6 ! 0 @ -$' . '() 2) Marginal & Small Farm System Crop 6 2 345 G $- O +% > EF 6 ( q< A 7 =5 / -@ .' . helping target group people + % achieve sustainable development. Outstanding loan under the project amounted to Tk 153. ' !-$ A 'Q . . the ministry of agriculture assisted project.

'0 ! " (*+ M ' * IT .8 -!$A D !Q + % 12 3E 7L 7L D 4 -' > 5 D #.!Q 8 + % D 0L M 0 ' A / > !Q @ .000 for one to four years' term at eight percent per annum. 8 + % -!$A A 'Q 5 ! ^ . so that they can sell / their produces at favorable price. Rate of interest under the program is 11 percent. Seventeen warehouses are managed in 10 districts under the program. .% >E4> .@ < -A '( 0@ N T M ' ' / . The bank disbursed Tk 16.& K $ A/ 4 L) .36 million under the program during fiscal 2007-2008.#C& '()J4 ! " $- A -$' 6 ( q< ! MD * ! forward linkage U9 ! 4) Shogorip (Food grain go-down credit program) #' ! & = 5.p % + % . The program extends collateral-free credit up to Tk15.82 million taka. Outstanding loan as on 30-06-2008 amounted to 15. ' !' !Q_! RAKUB has been implementing the program ! under Swiss government assistance since 1988 as support to the sharecroppers and marginal and A ' small farmers opportune.' 5 D 4 > / + % -% E 3 -' 5 D 4 5) Semi-intensive Goat-rearing Program The bank introduced the special credit program of semi-intensive goat rearing for poverty alleviation in 2002.12 +% -!$A ! 'k [ D8 A M .

000 for poultry.P ' exploiting infrastructural advantage and ! A. duckery. 8) Zero Poverty Loan Scheme # & 4 45P ) .6) Medicinal Plants /Orchids Nursery Rajshahi Krishi Unnayan Bank launched a credit . F G-H ' F O financial support for establishment and 0 \ 6 % !Q7 !Q @ !& expansion of agro-based industries and . ) -! 12 !I. 6 0 L ! g % e ! -Q J M ' N 6 Q‹ ' J k .' 5 + % MD 4 > / + % .5 Agro Based Industries: .' 5 + % 54. creation of selfemployment opportunities and development of socio-economic condition.'0 ! " (*+ 35 < N .p =E= .000 per bigha (0.' 5 D million has been disbursed among 16 borrowers during the year under report. Outstanding loan as on 308_/ >>4 !Q @ . sewing machine.' * !Q A 8 west region of the country.000 per acre for nursery at eight percent MD 4 > / +% interest per annum. B0 > Q ' The bank undertook special scheme to intensify .! % availability of huge raw materials of the northe A. MD ! 8/ ^ [ Y0 F O ! ' MD .4 )! " " < .' 5 D borrowers during 2007-2008.6 ' '5 8 43 5 ' credit program in 2005-2006 entitled "Zeropoverty Loan Scheme" for the extreme poverty R5 / -@ < ) 0 Š -! 12 6 stricken 35 upazilas of greater Rangpur district. The bank provides credit 8 3RJ 5 7U9 + % D of Tk 20..90 million disbursed among 663 +% . The government also 0H ' % ! (% 6 S % O approves establishment of ago-based industries # & O .5 %J . dairy.64 million including +% % MD 4 > / Tk 29..33 acre) and Tk 0L M m RE . < $ % '( -‚ .!' _ . 8. M MN J 0 a ! 6 S % O tree plantation program of the government a 12 +% -!$A I D success and creating self-employment !Q ! i J 5 8 opportunities for the less educated and unemployed youths. growing orchids and producing trees for fruits and timbers with a view to making . Rate of D !Q > D 0L M interest is 6 percent. goatery. -!$A 19 8 0 Q 6 Ayurvedic and Unani medicine nursery of _ A *! ! % F h' J 6 medicinal plants.>0 A MN4 6 : ( <A4) 7) Credit Program for the Disabled Persons RAKUB provides credit to the disabled persons for alleviation of poverty. beef fattening.J program for entrepreneurs of traditional ! I( . 1?O ( . computer and small trading.% >E > .02 . An amount of Tk 4.' QJ qN -J The bank initiated a special group-based micro_ g J 'h .-K!QThe program implemented through 104 branches <k + % -!QA 0 6 +% % is expected to generate emply must land alleviatepoperty during “monga seasam”.J ( q< ! 6 ": 5 S 3 J 5 7U9 ! +% L D 0L M RR +% ER4 .% RE> . An amount of Tk 0.' 5 06-2008 amounted to Tk 65.43 million has been disbursed among 44 disabled persons during the year under report. # & .% >3E>R . 8/ 0L .A J 0 Š -! 12 !I. The bank extends collateral-free credit up to Tk 50.' 5 D R .

