Mutual Trust Bank to finance agri-based businesses under BB scheme

Mutual Trust Bank PLC (MTB) has signed an agreement with Bangladesh Bank under the central bank’s Tk 3,000 crore refinance fund aimed at creating a special agriculture-based economic hub in the northern region of the country.

The initiative is designed to strengthen the agricultural value chain by supporting agricultural production, preservation, transportation, marketing, processing, value addition, infrastructure development and export-oriented agricultural activities.

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The fund will cover the districts under the Rajshahi and Rangpur divisions, according to a press release.

AKM Sayduzzaman, director of Bangladesh Bank, and Chowdhury Akhtar Asif, managing director (acting) of Mutual Trust Bank PLC, signed the agreement at the central bank’s headquarters in Dhaka recently.

Under the scheme, participating banks will receive refinance facilities from Bangladesh Bank at an interest/profit rate of 4 percent, while the customer-level interest/profit rate will be capped at 9 percent. The scheme has a tenure of three years from the date of issuance of the circular.

The fund has been allocated across four major areas: 15 percent for agricultural production; 35 percent for preservation, transportation, marketing and infrastructure; 35 percent for production and processing of agro/agriculture-based products; and 15 percent for exports of agricultural and agro-based products.

Md Kabir Ahmed, deputy governor of Bangladesh Bank, attended the ceremony as the chief guest.

Through its participation in the initiative, MTB aims to contribute to expanding access to finance for agriculture and agriculture-based businesses in the northern region and support the development of a more efficient and sustainable agricultural value chain.

Sanjib Kumar Dey, head of the SME and Agri Banking Division of Mutual Trust Bank PLC, along with other officials from Bangladesh Bank, was also present at the signing ceremony.