Rural Banking and Microfinance Agencies in Bangladesh: Operations and Achievements

Submitted To:

Dr. A R Khan
Professor, Department of Banking, University of Dhaka.

Submitted By: Md. Abu Nasher EMBA, Batch # 16, Roll # 50916011, Department of Banking, University of Dhaka.

Course Title: Microfinance & Rural Banking Course ID: EB- 618 Submitted on: 20th August, 2011

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Letter of Transmittal
August 20, 2011

Dr. A R Khan
Professor Department of Banking Faculty of Business Studies University of Dhaka

Subject: Submission of Term Paper

Dear Sir, As instructed and part of my academic program under EMBA, I do hereby submit my report on Rural Banking & Microfinance of Agencies in Bangladesh:Operations & Achievements for your kind review and necessary reference. While preparing this report, I tried my best to follow the guidelines you have given and also have gathered some practical experience. I hope that this report will meet your expectation.I have engaged my intense efforts to bring out this study report with the target of achieving perfection but I am in a little doubt how far I have attained it.It was a great pleasure for me to work on this report. I shall be glad to furnish you with any explanation, if necessary. I shall be highly obliged if you kindly accept my report. Sincerely yours,

Md. Abu Nasher ID# 50916011 Department of Banking Faculty of Business Studies University of Dhaka.

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Introduction
Bangladesh, with a population of more than 140 million, is one of the most densely populated countries (1061 persons per square kilometer) in the world. Poverty is pervasive. Almost half of the total population is still living below the poverty line earning less than $1 a day. Per capita Gross Domestic Product (GDP) in 2004 was estimated at just $470. The various dimensions of the countrys poverty are manifested in terms of inequality in income distribution (in favor of urban areas), wage differentials between the formal and informal sectors, dramatic increases in the cost of living, less than adequate calorie intake by the vast majority of the population, unemployment and internal migration. The United Nations Human Development Programs (UNDP) Human Development Index for Bangladesh was just 0.52 in its 2005 report, resulting in an extremely low international ranking of 139th out of 177 countries. Life expectancy at birth is just 63 years and adult literacy rate for women is only 31.4 percent. However, progress on a range of social indicators in Bangladesh over the last fifteen years has been striking in certain areas, and these have been accredited substantially to the mix of public and private service provision, including the pioneering approach of microfinance institutions (MFIs). The government of Bangladesh faces an enormous challenge in reducing poverty. However, the government can not act alone as it cannot command all the resources, personnel, administrative outreach or expertise necessary to maintain progress in poverty alleviation. The MFIs have taken a key role in poverty alleviation efforts and they have been providing credit to these poor people who lack savings and capital but want jobs in the farm and non-farm sectors. The specialized agricultural banks and NCBs have been lending extensively to the rural area but most of their lending is not targeted to the poor. The foreign banks and the private commercial banks have simply stayed away from rural lending, though there are a few cases of token involvement in microfinance in recent years. The poor people do not get access to formal financial institutions because of lack of physical collateral. The informal moneylenders, on the other hand, charge an exorbitant rate of interest, thereby inhibiting rural poor households from investing in productive income increasing activities. Unlike other countries in the region, Bangladesh does not have a proper substructure of small banks operating at local level (McGuire et al. 1998). Against the backdrop of a relatively undeveloped formal financial system, a strong NGO microfinance system has developed in Bangladesh. These MFIs have been able to reach the poor with collateral-free loans at affordable costs and can thus help the poor become self-employed. The micro-finance sector in Bangladesh is one of the worlds largest. Bangladeshi MFIs are best known for their pioneering, large-scale provision of microfinance services, principally tiny collateral-free loans to poor women. The four largest MFIs, Grameen Bank, BRAC, ASA, Proshika account for 86 percent of the 14.3 million active borrowers. In the macro context, micro-credit loans constitute around 5.3 percent of total private sector credit in the economy in 2004 (Bangladesh Bank, 2005). At present a total of 9.6 million (out of 14.3 million households) or 37 percent of all households in the country are accessing microcredit (World Bank 2005).

