Know about select credit programs of RAKUB

Expanded Maize Cultivation

Maize cultivation program was introduced in the vast char land of Lalmonirhat district during 1999-2000. This special program has created positive socio-economic impact on the people of the region. The program was also introduced in Sherpur and Dhunat upazillas of Bogra district where vast area of land was brought under maize cultivation. The bank has taken an initiative to introduce special credit program for establishing maize processing industry, chatal and godown.

Papaya Farm in 50 acres of land

A project named 'Ma-Moni Krishi Khamar' in Iswardi upazilla under Pabna District, financed by RAKUB for cultivation of papaya and other crops has been running successfully. The pioneer project has inspired other farmers in mixed farming.

Pineapple and Vegetable Farming in 33 acres

'Bokchi Krishi Khamar' established in Rangpur District under financial assistance of RAKUB for production of pineapple, vegetable and spices is also running successfully. The complex also accommodates poultry and dairy farms.

Nursery for Medicinal plant and Orchid

Rajshahi Krishi Unnayan Bank has been extending credit for nursery of medicinal plants, growing orchids and trees for fruits and timber with a view to making the tree plantation program of the government a success one and creating self-employment opportunities for the less educated and unemployed youths. The bank has worked out well-defined policy for establishing nursery.

RAKUB Milk Village

The bank continued financing under the special lending program entitled 'RAKUB Milk Village' in eight villages of Mithapukur upazilla under Rangpur district. Aim of the program is to develop a concentrated milk area with a view to facilitating increased milk production. The program maintains a satisfactory rate of loan recovery.

Small Scale Poultry

The bank continued providing financial support for small-scale poultry farming. The program has immensely inspired the unemployed youth for obtaining self-employment.

Other Programs
RAKUB self-help credit program (RSCP)

RAKUB has been playing an important role in implementing programs for poverty alleviation in the northwest region. RAKUB self-help credit program (RSCP) is one of the important programs amongst eight ongoing poverty alleviation programs of the bank. Recovery of loans is satisfactory.

New special programs has been launched in joint collaboration with government agencies, autonomous bodies and NGOs for production of cash crops considering climatic condition of the area under the bank’s jurisdiction. Some of the programs are cited below:

Potato Seeds Production Program

The bank continued its program with BADC for production of potato seeds under contract growers system. Under the program the bank extends credit facility for seeds, fertilizer and pesticide while BADC provides technical know-how. BADC procures seeds produced by the growers. This program covers about 30 percent of the total potato seeds produced by BADC at national level.

Cotton Production Program

An MOU was signed between the bank and Cotton Development Board (CDB) in the year 1999-2000 for a five-year term for increasing production of cotton in Rajshahi division. Under the MOU, RAKUB disburses credit to the farmers selected by CDB in the select upazillas of 15 Districts. The program has opened opportunity for proper utilization of vast area of fallow land as cotton can be produced in comparatively less fertile soil.

Fresh-water Shrimp Culture

The MOU signed between RAKUB and North-West Fisheries Expansion Project, Parbatipur, in 1999-2000 was in effect during the year also. The program aims at financing shrimp mixed farming in all 58 upazillas of greater Rangpur and Dinajpur districts. The North-West Fisheries Project-2, Parbatipur identifies target farmers, supplies fingerlings & imparts training to the farmers and the bank employees as well.

Fisheries & Live Stock Department-RAKUB Joint Program

Two separate MOUs of five-year duration each signed during the year 1999-2000 between Rajshahi Krishi Unnayan Bank and Department of Fisheries and Livestock of the government for fisheries and livestock extension service through private sector entrepreneur development. The program aims at contributing to national economic growth by means of increased fish and livestock production and creating job opportunities for landless, marginal and small farmers and unemployed youth.

Goat- rearing Program

In line with government policy the bank introduced a semi-intensive black Bengal goat-rearing program during 2001-2002. The main objective of the program is to create self-employment opportunities for the landless unemployed youth, marginal and small farmers. This program envisages to meet the demand for protein and at the same time earn foreign exchange through export of goatskins. The bank has a plan to establish at least three goat-rearing farms in each district. The bank provides collateral free credit amounting up to Tk 15,000 for alleviation of poverty.

A special program has also been taken to establish at least one goat-breeding farm (pure breed) in each upazilla to meet the demand of healthy goat-kids for rearing at individual and farm level. RAKUB has extended credit for goat breeding farms in some regions including Gaibandha.

Pally Progati Reen Prakalpo

The government has undertaken decision to implement a program named ‘’Pally progati reen prakalpo’’ for poverty alleviation. As per an MOU signed on 25-08-2002 between RAKUB and Bangladesh Rural Development Board (BRDB) under supervision of the Rural Development and Cooperatives Department of the government, RAKUB will extend credit amounting Tk 310 million during the period from 2001-02 to 2004-05. The bank will carry out lending activities in 127 unions under its jurisdiction. The bank authority has already circulated policies for lending, recovery, banking operation and accounting system for the said program.

