Grameen bank

1. leading the poor out of
poverty towards an
empowered and dignified
life

2. OUTLINE
History
Micro-credit: Grameen Credit
Business Model Innovation
Product Design Improvement
Business Process Improvement
Where is it now?

3. HISTORY
1976 – the Grameen Bank Project
Low
income
Low saving
Low
investment

4. NEW CYCLE

5. GRAMEEN CREDIT
PTM-The Poor
Credit
trust
rating
Progressive
attitude
Savings vs. Credit
Monitoring
Financial
standing
Solidarity
group
HR capital
investment

6. 16-POINT DECISION
1.4 principles – discipline, unity, courage and
hard work
2.Prosperity to the family
3.Repair/construct own shelter
4.Plant vegetables
5.Plant many seedlings during planting
season
6.Responsible parenthood
7.Self-support – child education

7. 8. Clean environment
9. Pit latrines
10. Potable drinking water
11. No to dowry and child marriage
12. No to violence and abuse
13. Collective business undertakings
14. Helping one another
15. Restore discipline
16. Collective social activities

8. BUSINESS MODEL INNOVATION
Reversed conventional banking practice
Social collateral approach
Banking system based on mutual trust,
accountability, participation and creativity
Loan and life insurance and pension fund
Loan provisioning
Loans paid off at death
Flexi-loan

9. CREDIT DELIVERY SYSTEM
Exclusive focus on the poorest of the poor
Borrowers organised into small homogeneous
groups
Special loan conditionalities suited for the poor
Simultaneous undertaking of social development
agenda
Design and development of organization and
management systems
Expansion of loan portfolio to meet the needs of
the poor

10. BUSINESS PROCESS IMPROVEMENT
Custom-made credit service
Repayment scheme and exit options
Assistance programs
Capacity building
Computerization

11. FIVE-STARS OF ACHIEVEMENT
- 100% repayment record

- earns profit

- self-sufficient (more deposits than loans)

- 100% Grameen borrowers’ children
in-school or completed primary school

- GB borrowers cross-over poverty line

12. 10-POINT INDICATOR
1.Food
2.Clothing
3.Shelter
4.Drinking potable water
5.Sanitary latrine
6.Adequate healthcare
7.Basic education to children
8.Minimum weekly loan installment ≥ 200 Tk.
9.Other sources of income
10.Annual savings of Tk. 5,000

13. CURRENT STATUS
68% of GB borrowers have crossed the
poverty line
March 2011
8.36 million borrowers = 97% women
2,565 branches = 22,289 staff
servicing 81,379 villages = 97% villages
over Tk 622.26 B (US$10.52B) disbursed
 88.74% repaid; 97.26% loan recovery rate
100% loans financed from GB deposits

14. GRAMEEN BANK-CREATED COMPANIES
Grameen Fund
Grameen Krishi Foundation
Grameen Motsho (Fisheries) Foundation
Grameen Kalyan (well-being)
Social Advancement Fund

15. GRAMEEN FAMILY OF ENTERPRISES
Grameen Trust
Grameen Communications
Grameen Shakti (Energy)
Grameen Telecom
Grameen Shikka (Education)

16. GRAMEEN FAMILY OF ENTERPRISES
Grameen Baybosa Bikash (Business Promotion
and Services)
Grameen Phone
Grameen Solutions
Grameen CyberNet Limited
Grameen Knitwear Limited

17. AWARDS AND RECOGNITION
1989 Aga Khan Award for Architecture
1993 King Baudouin International Development
Prize
1994 Bangladesh Independence Day Award
1994 Tun Abdul Razak Award
1997 World Habitat Award
2000 Gandhi Peace Prize
2004 Petersberg Prize
2006 Nobel Peace Prize

18. LEARNINGS
Giving the poor alms rob them of their
dignity. Let them work for every penny and
you have given them life and light and have
them recover their dignity as human beings.
All we are, are poor. All we need, are
opportunities and trust, a new lifeline, that’s
what loving in the eyes and image of Christ is
all about.

19. pamisaupan
uling maulaga at paulaga ya ing tau

21. REFERENCES
Based on the articles, information, data and
images provided for in its website,
www.grameen-info.org.
Photos and images were sourced from
google and Youtube images,
http://news.bbc.co.uk/2/shared/spl/hi/pict
ure_gallery/05/south_asia_bangladesh_sur
vey/html/7.stm,

22. THANK YOU!
Atty. Vivian T. Dabu
Entrepreneurship
July 8, 2011
Ateneo-Regis, AGSB Clark
[email protected]