CELEBRATING 40 YEARS OF ESTABLISHMENT 10 YEARS OF THE NOBEL PEACE PRIZE TO GRAMEEN BANK A DECADE OF INSPIRATION

Transcription

1 CELEBRATING 40 YEARS OF ESTABLISHMENT 10 YEARS OF THE NOBEL PEACE PRIZE TO GRAMEEN BANK A DECADE OF INSPIRATION ANNUAL REPORT 2016

2 VISION BANKING FOR THE POOR MISSION BY PROVIDING COMPREHENSIVE FINANCIAL SERVICES, EMPOWERING THE POOR TO REALIZE THEIR POTENTIAL AND BREAK OUT OF THE VICIOUS CYCLE OF POVERTY.

3 Grameen Bank 1 CONTENTS Foreword Organizational Chart The founder of GB and next Grameen Bank : 2016 Highlights Zones Location Loan Activities Village Phone Higher Education Loans Struggling [Beggars] Members Programme GB Scholarship Programme for Members Children Visitors to Grameen Bank Disbursement of loans listed under broad categories of business activities Top 25 items in order of loan amounts for which member took loans Disbursement of Microenterprise loans listed under broad categories of business activities Top 25 items in order of Microenterprise loan amounts for which member took loans Zonewise Comparative Statement Up to December 31, 2016 Comparative Consolidated Statement For The Years 2015 & 2016 Past Five years of Grameen Bank Grameen Bank Year End Update : December, 2016 ((In million BDT) Grameen Bank Year End Update : December, 2016 ((In million USD) Grameen Bank Historical Data Series : (in million BDT) Grameen Bank Historical Data Series : (in million USD) Computerization Programme Events Auditors Report and Audited Financial Statements

4 2 Grameen Bank Foreword The momentum of growth that had long been a constant feature of the Grameen Bank s operation gathered further steam in 2016, especially in the critical areas of its activities centering microfinance, savings and empowerment of the poor. The year also saw the Bank completing 33rd year of its operation spanning over nearly one-third of a century. This period is marked quintessentially by innovations and improvisations initiated by the Bank to tide over the odds and roadblocks it faced in the form of natural and other calamities. The Bank also had to come to grip with the shifting panorama of the country s financial horizon due to mushrooming of large number of competing micro-finance institutions and non-governmental organizations (NGOs). Despite these, we have no hesitation to reaffirm our faith to carve out a clearer footprint on our road to emancipate the poor under the guidance of the Bank s learned Board of Directors and goodwill of its 8.9 million members. The Bank has now come close to spreading its wings across the entire country with numerous branches and outlets to dispense its services at the door steps of its borrowers and members. What we are now trying is consolidating and strengthening these outlets to create a better impact on the country s poverty spectrum. The Bank has also shifted its gears a little further to strengthen the energetic members who have crossed over the poverty line. A tailor-made loan programme, known as Micro-enterprise Loans, has been structured for this group to encourage growth of a new breed of entrepreneurs from the bottom layer of the society. Grameen Bank not only aimed at endowing the poor with means to carve out a decent life through micro-credits but addressed the need for improving their quality of lives through collective social interactions, leadership training, and education of their children. We are happy to note that this multidimensional approach to empower the poor has not gone in vain. Many of the men and women from hitherto neglected sections of the society have edged their way into bright sunshine as elected members of union councils and other local bodies. With its scholarship and educational loan programmes, the Bank has helped a large number of their children to pursue their studies in the school, colleges and universities and look forward to become honorable members of the society. Without the helping hand of the Bank most of these children would have probably languished in lowly jobs as day labourers or farm hands. A few fortunate ones even had their wild dreams come true on account of the opportunity provided by the Bank to study in reputed universities abroad. Turning to the performance of the Bank in 2016, I am happy to report that the Bank s 2,568 branches continue to serve 81,395 villages spanning close to 93% of the country s landscape. The Bank also continued to scout new members to join the Bank s burgeoning family. By the end of the year, 94,831 new members were enrolled in the Grameen Bank s fraternity. They swelled the aggregate number of members to a staggering 8.90 million. By way of comparison, this number is close enough to the population of UAE in Asia and Austria and Switzerland in Europe. Although profit making is not the prime objective of the Bank, it continued its legacy of sound fund management, close supervision over the end of its credit and timely repayment of the loans by the borrowers. As a result, the Bank made a net profit of BDT 1393 million during the year and declared handsome cash dividends at the rate of 30%. The Bank can rightfully claim itself as one of the best performing financial institutions of the company Grameen Bank s activities through its credit windows continued to flourish both in terms of number of borrowers and amounts disbursed. The aggregate amount of assorted types of credits disbursed in 2016 was of the order of BDT billion (USD 2.38 billion) reflecting a healthy growth of 24.62% over the amount disbursed in The cumulative amount of disbursement since the inception of the Bank snowballed to a staggering BDT 1, billion (USD billion) by the end of Since the change of guards at the Bank s helm of affairs in 2011, its cumulative disbursement leapfrogged by 100%-- from BDT 700 billion in 2011 to BDT billion in As mentioned above, the Bank opened a new window for the dynamic borrowers who successfully crossed over the poverty line. By the end of 2016, the Bank had lent BDT billion (USD 4.06 billion). It reflects a substantial acceleration of disbursement of micro-enterprise loans compared to 2015 when BDT billion (USD 3.36 billion) was lent under this scheme. It gives us no small pleasure to find that many of these borrowers, who would have probably swelled the rank of unemployed youth, are churning out jobs for themselves and other unemployed people.

5 Grameen Bank 3 A house is a symbol of stability and status and serves as a stepping stone for spreading wings in quest of income generating activities. It also often serves as a dwelling house and a workshop. The Bank has given financial support to fulfill this important need of its members to build a shelter over the heads. During the year under review, the Bank disbursed BDT million (USD 3.23 million) as housing loans. It brings the total number of houses built with our housing loans to 702,730 since inception. The most vulnerable section of the poor the beggars have not escaped the Bank s radar for its mission to empower the poor. They are the most difficult people for enlistment in the Bank s mainstream borrower s groups. On account of social taboo against begging, even poor people forming the credit groups, are reluctant to induct the beggars in their groups. So, in 2002 we tailored a special scheme, known as Struggling Members Programme to provide interest free loans to peddle small items on their begging trails. Credits amounting to BDT million (USD 2.26 million) have so far been provided to 109,000 borrowers. Grameen Bank s faith on the integrity of the poor and ultra-poor is reinforced by the fact that the beggars repaid 85% of their loans in It gives us a measure of pleasure to learn that 18,909 beggars have left begging and are making a living mainly as peddlers. Considering the importance of education as a launching pad to reach a higher level of progress and prosperity, Grameen Bank has laid out generous packages to assist the GB members for the education of their children. The first one is the scholarship programme under which financial support is given to the children of Grameen members for payment of school dues, purchase of books and stationery at the school level. The number of awardees in this category in 2016 was 27,000 children. By the end of 2016 a total 293,743 children benefited from this scheme since the inception of the programme. Grameen Bank s outlay under the programme amounted to BDT million (USD 6.18 million). As an extension of its policy to promote education beyond the secondary and higher secondary level, the Bank introduced a loan programme in 1997 for the talented children of the Bank s borrowers to pursue higher education at the graduate (with honours) and postgraduate levels. By the end of the year under review 53,645 students were provided loans to pursue courses in various disciplines. GB has recently taken a further step to assist the children of its borrowers to pursue a 3-year Diploma course in nursing and Midwifery in the international standard Grameen Caledonian College of Nursing. By the end of the year 403 students have so far enrolled the course. Most of them have secured good jobs while others have joined advanced courses at home and abroad. In conclusion, I would like to express my sincere gratitude to the Chairman and members of the Board for their support. Needless to say, Grameen Bank s success to sustain its momentum of growth would not have been possible without the guidance of the Bank s learned Board of Directors reinforced by the helping hands of the Government of Bangladesh, Bangladesh Bank and other governmental agencies. No less crucial had been the hard work put in by the Bank s staff to help the Bank to become what it is today. Last but not the least, the Bank acknowledges the whole hearted cooperation of its 8.90 million members which made it possible to end the year on a positive note. Ratan Kumar Nag Managing Director (Acting)

6 4 Grameen Bank Organizational Chart BOARD OF DIRECTORS MANAGING DIRECTOR Deputy Managing Director General Manager General Manager General Manager General Manager General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Deputy General Manager Audit Dept. Md s Secretariat GB Secretariat Services Dept. Administration Dept. Co-ordination & Operation Dept (West) Training & Special Programme Establishment Dept. International Programme Dept. Co-ordination & Operation Dept(East) Monitoring & Evaluation Dept. Accounts & Finance Dept. Construction Section Technology & Development Section Planning Section

7 Grameen Bank 5 TOP EXECUTIVES OF GRAMEEN BANK (HEAD OFFICE)

8 6 Grameen Bank the founder of Grameen Bank and next PROFESSOR MUHAMMAD YUNUS (NOBEL LAUREATE) Founder Managing Director Duration : Starting from -11 May 2011 MS. NURJAHAN BEGUM MR. M SHAHJAHAN A.S.M. MOHIUDDIN RATAN KUMAR NAG Managing Director (Acting) Duration : 12 May Aug 2011 Managing Director (Acting) Duration : 14 Aug Oct 2014 Managing Director (Acting) Duration : 30 Oct Oct 2015 Managing Director (Acting) Duration : 29 Oct till now

