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AN OVERVIEW OF GRAMEEN BANK 1. What is Micro credit? The word "micro-credit" did not exist before the seventies. Now it has become a buzz-word among the developing practitioners. In the process, the word has been imputed to mean everything to everybody. No one now gets shocked if somebody uses the term "micro-credit" to mean agricultural credit, or rural credit, or cooperative credit, or consumer credit, credit from the savings and loan associations, or from credit unions, or from money lenders. When someone claims micro credit has a thousand year history, or a hundred year history, nobody finds it as an exciting piece of historical information. It seems microcredit is creating a lot of misunderstanding and confusion in the discussion about micro credit. We really don't know who is talking about what. I am reposing that we put labels to various types of micro-credit so that we can clarify at the beginning of our discussion which micro-credit we are talking about. This is very important for arriving at clear conclusions, formulating right policies, designing appropriate institutions and methodologies. Instead of just saying "micro-credit" we should specify which category of micro-credit. A) B) C) E)

Let me suggest a broad classification of micro-credit Traditional informal micro-credit (such as, moneylender's credit, pawn shops, loans from friends and relatives, consumer credit in informal market, etc.) Micro-credit based on traditional informal groups (such as, tontin, su su, ROSCA, etc.) Activity-based micro-credit through conventional or specialized banks (such as, agricultural credit, livestock credit, fisheries credit, handloom credit, etc.) D) Rural credit through specialized banks. Cooperative micro-credit (cooperative credit, credit union, savings and loan associations, savings banks, etc.) F) Consumer micro-credit. G) Bank-NGO partnership based micro-credit. H) Grameen type micro-credit or Grameen-credit. I) Other types of NGO micro-credit. J) Other types of non-NGO non-collateralized micro-credit. This is a very quick attempt at classification of micro-credit just to make a point. The point is - every time we use the word "micro-credit" we should make it clear which type (or cluster of types) of micro-credit we are talking about. Otherwise well continue to create endless confusion in our discussion. Needless to say that the classification I have suggested is only tentative. We can refine this to allow better understanding and better policy decisions. Classification can also be made in the context of the issue under discussion. I am arguing that we must discontinue using the term "micro-credit" or "microfinance" without identifying its category. . 'Micro-credit data are compiled and published by different organizations. We find them useful. Then we can prepare another set of important information - number of poor borrowers, and their gender composition, loan disbursed, loan outstanding, balance of savings, etc. under each of these categories, country wise, region wise, and globally. These sets of information will tell us which category of micro-credit is serving how many poor borrowers, their gender break-up, their growth during a year or a period, loans


disbursed, loans outstanding, savings, etc. The categories which are doing better, more support can go in their direction. The categories which are doing poorly may be helped to improve their performance. For policy-maters this will be enormously helpful. For analysis purpose this will world of difference. Dr Yunus urge Micro-credit Summit Campaign secretariat to present the information that they already collect on number of clients, number of the poorest among them, number of poorest clients that are women, number of clients that have crossed the poverty line --broken down for each of the categories of micro-credit. This will help donors to select the categories they Would like to support. This sorting out is very important for the donors, as well as the policy-makers. 2. Grameen credit General features of Grameen-credit are (a) It promotes credit as a human right. (b) Its mission is to help the poor families to help themselves to overcome poverty. It is targeted to the poor, particularly poor women. (c) Most distinctive feature of Grameen-credit is that it is not based on any collateral, or legally enforceable contracts. It is based on "trust", not on legal procedures and system. (d) It is offered for creating self-employment for income-generating activities and housing for the poor, as opposed to consumption. (e) It was initiated as a challenge to the conventional banking which rejected the poor by classifying them to be "not creditworthy". As a result it rejected the basic methodology of the conventional banking and created its own methodology. (f) It provides service at the door-step of the poor based on the principle that the people should not go to the bank, bank should go to the people. (g) In order to obtain loans a borrower must join a group of borrowers. (h) Loans can be received in a continuous sequence. New loan becomes available to a borrower if her previous loan is repaid. (i) All loans are to be paid back in installments (weekly, or bi-weekly). (j) Simultaneously more than one loan can be received by a borrower. (k) It comes with both obligatory and voluntary savings programmes for the borrowers. (l) Generally these loans are given through non-profit organizations or through institutions owned primarily by the borrowers. If it is done through for-profit institutions not owned by the borrowers, efforts are made to keep the interest rate at a level which is close to a level commensurate with sustainability of the programme rather than bringing attractive return for the investors. Grameen-credit's thumb-rule is to keep the interest rate as close to the market rate, prevailing in the commercial banking sector, as possible, without sacrificing sustainability. In fixing the interest rate market interest rate is taken as the reference rate, rather than the moneylenders' 'rate. Reaching the poor is its non-negotiable mission. Reaching sustainability is a directional goal. It must reach sustainability as soon as possible, so that it can expand its outreach without fund constraints. (m) Grameen-credit gives high priority on building social capital. It is promoted through formation of groups and centres, developing leadership quality through annual election of group and centre leaders, electing board members when the institution is owned by the borrowers. To develop a social agenda owned by the borrowers, something similar to the "sixteen decisions", it undertakes a process of intensive discussion among the borrowers, and encourage them to take these decisions seriously and implement them. It gives special emphasis on the formation of human capital and concern for protecting environment. It monitors children's education, provides scholarships and student loans for higher education.


For formation of human capital it makes efforts to bring technology, like mobile phones, solar power, and promote mechanical power to replace manual power. Grameen-credit is based on the premise that the poor have skills which remain unutilized or under-utilized. It is definitely not the lack of skills which make poor people poor. Grameen believes that the poverty is not created by the poor; it is created by the institutions and policies which surround them. In order to eliminate poverty all we need to do is to make appropriate changes in the institutions and policies, and/or create new ones. Grameen believes that charity is not an answer to poverty. It only helps poverty to continue. It creates dependency and takes away individual's initiative to break through the wall of poverty. Unleashing of energy and creativity in each human being is the answer to poverty. Grameen brought credit to the poor, women, the illiterate, the people who pleaded that they did not know how to invest money and earn an income. Grameen created a methodology and an institution around the financial needs of the poor, and created access to credit on reasonable term enabling the poor to build on their existing skill to earn a better income in each cycle of loans. Grameen Bank methodology is almost the reverse of the conventional banking methodology. Conventional banking is based on the principle that the more you have, the more you can get. In other words, if you have little or nothing you get nothing. As a result, more than half the population of the world is deprived of the financial services of the conventional banks. Conventional banking is based on collateral, Grameen system is collateral- free. Grameen Bank starts with the belief that credit should be accepted as a human right, and builds a system where one who does not possess anything gets the highest priority in getting a loan. Grameen methodology is not based on assessing the material possession of a person, it is based on the potential of a person. Grameen believes that all human beings, including the poorest, are endowed with endless potential. Conventional banks look at what has already been acquired by a person. Grameen looks at the potential that is waiting to be unleashed in a person. 3. A brief history of Grameen Bank In rural Bangladesh, where financial markets are dominated by informal lenders, financial services targeted to the landless poor by Grameen Bank and non-governmental organization using a similar methodology collectively disburse more credit than public sector institution. With over three million borrowers, and repayment rates on collateral-free loans are as high as 98 percent, Grameen bank has become a model for group based systems of financial and social intermediation throughout the world. It has achieved operational self-sufficiency, and appears to be moving towards full self-sustainability. Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of "Grameen Bank" 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, "these millions of small people with their millions of small pursuits can add up to create the biggest development wonder." As of July, 2004, it has 3.7 million borrowers, 96 percent of whom are women. With 1267 branches, GB provides services in 46,000 villages, covering more than 68 percent of the total villages in Bangladesh. In 1976, Dr. Muhammad Yunus, professor of Economics Department, Chittagong University, started Grameen Bank in a village Jobra in Chittagong, as an experimental project to combat rural poverty by providing credit to the very poor. Because they lacked access to commercial credit, Dr. Yunus perceived, the poor were being exploited in traditional credit markets; as a result they often caught in spirals of increasing indebtedness, forced sells of assets, and increasing destitution. Among the poor Dr. Yunus recognized that rural women were particularly vulnerable because patriarchal norms restricted their ownership and control over assets, as well as their ability to generate income. A group-based system was developed to reduce transaction costs and address the problems of asymmetric information and lack of collateral. The Grameen Bank project came into operation with the following objectives: • Extend banking facilities to poor men and women; • Eliminate the exploitation of the poor by money lenders; • Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh; • Bring the disadvantaged, mostly the women from the poorest household, within the fold of an organization format which they can understand and manage by themselves; • Reverse the age-old vicious circle of “low income, low savings and low investment” into virtuous circle of “more income more savings and more investment”. The action research demonstrated its strength in Jobra (a village adjacent to Chittagong University) and some of the neighboring village during 1976-1979. With the sponsorship of the central bank of the country and support of nationalized commercial banks, the project was extended to Tangail district in 1979. With the success in Tangail, the project was extended to several other districts in the country. In 1983 Grameen Bank became established as a specialized financial institution under Government statute regulated by the Central Bank like commercial banks, but with special mandate to provide financial services to the rural poor. 3.1Grameen Bank- Designed to Open New Possibilities Grameen Bank has come a long way since it began its journey in the village of Jobra in 1976. During this quarter of a century it has faced many operational and organisational problems, gained a lot of experience through its successes and failures. It incorporated many new features in its methodology to address various crises and problems, or utilise new opportunities; discarded and modified the features which became unnecessary or less effective. There were a number of major natural disasters in Bangladesh during the life span of Grameen Bank. The 1998 flood was the worst of all. Half of the country was under floodwater for ten long weeks. Water flowed over the roof-tops for a prolonged period. Grameen borrowers, like many other people of Bangladesh, lost most of their possessions including their houses because of the flood. Grameen Bank, which is owned by the borrowers, decided to take up a huge rehabilitation program by issuing fresh loans for restarting income-generating activities and to repair or rebuild their houses. Soon borrowers started to feel the burden of accumulated loans. They found the new installment sizes


exceeded their capacity to repay. They gradually started to stay away from weekly centre meetings. Grameen Bank repayment started to show quick decline. We tried to improve the situation, but it did not produce desired result. Impact of the post-flood repayment crisis was compounded by its overlap with a recovery problem from an earlier crisis. In 1995, a large number of our borrowers stayed away from centre meetings and stopped paying loan installments. Husbands of the borrowers, inspired and supported by local politicians, organized this, demanding a change in Grameen Bank rules to allow withdrawal of "group tax" component of "group fund" at the time of leaving the bank. It continued for months. At the end we resolved the problem by creating some opening in our rules, but Grameen's repayment rate had gone down in the mean time. Many borrowers continued to abstain from repaying their loans even after the matter was resolved. These external factors reinforced the internal weaknesses in the system. The system consisted of a set of well-defined standardized rules. No departure from these rules was allowed. Once a borrower fell off the track, she found it very difficult to move back on, since the rules which allowed her to return, were not easy for her to fulfill. More and more borrowers fell off the track. Then there was the multiplier effect. If one borrower stopped payments, it encouraged others to follow. When the repayment situation did not improve as desired, we thought this would be a good opportunity to be bold, and to dare to design a new Grameen methodology, incorporating all the lessons learnt, and the wishes and the desires that we accumulated during the quarter century of Grameen's operation. We debated about it. But finally we decided in favour of it. We sat down to design it part by part, piece by piece, then pilot-tested the system quietly in a few branches to fine-tune the design; tried again in larger number of branches; reworked it; and in the end, came up with the architecture of a new system that we all liked. All the 12,000 staff participated very actively in designing the product at all the stages of its development. Some were critical in the beginning, but by the time it was ready, everybody loved it. The staff was electrified with enthusiasm - because response from the borrowers was so positive. Borrowers who did not show up at their centre meetings for years, started showing up to talk about the new system. Soon they were signing up to start all over again and repay the old loans with the accumulated interest. No reduction in the debt was offered. Still they opted to return. The designing process formally began on April 14, 2000 (Bengali New year's day). Fieldtesting began immediately. By the beginning of 2001, the new system, "The Grameen Generalized System" or GGS was ready for launching. We undertook an intensive staff training program for all the 12000 staff. Initially there were signs of reluctance from some staff. There were grumblings, negative jokes, and expressions of frustrations. Some of it we expected, but some we did not. Top management went ahead with understanding and patience. Training continued cycle after cycle. Soon uneasiness about the new system disappeared. Staff became great admirers of the GGS and wanted to put it into immediate implementation in their branches. All the while we were busy designing and debugging the system, our real worry was how to manage the transition from the Grameen Classic System (GCS) to GGS in 41,000 villages without subjecting hundreds of thousands of illiterate borrowers to a big shock, and messing up the accounts in 1175 branches. Transition was very carefully and meticulously choreographed, and put into action by March, 2001. By April, 2002, two years after we began the process, Grameen Bank II has emerged. The transition is now complete. The last branch of Grameen Bank switched over to Grameen II on August 7, 2002, completing the process of transition. The new Grameen Bank II is now a real and


functioning institution. This second generation microcredit institution appears to be much better equipped than it was in its earlier version. In the Grameen Bank II, gone are the general loans, seasonal loans, family loans, and more than a dozen other types of loans; gone is the group fund; gone is the branch-wise, zone-wise loan ceiling; gone is the fixed size weekly installment; gone is the rule to borrow every time for one whole year, even when the borrower needed the loan only for three months; gone is the high-level tension among the staff and the borrowers trying to steer away from a dreadful event of a borrower turning into a "defaulter", even when she is still repaying; and gone are many other familiar features of Grameen Classic System. Central assumption underlying GGS still remains the same as it was behind GCS - the firm belief that the poor people always pay back their loans. On some occasions they may take longer time to pay back than it was originally stipulated, but repay they will. There is no reason for a credit institution dedicated to provide financial services to the poor to get uptight because a borrower could not pay back the entire amount of a loan on a date fixed at the beginning of the disbursement of the loan. Many things can go wrong for a poor person during the loan period. After all, the circumstances are beyond the control of the poor people. We see no reason why the sky should fall on anybody's head because a borrower took longer time to pay back her loan. Since she is paying additional interest for the extra time, where is the problem? We always advocated that microcredit programs should not fall into the logical trap of the conventional banking and start looking at their borrowers as some kind of "timebombs" who are ticking away and waiting to create big trouble on pre-fixed dates. Please rest assured that the poor people are not going to create any trouble. It is us, the designers of institutions and rules, who keep creating trouble for them. One can benefit enormously by having trust in them, admiring their struggle for and commitment to have decent lives for themselves. It is very easy to appreciate the architecture of GGS if one keeps in mind this central assumption behind the system. GGS has been built around one prime loan product - called Basic Loan. In addition, there are two other loan products : 1) the housing loan, and 2) the higher education loan which run parallel to the basic loan. All borrowers start with a basic loan (in Bangla we call it "Shohoj" or "Easy" loan). Most of the borrowers will continue with this basic loan, cycle after cycle, without any difficulty, and meet all their credit needs in the most satisfactory manner. But life does not proceed smoothly for any human being, let alone the poor women. It is likely that some borrowers will run into serious problems, and face difficulties, somewhere along the cycles of loans, in repaying the basic loan according to its repayment schedule. For them GGS has a very convenient arrangement. In GGS, basic loan comes with an exit option. It offers an alternative route to any borrower who needs it, without making her feel guilty about failing to fulfill the requirement of the basic loan. This alternative route is provided through "Flexible Loan". In Bangla, we call it "Chukti" i.e. "contract" or "Renegotiated" loan, because the bank, the group, and the borrower have to go through a process of renegotiation to arrive at a new tract with a fresh repayment schedule for a borrower entering into the flexible loan. Flexible loan is simply a rescheduled basic loan, with its own set of separate rules. I have been describing the basic loan as "Grameen micro-credit highway". As long as the borrower keeps her schedule, she moves forward uninterrupted with ease and comfort on the microcredit highway. She can pick up speed according to the rules of the highway. If she drives well she can shift to higher and higher gear. In other words, on the Grameen highway, a


