Grameen Bank in Bangladesh

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 M!T"#$%. All the and informative enough. or!s presented here is done ith utmost sincerely and honesty. We have tried our level best to ma!e this report holistic

Wor!ing

ith such an interesting assignment has given us the opportunity to

achieve "no ledge and e#perience on !rameen &an' in &angladesh . We are al ays available for any further $uarries regarding this Term paper .

%ours truly,

ACKNOWLEDGEMENT

We ac!no ledge our heartiest due to our honorable course instructor &Mr. .. Lecturer, Department of Management Studies, 'niversity of Dha!a for giving us the opportunity to carry out this term paper. (is valuable advice and guideline helped us a lot in preparing this term paper successfully. )ther ise the tas! of preparing this term paper ould have been harder in our part. )ur academic career has profited greatly by doing this assignment... At first e ould li!e to remember the almighty Allah for blessing us ith the

strength, ability and patience to do this tas!. During the period of preparing the term paper on &*rameen ban! in +angladesh, e had gained altruistic assistance from number of persons. -f - do not mention their name, this letter of ac!no ledgement than!ful to them. )n the list first comes Ahtesham 'ddin Ahmed, .rinciple officer of -nternational Department of *rameen ban!... (e tried regarding the doing report. Then number of senior brother / sister really sho ing their highest degree of temperament. -n fact, it is very hard to articulate ho a cordial care and favor. We that can0t e#press in minute e spent there. ords and much cordially e ere received and hat or!ed hard there and spent their ith his level best to solve the problems ould not be complete .We are

valuable time to provide us plenty of information .- am than!ful to them for

ere so drenched

ith their affability and hospitality

e felt cent percent abode1homely in every

()ecuti*e Summary

*rameen +an! 2*+3 has reversed conventional ban!ing practice by removing the need for collateral and created a ban!ing system based on mutual trust, accountability, participation and creativity. *+ provides credit to the poorest of the poor in rural +angladesh, This .ro4ect as born in the village of 5obra, +angladesh, in 6789. -n 67:; it passed for its creation. as

transformed into a formal ban! under a special la

And the founder of the ban! .rofessor Muhammad Page %unus has been +hapter Dr. ,ne re arded so
Introduction. # ith the &<obel .eace .ri=e, in >??9 for this great contribution. (e do )b4ectives the Study.. because his approach to of ban!ing reinforces the ne > liberal vie

that

Cield the study> individual behavior is the of source of poverty and the ne liberal agenda of of data collection.; restricting state aid Sources to the most vulnerable hen and here the need for Besearch MethodologyE

government assistance is most acute. Limitations of the Study.5 The main activity of *rameen ban! is to provide the microcredit loan to the

ChapterTwo loan 2Such as <o @ollateral, poor members. -t gives some facilities in giving
,*er*ie- of !rameen ban' in &angladesh... <o Legal -nstrument, <o *roupA*uarantee or 5oint Liability is needed, Lo

-nterest Bates, , .ension Cund for +orro ers etc3.

(istory of *rameen +an!.9 Why *rameen +an!..8 .rograms and characteristics of *+8

-n other side it also provides many facilities for them in giving 2(ousing for the .oor, Scholarship for the students, Micro savings for the Members, Micro Method of Action.. >6 insurance Cacilities3 etc. Delivery system..>> @redit
+rea!ing the Farious through Microcredit. >9

Today *rameen +an! gives loans to nearly 8.? million poor peoples, 7:D of @ontribution in *D... >: hom are
.erformance -ndicators / Batio Analysis.. >: omen, in 8;??? villagers in +angladesh. Monthly 'pdates >: The 69 decisions... >7 *rievances Besearch and Analysis;E

Table of +ontent

@onclusions or Becommendations. ;9

+hapter" Three
Appended Part/0 +ibliography ;: Appendi#. E6

*rameen +an! 2*+3 has reversed conventional ban!ing practice by removing the need for collateral and created a ban!ing system based on mutual trust, accountability, participation and creativity. *+ provides credit to the poorest of the poor in rural +angladesh, effective ithout any collateral. At *+, credit is a cost ho have been !ept eapon to fight poverty and it serves as a catalyst in the over all

development of socioAeconomic conditions of the poor

outside the ban!ing orbit on the ground that they are poor and hence not ban!able. .rofessor Muhammad %unus, the founder of G*rameen +an!G 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, Gthese millions of small people ith their millions of small pursuits can add up to create the biggest development onder.G

The primary purpose of the term paper is to partially fulfill the re$uirements for Industrial psychology course and develop the !no ledge and learn the formal procedures of successful term paper. (o ever, in preparing our term paper, e have loo!ed for the follo ing ob4ectivesH

2a3 @onducted a comprehensive literature search relating to the area of investigation. 2b3 Synthesi=ed and analy=ed the evidence from the literature search and identified an appropriate approach to the problem specified. 2@3 Demonstrated practical and professional s!ills in the development of business solution. 2d3 Documented the system to professional standards. 2e3 .erform an inAdepth critical revie 2f3 Made an effective contribution of the or! underta!en. ithin the -ndustrial environment.

2g3 @ommunicated effectively ith colleagues.

To measure the positions both in +angladesh and internationallyI e have chosen a case study on *rameen +an! as a topic of our study.

The sub4ect matter of this report is based on primary and secondary sources of data and informationH A. Primary Sources: Direct intervie J#pert opinion )fficial records .ractical or! e#perience. / @onversation.

Different files and documents study. *roup Discussion

B. Secondary Sources: Belevant papers and publications Different Loan strategies. .ro4ects appraisal report )rgani=ational @harts. Through -nternet bro sing.

The main source of data collection is the head office of *rameen +an! at Mirpur A>, Dha!aA6>69I. Cirstly Mr. Mah=abeen "han, the senior e#ecutive officer of *rameen +an! conducted a briefing about the latest condition of microcredit and the position of rural omen in this country. To collect information about this term paper -nternational .ublic Belation center, Development of Besearch methodology, *rameen -nformation center help a lot to obtain the information needed. A library to the first building of *rameen ban! is situated here and opens for everyone. Any published data boo!s, Lagers, 5ournals available here. A Kuestioner is arranged bet een some members of *rameen +an!, fined some sub4ect from it, studied them and try to find out ans ers for the purpose of sorting out the best ay to solve them. ritten by different ith the topic is authors in regarding &*rameen +an! and Micro credit, related

-n analy=ing the available data to prepare this term paper, there are great or!ings done by Authors. +ut since the !no ledge in this field is some hat limited to the authors, the term paper may have some shortcomings regarding the findings.

1ata Insufficiency: -t as very difficult to collect data from such a big organi=ation. +ecause of some divisional and confidential problem, it could not be possible to get enough information.