9 Grameen Bank 7 Grameen Bank : 2016 Grameen Bank, which has been serving the nation s poor for 33 years, continued its onward march to reach new milestones in terms of the number of its members and the area it covers. 94,831 new members joined the Grameen family in 2016 bringing the total enrolment to about 8.90 million. With 40 zonal, 256 area and 2568 branch level offices, Bank s network now encompasses 81,395 villages over 93.16% of the country s 87,362 villages spread across length and breadth of the country. SERVICE AT THE DOOR STEPS OF THE POOR Instead of the poor coming to the bank Grameen Bank carries its services to the comfort zones of their door steps. It explains why the Bank s members consist largely of women who normally shy away from the glare of a conventional banks with branches located away from where the poor live. All banking transactions except loan disbursements are done in the meetings of the borrowers at the village level centres organized by the Bank s centre manager. INTEREST RATES ARE BASED ON REPAYMENT CAPACITY The interest rates of the Bank are structured with an eye on the financial status and repayment capacity of the borrowers. It does not subscribe to the conventional wisdom of loading the cost of funds for calculating interest rates for lending to the poor. On the basis of this principle the interest rates on loans for the 4 categories are as follows: Loan Category Interest Rate per annum Loans for Income Generating Activities (IGA) 20% Housing Loans 8% Higher Education Loans i. During the study period 0% ii. After the study period 5% Struggling Members (beggars) Loans 0% Grameen Bank calculates interest on declining balance method to ease the debt repayment burdens of the borrowers. For instance, for an income-generating loan of say, BDT 1,000, the borrower repays the entire amount within a year by weekly installments; the total amount repayable works out BDT 1,100 (principal amount BDT 1,000+ interest amount BDT 100) equivalent to 10% at the flat rate. Grameen Bank offers very attractive interest rates for deposits. Maximum rate is 12 per cent. LOANS AND DEPOSITS The aggregate amount of disbursement of loans by the Bank by the end of December, 2016 reached BDT billion. The present cumulative disbursement is equivalent to USD billion. The cumulative amount of savings deposited with the Bank by its members reached about BDT billion at the end of year under review. FINANCIAL RESULTS FOR 2016 The Bank does not work for profit alone as demonstrated by the zero or subsidized interest rates for the disadvantaged segments of the people. Nevertheless, the Bank continues to achieve significant growth in terms of operating and net profits. During the year the Bank earned a profit of BDT 1393 million and declared 30% cash dividend for the year. The bank has also created a Dividend Equalization Fund to serve as a cushion against adverse situation weighing down on the bank s profit due to natural or manmade calamities. It ensures a fair degree of stability in the rates of dividends payable to the shareholders over the years. It serves as an incentive for the shareholders to sustain their enthusiasm to carry forward GB s goals to empower the poor. Payment of attractive dividends serves as inspiration for shareholders to relentlessly work toward sustaining the momentum that has been a hallmark of GB s performance year after year. What is more significant is that the benefits are shared by the Bank s borrowers who are also its shareholders along with the government. THE GRAMEEN GENERALIZED SYSTEM This system was introduced in 2000 to overcome the financial constraints of the borrowers to tide over the bad days that seriously impair their capacity to repay their bank loans. The system is simple and customer friendly that provides a leeway to the members to remain in the Bank s mainstream rather than opting out of it. The Grameen has several important windows for lending money basic loans, micro-enterprise loans, housing loans, higher education loans and struggling members (beggars) loans. A basic loan is converted into a flexible loan or reschedule loan, if the borrower finds it difficult to pay the weekly installments. Flexible loan reduces the installment size to a tolerable level. At the end of 2016, nearly 5 per cent of the borrowers were on flexible loans. Flexible loan is not an independent loan. It is only a temporary detour from the basic loan. The borrower tries his or her best to revert back to the basic loan. If a borrower fails to repay the basic loan and is unwilling to go into flexible loan, s/he is reckoned as a defaulter. In that event, 100 per cent provision is made against his/her outstanding dues. If a Flexible loan is not paid back within three years, it is entirely written off. The rate of recovery of Basic Loan is close to one hundred per cent.

10 8 Grameen Bank Grameen Bank : 2016 MICRO-ENTERPRISE LOANS Grameen Bank has steered many poor to cross over the poverty line. The Bank continues to stand by them to help them reach even higher echelons of prosperity. The Bank provides larger loans, called microenterprise loans, to these fast moving members. There is no restriction on the loan size. So far 8,716,982 number of micro-enterprise loans had been availed by the members. A total of BDT billion (USD 4.05 billion) has been disbursed under this category of loans. Average loan size is BDT 34,879 (USD 443). The maximum size of a single loan taken so far is BDT 4.0 million (USD 52,825) for fish feed, poultry feed, fish cultivation and fish business. The other major categories of activities financed are grocery shops, pharmacy, dairy farms, auto-rickshaw for transportation and stone business for construction. This programme has initiated a silent revolution in rural Bangladesh by encouraging leadership and entrepreneurial qualities and self-employment opportunities. HOUSING FOR THE POOR A shelter over the head, food and clothing are the three most important needs of the mankind. Realizing the importance the shelter, GB introduced housing loan programme in 1984 to enable its borrowers to build a modest shelter over their heads. The ownership of a house infuses people with a sense of pride, security and self-respect that, in turn, provides a stepping stone to achieve economic prosperity and improved social status. The ceiling for a housing loan is BDT 60,000 for construction of a simple tinroof house. The average size of the loan is BDT 13,065 (USD 166) per borrower. The interest rate is 8 per cent per annum, repayable over a period of five years. During 2016, housing loans amounting to BDT million (USD 3.23 million) were provided to build 5578 houses. It brings the total number of houses built with the housing loans to 702,730 since inception. SCHOLARSHIPS FOR THE CHILDREN OF GRAMEEN MEMBERS Grameen Bank offers scholarships to the children of Grameen members to ease their financial constraints for payment of school dues, purchase of books and stationery. At least 50% of the scholarship money must go to the girls and the remaining 50% to both boys and girls based on overall performance. About 27,000 children, at various levels of school education, were awarded the scholarships during the year under review. It brings the aggregate number of students since the inception of the programme to 293,743 involving an amount of BDT million (USD 6.18 million). HIGHER EDUCATION LOANS Grameen Bank did not want to leave children of the members at the lurch after finishing the school level study. So it introduced the Higher Education Loan programme in 1997 to open opportunities for talented children of its borrowers to pursue higher education in medicine, engineering, agriculture and other higher education programmes at the graduate (with honours) and postgraduate levels. The loans are intended to cover all expenses incurred by the students from the beginning to the end of the study period. The loans cover admission fees, course fees, cost of stationery, food and accommodation and other related expenses. By the end of the year under review 53,645 students pursuing courses in disciplines were provided loans under this programme.

11 Grameen Bank 9 NURSING EDUCATION LOANS FOR THE FEMALE CHILDREN OF GRAMEEN BANK BORROWERS To assist the children of Grameen Bank borrowers to secure jobs at home and abroad it lends money for study in a 3-year Diploma in Nursing and Midwifery course in the international standard Grameen Caledonian College of Nursing. 403 students have enrolled for this course. 268 students are in a 3-year Diploma in Nursing and Midwifery course, while 135 students have enrolled in B.Sc. level courses in nursing in Bangladesh. LOAN INSURANCE Under this programme, all outstanding loans are paid off from the insurance fund in the event of death of a borrower. Insurance fund is created with interest generated through a savings account created by deposits of the borrowers. Borrowers are required to put amount equal to 3.0 per cent of the loan amount in a designated savings account each time a loan is taken. If the borrower s loan amount does not exceed the amount in the previous year, s/he does not have to add any more money into this account. If it exceeds, then she pays 3.0 per cent of the incremental loan amount. Balance of deposits under loan insurance programme stood at BDT billion (USD million) as on December 31, Up to that date, outstanding loans and interest amounting to BDT 5.42 billion (USD million) due from 416,695 deceased borrowers was paid off under this programme. LIFE INSURANCE Each year families of deceased borrowers of Grameen Bank are paid amounts ranging from BDT 14 to 16 million (USD 0.17 to 0.21 million) as life insurance benefits. Each family receives BDT 1,500. A total of 184,940 GB borrowers died by the end of Their families collectively received a total amount BDT million (USD 5.68 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. VILLAGE PHONES Grameen Bank provided loans to 1,688,956 borrowers up to 2016 to buy mobile phones and offer telecommunication services in nearly half of the villages of Bangladesh.It is also generating revenue for GrameenPhone, the largest telephone company in the country. Village phones use 2.22 per cent of the air-time of the company, while their number is only 1.89 per cent of the total of telephone subscribers of the company. BEGGARS AS MEMBERS Beggars are the hardest to reach under the conventional poverty alleviation programme. To capture this elusive group Grameen Bank contrived an innovating scheme in 2002 called Struggling Members Programme. Over 109,000 beggars have joined the programme. Total amount disbursed stands today at BDT million (USD 2.26 million). Of this amount of BDT million (85% of the amount disbursed) has already been repaid. GB is

12 10 Grameen Bank Grameen Bank : 2016 happy to note that 18,909 beggars have left begging and are making a living as door-to-door sales persons. Among them, 9,029 beggars have joined Grameen Bank groups as mainstream borrowers. COMPUTERIZED MIS AND ACCOUNTING SYSTEM Accounting and information management all the branches 2,568 have been computerized. These has freed the branch staff from the routine paper work and devote more time to administer the loan portfolio and supervise the borrowers and use of loan funds. Branch staffs are provided with pre-printed repayment amount of dues 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 is done only at centre level to enter figures in the borrower s passbooks. STARS FOR ACHIEVEMENTS Grameen Bank provides colour coded stars to branches and staffs for 100 per cent achievement of a specific task starting from A branch or a staff having five stars indicates the highest level of performance. At the end of 2016, 455 branches got green stars for maintaining 100 per cent repayment record, 2,209 received blue star for earning profit, 2,287 branches earned violet stars by meeting all their financing out of their earned income and deposits, 357 branches have applied for brown stars for ensuring education for 100% children of Grameen families and 71 branches applied for red stars indicating branches those have succeeded in taking all its borrowers families over the poverty line. The stars are confirmed only after the verification procedure is completed.

