Bangladesh Krishi Bank
Corporate brand
UnclaimedA fully government-owned Bangladeshi specialized bank focused on agricultural credit, farmers, and rural development.
Last updated August 25, 2026
Overview
Bangladesh Krishi Bank (BKB) is a fully government-owned specialized bank serving Bangladesh’s agricultural economy and rural communities. Established in 1973, it is one of the country’s state-owned banks and was created with a policy mandate different from that of a conventional commercial bank: its central role is to extend financial services to farmers, agricultural producers, and businesses connected with the rural economy. Its activities include agricultural lending, crop finance, financing for agricultural machinery and equipment, and other forms of rural credit. The bank also provides broader banking services to individuals, enterprises, and institutions across Bangladesh. BKB’s importance is closely connected with the structure of Bangladesh’s economy. Farming and related activities employ a large share of the population, while many agricultural borrowers operate on a small scale and have limited access to formal finance. Through its branch network and specialized lending mandate, the bank acts as a public-policy channel for agricultural credit. In 2009, it was reported to have 952 branches, described at the time as the largest branch network among banks in Bangladesh. This geographic reach supports the bank’s role in distributing credit beyond the country’s major commercial centers. The bank’s lending mandate has also been subject to government and regulatory direction. In 2006, BKB was ordered to ensure a 2 percent interest rate on loans to farmers. It was subsequently asked to stop extending loans for non-agricultural purposes after providing substantial non-agricultural lending between 2010 and 2013. The bank has worked with public agricultural agencies, including the Department of Agricultural Extension, on targeted lending programs. In Netrokona District, for example, it participated in financing for Boro rice cultivators. BKB has faced recurring financial, governance, and credit-quality pressures. Reported losses included approximately Tk 1.589 billion in 2015, and the bank was identified as having the highest loss among several loss-making banks in Bangladesh in the first quarter of 2021, with a reported loss of Tk 7.74 billion. In June 2022, reports identified a capital shortfall of Tk 128.77 billion. These figures reflect the challenges of operating a policy-oriented bank that extends credit to priority sectors while managing repayment risk, directed lending, and public-service expectations. The bank has also appeared in investigations and legal proceedings concerning alleged fraudulent loans and embezzlement. These matters involved bank officials and private borrowers or business groups and resulted in actions by Bangladesh’s Anti-Corruption Commission. Such cases have contributed to scrutiny of internal controls, loan approval practices, and the governance of state-owned financial institutions. Separately, the High Court asked BKB to explain the waiver of interest on a loan associated with businessman and politician Abbas Ali. Despite these difficulties, BKB remains an active pillar of Bangladesh’s public agricultural-finance system. It has received recognition from Bangladesh Bank for loan distribution and has participated in relief and public-support activities, including a reported contribution to the Prime Minister’s relief fund. Its current identity is therefore defined by a combination of state ownership, extensive domestic distribution, agricultural specialization, and the policy responsibilities associated with financing farmers and rural development.