2ac' of 3ecords: Sufficient boo!s, publications, facts and figures are not available. These constraints narro ed the scope of accurate analysis. -f these limitations ere not been there, the report ould have been more useful and attractive.

Short time AllocationH The allocated time study.

as very short for the

+onnecti*ity -ith StudyH The study may not give e#act result as it is a study of our learning process.

Restriction of Co ection of Infor!ation" Again for formalities constraints allowance was restricted. That,s
shortage occurred. hy information

#$ Startin% Acti&ities$

'$ Or%ani(e) Acti&ities$ *$ First +an,in% -istor.

1. STA3TI4! A+TI5ITI(SH
The origin of the activities of *rameen +an! can be traced to the 6789 @hittagong 'niversity campus in chittagong. Then the pro4ect &Microcredit,. -t of :L9 ta!a only. as named &Dhe!i Bin .ro!olpa, and started hen

Mohammed %unus set up an e#periment in &5)+BA, village beside of the as not named the ith the contribution

2. ,3!A4I6(1 A+TI5ITI(S
With the sponsorship of the central ban! of the country and support of the nationali=ed commercial ban!s, the pro4ect 6787. as e#tended to Tangail district in

/. 7I3ST &A48I4! A+TI5ITI(S T93,:!9 MI+3,+3(1IT S(+T,3:

-n )ctober >, 67:;, the *rameen +an! as transformed into an independent hom it serves o n hile the ban! by governmentAunscheduled legislation. The rural poor remaining 6?D is o ned by the government.2See Appendi#A63

Today *rameen +an!. +orro ers of the +an! o n 7?D of its shares,

J#tend ban!ing facilities to poor men and

omenI

Jliminate the e#ploitation of the poor by money lendersI @reate opportunities for selfAemployment for the vast multitude of 'nemployed people in rural +angladeshI +ring the disadvantaged, mostly the manage by themselvesI and omen from the poorest households, hich they can understand and income, lo saving / lo ithin the fold of an organi=ational format

Beverse the ageAold vicious circle of Glo investmentG, into virtuous circle of Glo

income, in4ection of credit,

investment, more income, more savings, more investment, more incomeG.

,-ned by the Poor *rameen +an! .ro4ect 6789. -n 67:; it omen. -t as born in the village of 5obra, +angladesh, in passed ho are mostly

as transformed into a formal ban! under a special la

for its creation. -t is o ned by the poor borro ers of the ban!

or!s e#clusively for them. +orro ers of *rameen +an! at present

o n 7E per cent of the total e$uity of the ban!. Bemaining 9 percent is o ned by the government.

4o +ollateral; 4o 2egal Instrument; 4o !roup"!uarantee or <oint 2iability *rameen +an! does not re$uire any collateral against its microAloans. Since the ban! does not ish to ta!e any borro er to the court of la in case of nonArepayment, it does not re$uire the borro ers to sign any legal instrument. Although each borro er must belong to a fiveAmember group, the group is not re$uired to give any guarantee for a loan to its member. Bepayment responsibility solely rests on the individual borro er, centre oversee that everyone behaves in a responsible responsible to pay on behalf of a defaulting member. hile the group and the ay and none gets into

repayment problem. There is no form of 4oint liability, i.e. group members are not

=% percent >omen Total number of borro ers is 9.7L million, 78 per cent of them are &ranches *rameen +an! has >,;E; branches. -t is >6,;9;. ,*er T' /#$ billion 1isbursed Total amount of loan disbursed by *rameen +an!, since inception, is T! ;6?.>? billion 2'SM 9.?6 billion3. )ut of this, T! >88.?? billion 2'SM L.;E billion3 has been repaid. @urrent amount of outstanding loans stands at T" ;;.>? billion 2'SM E8:.?> million3. During the past 6> months 2from Cebruary,?9 to 5anuary,?83 *rameen +an! disbursed T!. L?.>9 billion 2'S M 8;?.?7 million3. Monthly average loan disbursement over the past 6> month 9?.:E million3.2See Appendi#A>3 as T! E.67 billion 2'S M or!s in 8L,;L7 villages. Total staff omen.

.ro4ected disbursement for >??8 is T! 9L.?? billion 2'S M 7;? million3, i.e. monthly disbursement of T! L.E> billion 2'S M 88.L? million3. Jnd of the year outstanding loan is pro4ected to be at T!. E?.?? billion 2'S M L8> million3

3eco*ery 3ate =0 percent Loan recovery rate is 7:.E: per cent.

#$$ percent 2oans 7inanced 7rom &an' s 1eposits *rameen +an! finances 6?? per cent of its outstanding loan from its deposits. )ver 96 per cent of its deposits come from ban!,s o n borro ers. Deposits amount to 6;9 per cent of the outstanding loans. -f e combine both deposits and o n resources it becomes 6LE per cent of loans outstanding

4o 1onor Money; 4o 2oans -n 677L, *+ decided not to receive any more donor funds. Since then, it has not re$uested any fresh funds from donors. Last installment of donor fund, as in the pipeline, hich as received in 677:. *+ does not see any need to ta!e any ill be more than enough to run and e#pand its

donor money or even ta!e loans from local or e#ternal sources in future. *+0s gro ing amount of deposits credit programme and repay its e#isting loans.

(arns Profit Jver since *rameen +an! came into being, it has made profit every year e#cept in 67:;, 6776, and 677>. -t has published its audited balanceAsheet every year, audited by t o internationally reputed audit firms of the country. All these reports are available on @D, and some on our ebAsiteH .grameen.com.

3e*enue and ()penditure Total revenue generated by *rameen +an! in >??L 66>.E? million3. Total e#penditure as T! 8.;7 billion 2'S M as the

as T! 9.;7 billion 2'S M 78.67 million3.

-nterest payment on deposits of T! >.>7 billion 2'S M ;E.8E million3

largest component of e#penditure 2;9 per cent3. J#penditure on salary, allo ances, pension benefits amounted to T! 6.98 billion 2'S M >L.;8 million3, hich as the second largest component of the total e#penditure 2>9 per cent3. ith disaster *rameen +an! made a profit of T! 6??? million 2'S M 6L.>6 million3 in >??L. Jntire profit is transferred to a Behabilitation Cund created to cope for e#empting *rameen +an! from paying corporate income ta# situations. This is done in fulfillment of a condition imposed by the government

2o- Interest 3ates *overnment of +angladesh has fi#ed interest rate for governmentArun micro credit programmers at 66 per cent at flat rate. -t amounts to about >> per cent at declining basis. *rameen +an!0s interest rate is lo er than government rate. There are four interest rates for loans from *rameen +an! H >?D 2declining basis3 for income generating loans, :D for housing loans, LD for student loans, and ?D 2interestAfree3 loans for Struggling Members 2beggars3. All interests are simple interest, calculated on declining balance method. This means, if a borro er ta!es an incomeAgenerating loan of say, T! 6,???, and pays bac! the entire amount ithin a year in ee!ly installments, she0ll pay a total amount of T! 6,6??, i.e. T! 6,??? as principal, plus T! 6?? as interest for the year, e$uivalent to 6?D flat rate. Deposit Bates *rameen +an! offers very attractive rates for deposits. Minimum interest offered is :.L per cent. Ma#imum rate is 6> per cent.