borrower can routinely upgrade her loan size at each cycle of loan. This is done on the basis of predetermined rules. Source: www.grameen.com She knows ahead of time how much enhancement in loan size is coming, and can plan her activities accordingly. But if a borrower faces engine trouble (business slow-down or failure, sickness, family problems, accidents, thefts, natural disaster, etc.) and cannot keep up with the highway speed, she has to quit the highway and take an exit on to a detour called a "flexible loan" or "flexi-loan". This detour will allow her a slower speed consistent with her situation. Now she can reduce the installment size that she can afford to pay, by extending the loan period. Taking a detour, however, does not in any way imply that she has changed the objective of her journey. She still proceeds with the same objective, but only through a winding narrow road for a while. Her immediate goal is to overcome her problems and take as short a detour as possible to get back to the highway quickly. A borrower may be lucky and succeed in getting back to the highway (i.e. the basic loan) quickly, or she may have sustained problems and the best she can do is to move from one detour to the next (i.e. moving from one flexi-loan to the next flexi-loan, working out an easier repayment schedule than the previous one), delaying the re-entry into the highway. One big disincentive for a borrower to take the flexi-loan detour is that the moment she exits from the basic loan highway, her loan ceiling, that she has built over years, gets wiped out. When she'll re-enter the highway after completing her detour, her loan ceiling will have to be re-constructed. This will be nearer to her entry-level loan ceiling than the loan ceiling she enjoyed immediately before going into the flexi-loan. Flexi-loan is not an independent loan. It is only a temporary detour from the basic loan. A borrower will always make efforts to re-enter the basic loan, because under flexi-loan a borrower can only work within a non-expansionary loop - that is, a borrower can borrow, only the same amount or less, cycle after cycle. Given this unattractive feature of flexi-loan, a borrower would be working hard to get back to the highway to enjoy its facilities. Flexi-loan works as a shoe-horn to get a borrower back to the highway. As soon as the initial amount of flexi-loan is repaid fully, the borrower re-enters the highway. She carries with her all the new loans she took while she was on flexi-loan. It normally takes six months to two years to get back to the highway. That's not a bad deal for a borrower who would otherwise be almost marked for expulsion from the system. Under GGS the borrower continues to remain a valued client all through the process of going in and out of flexi-loan. But there is a cost factor attached to this. Every time a borrower takes the exit from the highway the bank will be required to make 50 per cent provision against the amount of flexi-loan. This is an additional cost to the bank. The bank staff will try to bring this cost to the minimum by designing the basic loan creatively to best fit the borrower's credit need and cash flow. GGS offers this option. This was not available in GCS. Because of this feature of GGS, if experience tells us that the risk of a flexi-loan becoming overdue is very small, we can reduce the percentage of provisioning. If the percentage of flexi-loan is rather small, say, less than 5 per cent, of the total outstanding loan, even 50 per cent provisioning will not show up as a big item of expenditure, compared to the usual alternative of making provisions in a system without flexi-loan. If a borrower cannot stay on the highway (i.e. cannot repay the basic loan installments as per schedule), there is now no need for the bank to trigger actions to mobilise the group and the


centre pressure on her to avert an immediate danger for the group. By providing exit route for borrowers GGS has changed the situation dramatically. Now both the bank and the borrowers can be free from all tension - no more chasing of the problem-borrowers or defaulters. Nobody needs to look at anyone with suspicion. Group solidarity is used for forward-looking joint-actions for building things for the future, rather than for the unpleasant task of putting unfriendly pressure on a friend. If a borrower fails to repay the basic loan and is unwilling to go into the flexi-loan, she becomes a willing defaulter. If a borrower takes the flexi-loan option and tries again and again to repay the money, but still does not succeed, she becomes an unwilling defaulter. Any amount of flexi-loan which does not get paid back within two years it becomes overdue, and 100 per cent provision is made for that amount. Amount that does not get paid back in three years, becomes bad debt, and is written off entirely. Under GGS loans are written off as a part of financial prudence, but the amount is neither forgotten nor forgiven. GGS treats all written-off loans as recoverable loans. My guess is, under GGS, nearly 90 per cent of written-off loans and interest will ultimately be recovered, because the borrowers will pay them back, in their own interest, as and when opportunity arises. Poor people always need money. Their interest is to keep the door to money open. If this door shuts down for any reason, they'll do their best to reopen it - if that option is available. GGS provides this option. There are many exciting features in GGS, but I think removing tension from micro-credit and permanently establishing full dignity to the poor borrowers, are the two most important features of them all. Tension-free microcredit is a great gift of GGS. Now both sides in the micro-credit system, the lender and the borrowers, can enjoy micro-credit, rather than having occasional nightmares created by one for the other. 3.2 General features of Grameen Generalized System i. Custom-made Credit: GGS has created a methodology which can provide custom-made credit to a poor borrower. GCS is still a powerful methodology which demonstrated its ability to deliver microcredit in all types of countries, economies, and cultures. It has done its job in making microcredit a serious business. GGS takes off from where GCS left off. GCS is a "single-size-fits-all" kind of methodology. This feature gives GCS the simplicity which was most needed for the implementation of an idea which was totally unknown to the world. Now microcredit has matured. The world is ready to afford a methodology which can provide custom-made microcredit to the poor. GGS allows loans of any duration, such as, 3 months, 6 months, 9 months or any number of months and years. In its reduced form it can be as simple as GCS. GCS was designed to be operated mechanically. There is only limited scope in GCS for the exercise of judgment by the foot-soldiers of microcredit. GGS is different. It allows a staff to be creative. He can design his loan product to make it a best fit for his client in terms of duration, timing of the loan, scheduling the installment, etc. The more a staff becomes a creative artist, the better music he can produce. The institution can identify the levels of creativity among its staff. GGS allows space for the growth of the staff. An initial level user of GGS can use it almost as GCS by restricting it to one-year loans only. As the user gathers experience he can widen the number of options offered within GGS. Besides duration, size of weekly installments can be varied. A borrower can pay more each week during peak business


season, and pay less during lean period. In an extreme case, each installment can be of different size. In the other extreme, all installments can be exactly equal, like in GCS. An agreed repayment schedule is signed by both the lender and the borrower, before the loan is disbursed. The borrower is obliged to follow the schedule during the loan period. If she fails, she is required to take the detour and move to flexible loan. When a borrower moves to flexi-loan she gets a second chance to work out another repayment schedule, one that is more do-able than the previous one. Suppose a borrower starts with a basic loan for a duration of one year. During the loan period she develops some problem in paying the installments according the schedule she had committed to. No problem. She moves to flexi-loan and converts the one-year loan into, say, a three year loan, making the installments very small and affordable. Even if she has extended the loan period to three years, she does not have to wait three years to access fresh loans. In both basic and flexi-loans, a borrower can borrow after each segment of six months is completed as per schedule. She can borrow exactly the amount she has paid back during the six months - it is like having a cash credit limit with a bank. In case of flexi-loans, a borrower can borrow, after the first six months, as much as twice the amount that she has paid back, if she fulfils certain stringent conditions. She can borrow exactly same amount she has paid back in each subsequent six months. ii. Replacement of Group Fund: One most visible change everybody notices in GGS is the disappearance of Group Fund. Grameen Bank had to keep on defending Group Fund ever since it was created twenty five years back. Now we let it go. There are no more joint accounts. Each borrower will have three obligatory savings accounts - a) Personal savings account, b) Special savings account, and c) Pension deposit account (obligatory only for borrowers borrowing above Tk 8,000). GGS continues with five percent obligatory savings, deducted from the loan amount, at the time of disbursement. But it is no longer called a "group tax". New name is "obligatory savings". Half of this five percent obligatory savings goes to a personal savings accounts, the remaining half goes to a "special savings accounts". A borrower can withdraw any amount from her personal savings account any time she desires. There is no restriction on her withdrawal. Weekly saving still continues. This goes to personal savings account. Special savings account is non-withdraw able for the first three years. Then withdrawal is allowed generally once in three years keeping a minimum balance of Tk 2,000 or half the amount in the account, whichever is larger. Under special circumstances the entire amount in the special savings account can be withdrawn. Some money from this account will be used to buy shares of Grameen Bank. iii. Pension Fund: Leading to Financial Self-Reliance GGS requires all borrowers with loans above Tk 8,000 (US $ 138) to contribute a minimum of Tk 50 (US $ 0.86) each month in a pension deposit account. After ten years a borrower will receive a guaranteed amount which is almost double the amount she has put in during 120 months. This has become an amazingly attractive feature of GGS for the borrowers. Many are coming forward to save more than Tk 50 each month. There are borrowers who are saving Tk 500 per month. While it has become popular with the borrowers, it is generating a huge cash in-flow for the bank. Each month it is now bringing in over Tk 100 million (US $ 1.75 million) as deposits on account of pension savings. Grameen Bank can now rest assured


that it will have enough of its own money to expand its lending operation in future. By the same token, branches will now have enough money to carry out their lending programs with their own deposits. All GB branches can look forward to becoming self-financed. While the institution moves towards financial self-reliance, the borrowers also move to financial selfreliance as old age approaches. They can have monthly income at retirement out of the accumulated savings in the Pension Fund. For a poor woman, it is a very comforting news. iv. Other Savings The new pension fund has become an important savings instrument. GGS emphasizes on receiving deposits from both borrowers and non-borrowers. A variety of savings products has been incorporated in the system. Total amount of deposits account for 67 per cent of the total outstanding loans of Grameen Bank in July, 2002, after paying back Tk 3.3 billion (US $ 60 million) of its loans to the central bank, local commercial banks and the foreign lenders, which fell due during the past 18 months. v. Loan Loss Provisioning and Write-off Policy Grameen Bank has been subjected to sharp criticism for its provisioning and write-off policies under GCS. We always defended ourselves that our policies are more generous than the standard set by the central bank of the country. Source: www.grameen.com Also we find both policies very satisfactory for the financial prudence required in our business. GGS has made these policies still more generous. "Overdue" is defined in a very sharp manner. If a borrower fails to repay her installment for ten consecutive weeks, or if she fails to repay the total amount she is required to pay within a six month period, and she does not move into flexible loan, she becomes a defaulter. If she becomes a defaulter, 100 per cent provisioning must be made for the underpaid principal and interest. Exactly one year later, the amount must be written off. Writing off will be done on a monthly basis, rather than at the time of annual account closing. If a borrower is on flexible loan, generally the same policy will hold. Fifty per cent provision must be made for the total balance amount of flexible loan and accrued interest on the annual closing date, even if the repayment rate of flexible loan is 100 per cent for the whole bank. vi. Loan Insurance Borrowers always worry what will happen to their debt if they die. Will the family members pay off their debt ? They believe that if their debt remains underpaid after their death, their soul cannot rest in peace. Inclusion of loan insurance program in GGS has made them very happy. This has become another popular feature of GGS. The insurance program is very simple. Once a year, on the last day of the year, the borrower is required to put in a small amount of money in a loan insurance savings account. It is calculated on the basis of the outstanding loan and interest of the borrower on that day. She deposits 2.5 per cent of the outstanding amount. If a borrower dies any time during the next year, her entire outstanding amount is paid up by the insurance fund which is created by the


interest income of the loan insurance savings account. In addition, her family receives back the amount she saved in the loan insurance savings account. Borrowers find it unbelievably generous. Everybody loves it. If the outstanding amount remains the same on two successive year-ends, the borrower does not have to put in any extra money in the loan insurance savings account in the second year. Only if the balance is more she has to put in money for the extra amount. Even if the outstanding amount happens to be several times more at the time of her death than what it was on the preceding year-end, under the rules of this program, the entire amount will still be paid off from the insurance fund. The borrowers have good reasons to be happy. vii. Loan Ceiling Grows with the Borrower GCS operated with a loan ceiling for the whole branch. No borrower can take a loan above the ceiling fixed for the branch. On top of it there was a ceiling for the whole zone. Branch ceilings were below or equal to the zone ceiling. GGS has replaced it with a up- gradable able loan ceiling for each borrower. Under GGS there is no ceiling for the zone, and no ceiling for the branch. For basic loan, the ceiling is fixed each time a borrower requests a new loan. It is calculated in two different ways. Higher amount between the two is accepted as the ceiling. Under the first method the ceiling is worked out on the basis of performance (regularity in repayment, attendance in weekly meetings etc) of the borrower, her group, and centre. Under the second method the ceiling is fixed on the basis of the total amount of the savings (excluding personal savings). Ceiling is equivalent to 150% of the total savings. If a borrower has a total saving of Tk 10,000, her loan ceiling will be Tk 15,000. There are many borrowers who have accumulated quite a good amount of saving in their various saving accounts. They can now take large loans too. Under the first method ceiling can go up or down depending on the performance. For example, loan ceiling diminishes by Tk 500 for each day of borrower's absence in the weekly centre meeting. If the repayment record of the entire centre is perfect, her loan ceiling goes up by a fixed percentage. A borrower can enhance her loan size by increasing her savings, or by making sure she, her group, and the centre do all the right things. In flexi-loan, a borrower has no opportunity to enhance her loan size. She can borrow only what she has paid back, except after the first six months, when she can borrow twice the amount she has paid back if she fulfills some stringent conditions. viii. Gold Member ! Then there is the gold membership ! It is a very respectable position to achieve. A borrower who had maintained 100 per cent repayment record (never got off the highway!) for seven consecutive years, is given the status of a gold member. A gold member goes into a faster track of loan enhancement, besides getting special honours and privileges. ix. Destitute Members To encourage destitute members to join Grameen Bank and make them feel comfortable within Grameen Bank, GGS relaxes all the basic rules of GB. A destitute person does not have to belong to a group, no saving is necessary, no weekly repayment is necessary, her loan


terms are decided by her, in consultation with her mentor. Centres will be encouraged to list destitute families in their respective areas, groups will be encouraged to take destitute members "under their wings" and mentor them to help them overcome their fears and inhibitions, give them required business skill, and help them take up income generating activities. Bringing a destitute woman to a level where she can become a regular member of a group will be considered as a great achievement of a group. Groups and centres that accomplish this, will be given special awards, privileges, and honours. In addition to loans, GB will also offer them "venture capital" to partner with them in their micro ventures. x. Building Capacity to Stay Out of Poverty Studies show that Grameen borrowers are steadily moving out of poverty. According to one study, 5 per cent of the borrowers move out of poverty each year (Shahidur R. Khandker, 1998). GGS extends its attention to the children of Grameen families as a part of Grameen strategy to build capacity within families to keep them out of poverty once they have moved out. No slipping back. Grameen Bank has introduced higher education loans for all students from Grameen families who can enter into the higher educational institutions (medical schools, engineering school, universities, professional schools, etc). Loans are given to the students directly, without going through their parents. Student are made responsible to repay the loans when they start earning. Scholarships are awarded every year to the school students from Grameen families, on a competitive basis. Half the number of scholarships are reserved for girl students. Remaining 50 per cent is open for both boys and girls. Each year Grameen Bank gives out 3,704 scholarships, and makes sure each branch can provide at least one scholarship. Gradually the number of scholarships will be increased as more and more students are available to compete for these scholarships. 4. Grameen Bank the first departure from Conventional Banks. Conventional banks are owned by the rich, generally men. Grameen Bank is owned by poor women. The differences between Grameen Bank and conventional banks are given bellow • Overarching objective of the conventional banks is to maximize profit. Grameen Bank's objective is to bring financial services to the poor, particularly women and the poorest - to help them fight poverty, stay profitable and financially sound. It is a composite objective, coming out of social and economic visions. • Conventional banks focus on men, Grameen gives high priority to women. 96 per cent of Grameen Bank's borrowers are women. Grameen Bank works to raise the status of poor women in their families by giving them ownership of assets. It makes sure that the ownership of the houses built with -Grameen Bank loans remain with the borrowers, i.e., the women. • Grameen Bank branches are located in the rural areas, unlike the branches of conventional banks which try to locate themselves as close as possible to the business districts and urban centers'. First principle of Grameen banking is that the clients should not go to the bank, it is the bank which should go to the people instead. Grameen Bank's 13,492 staff meet 4.48 million borrowers at their door-step in 51,687 villages spread out all over Bangladesh, every week, and deliver bank's service. Repayment of Grameen loans is also made very easy by splitting the loan amount in


tiny weekly installment. Way means a lot of going business this work for the bank, but it is a lot convenient for the borrowers. There is no legal instrument between the lender and the borrower in the Grameen methodology. Stipulation that a client will be taken to the court of law to There is no recover the loan, unlike in the conventional system. There is no Provision in the methodology to enforce a contract by any external intervention. Conventional banks go into punishment mode when a borrower is taking, more time in repaying the loan than it was agreed upon. They call these borrowers "defaulters. Grameen methodology allows such borrowers to reschedule their loans without making them feel that they have done anything wrong (indeed, they have not done anything wrong.) When a client gets into difficulty, conventional banks get worried about their money, and make all efforts to recover the money, including taking over the collateral. Grameen system, in such cases, works extra hard to assist the borrower in difficulty, and makes all efforts o help her regain her strength and overcome her difficulties. In conventional banks charging interest does not stop unless specific exception is made to a particular defaulted loan. Interest charged on a loan can be multiple of the principal, depending on the length of the loan period. In Grameen Bank, under no circumstances' total interest on a loan can exceed the amount of the loan, no matter how long the loan remains underpaid. No interest is charged after the interest amount equals the principal. Conventional banks do not pay attention to what happens to the borrowers' families as results of taking loans from the banks. Grameen system pays a lot of attention to monitoring the education of the children. Grameen Bank routinely gives them scholarships and student loans), housing, sanitation, access to clean drinking water, and their coping capacity for meeting disasters and emergency situations. Grameen system helps the borrowers to build their own pension funds, and other types of savings.