8 $) ] ^ ]_ . & $W S@ $@(S 2 " 4. ' 5 ' ! -5 3 5 ' ! s.35 million and borrowers counted 2854. '( M'D 4 E >E / 8/ + % 12 M' 4>E43 . / -@ .0L -UV% ' !S FY @ 19 @ MD L . . famous % '( . aims at disbursement of security free credit from Tk 25..00 million for setting up different type of industries . To best utilize the above opportunities the bank has taken pragmatic steps }MD 8 to enthuse potential entrepreneurs for @ 7' J establishing agro-based industries for !" \ 19 preservation and processing of agricultural MD 0 ' A 0L M produces of this region of the country. ( ( $1 + A$ $W 6 [ 9+] : ] ^ ]_ .M 5 0 B0 XEY " Z + A$ H\ " Sl.6. % Table 3: Select Agro-based Industries financed by RAKUB during 2007-2008 9 V5 W .' 5 8 ! / M' 3R D 3 5. ! 7 6 7' 6 . Recently set three tier ‘credit committee’ at the head office./ 12 0 m N@ % O 0L O 0L 0 @ . No 1. divisional office and zonal offices provide necessary support and advice to the intending entrepreneurs. Bogra and Pabna and Kurigram districts. Twenty percent of total credit was earmarked for women entrepreneurs.6 Foreign Aided Projects Small Enterprises Development Credit Project (SECP) Small Enterprises Development Credit Project (SECP) has been launched under Norwegian assistance to promote new small enterprises and streamline existing ones in fifty one upazilas of greater Rajshahi.' 5 + % % ( " =R B0 > Q ' S K. . Bogra Homeland cold storage (pvt. under active supervision of the ministry of finance.7 0U9 Qm IF J ^N 6 ' 3 5 ' J -‚ N qN .H.4 ' (8 @V 2 345A. 268. The project expected to create 68. % 6 T A.) Ltd.) Ltd.n R E for production of quality raw materials.% = *! .U') . & $W S@ $@(S 2 " Z .$ ( q< O{ ! 12 6 A 'Q O{ ! +% ! D eA M . Rangpur Purpose Production agri equipments Production of rice Preservation of potato Preservation of potato Preservation of potato 8.4)? A ` !" (SECPC 6 ! 0 L ! ‡( q< m +% OŒ 8 7S . Outstanding loan as on 30. & $ W J.34 million was disbursed against target of Tk. An amount of Tk. The project. 400.08 was TK 136.000 to Tk75.' ! > J -! 12 !I. 2.8 O 3J 3J 5 7U9 +% !Q7 MD O 5 ( q< m 60 *! .000 during the project period of five years.S a5 . C . Rangpur Shapla cold storage (pvt) Ltd.000 new jobs through entrepreneurship development and income generating activities.Z cold storage (pvt. # # # MD and provides additional fund to banks and financial institutions.P . . The bank O 12 emphasises financing in small industries instead MD of a few large ones.5Œ ! S F O/ +% -' 5 > E4R . $@(S 2 " 3. Naogaon A. ' 7' 7 . ‡. Name of the project Naboti Industries Natore M/s Mallick Chaulkal. ' $ ] ^ ]_ .

/ +% < ' In line with government policy the bank lowered interest rate on loans and advances .n RR E= . branch and zonal levels. evolving effective work plan to achieve 100% target by branches.00 0 '( .00 LOAN RECOVERY c !" 4 c 0 'A M 3 E .7 Interest rate ! ! ! . 19 crops like various type of pulses. GKF & RDRS provide necessary support.' 5 D }A -$' !Q @ % The bank undertook a project named North-west D Crop Diversification Project (NCDP) under !" ! % financial assistance of Asian Development Bank. for Zero Poverty 0 A' 0L h!' * IT ! + % Credit Program.1 The bank recovered Tk 8447.p + % PROSHIKA. M7 '( . BRAC. Outstanding loan as on 30. <% +% 0 J a•J p 0 6 . keeping constant touch with top twenty defaulters of field workers. 5 _!Q !. Interest rate on + % -!$A 0 6 % + % !Q M' loans and advances remained within eight to > 8 0O % . To increase production of !Q D import substitutes.' 5 + % 9.F +% 0 8 . the bank extends credit only at two percent interest rate./' ' ' % $ +% 0 ! ' .7Km % + % Qf h ' % 8 !Q 0 @ IT %J M Qf h ' + % 7L !0 J Untouched 6 0 0 7 +% ! > Work strategies followed during the year for recovery of outstanding loans were: setting specific zonal target for recovery of classified. spices.Z %J . maize etc. 9.@ ! . disapprove interest remission proposals and entertain justified ones only to ensure .4 8 c @ 0L M 0 .99 million.n 0 G 7 O J + % . <% + % <% % '( . WC. The project under implementation by the Department of Agricultural Extension (DAE) % RBA C 5 under the Ministry of Agriculture in sixty one 8 8h 8 upazilas of sixteen districts of Rajshahi division aims at production of high value > 5 / ( q< crops by small and marginal farmers and ! * 6 expansion of agri-business.! …-Q/ ' " 5 (NCDP) BADBC 0 L ! ! % O B8 ! a C -UV% ' B 0„C 8 ! h!' 8 * 6 <J J 0 a0 8! >5 . <% +% 0 '( I 's/ 7 ( !-$ M'f M "#_ . O 06 O 0 -@ 6 0@ North West Crop Diversification Project (NCDP) „}A -$' 8. updating borrowers list. The bank @ % a 'J w ' J -!' h!' 6 0 charged six percent interest.n ! . 22. write off target amount of loan accounts. !-$ IL .06. . issuing necessary notices. Four NGOs.AQ 8 a '() b @G F G .' 5 0 million hitting 102 percent.7twelve percent during the year.90 million during the year against target of Tk 8250.n D (@. . SME and over due loan and declassification of classified loan at the very outset of the fiscal year. ' U9 % A ! !" ! % % M' & D 4 E >E E== .T /D <k flow in the agricultural sector.n D / F d5 '( . ensure recovery from loan accounts rescheduled during the previous year. + % !Q during the last year to smarten up credit 8 .2008 stood / 8/ + % 12 at TK. +% 0 '( .7 6 . address cases with no repayment. rescheduling of loan accounts to widen scope of interest income.

