Micro Finance 5

8/3/2019 Micro Finance 5

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INTRODUCTION'Bangladesh is one of the world s most densely populated

150 , 49countries with million people percentof whom live below. the national poverty line NGO s in Bangladesh are seeking to

alleviate all those financial calamities through funding poor to lift

.up their livelihood from poverty level The government of.Bangladesh faces an enormous challenge in reducing poverty,However the government can not act alone as it can not

, ,command all the resources personnel administrative outreach.or expertise necessary to maintain progress in povertyalleviation

The MFIs have taken a key role in poverty alleviation effortsand they have been providing credit to these poor people who

-lack savings and capital but want jobs in the farm and non farm.sectors The banking sector in Bangladesh is dominated by the

- ,four state owned commercial banks known as nationalized( ),commercial banks NCBs which control approximately half of the

. ,assets within the banking system In addition there are five

, 30 ,governmentowned specialized banks domestic private banks 12 (2004)and foreign banks The specialized agricultural banks

and NCBs have been lending extensively to the rural area.but most of their lending is not targeted to the poor The

foreign banks and the private commercial banks have simply,stayed away from rural lending though there are a few cases

.of token involvement in microfinance in recent years The poorpeople do not get access to formal financial institutions because

. ,of lack of physical collateral The informalmoneylenders on the, ,other hand charge an exorbitant rate of interest thereby

inhibiting rural poor households from investing in productiveincome increasing activities Unlike

,other countries in the region Bangladesh does not have a

proper substructure of small banks operating at local level( . 1998).McGuire et al Against the backdrop of a

,relativelyundeveloped formal financial system a strong NGO.microfinance system has developed in Bangladesh These MFIs

-have been able to reach the poor with collateral free loans at-affordable costs and can thus help the poor become self

.employed The financial system also includes insurance, - .companies stock exchanges and co operative banks

, , These informal lenders however can only meet the occasionalfinancial services and they are not reliable sources of financial

. .service provision Bangladeshi MFIs are best known for their, - ,pioneering large scale provisionof microfinance services

- .principally tiny collateral free loans to poor women

, ,Among all the non government MFI s Grameen Bank ASA Bracand Proshika playsvitalrolein

. .povertyalleviationinBangladesh NotonlyhadtheNGOs the Govt , -specializedbanksuchlikethatBKB grassrootorganization suchasburo

,bangladesh private commercial bank like that pubali bank.alsoplay vital rolein the poverty alleviation of our country


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PROSHIKA The name PROSHIKA is a Bengali acronym made of initials of: ( ), ( )three words Proshikhan training Shiksa development and Kaj

( ). ,action It has been more than two decades since PROSHIKA , .now one of the largest NGOs in Bangladesh took its first step

The beneficiaries of PROSHIKA are men and women of the two. .,large sections of the rural population i e the landless laborers

. . , , ,and some rural professional groups e g fisher folk weavers .potters etc

objectives Structural poverty alleviation Environmental protection and regeneration

Improvement in women s status

;Increasing people s participation in public institutions and

Increasing people s capacity to intensify their incomethrough various ways

' ;Utilization of groups savings

Provision of matching credit from the Revolving Loan Fund( );RLF

Technical assistance through provision of skills and

, -management development training hands on technical, ;advice and support by technically competent workers and

Provision of marketing assistance where needed


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coverageear of Establishment 1976 rea Coverage

illages 24 ,211 Slums 2,110

( )Unions Rural 1,925

( )Wards Urban 328

Upazilas 234

Thanas 52

Districts 59 Area Development Centres 220

rimary group memberWomen 1,768,980 Men 1,042,877

Total 2,811,857Households 2,152,809

- 1,236,074Poverty free Households Beneficiaries 11,840,473

ROSHIKA S RURAL CREDIT RECORD( Tk in

)croreCalend

ar Year2003cumul

ative year2004 2005 2006 200

72008

2009

2010

Cumulative up

to june2010

Disbursement

2622.35 277.07

288.13

316.50

312 267 222 100 4405

Recovery 2409.06 350.61

330.70

343.09

298 284 360 122 4497.46

Beneficiaries6387577 4971

020076

15030

8209

6723

847 193 6488365

APPROACH


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'PROSHIKA innovated a holistic approach to credit called credit'. , ,plus plus In this system proper training technical assistance

