Sources in the RAKUB said the loan-recovery process lagged behind the targets, resulting in gradual increase in the amount of its outstanding credits.

"The loss for the bank has increased day by day since its establishment in 1987 following party influence, mismanagement and mal-administration over the years," said one source.

Though its lending programme was taken up for socio-economic development of the farmers of the country's underdeveloped northwestern zone, many marginal farmers could not be given loan facilities, the sources said.

The bank introduced 'Miracle' programme in 1999 and 'PARL' programme in 2003 for aggressive drives on loan recovery and providing improved lending services for the farmers in the agrarian belt. But these porgrammes could not be made successful owing to unskilled management.

The current amount of non-classified loans is Tk 1,770 crore, which is 75 percent of the total loans advanced by the RAKUB.

Outstanding loans of Tk 625 crore was realised in the current fiscal year against the target of 800 crore.

Although the rate of loan realisation is 78 percent, the rate of recovery of the classified credits or defaulted loans is only 20 percent.

Some RAKUB officials said if the employees, so far working at head office and zonal offices "under the influence of political parties", could be transferred as per rules, the operations of the bank would be streamlined.

They made a plea for investigation of various alleged irregularities, including illegal loan waiver and the sanctioning of big loans.

Realisation of the outstanding loans could be increased if appointments and transfers were given as per rules, they said.