How NCC Bank became one of Bangladesh’s top sustainable banks

As I reflect on the trajectory of sustainable finance in Bangladesh, I am convinced that its future is not merely a regulatory requirement but a vital pathway for resilient and inclusive economic growth. The transition to a green and sustainable economy is no longer optional—it is a global imperative. For a nation like ours, which is acutely vulnerable to climate change, this transformation holds even greater urgency.

I view sustainable finance as a powerful tool to mitigate environmental risks, enhance social equity, and ensure long-term financial stability. Beyond its immediate environmental benefits, it represents a tremendous opportunity for Bangladesh to attract foreign investment, encourage technological innovation, and open up entirely new market segments. Encouragingly, the strong push from regulatory authorities, particularly the Bangladesh Bank, along with growing public awareness, has already created a solid foundation for this transformation.

Infograph: TBS

I firmly believe that sustainable finance will soon move from being a niche offering to becoming the very core of banking strategies in our country. I see tremendous growth potential in areas such as renewable energy, energy efficiency, eco-friendly industries, and sustainable agriculture. This vision resonates with Bangladesh's broader national goals—be it the "Perspective Plan 2021–2041" or the "8th Five-Year Plan"—both of which emphasize alignment with the Sustainable Development Goals (SDGs). For me, the ultimate goal is clear: to make the banking sector a pivotal driver of a more sustainable and prosperous Bangladesh.

Infograph: TBS

Our performance so far

At NCC Bank, we take pride in being recognised as one of Bangladesh's "Top Sustainable Banks" by the Bangladesh Bank. This recognition did not come by chance; it was earned through consistent and deliberate efforts across all five indicators of sustainability—sustainable finance, core banking sustainability, service coverage, CSR, and green project refinancing.

In 2024, our performance metrics tell the story of that commitment. We disbursed Tk14,930.41 crore under sustainable finance and Tk650.37 crore under green finance, registering an extraordinary growth of 497% and 272% respectively. We have diversified our portfolio across multiple sectors including renewable energy, blue economy, environmentally friendly industries, circular economy, waste management, and eco-friendly brick production. Financing in sustainable agriculture, MSMEs, and socially responsible sectors has also been central to our approach.

One of our priorities has been integrating environmental and social risk management (ESRM) into every credit evaluation process, ensuring that our financing decisions have a responsible and measurable impact. Our participation in Bangladesh Bank's refinance schemes has allowed us to channel low-cost funds to deserving green projects.

We also look beyond finance. Our CSR initiatives have touched thousands of lives, such as providing agricultural inputs to over 14,000 marginal farmers. Under our "NCC Nishorgo: Apnar Sathe, Sabujer Pothe" initiative, we planted 5,300 saplings across 40 schools, reinforcing our commitment to greener communities. At the organisational level, we have adopted eco-conscious practices like sensor-based energy systems, paperless operations, and digital platforms. As a PCAF signatory, we are also measuring financed greenhouse gas emissions, aligning our actions with the UN SDGs. For us, profitability and sustainability are not conflicting goals—they are mutually reinforcing.

Plans for sustainable growth

Looking ahead, our ambitions are both bold and strategic. We are working to expand our sustainable finance portfolio significantly, with a sharper focus on women's banking and SME financing through green-centric products. Our targets are SMART—specific, measurable, achievable, relevant, and time-bound—ensuring that our green finance disbursements deliver real impact.

To institutionalise sustainability, we are integrating Environmental, Social, and Governance (ESG) principles into every layer of our operations. Collaboration is another key driver—we intend to partner with international organisations, NGOs, and technology providers to secure new funds, gain expertise, and expand our capacity. Transparency will be enhanced through Annual Sustainability Reports, while dedicated training programmes for employees will equip them to better handle the complexities of sustainable projects. On top of that, we are scaling up our CSR programmes and accelerating digitisation to improve customer outreach and efficiency.

New products for a green future

Innovation remains central to our efforts. We are actively developing products aligned with Bangladesh Bank's sustainable finance taxonomy. Together with the central bank, we offer refinancing schemes for environment-friendly projects, including the Green Transformation Fund (GTF) and Technology Development Fund (TDF), all at concessional interest rates capped at 5% annually.

Our focus on inclusivity has led us to design tailored financial solutions for women entrepreneurs, who can now access loans of up to BDT 1 crore at just 5% interest under the refinancing scheme. For CMSMEs, we have refinance and pre-finance options at competitive rates, including loans for start-ups at 4% interest. We also facilitate refinancing for small account holders and agro-processing enterprises under schemes with subsidised rates. These products not only fuel sustainable economic activity but also democratise access to finance.

Overcoming hurdles

While the outlook is promising, I must acknowledge the challenges we face. Assessing environmental and social impacts of projects and calculating financed emissions remain technically complex tasks for banks. The green capital market is still in its infancy, limiting the range of financing options for sustainable projects. Moreover, the absence of uniform reporting standards—such as GRI, IFRS, or TCFD—creates difficulties in accessing harmonised data, making it harder to evaluate the true sustainability of loan portfolios.

At NCC Bank, we are tackling these hurdles by enhancing customer awareness, building institutional capacity, and fostering strong partnerships with stakeholders. We are constantly improving our services to ensure that sustainability does not remain just an ambition but becomes a measurable reality.

The role of regulation

Finally, the role of regulatory support cannot be overstated. Bangladesh Bank has shown commendable leadership in issuing progressive policies and guidelines—ranging from ESRM guidelines and green bond frameworks to sustainable finance policies and climate-related disclosure standards. However, I believe more can be done.

Incentives such as tax benefits for top-performing banks, increased limits for green refinancing, and pre-finance schemes for green projects could accelerate the pace of adoption. Mandatory ESG disclosures in business financial statements would give banks the data needed for robust due diligence. Capacity development programmes led by the central bank would also empower banking professionals and businesses alike to integrate sustainability more deeply.

A shared responsibility

Sustainable finance is not the responsibility of banks alone—it is a shared national duty. As we chart our course forward, I am confident that with collaboration, innovation, and strong regulatory support, the banking sector can become a catalyst for sustainable growth. 

Together, we can transform challenges into opportunities and create a greener, fairer, and more prosperous Bangladesh.