NCC Bank signs deals with SME Foundation to expand financing

NCC Bank PLC recently signed two agreements with SME Foundation to expand access to finance for cottage, micro, small, and medium enterprises (CMSMEs) in Bangladesh.

M Shamsul Arefin, managing director of NCC Bank PLC, and Anwar Hossain Chowdhury, managing director of SME Foundation, signed the agreements at a ceremony held in Dhaka recently, according to a press release.

Khandaker Abdul Muktadir, minister for industries, commerce, textiles and jute, attended the programme as the chief guest.

The agreements cover the Credit Wholesaling Programme under the government’s revolving fund and a participation agreement under the Food Value Chain Improvement Project (FVCIP).

Nurun Nahar, deputy governor of Bangladesh Bank, and Nasreen Fatema Awal, president of the Women Entrepreneurs Association of Bangladesh, attended the programme as special guests.

Md Obaidur Rahman, secretary of the Ministry of Industries and chairperson of SME Foundation, presided over the event.

Under the government’s revolving fund, established with a corpus of Tk 300 crore, SME Foundation has been implementing the Credit Wholesaling Programme to accelerate SME sector development and improve access to finance for priority entrepreneur groups. NCC Bank will disburse the allocated funds as loans to eligible CMSME entrepreneurs across the country.

In addition, under the FVCIP -- funded by the Japan International Cooperation Agency (Jica) -- NCC Bank has joined as a participating financial institution (PFI).

The project aims to enhance financial access, strengthen business capacity, and ensure food safety standards in Bangladesh’s agribusiness and food processing sectors.

Under this arrangement, SME Foundation has approved an on-lending credit limit for NCC Bank, which will be used to provide financing to eligible CMSME entrepreneurs in line with the prescribed guidelines.

The agreements are expected to open new avenues of financing for small and medium entrepreneurs, foster job creation, and promote sustainable growth in key economic sectors.

Guests at the programme expressed optimism that such initiatives will enhance financial inclusion and contribute to the country’s overall economic development.