Interest on conventional bank loans are generally compounded quarterly, while all interests are simple interests in Grameen Bank. •

In case of death of a borrower, Grameen system does not require the family, of the deceased to pay back the loan. There is a built-in insurance programme which pays off the entire outstanding amount with interest. No liability is transferred to the family. In Grameen Bank even a beggar gets special attention. A beggar comes under a campaign from Grameen Bank which is designed to persuade him/her to join Grameen programme. The bank explains to her how she can carry some 'merchandise' with her4hen she goes out to beg from door to door and earn money, or she can display some merchandise by her side when she is begging in a fixed place. Grameen's idea is to graduate her to a dignified livelihood rather than continue with begging Such a programme would not be a part of a conventional bank's work. Grameen system encourages the borrowers to adopt some goals in social, educational and health areas. These are knows as "Sixteen Decisions" (no dowry, education for children, sanitary latrine, planting trees, eating vegetables to combat night-blindness among children, arranging clean drinking water, etc.). Conventional banks do not see this as their business.


In Grameen, we see the poor people as human "bonsai". If a healthy seed of a giant tree is planted in a flower-pot, the tree that will grow will be a miniature version of the giant tree. It is not because of any fault in the seed, because there is no fault in the seed. It is only because the seed has been denied of the real base to grow on. People are poor because society has denied them the real social and economic base to grow on. They are given only the "flower-pots" to grow on. Grameen's effort is to move them from the “flower-pot” to the real soil of the society.

If we can succeed in doing that there will be no human “bonsai” in the world. We’ll have a poverty free world.

Grameen Bank at a Glance 1.0 Owned by the Poor Grameen Bank Project was born in the village of Jobra, Bangladesh, in 1976. In 1983 it was transformed into a formal bank under a special law passed for its creation. It is owned by the poor borrowers of the bank who are mostly women. It works exclusively for them. Borrowers of Grameen Bank at present own 94 per cent of the total equity of the bank. Remaining 6 percent is owned by the government. 2.0

No Collateral, No Legal Instrument, No Group-Guarantee or Joint Liability Grameen Bank does not require any collateral against its micro-loans. Since the bank does not wish to take any borrower to the court of law in case of no repayment, it does not require the borrowers to sign any legal entrustment. Although each borrower must belong to a five member group, the group is not required to give any guarantee for a loan to its member. Repayment responsibility solely rests on the individual borrower, while the group and the centre oversee that everyone behaves in a responsible way and none gets into repayment problem. There is no form of joint liability, i.e. group members are not responsible to pay on behalf of a defaulting member.

3.0 96 per cent Women Total number of borrowers is 5.44 million, 96 per cent of them are women. 4.0 Branches Grameen Bank has 17,000 branches. It works in 58,806 villages. Total staff is 15,116. 5.0 Over Tk 252 billion Disbursed Total amount of loan disbursed by Grameen Bank, since inception, is Tk 252.27 billion (US$ 5.16 billion). Out of this, Tk 225.31 billion (US$ 4.59 billion) has been repaid. Current amount of outstanding loans stands at TK 26.96 billion (US$ 410.90 million). During the past 12 months (from December 2004 to November 2005) Grameen Bank disbursed Tk. 37.57 billion (US $ 590.76 million). Monthly average loan disbursement over the past 12 month was Tk 3.13 billion (US $ 49.23 million). Projected disbursement for 2005 is Tk 33.00 billion (US $ 547 million), i.e. monthly disbursement of Tk 2.75 billion (US $ 45.58 million). End of the year outstanding loan is projected to be at Tk 27.0 billion (US $ 448 million).


6.0 Recovery Rate 99 percent Loan recovery rate is 98.91 per cent. 7.0 100 per cent Loans Financed From Bank's Deposits Grameen Bank finances 100 per cent of its outstanding loan from its deposits. Over 66 per cent of its deposits come from bank's own borrowers. Deposits amount to 104 per cent of the outstanding loans. If we combine both deposits and own resources it becomes 131 per cent of loans outstanding. 8.0 No Donor Money, No Loans 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. 9.0 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. 10.0 Revenue and Expenditure Total revenue generated by Grameen Bank in 2004 was Tk 4.69 billion (US $ 79.00 million). Total expenditure was Tk 4.27 billion (US $ 71.84 million). Interest payment on deposits of Tk 1.58 billion (US $ 26.58 million) was the largest component of expenditure (37 per cent). Expenditure on salary, allowances, pension benefits amounted to Tk 1.25 billion (US $ 21.00 million), which was the second largest component of the total expenditure (29 per cent). Grameen Bank made a profit of Tk 422 million (US $ 7.16 million) in 2004. Entire profit is transferred to a Rehabilitation Fund created to cope with disaster situations. This is done in fulfillment of a condition imposed by the government for exempting Grameen Bank from paying corporate income tax. 11.0 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% (declining basis) 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 installments, 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. 12.0 Deposit Rates


Grameen Bank offers very attractive rates for deposits. Minimum interest offered is 8.5 per cent. Maximum rate is 12 per cent. 13.0 Beggars As Members Begging is 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, called Struggling Members Programme, to reach out to the beggars. About 42,000 beggars have already joined the programme. Total amount disbursed stands at Tk. 25.42 million. Of that amount of Tk. 10.54 million has already been paid off. 14.0 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 15,000 (US $ 249) to be repaid over a period of 5 years in weekly installments. Interest rate is 8 per cent. 625,716 houses have been constructed with the housing loans averaging Tk 13,296 (US $ 203). A total amount of Tk 8.32 billion (US $ 127 million) has been disbursed for housing loans. During the past 12 months (from December 2004 to November 2005) 22,029 houses have been built with housing loans amounting to Tk 204.72 million (US $ 3.25 million). 15.0 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 631,139 members took micro-enterprise loans. A total of Tk 13.56 billion (US $ 220.77 million) has been disbursed under this category of loans. Average loan size is Tk 21,492 (US $ 328), maximum loan taken so far is Tk 1.2 million (US $ 19,897). 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. 16.0 Scholarships Scholarships are given, every year, to the children of Grameen members, with priority on girl children, to encourage them to get better grades in schools. Each year, about 8,500 children, at various levels of school education, receive these scholarships. 17.0 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 November 2005, 8,325 students received higher education loans, of them 7,712 students are studying at various universities; 97 are studying in medical schools, 204 are studying to become engineers, 312 are studying in other professional institutions. 18.0 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 It obligation to pay all taxes and duties, just like any other company in the country. 1) Grameen Phone Ltd. 2) Grameen Telecom 3) Grameen Communications 4) Grameen Cyber net Ltd. 5) Grameen Software Ltd. 6) Grameen IT Park 7) Grameen Information Highways Ltd. 8) Grameen Star Education Ltd. 9) Grameen Bitek Ltd. 10) Grameen Uddog (Enterprise) 11) Grameen Shamogree (Products); 12) Grameen Knitwear Ltd. 13) Gonoshasthaya Grameen Textile Mills Ltd. 14) Grameen Shikkha,(Fducation) 15) Grameen Capital Management Ltd. 16) Grameen Byabosa Bikash (Business Promotion 17) Grameen Trust 19.0 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: Grameen Fund: Tk 373.2 million (US $ 6.38 million) Grameen Krishi Foundation : Tk 19 million (US $ .33 million) Grameen Motsho (Fisher Jes) Foundation : Tk 15 million (US $.26 million) Grameen Bank provided guarantees in favour of the following organizations while they were receiving loans from the government and the financial organizations. These guarantees are still in effect. Grameen Kalyan (well-being) is a spin off company created by Grameen Bank. Grameen Bank created an internal fund called Social Advancement Fund (SAF) by imputing interest on all the grant money it received from various donors. SAF has been converted into a separate company to carry out its mandate to undertake social advance activities among the Grameen borrowers, such as, education, health, technology 20.0 Loans Paid Off At Death Under Loan Insurance Programme, in case of death of a borrower, all outstanding loans are paid off from the insurance fund. Insurance fund is created by the interest generated, through a savings account created by an annual deposit of the borrowers. Borrowers are required to put amount equal to 3.0 per cent of the loan outstanding on December 31, in a designated savings account. If her present outstanding amount does not exceed the amount outstanding in the previous year, she does not have to add any more money into this account. If it exceeds, then she pays 3.0 per cent of the incremental amount. Total deposits under loan insurance programme stood at Tk 1157.82 million (US$ 18.24) million) as on


April 30, 2005. Up to that date 28,991 borrowers died and a total outstanding loans and interest of Tk 217.05 million (US $ 3.61 million) left behind was paid off by the bank under the programme. Not only the families of the deceased borrower will not be required to pay off their debt burden, they'll get back the entire amounts deposited by the borrowers in their loan insurance savings accounts. By popular demand of the borrowers the coverage of the insurance has been extended also to the death of the husband. For this additional coverage the borrowers have to put double the amount in the loan insurance savings account. 21.0 Life Insurance Each year families -of &ceased borrowers of Grameen Bank receive a total of Tk 8 to 10 million (US $ 0.14 million to 0.17 million) in life insurance benefits. Each family receives Tk 1,500 depending on length of the period during which the deceased was a Grameen Bank borrower. A total of 76,798 borrowers; died so far in Grameen Bank. Their families collectively received a total amount of Tk 150.07 million (US$ 3.41 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. 22.0 Deposits By the end of March, 2005 total deposit in Grameen Bank stood at Tk. 22.85 billion (US$ 360.02 million). Member deposit constituted 66 per cent of the total deposits. Balance of member deposits has increased at a monthly average rate of 3.46 per cent during the last 12 months. 23.0 Pension Fund for Borrowers 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 the programme of creating a Pension Fund for old age. It immediately became a very popular programme. Under this programme a borrower is required to save a small amount, such as Tk 50 (US $ 0.86), 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 April 2005 the balance -under this account comes to a total of Tk 6.40 billion. (US $ 107.74 million). Tk 0.60 billion (US $ 7.90 million) was added during the past 4 months (January-April, 2005). We' expect the balance in this account to grow by Tk 2.20 billion (US $ 36.84 million) in 2005 making the balance to reach Tk 8.0 billion (US $ 132.65 million). 24.0 Loan Loss Reserve Grameen Bank has a very rigorous, 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 at the first annual closing. Hundred per cent provisioning is done when flexible Loan is not paid in 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 2.93 billion (US $ 49.29 million) at the end of 2004 after writing off an amount of Tk 1.59 billion (US $ 26.75 million) during 2004. Out of the total amount written off in the past an amount of Tk 0. 15 billion (US $ 2.52, -million) has been recovered during 2004.


25.0 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 5,325 staff members retired and received a total amount of Tk 2.61 billion (US $ 49.50 million) in ;cash. This amounts to Tk 0.49 million (US $ 9,296) per retiring staff. During the past 12 months 365 staff went on retirement collecting a retirement benefit of Tk 220.00 million (US $ 3.62 million). Average retirement benefit per staff was Tk 0.60 million (US $ 9,918). 26.0 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. 27.0 Computerized MIS and Accounting System Accounting and information management of nearly all the branches (1,259, out of 1,456) has been computerized. This has freed the branch staff to devote more time to the borrowers rather than spend it in paper-work. Branch staff are provided with preprinted 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. Fifteen zones, out of 21, are connected with the head office, and with each other, through intra-net. This has made data transfer and communications very easy. 28.0 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. 29.0 Crossing the Poverty-Line According to a recent internal survey, 55 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 below. 31.0 'Stars' for Achievements 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 2004 branches showed the following result. 892 branches, out of the total of 1,358 branches, received stars (green) for maintaining 100 per cent repayment record.


891 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.) 705 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. 214, 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. 29 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. The 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. ORGANIZATIONAL SIDE OF GRAMEEN BANK 1. Board of Directors Grameen bank is owned by poor and devoted to their welfare. the borrowers own 94% of the share and Bangladesh Government directly or indirectly owns the rest 6%. It is governed by a 13- member board of directors, among whom nine are Grameen Bank Borrowers (poor rural women) and three are government approved senor civil servants. Professor Yunus, the Managing Director of Grameen Bank is a non-voting member appointed by the board. With the exception of professor Yunus, board members serve for three years (a term). ii)Human Recourse Management Grameen Bank has a staff of over 11,800 employees, about 400 based in the head office in Dhaka and the rest in field offices throughout the country. Among the employees 46% officer and the rest are non-officer. Officer level staffs are required to hold a master’s degree and non-officer must have complete higher secondary school, for some lower level position only an eight grade education is required. New recruitment must under go an intensive 12-month training program, divided in two six-month periods. The first six-month period is based at the head office and combines classroom training. After successful compilation, he/she is posted in a branch for on the job training. In addition to the above, the bank offers various types of supplementary training for employees in areas such as computerization, accounts, administration, leadership, and crisis management. Grameen Bank has a unique 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 4,786 staff members retired and received a total amount of Tk. 2.28 billion (US $ 43.86 million) in cash. This amount to Tk 0.48 million (US $ 9,235) per retiring staff. During 2003, 593 staff went on retirement collecting a retirement benefit of Tk 340 million (US $ 5.85 million). Average retirement benefit per staff was Tk 0.57 million (US $ 9,800). 2) Organization Structure Under Grameen Bank’s head office; there are three administration levels (Figure-1). The lowest level is the branch (shakha), which typically contains a staff of ten- a branch manager, a second officer, seven centre managers, and a watchman. The branch is responsible for 60-


70 groups of 50 borrowers (referred to as a kendra, or centers), all in the villages within walking distance. Grameen Bank has 1,326 branches up to November 2004. It works in 47,836 villages. Total staff is 12,546. At the end of November 2004 there were 80,782 centers of Grameen Bank. Branches are supervised by area offices, usually staffed by 4-5 people, each covering 10-15 branches. Area offices are supervised through 18 zonal offices, each with a staff of about 35. Figure-1: Structure of Grameen Bank Grameen Bank Head Office Head Office

18 Zonal Offices

Area Office

Branch Office Branch Office

Branch Office

Branch Office

Branch Office Branch Office Centre 50 members Consist of 10 groups

Groups


3. Human Resource Management Grameen Bank has a staff of 15116 employees, about 400 based in the Head Office in Dhaka and the rest in the Field Office throughout the country. Among the employees 46% are office and rest are non- officer. Officer level staffs are required to hold a Master’s degree with few exceptions and non- officers must have completed higher Secondary School, for some lower level position only an eight grade education is required. New recruitment must go under an intensive 12- month training program, divided in to six- month periods. The first six- month period is based at the head office and combines class room training. After successful completion, he/ she is posted in a branch for on the job training. In addition to the above, the bank offers various types of supplementary training for employees in areas like computer operation, accounting, administrative, leadership and crisis management. Grameen Bank has a unique retirement policy. Any staff can retire after completing ten years or more of service. At the time of retirement he/ she receives a retirement benefit in cash. It is usually paid out within a month after his/ her retirement. Since this benefit was introduced 4,786 staff members retired and received a total amount of Tk. 2.28 billion in cash. This amounts to Tk. 0.48 million per retiring staff. Average retirement benefit per staff was Tk. 0.57 million. PRODUCTS AND SERVICES 1. Loan Products There are three types of loan products that are currently available in Grameen Bank 1. The Basic loan or Easy loan 2. The House loan 3. The Higher education loan 1.1 The Basic Loan The prime product of Grameen Bank is the Basic loan (Shohoj Reen or Easy loan). All the borrowers will start with this loan and continue cycle after cycle. Whatever the needs or the project they have taken, they will get loan from this program @ 20% effective rate. In basic loan a borrower can take loan for any duration such as 3 months, 6 months or 3 years. If any of the borrowers failed to pay installment or can not follow repayment schedule accordingly she will move to the flexible loan. In flexible loan her repayment schedule will become easier to give her chance to get back to the basic loan program again. At the end of 2004, nearly 8% of the borrowers were on flexible loans. Flexible loan is not an independent loan. it is only a temporary detour from the basic loan. A borrower will make no efforts to go back to basic loan. if a borrower fails to repay basic loan and is unwilling to go into flexible loan, she becomes a wiling defaulter. 100% provision is made against her outstanding loans. Flexible loan not paid back in two years become overdue; 100% provision is made in such a case at the end of the following year, it is written off. 1.2 Housing for the poor Grameen Bank introduced housing loan in 1984. It became a very attractive program for the poor borrowers. The ownership of a house infuses people with a sense of confidence, security and self-respect, to begin dreaming for a better life for herself and her family. A member can borrow up to Tk .25000 for constructing a simple tin- roof house at an interest rate of 8 percent to be paid back over a period of ten years. Over 607,000 houses have been constructed with the housing loans averaging Tk. 13,413 (US$222). During 2004, 28,883


houses have been built with housing loans amounting to Tk. 282.05 million (US$ 4.75 million). 1.3 Higher Education Loans In 1997, Grameen Bank introduced the Higher Education Loan programme, in an effort to provide new opportunities for talented children of its borrower to receive higher education. Children of borrowers who enroll in medical schools, engineering schools, honors and master degree programmes, agriculture collages, textile engineering and other higher education programmes, are eligible to receive financing from this loan window. The loans are intended to cover all expenses incurred by students from the beginning of their respective courses until completion, including admission fees, course fees, required stationary, food and accommodation and other related necessary expenses. until the end of the year 2004, 5,257 students from various disciplines have received loans under this program. Disbursement of Higher Education Loan up to December, 2004 Catagories Members Taka Masters(general) 381 6,474599 Bachelor Degree 4,416 81,726,270 MBA 23 543,450 BBA 73 1,671,600 B.Sc (Engineering) 140 3,497,746 M.Sc (Agriculter) 25 676,200 B.Sc (Agriculter) 120 2,918,450 Degree in Medicine 79 2,911,025 Total 5,257 100,419,340 Source: Grameen Bank Annual Report 2004, p-23.

