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Grameen Bank in Bangladesh
LETTER OF TRANSMITTAL
Date…..
‘Mr. ………..
Lecturer,
Department of Management Studies,

Subject: Solicitation for Acceptance...
We acknowledge our heartiest due to our honorable course instructor
‘Mr. ……………….. Lecturer, Department of Management Studi...
Grameen Bank (GB) has reversed conventional banking practice by removing
the need for collateral and created a banking sys...
Chapter One

Page

Introduction. …………………………………1
Objectives of the Study…………………….. 2
Field of the study………………………………2
Source...
Grameen Bank (GB) has reversed conventional banking practice by
removing the need for collateral and created a banking sys...
The primary purpose of the term paper is to partially fulfill the requirements
for Industrial psychology course and develo...
The subject matter of this report is based on primary and secondary sources of
data and information:
A. Primary Sources:
...
The main source of data collection is the head office of Grameen Bank at Mirpur
-2, Dhaka-1216;.
Firstly Mr. Mahzabeen Kha...
In analyzing the available data to prepare this term paper, there are great
workings done by Authors. But since the knowle...
1. Starting Activities.

2. Organized Activities.
3. First Banking History

1. STARTING ACTIVITIES:
The origin of the acti...
•

Extend banking facilities to poor men and women;

•

Eliminate the exploitation of the poor by money lenders;

•

Creat...
No Collateral, No Legal Instrument, No Group-Guarantee or Joint
Liability
Grameen Bank does not require any collateral aga...
Projected disbursement for 2007 is Tk 65.00 billion (US $ 930 million), i.e.
monthly disbursement of Tk 5.42 billion (US $...
Revenue and Expenditure
Total revenue generated by Grameen Bank in 2005 was Tk 7.39 billion (US $
112.40 million). Total e...
Beggars as Members
Begging is the last resort for survival for a poor person, unless he/she
turns into crime or other form...
Objective of the program is to provide financial services to the
beggars to help them find a dignified livelihood send the...
Scholarships
Scholarships are given, every year, to the high performing children of
Grameen borrowers, with priority on gi...
8) Grameen Star Education Ltd.
9) Grameen Bitek Ltd.
10) Grameen Uddog (Enterprise)
11) Grameen Shamogree (Products)
12) G...
Grameen Kalyan
Grameen Kalyan (well-being) is a spin off company created by Grameen
Bank. Grameen Bank created an internal...
by the bank under the program. The families of the deceased borrowers are not
be required to pay off their debt burden any...
this account comes to a total of Tk 13.34 billion (US $ 192.04 million). Tk 4.27
billion (US $ 62.04 million) was added du...
amounts to Tk 0.55 million (US $ 9,902) per retiring staff. During the past 12
months 601 staff went on retirement collect...
Computerized MIS and Accounting System
Accounting and information management of nearly all the branches
(2,120, out of 2,3...
Grameen Bank provides color-coded stars to branches and staff for 100
percent achievement of a specific task. A branch (or...
1246 branches, out of the total of 2,185 branches, received stars (green) for
maintaining 100 per cent repayment record.
1...
The Grameen Bank's Method of action can be illustrated by the following
principles:
1. Start with the problem rather than ...
Grameen Bank credit delivery system has the following features:
1. There is an exclusive focus on the poorest of the poor....
vi.

stress on credit discipline and collective borrower responsibility or
peer pressure

vii.

special safeguards through...
become familiar with credit discipline, other loan programmes are
introduced to meet growing social and economic developme...
the functions, and the mode of operation of the bank to the local population.
Groups of five prospective borrowers are for...
The assumption is that if individual borrowers are given access to credit,
they will be able to identify and engage in via...
of 1998, the number of branches in operation was 1128, with 2.34 million
members (2.24 million of them women) in 38,957 vi...
1. We shall follow and advance the four principles of Grameen Bank --Discipline, Unity, Courage and Hard work – in all wal...
4. We shall grow vegetables all the year round. We shall eat plenty of them
and sell the surplus.

5. During the plantatio...
8. We shall always keep our children and the environment clean.

9. We shall build and use pit-latrines.

10. We shall dri...
11. We shall not take any dowry at our sons' weddings; neither shall we give any
dowry at our daughters wedding. We shall ...
15. If we come to know of any breach of discipline in any centre, we shall all go there
and help restore discipline.

16. ...
Where we find their Job satisfaction levels, their performance levels, Organizational
Performance, working environment, sa...
Working Hour
Level of Officials
High Level Officials
Mid Level Officials
First Level Officials

Duration of time
No bounda...
o

The credit deliver system should be improved.

o

In Some cases authority is so strict. As a result sometimes debtors

...
REPORTS:
Θ A report on Microcredit and Women's Empowerment, written by
Abdul Bayes.

BOOKS:
Θ Dr. Mohammad Yunus,1995, Mic...
Annual and Monthly Report:
1. Grameen Bank: Monthly Report –2007. Grameen Bank: Dhaka, 2007.
2. Grameen Bank: Annual Repor...
•

Microcredit, Macro Problems

Retrieved 18 March 2007, from
http://www.thenation.com/doc/20061030/bello
•

Microcredit, ...
Appendix-1
Q uestionnaire for Attitude Survey
This questionnaire has been prepared by the students of Management
Studies, ...
Rating……………………………………………………..
6. Salary rate of mine is competitive with the other organization in this level or
ranking.
R...
Appendix-2

GRAMEEN BANK
HEAD OFFICE
MIRPUR-2, DHAKA-1216

Statement No: 1
Issue Number: 326,

Date: March 15, 2007

Grame...
Sl. No.

Particulars

Million Taka

1.0

Cumulative Amount Disbursed Since Inception

314,482.75

2.0

Cumulative Amount R...
10.3 Total :
11.0

45,664.81

Deposits to Outstanding
11.1 Deposits as Percentage of Outstanding Loans
11.2 Deposits and O...
18.0

Scholarship (Cumulative)
18.1 Scholarship Recipient (Female)

20,842

18.2 Scholarship Recipient (Male)

14,854

18....
2002

2003

2004

2005

33,653

44,624

558

678

Institutional
characteristic:
1 Total assets (In million Taka.)
Total as...
Item
Value added in grameen Bank

1994
1890.7

1995

1996

2181.9

2750.8

Value added in linked sectors due to
75.9
suppl...
Appendix

Appendix 1: Total amount of loan disbursed by Grameen Bank.
Appendix 2: The working procedure of Grameen Bank.
Article Submitted by : Asad Saimon
Power by : http://assignmentpoint.com/
Report on Grameen bank in bangladesh
Report on Grameen bank in bangladesh
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Report on Grameen bank in bangladesh

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Grameen Bank Project was born in the village of Jobra, Bangladesh, in 1976. In 1983 it was transformed into a formal bank under a special law passed for its creation. It is owned by the poor borrowers of the bank who are mostly women. It works exclusively for them. Borrowers of Grameen Bank at present own 94 per cent of the total equity of the bank. Remaining 6 percent is owned by the government.

