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Annual Report 2010

Banking for the

Banking for the Poor

By providing comprehensive financial services, empowering the poor to realize their potential and break out of the vicious cycle of poverty.

VISION

MISSION

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ForewordBoard of Directors Organizational ChartGrameen Bank : 2010HighlightsZones’ LocationLoan ActivitiesVillage PhoneHigher Education LoansStruggling [Beggars] Members ProgrammeScholarship Programme [for Members’ Children]2010: Disbursement of loans listed under broad categories of business activities2010 : Top 25 items in order of loan amounts for which member took loans2010: Disbursement of Microenterprise loans listed under broad categories of business activities2010 : Top 25 items in order of Microenterprise loan amounts for which member took loansZone wise Comparative Statement Up to December 31, 2010Grameen Bank Year End Update : December, 2010Past Five years of Grameen BankComparative Consolidated Statement For The Years 2009 & 2010Grameen Bank Historical Data Series : 1976-2010 (in million BDT)Grameen Bank Historical Data Series : 1976-2010 (in million USD)Computerization ProgrammeEvents: 2010Borrowers’ ActivitiesAuditors’ Report and Audited Financial Statements

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121416182022242627282930313237384042464851

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I consider it my proud privilege to announce that Grameen Bank completed the 27th year of operation in 2010 with a usual high note. Following on the legacy of its almost uninterrupted

successes, the year saw GB continuing its thrust forward to realize its cherished mission to empower the nation’s poor with credits, education, shelter, social awareness, leadership training and above all, a sense of dignity emanating from collective interaction.

Grameen Bank continued to enlarge its outreach by opening 3 new branches in 2010 bringing the total number of branches to 2,565. GB network now crisscrosses 81,376 villages representing nearly 99% of the country’s entire landscape. A fresh batch of 370,007 new members also joined the Grameen family in 2010. The aggregate number of members escalated to a staggering 8.34 million. The enormity of this number can be put in its true perspective when one realizes that more than 100 countries of the world have each a population smaller than what GB count as its extended family.

GB reached a new milestone in 2010 by crossing the threshold of USD 10 million in terms of cumulative disbursements. By the end of the year 2010, cumulative disbursements of the Bank reached BDT 594.46 billion equivalent to USD 10.12 billion. By that date the amount of savings deposited with the Bank by its borrowers also reached a new high of about BDT 56.35 billion. It denotes a steep rise of BDT 11.53 billion or 25.73% over the corresponding amount of BDT 44.82 billion in 2009.

Starting almost from the scratch, the Bank has over the years encapsulated a multidimensional package of services with an eye on freeing the poor from the specter of penury, hunger and deprivations that haunt their mundane existence on a daily basis. The package includes loans for the poor for building low cost houses, education of their children and interest free loans to beggars to pursue small scale income generating activities. GB loans totaling BDT

8.97 billion enabled 687,331 borrowers to build low cost houses and Its education loans totaling BDT 2066.84 million (USD 30.33 million) allowed 47,851 meritorious students from poor households at zero interest during education period and 5% after completion of education period. By the end of the year an aggregate number of 140,798 students were offered scholarships totaling BDT 218.06 million (USD 3.10 million). These students from the impoverished families, many of whom would probably drift into in the wilderness, now walk with heads high as doctors, engineers, scientists, administrators and teachers. In addition, Loans amounting to BDT 154.99 million were provided to the beggars, the most vulnerable groups in the social structure. Their repayment records are nearly as good as their regular mainstream peers. By the end of 2010 they had repaid BDT 122.18 million.

Recitation of these numbers looks like a dream come true when one views it in the backdrop of the Bank’s modest beginning in 1976 amidst gathering uncertainties and skepticisms that floated in the academic and financial communities. The success, however, did not come on a platter. At various phases of its operation the Bank had to grapple with many odds and challenges that, in retrospect, seemed insurmountable. The Bank succeeded in overcoming these adversities with courage and fortitude through innovative ideas, improvisations and constant adjustments of its policies and practices in the light of emerging realities. Judicious guidance and direction from the distinguished Board of Directors, hard work and unstinting dedication of the staff, strong sense of belonging of the Bank’s members, spontaneous support of the Government of Bangladesh and other stake holders played no small parts to turn the Bank into what it is now.

We draw immense satisfaction that the ideals for which we worked so assiduously have not gone in vain. Under the tutelage of GB, innumerable poor people, especially millions belonging to the most vulnerable group--the faceless women, have worked their way to lead their

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lives with dignity and pride. Many world leaders from developed as well as developing nations have also not only grown fond of the GB model but also replicated its recipe for poverty alleviation in their own backyards.

I take this opportunity to congratulate the staff of the Bank for their commitment to serve the poor and to the Bank’s 8.34 million borrowers-shareholders for their unwavering support to realize our dream of a poverty free society.

We express our gratitude to the Government of Bangladesh, our well-wishers and friends all over the world for their constant inspiration and encouragement. I also take this opportunity to pay tribute to Dr. Muhammad Yunus, former Managing Director who ignited the first spark that, over the years, has lit up countless poor homes across Bangladesh and elsewhere.

Acting Managing DirectorGrameen Bank E-mail : [email protected]

4Borrower MemberSahajadpur Branch

Sirajgonj

Borrower MemberBakal, Agailjhara Branch

Barisal

Tabarak Husain

Ms. Rahima Begum

Professor Muhammad Yunus

Ms. Nasima Begum

Md. Kamrul Hasan

Ms.Jotsna Begum

Late Razia Begum

Ms. Anwara

ChairmanFormer Foreign SecretaryGovernment of BangladeshHouse No. 43, Road No. 9,

Dhaka Cantonment, Dhaka-1206

Borrower MemberBaratakia Mirsharia Branch

Chittagong

Managing Director,Grameen Bank, Mirpur-2,

Dhaka-1216

Borrower MemberEliotgonj (south),

Daudkandi BranchComilla

Secretary, Ministry of DefenceBangladesh Secretariat, Dhaka

Borrower MemberAshuganj Branch

Hobiganj

Joint SecretaryMinistry of Finance

Bangladesh Secretariat, Dhaka

Borrower MemberBhawal Mirzapur, Gazipur Branch

Gazipur

5Ms Rozina Begum

Mos. Safia Begum

Mos Julekha Begum Mos. Mozida Begum Ms. Shondory BegumBorrower MemberSahajadpur Branch

Sirajgonj

Borrower MemberBakal, Agailjhara Branch

Barisal

Borrower MemberKallayni Pirgacha Branch

Rangpur

Borrower MemberGanespur Manda Branch

Noagaon

Borrower MemberHazrapur Magura Branch

Jessore

Joint SecretaryMinistry of Finance

Bangladesh Secretariat, Dhaka

Borrower MemberBhawal Mirzapur, Gazipur Branch

Gazipur

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Board ofDirectors

ManagingDirector

Deputy Manging Director

General ManagerGeneral Manager

DeputyGeneral Manager








AuditDept.

ServicesDept.

EstablishmentDept.

General Manager


InternationalProgramme

Dept.

Md’sSecretariat

GBSecretariat

AdministrationDept.

Co-ordination& OperationDept (West)

Training

Technology & Development Section

SpecialProgramme

ConstructionSection

General Manager




Co-ordination& OperationDept(East)

Monitoring & Evaluation

Dept.

Accounts& Finance

Dept.

Planning Section

General Manager

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Board ofDirectors

ManagingDirector

Deputy Managing Director

General ManagerGeneral Manager









AuditDept.

ServicesDept.

EstablishmentDept.

General Manager


InternationalProgramme

Dept.

Md’sSecretariat

GBSecretariat

AdministrationDept.

Co-ordination& OperationDept (West)

Training

Technology & Development Section

SpecialProgramme

ConstructionSection

General Manager




Co-ordination& OperationDept(East)

Monitoring & Evaluation

Dept.

Accounts& Finance

Dept.

Planning Section

General Manager

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Grameen Bank Expands its HorizonGrameen Bank continued to expand its outreach in Bangladesh in 2010 to bring new areas and new members within its operational fold. During the year, the bank opened 3 new branches bringing the total number of branches to 2,565 that dot the length and breadth of rural Bangladesh. Bank’s network--40 Zonal, 268 Area and 2,565 branch level offices--now encompasses 81,376 or over 97% of the country’s nearly 84,000 villages located in 479 upazilas or sub-districts in all 64 districts of Bangladesh. A fresh batch of 370,007 people joined the Grameen family in 2010, swelling the aggregate number to a staggering 8.34 million members.

Bank Serves the Poor at their Door StepsUnlike conventional banks, Grameen Bank carries its services to the door steps of the poor to overcome their age old inhibitions and inconveniences associated with visits to a formal financial institution, usually located away from their homes. 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.

New branches are required to fund themselves entirely with the deposits they mobilize. No fund from head office or any other office is lent to them. A new branch is expected to break even in the first year of its operation.

Interest Rate StructureThe interest rates of the Bank are structured with an eye on the financial status and repayment capacity of the borrowers with zero or concessional rates for the special and underprivileged groups. The interest rates on loans for the 4

categories of Grameen Bank borrowers are:• Loans for Income Generating Activities (IGA) 20% per

annum (declining basis)• Housing Loans 8% per annum• Student Loans

i. During the study period of about 3 - 5 years 0%ii. After the study period 5% per annum

• Struggling Members (beggars) 0%

All interest rates are simple and are calculated 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 borrow 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 BDT 100) equivalent to 10% at the flat rate. Grameen Bank offers very attractive interest rates for deposits. Minimum interest offered is 8.5 per cent. Maximum rate is 12 per cent.

Loans and DepositsThe cumulative disbursement of the Bank by the end of

December, 2010 under various categories reached BDT 594.46 billion equivalent to USD 10.12 billion at the exchange rate that prevailed at the end of the year. The cumulative amount of savings deposited with the Bank by its members reached about BDT 56.35 billion by the end of year under review.

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Financial Results for 2010In spite of pursuing many poverty focused or socially desirable programmes at zero or subsidized interest rates, Grameen Bank continues to achieve significant growth in terms of operating and net profits. During the year the Bank earned a profit of BDT 757 million and declared 30% cash dividend for the year. The bank has also created a Dividend Equalization Fund to ensure a fair degree of stability for distribution of dividends over the years. 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 Bank’s borrowers are its shareholders.

The Grameen Generalized SystemThis system introduced in 2000 after long deliberations has stood the test of time and assists the borrowers to overcome their financial constraints arising from reversal of personal fortunes or due to natural calamities like flood, tsunami and draught. The system is simple and customer friendly that provides opportunity to a member to remain in the Bank’s mainstream rather than opting out of Bank.

As mentioned earlier, the Grameen Generalised System offers four types of loan products: 1) the basic loan, 2) the housing loan, 3) the higher education loan, which runs parallel to the basic loan, and 4) the struggling members (beggars) loan programme. 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 2010, nearly 7 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 go 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 in two years it is considered as overdue; after three years, it is entirely written off. The rate of recovery of Basic Loan is close to one hundred per cent.

Housing for the poorIntroduced in 1984, housing loan has become a very popular programme for the borrowers aspiring to build a decent but

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inexpensive 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 15,000 for construction of a simple tin-roof house. The average size of the loan is BDT 13,062 (USD 186) per borrower. The interest rate is 8 percent per annum, repayable over a period of five years. During 2010, housing loans amounting to BDT 88.78 million (USD 1.26 million) were provided to build 7,754 houses. It brings the total number of houses built with the housing loans to 687,331 since inception.

Higher Education LoansGrameen Bank 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 47,851 students pursuing courses in disciplines were provided loans under this programme.

Micro-enterprise Loans

Many borrowers have shown dynamisms to new opportunities to move ahead on the road to success in business ventures and have shown promises of success in bigger ventures. Grameen Bank provides larger loans, called micro-enterprise loans, to these fast moving members. There is no restriction on the loan size. So far 2,915,494 members availed of the micro-enterprise loans. A total of BDT 81.63 billion (USD 1206.75 million) has been disbursed under this category of loans. Average loan size is BDT 27,998 (USD 398 app). The maximum size of a single loan taken so far is BDT 1.6 million (USD 23,209) for purchase of truck. The other major categories of activities financed are grocery shops, pharmacy, dairy farms, auto-rickshaw for transportation and stone business for construction.

Scholarships for the children of Grameen membersIn addition to student loans mentioned earlier, the 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 girls and the remaining 50% will given to both boys and girls based on overall performance. About 23,000 children, at various levels of school education, were awarded the scholarships during the year under review. It brings the aggregate number students since the inception of the programme to 140,798 up to December, 2010, involving an amount of BDT 218.07 million (USD 3.09 million).

Loan InsuranceUnder 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 on annual basis. 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 6,324.79 million (USD 89.85 million) as on December 31, 2010. Up to that date, outstanding loans and interest amounting to BDT 1600.88 million (USD 23.75 million) due from1 85, 933 deceased borrowers was paid off under this programme.

Life InsuranceEach year families of deceased borrowers of Grameen Bank are paid amounts ranging from BDT 17 to 20 million (USD 0.25 to 0.29 million) as life insurance benefits. Each family receives BDT 1,500 which the deceased was a Grameen Bank borrower. A total of 131,654 GB borrowers died by the end of 2010. Their families collectively received a total amount BDT 231.75 million (USD 4.61 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.

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Village PhonesGrameen Bank provided loans to 394,362 borrowers up to 2010 to buy mobile phones and offer telecommunication services in nearly half of the villages of Bangladesh .It is also generating revenue for Grameen Phone, 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 MembersBegging is the last resort for survival for a poor person, unless S/he turns into 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. Grameen Bank has taken up a special programme in 2002, called Struggling Members Programme exclusively for the beggars. Over 112,615 beggars have joined the programme. Total amount disbursed stands today at BDT 154.99 million. Of this amount of BDT 122.18 million (79% of the amount disbursed) has already been paid off. 19,497 beggars have left begging and are making a living as door-to-door sales persons. Among them 9,599 beggars have joined Grameen Bank groups as main-stream borrowers.

Success of Members in Election of Local BodiesGrameen system provides a flavour of election process to the borrowers of the Bank. They routinely go through electing group chairman, secretaries, centre-chiefs and deputy centre-chiefs every year. They elect board members for running Grameen Bank every three years. This experience provides them a launching pad to run for public offices with a fair degree of success. In 2003 local government (Union Porishad) election 7,442 Grameen members contested for the reserve seats for women. Of the 3,059 members came out successful.

Policy for Opening New BranchesNew branches are required to finance themselves entirely with the deposits they mobilize. No fund from head office or any other office is lent to them. A new branch is expected to break-even within the first year of its operation.

Computerized MIS and Accounting SystemAccounting and information management nearly all the branches (2,564, out of 2,565) 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 borrowers’ passbooks.

‘Stars’ for AchievementsGrameen Bank provides colour coded star to branches and staffs for 100 per cent achievement of a specific task starting from 2001. A branch or a staff having fivestars indicates the highest level of performance. At the end of 2010, 923 branches got green stars for maintaining 100 per cent repayment record, 1,907 received blue star for earning profit, 1,846 branches earned violet stars by meeting all their financing out of their earned income and deposits, 324 branches have applied for brown stars for ensuring education for 100% children of Grameen families and 64 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.

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Number of Members

Percentage of Women Members

Cumulative amount disbursed since inception*

*�gure in million BDT


Balance of deposits (Non- members)*

*�*�*�*�*�*�*�*�**�*��*�*�**�*��guguguguguguugugugugguguuguguggggggggg rerererererererereereree i i i ii iiiiiiiin n nn n n nnnnnn n mimimimimimimimimimimimmm lllllllllllllllllllllllllioioioioioiooioioioooioiion n n n n n n nnn BDBDBDBDBDBDBDBDBDDDBDDTTTTTTTTTTTTTTTT

Amount of loans outstanding *

*�*�*�*�*�*�*�*�*��*�**�*�*�*�*�*�*�*�*��*��*�*��gugugugugugugugguuuuguguguguguguguguguguguguguguguguguguugggggggg rererereeerererereererereereerrrr ii i i iiiii i iiiiiinn nnnnnnn nn n n nn mmimimimimimimimimimimimmmimimillllllllllllllllllllllllllllioioioioioioioioioioiooioiion nnnn n n nn nnnn nn BDBDBDBDBDBDBDBDBDBDBDBDBDBDDDDTTTTTTTTTTTTTTT

Balance of deposits (members)*

Portfolio growth rate

Number of centres

Number of branches

Number of vilages covered

Number of areas

Number of zones

8,340,6237,970,616

8,340,62396.39

96.7996.88

594,461498,311

418,90348,13338,130

29,253

66,43454,715

44,39656,346

44,82334,923

21.42%23.24%

22.18%

144,106144,106

140,976

2,5652,562

2,539

81,37683,458

83,566

268268

264

404040

the font size represents the years. Large Font size is year 2010, medium 2009, small 2008

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Number of Members


Cumulative amount disbursed since inception*



Balance of deposits (Non- members)*

*�*�*�*�*�*�*�*�**�*��*�*�**�*��guguguguguguugugugugguguuguguggggggggg rerererererererereereree i i i ii iiiiiiiin n nn n n nnnnnn n mimimimimimimimimimimimmm lllllllllllllllllllllllllioioioioioiooioioioooioiion n n n n n n nnn BDBDBDBDBDBDBDBDBDDDBDDTTTTTTTTTTTTTTTT

Amount of loans outstanding *

*�*�*�*�*�*�*�*�*��*�**�*�*�*�*�*�*�*�*��*��*�*��gugugugugugugugguuuuguguguguguguguguguguguguguguguguguguugggggggg rererereeerererereererereereerrrr ii i i iiiii i iiiiiinn nnnnnnn nn n n nn mmimimimimimimimimimimimmmimimillllllllllllllllllllllllllllioioioioioioioioioioiooioiion nnnn n n nn nnnn nn BDBDBDBDBDBDBDBDBDBDBDBDBDBDDDDTTTTTTTTTTTTTTT

Balance of deposits (members)*

Portfolio growth rate

Number of centres

Number of branches

Number of vilages covered

Number of areas

Number of zones

8,340,6237,970,616

8,340,62396.39

96.7996.88

594,461498,311

418,90348,13338,130

29,253

66,43454,715

44,39656,346

44,82334,923

21.42%23.24%

22.18%

144,106144,106

140,976

2,5652,562

2,539

81,37683,458

83,566

268268

264

404040

the font size represents the years. Large Font size is year 2010, medium 2009, small 2008

15NARAYNARAYNAR ANGANJ AYANGANJ AY

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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 fi nancing 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 profi ts for herself. By the end of 2010, there were about three hundred Ninty four thousand village phone ladies who have together taken loans amounting to BDT 2.68 billion. The demand of the Village Phone services is increasing day by day. During the year 2010 nearly 30,000 new phones were distributed and at the same time 16,000 chrun back connections were provided to cell phones in the villages. Grameen Bank, in collaboration with Grameen Telecom (The company which was incorporated as a not-for-profi t venture under the companies act of 1994) has made a plan to fi nance nearly 220,000 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 village phone ladies is almost double that of the national per capita income. Zone-wise statistics of village phones fi nanced through the Bank’s lending programme are given below :

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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 program in other zones. In this programme, Grameenphone is the principal or host and 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 0.95% and sales agent’s commission is 2.75% respectively. Up to December 31, 2010 GB creates 1,000 sales agents in 40 zones. The total transaction averagely reaches at the end of the year in BDT 1300.52 million. Grameen Bank and agents jointly received commissions amounting BDT 48.20 million . Now every week Grameen Bank agents are transacting BDT 9.00 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 benefi ts to Grameen Bank members.

