IBBPLC has made significant strides in the Cottage, Micro, Small and medium enterprise (CMSME) sector, achieving notable milestones in alignment with central bank guidelines.

The bank has excelled in creating successful entrepreneurs, empowering women, generating employment, diversifying the rural economy, and alleviating poverty. IBBPLC consistently meets targets set by the central bank and aims to establish an equity-based economy, resulting in diverse disbursements in CMSME.

In 1995, IBBPLC launched the Rural Development Scheme (RDS) to eradicate poverty and economic disparity among marginalised communities, with a focus on CMSME. The extent of IBBPLC’s achievements in this sector is evident from the expansive RDS network, which includes 41,492 centres across 32,638 villages in 64 districts.

Approximately nine lakh individuals have directly benefited from RDS investments, with 92% of beneficiaries being women. This collateral-free investment with easy conditions supports entrepreneurs in sectors like fisheries, agricultural machinery, irrigation, livestock rearing, poultry, horticulture, rural transport, self-employment, and income-generating activities for rural unemployed youth and the rural poor. Additionally, the scheme facilitates investment in rural housing and focuses on providing educational services, safe water, sanitation, and medical facilities to underprivileged rural communities.

Beyond RDS, IBBPLC has achieved exceptional results in core banking for CMSME. In 2009, the bank formed the “Small and Medium Enterprise Division” to boost CMSME investments. The Bank’s Retail Investment Wing-I, comprising SME Investment Divisions I, II, and III, focuses on diversifying the CMSME portfolio by size, sector, economic purpose, and geographical location. This approach has bolstered CMSME investments, with IBBPLC holding an 11% market share in the banking industry and 43.173% among Islamic banks.

During the COVID-19 pandemic, IBBPLC made outstanding achievements in disbursing stimulus investments for the CMSME sector. The bank achieved 86.70% of its target by disbursing Tk1,734 crore to 5,236 clients. 

In 2022, Tk1,903 crore was disbursed to 6,169 clients. IBBPLC set a target of Tk2,850 crore for a pre-finance scheme in the CMSME sector, with 2,708 clients already benefiting from the refinance scheme.

Recognising CMSME as the “thrust sector” for poverty alleviation, employment generation, sustainable industrialisation, and overall development of living standards, IBBPLC has declared a CMSME Cluster Investment Policy. The bank aims to allocate 25% of its total investment portfolio to CMSME within five years, with a minimum of 35% in the trading sector, 40% in the manufacturing sector, and 25% in the service sector. Additionally, at least 15% of CMSME investments will be allocated to women entrepreneurs. In 2023, CMSME’s investment share was 22.18% of the total portfolio.

Digital progress has also been significant. IBBPLC is updating its database and developing a robust Management Information System for CMSME. A new solution to check investment outstanding balances in real-time will be introduced, and SME clients will be able to pay investment liabilities using the secure CellFin app.