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| Twenty-one Years Since We Became a Bank |
| In 2004, Grameen Bank completed its 21 years of operation as an independent bank (1983-2004). As of 2004 Grameen extended its service to 4,059,632 members. Growth of both member and non-member
deposits was also noticeable. Deposit balance increased from Tk. 13,307 million to Tk. 20,718 million. Annualdisbursement increased from Tk. 21,467 million to Tk. 25,873 million. Number of telephone ladies increased from 43,041 to 92,673 offering telecommunication services in nearly half of the villages of Bangladesh where this service never existed before. Telephone ladies use 16 per cent of the total air-time of GrameenPhone, the mobile phone company, while their number is only 4 per cent of the total number of the telephone subscribers of the company. Some5,257 students from Grameen families got highereducation loans. Computerisation of accounting and MIS
reached its last leg. Out of 1,358 branches, 1,215 branches have been brought under computerisation. |
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| Resource Mobilization |
| Grameen Bank (GB) has reached a stage where it can
finance all its loans from its own fund and funds received
from the depositors. Over 66 per cent of hese deposits
come from the bank’s borrowers. GB created different
types of saving products with attractive interest on
deposit. For this reason GB members are attracted to
save. While the bank is self-reliant in financing its loan
programmes, not all branches are in a position do to so
from their own funds. Surplus branches are financing the
deficit branches through the intermediation of the zonal
offices and the head office. All deficit branches (43% of
the branches) are now working towards the goal ofbecoming self-reliant themselves. They are making
very good progress. |
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| Policy for Opening New Branches |
| Grameen Bank launched its new policy for establishing
new branches with their own money. New branches
cannot borrow from the head office of the bank to
undertake on-lending activities. New branches will
have to carry out their lending programme with the
money mobilised through deposit collection or loans from the zonal office. This must be repaid within six
months. They’ll also have to reach break-even point
within 6 months to a year of operation. If this succeeds it will become another landmark in
microcredit operation. During 2004, 163 branches
have been opened in this way. Impact of the policy will
be noticed in the following years. |
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| Beggars As Members |
| Begging is the last resort for survival for a poor person,
unless he/she turns towards crime or other forms of
illegal activities. From 2003 Grameen Bank introduced
this programme to reach out to the ultimate poorest.
Beggars are given loans to start micro-businesses
without giving up begging. They may give up begging if
their businesses pick-up and bring enough income to
make it worthwhile, or even necessary to stop
begging. All loans are interest-free. Loans can be very
long term, to make repayment instalments very small.
Beggar members are covered under life insurance and
loan insurance programmes without incurring any
cost. The beggars responded very well. A total of
34,077 beggars have already joined the programme in
2004, out of them 31,958 are women. Among these
beggars, there are blind and handicapped people, as
well as old people with ill health. Total amount
disbursed stands at Tk. 17.91 million, out of which
Tk. 5.73 million has already been paid off. |
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| Star for Achievements |
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Creating “Five Star Branches” has been the most
exciting challenge among the staff. All the 12,000 staff
are committed to transform all of the Grameen Bank
branches into five star branches soon. This will mean
Grameen Bank borrowers will be poverty-free families
with 100% literate children. At the end of 2004, 892
branches, out of the total 1,358 branches, received
green stars for maintaining 100 per cent repayment
record. For earning profit 891 branches received blue
stars. Violet starts were earned by 705 branches by
meeting all their financing out of their earned profit
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. Brown stars were received by 214 branches
by ensuring education for 100% of the children of
Grameen families and 29 branches received red stars
indicating branches those have succeeded in taking alltheir borrowers’ families over the poverty line.
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| As we reaffirm our commitment to play a strategic
role in ending poverty, we are happy to present the
detailed information on working of Grameen Bank
during 2004. |
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Muhammad Yunus
Managing Director
Grameen Bank
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