A significant step towards expanding digital financial inclusion and easing repayment processes for borrowers has been formalised through a new agreement between Dutch-Bangla Bank PLC and Karmasangsthan Bank. The initiative is designed to enable seamless collection of loan instalments and savings deposits through modern banking channels, reducing reliance on traditional cash-based systems.
The agreement was signed on Tuesday at a ceremony held at the Pan Pacific Sonargaon Hotel in Dhaka, bringing together senior officials from both financial institutions. The move is expected to strengthen Bangladesh’s broader agenda of digitising banking services and expanding financial access to rural and semi-urban borrowers.
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Signing ceremony and key representatives
The agreement was formally signed on behalf of Karmasangsthan Bank by General Manager Md Shafiqul Islam Miah, while Dutch-Bangla Bank PLC was represented by Abdullah Al Masud, Head of Branch Operations and Liabilities Division.
The event was attended by senior leadership from both organisations. Representing Karmasangsthan Bank were Chairman of the Board Dr AFM Matiur Rahman and Managing Director Arun Kumar Chowdhury, alongside other high-ranking officials. From Dutch-Bangla Bank PLC, Managing Director and CEO Md Ehsanul Haque Khan and additional executives were present.
Officials described the agreement as a milestone in improving financial service delivery efficiency and reducing operational burdens on borrowers who previously had limited access to convenient payment channels.
Expanded access to repayment channels
Under the new arrangement, borrowers of Karmasangsthan Bank will be able to repay instalments and deposit savings through a significantly expanded digital and physical network operated by Dutch-Bangla Bank PLC.
The agreement links Karmasangsthan Bank’s 289 branches with Dutch-Bangla Bank’s extensive infrastructure, which includes branch offices, sub-branches, agent banking outlets, and mobile financial services.
Service coverage overview
| Service Channel | Coverage |
|---|---|
| Karmasangsthan Bank branches | 289 |
| Loan beneficiaries | Approx. 230,000 |
| Dutch-Bangla Bank branches | 243 |
| Sub-branches | 307 |
| Agent banking outlets | 5,620 |
| Mobile financial service agents (Rocket) | 340,000 |
Through this integrated system, nearly 230,000 borrowers of Karmasangsthan Bank will gain access to a nationwide payment ecosystem. They will be able to deposit instalments or savings contributions via bank branches, sub-branches, agent banking outlets, and the widely used mobile financial service platform “Rocket”.
Strengthening financial inclusion
Bank officials highlighted that the agreement is expected to reduce geographical barriers for borrowers, particularly those living in rural and remote areas where access to formal banking infrastructure is limited. By utilising agent banking and mobile financial services, customers will no longer be required to travel long distances to repay loans or deposit savings.
The initiative also aligns with Bangladesh’s broader push towards a cashless economy, promoting transparency, efficiency, and faster transaction processing within the banking sector.
Outlook
Financial sector stakeholders have welcomed the collaboration as a practical step towards modernising state-linked lending operations. By integrating traditional banking with digital platforms, the partnership is expected to improve repayment discipline, enhance customer convenience, and strengthen overall financial inclusion.
As digital banking continues to expand across Bangladesh, similar partnerships are likely to play a crucial role in bridging the gap between institutional finance and underserved communities.