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Report on Grameen bank in bangladesh

  1. 1. Grameen Bank in Bangladesh
  2. 2. LETTER OF TRANSMITTAL Date….. ‘Mr. ……….. Lecturer, Department of Management Studies, Subject: Solicitation for Acceptance of the Term Paper. Dear Sir, We are very much pleased to submit the Term paper on ‘Industrial Psychology’MGT-107. All the works presented here is done with utmost sincerely and honesty. We have tried our level best to make this report holistic and informative enough. Working with such an interesting assignment has given us the opportunity to achieve Knowledge and experience on Grameen Bank in Bangladesh . We are always available for any further quarries regarding this Term paper. Yours truly, ……………………………… ACKNOWLEDGEMENT
  3. 3. We acknowledge our heartiest due to our honorable course instructor ‘Mr. ……………….. Lecturer, Department of Management Studies, University of Dhaka for giving us the opportunity to carry out this term paper. His valuable advice and guideline helped us a lot in preparing this term paper successfully. Otherwise the task of preparing this term paper would have been harder in our part. Our academic career has profited greatly by doing this assignment... At first we would like to remember the almighty Allah for blessing us with the strength, ability and patience to do this task. During the period of preparing the term paper on ‘Grameen bank in Bangladesh’ we had gained altruistic assistance from number of persons. If I do not mention their name, this letter of acknowledgement would not be complete .We are thankful to them. On the list first comes Ahtesham Uddin Ahmed, Principle officer of International Department of Grameen bank... He tried with his level best to solve the problems regarding the doing report. Then number of senior brother & sister really worked hard there and spent their valuable time to provide us plenty of information .I am thankful to them for showing their highest degree of temperament. In fact, it is very hard to articulate how much cordially we were received and what a cordial care and favor. We were so drenched with their affability and hospitality that can't express in words and we felt cent percent abode/homely in every minute we spent there. Executive Summary
  4. 4. Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, This Project was born in the village of Jobra, Bangladesh, in 1976. In 1983 it was transformed into a formal bank under a special law passed for its creation. And the founder of the bank Professor Dr. Muhammad Yunus has been rewarded with the ‘Nobel Peace Prize’ in 2006 for this great contribution. He do so because his approach to banking reinforces the new liberal view that individual behavior is the source of poverty and the new liberal agenda of restricting state aid to the most vulnerable when and where the need for government assistance is most acute. The main activity of Grameen bank is to provide the microcredit loan to the poor members. It gives some facilities in giving loan (Such as No Collateral, No Legal Instrument, No Group-Guarantee or Joint Liability is needed, Low Interest Rates, , Pension Fund for Borrowers etc). In other side it also provides many facilities for them in giving (Housing for the Poor, Scholarship for the students, Micro savings for the Members, Micro insurance Facilities) etc. Today Grameen Bank gives loans to nearly 7.0 million poor peoples, 98% of whom are women, in 73000 villagers in Bangladesh. Table of Content
  5. 5. Chapter One Page Introduction. …………………………………1 Objectives of the Study…………………….. 2 Field of the study………………………………2 Sources of data collection…………………….3 Research Methodology………………………4 Limitations of the Study…………………….5 Chapter- Two Overview of Grameen bank in Bangladesh…..6 History of Grameen Bank…………………….6 Why Grameen Bank…………………………..7 Programs and characteristics of GB…………7 Method of Action…………………………….. 21 Credit Delivery system………………………..22 Breaking the Various through Microcredit…. 26 Contribution in GDP………………………….. 28 Performance Indicators & Ratio Analysis….. 28 Monthly Updates……………………………… 28 The 16 decisions……………………………... 29 Grievances Research and Analysis…………34 Conclusions or Recommendations…………. 36 Chapter- Three Appended Part……………………………38 Bibliography…………………………………… 38 Appendix………………………………………. 41
  6. 6. Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of "Grameen Bank" and its Managing Director, reasoned that if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, "these millions of small people with their millions of small pursuits can add up to create the biggest development wonder."
  7. 7. The primary purpose of the term paper is to partially fulfill the requirements for Industrial psychology course and develop the knowledge and learn the formal procedures of successful term paper. However, in preparing our term paper, we have looked for the following objectives: (a) Conducted a comprehensive literature search relating to the area of investigation. (b) Synthesized and analyzed the evidence from the literature search and identified an appropriate approach to the problem specified. (C) Demonstrated practical and professional skills in the development of business solution. (d) Documented the system to professional standards. (e) Perform an in-depth critical review of the work undertaken. (f) Made an effective contribution within the Industrial environment. (g) Communicated effectively with colleagues. To measure the positions both in Bangladesh and internationally; we have chosen a case study on Grameen Bank as a topic of our study.
  8. 8. The subject matter of this report is based on primary and secondary sources of data and information: A. Primary Sources:  Direct interview & Conversation.  Expert opinion  Official records  Practical work experience.  Different files and documents study.  Group Discussion B. Secondary Sources:  Relevant papers and publications  Different Loan strategies.  Projects appraisal report  Organizational Charts.  Through Internet browsing.
  9. 9. The main source of data collection is the head office of Grameen Bank at Mirpur -2, Dhaka-1216;. Firstly Mr. Mahzabeen Khan, the senior executive officer of Grameen Bank conducted a briefing about the latest condition of microcredit and the position of rural women in this country. To collect information about this term paper International Public Relation center, Development of Research methodology, Grameen Information center help a lot to obtain the information needed. A library to the first building of Grameen bank is situated here and opens for everyone. Any published data books, Lagers, Journals written by different authors in regarding ‘Grameen Bank and Micro credit’ related with the topic is available here. A Questioner is arranged between some members of Grameen Bank, fined some subject from it, studied them and try to find out answers for the purpose of sorting out the best way to solve them.
  10. 10. In analyzing the available data to prepare this term paper, there are great workings done by Authors. But since the knowledge in this field is somewhat limited to the authors, the term paper may have some shortcomings regarding the findings. • Data Insufficiency: It was very difficult to collect data from such a big organization. Because of some divisional and confidential problem, it could not be possible to get enough information. • Lack of Records: Sufficient books, publications, facts and figures are not available. These constraints narrowed the scope of accurate analysis. If these limitations were not been there, the report would have been more useful and attractive. • Short time Allocation: The allocated time was very short for the study. • Connectivity with Study: The study may not give exact result as it is a study of our learning process. • Restriction of Collection of Information: Again for formalities constraints allowance was restricted. That’s why information shortage occurred.
