“Leading the poor out of poverty towards an empowered and dignified life.”

GROUP DName ID NOMd. Abu Sayed

151003506Md. Abdullah al mamun

151003606Md. Zakir Hossain

151003406Sourav Barua 151004606Mohammad Saiduzzaman Sabuj

143002906Md. Atiqul Islam 152001106

• Grameen bank is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as microcredit or "grameen credit” to the impoverished without requiring collateral.

• One of the first micro-lending institutions

• 94% owned by the poor, 6% government

• Initially capital was Tk 100 million and paid-up capital was Tk. 30 million.

• At present the capital is Tk. 3,500 million and paid up capital is Tk. 547.69 million

Background

Muhammad YunusFounder, Grameen Bank

HistoryGrameen Bank ,village of Jobra, Bangladesh, in 1976. The project was transformed into a independent bank on October 2, 1983 In 2006, won Nobel Peace PrizeMore recently, Grameen has started bond sales as a source of finance.

Objective: To promote financial independence among the poor

Encourages all borrowers to eventually become savers

The bank also set a new goal: Making each of its branches free of poverty, as defined by benchmarks such as having adequate food and access to clean water and latrines

Objective & Goal

Grameen Bank vs Conventional Banks ๏ To bring economic and

social change to the poor.๏ Based on trust๏ Looks at what the borrower

can have๏ Located in rural areas๏ The bank goes to the

customer๏ Flexible payment scheme๏ Most owners and

borrowers are poor women๏ Loans are for productive

activity, not consumption

๏ To make profit๏ Based on collateral๏ Looks at what the borrower

already has๏ Located in urban areas๏ Customers have to go to

the bank๏ Strict payment scheme๏ Most owners and borrowers

are wealthy men๏ Loans could be used for

consumption or other activities

Is grameen Bank different?

Key elements of rural developmentPoverty alleviation and raising the living

standards of the rural poor;Equitable distribution of income and

wealth;Wider employment opportunities; Participation of the local people in planning, decision-making, implementation process, benefit sharing, evaluation of rural development

programme,

Micro Credit Strategy

Objective: To promote financial independence among the poor.Loans offer the people the opportunity to take initiatives in business and agriculture Offered credit to many poor, women, illiterate and unemployed people. Access to credit on reasonable terms such as the group of lending system and weekly installment payment Charity is not the answer to poverty Encourages all borrowers to become savers

Micro Credit Strategy Known for “Solidarity Lending”

Each borrower should belong to a 5 member group

Not required to give any guarantee for a loan to its members

No form of joint liability Incorporates a set of values embodied in Bangladesh by Sixteen decisions High Payback rates- over 98% More than half of its borrowers in Bangladesh (close to 50M) have risen out of acute poverty As of 2011, 83M borrowers, 97% women

Why Women?

Women in Bangladesh are neglected by society They want to empower women through opportunity of self employment and the access to money Studies show that women are more likely to use their earnings to improve their living situations and to educate their children

Higher repayment rates

Poor entrepreneurs know that microfinance is a tool to elevate them from poverty that’s why most of them are focused in repaying their debts

95% to 98% Repayment Rate

Micro Credit Programs

Women entrepreneur can start a business providing wireless payphone service in rural areas In Bangladesh

Village Phone Programs

Micro Credit Programs

Distributing small loans to beggars New programs targeted to beggars Interest free and long payment terms

Struggling Members Program

Exclusive focus on the poorest of the poor Borrowers organised into small homogeneous

groups Special loan conditionalities suited for the

poor Simultaneous undertaking of social

development agendaDesign and development of organization and

management systemsExpansion of loan portfolio to meet the needs

of the poor

Credit delivery system

1. principles – discipline, unity, courage and hard work

2. Prosperity to the family3. Repair/construct own shelter4. Plant vegetables 5. Plant many seedlings during planting

season6. Responsible parenthood 7. Self-support – child education

16 Decisions

8. Clean environment9. Pit latrines 10.Potable drinking water 11.No to dowry and child marriage 12.No to violence and abuse 13.Collective business undertakings 14.Helping one another 15.Restore discipline 16.Collective social activities

16 Decisions

Grameen Bank does not own any share of the following companies in the Grameen network. Nor has it given any loan or received any loan from any of these companies.

1) Grameen Phone Ltd.2) Grameen Telecom3) Grameen Communications4) Grameen Cybernet Ltd.5) Grameen Software Ltd.6) Grameen IT Park

Grameen network

Gross Loan Portfolio USD, 2013: 1.1 billionNumber of Employee 22,149Average loan balance per borrower USD,

2013: 162.0Deposits USD, 2013: 1.9 billionAssets USD, 2013: 2.2 billionTotal number of borrowers is 7.06 million,

97 per cent of them are women.Loan recovery rate is 98.28 per centGrameen Bank has 2,422 branches. It works

in 78,101 villages. Total staff is 22,924

CURRENT STATUS

50-60 Centres per Branch

7.21 million borrowers

Each Centremade up of8 Group of 5 borrowers

each

Head Office

18 Zonal Office

123 Area Office

Organization Structure

Internal system

Financial information

Revenue and Expenditure 1. Total revenue generated by Grameen Bank in 2006

was Tk 9.43 billion2. Total expenditure was Tk 8.03 billion 3. Interest payment on deposits of Tk 3.47 billion4. Expenditure on salary, allowances, pension benefits

amounted to Tk 2.03 billion5. Grameen Bank made a profit of Tk 1398 million in

2006. There are four interest rates for loans from

Grameen Bank : 6. 20% (declining basis) for income generating loans, 8%

for housing loans, 5% for student loans, and 0% (interest-free) loans for Struggling Members (beggars).

