Posted on 3rd Nov 2024 01:09:24 AM Finance
1.1 Introduction
Bangladesh is an agro-based economic country. This country’s calamity and fertile land is suitable for cultivation. There are 85% (approx) people of our country are depending upon agriculture directly and indirectly. Major portion of National Income comes from agriculture and development of this country depends upon the development of agriculture. But the financial conditions of the farmer of our country are not satisfactory. RAKUB has played a vital role in our agricultural economy to overcome the poor financial condition of our farmers.
1.2 Overview of RAKUB
Bangladesh is agricultural based country from the very beginning. Most of the people depend on agriculture. From British period to date farmers of this country were dominated in various ways. To save the farmers from village money lenders British Govt. took step in special program in order to disburse the agro-loan to the farmers in 1905.
Therefore, in 1932 India-British Govt. took a step for the socio-economic development of the small and marginal farmers of Bengal to disburse agricultural loan.
The Government of Pakistan period (1952) established a financial institution named “Agricultural development finance corporation” (ADFC) on account of disbursement of loan in agricultural sector. Feeling the importance of agro-production and agro-loan the Pakistani Govt. established another bank namely “Pakistan Krishi Bank” in 1957. After liberation Bangladesh Govt. denoted the Pakistan Krishi Bank as Bangladesh Krishi Bank (BKB) in 1973 according to the Presidential order 27. As Bangladesh is an agro-based country, the demand for the agro-loan of Krishi Bank has been increased highly. To manage agro-loan it become very difficult for Dhaka based head office of Krishi Bank in the remote areas of the country. For this reason the government wanted to decentralize the Krishi Bank in the divisional areas. The people of the northern areas of Bangladesh are lagging behind in all respects than the other parts of the country. That is why in 1986 according to the president’s ordinance no 58 Rajshahi Krishi Unnayan Bank (RAKUB) was established. From March 15, 1987 RAKUB started its functioning.
1.3 Management
A seven members board of directors is entrusted with the responsibility of policy formulation for promotion of growth in agriculture leading to economic development of the country through agricultural credit support. All of these board directors are appointed by the government. Also an executive committee constituted by the chairman and two other directors including the managing directors is there for taking emergency decisions. The managing director is the chief executive of the Bank.
1.4 Capital and its sources
RAKUB is a governmental banking institute. So the main sources of Capital are government fund, Details are as follows-
1) Authorized capita : Tk. 150 crore
2) Paid up capital : Tk. 150 crore (up to 30 June-2005)
1.5 Major goals of RAKUB
The main goals of RAKUB are as follows:
a) To provide credit facilities for all kinds of agricultural and agro- based economic activities keeping in view the needs of small and marginal farmers.
b) To promote cottage and other allied industries in rural and urban areas.
c) To assist farmers in adopting appropriate technologies under the Bank's supervision.
d) To earn a normal profit for meeting the operational expenses, building of reserve and expansion of activities to cover wider geographical area.
e) To extend counseling and advisory services to the borrowers, entrepreneurs etc. in utilizing credit facilities of the Bank.
1.6 Organizational Structure
The head office of the bank is stationed at Rajshahi. The branch-network comprises 357 branches including one in Dhaka. Five zonal and thirteen regional offices stationed in district headquarters control branches under them. There are 18 independent regional audit offices for conducting regular audit in branches as well as in regional and zonal offices. The bank has a training institute located at Rajshahi
1.7 Organizational set-up
The affairs of business of the bank are managed through three functional areas:
· The Head office
· The zonal/Regional offices
· The Branches
A) Head Office
Head office of RAKUB is located at 280 km far from capital city Dhaka, North-west divisional city Rajshahi. All operation is control by head office. The managing Director is assisted by the three following functional divisions. Each headed by a General Manager:
· Administration and Accounts Division
· Operation Division
· Budget and Expenditure Control Department
The three divisions further divided into 12 departments are as follows:
Administration and Accounts Department:
· Personnel Department
· Common Services Department
· Central Accounts Department-I
· Central Accounts Department-II
Operation Division:
· Branches control Department.
· Loans and Advances Department-I
· Loans and Advances Department-II
· Research and Development Department
Budget and Expenditure Control Department:
· Audit and Recovery Division
· Loan Recovery Department-I
· Loan Recovery Department-II
· Audit and Inspection Department
B) The zonal/Regional offices
a) Supervision and control
The zonal offices are headed by Deputy General Managers while Regional offices by Assistant General Managers.
b) Vigilance
The functions of the Audit offices are to keep the branches regular. The Audit offices accomplish auditing of the branches on half-yearly basis Regional Audit offices are directly controlled by the audit and Inspection Department of the head office and by no way influenced by the local Regional on zonal offices.
c) Training Institute
The only training Institute at Rajshahi Imparts training to the junior and mid-level officers and other staff according to the annual training program designed on such subjects of professional interest as management of credit and accounts. Commercial banking, audit and inspection etc.
C) Branch Network
Table 1.1 Region wise total branches (Up to May-2008)
| Rajshahi | 22 |
| Naogaon | 27 |
| Natore | 20 |
| Chapai Nawabgonj | 16 |
| Bogra (South) | 14 |
| Bogra (North) | 20 |
| Pabna | 22 |
| Jaipurhat | 15 |
| Rangpur | 26 |
| Gaibandha | 24 |
| Nilphamari | 20 |
| Kurrigram | 19 |
| Lalmonirhat | 17 |
| Dinajpur (North) | 17 |
| Sirajgonj | 22 |
| Dinajpur (South) | 18 |
| Thakurgoan | 18 |
| Panchagar | 18 |
| Dhaka | 1 |
| L.P.O (Rajshahi) | 1 |
| Total | 357 |
Table 1.2 Employee summary of Borgachi Branch (up to June-2008)
| Senior Principal Officer | Nil |
| Principal Officer | 1 |
| Senior Officer | Nil |
| Officer | 1 |
| Supervisor | 4 |
| Cashier | 1 |
| Driver | Nil |
| Peon | 1 |
Source: The Daily attendance book of employee in Borgachi Branch Paba, Rajshahi in June, 05 2008.
Internship, Report, Customer, Service, Role, Entrepreneurship, Development, Rajshahi, Krishi, Unnayan, Bank, RAKUB, Agricultural, Development, Finance, Corporation, Loan, Agro-Production
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