83 income generation
female home ownership : gov did not give loans for smallest village huts so grameen did once it had designed minimum
structure (monsoon and cyclone proof, with pit latrine)- awarded aga khan prize.
96 second major
loan for productivity breakthrough - creates job of mobile village phione ladies - with one shared phone per vilage impact
in connecting 150K hubs can be likened to when telegrams first came to wild west! better yet grameen took 34% shareholding
in trust for poorest members in what emerged as Bangladesh's leading company and number 1 mobile provider "grameen phone" with 66% owned by Norway's telenor
late 90s: loans started to be made for those who wanted to install solar energy units served by
around 97 : Grameen Shikkha starts offering student loans for members children
who qualify for university; soon it also offers scholarships for staying on to secondary school
83 share in bank
?? Insurance services started to be available
83 by owning the market villagers have next to zero channel costs and
no waste from surplus supply
94 Grameen Uddog appears to be the first marketing channel beyond
the village markets that Grameen invests in to help villages to be represented in a market sector (garments and handicrafts)
The mobile phone revolution (1996) brought village phone ladies who for the first time could directly exchange
information on market priices and valuable knowhow for hub to hub.
of extremely affordable innovation
Do you have better news on solar energy than this Economist podcast?
83: 16 Decison culture included weekly knowhow sharing at each village centre of 60 members- eg up
to 1 in 5 infants lives are saved if mothers know oral dehydration involving mix of water sugar and salts, and maternal death
rates were immediately lowered by 16 D culture. By tradtion, only female co-founder Mrs Begum was permitted to lead
womens village dialogues out of which 16 D Grameen Culture Charter arose.
83- from outset
grameen branch 5 star rating only achievable when all members children go to primary school
spreading knowhow on childrens nutrition becomes passion of yunus on seeing children with night blindess- first service,
plant carrots! in 05 this passion stimulated first global Social Busines partnering Grameen-Danone. Thus Yunus, as number
1 pro-youth economist of net generation, had iontegrated 3-stage journey : 1) 10 times more economical community models; linking
in ICT for the poor; developing global social business partnerships as world's favorite race to exponentially freeing sustainability
in every marketplace
Trillion Dollar Audits of Markets Free to Value Sustainability in
If you campare what Yunus actioned with the leadership debates
at The Economist 1972 to 1984 (ref 1 2) on how to transform from industrial thing economy to service economics to networked knowledge economies joyfully
integrating every locality into a global world, you will see why votes for Yunus as youth's most exciting economist of 2010s
come from so many diverse constituencies of our borderless 21st C,
Between 1976- 2011 Grameen was the most purposeful organisational system that valuetrue.com had
encountered after valuing thousands of organisations with worldwide reach. In accompanying pages, we seek to transfer information
available in 2011 in case it subsequently gets wiped by the government of Bangladesh
Below updated March 2011.............................
|97 per cent Women |
| || |
of borrowers is 8.36 million, 97 per cent of them are women.
| || ||Grameen
Bank has 2,565 branches. It works in 81,379 villages. Total staff is 22,289|
|6.0|| ||Over Tk 622 billion Disbursed|
| || |
Total amount of loan disbursed by Grameen Bank, since inception, is Tk 622.26 billion (US $ 10.52 billion).
Out of this, Tk 552.20 billion (US $ 9.32 billion) has been repaid. Current amount of outstanding loans stands at TK 70.06
billion ( US $ 984.34 million). During the past 12 months ( from April’10 to March'11) Grameen Bank disbursed Tk. 100.02
billion (US $ 1428.81 million). Monthly average loan disbursement over the past 12 month was Tk 8.33 billion (US $ 119.07
Projected disbursement for year 2011 is Tk 110.00 billion (US$ 1557.63 million),
i.e. monthly disbursement of Tk 9.17 billion (US $ 129.80 million). End of the year outstanding loan is projected to be at
Tk. 78.00 billion (US $ 1105 million).
|7.0|| ||Recovery Rate Over 97 per cent|
| || ||Loan
recovery rate is 97.26 per cent.|
|8.0|| ||100 per cent Loans Financed From Bank’s Deposits|
| || ||Grameen Bank finances 100 per cent of its outstanding loan from its deposits. Over 55 per cent of its deposits
come from bank’s own borrowers. Deposits amount to 147 per cent of the outstanding loans. If we combine both deposits
and own resources it becomes 162 per cent of loans outstanding.|
|9.0|| ||Borrower-Deposits Keep Growing |
| || ||Besides building financial strength of the poor women by encouraging them to build
up significant amount of personal savings, borrower deposit is also a very important element in Grameen Bank. Forty-two per
cent of the branches have borrower deposits equal to 75 per cent or more of outstanding loans of the branches.|
of the branches have more borrower-deposits than the amount of loans outstanding. In some branches borrower-deposits are as
high as 50 per cent above the outstanding loans.