13 Grameen Bank 11 YEARS OF ESTABLISHMENT GRAMEEN BANK CELEBRATES TENTH ANNIVERSARY OF NOBEL PRIZE AWARD a decade of inspiration The year 2016 marks the tenth anniversary of the prestigious Nobel Prize for peace awarded jointly to the Grameen Bank and its founder, Dr. Mohamad Yunus for the Bank s stellar role to promote collateral free micro-credits for the poorer sections of the communities. The Bank owes its origin to a chance encounter of Dr. Yunus with the sad plight of poor farmers and artisans of a village close to the Chittagong University sometime in the middle of seventies. They plied their trade with money borrowed from the money lenders at usurious rates. Dr. Yunus, then a Professor of economics of the University, experimented with his idea of collateral free loans by lending them small amounts of money from his own pocket. The story of how his positive experience gained from that sleeping village led to creation of a full-fledged Micro- finance institution in 1983, named Grameen Bank, is rather long but, to cut it short, GB s reputation quickly spread across the country and earned accolades from the world leaders and development economists followed by its replication in many countries. To top it all, the award of Nobel Prize in 2006 to the GB and its founder turned out to be a memorable watershed in the history of the Bank and, indeed, the country itself. The prestigious Prize continued to serve as an inspiration for its phenomenal growth with a membership reaching close to 9 million borrowers with BDT 1,418 billion as cumulative disbursement of loans at the end of 2016.

14 12 Grameen Bank Highlights NUMBER OF MEMBERS ,901, ,806, ,640,225 NUMBER OF VILLAGES COVERED , ,392 PERCENT OF WOMEN MEMBERS , NUMBER OF BRANCHES , ,568 NUMBER OF CENTRES , , , ,613 NUMBER OF AREAS

15 Grameen Bank 13 NUMBER OF ZONES CUMULATIVE AMOUNT DISBURSED SINCE INCEPTION (IN MILLION BDT) ,417, ,230,183 AMOUNT OF LOANS OUTSTANDING (IN MILLION BDT) ,080, , , ,495 AMOUNT DISBURSED (IN MILLION BDT) , ,227 BALANCE OF DEPOSITS (MEMBERS) IN MILLION BDT , , , ,791 BALANCE OF DEPOSITS (NON- MEMBERS) IN MILLION BDT) , , ,002

16 14 Grameen Bank Zone s Locations Chittagong Tangail Rangpur Manikganj Patuakhali Bogra Sylhet Rajshahi Dinajpur Faridpur Comilla Mymensingh Narayanganj Khulna Noakhali Jamalpur Nilphamari Habiganj Pabna Barisal Jhenaidah Cox s bazar Gaibandha Noagaon Jessore Chandpur Kishoreganj Bhola Rangamati Gazipur Madaripur Thakurgaon Pirojpur Sunamganj Feni Narsingdi Kurigram Netrokona Sirajgonj Sherpur

17 15 Grameen Bank Panchagarh L Lalmonirhat rhat rh ht Nilfamari Dinajpur 40 Zones Rangpur MEGHALAYA (INDIA) (INDIA) Gaibandha Netrokona Jamalpur Bogra CChapainawabganj Ch njj Sunamganj Mymensingh Maulvibazar Nator Habiganj Tangail Sirajganj Brahmanbaria m TRIPURA (INDIA) Jhinaidaha Magura Faridpur Comilla Khagrachari Narail Jessore La Lakshmipur Noakhali Shatkhira WEST BENGAL (INDIA) C Chittagong Bagerhat Ra Rangamati Bhola Bandarban Coox' CCox oox's x Bazar BAY OF BENGAL MYANMAR

18 16 Grameen Bank

19 Grameen Bank 17 Bamboo works Cane works Pottery products Puffed rice making Garments making Sweet meat making Furniture making Quilt making Blacksmith works Agriculture equipments making Fishing net making Vegetables cultivation Betelleaf cultivation Paddy cultivation Turmeric cultivation Sugarcane cultivation Wheat Cultivation Pepper Cultivation Onion Cultivation Jute cultivation Boro-Irri cultivation Milch cow Cow fattening Poultry raising Dry fish Sheep raising Duck purchase Pigeon raising Horse raising Buffalo raising Pisciculture LOAN ACTIVITIES Shallow Tube-well Thrasher Machine Power Tiller Power Pump Rice Mill Computer Computer Printer Electric Generator Refrigerator Welding & Drill Machine E.C.G & X-ray Machine Photostat Machine Village Phone Rice/Paddy trading Pulse trading Salt trading Pepper trading Vegetables trading Molasses (Gur) trading Fire Wood trading Timber trading Chicken trading Fish trading Dry Fish trading Cattle trading Seeds trading Banana trading Grocery shop Stationery shop Medicine shop Tea stall

20 18 Grameen Bank Village Phone The concept of Village phone is an idea which caught people s imagination. Grameen Bank members have entered the age of information technology by leasing and purchasing cellular phones. The mobile phones not only create a new business opportunity for the poor, but also bring access to information, market, health and other services to the remote rural areas of Bangladesh. This was a major innovation; placing modern cell phones in the hand of the woman from poorest households in remote villages, something that no telecom operator had dared to do in the past. With Grameen Bank financing a Grameen Bank borrower buys a mobile phone to become the Telephone Lady of the village. She provides the telecommunication services to the village while earning profits for herself. By the end of 2016, there were about 1.69 million Telephone ladies who have together taken loans amounting to BDT 2.73 billion. The demand of the Village phone services is increasing day by day. During the year 2016 nearly 58,605 new phones were distributed. Grameen Bank, in collaboration with Grameen Telecom (The company which was incorporated as a not-for-profit venture under the companies act of 1994) has made a plan to finance nearly 225,000 new phones to its members during the next year. The additional income by selling telephone service and internet based facility through electronic recharge system (ERS, EDGE,/GPRS) of telephone ladies is almost double that of the national per capita income. Zonewise statistics of village phones financed through the Bank s lending programme are given in the following page. PROGRESS OF VILLAGE PHONES UP TO DECEMBER, 2016 Sl No Zone No of branches covered No of Village Phone owned by Bank members 1 Chittagong 72 17,989 2 Tangail 78 59,538 3 Rangpur 59 15,925 4 Manikganj 62 26,327 5 Patuakhali 87 38,234 6 Bogra 74 78,801 7 Sylhet 70 33,572 8 Rajshahi ,926 9 Dinajpur 63 52, Faridpur , Comilla 76 43, Mymensingh 55 48, Narayanganj 62 33, Khulna 69 41, Noakhali 78 41, Jamalpur 56 50, Nilphamari 61 52, Hobiganj 59 26, Pabna 61 78, Barisal 80 36, Jhenaidah 74 26, Cox s bazar 59 8, Gaibandha 55 30, Noagaon , Jessore 80 41, Chandpur 54 24, Kishoreganj 71 29, Bhola 52 15, Rangamati 44 18, Gazipur 49 32, Madaripur 67 53, Thakurgaon 72 30, Pirojpur 61 18, Sunamganj 50 22, Feni 48 15, Narsingdi 39 25, Kurigram 48 11, Netrokona 63 14, Sirajganj 46 44, Sherpur 61 34,557 Total 2,568 1,688,956

21 Grameen Bank 19 FLEXILOAD PROGRAMME Flexiload program started from April 2006 in Tangail and Comilla zone as a ROSA (retailer outlet sales agent) pilot project. The agreement between Grameen Bank (GB) and Grameenphone (GP) was to sell handset, accessories and bulk airtime in rural areas through GB members. The programme is still now successfully going on. Finally, the agreement was set up on November 06, 2006 to expand the programme in other zones. In this programme, Grameenphone is the principal or host and Grameen Bank acts reload distributor functioning perfectly through a master SIM card. Selected GB members are the sales agents who get load from logistics management team of Grameenphone under GB channel. GB agents transfer their load as per end users demand. It is continuous process. GB s commission is 0.90% and sales agent s commission is 2.70% respectively. Up to December 31, 2016 GB creates 1,000 sales agents in 40 zones. The total transaction averagely reaches at the end of the year in BDT million. Grameen Bank and agents jointly received commissions amounting BDT million. Now every week Grameen Bank agents are transacting BDT 1.00 million. Grameen Bank plan is to make 2,000 Grameen Bank agents very soon. We hope this program will develop and reinforce strategies, which will bring high economic benefits to Grameen Bank members.

