Written by The Banking Post
The cumulative disbursement of City Bank’s digital nano loans through the bKash app has surpassed Tk 100 billion (Tk 10,000 crore), highlighting the rapid growth of digital lending and financial inclusion in Bangladesh.
Since its commercial launch in December 2021, the service has disbursed loans to 3.5 million bKash app users through more than 31.9 million (3.19 crore) individual loan accounts, according to a joint statement issued on Monday.
On average, each customer has taken the short-term loan more than nine times, reflecting growing demand and repeat use of the digital credit facility.
The service is now available to more than 12 million eligible bKash customers, many of whom previously had limited or no access to formal banking services or bank credit.
Eligible users can apply for and receive a loan through the bKash app in less than a minute without visiting a bank branch or submitting paperwork.
Nearly 100,000 customers receive the digital nano loan every day. The average loan size is around Tk 3,000, while monthly loan disbursement has reached Tk 9 billion (Tk 900 crore).
The loans are mainly used to meet short-term financial needs, including small business expenses, household costs, medical emergencies and education-related expenditures.
According to the statement, only Tk 530 million (Tk 53 crore)—or 0.5 per cent of the total loans disbursed—has become non-performing or been written off. The remaining 99.5 per cent has been repaid.
Commenting on the milestone, City Bank Managing Director and Chief Executive Officer Mashrur Arefin said the performance of the digital lending portfolio demonstrates the potential of technology-driven credit.
“At a time when rising non-performing loans remain a major concern for Bangladesh’s banking sector, the portfolio quality of small-ticket digital lending has reached an enviable level. This experience offers valuable lessons and inspiration for the entire banking industry.”
