The government is going to provide a grant worth Tk 2.0 billion to Bangladesh Krishi Bank (BKB) in a move to recapitalise the state-owned specialised bank.
The Bangladesh Bank (BB) has recommended the government for offering the amount of money against BKB's deficit in provisioning.
Earlier, the specialised bank sought for a government grant to help it raise investment in the country's agricultural sector.
The BB in a report said the rate of classified loans and advances of the BKB improved considerably in 2005.
The rate of classified loans was 41.43 per cent in 2005 against 54.13 per cent in 2004.
The BKB's overall deficit in capital until 2004-05 was about Tk 6.51 billion.