&eggars as Members +egging is the last resort for survival for a poor person, unless he1she turns into crime or other forms of illegal activities. Among the beggars there are disabled, blind, and retarded people, as ell as old people ith ill health. *rameen +an! has ta!en up a special program, called Struggling Members .rogram, to reach out to the beggars. About 76,??? beggars have already 4oined the program. Total amount disbursed stands at T!. :6.7: million. )f that amount of T!. L6.E8 million has already been paid off. +asic features of the program areH J#isting rules of *rameen +an! do not apply to beggar membersI they ma!e up their o n rules. All loans are interestAfree. Loans can be for very long term, to ma!e repayment installments very small. Cor e#ample, for a loan to buy a $uilt or a mos$uitoAnet, or an umbrella, many borro ers are paying T! >.?? 2;.E cents 'S3 per ee!. +eggar members are covered under life insurance and loan insurance programs ithout paying any cost *roups and centers are encouraged to become patrons of the beggar members. Jach member receives an identity badge everybody !no ith *rameen +an! logo. She can display this as she goes about her daily life, to let that she is a *rameen +an! member and this national institution stands behind her. Members are not re$uired to give up begging, but are encouraged to ta!e up an additional incomeAgenerating activity li!e selling popular consumer items door to door, or at the place of begging.

)b4ective 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 *rameen +an! members. We ish to ma!e sure that no one in the *rameen +an! villages has to beg for survival.

9ousing for the Poor *rameen +an! introduced housing loan in 67:E. -t became a very attractive programme for the borro ers. This program as a arded Aga "han ee!ly -nternational A ard for Architecture in 67:7. Ma#imum amount given for housing loan is T! 6L,??? 2'S M >693 to be repaid over a period of L years in instalments. -nterest rate is : per cent. 9,E>,;LL houses have been constructed ith the housing loans averaging T! 6;,>?> 2'S M 67?3. A total amount of T! :.E: billion 2'S M >?;.L8 million3 has been disbursed for housing loans. During the past 6> months 2from Cebruary,?9 to 5anuary,?83 6E,>L; houses have been built ith housing loans amounting to T! 6;8.EL million 2'S M >.?? million3.

Micro"enterprise 2oans Many borro ers are moving ahead in businesses faster than others for many favourable reasons, such as, pro#imity to the mar!et, presence of e#perienced male members in the family, etc. *rameen +an! provides larger loans, called microAenterprise loans, for these fast moving members. There is no restriction on the loan si=e. So far 6,?;L,8L6 members too! microAenterprise loans. A total of T! >>.;? billion 2'S M ;E:.:; million3 has been disbursed under this category of loans. Average loan si=e is T! >6,L;E 2'S M ;6?3, ma#imum loan ta!en so far is T! 6.> million 2'S M 67,:783. This as used in purchasing a truc! hich is operated by the husband of the borro er. .o erAtiller, irrigation pump, transport vehicle, and riverAcraft for transportation and fishing are popular items for microA enterprise loans.

Scholarships Scholarships are given, every year, to the high performing children of *rameen borro ers, ith priority on girl children, to encourage them to stay ill ahead to their classes. 'p to 5anuary >??8, scholarships amounting to 'SM EL?,??? have been a arded to ;L,E7E children. During >??8, 'SM 88L,??? education. be a arded to about ;?,??? children, at various levels of school and college

(ducation 2oans Students ho succeed in reaching the tertiary level of education are given

higher education loans, covering tuition, maintenance, and other school e#penses. +y 5anuary,?8, 6E,7:E students received higher education loans, of them 6;,777 students are studying at various universitiesI 68? are studying in medical schools, ;>6 are studying to become engineers, E7E are studying in other professional institutions.

!rameen 4et-or' 63 *rameen .hone Ltd. >3 *rameen Telecom ;3 *rameen @ommunications E3 *rameen @ybernet Ltd. L3 *rameen Soft are Ltd. 93 *rameen -T .ar! 83 *rameen -nformation (igh ays Ltd.

?See Appendi)"/@

:3 *rameen Star Jducation Ltd. 73 *rameen +ite! Ltd. 6?3 *rameen 'ddog 2Jnterprise3 663 *rameen Shamogree 2.roducts3 6>3 *rameen "nit ear Ltd. 6;3 *onoshasthaya *rameen Te#tile Mills Ltd. 6E3 *rameen Shi!!ha 2Jducation3 6L3 *rameen @apital Management Ltd. 693 *rameen +yabosa +i!ash 2+usiness .romotion 3 683 *rameen Trust

!rameen &an'"+reated +ompanies The follo ing companies in the *rameen net or! ere created by *rameen +an!, as separate legal entities, to spin off some pro4ects ithin *rameen +an! funded by donors. Donor funds transferred to *rameen Cund *rameen +an! H *rameen Cund H T! ;8;.> million 2'S M 9.;: million3 *rameen "rishi Coundation H T! 67 million 2'S M .;; million3 *rameen Motsho 2Cisheries3 Coundation H T! 6L million 2'S M .>9 million3 *rameen +an! provided guarantees in favour of the follo ing organi=ations hile they ere receiving loans from the government and the financial organi=ations. These guarantees are still in effect. *rameen Sha!ti H T! 7 million 2'S M ?.6> million3 *rameen Motsho 2Cisheries3 Coundation H T! : million 2'S M ?.66 million3 ere given as a loan from *rameen +an!. These companies have the follo ing loan liability to

!rameen 8alyan *rameen "alyan 2 ellAbeing3 is a spin off company created by *rameen +an!. *rameen +an! created an internal fund called Social Advancement Cund 2SAC3 by imputing interest on all the grant money it received from various donors. SAC has been converted into a separate company to carry out its mandate to underta!e social advance activities among the *rameen borro ers, such as, education, health, technology, etc.