marketing facilities as well as social and other development.services are provided along with credit

ther activities of proshika Universal Education

Financial Services Urban poor development program

-Employment and Income Generation through Micro credit

Women s Development Program

Environmental Protection and Regeneration

( )Peoples Cultural Program PCP

( )Disaster Management Program DMP

aving scheme ( ) :ROSHIKA Savings Scheme PSS The PSS has been

introduced on the basis of certain principles like security of, ,group savings life insurance risk coverage for damages

, , .caused by natural disasters accessibility etc The life andproperty risk coverage aspects of PSS are unique in

. 114,864Bangladesh The number of PSS groups presently is

Products and Services

Name o f area of activities Sub Products

1. People building Organization Core Program1. Proshika Micro credit

2. Skill Development Program3. Small Enterprise Development Program

4. Livestock Program5. Fisheries Development Program

6. Apiculture Development P rogram7. Sericulture Development Program

8. Organic Development Program

2. Micro Credit Savings

9. Imigration and Farm Product

1. Human Development Program2. Extended Social and Human DevelopmentProgram

3. External Training Development

3. Social and Natural Resources Program

4. External Training Division


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1.81 .while the number of members is million The savings. 1,854.02 .balance stands at Tk million The total compensation

paid from the PSS so far on account of death and damage is. 58.16 . Tk million

( ) :ROSHIKA Fixed Deposit Scheme PFDS PROSHIKA2005,introduced this new savings product in for the group.members who are interested in depositing their savings individually

This scheme is also very conducive to boosting poor people s.savings and the process of their capital formation

trength of PROSHIKA .PROSHIKA has quite a large number of strengths The most

:important ones are

A cadre of skillful and motivated staff both at the ADCs andthe headquarters who work earnestly and responsibly with a

( , ),team spirit MTR PRA Effective and comprehensive training system for both groups

( ),and staff PRA

( , ),Efficient and liberal RLF credit program PRA MTR

- ( , ),A strong organization building capacity PRA MTR

( ).Good program logistic support PRA

ONSTRAINT AND CHALLANGES Decline and dysfunctional of a number of primary groups

( , ),Group Review PRA


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-Non availability of loan to a large number of functional( , ),groups PRA PIAS

( ),Small average loan size PRA

- /Inadequate staff group contact due to shortage dropout of( ),staff PRA

, ,Existence of heterogeneity though in small proportion in( , ).groups MTR PIAS

Emphasizing more on CREDIT and leaving the social issuesbehind (Following a culture of credit as the only means of

.)poverty alleviation

High interest rates in relation to the other commercial.banks

The credit size is sometimes too small to go for sustainabledevelopment activities

,Serious financial irregularities and ambiguous audit report , .which is uncovered buy the Government

Introducing the projects according to the demand and.expectations of the donors

2001Engagement in highly sensitive political issue in

Directing all efforts towards of the reaching the poor visa,credit will exclude considerable numbers of the target group

- .not least among the hard core poor

uture direction1. ' . To awaken people s human and ethical values

2. To ensure the participation of poor villagers and to value.their thoughts and beliefs

3. To disprove the popular belief that poor villagers cannot use

sophisticated technology and to create skills among these.target people

4. To project the viewpoints of the villagers about social issues.and to insure their participation

5. To point out the reasons why the poor are deprived and.robbed of power

.6. To uphold the views of people who are alienated by the mass

.media7. To show that grassroots people are capable of expressing

.their feelings and their problems8. ' To raise people s consciousness by exchanging video

.programs among people of various regions9. To show the processes from which people conquer poverty

and to show the causes of poverty


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Buro bangladesh

:ackground1990,BURO Bangladesh has been operating since and is dedicated

.to the economic development of the poor in Bangladesh The, 1991beginnings of BURO Bangladesh have been difficult until when