Operations & Achievements of the Rural Banking & Micro Finance Agencies
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This paper reviews the achievements of the microfinance revolution, through reference to the now extensive literature. It finds that there are many opportunities to improve and innovate. To illustrate this finding, the paper concentrates on examining what we need to know to design and deliver better financial products to the poor, especially the poorest. It argues that financial services for the poor are essentially a matter of helping the poor turn their savings into sums large enough to satisfy a wide range of business, consumption, personal, social and asset-building needs. The range of such swaps should be wide enough to cater for short, medium and long-term needs, and they must be delivered in ways which are convenient, appropriate, safe and affordable. Providing poor people with effective financial services helps them deal with vulnerability and can thereby help reduce poverty. However, the relationship is driven by complex livelihood imperatives and is not simple. Microfinance is not a magic sky-hook that reaches down to pluck the poor out of poverty. It can, however, be a strategically vital platform that the poor can use to raise their own prospects for an escape from poverty. After an initial wave of faith that state-mediated and subsidized credit provision could reduce poverty, countered by a second wave during the 1980s that deregulated financial markets would suffice, there is emerging evidence of a new wave of microfinance experiences that are meeting the needs of the poor (Hulme and Mosley, 1996; Lipton et al., 1997; Johnson and Rogaly, 1997). This new wave, sometimes called the microfinance movement, has generated considerable enthusiasm among academics, donors and development practitioners of diverse intellectual persuasion (Montagnon, 1998; Dichter, 1997). This is reflected in the figure that by the mid 1990s the microfinance industry had extended around US$ 7 billion in loans to more than 13 million individuals around the world (World Bank, 1996) and claims that by 2000 the number of clients would be approaching 20 million. Despite these recent advances, there are still many opportunities to improve practice. A better understanding of the financial service preferences and behaviours of the poor and poorest is needed to expand the scope of microfinance initiatives and address emerging concerns about microfinance and the poor and poorest (Morduch, 1998, 2000; Matin, 1998; Matin and Sinha, 1998; Rahman, 1998; Zaman, 1998; Gulli, 1998). The logic underpinning most of the recent innovation in microfinance starts from a set of assumptions about the financial service needs of the poor. The focus has been mostly on the design and institutionalisation of a microcredit templatea delivery model that is believed to best answer those needs. Millions of poor households around the world now benefit from this model. However, more useful and varied financial products can be developed if a fuller understanding of the existing money-managing efforts of the poor informs practice. Debates about finance and poverty-reduction have been shaped by changing conceptualizations of who the poor are and the nature of poverty. During the early development decades (1950s, 1960s and 1970s) the bulk of the poor were seen as the members of families headed by (male) small farmers. Their poverty could be overcome by subsidized agricultural credit that would raise productivity and incomes. From the early 1980s a new image began to dominate thinking and action: the poor were mainly women (and their dependants) who coped with their situation by running microenterprises. Small business loans would permit them to expand (or establish) income generating activities, raise their income and socially empower them. Most recently, the poor have been conceptualized as a heterogeneous group of vulnerable households with complex livelihoods and varied needs (Carney, 1998; Scoones, 1998; Ellis, 2000). From such a perspective microfinance is seen as a means for achieving household priorities (e.g. paying school fees, meeting funeral expenses), reducing vulnerability (e.g. a sudden drop in consumption, income or assets) and/or increasing income. It is this broader understanding of poverty that informs our paper and leads us to argue that microfinancial services is the concept that should inform external agents intervening in the area of finance for the poor. The Economic Environment of the Poor: The economic environment of the poor has two features that have particular significance in shaping their use of financial services. The first is that they operate in a mini-economy in which production,
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consumption, trade and exchange, saving, borrowing and income earning occurs in very small amounts. The effect of this is that transaction costs (both direct and indirect) tend to be high as the unit of transaction is generally minuscule. This has important implications for the use of formal sector institutions where the charging of any standardized administrative cost will commonly make transactions unattractive to the poor. The second characteristic is that there are high levels of insecurity and risk. These arise because flows of income and expenditure commonly do not coincide, because of household-specific factors (loss of earnings through sickness, urgent medical expenses, premature death, theft, insecure conditions of employment, difficulties of contract enforcement), and because of broader environmental factors (natural hazards, harvest failure due to drought or flooding, national economic crisis, bank failures in the formal sector, a breakdown in security). The co-variant nature of the risks associated with this latter group is particularly problematic as they weaken the capacity of community-based social security networks to provide support. Demand for financial services from poor households calls for short- and long-term credit lines for financing inputs and investments in both physical and human capital, and for provision of savings opportunities with different rewards and maturities. In general, the poorer the household the greater the need to use savings and credit as insurance substitutes. Thus the contribution of financial services to coping with risks (the protective role of financial services) becomes more important than the expected return of the financial service alone (the promotional role of financial services). The Money Management of the Poor: Towards A Typology: Misconceptions still shape much external intervention in the financial markets of the poor. One of the most prevalent is that the poor do not and/or cannot save. Commonly, the poor are seen as wasteful, immoral and irrational. This is a cause of their misery and also helps to explain their failure to better their lot.5 While we recognize the problems that can arise from alcoholism and gambling our experience is that the vast majority of poor people are actively seeking to improve their personal and household circumstances. A second image holds that the poor cannot save because: they spend all their income and still dont get enough to eat. Paradoxically, it is precisely because of such survival uncertainties that the poor need to and do save, though in ways that is not self-evident according to the conventional understanding of savings as income surplus after consumption. Such an image gives rise to the widespread view that the poor in general cannot save, and leads to an over-emphasis on the promotional role of financial services as credit for investment. People (including the poor) may save money as it goes out (keeping a few coins back from the housekeeping money) as well as when it comes in (deducting savings at source from wages or other income). Even the poorest have to spend money to buy basic items like food and clothing, and each time they do so there is the opportunity to save something, however tiny. Many poor housewives try to save in this way, even if their working husbands fail to save anything from their income. That they sometimes succeed is shown by their habit of lending each other small amounts of money (as well as small amounts of rice or kerosene or salt). This reciprocal lending is very common and makes up the bulk of financial transactions for many poor people (Matin and Sinha, 1998; Dreze et al., 1997) and demonstrates the poors capacity and willingness to save. Given the interconnectedness of the roles of savings, credit and insurance, the motivation behind savings can be expected to be diverse. These needs can be categorized into three main groups. Life-cycle needs The poor have many life cycle needs that can be anticipated (though the timing cannot accurately be predicted) and which require that relatively large sums of money be amassed. These vary from region to region but include childbirth, education, marriage, home-building, old age, funeral expenses, festivals and the desire to bequeath a lump sum to heirs. The amount of cash needed to meet such expenses is much
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larger than can normally be found in the household. The anticipation of such outlays is a constant anxiety for many poor people. Emergencies Emergencies, that create a sudden and unanticipated need for a large sum of money, come in two forms idiosyncratic and covariant. Idiosyncratic emergencies are personal and include sickness or injury, the death of a bread-winner, the loss of employment, and theft. Covariant ones include events such as war, floods, fires and cyclones, andfor slum dwellersthe bulldozing of their homes by the authorities. Each creates a sudden need for more cash than can normally be found at home. Finding a way to insure against such events could help hundreds of millions of poor people. Opportunities As well as problems, the poor also have opportunities: to invest in an existing or new business, to buy land or other productive assets, or to pay a bribe to get a permanent job. One opportunitythe setting up of a microenterprise or expanding an existing onehas recently attracted a lot of attention from the aid industry and from the new generation of microfinance institutions (MFIs) that work with the poor. How do the poor get access to the lump sums that life cycle needs emergencies and opportunities demand? Apart from gifts or charitywhich cannot be relied onthere are only three common methods. The first is to sell assets they already hold (or expect to hold); the second is to take a loan by mortgaging (or pawning) those assets. The third is to turn their many small savings into larger lump sums. The first methodthe sale of assetsis usually a straightforward matter that does not ordinarily require any financial services. However, poor people sometimes sell, in advance, assets that they do not currently have but expect to hold in the future. The most common example is the advance sale of crops. These advances are a form of financing, since the buyer provides, in effect, a loan secured against the yet-to-be harvested crop. The advance may be spent on financing the farming costs required to provide that crop. But they may equally be used on any of the other needs and opportunities identified earlier. The second methodmortgage and pawnenables poor people to convert assets into cash and back again. It is the chance (not always realized) to regain the asset that distinguishes this second method from the first. As with the straightforward sale of assets, such services require the user to have a stock of wealth in the form of an asset (such as land or gold) of some sort. They allow the user to exploit their ownership of this stock of wealth by transforming it temporarily into cash. Whereas these first two methods require that the users have assets, the third method enables poor people to convert their small savings into lump sums. This requires the users to have a flow of savings, however small or irregular. It allows them to exploit their capacity to make savings through a variety of mechanisms by which these savings can be transformed into lump sums. The three main mechanisms are: * Savings deposit, which allow a lump sum to be enjoyed in future in exchange for a series of savings made now * Loans which allow a lump sum to be enjoyed now in exchange for a series of savings to be made in the future (in the form of repayment installments), and * Insurance, which allows a lump sum to be enjoyed at some unspecified future time in exchange for a series of savings made both now and in the future. Thinking about financial services for the poor as a matter of providing ways of turning small amounts of savings into larger useful lump sums helps us to understand the wide variety of informal arrangements that the poor themselves innovate and use. The nature of the financial service used varies, depending on local knowledge, history, context and need, but the essence of such arrangements is similar: turning small amounts of savings into usefully large lump sums. MICROFINANCE: THE PROVIDERS AND THEIR SERVICES An Overview
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The conventional provider categories of informal and formal have been complicated by the arrival of microfinance institutions (MFIs) that may be regarded as semi-formal (World Bank, 1997). While the informal sector has commonly been viewed as unregistered sources of credit, such as money lenders, pawnbrokers and traders, we also include savings services provided by rotating savings and credit associations (RoSCAs), accumulating savings and credit associations (ASCrAs) and deposit takers. Formal providers are those who are subject to the banking laws of the country of operation, provide conventional retail services to customers and engage in financial intermediation. Semi-formal providers are MFIs that are usually registered as NGOs or cooperatives and occasionally as banks with a special charter (such as the Grameen Bank). This threefold categorization aids our analysis but it should not obscure the dynamics by which informal providers become semi-formal (as when managed RoSCAs register as chit funds in India) and MFIs convert from being semi-formal to formal. The Informal Providers and Their Services Informal providers are a heterogeneous group. More importantly, the distinction between informal providers and their users is often fuzzy since they are often one and the same. This commonly results in a relatively localized scale of financial intermediation. The conventional image of the informal provider is of the moneylender. However, the range of informal providers and their provision is in fact far more diverse. The fuzziness of the savings-credit-insurance nexus is most evident in the informal sector. Our knowledge of informal financial service providers is relatively sketchy. They do not usually operate out of offices, they maintain few records and many such arrangements are temporary. In some countries, such as Indonesia, such services are illegalthough quite common. As the transactions tend to be relatively small, financing mainly consumption smoothing and working capital needs, informal finance is not very visible, despite its ubiquity (Ghate, 1988). Moreover, the sensitivity that attaches to financial transactions, on the part of both borrowers and lenders, makes it a particularly difficult subject for empirical research. The main providers of informal financial credit services are illustrated in Figure 1. According to this schema, a distinction is made between five broad categories: (i) lending by individuals on a non-profit (and often reciprocal) basis; (ii) direct but intermittent lending by individuals with a temporary surplus; (iii) lending by individuals specialised in lending, whether on the basis of their own funds or intermediated funds; (iv) individuals who collect deposits or guard money; and (v) group finance. This figure distinguishes between services extended by individuals to other entities and provision within mutually organized groups. A second distinction (among informal lenders who lend to other entities) can be made between regular and intermittent lenders. The latter extend credit intermittently, although not necessarily infrequently, whenever they have a temporary surplus of funds. More often than not, such lenders become borrowers, when the need arises. Such role reversals form the basis of informal insurance networks that have been examined extensively by researchers (Morduch, 1997; Fafchamps, 1995; Udry, 1994). Regular lenders, on the other hand, remain net lenders over an extended period of time. Among regular lenders, a major distinction arises between those who tie lending to other market transactions, and those who extend untied credit. A distinction that cuts across both tying and non-tying lenders is that between lending out of lenders own funds (also referred to as direct financing) and lending based on funds borrowed as deposits when the lender acts as a financial intermediary. In group finance, intermediation can be thought of as taking place between members of the group. Importantly, many transactions, which on the surface appear as credit, are on a deeper analysis, very closely linked to savings and insurance. Udry (1994), based on his study of credit transactions in Nigeria, has described such transactions as insurance substitutes, Fafchamps (1995) refers to them as quasicredit and Rutherford (1999) as advances against future savings. Several researchers also point out that such fuzzy financial transactions are more important for the poor9 (Matin and Sinha, 1998; Morduch, 1997). Most intermittent lending (which is often reciprocal) and mutual group finance falls underb this category. Credit
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The credit function of informal finance has received the most widespread attention, particularly as a source of initial working capital for micro enterprises.10 Intermittent and sometimes reciprocal lending for businesses also takes place between households and can help smooth out short-term cash flow problems and ease longer-term credit constraints. This is important in financial markets for the small enterprises of the non-poor. The size of this market in India has been estimated to be equivalent to 13 to 25 per cent of total bank credit to industry. Savings The credit extended by intermittent lenders and group finance arrangements are essentially hybrid financial products, incorporating savings mobilization and insurance functions. This is important given that poor households tend to use these forms of financial services to a greater extent than the non-poor. The building up of small amounts of savings and innovative intermediation across a network (see Rutherford, 1998, for ingenious examples) is the basis of the informal financial services that the poor predominantly use. The savings contribution of the informal sector is often discussed in the context of deposit mobilization. However, when savings are viewed as deferred consumption, it is seen that the informal sector provides opportunities for saving both through direct lending and intermediation. A large part of informal credit is from friends, relatives and neighbours deferring current consumption to lend to others directly. In fact the bulk of rural investment consists of direct finance, with lenders using their own funds built up over a period of time. In many countries of Africa, above all inWest Africa, itinerant deposit collectors collect savings from their customers and charge a fee for the service (see Aryeetey and Udry, 1997 for a review). There are itinerant deposit takers in Asia (see Rutherford, 1998 for an example from southern India) but their prevalence is low compared to Africa. One reason suggested to explain this is that in Asia it is more often the case that the poor acquire lump sums as loans from money lenders, rather than by microsavings. MICROFINANCE AND POVERTY REDUCTION Not One but Many Paths In conceptual terms, one can distinguish between two types of strategy used by a household to reduce the effects of risk. The first is income smoothingthis is most often achieved by making conservative production or employment choices and diversifying economic activities. In this way, households take steps to protect themselves from adverse income shocks before they occur. Second, households can smoothen consumption by borrowing and saving, depleting and accumulating non-financial assets and employing formal and informal insurance mechanisms. These mechanisms take force aftershocks occur and help insulate consumption patterns from income variability. In the absence of access to financial services, both these strategies are costly and can adversely affect the risk-coping mechanisms of the household in the long run, further exacerbating poverty. Based on this, the ways in which financial services impact on household welfare and food security, can be grouped into three (Zeller, 1996). The first is income generation, which decreases the cost of income smoothing by allowing households to engage in more risky but also more profitable activities. The second and third impact pathways are related to decreasing the cost of consumption smoothing through allowing households to hold and retain better combinations of assets and liabilities or through increasing liquidity for direct consumption smoothing. Path 1income generation This has been the traditional and most widely claimed rationale for intervention, evident both in the earlier (largely unsuccessful) agricultural credit schemes and the present generation of microfinance institutions. The argument is that loans provide additional capital on a temporary basis that can be used to enhance the level of the households productive physical capital. For farm households, in particular, the demand for financial services arises out of the requirements of the agricultural cycle. Borrowing may also allow the household to take advantage of potentially profitable investment opportunities that are too large to finance out of its own resources. Furthermore, easing capital constraints through credit can reduce the opportunity costs of capital-intensive assets relative to family labour, thus encouraging labour-saving technologies and raising productivity, a crucial factor for development.
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A second indirect effect stems not from borrowing per se, but from access to credit. This is expected to increase the households risk bearing capacity. Just the knowledge that credit will be available to cushion consumption against an income shortfall if a potentially profitable, but risky investment should turn out badly, can make the household more willing to adopt more risky technologies. Path IImore cost efficient management of assets and liabilities Improved access to credit may make it possible for the household to smooth consumption at lower costs compared to other strategies. It is argued that improved access to financial services induces the following changes in the households composition of assets and liabilities. * A decrease in the holding of assets with lower risk-adjusted returns, especially if they have access to less risky savings options * A reduction in the level of assets held for precautionary savings * An increase in the level of assets held for speculative purposes * A decline in the level of credit obtained at high cost from informal sources * A decline in the level of asset sales at low prices Path IIIdirect use for immediate consumption needs Households attempt to smooth their consumption by adjusting their disposable income. Informal systems of savings, self-help and insurance, as well as high-cost lending, appear to have comparative advantages for covering idiosyncratic shocks, but may not be an efficient institutional response to covariate risk. Moreover, access by the poorest to the informal arrangements, might be restricted. More formalized financial services can, on the one hand deepen access and on the other hand allow households to smoothen consumption in the face of covariate risk. RURAL FINANCE IN DEVELOPING COUNTRIES Background The establishment of formal agricultural credit systems in most developing countries over the recent decades was motivated by the belief that widespread shortages of short- and long-term finance constituted a constraint that arrested agricultural growth and development. The absence of what was perceived as affordable formal credit was also blamed for delaying, if not preventing, a timely adoption of new production technologies and the dissemination of non labor intensive inputs such as fertilizer, thereby slowing down the growth and development of the agricultural sector. The "infant industry" argument was frequently raised to support intervention in financial markets in favor of the sector as a whole or in support of specific segments of it (small-scale farmers, promotion of new technologies such as line of credit to finance shallow tube, ells, and so on). The "Second-Best I Argument The emergence and proliferation of distorted economic policies affecting the agricultural and rural sectors provided prointerventionists with additional arguments favoring interventions by states in financial markets in order to compensate the agricultural sector for the distorted, urban-biased macro policies (overvalued rate of exchange, price control on agricultural products, and overprotection of domestic industrial inputs that were used as agricultural inputs). Many donors initiated and supported channeling concessional credit to agricultural credit programs, based on the "second-best" argument that is, mitigating the impact of "urban-biased" policies. Governments in developing countries have intervened heavily in rural financial markets, aiming at supplying affordable credit to small-scale farmers and rural entrepreneurs, who were perceived as a clientele with no alternative access to formal credit markets. A perceived imperfection in rural financial markets that generated a discrepancy between social and private costs and benefits has provided a justification for intervention in rural credit markets. As private returns were estimated to be below the social ones, the intervention was intended to overcome this failure and to spur investments that would not have materialized otherwise.
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The perceived imperfections in rural credit markets stem from the characteristics of agricultural production systems. Agricultural income is influenced markedly by climatic conditions, which expose the rural population to higher risks than those prevailing in other sectors. In addition, crops may often be subject to drastic price changes, causing further variability in farmers' income and the related repayment capacity. These risks are typically highly correlated across wide segments of the farming community. Lending in rural areas often implies servicing a geographically dispersed clientele, which entails high transaction costs. In many developing countries, the weak legal system and the ineffective reinforcement arrangements have contributed to the reluctance of commercial banks to engage in lending to the rural population. Related to this issue is the frequent lack of secure land tenure, leading to the absence of collateral or reduced foreclosure capability. When commercial lending institutions have been active in rural areas, they, in most instances, have focused on large-scale farmers while small-scale farmers have been ignored, because of the significant lending cost in processing and servicing unsecured small loans. The prevalent, though often unjustified, belief that small entrepreneurs constitute a higher risk than large ones has encouraged catering to large borrowers. In the absence of strong formal credit markets, informal credit markets have flourished in many developing countries. These informal markets are characterized by low transaction costs for the borrower an (! rapid disbursement of funds. These features can be attributed to close familiarity with the borrower's creditworthiness that, combined with efficient loan collection mechanisms, made the informal credit market, often either the exclusive or the preferred source of credit in rural areas in spite of high interest charges. Most or the informal lenders, however, were limited in the term diversification of the loan portfolio, and operated within limited geographical areas. The intervention was viewed as justified also on equity grounds--moneylenders' short-term, high-cost financing was considered an impediment to growth and equity objectives. The social cost of intervening in financial markets was perceived to be minor. Three basic forms of intervention in the rural credit market have prevailed: (a) the administrative allocation of funds to agricultural activities and rural areas, (b) an imposed interest rate ceiling, and (c) the establishment of and regular support for specialized agricultural credit institutions (SACI) in order to cover their regular deficits. These interventions attempted to influence the amount loaned in rural areas and the price of loanable funds as well as to control the institutional development and mode of operations of the SACIs involved. Performance By and large, past performance of the state- and donor-supported agricultural credit operations has been below expectations. Most of the programs reached only a minority of the farming population, while benefits were frequently concentrated among wealthier farmers. Many of the institutions established or supported for delivering credit programs have not developed into self sustaining credit facilities. Furthermore in many instances, the subsidy dependence of these institutions has become significant and has been rising. This, in turn, makes credit programs an extremely costly affair for their sponsoring governments. For example, the agricultural credit systems of the World Bank's three most important agricultural credit borrowers in the 1980s, Brazil, Mexico, and India, have all suffered from severe equity erosion. In Brazil and Mexico, highly negative interest rates in an inflationary environment generated the erosion, while in India the equity erosion resulted from dismal loan collection (Yaron and Siegel 1988). In the agricultural credit systems of Brazil, Mexico, and India administrative interventions retarded the development of efficient financial markets and had negative implications for other sectors in the economy by depriving them of loanable funds and increasing their borrowing costs. As an Operation Evaluation Department (OED) study of agricultural credit projects in twenty-four countries points out, these projects often have failed to become vehicles to upgrade farm technology.' The programs reached a minority of the farming population and benefits were frequently concentrated among wealthier farmers. For example, a study in Costa 11ica has shown that income distribution could be significantly improved if credit subsidies were eliminated (Vogel 1984). Many of the institutions established or supported for delivering credit programs did not develop into self sustained credit facilities.
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The disappointing performance of the credit supply-led approach can be attributed to two sets of issues: (a) some of the underlying premises of this approach were frequently not valid, and (b) the institutions and arrangements established or utilized for implementing the policy were often designed and operated in a nonviable manner, or within a policy and social environment hindering their effectiveness. Annual Agricultural/Rural Credit Policy and Program for Fiscal Year (2009-2010)-04 Agriculture being the key driving force as well as the priority sector of Bangladesh economy, Bangladesh Bank (BB) has formulated Annual Agricultural/Rural Credit Policy and Program for the Fiscal year 200910 with a view to ensuring food security of the country. This policy and program will expand agricultural production and employment generating activities by increasing the flow of credit to the agricultural/ rural sector, which in turn, will revive the rural economy by increasing internal demand and thus, BB thinks, will boost up the economy of Bangladesh in the face of global economic recession. The target for disbursement of agricultural/rural credit has already been fixed at around Tk. 11.5 thousand crore1 for FY 2009-10 Agriculture/Rural Credit Program and the amount is the highest so far which will be disbursed by the state-owned commercial banks (SCBs) and the specialized banks (SBs) simultaneously with the private (PCBs) and foreign commercial banks (FCBs). The targeted amount will not be limited to grains and crops only; rather adequate allocation has been made under this program for fisheries, livestock and agriculture supporting sectors as well as for income generating and poverty reduction activities in rural areas. In this regard, it may be mentioned that agricultural/rural credit disbursement target in FY 2009-10 has been increased by Tk.2133.07crore (22.74%) compared to that in FY 2008-09 (Tk. 9379.23 crore). Policies Regarding Agricultural/Rural Credit: Agricultural/Rural Credit Policy for Fiscal Year 2009-2010 has been formulated as a guideline for banks and other financial institutions to facilitate agricultural/rural credit system at the field level properly. The policy highlights for reaching out to relatively underdeveloped areas for delivering agricultural credit and timely & hassle free delivery of adequate agricultural/rural credit to small farmers & share-croppers. Besides disbursing agricultural credit at Union level openly through a transparent process, emphasis has been given on making district agricultural credit committee (DACC) more active so that only true farmers get agricultural credit. Simultaneously, banks are advised to disburse sufficient amount of credit for agricultural instrument purchase and other agriculture supportive sectors as well as for poverty reduction and income generating activities in rural areas, and to disburse agricultural/rural credit to women entrepreneurs on a priority basis. A comprehensive monitoring strategy for agricultural credit system is being devised by simultaneous monitoring of agricultural credit system at bank level and formation of Agricultural Credit Monitoring System in Bangladesh Bank. In addition to maintaining existing policies for proper implementation of agricultural credit program, a good number of new pro-poor policies have been adopted. The salient features of Agricultural/Rural Credit Policy are as follows: Existing Policies: A farmer may be sanctioned credit for up to 15 bighas (5 acres) of cultivable land as determined by credit norms. However, credit ceiling for growing potato and sugarcane will remain fixed at 2.5 acres of cultivable land. As per Agricultural/Rural Credit Policy, in disbursement of agricultural credit three core sectors of agricultural credit have to be given priority compared to other sectors. Sixty percent of agricultural credit has to be disbursed to grain and crop sectors only. Importance should be attached to regional crop production patterns and crop types (i.e., whichever crops grow better in a region) while disbursing agricultural credit through a pragmatic area-based approach.
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 Banks with inadequate number of branches are advised to disburse agricultural/rural credit by establishing linkages with NGOs/self-employment supporting groups if and when needed. Banks are encouraged to disburse group-based loans to fishermen in various water bodies, haors and pools. In order to provide practical assistance in field level Agricultural Credit Program credit norms including per acre production cost of crops, necessary directions for co-crops and relay crops and crop calendar for planting & harvesting of crops and useful time limit for credit repayment by farmers have been linked with policies in collaboration with the Directorate of Agriculture under the Ministry of Agriculture. Newly Added Policies: Banks are directed to give priority to relatively underdeveloped and neglected areas such as char (shoal), haor and coastal areas in disbursing agricultural credit. Simultaneously, Bangladesh Bank will consider providing refinancing facility to encourage credit distribution programs in such areas. A portion of targeted agricultural/rural credit disbursement of Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB), who are receivers of Refinance facility from Bangladesh Bank, will be brought under NGO linkage program. In order to bring landless, marginal and sharecroppers under bank credit coverage, arrangement has been made for accessing agricultural credit by submitting certificates by landowners and important persons of society. To ensure fair prices of agricultural produces at grower level banks and financial institutions are directed to disburse agricultural credit to genuine farmers as well as in favor of local small businessmen in the crop storage and marketing sectors under agricultural credit program so that small/large crop depots can be built. Banks and other concerned institutions are directed to provide necessary credit to successful farmers so that other farmers to get inspired by their success. A three-year revolving crop credit program is underway as a means to dispel complications in accessing agricultural credit for the same land arising from submission of land documents every year. Banks and other concerned institutions are advised to make arrangement for credit disbursement in the presence of local public representatives, concerned agricultural officers, teachers and other important persons in the community at Union level so that genuine small farmers and share croppers can access agricultural credit, grain and crop credit in particular, through a transparent process. Concerned institutions are also advised to disburse credit in favor of fishermen permanently residing in the southern region of the country so that they can purchase/procure fishing instruments such as boats, nets etc. Mushroom cultivation has been included in the list of sectors-sub sectors eligible to access to agricultural credit considering the nutritional value and cultivability of mushrooms in Bangladesh. New agriculture initiatives have been included in agricultural/rural credit norms with a view to encourage them by providing necessary credit supports. In this respect, banks are directed to seek help from local Agricultural Extension Officers. To reduce import dependence agricultural credit has to be offered at 2% under government declared rebate facility for growing agricultural products such as lentils, oilseeds, corns etc. including spices (ginger, garlic etc.).
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 As an agriculture supporting sector irrigation, ploughing and harvesting machineries have to be provided with necessary credit. Each bank branch is advised to take initiative for disbursement of agricultural credit for purchasing at least one threshing machine. Besides supplying credit to agriculture and supporting sectors, credit has to be made available for different self-employment or income generating activities on individual or group basis with a view to expediting growth momentum in the rural economy. Concerned banks have to ensure effective monitoring system so that only the real farmers get necessary amount of agricultural credit in a timely and hassle-free manner and the targeted amount of agricultural credit is disbursed. Bangladesh Bank is also preparing a comprehensive agricultural credit monitoring strategy Women entrepreneurs should get priority in agricultural/rural credit disbursement. Attainment of targeted amount of agricultural credit will be deemed as a plus point in getting permission for opening new bank branches. District Agricultural Credit Committee headed by Deputy Commissioner in each district has to be more active. Information centers established in DC offices will preserve the list of agricultural loan receivers. Banks will be encouraged to use modern Information and Communication Technology (ICT) including mobile phone in agricultural credit disbursement programs. A few banks have already opened Small and Medium Enterprise (SME) centers which may also play a supportive role in disbursing agricultural credit plough. Annual Agricultural/Rural Credit Norms: As usually practiced every year, this year too Annual Agricultural/Rural Credit Norms for FY 2009-2010 has been formulated in collaboration with the Directorate of Agricultural Extension for the banks who disburse agricultural loans at field levels as well as for other concerned institutions. The main features of credit norms remain unchanged so as to bring credit facilities close to marginal farmers. However, credit limit has been increased in the rage of 5-10 percent to match with production costs of the previous year. Moreover, banks are allowed to adjust credit limit locally up to 10% according to real demands of farmers. Additionally, new agricultural initiatives will be able to avail funding supports and as a part of this facility cultivation of 'BAUkul', 'Apple Kul' and lichis have been included in the Agricultural Credit Norms (ACM). Further actions, if necessary, will be taken to include new agricultural initiatives in ACM for the rest of the fiscal year. Bangladesh Bank will take all necessary steps to implement the Annual Agricultural Credit/Rural Policy and Program in favor of marginal farmers of the country with the help of other banks. To add momentum to the agricultural credit system, Bangladesh Bank will invigorate its own monitoring system while the concerned banks will continue strengthening their respective monitoring systems. Bangladesh Bank will seriously consider any complaints regarding irregularities with or harassment of farmers. In case of severe complaints, Bangladesh Bank will rapidly investigate into the matter and take necessary actions accordingly. Annual Agricultural Credit Program As food security, improvement of the living standard and generation of employment opportunities of the huge population of the country are directly linked to the agriculture sector, it is imperative for greater institutional and policy supports for the sector. There have been continued efforts by the Government for the overall development of this sector to fulfill the food and nutritional demand of the growing population of the country and, to ensure and sustain dependable food security. Special emphasis has been laid on building up a modern agriculture system based on appropriate technology. Keeping in view, the importance of credit for ensuring sustainable growth in the agriculture sector, annual program me based
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indicative disbursement targets of credit by the lending banks are designed. Yearly targets of disbursement are set by the banks themselves taking into consideration expected demand for credit for the year, previous years disbursements and the availability of fund. In recent time, private commercial banks have come forward to participate in agricultural and rural finance program along with the specialized financial institutions and state owned commercial banks (SCBs). In FY09, the local commercial banks disbursed Taka 17.80 billion while the foreign banks disbursed Taka 5.13 billion of agricultural/rural credit. However, SCBs and specialized banks still played dominant role for the growth of agriculture and rural economy with disbursement of Taka 69.92 billion (Table 7.1). Bangladesh Bank has announced its annual agricultural/rural credit policy and program for FY10. The target for disbursement of agricultural/rural credit has fixed at so far the highest amount of Taka 115.0 billion for FY10. Recently, BB has also taken up a special refinancing scheme of Taka 5.0 billion and signed an agreement with BRAC, a leading non- governmental organization (NGO), in which sharecroppers will receive collateral-free loans for the first time. The BRAC will borrow such fund at 5 percent interest from BB and disburse at 10 percent interest to sharecroppers in groups at 150 upazilas under 35 districts across the country. Apart from agricultural credit Grameen Bank and large NGOs played significant role through their microcredit programs to boost up the rural economy in the country. With efficient disbursement and recovery position, their disbursement during FY09 amounting Taka 222.0 billion was 217.50 percent higher than the agricultural loan disbursement of the institutional lenders. SMEs also have a significant role in rural economic up liftmen by generating growth and creating employment. As the economy opens up and pursues export-led growth, it is vital to strengthen the SME sector to make it more competitive. Disbursement The actual disbursement of Taka 69.92 billion in FY09 against the disbursement target of Taka 74.66 billion (excluding PCBs and foreign banks) was 13.38 percent higher than the total disbursement of Taka 61.67 billion of FY08. The target attainment in FY09 was 93.65 percent as against 88.42 percent in the previous year. The disbursement of FY09 fell short the target due to non-achievement of disbursement targets in poverty alleviation, purchase and installation of irrigation equipments, crops loan, livestock and fisheries. On the other hand, disbursements have exceeded the targets in marketing of agricultural goods and other agricultural sectors in FY09. The total outstanding loan in the agricultural sector in FY09 increased by Taka 17.75 billion or 9.96 percent to Taka 195.98 billion over the previous years level Two specialized banks viz. BKB, RAKUB, four SCBs and BRDB although played key roles in disbursement of agricultural and rural finance, the remarkable contribution of foreign and private commercial banks also an imperative in this regard. However, SCBs, BRDB, BSBL and PCBs fell short of targets by 21.14 percent, 7.59 percent, 88.89 percent and 4.15 percent respectively. On the other hand, BKB, RAKUB, and foreign banks exceeded the disbursement target by 0.63 percent, 2.92 percent and 168.59 percent respectively in FY09 (Table 7.2). About 65.00 percent of disbursement was as short term lending and the rest 35.00 percent was in the form of long-term loans for irrigation equipments, agricultural machinery, livestock etc. Recovery During FY09, recovery of agricultural credit increased by 39.52 percent to Taka 83.77 billion (including PCBs and foreign banks) from the recovery of Taka 60.04 billion made in FY08. The increase in recovery position was caused mainly due to continuation of incentive measures introduced previously for recovery of stuck-up loans during FY09, which, inter alia, included ensuring the availability of inputs including fertilizer at the door steps of the farmers, implementation of the agriculture extension policy, simplification of the disbursement procedures of agricultural credit etc. The percentage of overdue agricultural loan, decreased from 48.18 percent at the end of June 2008 to 31.02 percent at the end of June 2009 (Table 7.2). It is important that banks should set up their recovery drive matching with the harvesting seasons and, strengthen incentive measures ensuring appropriate dissemination of information so that the recovery of agricultural loan gets improved further in the years to come. Sources of Agricultural Finance
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The main sources of finance in agriculture are still the state-owned banks. As such specialized banks viz. BKB and RAKUB, state owned commercial banks and BRDB are dominant players in the area of agricultural credit. BKB had the largest share like in previous years in annual disbursement of agricultural loan. In FY09, BKB alone disbursed 41.18 percent of the total disbursement, followed by SCBs at 17.11 percent. The SCBs overdue loan as percentage of their outstanding stood at 50.06 percent at the end of FY09, while overdue of BRDB, RAKUB and BKB recorded 35.78, 31.24 and 26.21 percent respectively of their outstanding during the year. On the other hand, the role of private sector domestic and foreign banks in agricultural lending seems to be increasing, as they contributed Taka 22.93 billion which is around 24.70 percent of the total agricultural loan disbursed in FY09 (Table 7.2). The burden of unrealized large amount of agricultural loan is responsible for acute shortage of resource base of the SCBs and specialized banks which construed obstacles in their policies of recycling of resources for this sector. These banks should, therefore, gear-up recovery drive to minimize their resource gap not only for extending more support to agricultural sector, but also to do away with the policies of resorting to refinance from the central bank in this regard. Bangladesh Bank's Refinance against Agricultural Loans During FY09, BKB and RAKUB have enjoyed refinance facilities to the tune of Taka 2.94 billion from Bangladesh Bank. No other institutions availed of refinance facilities from Bangladesh Bank in FY09. An amount of Taka 3.73 billion (including interests) was recovered against past refinance loan due from different banks and institutions leaving an outstanding balance of Taka 59.80 billion (including interests) as on end of June 2009 for future recovery. Details of Bangladesh Bank's refinance to different institutions are shown in Table 7.3. Agricultural Credit Projects/Program under Bangladesh Bank supervision Some self as well as donor financed agricultural projects/program, of national interest, were under active supervision of Bangladesh Bank during FY09. A total of Taka 0.68 billion was disbursed and Taka 0.69 billion recovered during FY09 under a few such ongoing projects/programs viz, Shrimp Culture Financing Scheme, Shashya Gudam Rin Prokalpa (SHOGORIP) and the Marginal and Small Farm Systems Crops Intensification Project (MSFSCIP). Apart from these, credit disbursement under the Northwest Crop Diversification Project started in FY04. The Project was launched in December 2000 and was scheduled to be completed in 2008. On the success of the project, ADB extended the project scope and loan closing date from 31 December 2008 to 31 December 2009. The project was funded by ADB (Taka 1.60 billion) with a credit component of Taka 1.54 billion for financing production and appropriate marketing of high-valued crops in sixteen northwestern districts. The fund has been provided to RAKUB and four NGOs for distribution among the farmers and agro-based enterprises under the supervision of Bangladesh Bank and Directorate of Agricultural Extension. Under the project a total amount of Taka 1.54 billion has been disbursed and Taka 1.24 billion was recovered up to the end of June 2009. In FY09, recovery of Taka 0.92 billion was also made under a number of closed projects (Second Aquaculture Development Project, and North-west Rural Development Project) leaving an outstanding balance of Taka 0.14 billion as of end June 2009 for future recovery. Financing of Small & Medium Scale Enterprises An amount of total Taka 12.45 billion has been refinanced to different banks and financial Institutions under some schemes up to end June 2009. Bangladesh Bank's refinance facilities to banks during FY09 for promoting small and medium scale industrial enterprises under some special schemes and programs are shown below: a) Refinance Scheme for Agro-processing Industries For financing establishment of agro-processing industries in the areas outside of Divisional Head Quarters and Narayanganj town, Bangladesh Bank launched a scheme of Taka 1.0 billion from November 2001 out
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of its Industrial Credit Fund. Refinance facilities under the scheme were provided to banks and financial institutions at the Bank Rate. An amount of Taka 1.23 billion has been disbursed under this scheme till end June 2009. b) Refinance for Small Enterprises. 42 Banks and non-bank financial Institutions have signed participation agreement with Bangladesh Bank for financing SME sector under following schemes: i) Bangladesh Bank Fund: Bangladesh Bank introduced a refinance scheme named Small Enterprise Fund (SEF) of Taka 6.0 billion out of its own fund for supporting the development of small enterprises in the country. Refinance facilities under the scheme were extended for the banks and financial institutions at Bank Rate against their financing to the small entrepreneurs, usually left out by the formal sector financing. The scheme demonstrated a high market demand. Recovery made out of the refinanced loan will be used as a revolving fund for financing SME sector. An amount of Taka 7.16 billion has been refinanced to 38 banks and non-bank financial institutions under this fund up to end June 2009 against 7001 enterprises. ii) Enterprise Growth and Bank Modernization Project (EGBMP) Fund: In the meantime, the IDA wing of the World Bank has provided an additional amount of USD 0.01 billion (Taka 0.58 billion) named EGBMP fund to reinforce this scheme under a Development Credit Agreement signed with the Government of Bangladesh for financing the development of small enterprise sector of the country. In addition, Government of Bangladesh allocated an amount of Taka 0.58 billion under the said agreement. An amount of Taka 1.12 billion has been received combining the IDA credit fund and Government of Bangladesh fund for refinancing. An amount of Taka 2.25 billion has been refinanced to 28 banks and non-bank financial institutions under this fund up to end June 2009 against 2477 enterprises. ii) ADB Fund: Asian Development Bank has also agreed to provide an additional amount of USD 0.03 billion for financing the scheme under a Loan Agreement with the Government of Bangladesh to develop the SME sector in Bangladesh. An amount of Taka 3.04 billion has been refinanced to 16 banks and non-bank financial institutions under this fund up to end June 2009 against 1764 enterprises. A total amount of Taka 12.45 billion has been refinanced to different banks and non-bank financial institutions under small and medium sector from aforesaid funds up to end June 2009 under these schemes' against 12401 enterprises. Microcredit Operations of NGOs Since its emergence microcredit has grown in popularity as tool for poverty alleviation. With the increasing popularity of microcredit it promises to help recipients to achieve economic self-sufficiency and break cycles of poverty by providing cash infusions necessary to purchase productive assets. Microcredit operators have been providing various social and financial services to the poor to alleviate poverty for more than 3 decades. At present financial service of 17,000 crore (approx.) is being rendered among 3 crore poor people (including overlapping) which help them to become self reliant that accelerates overall economic development of the country. Like earlier years microcredit operations grew significantly in FY09. Grameen Bank and only 10 large Microfinance Institutions (MFIs) like BRAC, ASA, TMSS, Buro Bangladesh, Proshika, Jagarani Chakra Foundation, Shakti Foundation, Padakhkhep Manabik Unnayan Kendra, Caritas Bangladesh and RDRS Bangladesh represent 87% of total savings and 82% of total outstanding loan of the sector. Near about 2 lac people are employed in MFIs and Grameen Bank. Around 3 crore poor people are directly benefited from microcredit program. Through the financial services of microcredit these poor people are engaging themselves in various income generating activities (Source: Microcredit Regulatory Authority).
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It appears from Table 7.4 that microcredit operations grew rapidly in the country like previous years with 12.12 percent increase in disbursement. Recovery also increased in a higher rate at 31.33 percent in FY09. The overdue as percentage of outstanding loan increased marginally from 5.1 percent in FY08 to 5.2 percent in FY09. Recycling of lending resources of the microcredit providers in FY09 like previous years was more than 167.42 percent of their outstanding loans which was 164.05 percent in FY08. The microcredit providers own resources and PKSF (Palli Karma Shahayak Foundation) respectively account for nearly half and about one quarter of their resources; rest of their funds come from loan from banks, large NGOs and external donors. The loans given by PKSF to 257 POs (Partner Organizations or NGOs) stood at Taka 74.84 billion in FY09 against Taka 56.65 billion in FY08. On the other hand, agricultural credit disbursements, in line with the previous trends, remained constrained at around 40.73 percent of their outstanding loans in FY09 against 38.91 percent in FY08. This is because a large portion of their loans to agricultural sector were stuck up. Overdue as percentage outstanding of institutional agricultural loan providers decreased from 36.83 percent in FY08 to 35.23 percent in FY09. Since the establishment of Microcredit Regulatory Authority (MRA) it has been working to create a healthy environment for Microfinance Institutions (MFIs) in this sector. MRA is empowered to monitor and supervise the MFIs to ensure the transparency of this sector as well as the accountability of microcredit activities of the MFIs. According to the Microcredit Regulatory Authority Act, 2006, no MFI can operate microcredit program without obtaining license from MRA. A total of 439 MFIs have been licensed till August 2009 from MRA.