' .n 0 Q7 0 %J ! @ !Q -6 Qh [*! % 6 .-' !-$ .w d 0 .@ .7 7 (J F '( .!H % N .% 7L 7L 6 ! 7 / 12 6 . % 8 m ! ' 7S . 10000 Recovery of Classified Loan Tk in milion 1000 +% 0 100 > R -' 5 10 1 > 08 07 20 06 20 05 20 04 20 03 20 02 20 01 20 20 > 3 R 4 20 00 R c = .\ . ' % *! D 9.L / 12 6 -\ -A % ! ! 7 D + % .n 7 .2 ( *8 + % !Q t! 6 @ 0L M !Q 0 t! . ).! ! % 12 .\ .6 @ d . !J M +% 0 ": 6 + % . Reen mela.'5" B ! " 4 . Training courses were designed for managers..n 0 Q7 + % 0 ' J $ 0 ' +% F '( . @ O O I D !Q 0 IT 6 -Q h 0 . Borrower.U? A.J / 6 .-' 6 + % 0 ": !-$ !": 6 Q +% @ q + % !Q @ % !Qh ' 0 Q@ 6 0 ! .friendly atmosphere of reenmela and camps encourages customers to repay earlier loan and enroll as fresh borrowers. @ O !. take initiatives for early disposal of certificate and arthareen cases in and outside the court and prevent loan cases from being time barred by law of limitations and follow procedure of monitoring daily performance._' 5 . . ‘modhumas’ in jaistha and ‘nabannya’ in agrahayon where top executives of the bank one members of mobile team from the head office were present to encourage the managers and field staff. maintaining and observing weekly and monthly progress.-' 0 D ' A T 0 Q7 ' k '/ 0 Q) J W ) -@Q.3 Initiatives undertaken for recovery of classified loan and profit earning of the bank: the bank had to work out plans to buttress deficit of interest income in the wake of lower interest rate. L8 4. 7 +% /' ! N .! 6 0 ‡ Œ ' ( +% 0 ":J ": 6 !0 7/ J0 %8 @ 7' . 5 0 U9 <[ •:F 12 % 6 ! +% ! 6 . .AŽ %J . recovery camps and super camps were arranged to observe ‘shuvo halkhata’ on bangla nababarsha. (@4 L. / 12 6 -\ .( n !Q -6 qh 7 .% ( % .5 ! !Z 6 -! F 0 @ % 6 7 ( % S 0 Q! %D % < recovery of classified loan. ensure proper application of Arthareen adalat law. other officers and field staff to impart guidelines for enhancing interest income and profit earning at branch level. <% +% 0 G %J 0L + % 0 ' 0 _ 8 !\ G %J 0 •: . 5 _ 6 .