- -it dedicated itself to micro finance with a well defined approach.and a new management The main challenges today are to

.consolidate and increase in independence

Missions: , , -An independent sustainable cost effective micro finance,institution that provides diverse appropriate and market responsive

quality financial and business development services at competitive

,prices along with other social development programs to very poor - .poor and vulnerable non poor customers

Visions,A happy prosperous and pluralistic democratic society that meets

.the basic needs of the people in Bangladesh

roduct and service

Loan product

Savings Products

Micro Insurance Products

Remittance Delivery Channel

oan product:GENERAL LOAN The loan is intended to allow rural and urban poor

households to finance their economic activities and build a strong.capital base General Loans are working capital loans given to poor

.and disadvantaged households General Loans range fromBDT5,000to 45,000DT , ,depending on the economic activity The loansare repayable within a year in 46 installmentsat an annualinterest rate of15 .ercent

-Micro enterprise Loan

-Micro enterprise Loans are individual loans that are assessed on,the basis of household cash flow business projections and the

/ /reputation of the borrower amongst her his business peers in the. -community Micro enterprise loans range between 50,000-BDT BDT


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300,000, -repayable within one three years in 46-138 in stallments atan annual interest rate of 15 .percent

Agricultural loan

Theloan is exclusively for agricultural activities and is designed to

increase the farm activities enhancing the livelihood of the poor- .rural and peri urban households The agricultural loan also.enhances food security of the households The loans are disbursed

.to landless and marginal farmers in organized groups Agriculturalloans of 10,000BDT 50,000 ,BDT are given for one year depending

, - .,on the activity land holding etc repayable in 46 installmentswith15 .an annual interest rate of percent

Hand loan The hand loan is designed to protect customers from shocks to

,their household economies and the erosion of their financial .physical and social assets Hand loans are used to finance

( , , , .),important festivals Eid Puja Christmas marriages etc health care

.and child education The hand loan is a small loan of 3,000,BDT repayable within 3 monthsat an annual interest rate of 15 .percent

Disaster loanIn extreme ,emergencies such as cyclone and floods BURO

Bangladesh provides disaster relief with support from leading donor. , - -agencies However instead of offering large scale or long term

,charitable activities the organization places emphasis on the- - -promotion of self help and self reliance of disaster affected rural

,communities encouraging and helping households to stand on their.own feet The disaster loan ranges from 3,000 5,000BDT BDT with

an interest rate of 10 percent to be repaid over .one year

Water and sanitation loan

The sanitary loan is offered to customers seeking to install sanitary. -latrines in their homesteads Both the sanitary and tube well loans

range from 3,000 10,000BDT BDT repayable within a year with aninterest rate of 15 .percent

aving product GENERAL SAVINGS: The general savings account is like a

,current account where customers can save or withdraw on.demand The general savings account requires a nominal

10.minimum balance of BDT Compounded interest at the rateof 4.5 percent per annumof their general savings account

.balance


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Regular voluntary saving,Poor people do this for social obligations such as marriages funeral

.or children s education The savings account offers the following:advantages to the customers

deposit on a weekly or monthly basis

10 250;weekly savings range BDT BDT and monthly savings40 1,000.range BDT BDT

Interest is paid on a compound basis in the range of 7 8to .percent

Time saving

,In some occasions the customers earn lump sum amount at. ,a time from business or sales Under the circumstances the

organization allows such customers to deposit a maximum ofamount of 5,000BDT in this account for varying period withinterest rate within the range of 6% 8%.to

Micro insurance product Customers security fund has been promoted with two

. ,objectives viz the social objective and the commercial.objective

- & The poor and micro entrepreneurs and small marginal( )farmers vulnerable poor customers have to pay premium

of 50 200,BDT to BDT while the very poor customers arerequired to pay 30.BDT

Non financial services

BURO B -angladesh provides a modicum of non financial( ),services that includes business development services BDS

, ,food security human resource development disaster, ,management operation research providing technical

, , .assistance to MFIs and rural water supply among othersBURO Customers

/ :VERY POOR EXTREME POOR

10owning less than decimals of land 6,000annual income equal to or less than BDT 18-60age limit between years