Bangladesh Bank
The government of Bangladesh has established Microcredit Regulatory Authority (MRA) under "Microcredit Regulatory Authority Act, 2006" in August 2007. According to the provision of the law no Microfinance Institution (MFIs) is allowed to operate microfinance activity in the country without having license from the Authority. The MFIs who were active before the enactment of the law were given six months time (February 2007) to apply for license, accordingly near about four thousand institutions applied to the Authority. The Authority is currently providing license to the previously active MFIs. At
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the first stage near about 700 applications are being processed for license, and the rest were given time till June 2009 to attain a certain level of operations (either 1000 borrowers or Tk. 40 lacs outstanding loan). This publication is based on the information provided with the application form by the MFIs, especially the institutions whose application forms were under process at the first stage. However, a list of all MFIs applied for license has been provided here. It is expected that the information of these institutions will cover almost whole of the market. Information were verified and checked, however there could be some errors. Institute of Microfinance (InM) extended their cooperation in this regard; they helped in checking data and analyzing them. All information supplied with the application forms were not considered in this publication, only some important data like credit disbursement, savings, area of operations etc. have been included in this publication. Some important information like service charge, overdue loan etc. were not provided here after considering data authenticity, but they will be considered in future publication. It is expected that future publications will be richer than this one both in terms of coverage and analysis. We regret that this report has taken a long time to publish because of some unavoidable constraints of the Authority; however this publication has significance because of its continuity with the preceding reports published by the previous Microfinance Research and Reference Unit (MRRU). We hope that the next report will come out timely. I sincerely thank the officials of MRA for their effort to bring out this publication. Micro Finance Institutions (MFIs): The member-based Microfinance Institutions (MFIs) constitute a rapidly growing segment of the Rural Financial Market (RFM) in Bangladesh. Microcredit programs (MCP) in Bangladesh are implemented by various formal financial institutions (nationalized commercial banks and specialized banks), specialized government organizations and Non-Government Organizations (NGOs). The growth in the MFI sector, in terms of the number of MFI as well as total membership, was phenomenal during the 1990s and continues till today. Over the period of June 2003 to June 2006 the growth rate was over 70% in terms of horizontal expansion of microcredit borrower. The total coverage of MCP in Bangladesh is approximately 30.09 million borrowers without considering overlapping figures. Table-1 shows the coverage of major institutions in the formal and semi-formal sectors. It is estimated that after considering the overlapping problem, which is expected to be over 40%, the effective coverage would be around 18.05 million borrowers. Out of 18.05 million borrowers covered by microcredit program, about 62% are below poverty line and so over 11.19 million poor borrowers are covered by microcredit program by 2006. Microcredit programs of NGOs (known as NGO-Microfinance Institutions or NGO-MFIs) and Grameen Bank play dominant role in this financial market, NGO-MFIs serve more than 61 percent and Grameen Bank alone serves 24 percent of the total borrowers. Among NGO-MFIs more than 80 percent of the outstanding loan disbursed by the top 20 NGOs, three of them are very large and have coverage all over the country. Service charge on credit varies from 10% to 20% at flat method of collection, all partners of Palli Karma-Sahayak Foundation (PKSF) charge 12.5%. Average interest offered by NGO-MFIs on savings to the members is 5%. Near about 90% of the clients of this sector are female. Loan recovery rate is generally very high compare to the banking sector, which is over 90%. Average loan size of NGOMFIs was found around Taka 4,000. Table - 1:Coverage of Microcredit Program Outstanding Loan Organization No. of Borrowers (in million Taka) NGO-MFIs (June 2006) 18,415,878 78,930.57 Grameen Bank (June 2006) 6908704 33235.46 Government Program (December, 2005) 1,997,240 7,710.05 Sub Total 27,621,573 120,493.52
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Nationalized Commercial Banks (December, 2005) 2311150 32783.45 Private Banks (December, 2005) 164113 1106.46 Sub Total 2,475,263 33,889.91 Grand Total 30,096,836 154,383.43 Source: Microcredit Regulatory Authority, Grameen Bank Microcredit Regulatory Authority Microfinance is now a nation-wide activity in Bangladesh. The issue of a regulatory framework has come to the forefront because NGO-MFIs, the major provider of this service, are providing financial services to the poor outside the formal banking system. The government of Bangladesh enacted 'Microcredit Regulatory Authority Act 2006' (act number 32 of the year 2006) on July 16, 2006 with effect from August 27, 2006 with a view to ensuring transparency and accountability of microcredit activities of the Microfinance Institutions (MFIs) in the country. Microcredit Regulatory Authority (MRA) has been established under the act which is now empowered and responsible to implement the said act and to bring the microcredit sector of the country under a full-fledged regulatory framework. According to the Act, no MFI can carry out microcredit activities without obtaining license from MRA. Section 15(2) of 'Microcredit Regulatory Authority Act 2006' has made it mandatory for MFIs who had microcredit activities before the effective date (August 27,2006) of the act to apply for license to MRA within six months (February 26, 2007) from the effective date of the act. Accordingly 4236 NGO-MFIs have applied to MRA for license by February 26, 2007. It was decided by the Authority that among these organizations, only those organizations will be considered for license that can fulfill minimum criteria (have equal to or more than 1000 borrowers or equal to or more than taka 40 lakhs loan outstanding). Rest of the organizations already applied to the Authority will be allowed time till June 2009 to reach the above mentioned minimum criteria. If they are unable to meet those criteria within specified time they will have to close their microcredit operation after that given time. Accordingly applications from 705 institutions are being considered for license. After evaluating their application and real operations at field level they are being considered finally as eligible to get license. Up to May 20, 2008 the authority has issued 250 licenses to different NGO-MFIs and licensing procedure of other selected NGO-MFIs are under process. MRA is also working to prepare details rules and policies to monitor and supervise licensed NGO-MFIs that will cover governance issues, financial transparency, mode of operations and other related issues to ensure transparency and accountability in operation. Bangladesh Bank report says: Development of SMEs can curb poverty Higher growth of the Small and Medium Enterprises (SMEs) can help cut poverty to a satisfactory level by eliminating various prejudices against labour intensive and creating jobs for the skilled manpower in the SME sector. This was revealed in the just released Bangladesh Bank annual report for fiscal 2006-07. The report said, the key reasons behind the SMEs are not entering into manufacturing are financial constrains, dismal state of utilities, technology and policy discriminations. On the others hand, Bank and others financial institutions generally prefer large enterprise clients because of lower transition costs, and greater availability of collateral. The SMEs also fall outside the reach of micro finance schemes, and thus compelled to depend on formal sources of funds at much higher interest rates, the Bangladesh Bank report said. The BB report, however, said that other interrelated problems like shortage of short and long term finance, lack of modern technology and lack of promotional support services are major obstacles in the way of development of the SMEs sector.
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Considering these obstacles, the report said, Bangladesh Bank has adopted a preferential lending policy to promote the SME sector in line with the government development policies. An amount of Taka 2.27 billion was refinanced through different banks and financial institutions under some schemes during the fiscal 2006-07. In the country, the annual report said, financing small and medium enterprises (SMEs) from banking sector is a long-standing demand that has been high on the agenda of the economists and the policymakers. In Bangladesh the SMEs account for about 45% of manufacturing value addition. They account for about 80%of industrial employment, about 90% of total industrial units and about 25% of total labour force. Their total contribution to export earnings varies from 75- 80% based on the Economic Census 20012003. The total number of SMEs is estimated at 79754 establishments, of which 93.6% are small and 6.4% are medium. The 2003 Private Sector Survey estimated about 6 million micro, small, and medium enterprises defined as enterprises, with fewer than 100 employees who contributed around 20-25% of GDP. The report observed that the SMEs demand for bank loan, especially, medium and long term financing is relatively high. The Banks are reluctant to extend loans, especially, term loans to SMEs and the reasons for banks' reluctance to extend loans to SMEs are perception that the current legal system is unable to protect their interests, funding costs are relatively high, shortage of access to long-term capital, inability to conduct proper due diligence and the current unavailability of information. The report pointed out that financing of SMEs by the scheduled banks is explicitly supported by the refinancing facilities provided by Bangladesh Bank. The scheduled banks generally avoid working capital financing for SMEs, while the refinancing facilities help in favor of term loans.

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Bangladesh Krishi Bank

Bangladesh Krishi Bank (BKB) is a 100% government owned specialized Bank in Bangladesh. KRISHI means Agriculture. Since its inception, BKB is financing in agricultural sector remarkably. BKB also performs commercial banking. People working abroad can easily send money home through our Taka Drawing Arrangement. The major occupation of the people of Bangladesh is "Krishi". Krishi is a Bengali word which means "Agriculture". About 85% of the population depends directly or indirectly on agriculture which contributes a significant portion to GDP. Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi Bank order 1973 (President's Order No 27 of 1973). BKB is a Banking Company under the Banking Company Act-1991. Its Head Office is located at Krishi Bank Bhaban,83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh. About BKB The major occupation of the people of Bangladesh is "Krishi". The Bengali term Krishi means "Agriculture". About 85% of the population depends directly or indirectly on agriculture which contributes a significant portion to GDP. Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi Bank order 1973 (President's Order No 27 of 1973).BKB is Banking Company under the Banking Company Act-1991. Its Head Office is located at Krishi Bank Bhaban, 83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh. The primary objective of BKB is to provide credit facilities to the farmers for the development of agriculture i.e. Crop production, Fish culture, Animal Husbandry etc, entrepreneurs engaged in development of agro-based and cottage industries. The Bank is guided in accordance with the policies and principles of the Government of the Peoples Republic of Bangladesh. BKB has an authorized capital of Tk. 15,000 Million (Taka Fifteen thousand Million) only and paid up capital of Tk. 9,000 Million (Taka Nine thousand Million) only which is fully paid by the Government. The Bank started commercial functioning since 1977 to generate more loanable fund from the idle rural and urban savings and invest them for the betterment of our economy. The Bank operates its function through its 972 branches (except Rajshahi Division). It has 16 foreign exchange (Authorized dealer) branches. In the field level the Bank has 9 Divisional, 29 Chief Regional and 24 Regional offices for close supervision of the branch activities. For smooth operation, as a part of internal control and compliance system, the bank has also 63 field level audit offices of which 9 at Divisional and 54 at Regional levels. In the Head Office the Bank has 4 Divisions headed by General Managers, 28 Departments and a Training Institute headed by Deputy General Managers. Local Principal Office of BKB is headed by a General Manager. The existing strength of Bank's manpower is 9430 against the approved strength of 13680 as on 31 December, 2010.The Bank has a Board of Directors comprising of 11 members. The Board is headed by the Chairman. The Board Chairman is generally an experienced professional/ex-professional who has wide acceptability and rapport. The Directors represent both public and private sectors and are appointed by the Government. The Managing Director is the Chief Executive of the Bank. He is appointed by the Government. The Bank has two posts of Deputy Managing Directors and they are appointed by the Government. The Bank has 14 posts of General Managers. They are also appointed by the Government. Poverty alleviation and Micro-credit Programs/Projects Bangladesh Krishi Bank was established under BKB Order`1973 with the objective of strengthening rural economy by extending credit support to agricultural and agro-based sectors. In consideration of the importance of Micro-Credit and with the objective of generating employment as well as encouraging social development BKB has undertaken several Micro-Credit programs of its own and also in collaboration with local and foreign agencies. The programs have been designed to cover all segments of
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poor population whether skilled or unskilled such as small and marginal farmers, landless labourers, destitute women, disabled, unemployed youth and rural artisans etc. About 1417047 beneficiaries have been provided with Tk. 14469.90 million since its inception (upto 30 September, 2008). Considering the needs of the target groups since late seventy`s BKB has been implementing a series of Micro-Credit programs out of which 10 programs have recently been completed and 31 programs are in operation at present. These diversified micro-credit programs are being implemented by BKB to achieve the following objectives:

To create employment opportunities through income generating activities. To empower the rural women to establish their own rights. To improve the living standard of the rural people. To alleviate poverty of the poor people. To make easy access to institutional credit facilities and resources. To mobilize rural savings. To make optimum utilization of rural resources. To engage inactive human resources of the rural areas in productive/economic activities. To engage rural people in development process of the country. To eliminate exploitation done by the money lenders.

A Salient feature of BKB`s ongoing Micro-Credit Programs under poverty alleviation: Credit program for the landless and Marginal Farmers: This program has been launched with BKB`s own fund in 1992-93 financial year through its all branches. Landless and marginal farmers get short term credit under this program. Persons/ Peasants having not more than 1.50 acres of cultivable land and annual income of highest Tk 25000/- are eligible for getting credit under this program. After formation of groups and obtaining training the group members get credit without any collateral security. But they have to hypothecate the goods and assets created by the loan. In lieu of collateral they have to take responsibility as guarantor for the recovery of loan within the group. The present Interest rate is 10%. 52 equal weekly installments are fixed and the recovery will be taken place accordingly. About 474181beneficiaries have been provided with Tk. 4698.40 million since its inception (up to 30 September, 2008). Beef fattening Joint Program: This is a bank`s own financed program. Bank launched this program in 1994. The main objective of this program is to fill up the deficiency of animal protein in the country as well as creation of selfemployment for poor and unemployed people living in the villages. Under this program a person can get a loan amounting up to Tk.25000/- for 5 calves against guarantee of a bank official / local elite. The rate of interest is 10%. The loan is to be repaid with interest in one installment within one year. About 89025 beneficiaries have been provided with Tk.1481.30 million since its inception (up to 30 September, 2008). Swanirvar Credit Program: Bank has been implementing swanirvar credit program without collateral security since 1979. Employment creation for the landless and marginal farmers, increasing their standard of living, creation of social and ethical values, eradication of illiteracy, providing creation of health and family planning services etc are the objectives of this program .The beneficiaries under the program are landless, rural poor & destitute having maximum 0.40 acres of cultivable land and maximum annual income is Tk.20,000/-. 212 branches of 31 districts (regions) are involved in this program. The beneficiaries have to form groups (each Consisting 5 members) and a center (consisting 5 groups). BKB & Swanirvar
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Bangladesh is operating this program jointly. The credit is collateral free but Group guarantee for each other is needed. Maximum loan amount is TK.15,000/- per beneficiary. It is Short term credit (to be recovered in 52 equal weekly installments within one year). Disbursement of loans to the beneficiaries is made duly recommended by Swanirvar staffs. Swanirvar Bangladesh is responsible for group formation, giving training to the beneficiaries and recovery of loan. Rate of Interest is 16%. (6% Service charge for Swarnivar, 10% Interest for BKB). About 274115 beneficiaries have been provided with Tk.1577.80 million since its inception (upto 30 September, 2008). Small Farmers & landless Labourers Development Project (SFDP): This project is being implemented jointly by BARD & BKB from 1995 through 21 branches under 6 Regions (districts) of Bangladesh Krishi Bank. The objectives of the project are to increase production, employment creation and increase income of the small landless farmers & labourers through formation of small groups, generation of own capital and provision for capital support for undertaking various income generating activities. Under this project Tk. 19.80 million has been disbursed to 2710 beneficiaries on average per year and recovered Tk. 15.80 million per year. Cumulative recovery rate is 97%. The beneficiaries under this program are small farmers having maximum 0.50 acres of cultivable land & landless labourers having 0.51-1.50 acres of cultivable land. Selection of target family, group formation, and supervision of group activities, supervision of loan utilization and all kinds of field works are done by BARD. Opening of group account, sanctioning and disbursement of loan & maintaining savings account etc. are done by BKB. Bank provides credit from its own source after formation 5-10 members group. The loan is collateral free, but assets and goods derived from credit are hypothecated. Lien of group savings & group pressure replace the collateral. Loan is disbursed for any recognized items which is accepted by bank & identified by members of group. Interest rate is 15% of which 10% for BKB, 5% for BARD. Chairman or secretary of the group recovers the loan. Loan is recovered in weekly/fortnightly/monthly installments within maximum 18 months. About 28266 beneficiaries have been provided with Tk.215.20 million since its inception (up to 30 September, 2008). This program terminated on 30th June, 2006. South Asia Poverty Alleviation Program: This program was launched on the basis of Dhaka conference of SAARC countries in 1993. This is a joint venture program with UNDP. But it is banks own financed program. UNDP organizes the beneficiaries, trains them and recommends the loan. The responsibility of credit realization lies with the managers of village organizations. This is an area based credit program. Only Kishorganj ( a district) sadar upazilla is the command area of this program. The maximum credit limit is Tk. 25000/- per beneficiary. 25 beneficiaries form a group. Rate of interest is 15% (BKB 10% and the manager of village organization 5%).The loan is collateral free and is recovered in weekly installments within one year. About 53723 beneficiaries have been provided with Tk.445.70 million since its inception (up to 30 September, 2008). United Nations Capital Development Fund (UNCDF): This program started in 1983 with the objective of financing rural & cottage industries. Now it is running on revolving fund. This is a joint venture program with BKB, BSCIC & UNCDF. UNCDF provides one third of fund while BKB provides two thirds. BSCIC selects borrower and provides extension services. The program covers 29 districts. BKB provides credit from joint fund and maintains account. Rate of interest is 10% - 14%. This is a collateral free credit. Raw materials, finished goods and capital asset created out of credit are kept as hypothecation against credit provided to the beneficiaries. About 24837 beneficiaries have been provided with Tk.136.70 million since its inception (up to 30 September, 2008). Rural Women Employment Creation Project ADB Loan No 1067 BAN (SF): This is a joint project started in 1993 for experimenting with the idea of co-participation of government Organizations (GOs) and Non-Government Organizations (NGOs) aiming at employment creation for poor women in the rural areas. Department of women Affairs (DWA), 19 NGO`s in 12 thanas (upa-zilla) and BKB jointly implementing the project. NGOs organizes individuals into groups, train them under the
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supervision of DWA and recommends for credit funded by ADB. This is also a collateral free credit. Interest rate is 12%. About 67402 beneficiaries have been provided with Tk.154.70 million since its inception (upto 30 September 2008). This program terminated on 30th June, 2007. BKB-NGO Micro Credit Program: This program is a replication of Rural Women Employment Creation Project (RWECP).NGOs organizes individuals into groups, provides them training and recommends for credit. BKB provides credit from its own fund. This is also a collateral free credit. Interest rate is 12.5%. About 16636 beneficiaries have been provided with Tk. 136.00 million since its inception (upto 30 September 2008). Credit under National Poverty Alleviation Program through Goat Rearing: This program has been introduced in 2002 aiming to eradicate poverty through goat rearing. Directorate of livestock provides with extension service while BKB provides credit from its own fund for a period of 4 years term. This is a collateral free credit provided from all branches of BKB. Interest rate is 10%. About 24354 beneficiaries have been provided with Tk. 236.50 million since its inception (up to 30 September 2008). Milking Cow Credit Program for the Women: The program launched in the year 1997. The main objectives of the program were proper utilization of the unemployed women increasing milk production and helping the up-lift of the condition of the women folk. Under this program one village of a branch area is selected. One woman from each family of the selected village is eligible to get this credit facility. An applicant gets maximum Tk. 10,000/- to purchase a calf. Interest rate is 8%. The loan is realized within one year in weekly installments. This is a collateral free supervised credit. An officer or field worker of the branch is engaged in supervising the credit under the direct control of the branch manager. Livestock officers help the beneficiaries in treatment and rearing the cow. About 612 beneficiaries have been provided with Tk. 8.20 million since its inception (up to 30 September 2008). Special Micro Credit Program for the Disabled: This program has been introduced in 2002 aiming to income generation & development of socioeconomic condition through employment creation for the disabled persons. Department of Social Welfare and Disabled Foundation provide extension services. This is a collateral free credit provided from all branches of the bank. Interest rate is 10%. About 530 beneficiaries have been provided with Tk. 5.60 million since its inception (up to 30 September 2008). Monipuri Small Traders Credit Program: This program have been introduced in 2003 aiming to provide working capital to handloom industry operated by the Monipuri women living in the greater Sylhet areas. Bank officials organize the Monipuri women having handloom and training/education/experience of operation. Eligible women are organized into 5 member groups. This is also a collateral free credit provided from the bank`s own fund. Interest rate is 10%. About 684 beneficiaries have been provided with Tk.21.50 million since its inception (up to 30 September 2008). Special Credit Program for the Rakhains under the district of Cox`s Bazar: This program has been launched in 2003 aiming to provide working capital credit for producing handloom and cottage Industrial products and marketing. The loan is disbursed to the Rakhain community living in the district of Cox`s Bazar. Bank officials organize Rakhains into 5 member groups. This is a collateral free credit program from banks own fund. Interest rate is 10%. About 469 beneficiaries have been provided with Tk. 15.10 million since its inception (up to 30 September 2008). Tree Plantation Programs: In 2002 and 2003 BKB has launched 8 Tree Plantation Programs-viz.:

All types of tree nursery including herbal

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Horticulture Development Fruit and forest tree plantation Bamboo production Herbal gardening Coconut gardening Patipata (a plant used in making mat) production Cane production

These programs have been introduced in all branches of the bank to grow more and more trees aiming to eradication of poverty, proper use of fallen land, increase of tree production facilitating herbal treatment and development of environment. Credit under these programs is collateral free up to Tk. 25,000/-. Interest rate is 8%. About 20043 beneficiaries have been provided with Tk. 203.50 million since its inception (up to 30 September 2008). Establishment of Breeding Farm of Black Bengal Goat Program: This program has been taken to ensure supply of kids of Black Bengal Goats in order to support the national program of poverty alleviation through goat rearing. Under this program a farm comprising 50 she goats is considered as a small farm and a farm comprising 51-200 she goats is considered as a big farm. The loan is medium term. Credit limit is Tk. 30,000/- for a small farm consisting of 10 she goats (with a he- goat). This credit limit is calculated for making up goat-shed, purchasing of she-goats & hegoat and initial feed cost. This limit is proportionate for a small farm having up to 50 she-goats. For a medium farm credit limit is to be calculated deducting the cost of goat shed. This cost is borne by the entrepreneur. About 304 beneficiaries have been provided with Tk. 14.60 million since its inception (up to 30 September 2008). Community Based Resource Management Project: This project started in 2003-04 fiscal year. It is a joint venture project of BKB, IFAD and Dept. of LGED of GOB. The project is to be implemented in all of the 10 upa-zillas of Sunamgonj (a district) at 3 phases within 11 years. The project has five components such as: (1) Infra -structure Development, (ii) Development of Fisheries, (iii) Crop and livestock Development, (iv) Grass Roots Institutional Development and (v) Small Credit Bangladesh Krishi Bank deals with ``small credit`` component of the project. LGED organizes the target people into 30 member groups. Bank Provides short and medium term loan. Maximum loan limit is Tk. 14,000/- to each member as short term and Tk. 27,000/- to each member as Medium term. The loan under this project is collateral free. Rate of interest is 15%. 1508 credit organization (each credit organization consists of maximum 30 beneficiaries) have been provided with Tk. 190.35 million since its inception (up to 30 September 2008). Poverty Alleviation through Production and Improvement of Sheep: This is a government directed program which has been launched in the last part of the fiscal year 2004-05. Primarily this is to be implemented throughout the selected 22 upazillas under selected 11 districts of BKB`s jurisdiction. Directorate of livestock provides with extensive services while BKB provides credit from its own fund. Under this program credit amount up to taka 50,000/- is collateral free. Interest rate is 8%. This loan is to be repaid within four years in 6 equal installments including one year grace period. About 360 beneficiaries have been provided with Tk. 3.80 million since its inception (up to 30 September 2008). Credit Programs BKB finances the following 7(seven) priority sectors, namely: Crop
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Fisheries Live Stock Farm and Irrigation Equipment Agro based Industrial Project SME Continuous Loan (Working Capital and Cash Credit) Micro Credit (Small Loan)

Crop Loan Out of total annual allocation of Loan portfolio, 60% is earmarked for Crop financing. The Credit program covers all the seasonal crops produced in the country. The loan is disbursed as per norms set by the Bangladesh Bank. The rate of interest for this sector is 8%. The rate of interest may however, vary from time to time. Both the landowner and sharecroppers are normally the target group for this loan. Marginal farmers are also eligible for the loan. Crop loan is sanctioned on annual basis.

Credit passbook is issued to each borrower.

Fisheries Loan To accelerate fish production BKB provides loan for excavation and re-excavation of ponds, development of marshy lands, establishment of fish hatcheries and new fisheries projects. The Loans are given in the following sub sectors: White Fish Fish culture in existing pond/tank

Fish culture by re-excavation of old/derelict tank/tank Fish culture by excavation of new tank/tank

Shrimp culture (Marine, Brackish water and sweet water Culture) Shrimp culture in traditional system (Bagda or Tiger Shrimp)

Shrimp culture in scientific system Shrimp culture in semi-intensive method Prawn culture in sweet water(Galda)

This loan is given mainly in coastal areas for developed technology based shrimp culture. Fish & Shrimp hatchery (fingerlings production) Fingerlings production in sweet water

Shrimp fingerlings production (fingerlings of commercially profitable technology)

Live Stock Loan Live stock sector plays an important role in the development of agriculture. BKB provides loan for Bullock, Milk Cow, Goatery, Beef fattening and other draft animals. It is basically Medium Term Loan. Beef Fattening Program: With a view to creating self employment for the poor and un-employed people of the country the bank has introduced a new program titled "Beef Fattening".
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Objectives of the program Create self-employment opportunity for poor and un-employed people.

Meet national deficit of animal protein. Bring positive change in the attitude of the people through training. Ensure participation of bank officials in the program and increase their sense of duty and consciousness.

Main Aspects Purely supervised credit.

The bank officials giving guarantee are responsible for recovery of loan. Each borrower will get maximum Tk. 25,000/-for 5 calves ( each Tk. 5,000/-) Loan is collateral free. Repayable within one year.

Continuous Loan: The bank is providing continuous loan for different types of activities as cash credit/working capital loan on short term basis.

Continuous loan is given for processing, preservation and marketing of agricultural products.