2oans Paid ,ff At 1eath -n case of death of a borro er, all outstanding loans are paid off under Loan -nsurance .rogram. 'nder this program, an insurance fund is created by the interest generated in a savings account created by deposits of the borro ers made for loan insurance purpose, at the time of receiving loans. Jach time an amount e$ual to ; per cent of the loan amount is deposited in this account. This amount is transferred from the Special Savings account. -f the current balance in the insurance savings account is e$ual or more than the ; per cent of the loan amount, the borro er does not need to add any more money in this account. -f it is less than ; per cent of the loan amount, she has to deposit enough money to ma!e it e$ual.

@overage of the loan insurance program has also been e#tended to the husbands ith additional deposits in the loan insurance deposit account. A as if she has paid off the loan. borro er can get the outstanding amount of loan paid off by insurance if her husband dies. She can continue to borro

Total deposits in the loan insurance savings account stood at T! ;,:>?.LL million 2'SM LL.?? million3 as on 5anuary ;6, >??8. 'p to that date LL,E9> insured borro ers and insured husbands died and a total outstanding loans and interest of T! ;:>.87 million 2'S M 9.66 million3 left behind as paid off

by the ban! under the program. The families of the deceased borro ers are not be re$uired to pay off their debt burden any more, because the insured borro ers or their insured husbands do not leave behind any debt burden to ta!e care of. Life -nsurance Jach year families of deceased borro ers of *rameen +an! receive a total of T! : to 6? million 2'S M ?.6E million to ?.68 million3 in life insurance benefits. Jach family receives T! 6,L??. A total of 7?,?:9 borro ers died so far in *rameen +an!. Their families collectively received a total amount of T! 68?.7? million 2'SM ;.8> million3. +orro ers are not re$uired to pay any premium for this life insurance. +orro ers come under this insurance coverage by being a shareholder of the ban!.

1eposits +y the end of 5anuary, >??8 total deposit in *rameen +an! stood at T!. EL.66 billion 2'SM 9E7.E: million3. Member deposit constituted 96 per cent of the total deposits. +alance of member deposits has increased at a monthly average rate of >.:8 per cent during the last 6> months.

Pension 7und for &orro-ers As borro ers gro hen they cannot older they orry about hat ill happen to them

or! and earn any more. *rameen +an! addressed that issue

by introducing the program of creating a .ension Cund for old age. -t immediately became a very popular program. 'nder this program a borro er is re$uired to save a small amount, such as T! L? 2'S M ?.:93, each month over a period of 6? years. The depositor gets almost t ice the amount of money she saved, at the end of the period. The borro ers find it very attractive. +y the end of 5anuary, >??8 the balance under

this account comes to a total of T! 6;.;E billion 2'S M 67>.?E million3. T! E.>8 billion 2'S M 9>.?E million3 as added during the past 6> months 2CebruaryA by T! 9.>9 billion 5anuary, >??83. We e#pect the balance in this account to gro >:?.;9 million3.

2'S M :7.LE million3 in >??8 ma!ing the balance to reach T! 67.9? billion 2'S M

2oan 2oss 3eser*e *rameen +an! has a very rigorous policy on bad debt provisioning. -f a loan does not get paid bac! on time it is converted into a special type of loan called GCle#ible LoanG, and L? per cent provisioning is done at the first annual closing. (undred per cent provisioning is done even if the loan repayment still continues. hen fle#ible loan completes the ritten off second year. At its third year, the outstanding amount is completely

+alance in the loan loss reserve stood at T! >.86billion 2'S M E6.6> million3 at the end of >??L after riting off an amount of T! >.?? billion 2'S M ;?.E? million3 ritten off in the past an amount of T! ?.:L during >??L. )ut of the total amount

billion 2'S M 6>.79 million3 has been recovered during >??L.

3etirement &enefits Paid ,ut *rameen +an! 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. -t is usually paid out retirement. Since this benefit ithin a month after as introduced 9,>>9 staff members retired and

received a total amount of T! ;.E; billion 2'S M 96.9L million3 in cash. This

amounts to T! ?.LL million 2'S M 7,7?>3 per retiring staff. During the past 6> months 9?6 staff ent on retirement collecting a retirement benefit of T! LL9.?? as T! ?.7; million 2'S M :.?: million3. Average retirement benefit per staff million 2'S M 6;,EEE3.

Telephone"2adies ToAdate *rameen +an! has provided loans to >:>,99> borro ers to buy mobile phones and offer telecommunication services in nearly half of the villages of +angladesh here this service never e#isted before. TelephoneAladies run a very profitable business ith these phones. TelephoneAladies play an important role in the telecommunication sector of the country, and also in generating revenue for *rameen .hone, the largest telephone company in the country. Telephone ladies use 69.L percent of the total airAtime of the company, hile their number is only E per cent of the total number of telephone subscribers of the company

!etting (lected in 2ocal &odies *rameen system ma!es the borro ers familiar ith election process.

They routinely go through electing group chairmen and secretaries, centreAchiefs and deputy centreAchiefs every year. They elect board members for running *rameen +an! every three years. This e#perience has prepared them to run for public offices. They are contesting and getting elected in the local governments. -n >??; local government 2'nion .orishad3 election 8,EE> *rameen members contested in the reserved seats for omen, ;,?L7 members got elected. They constitute >E per cent of the total members elected in the seats reserved for omen members in the 'nion .orishad local government. During 6778 local government election 6,8L; members got elected to these reserved seats.

+omputeriAed MIS and Accounting System Accounting and information management of nearly all the branches 2>,6>?, out of >,;E;3 has been computeri=ed. This has freed the branch staff to devote more time to the borro ers rather than spend it in paperA or!. +ranch staffs are provided to ith preAprinted repayment figures for each ee!ly meeting. -f every borro er pays according to the repayment schedule, the staff has nothing rite on the document e#cept for putting the signature. )nly the deviations are or! that remains to be done at the village level is to enter in the borro ers0 passboo!s. ith recorded. .aper figures

Thirty si# =ones, out of ;7, are connected very easy.

ith the head office, and

each other, through intraAnet. This has made data transfer and communications

Policy for ,pening 4e- &ranches <e branches are re$uired to fund themselves entirely ith the deposits they

mobili=e. <o fund from head office or any other office is lent to them. A ne branch is e#pected to brea!Aeven ithin the first year of its operation.

+rossing the Po*erty"2ine According to a recent internal survey, 9E per cent of *rameen borro ers0 families of *rameen borro ers have crossed the poverty line. The remaining families are moving steadily to ards the poverty line from belo .

BStarsB for Achie*ements

*rameen +an! provides colorAcoded stars to branches and staff for 6?? percent achievement of a specific tas!. A branch 2or a staff3 having fiveAstars indicate the highest level of performance. At the end of 5une >??9 branches sho ed the follo ing result.