:MODERATE POOR

0.50owning less than acres of land 18,000annual income equal to or less than BDT 18-60age limit between years

& :MICRO ENTREPRENEURS AND SMALL MARGINAL FARMERS 0.50owning more than acres of land


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18,000 60,000annual income in the range of BDT BDT 18-60age limit between years

-redit record of buro bangladeshCalendaryear 2003 2004 2005 2006 2007 2008 2009 2010 Cumulatie up to2010Disbursement 384.43 152.80 236.84 318.03 375.16 590.58 813.96 517.95 3389.75Recovery

278.04

132.5

2

196. 277.45 337.27 465.26 728.50 463.68 2470.53

.o ofbeneficiaries

61769

3

2213

66

273286 33132

9

37671

0

60227

3

746938 87371

5

4043310

ustainable Approach BURO Bangladesh considers sustainability of lending operation

, ,is its ability to cover the cost of administration loan losses ,savings account interest and cost of other capital from funds

generated through receipts from interest charges and other

. ,fees Profitability remains to be tested in many countries butremarkable examples have been set by some lending.operations that break even or overcome that point BURO

Bangladesh firmly believes this and has already demonstrated.that it is feasible in Bangladesh Its sustainable approach is

:based on the following

Developing an appropriate quality financial service delivery

:methodology Virtually all programs that come close to break,even use special savings and credit techniques adopted from

.the informal sector

: ,

Full cost pricing From the outset institutions should charge a.rate that will ultimately support a viable lending operation

7-10Loans to informal sector will require interest rates at least .percent higher than the standard commercial rates This

informal sector can afford such rates.

Future direction


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More Expansion of Micro Finance

BURO Bangladesh was originally conceived asa demonstration model, with the

intentionof achieving sustainability providing a range ofhigh quality financial services.Ithas initiated anexpansion program and it plans to raise thecustomers from current level

of 985,182 to1,500,000 in 2011.

Going Extensive Automation

The organization is contemplating automation of its branches by 2014. In thiscontext,

steps have already been taken.Currently 75 branches have full automation. In

2011, a total of 250 branches will be underautomation.

Strengthening Micro-enterprise (ME) Support

BURO Bangladesh is currently financing MEclients in a limited way. It believes that ME

is anarea where more investment should beforthcoming as this has good potentialforemployment and income generation. Theorganization will prioritise creating

employmentopportunities in the rural areas in nonconventionalbusinesses. The

organization hasdecided to launch a massive micro-enterpriseprogram in 2011 throughbank financing forincreased rural employment generation.

angladesh krishi bank


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( ) 100%Bangladesh Krishi Bank BKB is a government owned

. .specialized Bank in Bangladesh KRISHI means Agriculture Since its

, .inception BKB is financing in agricultural sector remarkably BKB

.also performs commercial banking People working abroad can.easily send money home through our Taka Drawing Arrangement

" ". The major occupation of the people of Bangladesh is Krishi Krishi

" ". 85%is a Bengali word which means Agriculture About of the

population depends directly or indirectly on agriculture which

.contributes a significant portion BKB has been established under

1973 ( ' 27the Bangladesh Krishi Bank order President s Order No of

1973). -BKB is a Banking Company under the Banking Company Act

1991. , 83-85Its Head Office is located at Krishi Bank Bhaban

, -1000, .Motijheel Commercial Area Dhaka Bangladesh The Bank is

guided in accordance with the policies and principles of the

.Government of the Peoples Republic of Bangladesh It is the

,successor to the former Agricultural Development Bank of Pakistan

1961which was established in through merging the Agricultural

( 1952)Development F inance Corporation established and t he

( 1957) .Agricultural Bank of Pakistan established into one institution

BKB provides credit facilities to individual and corporate bodies

, , .engaged in crop production horticulture forestry and fisheries It-also offers financial and technical assistance to agro based and