Agro Equipment & Farm Machinery Loan With the Changing scenario the traditional agricultural system is being replaced by mechanized one. In order to meet up the changing demand of this sector, BKB offers credit facilities both for production and marketing of different agricultural equipment and farm machinery including irrigation equipment. All sorts of irrigation equipments like LLP, HPTW, STW, DTW are eligible under the sector. Agro Processing Industries As an agricultural country different types of crops and fruits are produced here. Moreover recently sectors like poultry, dairy, fisheries have flourished enormously. There is enough scope for export of these items through processing mechanism and value addition. The agro based industries are Poultry farm, Dairy farm, Food processing plant, Fish freezing/Processing Industries etc. Reputed local businessmen and prospective foreign investors are highly acceptable and encourage to the bank for establishment of any sorts of agro-processing industries in Bangladesh. Project under joint venture as well as direct foreign investors are specially taken care of. Poultry farm Poultry broiler farm

Poultry layer farm Poultry (broiler/layer) hatchery Poultry farm related/dependent project

Dairy farm Milk production Milk collection, milk processing (ghee, butter, pasteurized milk etc production) and marketing Food processing project Fruit based food preparation, processing, preservation & marketing

Flour, bread & biscuit vermicelli, noodles, chips., chanachur, corn flakes, potato flakes, French fry, popcorn, baby food, starch etc
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Juice, jam, jelly, tomato ketchup, sauce, pickle etc production & marketing Spices processing Different types oil mill, dal mill etc Small processing industry at farm level Dehydrated fruit canning, packaging, preservation & marketing

Exportable items Fish processing

Freezing plant Dehydration plant (for dry fish processing) Salting and Dehydration of Jew fish. Leather process & leather based products item Vegetables

Import substitutes Leather and Leather Goods

Fish net/net thread production Garments accessories (garments allied industry like washing plant, packaging etc) Organic fertilizer, mixed fertilizer, urea super granules etc production & marketing Insecticides production Bio-pesticide, neem based pesticide production

SME financing by Bangladesh Krishi Bank Bangladesh Krishi Bank has recently introduced the SME policy strategies and financing norms in accordance with the industrial policy 2005 and Bangladesh Bank's Prudential Regulation to assist in the achievement of Millennium Development Goals (MDGs) set by the government. BKB started SME financing since October, 2007. Booster Sectors of Small and Medium Enterprise (SMEs) is: Electronics & Electrical

Software Development Light engineering and metalworking Agro-processing/agri-business/plantation agriculture/specialist farming/tissue-culture and related business. Leather making and leather goods Knitwear and readymade garments Plastics & other synthetics Healthcare and diagnostics Educational Services Pharmaceuticals/cosmetics/toiletries Electronics & Electrical
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Fashion-rich personal effects, wear and consumption goods

Credit Facility: Small Enterprises : Tk. 2.00 lakh to 50.00 lakh

Medium Enterprises : Tk. 51.00 lakh to 500.00 lakh

Interest Rate: Small Enterprises : 12.50%

Medium Enterprises : 12.50% Working Capital : 13.00%

Repayment: EMI (equal monthly installment) maximum for 5(five) years and working capital for 1(one) year.

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Rajshahi Krishi Unnayan Bank

Rajshahi Krishi Unnayan Bank is a state-owned bank in Bangladesh with regional approach. The bank emerged as the government's plan of intensive care to agriculture of Rajshahi division (Rajshahi and Rangpur Division at present) providing livelihood to 35 million people of the area. The region is less developed compared to other parts, yet full of potentials in agriculture. Rajshahi Division (Rajshahi and Rangpur Division) characterized by its surplus food grain production is popularly called the "granary of the country". Besides catering to agricultural credit, RAKUB, as it is acronymed, renders deposit banking services through all the 365 branches. The headquarters of the bank is stationed at Rajshahi city, some 270 kilometer to the north of Dhaka. RAKUB Activities Functions: As the largest development partner in the northwest region RAKUB aims at overall development of farmers and all the sectors and sub-sectors of agriculture in this region. The bank also performs functions like financing agri-business and agro-based industries and poverty alleviation programs. Capital: Authorized capital of the bank amounts to Tk 7500 million. Paid-up capital amounts to Tk 5700 million and reserve Tk 208.50 million as on 25 April 2010.
RAKUB extend credit facilities for

Crop production, Livestock & Poultry, Farm machinery, Fishery, Agro-industries and agri-business, Continuous credit, Poverty Alleviation and more. Establishment Rajshahi Krishi Unnayan Bank (RAKUB) was established by the President's Ordinance No. 58 of 1986 with the aim of providing institutional agricultural credit for optimum utilization of agricultural potentials of Rajshahi Division. Taking over the branches and offices along with assets and liabilities of the Bangladesh Krishi Bank within Rajshahi division, the bank started functioning on 15 March 1987. Management The Board is vested with the responsibility of formulation of policy in line with attainment of growth in agriculture and economic development of the region through agricultural credit support. The Board of Directors is constituted by seven members, all appointed by the government. Besides, for emergency decisions there is an executive committee constituted of the Chairman of the Board and two other members: the Managing Director and one of the Directors elected by the Board. The Managing Director is the chief executive of the bank. Organizational Structure The head office is stationed at divisional headquarters city of Rajshahi. The branches network of the bank comprises 357 branches including one in Dhaka. Eighteen zonal offices stationed in district headquarters control branches under them. The General Manager's office at Rangpur oversees activities of 12 zones of greater Rangpur, Dinajpur and Bogra districts. There are 18 independent regional audit offices for conducting regular audit in branches and zonal offices. The only training institute of the bank is situated at Rajshahi. There are 3,464 employees of the bank of which 1,525 are officers and 1,939 other staff. The bank had been earning profit before introduction of Financial Sector Reforms Program (FSRP) in 1991. RAKUB like other banks in the country introduced FSRP in 1991. FSRP made it mandatory for the banks to classify advances and make adequate provision against classified advances. Thereafter it became a regular feature for RAKUB to post sizable amount of loss at the annual closings of accounts. Various
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measures were tried to find a way out. At last the bank got the breakthrough in 1999. A comprehensive "RAKUB Reforms Program" was launched and it brought the much awaited profit by the end of financial year 1999-2000. The reform program was initially meant for five years (1999-2004). RAKUB Perspective Plan 2001-2010 Based on a mid-term evaluation of the ongoing reform program the Bank launched a long term perspective plan spanning the period from 2001 through 2010. The program envisions offsetting Tk 1750 million accumulated loss and turn to be a profit making public enterprise in real terms by the year 2010. RAKUB has been earning profit for the last three consecutive financial years: Tk 21.40 million in 19992000, Tk 24.30 million in 2000-2001 and surpassing all past records Tk 153.40 million in 2001-2002. Salient features introduce pragmatic targets of loan disbursement, recovery and deposit mobilization reduce classified loan from 54 to 21 per cent earn profit by Tk 180 million per year on an average and gain a real profit of Tk 30 million in the terminal year (2010) put emphasis on good investment, effective loan recovery, human resource development, realizing arrears and effective fund management ensure evaluation of the performance in each three years keep watch on individual income and expense items for the sake of increasing income and reducing expenditure introduce MBO (management by objective) in headquarters and each tier of field offices for increasing operational efficiency and affirming internal control Perspective Plan activities of RAKUB (2001 thro' 2010)
Financial year 2000-01 Base year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 4700 5410 6060 6660 7100 7740 8440 9200 10000 4700 5010 5510 6010 6610 7200 7920 8720 9500 1680 1680 1130 1210 1290 1380 1440 1520 1600 3020 3960 4380 4800 5320 5820 6480 7200 7900 7610 7080 6660 6260 5940 5650 5420 5200 5000 6450 8100 9580 11110 12650 14240 15870 17360 18910 14060 15180 16240 17370 18590 19890 21290 22560 23910 54 47 41 36 32 28 25 23 21 2010 2400 2600 2900 3300 3800 4400 5100 6000 9050 11450 14050 16950 20250 24050 28450 33550 39550 1460 1500 1570 1640 1720 1810 1880 1960 2040 1310 1340 1400 1460 1530 1600 1660 1720 1780 150 160 170 180 190 210 220 240 260 (1600) (1440) (1270) (1090) (900) (690) (470) (230) + 30 Loan Loan recovery CL Disbursement target recovery target target 4200 4200 1680 UCL recovery target 2520 Outstanding loan CL UCL Total 7850 5090 12940 CL% Deposit Deposit collection balance target 61 1220 6730

(Million Tk)
Income Expense Profit Cumulative (loss)/ balance 1130 1110 20 (1750)

Estimated annual growth rate loan disbursement: 8 per cent loan recovery: 9 per cent recovery of classified loan: 6 per cent recovery of unclassified loan: 10 per cent deposit mobilization: 13 per cent
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income: 5 per cent profit: 7 per cent

Strategies implement the action program on MBO (management by objective), MBP (management by participation), PARL (participation of all in recovery of total loans) and strategic planning through bottom up approach arrange employment of adequate manpower for carrying out additional activities increase bank's tangible assets and make proper use of unutilized land properties of the bank enhance authorized capital and paid up capital to a satisfactory level undertake an efficient fund management campaign open new branches in potential areas increase bank's income through effective commercial banking endeavors increase foreign exchange business/increase remittance speed up computerization process delegation of certificate power to the managers manpower development through domestic/overseas training/study tours of bank officials/staff motivation through massive training/workshop in grassroots level MBO (management by objectives) MBO is a comprehensive management system based on measurable and participatively set objectives. It has been introduced in the bank at the outset of 2002-03 with a view to increasing the operational efficiency and affirming internal control of the bank which is a prerequisite for transparent operation and accountable administration. Farmers and entrepreneurs of the region are expected to have easy access to credit as a result of efficient bank management. An aiding factor to the Perspective Plan

Aiming at achievement of annual targets of disbursement and recovery of loans, deposit mobilization and profit maximization through boosting activities, RAKUB has introduced PARL (participation of all in recovery of total loans) in 2001-2002.

Objectives recovery of loans from top 20 defaulters at all levels through committees headed by high officials

implementation of the slogan "2001-2002: the year of recovery of classified loans" implementation of the slogan "2002-2003: the year of increasing profit" implementation of action plan for recovery of classified loan and profit maximization implementation of action plan for quick disposal of certificate cases and money loan cases holding monthly meetings of task-force for settlement of court cases implementation and modification of ongoing MIRACLE taking care of time-barred loan cases affected by law of limitation formation of PEC (project evaluation committee) and its implementation in the field levels organizing camps and greater camps for spot recovery of loans introduction of mobile teams to supervise field activities crash program for profit earning holding grassroots level workshops with the participation of managers and field workers.

Office automation
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E-bank has been pursuing a five-year plan (2006-2010) of computerization through its computer department inaugurated on 8 September 2005. Training programs have been taken up for increasing computer literacy especially among junior and mid-level bank officials. The reform programs aim at raising the level of efficiency through increased use of computers. Credit Programs of RAKUB Crop Production: The Bank finances for production of all the summer and winter crops, horticulture & nursery etc. High yielding and high value crops and seeds production is particularly encouraged. Crop sub-sector alone occupies 60% of the lending budget of the Bank. Livestock and Poultry: The Bank extends credit facilities for systematic and commercial livestock farming which includes dairy, beef-fattening, poultry, raising and setting up of hatcheries which in turn is expected to increase production of milk, meet and eggs, the main source of protein. As the marginal and small farmers access to mechanized farming is restrained by want of cash and collateral, the bank has a big lending window of draft animals for cultivation of land, transportation of agricultural produces and other farming activities. Fishery: The Bank attaches importance to use scientific method and modern technology in fish cultivation. It extends adequate credit support for excavation and re-excavation of ponds, round the year cultivation of species, which have rapid growth, cultivation of sweet water prawn and other fishes. The Bank makes use of expertise of the concerned government agencies for bringing more ponds/water bodies under cultivation and increasing productivity. Irrigation Equipment & Farm Machinery: In today's technology-based farming of high yielding and highvalue crops, mechanization of cultivation, irrigation and pest-control is indispensable. To cope with the situation financing power tillers, tractors, tube wells, power-pumps, fertilizer and pesticide application devices. Agro-industry & Agri-business: The operational jurisdiction of the Bank is noted for its agricultural potentials. The Bank pays due importance to setting up agro-industries for preservation, processing and marketing of agricultural produces having backward linkage with basic sub-sectors of crop, fishery, livestock and forestation. Manufacturing and marketing of agricultural implements are also encouraged. Agro-industries for import sub situation are specially encouraged by offering moderate terms of financing. Poverty Alleviation: The poverty-stricken area of north-west Bangladesh is characterized by comparatively lower rate of savings, inadequate capital accumulation and slim employment opportunities. The existing collateral-based banking system is also of little use in respect of extending support to the millions of landless people. To address the problem, the Bank has been financing collateral-free microcredit for income and employment generation through its poverty alleviation credit programs. Loans for Entrepreneurs We have a network of 357 branches. Excepting one branch at Dhaka the rest are spread out over 16 districts of northwest Bangladesh. Feel free to step into the branch nearest to the proposed site of your project. All of our zonal & regional offices (located at district headquarters) are equipped with list of Guideline for Entrepreneurs. Currently available credit lines: Equity & Entrepreneurship Fund (EEF) Small Enterprises Development Credit Project (SECP) Northwest Crop Diversification Project (NCDP) Selected Projects from credit programs of RAKUB
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Expanded Maize Cultivation Maize cultivation program was introduced in the vast char land of Lalmonirhat district during 1999-2000. This special program has created positive socio-economic impact on the people of the region. The program was also introduced in Sherpur and Dhunat upazillas of Bogra district where vast area of land was brought under maize cultivation. The bank has taken an initiative to introduce special credit program for establishing maize processing industry, chatal and godown. Papaya Farm in 50 acres of land A project named 'Ma-Moni Krishi Khamar' in Iswardi upazilla under Pabna District, financed by RAKUB for cultivation of papaya and other crops has been running successfully. The pioneer project has inspired other farmers in mixed farming. Pineapple and Vegetable Farming in 33 acres 'Bokchi Krishi Khamar' established in Rangpur District under financial assistance of RAKUB for production of pineapple, vegetable and spices is also running successfully. The complex also accommodates poultry and dairy farms. Nursery for Medicinal plant and Orchid Rajshahi Krishi Unnayan Bank has been extending credit for nursery of medicinal plants, growing orchids and trees for fruits and timber with a view to making the tree plantation program of the government a success one and creating self-employment opportunities for the less educated and unemployed youths. The bank has worked out well-defined policy for establishing nursery. RAKUB Milk Village The bank continued financing under the special lending program entitled 'RAKUB Milk Village' in eight villages of Mithapukur upazilla under Rangpur district. Aim of the program is to develop a concentrated milk area with a view to facilitating increased milk production. The program maintains a satisfactory rate of loan recovery. Small Scale Poultry The bank continued providing financial support for small-scale poultry farming. The program has immensely inspired the unemployed youth for obtaining self-employment. Other Programs RAKUB self-help credit program (RSCP) RAKUB has been playing an important role in implementing programs for poverty alleviation in the northwest region. RAKUB self-help credit program (RSCP) is one of the important programs amongst eight ongoing poverty alleviation programs of the bank. Recovery of loans is satisfactory. New special programs has been launched in joint collaboration with government agencies, autonomous bodies and NGOs for production of cash crops considering climatic condition of the area under the banks jurisdiction. Some of the programs are cited below: Potato Seeds Production Program The bank continued its program with BADC for production of potato seeds under contract growers system. Under the program the bank extends credit facility for seeds, fertilizer and pesticide while BADC provides technical know-how. BADC procures seeds produced by the growers. This program covers about 30 percent of the total potato seeds produced by BADC at national level. Cotton Production Program

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An MOU was signed between the bank and Cotton Development Board (CDB) in the year 1999-2000 for a five-year term for increasing production of cotton in Rajshahi division. Under the MOU, RAKUB disburses credit to the farmers selected by CDB in the select upazillas of 15 Districts. The program has opened opportunity for proper utilization of vast area of fallow land as cotton can be produced in comparatively less fertile soil. Fresh-water Shrimp Culture The MOU signed between RAKUB and North-West Fisheries Expansion Project, Parbatipur, in 19992000 was in effect during the year also. The program aims at financing shrimp mixed farming in all 58 upazillas of greater Rangpur and Dinajpur districts. The North-West Fisheries Project-2, Parbatipur identifies target farmers, supplies fingerlings & imparts training to the farmers and the bank employees as well. Fisheries & Live Stock Department-RAKUB Joint Program Two separate MOUs of five-year duration each signed during the year 1999-2000 between Rajshahi Krishi Unnayan Bank and Department of Fisheries and Livestock of the government for fisheries and livestock extension service through private sector entrepreneur development. The program aims at contributing to national economic growth by means of increased fish and livestock production and creating job opportunities for landless, marginal and small farmers and unemployed youth. Goat- rearing Program In line with government policy the bank introduced a semi-intensive black Bengal goat-rearing program during 2001-2002. The main objective of the program is to create self-employment opportunities for the landless unemployed youth, marginal and small farmers. This program envisages meeting the demand for protein and at the same time earning foreign exchange through export of goatskins. The bank has a plan to establish at least three goat-rearing farms in each district. The bank provides collateral free credit amounting up to Tk 15,000 for alleviation of poverty. A special program has also been taken to establish at least one goat-breeding farm (pure breed) in each upazilla to meet the demand of healthy goat-kids for rearing at individual and farm level. RAKUB has extended credit for goat breeding farms in some regions including Gaibandha. Pally Progati Reen Prakalpo The government has undertaken decision to implement a program named Pally progati reen prakalpo for poverty alleviation. As per an MOU signed on 25-08-2002 between RAKUB and Bangladesh Rural Development Board (BRDB) under supervision of the Rural Development and Cooperatives Department of the government, RAKUB will extend credit amounting Tk 310 million during the period from 2001-02 to 2004-05. The bank will carry out lending activities in 127 unions under its jurisdiction. The bank authority has already circulated policies for lending, recovery, banking operation and accounting system for the said program. Credit for Small Scale Tea Plantation An MOU was signed between RAKUB and Bangladesh Tea Board (BTB) on 7 June 2003 for extension of Tea cultivation in 300 hectares of land initially in Tetulia under Panchagarh district at the cost of Tk 22.40 million. RAKUB extends credit support where as BTB provides technical assistance under the program. Area of tea cultivation will be expanded gradually. RAKUB has already worked out policy for financing tea plantation. The program was solemnized by delivering credit to 5 farmers in June 2003. The program has ushered in a new era of tea plantation, which is expected to create a far-reaching impact on the national economy. Agro-based Industries

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Reckoning the scope of exploitation of the potentials of agro-based industries in the northwest region RAKUB has strengthened efforts of financing agro-based industries, one of the seven priority sub-sectors of investment under RAKUB reforms program. The northwest region is advantageously placed in respect of cheap and high-quality raw materials for agro-based industries. Suitable communication network for processing and marketing of agricultural produces in the region is an added facility of this region. The bank has taken pragmatic steps for attracting entrepreneurs for establishing agro-based industries in this region. An entrepreneur development cell has been formed in the banks Head Office to provide advisory services to the entrepreneurs. Tetulia Eggs Ltd, Panchagarh The bank has disbursed Tk. 48 million against sanction of Tk. 50.80 million in 1999-2000 for establishing a poultry farm named Tetulia Eggs Ltd at Tetulia upazila of Panchagrh district. The 100 million Taka project having capacity of producing 96,000 eggs per day (one lac birds) is one of the largest farms in Bangladesh. The profitably run project has been repaying as per schedule. Northern Hatchery Ltd., Bogra Considering high demand of day old chicks (DOC) the bank sanctioned a loan amount of Tk. 61.50 million to Northern Hatchery for establishing a large modern broiler breeder farm cum hatchery at Betgary under Sadar Upazilla of Bogra district. Total cost of the project is Tk. 123.10 million out of which RAKUB has disbursed Tk. 61.50 million. There are 17,600 birds in growing shed and 32,200 birds in the layer shed. 230,400 eggs can be hatched each time in two incubators of the project. The project started production in 2002 and is running profitably. Installment of banks loan is paid in due time. These two poultry farms established by RAKUBs financial assistance are playing pioneering role in development of poultry industries in this region. South Pole Cold Storage Private Ltd., Joypurhat South Pole cold storage was established at Bairagihat under Kalai upazilla of Joypurhat district with financial assistance of Al-Baraka Bank. Later on as per prayer of the company RAKUB sanctioned Tk. 34.17 million to the project. Now this is RAKUBs project since loan of Al-Baraka Bank is fully repaid. The 8,000 metric ton capacity cold store has gone in to operation in 2002. Bashar Cold Storage Ltd. Rajshahi Bashar Cold Storage Ltd. financed by RAKUB was established at Chanpara under Bhabanigonj upazilla of Rajshahi district and started preserving potatoes in 2003 on experimental basis. Total cost of the project was Tk. 58.35 million out of which RAKUB advanced Tk. 30.40 million as credit. Capacity of the project is 6,500 metric ton. Some more cold storages having capacity varying from 10,000 to 12,000 metric ton have been established in this region under financial assistance of RAKUB. This way RAKUB is playing a vital role in preservation of potatoes in the north-west region. Foreign Aided Projects Two foreign aided credit programs namely SECP (Small Enterprises Development Credit Project) & NCDP (North-West Crop Diversification Project) were introduced during the year 2000-2001. Brief description of progress and development of the programs during 2002-2003 is given below: Small Enterprises Development Credit Project (SECP) with NORAD The bank got approval of 50 million Norwaygian Croner (Tk. 318.30 million) for establishment of a project named Small Enterprises Development Credit Project (SECP). The project will be implemented in fifty upazilas of greater Rajshahi Bogra and Pabna districts of north-western region of the country to establish small enterprises and also to develop the existing ones. There is a plan to cover the whole Rajshahi Division in the second phase. The five-year project (2002 to 2006) was approved by the ECNEC
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on 24-11-2002. The project will create 68,000 new jobs through entrepreneurship development and income generating activities. Tk. 15,000 to Tk. 75,000 will be disbursed as collateral-free credit under the project where 20 percent of total credit will be disbursed to women entrepreneurs. 22,700 people will get training on entrepreneurship development and 2,300 people skill development training through the project. Apart from this 23,000 entrepreneurs will get one day orientation training while concerned branch managers and project officers will be offered special training. Entrepreneurship development training program started in the year 2002-03. One day orientation training was imparted to 380 entrepreneurs amongst whom 175 entrepreneurs got entrepreneurship development training till 30-06-2003. North-West Crop Diversification Project (NCDP) The bank has undertaken a project named North West Crop Diversification Project (NCDP) under financial assistance of Asian Development Bank. The Project is under implementation by the Directorate of Agricultural Extension (DAE) under the Ministry of Agriculture in sixty upazilas of sixteen districts of Rajshahi division. The project aims at developing socio-economic conditions of the small and marginal farmers through production of high value crops and expansion of agri-business. Four reputed NGOs (BRAC, PROSHIKA, GKF & RDRS) will disburse loans for high value crops production and RAKUB will disburse loan for agri-business development. Around 160,000 farmers trained by NGOs will avail the loan facility. Name of Project Fayez Uddin Cold storage, Chakdeb, Naogaon Jyoti Cold storage, Deluabari, Naogaon A Haque Himagar, Old Station Road, Kurigram Mukta Himagar Pvt. Ltd. Fulbari Cold storage, Dinajpur R & R Potato Cold Storage, Bogra Punat Cold Storage, Joypurhat Homeland Cold storage, Rangpur Shapla Cold storage, Jaigirhat, Rangpur North Pole Cold storage, Molamgari, Jpypurhat South Pole Cold storage, Molamgari, Jpypurhat Jamuna Seeds, Rajshahi Selected Projects Financed by RAKUB Contact Name of Entrepreneur Phone Md. Abdul Jalil, Managing Director Nuruzzaman Peter, Managing Director Ponir Uddin Ahmed, Managing Director Sayed Ali, Managing Director Dr. Md. Mizanur Rahman Shawkat Ali Bhuyan, Md. Ibrahim Hossain, Managing Director Humayun Kabir, Managing Director Nazrul Islam, Managing Director Fazle Rabbi, Managing Director Fazle Rabbi, Managing Director Mosharaf Hossain, Managing Director 0721762199 058161673 055189103 01711527066 01711532192 01711702353 051-66217 052189014 01711530142 01711530142 Year of establishment 2001 1996 2001 1981 2002 1996 2004 1997 1999 1997 2004 2005 Amount Sanctioned Tk 54.33 million Tk 29.81 million Tk 37.37 million Tk 34.60 million Tk 48.13 million Tk 75.82 million Tk 73.26 million Tk 37.96 million Tk 34.27 million Tk 10.70 million Tk 36.68 million Tk 114.24 million
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Grameen Bank
Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of "Grameen Bank" and its Managing Director, reasoned that if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, "these millions of small people with their millions of small pursuits can add up to create the biggest development wonder." As of May, 2011, it has 8.36 million borrowers, 97 percent of whom are women. With 2,565 branches, GB provides services in 81,379 villages, covering more than 97 percent of the total villages in Bangladesh. Grameen Bank's positive impact on its poor and formerly poor borrowers has been documented in many independent studies carried out by external agencies including the World Bank, the International Food Research Policy Institute (IFPRI) and the Bangladesh Institute of Development Studies (BIDS). A Short History of Grameen Bank The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University of Chittagong, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor. The Grameen Bank Project (Grameen means "rural" or "village" in Bangla language) came into operation with the following objectives: extend banking facilities to poor men and women; eliminate the exploitation of the poor by money lenders; create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh; bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves; and reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income".