6>E9 branches, out of the total of >,6:L branches, received stars 2green3 for maintaining 6?? per cent repayment record. 6E;6 branches received stars 2blue3 for earning profit. 2*rameen +an! as a hole earns profit because the total profit of the profitAearning branches the total loss of the lossAincurring branches.3 e#ceeds

6687 branches earned stars 2violet3 by meeting all their financing out of their earned income and deposits. These branches not only carry out their business ith their o n funds, but also contribute their surpluses to meet the fund re$uirement of deficit branches. ;?: branches have applied for stars 2bro n3 for ensuring education for 6??D of the children of *rameen families. After the completion of the verification processes their stars 2usually ;,??? ill be confirmed. LE branches have applied for stars 2red3 per branch3 over the poverty line. indicating branches those have succeeded in ta!ing all its borro ers0 families families

The star

ill be confirmed only after the verification procedure is stars.

completed. Jach month branches are coming closer to achieving ne into five star branches.

*rameen staff loo!s for ard to transforming all the branches of *rameen +an!

*rameen +an! provides colorAcoded stars to branches and staff for 6?? percent achievement of a specific tas!. A branch 2or a staff3 having fiveAstars indicate the highest level of performance. At the end of 5une >??9 branches sho ed the follo ing result.

6>E9 branches, out of the total of >,6:L branches, received stars 2green3 for maintaining 6?? per cent repayment record. 6E;6 branches received stars 2blue3 for earning profit. 2*rameen +an! as a hole earns profit because the total profit of the profitAearning branches the total loss of the lossAincurring branches.3 e#ceeds

6687 branches earned stars 2violet3 by meeting all their financing out of their earned income and deposits. These branches not only carry out their business ith their o n funds, but also contribute their surpluses to meet the fund re$uirement of deficit branches. ;?: branches have applied for stars 2bro n3 for ensuring education for 6??D of the children of *rameen families. After the completion of the verification processes their stars 2usually ;,??? ill be confirmed. LE branches have applied for stars 2red3 per branch3 over the poverty line. indicating branches those have succeeded in ta!ing all its borro ers0 families families

The star

ill be confirmed only after the verification procedure is stars.

completed. Jach month branches are coming closer to achieving ne into five star branches.

*rameen staff loo!s for ard to transforming all the branches of *rameen +an!

The *rameen +an!0s Method of action can be illustrated by the follo ing principlesH 6. Start ith the problem rather than the solutionH a credit system must be based on a survey of the social bac!ground rather than on a preA established ban!ing techni$ue. >. Adopt a progressive attitudeH development is a longAterm process hich depends on the aspirations and commitment of the economic operators. ;. Ma!e sure that the credit system serves the poor, and not viceAversaH credit officers visit the villages, enabling them to get to !no borro ers. E. Jstablish priorities for action visANAvis to the target populationH serve the most povertyAstric!en people needing investment resources, access to credit. L. At the beginning, restrict credit to incomeAgenerating production operations, freely selected by the borro er. Ma!e it possible for the borro er to be able to repay the loan. 9. Lean on solidarity groupsH small informal groups consisting of coAopted members coming from the same bac!ground and trusting each other. 8. Associate savings ith credit ithout it being necessarily a prere$uisite. :. @ombine close monitoring of borro ers and standardi=ed as possible. 7. Do everything possible to ensure the system0s financial balance. 6?. -nvest in human resourcesH training leaders for the rural environment. ill provide them ith real development ethics based on rigor, creativity, understanding and respect ith procedures hich are simple ho have no the

*rameen +an! credit delivery system has the follo ing featuresH 6. There is an e)clusi*e focus on the poorest of the poor. J#clusivity is ensured byH i. establishing clearly the eligibility criteria for selection of targeted clientele and adopting practical measures to screen out those do not meet them ii. iii. in delivering credit, priority has been increasingly assigned to omen The delivery system is geared to meet the diverse socioAeconomic development needs of the poor. >. &orro-ers are organiAed into small homogeneous Such characteristics facilitate group solidarity as groups. ell as participatory ho

interaction. )rgani=ing the primary groups of five members and federating them into centres has been the foundation of *rameen +an!0s system. The emphasis from the very outset is to organi=ationally strengthen the *rameen clientele, so that they can ac$uire the capacity for planning and implementing micro level development decisions. The @enters are functionally lin!ed to the *rameen +an!, hose field or!ers have to attend @entre meetings every ee!. 2See appendi#AE3 ;. Special loan conditional ties -hich are particularly suitable for the poor. These includeH i. ii. iii. iv. v. very small loans given ithout any collateral loans repayable in ee!ly installments spread over a year eligibility for a subse$uent loan depends upon repayment of first loan individual, self chosen, $uic! income generating activities employ the s!ills that borro ers already posses close supervision of credit by the group as ell as the ban! staff hich

vi. vii. viii.

stress on credit discipline and collective borro er responsibility or peer pressure special safeguards through compulsory and voluntary savings to minimi=e the ris!s that the poor confront Transparency in all ban! transactions most of centre meetings. underta'ing basic of a social of hich ta!e place at agenda

E. Simultaneous addressing

de*elopment the

needs

clientele.

This is reflected in the Gsi#teen decisionsG adopted by *rameen borro ers. This helps toH i. ii. raise the social and political consciousness of the ne ly organi=ed groups focus increasingly on the family iii. Jncourage their monitoring of social and physical infrastructure pro4ects A housing, sanitation, drin!ing planning, etc. L. 1esign and de*elopment of organiAation and management systems capable of deli*ering programme resources to targeted clientele. The system has evolved gradually through a structured learning process, that involves trials, errors and continuous ad4ustments. A ma4or re$uirement to operationali=e the system is the special training needed for development of a highly motivated staff, so that the decision ma!ing and operational authority is gradually decentrali=ed and administrative functions are delegated at the =onal levels do n ards. ater, education, family omen from the poorest households, hose urge for survival has a far greater bearing on the development of

9. ()pansion of loan portfolio to meet di*erse de*elopment needs of the poor. As the general credit programme gathers momentum and the borro ers

become familiar

ith credit discipline, other loan programmes are

introduced to meet gro ing social and economic development needs of the clientele. +esides housing, such programmes includeH i. ii. iii. iv. v. credit for building sanitary latrines credit for installation of tube irrigation for !itchen gardens credit for seasonal cultivation to buy agricultural inputs loan for leasing e$uipment 1 machinery, ie., cell phones purchased by *rameen +an! members Cinance pro4ects underta!en by the entire family of a seasoned borro er. ells that supply drin!ing ater and

