PKSF signs credit guarantee agreements with five banks
Under the agreements, the banks will be able to extend a total of Tk1,000 crore in guaranteed loans to PKSF’s partner organisations
Palli Karma-Sahayak Foundation (PKSF) has signed five separate credit guarantee agreements with Jamuna Bank, Commercial Bank of Ceylon, Trust Bank, Mercantile Bank and NCC Bank under its Credit Enhancement Scheme (CES).
Under the agreements, the banks will be able to extend a total of Tk1,000 crore in guaranteed loans to PKSF's partner organisations, according to a press release.
The signing ceremony took place today (26 January) at PKSF Bhaban-1 in Agargaon, Dhaka.
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PKSF Managing Director Md Fazlul Kader signed the agreements on behalf of the foundation. The agreements were signed on behalf of the banks by Ahsan Zaman Chowdhury, managing director and CEO of Trust Bank PLC; Haily Algewatte, deputy CEO and chief operating officer of Commercial Bank of Ceylon PLC; Mohammad Jahangir Alam, deputy managing director of Jamuna Bank PLC; Md Habibur Rahman, deputy managing director of NCC Bank PLC; and Md Zakir Hossain, deputy managing director of Mercantile Bank PLC.
PKSF Deputy Managing Directors Md Mashiar Rahman, Fazle Rabbi Sadeque Ahmed and Md Hasan Khaled were also present at the event.
Speaking on the occasion, Md Fazlul Kader said PKSF is working to transform low-income people into entrepreneurs and that the Credit Enhancement Scheme has been introduced to formally engage commercial banks in this process.
Under the scheme, PKSF's partner organisations will receive loans from banks and disburse them to eligible clients at the field level, while PKSF will provide guarantees to mitigate credit risk at the bank level, he added.
PKSF is implementing the CES with financial and technical support from the Asian Development Bank (ADB) to promote inclusive economic growth through the expansion and productivity enhancement of the microenterprise sector.
Through the scheme, PKSF shares lending risks by providing guarantees to banks and financial institutions that extend loans to its partner organisations.
Earlier, on 24 May 2025, PKSF launched the country's first Credit Enhancement Scheme and on the same day signed credit guarantee agreements worth Tk3,150 crore with BRAC Bank, City Bank, Prime Bank, Mutual Trust Bank, Southeast Bank and The UAE-Bangladesh Investment Company Limited (UBICO).