• • • • • •

2. Deposit Products There are several deposit accounts for the Grameen Bank borrowers and non-members. The first three accounts are must for the Grameen Members and except the rest are also open for non-members. Personal Saving Account (PSA) Special saving Accounts (SSA) Grameen Pension Scheme (GPS) Monthly Profit Scheme Double in seven years Scheme Fixed deposit Scheme These deposit Schemes are more attractive than any other commercial banks in Bangladesh. Interest rates of fixed deposit and monthly profit scheme are given bellow Fixed Deposit Maturity Interest 1 Year 8.75% 2 Years 9.25% 3 or more Years 9.50% Monthly Profit Scheme


Maturity More than one year but less than three years More than three years but less than five years More than five years but less than ten years

Rate of Profit 7% 8% 8.5%

3. Other Services Besides these services Grameen Bank also offers some beneficiary services for its members and for the society. These are as follows:

• • • • • •

3.1Struggling Members Program Begging is 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 program called Struggling Members Program, to reach out to the beggars. The basic features of the program are Existing rules of Grameen Bank do not apply to beggar members, they make up their own rules All loans are interest free. Loan can be for very long term, to make repayment installments very small. For example, for a loan to buy a quilt or a mosquito-net. Many borrowers are paying Tk 2.00 (3.4 cents) per week Beggar members are covered under life insurance and loan insurance program without paying any cost. Groups and centers are encouraged to become patrons of the beggar members. Each member receives an identity badge with her picture and name and Grameen Bank logo. Members are not required to give up begging, but are encourage to take up additional income-generating activity like selling popular consumer items door to door, or the place of begging. Objective of the program is to provide financial services to help them find a dignified livelihood send their children to school and graduate into becoming regular Grameen Bank members. Grameen wish to make sure that no one in the Grameen Bank villages has to beg for survival. 3.2 Micro-enterprise Loans Many borrowers are moving ahead in businesses faster than others for many favorable 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 1, 04,580 members took micro-enterprise loans. A total of Tk. 2.30 billion (US $ 39.4 million) has been disbursed under this category of loans. Average loan size is Tk. 21,993 (US $ 376), maximum loan taken so far is Tk.1.0 million (US $ 17,195). 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. Disbursement of Micro enterprise Loans Listed under Broad categories of Business Activities Categories of Female Amount of Loans Activity No. of Loans (In Tk)

Male No. of Loans

Amount of loans (In Tk.)


Livestock Fisheries Trading

and 1,105,341

7,042,100,651

50,988

7,463,431,080

4,532,751,582

37,394

306,754,608

Processing and 577,734 3,911,564,771 Manufacturing Agriculture and 521,501 3,5957,17,205 forestry Shop keeping 370,487 3,357,735295 Services 173,824 1,263,983,695 Peddling 35,521 307,436,621 Total 3,379,568 24,011,289,820 Source: Grameen Bank Annual Report 2004, Page-24.

41,655

595,160

310,024,209

18,644

178,630,764

24,836 14.025 2,005 189,547

232,116,036 110,293,546 14,320,543 1,573,470,135

3.3 Scholarships In order to facilitate better educational opportunities for the children of Grameen Bank members, Grameen Bank launched a Scholarship Program for talented students, in 1999. To encourage schooling of Grameen children , Grameen Bank introduced scholarship program, so that, children from the poor families stay in school, and compete in both academic and extracurricular activities . Priority is given to girls. In Bangladesh education for girls is generally considered as important as boys. Even today, the general attitude of the society is that women are supposed to take back seats and confined themselves in the role of housewives after marriage. At least 50% of the Scholarship money goes to girls and the remaining 50% will be given to both boys and girls based on the overall performance. Scholarships are given annually. Up to December, 2004 Taka 12.30 million ( US $ .22 million) was disbursed among 14,550 students Scholarship Program: 1999-2004 Categories Numbers Girls Boys Primary Junior secondary Secondary Higher Secondary Cultural Total

2,967 1,962 2,825 643 253 8,632

1,469 965 2,699 695 90 5,918

Total 4,436 2,927 5,524 1,338 325 14,550

Source: Grameen Bank Annual Report 2004, page-19 3.4 Loan Insurance Program Under loan insurance program, in case of death of a borrower, all outstanding loans are paid off from the insurance fund. Insurance fund is created by the interest generated though a saving account created by an annual deposit of the borrowers. Borrowers are required to put amount equal to 2.5 percent of the loan outstanding on December 31, in a designated savings account. If her present outstanding amount does not exceed the amount outstanding in the


previous year, she does not have to add any more money into this account. If it exceeds, then she pays 2.5 percent of the incremental amount. 3.5 Life Insurance Each year families of deceased borrowers of Grameen Bank receive a total of Tk 8 to 10 million (US $ 0.14 million to .17 million) in life insurance benefits. Each family receives Tk.2, 000 or Tk.1, 000 depending on length of period during which the deceased was Grameen Bank borrower. A total of 67, 221 borrowers died so far in Grameen Bank. Their families collectively receive a total amount of Tk. 133.33 million (US $ 3.14 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. 3.6 Village Phone To-date Grameen Bank has provided loans to 118,842 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 these phones.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 16 per cent of the total air-time of the company, while their number is only 4 per cent of the total number of telephone subscribers of the company. Progress of Village Phones to December, 2004 Zone

No. of branches

Village phones owned by Bank Members


Narayanganj Rajshahi Bogra Dhaka Khulna Noakhali Mymenshing Comilla Rangpur Chittagong Faridpur Sylhet Jamalpur Dinajpur Patuakhali Tangail Hobiganj Nilphamary

69 88 104 78 75 72 60 69 77 76 75 58 46 64 94 67 35 43

9,091 8,942 8,464 7,724 6,800 6,523 5,850 5,285 4,876 4,726 4,517 4,294 3,449 3,228 2,577 2,352 2,237 1,738

Total

1,250

92,673

Source: Grameen Bank Annual Report 2004 Page-21. INTEREST RATE OF GRAMEEN In the last Micro credit summit, held in Bangladesh in year of 2004, the most controversial issue was the interest rate of the Microfinance Institution. Our finance Minister was arguing that the interest rate is much higher than it should be. On the other hand, Professor Yunus was arguing interest rate is higher because of the operation cost, and Grameen is offering the lower interest rate in Bangladesh. 1. Interest Rates Currently Grameen is offering the following interest rates for their loan products: Basic Loan House Loan Higher Education Loan Special Investment Program Loan Loan For Beggars

20% 8% 5% 20% 0%

There are four interest rates for loans from Grameen Bank: 20% (declining basis) for incoming 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 incoming-generating loan of say, Tk. 1, 000, and pays back the entire amount within a year in weakly installments. 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. Their way of calculation, Loan amount: Tk. 1, 000 Pay back period: 1 Year (45 Weeks) Interest Calculation= {(operating balance-closing balance)/2} * IR = {(1000-0)/2} * 20%= 100 Installment 1100/45=24.45 Flat Rate 10% Government of Bangladesh has fixed interest rate for government-run micro-credit programs at 11 percent at flat rate. It amounts to about 22 percent at declining basis. Grameen Bank’s interest rate is lower than government rate. 2. Sustainable Interest Rate To find the sustainable interest rate this paper used the CGPA method to calculate the sustainable interest rate. The formula in this paper generates the interest rate, which will be required, when the MFI (Microfinance Institute) moves beyond dependence on subsidies. An MFI that wants to reach commercial sustainability should charge such an interest rate even though it may be receiving subsidized support over the near term. Note that as long as an MFI is receiving significant subsides; its net worth will actually grow faster than the “capitalization rate” projected here, because the computations in this paper do not take into account the financial benefit of those subsides. As Grameen is paying back all it’s subsidized foreign loan this will be appropriate for Grameen. The formula is R= (AE+CC+LL-II)/(1-LL) Where, R= Sustainable Interest Rate AE=Administrative Expenses CC=Cost of Capital LL=Loan Loss II=Investment Income Sustainable interest rate for Grameen (with subsidy) is 17.88%. 3. Actual Interest Rate To calculate the actual interest rate of Grameen, the following formula is used R=

Interest In cone____________ Average Loans & Advance In 2003, R= _ 2,737,977,352______________ (14,857,747,157+11,382,992,459)/2 R=20.9% (excluding provision)


So, Grameen is well above the sustainable interest rate in 2003. And if we look at the figure 9, we can see that except 2000 and 2001 Grameen was well above the sustainable interest rate. In 2001, their bad loan was 717.40 million, which was 7.34% FINANCIAL PERFORMANCE Understanding the sources of its success (or failure) requires an evaluation of how it works as a financial institution and as the program for poverty alleviation. Grameen Bank operates in a credit market that is characterized by imperfect information and imperfect enforcement; two common sources of the failure of many Development Financial Intermediaries in many countries ( Khandker, Khalily, Khan., 1994). Let’s have a look how Grameen Bank grows over the year in the past and its current performance. 1. Growth in operations Total amount of loan disbursed by Grameen Bank, since inception, is Tk 252.27 billion (US$ 5.16 billion). Out of this, Tk 225.31 billion (US$ 4.59 billion) has been repaid. Current amount of outstanding loans stands at TK 26.96 billion (US$ 410.90 million). During the past 12 months (from December 2004 to November 2005) Grameen Bank disbursed Tk. 37.57 billion (US $ 590.76 million). Monthly average loan disbursement over the past 12 month was Tk 3.13 billion (US $ 49.23 million). Projected disbursement for 2005 is Tk 33.00 billion (US $ 547 million), i.e. monthly disbursement of Tk 2.75 billion (US $ 45.58 million). End of the year outstanding loan is projected to be at Tk 27.0 billion (US $ 448 million). 2. Deposit Both member and non-member deposit has increased steadily in 2003. The year started out with a total deposit of Tk 8.95 billion (US $ 145.6 million) and ended with Tk. 13.31 billion (US $ 227.66 million). Member deposit increased by Tk. 2.66 billion (US $ 44.33 million) from Tk 7.31 billion (US $ 126.17 million) to Tk. 9.97 billion (US $ 170.61 million). In 2003. Growth tare was 35 %. Growth rate for non- member deposit was 102%. It has increased by Tk. 1.68 billion (US $ 28.57 million) from Tk 1.65 billion (US $ 28.48 million 0 to Tk. 3.33 billion ( US $ 57.05 million ) , in 2003. Total deposit is expected to increase to Tk 19.00 billion (US $ 325.06 million) in 2004, while outstanding loan is expected to stand at Tk. 20.00 billion (US $ 342.17 million 0 by the end of 2004. By the end of March, 2005 total deposit in Grameen Bank stood at Tk. 22.85 billion (US$ 360.02 million). Member deposit constituted 66 per cent of the total deposits. Balance of member deposits has increased at a monthly average rate of 3.46 per cent during the last 12 months. 3. Property and Assets Analysis 0f Grameen Banks balance sheet shows a steady growth in assets from 19.6 billion Tk. 1n 1998 to 23.6 billion Tk. in 2003 two thirds of Grameen Banks’ property and assets was in the form of loans and advances, mostly to members and to some staff. A little less than a fifth of assets were in the form of fixed deposits with commercial banks and Government treasury bills, and about a tenth was in interest receivable on loans. Fixed assets (including building, vehicles and office equipment) amounted 4 % 0f assets.


4. Profitability Grameen Bank has run at profit in most years with the exception of 1983, 1991 and 1993, when sudden employee salary increases mandated by the Government forced overall cost of operation to go up. But in the recent year there is a boost in the profit earnings. Performance Indicators and Ratio Analysis

2002

2003

2004

1 Total Assets ( in million Tk.)

22,659

27,272

33,653

2 Number of employees

1,332

1,357

1,525

Institutional Characteristics

Outreach Indicators 3 Numbers of Branches

1,178

1,195

1,358

4 Numbers of Members ( in million)

2.48

3.12

4.06

5 Number of active borrowers ( in million)

2.08

2.87

3.70

Number of active borrowers per branch

1,766

2,402

2,722

6 Return on equity 7 Operating self sufficiency 8 Financial self sufficiency Assets /Liability management

2.93% 10.63% 24.72% 102.00% 111.10% 109.88% 99.60% 107.88% 105.70%

9 Yield on gross portfolio 10 Cost of fund ratio Port folio Quality

17.98% 5.19%

18.51% 6.18%

18.89% 7.15%

1.77%

2.84%

2.94%

291 11.19% 8.70% 714 1.78

399 10.52% 8.12% 614 2.25

487 9.22% 6.88% 509 2.65

9.70

19.30

16.51

11 Portfolio at risk ratio Efficiency and productivity ratios 12 Productivity per loan officer 13 Operating expense ratio 14 personnel expense/ Loan portfolio 15 Cost per borrower (in Tk) 16 Portfolio per loan officer (in million Tk) Financing Structure: 17 Capital adequacy ratio

Source: Grameen Bank at a Glance November 2005


The figure given below shows Grameen Bank monthly update of its financial position. SI. No. Particulars In million US$ 1.0 Cumulative Amount Disbursed Since Inception 5,059.44 2.0 Cumulative Amount Repaid Since Inception 4,509.83 3.0 Amount Disbursed this month 49.87 4.0 Amount Repaid this month 39.57 5.0 Outstanding Loans 5.1 Basic Loan 350.15 5.2 Flexible Loan (a) 23.51 5.3 Housing Loan. 12.12 5.5 Other Loans. 3.15 5.5 Total (b): 388.93 6.0 Rate of recovery 98.98 7.0 Total Outstanding of Borrowers Missing 5 to 9 Consecutive Installments (d) 7.1 Basic Loan 0.94 7.2 Flexible Loan 2.58 7.3 Total: 3.52 8.0 Overdue Loan (e) 8.1 Basic Loan (f) 1.209 8.2 Flexible Loan 4.543 8.3 Housing Loan 1.699 8.4 Other Loans 0.002 8.5 Total: 7.542 9.0 Micro enterprise Loan (Cumulative) 9.1 No. of Micro enterprise 575,464 9.2 Amount Disbursed 202.30 9.3 Amount Repaid 111.99 10.0 Balance of Deposits 10.1 Member’s Deposit 275.52 10.2 Non-Member’s Deposit 154.72 10.3 Total 430.24 11.0 Deposits to outstanding 11.1 Deposits as Percentage of Outstanding 111 Loans 11.2 Deposits and Own Resources as Percentage 134 of Outstanding Loans 11.3 No. of Branches with more in Deposits than 841 in Outstanding Loans Source: Grameen Bank Monthly Update in US $ : September, 2006 Note: Current exchange rate : 1 US $= Tk. 65.35 LOAN MANAGEMENT PROCESS OF GRAMEEN BANK 1. Credit policy and process Unlike most historical bureaucracies, Grameen Bank did not have to initiate a deliberate decentralization exercise because it evolved into decentralization organization as the part of its growth process. With the devolution of many decision making roles to the field officers,


the head office can focus broader issue of policy and development. In this section the loan policy and the credit delivery system of Grameen Bank will be discussed. Highlights of the Grameen bank loan policy is given bellow: • • • •