22 20 Grameen Bank HIGHER EDUCATION LOANS The higher Education Loan Programme was introduced in 1997 for the children of Grameen families so that they can pursue education at the highest level. Since its inception, the programme has distributed 53,645 loans worth BDT million (USD million). In 2016 alone, 288 students were sanctioned loans. Khulna zone has the most number of students (4,193) receiving higher education loans, with Jessore zone second (4,163). The Dudsar Sailkupa branch under Jhenaidah zone has given the highest number of higher education loans (169). PERCENTAGE OF NUMBER WHICH STUDENT TOOKS LOAN DISBURSEMENT OF HIGHER EDUCATION LOANS UP TO DECEMBER, Degree/Discipline Number Amount (Million BDT) Masters (General) Bachelor degree (Honours) 45,707 3, MBA BBA B.Sc. (Engineering) 1, M.Sc. (Agriculture) B.Sc. (Agriculture) Degree in Medicine Diploma (Nursing) B.Sc (Nursing) Total : 53,645 3, CASE STUDY 0.34 % MBA 1.55 % BBA 2.20 % B.Sc. (Engineering) 0.27 % M.Sc. (Agriculture) 1.38 % B.Sc. (Agriculture) 1.58 % Degree in Medicine 0.50 % Diploma (Nursing) 0.25 % B.Sc (Nursing) 6.72 % Masters (General) % Bachelor degree (Honours) KAMRUL S STORY OF A DREAM COMES TRUE Mohammad Kamrul Islam is a talented young person who, from an early age, nurtured a strong desire to achieve excellence in the academic field. But poverty stood between him and what looked like his wild dream to break the shackles of poverty in which his family was languishing. Kamrul was born in 1982 in a struggling family which had no regular source of income. They could ill afford to meet the costs of his education but he had dream to live by. Despite the financial constraints, Kamrul put his heart and soul to his studies. Success did not elude him. He completed his primary education from his village school with flying colours, securing scholarship at the primary level. His mother, Jolly Bibi was a member of GB s Centre No. 21/M of Sreepur Bagmara Branch under the Rajshahi Zone. She arranged another scholarship for his son from the GB under its scholarship programme for school level education of the children of its members. This generous endowment from the GB signaled the beginning of kamrul s quest to see his ambition translate into reality. His devotion to studies and passion for learning started to gather further momentum. His hard work and strong determination paid off. Kamrul passed both the SSC and HSC examinations with GPA At this stage, however, there stood a greater hurdle to carry forward his mission for higher education. Though he succeeded in securing admission in the Chittagong University of Engineering and Technology for academic sessions he found himself at his wit s end to meet the cost of continuing his studies. He was about to drop out but fortune again smiled on Kamrul. As good fortune would have it, his mother overheard a discussion in one of the meetings about higher education loan programme of the Grameen Bank for the children of its members. This serendipitous discovery served as a spark for Kamrul and his mother to work with the GB s Bagmara branch to secure loans for financing the cost of his education. For the next four years. Kamrul drew a total of BDT 1,00,000 in quarterly instalments; the last one in July 12,2015. With a brilliant academic record behind him, Kamrul did not have to wait long to land a job in Bangladesh Army. However, in 2016 he switched over to a coveted job as lecturer in his beloved Alma Mater-- Chittagong University of Engineering and Technology in the same Department he had studied before. While narrating his epic struggle to achieve his goal, Kamrul was lost for words to express his indebtedness to the Grameen Bank to make him what he is today a prestigious faculty member of a renowned University.

23 Grameen Bank 21 CREDIT PROGRAMME FOR SELF-EMPLOYMENT OF THE RECIPIENTS OF HIGHER EDUCATION LOANS Grameen Bank has introduced a special Credit Program for Self-employment of the recipients of the bank s higher Education Loans, who have either completed or still pursuing their education. The objective is to provide the enterprising and hard working students financial support to create a band of new entrepreneurs. The philosophical basis of the program is to imbue them with the slogan We wouldn t beg others for jobs, we ll create jobs for others. The programme is aimed at changing the age old perception of the unemployed youth about jobs being their only aim of life, and turn their attention to the virtue of self- employment. This programme, it is hoped, will contribute to reduction of poverty through use of local raw materials and appropriate technology for promotion of agro-based industries. The Bank has set a detailed guideline for the programme. The students may avail of the facility either singly or jointly for investment in any productive sector. No ceiling has been fixed for the loan amount but the borrower s capacity will be taken into account to determine the loan amount. The sectors for which financial support are provided include small business, nursery, cow and goat rearing, poultry, small clinics and health centers, phone shops etc. CASE STUDY SUFIA S STORY OF RAGS TO RICHES Borrower No in Centre19/M of GB s Uttar Khan Branch, Sufia has seen her poor household transform into a prosperous family under the guidance and financial assistance of Grameen Bank. She was married off to one struggling watch mechanic in the crisis ridden days of nineties. The young mechanic was earning a paltry amount of about BDT 3,000 per month. Sufia s quest for a better life took her to the door of the nearest branch of Grameen Bank at Uttar Khan. After about a month of extensive orientation about GB s principles and operation she was accepted as a member on January 24, Sometimes later Sufia collected a loan of BDT 3,000 from the GB and procured watch parts for her husband s watch repair shop. From this time on the family s fortune started to reach new heights. With money earned from the repair and spare parts shop, the couple rented a shop at the Tongi Bazar on payment of BDT 15,000 as advance rent. Later on, she borrowed a sum of BDT 40,000 from the GB under its special investment programme and ventured into the new business of electronic parts and microphones. Their reputation and hard work paid off. Over time, the business flourished. In the meantime, Grameen Bank too extended new loan facilities every year and their capital and assets too grew at a rapid pace. Before ending the story of her meteoric rise from penury to prosperity, Grameen Bank is happy to note that Sufia has built up a capital of over BDT 10 million while she owes only BDT 2.7 million to GB. She regularly attends the centre meetings and pays off BDT 27, 000 to the GB as weekly loan instalment. In the meantime, she has accumulated a bank balance of BDT 1.1 million and saves BDT 8,000 every month in the GPS account. She has built up a semi-pucca residential building for themselves on two kathas of land now worth about BDT 4 million. They have also landed property worth about BDT 20 million close to their homestead. Their only daughter has done her honours degree and is now happily married to a businessman in the capital s posh locality in Gulshan area. Sufia could barely check tears rolling down her cheek while expressing her gratitude to the Grameen Bank for its contribution to bring sunshine into their lives.

24 22 Grameen Bank STRUGGLING (BEGGARS) MEMBERS PROGRAMME To reach out to the beggars, Grameen Bank has taken up a special programme, called Struggling Members Programme which started from July Begging is the last resort for survival for a poor person, unless he/she turns towards 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. The objective of the programme is to provide financial services to the beggars to help them find a dignified livelihood, send their children to school and to make them graduate into becoming regular Grameen Bank members. We wish to make sure that no one in the Grameen Bank villages has to beg for survival. Basic features of the programme are : Existing rules of Grameen Bank do not apply to beggar members; they make up their own rules. All loans will be interest-free. Loans can be of a very long term, in order to make repayment installments very small. For example, for a loan to buy a quilt or a mosquito-net, many borrowers are paying BDT 2.00 (3.4 cents US) per week. Beggar members are covered under life insurance and loan insurance programmes without incurring any cost. Groups and Centres are being encouraged to become patrons of this type of members. Each member receives an identity badge with her picture and name, and Grameen Bank logo. She can display this as she goes about her daily life, to let everybody know that she is a Grameen Bank member and this national institution stands behind her. Members are not required to give up begging, but are encouraged to take up an additional incomegenerating activity like selling popular consumer items door to door, or at the place of begging. As of 31st December, 2016 cumulative members under this programme reaches at 109,000 out of them 105,848 are women. By this time 2,568 branches of Grameen Bank have implemented the programme. So far BDT million has been disbursed and BDT million has already been repaid. The Struggle members saving balance stood BDT 9.60 million.

25 Grameen Bank 23 CASE STUDY BIBI KANCHAN-- THE STORY OF A STRUGGLING MEMBER S EPIC STRUGGLE FOR SURVIVAL AGAINST HEAVY ODDS Bibi Kanchan a struggling member in Grameen Bank s parlance is attached to Dhanyapur of Neyjpur Noakhali branch. She was a typical illiterate village girl from a poor family. They had what can be called an apology of a house a small tin roofed shanty. Her father, Daiya Mia was a day labour while her mother, Sabura Khatun tried to supplement their income by doing odd jobs in the neighbourhood. The poor girl reached her adulthood but who would agree to marry such a illiterate girl from a poverty ridden finally? At a late stage, however, a day labour from Noakhali, who had come to the locality in search of work married her. Unfortunately, her husband was afflicted with liver cirrhosis. Due to extreme poverty the family could do nothing but saw him embracing the inevitable death almost without any medical treatment. By now she had conceived a baby boy. Her father built a hutment for them close to her own house. She started to eke out a meagre living by begging from door to door. She soon learned about a special programme for ultra-poor people like her the Struggling Members project. The Bank accepted her application and lent BDT 1,000 to buy small household goods for peddling along her begging trail. She repaid her loan with a weekly payment BDT 5. Currently her outstanding loan to Grameen Bank is BDT 2,000. Due to old age she cannot work hard but is somehow making their two ends meet by peddling goods alongside her old profession of begging. GB has not enriched her life but threw her a lifeline, tenuous but something to hold on to overcome the heavy odds stacked against them in a cruel world.