7. Deposit Rates Minimum interest offered is 8.5 per cent. Maximum rate is 12 per cent.

Rapid growth

Key Information of Grameen BankSl.No. Particulars 1995 2001 2002 2003 2004 2005 2006 2007

1 GB's Profit 15 59 60 358 422 1000 1398 1072 GB's Deposit 3809 7089 8952 13307 20718 31771 44342 520783 GB's Outstanding 11852 12438 12633 16017 20008 28109 33259 36337

4 Deposit as % of Outstanding Loan 32% 57% 71% 83% 104% 113% 133% 143%

5 GB's Borrowings from Banks and other Institutions 8503 9781 6978 4213 2896 1917 1855 1793

6 % of Profit Earning Branches :

6.1 More than one year old branches 55% 29% 37% 58% 70% 96% 80% 61%

6.2 Less than one year old branches 0% 0% 29% 31% 33% 34% 31%

7 Total Disbursement for the year 13664 61461 23436 21467 25874 39183 49872 50430

8 Cumulative Disbursement 53632 146538 169974 191440 217314 256497 306369 356798

9 Members (Million) 2.07 2.38 2.48 3.12 4.06 5.58 6.91 7.41

10 No. of Villages covered 35,533 40,477 41,636 43,681 48,472 59,912 74462 80678

11 Employees 12,420 11,841 11,709 11,855 13,049 16,142 20885 2528312 No. of Branches 1055 1173 1178 1195 1358 1735 2319 2481

5 Years Financial DataParticulars 2009 2010 2011 2012 2013

Total Income: 14,497 17,742 21,325 25,050 27,214

Expenses :

Salaries & Other Related Expenses

3,823 4,639 5,005 5,173 5,617

Interest Expenses 7,068 9,228 10,638 12,005 13,634

Other Expenses 1,806 2,165 2,120 2,224 2,518

Provision Expenses 1,428 953 2,878 4,193 4,112

Total Expenses: 14,125 16,985 20,641 23,595 25,881

Net Profit 372 757 684 1,455 1,333

5 Years Financial Data (Cont…)Particulars 2009 2010 2011 2012 2013Authorised Capital 3,500 3,500 3,500 3,500 10,000 Own Fund : Paid-up Capital 524 548 571 598 734

Capital and Other Reserve 6,219 6,815 7,301 8,542 9,660

Miscellaneous 3,956 4,184 4,709 5,238 5,817 Total Equity & Liabilites: 10,690 11,547 12,581 14,378 16,211

Deposits 83,331 105,023 117,516 131,273 148,546 Other Sources of Fund 7,306 7,238 8,817 11,836 12,776

Borrowings 1,669 1,589 1,527 1,465 1,403 Total Assets: 103,005 125,397 140,441 158,952 178,936

Assets : Loan and Advances (Before

Provision) 56,359 68,418 77,639 83,132 87,707

Investment 37,751 47,757 52,613 267 267

Cash and Bank Balance 1,296 1,312 1,710 65,724 78,870

Fixed Assets 1,334 1,488 1,490 1,481 1,510 Other Assets 6,265 6,422 6,989 8,348 10,582 Total Assets: 103,005 125,397 140,441 158,952 178,936 Own Fund as Percentage of Loan & Advances 19% 17% 16% 17% 18%

Own Fund and Deposits as Percentage of Loan & Advances 167% 170% 168% 175% 188%

5 Years Financial Data (Cont…)Provision Balance

5,692

5,399

7,267

8,607

9,537

Bad Debt 1,528

1,222

986

1,476

3,181

Bad Debt Recovery 671

580

395

312

389

Accumulated Disbursement

498,311

594,461

703,000

821,609

947,635

Number of Employees 23,283

22,255

22,128

22,261

21,851

Number of Members 7,970,616 8,340,623 8,372,081 8,373,893 8,543,977

Number of Centres 144,106

144,619

144,095

143,061

143,057

Number of Villages 83,458

81,376

81,380

81,386

81,389

Number of Branches 2,562

2,565

2,565

2,567

2,567

AchievementFIVE-STARS OF ACHIEVEMENT 1. 100% repayment record 2. earns profit 3. self-sufficient (more deposits than

loans) 4. 100% Grameen borrowers’ children

in-school or completed primary school

5. GB borrowers cross-over poverty line

AWARDS AND RECOGNITION

1)1989 Aga Khan Award for Architecture

2)1993 King Baudouin International Development Prize

3)1994 Bangladesh Independence Day Award

4)1994 Tun Abdul Razak Award 5)1997 World Habitat Award 6)2000 Gandhi Peace Prize 7)2004 Petersberg Prize 8) 2006 Nobel Peace Prize