He said it is not possible for the state-owned bank to survive in the competitive market without the state guarantee for the next two years.
The move has been taken as the bank failed to repay the loan of Bangladesh Bank in due time. For failure to repay loan, the central bank cut the bank’s Tk471.35 crore profit during the 2009-12 period.
Finance ministry has agreed to give the guarantee, according to a summary signed by finance secretary. It’s now waiting for the approval of Finance Minister AMA Muhith.
According to the summary, Rakub will repay its all loan to the government institutions and Bangladesh Bank as per the condition.
The guarantee will remain effective until June 30, 2017. Rakub will provide classified loan and repayment will be in instalment within the duration of the guarantee.
The financial health of the Rakub is still weak despite making a profit of Tk3.36 crore in fiscal year 2014-15.
The operational cost of Rakub is quit high which indicates inefficient management of the bank.
The total paid-up capital of the bank now stands at Tk645 crore and its risk-weighted assets amount to Tk3,856.16 crore. Under the BASEL II, the paid up capital of Rakub requires Tk400 crore.
The accumulated loss of the bank stands at Tk1,072.47 crore and the capital deficit is Tk761.69 crore.
The cash deposit ratio is 1:7.6. The bank incurred a loss of Tk513 crore in the fiscal year 2013-14.
Thursday, June 04, 2026