History
Bangladesh Krishi Bank was established in 1973 as a state-owned specialized financial institution for Bangladesh’s agricultural sector. Its formation reflected the government’s objective of expanding formal credit to farmers and supporting agricultural production in a country where rural households and small producers have historically had limited access to commercial finance. The bank’s primary constituency has remained farmers and agricultural businesses, although its banking activities have also included rural enterprises, small and medium-sized businesses, deposits, and other conventional services. BKB developed an extensive domestic branch network to reach customers outside the principal urban centers. By 2009, it was reported to have 952 branches, the largest branch network among banks in Bangladesh at that time. This distribution infrastructure strengthened its position as a vehicle for government-supported agricultural lending and rural financial inclusion. The bank has participated in targeted programs with public agricultural agencies, including lending to Boro rice cultivators in Netrokona District through cooperation with the Department of Agricultural Extension. Government policy has periodically shaped the bank’s operating model. In 2006, BKB was ordered to maintain a 2 percent interest rate on loans to farmers. The bank was later instructed to stop providing loans for non-agricultural purposes, following reports that it had extended Tk 19.26 billion in non-agricultural loans between 2010 and 2013. The episode illustrated the tension between BKB’s specialized agricultural mandate and the broader credit demands placed on a large state-owned bank. The bank experienced several leadership changes during the period documented in public sources. M Fazlul Haque became managing director in November 2006. In January 2008, Khondkar Ibrahim Khaled was appointed chairman and Md Mukter Hussain managing director. Sanchia Binte Ali subsequently served as managing director, followed by Shirin Akhter, who was appointed to that position in August 2021 and later retired. BKB has also faced serious governance and credit-administration scrutiny. In 2014, four officials were investigated by the Anti-Corruption Commission over an alleged fraudulent Tk 1.52 billion loan involving businessman Wahidur Rahman and the Firoz Group. In 2017, the commission brought a case against six people, including three bank officials, over alleged embezzlement of Tk 4.3 billion associated with M/S RN Sweaters. A further case was filed in 2018 against six officials and Wahidur Rahman concerning the earlier alleged Tk 1.52 billion embezzlement. These allegations are reported as legal and investigative matters rather than established findings of liability. Financial performance has been another continuing challenge. BKB reportedly recorded a loss of Tk 1.5893 billion in 2015. In the first quarter of 2021, it was listed among nine Bangladeshi banks reporting losses and was reported to have the largest loss in that group, at Tk 7.74 billion. The High Court also asked the bank to explain a reported waiver of Tk 480 in interest on a loan connected with businessman and politician Abbas Ali. In June 2022, reporting identified BKB as having Bangladesh’s largest capital shortfall, at Tk 128.77 billion. The bank also sought deposits from state-owned enterprises during this period. Alongside these difficulties, BKB has continued to perform public and development-oriented functions. It received an appreciation letter from Bangladesh Bank for distributing loans and reportedly contributed Tk 10 million to the Prime Minister’s relief fund. The bank remains active as a government-owned agricultural lender whose public identity combines rural outreach, farmer finance, policy-directed credit, and the institutional challenges associated with state-owned banking.
- 2022
Capital shortfall reported
[1]BKB was reported to have Bangladesh’s largest capital shortfall, amounting to Tk 128.77 billion.
- 2021
Leadership transition and reported loss
[1]Shirin Akhter became managing director, while BKB was reported to have the largest loss among a group of loss-making banks in the first quarter.
- 2015
Loss and targeted rice-farmer lending
[1]BKB reported a loss and worked with the Department of Agricultural Extension on loans for Boro rice cultivators in Netrokona.
- 2013
Non-agricultural lending questioned
[1]The bank was asked to stop non-agricultural lending after reports of Tk 19.26 billion in such loans between 2010 and 2013.
- 2009
Extensive branch network reported
[1]BKB was reported to operate 952 branches, the largest branch network among Bangladeshi banks at that time.
- 2006
Farmer-loan interest directive
[1]The bank was ordered to ensure a 2 percent interest rate on loans to farmers.
- 1973
Bank established
[1]Bangladesh Krishi Bank was established as a fully government-owned specialized bank serving farmers and the agricultural industry.
Products and positioning
State-owned specialized agricultural and rural-development bank
Agricultural finance
Agricultural and crop loans
BKB’s core offering is credit for farmers and agricultural production. Crop lending supports seasonal cultivation and farm operating needs, while targeted programs can be directed toward particular crops or producer groups. The bank’s policy mandate makes agricultural credit its defining product area.
Agricultural finance
Agricultural machinery loans
The bank provides financing connected with agricultural machinery and equipment, helping rural producers obtain productive assets. This line extends the bank’s role beyond short-term crop finance toward investment in agricultural capacity.
Business banking
Rural enterprise and SME finance
BKB also serves rural enterprises and small and medium-sized businesses. These activities support businesses linked to agriculture and the rural economy, although the bank has faced policy scrutiny when lending extended beyond its agricultural mandate.
Retail and institutional banking
Deposits and general banking services
In addition to specialized lending, BKB accepts deposits and provides broader banking services through its nationwide branch network. The bank has also sought deposits from state-owned enterprises as part of its funding activities.
Controversies
2021
Court scrutiny of interest waiver
The High Court requested an explanation for the reported waiver of Tk 480 in interest on a loan associated with Abbas Ali.