Sl Zone No of No of V. PhoneNo branches owned by covered Bank members

1 Chittagong 72 61322 Tangail 78 81383 Rangpur 59 74054 Manikganj 62 112105 Patuakhali 87 74096 Bogra 73 90447 Sylhet 70 144328 Rajshahi 88 249089 Dinajpur 63 1339610 Faridpur 87 2031211 Comilla 76 963912 Mymensingh 55 1310813 Narayongonj 62 876114 Khulna 69 838615 Noakhali 78 1254716 Jamalpur 56 835117 Nilphamari 61 544218 Hobiganj 59 745419 Pabna 60 1339020 Barisal 80 885021 Jhenaidah 74 1021122 Cox’s bazar 59 837223 Gaibandha 55 1229424 Noagaon 77 1518725 Jessore 80 963326 Chandpur 54 867627 Kishoreganj 71 659328 Bhola 52 399429 Rangamati 44 892430 Gazipur 49 742331 Madaripur 68 1804732 Thakurgaon 72 1287433 Pirojpur 61 414134 Sunamganj 58 891335 Feni 47 676636 Narsingdi 39 773737 Kurigram 48 444938 Netrokona 55 568439 Sirajganj 46 977740 Sherpur 61 6353

Total 2565 394362

2020

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 47,851 loans worth BDT 2066.84 million (USD 30.33 million). In 2010 alone, 8,582 students were sanctioned loans. Khulna zone has the most number of students (3,918) receiving higher education loans, with Jessore zone second (3,911). The Dudsar Sailkupa branch under Jessore zone has given the highest number of student loans (168).

Disbursement of Higher Education Loans Up to December, 2010.

Degree/Discipline Number Amount (BDT)

Masters (General) 1,666 43,798,620Bachelor degree (Honours) 43,738 194,1761,689MBA 106 2,688,925BBA 403 13,662,730B. Sc. (Engineering) 822 25,226,393M. Sc. (Agriculture) 111 2,986,775B. Sc. (Agriculture) 502 16,305,975Degree in Medicine 503 20,403,985Total : 47,851 2,066,835,092

The story of Hira Mia, who is currently studying in Rangpur Medical College for the MBBS degree, is not yet a story of rags to riches but he can certainly look forward to join an elite profession in the not too distant future.

Although born to an impoverished family drawing its sustenance from the meagre income of his father engaged in a lowly profession of carpentry, Hira Mia showed signs of talent in the school. He earned the affection of his teachers who provided guidance in his studies. He secured GPA 5 Grade in the SSC examination but the family did not have the wherewithal to send him to a reputable college. However, help came in the shape of moral and financial support from Grameen Bank. His mother, Fuljan Begum, was a member in Centre 25/M of GB’s Durkuti Lalmonirhat Branch. The Manager and other people in the Branch not only provided encouragement but also arranged a scholarship on a monthly basis for his education. Hira Mia lived up to their expectation and secured GPA 5 in the Higher Secondary examination.

The successes achieved by Hira fuelled the aspirations of his parents to send him to a medical college. He also succeeded to gain admission in Rangpur Medical College but did not have the money to defray the expenses in the college. GB once again came to his rescue with a loan under its Programme for higher education.

Hira realize that he is on course to overcome poverty only because of the generous assistance of Grameen Bank. He, however, does not wish to bask in the glory that a medical degree brings but wants to realize his cherished dream of serving the ailing humanity belonging to the underprivileged sections of the society.

A carpenter’s son is on course to become a doctorMohammad Hira Mia –

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Matiur’s story mirrors the struggles of millions of young people from impoverished families

to get a foothold in quest of a respectable career. Fortunately for him, he found an ally in Grameen Bank to carve out a niche for himself--first with GB’s higher education loan for his education and later to pursue a career as an entrepreneur under the Bank’s self employment loan programme. .

Matiur is one of the four children of his parents—three sons and one daughter. His father ekes out living as a day labourer. Sometimes Matiur also accompanied his father to work in the field. His other two brothers are students and only sister is physically handicapped.

Matiur studied in his village school and college under the lengthening shadow of poverty and passed his Secondary and Higher Secondary examinations. Despite the penury that gnawed on their mortal existence, his parents harboured a keen desire to provide him a higher education. With courage and a prayer, they sent him off to Pabna Edward College where he enrolled in the History Department for a Bachelor degree wih Honours. He, however, found the going

real hard on account of perennial financial constraints. Uncertainty loomed ominously over his ability to continue his studies. It was at this stage that his mother, who was a member of Grameen Bank, learnt about the Bank’s Education Loan. They soon met the GB Manager who gave a patient hearing and agreed to process his application. In due course, the Bank sanctioned Education Loan of Tk 38,000 for two years. Matiur has obtained an honours degree course and is now studying for the Master Degree.

In the meantime, Matiur bought two cows with a loan from Grameen Bank. Other members of the family also joined him to look after the cows. They have sold one of the cows for Tk 32,000 on the eve of Eid-ul-Azha and the other is awaiting disposal. Matiur plans to build on this experience to set up a dairy on a bigger scale. He does not wish to seek job from others but looks forward to the day when he would himself create employment opportunity for many people.

Matiur’s enthusiasm and struggle to build a career is matched by his exuberance to acknowledge his debt to the Grameen for empowering him to leave behind the spectre of poverty that haunted him and his family for almost an eternity. ”I will settle my debts to GB for the loans alright”, he says, “but cannot repay the debt of gratitude to GB and its founder for all that they have done for me”.

GB sets Matiur on road to success

Credit Program 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 program 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 program, 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 program. 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.

22

To reach out to the beggars, Grameen Bank has taken up a special programme, called Struggling Members Programme which started from July 2002. 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 fi nancial services to the beggars to help them fi nd a dignifi ed 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 instalments 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 income-generating activity like selling popular consumer items door to door, or at the place of begging.

As of 31st December, 2010 cumulative members under this programme reaches at 112,615 out of them 108,485 are women. All the zones have already come under this programme. By this time 2,565 branches of 268 areas have implemented the programme. So far BDT 154.99 million has been disbursed and BDT 122.18 million has already been repaid. The Struggle members’ saving balance stood BDT 8.33 million.

23

Struggling Member Fuljan Beowa— a story of her struggle to return to a respectable lifeFuljan Beowa epitomizes the plight of countless poverty stricken widows in Bangladesh who live on the edge of perpetual penury and deprivation. Forsaken by her offspring, she took to begging as a last resort to eke out a bare living. Not that she, now aged more than 70 years, considered begging as a dignifi ed profession but there was nothing else she could do to keep her body and soul together.

The turning point in her life came when, in 2006, she enlisted herself as a ‘Struggling Member’ of the Grameen Bank Ghorashal Jhenaidah Branch, Centre No.21/M of Miakundu village and started the dream of giving up the profession of begging. She drew several instalments of loans from the Bank under the Bank’s special scheme for interest free loans for the beggars. She used the money to peddle bread and betel nuts and betel leaves alongside begging. Gradually, she could give up begging and shifted to rearing a small herd of 5 goats in addition to plying her trade in bread and betel leaves and nuts. When the fi eld staff of Bank visited her modest thatched house they found her tending the goats with care and attention like a surrogate mother. Her life in fact now centres round these little critters. They not only give her company but provide the strength and inspiration to play out the remaining part of her desolate and mundane existence.

GB has not made Fuljan Beowa rich but its assistance has given her an opportunity to erase the stigma of beggar that bedevilled her life for a long time. When the GB personnel visited her she minced no words to express her sincere gratitude to the GB for the assistance to rescue her from the abyss in which fate had thrown her at this old age. She profusely showered her blessings on the GB and prayed for its continued success to provide succour to the destitute people like her.

24

In order to facilitate better educational opportunities for the children of Grameen members, Grameen Bank launched a scholarship programme for talented students, in 1999. 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, 2010 scholarships to the extent of BDT 218.06 million (USD 3.09 million) were offered to 140,798 students.

Categories Number Total Girls Boys Primary 12,948 9,580 22,528Junior Secondary 17,807 11,370 29,177Secondary 24,645 22,548 47,193Higher Secondary 18,252 16,496 34,748Cultural 5,092 2,060 7,152Total: 78,744 62,054 140,798

Chitra was only six months old when her father, Naresh Sarker, passed away leaving them literally in the lurch. Her distraught mother found herself thrown in the wilderness of widowhood barely three years into her marriage with Naresh. She could foresee a bleak future for her and her little girl in an environment not conducive for a widow, least of all a young widow. In desperation she, with little Chitra in tow, took refuge in her parents’ house. As ill luck would have it, her parents too were of small means. Chitra’s young but widowed mother did not relish the prospect of becoming a permanent burden on her parents. She braced herself to fight the odds to eke out a modest living for her and little Chitra. She began her struggle by enrolling herself as a member in 45/ M Centre of Grameen Bank’s Komarganj Nababganj Branch under Narayanganj Zone. With loans from GB in phases she took up embroidery alongside rearing of mulching cow. The modest income from the sale of milk and embroidery work has sustained her for nearly a decade and half.

Despite the financial hardships that plagued their lives almost on a

daily basis, poor Chitra developed a strong eagerness to study from an early age. With assistance from her teachers in the school, she pursued her studies and came out with flying colours in every examination. Her talent and hard work were rewarded when she got a scholarship in the Junior Scholarship examination. However, she faced the grim prospect of dropping out of the school due to financial constraints. Recognizing her talents and future potential, Grameen Bank’s Komarganj Nababganj Branch, threw in a helping hand to continue her studies. At the behest of the Branch she was awarded a scholarship by the GB Head Office as

the best student at the Lower Secondary level. She was overwhelmed with joy when she heard this news; a few drops of tears of joy trickled down the cheeks of her elated mother too. It also strengthened Chitra’s resolve to carry on her studies with renewed zeal.

As of now, Chitra has been nurturing a big dream to become a doctor to rid free of the shackles of poverty and to serve the society at large. Grameen Bank is proud to stand by her with financial and moral support and wishes her success to realize her dream.

GB STAND By A PooR GiRL wiTH A DREAM

25

HigHer education for cHildren gB MeMBersnew 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.

ewHa woMen university, seoul, KoreaDuring the visit of Dr Muhammad Yunus to Korea in 2006 to receive the Seoul Peace Prize, he delivered a special lecture on the invitation of Ewha Women University. As a gesture of goodwill to GB and mark of respect for Dr.Yunus, the University announced award of two scholarships for a two year course in Master of Social Welfare course for the daughters of GB members. Children

of Grameen Bank members having a Graduate/post graduate degree with honours and fluency in English are eligible for these scholarships. Two faculty members of the university headed by a Dean selected the following girls after interviewing the prospective candidates for the course commencing in 2007:

1. Razia Sultana, Daughter of Ms Sufia Begum, a member of Rangpur Branch, Dumuria under the Khulna Zone.

2. Tapashi Banerjee, Daughter of Ms Jharna Banerjee, a member of Champaphul Branch, Kaligonj under the Khulna Zone.

These two students who proceeded to Korea in 2007 returned to Bangladesh after successfully completing their courses in the respective universities in Seol.

Khazanah asia scholarship programmedr. yunus visited Malaysia in 2007 on the invitation of Khazanah foundation. following discussion between dr yunus and Managing director of the foundation, tan sri azman Mokhtar the foundation decided to award scholarships for the children of gB members.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 students were selected from Bangladesh under the programme for undergraduate courses for 2009 session.Sl.No. Name of Student Name of the member Name of GB branch/Zone Subject of Study Name of University1 nazia Hossain Ms shamsunahar narail, Jessore Biotechnology engineering international islamic university, Malaysia2 Ms ayesha Khatun Ms delwara Begum chandaikona, raigonj,sirajgonj accounting & finance do3 Mohd Aslam Mia Ms. Jharna Begum Gabtoli, Bogra Economics Do4 Kazi selim sarwar Begum Hosneara Kalupara, Badargonj, rangpur Mechanical engineering Multimedia university, Malaysia5 Ms Sabiha Akhter Munni Ms Sufia Jasmin Ishwargonj, Kishorgonj Electrical and Electronic Tenaga National University, Engg Malaysiathe following students were selected from Bangladesh under the programme for undergraduate courses for 2010 session.Sl.No. Name of Student Name of the member Name of GB branch/Zone Subject of Study Name of University

1 Md Jahid faruki foujia sultana Kakina Kaligonj, rangpur Bachelor degree in tenaga national university, electrical & electronics eng. Malaysia2 Md. Badiul Alam Nafija Begum Kalipur Bashkhali, Cox’s Bazar Bachelor Degree in civil Eng. Do3 Md. Tauhidul Islam Fatema Akter Porshurampur, Feni Bachelor Degree in Law International Islamic University, Malaysia 4 Md. tarikul islam Badal anwara Begum ashujia Kendua, netrakona Bachelor degree in civil eng. tenaga national university, Malaysia5 Munni Akter Laboni Jharna Begum Anmaypur Shibaloy, Manikgonj Bachelor Degree in Multimedia University, Malaysia information technology asian University for Women, chittagong scholarshipsasian university for women is an ultramodern 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. the university has responded positively to the request of professor, Mohammad Yunus to award 25 full scholarships to the children of GB members for study at the undergraduate level in different disciplines.Nine children of GB members are studying in the university from 2009-10 session and eleven children from 2010-11 session with full scholarships. Applications of 46students have been sent to the University for Selection for admission in the 2011-12 session. An amount of about BDT 700,000 (about usd 1000) is spent per year per student on tuition, board, meals etc.

