SBAC Bank Backs Central Startup Initiative

SBAC Bank PLC has transferred more than 2.58 crore taka to the national startup investment scheme initiated by Bangladesh Bank, marking another step towards strengthening financial support for innovative and technology-driven enterprises in the country.

The cheque handover ceremony took place on Tuesday at the SME and Special Programmes Department of the central bank. Mr. Md. Rabiul Islam, Additional Managing Director of SBAC Bank PLC, formally presented the cheque to Mr. Nawshad Mostafa, Director of the department overseeing small and medium enterprise development and special financial programmes.

The funds will be utilised by Bangladesh Startup Investment Company PLC, a specialised institution established by Bangladesh Bank to promote equity investment in startups. The company was formed with the objective of bridging the financing gap faced by emerging enterprises, particularly those developing technology-based products and services.

Senior representatives from both institutions attended the ceremony. Mr. Mohammad Abdul Mannan, Executive Vice President and Head of Credit at SBAC Bank PLC, was present alongside other officials from the bank and the central bank.

The central bank’s startup investment initiative was introduced to encourage innovation and support the development of a vibrant entrepreneurial ecosystem. Startups often encounter significant obstacles in securing conventional bank loans because they typically lack collateral or a proven financial history. As a result, equity-based financing has been identified as a more suitable mechanism for supporting early-stage ventures.

Through Bangladesh Startup Investment Company PLC, the central bank seeks to mobilise funds from commercial banks and other financial institutions and channel them into promising startups. This model allows investors to take an equity stake in new ventures rather than extending traditional credit, thereby sharing both the risks and potential rewards of innovative business activities.

Experts in the financial sector believe that the participation of banks is essential to the success of the programme. By contributing to the startup investment fund, banks such as SBAC Bank PLC are helping to create opportunities for young entrepreneurs, particularly those working in fields such as financial technology, digital services, and innovative manufacturing.

The initiative also aligns with broader national goals of accelerating digital transformation, enhancing productivity and generating employment for the country’s growing workforce.

Details of the cheque handover are outlined below:

Officials present at the event expressed optimism that continued collaboration between the banking sector and the central bank would expand funding opportunities for innovative startups and contribute to sustainable economic growth.