.cottage industries It is the successor to the former Agricultural

1961Development Bank of Pakistan which was established in

through merging the Agricultural Development Finance Corporation

( 1952) (established and the Agricultural Bank of Pakistan established

1957) . ,into one institution Initially the authorized capital of the bank

500 370 ,was Tk million and its paid up capital was Tk million

. ,subscribed fully by the government Later in view of the increased

,volume of banking activities and business the authorized and paid

2 1up capital of the bank were raised to Tk billion and Tk billion

.respectively

BKB provides credit facilities to individual and corporate bodies

, , .engaged in crop production horticulture forestry and fisheries It

-also offers financial and technical assistance to agro based and


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.cottage industries Its charter requires the bank to act on

commercial considerations but with due regard to the development

-of agriculture and agro based and other related industries in rural

. ,and urban areas Under the provisions of its charter BKB is

supposed to give preference to the credit needs of small farmers. , ,and other disadvantaged groups BKB therefore has to fulfill both

. ,social and economic objectives Being a scheduled bank it also

,receives deposits in various accounts performs foreign exchange

.business

bjectives of Bangladesh Krishi Bank- These diversified micro credit programs are being implemented by

:BKB to achieve the following objectives

To create employment opportunities through income

.generating activities

. To empower the rural women to establish their own rights

. To improve the living standard of the rural people

. To alleviate poverty of the poor people

To make easy access to institutional credit facilities and

resources

wnership Structure . 15,000BKB has an authorized capital of Tk Milliononly and

.9000paid up capital of Tk Milliononly which is fully paid by. 60% . 40%the government share in the hand of govt and in the

.hand of the private

. 15,000BKB has an authorized capital of Tk Milliononly and

.9000paid up capital of Tk Milliononly which is fully paid by


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. 60% . 40%the government share in the hand of govt and in the

.hand of the private

ranches and coverage 952 The Bank operates its function through its branches

( ) 822 130except Rajshahi Division of which are rural and are

, 15 . 8 , 21urban foreign exchange branches Divisional Chief

30Regional and Regional officesfor close supervision of the

.branch activities

ources of Fund , 500Initially the authorized capital of the bank was Tk million

370 ,and its paid up capital was Tk million subscribed fully by

. ,the government Later in view of the increased volume of

,banking activities and business the authorized and paid up

2 1capital of the bank were raised to Tk billion and Tk billion

respectively

erformance Trend . : 'No of employment The existing strength of Bank s manpower

10275 13680is against the approved strength of 31as on

, 2009.March

:Employment Nature The field workers are sometimes will be

in the temporary nature and the official staffs will be in

.permanent in nature But the tendency of fieldwork is

.relatively smaller than the official staffs

:unctions Products and Services :Deposit Scheme

/Current Deposit A C

/Short Savings Bank A C


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/Fixed Deposit Receipt A C

/ Time Deposit A C

Education Savings Scheme

( ) Term Deposit STD

:redit Services Crop Fisheries Live Stock &Farm Irrigation Equipment

-Agro based Industries Product SME Continuous Loan Micro

credit Others

Import finance

Export finance

Foreign Remittance

. . . .S W I F T

Dealing room

ethod of credit

ethod of credit

rograms under poverty alleviation is given below: Credit program for the landless and Marginal Farmers

Beef fattening Joint Program

Name of the credit Methodology

Credit for the landless andMarginalFarmers

Launching1991 -1992.

Persons/ Peasants having not more than

1.50 acres of cultivable land and annualincome of highest Tk 25000/ - are eligible.

Needed to formthe group. No Collateral.

Need aguarantor. Int. rate is 10%installments no. is 52

weekly.

Beef fatteningJoint Program Launching in 1994. Loan amount Tk.25000 for 5 calves. Need guarantee of l ocal elite or bank

official Int. rate is 10%to be repaid in 1

installment within 1 year.

BKB -NGOMicroCredit Program Programfor women employment creation. Providing training and recommendation. A collateral free credit. Interest rate is 12.5%.


