Agrani Bank Limited has been starting SME financing since inception. In this connection Agrani Bank Limited established SME & Micro Credit Division merged with Micro-Enterprise Department unit (MEDU) & Small Enterprise Development project (SEDP) as per instruction circular No-CMCD/27 dated-17/03/2004. In this year Bangladesh Bank issued BRPD Circular No.07 dated 03/11/2004 with a manual of `Prudential Regulations for Small Enterprises Financing' and instructed all the commercial banks to initiate SME Financing according to the Prudential Regulations. The Focus Group Team formed by Bangladesh Bank formulated this Prudential Regulations manual through details discussion. Agrani Bank Limited formulated a set of 'Prudential Regulation Guidelines for Small Enterprise Financing' on the basis of Bangladesh Banks Prudential Regulations manual and submitted to board of directors' for approval. The board of directors approved this Prudential Regulations manual vide board memo no. BD/BMA/847 dated 25/06/2005.After getting board of directors' approval on dated 25/06/2005 Agrani Bank Limited distributed the 'Prudential Regulation Guidelines for Small Enterprise Financing' along with Instruction Circular No-SME/78 dated 27/06/2005 for all concerns to start SME financing in a small scale. After that Bangladesh Bank changed the previous definition of SME as per SMESPD circular No-08 dated 26/05/2008. Accordingly, Agrani Bank Limited changed the previous definition of SME as per instruction circular No-SME/47 dated 18/06/2008.
Later on Bangladesh Bank issued letter No.-SMESPD/Road-show/99/2010-1151 dated 30/03/2010 with a book of Small and Medium Enterprise (SME) Credit Policies & Programmes for this purpose Agrani Bank Ltd. issued circular No.-SME/20 dated 19/09/2010 and sending the book for all concerns along with that circular. Agrani Bank Limited established SME Credit Division by changing the name of SME & Micro Credit Division as per instruction circular No-PD/56 dated 19/05/2011 and various initiatives of formal SME financing have been taken under this division.
But the definition of SME was very complex and difficult to define an enterprise complying with both the criteria of fixed assets (Excluding land building) as well as manpower employed. In this regard Bangladesh Bank modified the definition of SME as per industrial policy-2010 and instructed all commercial Banks & financial institutions by send SMESPD circular No-01 dated 19/06/2011. That is why Agrani Bank Limited modified the previous definition of SME as per instruction circular No-SME/75 dated 11/07/2011. Bangladesh Bank includes cottage & micro Industry/Enterprise in SMEs on this circular. In the year 2016 Bangladesh Bank instructed a new and amending additionally the previous circulated instructions related to definition of Cottage, Micro, Small and Medium Industry/Enterprises, SME financing, Women enterprise and various refinance schemes has been introduced by SME and Special programs Department of Bangladesh Bank. To be a sustainable condition we have to make more organized, entrepreneur friendly, modern and massive participatory SME financing for the situation demand SMESPD circular No.2 dated 05/09/2019 (Master Circular on SME Financing) has been circulated including new instructions. To comply with Bangladesh Bank's instruction Agrani Bank Limited issued Instruction circular No.-SMECD/90 dated 10/10/2019.