Karmasangsthan Bank lit. ’Employment Bank’ is a specialized government-owned bank in Bangladesh. The bank was founded to finance the unemployed to set up small enterprises.
Karmasangsthan-Bank is a state-owned non-scheduled bank in Bangladesh. The bank was set up with the aim of encouraging the unemployed to set up small-scale industries with financial assistance. The bank was established in 1997 to provide credit assistance to the country’s growing unemployed youth and young women through self-employment to alleviate poverty.
History of Karmasangsthan Bank
The bank was founded in 1998 by the Awami League government, with an approved capital of 3 billion taka. The Karmasangsthan Bank was established as per Karmasangsthan Bank Act No.7 of 1998. The bank was founded to increase income of people in rural areas of Bangladesh. According to Sahara Khatun the bank was neglected after the Bangladesh Nationalist Party came to power.
Dewan Mujibur Rahman was appointed managing director of Karmasangsthan Bank in September 2004.
In August 2007, Karmasangsthan Bank donated 416 thousand taka to the Chief Adviser’s Relief and Welfare Fund.
The highest interest rate charged by the bank in 2010 was 10 per cent.
Maniruzzaman Khandker, tax advisor to Prime Minister Sheikh Hasina and director of Midland Bank Limited, was the managing director of the bank in 2012.
In January 2014, Bangladesh Bank ordered Karmasangsthan Bank to not open new branches and set a series of conditions the bank must meet.
Kaniz Fatema was appointed chairman of the bank in April. Kazi Sanaul Hoq was appointed managing director of Karmasangsthan Bank in August 2019. It provides funding to workers training institutes.
Md Tajul Islam was appointed managing director of Karmasangsthan Bank in January 2020. The government of Bangladesh announced a loan of 20 billion taka to be distributed to Karmasangsthan Bank, Palli Sanchay Bank, Palli Karma Sahayak Foundation, and Probashi Kallyan Bank.
Prime Minister Sheikh Hasina said the bank was providing interest free loans to unemployed youth to start businesses in May 2021.[18] It received part of a 15 billion taka grant from the government of Bangladesh.
Shirin Akhtar was appointed managing director of the bank in January 2022.[20] Md Nurul Amin was appointed chairman of Karmasangsthan Bank in May 2022.
The management method of Karmasangsthan-Bank
The current Chairman of the Board of Directors of the Bank is former Secretary Kaniz Fatema, NDC, and Managing Director Mr. Shirin Akhtar. Other members of the Board of Directors are (ex officio) the Director-General of the Bureau of NGO Affairs, the Director-General of the Department of Youth Development, the Joint Secretary of the Financial Institutions Department, the Executive Director of Bangladesh Bank, and the Board Secretary of the Bank.