26 24 Grameen Bank GB SCHOLARSHIP PROGRAMME FOR MEMBER S CHILDREN In order to facilitate better educational opportunities for the children of Grameen members, Grameen Bank launched a scholarship programme for talented students, in To encourage schooling of Grameen children, Grameen Bank introduced scholarship programme, so that, children from the poor families stay in school, and complete in both academic and extracurricular activities. Priority is given to girls. In Bangladesh education for girls is generally considered not as important as for boys. Even today, the general attitude of the society is such that women are supposed to take back seats and confine themselves in the role of a housewife after marriage. At least 50% of the scholarship money must go to girls and the remaining 50% will be given to both boys & girls based on overall performance. Scholarships are given annually. Up to December, 2016 scholarships to the extent of BDT million (USD 6.18 million) were offered to students. SCHOLARSHIP: Categories Girls Number Boys Total Primary 24,440 16,038 40,478 Junior Secondary 37,307 24,020 61,327 Secondary 53,104 41,228 94,332 Higher Secondary 45,646 34,080 79,726 Cultural 12,488 5,392 17,880 Total: 172, , ,743 GB BRIGHTENS THE LIVES OF MRS. REKHA BEGUM AND HER DAUGHTER, REMI AKHTER Mrs. Rekha Begum s story is not much different from her peer in the Grameen Bank s fraternity nearly 9 million of them, comprising mostly of poor women. A common thread, poverty, binds them together. They have demonstrated strong camaraderie to banish this scourge from their lives with a helping hand from the Grameen Bank. Mrs. Rekha Begum joined 58/M centre under Dharabashia Gurudashpur branch of Grameen Bank of Natore district in November, Rekha s husband was a poor sharecropper. Shortly after marriage, Rekha Begum set out to devise ways to increase the family s earnings. She started off with rearing goats and cows of other people on sharing basis. Her herd of goats and cows began to get bigger and now owns 10 goats. Two milk cows produce 10 to 12 litres of milk which fetch BDT 500 to 600 on daily basis. Her husband now does not have to work on other people s lands. By now the family has bought 4 bighas of cultivable lands of their own. The couple has raised three children two daughters and a son. The elder daughter has been married off while the younger one is studying an honours course in the Rajshahi University. The son is studying in Pabna College of Engineering and Technology. However, the family finds it hard to defray the cost of education of two children. The Grameen Bank has extended its helping hand to provide financial assistance in the form of scholarship to Remi. She had an excellent academic record in SSC and HSC examinations securing GPA 5 in both the examinations. The family is looking forward for better days when Remi and her brother will have completed their education.

27 Grameen Bank 25 Higher Education SCHOLARSHIP NEW WINDOW OF OPPORTUNITY AT INTERNATIONAL LEVEL In addition to scholarships arranged for education of children of GB members for study at different levels in the educational institutions at home, GB has opened new window of opportunities for the children of Grameen family to pursue higher education, with full scholarships, in the following prestigious universities at home and abroad. KHAZANAH ASIA SCHOLARSHIP PROGRAMME Khazanah Foundation, Malaysia awards 87 scholarships every year in 4 categories for students from all parts of the world. A new scholarship programme known as The Khazanah Asia Scholarship has been instituted to award 25 scholarships to students of Asia for 3 to 4 year course in different categories at the graduate/ undergraduate level with the object of creating leadership in the field of industry and commerce. The Foundation has decided to award 5 scholarships every year under this programme, beginning from 2009, for the children of GB members. The following table shows selected number of students from GB borrower s children under the programme for undergraduate courses from 2009 session to 2015 and the current year Year/Session Total Number of Students The following student is selected from GB borrower s children under the programme for undergraduate course for 2016 session. SERIAL NO. NAME OF STUDENT NAME OF THE MEMBER NAME OF GB BRANCH/ZONE SUBJECT OF STUDY NAME OF UNIVERSITY 1 Md. Mahmudul Hasan Shamsun Nahar Mankon Muktagasa, Mymensingh Foundation in Computer Science Tenaga National University, Malaysia ASIAN UNIVERSITY FOR WOMEN, CHITTAGONG SCHOLARSHIPS Asian University for Women is an ultra modern international standard residential university with a goal of preparing the women of different Asian countries to assume leadership in the society in an international environment. Eight children of GB members are studying in the university from session, Eight children from session, one child from session and two children from session with full scholarships. Applications of 10 students have been sent to the University for Selection for admission in the session. An amount of about BDT 700,000 (about USD 1000) is spent per year per student on tuition, board, meals etc.

28 26 Grameen Bank Visitors to Grameen Bank Grameen Bank s reputation as a pioneer for alleviation of poverty through micro-credits regularly attracts streams of visitors from home and abroad to gain an insight into its recipe for success. Many of the visitors come here to learn the basic principles and modalities of its operation with a view to replicating Grameen model in their own countries. The visitors consist mainly of policy makers in the government and other institutions, journalists, representatives of the think tanks, researchers from academia and internee students from universities and colleges as part of their academic curricula. Grameen Bank s International Programme Department play hosts to the visitors and assist them to fulfil their missions. The largest group of overseas visitors consists of people wishing to learn the Grameen system through exposure to its underlying philosophical moorings and the Bank s modality of operation. The second important category is students from various universities and colleges. They spend one to three months with the Grameen Bank to gain knowledge on the Bank as part of their curricula. The following is a list of programmes in which overseas visitors generally participate: 1. Exposure visit 2. Internship 3. Basic training 4. Research 5. Grameen International Dialogue 6. Media support, Documentary, journalists, writers etc. The following chart shows the flow of foreign visitors of the Bank during the last 2 years; Programme No. of visitors Exposure Internee Basic Training 10 5 Journalists - 3 Total Alongside the foreign visitors, the universities in Bangladesh too are increasingly showing interest to send their students to learn about the philosophy and mode of operation of the Bank. During the period of 5 years-- from 2012 to ,075 visitors from 95 countries including Bangladesh visited the Grameen Bank. The following table shows the number of visitors from 10 leading and other countries from 2011 to 2016:

29 Grameen Bank 27 THE FOLLOWING TABLE SHOWS THE NUMBER OF VISITORS FROM 10 LEADING AND OTHER COUNTRIES: Sr No. Country No. of visitors 1 Japan America Bangladesh China Nepal India Thailand Germany Italy Spain Others % of the visitors from Japan which tops the list came for exposure to the Grameen system. It reflects their love for travel abroad and strong inclination to learn from the experiences of other countries on critical issues. On the other hand, 95% of the German and Italian visitors were students who came for internship with the Bank. The visitors from the neighbouring Nepal comprised entirely of those who wanted to learn from the Bank s experience on dispensation of small credits. Visitors also came from such exotic and faraway countries as Albania, Burundi, Mauritania, Tonga, Kazakhstan, Lesotho and our mountainous neighbour, Bhutan. Outbound tourism country Japan also had their shares of visitors with 45 in Tourist based and one of the best microfinance practice country Nepal also send their visitors with 81 in Some Asian country China with 71, neighbour country India 21 and Bangladeshi 346 visitors also join this programme. A pie chart depicts the flow of visitors from different continents during the 6 year period % OTHERS 4.26 % INDIA 2.18 % SPAIN 6.84 % NEPAL 2.64 % ITALY 7.76 % CHINA 2.64 % GERMANY % BANGLADESH 3.63 % THAILAND 9.97 % AMERICA % JAPAN GB does not look upon foreign visitors as a source of income, it collects small fees to cover its expenses for playing hosts to them. Grameen Bank always remains prepared to share its experience in handling the critical issue of poverty that unfortunately still bedevil the lives of nameless millions of people of our planet.