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Swanirvar Credit Program

SFDP

South Asia Poverty Alleviation Program

United Nations Capital Development Fund

Rural Women Employment Creation Project ADB loan

-BKB NGO Micro Credit Program

Credit Under National Poverty Alleviation Program through

Goat Rearing

/Current Deposit A C

( )Short Term Deposit STD

/Savings Bank A C

/Fixed Deposit Receipt A C

/ Time Deposit A C

Education Savings Scheme

ME financing by Bangladesh Krishi Bank Bangladesh Krishi Bank has recently introduced the SME

policy strategies and financing norms in accordance with the

2005 'industrial policy and Bangladesh Bank s PrudentialRegulation to assist in the achievement of Millennium

( ) .Development Goals MDGs set by the government BKB

, 2007.started SME financing since October

:Interest Rate

: 12.50%Small Enterprises

: 12.50%Medium Enterprises

: 13.00%Working Capital

:Repayment

( ) 5( )EMI equal monthly installment maximum for five years and

1( )working capital for one year.ending model

BKB follows overty Lending Approach in case of providing.microcredit to the poor


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angladesh krishi bank s rural credit record

( ) Tk in crore

Cumulativ

e

up to

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09 FY

2009-

10

Cumulat

up to Ju

2010

Disbursemen

t

914.22 68.16 58.86 57.02 54.51 53.43 47.82 98.49 1352.5

Recovery 781.62 46.6 37.27 43.24 51.84 51.46 45.56 76.02 1133.6

.No of

beneficiaries

1474918 60987 59117 50083 52028 47761 49356 35044 182929

ecovery rateIn the maximum case it is shown that for the lack of strong

administration the general borrowers specially the villagers start a

.new loan without repaying the original loan itself The rate of

60% 70%.recovery is only to

trength of BKB ,For smooth operation s a part of internal control and

, 56compliance system the bank has also field level audit

5 51 .offices of which at Divisional and at Regional levels The

' 10275existing strength of Bank s manpower is against the

13680 31 ,2009approved strength of as on March


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onstraint and challanges :More default probability of loan The incentive system for the

,banks stressed disbursements rather than recoveries and theaccounting and debt collection systems were inadequate to

.deal with the problems of loan recovery It became more

common for borrowers to default on loans than to repay

.them

:Rate of repayment is slow In the maximum case it is shown

that for the lack of strong administration the general

borrowers specially the villagers start a new loan without

.repaying the original loan itself : Technological Backward In some context BKB lacks the

technological development as compared to the various Private

. .Financial Institutions As a Govt Financial institute BKB has

.some bureaucratic problems to incur

.ubali Bank Ltd


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PUBALI BANK LIMITED is the largest Commercial Bank in Private.

Sector in Bangladesh It provides mass banking services to the

.customers through its branch network all over the country This- ,Bank has been playing a vital role in socio economic industrial and

agricultural development as well as in the overall economic.development of the country

.Pubali Bank Ltd has inaugurated its Islamic Banking Window in,Principal Branch Dhaka with a view to providing Islamic banking

.services in the basis of lslamic shariah Pubali Bank Limited provides.commercial banking services in Bangladesh

HISTORY The Bank was initially emerged in the Banking scenario of the then

East Pakistan as Eastern Mercantile Bank Limited at the initiative of1959some Bangalee enterpreneurs in the year under Bank

1913 . 1972Companies Act After independence of Bangladesh in thisBank was nationalised as per policy of the Government and

.renamed as Pubali Bank Subsequently due to changed1983circumstances this Bank was denationalised in the year as a

.private bank and renamed as Pubali Bank Limited The Government'of the People s Republic of Bangladesh handed over all assets and

.liabilities of the then Pubali Bank to the Pubali Bank Limited Sincethen Pubali Bank Limited has been rendering all sorts ofCommercial Banking services as the largest bank in private sectorthrough its branch network all over the country

rach Network,Among the private banks Pubali Bank has the most extensive. 400network all over the country It has branches in total

connecting all economic growth centers and commercially promising.localities of the country As the first local bank of the country PBL

is effectively serving the nation since its very inception and it s stillcarrying out the responsibility very efficiently


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Vision of Pubali Bank Ltd

To excel as best private commercial Bank in Bangladesh with meticulous

observance of rules and regulations and commitment to corporate social

responsibility.