  11. 11. 1. Starting Activities. 2. Organized Activities. 3. First Banking History 1. STARTING ACTIVITIES: The origin of the activities of Grameen Bank can be traced to the 1976 when Mohammed Yunus set up an experiment in ‘JOBRA’ village beside of the Chittagong University campus in chittagong. Then the project was not named the ‘Microcredit’. It was named ‘Dheki Rin Prokolpa’ and started with the contribution of 856 taka only. 2. ORGANIZED ACTIVITIES With the sponsorship of the central bank of the country and support of the nationalized commercial banks, the project was extended to Tangail district in 1979. 3. FIRST BANKING ACTIVITIES THROUGH MICROCREDIT SECTOR: In October 2, 1983, the Grameen Bank was transformed into an independent bank by government-unscheduled legislation. The rural poor whom it serves own Today Grameen Bank. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government.(See Appendix-1)
  12. 12. • Extend banking facilities to poor men and women; • Eliminate the exploitation of the poor by money lenders; • Create opportunities for self-employment for the vast multitude of Unemployed people in rural Bangladesh; • Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves; and • Reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income". Owned by the Poor Grameen Bank Project was born in the village of Jobra, Bangladesh, in 1976. In 1983 it was transformed into a formal bank under a special law passed for its creation. It is owned by the poor borrowers of the bank who are mostly women. It works exclusively for them. Borrowers of Grameen Bank at present own 94 per cent of the total equity of the bank. Remaining 6 percent is owned by the government.
  13. 13. No Collateral, No Legal Instrument, No Group-Guarantee or Joint Liability Grameen Bank does not require any collateral against its micro-loans. Since the bank does not wish to take any borrower to the court of law in case of non-repayment, it does not require the borrowers to sign any legal instrument. Although each borrower must belong to a five-member group, the group is not required to give any guarantee for a loan to its member. Repayment responsibility solely rests on the individual borrower, while the group and the centre oversee that everyone behaves in a responsible way and none gets into repayment problem. There is no form of joint liability, i.e. group members are not responsible to pay on behalf of a defaulting member. 97 percent Women Total number of borrowers is 6.95 million, 97 per cent of them are women. Branches Grameen Bank has 2,343 branches. It works in 75,359 villages. Total staff is 21,363. Over Tk 310 billion Disbursed Total amount of loan disbursed by Grameen Bank, since inception, is Tk 310.20 billion (US$ 6.01 billion). Out of this, Tk 277.00 billion (US$ 5.34 billion) has been repaid. Current amount of outstanding loans stands at TK 33.20 billion (US$ 478.02 million). During the past 12 months (from February’06 to January’07) Grameen Bank disbursed Tk. 50.26 billion (US $ 730.09 million). Monthly average loan disbursement over the past 12 month was Tk 4.19 billion (US $ 60.84 million).(See Appendix-2)
  14. 14. Projected disbursement for 2007 is Tk 65.00 billion (US $ 930 million), i.e. monthly disbursement of Tk 5.42 billion (US $ 77.50 million). End of the year outstanding loan is projected to be at Tk. 40.00 billion (US $ 572 million) Recovery Rate 98 percent Loan recovery rate is 98.48 per cent. 100 percent Loans Financed From Bank’s Deposits Grameen Bank finances 100 per cent of its outstanding loan from its deposits. Over 61 per cent of its deposits come from bank’s own borrowers. Deposits amount to 136 per cent of the outstanding loans. If we combine both deposits and own resources it becomes 154 per cent of loans outstanding No Donor Money, No Loans In 1995, GB decided not to receive any more donor funds. Since then, it has not requested any fresh funds from donors. Last installment of donor fund, which was in the pipeline, was received in 1998. GB does not see any need to take any donor money or even take loans from local or external sources in future. GB's growing amount of deposits will be more than enough to run and expand its credit programme and repay its existing loans. Earns Profit Ever since Grameen Bank came into being, it has made profit every year except in 1983, 1991, and 1992. It has published its audited balance-sheet every year, audited by two internationally reputed audit firms of the country. All these reports are available on CD, and some on our web-site: www.grameen.com.
  15. 15. Revenue and Expenditure Total revenue generated by Grameen Bank in 2005 was Tk 7.39 billion (US $ 112.40 million). Total expenditure was Tk 6.39 billion (US $ 97.19 million). Interest payment on deposits of Tk 2.29 billion (US $ 34.74 million) was the largest component of expenditure (36 per cent). Expenditure on salary, allowances, pension benefits amounted to Tk 1.67 billion (US $ 25.37 million), which was the second largest component of the total expenditure (26 per cent). Grameen Bank made a profit of Tk 1000 million (US $ 15.21 million) in 2005. Entire profit is transferred to a Rehabilitation Fund created to cope with disaster situations. This is done in fulfillment of a condition imposed by the government for exempting Grameen Bank from paying corporate income tax Low Interest Rates Government of Bangladesh has fixed interest rate for government-run micro credit programmers at 11 per cent at flat rate. It amounts to about 22 per cent at declining basis. Grameen Bank's interest rate is lower than government rate. There are four interest rates for loans from Grameen Bank : 20% (declining basis) for income generating loans, 8% for housing loans, 5% for student loans, and 0% (interest-free) loans for Struggling Members (beggars). All interests are simple interest, calculated on declining balance method. This means, if a borrower takes an income-generating loan of say, Tk 1,000, and pays back the entire amount within a year in weekly installments, she'll pay a total amount of Tk 1,100, i.e. Tk 1,000 as principal, plus Tk 100 as interest for the year, equivalent to 10% flat rate. Deposit Rates Grameen Bank offers very attractive rates for deposits. Minimum interest offered is 8.5 per cent. Maximum rate is 12 per cent.
  16. 16. Beggars as Members Begging is the last resort for survival for a poor person, unless he/she turns into crime or other forms of illegal activities. Among the beggars there are disabled, blind, and retarded people, as well as old people with ill health. Grameen Bank has taken up a special program, called Struggling Members Program, to reach out to the beggars. About 91,000 beggars have already joined the program. Total amount disbursed stands at Tk. 81.98 million. Of that amount of Tk. 51.47 million has already been paid off. Basic features of the program are:  Existing rules of Grameen Bank do not apply to beggar members; they make up their own rules.  All loans are interest-free. Loans can be for very long term, to make repayment installments very small. For example, for a loan to buy a quilt or a mosquito-net, or an umbrella, many borrowers are paying Tk 2.00 (3.4 cents US) per week.  Beggar members are covered under life insurance and loan insurance programs without paying any cost  Groups and centers are encouraged to become patrons of the beggar members.  Each member receives an identity badge with Grameen Bank logo. She can display this as she goes about her daily life, to let everybody know that she is a Grameen Bank member and this national institution stands behind her.  Members are not required to give up begging, but are encouraged to take up an additional income-generating activity like selling popular consumer items door to door, or at the place of begging.
