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Grameen Bank has seen robust growth amid a rapid transformation of the institution in the area of human resources and technical development over the last two years.
“We are now following the turnaround strategy for reviving the growth of Grameen (Bank). Grameen Bank posted the highest profit in its history in 2020. We want to change the livelihoods of the poor by supporting socio-economic transformation,” Prof AKM Saiful Majid, Chairman of Grameen Bank, said in an exclusive interview with the Daily Sun at Grameen Bank head office in Mirpur recently.
The micro-credit lender posted Tk 4.87 billion in profit (after tax) in 2020, which is the highest in its history. After being registered as a company, the net profit of the company stood at Tk 480 million at the end of 2021 after contributing to the national exchequer, company data show.
Dr Saiful Majid, a former director of the Institute of Business Administration (IBA) at Dhaka University, joined the board of micro-credit lender as chairman on March 24, 2020.
The micro-credit organization started its operations formally in 1983 under an ordinance that was repealed through the passing of ‘Grameen Bank Act’ in 2013 by the parliament.
The organisation disbursed collateral-free loans of $34.01 billion among 9.55 million people since its inception. The recovery rate is 97.22 per cent, according to the official data.
“The bank had a very serious problem in HR management. There was no guideline for promotion and evaluation of the staff based on performance. Many staffs were working here in the same position for years due to the discriminatory role of the management. We formulated an HR guideline in August 2020. Since then, employees are being evaluated based on their performance,” Prof Saiful said.
The organisation won the prestigious Noble Prize in 2006 for its efforts to create economic and social development from below.
Grameen Bank works on the assumption that even the poorest of the poor can manage their own financial affairs and development given suitable conditions, according to the Norwegian Nobel Institute.
The lender has formulated a sustainable fund following the guideline of the Bangladesh Bank.
“We reserved 1 percent of our net profit as a sustainable fund for future of the bank. As per guideline of Bangladesh Bank, the amount was Tk 1.33 billion by end of December 2020,” said Grameen Bank chairman said.
There are 11 schemes of Grameen Bank with insurance facilities for poor women, learner children, entrepreneurs, beggars and other underprivileged communities. The organisation now accepts monthly instalments replacing the weekly model.
“We focus on social inclusion. Grameen Bank issues loan for improving the livelihoods of the poor. For example, we introduced a credit programme for beggars, which we termed as Sangrami Sadosso (Struggling members). We provide collateral-free loans to help them come out of that profession,” Prof Majid added.
“For young entrepreneurs, Grameen Bank has collateral-free credit facility.”
“We want to reduce the number of unemployed graduates. Girls are a priority for the inclusive approach of the organisation. The credit size started from 50,000. It is scalable based on performance of the business initiative,” added the Grameen Bank chairman.
Grameen Bank has provided credit to 130,000 beggars so far of which 21,000 left the begging profession.
“We have planned a pilot project across the country to make Bangladesh a beggar-free nation. We are continuing discussions with the government. It may start in a beggar-prone district from each division. We want to bring them to productive activities through micro-credit. The Prime Minister is also appreciating such inclusive development initiatives,” Prof Majid said.
Marking the birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman, Grameen Bank planted 70 million of saplings across the country including 9.6 million in a single day last year.
“Marking the ‘Mujib100’ year, we projected to plant 100 million trees across the country. We planted 70 million so far. It might be a world record as the members and employees of the bank planted 9.6 million saplings a day.” Prof Majid said.
Grameen Bank has 9.55 million members now active across the country.
Grameen Bank didn’t charge any interest on study loans for the children of members until they completed graduation. The organisation has planned a digitalization project for the development enterprise resource planning system.
“We have formed a committee comprising renowned Prof Mohammad Kaykobad of BUET. The issues of digitalization may be finalised in the next board meeting,” said the Grameen Bank chairman.
Prof Majid said the Grameen Bank is the largest micro-credit organisation in the world. “And we want to continue the legacy.”
“Besides, the type of poverty has changed by times. We want to create positive impact in people’s livelihoods through impactful financing,” he added.
Around 1856 employees are working across 2568 branches and head office Grameen Bank.
The 13-member management board consists of 9 directors from beneficiaries, 3 government-appointed directors and the managing director of the organisation.
The government-appointed directors are Prof Saiful Majid of Dhaka University, Prime Minister’s Office senior secretary Tofazzal Hossain Miah and Janata Bank former deputy managing director Jasim Uddin.
In profit-sharing model, the government takes 25 percent of profit after tax and 75 percent revenue goes to members of the bank. Grameen Bank enjoyed the tax-free operations till 2020. The organisation was registered as a company in January 2021.
(DS)