• •

1.1 Basic loan or Easy loan Basic loan or easy loan could be of the duration of 3 months to 3 or more years and the rate of interest rate is 20%. New member’s loan limit will be Tk. 5000 but according to the rule, any amount below Tk 5000 can be issued. No matter what amount was taken in the first time, the loan limit will be Tk. 6000 in the next time of taking loan after 45 weeks. At the time of fixing next loan limit, the new limit can be increased by 10% of the amount of loan repaid without missing any installment or interest. Attendance in the Centre meeting is mandatory. If a member fails to attend 2 days in 26 weeks and maximum 4 days in a year then she/he will be beyond this rule. Even during the days of absence, a member must maintain their loan installment and saving. If she/he fail to pay the installment the loan limit will be reduced. Loan repayment Schedule House loan installment, Special Investment Program Loan and Basic Loan installment will be consolidated to a single installment The minimum weekly installment per thousand will be based on the Maturity of the loans as follows :

Less than 1-Year Basic loan installment Tk. 0.00+ Tk 5.00; fully repaid within duration fixed duration 1- Year Maturiy Basic loan installment Tk10.0+ Interest Tk. 3.00; mini mum principal repayment is Tk. 500.00 within 26 weeks. 2-Years Maturity Basic loan installment Tk 5.00 + Interest Tk. 3.00; minimum principal repayment is Tk.250.00 within 26 weeks. 3- Years Maturity Basic loan installment Tk. 3.33 + Interest Tk. 4.00; minimum principal repayment is Tk. 167.00 within 26 weeks. 3-Years and above Basic loan installment Tk. Tk.2.50 + Interest Tk. 4.00; minimum principal repayment is Tk. 125.00 with in 26 weeks. For every loan disbursement, the loan repayment schedule has to be designed based on the above prescribed format. If the amount repaid is less than prescribed installment, then that installment can be accepted. But if the amount is even Tk, 1.00 less than the prescribed amount, will be consider that member has missed the installment. •

Sometimes a bigger installment and sometimes a smaller installment can be fixed. But that will be clearly defined in the repayment schedule. Before the completion of the loan duration, anytime the member can repay the full loan. But at the time of taking the new loan, even if it is the middle of the year, the loan limit has to be redefined. 1.2 Maturity of loan Maturity can be fixed though discussion with member. Based on the objective of loan, maturity for loan can be fixed from 3-months to 3 years or more having 3 months gap. Maturity for


Special Investment Program Loan will be also as above i.e. 6 months, 9 months or 15 months or 20 months. The maturity of loan must be highlighted in loan sanction document, repayment schedule, pass book and loan ledger. 1.3 Loan proposal and loan sanction  A member will submit loan proposal through group and center. Gradually, it will come to bank after getting recommendation group and center.  In case of distribution above Tk. 50, 000 basic loans, document has to be prepared and edited on appropriate stamp. Borrower will bear the cost of the stamp. *1) 45 weeks is equivalent to 1 year in case of Basic loan. Meaning after deducting bank holidays it will be 45 weeks. 2) 13 weeks means 13 minus back holiday and 26 weeks means 26 minus back holidays. 1.4 Loan repayment  Loan agreements (Schedule of loan repayment Appendix 1) have to be prepared after discussing with and getting assent of member based on purpose of loan, nature, duration and amount of the loan. With in 26 weeks of getting loan, Loan agreement can’t be changed. After 26 weeks fresh loan agreement can be prepared whether he/she takes new loan or not.  At the time of one-year basic loan agreement, make sure that at least half of the loan will be repaid with in first 6 months (26 weeks). 1.5 Interest payment  The interest payment of basic loan is Tk. 3.00 per thousand for one year to less than 3 years loan and Tk. 4.00 per thousand for 3 years and above. If collected amount is less than the installment than the amount must be adjusted with interest payment first and with loan payment later. 1.6 For new members Branch Manager can give loan to all member of a new group simultaneously. If he/she thinks necessary, he/she can give gradually in terns. Highest Tk. 5000 can be given to any member for the first time. 1.7 Special Investment Program  To utilize special investment opportunity, loan of big amount crossing the member’s loan limit can be given. This type of Basic loan will be titled as Special Investment Program Loan. Characteristics of this type of the loan are;  This loan can be issued for Polli Phone Leasing, Cattle loan, House loan, Bridge loan etc.  At the first time up to Tk. 20,000 Special Investment Program Loan (excluding Cattle and Polli phone) can be issued for a member. This amount can be increased in special case.  A member can take Polli phone loan in addition to cattle loan. But he/she can never take more than two Special Investment Program Loans simultaneously. 1.8 House loan under Special Investment Program  A member will be allowed to take House loan above Tk. 25,000 if he/she quality for that loan. But this extra amount has to be taken under Special Investment Program @ 20% interest.


 One member can not take above Tk. 25,000 at a time or in installment as house loan @ 8%. To take more than this amount, he/she has to take under Special Investment Program Loan @ 20% interest. 1.9 Saving and Compulsory saving All members will have three saving accounts:• • •

Personal Saving A/c (PSA) Special Saving A/c (SSA) GPS (If the amount of the loan is more than Tk. 8 thousand)

 Every time the member takes a loan, he/she has to deposit 5% of the loan as saving. Half of it will be deposit in the PSA. The other half in the SSA. After every 3 years members can withdraw money from the SSA, if there is any interest due, after adjusting the due amount member can withdraw balancing amount.  The first share should be bought for Tk. 100 from the amount saved in the SSA. After this, the members can buy more share of GB from time to time with the money from SSA. Members can withdraw money once after completing first three years. If the amount in his/her account is more than Tk. 4000, he can withdraw half of the money from the A/C. If the money in the account is less than Tk. 4000, than at least Tk. 2000 should be left in the account and the rest can be withdrawn. If the amount of the saving is less than Tk. 2000, member cannot take out any money until it becomes more than Tk. 2000 in the account. Member should be encourage to open ‘double in 7 years’ or any other deposit scheme with withdrawn amount. The interest or profit received on the Special Saving Account has to be deposit in the SSA. A member can take out his/her money at the time of leaving the group. Based on the loan amount, weekly personal saving rate will be fixed as follows: Loan amount Weekly saving Up to Tk. 15000.00 Tk. 5.00 15001.00 to 25000.00 10.00 25001.00 to 50000.00 15.00 50001.00 to 100000.00 25.00 100001.00 to more 50.00  Up to Tk. 8000 basic loan will be GPS free. It means, to take above Tk. 8000 basic loan, one must open a GPS Account of minimum Tk. 50.00. In this case additional Tk. 10.00 has to be collected along with weekly saving. A member can declare of transferring money GPS Account from his/her personal saving account in a written form. A member, if he/she wishes so, can open one or more GPS Account with higher amount. 1.10 House loan Type, amount and duration of House loan: House loan SI. No. Type Pre Basic House loan Basic House loan Small House loan Full Basic House loan

Amount Up to Tk. 5,000 5,001-7,000 7,001-12,000 12,001-25,000

Duration 3 years 4 years 6 years 10 years


 Among four types of House loan, a member can take only one type of loan at a time and after repayment of one house loan he/she can take another House loan of same type or different type. He/she can take maximum Tk. 25,000 loan @ 8% interest. 1.11 Flexible loan Whenever a member fails to pay as per schedule his/her Basic loan installments, he/she must be brought under the alternative Flexible loan. Though this Flexible loan, the situation of the member will be analyzed and a new revised schedule repayment and maturity will be designed so that the member can meet them conveniently. It will be the responsibility of the group and the center, to analyze the member’s situation carefully and design schedule and maturity in which the member can repay the loan successfully and can again come back to the Basic loan program. 2. Credit Delivery System Grameen Bank credit delivery system has the following features: 1. There is an exclusive focus on the poorest of the poor. Exclusivity is ensured by: i. Establishing clearly the eligibility criteria for selection of targeted clientele and adopting practical measures to screen out those who do not meet them. ii. In delivering credit, priority has been increasingly assigned to women. iii. The delivery system is geared to meet the diverse socio-economic development needs of the poor. 2. Borrowers are organized into small homogeneous groups Such characteristics facilitate group solidarity as well as participatory interaction. Organizing the primary groups of five members and federating them into centres has been the foundation of Grameen Bank’s system. The emphasis from the very from the very outset is to organizationally strengthen the Grameen clientele, so that they can acquire the capacity for planning and implementing micro level development decisions. The centres are functionally linked to the Grameen Bank, whose field workers have to attend Centre meeting every week. 3. Special loan conditions, which are particularly suitable for the poor. These include: i. Very small loans given without any collateral. ii. Loans repayable in weekly installments spread over a year. iii. Eligibility for a subsequent loan depends upon repayment of first loan. iv. Individual, self chosen, quick incoming generating activities which employ the skills that borrower already posses. v. Close supervision of credit by the group as well as the bank staff. vi. Stress on credit discipline and collective borrower responsibility or peer pressure. vii. Special safe guards through compulsory and voluntary savings to minimize the risks that the poor confront. viii. Transparency in all bank transaction most of which take place at centre meetings. 4. Simultaneous undertaking of a social development agenda addressing basic needs of the clientele. This is reflected in the “sixteen decisions” adopted by Grameen borrowers. This helps to: i. Raise the social and political consciousness of the newly organized groups. ii. Focus increasingly on women from the poorest households, whose urge for survival has a far greater bearing on the development of the family. iii. Encourage their monitoring of social and physical infrastructure projects- housing, sanitation, drinking water, education, family planning, etc.


5. Design and development of organizing and management systems capable of delivering program recourses to targeted clientele. The system has evolved gradually through a structured learning process that involves trials, errors and continuous adjustments. A major requirement to operate the system is the special training needed for development of a highly motivated staff, so that the decision making and operational authority is gradually decentralized and administrative functions are delegated at the zonal levels downwards. 6. Expansion of loan portfolio to meet diverse development needs of the poor. As the general credit program gathers momentum and the borrowers become familiar with credit discipline, other loan programs are introduced to meet growing social and economic development needs of the clientele. Besides housing, such programs include: i. Credit for building sanitary latrines. ii. Credit for installation of tubewells that supply drinking water and irrigation for kitchen gardens. iii. Credit for seasonal cultivation to buy agriculture inputs. iv. Loan for leasing equipments/machinery, i.e., cell phones purchased by Grameen Bank members. v. Finance projects undertaken by the entire family of a seasoned borrower. The underlying premise of Grameen is that, in order to emerge from poverty and remove themselves from the clutches of usurers and middlemen, landless peasants need access to credit, without which they cannot be expected to launch their own enterprise, however small these may be. In defiance of the traditional rural banking postulate whereby “no collateral (in this case, land) means no credit”, the Grameen Bank experiment set out to provesuccessfully- that lending to the poor is not an impossible proposition; on the contrary, it gives landless peasants the opportunity to purchase their own tools. Equipment or other necessary means of production and embark on incoming-generating ventures which will allow them escape from the vicious cycle of “low income, low savings, low investment, and low income”. In other words, the banker’s confidence rests upon the will and capacity of the borrowers to succeed in their undertaking. 3. Mode of Operation A bank unit is set up with a Branch Manager (BM) and a member of Centre Manager (CM). It covers an area of about 15 to 22 villages located in one or at most two unions in the vicinity of the unit. Any person belonging to a household owning up to 50 decimals of cultivable land is eligible for the loan. Recognizing that most of target group is illiterate and shy to come to the banks, the banking service is bought to their doorsteps. The Branch manager and the CMS at first move around the villages to identify the prospective clientele by explaining the purpose function of the bank to the villagers. To get credit the loan taker must from a group of five like-minded persons with similar economic and social status. Each group elects its chairman and sectary and must hold weekly meetings. A number of groups are federated into a centre and elected centre chief conducts weekly meeting of the groups. She is also responsible for the observance of the rules prescribed by the bank. Relatives or male and female members can not form groups. Before a group is enlisted Center Manager trained them about the rules and regulations of the bank and also collects the necessary information about their economic condition by filling up a prescribed questionnaire whether they are eligible to be a member of the bank. On the day of enlisting them Branch Manager and Program Officer of the area office come and asked different questions to know they really understand and learn the rules and regulations of the bank.


Loans are give to all the five members of a group at a time if they want. The loan take is alone responsible for her/ his loan although an informal interlocking responsibility exists among the members in a group. Once a new group is formed it is kept under observation for a month to see whether the members are conforming the discipline of the bank or not. During the period the Center Managers teach them to put signature. After the observation period is over, members are selected and allowed to take loan. The loan is to be repaid in weekly installments as per agreed loan schedule. The loan utilization and repayment behavior of the group are observed and after 26 weeks, if they behave properly, the group becomes eligible for receiving other loans and services of the bank. If one of the members defaults the whole group becomes ineligible to get repeat loans. The bank workers pay a very important role in informing the groups and in disbursement of the loans and collection of repayments. He attends the Centre meeting where loan proposals of individual member’s are discussed. Once a loan proposal is accepted, the credit is disbursed by the Centre Manger in weekly meetings. The weekly installment of the repayment is also collected by the Center Manager when she/ he attend the weekly meeting of the Center. The loan taker thus does not have to come to the bank. A male Centre Manager is responsible for serving about 250 members and female servers 150 members. The process of Grameen Bank is quite distinctive and the traditional financial organizations can also adopt the Grameen model for monitoring and controlling after making necessary adjustment to suit its own environment. 4. Method of action Grameen Bank’s method of action can be illustrated by the following principal • • • • • • • • • •

Start with the problem rather than the solution, a credit system must be based on a survey of social background rather than on a pre established banking technique. Adopt a progressive attitude; development is a long term process, which depends on the aspiration and commitment of the economic operation. Make sure that the credit system serves the poor, and not vice- versa, credit officer visit the villages, enabling them to get to know the borrowers. Establishing priorities for action vis-à-vis to the target population, serve the most poverty- stricken people needing investment resources, who have no access to credit. Ta the beginning, restrict credit to income generating activities, freely selected by the borrowers .Make it possible for the borrower to be able to repay the loan. Loan solidarity groups, small informal groups consisting of co- opted members coming from the same background and trusting each other. Associate saving with credit without being necessarily a prerequisite. Combine close monitoring of borrowers with procedures which are simple and standardize as possible. Do everything possible to ensure the system’ financial balance. Invest in human resources, training leaders will provide them with real development ethics based on rigor, creativity, understanding and repeat for the rural environment.

5. Causes of High recovery rate I. The program is well designed: Most poverty focused programs (PFP) tried in the poor countries are not properly designed as such the target population is either missed of the


non poor infiltrate into these programs and reap the benefits by virtue of heir enhanced socio-political power. Dr. Yunus, elsewhere, identified the following reasons which stand on the way of reaching poor. • The PFP is not really concerned whether it reaches the address or not. • PFP package reaches the destination, but despite colorful warp-around, it runs out to be an empty box. • Because of mishandling by the couriers along the way the content never reaches the addressee in any useful form. • Addressee is totally apathetic to the PFP which has been delivered to his doorstep. He never cares to try it. If he had tried, he would have liked it but nobody took time to bring him out of his shell and arouse his interest in something new. Grameen Bank seems to have taken care of some of these weaknesses and as such is emerging as a successful PFP program with credit as its core component. It is based on a very simple economic rationale- if financial resources are made available to the poor at reasonable terms and conditions they can generate productive self-employment without external assistance. Grameen Bank has been applying this simple model in about many villages through an institutional arrangement which looks innovative and participative. II. Closeness to the borrowers: While identifying criteria for success of those companieswhich can be branded as “excellent” in the context of American business world. Thomas J. Peters and Rovert H. Waterman came very strongly in favor of the element close to the customer. According to them: “The companies learn from the people they serve. They provide unparalleled quality, service, and reliability. Everyone gets into the act. Many of the innovative companies got their best product ideas from customers. That comes from listening intently and regularly.” Grameen Bank is very serious on this aspect. Ii has by now developed a very close relationship with the borrowers. And has been emphasized the poorest stratum of the rural society are its borrowers. GB puts hard barricades in front of the non-poor so that they cannot get any entry into its credit programmer. One strategy of achieving this objective GB always starts its operation with the woman. III.Peer pressure and the process of Group Formation: To get GB loans, the prospective borrowers must form a group of five like-minded persons with similar economic and social status. Each group elects its own chairman and secretary and must hold weekly meetings of the groups. This group formation is the insurance against any pitfalls of GB loans recovery. It helps create the right kind of peer pressure at times when a member tries to violate GB rules and again peer support at times of difficult of any member helps a loanee overcome such difficulties. IV. Slow and Steady Approach of GB: A GB branch gets into operation in a slow and easy manner. While opening a new branch, Manager and his associate will arrive in a village were GB wants to set up a branch. They will have no office, no place to stay, no one to get in touch with. Their first assignment is to understand and document everything about the area which may come under the coverage of the proposed branch. He and his associate walks miles after miles everyday to talk to people, answer questions. People get puzzled at first at the modest approach of these GB persons. As the days pass, they begin to see them more respectfully. Even the rural power structure at times gets neutralized at the humble approach of GB way of organizing the rural poor.