  17. 17. Objective of the program is to provide financial services to the beggars to help them find a dignified livelihood send their children to school and graduate into becoming regular Grameen Bank members. We wish to make sure that no one in the Grameen Bank villages has to beg for survival. Housing for the Poor Grameen Bank introduced housing loan in 1984. It became a very attractive programme for the borrowers. This program was awarded Aga Khan International Award for Architecture in 1989. Maximum amount given for housing loan is Tk 15,000 (US $ 216) to be repaid over a period of 5 years in weekly instalments. Interest rate is 8 per cent. 6,42,355 houses have been constructed with the housing loans averaging Tk 13,202 (US $ 190). A total amount of Tk 8.48 billion (US $ 203.57 million) has been disbursed for housing loans. During the past 12 months (from February’06 to January’07) 14,253 houses have been built with housing loans amounting to Tk 137.45 million (US $ 2.00 million). Micro-enterprise Loans Many borrowers are moving ahead in businesses faster than others for many favourable reasons, such as, proximity to the market, presence of experienced male members in the family, etc. Grameen Bank provides larger loans, called micro-enterprise loans, for these fast moving members. There is no restriction on the loan size. So far 1,035,751 members took micro-enterprise loans. A total of Tk 22.30 billion (US $ 348.83 million) has been disbursed under this category of loans. Average loan size is Tk 21,534 (US $ 310), maximum loan taken so far is Tk 1.2 million (US $ 19,897). This was used in purchasing a truck which is operated by the husband of the borrower. Power-tiller, irrigation pump, transport vehicle, and river-craft for transportation and fishing are popular items for microenterprise loans.
  18. 18. Scholarships Scholarships are given, every year, to the high performing children of Grameen borrowers, with priority on girl children, to encourage them to stay ahead to their classes. Up to January 2007, scholarships amounting to US$ 450,000 have been awarded to 35,494 children. During 2007, US$ 775,000 will be awarded to about 30,000 children, at various levels of school and college education. Education Loans Students who succeed in reaching the tertiary level of education are given higher education loans, covering tuition, maintenance, and other school expenses. By January’07, 14,984 students received higher education loans, of them 13,999 students are studying at various universities; 170 are studying in medical schools, 321 are studying to become engineers, 494 are studying in other professional institutions. Grameen Network 1) Grameen Phone Ltd. 2) Grameen Telecom 3) Grameen Communications 4) Grameen Cybernet Ltd. 5) Grameen Software Ltd. 6) Grameen IT Park 7) Grameen Information Highways Ltd. (See Appendix-3)
  19. 19. 8) Grameen Star Education Ltd. 9) Grameen Bitek Ltd. 10) Grameen Uddog (Enterprise) 11) Grameen Shamogree (Products) 12) Grameen Knitwear Ltd. 13) Gonoshasthaya Grameen Textile Mills Ltd. 14) Grameen Shikkha (Education) 15) Grameen Capital Management Ltd. 16) Grameen Byabosa Bikash (Business Promotion ) 17) Grameen Trust Grameen Bank-Created Companies The following companies in the Grameen network were created by Grameen Bank, as separate legal entities, to spin off some projects within Grameen Bank funded by donors. Donor funds transferred to Grameen Fund were given as a loan from Grameen Bank. These companies have the following loan liability to Grameen Bank : Grameen Fund : Tk 373.2 million (US $ 6.38 million) Grameen Krishi Foundation : Tk 19 million (US $ .33 million) Grameen Motsho (Fisheries) Foundation : Tk 15 million (US $ .26 million) Grameen Bank provided guarantees in favour of the following organizations while they were receiving loans from the government and the financial organizations. These guarantees are still in effect. Grameen Shakti : Tk 9 million (US $ 0.12 million) Grameen Motsho (Fisheries) Foundation : Tk 8 million (US $ 0.11 million)
  20. 20. Grameen Kalyan Grameen Kalyan (well-being) is a spin off company created by Grameen Bank. Grameen Bank created an internal fund called Social Advancement Fund (SAF) by imputing interest on all the grant money it received from various donors. SAF has been converted into a separate company to carry out its mandate to undertake social advance activities among the Grameen borrowers, such as, education, health, technology, etc. Loans Paid Off At Death In case of death of a borrower, all outstanding loans are paid off under Loan Insurance Program. Under this program, an insurance fund is created by the interest generated in a savings account created by deposits of the borrowers made for loan insurance purpose, at the time of receiving loans. Each time an amount equal to 3 per cent of the loan amount is deposited in this account. This amount is transferred from the Special Savings account. If the current balance in the insurance savings account is equal or more than the 3 per cent of the loan amount, the borrower does not need to add any more money in this account. If it is less than 3 per cent of the loan amount, she has to deposit enough money to make it equal. Coverage of the loan insurance program has also been extended to the husbands with additional deposits in the loan insurance deposit account. A borrower can get the outstanding amount of loan paid off by insurance if her husband dies. She can continue to borrow as if she has paid off the loan. Total deposits in the loan insurance savings account stood at Tk 3,820.55 million (US$ 55.00 million) as on January 31, 2007. Up to that date 55,462 insured borrowers and insured husbands died and a total outstanding loans and interest of Tk 382.79 million (US $ 6.11 million) left behind was paid off
  21. 21. by the bank under the program. The families of the deceased borrowers are not be required to pay off their debt burden any more, because the insured borrowers or their insured husbands do not leave behind any debt burden to take care of. Life Insurance Each year families of deceased borrowers of Grameen Bank receive a total of Tk 8 to 10 million (US $ 0.14 million to 0.17 million) in life insurance benefits. Each family receives Tk 1,500. A total of 90,086 borrowers died so far in Grameen Bank. Their families collectively received a total amount of Tk 170.90 million (US$ 3.72 million). Borrowers are not required to pay any premium for this life insurance. Borrowers come under this insurance coverage by being a shareholder of the bank. Deposits By the end of January, 2007 total deposit in Grameen Bank stood at Tk. 45.11 billion (US$ 649.48 million). Member deposit constituted 61 per cent of the total deposits. Balance of member deposits has increased at a monthly average rate of 2.87 per cent during the last 12 months. Pension Fund for Borrowers As borrowers grow older they worry about what will happen to them when they cannot work and earn any more. Grameen Bank addressed that issue by introducing the program of creating a Pension Fund for old age. It immediately became a very popular program. Under this program a borrower is required to save a small amount, such as Tk 50 (US $ 0.86), each month over a period of 10 years. The depositor gets almost twice the amount of money she saved, at the end of the period. The borrowers find it very attractive. By the end of January, 2007 the balance under
