By Aminul Islam

DHAKA, July 12, 2026 (BSS) – State-owned specialized financial institution Karmasangsthan Bank recorded positive growth across major financial and operational indicators during the 2025-26 fiscal year (FY26), reflecting stronger financial performance and improved lending operations.

According to the bank's latest financial and operational report, deposits, loan disbursement, loan recovery, operating profit and financial inclusion - all registered positive growth during the fiscal year.

The report said the bank's paid-up capital increased to Tk 1,584 crore, while provisions against classified loans stood at around Tk 209.36 crore, indicating that the bank maintained full provisioning with no shortfall.

"Karmasangsthan Bank has no provision deficit, which reflects the strength of its financial foundation," Managing Director Arun Kumar Chowdhury told Bangladesh Sangbad Sangstha (BSS).

Unlike commercial banks, Karmasangsthan Bank accepts deposits only from its borrowers as small savings and does not collect deposits from the general public.

Despite this limitation, the bank's total deposits rose to nearly Tk 565.89 crore in FY2025-26.

During the fiscal year, the bank disbursed loans amounting to about Tk 3,155.82 crore, while cumulative loan disbursement reached Tk 21,572.90 crore.

The outstanding loan portfolio increased to Tk 4,683.70 crore. Cumulative recoverable loans exceeded Tk 20,527 crore, with a cumulative recovery rate of 96 percent and a recovery rate of 79 percent against recoverable loans during the period.

The report also showed that the volume of default loans declined compared with the previous fiscal year, bringing the classified loan ratio down to only 4.86 percent, reflecting improved credit management and recovery efforts.

Despite higher operating and administrative expenses, the bank's provisional operating profit increased to Tk 161.07 crore.

The bank's total assets rose to approximately Tk 5,535.85 crore.

To expand customer services, Karmasangsthan Bank continued to widen its nationwide network, which now comprises 290 branches and 33 regional offices.

The report said the bank provided loans to 128,344 borrowers during FY2025-26, raising the cumulative number of borrowers to 1,326,333.

More than 463,321 people directly and indirectly benefited from the bank's activities during the fiscal year, while the cumulative number of beneficiaries reached 4,788,062.

"Karmasangsthan Bank is playing an important role in creating employment opportunities for unemployed youths, promoting entrepreneurship and self-employment, and increasing the flow of finance in the rural economy," Chowdhury said.

He said the bank has been strengthening financial inclusion by extending credit to marginalised people, encouraging savings and supporting the expansion of small businesses, thereby contributing to poverty reduction and inclusive economic growth.

He attributed the bank's overall success to its sustained efforts to expand access to finance and improve service delivery across the country.