Question 1

What is Bangladesh Krishi Bank?

Accepted Answer

Bangladesh Krishi Bank (BKB) is a fully government-owned specialized agricultural bank in Bangladesh. Established to serve the farming community and agricultural sector, BKB is one of the largest state-owned banks in the country. The bank's primary mission is to provide accessible and affordable credit facilities to small and marginal farmers, sharecroppers, and entrepreneurs engaged in agro-based and cottage industries.

As of 2024, BKB operates over 1,038 branches across Bangladesh, making it one of the most extensive banking networks in the nation. The bank serves customers throughout all divisions except Rajshahi and Rangpur, which are served by the separate Rajshahi Krishi Unnayan Bank.

Question 2

When was Bangladesh Krishi Bank founded?

Accepted Answer

Bangladesh Krishi Bank was established in 1973 under the Bangladesh Krishi Bank Order (President's Order No. 27 of 1973). The bank was created shortly after Bangladesh's independence as part of the new nation's efforts to modernize and support its agricultural sector.

BKB's predecessor was the Agricultural Development Finance Corporation (ADFC), which was formed in 1952 primarily to serve large farmers. In 1958, this entity was renamed the Agricultural Development Bank of Pakistan (ADBP) with a mandate to serve small farmers. Following Bangladesh's liberation in 1971, the government nationalized and reorganized financial institutions, leading to the creation of Bangladesh Krishi Bank in 1973.

The bank began commercial operations in 1977 to generate additional loanable funds by tapping surplus rural and urban savings for investment in the rural economy.

Question 3

Where is Bangladesh Krishi Bank headquartered?

Accepted Answer

Bangladesh Krishi Bank's head office is located at Krishi Bank Bhaban, 83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh. Motijheel is Dhaka's central business district and serves as the financial hub of the country.

The head office houses seven divisions headed by General Managers, 25 departments, and a staff college. The bank also maintains a Local Principal Office in Dhaka headed by a General Manager.

Question 4

Where does Bangladesh Krishi Bank operate?

Accepted Answer

Bangladesh Krishi Bank operates throughout Bangladesh except in the Rajshahi and Rangpur divisions, which are served by a separate specialized agricultural bank. The bank maintains operations in seven divisions: Dhaka, Chittagong, Barishal, Khulna, Sylhet, Mymensingh, and part of the country's other regions.

BKB's extensive network includes 1,038 online branches spread across 48 districts. The bank has strategically placed branches in rural areas, often in regions with weak economic bases, to ensure agricultural credit reaches farmers in remote locations. For administrative oversight, the bank operates 9 divisional offices and 54 chief regional and regional offices for close supervision of branch activities.

The bank also has 16 authorized dealer branches for foreign exchange operations and 63 field-level audit offices to ensure internal control and compliance.

Question 5

What services does Bangladesh Krishi Bank offer?

Accepted Answer

Bangladesh Krishi Bank provides comprehensive banking services focused on agricultural development while also offering commercial banking products:

Agricultural Credit Services: BKB provides financing for all four agricultural sub-sectors including crop production, fisheries, livestock, and forestry. The bank offers specialized loans to small and marginal farmers, sharecroppers, and agricultural entrepreneurs with favorable interest rates mandated by the government.

Commercial Banking: Since 1977, the bank has offered commercial banking services including savings accounts, current accounts, fixed deposits, and other retail banking products to generate funds for agricultural lending.

Agro-based Industry Financing: The bank provides credit facilities to entrepreneurs developing agro-based industries and cottage industries, supporting rural economic development beyond traditional farming.

Digital Banking: All 1,038 branches are online branches, providing modern digital banking infrastructure. The bank has integrated technology to improve service delivery and transaction processing.

Foreign Exchange Services: Through its 16 authorized dealer branches, BKB offers foreign exchange services including currency exchange and international remittance facilities.

Question 6

What makes Bangladesh Krishi Bank unique?

Accepted Answer

Bangladesh Krishi Bank holds several distinctive characteristics that set it apart in Bangladesh's banking sector:

Specialized Agricultural Focus: BKB is one of only two state-owned banks in Bangladesh dedicated exclusively to agricultural financing. This specialization allows the bank to develop expertise in agricultural credit assessment and rural finance.

Extensive Rural Reach: With over 1,038 branches, BKB has deliberately expanded its network into rural and economically underdeveloped areas where commercial banks typically avoid operations. This commitment to financial inclusion has made banking services accessible to farmers in remote regions.

Government-Mandated Social Mission: The bank operates under government directives to provide credit at subsidized interest rates to support farmers and agricultural development. This social banking mandate prioritizes agricultural development over profit maximization.

Historical Significance: As one of the first financial institutions established after Bangladesh's independence, BKB has played a crucial role in the country's agricultural modernization and rural development for over five decades.

Question 7

What type of financial institution is Bangladesh Krishi Bank?

Accepted Answer

Bangladesh Krishi Bank is a Specialized Government Bank (also known as a State-Owned Specialized Bank) in Bangladesh's banking structure. This classification is specific to Bangladesh's financial system and distinguishes BKB from commercial banks, Islamic banks, and foreign banks.

As a specialized bank, BKB operates under the Banking Company Act of 1991 while maintaining a specific sectoral focus on agriculture. The bank has an authorized capital of 15,000 million taka and paid-up capital of 9,000 million taka, both fully paid by the Government of Bangladesh.

The bank is governed by a Board of Directors comprising 11 members appointed by the government, including a Chairman and Managing Director who serves as Chief Executive. This governance structure ensures alignment with national agricultural policy objectives while maintaining banking operational standards.

In Bangladesh's six-tier banking structure (Nationalized Commercial Banks, Specialized Banks, Private Commercial Banks, Islamic Banks, Foreign Banks, and Development Financial Institutions), BKB falls under the Specialized Banks category alongside institutions like Rajshahi Krishi Unnayan Bank and Bangladesh Development Bank Limited.

Bangladesh Krishi Bank

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About Bangladesh Krishi Bank in Bangladesh