In seven zones, out of forty, borrower deposits are equal or more
than the outstanding loans in zones.
| || || |
|10.0|| ||No Donor Money, No
| || ||In 1995, GB decided not to receive
any more donor funds. Since then, it has not requested any fresh funds from donors. Last installment of donor fund, which
was in the pipeline, was received in 1998. GB does not see any need to take any donor money or even take loans from local
or external sources in future. GB's growing amount of deposits will be more than enough to run and expand its credit programme
and repay its existing loans. |
|11.0|| ||Earns Profit|
| || ||Ever
since Grameen Bank came into being, it has made profit every year except in 1983, 1991, and 1992. It has published its audited
balance-sheet every year, audited by two internationally reputed audit firms of the country. All these reports are available
on CD, and some on our web-site : www.grameen.com.|
|12.0|| ||Revenue and Expenditure|
| || ||Total revenue generated by Grameen Bank in 2009 was Tk 14.50 billion (US $ 209.80 million). Total expenditure
was Tk 14.13 billion (US $ 204.42 million). Interest payment on deposits of Tk 7.07 billion (US $ 102.29 million) was the
largest component of expenditure (50 per cent). Expenditure on salary,allowances, pension benefits amounted to TK. 3.82 billion
(US $ 55.33 million), which was the second largest component of the total expenditure (27 per cent). Grameen Bank made a profit
of Tk 371.57 million (US $ 5.38 million) in 2009. |
|13.0|| ||30% Dividend for 2009|
| || |
bank has declared 30% cash dividend for the year 2009. This is the highest cash dividend declared by any bank in Bangladesh
in 2009.Highest record of dividend declared by Grameen Bank was in 2006.It was 100%.The bank has also created a Dividend Equalization
Fund to ensure distribution of dividends without much fluctuation in successive years .Receiving of dividends each year greatly
inspires our shareholders, 97% of whom are our borrowers.
|14.0|| ||Low Interest Rates|
| || |
Government of Bangladesh has fixed interest rate for government-run microcredit programmes at 11 per cent
at flat rate. It amounts to about 22 per cent at declining basis. Grameen Bank's interest rate is lower than government rate.
There are four interest rates for loans from Grameen Bank : 20% for income generating
loans, 8% for housing loans, 5% for student loans, and 0% (interest-free) loans for Struggling Members (beggars). All interests
are simple interest, calculated on declining balance method. This means, if a borrower takes an income-generating loan of
say, Tk 1,000, and pays back the entire amount within a year in weekly instalments, she'll pay a total amount of Tk 1,100,
i.e. Tk 1,000 as principal, plus Tk 100 as interest for the year, equivalent to 10% flat rate.
|15.0|| ||Deposit Rates|
| || ||Grameen Bank offers very attractive rates for deposits. Minimum interest offered is 8.5 per cent. Maximum
rate is 12 per cent.|
| || |
the last resort for survival for a poor person, unless he/she turns into crime or other forms of illegal activities. Among
the beggars there are disabled, blind, and retarded people, as well as old people with ill health. Grameen Bank has taken
up a special programme in 2002, called Struggling Members Programme exclusively for the beggars. Over 111,597 beggars have
joined the programme. Total amount disbursed stands today at Tk. 157.84 million. Of this amount of Tk. 125.15 million (79%
of the amount disbursed) has already been paid off.Basic features of the programme are :
19,623 beggars have left begging and are making a living as
door-to-door sales persons. Among them 9,710 beggars have joined Grameen Bank groups as main-stream borrowers.
members have voluntarily opened their personal savings accounts. Cumulative deposit in these savings accounts amounts to BDT
21.34 million; present balance stands at BDT 8.24 million.
