BRAC Bank has signed a Credit Guarantee Agreement with Palli Karma-Sahayak Foundation (PKSF) under the second phase of the Credit Enhancement Scheme (CES), reaffirming its commitment to broadening access to finance for microentrepreneurs and strengthening inclusive economic growth in Bangladesh, a press release said.

Under the agreement, BRAC Bank has secured an annual financing limit of BDT 800 crore for FY2026–27. The Bank will extend financing to marginal entrepreneurs and microenterprises through PKSF’s partner organisations and microfinance institutions (MFIs), while PKSF will provide credit guarantees and oversee implementation through its established monitoring and supervision framework.

The initiative forms part of PKSF’s nationwide programme under which 12 Credit Guarantee Agreements were signed with 11 commercial banks and one financial institution to facilitate BDT 2,800 crore in guaranteed financing for microenterprises during FY2026–27.

Syed Abdul Momen, Additional Managing Director and Head of SME Banking; Tapos Kumar Roy, Head of MFI & Agriculture Finance, BRAC Bank, and Md. Fazlul Kader, Managing Director, and Md. Hasan Khaled, Deputy Managing Director, PKSF, were present at the agreement signing ceremony held at PKSF’s headquarters in Dhaka on July 20, 2026. 

BRAC Bank has been one of the strongest performers under the scheme since its launch. Between July 2025 and June 2026, the Bank disbursed BDT 705 crore - approximately 65% of its guaranteed portfolio of BDT 1,082 crore - through 21 partner MFIs, enabling greater access to finance for microentrepreneurs across the country.

Syed Abdul Momen, Additional Managing Director and Head of SME Banking at BRAC Bank, said, “Expanding access to finance for underserved entrepreneurs has always been central to BRAC Bank’s purpose. Our partnership with PKSF enables us to reach more grassroots businesses through a sustainable risk-sharing model, helping unlock opportunities for enterprise development, job creation, and inclusive economic growth.”

As Bangladesh’s leading SME-focused bank, BRAC Bank continues to strengthen partnerships that promote financial inclusion, empower underserved entrepreneurs, and support the country’s sustainable economic development through responsible and inclusive financing.