Government to give Tk1,000cr to PKB

News Desk :
The government approved a fund of Tk1, 000 crore for Probashi Kallyan Bank (PKB) in order to meet its growing demand for loans among migrant workers.
The fund will be given in four installments at bank rate, officials said.
The Financial Institutions Division (FID) under the Ministry of Finance has granted guarantee on some conditions earlier this month against the fund that will be disbursed for managing the PKB’s ongoing migration, rehabilitation, and Bangabandhu Immigrant’s Large Family Loan schemes.
The Bangladesh Bank (BB) has already given consent in the light of the guarantee, and the PKB has been asked to go for a participatory agreement, said a central bank official.
The bank will receive Tk250 crore from the fund in the first installment.
Then it will get another Tk250 crore more in the second installment – based on the report that the fund has been properly utilized, he added.
As per the FID’s conditions, the term of the state guarantee will be viable for 10 years from the date of its issuance.
Specific plans should be adopted to reduce deposit deficit and credit-deposit ratio of the bank as well as increase its business scope.
Besides, a comprehensive business plan will have to be prepared and sent to the Finance Division, considering its importance to manage the bank more efficiently and overcome the current flimsy situation.
About 600,000-700,000 workers go abroad generally each year. Demand for the PKB’s migration loan and its loan disbursement increased in recent years.
According to official data, the bank distributed Tk784 crore in the first 10 years since launching its operation in 2011 to provide collateral-free loans to overseas job seekers for migration and rehabilitation.
The PKB provided Tk900 crore loan in FY22.
In the current FY, the bank has a plan to disburse Tk1, 000 crore.
A total of 107,529 migrant workers received loans from the PKB since its inception, of who majority are migration loan receivers.
It now runs 101 branches across the country and has a plan to set up branches in every upazila.
The bank has increased human resources to 450 from 167 recently.