Bangladesh Grameen Bank – Pioneer in Microfinance

A SUCCESSFUL MODEL Contd...

TABLE II
GROWTH OF BANGLADESH GRAMEEN BANK OVER THE YEARS

(in $ millions except for 1976)

PARTICULARS	1976*	1983	1988	1993	1998	2002**
Yearly Loan Disbursed
· General	498	2.29	43.71	260.24	393.9	170.36
· Housing	0	0	5.41	42.09	20.64	1.09
Total Disbursement	498	2.29	49.12	302.33	414.54	171.45
Cumulative Disbursement	498	8.19	136.11	848.56	2652.2	3708.22
Cumulative Amount Repaid	166	6.08	100.76	618.84	2255.64	3376.98
Balance of Group Fund Savings	0	0.51	6.46	40.83	92.74	0
Balance of Members Savings	0	0	0	0	0	152.4
No. of Houses built	0	0	44556	258194	491012	549911
Coverage
Members	10	58320	490363	1814916	2368347	2366488
Groups	1	11667	98073	372298	486870	500639
Centers	-	2443	19663	57649	66712	70057
No. of Villages Covered	1	1249	10552	33667	39045	41015
Employees	1	824	7093	11459	12850	11752
No. of Branches	1	86	501	1040	1137	1175
No. of Area Offices	-	0	61	110	121	123
No. of Zonal Offices	1	5	9	12	15	15

* in dollars
** August 2002

Source: www.grameen-info.org

TESTING TIMES

The Grameen Bank faced a difficult situation in 1997 when Bangladesh experienced the worst-ever floods in the country's history. Around 75% of the country was submerged for around two-and-a-half months. In addition to the huge loss of human lives and livestock, there was a large amount of crop damage, and damage to housing and infrastructure. The floods affected around 1.2 million Grameen Bank members. Grameen Bank declared around 24,000 centers as disaster-stricken centers and suspended all banking activities in those centers. Even weekly loan repayment was suspended and employees were allowed to utilize group collective savings.