Karmasaangsthan Bank has unveiled a five-year master plan to create employment opportunities for 900,000 unemployed youths through expanded financing, entrepreneurship support, and targeted poverty alleviation programmes. In an interview, Managing Director Arun Kumar Chowdhury said the bank aims to bring between 125,000 and 150,000 unemployed youths under its employment initiatives in the 2026–27 fiscal year. Bangladesh Bank has already approved a Tk 1,000 crore project to support the scheme.
First-Year Focus
As part of the first-year plan, the bank will provide low-interest loans to 50,000 new unemployed people under easy terms to help them establish small businesses. Since its inception, the bank has financed around 1.35 million entrepreneurs with loans carrying interest rates ranging from 4 percent to 9.75 percent.
Pilot Projects and Collateral-Free Loans
The Financial Institutions Division under the Ministry of Finance has also launched a pilot project for ultra-poor, disadvantaged, climate-vulnerable and marginalised people, to be implemented by Karmasangsthan Bank. Under the initiative, collateral-free loans of Tk 30,000 to Tk 100,000 will be offered to small traders, including fruit and vegetable vendors, tea stall owners and handicraft producers. Initially, Tk 50 crore will be disbursed among 8,000 beneficiaries in 20 upazilas of Sherpur, Barguna and Kurigram districts. The loans will carry a 6 percent interest rate, with 3 percent allocated to a seed fund and the remaining 3 percent covering administrative costs.
Training and Database Development
The bank is also implementing pilot programmes in Badarganj of Rangpur and Gauripur of Mymensingh to develop databases of trained unemployed youths. Chowdhury said the two upazilas could become free of trained unemployed individuals within the next two to three years.
Long-Term Vision and Challenges
Declaring 2026 as the 'Year of Transparent Banking and Sustainable Employment', the bank plans to expand training on product design, production and marketing, introduce green financing and Shariah-based lending, and strengthen mentoring and monitoring to ensure the long-term success of businesses established by borrowers. Highlighting operational challenges, the managing director said the bank is facing a severe manpower shortage. Against an approved workforce of 3,200 employees, only about 1,800 positions are currently filled, leaving many branches with just three or four staff members to manage loan disbursement, supervision and recovery.
Call for Tax-Exempt Status
Chowdhury said Karmasangsthan Bank's rural lending plays a vital role in reducing poverty and inflation. He urged the government to grant the bank tax-exempt status similar to Grameen Bank, arguing that such a move would enable it to offer lower-cost financing and create more sustainable employment opportunities for young people across the country.