30 28 Grameen Bank Disbursement of loans listed under broad categories of business activities Disbursement Of All Types Loans During January To December, 2016 SERIAL NO. ITEMS MALE FEMALE TOTAL No. of Loans Amount of Loans No. of Loans Amount of Loans No. of Loans Amount of Loans 1 Processing & Manufacturing 37, ,724,707 1,370,277 27,577,147,741 1,407,752 28,420,872,448 2 Agriculture & Forestry 69,955 1,715,110,891 2,429,138 49,284,929,303 2,499,093 51,000,040,194 3 Livestock & Fisheries 27, ,836,866 1,595,633 43,474,499,272 1,622,690 44,177,336,138 4 Services 6, ,285, ,616 3,504,845, ,559 3,667,131,041 5 Trading 28, ,129,724 1,201,010 26,187,096,406 1,229,132 27,049,226,130 6 Peddling ,301,987 48,810 1,124,020,504 49,551 1,147,322,491 7 Shopkeeping 18, ,688,404 1,003,948 31,369,883,193 1,022,693 32,072,571,597 Total : 189,038 5,012,078,142 7,918, ,522,421,897 8,107, ,534,500,039 (Amount in BDT) DISBURSEMENT OF ALL TYPES OF LOANS NO. OF LOANS AMOUNT OF LOANS Shopkeeping Peddling Trading Services Livestock & Fisheries Agriculture & Forestry Processing & Manufacturing

31 Grameen Bank 29 Top 25 items in order of loan amounts for which member took loans During the year 2016 (January 16 To December 16) For Male Amount (Order Descending) For Female Amount (Order descending) Serial Activity Name Male No Male amount 1 Paddy cultivation 14, ,120,099 2 Grocery shop 8, ,624,991 3 Cow fattening 11, ,925,251 4 Milch cow 9, ,654,383 5 Agriculture equipments making 12, ,702,605 6 Rice/Paddy trading 9, ,446,953 7 Land lease 8, ,822,539 8 Farming 8, ,523,393 9 Stationery shop 4, ,705, Plantation 5, ,445, Miscellaneous business 3, ,377, Vegetables cultivation 4, ,012, Water melon 4, ,010, Cloths trading 2,407 88,188, Paddy husking 3,883 79,938, Vegetables trading 2,862 75,585, Rabi crop cultivation 2,598 70,648, Betelleaf cultivation 2,487 62,209, Land preparation 2,022 57,528, Bamboo works 2,583 55,915, Land cultivation 2,245 55,035, Boro-Irri cultivation 2,499 52,234, Fish trading 1,708 51,511, Poultry raising 1,313 39,883, Pottery products 1,990 38,877,181 Serial Activity Name Female No Female amount 1 Cow fattening 756,221 26,263,266,015 2 Grocery shop 438,910 19,979,481,524 3 Milch cow 514,119 10,270,375,922 4 Paddy cultivation 475,276 9,240,847,084 5 Rice/Paddy trading 396,209 8,016,557,622 6 Farming 342,197 7,283,833,643 7 Agriculture equipments making 356,321 6,677,519,015 8 Land lease 281,147 6,392,719,950 9 Stationery shop 341,853 5,356,765, Plantation 290,318 5,294,181, Vegetables cultivation 198,622 3,814,095, Water melon 171,627 3,542,717, Bamboo works 152,773 3,113,052, Vegetables trading 144,770 2,909,038, Miscellaneous business 117,708 2,842,710, Paddy husking 174,487 2,768,295, Land cultivation 138,445 2,767,928, Betelleaf cultivation 109,106 2,296,792, Fish trading 90,692 2,056,996, Pisciculture 81,602 1,809,492, Cloths trading 57,031 1,754,578, Bullock fattening 89,509 1,685,110, Cloths shop 43,199 1,300,070, Rabi crop cultivation 65,886 1,262,492, Rickshaw 67,044 1,260,009,596 26,538,191,266 20,300,106,515 (Amount in BDT) (Amount in BDT) Top 25 items in order of total loan amounts for which member took loans during January 2016 to December , ,639 Cow fattening Grocery shop Milch cow 524, , , ,064 Paddy cultivation Rice/Paddy trading Farming 369,099 Agriculture equipments making 289,812 Land lease Stationery shop 346, ,303 Plantation Vegetables cultivation 203, ,825 Water melon Bamboo works 155, ,632 Vegetables trading Miscellaneous business 121, , ,690 Paddy husking Land cultivation 111,593 92,400 Betelleaf cultivation Fish trading Cloths trading 59,438 81,885 90,652 Pisciculture Bullock fattening Cloths shop 44,326 68,484 Rabi crop cultivation Puffed rice making 56,630 Number of Loan Taken 10,540,030,305 9,583,967,183 8,277,004,575 7,510,357,036 6,942,221,620 6,629,542,489 5,562,470,334 5,431,627,246 3,929,107,974 3,649,727,677 3,168,967,052 2,984,623,930 2,977,087,309 2,848,234,354 2,822,964,416 2,359,001,778 2,108,508,916 1,842,766,804 1,817,613,851 1,711,206,771 1,334,912,064 1,333,141,031 1,290,346,105

32 30 Grameen Bank Disbursement of microenterprise loans listed Under broad categories of business activities Disbursement Of Microenterprise Loans During January To December, 2016 SERIAL NO. ITEMS MALE FEMALE TOTAL No. of Loans Amount of Loans No. of Loans Amount of Loans No. of Loans Amount of Loans 1 Processing & Manufacturing 3, ,642, ,765 6,404,219, ,198 6,535,861,664 2 Agriculture & Forestry 6, ,251, ,187 9,907,816, ,028 10,220,068,533 3 Livestock & Fisheries 6, ,438, ,911 7,626,013, ,063 7,844,452,319 4 Services 1,936 73,558,873 27,173 1,022,745,864 29,109 1,096,304,737 5 Trading 5, ,687, ,238 8,948,205, ,030 9,250,892,391 6 Peddling 148 9,332,040 9, ,372,506 9, ,704,546 7 Shopkeeping 6, ,151, ,418 18,698,438, ,064 19,094,589,506 Total : 30,948 1,444,061,984 1,502,125 52,998,811,712 1,533,073 54,442,873,696 (Amount in BDT) DISBURSEMENT OF ALL TYPES OF LOANS NO. OF LOANS AMOUNT OF LOANS Shopkeeping Peddling Trading Services Livestock & Fisheries Agriculture & Forestry Processing & Manufacturing

33 Grameen Bank 31 Top 25 items in order of Microenterprise loan amounts for which member took loans During the year 2016 (January 16 To December 16) For Male Amount (Order Descending) For Female Amount (Order descending) Serial Activity Name Male No Male amount 1 Grocery shop 2, ,204,957 2 Stationery shop 2, ,619,548 3 Cow fattening 2, ,142,892 4 Milch cow 2,318 83,681,313 5 Land lease 1,357 73,261,187 6 Paddy cultivation 1,236 72,639,275 7 Rice/Paddy trading 1,555 68,184,473 8 Miscellaneous business ,731,254 9 Cloths trading ,970, Bullock fattening 1,075 35,791, Water melon ,520, Cloths shop ,396, Vegetables trading ,268, Betelleaf cultivation ,809, Farming ,286, Stationery goods trading ,803, Agriculture equipments making ,781, Plantation ,246, Vegetables cultivation ,406, Land preparation ,400, Medicine shop ,273, Bamboo works ,211, Fish trading ,153, Boro-Irri cultivation ,817, Shop trading ,930,826 12,249,765,545 (Amount in BDT) Serial Activity Name Female No Female amount 1 Grocery shop 187,485 12,077,560,588 2 Stationery shop 281,760 4,178,635,308 3 Cow fattening 91,886 2,742,546,413 4 Milch cow 79,277 2,704,821,369 5 Rice/Paddy trading 73,418 2,438,884,571 6 Land lease 44,271 1,715,978,910 7 Paddy cultivation 47,472 1,388,125,078 8 Farming 29,745 1,052,171,754 9 Water melon 40,909 1,044,794, Bamboo works 27,761 1,007,296, Miscellaneous business 25,064 1,001,876, Vegetables cultivation 24, ,376, Vegetables trading 27, ,805, Cloths shop 20, ,469, Fish trading 20, ,067, Agriculture equipments making 22, ,362, Cloths trading 14, ,779, Pisciculture 21, ,751, Plantation 18, ,160, House repairing 8, ,008, Betelleaf cultivation 17, ,889, Puffed rice making 13, ,124, Furniture making 11, ,024, Medicine shop 10, ,826, Cane works 12, ,731,701 (Amount in BDT) Top 25 items in order of Microenterprise loan amounts for which member took loans during January 2016 to December , ,034 Grocery shop Stationery shop Cow fattening 94,788 81,595 74,973 Milch cow Rice/Paddy trading Land lease 45,628 48,708 30,128 Paddy cultivation Farming Water melon 41,347 25,832 28,103 Miscellaneous business Bamboo works Vegetables cultivation 24,423 28,314 21,388 Vegetables trading Cloths shop Fish trading 21,069 15,131 22,827 Cloths trading Agriculture equipments making 21,391 19,276 Pisciculture Plantation House repairing 8,465 18,300 13,513 Betelleaf cultivation Puffed rice making Furniture making 11,685 10,919 Medicine shop Cane works 12,364 Number of Loan Taken 4,334,254,856 2,844,689,305 2,788,502,682 2,507,069,044 1,789,240,097 1,460,764,353 1,070,458,478 1,064,315,657 1,053,607,755 1,021,508, ,782, ,073, ,866, ,221, ,749, ,143, ,149, ,407, ,925, ,699, ,172, ,993, ,100, ,841,426