26

Landless (Male) Landless (Female) TotaTotaT l

Items No. of Loans Amount of Loans No. of Loans Amount of Loans No. of Loans Amount of Loans

Processing & Manufacturing 65,463 783,704,746 1,484,846 15,224,114,381 1,550,309 16,007,819,127

Agriculture & Forestry 56,195 745,343,620 2,291,251 22,751,706,922 2,347,446 23,497,050,542

Livestock & Fisheries 55,010 739,725,050 1,668,822 18,782,842,033 1,723,832 19,522,567,083

Services 22,894 215,863,682 304,014 3,044,653,541 326,908 3,260,517,223

Trading 54,944 897,845,609 1,856,004 21,364,122,098 1,910,948 22,261,967,707

Peddling 2,009 26,147,678 84,343 945,592,446 86,352 971,740,124

Shopkeeping 28,062 512,038,298 639,269 10,027,101,083 667,331 10,539,139,381

Total : Total : T 284,577 3,920,668,683 8,328,549 92,140,132,504 8,613,126 96,060,801,187

Disbursement of All types Loans During January to December, 2010y to December, 2010y to December(Listed under broad categories of business activities)

Processing & Manufacturing

Agriculture & Forestry

Livestock & Fisheries

ServicesTrading

Peddling

Shopkeeping

16.66 16.66 %

24.46 %

20.32 %

3.39 %23.17 % 1.01 %

10.97 %

(Amount in BDT)

27

for male amoUnt (orDer DescenDing)

Milch cow

Rice/Paddy trRice/Paddy trRice/P adinaddy tradinaddy tr g

Cow fattening

GrocerGrocerGr y shop

Paddy cultivation

Paddy husking

Bamboo works

Vegetables cultivation

Land lease

Miscellaneous business

Vegetables tradingtables tradingtables tr

Plantation

Farming

Fish tradinFish tradinFish tr g

Stationery shopry shopry

Cloths tradinCloths tradinCloths tr g

Pisciculture

Rickshaw purchase

Bullock raising

Cane works

Land cultivation

Agriculture equipments making

Poultry raising

Betelleaf cultivation

Potato cultivation

651,211

727,209

631,187

381,072

630,349

439,479

290,739

289,952

244,427

203,467

194,904

232,801

244,420

168,620

123,496

101,723

94,386

125,780

128,255

113,812

111,414

119,055

95,927

93,863

96,339

7,736,059,148

7,127,142,978

6,735,366,357

6,508,090,204

5,937,745,768

3,965,776,334

3,110,697,461

2,920,487,834

2,830,790,337

2,564,826,864

2,368,054,291

2,338,454,797

2,222,999,387

1,791,617,249

1,739,640,895

1,720,995,669

1,349,160,089

1,339,809,729

1,329,358,993

1,280,839,935

1,106,967,295

1,099,801,040

1,033,331,856

999,758,173

995,083,142

No of loans (Amount in BDT)

Serial Activity Name Male No Male Amount 1 Paddy husking 36,951 398,221,943 2 Milch cow 25,634 369,143,049 3 Rice/Paddy trading 25,609 361,002,049 4 Grocery shop 18,476 334,180,047 5 Cow fattening 19,052 231,164,122 6 Paddy cultivation 13,176 171,589,874 7 Higher education loan 16,416 134,065,464 8 Land lease 8,509 134,019,695 9 Cloths trading 4,959 109,223,181 10 Vegetables trading 7,046 104,935,615 11 Stationery shop 5,467 103,380,306 12 Vegetables cultivation 7,500 92,834,230 13 Bamboo works 6,850 81,519,186 14 Plantation 6,084 74,333,779 15 Bullock raising 4,233 55,479,496 16 Rickshaw 3,604 45,311,852 17 Potato cultivation 3,291 43,451,285 18 Stationery goods trading 2,140 40,910,680 19 Biri making 4,450 40,591,100 20 Farming 2,922 37,840,833 21 Puffed rice making 2,269 31,952,016 22 Poultry raising 1,885 31,914,291 23 Timber trading 1,518 31,833,755 24 Fish trading 2,005 31,131,717 25 Rabi crop cultivation 2,005 28,079,558

Serial Activity Name Female No Female Amount 1 Milch cow 625,577 7,366,916,099 2 Rice/Paddy trading 701,600 6,766,140,929 3 Cow fattening 612,135 6,504,202,235 4 Grocery shop 362,596 6,173,910,157 5 Paddy cultivation 617,173 5,766,155,894 6 Paddy husking 402,528 3,567,554,391 7 Bamboo works 283,889 3,029,178,275 8 Vegetables cultivation 282,452 2,827,653,604 9 Land lease 235,918 2,696,770,642 10 Miscellaneous business 202,665 2,551,563,640 11 Plantation 226,717 2,264,121,018 12 Vegetables trading 187,858 2,263,118,676 13 Farming 241,498 2,185,158,554 14 Fish trading 166,615 1,760,485,532 15 Stationery shop 118,029 1,636,260,589 16 Cloths trading 96,764 1,611,772,488 17 Pisciculture 93,216 1,330,889,989 18 Rickshaw purchase 122,176 1,294,497,877 19 Bullock raising 124,022 1,273,879,497 20 Cane works 111,779 1,257,883,335 21 Agriculture equipments making 118,236 1,089,136,631 22 Land cultivation 109,446 1,084,292,600 23 Poultry raising 94,042 1,001,417,565 24 Betelleaf cultivation 91,855 974,659,941 25 Potato cultivation 93,048 951,631,857

for female amoUnt (orDer DescenDing)

2010: top 25 items in orDer of loan amoUnts for Which memBer tooK loansDUring the year 2010 (JanUary’10 to DecemBer’10)

28

Landless (Male) Landless (Female) TotaTotaT l

Items No. of Loans Amount of Loans No. of Loans Amount of Loans No. of Loans Amount of Loans

Processing & Manufacturing 2,016 69,927,882 88,534 2,961,166,572 90,550 3,031,094,454

Agriculture & Forestry 3,420 118,439,389 167,243 4,411,163,707 170,663 4,529,603,096

Livestock & Fisheries 4,240 107,380,794 219,264 4,984,860,873 223,504 5,092,241,667

Services 259 12,587,855 20,090 559,904,471 20,349 572,492,326

Trading 7,161 280,448,507 264,870 7,100,592,312 272,031 7,381,040,819

Peddling 151 4,012,000 15,371 316,514,138 15,522 320,526,138

Shopkeeping 3,986 174,617,108 118,228 4,452,142,227 122,214 4,626,759,335

Total : Total : T 21,233 767,413,535 893,600 24,786,344,300 914,833 25,553,757,835

Disbursement of Microenterprise Loans During January to December, 2010 to December, 2010 to December(Listed under broad categories of business activities)

Processing & Manufacturing

Agriculture & Forestry

Livestock & Fisheries

ServicesTrading

Peddling

Shopkeeping

11.86 11.86 %

17.73 %

19.93 %

2.24 %28.88 %

1.25 %

18.11 %

(Amount in BDT)

29

for male amoUnt (orDer DescenDing)

No of loans (Amount in BDT)

Serial Activity Name Male No Male Amount 1 Grocery shop 2,260 101,294,140 2 Rice/Paddy trading 1,854 70,533,522 3 Milch cow 2,552 62,521,275 4 Cloths trading 1,114 45,917,075 5 Stationery shop 812 37,522,208 6 Paddy cultivation 716 26,462,884 7 Vegetables trading 586 22,464,040 8 Cow fattening 892 21,403,850 9 Land lease 610 20,369,500 10 Paddy husking 855 20,197,757 11 Timber trading 308 16,485,526 12 Stationery goods trading 357 14,680,040 13 Vegetables cultivation 585 14,647,647 14 Poultry raising 214 11,232,290 15 Rabi crop cultivation 383 10,857,780 16 Cattle trading 274 10,532,650 17 Plantation 312 9,118,186 18 Fire Wood trading 223 9,037,760 19 Fish trading 223 8,587,660 20 Medicine shop 206 8,096,200 21 Bamboo works 218 7,613,374 22 Rickshaw purchase 102 7,271,996 23 Onion trading 243 7,112,000 24 Farming 162 6,676,000 25 Fruits stall 171 6,522,000

Serial Activity Name Female No Female Amount 1 Grocery shop 69,519 2,905,256,609 2 Milch cow 77,213 1,941,600,917 3 Cow fattening 85,165 1,653,469,667 4 Rice/Paddy trading 55,603 1,571,737,050 5 Miscellaneous business 59,606 1,282,521,942 6 Paddy cultivation 40,435 986,523,759 7 Land lease 26,000 723,757,874 8 Vegetables trading 30,723 707,683,291 9 Bamboo works 17,857 662,514,854 10 Cloths trading 17,800 615,207,116 11 Stationery shop 16,711 584,570,161 12 Pisciculture 21,784 535,886,563 13 Fish trading 16,298 461,406,362 14 Plantation 15,616 450,028,464 15 Vegetables cultivation 14,121 377,374,523 16 Cane works 9,198 335,213,688 17 Rickshaw purchase 11,353 287,138,995 18 Poultry raising 13,172 285,286,838 19 Garments making 5,764 281,336,474 20 Cloths shop 8,219 246,358,706 21 Goat 9,503 246,097,348 22 Land cultivation 10,572 244,679,717 23 Farming 9,911 242,891,372 24 Rabi crop cultivation 6,678 231,924,194 25 Garden lease 7,199 222,617,276

for female amoUnt (orDer DescenDing)

2010: top 25 items in orDer of loan amoUnts for Which memBer tooK loansDUring the year 2010 (JanUary’10 to DecemBer’10)

30

SL Zone Amount Outstanding Members No of Outstanding/ Outstanding MemberNo Disbursed Amount Zone Zone Fimale Branches Branches per Loanee per (In million BDT) (In million BDT) percentage Numbers percentage percentage (In million BDT) (In BDT) Branch

1 Chittagong 27,399.50 2,051.32 3.09 175,593 2.11 93.81 72 28.49 11,682 2,4392 Tangail 27,521.27 2,314.40 3.48 279,909 3.36 85.62 78 29.67 8,268 3,5893 Rangpur 12,430.40 1,492.46 2.25 231,007 2.77 89.48 59 25.30 6,461 3,9154 Manikganj 27,956.70 2,355.07 3.54 244,109 2.93 92.38 62 37.99 9,648 3,9375 Patuakhali 18,676.37 2,159.09 3.25 264,465 3.17 89.68 87 24.82 8,164 3,0406 Bogra 20,129.28 2,673.30 4.02 283,066 3.39 98.42 73 36.62 9,444 3,8787 Sylhet 11,368.06 1,396.20 2.10 204,368 2.45 95.23 70 19.95 6,832 2,9208 Rajshahi 24,866.82 2,585.38 3.89 290,781 3.49 98.69 88 29.38 8,891 3,3049 Dinajpur 13,214.34 1,272.27 1.92 271,277 3.25 98.39 63 20.19 4,690 4,30610 Faridpur 17,083.42 2,377.17 3.58 239,911 2.88 99.26 87 27.32 9,909 2,75811 Comilla 27,463.84 3,019.90 4.55 270,737 3.25 99.76 76 39.74 11,154 3,56212 Mymensingh 9,582.99 1,547.16 2.33 209,561 2.51 99.64 55 28.13 7,383 3,81013 Narayanganj 35,643.58 2,672.61 4.02 223,065 2.67 99.70 62 43.11 11,981 3,59814 Khulna 13,428.71 1,453.68 2.19 212,203 2.54 97.15 69 21.07 6,850 3,07515 Noakhali 16,201.42 1,553.20 2.34 209,496 2.51 99.72 78 19.91 7,414 2,68616 Jamalpur 12,551.09 1,895.57 2.85 253,815 3.04 94.58 56 33.85 7,468 4,53217 Nilphamari 11,101.75 1,573.75 2.37 274,222 3.29 90.42 61 25.80 5,739 4,49518 Habiganj 11,862.40 1,426.43 2.15 222,907 2.67 99.01 59 24.18 6,399 3,77819 Pabna 17,085.63 1,931.22 2.91 224,798 2.70 96.35 60 32.19 8,591 3,74720 Barisal 20,201.76 2,283.71 3.44 218,043 2.61 96.85 80 28.55 10,474 2,72621 Jhenaidah 15,016.04 2,166.72 3.26 244,512 2.93 99.19 74 29.28 8,861 3,30422 Cox’s Bazar 10,672.29 1,186.32 1.79 149,494 1.79 94.16 59 20.11 7,936 2,53423 Gaibandha 10,159.21 1,158.28 1.74 197,895 2.37 92.31 55 21.06 5,853 3,59824 Noagaon 17,265.81 1,741.90 2.62 241,980 2.90 98.55 77 22.62 7,199 3,14325 Jessore 13,280.26 1,705.34 2.57 217,950 2.61 98.58 80 21.32 7,824 2,72426 Chandpur 10,505.04 1,147.04 1.73 142,667 1.71 99.76 54 21.24 8,040 2,64227 Kishoreganj 8,689.39 1,657.30 2.49 229,007 2.75 99.64 71 23.34 7,237 3,22528 Bhola 5,214.15 871.24 1.31 125,692 1.51 99.77 52 16.75 6,932 2,41729 Rangamati 3,622.85 530.80 0.80 65,505 0.79 99.75 44 12.06 8,103 1,48930 Gazipur 23,757.26 1,876.79 2.83 184,927 2.22 94.22 49 38.30 10,149 3,77431 Madaripur 13,738.79 1,755.67 2.64 177,778 2.13 99.58 68 25.82 9,876 2,61432 Thakurgaon 11,282.30 1,434.98 2.16 258,535 3.10 98.06 72 19.93 5,550 3,59133 Perojpur 10,754.01 1,474.36 2.22 170,541 2.04 99.31 61 24.17 8,645 2,79634 Sunamganj 6,363.33 1,123.26 1.69 140,214 1.68 99.15 58 19.37 8,011 2,41735 Feni 9,667.96 936.25 1.41 89,108 1.07 99.28 47 19.92 10,507 1,89636 Narsingdi 14,158.26 1,052.53 1.58 194,966 2.34 95.07 39 26.99 5,399 4,99937 Kurigram 7,322.21 767.31 1.15 156,166 1.87 93.99 48 15.99 4,913 3,25338 Netrokona 5,956.81 1,148.31 1.73 141,938 1.70 99.51 55 20.88 8,090 2,58139 Sirajganj 13,837.69 1,421.82 2.14 184,281 2.21 92.69 46 30.91 7,715 4,00640 Sherpur 7,427.61 1,244.35 1.87 224,134 2.69 98.71 61 20.40 5,552 3,674

Total 594,460.61 66,434.45 100.00 8,340,623 100.00 96.39 2565 25.90 7,965 3,252

31

Sl. Particulars In million BDTNo.

1.0 Cumulative Amount Disbursed Since Inception 594,460.612.0 Cumulative Amount Repaid Since Inception 528,026.173.0 Amount Disbursed this Month 10,055.084.0 Amount Repaid this Month 8,570.245.0 Outstanding Loans 5.1 Basic Loan 60,671.71 5.2 Flexible Loan (a) 3,464.32 5.3 Housing Loan 126.70 5.4 Education Loan 1,973.14 5.5 Other Loans 198.58 5.6 Total : 66,434.456.0 Rate of Recovery (b) 97.377.0 Total Outstanding of Borrowers Missing 5 to 9 Consecutive Installments (c)

7.1 Basic Loan 790.87 7.2 Flexible Loan 572.00 7.3 Total : 1362.878.0 Overdue Loan(d) 8.1 Basic Loan(e) 347.82 8.2 Flexible Loan 279.23 8.3 Housing Loan 5.34 8.4 Other Loans 0.14 8.5 Total : 632.539.0 Microenterprise Loan (Cumulative) 9.1 No. of Microenterprise Loans 2,915,494 9.2 Amount Disbursed 81,628.38 9.3 Amount Repaid 65,806.4710.0 Balance of Deposits 10.1 Members’ Deposit 56,345.90 10.2 Non-Members’ Deposit 48,132.53 10.3 Total : 104,478.4311.0 Deposits to Outstanding 11.1 Deposits as Percentage of Outstanding Loans 157 11.2 Deposits and Own Resources as Percentage of Outstanding Loans 172 11.3 No. of Branches with more in Deposits than in Outstanding Loans 1,821

Sl. Particulars In million BDTNo.

12.0 Beggar Members 12.1 No. of Beggar Members 90,776 12.2 Amount Disbursed (Cumulative) 154.99 12.3 Amount Repaid (Cumulative) 122.18 12.4 Amount of Savings (Balance) 8.3313.0 Cumulative Number of Village Phones 394,36214.0 Cumulative Number of Houses Built with Housing Loans 687,33115.0 Life Insurance Fund (Cumulative) 15.1 No. of deaths among all Borrowers 131,654 15.2 Amount paid out from Life Insurance Fund 231.7516.0 Loan Insurance 16.1 Balance in Loan Insurance Savings 6,324.79 16.2 No. of deaths among Insured Borrowers (Cumulative) 185,933 16.3 Amount of Outstanding Principal and Interest of the Deceased Borrowers paid out from Insurance Fund (Cumulative) 1,600.8817.0 Higher Education Loan (Cumulative) 17.1 No. of Female Students 10,861 17.2 No. of Male Students 36,990 17.3 Total : 47,851 17.4 Amount Disbursed (Female) 488.44 17.5 Amount Disbursed (Male) 1,578.39 17.6 Total : 2,066.8418.0 Scholarship (Cumulative) 18.1 Scholarship Recipient (Female) 66,571 18.2 Scholarship Recipient (Male) 47,895 18.3 Total : 114,466 18.4 Scholarship Amount (Female) 99.91 18.5 Scholarship Amount (Male) 73.69 18.6 Total : 173.5919.0 Number of Members(f) 19.1 Female 8,039,408 19.2 Male 301,215 19.3 Total : 8,340,62320.0 Number of Groups 1,284,60621.0 Number of Centres 144,61922.0 Number of Villages 81,37623.0 Number of Branches 2,56524.0 Number of Branches with Computerised Accounting and MIS 2,564

(a) On the last day of each month, 50 per cent provision is made against the outstanding amounts of fl exible loans with age of less than two years, and 100 per cent provision is made against the outstanding amounts of fl exible loans with age of two years and more. The portions of fl exible loans which complete the third year are written off exactly on the date following their completion.

(b) Amount repaid as a percentage of amount due.(c) If a borrower misses ten consecutive instalments, the entire outstanding loan is treated as an

overdue loan.(d) 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.

(e) 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.

(f) Number of members includes both Beggar Members and Higher Education Loan recipients mentioned in item no. 12.1 & 17.3 respectively

Note : Current Exchange Rate : 1 USD = BDT 70.39

32

0

100000

200000

300000

400000

500000

600000

Up to 2006, BDT 306,369 million was disbursed as loans. Up to 2010, this �gure reached BDT 594,461 million, which translates to an increase of 94.03% during the �ve-year period. The average annual growth of cumulative disbursement of loans during this time was 18.81%.

Cumulat ive Disbursement of Loans

06 07 08 09 10

0

2000

4000

6000

8000

10000

12000

The highest amount of loan disbursed in the month of December (BDT 10,005 million). On the other hand, the lowest amount of loan disbursed in September (BDT 5,554 million). The average amount of loan disbursed per month during the twelve months was BDT 8,012 million.

2010: Disbursement of Loans

Jan Feb Mar Apr Ma

y Jun Jul Aug Sep Oct Nov Dec

8400

8520

8640

8760

8880

9000

Up to 2006, BDT 8,473 million was disbursed as housing loans. In 2010, this �gure stood at BDT 8,978 million, which translates to an increase of 5.96% during the �ve-year period. The average annual growth of cumulative disbursement of housing loans during this time was 1.19%.

Cumulative Disbursement of Housing Loans

07 08 09 10

(Am

ount

in M

illion

BD

T)(A

mou

nt in

Milli

on B

DT)

(Am

ount

in M

illion

BD

T)

t of Loans

rease of verage ent of

g Loan

33

600000

611250

622500

633750

645000

656250

667500

678750

690000

Up to 2006, the cumulative number of housing loans was 641,096. Up to 2010 this �gure reached 687,331. It represents an increase of 7.21% from 2006 to 2010 and an average annual growth of 1.44% during the �ve-year period.

