Bangladesh is a developing country. Its economy is depending on agriculture. So the development of this country’s economy depends upon the development of agricultural sector and its sub-sectors. Food self-sufficiency, employment creation and poverty alleviation are strongly related with the development of agricultural sector. Agriculture and Rural sectors play a vital role to attain substantial growth through ensuring food self-sufficiency and employment creation with a large number of populations; on the other hand, GDP growth mostly depends on the expected agricultural production. Banking sector is a vital sector for economic development of a country. Rajshahi Krishi Unnayan Bank is one of the largest institutions of agricultural credits in the North- West region of the country. It was established by the President's Ordinance No.58 of 1986 with the aim of providing institutional agricultural credit for optimum utilization of agricultural potentials of Rajshahi Division. Taking over all the 253 branches and other offices along with assets and liabilities of the Bangladesh Krishi Bank within Rajshahi Division, RAKUB started functioning on 15 March 1987.
It creates loan to agricultural sectors, agro-business & agro- industries for development of economy. But for a long period of RAKUB has been facing various problems, such as shortage of manpower, inefficiency of management, low earnings, shortage of fund, huge over dues, political pressure for recovery loan etc. If the bank can be able to increase its management efficiency, reduce the outstanding loan and mainly develop its financial activities then it may be a profitable bank.
2. Literature Review
The bank introduced a five year reform program for...