| || |
|1)||Existing rules of Grameen Bank do not apply to beggar members;
they make up their own rules.|
|2)||All loans are interest-free. Loans can be for very long term, to make repayment instalments
very small. For example, for a loan to buy a quilt or a mosquito-net, or an umbrella, many borrowers are paying Tk 2.00 (3.4
cents US) per week.|
|3)||Beggar members are covered under life insurance and loan insurance programmes without
paying any cost.|
| || |
|4)||Groups and centres are encouraged to become patrons of the beggar members.|
| || |
|5)||Each member receives an identity badge with Grameen Bank logo. She can display this as she goes about her
daily life, to let everybody know that she is a Grameen Bank member and this national institution stands behind her.|
| || |
|6)||Members are not required to give up begging, but are encouraged to take up an additional income-generating
activity like selling popular consumer items door to door, or at the place of begging.|
| || ||Objective of the programme is to provide financial services to the
beggars to help them find a dignified livelihood, send their children to school and graduate into becoming regular Grameen
Bank members. We wish to make sure that no one in the Grameen Bank villages has to beg for survival.|
|17.0|| ||Housing For the Poor|
| || ||Grameen Bank introduced housing loan in 1984. It became a very attractive programme
for the borrowers. This programme was awarded Aga Khan International Award for Architecture in 1989. Maximum amount given
for housing loan is Tk 25,000 (US $ 354) to be repaid over a period of 5 years in weekly instalments. Interest rate is 8 per
cent. 688,548 houses have been constructed with the housing loans averaging Tk 13,059 (US $ 183.49). A total amount of Tk
8.99 billion (US $ 210.94 million) has been disbursed for housing loans. During the past 12 months (from April'10 to March’11)
6,449 houses have been built with housing loans amounting to Tk 72.67 million (US $1.02 million).|
|18.0|| ||Micro-enterprise Loans|
| || ||Many borrowers are moving ahead in businesses faster than others for many favourable
reasons,such as, proximity to the market, presence of experienced male members in the family, etc. Grameen Bank provides larger
loans, called micro-enterprise loans, for these fast moving members. There is no restriction on the loan size. So far 3,140588
members took micro-enterprise loans. A total of Tk 89.29 billion(US$ 1314.78 million) has been disbursed under this category
of loans. Average loan size is Tk 28,432 (US $ 399.49), maximum loan taken so far is Tk 1.6 million (US $ 23,209). This was
used in purchasing a truck which is operated by the husband of the borrower. Power-tiller, irrigation pump, transport vehicle,
and river-craft for transportation and fishing are popular items for micro-enterprise loans.|
| || ||Scholarships are given, every year, to the high performing children of Grameen borrowers,
with priority on girl children, to encourage them to stay ahead to their classes. Upto March'11, scholarships amounting to
Tk 184.27 million (US$ 2.72 million) have been awarded to 1,32352 children. During 2011, US$ 592,849 will be awarded to about
24,611 children, at various levels of school and college education. |
|20.0 || ||Education Loans|
| || ||Students who succeed in reaching the tertiary level of education are given higher education loans, covering
tuition, maintenance, and other school expenses. By March’11, 48,444 students received higher education loans, of them
45,927 students are studying at various universities; 519 are studying in medical schools, 844 are studying to become engineers,
1154 are studying in other professional institutions.|
|21.0 || ||Grameen Network|
| || |
Grameen Bank does not own any share of the following companies in the Grameen network. Nor has it given any
loan or received any loan from any of these companies. They are all independent companies,registered under Companies Act of
Bangladesh, with obligation to pay all taxes and duties, just like any other company in the country. (Dates added come from
1 on Social Business)
1) Grameen Phone Ltd. (1996) Bangladesh's number 1 company and leading mobile provider -
66% owned by Norwegian Telenor
2) Grameen Telecom (1995) Telecom services for poor
3) Grameen Communications
(1997) - computer and network services mainly inside Grameen Bank?
4) Grameen Cybernet Ltd. (1997)
5) Grameen Solutions
Ltd. (1999)- youth and yunus world leading consultant in web-based services
6) Grameen Information Highways Ltd.
7) Grameen Bitek Ltd. (2002) manufacturer of electronic products
8) Grameen Uddog (Enterprise) (1994)
Export marketer of Grameen check hand-loom products made by Grameen members
9) Grameen Shamogree (Products) (1996) Domestic
sales of Grameen Check
10) Grameen Knitwear Ltd. (1997) manufacturer of knitted products for export
11) Grameen Shikkha (Education) (1997) Scholarships and other educational servuces for members young
12) Grameen Capital Management Ltd. (1998)
13) Grameen Byabosa Bikash (Business Promotion ) (2001) Provision of Small Business Loan Guarantees
14) Grameen Trust (1989) Training for MFIs around the world - host of the Grameen Dialogue (60th hosted at Grameen Dhaka Apil 2011) from which
microcredit founders in many countries have been born
15) Grameen Health Care Trust (2006) Funding fir Grameen healthcare
16) Grameen Health Care Service Ltd. 92006)
17) Grameen Danone Food Ltd. (2006)
18) Grameen Veolia
19) Grameen Shakti. (1996) Clean Energy
20) Grameen IT Park Ltd. (2001) development hi-tech office facilities
21) Grameen Star Education Ltd. (2002) Information tech training
22) Grameen Employment Services Ltd. (?2008)
23) Grameen Fabrics and Fashion Ltd.