Cumulat ive Number of Housing Loans

06 07 08 09 10

0

2000000

4000000

6000000

8000000

10000000

06 07 08 09 10

Up to 2006, the cumulative number of members was 6.91 million. In 2010, this �gure stood at 8.34 million. It represents an increase of 20.69% from 2006 to 2010 and an average annual growth of 4.14% during the �ve-year period.

Growth of Membership (Cumulat ive)

2300

2350

2400

2450

2500

2550

2600

Up to 2006, the cumulative number of branches was 2,319. Up to 2010, this �gure reached 2,565. It represents an increase of 10.61% from 2006 to 2010 and an average annual growth of 2.12% during the �ve-year period. Growth of number of branches in 2010 is 0.12% over the previous year.

Number of Branches (Cumulative)

06 07 08 09 10

e e

010hen

34

0

20000

40000

60000

80000

100000

Up to 2006, the cumulative number of villages covered was 74,462. In 2010, this �gure stood at 81,376. It represents an increase of 9.28% from 2006 to 2010 and an average annual growth of 2% during the �ve-year period.

Number of Villages Covered (Cumulative)

06 07 08 09 10

0

5000

10000

15000

20000

25000

30000

06 07 08 09 10

The number of full time sta� including Management Trainees was 22,255 in 2010; while, the number of trainees was 2,936. The number of employees escalated by a whopping 7% within a short span of �ve years 20,885 in 2006 to 22,255 in 2010. However, the slightly declined by 4% in 2010 due mainly to rationalization of manpower and process of attrition (retirement etc)

Number of Full-Time Sta�, Trainees & Employees

2600

2680

2760

2840

2920

3000

In 2010, Grameen Bank had a total of 2,914 o�ces, including branch o�ces, area o�ces, zonal audit o�ces, zonal o�ces and the head o�ce. Compared to the previous year, this is a 0.068% increase in the number of o�ces. The number of o�ces increased due to the expansion of the number of branches of Grameen Bank.

Number of O�ces

06 07 08 09 10

06

ve)

0

35

95.0

95.6

96.2

96.8

97.4

98.0

Historically, the majority of members of Grameen Bank have been women. The years under consideration are no exception. The percent of women members throughout 2006 to 2007 was within close proximity of the 96% mark, from 2008 to 2009 is 97% and in 2010 it remain same i.e., 97%.


06 07 08 09 10

2400

2420

2440

2460

2480

2500

2520

2540

2560

2580

2600

06 07 08 09 10

Number of Borrowers Per Branch (Year-end)

Total Assets

06 07 08 09 10

In 2010, the number of borrowers per branch (year-end) stood 2,578, a 3%

increase compared to the previous year. In 2009, the number was at 2,508, a 2%

increase compared to the previous year.

In 2010, the total assets of Grameen Bank stood at BDT 125.40 billion, a 21% increase compared to the previous year. In 2009, total assets increased 24% compared to the previous year. This upward trend in the assets of Grameen Bank is the result of healthy loan portfolio growth.

Num

125,397

(Am

ount

in M

illion

BD

T)

0

30000

60000

90000

120000

150000

37

(Amount in Million BDT)

Sl. Particulars 2009 2010 increase/Decrease During 2010

1 Basic Loans : Disbursed 345,620.42 437,815.48 92,195.06 Repaid 294,508.46 377,143.77 82,635.31

2 Flexible Loans Disbursed 11,204.56 14,355.07 3,150.51 Repaid 9,464.22 10,890.75 1,426.53

3 Housing Loans : Disbursed 8,889.25 8,978.03 88.78 Repaid 8,688.45 8,851.33 162.88

4 Other Loans : Disbursed 132,597.25 133,312.04 714.79 Repaid 130,935.80 131,140.32 204.52

5 Outstanding : Loans 54,717.54 66,634.45 11,916.91 Interest 3868.00 4365.00 497.00 Average Outstanding per Loanee (In Taka) 8,514 10,047 1,533

6 Overdue Loans : 1,439.04 632.53 -806.51

7 Overall Repayment percentage 96.55 97.37 0.82

8 Deposits Balance : GB Members 44,823.49 56,345.90 11,522.41

9 Number of Members : Female 7,714,854 8,039,408 324,554 Male 255,762 301,215 45,453 Total 7,970,616 8,340,623 370,007

10 Number of Loanees : 6,426,515 6,612,175 185,660

11 Number of Centres 144106 144619 513

12 Number of Villages Covered 83,458 81,376 -2,082

13 Number of Branches in Operation 2,562 2,565 3

14 Number of Areas 268 268 0

15 Number of Zones 40 40 0

16 Information Management Centres 268 268 0

17 Education Loans Disbursed 1,506.65 2,066.84 560.19

18 Number of Education Loanees 40,804 47,851 7,047

19 Number of GB Scholarships 92,554 114,466 21,912

20 Amount of GB Scholarships 132.60 173.59 40.99

38

Performance Indicator 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Cumulative Disbursement (All Loans) 0.008 0.08 0.35 3.06 20.17 53.7 95.61 194.95 499.31 927.76 1469.49 2279.52 3559.95 5328.23 7590.7 10230.3 15434 26056.1 39968.5 53632 65509.8 81780.4 100899.8 116597.7 130559.1 146538.2 162286.24 183575.33 209166.76 248163.17 306368.63 356798.22 418903.07 498311.47 594460.61

Disbursement During the Year (All Loans) 0.008 0.073 0.268 2.71 17.11 33.53 41.91 99.34 304.36 428.45 541.73 810.03 1280.43 1768.28 2262.47 2639.6 5203.7 10622.1 13912.4 13663.5 11877.8 16270.6 19119.4 15697.9 13961.4 15979.1 15748.04 21289.09 25591.43 38996.41 49732.95 58902.1 62104.85 79408.4 96149.34

Year-end Outstanding Amount 0.005 0.054 0.24 1.88 13.19 21.32 31.63 72.07 177.03 225.68 301.51 457.74 723.87 996.95 1270.82 1585.42 3168.88 6166.98 7933.38 8298.88 8639.68 10590.28 12316.68 11035.58 10435.98 11068.08 11395.12 15086.21 18874.64 27357.06 32941.31 36336.3 44396.63 54714.54 66434.45

Housing Loan Disbursement During the Year - - - - - - - - 3.6 17.2 5.7 140.7 170.4 236.3 224.6 301.9 559.3 1673 1338.6 712.96 168.7 687.7 973.9 222.7 73.29 56.3 120.62 177.66 282.05 187.08 138.19 96.02 152.31 168.4 88.78

Number of Houses Built cum. - - - - - - - - 317 1581 2042 23408 44556 67841 91157 118717 157334 258194 295702 331201 329040 402747 506680 511583 533041 545121 558055 578532 607415 627058 641096 650839 665568 679577 687331

Total Deposits (Balance) - - 0 0.22 1.48 4.23 7.37 18.51 38.33 79.82 122.67 221.88 324.46 566.65 851.43 1381.03 2176.32 3150.21 4132.56 4767.2 5211.95 5804.35 5404.45 6013.62 6611.85 7697.14 9424.15 14715.75 20717.79 31659.56 44274.47 51918.71 64177.25 82953.62 104478.43

Deposits of GB Members (Balance) - - 0 0.22 1.48 4.23 7.37 18.51 38.33 71.62 112.39 217.37 285.39 415.77 543.52 951.8 1386.46 2722.01 3413.67 4047.99 3782.94 4562.86 4844.45 5523.95 5243.55 3827.6 7305.08 9972.15 13793.14 20138.37 27298.19 29533.51 34923.62 44823.49 56345.9

GB Members’ Deposit as % of Total Deposit - - - 100 100 100 100 100 100 90 92 98 88 73 64 69 64 86 83 85 73 79 90 92 79 50 78 68 67 64 62 57 54 54 54

Number of Groups - 4 45 377 2935 4818 6243 11667 24211 34324 46869 67831 98073 132452 173907 213286 284889 372298 412145 424993 433791 465384 486870 494044 503001 504651 513141 577886 685083 877142 1086744 1168840 1210343 1253160 1284606

Number of Members 10 70 290 2200 14830 24128 30416 58320 121114 171622 234343 339156 490363 662263 869538 1066426 1424395 1814916 2013130 2065661 2059510 2272503 2368347 2357083 2378356 2378601 2483006 3123802 4059632 5579399 6908704 7411229 7670203 7970616 8340623

Percentage of Female Members 20 14 24 41 31 39 39 46 56 65 74 81 86 89 91 92 94 94 94 94 94 95 95 95 95 95 95 95 96 96 97 97 97 97 97

Number of Villages covered 1 2 4 17 363 433 745 1249 2268 3666 5170 7502 10552 15073 19536 25248 30619 33667 34913 35533 36420 37937 39045 39706 40225 40447 41636 43681 48472 59912 74462 80678 83566 83458 81376

Number of Branches 1 1 1 6 24 24 54 86 152 226 295 396 501 641 781 915 1015 1040 1045 1055 1079 1105 1137 1149 1160 1173 1178 1195 1358 1735 2319 2481 2539 2562 2565

Profi t/Loss (For the Year) - - - - - - - -3.26 4.25 0.4 0.36 0.44 1.17 2.25 3.1 -8.31 -5.65 9.56 21.67 15.03 19.02 14.32 10.43 76.93 11.14 58.45 59.67 357.52 422.13 1000.44 1398.15 106.91 1305 371.57 757.24

Note : 1) 1976 fi gures 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, 1983. Housing Loan Programme started from 1984.

39

Amount in million BDT

Note : 1) 1976 fi gures 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, 1983. Housing Loan Programme started from 1984.


Cumulative Disbursement (All Loans) 0.008 0.08 0.35 3.06 20.17 53.7 95.61 194.95 499.31 927.76 1469.49 2279.52 3559.95 5328.23 7590.7 10230.3 15434 26056.1 39968.5 53632 65509.8 81780.4 100899.8 116597.7 130559.1 146538.2 162286.24 183575.33 209166.76 248163.17 306368.63 356798.22 418903.07 498311.47 594460.61



Housing Loan Disbursement During the Year - - - - - - - - 3.6 17.2 5.7 140.7 170.4 236.3 224.6 301.9 559.3 1673 1338.6 712.96 168.7 687.7 973.9 222.7 73.29 56.3 120.62 177.66 282.05 187.08 138.19 96.02 152.31 168.4 88.78


Total Deposits (Balance) - - 0 0.22 1.48 4.23 7.37 18.51 38.33 79.82 122.67 221.88 324.46 566.65 851.43 1381.03 2176.32 3150.21 4132.56 4767.2 5211.95 5804.35 5404.45 6013.62 6611.85 7697.14 9424.15 14715.75 20717.79 31659.56 44274.47 51918.71 64177.25 82953.62 104478.43

Deposits of GB Members (Balance) - - 0 0.22 1.48 4.23 7.37 18.51 38.33 71.62 112.39 217.37 285.39 415.77 543.52 951.8 1386.46 2722.01 3413.67 4047.99 3782.94 4562.86 4844.45 5523.95 5243.55 3827.6 7305.08 9972.15 13793.14 20138.37 27298.19 29533.51 34923.62 44823.49 56345.9


Number of Groups - 4 45 377 2935 4818 6243 11667 24211 34324 46869 67831 98073 132452 173907 213286 284889 372298 412145 424993 433791 465384 486870 494044 503001 504651 513141 577886 685083 877142 1086744 1168840 1210343 1253160 1284606





Profi t/Loss (For the Year) - - - - - - - -3.26 4.25 0.4 0.36 0.44 1.17 2.25 3.1 -8.31 -5.65 9.56 21.67 15.03 19.02 14.32 10.43 76.93 11.14 58.45 59.67 357.52 422.13 1000.44 1398.15 106.91 1305 371.57 757.24

40


Cumulative Disbursement (All Loans) 0.001 0.006 0.026 0.21 1.31 3.37 5.46 9.63 21.83 38.33 56.51 83.04 124.16 179.35 248.08 322.43 459.37 725.39 1072.77 1405.94 1691.74 2062.96 2471.61 2792 3060.44 3347.98 3620.5 3986.46 4416.82 5025.61 5954..02 6685.51 7591.32 8741.86 10124.64



Housing Loan Disbursement During the Year - - - - - - - - 0.14 0.66 0.19 4.59 5.45 7.35 6.82 8.46 14.72 41.9 33.42 17.39 4.06 15.69 20.81 4.54 1.41 1.01 2.09 3.05 4.74 2.95 2.01 1.4 2.21 2.43 1.26


Total Deposits (Balance) - - - 0.01 0.1 0.26 0.37 0.78 1.54 3.07 4.1 7.24 10.39 17.63 25.86 38.71 57.05 79.49 103.11 117.56 125.14 132.27 115.21 122.52 126.78 137.92 162.77 227.66 343.52 481.22 633.31 756.61 933.89 1200.49 1484.28

Deposits of GB Members (Balance) - - - 0.01 0.1 0.26 0.37 0.78 1.54 2.76 3.76 7.1 9.14 12.94 16.51 26.68 36.34 68.69 85.17 99.83 90.83 103.98 103.27 112.54 100.54 68.58 126.17 170.61 228.7 306.1 390.48 430.39 508.2 648.68 800.48


Number of Groups - 4 45 377 2935 4818 6243 11667 24211 34324 46869 67831 98073 132452 173907 213286 284889 372298 412145 424993 433791 465384 486870 494044 503001 504651 513141 577886 685083 877142 1086744 1168840 1210343 1253160 1284606





Profit/Loss (For the Year) - - - - - - - 0.0059 0.0068 0.0008 0.0003 0.0003 0.0013 0.0022 0.0027 -0.0064 -0.15 0.24 0.54 0.37 0.46 0.33 2.15 1.57 0.21 1.05 1.03 6.15 7 15.21 20 1.56 18.99 5.38 10.76

41

Amount in million USD


Cumulative Disbursement (All Loans) 0.001 0.006 0.026 0.21 1.31 3.37 5.46 9.63 21.83 38.33 56.51 83.04 124.16 179.35 248.08 322.43 459.37 725.39 1072.77 1405.94 1691.74 2062.96 2471.61 2792 3060.44 3347.98 3620.5 3986.46 4416.82 5025.61 5954..02 6685.51 7591.32 8741.86 10124.64



Housing Loan Disbursement During the Year - - - - - - - - 0.14 0.66 0.19 4.59 5.45 7.35 6.82 8.46 14.72 41.9 33.42 17.39 4.06 15.69 20.81 4.54 1.41 1.01 2.09 3.05 4.74 2.95 2.01 1.4 2.21 2.43 1.26


Total Deposits (Balance) - - - 0.01 0.1 0.26 0.37 0.78 1.54 3.07 4.1 7.24 10.39 17.63 25.86 38.71 57.05 79.49 103.11 117.56 125.14 132.27 115.21 122.52 126.78 137.92 162.77 227.66 343.52 481.22 633.31 756.61 933.89 1200.49 1484.28

Deposits of GB Members (Balance) - - - 0.01 0.1 0.26 0.37 0.78 1.54 2.76 3.76 7.1 9.14 12.94 16.51 26.68 36.34 68.69 85.17 99.83 90.83 103.98 103.27 112.54 100.54 68.58 126.17 170.61 228.7 306.1 390.48 430.39 508.2 648.68 800.48


Number of Groups - 4 45 377 2935 4818 6243 11667 24211 34324 46869 67831 98073 132452 173907 213286 284889 372298 412145 424993 433791 465384 486870 494044 503001 504651 513141 577886 685083 877142 1086744 1168840 1210343 1253160 1284606





Profit/Loss (For the Year) - - - - - - - 0.0059 0.0068 0.0008 0.0003 0.0003 0.0013 0.0022 0.0027 -0.0064 -0.15 0.24 0.54 0.37 0.46 0.33 2.15 1.57 0.21 1.05 1.03 6.15 7 15.21 20 1.56 18.99 5.38 10.76

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, 1983. Housing Loan Programme started from 1984.

Since its modest beginning in 1993, GB computerization programme has come a long way. At the end of 2010, 2,565 (out of 2,565) branches have been computerized. To increase the operational effi ciency of any fi nancial institution, it is important to minimise paper work at all levels particularly at branch level. Given the limitations of power supply, it is still not possible to derive maximum benefi t from the computerization of Grameen management information system, especially in the rural areas.

During the year 2010, we set up all Information Management Centres at the area level. All of our area offi ces had setup Information Management Centres in this year. 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 effi ciency of the computerizationprogramme.

When the Information Management Centres attain their full capacity to serve 3 branches with one computer.

44

SL Zone # of Centres # of Computers # of Branches

1. Chittagong 8 25 722. Tangail 8 28 783. Rangpur 6 21 594. Manikganj 6 23 625. Patuakhali 9 30 876. Bogra 7 27 737. Sylhet 7 25 708. Rajshahi 9 31 889. Dinajpur 7 22 6310. Faridpur 9 30 8711. Comilla 8 26 7612. Mymensingh 7 21 5513. Narayoniganj 6 23 6214. Khulna 7 24 6915. Noakhali 8 27 7816. Jamalpur 6 20 5617. Nilphamari 6 22 6118. Hobiganj 6 19 5919. Pabna 7 21 6020. Barisal 8 31 8021. Jhenaidah 7 28 7422. Cox’s bazar 7 20 5923. Gaibandha 6 19 5524. Noagaon 7 28 7725. Jessore 8 28 8026. Chandpur 6 19 5427. Kishoreganj 7 27 7128. Bhola 5 18 5229. Rangamati 6 15 4430. Gazipur 5 17 4931. Madaripur 7 25 6832. Thakurgaon 7 26 7233. Perojpur 6 21 6134. Sunamganj 7 21 5835. Feni 5 15 4736. Narsingdi 4 15 3937. Kurigram 5 17 4838. Netrokona 6 20 5539. Serajganj 5 17 4640 Sherpur 7 21 61

Total 268 913 2565

All the zonal offi ces were

brought under Internet network. As a result data

transfer has become both easy and less expensive. All area offi ces (Information Management Centres)

will be setup Internet network

to get better services. Grameen Communications, an independent

company provides necessary technical

assistance for supporting the computerization

programme of Grameen Bank.