The action research demonstrated its strength in Jobra (a village adjacent to Chittagong University) and some of the neighboring villages during 1976-1979. With the sponsorship of the central bank of the country and support of the nationalized commercial banks, the project was extended to Tangail district (a district north of Dhaka, the capital city of Bangladesh) in 1979. With the success in Tangail, the project was extended to several other districts in the country. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. Today Grameen Bank is owned by the rural poor whom it serves. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government. Grameen Bank at A Glance (May, 2011) 1.0 Nobel Peace Prize, 2006 October 13, 2006 was the happiest day for Bangladesh. It was a great moment for the whole nation. Announcement came on that day that Grameen Bank and I received the Nobel Peace Prize, 2006. It was a sudden explosion of pride and joy for every Bangladeshi. All Bangladeshi's felt as if each of them received the Nobel Peace Prize. We were happy that the world has given recognition through this prize, that poverty is a threat to peace. Grameen Bank, and the concept and methodology of micro-credit that it has elaborated through its 30 years of work, have contributed to
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enhancing the chances of peace by reducing poverty. Bangladesh is happy that it could contribute to the world a concept and an institution which can help bring peace to the world. Following is a brief introduction to Grameen Bank. 2.0 Owned by the Poor Grameen Bank Project was born in the village of Jobra, Bangladesh, in 1976. In 1983 it was transformed into a formal bank under a special law passed for its creation. It is owned by the poor borrowers of the bank who are mostly women. It works exclusively for them. Borrowers of Grameen Bank at present own 95 percent of the total equity of the bank. Remaining 5 per cent is owned by the government. 3.0 No Collateral, No Legal Instrument, No Group-Guarantee or Joint Liability Grameen Bank does not require any collateral against its micro-loans. Since the bank does not wish to take any borrower to the court of law in case of non-repayment, it does not require the borrowers to sign any legal instrument. Although each borrower must belong to a five-member group, the group is not required to give any guarantee for a loan to its member. Repayment responsibility solely rests on the individual borrower, while the group and the centre oversee that everyone behaves in a responsible way and none gets into repayment problem. There is no form of joint liability, i.e. group members are not responsible to pay on behalf of a defaulting member. 4.0 97 per cent Women Total number of borrowers is 8.36 million, 97 per cent of them are women. 5.0 Branches Grameen Bank has 2,565 branches. It works in 81,379 villages. Total staff is 22,133 6.0 Over Tk 639 billion Disbursed Total amount of loan disbursed by Grameen Bank, since inception, is Tk 639.78 billion (US $ 10.76 billion). Out of this, Tk 568.36 billion (US $ 9.54 billion) has been repaid. Current amount of outstanding loans stands at TK 71.42 billion (US $ 980.78 million). During the past 12 months (from June10 to May'11) Grameen Bank disbursed Tk. 102.27 billion (US $ 1450.31 million). Monthly average loan disbursement over the past 12 month was Tk 8.52 billion (US $ 120.86 million). Projected disbursement for year 2011 is Tk 110.00 billion (US$ 1557.63 million), i.e. monthly disbursement of Tk 9.17 billion (US $ 129.80 million). End of the year outstanding loan is projected to be at Tk. 78.00 billion (US $ 1105 million). 7.0 Recovery Rate Over 97 per cent Loan recovery rate is 97.15 per cent. 8.0 100 per cent Loans Financed From Banks Deposits Grameen Bank finances 100 per cent of its outstanding loan from its deposits. Over 56 per cent of its deposits come from banks own borrowers. Deposits amount to 144 per cent of the outstanding loans. If we combine both deposits and own resources it becomes 159 per cent of loans outstanding. 9.0 Borrower-Deposits Keep Growing Besides building financial strength of the poor women by encouraging them to build up significant amount of personal savings, borrower deposit is also a very important element in Grameen Bank. Forty-two per cent of the branches have borrower deposits equal to 74 per cent or more of outstanding loans of the branches. One-fifth of the branches have more borrowerdeposits than the amount of loans outstanding. In some branches borrower-deposits are as high as 50 per cent above the outstanding loans. In seven zones, out of forty, borrower deposits are equal or more than the outstanding loans in zones. 10.0 No Donor Money, No Loans In 1995, GB decided not to receive any more donor funds. Since then, it has not requested any fresh funds from donors. Last installment of donor fund, which was in the pipeline, was received in 1998. GB does not see any need to take any donor money or even take loans from local or external sources in future. GB's growing amount of deposits will be more than enough to run and expand its credit programme and repay its existing loans. 11.0 Earns Profit Ever since Grameen Bank came into being, it has made profit every year except in 1983, 1991, and 1992. It has published its audited balance-sheet every year, audited by two
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internationally reputed audit firms of the country. All these reports are available on CD, and some on our web-site : www.grameen.com. 12.0 Revenue and Expenditure Total revenue generated by Grameen Bank in 2009 was Tk 14.50 billion (US $ 209.80 million). Total expenditure was Tk 14.13 billion (US $ 204.42 million). Interest payment on deposits of Tk 7.07 billion (US $ 102.29 million) was the largest component of expenditure (50 per cent). Expenditure on salary, allowances, and pension benefits amounted to TK. 3.82 billion (US $ 55.33 million), which was the second largest component of the total expenditure (27 per cent). Grameen Bank made a profit of Tk 371.57 million (US $ 5.38 million) in 2009. 13.0 30% Dividend for 2009 Grameen Bank has declared 30% cash dividend for the year 2009. This is the highest cash dividend declared by any bank in Bangladesh in 2009.Highest record of dividend declared by Grameen Bank was in 2006.It was 100%.The bank has also created a Dividend Equalization Fund to ensure distribution of dividends without much fluctuation in successive years .Receiving of dividends each year greatly inspires our shareholders, 97% of whom are our borrowers. 14.0 Low Interest Rates Government of Bangladesh has fixed interest rate for government-run microcredit programmes at 11 per cent at flat rate. It amounts to about 22 per cent at declining basis. Grameen Bank's interest rate is lower than government rate. Recently MRA has fixed the maximum interest rate for microcredit at 27% on declining balance method and instructed the NGO-MFIs to implement this capped interest rate within June 2011.MRA found in a recent survey the effective interest rate of NGO-MFIs on General Loan ranges from 25% to 33% and the modal value is 29%.On the contrary Grameen Bank's highest interest rate is 20%. Microfinance Transparency an internationally reputed pricing certification agency also verified the pricing of Grameen Bank loan products and found that GB actually charges the same interest as it publicly claims. There are four interest rates for loans from Grameen Bank: 20% for income generating loans, 8% for housingloans, 5% for student loans, and 0% (interest-free) loans for Struggling Members (beggars). All interests are simple interest, calculated on declining balance method. This means, if a borrower takes an income-generating loan of say, Tk 1,000, and pays back the entire amount within a year in weekly instalments, she'll pay a total amount of Tk 1,100, i.e. Tk 1,000 as principal, plus Tk 100 as interest for the year, equivalent to 10% flat rate. 15.0 Deposit Rates Grameen Bank offers very attractive rates for deposits. Minimum interest offered is 8.5 per cent. Maximum rate is 12 per cent. 16.0 Beggars As Members Begging is the last resort for survival for a poor person, unless he/she 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 111,656 beggars have joined the programme. Total amount disbursed stands today at Tk. 159.51 million. Of this amount of Tk. 126.89 million (79% of the amount disbursed) has already been paid off. 19,721 beggars have left begging and are making a living as door-to-door sales persons. Among them 9,770 beggars have joined Grameen Bank groups as main-stream borrowers. Beggers members have voluntarily opened their personal savings accounts. Cumulative deposit in these savings accounts amounts to BDT 21.64 million; present balance stands at BDT 8.21 million. Basic features of the programme are : 1)Existing rules of Grameen Bank do not apply to beggar members; they make up their own rules. 2)All loans are interest-free. Loans can be for very long term, to make repayment instalments very small. For example, for a loan to buy a quilt or a mosquito-net, or an umbrella, many borrowers are paying Tk 2.00 (3.4 cents US) per week.
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3)Beggar members are covered under life insurance and loan insurance programmes without paying any cost. 4)Groups and centres are encouraged to become patrons of the beggar members. 5)Each member receives an identity badge with 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. 6)Members are not required to give up begging, but are encouraged to take up an additional incomegenerating activity like selling popular consumer items door to door, or at the place of begging. Objective of the programme is to provide financial services to the beggars to help them find a dignified livelihood send their children to school and 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. 17.0 Housing For the Poor Grameen Bank introduced housing loan in 1984. It became a very attractive programme for the borrowers. This programme was awarded Aga Khan International Award for Architecture in 1989. Maximum amount given for housing loan is Tk 25,000 (US $ 354) to be repaid over a period of 5 years in weekly instalments. Interest rate is 8 per cent. 689,272 houses have been constructed with the housing loans averaging Tk 13,059 (US $ 181.50). A total amount of Tk 9.00 billion (US $ 211.06 million) has been disbursed for housing loans. During the past 12 months (from June'10 to May11) 6,035 houses have been built with housing loans amounting to Tk 68.85 million (US $.957 million). 18.0 Micro-enterprise Loans Many borrowers are moving ahead in businesses faster than others for many favourable reasons,such as, proximity to the market, presence of experienced male members in the family, etc. Grameen Bank provides larger loans, called micro-enterprise loans, for these fast moving members. There is no restriction on the loan size. So far 3,272304 members took micro-enterprise loans. A total of Tk 94.04 billion (US$ 1380.37 million) has been disbursed under this category of loans. Average loan size is Tk 28,739 (US $ 394.65), maximum loan taken so far is Tk 1.6 million (US $ 23,209). This was used in purchasing a truck which is operated by the husband of the borrower. Powertiller, irrigation pump, transport vehicle, and river-craft for transportation and fishing are popular items for micro-enterprise loans. 19.0 Scholarships Scholarships are given, every year, to the high performing children of Grameen borrowers, with priority on girl children, to encourage them to stay ahead to their classes. Upto May'11, scholarships amounting to Tk 184.35 million (US$ 2.72 million) have been awarded to 1,32,537 children. During 2011, US$ 592,849 will be awarded to about 24,611 children, at various levels of school and college education. 20.0 Education Loans Students who succeed in reaching the tertiary level of education are given higher education loans, covering tuition, maintenance, and other school expenses. By May11, 48,768 students received higher education loans, of them 46,177 students are studying at various universities; 547 are studying in medical schools, 863 are studying to become engineers, 1181 are studying in other professional institutions. 21.0 Grameen Network Grameen Bank does not own any share of the following companies in the Grameen network. Nor has it given any loan or received any loan from any of these companies. They are all independent companies, registered under Companies Act of Bangladesh, with obligation to pay all taxes and duties, just like any other company in the country. 1) Grameen Phone Ltd., 2) Grameen Telecom, 3) Grameen Communications, 4) Grameen Cybernet Ltd., 5) Grameen Solutions Ltd., 6) Grameen Information Highways Ltd., 7) Grameen Bitek Ltd., 8) Grameen Krishi Foundation, 9) Grameen Motsho (Fisheries) Foundation, 10) Grameen Uddog (Enterprise), 11) Grameen Shamogree (Products), 12) Grameen Knitwear Ltd., 13) Grameen Shikkha (Education), 14) Grameen Capital Management Ltd., 15) Grameen Byabosa Bikash (Business Promotion ), 16) Grameen Trust, 17) Grameen Health Care Trust, 18) Grameen Health Care Service Ltd., 19) Grameen Danone
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Food Ltd., 20) Grameen Veolia Water Ltd., 21) Grameen Shakti., 22) Grameen IT Park Ltd., 23) Grameen Star Education Ltd., 24) Grameen Employment Services Ltd., 25) Grameen Fabrics and Fashion Ltd., 26) Grameen Distribution Ltd., 27) Grameen Shamogree Purbanchal Ltd., 28) Grameen Shamogree Uttaranchal Ltd., 29) BASF Grameen Ltd., 30) Grameen Fund: Inherited Social Venture Capital Fund (SVCF) that was created in Grameen Bank as a donor funded project. Subsequently money in the fund was given as loan to Grameen Fund, an independently created not-for-profit company, with the consent of the donors. Grameen Fund continues to function as a social venture fund; and 31) Grameen Kalyan: Grameen Kalyan (Well-being) is a not for profit company registered under the Companies Act 1994. Grameen Bank created an internal fund called Social Advancement Fund (SAF) by imputing interest on all the grant money it received from various donors. Money accumulated in SAF was given to Grameen Kalyan to manage a project of undertaking social advancement activities among the Grameen borrowers, such as, education, health, technology, etc. Not only Grameen Kalyan is implementing the project, it has also ensured growth of the initial fund by several times, and expanding the coverage of the social advancement activities for Grameen borrowers. 22.0 Loans Paid Off At Death Grameen offers an optional insurance programme called Loan Insurance Programme. Those who sign up for this programme in case of their death, all outstanding loans are paid off. Under this programme, an insurance fund is created by the interest generated in a savings account created by deposits of the borrowers made for loan insurance purpose, at the time of receiving loans. Each time an amount equal to 3 per cent of the loan amount is deposited in this account. This amount is transferred from the Special Savings account. If the current balance in the insurance savings account is equal or more than the 3 per cent of the loan amount, the borrower does not need to add any more money in this account. If it is less than 3 per cent of the loan amount, she has to deposit enough money to make it equal. Coverage of the loan insurance programme has also been extended to the husbands with additional deposits in the loan insurance deposit account. A borrower can get the outstanding amount of loan paid off by insurance if her husband dies. She can continue to borrow as if she has paid off the loan. Total deposits in the loan insurance savings account stood at Tk 6,777.30 million (US$ 93.07 million) as on May 30, 2011. Up to that date 202,934 insured borrowers and insured husbands died and a total outstanding loans and interest of Tk 1825.65 million (US $ 26.89 million) left behind was paid off by the bank under the programme. The families of the deceased borrowers are not be required to pay off their debt burden anymore, because the insured borrowers or their insured husbands do not leave behind any debt burden to take care of. 23.0 Life Insurance Each year families of deceased borrowers of Grameen Bank receive a total of Tk 17 to 20 million (US $ 0.25 million to 0.29 million) in life insurance benefits. Each family receives Tk 1,500. A total of 134,814 borrowers died so far in Grameen Bank. Their families collectively received a total amount of Tk 236.57 million (US$ 4.67 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. 24.0 Deposits By the end of May, 2011 total deposit in Grameen Bank stood at Tk. 102.84 billion (US$ 1412.25 million). Member deposit constituted 56 per cent of the total deposits. Balance of member deposits has increased at a monthly average rate of 1.64 percent during the last 12 months. 25.0 Pension Fund for Borrowers Another optional, but enormously popular programme in Pension Fund Programme.As borrowers grow older they worry about what will happen to them when they cannot work and earn any more. Grameen Bank addressed that issue by introducing a programme of creating a Pension Fund for old age. It immediately became a very popular programme. Under this programme a borrower is required to save a small amount, such as Tk 50 (US $ 0.69), each month over a period of 10 years. The depositor gets almost twice the amount of money she saved, at the end of the period. The borrowers find it very attractive. By the end of May 2011 the balance under this
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account comes to a total of Tk 37.16 billion (US $ 510.32 million). Tk 6.33 billion (US $ 89.81 million) was added during the past 12 months (June10-May, 2011). We expect the balance in this account to grow by Tk 6.65 billion (US $ 94.17 million) in 2011 making the balance to reach Tk 44.56 billion (US $ 631.04 million). 26.0 Loan Loss Reserve Grameen Bank has a very rigourous policy on bad debt provisioning. If a loan does not get paid back on time it is converted into a special type of loan called "Flexible Loan", and 50 per cent provisioning is done on the last day of each month. Hundred per cent provisioning is done when flexible loan completes the second year. At its third year, the outstanding amount is completely written off even if the loan repayment still continues. Balance in the loan loss reserve stood at Tk 5.69 billion (US $ 82.37 million) at the end of 2009 after writing off an amount of Tk 1.53 billion (US $ 22.11 million) during 2009. Out of the total amount written off in the past an amount of Tk 0.67 billion (US $ 9.72 million) has been recovered during 2009. 27.0 Retirement Benefits Paid Out Grameen Bank has an attractive retirement policy. Any staff can retire after completing ten years or more of service. At the time of retirement he receives a retirement benefit in cash. It is usually paid out within a month after retirement. Since this benefit was introduced 8,615 staff members retired and received a total amount of Tk 6.66 billion (US $ 108.01 million) in cash. This amounts to Tk 0.77 million (US $ 12537) per retiring staff. During the past 12 months 739 staffs went on retirement collecting a retirement benefit of Tk 1405.50 million (US $ 19.94 million). Average retirement benefit per staff was Tk 1.90 million (US $ 26,982). 28.0 Telephone-Ladies To-date Grameen Bank has provided loans to 403,745 borrowers to buy mobile phones and offer telecommunication services in nearly half of the villages of Bangladesh where this service never existed before. Telephone-ladies run a very profitable business with these phones. Telephone-ladies play an important role in the telecommunication sector of the country, and also in generating revenue for Grameen Phone, the largest telephone company in the country. Telephone ladies use 2.22 percent of the total air-time of the company, while their number is only 1.89 per cent of the total number of telephone subscribers of the company. 29.0 Getting Elected in Local Bodies Grameen system makes the borrowers familiar with election process. They routinely go through electing group chairmen and secretaries, centre-chiefs and deputy centre-chiefs every year. They elect board members for running Grameen Bank every three years. This experience has prepared them to run for public offices. They are contesting and getting elected in the local governments. In 2003 local government (Union Porishad) election 7,442 Grameen members contested in the reserved seats for women, 3,059 members got elected. They constitute 24 per cent of the total members elected in the seats reserved for women members in the Union Porishad local government. During 1997 local government election 1,753 members got elected to these reserved seats. 30.0 Computerised MIS and Accounting System Accounting and information management of nearly all the branches (2,565 out of 2,565) has computerised. This has freed the branch staff to devote more time to the borrowers rather than spend it in paper-work. Branch staffs are provided with pre-printed repayment figures 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 that remains to be done at the village level is to enter figures in the borrowers' passbooks. All zones (40) are connected with the head office, and with each other, through intra-net. This has made data transfer and communications very easy. 31.0 Policy For Opening New Branches New branches are required to fund themselves entirely with the deposits they moblise. 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.

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32.0 Crossing the Poverty-Line According to a recent internal survey, 68 per cent of Grameen borrowers' families of Grameen borrowers have crossed the poverty line. The remaining families are moving steadily towards the poverty line from below. 33.0 'Stars' for Achievements Grameen Bank provides colour-coded stars to branches and staff for 100 percent achievement of a specific task. A branch (or a staff) having five-stars indicate the highest level of performance. At the end of December'2010, branches showed the following result. 923 branches, out of total 2,565 branches, received stars (green) for maintaining 100 per cent repayment record. 19,07 branches received stars (blue) for earning profit. (Grameen Bank as a whole earns profit because the total profit of the profit-earning branches exceeds the total loss of the loss-incurring branches.) 1,846 branches earned stars (violet) by meeting all their financing out of their earned income and deposits. These branches not only carry out their business with their own funds, but also contribute their surpluses to meet the fund requirement of deficit branches. 324 branches have applied for stars (brown) for ensuring education for 100% of the children of Grameen families. After the completion of the verification processes their stars will be confirmed. 64 branches have applied for stars (red) indicating branches those have succeeded in taking all its borrowers' families (usually 3,000 families per branch) over the poverty line. The star will be confirmed only after the verification procedure is completed. Each month branches are coming closer to achieving new stars. Grameen staff look forward to transforming all the branches of Grameen Bank into five star branches. Credit Delivery System Grameen Bank Credit Delivary means taking credit to the very poor in their villages by means of the essential elements of the Grameen credit delivery system. Grameen Bank credit delivery system has the following features: 1 There is an exclusive focus on the poorest of the poor. Exclusivity is ensured by: i) establishing clearly the eligibility criteria for selection of targeted clientele and adopting practical measures to screen out those who do not meet them in delivering credit, priority has been increasingly assigned to women

ii)

iii) the delivery system is geared to meet the diverse socio-economic development needs of the poor 2 Borrowers are organized into small homogeneous groups. Such characteristics facilitate group solidarity as well as participatory interaction. Organizing the primary groups of five members and federating them into centres has been the foundation of Grameen Bank's system. The emphasis from the very outset is to organisationally strengthen the Grameen clientele, so that they can acquire the capacity for planning and implementing micro level development decisions. The Centres are functionally linked to the Grameen Bank, whose field workers have to attend
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Centre meetings every week. 3 Special loan conditionalities which are particularly suitable for the poor. These include: i) ii) very small loans given without any collateral loans repayable in weekly instalments spread over a year

iii) eligibility for a subsequent loan depends upon repayment of first loan iv) individual, self chosen, quick income generating activities which employ the skills that borrowers already posses v) close supervision of credit by the group as well as the bank staff

vi) stress on credit discipline and collective borrower responsibility or peer pressure vii) special safegaurds through compulsory and voluntary savings to minimise the risks that the poor confront viii) transparency in all bank transactions most of which take place at centre meetings. 4 Simultaneous undertaking of a social development agenda addressing basic needs of the clientele. This is reflected in the "sixteen decisions" adopted by Grameen borrowers. This helps to: i) ii) raise the social and political consciousness of the newly organized groups focus increasingly on women from the poorest households, whose urge for survival has a far greater bearing on the development of the family

iii) encourage their monitoring of social and physical infrastructure projects - housing, sanitation, drinking water, education, family planning, etc. 5 Design and development of organization and management systems capable of delivering programme resources to targeted clientele. The system has evolved gradually through a structured learning process that involves trials, errors and continuous adjustments. A major requirement to operationalize the system is the special training needed for development of a highly motivated staff, so that the decision making and operational authority is gradually decentralized and administrative functions are delegated at the zonal levels downwards.
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6 Expansion of loan portfolio to meet diverse development needs of the poor. As the general credit programme gathers momentum and the borrowers become familiar with credit discipline, other loan programmes are introduced to meet growing social and economic development needs of the clientele. Besides housing, such programmes include: i) ii) credit for building sanitary laterines credit for installation of tubewells that supply drinking water and irrigation for kitchen gardens

iii) credit for seasonal cultivation to buy agricultural inputs iv) loan for leasing equipment / machinery, ie., cell phones purchased by Grameen Bank members v) finance projects undertaken by the entire family of a seasoned borrower.