24) Grameen Distribution Ltd.
25) Grameen Shamogree Purbanchal Ltd.
Grameen Shamogree Uttaranchal Ltd.
27) BASF Grameen Ltd.
|22.0 || ||Grameen Bank-Created Companies|
| || |
The following companies in the Grameen network were created by Grameen Bank,
as separate legal entities, to spin off some projects within Grameen Bank funded by donors. Donor funds transferred to Grameen
Fund were given as a loan from Grameen Bank.These companies have the following loan liability to Grameen Bank :
Fund (1994) : Tk 373.2 million (US $ 6.38 million)
Grameen Krishi Foundation (1991): Tk 19 million (US $ 0.33 million)
Grameen Motsho (1994) (Fisheries) Foundation: Tk 15 million (US $ 0.26 million)
Grameen Kalyan (well-being) is a spin off company created by Grameen Bank. Grameen Bank created
an internal fund called Social Advancement Fund (SAF) by imputing interest on all the grant money it received from various
donors. SAF has been converted into a separate company to carry out its mandate to undertake social advance activities among
the Grameen borrowers, such as, education, health, technology, etc.
|23.0|| ||Loans Paid Off At Death |
| || |
Grameen offers an optional insurance programme called Loan Insurance Programme.
Those who sign up for this programme in case of their death , all outstanding loans are paid off. Under this programme, an
insurance fund is created by the interest generated in a savings account created by deposits of the borrowers made for loan
insurance purpose, at the time of receiving loans. Each time an amount equal to 3 per cent of the loan amount is deposited
in this account.This amount is transferred from the Special Savings account. If the current balance in the insurance savings
account is equal or more than the 3 per cent of the loan amount, the borrower does not need to add any more money in this
account. If it is less than 3 per cent of the loan amount, she has to deposit enough money to make it equal.Coverage
of the loan insurance programme has also been extended to the husbands with additional deposits in the loan insurance deposit
account. A borrower can get the outstanding amount of loan paid off by insurance if her husband dies. She can continue to
borrow as if she has paid off the loan.
Total deposits in the loan insurance savings
account stood at Tk 6,619.72 million (US$ 93.01 million) as on March 31, 2011. Up to that date 196,207 insured borrowers and
insured husbands died and a total outstanding loans and interest of Tk 1729.53 million (US $ 25.56 million) left behind was
paid off by the bank under the programme. The families of the deceased borrowers are not be required to pay off their debt
burden any more, because the insured borrowers or their insured husbands do not leave behind any debt burden to take care
| || ||Each year families of deceased
borrowers of Grameen Bank receive a total of Tk 17 to 20 million (US $ 0.25 million to 0.29 million) in life insurance benefits.
Each family receives Tk 1,500. A total of 133,571 borrowers died so far in Grameen Bank. Their families collectively received
a total amount of Tk 234.68 million (US$ 4.65 million). Borrowers are not required to pay any premium for this life insurance.
Borrowers come under this insurance coverage by being a shareholder of the bank.|
|25.0|| ||Deposits |
| || ||By the end of March, 2011 total deposit in Grameen Bank stood at Tk. 102.67 billion (US$ 1442.59 million).
Member deposit constituted 55 per cent of the total deposits. Balance of member deposits has increased at a monthly average
rate of 1.79 percent during the last 12 months.|
|26.0|| ||Pension Fund for Borrowers |
| || |
optional, but enormously popular programme in Pension Fund Programme.As borrowers grow older they worry about what will happen
to them when they cannot work and earn any more. Grameen Bank addressed that issue by introducing a programme of creating
a Pension Fund for old age. It immediately became a very popular programme.
programme a borrower is required to save a small amount, such as Tk 50 (US $ 0.71), each month over a period of 10 years.
The depositor gets almost twice the amount of money she saved, at the end of the period. The borrowers find it very attractive.
By the end of March 2011 the balance under this account comes to a total of Tk 37.12 billion (US $ 521.52 million). Tk 6.71
billion (US $ 95.93 million) was added during the past 12 months ( April’10 -March, 2011). We expect the balance in
this account to grow by Tk 6.65 billion (US $ 94.17 million) in 2011 making the balance to reach Tk 44.56 billion (US $ 631.04
Loss Reserve |
| || |
Grameen Bank has a very
rigourous policy on bad debt provisioning. If a loan does not get paid back on time it is converted into a special type of
loan called "Flexible Loan", and 50 per cent provisioning is done on the last day of each month. Hundred per cent
provisioning is done when flexible loan completes the second year. At its third year, the outstanding amount is completely
written off even if the loan repayment still continues.
