Dream of RAKUB and the role of branch control department in its implementation

--Md. Abdul Latif

Md. Abdul Latif

Rajshahi Krishi Unnayan Bank (RAKUB) is a government owned specialized bank which provides credit facilities for agriculture and agri based all activities. The bank has 18 departments in its head office to accomplish its all activities successfully. The Branch Control Department is one of the very important departments which performs multiple functions. Deposit mobilization, introducing and implementing deposit policies, organizing different meetings, seminars, workshops, opening new branches, conducting inquiries on different complaints and irregularities, ensuring transparency at all level etc. are important and regular tasks of this department.

Rajshahi Krishi Unnayan Bank (RAKUB) has been encountering loss since the financial year 2004-2005 constantly. It is observed at the end of every financial year that in stead of hundred percent achievements in all activities such as loan disbursement, loan recovery, deposit collection etc., desired success in making profit is not attained. Analyzing the reasons thoroughly behind the prevailing conditions for incurring loss, the bank management has undertaken RAKUB’s dream, goal and perspective plan from the financial year 2013-2014 for turning the it to a profit making bank. This planning has been more clearly and elaborately designed and introduced in the current financial year 2014-2015.

Dream of RAKUB

a.         Turning RAKUB to a profit oriented organization,

b.         Making RAKUB an self-reliant organization.

Goal of RAKUB

a.         Raising the deposit position to Tk. 3800.00 crore and a strong base of deposit,

b.         Ensuring transparency in target base new loan sanction and disbursement,

c.         Reducing the percentage of classified loan below 25 percent,

d.         Achieving hundred percent of loan recovery target,

e.         Fixing profit targets at field level and undertaking necessary initiatives in ensuring it,

f.          Establishing independent fund management capacity,

g.         Strengthening administrative and financial discipline,

h.         Ensuring monitoring, supervision, analyzing and accountability,

i.          Ensuring high quality customer services,

j.          Maintaining close relationship with local administration.

Role of the Branch Control Department in implementing dream and achieving targets of RAUB

Deposit Opening Fair

w         The major strength in operating banking business is deposit. Branch Control Department has been working sincerely to increase deposit position of the bank according to the instructions of the Board of Directors and the Bank Management. In the last financial year 2013-2014 the bank’s total target of deposit collection was Tk. 3000.00 crore. An amount of Tk. 3047.00 crore was achieved against the target of Tk. 3000.00 crore for skilled and sincere monitoring and supervision of Branch Control Department. In order to achieve such a big target, different initiatives and programs were undertaken by this department. Among the programs School Banking is an important one. Under School Banking Deposit Program a number of 91,386 deposit accounts are opened up to 30 September 2014 where an amount of Tk. 427.55 lac is collected.

w         The bank management has an instruction for the branches to organize ‘Deposit Fortnight’ in the months of September and January of each financial year. During the last financial year 2013-2014 in the September fortnight an amount of Tk. 1364.77 lac and in the January fortnight an amount of Tk. 1347.15 lac were collected where a number of 6,445 and 10,853 deposit accounts were involved respectively.

w         In the month of March of each financial year one month long ‘Deposit Account Opening Fair’ is organized in the bank with the view to motivating the officers and staff. In ‘Deposit Account Opening Fair’ of 2013-2014 an amount of Tk. 22373.24 lac was collected where a number of 33,274 accounts were involved.

w         A program of opening at least one new deposit account in each working day by an individual officer/staff has been undertaken in the bank in order to involve all officer/ staff in account opening activities.

w         With the view to strengthening deposit collection activities, Branch Control Department has introduced some attractive new deposit schemes such as `RAKUB Double Money Scheme (RDMS)’, `RAKUB Triple Money Scheme (RTMS)’, ‘RAKUB Monthly Profit Scheme (RMPS)’ RAKUB Millionaire Deposit Scheme (RMDS)’, etc. being approved by the Board of Directors and the Bank Management. Such new deposit schemes help increase the deposit position of the bank greatly. As a result, the bank achieved an amount of Tk. 3047.00 crore against the target of Tk. 3000.00 crore for deposit collection in the financial year 2013-2014. As on 06 November 2014 the total amount of deposit of the bank was Tk. 3186.64 crore which could be considered as the fulfilment of one of the dreams because such great performance was never achieved in the history of RAKUB.

w         With the view to strengthening deposit position of the bank, Branch Control Department has introduced a low interest bearing deposit scheme entitled `RAKUB Housewife Saving Scheme (RGSS)’, being approved by the Board of Directors and the Bank Management. The rate of interest under this scheme is 9%.

School Banking Conference

w         Besides, the achievements in interest bearing/low cost deposits of the bank as on June 2014 are shown in the table as follows:

w         The Branch Control Department provides financial assistance as grant to different people and organizations under CSR program of the bank with the approval of the Board of Directors. An amount of Tk. 46.61 lac was granted in the last financial year 2013-2014. Distributing gifts along with crest among title-awarded freedom fighters, distributing worm clothes among freedom fighters, physically disable and financially insolvent people, distributing clothes and foods among the poor people in the months of Ramadan, etc. are being under taken as CSR activities.

Finally, it can be said that RAKUB has started to turn back and forward towards profit making.