The underlying premise of *rameen is that, in order to emerge from poverty and remove themselves from the clutches of usurers and middlemen, landless peasants need access to credit, traditional rural ban!ing postulate ithout hich they cannot be e#pected to launch their o n enterprises, ho ever small these may be. -n defiance of the hereby Gno collateral 2in this case, land3 means no creditG, the *rameen +an! e#periment set out to prove A successfully A that lending to the poor is not an impossible propositionI on the contrary, it gives landless peasants the opportunity to purchase their o n tools, e$uipment, or other necessary means of production and embar! on incomeAgenerating ventures hich ill allo them escape from the vicious cycle of Glo incomeG. -n other income, lo savings, lo underta!ings. The mode of operation of *rameen +an! is as follo s. A ban! branch is set up ith a branch manager and a number of center managers and covers or!ers start by visiting hich they ill be ith the local milieu in an area of about 6L to >> villages. The manager and the villages to familiari=e themselves operating and identify the prospective clientele, as investment, lo ords, the ban!er0s confidence

rests upon the

ill and capacity of the borro ers to succeed in their

ell as e#plain the purpose,

the functions, and the mode of operation of the ban! to the local population. *roups of five prospective borro ers are formedI in the first stage, only t o 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 ban!. )nly if the first t o borro ers begin to repay the principal plus interest over a period of si# ee!s, do the other members of the group become eligible themselves for a loan. +ecause of these restrictions, there is substantial group pressure to !eep individual records clear. -n this sense, the collective responsibility of the group serves as the collateral on the loan. Loans are small, but sufficient to finance the microAenterprises underta!en by borro ersH riceAhus!ing, machine repairing, purchase of ric!sha s, buying of mil! co s, goats, cloth, pottery etc. The interest rate on all loans is 69 percent. The repayment rate on loans is currently A 7L per cent A due to group pressure and selfAinterest, as ell as the motivation of borro ers. Although mobili=ation of savings is also being pursued alongside the lending activities of the *rameen +an!, most of the latter0s loan able funds are increasingly obtained on commercial terms from the central ban!, other financial institutions, the money mar!et, and from bilateral and multilateral aid organi=ations.

The *rameen +an! is based on the voluntary formation of small groups of five people to provide mutual, morally binding group guarantees in lieu of the collateral re$uired by conventional ban!s. At first only t o members of a group are allo ed to apply for a loan. Depending on their performance in repayment the ne#t t o borro ers can then apply and, subse$uently, the fifth member as ell.

The assumption is that if individual borro ers are given access to credit, they ill be able to identify and engage in viable incomeAgenerating activities A eaving, and garment se ing, storage and mar!eting and transport ere initially given e$ual access to the schemes, and proved simple processing such as paddy hus!ing, limeAma!ing, manufacturing such as pottery, services. Women

not only reliable borro ers 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 7? percent of borro ers are omen. -ntensive discipline, supervision, and servicing characteri=e the operations of the *rameen +an!, branch units hich are carried out by G+icycle ban!ersG in or!ers, the po erful peer pressure ith considerable delegated authority. The rigorous selection of

borro ers and their pro4ects by these ban! L?

e#erted on these individuals by the groups, and the repayment scheme based on ee!ly installments, contribute to operational viability to the rural ban!ing system designed for the poor. Savings have also been encouraged. 'nder the scheme, there is provision for L percent of loans to be credited to a group find and T! L is credited every ee! to the fund. The success of this approach sho s that a number of ob4ections to lending to the poor can be overcome if careful supervision and management are provided. Cor e#ample, it had earlier been thought that the poor successfully done so. -t in particular as thought that the poor ould not be able to find remunerative occupations. -n fact, *rameen borro ers have ould not be able to repayI in omen fact, repayment rates reached 78 percent. -t borro ers in early 677>. -t rural po er structures as thought that poor rural

ere not ban!ableI in fact, they accounted for 7E percent of as also thought that the poor cannot saveI in fact, as thought that

group savings have proven as successful as group lending. -t

ould ma!e sure that such a ban! failedI but the *rameen

+an! has been able to e#pand rapidly. -ndeed, from fe er than 6L,??? borro ers in 67:?, the membership had gro n to nearly 6??,??? by midA67:E. +y the end

of 677:, the number of branches in operation members 2>.>E million of them centres of groups, of hich ;;,6>9 are

as 66>:,

ith >.;E million

omen3 in ;:,7L8 villages. There are 99,L:6 omen. *roup savings have reached hich 8,;?? million

8,:L; million ta!a 2appro#imately 'SD 69> million3, out of ta!a 2appro#imately 'SD 6L> million3 are saved by omen.

-t is estimated that the average household income of *rameen +an! members is about L? percent higher than the target group in the control village, and >L percent higher than the target group nonAmembers in *rameen +an! villages. The landless have benefited most, follo ed by marginal lando ners. This has resulted in a sharp reduction in the number of *rameen +an! members living belo the poverty line, >? percent compared to L9 percent for comparable nonA age *rameen +an! members. There has also been a shift from agricultural

labor 2considered to be socially inferior3 to selfAemployment in petty trading. Such a shift in occupational patterns has an indirect positive effect on the employment and ages of other agricultural aged laborers. What started as an innovative here it has local initiative, Ga small bubble of hopeG, has thus gro n to the point made an impact on poverty alleviation at the national level G.

6. We shall follo and advance the four principles of *rameen +an! AAA Discipline, 'nity, @ourage and (ard or! O in all al!s of our lives.

>. .rosperity e shall bring to our families.

;. We shall not live in dilapidated houses. We shall repair our houses and or! to ards constructing ne houses at the earliest.

E. We shall gro 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.

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.

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.

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 an! to measure attitudes of with the "ermission of the authority. #See A"endix$1%

&here we find their 'o( satisfaction levels) their "erformance levels) *rgani+ational ,erformance) wor!ing environment) salary condition) ran!ing "rocess) insurance facilities) wor!ing hour)

E!p o.ee /o0 satisfaction e&e s

Level of wor!ers .igh Level *fficials 1id Level *fficials 2irst Level *fficials Satisfaction Level - ,ercentages .igh #/50% Average #550% Lower than average #320%

E!p o.ee 1erfor!ance Le&e s

Le&e of Officia s .igh Level *fficials S,i s 2se of S,i s /60) 260 160 760) 260 560 160) 260 /60

4once"tual) 5echnical - 4once"tual .uman .uman

1id Level *fficials

5echnical 4once"tual) 5echnical - 4once"tual .uman .uman

2irst Level *fficials

5echnical 4once"tual) 5echnical - 4once"tual .uman .uman 5echnical

Wor,in% en&iron!ent
Le&e of Officia s .igh Level *fficials 1id Level *fficials 2irst Level *fficials Satisfaction e&e s Strongly satisfied Satisfied 8o 4omments #average%

Wor,in% -o3r
Le&e of Officia s .igh Level *fficials 1id Level *fficials 2irst Level *fficials

D3ration of ti!e
8o (oundary of &or!ing 5ime Sometimes cross the assigned 5ime Assigned 5ime

Ins3rance Faci ities

Le&e of Officia s .igh Level *fficials 1id Level *fficials 2irst Level *fficials

A&ai a0i it.

