Pubali Bank sets Tk10,000cr target in green finance, emphasises SME sector
Recognised among Bangladesh’s top 10 banks in sustainability ratings, Pubali Bank is proving that strong balance sheets and strong commitments to the environment can go hand in hand
At Pubali Bank, we take immense pride in being recognised as one of the top 10 banks in Bangladesh's 2024 Sustainability Ratings.
For me, this recognition is not just an award, it is proof that we are on the right path in building a bank that is financially strong, environmentally responsible, and socially inclusive.
Why sustainability ratings matter
Sustainability ratings are very important in the banking sector, and Bangladesh Bank plays a key role in setting the benchmarks. These ratings are based on three broad criteria.
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The first is financial strength, measured by indicators like balance sheet health, profitability, capital adequacy, classified loans, and provisioning. A bank must be financially resilient if it wants to contribute meaningfully to the economy.
The second is green investment, how much a bank is financing projects that are sustainable, energy-efficient, and environmentally friendly.
The third is operational sustainability whether the bank itself is operating in an eco-friendly way. At Pubali Bank, we look carefully at our branches, ATMs, and head office to ensure energy efficiency, proper greenery, and sustainable management practices.
These three pillars define our sustainability rating. The value of this is clear: a bank that is strong, performs well over the long term, and invests responsibly will always earn greater trust from customers. At the same time, we fulfil our duty of building a better and more liveable Bangladesh for future generations.
Access to global green finance
One of our biggest priorities has been to bring in low-cost funds from international sources so that Bangladeshi entrepreneurs can benefit.
For example, when we channel money from Bangladesh Bank's Green Transformation Fund (GTF), our customers can access loans at just 5% interest. We were also the first in Bangladesh to issue a green bond, with support from British International Investment (BII) and the former CDC (Commonwealth Development Corporation). The cost for us was around 6–7%, which allowed us to make funds affordable for our clients.
Currently, we have a $100 million mandate to finance renewable energy, windmills, biogas plants, energy-saving technologies, green buildings, and green factories. For customers, the effective cost will be around 7%. We have already secured this mandate, and with contract signing underway, I expect operations to begin by October or November this year.
Supporting SMEs and entrepreneurs
While large industries benefit from green financing, I strongly believe that small and medium enterprises (SMEs) also deserve equal support. At Pubali Bank, we act as an intermediary, securing funds from international institutions such as ADB, JICA, and the European Union.
Later this year, we will attend the SIBOS Conference in Germany, where leading banks and financial institutions from across the globe gather. There, we hope to secure more low-cost funds that we can pass on to Bangladeshi entrepreneurs.
The benefit is twofold. Entrepreneurs get easier access to finance at affordable rates, while their international buyers especially in Europe and the US gain confidence knowing that Bangladesh-made products are environmentally responsible. This opens up new opportunities for the country's exports.
Investing directly in the environment
Sustainable banking goes beyond financing projects; it is also about direct action. That is why we have a dedicated sustainable finance budget for environmental initiatives.
Last year alone, we planted more than 40,000 trees nationwide, including over 3,500 on Dhaka University's campus. We also contributed to greening the new prison facilities and installed deep tube wells in areas with limited access to clean water.
Our vision is that in the next 5–6 years, these trees will absorb carbon and release oxygen, helping us move beyond "net zero." In fact, I want Pubali Bank to be known not only for reducing emissions but also for contributing surplus oxygen to the environment.
Our approach to green financing
Every project we finance undergoes a rigorous Environmental Risk Rating. If a project fails to meet satisfactory standards, we simply do not proceed.
Many of our clients are global leaders in sustainability, including AP, Metropolitan, Green Text, and Envoy Group—all of whom operate LEED Platinum-certified facilities. Their example proves that Bangladeshi companies can compete with the very best worldwide by adopting greener technologies.
I want to see more entrepreneurs take this path. By replacing outdated machinery with modern, energy-efficient technology, they can lower costs and ensure more sustainable production. This is where we, as a bank, can play a catalytic role.
Our targets for the future
Today, our green finance portfolio stands at around Tk 6,500 crore. But we have set an ambitious target: by 2027, we aim to raise this figure to Tk 10,000 crore.
This growth will not just come from renewable energy projects. We are also financing sustainable initiatives in the food industry, garments, housing, healthcare, and education sectors. We want to ensure that every industry in Bangladesh has the opportunity to move towards a greener, more responsible future.
Gender balance and inclusion
Sustainability is not just about the environment; it is also about inclusivity. At Pubali Bank, we have a clear gender policy built on five components: providing a supportive work environment for women, ensuring their participation in decision-making, maintaining equality, extending policy-level support, and enabling long-term career development.
Women are now part of all major decision-making committees at our bank, including the Management Committee, Risk Committee, and Task Forces. Their perspectives are crucial for driving meaningful, inclusive change.
Looking ahead
Our ultimate vision is clear. By expanding green finance and ensuring inclusivity, we are helping shape a sustainable, resilient, and competitive Bangladesh. The more we invest in environmentally friendly projects today, the more future generations will benefit from a greener, healthier nation.
At Pubali Bank, we see green finance not just as an obligation but as an opportunity to build trust, to drive innovation, and to leave behind a legacy of sustainability that future generations will thank us for.