Mission of Pubali Bank Ltd

(A) To get recognition as a dynamic, innovative and customer supportive

Bank.(B) To maintain continuous & steady growth with utmost transparency

and to diversifydevelopment of resources.(C) To enhance

continuous development of information & technology to meet thedemand

and challenges of the time.

Products & Services :Pubali Bank limitedprovides all banking services to the people as a

.commercial bank In a nut shell PBLprovides the following:

Deposit Service

&Loan Advances

Remittances

Miscellaneous

eposit ServicesSavings Bank Account

Fixed Deposit AccountCurrent AccountPension AccountForegin Currncy Account

. Savings and current accounts are very common for all commercial.banks Fixed deposit account is naturally targeted to idle money of

.elderly people Pubali Bank limited provides handsome interest to.the account holders in return

.Short term account is another version of fixed deposit account People who like to keep the money for a shorter period and earnsome interest are addressed here with a better than savings

.account but less than fixed deposits interestPension account delivers a monthly earning to the senior people of

the society against a cumulative easy deposit made by them on a. .regular basis So it s a very appreciable step of Pubali Bank


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Foreign currency account is for a section of people who areworking abroad and earning valuable foreign currency for the

.country More over the foreigners who are working here are also.entitled for the type of account

.

.

&oans Lease ServicesMicro CreditSmall and Medium Enterprise Financing

Industrial LoansWorking Capital Financing

Export CreditImport Credit

Bills PurchaseLetter of CreditLetter of Guarantee

Lease FinancingTransport FinancingConsumers Loan Scheme

House Building Loan

- emittance Services( ,Remmitance of Fund from abroad by Bangladeshi Nationals Foreign

, )Remittance Internal Remittance-Miscellaneous Services( , , , ,Electric Bill Gas Bill Phone Bill Cheque Clearing Instrument

, , ,Collection Locker Services ATM Services Card

iscellaneous ServicesPubali Bank limited provides miscellaneous services like collection

, , ,of utility bills clearing of checks Instrument collection Lockerservice and ATM card services to its valued customers

LEASE FINANCING :Pubali Bank Limited has been extending lease finance to the right persons and firms.

The customers are required to provide details information, papers on the project.After proper appraisal / evaluation , if found suitable, the Bank draws terms and

conditions of the lease.

JOINT VENTURE FINANCING :

As per Govt. Investment Policy, Pubali Bank Limited extends Joint Venture Financingin the Private Sectors as per credit norms. PROJECT / TERM LOAN Pubali Bank

Limited allows Term Loans to the individual / firm / industries for a specific purposeand for a definite period under the following categories. The loan is repayable by

installments as per terms decided upon.


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1. Short Term Loan for small and cottage industries.2. Medium Term Loan for Medium Scale Industries.

3. Long Term Loan for Large Scale Industries.

HOUSE BUILDING / APARTMENT LOAN SCHEME :

Pubali Bank Limited extends credit facilities to individuals, entrepreneurs for

construction of residential or commercial house or buildings. The loan is repayable bymonthly installment with a specific period ( not more than 15 years ). Pubali BankLimited also allows loan to its employees for purchase / construction of house under

Staff House Building Loan Scheme.

THRUST SECTOR FINANCING :

Pubali Bank Limited has already taken some positive initiative to finance in the

Thrust Sectors. For this purpose it has invested a good amount of fund in thedevelopment of Cement Manufacturing, Composite Textiles, Spinning Mills, Knitting

Garments Industries and other small and medium enterprises. To boost up the

national economy the Bank has taken keen interest to finance in the following thrustsectors.

1. Agro-based Industries - local fruit, potato preservation and processing.

2. Computer Software and Information Technology.3. Electronics.

enterprises. To boost up the national economy the Bank has taken keen interest tofinance in the following thrust sectors.

1. Agro-based Industries - local fruit, potato preservation and processing.

2. Computer Software and Information Technology.3. Electronics.

CONSORTIUM LENDING :Pubali Bank Limited is coming forward as a Lead Bank for financing in consortiumlending strategy. Under this lending scheme two or more banks are invited to finance

big projects with Pubali Bank Limited acting as Lead Bank.