  22. 22. this account comes to a total of Tk 13.34 billion (US $ 192.04 million). Tk 4.27 billion (US $ 62.04 million) was added during the past 12 months (FebruaryJanuary, 2007). We expect the balance in this account to grow by Tk 6.26 billion (US $ 89.54 million) in 2007 making the balance to reach Tk 19.60 billion (US $ 280.36 million). Loan Loss Reserve Grameen Bank has a very rigorous policy on bad debt provisioning. If a loan does not get paid back on time it is converted into a special type of loan called "Flexible Loan", and 50 per cent provisioning is done at the first annual closing. Hundred per cent provisioning is done when flexible loan completes the second year. At its third year, the outstanding amount is completely written off even if the loan repayment still continues. Balance in the loan loss reserve stood at Tk 2.71billion (US $ 41.12 million) at the end of 2005 after writing off an amount of Tk 2.00 billion (US $ 30.40 million) during 2005. Out of the total amount written off in the past an amount of Tk 0.85 billion (US $ 12.96 million) has been recovered during 2005. Retirement Benefits Paid Out Grameen Bank has an attractive retirement policy. Any staff can retire after completing ten years or more of service. At the time of retirement he receives a retirement benefit in cash. It is usually paid out within a month after retirement. Since this benefit was introduced 6,226 staff members retired and received a total amount of Tk 3.43 billion (US $ 61.65 million) in cash. This
  23. 23. amounts to Tk 0.55 million (US $ 9,902) per retiring staff. During the past 12 months 601 staff went on retirement collecting a retirement benefit of Tk 556.00 million (US $ 8.08 million). Average retirement benefit per staff was Tk 0.93 million (US $ 13,444). Telephone-Ladies To-date Grameen Bank has provided loans to 282,662 borrowers to buy mobile phones and offer telecommunication services in nearly half of the villages of Bangladesh where this service never existed before. Telephone-ladies run a very profitable business with these phones. Telephone-ladies play an important role in the telecommunication sector of the country, and also in generating revenue for Grameen Phone, the largest telephone company in the country. Telephone ladies use 16.5 percent of the total air-time of the company, while their number is only 4 per cent of the total number of telephone subscribers of the company Getting Elected in Local Bodies Grameen system makes the borrowers familiar with election process. They routinely go through electing group chairmen and secretaries, centre-chiefs and deputy centre-chiefs every year. They elect board members for running Grameen Bank every three years. This experience has prepared them to run for public offices. They are contesting and getting elected in the local governments. In 2003 local government (Union Porishad) election 7,442 Grameen members contested in the reserved seats for women, 3,059 members got elected. They constitute 24 per cent of the total members elected in the seats reserved for women members in the Union Porishad local government. During 1997 local government election 1,753 members got elected to these reserved seats.
  24. 24. Computerized MIS and Accounting System Accounting and information management of nearly all the branches (2,120, out of 2,343) has been computerized. This has freed the branch staff to devote more time to the borrowers rather than spend it in paper-work. Branch staffs are provided with pre-printed repayment figures for each weekly meeting. If every borrower pays according to the repayment schedule, the staff has nothing to write on the document except for putting the signature. Only the deviations are recorded. Paper work that remains to be done at the village level is to enter figures in the borrowers' passbooks. Thirty six zones, out of 39, are connected with the head office, and with each other, through intra-net. This has made data transfer and communications very easy. Policy for Opening New Branches New branches are required to fund themselves entirely with the deposits they mobilize. No fund from head office or any other office is lent to them. A new branch is expected to break-even within the first year of its operation. Crossing the Poverty-Line According to a recent internal survey, 64 per cent of Grameen borrowers' families of Grameen borrowers have crossed the poverty line. The remaining families are moving steadily towards the poverty line from below. 'Stars' for Achievements
  25. 25. Grameen Bank provides color-coded stars to branches and staff for 100 percent achievement of a specific task. A branch (or a staff) having five-stars indicate the highest level of performance. At the end of June 2006 branches showed the following result. 1246 branches, out of the total of 2,185 branches, received stars (green) for maintaining 100 per cent repayment record. 1431 branches received stars (blue) for earning profit. (Grameen Bank as a whole earns profit because the total profit of the profit-earning branches exceeds the total loss of the loss-incurring branches.) 1179 branches earned stars (violet) by meeting all their financing out of their earned income and deposits. These branches not only carry out their business with their own funds, but also contribute their surpluses to meet the fund requirement of deficit branches. 308 branches have applied for stars (brown) for ensuring education for 100% of the children of Grameen families. After the completion of the verification processes their stars will be confirmed. 54 branches have applied for stars (red) indicating branches those have succeeded in taking all its borrowers' families (usually 3,000 families per branch) over the poverty line. The star will be confirmed only after the verification procedure is completed. Each month branches are coming closer to achieving new stars. Grameen staff looks forward to transforming all the branches of Grameen Bank into five star branches. Grameen Bank provides color-coded stars to branches and staff for 100 percent achievement of a specific task. A branch (or a staff) having five-stars indicate the highest level of performance. At the end of June 2006 branches showed the following result.
  26. 26. 1246 branches, out of the total of 2,185 branches, received stars (green) for maintaining 100 per cent repayment record. 1431 branches received stars (blue) for earning profit. (Grameen Bank as a whole earns profit because the total profit of the profit-earning branches exceeds the total loss of the loss-incurring branches.) 1179 branches earned stars (violet) by meeting all their financing out of their earned income and deposits. These branches not only carry out their business with their own funds, but also contribute their surpluses to meet the fund requirement of deficit branches. 308 branches have applied for stars (brown) for ensuring education for 100% of the children of Grameen families. After the completion of the verification processes their stars will be confirmed. 54 branches have applied for stars (red) indicating branches those have succeeded in taking all its borrowers' families (usually 3,000 families per branch) over the poverty line. The star will be confirmed only after the verification procedure is completed. Each month branches are coming closer to achieving new stars. Grameen staff looks forward to transforming all the branches of Grameen Bank into five star branches.