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Sonali Bank Limited

Overview of the Bank : Soon after independence of the country Sonali Bank emerged as the largest and leading Nationalized Commercial Bank by proclamation of the Banks' Nationalization Order 1972 (Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and Bank of Bhwalpur. As a fully state owned institution, the bank had been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. The bank has been converted to a Public Limited Company with 100% ownership of the government and started functioning as Sonali Bank Limited from November 15, 2007 taking over all assets, liabilities and business of Sonali Bank. After corporatization, the management of the bank has been given required autonomy to make the bank competitive & to run its business effectively. Sonali Bank Limited is governed by a Board of Directors consisting of 13(thirteen) members. The Bank is headed by the Chief Executive Officer & Managing Director, who is a well-known Banker and a reputed professional. The corporate head quarter of the bank is located at Motijheel, Dhaka, Bangladesh, the main commercial center of the capital. Vision: Socially committed leading banking institution with global presence. Mission: Dedicated to extend a whole range of quality products that support divergent needs of people aiming at enriching their lives, creating value for the stakeholders and contributing towards socioeconomic development of the country. Rural Credit Bangladesh is primarily an agricultural country. A major portion of her population (about 85%) lives in the rural areas. About 75% of the active rural population depends on agriculture as the main source of their livelihood. Agriculture contributes about 22% to the GDP. Majority of the farmers are either small or marginal. So Credit plays a paramount role to augment the capital base to support agriculture production. With this end in view. Sonali Bank Limited the largest state owned commercial bank has been playing a vital role in the socio-economic development & poverty alleviation since 1973. Keeping in view that Credit is one of the many inputs that complete the cycle of agricultural production Sonali Bank extending rural credit through 1189 branches over the country. Sonali Bank Limited introduced indirect rural credit in 1973 through the then IRDP (Now BRDB) there after continuing lending in the following programs: Crop Loan (Special Agricultural Credit Program): As per Government decision this program was introduced in 1977 to increase crop production (credit to subsistance and marginal farmers as well as share-croppers for raising seasonal crops). Now this program is continuing through 707 branches among the farmers of 1639 unions. Recently Sonali Bank Limited introduced Revolving Crop Credit Limit System from one branch of each district. Special Investment Program: This program was introduced in 1993 for creating self employment by establishing small & medium farms (Poultry, Dairy & Fishery) through bank finance. Under this program credit is extended through 236 selected branches over the country. Maximum ceiling of loan is Tk. 5.00 Lac. Farming & off farming program: This program was introduced in 1994 to involve unemployed rural people in income generating activities (Poultry, Dairy, Fishery, Horticulture, Nursery, Beef fattening) by establishing small & medium farms through bank finance. Credit is extended through all branches over the country. Maximum ceiling of loan is Tk.15.00 Lac.
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Krishi Khamar Rin Karmasuchi (Proiect): This program was introduced is 1993 for creating new employment, increase national income & Socio economic development by establishing medium & big project (Poultry, Dairy & Fishery) through bank finance. Pond Fisheries credit Program: This program was designed to extend bank credit for pisciculture in derelict ponds/Tanks/water bodies in 1977 Credit is extended through 200 branches over the country. Maximum ceiling of loan is Tk.5.00 Lac. Fertilizer Dealers Credit Program: This program was introduced to extend bank credit among the approved fertilizer dealers operating at primary distribution point of BADC for lifting their quota of Fertilizer from BADc for ultimate distribution among the farmers in 1981. Sugarcane production loan program in mill Zone area: This program was introduced in 1975 to increase sugar production. Under this program credit is extended to 11 (eleven) sugar mills for ultimate disbursement among their affiliated farmers. Social Afforestation Program: This program was introduced in 2004 to increase forestation and to reduce greenhouse effect. Credit is intended through all branches over the country. Maximum ceiling of this program is Taka 5.00 lac. Microcredit Micro Credit has now been accepted and recognized as an effective tool for poverty alleviation, self employment and rural socio-economic development. In commitment to reduce poverty in urban and semiurban and rural areas, Sonali Bank Limited has started micro credit function through a full-fledged Micro credit division in its Head Office from 2003. As such the Bank has been striving its best to provide speedy and active support to this sector. Presently, 32 Micro Credit projects/programs are being run by the Bank. Amongst the programs, Bank-NGO Linkage wholesale credit program, Goat rearing, Lamb rearing, Fruit, Herbal, Medicinal and Nursery development credit scheme, Loan program for Disabled persons, Swanirvor, different types of Credit through BRDB-UCCA ( Corp, Irrigation & Poverty Alleviation), ADB financed Rural Livelihood project (RLP) in 152 Upazillas, Daridro Bimochone Shahayta Rin Karmachuchi, Rural small business & Small Farming loan scheme , BARD Comilla - SB & RDA Bogra - SB Functional Research project etc. deserve special mention in channelizing the financial resources for poverty alleviation and rural socio economic development of the country. Credit for Urban Women Micro Enterprise Development (CUMED) project without collateral up to Tk. 5.00 lacs operating in 9 selected branches in Dhaka city, now CUMED has been extended in Dhaka city more 17 branches in addition to existing 9 branches, Chittagong two branches, Moulavi Bazar 3 branches and in total 92 branches including all District branches of all over the country. Micro Entrepreneur development credit program - `Unmesh' operating in Moulvibazar district, now this credit program has been extended all over the country. Daridro Bimochone Shahayta Rin Karmachuchi now has been extended all over the country in the year 2010. In the year 2007 a special credit program named ` SIDR ' has been introduced for SIDR affected area in which there is a provision of collateral free loan up to Tk. 20,000.00. More over to make the self dependency especially for the women Micro credit Division has been introduced a now Loan program in the year 2010 named ~ Jago Naree Grameen Rin" through 250 Rural branches all over the country with a provision of collateral free up to Tk. 25,000.00. Up to December, 2010 a total amount of Tk.422426 lacs has been disbursed under various projects/programs monitored by this Micro Credit Division, whereas it was Tk. 386529 Lacs Up to Dec. 2009. On the other hand total recovery position stands at Tk. 482839 Lacs as on December 2010, whereas it was Tk. 463854 Lacs up to Dec. 2009. The present outstanding position of Micro Credit is Tk. 98263 Lacs. Features: SL. Project/Programs Target group Poor people Loan size in Tk. According to project size Rate of Interest 12
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A. Bank's own Program 1 Bank-NGO Linkage wholesale Credit.

2 3 4 5 6 7 8 9 10 11 12 13 14 15

Credit for Urban women Micro Enterprise DevelopmentCUMED Goat Rearing Swanirvor Unmesh Daridra Bimochane Sahayta Rin Rural small Business Small Farming Loan Loans for SIDR affected Area Marginal and small Farms System Crop Intensification Pro.- MSFSCIP Crop Godown credit project Herbal, Forestry, Medicinal and Nursery development Credit Loan to Salt Growers

Urban women Entrepreneurs Small & Medium Entrepreneurs Poor Landless people Micro Entrepreneurs Hard core poor Small Entrepreneurs Small Entrepreneurs SIDR affected People Marginal, poor & small farmer Small & Medium farmer Poor energetic youth Actual Salt producer Disabled people Bittahin rural male & female Bittahin rural male & female Bittahin rural female Small & Medium farmer Small & Medium farmer Co-operative poor female member Small & Medium farmer

Highest - 5,00,000 According to project size Highest - 40,000 Highest - 50,000 Highest - 50,000 Highest - 50,000 Highest - 50,000 Highest - 20,000 Highest - 10,000 Highest - 10,000 Highest - 25,000 Highest - 44,000 per acre Highest - 50,000 Highest 10,000 Highest - 10,000 Highest - 25,000 Highest 8,000-15,000 Highest 2,333-28,000 Highest 1,500-20,000 Highest 5,000-20,000

10 10 10 10 10 11 11 08 09 09 10 4+6=10 08 09 09 09 10 08 10 6.25

Loan for disabled people Sonali Bank-BARD, Comilla Priogik Gabesana Rin Prokalpa 16 Sonali Bank-RDA, Bogra Priogik Gabesana Rin Prokalpa 17 Jago Nari Grameen Rin Karmachuchi B. BRDB-UCCA 1 BRDB Crop Lending 2 3 4 Shrimp Culture Women Development Program RLP (Rural Livelihood program)

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Janata Bank Limited

Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized capital of Tk. 20000 million (approx. US$ 289.85 million), paid up capital of Tk. 5000.00 million, reserve of Tk.8202.00 million and retained surplus Tk. 2737.00 million. The Bank has a total asset of Tk. 282423.00 million as on 30th November 2009. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank. On 15 th November, 2007 the bank has been corporatised and renamed as Janata Bank Limited. Janata Bank Limited operates through 864 branches including 4 overseas branches at United Arab Emirates. It is linked with 1202 foreign correspondents all over the world. The Bank employs more than 13(Thirteen) thousand persons. The mission of the bank is to actively participate in the socio- economic development of the nation by operating a commercially sound banking organization, providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors funds and providing a satisfactory return on equity to the owners. The Board of Directors is composed of 13 (Thirteen) members headed by a Chairman. The Directors are representatives from both public and private sectors. The corporate head office is located at Dhaka with 10 (ten) Divisions comprizing of 37 (thirty seven) Departments. Micro Enterprise and Special Credit The Micro Enterprise & Special Program Division (MESPD) is responsible for implementing of (i) Micro Credit Programs related with the poverty reduction, (ii) Special credit programs related with employment generation and (iii) Financing of agro-based industries. Bank has different micro-credit programs of its own & in collaboration with other agencies. For successful implementation of these credit programs especially poverty reduction credit programs it requires close supervision and monitoring. Considering Bank's manpower/field staff it is not always possible to ensure intensive supervision at the grass root level. To make the micro credit programs time & cost effective bank has initiated linkage program using intermediaries/collaborating agencies (GOs & NGOs). Collaborating agencies are responsible for organizing the target groups (conducting survey, formation of groups, providing training etc.) including supervision and recovery of credit. The main features of different micro-credit programs are narrated below:1. Diversified credit program -1992. Objectives : For creation of self employment & poverty reduction. Area of : Throughout the country. operation (a) Initially 45 IGAs. Presently any viable IGAs. Activities & (b) Production plan/appraisal is prepared on the basis of activities and market rate. : Appraisal (c) Loans are determined on the basis of credit norms/ceiling given by Head Office or present market rate subject to the prior approval from the concerned authority. Associate : Bank's own program. agencies Approach : Individual. Term : ST & MT. Security : (a) Up to Tk.50,000/-, no collateral is required
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Disbursement Repayment Rate of interest Delegation

: : : :

(b) Personal guarantee in favour of loanee from an acceptable person. (c) Hypothecation of goods ( If applicable). Disbursement is made in cash by installments. Purchase receipts/documents to be kept in respective loan file. Repayable by weekly/fortnightly/monthly installment. Repayment period and mode of repayment is fixed depending on the nature of activities & generation of income 11% Delegation of business powers as per RCD circular no- 281 dated: 29-06-2004 (in lacs) Branch Managers RM AGM DGM GM Gr-4 Gr-3 Gr-2 Gr-1 0.20 0.30 0.40 0.50 2.00 3.00 4.00 5.00

Related : RCD- 215 dt: 10-04-1993 & 281 dt: 29-06-2004 Circulars/Letters 2.Small Farmers & Landless Labourers Development Project(SFDP)-1976 Objectives : Employment generation of the poor. Collaborating : Bangladesh Academy for Rural Development (BARD),comilla. agency Activities : All types of IGAs. Approach : Group. A group consists of 7-10 members. Term : ST. a) Hypothecation of goods. Security : b) Group guarantee. c) Lien of group savings. Rate of interest : 11% Disbursement : Disbursement is made in cash or through group's savings account. Loan is repayable in installments (weekly/monthly etc.) It depends on the nature and Repayment : purpose of loan. Delegation : (Fig. in Lac.) Branch RM AGM DGM GM DMD MD Max.0.80 per 2.00 3.00 4.00 5.00 5.00 5.00 group Related Banking plan/work manual Ges c bs Fwe-4/GmGdwWwc Kvt wbt/98 Zvs-16: Circular/letter 09-98B 3.Swanirvar Credit Scheme -1978 Collaborating : Swanirvar Bangladesh agency Area of operation : : 247 unions of 87 Upazillas. 167 branches are designated. Major activities : Off-farm IGAs. under credit : Approach : : Group. Each group consists of 5 members. Amount of loan is determined on the basis of activities & prevailing market rate. Appraisal : : (Maximum Tk.10,000/- per member). Security : : a) Hypothecation of goods. b) Group guarantee.
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Rate of Interest : Disbursement : Repayment : Delegation : Related circular/letter :

: : : :

c) Lien of Group savings. 11% Disbursement is made in cash. Loan is repayable with interest by 52 weekly installments. Concerned Branch Managers sanction loan subject to the recommendation of credit supervisor/unit manager of Swanirvar Bangladesh.

: As per work manual of Swanirvar credit program.

4. Co-operative credit for rural poor-1980 Collaborating : BRDB (Bangladesh Rural Development Board). agency Area of operation : Noakhali, Luxmipur & Feni District. Financing to the co-operative members of primary societies (e.g. Farmer's Objectives : society, Women's society etc.) under 2-tier co- operative. Major activities : Crop & other different production oriented income generating activities. under credit Co-operative members apply for loan to the concerned primary society. Primary society consolidates the loan applications and applies for loan to Proposal : respective UCCA (Upazilla Central Co-operative Association). UCCA consolidates the society wise loan requirement and finally the UCCA applies for loan to the bank. Crop- as per credit norms of SACP & other short term credit- on the basis of production plan prepared as per market price. Appraisal : Irrigation & Ag.Implements- on the basis of actual market price. Maximum 80% loan is sanctioned i.e. minimum down payment is 20%. a) Members of managing committee of UCCA are to give guarantee individually Security : and jointly. b) Lien of Group share/savings. Disbursement is made amongst the members of the primary societies in cash in Disbursement : presence of Upazilla credit committee(consists of bank, UCCA & primary society representative) Regional Head- upto Tk.50.00Lac/UCCA & Area Head- up to Tk. 1.00 Delegation : crore/UCCA for single instance. Reference : Agreement between Janata Bank Limited & BRDB circular/letter 5. Lending through NGOs -1996 Target Group : Poor members of self-help groups (SHGs) organized by NGOs. In case of individual lending maximum coverage and constant supervision is not always possible for a bank branch. Therefore, Lending through NGOs are much Objectives : cost effective. On the basis of this observation, bank has initiated this linking credit program with NGOs. Proposal : Following criteria are to be considered during processing of the NGO- loan proposals: i) NGO must have registration from the competent authority ( e.g. Ministry of women affairs, Social Welfare department, NGO-Bureau, Registrar joint stock company etc.). ii) In the articles of association/by-laws of the concerned NGO there must be provision of taking loan from any financial institutions/banks.
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Security

Disbursement Delegation Rate of interest Repayment Related Circular/letter

: : : :

iii) The NGOs concerned have their own credit program for poverty reduction. iv) They must have good track record. v) They must be able to provide the equity and security of loan. vi) From the last year bank has widened NGO- Credit program by opening another window/ product line named JB-CDF (Credit & Development Forum an apex body of NGOs) NGO credit . a) Mortgage of properties( 11/2 times of loan) b) If the NGOs are not able to arrange mortgage of property in that case they are to build up a guarantee fund A/C equivalent to loan limit. Initially 25% of the fund to be raised before disbursement of loan. Rest of the fund to be raised gradually (as decided by bank- weekly/ fortnightly basis) within the loan period. c) For CDF-NGOs, no such collateral is required. In this case CDF provides guarantee. d) Members of the Executive Committee of the NGO are to give guarantee individually and jointly. Disbursement is made in installments through their savings/current account. Loan is sanctioned at Head Office level up to Tk. 25.00 Lacs by MD. 11% To be repaid by fortnightly/monthly installments within 1 1/2 -- 3 years.

: -

6. Grain Storage credit- 1991 Target Group : Crop producers( Small & Marginal farmers) Area of Allocated unions of Jamalpur, Jessore, Jhenaidah, Barisal, Dinajpur, Rajshahi, : operation Rangpur, Bagura, Gaibandha and Naogaon. To ensure fair prices of agricultural produces and save the farmers from financial Objectives : losses during the harvesting season when crops are sold at a comparatively lower price. (a) A farmer can store upto 10 quintal of cereal each. (b) Loan will be provided 80-90% of procurement price declared by Govt. as per Appraisal : credit limit approved by advisory committee (project people). If price is not available in that case , on the basis of prevailing market price to be considered and loan will be determined up to 75% of market price. Sanction : Loans are sanctioned against cereal stored in godown Disbursement : Disbursement is made in cash Security : Hypothecation of cereal crops stored in godown Rate of interest : 10% Entire amount of loan is repayable within 6 months. For seed repayable within 9 Repayment : months Delegation : Branch Manager. Related : Circular/letter 7. Ghoroa Prokalpa/ Family based micro credit: Rural poor people male or female and should be capable to conduct the activity for Target Group : which the credit to be applied for. Area of : Unions under SACP(approved by H.O.). operation
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Objectives

Eligibility

Proposal

Appraisal Sanction Loan size Security Disbursement Repayment

: : : : : :

Documentation : Delegation : Reference letter :

(a) Accommodating maximum rural dwellers in production/ income generating activities. (b) Making each household a " Production Farm." & thereby to make them economically sustainable. (a) Permanent inhabitant of the allotted union. (b) Applicant must be capable and keen to conduct the concerned activity. (c) Head of the family will execute the charge documents and will provide guarantee on behalf of the loanee members of the family. (a) Any one can apply for loan from the command area of branch. (b) Loan application to be duly & correctly filled in along with the production plan (in a prescribed form). (c) By conducting survey group pass book to be issued for the eligible family members (a) Loans are determined on the basis of credit norms/ceiling given by Head Office. (b) Production plan/ appraisal are prepared on the basis of activities and market rate. Loans are sanctioned for different income generating activities. Maximum TK.40,000/- per family. Loan size depends on the nature of loan and varies from purpose to purpose. (a) Hypothecation of the goods against which loan has been given. (c) Under this program security has not been given priority. Importance has been given on close supervision, monitoring and evaluation. Disbursement is made in cash or kind through single or 2 installments. In kind, through payment order to supplier. Purchase receipts/ documents to be kept in respective loan file. Repayment by fortnightly/ monthly/ half yearly installment. Mode of repayment depends on nature and purpose of credit. D.P. note and other charge documents. Branch Managers can sanction loan up to maximum 40,000/- per family. Fwe-4/ wewbqvM cwiKbv/ wmB/2000 ZvwiLt 24/07/2000 Bs|

Entrepreneurship development Programs 1. Women Entrepreneur Development Credit program. Prospective women entrepreneurs those who are (a) producing/marketing goods by themselves or through others. Target Group : (b) Eager to utilize their educational/professional experience and like to set up new projects or BMRE of existing projects and need working capital. Dress making, Bed cover, Bed sheet, Pillow cover, Embroidery, Block, Screen Printing, Doll making, Artificial flower making, Gift item, Small printing industry, Foods processing (Jam, Jelly etc.), Spices processing, Store running, Purpose of loan : Fast food item, Leather products, Jute products, Bamboo and cane products, Plastic products, Pottery, Service-oriented Tele-Phone-Fax-e-mail & computer service, Day-care centre, Nursing home, Diagnostic centre, Clinic set-up and running etc. The women entrepreneurs asking for loan should have minimum literacy. She Eligibility of clients : should be agile, having will power & innovation traits. Women who have need based/job specific training & skill. On receipt of proposal, Branch manager makes spot verification and verifies the Appraisal : genuineness and credit need of the entrepreneur. Sanction/Delegation : Head Office and field level sanction the loan on the basis of market price, P.P
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Security Disbursement Delegation Rate of interest Repayment Reference circular/letter 2. Cyber Cafe Target Group

: : : : :

and equity of the entrepreneur. Minimum equity/margin is 25% Personal guarantee of the applicant, Personal guarantee of the applicant's husband/father or earning members from any dears & near one's, guarantee from any known & highly acclaimed person of the society/organization to be obtained. Disbursement is made in cash. But in case of procurement of machineries/equipments disbursement is to be made through pay order to the supplier of goods. Sanction power lies with Head Office and field level. 10% To be repaid in three years on monthly installment basis with a grace period of 3 months. For working capital, C.C. loan procedure is being followed.

: -

: Trained youth in computer technology. 10 designated branches of Dhaka city and corporate branches-I & II of Chittagong, Area of operation : Khulna, Rajshahi, sylhet and Barisal divisional head- quarters. (1) To create employment opportunity for the unemployed trained youth and expansion of information technology. Objectives : (2) To purchase computer, server, networking, Internet connection, Printer, Scanner, CD writer, UPS, Decoration etc. (a) Applicants must have minimum diploma degree in computer science or company formed by them. (b) Companies having prior experiences in cyber caf business . (c) Concerned business at project area to be verified before loan sanction/disbursement. In regards cyber caf's work station appraisal of viability to Eligibility : be considered. (d) Age Limit: Minimum-25 yrs Maximum65 yrs (e) The applicant who can repay monthly loan installment excepting the 1/3 of his monthly income. Proposal : Loan proposal has to be submitted with detailed production plan. On receipt of proposal, Branch manager makes spot verification and verifies the Appraisal : genuineness & credit need of the applicants. Head Office sanctions the loan for expansion & setting up of cyber caf (for Sanction : purchase and installation of Computer, Server, Net working, Internet connection, Printer, Scanner, UPS & cost of decoration etc.). Minimum equity/margin is 40%. (a) Loans up to Tk. 3.00 Lac, no collateral is required and above Tk. 3.00 Lac collateral is required (1.5 times of loan). (b) In case of no collateral , advance dated cheques (one for each installment and Security : additional one) are to be taken. (c) Hypothecation of computer and all other equipments (d) In case of no collateral security, 3rd person guarantee is required. Documentation : D.P note & other charge documents. Disbursement is to be made in cash by installments. Purchase voucher/receipts to be Disbursement : kept in respective loan file. Delegation : Sanction power lies with Head Office Designation Delegation of Delegation of power with collateral power without
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MD DMD GM Rate of interest Repayment Reference circular/letter

collateral 3.00 Lacs 3.00 Lacs 3.00 Lacs

10.00 Lacs 7.00 Lacs 5.00 Lacs

: 12% : To be repaid in 36 monthly installments, starting next month from disbursement. : RCD No. 287 dt: 30/06/2005

3. Doctor's Loan Scheme: MBBS or its equivalent degree holders registered Doctors like Medical Practitioners, Eye Specialist, Cardiologists, Surgeons, Dentists etc, any group of Target Group : doctors or any institution/company formed by the doctors may apply for availing this loan in the bank's prescribed form. (a) All branches of divisional head quarters Area of operation : (b) All corporate branches-I & II (c) All main branches of district towns. (a) Inducing health services through all over the country. Objectives : (b) To create employment opportunity of Doctors . (c) Making Chamber and purchase of required machineries and equipments. (a) The aforesaid categorized doctors must possess valid approval or license for general practices from the competent authority. (b) Those doctors who are not fully engaged may get preference for enjoying this new facility. Eligibility : (c) Age Limit: Minimum-25 yrs Maximum65 yrs (d) The doctors who can repay monthly loan installment excepting the 1/3 of his monthly income. (e) Experience: 2 yrs. Proposal : Loan proposal has to be submitted with detailed production plan. On receipt of proposal, Branch manager makes spot verification and verifies the Appraisal : genuineness and credit need of the applicants. Debt-Equity : 80:20(Minimum). Ratio (a) In case of no collateral security, advance dated cheques (one for each installment and additional one) are to be taken. (b) Guarantee from the person acceptable to bank to be obtained in case of loan without collateral/Original certificate of degree (c) Personal guarantee of borrower's husband/wife/parents/mother/father/adult children to be obtained. (c) Hypo. of all furniture & machineries of chamber. (d) Original copy of license of general practitioner to be obtained. Security : (e) In case of group loan, one person will give guarantee for another. (f) Having been verified certificate/license/guarantee submitted by applicants carefully, these to be obtained. (g) The equipment purchased shall duly be insured covering all risks. (h) Personal guarantee of borrower's husband/wife/parents/adult children to be obtained. (i) Encashable securities equitable to loan or mortgage of landed property (1.3 times of loan) to be obtained.
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Sanction Documentation Disbursement Delegation

: : : :

Rate of interest Repayment Reference circular/letter

: :

Loans are sanctioned on the basis of production plan at field level and Head Office as per delegation. D.P note and other charge documents. Disbursement is to be made in cash by installments. Purchase voucher/receipts to be kept in respective loan file. Delegation of Power Designation Without With collateral collateral MD 5.00 lac Taka 10.00 Lac Taka 4.00 ,, 8.00 ,, DMD 3.00 ,, 6.00 ,, GM 2.00 ,, 4.00 ,, DGM AGM(Corp.2, Regional 1.00 ,, 2.00 ,, Office) 13% To be repaid in 5 years in 57 monthly installment with a grace period of 3 months.