2018
Follow-up case over alleged loan embezzlement
A case was filed against six bank officials and Wahidur Rahman concerning alleged embezzlement of Tk 1.52 billion during 2009–2013.
2017
Alleged RN Sweaters embezzlement
The Anti-Corruption Commission sued six people, including three BKB officers, over alleged embezzlement of Tk 4.3 billion involving M/S RN Sweaters.
2014
Investigation into alleged fraudulent Firoz Group loan
The Anti-Corruption Commission investigated four BKB officials over an alleged fraudulent Tk 1.52 billion loan involving Wahidur Rahman, owner of the Firoz Group.
Marketing campaigns
- 2015Boro rice cultivator lending program
Netrokona District, Bangladesh
BKB worked with the Department of Agricultural Extension to provide loans to Boro rice cultivators, linking the bank’s agricultural-credit mandate with a government-supported crop program.
Outcome. The program expanded targeted credit availability for rice farmers; a broader outcome assessment is not specified in the reference material.
Brand decisions
2022
Seek deposits from state-owned enterprisesStrategyBackground
The bank faced a reported capital shortfall and sought additional institutional funding support.
Action taken
BKB asked state-owned enterprises to place deposits with the bank.
Aftermath
The measure was intended to strengthen the bank’s deposit base; the longer-term financial result is not specified in the reference material.
Reported capital shortfall. Tk 128.77 billion (June 2022)
2013
Refocus on agricultural lendingStrategyBackground
BKB had reportedly provided Tk 19.26 billion in non-agricultural loans between 2010 and 2013 despite its specialized mandate.
Action taken
The bank was asked to stop providing loans for non-agricultural purposes.
Aftermath
The directive emphasized the bank’s agricultural and rural-development mission and increased scrutiny of its loan portfolio.
2006
Maintain subsidized farmer-loan pricingPrice changeBackground
The government directed the specialized agricultural bank to ensure a 2 percent interest rate for farmer loans.
Action taken
BKB was required to provide qualifying farmer loans at the directed interest rate.
Aftermath
The decision reinforced BKB’s policy-bank role and limited its freedom to price agricultural credit solely according to commercial risk.
Recent events
- 2022
BKB reported the country’s largest capital shortfall[1]
Other
In June 2022, the bank was reported to have a capital shortfall of Tk 128.77 billion.
- 2022
BKB sought deposits from state-owned enterprises[1]
Other
The bank sought deposits from state-owned enterprises as part of its funding and liquidity efforts.
- 2021
BKB recorded the largest loss among selected loss-making banks[1]
Other
BKB was identified as one of nine Bangladeshi banks reporting a loss in the first quarter, with a reported loss of Tk 7.74 billion, the highest among the group.
- 2021
Shirin Akhter appointed managing director[1]
Leadership change
Shirin Akhter was appointed managing director in August 2021 and later moved to Karmasangsthan Bank after retiring.
- 2015
BKB reported a loss and supported Boro rice farmers[1]
Other
BKB reportedly incurred a loss of Tk 1.5893 billion and worked with the Department of Agricultural Extension in Netrokona to provide loans to Boro rice cultivators.
- 2015
Moulvibazar branch robbed[1]
Other
More than Tk 600,000 was reported stolen from the bank’s Moulvibazar branch.
- 2013
BKB faced scrutiny over non-agricultural lending[1]
Regulation · Other
The bank was asked to stop lending for non-agricultural purposes after reports that it had provided Tk 19.26 billion for such purposes between 2010 and 2013.
- 2009
BKB reported as Bangladesh’s largest bank by branch count[1]
Other
The bank was reported to operate 952 branches, giving it the country’s largest branch network at that time.
- 2008
New chairman and managing director appointed[1]
Leadership change
Khondkar Ibrahim Khaled became chairman and Md Mukter Hussain became managing director.
- 2006
BKB ordered to maintain a 2 percent interest rate on farmer loans[1]
Regulation · Pricing
The bank was directed to ensure a 2 percent interest rate on loans to farmers, reinforcing its policy role in agricultural finance.
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Sources2 sources
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