Prime Minister Sheikh Hasina formally inaugurated the bank at a ceremony at Fazlur Rahman Khondoker Auditorium at BGB Headquarters in the capital.
The Prime Minister also became the first client of the bank by opening an account.
Shimanto Bank Managing Director and CEO Mokhlesur Rahman made an audio-visual presentation on the bank on the occasion.
With the launching of this public sector bank, a brainchild of Prime Minister Sheikh Hasina, the long-cherished dream of the BGB are expected to be fulfilled.
According to the BGB, the bank's main vision is to turn it into a balanced technically sound client-friendly financial institution which will contribute to the country's overall advancement as part of its social responsibility.
Prime Minister Sheikh Hasina instantly gave verbal consent to set up a Bank for the Border Guards when the demand was raised during her Darbar held at Peelkhana marking the BGB Day on December 20, 2014.
Later, BGB Director General Major General Aziz Ahmed speedily moved forward the activities for setting up the bank and Prime Minister Sheikh Hasina unveiled its logo at the BGB Day function on December 20, 2015.
At the same function, Bangladesh Bank Governor handed over the 'Letter of Intent' to BGB Director General for setting up the Bank in presence of the prime minister.
On February 28, 2016, eminent banker Mokhlesur Rahman was appointed Managing Director of the 'Shimanto Bank' while this Bank got final licence from the Bangladesh Bank on July 21, 2016.
The 'Shimanto Bank' will be operated as a sister concern of 'BGB Welfare Trust' which ensures welfare for the BGB members.
From the Bank, the BGB members will be provided with various types of loans on easy conditions alongside operating Deposit Pension Scheme, house building loan, medical assistance conducting treatment both at home and abroad, and financing at the 'One House One Farm' project.
Besides, the bank would also finance at BGB's own welfare-oriented initiatives like 'Alokito Shimanto' and 'Shamridhir Pothe Shimanto' for creating employment opportunities and thus ensuring economic development for the people living in bordering areas.
As a commercial bank, it will deliver banking services to all sorts of people across the country, especially in border areas where the BGB have networks.
The paid-up capital of the bank was first deposited on June 22, 2016, while the Shimanto Bank was given the Incorporation Certificate from the Registrar of Joint Stock Companies on July 14, 2016.
Shimanto Bank was listed as a scheduled bank on July 21, 2016 by the Bangladesh Bank while gazette notification to this end was published on August 1 this year.
Ministers, chiefs of the three services, MPs and high civil and military officials were present on the occasion.
Home Minister Asaduzzaman Khan, Senior Secretary of the Ministry Dr Mozammel Haque Khan, Bank and Financial Institution Division Secretary Mohammad Yunusur Rahman spoke on the occasion. Shimanto Bank Chairman and BGB Director General Major General Aziz Ahmed gave the address of welcome.