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Source: ESPN
Probashi Kalyan Bank: Not helpful for migrant workers
MEDIA reports indicate that six-year old Probashi Kalyan Bank (PKB) is still unable to receive migrant workers’ remittances for which it was established. As PKB is still a specialized bank and not a commercial bank it is not authorized to open foreign exchange houses abroad, though it was its core mission principles. PKB also failed to extend migration and rehabilitation loans to a significant number of returnee migrant workers for which it was established by the government. In six years, PKB extended rehabilitation loans to only 156 returnee workers in distress. In this backdrop, the government should either run the bank properly or shut its operation quickly.
The bank extended migration loans to only 22,836 workers to facilitate their migration during the period when over 33 lakh workers migrated for work abroad. Due to a shortage of paid up capital, PKB has not been given the status of a commercial bank by the Bangladesh Bank until now. PKB has Tk five crore as paid up capital and it borrowed Tk 145 crore from the Wage Earners’ Welfare Fund created with contributions from the migrant workers. Despite its commitment, the Finance Ministry did not provide Tk 250 crore as credit to make up PKB’s paid up capital shortage.
PKB has not been able to provide its charter bound services to the workers due to fund shortages. Insiders said the bank completely failed to serve the country’s migrant workers due to its rigid collateral policy of extending loans carrying high interest. They called PKB’s conditions requiring workers to deposit their land ownership documents and two bank account holders standing as guarantors as ‘completely unrealistic.’ PKB’s migration loan carries nine per cent interest and its rehabilitation loan carries 11 per cent interest. The bank should lower the lending rates and simplify collateral policy to make it useful for the poor workers.
The government should make the bank effective and helpful for migrant workers and extended its paid up capital to enable it to run efficiently. If necessary, the charter of the bank can be amended. It is unacceptable that the bank got funds from migrant workers but are not providing them with due services. which form part of its core mission.
The bank extended migration loans to only 22,836 workers to facilitate their migration during the period when over 33 lakh workers migrated for work abroad. Due to a shortage of paid up capital, PKB has not been given the status of a commercial bank by the Bangladesh Bank until now. PKB has Tk five crore as paid up capital and it borrowed Tk 145 crore from the Wage Earners’ Welfare Fund created with contributions from the migrant workers. Despite its commitment, the Finance Ministry did not provide Tk 250 crore as credit to make up PKB’s paid up capital shortage.
PKB has not been able to provide its charter bound services to the workers due to fund shortages. Insiders said the bank completely failed to serve the country’s migrant workers due to its rigid collateral policy of extending loans carrying high interest. They called PKB’s conditions requiring workers to deposit their land ownership documents and two bank account holders standing as guarantors as ‘completely unrealistic.’ PKB’s migration loan carries nine per cent interest and its rehabilitation loan carries 11 per cent interest. The bank should lower the lending rates and simplify collateral policy to make it useful for the poor workers.
The government should make the bank effective and helpful for migrant workers and extended its paid up capital to enable it to run efficiently. If necessary, the charter of the bank can be amended. It is unacceptable that the bank got funds from migrant workers but are not providing them with due services. which form part of its core mission.