45

46

H.E. Sharad Pawar, Hon’ble Minister of Agriculture, Government of India visit Grameen Bank

Ms Thokozani Khupe, Zimbabwe Deputy Prime Minister visits GB

18th Grameen Bank Kormochari Samity Anniversari at Grameen Bank Head office

Group picture of karmochari samity anniversari

41st Zonal Conference, and Gold cup award giving ceremony Indian Minister visit GB

47

Microcredit Fair at BB conference Hall-2010

Khajana-Malaysian Scholarship student with Professore Yunus Amana Ekthair, Malayshia team visit GB

50

Auditors’ Report along with Financial Statements

For the year ended 31 December 2010

ACNABiNChartered AccountantsBDBL Bhaban (13th Floor)12 Kawran Bazar C/A, Dhaka-1215.

S. F. Ahmed & Co.Chartered Accountants House # 25, Road # 13ABanani, Dhaka-1213.

AnnuAl RepoRt 2010 51

AUDITORS’ REPORTOF GRAMEEN BANK

We have audited the accompanying financial statements of Grameen Bank (“the Bank”), which comprise the balance sheet as at 31 December 2010, and the profit and loss account, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Grameen Bank as at 31 December 2010, and its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards. Report on Other Legal and Regulatory Requirements

We further report that:

1. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof;

2. in our opinion, proper books of accounts as required by laws were kept by the Bank so far as it appeared from our examination of those books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us;

3. the Bank’s balance sheet and profit and loss account dealt with by the report are in agreement with the books of accounts and returns;

4. the expenditures incurred were for the purpose of the Bank’s operations;

5. the financial statements have been drawn up in conformity with Grameen Bank Ordinance, 1983 and in accordance with the applicable rules and regulations;

6. adequate provisions have been made for advances and other assets which are, in our opinion, doubtful of recovery;

7. the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements; and

8. the information and explanations required by us have been received and found satisfactory.

ACNABIN S. F. Ahmed & Co. Chartered Accountants Chartered Accountants

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BAlANcE ShEETAs At 31 DecemBeR 2010

Notes 2010 2009 Taka Taka

PROPERTY AND ASSETS

Cash in hand 895,544 1,119,488Balances with Bangladesh Bank-in local currency 2,574,932 6,094,552Balances with other banks and financial institutions 4 1,308,117,165 1,289,217,003Investments-at cost 5 47,757,186,897 37,750,731,641Loans and advances-without collateral 6 68,417,977,923 56,359,028,995Fixed assets (at cost less accumulated depreciation) (Annexure-A) 7 1,379,656,418 1,222,283,438Investment property (at cost less accumulated depreciation) (Annexure-B) 8 108,540,014 111,558,215Other assets 9 6,422,009,079 6,265,224,923

125,396,957,972 103,005,258,255CAPITAL AND LIABILITIESBorrowings from banks and other institutions 10 1,589,027,602 1,669,160,600Members deposit 56,644,001,002 45,028,545,273Non-Members deposit 48,378,999,640 38,302,189,338Other funds 4,183,727,068 3,955,756,098Deposits and other funds 11 109,206,727,710 87,286,490,709Other liabilities 12 7,238,222,597 7,306,123,978

Shareholders’ fundPaid up capital 13 547,689,200 523,949,300Capital and other reserves 14 6,585,290,863 6,057,533,668Retained surplus 15 230,000,000 162,000,000 7,362,980,063 6,743,482,968 125,396,957,972 103,005,258,255

The annexed notes 1 to 30 form an integral part of these financial statements.

(M Shahjahan) (Nurjahan Begum) General Manager Director Director Acting Managing Director


Dated, Dhaka26 July 2011


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Profit and Loss accountFoR the yeAR ended 31 decemBeR 2010


OPERATING INCOMEINTEREST INCOME 16 12,435,830,045 9,797,088,049LESS: INTEREST/PROFIT PAID ON DEPOSITS & BORROWINGS ETC. 17 (9,227,772,950) (7,068,039,648)

Net interest income 3,208,057,095 2,729,048,401Income from investments in fixed deposits 3,946,135,748 3,949,824,956Income from investments in Grameen Mutual Fund-One 89,312,500 -Income from share investments 1,200,000 1,000,000Other income 18 1,269,126,767 749,438,046Total Operating Income 8,513,832,110 7,429,311,403

LESS: OPERATING EXPENSESSalaries and other related expenses 19 4,639,159,752 3,822,742,404Rent, rates, taxes, vehicle insurance, utilities etc. 20 121,793,273 105,866,764Legal and professional expenses 21 233,111,678 154,756,058Auditors’ fees 22 1,377,800 1,133,825Stationery, printing, advertisement etc. 23 117,637,985 133,793,830Managing Director’s salary & allowances 24 815,280 637,680Directors’ remuneration 42,000 232,000Repairs & maintenance of fixed assets 25 47,007,495 66,122,283Depreciation of fixed assets (Annexure-A) 70,798,924 70,835,708Depreciation of investment property (Annexure-B) 2,405,278 2,410,515Other expenses 26 1,569,968,329 1,270,637,161Total Operating Expenses 6,804,117,794 5,629,168,228

Profit before provision 1,709,714,316 1,800,143,175Provisions for loans and advances 27Specific provision 1,008,783,786 1,324,137,761General provision (56,310,792) 104,432,510

952,472,994 1,428,570,271NET PROFIT 757,241,322 371,572,904APPROPRIATIONSNET PROFIT TRANSFERRED TO 757,241,322 371,572,904

Retained surplus brought forward from previous year 15 162,000,000 109,000,000Dividend equalization fund 250,000,000 50,000,000Cash dividend @ 30% 164,306,760 157,184,790General reserve 260,000,000 100,000,000Employees’ welfare fund 14,934,562 11,388,114

689,241,322 318,572,904Retained surplus 230,000,000 162,000,000The annexed notes 1 to 30 form an integral part of these financial statements.

(M Shahjahan) (Nurjahan Begum) General Manager Director Director Acting Managing Director


Dated, Dhaka26 July 2011

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cash fLow statementFoR the yeAR ended 31 decemBeR 2010


Cash flows from operating activitiesInterest received 16,391,247,503 13,303,538,950Dividend income Grameen Mutual Fund-One 89,312,500 -Dividend income from share inestments 1,200,000 1,000,000Interest paid (9,227,003,822) (7,066,648,581)Cash payments to employees (4,640,115,182) (3,823,151,724)Payments for other operating expenses (2,090,896,560) (1,732,309,921)Receipts from other operating income 687,231,929 336,701,083Recoveries from loans previously written off 580,263,381 408,453,977Operating profit before changes in operating assets and liabilities 1,791,239,749 1,427,583,784

(Increase)/decrease in operating assets:

Loans and advances (12,058,948,928) (10,572,071,111)Other assets 28 (166,065,866) (30,137,934)Increase/(decrease) in operating liabilities:Deposits and other funds 21,905,302,439 18,952,244,232Other liabilities 29 (1,021,045,353) (434,485,878)Net cash from operating activities 10,450,482,041 9,343,133,093

Cash flows from investing activities

Purchase of tangible fixed assets (212,461,614) (248,232,726)Disposal of tangible fixed assets (13,465,910) 8,696,681Investments in FDR (10,006,455,256) (9,020,427,420)Net cash used in investing activities (10,232,382,780) (9,259,963,465)

Cash flows from financing activitiesIssue of share capital 23,739,900 165,949,300Net decrease in borrowings from banks and other institutions (80,132,998) (62,057,932)Net increase in capital reserves 26,173,704 -Payment of dividends (157,184,790) (107,400,000)Payment of tax on dividends (15,538,479) (10,560,000)Payment to GB borrowers’ investments trust - (101,128,400)Net cash used in financing activities (202,942,663) (115,197,032)

Net Increase/(decrease) in cash and cash equivalents 15,156,598 (32,027,404)Cash and cash equivalents at beginning of the period 1,296,431,043 1,328,458,447Cash and cash equivalents at end of the period 30 1,311,587,641 1,296,431,043

The annexed notes 1 to 30 form an integral part of these financial statements

(M Shahjahan) (Nurjahan Begum) General Manager Acting Managing Director


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statement of changes in equityFoR the yeAR ended 31 decemBeR 2010

Particulars Paid up Capital General Dividend Proposed Other Retained Total Capital Reserve Reserve Equalization Dividend Reserve Surplus Fund

Balance at 1 January 2010 523,949,300 4,280,409,577 1,144,000,000 360,166,000 157,184,790 115,773,301 162,000,000 6,743,482,968Retained balance 523,949,300 4,280,409,577 1,144,000,000 360,166,000 157,184,790 115,773,301 162,000,000 6,743,482,968Paid up capital 23,739,900 - - - - - - 23,739,900Revolving fund shown to capital reserve - 26,173,704 - - - - - 26,173,704Dividend for the year 2009 @ 30% - - - - (157,184,790) - - (157,184,790)Tax paid - - - (15,538,479) - - - (15,538,479)Net profit for the year - - - - - - 757,241,322 757,241,322Proposed dividend for the year 2010 @ 30% - - - - 164,306,760 (164,306,760) -General reserve - - 260,000,000 - - - (260,000,000) -Employees welfare fund - - - - - - (14,934,562) (14,934,562)Dividend equalization fund - - - 250,000,000 - - (250,000,000) -Balance as at 31 December 2010 547,689,200 4,306,583,281 1,404,000,000 594,627,521 164,306,760 115,773,301 230,000,000 7,362,980,063


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statement of LiquidityFoR the yeAR ended 31 decemBeR 2010

Particulars Up to 1 month 1-3 months 3-12 months 1-5 years More than 5 years Total

AssetsCash in hand 895,544 - - - - 895,544Balances with Bangladesh Bank 2,574,932 - - - - 2,574,932Balances with other banks and financial institutions 143,892,888 1,164,224,277 - - - 1,308,117,165Investments-at cost 15,921,856,350 19,359,307,737 12,209,022,810 263,000,000 4,000,000 47,757,186,897Loans and advances 4,102,587,535 8,205,175,070 38,316,558,909 16,425,296,873 1,368,359,536 68,417,977,923Fixed assets (Net off accumulated depreciation) (Annexure-A) - - - 179,355,334 1,200,301,084 1,379,656,418Invest property (Net off accumulated depreciation) (Annexure-B) - - - - 108,540,014 108,540,014Other assets 128,439,436 770,639,430 1,733,956,066 2,825,675,634 963,298,513 6,422,009,079Non-banking assets - - - - - -Total assets (A) 20,300,246,685 29,499,346,514 52,259,537,785 19,693,327,841 3,644,499,147 125,396,957,972

LiabilitiesBorrowings from banks and other institutions - 31,028,966 62,057,932 310,289,660 1,185,651,044 1,589,027,602Deposits and other funds 4,412,285,316 16,374,131,624 45,847,568,547 29,473,436,924 13,099,305,299 109,206,727,710Other liabilities 940,968,938 24,361,465 1,954,320,101 4,318,572,093 - 7,238,222,597Total liabilities (B) 5,353,254,254 16,429,522,055 47,863,946,580 34,102,298,677 14,284,956,343 118,033,977,909

Net Liquidity Gap (A-B) 14,946,992,431 13,069,824,459 4,395,591,205 (14,408,970,836) (10,640,457,196) 7,362,980,063

-



GRAmeen BAnk

notes to the financiaL statementsAs At And FoR the yeAR ended 31 decemBeR 2010

1.00 BACKGROUND

1.01 Legal form of the entity

Grameen Bank was established as a body corporate under the Grameen Bank Ordinance 1983. Initially the authorized capital of the Bank was Tk 100 million and paid-up capital was Tk. 30 million. At present the Bank’s authorized capital is Tk. 3,500 million and paid up capital is Tk. 547.69 million. Members hold 96.71 percent of Grameen Bank shares. The remaining 3.29 percent is held by the Government of Bangladesh, Sonali Bank Ltd and Bangladesh Krishi Bank. The board of the Bank consists of 13 members: the Managing Director, three members including the chairman nominated by the government and nine members elected from the borrower shareholders.

1.02 Nature of business

The principal activity of the Bank is to provide credit without collateral to landless persons (any person who or whose family owns less than fifty decimals of cultivable land or who or whose family owns property, both movable and immovable, the value of which does not exceed the value of one acre of cultivable land according to the prevailing market price in the union in which the person normally resides) for all types of economic activities. The Bank also accepts deposits but excluding business in foreign exchange transactions, carries out survey and research, issue publications and maintaining statistics with a view to improving the economic condition of the landless persons. The Bank undertakes income-generating projects for landless persons, invests its funds in Government Securities and provides professional counseling to landless persons regarding investments in small business and cottage industries. Grameen Bank now operates 40 Zonal Offices, 268 Area Offices and 2,565 Branch Offices. The Bank offers five types of loans such as basic loans, housing loans, higher education loans, young entrepreneur loans and struggling members’ loans. Loans & advances and Deposits as at December 31, 2010 were Tk. 68,417,977,923 and 105,023,000,642 respectively. As on December 31, 2010, out of 2,565 branches, 1,838 registered profits, 722 branches were not profitable, and the remaining 5 branches were not in operation. However, it should be taken into consideration that during the year the Bank opened 4 new branches.

2.00 RISK MANAGEMENT

In the ordinary course of business, the Bank is exposed to a variety of risks the most important of which are credit risk, operational risk, and solvency risk. These risks are being identified, measured and monitored through various control mechanisms across the Bank in order to assess the quality of products offered.

2.01 Credit Risk

Credit risk arises mainly from micro-credit loan provided to the members of Grameen Bank. This can be described as potential loss arising from the failure of a counter party to perform as contractual agreement with the Bank. The failure may result unwillingness of a counter party or decline in his/her financial condition in adverse environment. Therefore, the Bank’s credit risk management activities have been designed to address all these issues.

The officers/executive involved in credit related activities including credit approval, administration, monitoring and recovery facilities are approved by the different level of the management. An effective assessment is done before sanction of credit facilities to the members is done by borrower financial condition, historical performance etc. The process starts at the branch manager and approved by the competent authority. Credit approval authority has been delegated to individual executives by the approval of the Board of Directors.

Internal audit is conducted in yearical intervals to ensure compliance with the policies of the Bank and regulatory. Loans are classified as per Grameen Bank Loan Policy Guidelines.

2.02 Liquidity Risk

The objective of liquidity risk management is to ensure that all foreseeable funding commitments and deposit withdrawals can be met when due. To this end, the Bank is maintaining a diversified and stable funding base. The liquidity management is monitored by the Fund unit on a regular basis.

2.03 Operational Risk

Operational risk may arise from error and fraud due to lack of internal control and compliance. Management through different department controls operational procedures of the Bank. Audit department undertake yearical and special audit of branches

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and departments of the Head Office for review of the operation and compliance of the statutory requirements. The Managing Director subsequently reviews the report of the audit department and report to the Board of Directors.

2.04 Internal audit

Internal audit is a part of the internal control system, which is introduced in large business entities to detect any error or fraud at an early stage. At present, the Internal Audit Division of Grameen Bank is characterized by two-tier structure namely central audit and zonal audit. Central audit conducts the audit of different divisions at the head office, zonal offices and their area offices. Moreover, Central audit office supervises, advises, directs and provides necessary guidance to zonal audit offices. The zonal audit office audits all branches within the zone. Central and zonal audit offices execute complete audits and briefs audits to monitor operations and review compliance of statutory requirements. The Internal Audit Division works under the direct supervision of the Managing Director; however, it is completely independent in its work.

3.00 SIGNIFICANT ACCOUNTING POLICIES

3.01 Basis of preparation and presentation of Financial Statements

The accompanying Financial Statements comprising the Balance Sheet, Profit and Loss Account, Cash Flow Statement, Statement of Changes in Equity and Notes thereto have been prepared in accordance with Bangladesh Financial Reporting Standards (BFRS) on a going concern basis under the historical cost convention.

3.02 Basis of consolidation

A separate set of records for consolidation of the statement of affairs and income & expenditure account of the branches are maintained at the head office of the Bank based on which these Financial Statements have been prepared.

3.03 Tax exemption

Grameen Bank is presently enjoying unconditional exemption of income tax and it will continue up to 31 December 2010. This is contained in the Ministry of Finance notification vide SRO# 315/Law/2008 dated 20 November 2008. Previously Grameen Bank enjoyed income tax exemption from 1997 to 2005 subject to the condition that the Bank will transfer its entire profits to Rehabilitation Fund.

3.04 Rehabilitation fund

Rehabilitation fund consists of transfer from general reserve and tax provision made for 1997 and 1998 and transfer of entire revenue profit from 1999 to 2005 in order to comply with the requirement for tax exemption allowed by the Ministry of Finance. The Rehabilitation Fund is to be utilized for the purpose of rehabilitation of members affected due to natural disasters.

3.05Netprofit

During the year 2010, Grameen Bank has earned net profit amounting to Tk. 757.24 million while profit for the year 2009 was Tk. 371.57 million.

3.06 ProfitAppropriation

During 2010, Bank has made a net profit of Tk. 757,241,322 as per Profit and Loss Account. The Bank has decided to allocate its profit in the following manner:

Particulars Amount (Tk.) Proposed Dividend 164,306,760 Dividend Equalization Fund 250,000,000 General Reserve 260,000,000 Employees Welfare Fund 14,934,562 Retained Surplus 68,000,000 Total: 757,241,322

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3.07 Foreign fund

Foreign funds were received from the foreign donor agencies (IFAD 161 BA, IFAD 239 BA, NORAD, SIDA, Dutch Grant and JBIC) under the subsidiary loan agreement with the Government of the Peoples Republic of Bangladesh. The terms for repayments, interest rates, grace years etc. have been set out in those agreements. The funds were disbursed to Grameen Bank in equivalent Taka currencies and were accounted for at cost as and when those funds were received. Consequently, no accounting treatment is required in respect of exchange differences on foreign currencies and Grameen Bank need not to account for exchange rate gain/loss on such differences as well.