10 8447.91 3379.44 2809.10 1171.5 4>R 5 / 0! 0 / MD 0 F !Q I D 8 % .00 1107.! % Rz 0L M . the bank paid importance to collecting low cost deposit.40 1612.% •-% 0 ! 0 Q $' @ 0! 0@ *! .!Q 0! 0 @ ^ [ Y . 0! & ^ [ Y *! ! AŽ D 4 R5 / ! . 0 0 0 M U† ! ! % 3z <% 6 0 <% >3 R =3 g R =E 344ER 4 +% 0 q' -$' 0 12 B-' 0L M '( .60 65000 - •Number of closed CL account Recovery against closed accounts.95 3735.21 4736. D 0n -\ .50 percent to 8. <% +% 0 ! h' B-' / 5 C -% R E > E> !/ %< <% +% 0 '( .5 0 0 0 == == R 3 E 4 3ERR 333E3R === 43 ER R 3 E > R =E= 4 5 C 0 >4 R 4 E E 4 43E R 4>E 4 3 E R43=E 3R =E 4 R > 3 E 3 E > > E E 3 E > =E4 E > ==E R E == ER > 4 E 3 4E > > 43E4 RR E= 3 > 3 > 3 > E> == R = (S 8 0 L 0 12 !QIy %J ' ! 5 $ % 6 12 ' 7 ' !I.70 1070. 10.2 The bank secured deposit of Tk 1454.80 1150. For curbing expenditure.00 1612. <% +% .00 8513. besides collecting deposit for investment.70 6835.7 0! .00 5110. Rate of interest on deposit was within 3. .60 2305. 364 branches including 304 in the rural areas are engaged for collecting deposit.10 1071. maintaining liquidity and strengthening financial condition of the bank.00 4359.1 Deposit is considered as the second important source for ready to invest fund.00 1780.70 5429. 42183 533.20 6829. Interest paid on deposit occupies largest part of the bank’s total expenditure.00 DEPOSIT MOBILIZATION 10.n Number Amount 2420.n .20 5722.39 4238. %< + % 0.90 % 63 110 99 100 108 104 98 99 106 102 10. Intensive tour of the field officers broaden scope of collecting deposit so provision of incentive was there for big deposit collecting employees.48 million against annual target of Tk2500.75 percent during the year.26 1001. Q1x 12 / D 0 ' A 0L M 0 !Q M' 4E3 E 3 7U9D 0L M 0 - Item Target of CL recovery Achievement • Target of closing CL account ! '( .30 2555. 48958 - 1079.n <% +% ! g !/ g !.40 Table 5: Comparative position of classified and unclassified loan recovery FY E4= 44 =E=3 R 3 Table 4: Classified loan recovery position during 2007-2008 Tk million 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Tk million Recover Recovery Recover Total y Target of CL y of UC recovery loans 4000 3500 4200 4700 5000 6000 7000 7500 8000 8250 250.54 3881.20 6299.48 858..20 Partly recovered cases.30 7470.n +% 0 <% +% ! g '( .00 6732.80 6260.00 .

2008 As on 30..00 10820.95 Other Total 1217084 15412.032650.211700.941210. 2007 Number Amount Numbe Amount of r deposit 28136 1360.10 million and number of depositors reached 1217084. Deposit as on 30.58 .00 173.00 10658.74 1754.10 Tk in million 16000 Position of Deposit 14000 $ % 12000 .60 1018.00 12883.06.97 28044 1256.97 277406 5212.36 Curren Saving 887390 3000.n 0 B!Q == == === 4 4 R R 3 3 > > 4 =3E3= 4> 3E = 3 3 E=R > E = 3 E >3 E E4R 3>>E 4 4E 4=3 E R 3 3 >3 3 3 E E E E E E E E E E C 4E> E4 E R 3RE > =E > E 3>E> 4 >E= ==4E R3RER 5 C M .48 3675.! I D4 > / .00 6702.341500. % B-' 5 C 4 E >E 4 E >E 0! !/ -% ! !/ -% +$ 4> 4> E= RR 3>E4> !H 4= 4 E 4 4= >R3E== 12 3 343 E= 3 3 R> =E a 8! 4 3 >=E=4 4R 34E )) 4 33 E= R > 3 E=3 .89 5051.00 3675.98 15052 4689..10 756.881400.94 6702.88 9052.002500.00 5051.00 DPS 283228 5527.60 1316.10 15412.80 3050 169.10 1454.3 E -' 5 R3RER .21 10820.101500.891100.73 882390 2645.5 R 3R E3 > = 4=3 E Table 6:Deposit mix on 30 June 2008 Tk million Type As on 30.00 13958.97 993.' 5 8 0! / M' R D ! % >f4 E >E / 0- million. 12 B!Q! C 4> 3E = 3 3 E=R > E = 3 E >3 E E4R 3>>E 4 4E 4=3 E 3R E3 = Actual Financia Initial Target Balance at achievement the end of l year balance excluding the year interest 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 3195.58 1206292 13958.34 11566.00 9052.03 12883.' 5 0.06.5 0.591100.% e N 4=3 E . He > 10000 R 8000 6000 4000 > 2000 R 2008 2007 2006 2005 2004 2003 2002 2001 > 3 R 4 2000 0 Table 7: Year wise position of deposit ! % z 0L M F 0- q' -$' Tk million % B-' 0L M "# 12 '( .38 1182.77 162.00 11566.06 1289.99 Fixed 15280 5352.10 10658.2008 amounted to Tk 13958.06.00 13598.93 3400 153.102500.