READY-MADE GARMENT ,

READY-MADE GARMENT , AGRO-PROCESSING & IT SECTORS :Pubali Bank Limited extends credit facility to the garment sector as a special case. It

is also giving special emphasis to agro-processing and Information Technologyrelated financing.

CONSUMERS' LOAN SCHEME :Pubali Bank Limited has introduced Consumer Loan Scheme in order to provide

financial assistance to the fixed income earners of the society to uplift their standardof living by acquiring domestic durable goods like Freeze, Television, Computer,

Motor Car, Furniture etc.

Eligibility of the Consumers under this scheme.

A person having confirmed / permanent job in one of the following organizations and


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age between 20 to 50 years are eligible for availing of the credit facility under thisscheme.

1. Government / Semi-Government / Autonomous Bodies.

2. Bank / Insurance / Financial Institutions.3. Armed Forces, B.D.R., Police and Ansars.

4. Private Organizations.5. Teachers of Universities / Colleges / Schools.6. Self-employed persons/businessmen

Eligible Items / Articles under this scheme.

1. Car, Motor Cycle, Micro-Bus.

2. Refrigerator, Deep Freeze.3. Television, VCR, VCP.

4. Radio, Two-in-One, Three-in-One.5. Air-cooler, Air-Conditioner, Water Cooler, Water Pump.

6. Personal Computer, Type writer, Camera, Movie-Camera.

7. Washing Machine.8. Furniture.

Strength:

(a) Good management.(b) Cooperation with each other.(c) Usage of faster pc bank

software.(d) Membership of SWIFT.(e) Good banker-customer relationship.(f) Online

Banking services.(g) Strong financial position.(h) Strong position of CAMEL rating.(i)

Huge business area.(j) Excellent monitoring and supervision.(k) Energetic as well as

smart teamwork.

Constraint and challenges

(a)Lack of proper motivation, training and job rotation.(b)Lack of experience employees

in junior level management.(c)Lack of own ATM services.(d)Tendency to leave the bank

in quest of flexible environment

ural credit recordNumber of benificiaries Rate of

(%recovery)

Disbursemen't up to June

10(cumulative)( ) Tk in crore

female male total

40602 248 40850 100 86.05


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Conclusions.Reduction of poverty has remained the prominent national goal

Involvement of the banks and NGOs in that pursuit is thought to be

.important in many regards

Over the years they have developed a wide network of operations

through which they can deliver a wider range of financial services

.to people who need the service more Their involvement can

.enhance the quality and effectiveness of the services as well

The bottom line people of the society will require finance for

, ,cultivation of their lands purchasing livestock for starting smallnew business or cottage industries or for expanding the business

.one has One may need credit to educate his children or for other

.thousand of reasons that of course help to reduce their poverty

.Many will go to banks and NGOs for meeting their demand Thus

the banks and NGOs have to evolve some easier and simpler

methods to deliver the services to the poorer section so that they

do not feel harassed or uncomfortable

in dealing with the much needed financial recourse for bettering

.their future

Table of ContentsSL.

NO.

Topic Page No.

01 Introduction 1

02 Proshika,its objectives 2

03 Coverage,rural credit record 3


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04 Approach, proshikas activities 4

05 Saving scheme, strength of proshika 5

06 Constraint and challenges, future direction 6

07 Background ,mission,vision,product and services 7

08 Loan product, saving product

09 Tools for Risk Measurement 16

10 Risks Involved in Stock Market

11 Stock Market Risk Management 17

12 Benefits of Stock Market Risk Management 19

13 Portfolio Risk Management 22

14 Forecasting Stock Market Equity Risk 25

15 Strategies for Stock Market Risk Management 27

16 Stock Market Risk Management Methods

17 An overview of Stock Market in Bangladesh

18 Stock Market Crash in Bangladesh

19 Steps taken to stabilize the current situation of Stock Market in

Bangladesh

20 References 28

Micro Finance 5

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Transcript of Micro Finance 5