Credit for Small Scale Tea Plantation

An MOU was signed between RAKUB and Bangladesh Tea Board (BTB) on 7 June 2003 for extension of Tea cultivation in 300 hectares of land initially in Tetulia under Panchagarh district at the cost of Tk 22.40 million. RAKUB extends credit support where as BTB provides technical assistance under the program. Area of tea cultivation will be expanded gradually. RAKUB has already worked out policy for financing tea plantation. The program was solemnized by delivering credit to 5 farmers in June 2003. The program has ushered in a new era of tea plantation, which is expected to create a far-reaching impact on the national economy.

Agro-based Industries

Reckoning the scope of exploitation of the potentials of agro-based industries in the northwest region RAKUB has strengthened efforts of financing agro-based industries, one of the seven priority sub-sectors of investment under RAKUB reforms program. The northwest region is advantageously placed in respect of cheap and high-quality raw materials for agro-based industries. Suitable communication network for processing and marketing of agricultural produces in the region is an added facility of this region. The bank has taken pragmatic steps for attracting entrepreneurs for establishing agro-based industries in this region. An entrepreneur development cell has been formed in the bank’s Head Office to provide advisory services to the entrepreneurs.

Tetulia Eggs Ltd, Panchagarh

The bank has disbursed Tk 48 million against sanction of Tk 50.80 million in 1999-2000 for establishing a poultry farm named “Tetulia Eggs Ltd” at Tetulia upazila of Panchagrh district. The 100 million Taka project having capacity of producing 96,000 eggs per day (one lac birds) is one of the largest farms in Bangladesh. The profitably run project has been repaying as per schedule.

Northern Hatchery Ltd., Bogra

Considering high demand of day old chicks (DOC) the bank sanctioned a loan amount of Tk 61.50 million to Northern Hatchery for establishing a large modern broiler breeder farm cum hatchery at Betgary under Sadar Upazilla of Bogra district. Total cost of the project is Tk 123.10 million out of which RAKUB has disbursed Tk 61.50 million. There are 17,600 birds in growing shed and 32,200 birds in the layer shed. 230,400 eggs can be hatched each time in two incubators of the project. The project started production in 2002 and is running profitably. Installment of bank’s loan is paid in due time.

These two poultry farms established by RAKUB’s financial assistance are playing pioneering role in development of poultry industries in this region.

South Pole Cold Storage private Ltd., Joypurhat

South pole cold storage was established at Bairagihat under Kalai upazilla of Joypurhat district with financial assistance of Al-Baraka Bank. Later on as per prayer of the company RAKUB sanctioned Tk 34.17 million to the project. Now this is RAKUB’s project since loan of Al-Baraka Bank is fully repaid. The 8,000 metric ton capacity cold store has gone in to operation in 2002.

Bashar Cold Storage Ltd. Rajshahi

Bashar Cold Storage Ltd. financed by RAKUB was established at Chanpara under Bhabanigonj upazilla of Rajshahi district and started preserving potatoes in 2003 on experimental basis. Total cost of the project was Tk 58.35 million out of which RAKUB advanced Tk 30.40 million as credit. Capacity of the project is 6,500 metric ton.

Some more cold storages having capacity varying from 10,000 to 12,000 metric ton have been established in this region under financial assistance of RAKUB. This way RAKUB is playing a vital role in preservation of potatoes in the north-west region.

Foreign Aided Projects

Two foreign aided credit programs namely SECP (Small Enterprises Development Credit Project) & NCDP (North-West Crop Diversification Project) were introduced during the year 2000-2001. Brief description of progress and development of the programs during 2002-2003 is given below:

Small Enterprises Development Credit Project (SECP) with NORAD

The bank got approval of 50 million Norwaygian Croner (Tk 318.30 million) for establishment of a project named Small Enterprises Development Credit Project (SECP) . The project will be implemented in fifty upazilas of greater Rajshahi Bogra and Pabna districts of north-western region of the country to establish small enterprises and also to develop the existing ones. There is a plan to cover the whole Rajshahi Division in the second phase. The five-year project (2002 to 2006) was approved by the ECNEC on 24-11-2002. The project will create 68,000 new jobs through entrepreneurship development and income generating activities.

Tk 15,000 to Tk 75,000 will be disbursed as collateral-free credit under the project where 20 percent of total credit will be disbursed to women entrepreneurs. 22,700 people will get training on entrepreneurship development and 2,300 people skill development training through the project. Apart from this 23,000 entrepreneurs will get one day orientation training while concerned branch managers and project officers will be offered special training.

Entrepreneurship development training program started in the year 2002-03. One day orientation training was imparted to 380 entrepreneurs amongst which 175 entrepreneurs got entrepreneurship development training till 30-06-2003.

North-West Crop Diversification Project (NCDP)

The bank has undertaken a project named NorthWest Crop Diversification Project (NCDP) under financial assistance of Asian Development Bank. The Project is under implementation by the Directorate of Agricultural Extension (DAE) under the Ministry of Agriculture in sixty upazilas of sixteen districts of Rajshahi division. The project aims at developing socio-economic conditions of the small and marginal farmers through production of high value crops and expansion of agri-business. Four reputed NGOs (BRAC, PROSHIKA, GKF & RDRS) will disburse loans for high value crops production and RAKUB will disburse loan for agri-business development. Around 160,000 farmers trained by NGOs will avail the loan facility.

Select Projects Financed by RAKUB