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Acting Managing Director, Grameen Bank

Creating Hope for the Poor

The Experience ofGrameen Bank

RATAN KUMAR NAGActing Managing Director (CEO)Grameen BankE-mail: mdsecretariat@mail.grameen.com

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The Origin & Evolution of Grameen Bank

Grameen Bank Project was born in the village of Zobra, Bangladesh, in 1976. It began as an action research project at Chittagong University. Professor Muhammad Yunus is founder of Grameen Bank, who was teaching Economics at Chittagong University.

At 1979 it became a pilot project of Bangladesh Central Bank.

In October 1983, Grameen Bank was established as an independent financial institution under a special act of parliament.

The mission of Grameen Bank is to alleviate poverty from the lives of the poor people.

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Name: GRAMEEN BANK

Country: BangladeshCreation: 1976 (research project), 1979 (pilot project) and 1983 (specialized bank)Founder: Prof. Muhammad YunusDefination: only collateral free bank in Bangladesh aiming to differentiate from the traditional banking methods by giving microcredit to its members - poor women from Bangladesh’ villages‐Goals: eliminate exploitation of moneylenders; create self- employment; break the vicious cycle of poverty; empower ‐and unify scattered, marginalized and voiceless people; create good opportunities for the next generations

• # of Branches: 2568• # Total Employee : 21586• # of Villages: 81392• # of Centres: 142607• # of Groups: 1358268• # of Members: 8.7 M

• Outstanding loan amount: 1.2 Billion USD• Deposits amount: : 2.4 Billion USD• # Numbers of Higher Education Loan (cumulative): 53392• # Numbers of Scholarships (cumulative): 225984• 97 % members are women.• 9 women board members from shareholders out of 13. • No Donor Money, No loans since 1995.

GB Features at a glance

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Operational Procedure of GB MicrocreditOperational Procedure of GB Microcredit

Group Formation

Group Training

Selection ofGroup

Chairman &Others

Group Recognition

Loan Proposal

Loan Disbursement

Loan Utilization

Loan Repayment

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Organizational Structure of Grameen Bank

Zonal Office

Area Office

Groups

Head

Office

GB Members-8.81 million

(97% Whom are Women)

Branch Office

Centers

Head Office

268 Area Office

40 Zonal Office

60-70 Centres per Branch

Branch Office ( 2,568)

Group of 5 Members

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Grameen Bank Loan ProductsGrameen Bank Loan ProductsBasic Loan

Housing Loan

Struggling Member’s Loan

Higher Education Loan

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Savings Products

For GB Members &

Staff

For Non GB Member

Personal Savings

Fixed Deposit

Grameen Pension Scheme

9 Years Double Deposit

Monthly Profit Deposit.

Loan Insurance Savings

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Scholarship Programme of Grameen Bank

GB launched a scholarship program for the talented students of GB members.

50% scholarships are given to girls. Over 225984 children receive scholarships from Grameen Bank.

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Insurance ProgramFamilies of Deceased Borrowers of GB Received Loan & Life Insurance Benefit

Loan Insurance: Premium is 6% (3%for borrowers and 3% for

husband) of their loan outstanding. After death (single or both) entire loan and

interest will be written off. Premium is refundable in all cases. Up to Decembor,2015 a total of 3,75,864

borrowers died in GB and received a total amount of (US$ 61.91 million).

Life Insurance: No Premium required. Per deceased family receives Tk. 1,500. Up to Decembor,2015 a total of 1,77,379

borrowers died in GB and received a total amount of (US$ 5.50 million).

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Move Out of Poverty and Stay Far Away From Poverty

More income for women & family Basic loan Micro enterprise loans for bigger investments Integration of IT & Communications for income generation and

knowledge Build assets to pay for the education and marriage of the children, to

enable them to create a large asset base, and pay for other long term needs.

Prepare the future generation with education and knowledge so that the families do not slip back into poverty

Scholarships Higher Education loan Business loan for graduate students

Long Term Vision

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Received Nobel Peace Prize for 2006

Ms. Taslima Begum and Prof. Muhammad Yunus Receiving Nobel Peace Award-2006 at City Hall Oslo.

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...Thank You