Prime Bank’s vision for the future with sustainability at its core
With a strong focus on ESG principles, Prime Bank is expanding its green and sustainable financing portfolio, supporting projects that are financially sound and environmentally responsible
When I look at the future of sustainable financing in Bangladesh's banking sector, I see immense potential.
It is not just a passing trend—it is the direction the global financial system is moving in, and Bangladesh is very much a part of that journey. With progressive policy frameworks, increasing awareness, and stronger institutional commitment, we are entering an era where sustainability is no longer optional, but essential.
Globally, Environmental, Social, and Governance (ESG) criteria are becoming central to credit and investment decisions. Investors and regulators alike are demanding greater transparency and accountability. Naturally, this is shaping how banks like ours operate. We are moving toward greener practices: embracing energy-efficient technologies, transitioning to paperless operations, and deploying smart infrastructure such as cash recycler machines and digital banking platforms.
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The next phase will go even deeper, where banks will track the carbon footprint of their clients and funded projects. This will not only align with global climate objectives but also strengthen risk management practices.
But achieving this vision requires more than individual effort. Strategic collaboration among banks, government bodies, and private enterprises will be vital. Together, we can expand sustainable financing in sectors that matter most—agriculture, renewable energy, and infrastructure.
Prime Bank's journey so far
At Prime Bank, we have positioned ourselves as a frontrunner in sustainable finance in Bangladesh. Over the years, we have channelled significant resources into environmentally responsible and socially impactful projects.
In 2024, our green financing portfolio reached BDT 12,267.94 million. This accounted for 34.11% of our total term loan disbursements—a sharp rise from 19.95% in the previous year. This growth is more than just numbers; it reflects a shift in mindset and commitment. Our sustainable financing also saw remarkable expansion, amounting to BDT 280,416.38 million and representing 80.48% of our total loan disbursements, compared to 37.64% in 2023.
These achievements are not in isolation. Our participation in Bangladesh Bank's refinancing schemes has enabled us to broaden our reach and impact. Beyond the financial aspects, we also take pride in supporting community development—whether through financing small businesses, promoting financial literacy, or helping underserved populations.
Digitalisation plays a key role in this journey. By encouraging customers to access our digital platforms, we reduce our environmental footprint while offering more convenient services. It is a win-win, both for the bank and for the planet.
Our plans for the future
Looking ahead, our vision is clear: to deepen our impact on sustainability and continue leading by example. We are committed to expanding our green financing initiatives, especially in areas that can accelerate Bangladesh's transition to a low-carbon economy.
Our focus will be on sustainable agriculture, SME financing, and supporting women entrepreneurs. These are not only vital for economic growth but also for creating an inclusive and environmentally conscious society.
Partnerships will play a big role. We are actively seeking collaborations with global institutions to gain access to expertise and resources that can amplify our efforts. At the same time, we are embedding advanced ESG analytics into our decision-making processes. This will ensure that every investment we make is not just financially viable, but also socially and environmentally beneficial.
Innovative products for a sustainable future
Banks must innovate if they want to drive meaningful change. At Prime Bank, we see digitalisation and sustainability as two sides of the same coin.
Our digital transformation covers the entire spectrum of banking services—from seamless account opening to fully digital processing of Letters of Credit (LCs). By leveraging technology, we can serve customers more efficiently while cutting down on paperwork and resource use. Expanding our network through sub-branches and agent banking has also helped us reach communities that were once financially excluded.
Through these innovations, we are not just improving customer experience; we are promoting financial inclusion and bringing sustainability into the mainstream of banking.
The challenges we face
Of course, the path to sustainable financing is not without challenges. One of the biggest hurdles is limited awareness. Many potential borrowers still do not fully understand green financing opportunities, and this lack of knowledge prevents them from accessing the support available.
Then there is the challenge of culture. Traditional banking practices are deeply entrenched, and moving toward sustainable models requires not just new processes but a complete cultural shift. Regulatory frameworks are evolving, but enforcement and monitoring still have a long way to go. Without stronger mechanisms, compliance risks becoming symbolic rather than impactful.
Another barrier is the financial burden of adopting sustainable infrastructure. Whether it is solar-powered branches or energy-efficient systems, the upfront costs can be significant. For smaller institutions, this makes adoption much harder.
To unlock the full potential of sustainable finance, we need stronger support from regulators and the government. Strategic incentives such as tax breaks and subsidies for green projects could encourage faster adoption. Uniform regulations on sustainability reporting and carbon emissions would also foster accountability and create a level playing field.
I believe that by building purpose-driven partnerships—between banks, businesses, regulators, and international stakeholders—we can reshape industries and make sustainability a core part of our economy. Together, we can turn ambition into action and create a resilient, inclusive, and sustainable future for generations to come.