60 1653.28 679.50 1681.60 4238.7 B! C M !H .- ‡ B0 8!8!CŒ 0- ! ' 19 ( !H OŒ 6 7 OŒJ ‘ Y!H M'D 8M N A' 1?O 0 4 { J3 { J R O .00 8879.00 924.' 5 D E i12 0 L ! % z M 0L M == == === 4 4 R R 3 3 > > 12 F +% +% %J % 4 >>E 4>> E4 R 4 E R = E 3 RRE4R > > E4 >=>E =E 4 E >3 E4 h c %6 @ B-' 5 C h c % h c @ =>=E >E 4 E 4RRE> E > =ER= 3 E > E4= =E> >34ER = E 3=>E 43 RE3 > E = E =E = RE >R E = =E= 4 E>> Table 8: Position of loan disbursement.39 5744.70 1751. dies for investment.88 862. Hajj Savings Scheme. 300.66 .40 6767. fund.= _ ( q< ( q< 0 $ A 'Q ‡ .34 2009.60 million and .!-$ 0 {J 1xD ( q< MD Grameen pension Scheme.00 2890.‡ !H 0L M !-! !H OŒJ ‡ !U9 {!U9 O .10 3661. 1831.00 344. the bank introduced a new deposit scheme during year entitled RAKUB Sanchay Scheme (RSS) for all levels and low income members of the society. 2000. Zonal offices were !-$ 1? *! +% 0 6 0! advised to ensure recovery of loans and sufficient collect deposit for ready to invest . 12 Dues to these Banks stood at TK. Borrowing through refinance @ M ' I $f % window amounted to Tk 1989.49 4790.00 LONG TERM FUND MANAGEMENT As comprehensive refinance facilities from / 0L ( n Qf0L! 12 !Q @ Z for investment in agriculture was not easily accessible the head office off the bank ! !@ 6 0 ' A 0L M @ 7' could not provide adequate fund to the field +% % ' ! 6 ! M' D . Rural Pension Savings Scheme and Education Savings Scheme coined during 2005-2006 for extending service to the small depositors continued during the fiscal year 2007-2008 too. One can deposit TK.. The bank repaid dues of Bangladesh 4 E>> .10 1969.3 E== .00 7650.80 826. E -' 5 @ D4 Bangladesh Krishi Bank TK..7.32 312.00 7371.3 Some new deposit schemes like Rakub . In addition.06. 1000. ( q<0 !H 0L M 6 {J 6 3 .% = =E= .A 'Q 1x.30 1989. 82.F 10.00 1109. 4000 or 5000 per month for 7 (seven) years under the deposit scheme.80 3514.02 million.21 1.! {J { 5 {J 4 .08. 82.91 million during the year . D 0 'A M ' . Such small deposit schemes succeeded inviting attention of common people 11. > / ) bQ5 5 . 3000. 18511.' 6 E -' 5 D 30.02 million respectively M' 7L S .8 5 Q 1 .30 2290.00 8696.' 5 8 ' Bank to the tune of TK.91 1831.99 million and TK. refinance drawn and repaid (1998-99 through 2007-08) Financial year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 206-07 2007-08 Tk million Loan Refinance Refinance disbursed drawn repaid 3166.70 1596.10 1642. 500.

D employees • Creating congenial work atmosphere • Increasing professional skill through ( ITD effective training programs 6 . !": @ 7' 0 'A M . Credit Risk Managment.7 development is indispensable for success of any institution. Lending Recovery & Deposit Collecting strategies in Banks. Computerized Branch banking. CIB. Branch Management Training. .!": . CIB.! Œ A ' D = A' F - M 45 -A 0 Asset M'“ ( % _ ` 5 5 0 Q) ( % . Law and Regulations in Banks. <_ . Ducking & NurseryJ Financing Small & Medium Enterprises.expansion of business as well as to ! ! $% (% O % D familiarize the participants with new rules and regulations relating to banking business ! s. Brain storming sessions were held for implementation of the techniques narrated in the training courses. Foundation Training. Financing FisheryJ Dairy.D • Introducing need-based and updated training. Computerized Branch banking.(fg4 A ` !Q)q) .. IT 8 ( % and credit management system introduced by ' ' ( uu. Accounting Procedure in Bank & Roles of audit in prevention of different irregularities and risks in banking sector.. Financing Small & Medium Enterprises. Credit Risk Management. Poultry. 12. .' >= % D 's/ 7 . Law and Regulations in BanksJ -*! A J kJ e !-Q 6 ! / 0L .1 Effective human resource management and 6 . (*+ 12 12. The bank opened a separate Human 0 7D Resource Development Department for Y U? ' ( accelerated human resource development /' D planning of the bank.2 Yearly training programs were tailored to (% _ ` 5 5! 6 ' Q ! 7 6 ! 6 + % cope with the objectives of successful implementation of the bank's programs and 12 -A 8 0 U9 % 7S .D ( % -@ . 7 Q7 (% 12. Lending Recovery & Deposit Collecting strategies in Banks. !!-$ & Liabilites Management. Branch Management Training. Foundation Training.T M'f • • • • - !": 12 !h' 0 O 19 !": !": 6 -A % -@ 0 Q ’' !I.6 peQ @ ( 12 D Bangladesh bank and the government. ! 8 0 . ! 6 .3 During the year 692 officers and staff participated in 23 training courses and workshops held at the training institute on different professional fields like Asset & Liabilities Management. Human resource development planning of the bank was O underpinned by • Enhancing self-motivation of the bank 1? % !I.00 HRD PROGRAM 12.