  27. 27. The Grameen Bank's Method of action can be illustrated by the following principles: 1. Start with the problem rather than the solution: a credit system must be based on a survey of the social background rather than on a preestablished banking technique. 2. Adopt a progressive attitude: development is a long-term process which depends on the aspirations and commitment of the economic operators. 3. Make sure that the credit system serves the poor, and not vice-versa: credit officers visit the villages, enabling them to get to know the borrowers. 4. Establish priorities for action vis-à-vis to the target population: serve the most poverty-stricken people needing investment resources, who have no access to credit. 5. At the beginning, restrict credit to income-generating production operations, freely selected by the borrower. Make it possible for the borrower to be able to repay the loan. 6. Lean on solidarity groups: small informal groups consisting of co-opted members coming from the same background and trusting each other. 7. Associate savings with credit without it being necessarily a prerequisite. 8. Combine close monitoring of borrowers with procedures which are simple and standardized as possible. 9. Do everything possible to ensure the system's financial balance. 10. Invest in human resources: training leaders will provide them with real development ethics based on rigor, creativity, understanding and respect for the rural environment.
  28. 28. Grameen Bank credit delivery system has the following features: 1. There is an exclusive focus on the poorest of the poor. Exclusivity is ensured by: i. establishing clearly the eligibility criteria for selection of targeted clientele and adopting practical measures to screen out those who do not meet them ii. in delivering credit, priority has been increasingly assigned to women iii. The delivery system is geared to meet the diverse socio-economic development needs of the poor. 2. Borrowers are organized into small homogeneous groups. Such characteristics facilitate group solidarity as well as participatory interaction. Organizing the primary groups of five members and federating them into centres has been the foundation of Grameen Bank's system. The emphasis from the very outset is to organizationally strengthen the Grameen clientele, so that they can acquire the capacity for planning and implementing micro level development decisions. The Centers are functionally linked to the Grameen Bank, whose field workers have to attend Centre meetings every week. (See appendix-4) 3. Special loan conditional ties which are particularly suitable for the poor. These include: i. very small loans given without any collateral ii. loans repayable in weekly installments spread over a year iii. eligibility for a subsequent loan depends upon repayment of first loan iv. individual, self chosen, quick income generating activities which employ the skills that borrowers already posses v. close supervision of credit by the group as well as the bank staff
  29. 29. vi. stress on credit discipline and collective borrower responsibility or peer pressure vii. special safeguards through compulsory and voluntary savings to minimize the risks that the poor confront viii. Transparency in all bank transactions most of which take place at centre meetings. 4. Simultaneous addressing undertaking basic of a social development of the needs agenda clientele. This is reflected in the "sixteen decisions" adopted by Grameen borrowers. This helps to: i. raise the social and political consciousness of the newly organized groups ii. focus increasingly on women from the poorest households, whose urge for survival has a far greater bearing on the development of the family iii. Encourage their monitoring of social and physical infrastructure projects - housing, sanitation, drinking water, education, family planning, etc. 5. Design and development of organization and management systems capable of delivering programme resources to targeted clientele. The system has evolved gradually through a structured learning process, that involves trials, errors and continuous adjustments. A major requirement to operationalize the system is the special training needed for development of a highly motivated staff, so that the decision making and operational authority is gradually decentralized and administrative functions are delegated at the zonal levels downwards. 6. Expansion of loan portfolio to meet diverse development needs of the poor. As the general credit programme gathers momentum and the borrowers
  30. 30. become familiar with credit discipline, other loan programmes are introduced to meet growing social and economic development needs of the clientele. Besides housing, such programmes include: i. credit for building sanitary latrines ii. credit for installation of tube wells that supply drinking water and irrigation for kitchen gardens iii. credit for seasonal cultivation to buy agricultural inputs iv. loan for leasing equipment / machinery, ie., cell phones purchased by Grameen Bank members v. Finance projects undertaken by the entire family of a seasoned borrower. The underlying premise of Grameen is that, in order to emerge from poverty and remove themselves from the clutches of usurers and middlemen, landless peasants need access to credit, without which they cannot be expected to launch their own enterprises, however small these may be. In defiance of the traditional rural banking postulate whereby "no collateral (in this case, land) means no credit", the Grameen Bank experiment set out to prove - successfully that lending to the poor is not an impossible proposition; on the contrary, it gives landless peasants the opportunity to purchase their own tools, equipment, or other necessary means of production and embark on income-generating ventures which will allow them escape from the vicious cycle of "low income, low savings, low investment, low income". In other words, the banker's confidence rests upon the will and capacity of the borrowers to succeed in their undertakings. The mode of operation of Grameen Bank is as follows. A bank branch is set up with a branch manager and a number of center managers and covers an area of about 15 to 22 villages. The manager and the workers start by visiting villages to familiarize themselves with the local milieu in which they will be operating and identify the prospective clientele, as well as explain the purpose,
  31. 31. the functions, and the mode of operation of the bank to the local population. Groups of five prospective borrowers are formed; in the first stage, only two of them are eligible for, and receive, a loan. The group is observed for a month to see if the members are conforming to the rules of the bank. Only if the first two borrowers begin to repay the principal plus interest over a period of six weeks, do the other members of the group become eligible themselves for a loan. Because of these restrictions, there is substantial group pressure to keep individual records clear. In this sense, the collective responsibility of the group serves as the collateral on the loan. Loans are small, but sufficient to finance the micro-enterprises undertaken by borrowers: rice-husking, machine repairing, purchase of rickshaws, buying of milk cows, goats, cloth, pottery etc. The interest rate on all loans is 16 percent. The repayment rate on loans is currently - 95 per cent - due to group pressure and self-interest, as well as the motivation of borrowers. Although mobilization of savings is also being pursued alongside the lending activities of the Grameen Bank, most of the latter's loan able funds are increasingly obtained on commercial terms from the central bank, other financial institutions, the money market, and from bilateral and multilateral aid organizations. The Grameen Bank is based on the voluntary formation of small groups of five people to provide mutual, morally binding group guarantees in lieu of the collateral required by conventional banks. At first only two members of a group are allowed to apply for a loan. Depending on their performance in repayment the next two borrowers can then apply and, subsequently, the fifth member as well.
