Trust Bank Joins Bangladesh Bank Tk 3,000cr Export Diversification Scheme

🤝 Trust Bank PLC has signed an agreement with Bangladesh Bank to participate in the central bank's Tk 3,000 crore export diversification refinance scheme, joining a growing roster of commercial lenders channelling concessional credit to non-RMG export sectors. The partnership, formalised at the BB headquarters in Motijheel, Dhaka, is aimed at reducing Bangladesh's heavy dependence on the readymade garment (RMG) sector and accelerating the country's transition toward a more diversified export basket.

📊 AKM Nurunnabi, director of the Sustainable Finance Department of Bangladesh Bank, and Ahsan Zaman Chowdhury, managing director and CEO of Trust Bank PLC, signed the agreement at the BB headquarters in Motijheel, Dhaka recently, according to a press release issued by the bank. Among others, Abu Alam, additional director of the central bank; Sazib Kumar Das, joint director of the Sustainable Finance Department; and ABM Mizanur Rahman, senior executive vice-president and head of the CRM division at Trust Bank PLC, were also present at the signing ceremony.

💰 What The Tk 3,000 Crore Scheme Does

The Tk 3,000 crore export diversification refinance scheme was launched by Bangladesh Bank to channel low-cost credit to exporters in non-traditional sectors, particularly light engineering, agro-processing, leather goods, pharmaceuticals, jute and jute goods, ICT and software services, and plastic products. By providing refinance to commercial banks at concessional rates, the central bank enables participating lenders to on-lend to exporters at sub-market rates, easing the working capital constraints that have historically held back non-RMG exporters.

The scheme forms a core pillar of Bangladesh's broader export diversification strategy, which has gained urgency ahead of LDC graduation in November 2026. Once Bangladesh loses access to duty-free, quota-free (DFQF) access in key markets — and concessional multilateral financing windows narrow — the country's export competitiveness will depend on the strength of diversified sectors rather than RMG alone. The Tk 3,000 crore facility is designed to give non-RMG exporters the financial runway needed to scale operations, invest in technology and meet international quality standards.

• 💸 Total scheme size: Tk 3,000 crore (refinance window)
• 🏛 Administered by: Bangladesh Bank's Sustainable Finance Department
• 👕 Targeted at: Non-RMG export sectors
• 🌏 Strategic goal: Reduce dependence on RMG (which accounts for ~84% of exports)
• 📅 LDC graduation deadline: November 2026

📜 Trust Bank's Strategic Positioning

Trust Bank PLC, a private commercial bank with strong institutional backing from the Army Welfare Trust, has been expanding its footprint in trade finance and sustainable lending. The partnership with Bangladesh Bank gives the lender access to low-cost refinance that can be deployed to build a non-RMG export portfolio — a strategic positioning move as competition in trade finance intensifies among mid-sized private banks.

For Ahsan Zaman Chowdhury, who took the helm at Trust Bank PLC amid a sector-wide restructuring, the agreement signals a strategic pivot toward sustainable finance. The bank's head of CRM division, ABM Mizanur Rahman, is expected to lead the credit underwriting process for the new scheme, with the Sustainable Finance Department at Bangladesh Bank providing regulatory oversight on fund deployment and end-use monitoring.

🌾 Why Export Diversification Matters Now

Bangladesh's export economy remains dominated by RMG, which accounts for over 84% of merchandise exports. While the sector has driven the country's emergence as a global manufacturing hub, the concentration risk has long been a concern for policymakers, multilateral lenders and trade economists. A single-sector export profile leaves the country exposed to demand shocks, tariff actions and competitive pressures in the apparel value chain.

The urgency of diversification has grown sharper in 2026. The United States' 10% reciprocal tariff on Bangladeshi apparel exports — implemented in July 2025 — has compressed RMG margins, while Vietnam and Cambodia have been aggressively capturing market share in man-made fibre (MMF) garments that Bangladesh has been slow to develop. Meanwhile, India's renewed push to capture low-end apparel manufacturing adds another competitive pressure point.

Against this backdrop, the Tk 3,000 crore export diversification refinance scheme represents a tangible financial instrument to channel capital into the next generation of Bangladeshi export champions. Light engineering firms producing automotive components, agro-processors targeting Middle East and European markets, leather goods manufacturers serving premium brands, and software exporters expanding into US and EU client bases all stand to benefit from the scheme's concessional credit window.

🏛 Bangladesh Bank's Broader Sustainable Finance Push

The agreement with Trust Bank forms part of a broader Bangladesh Bank push to scale sustainable finance across the banking system. The Sustainable Finance Department, headed by AKM Nurunnabi, has been expanding refinance windows covering green banking, agricultural credit, CMSME financing, women entrepreneurship, and export diversification — each with dedicated funding lines and reporting frameworks.

For participating banks like Trust Bank, the appeal of the scheme extends beyond the low-cost refinance. Banks that meet Sustainable Finance Department targets on green lending, agricultural credit and export diversification qualify for regulatory incentives, including priority in Bangladesh Bank's auction windows and reputational benefits that translate into stronger ESG ratings — increasingly important for accessing dollar-denominated correspondent banking lines and international capital market issuances.

🌏 What Comes Next

The signing of the agreement is the formal start of Trust Bank's participation in the scheme. Implementation will now depend on the bank's ability to identify creditworthy non-RMG exporters, structure financing instruments tailored to their working capital cycles, and ensure end-use compliance in line with Bangladesh Bank's monitoring framework. The central bank's additional director Abu Alam and joint director Sazib Kumar Das are expected to oversee the scheme's deployment and quarterly reporting.

For Bangladesh's export diversification agenda, every new participating bank matters. With Tk 3,000 crore to deploy across multiple non-RMG sectors, the scheme's impact will depend on how effectively banks like Trust Bank can identify scalable exporters and move capital quickly enough to make a difference before LDC graduation narrows Bangladesh's trade preferences. The coming quarters will reveal whether the scheme can meaningfully shift the dial on non-RMG export growth, or whether structural bottlenecks — including gas shortages, infrastructure constraints and regulatory unpredictability — will continue to cap the country's diversification potential despite the availability of concessional finance.