34 32 Grameen Bank COMPARATIVE STATEMENT UP TO DECEMBER 31, 2016 Sl No. Zone Amount Disbursed (In Million BDT) Amount in Million BDT Outstanding Zone Percentage Numbers Members Zone Percentage Female Percentage No of Branches Outstanding Per Branch (In Million BDT) Outstanding Per Member (In BDT) Member Per Branch 1 CHITTAGONG 56, , , ,208 2,498 2 TANGAIL 59, , , ,827 3,933 3 RANGPUR 27, , , ,678 4,353 4 MANIKGANJ 60, , , ,684 4,003 5 PATUAKHALI 38, , , ,699 2,965 6 BOGRA 48, , , ,077 4,164 7 SYLHET 25, , , ,115 2,996 8 RAJSHAHI 61, , , ,008 3,566 9 DINAJPUR 31, , , ,697 4, FARIDPUR 49, , , ,410 2, COMILLA 67, , , ,106 3, MYMENSINGH 26, , , ,794 3, NARAYANGANJ 75, , , ,167 3, KHULNA 31, , , ,474 3, NOAKHALI 41, , , ,416 2, JAMALPUR 24, , , ,620 4, NILPHAMARI 21, , , ,897 4, HABIGANJ 32, , , ,587 4, PABNA 47, , , ,543 4, BARISAL 43, , , ,162 2, JHENAIDAH 43, , , ,963 3, COX'S BAZAR 29, , , ,102 2, GAIBANDHA 22, , , ,821 3, NAOGAON 35, , , ,933 3, JESSORE 34, , , ,175 2, CHANDPUR 27, , , ,970 2, KISHOREGANJ 26, , , ,089 3, BHOLA 18, , , ,880 2, RANGAMATI 13, , , ,161 1, GAZIPUR 51, , , ,930 4, MADARIPUR 37, , , ,088 3, THAKURGAON 28, , , ,774 3, PEROJPUR 23, , , ,040 2, SUNAMGANJ 16, , , ,668 3, FENI 24, , , ,723 2, NARSINGDI 27, , , ,725 5, KURIGRAM 18, , , ,646 4, NETROKONA 15, , , ,380 2, SIRAJGANJ 35, , , ,527 4, SHERPUR 17, , , ,989 4,023 Total 1,417, , ,901, , ,283 3,466

35 Grameen Bank 33 COMPARATIVE CONSOLIDATED STATEMENT FOR THE YEARS 2015 & 2016 (Amount in Million BDT) Sl. Particulars Increase/Decrease During Basic Loans Disbursed Repaid Flexible Loans Disbursed Repaid Housing Loans Disbursed Repaid Other Loans Disbursed Repaid Outstanding Loans Interest ( ) Average Outstanding per Loanee (In BDT) Overdue Loans ( ) 7 Overall Repayment percentage Deposits Balance : GB Members Number of Members Female Male (39.00) Total Number of Loanees Number of Centres (486.00) 12 Number of Villages Covered Number of Branches in Operation Number of Areas (9.00) 15 Number of Zones Information Management Centres (9.00) 17 Higher Education Loans Disbursed Number of Higher Education Loanees Number of GB Scholarships Amount of GB Scholarships

36 34 Grameen Bank Past Five Years OF Grameen Bank CUMULATIVE DISBURSEMENT OF LOANS At the end of 2011, cumulative disbursement of loans was BDT 703,000 million. Up to 2016, this figure reached BDT 1,417,716 million, which translates to an increase of growth 102% during the five-year period. The average annual growth of cumulative disbursement of loans during this time was 8.42%. 2016: DISBURSEMENT OF LOANS The highest amount of loan disbursed in the month of November (BDT 19,009 million). On the other hand, the lowest amount of loan disbursed in July (BDT 11,252 million). The average amount of loan disbursed per month during the twelve months was BDT 15,628 million ,319 15,075 15,989 13,913 15,665 17,208 11,252 17,199 12,682 16,885 19,009 17,336 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CUMULATIVE DISBURSEMENT OF HOUSING LOANS Up to 2011, BDT 9,026 million was disbursed as housing loans. In 2016, this figure stood at BDT 9,362 million, which translates to an increase of 3.72% during the five-year period. The average annual growth of cumulative disbursement of housing loans during this time was 0.74%.

37 Grameen Bank 35 CUMULATIVE NUMBER OF HOUSING LOANS Up to 2011, the cumulative number of housing loans was 691,322. Up to 2016 this figure reached 702,730. It represents an increase of 1.65% from 2011 to 2016 and an average annual growth of 0.33% during the five-year period. GROWTH OF MEMBERSHIP (CUMULATIVE) Up to 2011, the cumulative number of members was 8.37 million. In 2016, this figure stood at 8.90 million. It represents an increase of 6.34% from 2011 to 2016 and an average annual growth of 1.27 % during the five-year period ,373,893 8,543,977 8,640, ,806, ,901,610 NUMBER OF BRANCHES (CUMULATIVE) Up to 2011, the cumulative number of branches was 2,565. Up to 2016, this figure reached 2,568. It represents an increase of 0.12% from 2011 to 2016 and an average annual growth of 0.02% during the five-year period.

38 36 Grameen Bank Past Five Years OF Grameen Bank NUMBER OF VILLAGES COVERED (CUMULATIVE) ,386 81,389 81,390 81,392 81,395 Grameen Bank network now crisscrosses 81,395 villages representing nearly 93% of the country s entire landscape. With this network GB has come quite close to fulfilling its dream of taking its services to the doorsteps of every household of rural Bangladesh NUMBER OF EMPLOYEES The number of employees of the Bank stood at 21,043 by the end of 2016 reflecting a decline of 608 employees over a period of 1 year since end December, The reduction has been achieved mainly through the process of rationalization of manpower ,261 21,851 21, , , OUTSTANDING OF LOANS , , , , , Outstanding of Loans of Grameen Bank have been increasing at a moderate rate and stood at BDT 118,244 million by the end of December, It reflects nearly 57 % increase in the amount of outstanding loans totaling BDT 75,325 million held by the Bank 5 years ago at the end of December, 2011.

39 Grameen Bank 37 PERCENTAGE OF WOMEN MEMBERS Historically, the majority of members of Grameen Bank have been women. The years under consideration are no exception. The percentage of women members throughout 2011 to 2016 was within close proximity of the 97% mark. BALANCE OF DEPOSITS Deposits of members and others with the Grameen Bank have been increasing at a very rapid pace and stood at BDT 199,497 million by the end of December, It is near about 71%, to be the precise amount of deposits of only BDT 116,875 million held by the Bank 5 years ago at the end of December, , , , , , TOTAL ASSETS , , , , , Up to 2015, the total assets of Grameen Bank was BDT billion, a 9.91% increase compared to the previous year. At the end of 2016, total assets stood at BDT billion, which translate an increase of 3.84% compared to the previous year. This growth trend in the assets of Grameen Bank is the result of healthy loan portfolio growth.

40 38 Grameen Bank Grameen Bank Year End Update : December, 2016 (In million BDT) Sl. No. Particulars In million BDT 1.0 Cumulative Amount Disbursed Since Inception 1,417, Cumulative Amount Repaid Since Inception 1,299, Amount Disbursed this Month 17, Amount Repaid this Month 14, Outstanding Loans 5.1 Basic Loan 109, Flexible Loan (a) 5, Housing Loan Education Loan 2, Other Loans Total (b) : 118, Rate of Recovery(c) Total Outstanding of Borrowers Missing 5 to 9 Consecutive Installments(d) 7.1 Basic Loan Flexible Loan 1, Total : Overdue Loan(e) 8.1 Basic Loan(f) Flexible Loan Housing Loan Other Loans Total : Microenterprise Loan (Cumulative) 9.1 No. of Microenterprise Loans 8,716, Amount Disbursed 304, Amount Repaid 271, Balance of Deposits 10.1 Members Deposit 128, Non-Members Deposit 70, Total : 199, Deposits to Outstanding 11.1 Deposits as Percentage of Outstanding Loans Deposits and Own Resources as Percentage of Outstanding Loans No. of Branches with more in Deposits than in Outstanding Loans 2,146 Sl. No. Particulars In million BDT 12.0 Beggar Members 12.1 No. of Beggar Members 77, Amount Disbursed (Cumulative) Amount Repaid (Cumulative) Amount of Savings (Balance) Cumulative Number of Village Phones 1,688, Cumulative Number of Houses Built with Housing Loans 702, Life Insurance Fund (Cumulative) 15.1 No. of deaths among all Borrowers 184, Amount paid out from Life Insurance Fund Loan Insurance 16.1 Balance in Loan Insurance Savings 11, No. of deaths among the Persons Insured (Cumulative) 416, Amount of Outstanding Principal and Interest of the Deceased Borrowers paid out from Insurance Fund 5, (Cumulative) 17.0 Higher Education Loan (Cumulative) 17.1 No. of Female Students 12, No. of Male Students 40, Total : 53, Amount Disbursed (Female) Amount Disbursed (Male) 2, Total : Scholarship (Cumulative) 18.1 Scholarship Recipient (Female) 144, Scholarship Recipient (Male) 99, Total : 244, Scholarship Amount (Female) Scholarship Amount (Male) Total : Number of Members (g) 19.1 Female 8,593, Male 307, Total : 8,901, Number of Groups 1,370, Number of Centres 142, Number of Villages 81, Number of Branches 2, Number of Branches with Computerised Accounting and MIS 2,568 (a) On the last day of each month, 50 per cent provision is made against the outstanding amounts of flexible loans with age of less than two years, and 100 per cent provision is made against the outstanding amounts of flexible loans with age of two years and more. The portions of flexible loans which complete the third year are written off exactly on the date following their completion. (b) This figure is not exactly equal to the difference between items 1 and 2 because of difference in conversion rates. (c) Amount repaid as a percentage of amount due. (d) If a borrower misses ten consecutive instalments, the entire outstanding loan is treated as an overdue loan. (e) (f) (g) On the last day of each month, 100 per cent provision is made against all overdue loans. Entire outstanding amount of overdue loans are written off one year after they became overdue. In case of one-year loan, if the borrower fails to repay half the loan amount, with interest, within 26 weeks, entire unrepaid amount becomes overdue. In case of loans with longer duration, if the borrower fails to repay the total principal amount and interest scheduled to be repaid within each segment of 26 weeks, entire unrepaid amount falls overdue. Number of members includes both Beggar Members and Higher Education Loan recipients mentioned in item no & 17.3 respectively.