  32. 32. The assumption is that if individual borrowers are given access to credit, they will be able to identify and engage in viable income-generating activities simple processing such as paddy husking, lime-making, manufacturing such as pottery, weaving, and garment sewing, storage and marketing and transport services. Women were initially given equal access to the schemes, and proved not only reliable borrowers but astute entrepreneurs. As a result, they have raised their status, lessened their dependency on their husbands and improved their homes and the nutritional standards of their children. Today over 90 percent of borrowers are women. Intensive discipline, supervision, and servicing characterize the operations of the Grameen Bank, which are carried out by "Bicycle bankers" in branch units with considerable delegated authority. The rigorous selection of borrowers and their projects by these bank workers, the powerful peer pressure exerted on these individuals by the groups, and the repayment scheme based on 50 weekly installments, contribute to operational viability to the rural banking system designed for the poor. Savings have also been encouraged. Under the scheme, there is provision for 5 percent of loans to be credited to a group find and Tk 5 is credited every week to the fund. The success of this approach shows that a number of objections to lending to the poor can be overcome if careful supervision and management are provided. For example, it had earlier been thought that the poor would not be able to find remunerative occupations. In fact, Grameen borrowers have successfully done so. It was thought that the poor would not be able to repay; in fact, repayment rates reached 97 percent. It was thought that poor rural women in particular were not bankable; in fact, they accounted for 94 percent of borrowers in early 1992. It was also thought that the poor cannot save; in fact, group savings have proven as successful as group lending. It was thought that rural power structures would make sure that such a bank failed; but the Grameen Bank has been able to expand rapidly. Indeed, from fewer than 15,000 borrowers in 1980, the membership had grown to nearly 100,000 by mid-1984. By the end
  33. 33. of 1998, the number of branches in operation was 1128, with 2.34 million members (2.24 million of them women) in 38,957 villages. There are 66,581 centres of groups, of which 33,126 are women. Group savings have reached 7,853 million taka (approximately USD 162 million), out of which 7,300 million taka (approximately USD 152 million) are saved by women. It is estimated that the average household income of Grameen Bank members is about 50 percent higher than the target group in the control village, and 25 percent higher than the target group non-members in Grameen Bank villages. The landless have benefited most, followed by marginal landowners. This has resulted in a sharp reduction in the number of Grameen Bank members living below the poverty line, 20 percent compared to 56 percent for comparable nonGrameen Bank members. There has also been a shift from agricultural wage labor (considered to be socially inferior) to self-employment in petty trading. Such a shift in occupational patterns has an indirect positive effect on the employment and wages of other agricultural waged laborers. What started as an innovative local initiative, "a small bubble of hope", has thus grown to the point where it has made an impact on poverty alleviation at the national level ".
  34. 34. 1. We shall follow and advance the four principles of Grameen Bank --Discipline, Unity, Courage and Hard work – in all walks of our lives. 2. Prosperity we shall bring to our families. 3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest.
  35. 35. 4. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus. 5. During the plantation seasons, we shall plant as many seedlings as possible. 6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health. 7. We shall educate our children and ensure that they can earn to pay for their education.
  36. 36. 8. We shall always keep our children and the environment clean. 9. We shall build and use pit-latrines. 10. We shall drink water from tubewells. If it is not available, we shall boil water or use alum.
  37. 37. 11. We shall not take any dowry at our sons' weddings; neither shall we give any dowry at our daughters wedding. We shall keep our centre free from the curse of dowry. We shall not practice child marriage. 12. We shall not inflict any injustice on anyone; neither shall we allow anyone to do so. 13. We shall collectively undertake bigger investments for higher incomes. 14. We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her.
  38. 38. 15. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline. 16. We shall take part in all social activities collectively. A questioner for the attitude Survey is conducted for the executives of Grameen Bank to measure attitudes of with the permission of the authority. (See Apendix-1)
  39. 39. Where we find their Job satisfaction levels, their performance levels, Organizational Performance, working environment, salary condition, ranking process, insurance facilities, working hour, Employee Job satisfaction levels Level of workers High Level Officials Mid Level Officials First Level Officials Satisfaction Level & Percentages High (75%) Average (55%) Lower than average (42%) Employee Performance Levels Level of Officials Skills Use of Skills High Level Officials Conceptual, Technical & Conceptual Human Mid Level Officials Human Technical Conceptual, Technical & Conceptual Human First Level Officials Human Technical Conceptual, Technical & Conceptual Human 70%, 20% 10% 30%, 20% 50% 10%, Human 20% Technical 70% Working environment Level of Officials High Level Officials Mid Level Officials First Level Officials Satisfaction levels Strongly satisfied Satisfied No Comments (average)
  40. 40. Working Hour Level of Officials High Level Officials Mid Level Officials First Level Officials Duration of time No boundary of Working Time Sometimes cross the assigned Time Assigned Time Insurance Facilities Level of Officials High Level Officials Mid Level Officials First Level Officials Availability Yes Yes Yes At last we can say that the Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. As in 2007, it has more than 7 million borrowers, 98 percent of whom are women. With more than 2283 branches, GB provides services in 73,609 villages, covering more than 88 percent of the total villages in Bangladesh.
  41. 41. o The credit deliver system should be improved. o In Some cases authority is so strict. As a result sometimes debtors are afraid of taking loan. o The government should help Grameen Bank to grow faster but at the same time, the government itself should continue to carry out its poverty alleviation programs especially through BRDB and other organs o The complementary role of Grameen Bank and government can take care of the problem, o Grammen Bank should remove all its wrong perception from people and institutions.
  42. 42. REPORTS: Θ A report on Microcredit and Women's Empowerment, written by Abdul Bayes. BOOKS: Θ Dr. Mohammad Yunus,1995, Microcredit and my life, Bangla Edition, Ahmed Mahfujul Haque, Θ Dr. Mohammad Yunus,May 2006,Introducing Grameen Bank, Bangla Edition, Packages CorporationLtd,4/cShaloShahar -4209. Θ Dr. Mohammad Yunus,1999, Pother Badha sorie Nin Manushke Agute Din, Bangla Edition, Ahmed Mahfujul Haque, Θ Dr. Mohammad Yunus, Muhammad and Jolis, Alan. Banker to the Poor (Bangla Version-1st Edition): The autobiography of Muhammad Yunus, founder of the Grameen Bank. Public Affairs:Bangladesh, 1999.
