Creating a Collaborative Platform for Capacity Building in Financial Inclusion, 18th Microcredit Summit, Abu Dhabi UAE, March 14-17, 2016

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Ratan Kumar Nag
Acting Managing Director, Grameen Bank
Creating Hope for the Poor
The Experience of
Grameen Bank
RATAN KUMAR NAG
Acting Managing Director (CEO)
Grameen Bank
E-mail: mdsecretariat@mail.grameen.com

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The Origin & Evolution of Grameen Bank
 Grameen Bank Project was born in the village of Zobra,
Bangladesh, in 1976. It began as an action research
project at Chittagong University. Professor Muhammad
Yunus is founder of Grameen Bank, who was teaching
Economics at Chittagong University.
 At 1979 it became a pilot project of Bangladesh Central
Bank.
 In October 1983, Grameen Bank was established as an
independent financial institution under a special act of
parliament.
 The mission of Grameen Bank is to alleviate poverty
from the lives of the poor people.

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Name: GRAMEEN BANK
Country: Bangladesh
Creation: 1976 (research project), 1979 (pilot project) and 1983 (specialized bank)
Founder: Prof. Muhammad Yunus
Defination: only collateral free bank in Bangladesh aiming to differentiate from the traditional banking methods by
giving microcredit to its members --- poor women from Bangladesh’ villages
Goals: eliminate exploitation of moneylenders; create self---employment; break the vicious cycle of poverty; empower
and unify scattered, marginalized and voiceless people; create good opportunities for the next generations
• # of Branches: 2568
• # Total Employee : 21586
• # of Villages: 81392
• # of Centres: 142607
• # of Groups: 1358268
• # of Members: 8.7 M
• Outstanding loan amount: 1.2 Billion USD
• Deposits amount: : 2.4 Billion USD
• # Numbers of Higher Education Loan (cumulative): 53392
• # Numbers of Scholarships (cumulative): 225984
• 97 % members are women.
• 9 women board members from shareholders out of 13.
• No Donor Money, No loans since 1995.
GB Features at a glance

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Operational Procedure of GB MicrocreditOperational Procedure of GB Microcredit
Group
Formation
Group
Training
Selection of
Group
Chairman &
Others
Group
Recognition
Loan
Proposal
Loan
Disbursement
Loan
Utilization
Loan
Repayment

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Organizational Structure of Grameen Bank
Zonal Office
Area Office
Groups
Hea
d
Offi
ce
GB Members-8.81 million
(97% Whom are Women)
Branch Office
Centers
Head Office
268 Area Office
40 Zonal Office
60-70 Centres per Branch
Branch Office ( 2,568)
Group of 5 MembersGroup of 5 Members

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Grameen Bank Loan ProductsGrameen Bank Loan Products
Basic Loan
Housing Loan
Struggling Member’s Loan
Higher Education Loan

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Savings Products
For GB
Members &
Staff
For Non GB
Member
Personal Savings
Fixed Deposit
Grameen Pension
Scheme
9 Years Double Deposit
Monthly Profit Deposit.
Loan Insurance
Savings

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Scholarship Programme of Grameen Bank
 GB launched a scholarship program for the talented students of GB
members.
 50% scholarships are given to girls.
 Over 225984 children receive scholarships from Grameen Bank.

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Insurance Program
Families of Deceased
Borrowers of GB Received
Loan & Life Insurance
Benefit
Loan Insurance:
 Premium is 6% (3%for borrowers and 3% for
husband) of their loan outstanding.
 After death (single or both) entire loan and
interest will be written off.
 Premium is refundable in all cases.
 Up to Decembor,2015 a total of 3,75,864
borrowers died in GB and received a total
amount of (US$ 61.91 million).
Life Insurance:

No Premium required.
 Per deceased family receives Tk. 1,500.
 Up to Decembor,2015 a total of 1,77,379
borrowers died in GB and received a total
amount of (US$ 5.50 million).

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Move Out of Poverty and Stay Far Away From Poverty
More income for women & family
 Basic loan
 Micro enterprise loans for bigger investments
 Integration of IT & Communications for income generation and
knowledge
 Build assets to pay for the education and marriage of the children, to
enable them to create a large asset base, and pay for other long term
needs.
Prepare the future generation with education and knowledge so that the
families do not slip back into poverty
 Scholarships
 Higher Education loan
 Business loan for graduate students
Long Term Vision

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Received Nobel Peace Prize for 2006
Ms. Taslima Begum and Prof. Muhammad Yunus
Receiving Nobel Peace Award-2006 at City Hall Oslo.

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...Thank You