9es 9es 9es

At last

e can say that the *rameen +an! 2*+3 has reversed conventional

ban!ing practice by removing the need for collateral and created a ban!ing system based on mutual trust, accountability, participation and creativity. *+ provides credit to the poorest of the poor in rural +angladesh, collateral. At *+, credit is a cost effective ithout any eapon to fight poverty and it serves

as a catalyst in the over all development of socioAeconomic conditions of the poor ho have been !ept outside the ban!ing orbit on the ground that they are poor and hence not ban!able. As in >??8, it has more than 8 million borro ers, 7: percent of hom are covering more than :: percent of the total villages in +angladesh. omen.

With more than >>:; branches, *+ provides services in 8;,9?7 villages,

o o o

5he credit deliver system should (e im"roved. :n Some cases authority is so strict. As a result sometimes de(tors 5he government should hel" Grameen an! to grow faster (ut at

are afraid of ta!ing loan. the same time) the government itself should continue to carry out its "overty alleviation "rograms es"ecially through ;< and other organs o 5he com"lementary role of Grameen an! and government can

ta!e care of the "ro(lem) o Grammen an! should remove all its wrong "erce"tion from

"eo"le and institutions.

3(P,3TS:
A report on Microcredit and >omenBs (mpo-erment; -ritten by Abdul Bayes.

&,,8S:
Dr. Mohammad %unus,677L; Microcredit and my life; +angla Jdition, Ahmed Mahfu4ul (a$ue, Dr. Mohammad %unus,May >??9,Introducing !rameen &an'; +angla Jdition, .ac!ages @orporationLtd,E1cShaloShahar AE>?7. Dr. Mohammad %unus,6777; Pother &adha sorie 4in Manush'e Agute 1in; +angla Jdition, Ahmed Mahfu4ul (a$ue, Dr. Mohammad %unus, Muhammad and 5olis, Alan. &an'er to

the Poor ?&angla 5ersion"#st (dition@H The autobiography of

Muhammad %unus, founder of the *rameen +an!. .ublic AffairsH+angladesh, 6777.

Annual and Monthly 3eportH

6. !rameen &an': Monthly 3eport CD$$%. *rameen +an!H Dha!a, >??8. >. !rameen &an': Annual 3eport CD$$.. *rameen +an!H Dha!a, >??9.

Internet Search:

!rameen &an' Betrieved 6: March >??8, from httpH11 .grameenAinfo.org1

MuhammadEunus.org Betrieved 6: March >??8, from

httpH11 Eunus

.muhammadyunus.org1 7oreign +orrespondent " Inter*ie- -ith Prof. Muhammad

Betrieved 6: March >??8, from httpH11 .abc.net.au1foreign1stories1sE??9;?.htm 7ollo-"up report on the Microcredit summit Betrieved 6: March >??8, from httpH11 .leftbusinessobserver.com1MicroPsummit.html

Microcredit; Macro Problems

Betrieved 6: March >??8, from httpH11 .thenation.com1doc1>??96?;?1bello Microcredit; microresults Betrieved 6: March >??8, from httpH11 .leftbusinessobserver.com1Micro.html

The MicroBanking Bulletin, Betrieved 6: March >??8, from

httpH11

.mi#mbb.org1en1inde#.html <ournal of Microfinance;

Betrieved 6: March >??8, from httpH11 .lib.byu.edu1spc1microfinance1 !rameen 7oundation; Betrieved 6: March >??8, from httpH11 .grameenfoundation.org1

Microcredit and >omenBs Po*erty; Betrieved 6: March >??8, from

httpH11

.dollarsandsense.org1archives1>??9166?9feinerbar!er.html

Appendix-1 Q3estionnaire for Attit3)e S3r&e.

This 73estionnaire has 0een prepare) 0. the st3)ents of Mana%e!ent St3)ies8 #'th 0atch8 ++A as per re73ire!ent of the co3rse" 9In)3stria 1s.cho o%.4 :#;<=$ It has 0een pri!ari . prepare) in or)er to con)3ct a s3r&e. in -ea) office of Gra!een +an, at Mirp3r -'8 Dha,a-#'#>?$

@o3r ,in) cooperation wi 0e hi%h . appreciate)$

NAME" Instr3ction" 1 ease answer the Fo owin% state!ents 3sin% the fo owin% ratin% sca e

5>Stron% . a%ree 7>2n)eci)e) 1>Stron% . Disa%ree #$ This Or%ani(ation is prett. %oo) p ace to wor,$ Ratin%.. '$ Or%ani(ation4s wor,in% en&iron!enta con)ition is &er. %oo)$ Ratin%.. *$ I can %et ahea) in this or%ani(ation if I !a,e the effort$ Ratin%.. 5$ I a! satisfie) with !. sa ar. of this e&e $ Ratin%.. 6$ I a! satisfie) with !. ran,in% a so$

3>A%ree 2>Disa%ree

Ratin%.. >$ Sa ar. rate of !ine is co!petiti&e with the other or%ani(ation in this e&e or ran,in%$ Ratin%.. /. This or%ani(ation %i&es !e 0on3s in satisfie) e&e $ Ratin%.. A$ Not on . 0on3s 03t a so this or%ani(ation %i&es !e !an. other faci ities$ Ratin%.. B$ I %et ins3rance faci ities fro! !. or%ani(ation$ Ratin%.. #;$ M. Co0 !a,es the 0etter 3se of !. a0i it.$ Ratin%.. ##$ I appreciate !. act3a wor,in% ho3r$ Ratin%.. #'M. wor,in% press3re is in ine with the c3rrent sa ar.$ Ratin%.. #*$ M. eDpecte) wor,in% is Ahrs E)a. with the !aintenance of aw in +an% a)esh$ Ratin%.. #5$ I ha&e tr3st an) confi)ence in !. 0oss$ Ratin%.. #6$ I fee free to te !. 0oss what I thin,$ Ratin%.. #*$ I ,now what 0oss eDpect fro! !e$ Ratin%.. #>$ I fin) the 0est sec3rit. to wor, in$ Ratin%..