: RCD No. 287 dt: 30/06/2005

4. Small business development loan scheme Those who are running the business by purchasing shop's possession or renting for Target Group : a specific time. Corporate branches-I & II. Besides these, all branches of divisional and old districts Area of operation : towns and main branches of new districts towns . Objectives : Expansion of existing shop & providing term loan/working capital to existing shop Those unemployed educated youth who have no ability to give collateral but involved in businesses such as all types of handicrafts, book, crokeries, all kinds of Eligibility : furniture, grocery & stationery shops, departmental store or any other income generating activities. Proposal : Loan proposal has to be submitted with detailed production plan. On receipt of proposal, Branch manager makes spot verification and verifies the Appraisal : genuineness and credit need of the applicants. Loans are sanctioned on the basis of production plan at Head Office level as per Sanction : delegation. (a) Loans up to 5.00 Lac, no collateral is required in both term loan & working capital. Up to maximum Tk. 25.00 Lac, collateral is required in both term loan & working capital (1.5 times of loan). Security : (b) In case of no collateral, 3rd person guarantee is required. (c) Shop's possession right/ rental agreement to be obtained with consent letter of house/shop's owner. (d) In case of group loan, one person will give guarantee for another. Debt-Equity : 70:30 Ratio Documentation : D.P. note and other charge documents. Disbursement is to be made in cash by installments. Purchase voucher/receipts to be Disbursement : kept in respective loan file. To be repaid in 5 years in 60 monthly installments in case of term loan. For Repayment : working capital C.C. loan procedure is being followed. Rate of interest : 11%
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Delegation

Major activities under loan Reference circular/letter

: Sanction power lies with Head Office. With Without Collateral Collateral 25.00 Lac (a) MD : 5.00 Lac Taka Taka 15.00 Lac (b) DMD : 4.00 Lac Taka Taka 10.00 Lac (c) GM (HO/DO) : 3.00 Lac Taka Taka DGM (d) : 2.00 Lac Taka (AO/RO/Corp.-1) DGM (e) : 1.00 Lac Taka (AO/RO/Corp.-1) Handicrafts, Book, Crokeries, All kinds of furniture, Stationary shop , departmental : store or any other income generating activities. RCD Cir. No.280 dt: 17/06/2004, 07/08 dt. 12.02.08 : Letter No.GgBGGmwcwW/z` eemvqx Dbqb/2004 ZvwiLt 04/08/2004Bs|

Special Credit Program:

1.Seed Development Programme

Target Group

: Farmer's Seed Company (FSC). FSC are located in the following 10 districts: Area of operation : Gopalgong, Naogaon, Bhola, Sherepur, Maulvibazar, Dinajpur, Chuadanga, Jhenaidah, Patuakhali and Cox,s bazar. To extend loan to farmer's seed company for procurement, processing & marketing Objectives : quality seeds for the development of private seed sector. (a) The concerned (FSC) are to be duly registered under the companies act,1994 of Bangladesh. (b) The shareholders and directors of such companies must be residing in the concerned locality. Eligibility : (c) The loan taking FSC must maintain their fund/deposit company's account with the financing branch. (d) The concerned (FSC) or its directors/shareholders are not defaulter loanee of other bank/financial institution. Proposal : Loan proposal has to be submitted with detailed production plan. On receipt of proposal, Branch manager makes spot verification and verifies the Appraisal : genuineness and credit need of the applicants. Sanction Loans are sanctioned on the basis of production plan at Head Office level as per delegation. (a) The guarantee fund to be provided by GTZ will be treated as collateral security. (b) Hyp. of crops/goods/assets to be produced/procured with loan money. (c) The members of the Board of Directors shall provide to the bank a group : guarantee stating their joint and individual liability to repay the loan. (d) Seeds/goods/assets procured by bank loan and stored by the company shall duly be insured as per bank's clause covering all risks. : (a) List of all share holders with full particulars. (b) Duly attested copy of Memorandum & Articles of Association. :
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Security

Documentation

Disbursement Debt-Equity Ratio Delegation

(c) Duly attested photographs of all directors. (d) Resolution of the Board of Directors with decision regarding taking loans as per sanction. Loan to be disbursed for procurement of different seeds/cereals as per schedule. : Purchase voucher/receipts to be kept in respective loan file. : 75:25 : Sanction power lies with Head Office. (a) DGM : 10.00 Lac Taka (b) GM : 15.00 Lac Taka (c) DMD : 20.00 Lac Taka (d) MD : 25.00 Lac Taka Loan for each crop shall be repaid within 9 months from the date of disbursement : of that item. If any FSC for genuine reasons is not able to repay the loan in time, the branch may allow a grace period of maximum 3 months. Credit will be provided for mainly- Wheat, Boro, Aus ,Paddy and other potential : crops of the locality. : 10% : Seed Business Promotion Project/GTZ : As per agreement between Janata Bank Limited & GTZ

Repayment Major activities under loan Rate of interest Collaborating agency Reference circular/letter

2. Loan for Handicapped/disabled people Physically handicapped/disabled people who has the expertise and intelligence to Target Group : conduct the economic activity. Area of operation : All branches up to union level. (a) To raise the income and living standard of handicapped people by self employment. (b) To help build self reliance and to bring them into the mainstream of economic Objectives : activities. (c) To provide assistance for increasing efficiency at work and in their own professions. (a) Loan application to be duly & correctly filled in along with the production plan Proposal : ( in a prescribed form). (b) By conducting survey pass book to be issued for the eligible people. Amount of loan is determined on the basis of activities. Initially amount of loan Appraisal : will be maximum TK. 25,000/-. Later amount of loan will be fixed up to TK. 50,000/- on the basis of the efficiency level. (a) The age of the handicapped borrower should be at least 18 years. (b) The borrower/entrepreneur should be capable and keen to conduct the concerned project/activity. If any individual is physically handicapped but he has the expertise and intelligence to conduct the economic activity for which he has Eligibility : applied for in those cases the borrower/individual will be selected as eligible for the credit to conduct the activity through his or her wife/husband/father/ mother/brother/sister. (c) The handicapped individual who have training on the concerned subject/project from Government/private organization Documentation : D.P. Note and other charge documents.
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Disbursement Repayment Rate of interest Major activities under credit Reference circular/letter

Disbursement of credit on installment basis( one or more) as per requirement and will depend on nature and sector of the credit policy. Loan repayment on weekly/fortnightly/monthly/quarterly basis will depend on : nature, sector and income generating kind of the credit facility. : 10% All income generating activities suitable for disabled people such as fish : cultivation, milking cow, goatery, beef fattening etc. : : RCD Cir. No.- 270 dated: 2002

3. Hybrid Milking Cow Rearing (HYV-Milch Cow): Farmers of Pabna & Sirajgonj region where they developed their skill ness in Target Group : milking cow rearing due to suitable grazing land and weather. Baga bari & Shahjadpur branch under Sirajgonj district and Bera & Demra branch Area of operation : under Pabna district. (a) To alleviate poverty and unemployment problem through rearing of hybrid milking cow . (b) The milk production capacity of local and cross breed cow of Pabna & Objectives : Sirajgonj region is better. Milk Vita & other milk processing unit have established in these regions. As a result , a potential milk market has created. Considering this fact, A small credit program ( For establishment of family based rearing farm ) has been undertaken. (a) The applicants should be permanent resident of Pabna & Sirajgonj region. Eligibility : (b) The applicants should have experience in cow rearing (a) Loan application to be duly & correctly filled in along with the production plan Proposal : ( in a prescribed form). (b) By conducting survey pass book to be issued for the eligible people. (a) Loans are determined on the basis of credit norms/ceiling given by Head Office. Appraisal : (b) On receipt of proposal, Branch Manager makes spot verification and verifies the genuineness and credit need of the loan applicant. (a) For Pabna local breed milk TK.20000/- - 25,000/- ( 5- 6 litre) per cow with Loan size : calf. (b) For cross breed TK. 30000/- - 35,000/- (8- 10 litre) per cow with calf. (a) Up to 50,000/- no collateral is required. (b) Hypothecation of cows. Security : (c) Personal security of the loan applicant. (d) In case of loan above 50,000/- mortgage of landed property (1.5 times of loan) as per Instruction Cir. No. 1220. Disbursement : Disbursement is to be made in a single or more installments. (a) Branch Manager- Up to 50,000/Delegation : (b) AGM/DGM- Up to 3,50,000/Rate of interest : 10% (simple interest). Repayment : To be repaid within 3 years by monthly installments. Reference letter : Fwe-4/Mvfx cvjb/02 ZvvwiLt 10/08/2002 Bs 4.Credit for Forestry/Horticulture Nursery: Target Group : Unemployed youth having trainings/experiences in nursery & plantation. Area of operation : All branches throughout the country. (a) To generate employment opportunity. Objectives : (b) To develop fruit/spices and forestry/herbal nursery business in the country.
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Eligibility Proposal Appraisal Sanction Security Documentation Disbursement Rate of interest Repayment Reference circular/letter

: : : : : : : : :

(a) The applicant should be permanent inhabitant of the locality. (b) Poor/unemployed trained/experienced youth . (a) Loan proposal has to be submitted with detailed production plan. (b) By conducting survey interested & eligible people to be identified. (a) On receipt of proposal, Branch manager makes spot verification and verifies the genuineness & credit need of the applicants. (b) Loans are determined on the basis of credit norms/ceiling given by Head Office. (c) TK. 30,000/- per acre, maximum for 1.5 acres. Area/Regional head sanctions the loan on the basis of branch recommendation. (a) Hypothecation of goods produced. (b) Personal guarantee of the applicant. D. P. note & other charge documents. Disbursement is to be made as per requirement. 10% ( Simple interest) To be repaid within 21/2 years by 15 installments in case of fruit/spices nursery and within 2 years by 18 installments in case of forestry/Herbal nursery.

: RCD Cir. No. 264 dt:22/05/2002

5.Credit for Flower plantation & Garden: Target Group : Unemployed youth having trainings /experiences in flower plantation and garden. Area of operation : All branches throughout the country. At present flower cultivation is an important sector at home & abroad. Its use has become widened day by day. Flower cultivation and business is now commercially Objectives : profitable in the domestic & export market. To encourage this trade, our bank has initiated a credit program for flower cultivators. (a) The applicant should be the permanent inhabitant of the locality. Eligibility : (b) Unemployed trained & experienced youths those who are interested in this sector. Proposal : Loan proposal has to be submitted with detailed production plan (a) Loans are determined on the basis of credit norms/ceiling given by Head Office. Appraisal : (b) TK. 50,000/- to TK. 1,25,000/- per acre depending on the variety of flower. Sanction : Area/Regional head sanctions the loan on the basis of branch recommendation. (a) Hypothecation of goods produced. (b) Personal guarantee of the applicant. Security : (c) Mortgage of landed property (1 times of loan) in case of loan above one acre of land to be obtained as per Instruction Cir. No. 1220. Documentation : D. P. note & other charge documents. Disbursement : Disbursement is to be made as per requirement. Rate of interest : 10 % ( Simple interest) (a) Rajanigandha- Within 3 years by 30 equal monthly installments starting from the 6th month after obtaining loan. Repayment : (b) Gladiolus- Within 6 months by single installment. (c) Rose- Within 3 years by 32 equal monthly installments starting from the 4th month after obtaining loan etc. Reference : RCD Cir. No. 269 dt:04/12/2002 circular/letter 6.Credit Program for Goat Rearing: Target people : Unemployed youth who have got training on goat rearing in semi intensive system.
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Area of operation : Objectives : Eligibility :

Proposal Appraisal

: :

Besides this micro credit is given for the poor. All branches throughout the country. To alleviate poverty & unemployment problem. (a) The applicant should be the permanent inhabitant of the locality. (b) Unemployed trained /experienced youth/ distressed women. (c) The applicant experienced in goat rearing at family level are to get loan on a preferential basis. (a) Loan proposal has to be submitted with detailed production plan. (b) By conducting survey in a prescribed form interested and eligible people to be identified. Loans are determined on the basis of credit norms/ceiling given by Head Office. In case of semi intensive system, Area/Regional head sanctions the loan on the basis of branch recommendation & Upazilla implementation committee. In case of micro credit- Individual loan- Branch Manager - Group loan- Area/Regional head (a) Hypothecation of goats. (b) No collateral security is required. (c) Personal guarantee of the applicant D. P. note & other charge documents. Disbursement is to be made as per requirement. 10% Semi intensive system - To be repaid within 41/2 years including 11/2 years grace period by 6 equal half yearly installments. Micro credit- To be repaid within 21/2 years including 6 months grace period by 4 equal half yearly installments.

Sanction

Security Documentation Disbursement Rate of interest

: : : :

Repayment

Agro-based projects. The agro-based projects (e.g. dairy, poultry, hatchery, fishery, mixed projects, agricultural processing units, agri.- products storing and marketing etc.) have been considered as thrust sector. Financing in this sector following aspects are to be considered: (a) Selection of entrepreneurs- solvency, good will, professional and technical experience, capable to provide equity and security etc. (b) Selection of projects- cost, effective & viable, suitable in respect of communication and infrastructural facilities, demand of the produced goods & favourable marketing facilities. (c) Debt-Equity Ratio- minimum margin 40%(Working Capital), 70:30 -Project loan.( 15% of total project cost as land value or actual value of land whichever is lower to be adjusted with the total equity). (d) Land development, link road development, electricity connection etc. are to be completed from entrepreneur's own source. (e) Recommendation from branch and regional office in respect of loan sanction is required. (f) Loan is to be sanctioned after completing technical and financial analysis of the project by the Head Office. (g) Equity is to arrange at a time or phase-wise as decided by H.O. Security: i) Project loan:
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a) 1:1-the value of mortgaged property to be equivalent of loan b) Hypothecation of machinery & equipments (floating assets of the project). Working capital: a) 1:1.5 - the value of mortgaged property to be equivalent to 1.5 times of loan. b) Hypothecation of goods produced & procured. Delegation : AGM a. Project Loan Public Ltd Co. Private Ltd Co. Individual Public Ltd Co. Private Ltd Co. Individual --20.00 ---DGM --30.00 30.00 20.00 15.00 GM --50.00 50.00 30.00 20.00 DMD --60.00 75.00 40.00 30.00 MD 250.00 200.00 150.00 200.00 40.00 30.00

b. W/C Loan

Ref: Circular/Letter: Ins. Circular 3401 Dt: 05/03/02 Ins. Circular 3449 dt: 10/08/02

Other Credit Programs: 1. Credit for Employees-2000 Employees of different Govt/Semi Govt./Autonomous Target group : body/University/College/School/NGOs etc. To meet up the emergency/personal need (e.g. treatment, marriage, travel cost, Objectives : maternity or for specific activities (e.g. agri. or non agri. purposes etc.) of employees. (a) The employees of above mentioned organizations excepting Janata Bank Eligibility : Limited. (b) Preference to be given those who are taking salary from our branches. (a) In case of salary is being disbursed from Janata Bank Limited branch, 12 months basic salary or maximum TK.1,00,000/- whichever is lower may be sanctioned. Appraisal : (b) If salary is not disbursed from Janata Bank Limited branch, 6 months basic salary or maximum TK. 50,000/- whichever is lower may be sanctioned. For sanctioning loan following papers to be obtained: (a) Employer's certificate. Sanction : (b) Salary certificate/statement from the concerned organization. (c) Name of nominee (Husband/Wife/Children etc.) to be mentioned in the A/C opening form. (a) Personal guarantee of borrower's husband/wife/parents/adult children or any other 3rd party guarantee to be obtained. Security : (b) 24 for 24 monthly installments and additional one-total 25 advance dated cheques to be obtained. Rate of interest : 13.50%(Changeable) Repayment : To be repaid in 2(two) years at equal monthly installment Reference : RCD Cir. No.- 287 dated:- 30-06-2005 circular/letter 2. Consumer Credit Scheme-2003 Target group : Fixed income earners. Objectives : (a) To improve standard of living.
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Eligibility of Clients Sanction

: :

Security

Rate of interest Repayment Main activities under credit Reference circular/letter

: : :

(b) To support purchase of various consumer durables. All branches up to Upazilla level. (1) Permanent officer/staff working at Govt /SemiGovt./Autonomous body/ Nationalised Bank/University (private/public)/Training institute/Research institute/Private bank/Insurance company/International organization/Multinational company. RO/AO/DO level. as per delegation. (a) Hypothecation over the consumer durables. (b) In case of Janata Bank Limited employee, personal guarantee from an employee (equivalent or upgraded ranking employee). Such guarantee to be countersigned by the competent authority. Officer/staff can give guarantee for one or more loan. But sum total of one or more guarantee will not be more than non-encumbered provident fund. Loan giving authority is to be confirmed to the effect that the applicant has the capacity to repay bank loan. (c) Lien of provident fund/gratuity. (d) Personal guarantee of borrower's husband/wife/parents/adult children or any other 3rd party guarantee to be obtained etc. 14 % (Changeable). To be repaid in 3 years at monthly installment Personal Computer, Scanner, Air conditioner, Air cooler, Water cooler, Water pump, freeze, Television, Radio, Furniture and any other items acceptable to Janata Bank Limited.

: RCD Cir. No. 287 dated: 30-06-2005

3. Mushroom Cultivation Loan Program: : To meet up nutritional requirement of most of the people of the country, Creation of Objectives self-employment and reducing of poverty. Area of : Branches involved in diversified credit program of the bank operation Eligibility : Trained/Experienced people in mushroom cultivation and will be capable of building room in own home land. Selection of : Concerned branch of Janata Bank Limited will select borrower. borrower Loan application : Prescribed form for crop loan (except the un useful part). Loan application form to form & fee be used as per given proforma (RCD Cir.No.293 dt:05-04-2007). No. application fee is required. Mushroom : Oyster, Straw, Milky, Button and Shiitake mushroom varieties Loan limit : Minimum 5000/- and maximum 25,000/Loan repayment : Short term (Maximum 10 months) period Security & : (a) No collateral is required. However hypothecation of goods/assets to be produced Documentation with loan money and 3 party guarantee from the person acceptable to bank to be obtained. (b) Usual charge documents to be obtained. Rate of interest : 8% (Changeable from time to time as per bank's interest norms). Repayment : To be repaid by 8(Eight) equal monthly installments including 2 months grace schedule period. Sanction : Branch Manager (irrespective of grade) as per RCD Cir.No.293 dt: 05-04-2007. Disbursement : Throughout the year.
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period Reference

RCD Cir.No.293 dt: 05-04-2007.

A vast majority of the Bangladeshis live in the rural areas and their main source of income is agriculture and agro-business. Janata Bank Limited has opened branches in rural areas to cater to the banking needs of rural people. Apart from accepting deposits from the rich and moderately well-off villagers, Janata Bank Limited encourages the poor people to make small savings through different mechanisms. So far lending in rural areas is concerned; Janata Bank Limited has been financing agricultural production and poverty alleviation programs since 1977. It also lends to the poor landless so that they can make a living. The average loan size is about Taka 20,000.00 (around US$ 285). Major Agricultural/ rural credit programs: 1. Special Agricultural Credit program/ short term crop production loan 2. Horticulture development (cultivation of banana, betel leaf, pineapple etc.) 3. Fish/ Shrimp production:- (a) Fishery loan program (b) Credit program for fish cultivator selected by Directorate of Fisheries (c) Shrimp culture credit program 4. Irrigation and agricultural equipment Objectives: The main features of the major agricultural / rural credit programs are narrated below: 1. Special agricultural credit program / Short term crop production loan program: 01. Purpose of loan : Sanctioning of loan to farmers for crop production. 02. Area of operation : Unions allocated by Bangladesh Bank under Lead Bank System. 03. Eligibility of loanee : Farmer possessing 161/2 - 250 decimals of cultivable land or share croppers. Branch Manager is sanctioning loan as per credit norms. Crop hypothecation and personal guarantee of the borrowers. 8%. 6 months to 9 months, Maximum 12 months. In cash in a single installment. Repayable at a time after harvesting and marketing of crops. To extend financial help to the farmers who are interested to cultivate betelleaf, banana, pine apple etc. Allocated unions under Lead Bank System Genuine farmer. Branch Manager is sanctioning loan as per credit norms. : : Hypothecation of produced crops and personal guarantee. 8%.
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04. Sanctioning Authority : 05. 06. 07. 08. Security Rate of interest Duration of loan Mode of disbursement : : : : : : : :

09. Repayment of loan 01 Purpose of loan . 02 Area of operation . 03 Eligibility of loanee . 04 Sanctioning Authority . 05 Security . 06 Rate of interest .

2. Horticulture development loan program:

07 Duration of loan .

Maximum 11/2 year from the date of disbursement. Loan is disbursed in cash in a single or more than one installment. Repayable in weekly / monthly / a single installment after crop harvesting and marketing To increase fish production in pond and to create employment opportunity for pond owners and lease holders by providing credit for pond reexcavation and fish cultivation. Allocated unions under Lead Bank System. a) Pond owner b) Lease holder of pond. Pond, in case of pond owner and other properties in case of lease holder are being taken as a registered mortgage. 8%. 41/2 years Loan is disbursed in installments. Entire amount of loan with interest is repayable by 4 equal installments. First installment is due for recovery after 18 months from the date of disbursement.

08 Mode of disbursement : . 09 Repayment of loan . :

3(a). Fishery Loan Program: Purpose of loan : 01. 02. Area of operation 03. Eligibility of loanee 04. Security 05. 06. 07. 08. Rate of interest Duration of loan Mode of disbursement Repayment of loan : : : : : : :

3. (b) Credit program for fish cultivator selected by the Directorate of Fisheries: Fishery resource is an important sector in our economy. It can play a vital role in creating employment opportunity for reduction of poverty. A memorandum of understanding has been signed between Directorate of fisheries and Janata Bank Limited. As per memorandum bank is financing fish cultivators selected by Directorate of Fisheries. Under this programme, no collateral security is required up to Tk.0.05 million of loan amounts. Purpose of the loan & rate of interest is same as that of fishery loan program 3. Shrimp Culture Credit Program: 01. Purpose of loan : To encourage the shrimp cultivator to produce more shrimps by utilizing modern production practices in order to earn more foreign exchange. 02. Eligibility of loanee : Individual / Group / Cooperative society are eligible for loan. 03. Security : Hypothecation of produced shrimp. Collateral security such as land & building are being taken as a registered mortgage. 8%. 10 months. (a) Loan is disbursed in 2/3 installments from January to March. (b) Cash credit (C/C) is disbursed as per usual practice of bank for the10 (ten) acres of land or above. (a) Loan is repaid by 4 equal monthly installments from July to October. (b) Cash credit is adjustable 3(three) times within 1(one) year.

04. Rate of interest : 05. Duration of loan : 06. Mode of : disbursement 07. Repayment of loan :

4. Irrigation & Agricultural Equipment Credit Programme.

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01 Purpose of loan .

: Loan is given for the purchase of irrigation equipments i.e Shallow Tube Well (STW), Low Lift Pump(LLP), Deep Tube Well (DTW) etc & Agriculture equipment i.e Tractor, Power Tiller etc. to increase agricultural production. : Allocated unions under Lead Bank. System. : Owner of at least 0.5 acre of land in case of irrigation equipment loan and genuine farmer in case of agricultural equipment loan are eligible. : a) Hypothecation of equipments purchased by loan money. b) Registered mortgage of land & building which is equivalent to loan amount.

02 Area of operation . 03 Eligibility of loanee . 04 Security .

05 Rate of interest : 8% . 06 Mode of disbursement : Loan is disbursed to the supplier through Pay-order against bill. . 07 Repayment of loan : Entire loan amount with interest is repayable by 11 equal half yearly . installments within 6(six) years with a grace period of 6(six) months.

