PKSF signs Tk1,000cr credit guarantee deals with five banks

Palli Karma-Sahayak Foundation (PKSF) on Monday signed Credit Guarantee Agreements with five commercial banks under its Credit Enhancement Scheme (CES), paving the way for Tk1,000 crore in guaranteed lending to its partner organisations.

The agreements were inked with Jamuna Bank PLC, Commercial Bank of Ceylon PLC, Trust Bank PLC, Mercantile Bank PLC and NCC Bank PLC at PKSF Bhaban-1 in Agargaon, according to a press release.

PKSF Managing Director Md Fazlul Kader signed on behalf of the foundation, while senior executives from the respective banks represented their institutions.

PKSF Deputy Managing Directors Md Mashiar Rahman, Dr Fazle Rabbi Sadeque Ahmed and Md Hasan Khaled were also present.

Fazlul Kader said the initiative aims to bring commercial banks more closely into financing microenterprises, allowing PKSF’s partner organisations to channel loans to grassroots clients while PKSF absorbs part of the credit risk through guarantees.

The CES, supported by the Asian Development Bank, seeks to promote inclusive growth by expanding and improving productivity in the microenterprise sector.

PKSF launched the country’s first Credit Enhancement Scheme in May 2025 and previously signed Tk3,150 crore worth of guarantee agreements with six banks, including BRAC Bank and City Bank.