It is not the words, but his (GB Manager) hard work which soften the attitude of the rural people. Even if you do not like his ideas, you get convinced that he is trying hard to reach the poor; he is not doing something for his personal gain. All these work in fervor of better response from the people especially the rural poor who have decided to join GB. V. Ensuring Loan Utilization: Once a member or other of a group has decided to take loan it is strictly monitored, especially, with regards to utilization. If one member has taken a loan, other members of the group watch him/her utilize it for the purpose it has stated in the loan application form. Moreover, Bank worker gives a form called Loan Utilization Form along with the loan. The loanee has to return this form duly signed by the loanee, the group chairman, the centre chief and of course, the Bank worker. At each stage, the person signing this form is supposed to check whether the loan has been put to use for which he/she promised in the loan application. The Manager normally checks these applications and may decide to see physically if not 100 percent; at least 25% of the loanee’s to find out whether they have utilized the loans properly or not. VI. Loans to Appropriate Activities: Loans are provided to activities which generate regular incomes. This is needed to pay weekly installments. VII. Small installments: The producer of collecting repayment in small amounts through weekly installments helps GB loanee to keep their repayment record straight. It so happens that since the repay small installments out of their incremental incomes. At the end of the entire loan repayment cycle, they are normally seen to retain at least the initial loan amount even after repayment. They may hold the amount either in cash or in kind. This help the loanee’s in expanding the resource base in the future cycles of loan utilization. VIII. Incentives of Repeat Loan: Of late, it is being increasingly emphasized that if the loanees are sure that they would get new loans once they have repaid, they would like to repay their past loans. Grameen Bank is trying to follow this principle. In fact if the past record of repayment is satisfactory, the loanee get next loan within just a week of the payment of the last installment. GB members by and large believe that they will get repeat loan if they continue to repay loan without default. IX. Consciousness-raising Efforts of GB: Although GB always defends itself to be a bank per excellence it indulges in a number of consciousness-raising efforts. All these make GB loanees much more conscious clients in terms of social philosophy and the realities around. These work as cementing force and hence their commitment to GB improve gradually. X. Strict Supervision: Supervision is the key-word in GB operation. Bank workers are the front line soldiers of GB. Each Bank Worker has to look into GB activities amongst up to sixty groups at the maximum. They keep an eye on them every time they visit the villages. Managers. Area Managers. Zonal Managers again keep their supervision tight on the layer immediately below them. Supervision is again matched by participative decision making-an ingredient of GB way of management. GRAMEEN BANK’S SUCCESS FACTORS  Clear Basic Concept and Guided Vision: The idea behind Grameen Bank is simple: that if poor people have access to credit they can change their own lives. The Grameen model is


not cluttered with conceptions of power and class conflict. All the staff of the organization knows about their jobs and concern about the outcome of their honesty and dedication.  Simple, Transparent Procedure: Grameen Bank’s simple operating procedures at the field level have evolved to accommodate the life styles and capabilities of the poor rural women that the program serves. The existence of clearly defined, easily understood procedure is also essential transparency of the lending system of clients. When financial transparence take place in front of all borrowers and reasons for granting or rejecting loan application are openly discussed, corruption is kept to a minimum.  Strong institutional identity: Being a chartered bank and a quasi-governmental organization rather than an NGO helps Grameen Bank to convey an image of poor; Grameen Bank had very few problems with government interference, perhaps because of its close relationship to the government, and the fact that it is regulated by the Central Bank.  Disciplined Organizational Style: Grameen Bank’s leader has instilled the organization with a high level of integrity and has developed an operating style that is consistent with the organization’s central vision. The Managing Director as well as the field staff dress and live simply; field staff use bicycle to move from village to village. The head office is not airconditioned. There is no waist. Even used papers are stored in gunny bags, to be soled for recycle. A well-developed system of information and communication ensure a high level of control and also facilities program development and experimentation.  Highly motivated, Socially-cohesive target Group: The rural poor in Bangladesh tend to be highly motivated to comply with Grameen’s repayment schedules when offered credit at a reasonable rate of interest because they lack access to conventional banks and sufficient wage employment opportunities. Grameen bank’s clients come from relatively homogeneous, traditional communities, with strong social control mechanism. Woman in particular are economically and socially tied to their families and communities; lacking viable opportunities to live elsewhere, they are highly susceptible to social pressure.  Staffs have clear vision about their mission: Both the underlying principles of Grameen Bank, and performance expectations and behavioral norms are clearly defined and well understood by staff. Their initial orientation and training as well as their constant contract with the clients in the clients’ own communication ensure a high level of familiarity with the socio-cultural norms and economic situations of Grameen Bank borrowers.  Two-tiered system of borrowers group: As described earlier, to become a member of Grameen Bank and get access of credit, a borrower must join a group of five, which in tern is part of a centre. The primary group is of five is small enough to make close personal relationships and frequent contact among members possible; the 45-50 member centre are more efficient size for conducting credit transactions, and large enough to create an identity within a community and to give the individual member a sense of belonging to an organization.  Ritual and discipline: In its general approach and through its operating procedure, Grameen Bank has fit itself to the norms and constrains of its intended clientele. To get access to the financial services that Grameen Bank offers, clients must also fit themselves to the organization. To be a borrower one must become a member of Grameen Bank, which


entails not only knowing and following the rules, but also identifying oneself with Grameen Bank. Being a member means taking responsibility for other members, screening out inappropriate borrowers, pressuring others to repay, providing mutual assistance, and protecting the integrity of the group. Grameen Bank’s own functioning is highly disciplined, and it requires the same in its borrowers. Grameen Bank uses rituals such as chanting, saluting, and physical drills to promote identification with the organization and to build discipline among members.  Flexibility: My own observation suggest that the function of borrower group in reducing the transaction costs as well as the risks associated with collateral-free lending to individuals is somewhat more complex than it might appear. The rules are rigid, but only to a point, particularly regarding group liabilities. In the event that other members of a group of five fail to collect an installment from one member, they made advance the money themselves, and some cases centre chief may make up the different in order to bring the meeting to a close.  Small loans and weekly repayment: Loans are small to avoid burdening borrowers with debt beyond their capacity to repay. Letting borrowers select and pursue their own economic activities without providing technical advice of skills training helps to control costs. Braking loan repayment into small weekly installments preempts the need to raise a large amount of money at one time. Weekly repayment also facilities monitoring of repayment by the group.  Continued availability: Continued availability of subsequent loans based on a satisfactory repayment record is also an important factor in promoting high repayment rates. JOB ANALYSIS 1. Profile of employees Unit: Consolidation Unit Name of the employee: Hasne Ara Begum Employee ID: 855 Job title: Officer Report to: GM/DGM Supervisor: Md. Abdur Rab Job Description: Duties & responsibilities:     

Storing Vouchers Numbering Vouchers Balancing items in different registers such asSundry registers Suspense


   

GOB interest Employee Welfare Fund Emergency Fund (Life Insurance) Rehabilitation Fund

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing vouchers and balancing registers. Skills: Excellent communication skills, and skilled in preparing vouchers and balancing registers. Education: S.S.C-1983 H.S.C-1985 Experience: Has about 19years of job experience in different managerial position. Abilities: Has the ability to do any type of wo Unit: Consolidation Unit Name of the employee: Md. Abdullah Employee ID: 251 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Abdur Rab Job Description: Duties & responsibilities:  Helping to prepare Financial Policy.  Helping to prepare Administrative Policy and other policies.  Preparing Accounting Manual.  Preparing circular for yearly and half yearly closings.  Preparing the chart of Accounts.  Maintaining liaison with different ministries.  Presenting proposal on different matters.  Maintaining liaison with Bangladesh Bank.  Preparing agenda for Board Meeting.  Storing documents relating to policy matters.


  

Opinion sharing in financial policy making. Helping to prepare the audit report. Designing and reforming passbook, ledger etc.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee.  Task which is ordered by GM and DGM Job Specification Knowledge: Understanding of basic accounting and has the deep knowledge about policy making. Skills: Excellent communication skills, and skilled in policy making. Education: S.S.C-1978 H.S.C-1980 Experience: Has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Head Office Accounts Unit Name of the employee: Moqbul Ahmed Bhuyan Employee ID: 12306 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities:  Preparing TA bill for Trainees, Zonal Managers and all other employees of head office.  Preparing telephone bill, mobile bill (both office and residence) for executives.  Preparing notes and letters relating to Internet bill of different divisions.  Giving gas and electricity bill of the Grameen Bank complex.  Distributing Mobile refill cards to PA and drivers of DMD and MD.  Operating Fax machine in Central Accounts.  Monthly monitoring on the above mentioned affairs. Additional Duties:


 

Helping others in any types of work. Doing job of others in case of absence of that employees or request of any employee.

Job Specification Knowledge: No specific knowledge is required. Skills: Excellent communication skills, and skilled in preparing bills. Education: S.S.C-1979 H.S.C-1981 B.COM (Hons)-1986 (Management; Chittagong University) M.COM-1988 Experience: Has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Consolidation Unit Name of the employee: Mofazzal Hossain Employee ID: 4630 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Abdur Rob Job Description: Duties & responsibilities:       

Financial policy making in the Central Account’s Sharing important opinions OD related task Guarantee related task of Grameen Bank Collect the service charge Task to collect the OD loan Task related with the rehabilitation fund

Additional Duties:  Helping others in any types of work  Doing job of others in case of absence of that employees or request of any employee  Task which is ordered by GM and DGM


Job Specification Knowledge: Excellent clarifying ability, has the knowledge about policy making. Skills: Excellent communication skills, and skilled in policy making. Education: S.S.C-1977 H.S.C-1979 B.COM (Hons)-1983 (Accounting, Rajshahi University) M.COM-1986 Experience: Has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Consolidation Unit Name of the employee: Pradip Kumar Saha Employee ID: 10140 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Abdur Rob Job Description: Duties & responsibilities:      

Reconciliation related work for head office, audit office and zonal office Sending fund to the struggling members Sending advice to the audit office, zonal office Correcting the error in the different affairs Helping to prepare the closing Checking the notes of service benefits

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing closing, has the ability to correct the affairs. Skills: Excellent communication skills, and skilled in preparing closing and correcting the errors.


Education: S.S.C-1979 H.S.C-1981 Hons-1984 Masters Degree-1985 Experience: Has about 17 years of job experience in different managerial position and also has working experience with AGB Abilities: Has the ability to do any type of work. Unit: Head Office Accounts Unit Name of the employee: Milen Krishna Das Employee ID: 13835 Job title: Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities:          

Binding the vouchers, writing the date and serial no. on each of it and entry it to the register book Packaging the vouchers and binding it by the board file and then store it Managing the photocopy machine Listing the daily slip of photocopy on the basis of divisions or branches and entry it on the registers Storing the papers/ink for photocopy from Distribution and entry it on the registers Preparing the bill of photocopy Sending the demand of printing stationeries, office stationeries, electrics accessories, sanitary accessories and other assets to Distribution Entry into the registers on the basis of the voucher Listing the monthly bills, preparing the voucher with advise for all the division/branches of zonal offices, audit offices and head office. Passing the notes of all office/printing stationeries of that division or buy it from the market

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee.


Job Specification Knowledge: Understanding of preparing vouchers and giving entry on the registers. Skills: Excellent communication skills, and skilled in preparing vouchers and giving entry on registers. Education: S.S.C-1984 H.S.C-1986 B.A-1988 Experience: has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work Unit: Budget and Planning Unit Name of the employee: Shaheeda Begum Employee ID: 6689 Job title: Principal Officer Report to: GM/DGM Supervisor: A. K. M. Abdul Malek Job Description: Duties & responsibilities:     

Preparing Plan for assigned zones Sending notes to respecting zones in case of any deviation from the original plan Monitoring and preparing quarterly statements Monitoring various matter relating to loan disbursement, collection and group formation Preparing statements to compare the performance of different zones

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing plan and budgeting. Skills: Excellent communication skills, and skilled in preparing budget and plan. Education: S.S.C-1978


H.S.C-1980 Hons-1983 Masters Degree-1987 Experience: Working here for about 17 years, worked as Branch Manager for a long time. Abilities: Has the ability to do any type of work. Unit: Reconciliation Unit (Polly Phone) Name of the employee: Prokash Chandra Tarafdar Employee ID: 17301 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:   

Keeping record of bills and other information relating to Polly phone Collecting bill twice a month. Monitoring the entries in computer

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing monthly bills. Skills: Excellent communication skills, and skilled in keeping records and preparing bills. Education: S.S.C-1979 H.S.C-1981 B.S.C (Hons)-1984 (Statistics, University of Dhaka) M.S.C-1985 Experience: Has about 17 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work.


Unit: Reconciliation Unit (Polly Phone) Name of the employee: Farhana Morhsed Employee ID: 583 Job title: Junior Executive (Grameen Communication) Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:   

Entering data relating to Polly Phone (Zone wise) Preparing Office correspondence related with Polly Phone. Computerizing various matter relating to Stars (Taroka).

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of recording data in to computer and retrieving whenever they are needed. Skills: Excellent communication skills, and skilled in recording data in to computer and retrieving whenever they are needed. Education: S.S.C-1989 H.S.C-1991 B.A-1993 M.A-1995 Experience: Working in Grameen Communication about 6 years. Abilities: Has the ability to do any type of work. Unit: Budget and Planning Unit Name of the employee: Md. Farid Uddin


Employee ID: 2330 Job title: Principal Officer Report to: GM/DGM Supervisor: A.K.M Abdul Malek Job Description: Duties & responsibilities:       

Planning and preparing the global budget Monitoring the quarterly prepared budget Follow up the planning in quarterly (area wise) Preparing the Grameen Bank closing module Justify the characteristics of Zones Consolidating the information of branches Preparing the presentation documents to show the Board

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing the budget, preparing excellent presentation papers and pie chart and graph. Skills: Excellent communication skills, and skilled in preparing budget and presentation papers. Education: S.S.C-1974 H.S.C-1976 B.S.C-1981 (Chemistry-Chittagong University) M.S.C-1983 (Organic Applied Chemistry-Do) Experience: Has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Budget and Planning Name of the employee: Kazi Mozaffar Ahmed


Employee ID: 3222 Job title: Officer Report to: GM Supervisor: A.K.M Abdul Malek Job Description: Duties & responsibilities:       

Planning and preparing the global budget Monitoring the quarterly prepared budget Follow up the planning in quarterly (area wise) Preparing the Grameen Bank closing module Justify the characteristics of Zones Consolidating the information of branches Preparing the presentation documents to show the Board

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing the budget, preparing excellent presentation papers and pie chart and graph. Skills: Excellent communication skills, and skilled in preparing budget and presentation papers. Education: S.S.C-1978 H.S.C-1980 B.A-1987 M.A-1989 Experience: Has about 20 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Budget and Planning Name of the employee: S.M Rafiqul Islam Employee ID: 9681 Job title: Principal Officer


Report to: GM/DGM Supervisor: A.K.M Abdul Malek Job Description: Duties & responsibilities:      

Preparing Plan for assigned zones Sending notes to respecting zones in case of any deviation from the original plan Monitoring and preparing quarterly statements Monitoring various matter relating to loan disbursement, collection and group formation Preparing statements to compare the performance of different zones Preparing notes

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing the budget and notes. Skills: Excellent communication skills, and skilled in preparing budget. Education: S.S.C-1978 H.S.C-1980 B.A (Hons)- 1983 (Philosophy, Chittagong University) M.A -1984 Experience: Has about 16 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Consolidation Unit Name of the employee: Md. Abdur Rab Employee ID: 824 Job title: Senior Principal Officer Report to: GM/DGM Unit Chief: Consolidation Unit.