3.08 Accruals&deferrals

Deferrals and accruals have been made as per the guidance of the Bangladesh Accounting Standard (BAS) 1: Presentation of Financial Statements. In order to meet their objectives, Financial Statements except for cash flow statement and related information are prepared on accrual basis of accounting. Under the basis, the effects of transactions and other events are recognized when they occur (and not when cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the Financial Statements of the years to which they relate.

3.09 Reconciliation of inter branch transactions

Books of account with regard to inter branch are reconciled. Unreconciled entries are caused by mismatching of original figures with corresponding ones, lack of original advice and incomplete advice from branches.

3.10 Cash Flow Statement

Bangladesh Accounting Standard (BAS) 1: Presentation of Financial Statements requires that a cash flow statement is to be prepared as it provides information about cash flows of the enterprise that is useful in providing users of Financial Statements with a basis to asses the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows.

Cash flow statement has been prepared under the direct method for the year, classified by operating, investing and financing activities as prescribed in paragraph 10 and 18(a) of BAS 7.

3.11 Liquidity Statement

The liquidity statement of assets and liabilities as on reporting date has been prepared on residual maturity term as per following bases:

a. Balance with other Banks and financial institutions, money at call notice of short notice, etc are on their maturity term;b. Investments are on the basis of their respective maturity;c. Loans and advances/investments are on the basis of their repayment schedule;d. Fixed assets are on the base of their useful lives;e. Other assets are on the basis of their realization/amortization;f. Borrowing from other Banks, financial institutions, agents, etc. are as per as their maturity/repayment terms;g. Provisions and other liabilities are on the basis of their payment/adjustment schedule;h. Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the depositors.

3.12 Provision for loan impairment

Specific provisions are made against non-performing and problem loans on the basis of best estimate up to such amount as it is expected to cover for the loss from non-performing and impaired loans and advances. No specific credit risk provision for loan impairment is established to provide for management’s estimate of loan losses as soon as the recovery of an exposure is identified as doubtful.

The Bank writes off its non-performing and problem loans after one year on overdue loan. Subsequent recoveries of such loans are credited to the Profit and Loss Account.

Provisions for loans & advances are made on the basis of year-end review by the management and instructions contained in board resolution. The calculation rate is given below:

a) Basic loans

Basic loan provision has been made @ 100% on overdue loan;

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60 GRAmeen BAnk

Basic loan provision has been made @ 1% on regular loan.

b) Flexible loans Provision has been made on flexible loans at the following rates: Principal outstanding from the signing of first contract year below 2 years @ 50%; Principal outstanding for 2 years and beyond from the signing of first contract year@100%; Overdue flexible loans @100%.

c) Housing loans (Members) Housing loan provision has been made @ 100% on overdue loan; Housing loan provision has been made @ 1% on regular loan.

d) Educational loan No provision has been made on education loan.

e) Young entrepreneur loan Young entrepreneur loan provision has been made @ 100% on overdue loan; Young entrepreneur loan has been made @ 1% on regular loan.

3.13 Overdue Policies

If a borrower misses ten consecutive installments, the entire outstanding loan is treated as an overdue loan; In case of young entrepreneur loan the installment schedule may be weekly, fortnightly and monthly. For the case of fortnightly and monthly installment schedule; if a borrower misses five & three consecutive installments respectively, the entire outstanding loan is treated as an overdue loan;

In case of one year, if a borrower fails to pay half of the loan amount, with interest, within 26 weeks, entire un-repaid amount is overdue;

In case of loans with longer duration, if the borrower fails to repay the total principle amount and interest scheduled to be repaid within each segment of 26 weeks, entire un-repaid amount is overdue.

3.14 Provision for interest receivable

a) Interest receivable on basic loans: Interest receivable on basic loan provision has been made @ 100% on overdue interest of basic loans; Interest receivable on basic loan provision has been made @ 1% on regular interest of basic loans.

b) Interest receivable on flexible loans: Provision has been made on interest receivable on flexible loans at the following rates: Interest receivable outstanding from the signing of first contract year below 2 years 50%; Interest receivable outstanding for 2 years and beyond from the signing of first contract year 100%; Interest receivable outstanding of overdue loan 100%.

c) Interest receivable on Housing loans (Members) Provision has been made on interest receivable on housing loans (Members) at the following rates: Interest receivable on housing loan provision has been made @ 100% on overdue interest receivable; Interest receivable on housing loan provision has been made @ 1% on regular interest receivable.

d) Interest receivable on young entrepreneur loans: Interest receivable on young entrepreneur loan provision has been made @ 100% on overdue interest of young entrepreneur

loans; Interest receivable on young entrepreneur loan provision has been made @ 1% on regular interest of young entrepreneur

loans.

3.14 Bad debt recovery

Hundred percent of Bad debt recovery has been shown in other income under the head of “Recovery of Contractible Taka-2”.

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3.15 Fixed assets:

Recognition and measurement The major categories of property and equipment held by the Bank are property land, buildings & other structures, equipment,

furniture and fixtures, vehicles, capital work in progress etc.

As per BAS 16 Property Plant and Equipment, all property and equipment except land are stated at historical cost less accumulated depreciation. No depreciation has been charged on land and the carrying amounts are the same as those were initially recognized. The cost of acquisition of an asset comprises its purchase price and any direct cost attributable to bringing the assets to its working condition for its intended use.

Subsequent costs

The cost of replacing part of an item of property and equipments is recognised in the carrying amount of an item if it is probable that the future economic benefits embodied within the part will flow to the company and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the profit and loss account as incurred.

Disposal of asset

Gains and losses on disposal or retirement of assets are credited or charged to the results of operation.

Capital work-in-progress

Building & other structure under construction/acquisition have been accounted for as capital work-in-progress until construction/acquisition is completed and measured at cost.

3.16 Depreciation

As required by BAS 16 Property, plant & equipment, depreciation has been charged on property and equipment at the following rates using straight-line method.

Property & Equipment Depreciation Rate Building and other structures 1.7% Office House (Semi-Paka and Tin shed) 7.5% Development of leasehold property 10% Vehicles 20% Computer equipment 30% Office equipment 15% Electrical equipment 10% Furniture & fixtures 10% Library books 10% Mobile handset 33.33%

Depreciation at the applicable rates is charged proportionately on additions made during the year from the date of their acquisition on straight-line method. Disposal of assets during the year, depreciation charged is required on actual date.

3.17 Investment Property (Building and other structure):

As per BAS 40 Investment Property is recognized for let out portion of Head office building and old administrative building held to earn income from rental. Investment Property is measured at cost less accumulated depreciation. The cost of Investment Property is measured proportionately based on per square fit cost of each building.

Subsequent cost related to let out portion is recognized as addition of Investment property.

Subsequent change in use of that property is account for as per BAS 40. Depreciation has been charged on Investment Property (Building) @ 1.7% same as own occupied property.

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62 GRAmeen BAnk

3.18 Investments

Value of investment is presented below:

Nature of Investments Applicable Accounting FDR Face Value Shares in CDBL At cost Grameen Mutual Fund At cost

3.19 Revenue recognition

As per BAS 18, Revenue is recognized when it was probable that the economic benefits associated with the transaction will flow to the Bank and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognized on an accrual basis which complies with the conditions of revenue recognition as provided in BAS 18 Revenue.

a) Interest on loans and advances (including bad and doubtful loans and advances) is accounted for on an accrual basis.b) Income on investments is accounted for consistently on an accrual basis. Dividend received in form of Bonus share is

not recognized as revenue at the time of receiving. c) Service charge on guarantees issued by the Bank in favor of other institutions is accounted for on cash receipt basis.

3.20 Interest paid and other expenses

In terms of the provision of the BAS 1 Presentation of Financial Statements, the interest paid and other expenses are recognized on accrual basis.

3.21 Retirementbenefitstotheemployees

a) Grameen Bank Superannuation fund

The Bank operates a superannuation fund scheme, provision in respect of which is made annually @ 60% of annual basic salary. It is operated by a separate Board of Trustees consisting ten members.

b) Non-contributory provident fund

Provident fund benefits are given to the employees of the Bank in accordance with non-contributory provident fund rules. The fund is operated by a Board of Trustees. All confirmed employees of the Bank are contributing 10% of their basic salary as subscription of the fund. Interest earned from the investments is credited to the members account on accrual basis.

3.22 Comparative Information

As required by BAS 1 Presentation of Financial Statements comparative information in respect of the previous year have been presented in all numerical information in the Financial Statements and the narrative and descriptive information where it is relevant for understanding of the current year’s Financial Statements.

3.23 Dividend

Dividend payable to the Bank’s shareholders is recognized as liability and deducted from the shareholders’ equity in the year in which the shareholder’s right to receive payment is established. Finally dividend payable is recognized when it is approved by the Board of Directors.

3.24 Reporting year

These Financial Statements cover one calendar year from 01 January 2010 to 31 December 2010.

3.25 Events after the Reporting Period

Grameen Bank has decided to recommend payment of 30% (thirty percent) cash dividend for the year 2010. The Total amount of dividend is Tk. 164,306,760.

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3.26 General

i) Previous year’s figures have been rearranged, wherever considered necessary, for the purpose of comparison.

ii) Figures appearing in these accounts have been rounded off to the nearest Taka.

2010 2009 Taka Taka

4.00 BALANCES WITH OTHER BANKS AND FINANCIAL INSTITUTIONS

On short term deposit accounts 1,239,740,145 1,233,835,474 On current deposit accounts 68,377,020 55,381,529

1,308,117,165 1,289,217,003

5.00 INVESTMENTS AT COST

Fixed deposits with other banks (Note 5.01) 47,490,186,897 37,483,731,641 Grameen Mutual Fund-One (Note 5.02) 263,000,000 263,000,000 Share (Note 5.03) 4,000,000 4,000,000

47,757,186,897 37,750,731,641

5.01 FIXEDDEPOSITSWITHOTHERBANKS

Southeast Bank Limited 3,877,595,566 3,957,747,946 Prime Bank Limited 326,068,954 1,998,834,097 NCC Bank Limited 2,119,337,137 1,233,363,773 Mercantile Bank Limited 1,561,708,667 2,012,692,102 One Bank Limited 1,628,684,181 1,547,522,798 Dhaka Bank Limited 3,067,871,109 2,403,536,379 EXIM Bank Limited 4,412,834,936 2,893,314,904 First Security Bank Limited 1,678,395,978 1,183,463,311 Mutual Trust Bank Limited 633,635,104 1,947,534,881 Standard Bank Limited 2,840,311,406 2,018,753,652 Premier Bank Limited 1,387,065,856 1,669,430,467 Bank Asia Limited 2,854,295,574 1,571,210,084 Jamuna Bank Limited 3,459,698,074 1,305,146,767 United Commercial Bank Limited 3,696,105,375 2,945,716,565 Shahjalal Islami Bank Limited 3,596,944,335 2,086,260,283 The City Bank Limited - 567,500,000 BRAC Bank Limited 1,844,398,845 1,675,626,595 AB Bank Limited 3,688,167,420 1,644,591,637 IFIC Bank Limited 499,245,000 530,000,000 Trust Bank Limited 531,760,325 1,125,000,000 National Bank Limited 3,656,063,055 520,000,000 Bangladesh Krishi Bank - 280,000,000 Dutch Bangla Bank Limited 50,000,000 - Social Islami Bank Limited 80,000,000 90,000,000 Eastern Bank Limited - 276,485,400

47,490,186,897 37,483,731,641

5.02 Net investment of Grameen Bank as sole sponsor of Grameen Mutual Fund (GMF)-One (scheme 1 & 2) stands at Tk. 26.30 crore consists of Tk. 0.65 crore of Scheme 1 and Tk. 25.65 crore of Scheme 2. The Scheme 1 & 2 of the fund were listed in both the Stock Exchanges of Dhaka and Chittagong as on 04 September 2005 & 02 September 2008 respectively.

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5.03 400,000 (four lac) shares of Central Depository Bangladesh Limited (CDBL) of Tk.10 each. During the year the share of CDBL which was Tk. 1,000,000 each, splitted to Tk.10 each. 400,000 (four lac) and 800,000 (eight lac) total 1,200,000 (twelve lac) bonus shares have also been received during the year 2009 & 2010 respectively.

2010 2009 Taka Taka

5.04 Maturity grouping of investments

On demand - - Up to 1 month 15,921,856,350 5,218,104,463 Over 1 month but not more than 3 months 19,359,307,737 6,747,988,684 Over 3 months but not more than 1 year 12,209,022,810 25,517,638,494 Over 1 year but not more than 5 years 263,000,000 263,000,000 Over 5 years 4,000,000 4,000,000

47,757,186,897 37,750,731,641

6.00 LOANS AND ADVANCES - WITHOUT COLLATERAL

Loans Basic loans 60,573,997,809 51,067,753,215 Flexible loans 3,449,300,201 1,719,241,664 Housing loans (members) 125,047,966 197,573,742 Education loans 1,970,164,189 1,451,471,991 Social Venture Capital Fund (SVCF) loans (Note 11.08) - 27,892,120 Center house building loan 149,173,210 152,889,469 Loan freeze 446,082 667,727 Other loans 700,350 24,266,734 Interest free loans 41,517,926 61,565,387 Young entrepreneur loans 25,909,846 14,376,994 Social forestation loans 13,270,300 -

66,349,527,879 54,717,699,043 Advances Housing loans (staff) 381,778,828 313,511,556 Household commodities loans 516,939,838 481,508,841 Salary advances 275,812 31,979 Bicycle advances 8,793,401 10,550,287 Motor cycle advances 9,787,206 10,672,240 Calculator advances 243,216 344,429 Advances against PF 1,138,618,377 811,472,384 Medical loans 8,950,868 9,904,569 Staff welfare loans 3,061,418 3,195,867 Life jacket advance 1,080 137,800

2,068,450,044 1,641,329,952

68,417,977,923 56,359,028,995

6.01 Maturity grouping of loans and advances

Repayable on demand - - Up to 1 month 4,102,587,535 3,381,541,740 Over 1 month but not more than 3 months 8,205,175,070 7,326,673,769 Over 3 months but not more than 1 year 38,316,558,909 31,561,056,237 Over 1 year but not more than 5 years 16,425,296,873 13,526,166,959 Over 5 years 1,368,359,536 563,590,290

68,417,977,923 56,359,028,995

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7.00 FIXED ASSETS (AT COST LESS ACCUMULATED DEPRECIATION) (Annexure-A)

Land 248,347,836 144,728,792 Building and other structures 851,089,954 784,503,837 Vehicles 32,758,092 48,903,344 Office equipment 22,075,951 25,004,513 Electrical equipment 22,231,507 23,086,618 Furniture and fixtures 115,812,403 125,988,537 Capital work in progress 83,406,583 63,533,584 Computer equipment 3,934,092 6,534,213

1,379,656,418 1,222,283,438 8.00 INVESTMENT PROPERTY (AT COST LESS ACCUMULATED DEPRECIATION) (Annexure-B)

Building and other structures:

Administrative Building 11,112,104 10,026,406 Head Office Building 97,427,910 101,531,809

108,540,014 111,558,215

9.00 OTHER ASSETS

Interest receivable (Note 9.01) 5,761,358,771 5,770,640,481 Advance income tax for employees 560 2,560 Printing stationery 22,213,979 21,530,420 Office stationery 239,119 395,377 Zone/Area control account 115,303 314,420 Advance income tax (Note 9.02) 202,109,108 201,838,038 Inter-branch adjustments - 22,676,386 Security deposits 584,952 557,282 Prepaid expenses 11,168,923 4,224,951 Advance against traveling 18,442 29,542 Advance against purchases 848,703 553,152 Advance against house rent 2,287,760 2,998,370 Stock & stores (general) 2,316,732 2,514,544 Suspense account 143,478,116 218,514,184 Advances to contractors 1,727,436 3,965,721 Advance for disaster 251,668 511,795 Workshop 32,641 36,161 Rent receivables 10,139,346 13,921,539 Receivable due 263,117,520 -

6,422,009,079 6,265,224,923

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9.01 Interest receivable

From investments Fixed deposits with other banks 1,125,704,275 1,677,166,916 From Lending Basic loans 2,703,241,457 2,807,075,597 Flexible loans 1,604,372,064 975,262,062 Housing loans (Members) 25,136,874 42,078,713 Education loans 18,241,894 8,626,804 Other loans 879,723 19,561,505 Interest freeze 18,257 36,011 Interest before loan freeze 12,330,219 15,087,549 Young entrepreneur loan 1,035,879 235,618 Social forestation loans 148,576 -

4,365,404,943 3,867,963,859

From Staff Staff loan and advances 82,058,025 68,092,487 Advances against PF 96,932,580 80,431,828 Medical loans 1,717,801 1,549,031 Household commodities loans 89,541,147 75,436,360

270,249,553 225,509,706

5,761,358,771 5,770,640,481

9.02 Advanceincometax

Advance income tax represents tax deducted at source by Scheduled Banks and others from the income of Grameen Bank. Grameen Bank is a non- taxable entity as per Grameen Bank Ordinance 1983 but due to late receipts of the exemption orders from Government, Grameen Bank had faced such deduction. The tax deducted as such, at source remains to be refundable.