<% +% 0 D 4 Q loans amounting to Tk 98.A 'Q MD 7' 6 5 . necessary number of computers at all here departments under LAN(Local area network) connectivity is these at the head office of the bank. <% + % .-' 0 7 +% . During the same period 875 Artha 0 7 .70 million was realised. Bangladesh Bank F ( %0 % D Training Academy (BBTA) swanirvar Bangladesh Dhaka. ' J @ 7' 8 5 ! 6 !/ ": 5 !-U? /0i !-IT ": 5 7S .% M' RE 4 . ! against 17663 unsettled certificate cases as on 30 June 2008. 14.disposed off effecting realisation of classified = E -' 5 . Shilpa Samparko sixaoton.83 million as on 30 June 2008.% M' E 3 -' Reen cases were settled against which an 5 D 3 5 0L + % .00 BRANCH EXPANSION Number of branches of the bank as on 30 June 2008 was 364 including 304 branches in the rural areas.. ( % d.org. a <-‚' 8 (% .C 0 ' A 0L M 0 _ 8-J ' J 12. 12. Bogra.rakub.' 5 +% 0 MD 4 Q 1214.A D 4>R 5 / 7 S . % ] ( 6 !" $ During the year 2306 certificate cases were 0 'A M 4 > 5 ! 5 h 5 ! •:F . }M 8 ' ": 5 € !-IT '( 0 U9 6 ) -@ ( % 12 }MD J ] / J 8' 6J 8 ! IF 3 5 .. 15. 8 0 •: R3=3 5 0L+ % .' 5 D . LPO. An amount of Tk 772.17 million. Computeriszed branch banking has been introduced Dhaka branches .-' 1:F .' ' . Dinsional and Zonal offices also posses of crop uterized work system with internet connectivity under the ministry of finance approved ICT plan 2006-2011 for introducing computerized branch banking in 364 branches computer based manpower are being recounted and the bank is also kin to impart computer literacy to us existing work forces of the bank. Pabna and Dinajpur branch.5 Transparency in administration ! 1?}M ! ' 19 1?}M 6 G % 6 In order to increase quality of operational @ 7' k [ 12 5 efficiency and affirm internal control MBO (management by objectives).15 million was involved 8 >>4 5 0 1: ! 5 h 5 . d< > of Bank Management (BIBM).F 0L -UV% ' 0 Q0 _ ! 5f > 0 Q -7 ": 5 € !": .4 During the financial year 169 officers 1? ' J ] ” O!": ( J 6 participated in training courses on different professional fields at the Bangladesh Institute ' A . Rangpur.% . Rajshahi.": 5 / A 'Q . ! = d( .5 / ! / M' 4>R 5 Š@ <. Rajshahi and Bangladesh Tea Board Srimangal.@ .bd 7S .@ amount of Tk 222.7 performance of the employees was followed 6 0 % -$' 12 T MBO meticulously both in the head office as well as at the field level.00 CERTIFICATE & ARTHA REEN CASES . (management by objectives) A 'Q MD .% / ! / M' 4 R 5D 13.00 OFFICE AUTOMATION Computerized work atmosphere compoized of a server.' / ": 5 A 'Q MD C ' G (f ( " 4 > / . ' 7 ' _d5 5 ! 7 ! ": 5 7S -6 A 'Q MD 1?6 ! _5 www. Pending 4595 Artha Reen cases involved Tk. a management tool 19 6 -A % A' ( IT 6 for ensuring quantifiable and participative 0 U9 UV% ) G '( . E .