Job Description: Duties & responsibilities:   

Supervises the unit members, where main responsibility is to prepare the financial policy and place for approval to authority &consolidate and prepare the Final Account of Grameen Bank. Dealing with External Audit, according to their suggestion finalize the Annual Report and Final Statement. Dealing with Bangladesh Bank Inspection Team.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing the financial policy and approving authority &consolidating and preparing the Final Account. Skills: Excellent communication skills, and skilled in preparing financial policy making and supervising unit members. Education: S.S.C-1974 H.S.C-1976 B.Com (Hons)-1981(Management, Chittagong University) M.Com-1983 Experience: Working here for over 20 years. Worked as Unit Chief of Share Unit: Review the Cases and place the proposal to Managing Director for consideration. Worked as Unit Chief of Reconciliation Unit: Dealing with Branch accounts, Reconciliation statement, Polly Phone Accounts, Grameen Stars etc. Abilities: Has the ability to do any type of work. Unit: Budget and Planning Unit Name of the employee: A.K.M Abdul Malek Employee ID: 966 Job title: Senior Principal Officer Report to: GM/ DGM Supervisor: GM/DGM


Job Description: Duties & responsibilities:  Preparing and monitoring Grameen Bank’s overall budget.  Supervising the overall activities of Budget and Planning unit.  Publishing different statements and preparing analytical statements  Highlighting the Characteristics of zones after closing to create competition among zones. Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing budget and planning. Skills: Excellent communication skills, and skilled in computer operation. Education: S.S.C-1974 H.S.C-1976 B.A (Hons)-1980(Chittagong University) M.A -1981 Experience: Working here for over 20 years. Worked as Branch Manager, Program Officer, Area Manager, and Zonal Manager. Abilities: Has the ability to do any type of work. Unit: Central Accounts Unit Name of the employee: Mohammad Shofiqul Islam Employee ID: 9692 Job title: Principal Officer Report to: GM/ DGM Supervisor: DGM Job Description: Duties & responsibilities:   

Maintaining Liaison with DGM Checking notes and letters before sending DGM Receiving phone calls


 

Preparing schedule for DGM Working as gate keeper for DGM

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing schedules. Skills: Excellent communication skills, and skilled in keeping schedule. Education: S.S.C-1978 H.S.C1980 B.A (Hons)-1983 (Economics, Rajshahi University) M.A- 1984 Experience: Has about 17 years of job experience in different managerial position. Worked as Teacher in a High School for 5 years. Abilities: Has the ability to do any type of work. Unit: Reconciliation Unit. Name of the employee: Kazi Altaf Hossain Employee ID: 10174 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:    

Handling the various matters relating to reconciliation of the assigned zones (Narayangang, Rajshahi, Hobigang, Rangpur, Barisal, Patuakhali) Keeping records of financial details of each employee within the assigned zones. Working as the media between different zones. For example if an employee transfer from one zone to another his documents are first send to head office and then head office send the documents to the new zone. Sending advice to respective zones in case of any error.


Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters for reconciliation. Skills: Excellent communication skills, and skilled in computer operation. Education: S.S.C-1978 H.S.C-1980 B.S.C (Hons)- 1988 (Zoology, Dhaka University) M.S.C –1989 (Fisheries) Experience: Has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Reconciliation Unit. Name of the employee: Ram Chandra Sarkar Employee ID: 2638 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:    

Handling the various matters relating to reconciliation of the assigned zones (Chittagong, Sylhet, Faridpur, Khulna, Jhenaidaha) Keeping records of financial details of each employee within the assigned zones. Working as the media between different zones. For example if an employee transfer from one zone to another his documents are first send to head office and then head office send the documents to the new zone. Sending advice to respective zones in case of any error.

Additional Duties:  Helping others in any types of work.


Doing job of others in case of absence of that employees or request of any employee.

Job Specification Knowledge: Understanding of various matters for reconciliation. Skills: Excellent communication skills, and skilled in computer operation. Education: S.S.C-1974 H.S.C-1976 B.COM- 1980 (Management, Rajshahi University) M.COM-1981 Experience: Has about 22years of job experience in different managerial position.

Abilities: Has the ability to do any type of work. Unit: Audit Unit Name of the employee: Md. Alamgir Employee ID: 11014 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Zahurul Islam Job Description: Duties & responsibilities:    

Helping in conducting internal and external audit. Sending notes and letters against the claims of Bangladesh bank. Sending reports of external audit to different branches. Preparing final audit report.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing notes and letters relating to both external and internal audit.


Skills: Excellent communication skills, and skilled in auditing. Education: S.S.C-1979 H.S.C-1981 B.COM- 1984 (Accounting, Rajshahi University) M.COM- 1985 Experience: Has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Consolidation Unit Name of the employee: Khandakar Bodrunnessa Employee ID: 10116 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Abdur Rab Job Description: Duties & responsibilities:        

Handling all transaction with Bangladesh Bank. Maintaining Correspondence with Finance Ministry. Maintaining Correspondence with Ministry of Statistics. Preparing At a glance. Preparing and giving information on websites. Preparing historical data series. Preparing advises related with pension. Doing some work related with monitoring.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of analyzing historical data and the trends underlying in the data. Skills: Excellent communication skills, and skilled in computer.


Education: S.S.C-1979 H.S.C-1982 B.S.C-1984 (Botany, Dhaka University) M.S.C- 1987 Experience: Has about 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Fund Unit Name of the employee: Md. Badruzzaman Employee ID: 10156 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Zahir Uddin Job Description: Duties & responsibilities:     

Dealing with Foreign currencies. Dealing with call money Doing various work related with C.D.B.L. Doing various work related with AIMs. Correspondence with Bangladesh Bank and other financial institutions.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters relating with foreign currency Skills: Excellent communication skills, and skilled in computer operation. Education: S.S.C-1978 H.S.C-1981 B.COM- 1984 (Accounting, Dhaka University) M.COM-1985


Experience: Has about 17 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work.

Unit: Provident Fund Unit Name of the employee: S.M. Shaha Alam Employee ID: 4290 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Mozzamal Haque Job Description: Duties & responsibilities:    

Storing documents relating with 10 % subscription of the permanent employees of Grameen Bank. Operating the System software to do the previously mentioned job. I f there is any deviation adjusting the figure in the prescribed form according to the employees ID number and areas ID number. Preparing all the statements relating to the annual meeting of the Provident Fund Trustee Board.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of working with system software. Skills: Excellent communication skills, and skilled in computer operation. Education: S.S.C-1976 H.S.C-19785 B.A (Hons)- 1979 (Political Science) M.A-1983 Experience: Has 20 years of job experience in different managerial position.


Abilities: Has the ability to do any type of work. Unit: Head Office Accounts Unit Name of the employee: Moksud Ahmed Employee ID: 5589 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities:    

Giving all checks, except pension, to all employees. Handling various matters relating to arranging workshops. Balancing and preparing vouchers of sundry suspense account and advance against purchasing. Matching codes and unpaid salaries.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing vouchers and balancing registers. Skills: Excellent communication skills, and skilled in preparing vouchers and balancing registers. Education: S.S.C-1978 H.S.C-1980 B.COM ( Hons)-1983 ( Accounting, Chittagong University) M.COM- 1984 Experience: Has 18 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.


Unit: Audit Unit Name of the employee: Md. Zahurul Islam Employee ID: 1172 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities:   

Monitoring overall functions of Audit Unit. Helping in doing internal and external audit. Preparing statements relating to claims/ complains send from different zones.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of internal and external audit. Skills: Excellent communication skills, and skilled in auditing. Education: S.S.C-1974 H.S.C-19756 B.COM- 1982 (Management) M.COM- 1983 Experience: Has 21 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Share and Reconciliation Unit Name of the employee: Jannat Ara Employee ID: 19933


Job title: Officer Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:    

Acknowledgement of shares. Giving shareholder number. Correcting errors of the shares. Preparing sending notes/ letters relating to share.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters relating to shares. Skills: Excellent communication skills, and skilled in checking errors in shares. Education: S.S.C-1983 H.S.C-1985 B.A ( Hons) –1988 ( Social Welfare, Rajshahi University) M.A- 1989 Experience: Has 10 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Head Office Accounts Unit Name of the employee: Snigdha Pal Employee ID: 10976 Job title: Principal Officer Report to: GM/DGM Supervisor: Md.Malequzzaman Job Description: Duties & responsibilities: 

Handling various matters relating to accounting.


               

Posting daily vouchers in computer. Preparing weekly statement about launch allowance. Preparing monthly affairs. Doing monthly bank reconciliation in computer. Preparing monthly statements relating to Sundry A/C, Suspense A/C. Preparing statements on advance against purchases. Preparing half statements on expenditure of head office. Calculating interest rate. Sending letters relating to the debt /credit of the sister concern. Transferring, informing, and accounting of assets of different departments of head office. Giving book value to the assets of different departments. Preparing vouchers and determining depreciation of the assets. Preparing assets schedule. Paying bills relating to purchases, servicing and repairing. Giving weekly advances of the dormitory of the Training institution. Audit relating to assets.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of basic accounting. Skills: Excellent communication skills, and skilled in computer accounting. Education: S.S.C-1978 H.S.C-1981 B.COM (Hons)- 1986 (Management, Chittagong University) M.COM- 1987 Experience: Has 16 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Fund Unit Name of the employee: Md. Rofiqul Islam Employee ID: 305 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Zahir Uddin


Job Description: Duties & responsibilities:   

Handling various matters relating to FDR. Investing deposits into different banks. Monthly reconciliation.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of fund management. Skills: Excellent communication skills. Education: S.S.C-1974 H.S.C-1976 B.A -1982 Experience: Has 20 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Head Office Accounts Unit Name of the employee: Md. Rafique Ullah Employee ID: 4771 Job title: Principal Officer Report to: GM/DGM Supervisor: Md.Malequzzaman Job Description: Duties & responsibilities:  

Maintaining accounting and sending letters to Trainees relating to their allowances of all zones. Maintaining accounting and sending letters of 27 rehabilitation centers relating to their incomes and expenditures.


  

Adjusting different types of advances. Keeping records and distributing medical allowances. Giving payment vouchers to suppliers.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of basic accounting. Skills: Excellent communication skills. Education: S.S.C-1977 H.S.C-1979 B.COM (Hons)- 1983 (Management, Dhaka University) M.COM- 1986 Experience: Has 20 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Provident Fund Unit Name of the employee: Md. Nashir Uddin Employee ID: 681 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Mozammel Haque Job Description: Duties & responsibilities:  

Calculating/accounting the money relating to pension/release. Investing the excess money of the provident fund in treasury bills, defense certificates and double in seven years deposits.


  

Preparing and approving the notes and letters relating to different types of matters. Changing and adjusting the different policies relating to provident fund. Calculating Provident fund money incase of retirement, release, suspension and removal of employees.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing different notes and policies relating to provident fund. Skills: Excellent communication skills. Education: S.S.C-1976 H.S.C-1978 B.A-1981 Experience: Has 22 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Budget and planning unit Name of the employee: Subash Kanti Barua Employee ID: 12258 Job title: Officer Report to: GM/DGM Supervisor: A.K.M Abdul Malek Job Description: Duties & responsibilities:   

Maintaining computer related work for budget and planning. Maintaining closing (yearly and half yearly) related work. Analyzing incomes and expenditures.


   

Preparing quarterly budget, letters and notes. Giving letters relating to fuel, traveling, postage, telegram, telephone, if these items expense more. Analyzing and comparing different divisions. Analyzing the characteristics of zones.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing budget. Skills: Excellent communication skills, and skilled in computer related work. Education: S.S.C-1980 H.S.C-1984 Experience: Has 16 years of job experience in different managerial position. . Abilities: Has the ability to do any type of work.

Unit: Provident Fund Unit Name of the employee: Md. Mozammel Haque Employee ID: 829 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities:   

Monitoring provident fund related works. Preparing the papers and documents for Board Meeting. Arranging the meeting for Trustee Board.


Signeturing all checks.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding the provident fund related work. Skills: Excellent communication skills, and skilled in preparing papers and documents for Board Meeting. Education: S.S.C-1975 H.S.C-1977 B.COM (Hons)-1980 (Management, Rajshahi University) M.COM-1981 Experience: Has 21 years of job experience in different managerial position. . Abilities: Has the ability to do any type of work.

Unit: Reconciliation Unit (Polly Phone) Name of the employee: Rina Sultana Employee ID: 687 Job title: Junior Executive Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:   

Entering data relating to Polly Phone (Zone wise) Preparing Office correspondence related with Polly Phone. Computerizing various matter relating to Stars (Taroka).


Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of recording data in to computer and retrieving whenever they are needed. Skills: Excellent communication skills, and skilled in recording data in to computer and retrieving whenever they are needed. Education: S.S.C-1989 H.S.C-1991 B.A-1994 M.A-2000 Experience: Has 21 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Share and Reconciliation Unit Name of the employee: Md. Abdul Matin Employee ID: 4492 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:      

Reconciling the incomes and expenditures of branches relating to zones. Reconciling the expenditures of trainee officers. Handling the various matters relating to reconciliation of the assigned zones (Tangile, Dhaka, Dinajpur, Noakhali, Jamalpur) Preparing voucher relating to reconciliation. Preparing the budget for branches which can be changed and does not impact of the overall budget. Preparing voucher relating to zonal offices’ profits and losses.


Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing vouchers and reconciliation related work. Skills: Excellent communication skills, and skilled in reconciliation related work. Education: S.S.C-1977 H.S.C-1979 B.S.C (Hons)-1982 M.S.C-1986 Experience: Has 21 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Share and Reconciliation Unit Name of the employee: Md. Liakat Ali Employee ID: 11035 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:    

Acknowledgement of shares. Giving shareholder number. Correcting errors of the shares. Preparing sending notes/ letters relating to share

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee.


Job Specification Knowledge: Understanding of various matters relating to shares. Skills: Excellent communication skills, and skilled in checking errors in shares. Education: S.S.C- 1980 H.S.C-1982 B.COM (Hons)-1983 (Management, Chittagong University) M.COM-1985 Experience: Has 16 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.

Unit: Head Office Account Name of the employee: Md. Annes Ali Employee ID: 8073 Job title: Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities: 

Doing all types of computer related work.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of operating computer. Skills: Excellent communication skills. Education: S.S.C-1982 H.S.C-1986


Experience: Has 17 years of job experience in Grameen Bank. Abilities: Has the ability to do any type of work. Unit: Head Office Account Name of the employee: Md. Akram Uddin Employee ID: 5850 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities:          

Keeping record relating to employees’ house loan (voucher for transaction, ledger for loans, balancing, giving balance certificate). Keeping record relating to GPS. Preparing statement for income tax return. Making policy relating to borrowings. Doing all activities relating to advance against provident fund (Head Office employees only). Handling Loan Insurance of all head office employees. Allocating and monitoring Household Loan of all head office and zonal audit office employees. Investing and monitoring in student scholarship of Grameen Education. Investment relating to retired employees. Handling various matter relating to money laundering.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing statements of income tax return. Skills: Excellent communication skills, and skilled in computer operation. Education: S.S.C-1977 H.S.C-1979 B.COM (Hons)-1983 (Accounting, Chittagong University) M.COM-1984


Experience: Has 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Social Venture Capital Fund Name of the employee: Md. Moslem Uddin Employee ID: 4464 Job title: Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities: 

Working as the funding agency of the fisheries, house building, agriculture and SIDE projects.  Overall management of the unit.  Preparing budget of the unit.  Handling various matters relating to employees welfare association.  Maintaining liaison with the bank on behalf of the association.  Acting as the representative of internal audit.  Handling various matters relating to income tax. Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of proper fund allocation and preparing budget. Skills: Excellent communication skills, and skilled in fund management. Education: S.S.C-1977 H.S.C-1979 B.A (Hons)- 1982 (Economics, Rajshahi University) M.A – 1983 M.B.A – 2005 (Northern University) Experience: Has 19 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.