9.03 Maturity grouping of other assets

On demand - - Up to 1 month 128,439,436 125,307,007 Over 1 month but not more than 3 months 770,639,430 751,826,684 Over 3 months but not more than 1 year 1,733,956,066 1,628,957,814 Over 1 year but not more than 5 years 2,825,675,634 2,756,697,840 Over 5 years 963,298,513 1,002,435,578

6,422,009,079 6,265,224,923

10.00 BORROWINGS FROM BANKS AND OTHER INSTITUTIONS

2% IFAD 239 BA (Note 10.01) 231,644,811 239,917,839 NORAD (Note 10.02) 267,918,176 267,918,176 SIDA (Note 10.03) 238,848,625 238,848,625 Ford Foundation (Note 10.04) - 18,075,066 Dutch Grant Loan (Note 10.05) 44,283,298 44,283,298 Japan Bank of International Co-operation (JBIC) (Note 10.06) 806,332,692 860,117,596

1,589,027,602 1,669,160,600

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10.01 2%IFAD239BA

A subsidiary loan agreement for an amount in taka equivalent of SDR 6,200,000 was made with Government of the People’s Republic of Bangladesh on 8 January 1990. The loan received in 1990 and 1992 is repayable on 15 March and 15 September each year in 80 semi-annual installments commencing on 15 March 1999 and ending on 15 September 2039.

10.02 NorwegianAgencyforInternationalDevelopment(NORAD)

A subsidiary loan agreement for an amount in Taka equivalent of Norwegian Kroner 55,000,000 was made with Government of the Peoples Republic of Bangladesh on 4th August 1986. The principal loan received in 1986 is repayable with interest rate 2% per annum in March and September each year in 40 equal semi-annual installments during a period of 30 years including a grace period of 10 years where the first installment was commenced in March 1997. Up to 31 December 2010, an amount of Tk 171,338,661 was repaid into 28 installments in due time and Grameen Bank received the same as revolving loan as per bilateral agreement with the Government.

10.03 SwedishInternationalDevelopmentAuthority(SIDA)

A subsidiary loan agreement for an amount in Taka equivalent of SEK 60,000,000 was made with Government of the Peoples Republic of Bangladesh on 30th November 1986. The principal loan received in 1986 is repayable with interest rate 2% per annum in March and September each year in 40 equal semi-annual installments during a period of 30 years including a grace period of 10 years where the first installment was commenced in March 1997. Upto 31 December 2010, an amount of Tk 159,018,004 was repaid into 28 installments in due time and Grameen Bank received the same as revolving loan as per bilateral agreement with the Government.

10.04 Ford Foundation

Taka 18,075,066 of recoverable grant of Ford Foundation has been adjusted as detailed in Note 11.08. 10.05 Dutch Grant Loan

The loan of DFL 2,000,000 equivalent of Tk. 44,283,298 received in 1986 under a subsidiary loan agreement with Bangladesh Bank is repayable on 15 December each year in 15 annual installments within 16 years from the date of receiving the loan including a grace period of one year. As per section 11 of the loan agreement the amount of installments of the principal loans amount repaid by Grameen Bank is allowed to be used in perpetuity for financing its housing loan scheme on the same terms and condition as stated above.

10.06 Japan Bank for International Co-operation (JBIC)

A subsidiary loan agreement for an amount of taka equivalent of Yen 2,986,000,000 was executed with the Government of the Peoples Republic of Bangladesh on 7 March 1996. The loan is repayable on 15 March and 15 September each year with the interest rate of 2% per annum in semi annual installments in 30 years including a grace period of 10 years in accordance with amortization schedule, first installments being due on 15 September 2005. Upto 31 December 2010, an amount of Tk. 295,816,969 was repaid by 11 installments in due time. Tk. 393,133,462, Tk. 419,216,041 and Tk. 289,800,159 were received in 1996, 1997 and 1998 respectively.

2010 2009 Taka Taka

10.07 Maturity grouping of borrowings from banks and other institutions

Repayable on demand - - Up to 1 month - - Over 1 month but not more than 3 months 31,028,966 31,028,966 Over 3 months but not more than 1 year 62,057,932 62,057,932 Over 1 year but not more than 5 years 310,289,660 310,289,660 Over 5 years 1,185,651,044 1,265,784,042

1,589,027,602 1,669,160,600

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11.00 DEPOSITS AND OTHER FUNDS Members deposits Current deposits 16,262,349 20,356,021 Fixed deposit (Note 11.01) 97,832,260 46,964,585 Savings deposit 7,955,978,438 6,406,462,145 Grameen pension scheme-10 years (Note 11.02) 37,633,073,909 29,904,266,638 Double in 7 years deposit (Note 11.03) 3,684,205,797 2,665,507,202 Monthly profit scheme (Note 11.04) 173,961,100 132,572,000 Polly phone deposit 339,697 274,596 Centre welfare fund 645,407,383 596,245,233 Central emergency fund 98,816,703 100,829,920 Loan insurance savings fund 6,287,261,037 5,140,896,091 Grameen pension scheme-5 years 8,355,336 874,733 Young entrepreneur loan insurance savings fund 1,230,354 421,470 Higher education loan insurance savings fund 41,276,639 12,874,639

56,644,001,002 45,028,545,273 Non-Members deposits Current deposit 29,563,952 23,825,395 Short term deposit 23,915 26,647 Fixed deposit 674,114,441 650,045,205 Savings deposit 22,773,344,288 16,637,010,663 Grameen pension scheme-10 years (for staff) 759,230,049 678,122,870 Double in 7 years deposit 20,504,197,103 17,073,927,191 Monthly profit scheme 3,543,320,000 3,161,886,000 Technology project deposit 9,225 55,281 Forestation fund 12,184,440 10,994,205 Grameen pension scheme-5 years (for staff) 530,482 358,058 Employees loan insurance savings fund 82,481,745 65,937,823

48,378,999,640 38,302,189,338 Other Funds Employees welfare fund 146,224,472 122,432,500 Struggling members welfare fund 44,900,773 41,277,918 Award funds 110,506,338 102,603,059 Maintenance reserve 54,651,076 50,981,420 Cafeteria 2,029,534 1,959,945 Leasing insurance fund 5,612,440 5,612,440 Contingency fund (Note 11.05) 349,472,859 292,044,659 Byabosa Bikash risk coverage fund 4,423,841 175,520,490 Risk fund-Grameen Byabosa Bikash 22,082,131 7,842,996 Risk fund and portion of Grameen Byabosa Bikash - 27,306 House building revolving fund 1,282,631 441,835 Young entrepreneur loan risk fund 281,049 43,921 Higher education loan insurance fund 3,307,574 180,102 Vehicle insurance fund 501,608 - Employees loan insurance fund 23,720,160 18,951,448 Loan insurance fund 1,231,564,711 964,918,765 Animal insurance fund 101,762,399 56,835,850 Grameen Bank disaster relief fund 2,168,884 2,168,884 Members welfare fund 2,507,782 2,319,749 Polly phone risk coverage fund 10,240,976 27,225,683 Revolving fund-special programme 7,974,276 7,974,276 Revolving fund-SIDE (Note 11.08) 16,276,895 17,830,082 Revolving fund (Note 11.06) - 29,884,496 Rehabilitation fund (Note 11.07) 2,041,475,353 2,026,678,274 SVCF-Current Account (Note 11.08) 759,306 - 4,183,727,068 3,955,756,098 109,206,727,710 87,286,490,709

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11.01 Fixed Deposit

Grameen Bank started “fixed deposit scheme” vide its circular no. 02/2000 dated 16 May 2000 which is for minimum of 1 year and maximum of 3 years. Interest rates of fixed deposits are 8.75%, 9.25% and 9.50% for 1 year, 2 years and 3 years respectively. Depositors can get interest after matured date of fixed deposit.

11.02 Grameen pension scheme

Grameen Bank Started “ Grameen pension scheme” of 5 years and 10 years vide its circular no. 2-06/2000 dated 30 August 2000 for the financial assurance of their members and employees. Under this scheme Grameen Bank motivates their members and employees to small savings by opening “GPS Account” in the respective branches which rate of interest is 10% for 5 years and 12% for 10 years. Both are payable yearly basis.

11.03 Double in 7 years deposit

Grameen Bank started “Double in 7 years deposit” scheme vide its circular no. 2-07/2000 dated 30 August 2000 for making financial strengths of rural civil society by increasing saving mentality. Any person can open his/her account by depositing minimum of Tk. 1,000 (One thousand) or its general multiplying amount for 7 years. After 7 years account holder for carrying his/her account fulfilling the all criteria will get double amount (consolidated principal and interest) of his/her investment.

11.04 Monthlyprofitscheme

In 2001, Grameen Bank has introduced a term deposit product named ‘Monthly Profit Scheme’ with tenure of 5 and 10 years vide its circular no. 2-07/2001 dated 05 March 2001. This deposit scheme is open for both Members & Non-Members with a minimum deposit amount of Tk. 20,000. For each amount of Tk. 10,000 Grameen Bank pays Tk. 80 and Tk. 85 per month for 5 and 10 years scheme respectively.

11.05 Contingency fund

Grameen Bank has created “ Contingency Fund” to cover the loss (if any) arises from forgery, theft, lost, assault, robbery etc.

2010 2009 Taka Taka

11.06 Revolving fund

Revolving fund from GTZ - 14,621,090 Revolving fund from KFW - 6,729,042 Revolving fund for SVCF - 3,708,745 Revolving fund for housing rehabilitation - 4,825,619

- 29,884,496

Revolving fund from GTZ & KFW and revolving fund for housing rehabilitation had been shown in capital reserve as these funds are no more refunduble. Taka 3,708,745 of Revolving fund for SVCF had been adjusted to SVCF- Current Account as detailed in Note 11.08.

11.07 Rehabilitation fund Opening Balance 2,026,678,274 1,983,937,652 Payment during the year (1,042,321) (21,223,788) Reimbursement during the year 15,839,400 63,964,410

2,041,475,353 2,026,678,274 11.08 SVCF-Current Account of Taka 759,306 is the result of adjustment of “Social Venture Capital Fund (SVCF) Loans” (Note:

6.00), “Revolving fund- SIDE” (Note: 11.00), “Ford Foundation” (Note: 10.00) and “Revolving fund for SVCF (Note: 11.06) amounting to Taka 22,579,360 (debit), 1,554,856 (credit), 18,075,065 (credit) and 3,708,745 (credit) respectively. All these accounts related to the same funding- SVCF.

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11.09 Maturity grouping of deposits and other funds Repayable on demand - - Up to 1 month 4,412,285,316 3,533,899,369 Over 1 month but not more than 3 months 16,374,131,624 13,086,342,397 Over 3 months but not more than 1 year 45,847,568,547 36,641,758,711 Over 1 year but not more than 5 years 29,473,436,924 23,555,416,314 Over 5 years 13,099,305,299 10,469,073,918

109,206,727,710 87,286,490,709

12.00 OTHER LIABILITIES

Interest payable on borrowings 9,345,749 9,529,372 Interest sundry 6,941,258 5,988,507 Bill or other payable 253,629,589 135,323,650 PF trustee board-current account 3,332,329 11,741,365 Contributory provident fund 230,191 65,963 Accounts for other institutions (Note 12.01) 6,918,128 7,039,065 GB superannuation fund-current account 1,002,218,032 931,989,441 Inter-branch adjustments (Note 12.02) 27,916,026 - Retention money 4,991,436 5,043,314 Earnest money 2,662,160 3,779,902 Claimable deposits 102,270,344 87,370,294 Unpaid salary 624,859 723,009 VAT deducted at source 161,331 219,757 Sundry receipts 973,819 626,182 Farewell grant provision for daily basis staff 207,036,083 139,939,633 Miscellaneous 187,878,480 254,189,375 Advance house rent 2,240,897 2,137,897 Struggling members programme 19,923,920 18,513,430 Provision reserve for doubtful rents 130,305 130,305 Provision reserves (Note 12.03) 5,398,797,661 5,691,773,517

7,238,222,597 7,306,123,978

12.01 Accountsforotherinstitutions

Grameen Telecom 1,000 1,000 Grameen Fisheries & Livestock Foundation 5,010,419 4,639,277 Grameen Communications 1,926 1,926 Grameen Shikkha 1,169,305 1,661,384 Grameen Kalyan 730,478 730,478 Grameen Krishi Foundation 4,000 4,000 Grameen Samogree 1,000 1,000

6,918,128 7,039,065

12.02 Inter-branch adjustments

Inter-branch adjustment account balance Tk. 27,916,026 represents outstanding in branch and head Office transactions (net) originated but not responded at the balance sheet date. However, unadjusted items are being subsequently adjusted.

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12.03 Provision reserves

Total specific provision against loans & advances and interest receivable (12.03.01) 3,408,977,659 3,645,538,813 Total general provision against loans & advances and interest receivable (12.03.02) 1,989,820,002 2,046,234,704 5,398,797,661 5,691,773,517

12.03.01 Totalspecificprovisionagainstloans&advancesandinterestreceivable Specific provision against loans & advances (a) 2,357,967,391 2,521,553,077 Specific provision against interest receivable (b) 1,051,010,268 1,123,985,736

3,408,977,659 3,645,538,813

a) Specific provision against loans & advances Basic and Flexible loans 2,291,019,988 2,446,983,837 Housing loans 13,500,218 23,142,099 Freeze loans-Sidr (Patuakhali & Pirojpur) 53,411,855 51,427,141 Young entrepreneur loans 35,330 -

2,357,967,391 2,521,553,077

b) Specific provision against interest receivable Basic and Flexible loans 1,043,206,022 1,105,426,695 Housing loans 7,801,687 18,559,041 Young entrepreneur interests 2,559 -

1,051,010,268 1,123,985,736

12.03.02 Totalgeneralprovisionagainstloans&advancesandinterestreceivable

Regular Basic loans 624,352,707 518,803,238 Regular Housing loans 1,454,366 163,638,290 Regular young entrepreneur loan 298,718 86,916 Regular young entrepreneur Interest 9,295 1,344 Reserve for bad debt recovery 1,363,704,916 1,363,704,916

1,989,820,002 2,046,234,704 12.04 Maturity grouping of other liabilities

Repayable on demand - - Up to 1 month 940,968,938 935,630,592 Over 1 month but not more than 3 months 24,361,465 14,165,525 Over 3 months but not more than 1 year 1,954,320,101 1,972,653,474 Over 1 year but not more than 5 years 4,318,572,093 4,383,674,387 Over 5 years - -

7,238,222,597 7,306,123,978 13.00 SHARE CAPITAL 13.01 Authorized

35,000,000 ordinary shares of Tk. 100 each 3,500,000,000 3,500,000,000

As per Grameen Bank Ordinance 1983, Government has increased its authorized capital from Tk. 500 million to Tk. 3,500 million vide Ministry of Finance memo no. 219 dated 31.12.2008.

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13.02 Paid up Capital

5,476,892 ordinary shares of Tk. 100 each issued for cash 547,689,200 523,949,300

Shareholders for year ended December 2010 % No. of Shares Nominal Value of shares

Government of Bangladesh 2.19% 120,000 12,000,000 12,000,000 Sonali Bank 0.55% 30,000 3,000,000 3,000,000 Bangladesh Krishi Bank 0.55% 30,000 3,000,000 3,000,000

18,000,000 18,000,000 Borrowers : Male 3.23% 176,934 17,693,400 17,541,400 Female 93.48% 5,119,958 511,995,800 488,407,900

Total 100% 5,476,892 547,689,200 523,949,300

13.03 CapitalAdequacyRatio

Tire-I (Core capital) Paid up capital 547,689,200 523,949,300 Capital & other reserves 6,585,290,863 6,057,533,668 Retained surplus 230,000,000 162,000,000

7,362,980,063 6,743,482,968 Tire-II (Supplementary capital) General provision 1,989,820,002 2,046,234,704

Total capital (A) 9,352,800,065 8,789,717,672

Total assets 125,396,957,972 103,005,258,255 Total Risk Weighted Assets (RWA) (B) 100,601,900,316 82,557,883,966 Required capital based on Risk Weighted Assets (10% of RWA) - (C) 10,060,190,032 8,255,788,397 Core capital (Tire-I) 7,362,980,063 6,743,482,968 Supplementary capital (Tire-II) 1,989,820,002 2,046,234,704 Total 9,352,800,065 8,789,717,672 Surplus/(Shortage)-(A-C) (707,389,967) 533,929,275

Capital to Risk-Weighted Assets (A/B) 9.30% 10.65% 14.00 CAPITAL AND OTHER RESERVES

Capital reserves (Note 14.01) 4,306,583,281 4,280,409,577 General reserve 1,404,000,000 1,144,000,000 Proposed dividend 164,306,760 157,184,790 Dividend equalization fund 594,627,521 360,166,000 Other reserves (Note 14.02) 115,773,301 115,773,301 6,585,290,863 6,057,533,668

14.01 Capital reserves

Revolving fund (Note 14.01.01) 3,732,311,704 3,732,311,704 Grants 554,171,577 527,997,873 MED revolving fund 20,100,000 20,100,000

4,306,583,281 4,280,409,577

Capital reserve includes outstanding balances of revolving funds and grant as at 31 December 2010 which are no longer refundable.

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14.01.01 Revolving fund

Revolving fund for G & C 1,544,811,573 1,544,811,573 Revolving fund for house loan 2,065,346,276 2,065,346,276 Revolving fund for staff house loan 122,153,855 122,153,855

3,732,311,704 3,732,311,70414.02 Other reserves Special reserve 992,043 992,043 Training reserve fund 3,017,748 3,017,748 Training revolving fund 10,387,868 10,387,868 Publication fund 2,807,045 2,807,045 Assets replacement reserve 49,697,943 49,697,943 SIDE programme-sundry deposit 19,020,037 19,020,037 SIDE fund revolving account 3,238,095 3,238,095 Special programme-GTZ 26,612,522 26,612,522 115,773,301 115,773,301

15.00 RETAINED SURPLUS Balance on 1 January 162,000,000 109,000,000 Net profit 757,241,322 371,572,904 Dividend equalization fund (250,000,000) (50,000,000) Proposed dividend (164,306,760) (157,184,790) General reserve (260,000,000) (100,000,000) Employee’ welfare fund (14,934,562) (11,388,114) Balance at 31 December 230,000,000 162,000,000

Tax deductible at source on dividend paid to shareholders were paid, in line with the decision of the board, to keep the full dividend at the hand of the recipient.

