Mercantile Bank, known as ‘Bangler Bank,’ is changing its corporate-oriented policy to target the Small and Medium Enterprises (SMEs) sector in Bangladesh. Over the years, there has been a significant increase in loan disbursement to the CMSME (Cottage, Micro, Small, and Medium Enterprises) sector, contributing to the country’s GDP and job creation. Mercantile Bank aims to allocate 25% of its loan portfolio to the CMSME sector, while also prioritizing agriculture and village-based economies.
To achieve these goals, Mercantile Bank has implemented various initiatives, including separate desks for financing women entrepreneurs, priority investment officers for other sectors, and participation agreements with Bangladesh Bank and SME Foundation to provide low-interest loans. The bank is actively working to reduce dependence on non-governmental organizations (NGOs) for agricultural loans and aims to directly deliver loans to farmers. It also participates in refinance schemes initiated by Bangladesh Bank to support agriculture and ensure loans at a lower interest rate. Additionally, Mercantile Bank has allocated 5% of its loan portfolio to women entrepreneurs and has ongoing programs to nurture new entrepreneurs through startup funding.
Looking ahead, Mercantile Bank aims to continue its success in serving customers and expanding its reach. It has introduced innovative services such as the Islamic Banking Window and the ‘Rainbow’ project, allowing customers to open accounts and pay bills conveniently. By adapting its strategies and focusing on the growth potential of SMEs, agriculture, and village-based economies, Mercantile Bank aims to contribute to the country’s economic development while catering to the diverse needs of its customers.