The finance ministry has sent a letter to the bank recently to only give loans for agricultural purposes and refrain from giving loans for foreign trade.
BKB Managing Director MA Yusuf said the bank has taken initiatives to collect the unpaid loans given for non-agricultural purposes.
According to the Bangladesh Bank, 16 branches of BKB gave Tk 19.26 billion loans for commercial purposes between 2010 and 2013.
All these loans are yet to be repaid.
The central bank also found that BKB gave loans against fake Letters of Credit (LC).
The Krishi Bank has long been in loss due to several reasons, including waiving off interest.
The bank started to give loans for commercial purposes from 2010 to make up for losses.