41 Grameen Bank 39 Grameen Bank Year End Update : December, 2016 (In million USD) Sl. No. Particulars In million USD 1.0 Cumulative Amount Disbursed Since Inception 20, Cumulative Amount Repaid Since Inception 18, Amount Disbursed this Month Amount Repaid this Month Outstanding Loans 5.1 Basic Loan 1, Flexible Loan (a) Housing Loan Education Loan Other Loans Total (b) : 1, Rate of Recovery(c) Total Outstanding of Borrowers Missing 5 to 9 Consecutive Installments(d) 7.1 Basic Loan Flexible Loan Total : Overdue Loan(e) 8.1 Basic Loan(f) Flexible Loan Housing Loan Other Loans Total : Microenterprise Loan (Cumulative) 9.1 No. of Microenterprise Loans 8,716, Amount Disbursed 4, Amount Repaid 3, Balance of Deposits 10.1 Members Deposit 1, Non-Members Deposit Total : 2, Deposits to Outstanding 11.1 Deposits as Percentage of Outstanding Loans Deposits and Own Resources as Percentage of Outstanding Loans No. of Branches with more in Deposits than in Outstanding Loans 2,146 (a) On the last day of each month, 50 per cent provision is made against the outstanding amounts of flexible loans with age of less than two years, and 100 per cent provision is made against the outstanding amounts of flexible loans with age of two years and more. The portions of flexible loans which complete the third year are written off exactly on the date following their completion. (b) This figure is not exactly equal to the difference between items 1 and 2 because of difference in conversion rates. (c) Amount repaid as a percentage of amount due. (d) If a borrower misses ten consecutive instalments, the entire outstanding loan is treated as an overdue loan. Sl. No. Particulars In million USD 12.0 Beggar Members 12.1 No. of Beggar Members 77, Amount Disbursed (Cumulative) Amount Repaid (Cumulative) Amount of Savings (Balance) Cumulative Number of Village Phones 1,688, Cumulative Number of Houses Built with Housing Loans 702, Life Insurance Fund (Cumulative) 15.1 No. of deaths among all Borrowers 184, Amount paid out from Life Insurance Fund Loan Insurance 16.1 Balance in Loan Insurance Savings No. of deaths among the Persons Insured (Cumulative) 416, Amount of Outstanding Principal and Interest of the Deceased Borrowers paid out from Insurance Fund (Cumulative) 17.0 Higher Education Loan (Cumulative) 17.1 No. of Female Students 12, No. of Male Students 40, Total : 53, Amount Disbursed (Female) Amount Disbursed (Male) Total : Scholarship (Cumulative) 18.1 Scholarship Recipient (Female) 144, Scholarship Recipient (Male) 99, Total : 244, Scholarship Amount (Female) Scholarship Amount (Male) Total : Number of Members (g) 19.1 Female 8,593, Male 307, Total : 8,901, Number of Groups 1,370, Number of Centres 142, Number of Villages 81, Number of Branches 2, Number of Branches with Computerised Accounting and MIS 2,568 (e) On the last day of each month, 100 per cent provision is made against all overdue loans. Entire outstanding amount of overdue loans are written off one year after they became overdue. (f) In case of one-year loan, if the borrower fails to repay half the loan amount, with interest, within 26 weeks, entire unrepaid amount becomes overdue. In case of loans with longer duration, if the borrower fails to repay the total principal amount and interest scheduled to be repaid within each segment of 26 weeks, entire unrepaid amount falls overdue. (g) Number of members includes both Beggar Members and Higher Education Loan recipients mentioned in item no & 17.3 respectively. Note : Current Exchange Rate : 1USD = BDT 78.54

42 40 Grameen Bank Historical Data Series : (Amount in Million BDT) Performance Indicator Cumulative Disbursement (All Loans) Disbursement During the Year (All Loans) Year-end Outstanding Amount Housing Loan Disbursement During the Year Number of Houses Built cum Total Deposits (Balance) Deposits of GB Members (Balance) GB Members Deposit as % of Total Deposit Number of Groups Number of Members Percentage of Female Members Number of Villages covered Number of Branches Profit/Loss (For the Year) Note : 1) 1976 figures show the loans given through Janata Bank. It does not include the loan personally given by Professor Muhammad Yunus. 2) Grameen Bank became operational as an independent bank on October 2, Housing Loan Programme started from 1984.

43 Grameen Bank

44 42 Grameen Bank Historical Data Series : (Amount in Million USD) Performance Indicator Cumulative Disbursement (All Loans) Disbursement During the Year (All Loans) Year-end Outstanding Amount Housing Loan Disbursement During the Year Number of Houses Built cum Total Deposits (Balance) Deposits of GB Members (Balance) GB Members' Deposit as % of Total Deposit Number of Groups Number of Members Percentage of Female Members Number of Villages covered Number of Branches Profit/Loss (For the Year) Note : 1) 1976 figures show the loans given through Janata Bank. It does not include the loan personally given by Professor Muhammad Yunus. 2) Grameen Bank became operational as an independent bank on October 2, Housing Loan Programme started from 1984.

45 Grameen Bank

46 44 Grameen Bank COMPUTERIZATION PROGRAMME Since its modest beginning in 1993, GB computerization programme has come a long way. At the end of 2016, 2568 (out of 2568) branches have been computerized. To increase the operational efficiency of any financial institution, it is important to minimise paper work at all levels particularly at branch level. Even the limitations of power supply, it is still not possible to derive maximum benefit from the computerization of Grameen management information system, especially in the rural areas. All of our branches now under Information Management Centres at the area level. At the Information Management Centres, three branches are served by one computer. All branches within an area receive services from the centre. Each centre provides all types of loan monitoring and accounting services on a regular basis. Therefore, it has been possible to both reduce costs and increase the efficiency of the computerization programme when the Information Management Centres attain their full capacity to serve 3 branches with one computer.

47 Grameen Bank 45 SL Zone # of Centres # of Computers # of Branches 1. Chittagong Tangail Rangpur Manikganj Patuakhali Bogra Sylhet Rajshahi Dinajpur Faridpur Comilla Mymensingh Narayoniganj Khulna Noakhali Jamalpur Nilphamari Hobiganj Pabna Barisal Jhenaidah Cox s bazar Gaibandha Noagaon Jessore Chandpur Kishoreganj Bhola Rangamati Gazipur Madaripur Thakurgaon Perojpur Sunamganj Feni Narsingdi Kurigram Netrokona Serajganj Sherpur Total All the Information Management Centre- (IMC) at zonal and area offices were brought under Internet network. As a result data transfer has become both easy and less expensive. Grameen Communications, an independent company provides necessary technical assistance for supporting the computerization programme of Grameen Bank.

48 46 Grameen Bank EVENTS Mr. Ratan Kumar Nag Managing Director (Acting) of Grameen Bank (1st from left) and foreign minister of Thailand meet in Pattaya at G77 meeting. 2 Mr. Shin Ngai Wei, CEO (4th from right) IVYMAN school in China and his students visit Grameen Bank for exposure Programme and meet with Mr. R.K. Nag (5th from left) Managing Director (Acting) of Grameen Bank. 3 The inaugural Laureates and Leaders for Children Summit 2016, will bring together Nobel Laureates and World Leaders at the Rashtrapati Bhavan (Presidential Palace of India) to harness their moral, intellectual and Political authority for the benefit of World s Children. Mr. R.K. Nag (3rd from Right in the 1st row) Managing Director (Acting) of Grameen Bank one of the participant of the Laureates and Leaders for Children Summit 2016 in New Delhi, India. 4 Inauguration ceremony of online networking within Grameen Bank. Chairman of Grameen Bank Board of Directors Professor Muzammel Huq (6th from left in the 1st row), Mr. R.K. Nag Managing Director (Acting) and Top executives of Grameen Bank were present there. 5 Professor Muzammel Huq (2nd from right in the 1st line), Chairman of Grameen Bank Board of Directors unveiled Grameen Bank Book Vision During the time of Feni zone visit a happy moment with Mr. R.K. Nag (Middle most) Managing Director (Acting) of Grameen Bank and colleagues of Feni zone.

49 Grameen Bank Delegation from China Agricultural Bank visit Grameen Bank Head office, meet and pose with Mr. R.K. Nag (6th from left) Managing Director (Acting). 2 48th Zonal manager and Zonal audit officer conference chaired by Mr. R.K. Nag Managing Director (Acting) of Grameen Bank. 3 Leaders of Grameen Bank Employee association and Mr. R.K. Nag Managing Director (Acting) of Grameen Bank are celebrating the anniversary of Employee s association. 4 Professor Muzammel Huq (1st from right) Chairman of Grameen Bank Board of Directors handover crests regarding Tenth anniversary of Nobel Prize award and Forty years of Grameen Bank establishment. 5 Interns from different private universities of Bangladesh with Mr. R.K. Nag (Chaired in the Middle) Managing Director (Acting) of Grameen Bank. 6 Mr. R.K. Nag (Middle most) Managing Director (Acting) of Grameen Bank attends Student Scholarship Certificate distribution ceremony of Grameen Bank employee s children.