Written by The Banking Post
The government has issued a one-year state guarantee for a Tk 20 billion refinancing loan from Bangladesh Bank to Rajshahi Krishi Unnayan Bank (RAKUB), in a move aimed at bolstering agricultural and rural credit programmes.
The Finance Ministry issued the guarantee on Monday, attaching a set of strict conditions. RAKUB must submit its audited financial report for fiscal year 2023-24 within the next month and prepare a detailed action plan to expand business, cut non-performing loans, and improve operational efficiency.
The ministry also made it clear that the loan must be fully repaid within the guarantee period. Failure to comply will bar the bank from receiving any future state guarantees. Officials said the bank’s financial performance, including classified loans, will be closely monitored.
RAKUB is the country’s only state-owned specialised bank headquartered outside Dhaka, in Rajshahi. It plays a key role in agricultural financing across the northwestern region, operating 383 branches—333 in rural areas and 50 in urban centres.
