National Credit and Commerce (NCC) Bank has taken a new approach to banking for cluster financing to help innovative initiatives flourish across the country.

The private sector bank has already offered a maximum of Tk 5 lakh collateral-free loans to the entrepreneurs of different sectors in Tangail, Rajshahi and Syedpur districts.

In a press briefing yesterday, Managing Director Nurul Amin announced the initiatives on the occasion of its 25th founding anniversary.

NCC Bank's acting chairman and lawmaker Harunur Rashid, Additional Managing Director Golam Hafiz Ahmed and deputy managing directors AK Md Siddique, Mohabbat Khan and TM Faruque Chowdhury were also present.

Amin said the bank has taken the initiative to help prospective entrepreneurs in different parts of the country who are not getting any help now to flourish.

He said the initiative will help increase the country's growth and create employment.

Amin said the bank gave loans to 1,000 weavers in a remote village of Rampur at Kalihati upazila in Tangail district.

The loan amount of Tk 5 lakh was collateral free, but if a person seeks Tk 10 lakh loan, he needs to produce a guarantor. In case of cluster financing the rate of interest is 9 percent.

Amin said, in the first phase they have begun the financing programme in three areas and they have been evaluating it through the bank's branches. They have plans to expand the programme to cover other areas.

Besides, the bank is taking an area-based approach through which it plans to give adequate loans to entrepreneurs of an area where a crop or business has high prospects.

Amin projected the progress of the bank in the last 25 years and said, in 2010 the paid-up capital of the bank was Tk 600 crore, which was Tk 228 crore in 2009.

The amount of classified loan of NCC Bank is now only 2.27 percent.

The bank also plans to introduce a system for loan disbursement and realisation through mobile phone. The bank will soon start services of sending remittance through cell phones, Amin said.

NCC Bank has signed an agreement with a cell phone company for remittance services.

News: The Daily Star/ Bangladesh/ May-17-2011