( n m ' 0 U9 % UV% 12 S 'D 19 0 -J ' 6 % i5 i 5 6 Q IF .4 (> 0 'A M A' A' ! 5 7 -@ I 5D 16.00 AUDIT & INSPECTION Internal audit and inspection plays an important role in ensuring transparency and affirming accountability of the bank's accounting system. • 5 ! 0 Q) 8 P !/ 5J 19 4 FY 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Number of objections Raised Interna Commerci BB Total l audit al audit inspectio n 93335 100615 94471 70374 59680 43522 35865 15009 11537 11113 13236 1288 1095 1123 1536 145 14747 18693 17185 7038 5083 3976 1611 1670 119619 130421 114892 78700 65858 48621 39012 16824 Settled 17428 35114 53415 28001 31889 19344 8200 13271 f The government appointed M/s Kazi Zohir Khan ": J & Company Chartered Accountants and M/s ": J Saha Mojumder Rahman & Company. 17. Bangladesh Bank Inspection and external audit for detecting and checking repetition of irregularities. if any. in different levels.QA' -5 •: 0 F => = R 4 R 43 R R = 34R 3 >3 3 4 = R > =4RR 4= > R 4 ! 8P .00 THE BOARD OF DIRECTORS'MEETINGS D 170 memoranda were presented before the board of directors in 12 meetings held during the year.-! ! d5d5!–J] 8 ! d5d5!–] /' ( 5 S . The audit report submitted by them was sent to the ministry of finance on 27.2008 after approval of the Board of Directors. ": Chartered Accountants for conducting audit for Qthe financial year 2007-2008. D . frauds and forgeries. Besides.2 6 ) 4' .04.( n ( 6 $' L D 8 ( 6 . % D ( A5a 8 A5a 8 +$ ( / . . 0 0. @ O 1? 7S . 8P . M' The board gave decisions on 170 and all 170 M decisions have already been implemented during the year. bank’s own procedures there are commercial audit.-UV% ' .M N 6 M! % (J ' 6 f (D ! % =z 0 a5 0 1?}M 6 ^ [ Y $% Table 9: Position of audit objections F 0 12 0L M 0 • 4 4 R R 3 3 > > ) 0 U9 % % =4443 > 3 =RR 4 R 3=> R43 43 >3 3 = 34 4 4 4> F!/ F f f 0 R R >=4 3 4 3 4 4= > > > =3 4 34> R3 0L M ! ! .

00 Table 11: Income-expenditure and profit & loss Tk.27) 3071.00 1831.35 1603.' ! M >R E QX $ .00 million.20 (641.51) 2228.60b 23.58 48.78 million.QX ’ ..' ! 4 E / E> 3>E> > 4E44 R E3 RR E4 >E>= E >RRE E= | R 18.65 1650.10 1756. Accumulated loss at the year ending amounted to Tk 3274.00 Expenditure 2616.69 1940. Table 10: Position of income and expenditure Heads of Income/ 2007-2008 Expenditure Income 1975.90 1969.20 (416.' ! ' B' ! C B> E C E43 4E= 34E43 RE 3 R E > B4>>E4=C BR E3 C BR >E C B>R E C % B-' 5 C S .39) 1806.26 1199.00 loans & advances Other Income 100.20 2356.00 1272.33 114.% > >E 5 .% M' = 3E .5 0 5 J .68 153.00 Income from 1875.$ > ]$ ( 0L M -' .00 expenditure Financial 1471. million 2006-2007 1940.36 2157.00 million and expenditure Tk 2616.35 1780.00 2356.30 1535.75 1488.45 1309.03 1134. million FY 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Income Expenditure 655.78 .00 1016.00 million resulting in net loss of Tk 641.00 PROFIT & LOSS Total income during the year was Tk 1975.00 1975.' ! -' -% -' 5 8 5 D M .10 21.00) 2644.00 109.30 (366.53 1177.37 1462.26 1440.16 1602.00 1340..68 1110.' 5 D E ! % z 0L M ! F 0 / 0 + % 6 0 .92 1756. E= .35 1707.97 1735.00 expenditure Tk.69 (421.00) 3284.00 Profit/ (Loss) Accumulated loss a (617.00 2615.00 Revenue 1145.L 0 0 = 3E 3E E > >E R3E R E 0 1? 0 L ! % 0L M 6 z 0L M 6 0 0 == == >33E > === ==E 4 4RE4 R> E>3 4 >3 E 4 R 3>E > R 3 > E= 3 > 43E>= > =R E = 3E E34 E> ER3 4 =E4 343E43 E= =>=E4> 3 E 43>E > >E 6' q' -$' An B-' 5 C > =R E 4 E =E 43>E >E 4R E .

( n &^ % 0 6 E /E === -6 qh ! 0L M >=E C 4 t! . MD ' ! 200 0 B-' -100 5 -200 C -300 4 -400 R -500 3 > 3 R 4 3 Tk in million 100 Profit & Loss ..' would be waived.' ! ! !-U? million of provision and accumulated loss was D reversed. + % .% !Q 0 m A !Q ! + % Tk 0.' ! to BKB adjusted against the accumulated loss.QX Q .30 million principal and equal amount of interest would be realized and rest interest 12 -7 Dh' .400. Accordingly Tk 976.a) It was decided that for agricultural loans up to !.000 was received as subsside against reduction of rate of interest during 2003-2004 & 2004-2005.60 5 t! J 7 QX Q .' ! R 3 0L M + % !Q $ R3 JR J !-U? ' 5 7 c) An amount of Tk 457. D R6 Z S .interest remitted on dues !Q QX $ . -' !-U? 0 !' 6 0 ! ' 5 b)Tk 1.10 million .269.% = >E> .

