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Star Business Desk
Md Fazlul Kader, managing director of Palli Karma-Sahayak Foundation, and Syed Abdul Momen, additional managing director and head of SME banking at BRAC Bank PLC, pose for a photograph after signing the agreement at the former’s headquarters in Agargaon, Dhaka recently. Photo: BRAC Bank
BRAC Bank PLC has signed a credit guarantee agreement with Palli Karma-Sahayak Foundation (PKSF) under the second phase of the Credit Enhancement Scheme (CES) to finance microentrepreneurs and strengthen inclusive economic growth in Bangladesh.Syed Abdul Momen, additional managing director and head of SME banking at the bank, and Md Fazlul Kader, managing director of PKSF, signed the agreement at the latter’s headquarters in Agargaon, Dhaka, recently, according to a press release.At the event, Abdul Momen said, “Expanding access to finance for underserved entrepreneurs has always been central to BRAC Bank’s purpose.”“Our partnership with PKSF enables us to reach more grassroots businesses through a sustainable risk-sharing model, helping unlock opportunities for enterprise development, job creation, and inclusive economic growth,” he added. Under the agreement, BRAC Bank has secured an annual financing limit of Tk 800 crore for fiscal year (FY) 2026-27.The bank will extend financing to marginal entrepreneurs and microenterprises through PKSF’s partner organisations and microfinance institutions (MFIs), while PKSF will provide credit guarantees and oversee implementation through its established monitoring and supervision framework.The initiative forms part of PKSF’s nationwide programme, under which 12 credit guarantee agreements were signed with 11 commercial banks and one financial institution to facilitate Tk 2,800 crore in guaranteed financing for microenterprises during FY2026-27.BRAC Bank has been one of the strongest performers under the scheme since its launch.Between July 2025 and June 2026, the bank disbursed Tk 705 crore -- approximately 65 percent of its guaranteed portfolio of Tk 1,082 crore -- through 21 partner MFIs, enabling greater access to finance for microentrepreneurs across the country.Tapos Kumar Roy, head of MFI and agriculture finance at the bank, and Md Hasan Khaled, deputy managing director of PKSF, were also present at the signing ceremony.