  43. 43. Annual and Monthly Report: 1. Grameen Bank: Monthly Report –2007. Grameen Bank: Dhaka, 2007. 2. Grameen Bank: Annual Report –2006. Grameen Bank: Dhaka, 2006. ] Internet Search: • Grameen Bank Retrieved 18 March 2007, from http://www.grameen-info.org/ • MuhammadYunus.org Retrieved 18 March 2007, from http://www.muhammadyunus.org/ • Yunus Foreign Correspondent - Interview with Prof. Muhammad Retrieved 18 March 2007, from http://www.abc.net.au/foreign/stories/s400630.htm • Follow-up report on the Microcredit summit Retrieved 18 March 2007, from http://www.leftbusinessobserver.com/Micro_summit.html
  44. 44. • Microcredit, Macro Problems Retrieved 18 March 2007, from http://www.thenation.com/doc/20061030/bello • Microcredit, microresults Retrieved 18 March 2007, from http://www.leftbusinessobserver.com/Micro.html • The MicroBanking Bulletin, Retrieved 18 March 2007, from http://www.mixmbb.org/en/index.html • Journal of Microfinance, Retrieved 18 March 2007, from http://www.lib.byu.edu/spc/microfinance/ • Grameen Foundation, Retrieved 18 March 2007, from http://www.grameenfoundation.org/ • Microcredit and Women's Poverty, Retrieved 18 March 2007, from http://www.dollarsandsense.org/archives/2006/1106feinerbarker.html
  45. 45. Appendix-1 Q uestionnaire for Attitude Survey This questionnaire has been prepared by the students of Management Studies, 12th batch, BBA as per requirement of the course: ‘Industrial Psychology’ (107). It has been primarily prepared in order to conduct a survey in Head office of Grameen Bank at Mirpur -2, Dhaka-1216;. Your kind cooperation will be highly appreciated. NAME: • Instruction: Please answer the Following statements using the following rating scale 5=Strongly agree 3=Undecided 1=Strongly Disagree 1. This Organization is pretty good place to work. Rating…………………………………………………….. 2. Organization’s working environmental condition is very good. Rating…………………………………………………….. 3. I can get ahead in this organization if I make the effort. Rating…………………………………………………….. 4. I am satisfied with my salary of this level. Rating…………………………………………………….. 5. I am satisfied with my ranking also. 4=Agree 2=Disagree
  46. 46. Rating…………………………………………………….. 6. Salary rate of mine is competitive with the other organization in this level or ranking. Rating…………………………………………………….. 7. This organization gives me bonus in satisfied level. Rating…………………………………………………….. 8. Not only bonus but also this organization gives me many other facilities. Rating…………………………………………………….. 9. I get insurance facilities from my organization. Rating…………………………………………………….. 10. My job makes the better use of my ability. Rating…………………………………………………….. 11. I appreciate my actual working hour. Rating…………………………………………………….. 12My working pressure is in line with the current salary. Rating…………………………………………………….. 13. My expected working is 8hrs /day with the maintenance of law in Bangladesh. Rating…………………………………………………….. 14. I have trust and confidence in my boss. Rating…………………………………………………….. 15. I feel free to tell my boss what I think. Rating…………………………………………………….. 13. I know what boss expect from me. Rating…………………………………………………….. 16. I find the best security to work in. Rating……………………………………………………..
  47. 47. Appendix-2 GRAMEEN BANK HEAD OFFICE MIRPUR-2, DHAKA-1216 Statement No: 1 Issue Number: 326, Date: March 15, 2007 Grameen Bank Monthly Update in Taka : February, 2007
  48. 48. Sl. No. Particulars Million Taka 1.0 Cumulative Amount Disbursed Since Inception 314,482.75 2.0 Cumulative Amount Repaid Since Inception 280,897.10 3.0 Amount Disbursed this Month 4,277.08 4.0 Amount Repaid this Month 3,894.59 5.0 Outstanding Loan 5.1 Basic Loan 5.2 Flexible Loan (a) 30,893.85 1,829.19 5.3 Housing Loan 278.30 5.4 Other Loans 584.32 5.5 Total : 33,585.65 6.0 Rate of Recovery (b) 7.0 Total Outstanding of Borrowers Missing 5 to 9 Consecutive Instalments (c) 98.49 7.1 Basic Loan 7.2 Flexible Loan 206.25 7.3 Total : 8.0 157.93 364.17 Overdue Loan (d) 8.1 Basic Loan (e) 174.41 8.2 Flexible Loan 433.25 8.3 Housing Loan 46.75 8.4 Other Loans 8.5 Total : 9.0 0.84 655.25 Microenterprise Loan (Cumulative) 9.1 No. of Microenterprise Loans 9.2 Amount Disbursed 22,899.85 9.3 Amount Repaid 10.0 1,061,984 17,764.99 Balance of Deposits 10.1 Members' Deposit 27,675.46 10.2 Non-Members' Deposit 17,989.35
  49. 49. 10.3 Total : 11.0 45,664.81 Deposits to Outstanding 11.1 Deposits as Percentage of Outstanding Loans 11.2 Deposits and Own Resources as Percentage of Outstanding Loans 154 11.3 No. of Branches with more in Deposits than in Outstanding Loans 12.0 136 1,369 Beggar Members 12.1 No. of Beggar Members 81,863 12.2 Amount Disbursed (Cumulative) 12.3 Amount Repaid (Cumulative) 14.0 15.0 53.64 12.4 Amount of Savings (Balance) 13.0 85.32 6.70 Cumulative Number of Village Phones Cumulative Number of Houses Built with Housing Loans 289,204 643,756 Life Insurance Fund (Cumulative) 15.1 No. of Deaths Among all Borrowers 15.2 Amount paid out from Life Insurance Fund 16.0 90,857 171.84 Loan Insurance 16.1 Balance in Loan Insurance Savings 3,811.22 16.2 No. of Deaths Among Insured Borrowers (Cumulative) 16.3 Amount of Outstanding Principal and Interest of the Deceased Borrowers paid out from Insurance Fund (Cumulative) 17.0 57,528 388.81 Higher Education Loan (Cumulative) 17.1 No. of Female Students 3,025 17.2 No. of Male Students 12,373 17.3 Total : 15,398 17.4 Amount Disbursed (Female) 79.20 17.5 Amount Disbursed (Male) 334.37 17.6 Total : 413.57
  50. 50. 18.0 Scholarship (Cumulative) 18.1 Scholarship Recipient (Female) 20,842 18.2 Scholarship Recipient (Male) 14,854 18.3 Total : 35,696 18.4 Scholarship Amount (Female) 18.5 Scholarship Amount (Male) 11.94 18.6 Total : 19.0 15.78 27.72 Number of Members 19.1 Female 6,768,363 19.2 Male 237,563 19.3 Total : 7,005,926 20.0 Number of Groups 1,107,515 21.0 Number of Centres 123,732 22.0 Number of Villages 75,950 23.0 Number of Branches 24.0 2,381 Number of Branches with Computerized Accounting and MIS Appendix-2 2,158
  51. 51. 2002 2003 2004 2005 33,653 44,624 558 678 Institutional characteristic: 1 Total assets (In million Taka.) Total assets (In million USD) 2 Number of offices Number of employees 22,659 391 27,272 467 1,332 1,357 1,525 1,944 11,699 11,846 13,038 16,142 1,178 1,195 1,358 1,735 3.12 4.06 5.58 3.70 5.05 2,722 2,912 Outreach indicators: 3 Number of branches 4 Number of members (In millions) 2.48 5 Number of active borrowers (In millions) 2.08 2.87 6 Number of active borrowers per branch (year-end) 1,766 2,402 7 Number of loan officers 7,448 7,495 8 Percent of women members 9 Average loan balance per borrower(Taka) Average loan balance per borrower(USD) Loan portfolio 95.20% 6,134 106 7,925 9,166 95.44% 95.66% 96.27% 5,622 96 5,444 90 5,563 85
  52. 52. Item Value added in grameen Bank 1994 1890.7 1995 1996 2181.9 2750.8 Value added in linked sectors due to 75.9 supply of inputs to Grameen Bank 88.9 97.2 Value added in linked sectors 7341.8 attributed to Grameen Bank loans 7222.1 6257.1 Capital supplying sectors 1348.9 1362.7 1152.8 Input supplying sectors 5992.9 5859.4 5104.3 Wage payment from loans 547.8 553.9 468.9 Return on loan financed activities at 5556.8 40% 5464 4751.2 Total contribution of Grameen Bank 15413 of GDP 15510.8 14325.2 Total GDP 1170261 1301600 1030365 Percentage contribution of Grameen 1.50% Bank to GDP 1.33% 1.10% Source: Contribution of Grameen Bank to Gross Domestic Product of Bangladesh: Preliminary Estimates, By Mohiuddin Alamgir, December 1998
  53. 53. Appendix Appendix 1: Total amount of loan disbursed by Grameen Bank.
  54. 54. Appendix 2: The working procedure of Grameen Bank.
  55. 55. Article Submitted by : Asad Saimon Power by : http://assignmentpoint.com/

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