RAKUB is collecting deposits at high interest, but lending at the rate set by the government. Despite the bank's interest rate being up to 13.55 percent, the bank's interest rate for agricultural and rural loans is 12.55 percent. That means RAKUB earns less from interest.
People concerned said a change in RAKUB's operating model was necessary and the problems could be alleviated if the government subsidized farmers' loan interest instead of repeatedly providing capital, and this would strengthen its financial base and increase transparency.
Alauddin A Majeed served RAKUB as the Managing Director. He was also the Chairman of BKB and Basic Bank. He told Prothom Alo that the merger of the two banks would not bring any benefits, but it could lead to a backlash from the northern region. He said that idle bank branches can be handed over to NGOs, which will finance agriculture through these branches and this will benefit the farmers and banks can also make profits from it.
Alauddin A Majid said that the government must decide whether these special banks will operate commercially or give loans to farmers at low interest, and the government should subsidize the latter. Otherwise, it is difficult to earn profits from both these banks, also both the banks have to work in a professional manner.