An Internship Report On Overall Banking System of Rajshahi Krishi Unnayan Bank

2.1 British Period:

         In the British regime, the people of bangle was included in the “Dadon” business of indigenous landlord, moneylender etc. As a result, all the belongings of the farmers were sold in the bid and they had to stay with much difficulty. In this circumstances Shar-e-Bangla. A.K. Fazlul Haque established “Rin Salishi Board” for the sack of farmers.

        As a result, many farmers who were engaged with the exploitation by the moneylenders and landlords, breathed with peace.

2.2 Pakistan Period:

       In 1947 the Indian sub-continent was freed from the British colonial rule and in the Indian sub-continent originated by the two independent states namely India and Pakistan. Bangladesh was indicated as East Pakistan as a part of Pakistan. In 1952 Pakistan government established

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“Agricultural Development Finance Corporation” (ADFC) to disburse loan in agriculture sector.

      Pakistan government realized the importance of agro-loan and agricultural production, established a financial institution named “Pakistan Krishi Bank”. Pakistan Krishi Bank started its operations from 1958. This two state owned financial institution merged in 1962 and established a new financial institution named “Pakistan Agriculture Development Bank” (ADBP). This institution provides state facilities to the farmers in many ways. 

2.3 Bangladesh period:

        The evolution of Bangladesh made through the “Great Liberation War” on 16 December in 1972. After independence of Bangladesh “Pakistan Krishi Unnayan Bank” was renamed as “Bangladesh Krishi Unnayan Bank”.

        The president’s ordinance number – 27, in 1973, “Pakistan Krishi Unnayan Bank” renamed Bangladesh Krishi Unnayan Bank. After the evolution of Bangladesh and with the time being, various organizations are working independently and freely. For that reason the consciousness of people is increased. The creation of Water Development Board, Bangladesh Rice Research Institution, Rural Electrification Board, and

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other necessary institutions are made. Control of flood, rice of new quality and introduction of other high yielding crops and the increasing demand d of its, institutional loan demand of farmers increased. In the earlier time people were not familiar with bank loan or institutional loan, for that reason they lend from their relatives and friends. But vow bank offer various types of loan to the farmers and they are somewhat bank oriented now. But it becomes very difficult for some limited banks to meet up the multiple demand of loan specially crop loan. Since Bangladesh is an agro-based country; the demand for the loan of Krishi Bank has been increased remarkably. It becomes very difficult for a Dhaka based head office of Krishi Bank to manage agro-loan in the remote areas of the country. For this reason, government felt to decentralize the Krishi Bank in the divisional areas and Rajshahi division was the first choice. The Northern areas of Bangladesh were not developed in comparison with other areas of Bangladesh; it is one of the main reasons of establishing RAKUB. Rajshahi Krishi Unnayan Bank was established in 1986 with the ordinance number 58 of the president. RAKUB started its operations from 15 March 1988.

2.4   Present Condition:

Institutional agricultural credit plays a crucial role in the modernization of agriculture. Adequate flow of credit can remove the financial constraints of the farmers and provide the incentive to adopt new technologies that

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would otherwise be more slowly accepted. Credit facilities also help the process of commercialization of subsistence agriculture. RAKUB realized this situation and performed their job tremendously. Development of agro-based industries, self-employment, solving unemployment problems, providing money fro expansion of socio-economic activities and provide consultancy are the main objective of establishing RAKUB. After the construction of Jamuna Multipurpose Bridge, this responsibility has been increased tremendously. In the very beginning of RAKUB, the number of branches was 253. Now the number of branches is 349. At his outset of bank, the credit balance was Tk 610 crores and now credit balance is Tk 1406 crores. For the well being of all industries farmers in the northwest region in Bangladesh, RAKUB is continuing relentless efforts and taking more than one hundred and seven loan programs.