h 'J .26 13650.00 RAKUB’S PERSPECTIVE PLAN: 2001-2010 The bank.72 770. <% + % Qf h ' +% ITJ .86) 12158.% %J .- % 0 Q! +% -Q h 0 . devastating natural calamities. 0 @ !Q .5 fB —/— —iC ' {( -$'@ Z -$'@ . Repeated occurrence of flood. scarcity in . <% %J 01. refixing interest rate of investment by analysing cost of land and cost of lending. along with detailed instruction and guidelines to reduce rate of classified loan.0 -Q h 0 R E 4 4E4 > 3E3 B>R E >C 3 E4 ==4 E> R 44E 33RE @ %J .p t! 6 ! I 0 $ +% ! %J + % 0 7S .@ .54 32. continued socioeconomic unrest in the country.n +% = RE E E= "# M ˜' I M I / A > 0)/ M 0- 0L SL No D $7 J I * ! % * 0 J . 7S ! . emphasise disbursement of small and medium size loan instead of big size term loan. / 7S - A ' ! FY6 0 ' A 0L M -Q h 0 % !"# 8 @ 7L !Y' 60 .80 16225. L D + % !Q ! %0@ .! 6 ! 56 0 J M .00 11278. Revenue Income Revenue Expenditure a) Administrative Expenditure b) Operational Expenditure c) Others Expenditure d) Incidental Expenditure Total : (a+b+c+d) Profit/Loss Capital earned Capital expense Total (Revenue & Capital) Income Total (Revenue & Capital) expense >> E = E > E +% *! Item 03. rescheduling of classified loan. at the very outset of the fiscal.0 8 ( ™ I. loan recovery and deposit collection target.80 92.80 117. 06.!Q G ‰ ' / . 05.! J +% ( q<6 .72 383.38 9938. On the back drop of negative impact upon over all income and profit earning of the bank due to reduced interest rates on investment and payment of larger amount of interest on deposit on the contrary. 4 $ '( . measures for counterbalancing the shortfall by enhancement of disbursement of new loan.34 2542.60 14133.18 19. and paying kin attention to five risk factors identified in the banking sectors.! A * t! > Approval Budget of financial year 2007-08 Actual Expense of 200708 financial year 2576. 0 h P 6 + % !Q Qf @ 3 5 peq %J 0 @ .5 Z B 1?6 -$'@ C -5 B 1?6 -$'@ C R= E3 >4E4R 3R E3R 4 E > 4>3 E E > 3E )S.IT . set annual loan disbursement.80 660.80 12554.50 163..! % ! ! ( f 0L M Table 12: Summary of approved budget for 2007-2008 financial year. to collect low cost deposit and to ensure profit making by improved commercial banking activities.30 2615. Tk.76 1478. million 5 C 0 Q- 5 B-' S- / 0L M 0 Q5 D D 4D RD 3D >D D c 1? Z 1? f C ) /C 0 h! A' 3 >E C0 iC 0 Q! .00 1974. 02.10 13820. 04.' P A . enhancement of credit flow in more profitable sectors.58 (640. the bank took precautionary.. Inspite of all such initiatives the bank could not achieve expected success. 07.90 1490.!• AŽ t!J 0 0- ! IT ! A. .

( n $7 h_ c !Q % . expansion of foreign exchange business. ! - D 12 ' % ! - P %J + % 0 / . loan recovery and deposit plan collection activities.' ! --0 !Q .. 0_ 6 12 6 J q' L 0U9 0 Q IT ( ! !-$ .n A' ! J ' 6 0@ $ ' +% % .6 + % B f43 +% ' 0 0 % A. fulfillment workforce shortage.' !"?' 3B e AC M . social resistance to initiate legal action against defaulters. fertilizer and diesel fuel and electricity for irrigation. The management specially focused on improvement of loan disbursement. - O ! }MD % - P timely supply of adequate agricultural inputs like quality seeds.M !-$ 0 4 7' 6 -\ 7 ' . 2008 to 2013” containing strategic guidelines and work plan.-' @ _ +% 0 !I. branch computerization and monitoring yearly profit-loss and looks forward for effective and improved business performances to attain desired height of dynamic and profit oriented banking business to off set total out-standing loss and earn real profit in the culminating year. q +% @ (- 0 L !- q. J 0- ! 6 ": 5 _ A ' F 6 !" % $%J 0 _ = 0L M 0L M 7U9 !- ! ' 19 0 @ M 7 0 . In addition want of efforts to settle court cases out-side the court. and other disadvantageous environment largely damaged agricultural production causing in-capability the borrowers to repay bank’s dues and above all abnormal rise in field worker-borrower ratio (1:350 to 1:632) due to workforce shortage of the bank affecting close credit supervision impeded expected operational activities and profit making. meant to be followed at all levels of bank management.' ! 19 J - ˜' 6 '( .!h' D Jw !": i 5 / % 0 L QX $ . dependence upon high cost deposit to meet credit demand due to inadequate refinance support thwarted net profit earning of the bank.( n Z! -Q h 0 A' ' +% ' IT h ' ! P !h' @ J +% 0- +% % . 5 0@ 6 0 { f>4 C 0 @ A 0 6 -P ' 0 12 ' J ! '! 5 !- .\ . After threadbare analysis of all such problems the bank management has thrown a “Longer term management plan. .

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