Agricultural Bank Makes Remarkable Leap in Remittance Collection

Bangladesh’s remittance inflow landscape has undergone a noticeable shift this year, with Bangladesh Krishi Bank emerging as the second-largest remittance-collecting bank in the country. According to data compiled from January to November, Islami Bank continues to hold the top position, while Agrani Bank has secured third place.

Islami Bank and Agrani Bank have historically been strong performers in attracting remittance inflows. However, Krishi Bank’s sudden rise has drawn considerable attention. Its success is attributed to uninterrupted services during the pandemic, an extensive nationwide branch network, and improved service quality. In addition, the government’s dependence on Krishi Bank for payments related to imports of electricity, energy and food has naturally increased the bank’s demand for foreign currency, positioning remittance inflows as a major source of fulfilling that need.

As reported by the central bank through national media, the country received 2,958 crore USD in remittances during the first 11 months of the year. Of this, 10 banks accounted for 2,063 crore USD — nearly 70 per cent of the total. Islami Bank collected 553 crore USD, followed by Krishi Bank with 277 crore USD and Agrani Bank with 265 crore USD. Janata Bank accumulated 197 crore USD, BRAC Bank 191 crore USD, Trust Bank 160 crore USD and Sonali Bank 145 crore USD. Rupali, City and Pubali banks brought in 110, 84 and 79 crore USD respectively.

Krishi Bank operates 1,038 branches and five sub-branches across the country — the widest physical network among all Bangladeshi banks. Previously, other banks and mobile financial service (MFS) providers relied on this network for distributing remittances, with Krishi Bank earning only a small service charge. After Ali Hossain Prodhania assumed the role of Managing Director in 2018, the bank began utilising its own network more strategically by signing agreements with international money transfer organisations.

Krishi Bank also partnered with NGOs to increase cash flow in rural branches, allowing these organisations to deposit collected funds into any branch free of charge. During the pandemic, the bank kept all branches open to ensure uninterrupted remittance distribution, significantly boosting trust and popularity among expatriates. To further expand services in the northern region, Rajshahi Krishi Unnayan Bank was appointed as a sub-agent.

During the recent foreign currency shortage, the government entrusted Krishi Bank with opening letters of credit for essential imports, increasing its monthly US dollar obligations to 20–25 crore USD. This has boosted revenue from foreign exchange operations, which reached approximately 700 crore taka last financial year. The target for the current fiscal year has been set at 1,000 crore taka. The bank has also introduced several savings schemes for expatriates, accumulating deposits of around 220 crore taka.

Despite suffering a loss of 6,513 crore taka in 2023–24 due to agricultural loans, the bank is actively trying to offset this deficit through foreign currency earnings.

Krishi Bank receives the largest volume of remittances from Malaysia-based Merchantrade, followed by United States-based Instant Cash and Ria Money, Malaysia’s CBL Money and NBL Money, Western Union, the United Kingdom’s NEC Money, South Africa’s Home Remit and the UK-based EZ Remit.

Mustafizur Rahman, General Manager of the bank’s International and Accounts Division, told the media that its biggest strength is its vast rural branch network. He noted that customers who once relied on secret PIN-based remittance withdrawals can now receive funds directly into their accounts, supported by 24-hour settlement through the central bank. He added that agreements with MFS providers and major exchange houses have made services faster and more convenient.

KhaborwalaAJ