Unit: Head Office Accounts Name of the employee: Md. Malequzzaman Employee ID: 1992 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities:   

Supervising, monitoring and advising overall activities of the unit. Maintaining liaison with GM/DGM. Preparing all types of payments of all the departments.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Has deep knowledge of motivating and supervising subordinates. Skills: Excellent communication skills, and skilled in maintaining liasion. Education: S.S.C- 1976 H.S.C-1978 B.COM ( Hons)- 1982 ( Accounting, Rajshahi University) M.COM- 1984 Experience: Has 19 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work.

Unit: Head Office Accounts (Income Tax)


Name of the employee: Md. A.K. Azad Employee ID: 4599 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities:   

Preparing and monitoring all activities relating to income tax. Preparing and monitoring all activities relating to VAT. Payment of all constructions relating to Grameen Bank compound.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters relating with income tax and VAT. Skills: Excellent communication skills, and skilled in preparing income tax return. Education: S.S.C-1977 H.S.C-1979 B.COM ( Hons)- 1982 ( Accounting, Rajshahi University) M.COM- 1983 Experience: Has 19 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work. Unit: Fund Unit Name of the employee: Md. Shahadath Hossain Mollah Employee ID: 12308 Job title: Principal Officer Report to: GM/DGM


Supervisor: Md. Zahir Uddin Job Description: Duties & responsibilities:     

Handling various matters relating to Deposit section, such as- receiving and paying checks, PT receive, DD receive, sending debit and credit advises etc. Sending payments and letters to Grameen Telecom, Grameen Sakti, Grameen Communication, Grameen Trust and other sister concerns. Giving funds for activities like, students’ scholarship, provident fund, welfare fund, medical allowance etc. Correspondence with different commercial banks. Monitoring of fund position (weekly and monthly).

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Maintaining liaison with commercial banks. Skills: Excellent communication skills. Education: S.S.C- 1979 H.S.C-1981 B.COM ( Hons) –1985 ( Management, Chittagong University) M.COM- 1986 Experience: Has 16 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work.

Unit: Head Office Accounts (Administration) Name of the employee: Md. Lutfhar Rahman Employee ID: 13088 Job title: Officer Report to: GM/DGM


Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities: 

Working as the computer operator of the unit

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Has basic computer literacy. Skills: Excellent communication skills, and skilled in computer operation. Education: S.S.C-1986 H.S.C-1988 B.A -1994 Experience: Has 15 years of job experience in Grameen Bank. Abilities: Has the ability to do any type of work. Unit: Fund Unit Name of the employee: Md. Zahir Uddin Employee ID: 1507 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities:    

Supervising and monitoring the subordinates of the unit. Doing all activities relating to fund collection. Investing excess fund collected from fields. Preparing payment schedule of the loan.


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Maintaining financial transactions with Finance Ministry and Bangladesh Bank. Observing and renewing transactions with banks.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of proper fund management. Skills: Excellent communication skills, and skilled in supervision and monitoring. Education: S.S.C-1974 H.S.C-1976 B.COM ( Hons) –1983 ( Accounting, Chittagong University) M.COM- 1984 Experience: Has 21 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work. Unit: Head Office Accounts Name of the employee: Md. Rafiqul Islam Employee ID: 4846 Job title: Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities:   

Sending all letters to dispatch section for dispatching. Preparing internal advises to dispatch the documents and securing signatures for the respective table. Filing letters according to the mailing address of the branches, zones, areas and zonal audit office.

Additional Duties:  Helping others in any types of work.


Doing job of others in case of absence of that employees or request of any employee.

Job Specification Knowledge: No specific knowledge is required for the job. Skills: Excellent communication skill. Education: S.S.C-1982 H.S.C-1984 B.A -1986 Experience: Has 18 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work. Unit: Consolidation Unit Name of the employee: Subir Kumar Mitra Employee ID: 11703 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Abdur Rab Job Description: Duties & responsibilities:   

Handling various matters relating to monitoring. Helping to dispatch. Preparing circular relating to deposits.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing circulars relating with deposits.


Skills: Excellent communication skills, and skilled in preparing circulars relating with deposits. Education: S.S.C-1977 H.S.C- 1979 B.COM (Hons)- 1987 ( Accounting, Rajshahi University) M.COM- 1988 Experience: Has 16 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work. Unit: Share and Reconciliation Unit Name of the employee: Md. Shah Alam Employee ID: 1545 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities: 

Supervising and monitoring the overall activities of the unit as the unit chief.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters relating with share and reconciliation. Skills: Excellent communication skills, and skilled in handling shares. Education: S.S.C-1975 H.S.C-1978 B.COM ( Hons) –1982 ( Accounting, Chittagong University) M.COM-1984 Experience: Has 20 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.


Unit: Head Office Accounts Unit Name of the employee: Md. Mukhles Rahman Employee ID: 11729 Job title:Principal Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description: Duties & responsibilities:     

Helping to prepare Policies related with deposits. Preparing circulars. Presenting proposal on different matters. Storing documents relating to policy matters. Opinion sharing in deposit related policymaking.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of preparing policies relating with deposits. Skills: Excellent communication skills, and skilled in policy making. Education: S.S.C-1978 H.S.C-1980 B.COM ( Hons) –1985 ( Management, Chittagong University) M.COM-1986 Experience: Has 16 years of job experience in different managerial position. Abilities: Has the ability to do any type of work.


Unit: Provident Fund Unit Name of the employee: A.H.M. Anisur Rahaman Chowdhury Employee ID: 10121 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Mozammel Haque Job Description: Duties & responsibilities:   

Checking the total amount as advised in 57 number form (provident fund). Giving notes relating to provident fund. Giving letters relating to provident fund if there is any error.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: No specific knowledge is required. Skills: Excellent communication skills. Education: S.S.C-1977 H.S.C-1979 B.S.C ( Hons) –1983 ( Zoology, Dhaka University) M.COM-1984 (Fisheries) Experience: Has 16 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work. Unit: Reconciliation Unit Name of the employee: Md. Shahadat Hossain Employee ID: 11685 Job title: Principal Officer


Report to: GM/DGM Supervisor: Md. Shah Alam Job Description: Duties & responsibilities:    

Preparing vouchers and adjusting various matters relating with reconciliation. Preparing letters relating with reconciliation. Preparing vouchers and giving advises relating to provident fund. Preparing vouchers relating to closing.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters relating to preparing vouchers. Skills: Excellent communication skills. Education: S.S.C-1977 H.S.C-1977 B.COM ( Hons) –1983 ( Accounting, Rajshahi University) M.COM-1985 Experience: Has 16 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Head Office Accounts Unit. Name of the employee: Md. Mahamuduzzaman Employee ID: 6696 Job title: Principal Officer Report to: GM/DGM Supervisor: Md. Malequzzaman Job Description:


Duties & responsibilities:         

Accounting and giving checks relating to entertainment expenses of head office. Giving launch allowances and advances. Paying bills relating to repair and supply. Paying bills relating to lift operation and servicing. Paying bills to guards and staffs of cafeteria and training institution, Giving advises against the adjustment of expenses sent from different zones. Managing funds. Giving entry of all vouchers into Bank Book. Accounting of services charges received from foreign trainees.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: No specific knowledge is required. Skills: Excellent communication skills. Education: S.S.C-1978 H.S.C-1980 B.COM (Hons) –1985 (Management, Rajshahi University) M.COM-1988 Experience: Has 17 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Consolidation Unit Name of the employee: Nirmal kumar Chowdhury Employee ID: 4462 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities:   

Consolidating Grameen Bank’s global accounting. Preparing Final Accounts. Doing various financial analyses.


       

Consolidating and reconciliation of sundry suspense accounts. Preparing “Star” for branches. Corresponding with Bangladesh Bank and other financial institutions. Supplying information relating to Grameen Bank to different institutions. Primary information consolidation of half-yearly and yearly closing. Maintaining information relating to FDR on regular basis. Calculating all fund interest. Consolidating monthly affairs of Grameen Bank.

Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters relating to accounting and ratio analyses. Skills: Excellent communication skills, and skilled in preparing accounting using computer software. Education: S.S.C-1977 H.S.C-1979 B.S.C (Hons) –1982 (Applied Physics, Rajshahi University) M.S.C-1983 Experience: Has 19 years of job experience in different managerial position. Abilities: Has the ability to do any type of work. Unit: Share and Reconciliation Unit Name of the employee: Md. Shah Alam Employee ID: 1545 Job title: Senior Principal Officer Report to: GM/DGM Supervisor: GM/DGM Job Description: Duties & responsibilities: 

Supervising and monitoring the overall activities of the unit as the unit chief.


Additional Duties:  Helping others in any types of work.  Doing job of others in case of absence of that employees or request of any employee. Job Specification Knowledge: Understanding of various matters relating with share and reconciliation. Skills: Excellent communication skills, and skilled in handling shares. Education: S.S.C-1975 H.S.C-1978 B.COM ( Hons) –1982 ( Accounting, Chittagong University) M.COM-1984 Experience: Has 20 years of job experience in different managerial position.

Abilities: Has the ability to do any type of work. 2. Findings of Job Analysis: 1. Most of the employees’ job is routine type. 2. All employees reported that they often perform additional duties on request of their peers, unit head, GM, DGM or on the absence of any employee. 3. Most of the employees said they do not require much time to complete a single piece of work. 4. It is difficult to determine the frequency of work that each employee performs each day. 5. Most of the employees reported that the tasks they perform are not too difficult, because the tasks are routine type. 6. No one reported that he/she has too much workload. But at the time of closing they said, the workload is too much. 7. Most of the employees reported that what they are doing can be learnt on the job from experience. 8. Most of the employees do not have any additional training except introductory training. Some of the employees got training in computer, fisheries, basic health care, etc.


9. Most of the employees do not have any prior work experience. Very few of them have work experience in other organization. 10. Generally the unit chief supervises the work of other employees working in his unit. Some employees also get order directly from GM or DGM. 11. Most of the employees think that they inherently have skill to do their respective job successfully. 12. In Grameen Bank, we have identified both formal and informal communication. 13. Most of the employees think that here the working environment is very pleasant, which is rare in other organizations. 14. All employees reported that their peers are so cooperative. 15. Most of the employees think their current salary package is motivating, the organization follows current government pay scale. 16. Although most of the employees are satisfied what they are getting, some employees think they must get some thing more like Risk insurance for field workers  Education allowance for children of the employees  PC in each desk  Changing the office decoration  Transportation facilities  Sufficient medical allowance 17.Most of the employees think that they will get the optimum career development stating here. But few of them reported that they did not get optimum opportunity because of faulty and rapidly changing policies. Some employees called these policies as “Black Laws”. 18.Most of the employees believe that getting promotion here is not solely based on merit or personal relationship with their bosses. Getting promotion is the function of both merit and good relationship with their bosses. 19. We observe an unequal distribution of workload among employees. Some employees have excessive workload on the other hand others remain idle most of the time. 20. Although Grameen Bank’s employees get fewer benefits and less salary than other private banks but they are satisfied because they believe they are contributing to eradicate poverty and thus working for the welfare of the society. In deed they are very much emotionally attached with their members (borrowers) and the organization and feel proud to be a part of this Organization. 3. Recommendation – “Practicing Internal Marketing” The concept of Internal Marketing


Internal Marketing means the application of marketing internally within the Organization .The internal marketing concept states by Gronoroos (1990), as “The internal market of employees is best motivated for service mildness and customer-oriented performance by an active, marketing like and coordinated way”. Thus within the practice of internal marketing, the marketing philosophy is a also directed toward the employees of the organization who are treated as customers. Although like any other organization Grameen Bank is to some extent practicing internal marketing but the management is not doing it consciously. Here we tried to give some suggestions to successfully implementing internal marketing in this esteemed organization. While we are doing our job analysis we felt the need of practicing internal marketing to make the employees more committed to their jobs increasing their productivity as well as increasing their job satisfaction. Effects of Internal Marketing It appears that there are a number of positive effects of “Internal Marketing”. The followings are some effects that we have identified: 1. The better the practice of Internal Marketing by any organization through brain storming session among the relevant employees, the better the solution of a problem. 2. Consequently, the better the solution, the better the project is developed. 3. The better the project, the better the external marketing. 4. Finally, the better the external marketing, the better the relationship can be seen between the organization and its client.

Brainstorming Session to search An acceptable Solution by GM, DGM, SPO, PO etc. is a form of Internal marketing

The success of internal marketing

The better solution of a problem

The better the external marketing

The better the relationship with clients

Source: The Practice of Internal Marketing in Service Organization: Journal of Marketing A Journal of the Department of Marketing, University of Dhaka, Vol.1 No.1 , June 1998, Page 34. Our Suggested ways of practicing internal marketing in Grameen Bank 1. Assigned of jobs and communication Programs can be the key practice of internal marketing in Grameen bank.


2. While department to department and employees to employees communicate with each other they have to sell their “ideas” to each other which is considered as the form of internal marketing. 3. Top management can assigned the tasks and responsibilities clearly to the department as well as to the employees to execute the plan accordingly. 4. In addition to the salary, some benefits like extra remuneration for extra time job, traveling allowance, maternity leave, increasing salary based on performance, transportation facilities, arrangement for informal gathering can improve employees performance and job satisfaction. 5. In internal marketing Grameen Bank should recruit the quality personnel, motivate and encourage the employees in different ways keeping them as permanent employees. 6. The practice of internal marketing in Grameen bank will enhance the external marketing which in terms help the agency in maintaining the better and long-term relationship with the clients

This practice can be shown by the following hypothetical flow chart Recruitment of Quality Personnel

Provide motivation and encouragement to stay as a permanent employee:  Paying handsome salary  Considering as a family member  Appreciating for good job

Freedom to express the ideas and Opinions of employees for the better creative solution of a successful campaign

A successful internal Marketing

A successful external Marketing


A long-term better relationship Between the organization and client

Source: The Practice of Internal Marketing in Service Organization: Journal of Marketing A Journal of the Department of Marketing, University of Dhaka, Vol.1 No.1 , June 1998, Page 34. 7. To elicit creative ideas from the employees, a friendly environment is required. 8. To ensure the internal marketing practice in the o organization in a better way, authorities should require motivating employees properly. 9. The managers must consider and practice the internal marketing. The policy makers should keep in mind the significance of the theory involved with the internal marketing in practice. 10. The level of internal marketing can be different in different situations. It is essential to contact more frequently among the employees CONCLUSIO In twenty eight years Grameen Bank has evolved from a small, experimental project to an internationally-renowned independent rural bank providing financial services to about three and a half million of poorest people in one of the world’s most impoverished countries, people who were previously excluded by the formal banking system and, in the case of many of Grameen’s female clients, excluded even from the cash economy and even from public space. Throughout most of its existence Grameen Bank has maintained repayment rates of 97 to 99 percent and continued to move towards self-sustainability without deviating from central vision of credit for poverty alleviation. It has shown that group-based lending, with screening and monitoring by peers rather than by the bank, can effectively substitute for collateral-based banking. It has demonstrated not only that poor are bankable, but also that lending to the poor can be far less risky than lending to the rich. The greatest obstacle that Grameen Bank faces in providing targeted credit for poverty alleviation is poverty itself. Economic stagnation in rural areas limits the potential for productive investment such that the poorest of the poor often are unable to use credit productively and may even worsen their situation by taking loans from Grameen Bank. Although some borrowers succeed in using credit to pull themselves out of poverty, for many the benefits are most modest. Lack of social services for the poor in rural areas leaves Grameen borrowers highly vulnerable to health crises and natural disasters, which can quickly reverse the economic gains from credit.


REFERENCES 1. Grameen Trust Grameen Bank At a Glance, October Issue, 2002. 2. Grameen Trust Grameen Dialogue, various issues, 2005. 3. Hashemi Sayed M., Schuler, Sidney Ruth, Sustainable Banking with the poor : A case study of Grameen Bank, JSI Research and Training Institute, Virginia, USA1997 4. Grameen Bank Annual report, 2004 5. Johnson Robert W.; Melicher, Ronald w., Financial Management, Allyn and Bacon Inc., 1982. 6. Khandaker, Sahidur R. ; Khalily, Baqui ; Khan, Zahed H. , Grameen Bank – Performance and Sustainability, World Bank Discussion paper, 1996. 7. Islam, ABM Shahidul “ The Practice of Internal Marketing in Services OrganizationThe case of av Advertising Agency”, Dhaka University Journal of Marketing, vol.1, No.1, June 1998, pp-33,34. 8. www.grameen.com


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