16.00 INTEREST INCOME

Loans and advances (Note 16.01) 12,419,697,420 9,781,137,128 Deposits 16,132,625 15,950,921 12,435,830,045 9,797,088,049

16.01 Interest on loans and advances

Members loan

Basic loans 11,222,065,789 9,296,661,907 Flexible loans 574,898,194 304,523,144 Housing loans 13,506,259 22,157,580 Education loans 381,148,853 5,031,638 Young entrepreneur loan 5,030,173 504,499 Social forestation loan 993,600 - Other loans 16,602 -

12,197,659,470 9,628,878,768 Employees Advances Staff loans & advances 29,320,542 21,861,075 Advance against PF 95,368,486 71,869,178 Household commodities loans 95,685,148 57,531,793 Medical loans 1,663,774 996,314

222,037,950 152,258,360

12,419,697,420 9,781,137,128

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17.00 INTEREST/PROFIT PAID ON DEPOSITS AND BORROWINGS ETC. Interest on deposits (Note 17.01) 9,195,154,701 7,031,658,302 Interest on borrowings (Note 17.02) 32,618,249 36,381,346

9,227,772,950 7,068,039,648

17.01 Interest on deposits

Members deposit (Note 17.01.01) 5,314,867,413 4,069,552,595 Non-Members deposit (Note 17.01.02) 3,772,663,138 2,896,438,924 Others (Note 17.01.03) 107,624,150 65,666,783

9,195,154,701 7,031,658,302

17.01.01 Members deposit

Fixed deposit 5,499,684 3,799,295 Savings deposit 527,496,784 435,723,970 Central emergency fund 10,820,404 11,809,121 Centre welfare fund 49,710,835 45,636,106 Polly phone deposit 44,374 69,013 Grameen pension scheme-10 years 3,611,591,917 2,716,564,749 Double in 7 years deposit 313,240,977 213,952,576 Monthly profit scheme 18,316,056 15,048,315 Loan insurance savings fund 684,932,475 561,627,252 Loan insurance fund 89,691,273 64,987,191 Grameen pension scheme-5 years 145,278 148,043 Young entrepreneur loan insurance savings 109,884 3,709 Higher education loan insurance savings fund 3,261,233 183,255 Higher education loan insurance fund 6,239 -

5,314,867,413 4,069,552,595

17.01.02 Non-Members deposit

Fixed deposit 58,611,775 54,519,891 Savings deposit 1,407,631,218 1,037,536,980 Technology project deposit - 204 Grameen pension scheme-10 years (for staff) 78,091,910 64,340,827 Double in 7 years deposit 1,884,609,301 1,449,840,692 Monthly profit scheme 333,822,034 282,419,483 Grameen pension scheme-5 years (for staff) 25,023 24,367 Employees loan insurance savings fund 9,224,121 7,322,156 Forestation and other funds 627,885 434,324 Vehicle insurance fund 19,871 -

3,772,663,138 2,896,438,924

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2010 2009 Taka Taka

17.01.03 Others

Contingency fund 24,824,321 20,774,193 Struggling member welfare fund 3,495,441 3,279,871 Employees’ welfare fund 10,346,996 8,726,477 PF trustee board-current account 2,962,307 309,923 GB superannuation fund-current account 56,695,017 23,923,827 Award funds 8,704,258 8,085,236 Accounts of other organizations 435,392 374,951 Cafeteria 146,282 151,299 Contributory provident fund 14,136 41,006

107,624,150 65,666,78317.02 Interest on borrowings

2% IFAD 239 BA 4,732,173 4,873,154 NORAD 5,358,364 5,357,326 SIDA 4,776,972 4,775,579 JBIC 16,772,073 17,924,693 Interest on short term loans 535,834 3,007,761 Dutch grant loan 442,833 442,833

32,618,249 36,381,346

18.00 OTHER INCOME

Service charges 43,716,365 43,239,759 Bad debts recovery 580,263,381 336,701,083 Rent receipts 55,897,933 54,719,669 Polly phone service charge receipts 135,304,461 33,345,113 Sale proceeds of old newspapers 842,864 735,290 Income from health program 2,109 1,025 Sale proceeds of tender forms 194,600 1,053,800 Miscellaneous receipts (Note 18.01) 452,905,054 279,642,307

1,269,126,767 749,438,046 18.01 Miscellaneous receipts

Income from properties : Profit on sale of plant and equipment 1,631,457 4,282,986 Income from accounts closing 338,602,757 253,722,279 Income from ROSA programme 2,157,813 2,113,242 Others (Note 18.01.01) 110,513,027 19,523,800

452,905,054 279,642,307

18.01.01 Others

Scholarship expenses of 2009 reimbursed by Grameen Kalyan 41,501,506 - Scholarship expenses of 2010 reimbursed by Grameen Kalyan 42,609,000 - Miscellaneous 26,402,521 19,523,800

110,513,027 19,523,800

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2010 2009 Taka Taka

19.00 SALARIES AND OTHER RELATED EXPENSES

Salaries 2,032,331,069 1,655,235,864 Leave encashment 50,151,730 24,653,194 Personal allowances 8,065 11,057 Dearness allowances 195,220 132,216,960 House rent allowances 707,568,050 549,398,484 Medical allowances 138,853,478 118,635,057 Conveyance allowances 167,112,060 142,599,851 Washing allowances 370,609 287,523 Contribution to PF 25,006 24,268 Overtime 4,661,322 3,775,118 Watch and ward allowances 95,871 115,279 Hill allowances 3,254,195 2,928,296 Bonus 334,318,843 222,101,015 Pension & gratuity 1,200,214,234 970,760,438

4,639,159,752 3,822,742,404

20.00 RENT, RATES, TAXES, VEHICLE INSURANCE, UTILITIES ETC.

Rent, rates & taxes 97,324,161 81,769,559 Insurance (vehicle) 621,058 983,861 Water, electricity & gas 23,848,054 23,113,344

121,793,273 105,866,764

21.00 LEGAL AND PROFESSIONAL EXPENSES

Legal expenses 1,378,594 979,320 Other professional expenses 231,733,084 153,776,738

233,111,678 154,756,058

22.00 AUDITORS’ FEES

Statutory audit 1,326,050 1,086,800 Special audit 51,750 47,025

1,377,800 1,133,825

23.00 STATIONERY, PRINTING, ADVERTISEMENT ETC.

Printing & stationery Printing stationery 66,143,620 74,938,818 Work aid 15,149,364 15,632,659 Printing & photocopy 13,609,396 16,164,991 Office stationery 22,627,497 26,457,332 117,529,877 133,193,800 Publication & advertisement 108,108 600,030

117,637,985 133,793,830

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2010 2009 Taka Taka

24.00 MANAGING DIRECTOR’S SALARY AND ALLOWANCES

Basic salary 480,000 378,000 Dearness allowances - 27,600 House rent allowances 189,000 138,000 Medical allowances 7,200 6,000 Domestic aid allowance 12,000 12,000 Entertainment 7,080 7,080 Bonus 80,000 46,000 Felicitation allowance 40,000 23,000

815,280 637,680

25.00 REPAIRS & MAINTENANCE OF FIXED ASSETS

Property & assets 22,118,112 34,127,263 Vehicles 18,811,197 25,259,866 Office, electric & computer equipment 6,078,186 6,735,154

47,007,495 66,122,283

26.00 OTHER EXPENSES

Traveling & conveyance expenses 97,089,235 110,079,209 Postage, telegram and telephone 17,553,139 18,461,484 Entertainment 12,280,922 10,963,930 Liveries and uniform 647,832 750,129 Washing expenses 2,697,276 2,770,746 Welfare and recreation 73,220,027 51,340,226 Books and journals 40,874 56,327 Computer expenses 296,761,722 290,207,316 Bank charges 28,313,330 22,341,050 Expense for contingency fund 33,174,541 27,332,436 Training expenses 10,502,358 15,950,106 Special programme 335,227 2,664,699 Seminar & conference 1,807,886 10,746,029 Film and development 3,217,432 2,242,345 Lunch subsidy 683,613,338 469,035,930 Income tax 28,161,269 10,225,414 Group insurance 14,382,363 13,570,989 Holiday work allowance 875,984 1,147,440 Special subsidy 7,001,852 6,195,506 Felicitation allowance 166,162,757 102,980,212 Scholarship 42,609,000 41,501,506 Miscellaneous expenses 49,519,965 60,074,132

1,569,968,329 1,270,637,161

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2010 2009 Taka Taka

27.00 PROVISIONS FOR LOANS AND ADVANCES

Total specific provision for loans & advances and interest receivable 1,008,783,786 1,324,137,761 Specific provision for loans and advances (Note 27.01) 531,005,435 800,453,148 Specific provision for interest receivable (Note 27.02) 477,778,351 523,684,613

Total general provision for loans & advances and interest receivable (56,310,792) 104,432,510

General provision for regular basic loans 105,669,076 104,445,408 General provision for regular housing loans (162,201,261) (101,158) General provision for regular young entrepreneur loans 213,386 88,260 General provision for regular young entrepreneur interests 8,007 -

952,472,994 1,428,570,271

27.01 Provisionforloansandadvances(forspecific)

Basic and Flexible loans 526,885,383 791,429,633 Housing loans 4,084,722 9,023,515 Young entrepreneur loans 35,330 -

531,005,435 800,453,148

27.02 Provisionforinterestreceivable(forspecific)

Basic and Flexible loans 474,397,437 512,669,887 Housing loans 3,378,355 11,014,726 Young entrepreneur loans 2,559 -

477,778,351 523,684,613

28.00 OTHER ASSETS

Advance income tax for employees 560 2,560 (2,000) Printing stationery 22,213,979 21,530,420 683,559 Office stationery 239,119 395,377 (156,258) Zone/Area control account 115,303 314,420 (199,117) Advance income tax 202,109,108 201,838,038 271,070 Inter-branch adjustments - 22,676,386 (22,676,386) Security deposits 584,952 557,282 27,670 Prepaid expenses 11,168,923 4,224,951 6,943,972 Advance against traveling 18,442 29,542 (11,100) Advance against purchases 848,703 553,152 295,551 Advance against house rent 2,287,760 2,998,370 (710,610) Stock & stores (general) 2,316,732 2,514,544 (197,812) Suspense account 143,478,116 218,514,184 (75,036,068) Advances to contractors 1,727,436 3,965,721 (2,238,285) Advance for disaster 251,668 511,795 (260,127) Workshop 32,641 36,161 (3,520) Rent and other receivables from tenants 10,139,346 13,921,539 (3,782,193) Receivable due 263,117,520 - 263,117,520

660,650,308 494,584,442 166,065,866

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2010 2009 Increase/Decrease Taka Taka Taka

29.00 OTHER LIABILITIES

Bills payable 253,629,589 135,323,650 118,305,939 PF trustee board-current account 3,332,329 11,741,365 (8,409,036) Contributory provident fund 230,191 65,963 164,228 Accounts for other institutions 6,918,128 7,039,065 (120,937) GB superannuation fund-current account 1,002,218,032 931,989,441 70,228,591 Inter-branch adjustments 27,916,026 - 27,916,026 Retention money 4,991,436 5,043,314 (51,878) Earnest money 2,662,160 3,779,902 (1,117,742) Claimable deposits 102,270,344 87,370,294 14,900,050 VAT deducted at source 161,331 219,757 (58,426) Sundry receipts 973,819 626,182 347,637 Farewell grant provision for daily basis staff 207,036,083 139,939,633 67,096,450 Miscellaneous 187,878,480 254,189,375 (66,310,895) Advance house rent 2,240,897 2,137,897 103,000 Struggling members programme 19,923,920 18,513,430 1,410,490 Provision reserve for doubtful rents 130,305 130,305 - Provision reserves 5,398,797,661 5,691,773,517 (292,975,856)

7,221,310,731 7,289,883,090 (68,572,359)

(952,472,994)

(1,021,045,353)

2010 2009 Taka Taka

30.00 CASH AND BANK BALANCES AT THE END OF THE PERIOD

Cash in hand 895,544 1,119,488 Balances with Bangladesh Bank 2,574,932 6,094,552 Balances with other banks and financial institutions 1,308,117,165 1,289,217,003

1,311,587,641 1,296,431,043


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ANNEXURE-A

statement of fiXed assets as at 31 decemBer, 2010

COST DEPRECIATION Written down value

Category of Assets Balance on Additions Transferred Disposals/ Balance at Rate of Balance on Charge Depreciation Disposals/ Balance at Balance at January 1, 2010 during during adjustment December 31, 2010 Dep. % January 1, 2010 for the transferred Adjustments December 31, 2010 December 31, 2010 the year the year during the year year during the year during the year Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka

Land 144,728,792 103,634,046 - 15,002 248,347,836 - - - - - 248,347,836

Building & other

structures (Own Property) 993,497,015 83,685,970 1,500 123,050 1,077,061,435 1.70% 208,380,254 17,567,787 216,527 193,087 225,971,481 851,089,954

Development of

leasehold property 987,576 - - - 987,576 10% 987,576 - - - 987,576 -

Vehicles 146,110,763 7,384,095 3,170,000 8,530,520 148,134,338 20% 97,207,419 22,195,396 3,170,000 7,196,569 115,376,246 32,758,092

Computer equipment 39,898,273 529,714 28,209 5,409,594 35,046,602 30% 33,364,061 3,101,896 - 5,353,446 31,112,510 3,934,092

Office equipment 128,973,733 4,861,737 524,105 8,068,867 126,290,708 15% 103,969,220 5,367,491 1,263,105 6,385,059 104,214,757 22,075,951

Electric equipment 73,125,213 3,729,334 522,340 6,526,470 70,850,417 10% 50,038,595 4,146,833 336,612 5,903,130 48,618,910 22,231,507

Furniture & fixtures 243,822,818 7,900,744 1,263,463 2,219,190 250,767,835 10% 117,834,282 18,419,521 493,178 1,791,550 134,955,431 115,812,403

Capital work in progress 63,533,584 735,974 78,468,471 59,331,446 83,406,583 - - - - - 83,406,583

2010 Taka 1,834,677,766 212,461,614 83,978,088 90,224,139 2,040,893,330 611,781,406 70,798,924 5,479,422 26,822,841 661,236,911 1,379,656,418

2009 Taka 1,607,391,089 248,232,726 82,352,491 103,606,566 1,834,369,740 558,090,973 70,835,708 12,925,922 29,766,301 612,086,302 1,222,283,438




Land 144,728,792 103,634,046 - 15,002 248,347,836 - - - - - 248,347,836

Building & other

structures (Own Property) 993,497,015 83,685,970 1,500 123,050 1,077,061,435 1.70% 208,380,254 17,567,787 216,527 193,087 225,971,481 851,089,954

Development of

leasehold property 987,576 - - - 987,576 10% 987,576 - - - 987,576 -

Vehicles 146,110,763 7,384,095 3,170,000 8,530,520 148,134,338 20% 97,207,419 22,195,396 3,170,000 7,196,569 115,376,246 32,758,092

Computer equipment 39,898,273 529,714 28,209 5,409,594 35,046,602 30% 33,364,061 3,101,896 - 5,353,446 31,112,510 3,934,092

Office equipment 128,973,733 4,861,737 524,105 8,068,867 126,290,708 15% 103,969,220 5,367,491 1,263,105 6,385,059 104,214,757 22,075,951

Electric equipment 73,125,213 3,729,334 522,340 6,526,470 70,850,417 10% 50,038,595 4,146,833 336,612 5,903,130 48,618,910 22,231,507

Furniture & fixtures 243,822,818 7,900,744 1,263,463 2,219,190 250,767,835 10% 117,834,282 18,419,521 493,178 1,791,550 134,955,431 115,812,403

Capital work in progress 63,533,584 735,974 78,468,471 59,331,446 83,406,583 - - - - - 83,406,583

2010 Taka 1,834,677,766 212,461,614 83,978,088 90,224,139 2,040,893,330 611,781,406 70,798,924 5,479,422 26,822,841 661,236,911 1,379,656,418

2009 Taka 1,607,391,089 248,232,726 82,352,491 103,606,566 1,834,369,740 558,090,973 70,835,708 12,925,922 29,766,301 612,086,302 1,222,283,438

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ANNEXURE-B

statement of inVestment ProPerty as at 31 decemBer, 2010



Building & Other Structure:

Administrative Building 17,890,813 - - - 17,890,813 1.70% 6,474,566 304,143 - - 6,778,709 11,112,104

Head Office Building 123,596,151 - - - 123,596,151 1.70% 24,067,106 2,101,135 - - 26,168,241 97,427,910

Total 2010 141,486,964 - - - 141,486,964 30,541,672 2,405,278 - - 32,946,950 108,540,014

Total 2009 141,794,991 - - - 141,794,991 27,826,261 2,410,515 - - 30,236,776 111,558,215




Building & Other Structure:

Administrative Building 17,890,813 - - - 17,890,813 1.70% 6,474,566 304,143 - - 6,778,709 11,112,104

Head Office Building 123,596,151 - - - 123,596,151 1.70% 24,067,106 2,101,135 - - 26,168,241 97,427,910

Total 2010 141,486,964 - - - 141,486,964 30,541,672 2,405,278 - - 32,946,950 108,540,014

Total 2009 141,794,991 - - - 141,794,991 27,826,261 2,410,515 - - 30,236,776 111,558,215

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PHOTOGRAPHY

EKRAMUL HAQUENURJAHAN CHAKLADERSALAHUDDIN AZIZEEA K M SHAMSUR RAHMANA K M SHAMSUR RAHMAN

Banking for the Poor

Grameen BankMirpur 2, Dhaka 1216, BangladeshPhone : +880-2-9005257-69Fax : +880-2-8013559email : [email protected] : www.grameen.com

www.grameen.com

Banking for the

Annual Report 2010

a LITA ASSOCIATE production. [email protected]

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