'By 2024, 25% of loans will be disbursed to CMSME sector'

National Bank Limited has organised its loan distribution program with the greatest importance allocated for the SME sector. The bank has set a target of providing 25% of total loans disbursed to cottage, micro, small and medium (CMSME) entrepreneurs by 2024.

The bank's Executive Vice President and Divisional Head Md Sahidul Islam recently spoke to The Business Standard about various plans of the bank for its SME portfolio.

What steps have you taken to develop the CMSME sector?

Currently our main focus is to help CMSMEs grow. Our management has a strategic plan to develop CMSMEs as these businesses are the lifeline of the economy. CMSME sector contribution to the GDP is 60% in China, 70% in Japan, 52% in Sri Lanka, 48% in South Korea, 40% in Pakistan, but only 26% in Bangladesh. We are working to increase this number.

At present, 12% of our total loan disbursement portfolio — which is worth Tk5,350 crore — is in the CMSME sector. Our target is to disburse 25% of the total portfolio to this sector.

There are around 75 lakh CMSMEs in Bangladesh. We are serving maybe 10,000 from there. There are still many who can be brought under our service.

We are increasing the loan limit and tailoring our loan offerings to suit the specific needs of our buyers. By understanding their requirements, we ensure that the loans provided are well-suited to their circumstances.

Additionally, we are actively developing new products, including digitising our monitoring and loan approval processes. We are also introducing a relationship manager (RM) system. This approach involves receiving proposals from buyers after a thorough analysis of their needs. Our relationship managers will maintain constant communication with customers, ensuring a personalised and attentive experience throughout their loan journey.

We also prioritise the continuous training of our officers as part of our dedication to fostering the growth of the CMSME sector.

Since November of last year, we have been actively visiting various regions, including North Bengal, where we covered 28 branches. During these visits, we engaged in valuable conversations with our customers, seeking to understand their needs better. Our commitment extends beyond the northern region, as we plan to visit every area.

To facilitate this commitment, we will be organising conferences and management-led training sessions in these regions to ensure our teams are well-equipped and informed.

Does the bank have provisions in place to offer specialised facilities for CMSME customers?

At each branch, there is a dedicated desk for CMSME aspirants. We actively seek feedback from our customers to understand their specific needs and preferences. This feedback helps us identify the type of services required, as well as any potential demand for new products. Additionally, we use this feedback to pinpoint areas where we can enhance our service delivery.

Based on the valuable input received from our customers, we are in the process of formulating new policies that will propel the growth and development of the CMSME sector.

Are there any specific measures being implemented to cater to the needs of micro and small entrepreneurs?

To enhance consumer awareness, we are conducting open meetings at the village level. During these gatherings, we provide valuable information to potential borrowers about the necessary documents and details required to obtain a loan. We also guide them on maintaining proper transaction records, which enables us to assess their business financing needs accurately.

Furthermore, we have specific loan parameters in place to determine the eligible loan amount. Through our field-level meetings, we aim to raise awareness among activists and entrepreneurs across districts and upazilas.

What is being done for women entrepreneurs?

Our focus is on empowering women entrepreneurs, and to that end, every branch of our bank features a dedicated desk exclusively for them. Recently, we held a meeting in collaboration with esteemed organisations like SME Foundation and Chattogram Women Chamber of Commerce and Industry to further support and uplift women entrepreneurs in their endeavours.

Engaging with various chambers, we are actively exploring opportunities for women entrepreneurs to expand their businesses. Our loan offerings will be tailored to meet their specific requirements. As part of our commitment, we have set a target to allocate 25% of our total lending to the CMSME sector by 2024. Among these entrepreneurs, our aim is to ensure that 15% are women entrepreneurs, as the current representation of CMSME women entrepreneurs stands at 8%.