Balance in the loan loss
reserve stood at Tk 5.69 billion (US $ 82.37 million) at the end of 2009 after writing off an amount of Tk 1.53 billion (US
$ 22.11 million) during 2009. Out of the total amount written off in the past an amount of Tk 0.67 billion (US $ 9.72 million)
has been recovered during 2009.
|28.0|| ||Retirement Benefits Paid Out |
| || ||Grameen Bank has an attractive retirement policy. Any staff can retire after completing ten years or more
of service. At the time of retirement he receives a retirement benefit in cash. It is usually paid out within a month after
retirement. Since this benefit was introduced 8,505 staff members retired and received a total amount of Tk 6.43 billion (US
$ 104.84 million) in cash. This amounts to Tk 0.76 million (US $ 12327) per retiring staff. During the past 12 months 741
staff went on retirement collecting a retirement benefit of Tk 1375.30 million (US $ 19.66 million). Average retirement benefit
per staff was Tk 1.86 million (US $ 26,532 ).|
| || |
Grameen Bank has provided loans to 400,794 borrowers to buy mobile phones and offer telecommunication services in nearly half
of the villages of Bangladesh where this service never existed before. Telephone-ladies run a very profitable business with
Telephone-ladies play an important role in the telecommunication
sector of the country, and also in generating revenue for Grameen Phone, the largest telephone company in the country. Telephone
ladies use 2.22 percent of the total air-time of the company, while their number is only 1.89 per cent of the total number
of telephone subscribers of the company.
|30.0|| ||Getting Elected in Local Bodies |
| || ||Grameen
system makes the borrowers familiar with election process. They routinely go through electing group chairmen and secretaries,
centre-chiefs and deputy centre-chiefs every year. They elect board members for running Grameen Bank every three years. This
experience has prepared them to run for public offices. They are contesting and getting elected in the local governments.
In 2003 local government (Union Porishad) election 7,442 Grameen members contested in the reserved seats for women, 3,059
members got elected. They constitute 24 per cent of the total members elected in the seats reserved for women members in the
Union Porishad local government. During 1997 local government election 1,753 members got elected to these reserved seats.|
|31.0|| ||Computerised MIS and
| || |
Accounting and information
management of nearly all the branches (2,565 out of 2,565) has computerised. This has freed the branch staff to devote more
time to the borrowers rather than spend it in paper-work. Branch staffs are provided with pre-printed repayment figures for
each weekly meeting. If every borrower pays according to the repayment schedule, the staff has nothing to write on the document
except for putting the signature. Only the deviations are recorded. Paper work that remains to be done at the village level
is to enter figures in the borrowers' passbooks.
All zones (40) are connected with the
head office, and with each other, through intra-net. This has made data transfer and communications very easy.
|32.0|| ||Policy For Opening
New Branches |
| || ||New branches are required
to fund themselves entirely with the deposits they moblise. No fund from head office or any other office is lent to them.
A new branch is expected to break-even within the first year of its operation.|
|33.0|| ||Crossing the Poverty-Line |
| || ||According to a recent internal survey, 68 per cent of Grameen borrowers' families
of Grameen borrowers have crossed the poverty line. The remaining families are moving steadily towards the poverty line from
| || |
Grameen Bank provides
colour-coded stars to branches and staff for 100 percent achievement of a specific task. A branch (or a staff) having five-stars
indicate the highest level of performance. At the end of December'2010, branches showed the following result.
923 branches, out of total 2,565 branches, received stars (green) for maintaining 100 per cent repayment
19,07 branches received stars (blue) for earning profit. (Grameen Bank as a
whole earns profit because the total profit of the profit-earning branches exceeds the total loss of the loss-incurring branches.)
1,846 branches earned stars (violet) by meeting all their financing out of their earned
income and deposits. These branches not only carry out their business with their own funds, but also contribute their surpluses
to meet the fund requirement of deficit branches.
324 branches have applied for stars
(brown) for ensuring education for 100% of the children of Grameen families. After the completion of the verification processes
their stars will be confirmed. 64 branches have applied for stars (red) indicating branches those have succeeded in taking
all its borrowers' families (usually 3,000 families per branch) over the poverty line.
star will be confirmed only after the verification procedure is completed. Each month branches are coming closer to achieving
new stars. Grameen staff look forward to transforming all the branches of Grameen Bank into five star branches.