Rajshahi, Aug 23 (V7N) — Rajshahi Krishi Unnayan Bank (RAKUB) has recorded notable improvements in several financial indicators over the past year, with deposits rising by Tk 855.71 crore and net losses falling by Tk 171.15 crore.

Bank officials attributed the progress to zone-based monitoring by the current management, regular guidance at the field level and a range of reform initiatives.

Established on 15 March 1987, RAKUB has been working to improve the socio-economic condition of farmers in Bangladesh’s north-western region. According to bank sources, the institution has recently made significant progress in several indicators while competing with other scheduled banks.

Bank sources also said RAKUB’s recent performance was praised at the latest meeting of managing directors with the governor.

According to RAKUB data, deposits increased by Tk 855.71 crore in the current financial year, which the bank described as its highest-ever annual increase.

Meanwhile, the bank’s net loss fell from Tk 289.39 crore in the previous financial year to Tk 118.24 crore in the current year, representing a reduction of Tk 171.15 crore in one year.

The amount of provision against classified loans also declined. Provisioning stood at Tk 702.87 crore in the previous financial year and fell to Tk 689.74 crore in the current year, a reduction of Tk 13.13 crore.

Bank sources said the classified loan ratio of several scheduled banks is currently above 30 per cent, while RAKUB’s classified loan ratio is around 16 per cent. However, the bank did not provide detailed comparative data or sources supporting the claim.

RAKUB also said it had quickly implemented a government-announced programme to waive loans of up to Tk 10,000. Under the programme, loans worth Tk 227 crore were waived for around 2.4 lakh farming families.

The bank has also introduced several initiatives to strengthen its operations, including a new organogram, a home loan policy and a motorcycle loan policy. It is also preparing to implement new programmes under a Tk 3,000 crore government package.

Bank officials expect these measures to contribute to the economic development of agriculture and farmers in the north-western region.

The bank has also taken steps to reduce expenditure on various purchases, with stricter monitoring of information and communications technology procurement in particular to ensure transparency and accountability.

However, several senior RAKUB officials have alleged that a section of employees is attempting to obstruct these reforms.

Speaking on condition of anonymity, the officials said a group had been creating various obstacles as the bank’s management sought to overcome longstanding problems and restore the institution to a stronger position.

They also alleged that the group had been putting pressure on the management after initiatives were taken to prevent unethical practices, including alleged irregularities in staff transfers.

The officials claimed that nearly 60 managing directors had served at RAKUB over the past 38 years and that, at different times, mob disorder, misinformation and intimidation had made it difficult for managing directors to perform their duties normally.

RAKUB Managing Director Golam Mortuza could not be reached for comment as he was unwell, while General Manager Taj Uddin was on leave.

However, Masum Billah, staff officer to the managing director, said RAKUB was undertaking various initiatives to improve the living standards of farmers in the northern region.

“Some corrupt officials are obstructing these development activities,” he said.

He added, “Officials and employees at all levels of RAKUB want the institution to be freed from the control of a handful of corrupt individuals. RAKUB will move forward by overcoming these obstacles.”

The bank authorities said they aim to build on the recent improvement in financial indicators and play a more effective role in the development of agriculture and farmers.

END/MRA/SMA/