Appendix-2

GRAMEEN BANK
HEAD OFFICE MIRPUR-2, DHAKA-1216

Statement No: 1 Iss e N m!e": #26,

Date: Ma"$% 1&, 2''(

G"ameen Ban) Mont%*+ U,-ate .n /a)a : Fe!" a"+, 2''(

S*0 No0

Pa"t.$ *a"s

M.**.on /a)a

1.0 2.0 3.0 4.0 .0

Cumulative Amount Disbursed Since Inception Cumulative Amount Repaid Since Inception Amount Disbursed this Month Amount Repaid this Month !utstandin" #oan 5.1 asic Loan

*#585A'$<6 'A;8AB<$#; 58'<<$;A *8AB5$6B 76)?@7.?5 1)?2@.1@ 2/?.76 5?3.72 **86A6$>6 BA$5B

5.2 2lexi(le Loan #a% 5.7 .ousing Loan 5.3 *ther Loans 6$6 Tota " $.0 '.0 Rate o% Recover& (b) (otal !utstandin" o% )orro*ers Missin" /.1 asic Loan

to + Consecutive Instalments (c) 15/.@7 26A.25 *>5$#< 1/3.31 377.25 3A./5 6.?3 >66$'6 1)6A1)@?3 22)?@@.?5 1/)/A3.@@ 2/)A/5.3A 1/)@?@.75

/.2 2lexi(le Loan <$* (otal " ,.0 !verdue #oan (d) ?.1 asic Loan #e% ?.2 2lexi(le Loan ?.7 .ousing Loan ?.3 *ther Loans ,. +.0 (otal Microenterprise #oan .Cumulative/ @.1 8o. of 1icroenter"rise Loans @.2 Amount <is(ursed @.7 Amount ;e"aid 10.0 )alance o% Deposits 16.1 1em(ersB <e"osit 16.2 8on$1em(ersB <e"osit

#;$* (otal " 11.0 Deposits to !utstandin" 11.1 <e"osits as ,ercentage of *utstanding Loans 11.2 <e"osits and *wn ;esources as ,ercentage of *utstanding Loans 11.7 8o. of ranches with more in <e"osits than in *utstanding Loans 12.0 )e""ar Members 12.1 8o. of eggar 1em(ers 12.2 Amount <is(ursed #4umulative% 12.7 Amount ;e"aid #4umulative% 12.3 Amount of Savings # alance% 13.0 14.0 1 .0 Cumulative 0umber o% 1illa"e 2hones Cumulative 0umber o% 3ouses )uilt *ith 3ousin" #oans #i%e Insurance 4und .Cumulative/ 15.1 8o. of <eaths Among all orrowers 15.2 Amount "aid out from Life :nsurance 2und 1$.0 #oan Insurance 1A.1 alance in Loan :nsurance Savings

568>>5$A# 17A 153 1)7A@

?1)?A7 ?5.72 57.A3 A./6 'AB8';5 >5*8<6>

@6)?5/ 1/1.?3 7)?11.22 5/)52? 7??.?1

1A.2 8o. of <eaths Among :nsured orrowers #4umulative% 1A.7 Amount of *utstanding ,rinci"al and :nterest of the <eceased orrowers "aid out from :nsurance 2und #4umulative% 1'.0 3i"her 5ducation #oan .Cumulative/ 1/.1 8o. of 2emale Students 1/.2 8o. of 1ale Students 1'.3 (otal 1/.3 Amount <is(ursed #2emale% 1/.5 Amount <is(ursed #1ale% 1'.$ (otal -

7)625 12)7/7 #68*BA /@.26 773.7/ 5#*$6<

1,.0

Scholarship .Cumulative/ 1?.1 Scholarshi" ;eci"ient #2emale% 1?.2 Scholarshi" ;eci"ient #1ale% 1,.3 (otal 1?.3 Scholarshi" Amount #2emale% 1?.5 Scholarshi" Amount #1ale% 1,.$ (otal 26)?32 13)?53 *68>B> 15./? 11.@3 '<$<' A)/A?)7A7 27/)5A7 <8;;68B'> #8#;<86#6 #'*8<*' <68B6; '8*A# '8#6A

1+.0

0umber o% Members 1@.1 2emale 1@.2 1ale 1+.3 (otal -

20.0 21.0 22.0 23.0 24.0

0umber o% 6roups 0umber o% Centres 0umber o% 1illa"es 0umber o% )ranches 0umber o% )ranches *ith Computeri7ed Accountin" and MIS

Appendix-2

D$$D Institutional characteristic:

1 Total assets (In million Taka.) Total assets (In million USD) 2 Num e! o" o""i#es Num e! o" em$lo%ees 22,659 391 1,332 11,699

D$$/

D$$F

D$$G

27,272 467 1,357 11,846

33,653 558 1,525 13,&38

44,624 678 1,944 16,142

O3treach in)icators"
3 Num e! o" !an#'es 4 Num e! o" mem e!s (In millions) 5 Num e! o" a#ti(e o!!o)e!s (In millions) 6 Num e! o" a#ti(e o!!o)e!s $e! !an#' (%ea!*en+) 7 Num e! o" loan o""i#e!s 8 ,e!#ent o" )omen mem e!s 9 .(e!a/e loan alan#e $e! o!!o)e!(Taka) .(e!a/e loan alan#e $e! o!!o)e!(USD) 1,178 2.48 1,195 3.12 1,358 4.&6 1,735 5.58

2.&8

2.87

3.7&

5.&5

1,766

2,4&2

2,722

2,912

7,448 95.2&6,134 1&6

7,495

7,925

9,166 96.275,563 85

95.44- 95.665,622 96 5,444 9&

Loan portfo io

Item Falue added in grameen +an!

#==F 6:7?.8

#==G >6:6.7 ::.7 8>>>.6 6;9>.8 L:L7.E LL;.7 LE9E 6LL6?.:

#==. >8L?.: 78.> 9>L8.6 66L>.: L6?E.; E9:.7 E8L6.> 6E;>L.>

Falue added in lin!ed sectors due to 8L.7 supply of inputs to *rameen +an! Falue added in lin!ed sectors 8;E6.: attributed to *rameen +an! loans @apital supplying sectors -nput supplying sectors Wage payment from loans 6;E:.7 L77>.7 LE8.:

Beturn on loan financed activities at LLL9.: E?D Total contribution of *rameen +an! 6LE6; of *D. Total *D. 6?;?;9L .ercentage contribution of *rameen 6.L?D +an! to *D.

668?>96 6;?69?? 6.;;D 6.6?D

Source: @ontribution of *rameen +an! to *ross Domestic .roduct of +angladeshH .reliminary Jstimates, +y Mohiuddin Alamgir, December 677:

Appen)iD

Appen)iD #" Total amount of loan disbursed by *rameen +an!.

Appen)iD '" 5he wor!ing "rocedure of Grameen an!.

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