Our bank's position on Retail Customer Department-3 (RCD-3) / Retail Customer Department-4 (RCD-4) as on 30-09-2008 is as under :No. of Borrowers covered No. of Branches involved in Micro-credit No. of Branches dealing with crop loan Range of interest rate No. of Programmes Financed Nos. of Micro-Credit Programes : 5,81,801 : 844 : 555 : 2% to 14% : 40 : 29

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Agrani Bank Limited

Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas Correspondents, came into being as a Public Limited Company on May 17,2007 with a view to take over the business, assets, liabilities, rights and obligations of the Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately after the emergence of Bangladesh as an independent state. Agrani Bank Limited started functioning as a going concern basis through a Vendors Agreement signed between the ministry of finance, Government of the People's Republic of Bangladesh on behalf of the former Agrani Bank and the Board of Directors of Agrani Bank Limited on November 15,2007 with retrospective effect from 01 July,2007. Agrani Bank Limited is governed by a Board of Directors consisting of 13(thirteen) members headed by a chairman. The Bank is headed by the Managing Director & Chief Executive Officer; Managing Director is assisted by Deputy Managing Directors and General Managers. The bank has 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches including 10 corporate and 40 AD( authorized dealer) branches. Micro Credit Programs Daridra Bimochon Karmasuchi (DABIK) In collaboration with the Ministry of Youth and Sports, this programme was undertaken in 1990. Since November, 1995, however, the programme is being implemented as the Bank's own programme. Landless rural poor owning land (including homestead) upto 0.50 acre can avail of credit facilities being a member of the 5-member group formed under this project. A wide range of activities are being financed under this program viz. mini poultry, beef-fattening, rural transport, handicrafts, small business, tailoring, fishery, nursery, vegetable production, food processing etc.Under the project credits are extended for a maximum amount of Tk.10,000/= without collateral and the interest rate is 10% per annum only. Employment Generation Project for the Rural Poor (EGPRP) The Employment Generation Project for the Rural Poor (EGPRP) came into operation upon signing of a Loan Agreement (IFAD Loan#378-BD) in 1995. The Project was designed to reinforce the efforts of the Government of Bangladesh (GOB) to meet its strategic objectives of increasing output and employment through nationwide development of small enterprises, to which it accords high priority. The project's goal is to create a productive micro-enterprise sub-sector providing profitable self-employment for rural people, supported by public and private sector structures and processes which lead to a favourable climate for increasing investment in, and improving management of, micro-enterprises. Under this project, loan may be delivered to entrepreneurs through its designated Branches. Eligible Micro Enterprises under the project are: Agro-processing enterprises: related to paddy, flour, edible oil, cotton, fruits, vegetables etc. Manufacturing enterprises: related to handicrafts, metal, wood, plastic, garments, food, chemical products etc. Service Enterprises: related to restaurants, tailoring, laundering and any other type that contributes to rural employment generation. Loan size of the project is Tk. 20,000 Tk. 5,00,000. No collateral security is required for loan up to Taka 75,000.The rate of interest of the loan is reasonably minimum. Small Enterprises Development Project (SEDP, BGD-041):
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This project was undertaken by the Bank in 1995 in association with NORAD to extend credit facilities in 40 Upazillas in greater Faridpur and Mymensingh Districts for establishment of micro enterprises. Under the project, 50% of the credit fund is being provided by NORAD and 50% by the Bank. The main objective is to improve socio economic conditions of the project areas through creating employment opportunities. A wide range of micro enterprises are being financed under this project such as rice mill, oil mill, food processing , flour mill, nursery, repairing workshop, hatchery, fishery, weaving, handicrafts etc. Maximum loan ceiling is Tk. 7,50,000.The rate of interest is minimum and the maximum loan repayment period is 7 years. Now, the Project is going to be a subsidiary company of the Agrani Bank Ltd. Marginal and Small Farm Systems Crop Intensification Project ( MSFSCIP ) - IFAD Loan no.-194BD. This project was undertaken by the Bank in 1990 in association with Bangladesh Bank, Rangpur Dinajpur Rural Services (RDRS) GTZ, and IFAD. Credits provided by the Bank are re-financed by Bangladesh Bank.The project is being implemented in 9 Upazillas of Kurigram District. The primary objective of the project is to establish a sustainable linkage between the SHGs(Self Help Groups) and the Bank so that the rural poor become bankable. The Self Help Groups (SHGs) comprising of 15-20 beneficiaries. Under the project, credit facilities are being extended to Self Help Groups of Marginal and Small Farmers both for collective and individual activities in the form of Seasonal Agricultural Loan (SAL), Agricultural Investment Loan (AIL), and Non-Agricultural Investment Loan (NAIL). Loans are collateral-free with a maximum ceiling of Tk.8,000 at individual level and Tk.80,500 at collective level and the rate of interest is only 12% per annum . Special Micro- Credit Program (SMCP): This project was undertaken by the Bank in 1990 in association with Bangladesh Bank, Rangpur Dinajpur Rural Services (RDRS) GTZ, and IFAD. Credits provided by the Bank are re-financed by Bangladesh Bank.The project is being implemented in 9 Upazillas of Kurigram District. The primary objective of the project is to establish a sustainable linkage between the SHGs(Self Help Groups) and the Bank so that the rural poor become bankable. The Self Help Groups (SHGs) comprising of 15-20 beneficiaries. Under the project, credit facilities are being extended to Self Help Groups of Marginal and Small Farmers both for collective and individual activities in the form of Seasonal Agricultural Loan (SAL), Agricultural Investment Loan (AIL), and Non-Agricultural Investment Loan (NAIL). Loans are collateral-free with a maximum ceiling of Tk.8,000 at individual level and Tk.80,500 at collective level and the rate of interest is only 12% per annum . Micro Enterprises Credit Program This Program came into force by the Bank in 1993 with a view to extend the small enterprises for the socio-economic development of the country. A wide range of micro enterprises such as Tailoring, Printing, Readymade garments, Small Pharmacy, Shop of electric goods, Small Poultry and other income generating activities are involved in the project activities. The maximum ceiling of the loan is Tk.1,00,000 and loan up to Tk.50,000 is collateral free. The maximum repayment period of the loan is 18 months and the rate of interest of the loan is reasonably minimum. Financing NGOs for On-lending to rural poor Agrani Bank is pioneer in extending loans to NGOs for on-lending to groups of rural poor for various income generating activities. The NGOs which are in shortage of credit fund may avail of loan facilities at an acceptable interest rate from this Bank. Productive Employment Project (PEP) This project was undertaken by the Bank in 1988 in association with Bangladesh Rural Development Board (BRDB) with financial assistance from Norwegian Agency for Development (NORAD) and Swedish International Development Agency (SIDA).The main objective of the Project was to develop the
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socio-economic condition of the rural poor of 20 upazillas of Faridpur,Rajbari, Madaripur, Gopalgonj and Shariatpur district. NORAD/SIDA provides 50% and Bank provides 50% of the credit fund. Maximum limit of credit under the project for individual was Tk.6000 for the first time and Tk. 12,000 for the 2nd time and onwards. Maximum limit of credit under the project for group was Tk. 1,00,000 . No collateral was required to avail of loan under the project. All loans sanctioned under the project were maximum period of one year, for special cases loan period was 18 months. After completion of the Project the recovery activity of the outstanding loan is going on by the Bank and the BRDB. Kurigram Poverty Alleviation Project (KPAP) RD-5 project i.e. Productive Employment Project (PEP) was implemented jointly by BRDB and Agrani Bank Limited with the financial assistance from SIDA and NORAD since 1988. The project was implemented in 25 Upazillas of Faridpur , Rajbari, Madaripur, Gopalgonj, Shariatpur, and Kurigram district . SIDA withdrew financial support under the project from July/97. But considering the fact that Kurigram district as one of the poorest area of the country on request of the Government of Bangladesh NORAD agreed to provide financial assistance in Kurigram district as "Kurigram Poverty Alleviation Project (KPAP) " following the PEP Model from July/97. The project is covering 9 upazillas of the district. Agrani Bank Limited was covering 5 upazillas under the project where Agrani Bank Limited had branches. The credit fund ratio under the project between NORAD and Bank was 50: 50. Maximum limit of credit under the project for individual was Tk.6000 for the first time and Tk. 12,000 for the 2nd time and onwards. Maximum limit of credit under the project for group was Tk. 1,00,000. No collateral is required to avail of loan under the project. All loans sanctioned under the project were maximum period of one year, for special cases loan period was 18 months. Rate of interest under the project was 16% per annum of Bank's portion. After completion of the Project the recovery activity of the outstanding loan is going on by the Bank and the BRDB. Micro Enterprises Loan Scheme This loan Scheme was undertaken by the Bank in collaboration with BMET (Bureau of Manpower Employment and Training) in 1990.The main objective of the project was to create self employment by introducing training to the unemployed youth-both male and female. The sectors of financing were Technical workshops, Small productive units, any commercial business and others. The maximum ceiling of the loan was Tk.50,000 and loan up to Tk.50,000 was collateral free. After completion of the Project the recovery activities of the outstanding loan are going on by the Bank. Special Assistance Project for Cyclone Affected Rural Households (IFAD Loan No. 287-BA) This loan Scheme was undertaken by the Bank in 1993. The main objective of the project is to rehabilitate the current productive potential of people affected by cyclone. The sector of financing were Crop loan, Agri-Mecheneries, Fisheries, Livestock's, Boat making/repairing, Nursery, off farming, Income generating activities etc. The maximum ceiling of the loan was Tk.1,00,000 . After completion of the Project the recovery activities of the outstanding loan are going on by the Bank. Loan for Disable Person The Special Micro Credit Program for Disable Person came into operation in the Bank in 2002 under the instruction of the Bangladesh Government. The main objective of the Program is to make the disable person self reliant and bring them into the mainstream development activities of the country. The persons who are physically disable but mentally capable of operating the business can enjoy the loan facilities under this program. An individual or jointly with the competent member of his family can get the loan. Under the project maximum loan ceiling for the first time is Tk.25,000 and for the second timeTk.50,000.The rate of interest is 10% only. No collateral is required for the loan and any branch of the Agrani Bank Ltd. may disburse the loan as per requirement. Women's Credit Program
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The Women's Credit Program was undertaken by the Agrani Bank Ltd in 1993 with a view to uplift the socio economic condition of the women by engaging them into the different financial activities of the country. A huge number of income generating activities such as Education (establishment of Kindergarten, tutorial homes),Tailoring, Printing and Dying, Readymade garments shop, laundry, Poultry, Mini dairy, Goat rearing, beef fattening, Nursery, Hotel/ Restaurant etc are involved in the project activities. Under the Program, the branch manager can sanction the loan up to Tk.50,000. For loan up to Tk.1,00,000 no collateral is required. The rate of interest of the loan is minimum and it is 11% per annum only. Special Commercial Loan Program Special Commercial Loan Program was undertaken by the Agrani Bank Ltd. in 1992 with a view to extend & develop the small business in the country. This is a short term loan and it is delivered as Cash Credit (C.C-Hypo). Maximum ceiling of the loan is 2,75,000/- and necessary collateral security is required for the loan . The rate of interest is minimum and it is 12.50%.

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Rupali Bank Limited

"Rupali", a bangla word means "Silver". The Bank is associated with the financing of trade, commerce, industry and services. It also provides special facilities for remittance and international transactions. Bangladesh is mainly a land of agriculture. Vast majorities of our people live in the rural areas and their main source of income is agriculture and agro-business. To produce agricultural output, promote agrobusiness, facilitate agro-based services, create and sustain employment opportunities, Rupali Bank Ltd. is disbursing agricultural loan/rural credit through its 401 branches all over the country. Sectors of Financing

Rupali Bank Ltd. extends credit to the following rural sectors: 1. Fishery 2. Livestock 3. Shrimp Culture 4. Poverty Alleviation Programme 5. Micro-credit 6. Agricultural product processing and marketing

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Islami Bank Bangladesh Limited

Introduction Bangladesh with its 40% people living below poverty line and 18% living in absolute poverty is suffering from acute rural-urban economic disparity coupled with illiteracy, lack of proper health and sanitation facilities. The country's economy is basically an agrarian one with vast majority living in rural areas. The agriculture sector is unable to provide any further scope for employment resulting in influx of rural population towards urban areas. Rural areas are characterised by stagnant agriculture and scanty industries. Underemployment and unemployment is a regular phenomenon particularly in rural areas. The vast human resources have remained unutilised due to lack of education, proper training and concerted efforts to help grow the rural economy. This results in uneven distribution of income which causes serious set back in balanced geographical growth as well as growth of GDP. Islami Bank Bangladesh Limited was founded with the major objective of establishing Islamic economy for balanced economic growth by ensuring reduction of rural-urban disparity and equitable distribution of income. In view of the above, Branches of the Bank have been encouraged to invest their deposits in their respective areas and in particular for the economic upliftment of the rural people. Accordingly, a Scheme in the name and style of 'Rural Development Scheme' has been introduced to cater to the investment needs of the agriculture and rural sector to create opportunity for generation of employment and raising income of the rural people with a view to alleviate poverty. Objectives To extend investment facilities to agricultural, other farming and off-farming activities in the rural areas. To finance self-employment and income generating activities of the rural people, particularly the rural unemployed youths and the rural poor. To alleviate rural poverty through integrated rural development approach. To extend investment facilities for rural housing, keeping in view the needs of housing facilities of the rural dwellers. To provide educational services and safe drinking water, sanitation & medicare facilities to the down trodden people. Rate of return Bank's rate of return is 10% per annum (flat) with a rebate of 2.5% for timely payment. Savings Plan

The members of the Group have to open Mudaraba Savings Account (RDS) in their individual names with the Branch from the very inception of the Group activity. This Mudaraba Savings Account is non-chequing which induces the clients to make a habit of compulsory savings. This savings may, however, be withdrawn by the member if he does not have any other liability with the Branch in any way. The weekly compulsory savings is minimum Tk.10.00 per member.
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Centre Fund Each member of the Group has to deposit minimum Tk.2.00 per week in the Centre Fund. This Fund is kept by opening a Mudaraba Savings Account in the name of the respective centre. This Fund is utilised for the welfare of the members by way of Quard as per decision of the Centre in the weekly meeting. This account is operated by Centre Leader & Deputy Centre Leader jointly. This fund is refundable. Command Area and Baseline Survey Each designated Branch selects villages within a radius of 16 kilometres of the Branch premises. Following criteria is being followed in selecting a village: a. Easy communication; b. Availability or scope of agriculture and other off-farm activities; c. Abundance of low-income people; d. Predominance of Islamic values and ideas. Sanction and Disbursement On the basis of the list submitted by the Field Officers, the Investment Committee of the Branch carefully scrutinises the applications and sanction the investment at the Branch level. The Investment Committee consists of Manager, Project Officer and the Field Officer. After sanction of the investment the Branch complete documentation formalities and then disburse the amount with the help of the Investment Officer and Field Officer. In all the cases Branch must ensure strict adherence to the banking and Shariah norms. Documentation To secure Bank's investment, the following documents have to be executed: Group guarantee form. Deed of Agreement. Usual charge documents

Security Requirements No security is required against investment under the Scheme as entire Scheme has been drawn taking into account the social welfare objective of the Bank for upliftment of the socially down-trodden and economically backward and weaker section of the population of the society. However, Group discipline should be strictly followed and complied with so that only the right persons are selected and included as members of the Group. Besides, each member of the Group gives personal guarantee for other members of the same Group and the members are jointly and severally liable and responsible for payment of investment. Target Area Initially the Scheme was started as a Pilot Scheme in the rural areas of certain districts under the direct supervision of the nearby Branches of Islami Bank Bangladesh Limited. The Scheme is being gradually extended to all districts through different Branches of the Bank. Islami Bank Micro Finance Program and its impact on Rural Poverty Alleviation Microcredit is now a well established poverty alleviating program which is being implemented in many parts of the world to address different development activities. This is especially so in Bangladesh the birthplace of the well-known initiative by Nobel laureate Professor Yunus. Besides providing credit facilities, all such institutions also provide training for skill development and self employment of the
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poor. Unfortunately, all these institutions provide interest based credits and the rate of interest is often exorbitantly high, to commensurate with the risk in micro-finance lending. The interest rates for institutional sources vary from 15-2%, while those for the non-institutional sources range from 33 to 120 per cent (Mahmood, 2006). Sometimes the interest rates of non-institutional sources may even be 120-140%. Mahmood also mentioned that the poor do not have any surplus production hence accumulation of capital is very dif_ cult and sometimes impossible for them. On the contrary, owing to the absence of access to productive assets, lack of skills, low-level literacy, malnutrition and absence of an organization of their own, the rural poor fall into the poverty trap (Jaim, 1986). Besides, there are hardly any credit facilitating institutions that care about the ethical development of the rural poor to change their behaviour consistent with a disciplined approach to economic activity. Business behaviour and ethics are interrelated since the disciplined approach needed for good economic management is also seen as founded in ethically consistent behaviour. Considering the above mentioned factors, Islami Bank Bangladesh Limited (IBBL) launched the Rural Development Scheme (RDS) in 1995. The main objective of this scheme is to alleviate rural poverty by providing shariah based small capital micro investment finance to the agricultural and rural sector for generating employment and raising income of the rural poor. The scheme also provides welfare, moral and ethical services to the rural people of the country. Presently, the scheme is being implemented through 129 branches covering 10,023 villages in 60 districts. Some 0.52 million group members are covered: 94% are females. The Bank has a plan to double the activities of RDS within two years. However, before expanding in to the new areas, an assessment of the achievement of the project in terms of its impact on income, livelihood and moral/ethical development of the rural people is done. It may be mentioned here that although thousands of NGOs are working in the country with a view to alleviating poverty but the rural poor are still in the vicious circle of poverty and they have little hope of getting out of poverty in the near future. Besides, none of them care about ethical and moral development of the clients but IBBL microfinance is giving especial emphasis to changing behaviour, which aspect is its distinctive difference. Therefore, this study will also assess the moral and ethical changes of the clients and its impact of on their income and livelihood. A. Behavioural and Ethical Information of the Respondents Religious behaviour and ethical development of the clients was one of the important objectives of RDS program. Therefore, clients present religious performances were plotted in Figure 2. Result shows that most of the clients do fasting, while almost 85% clients maintained parda. Although, 85% clients avoid taking interest, this information is dubious as 15% clients have involvement with other interest based NGOs. The reason of providing misinformation could be that some of the clients are not still clear about the difference between interest and profit. B. Changes in Family Income Effort was taken under this micro investment program to increase clients family income by investing their borrowed money to different income generating activities. Table 3 shows that on average clients income has increased by more than 33% from joining in the RDS up until 2006. The highest income change (6763 Tk. /year) was observed for small business which was followed by income from services (4615 Tk. /year). The crop sector income has also significantly increased but highest change was observed for small business which implied that clients preferred investing money into the business sector. C. Impact of RDS on Clients Religious Activities In addition to the poverty alleviation the micro investment program has taken initiative to increase the clients awareness on religious activities. Therefore, in this study attempt was made to assess the influence of RDS on clients awareness on religious activities. Table 4 shows that a signi_ cant number of clients (21%) have started praying after joining RDS program. Besides, a significant number of clients
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have started practicing some other religious activities like, reciting Holly Quran, inviting others to follow Islamic activities and avoid taking interest. D. Results of Ordinary Least Square (OLS) Estimation of the Model One of the prime objectives of the study was to assess the factors influencing households income, expenditures, well-being and ethical and morals of the clients. The Ordinary Least Square (OLS) technique was used to estimate the model for assuming the effect of different factors of the model. If the regression equation estimation of similar functions involve more variables, the model would have suffered from low degrees of freedom and multicollinearity problems resulting in inefficient estimates. Therefore, multicollinearity was tested and the outcome of some independent variables not being signi_ cant could be the effect of multicollinearity. The regression model was re-estimated; dropping some variables whose level of significance was very low. The results were significantly improved and hence have been interpreted. E. OLS Results for the Household Income Model It was expected that the amount of investment taken by the borrowers would increase their household income. Therefore, this study examined the influence of micro investment on the households income. However, household income does not depend on only one factor like amount of investment. It also depends on the other socioeconomic factors. That is why, variables like borrowers age, borrowers educational background, involvement of family members in farming, total land size of the households, distance to branch from the borrowers place and ethics and moral of the clients were considered as independent variables. It was found that the amount of investment taken by the borrowers had a positive and significant influence on the household income. This collateral free investment-money had increased their opportunity to start up income generating activities. It had also increased their ability to invest more on the existing economic activities resulting in more earnings from their investment. All these reasons had assisted them in increasing their household income. Household income would increase by 1.21 taka because of receiving additional one unit of investment by the borrower from the micro investment providers. The study showed that the borrowers age variable was positively and significantly related with household income. As age increases, borrowers acquire more experiences which would ultimately assist them to increase their household income level. Many researchers used age as independent variable in their regression analysis in order to assess its influence on borrowers saving, agricultural production, household income and consumption (Khandker, 2000; Amin et al., 2003) and found significant influence. This study shows that the number of earning family members had positive and significant influence on their households income. This result implied that higher the number of earning family members, the higher the family income. This expected result is also supported by Mahmood (2006). Education did not show any significant influence on household income as there was small variation of education among the clients. Result showed that more than 90% of the borrowers had schooling of less than five years. However, the variable had a positive sign. This indicates that education might influence their income level but it required more time and more educational facilities for the borrowers to realize the effect of education on income. The results showed that the distance of branch from borrowers place had no significant effect on the households income level. However, the sign for the dummy variable (10 to 16 km distance from branch) was negative meaning that further increasing distance between branch and borrowers place would decrease the income earning opportunities. It is worth mentioning here that ethics and morals had positive contribution on household income. This result is not unlikely as it is assumed that the clients who are bearing good moral and ethical characters are honest and sincere enough, so they did not divert their borrowed money to any unproductive sector. Besides, they are sincere enough in their activities and hence may have generated more income.
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F. Results of the Logit Model for Clients Well Being The logit model was selected in this study to find out the probability level that the clients would be welloff due to the influence of particular explanatory variable. In the Logit model, dependent variable clients well-being had two categories such as borrowers were well-off under the program coded as one otherwise coded as zero. The rural poor had to lead a low quality of life. It is expected that the microfinance program would bring a positive change in the overall living standard of the borrowers by improving their economic activities. Therefore, an attempt was made to investigate the influence of socioeconomic variables on the dependent variable "borrowers welfare". Based on the borrowers perceptions, the dependent variable was coded as one if the borrowers had answered well off under the micro investment program, otherwise, it was coded as zero. The logit model was used in order to find out the probability level that the borrowers would be well-off due to the influence of a particular independent variable. Table 6 shows that the duration of RDS membership, number of income generating family members, share of food expenditure to total expenditure, households health expenditure and clients ethics and morals had positive and significant contribution on clients well-being. Table 6 shows that the Wald statistic for the variable "expenditure on health" was 3.03 and it was positively and significantly related to the dependent variable. This indicates that more expenditure on health care would increase the likelihood for the borrowers to be well-off. Due to the low level of purchasing ability, borrowers had to maintain a low level of expenditure indicating a lower quality of living. They had to struggle even to meet their expenditure on food items. The microfinance program takes the effort to increase borrowers ability to spend more on food items for better living. Table 6 shows that wald statistic for the independent variable "share of food expenditure to the total expenditure" was 5.746, and it was found significantly and positively related with the dependent variable. It may be mentioned here that ethics and moral had positive contribution on clients well-being. This result is not unlikely as the clients bearing good moral and ethical characters are honest enough so they did not divert their borrowed money to any unproductive sectors. Besides, they are sincere enough to their activities hence were better-off. G. Results of the Logit Model for Assessing Clients Ethics and Moral It is expected that RDS program would bring a positive change in the ethical and moral development of the clients. Therefore, an attempt was made to investigate the influence of socioeconomic variables on the dependent variable "moral and ethical development". Based on the borrowers perceptions, the dependent variable coded as one if the borrowers were morally and ethically well-off under the micro investment program and otherwise it was coded as zero. The logit model was used in order to find out the probability level that the borrowers would be morally and ethically well-off due to the influence of a particular independent variable. Table 6 shows that the educational level, age and membership duration had positive and significant contribution on clients ethics and moral development. This result implies that elderly and educated clients who have several years involvement with this RDS program have ethically and morally been more developed than the young and illiterate new clients. H. Clients Opinion towards Micro-investment Programs Clients opinion about the benefit of micro investment programs on their skill, social and economic condition was assessed and organized them in Table 8. Results showed that micro investment program had brought positive changes in their skill and socioeconomic status. Of them, self confidence development, economic solvency, communication skill, and knowledge on business and religion practices are mentionable.
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I. Major Problems and Suggestions Stated by the Clients Like other credit programs, RDS micro investment clients also face problems participating in the microfinance program. Their problems are diverse in nature and vary depending on time, space, socioeconomic aspects, and nature of the program. Success of the programs largely depends on identifying and solving the problems on time. Therefore, in order to improve the operations of the program, it is important to identify clearly the borrowers problems. Table 9 shows that majority (90.65%) of the borrowers had problems with investment size. They mentioned that the amount of investment they had received from the micro-investment providers was inadequate for them to pursue their income generating activities (IGAs) smoothly. Lack of training facilities to upgrade their skills and technical and Islamic knowledge is also an important problem mentioned by 86% clients. About 85% respondents mentioned that a delay in receiving investment is also a problem which was followed by very short gestation period for repaying investment. Some respondents (78 %) mentioned that sometimes they needed to start repaying their borrowed money even before investing the money. Some clients (33.65 %) had to produce false voucher which is a clear violation of shariah. Besides, there is no Islamic school under this scheme which can teach Islamic knowledge to the children. Recommendations Microcredit is now a well established poverty alleviating program which is being implemented across the world. All these institutions working in Bangladesh provide interest based credit which is straightway a violation of shariah. These institutions also do not care about the ethical aspects of the rural poor, although it is obligatory, not only in business sector but also in all aspects of life. Business and ethics should be interrelated. However, the micro investment program is to uplift the overall socioeconomic plight of the rural poor, which, in this case, cares about developing ethics and morals development of the clients as it can play a crucial role in alleviating poverty. This assessment highlighted the achievement of ethics and morals of the clients and its contribution on poor peoples livelihood and summary of the study findings, conclusion and policy implications are presented below: Although, level of participation in religious activities by the clients has greatly been improved after joining RDS program, there is still room to improve these activities, especially knowledge about interest, its consequence, and how to get rid of it. Therefore, a weekly meeting or frequent lectures may be organized regarding this issue. Results showed that most of the clients utilized their borrowed money but the reality is that not all clients invested their borrowed money to income generating activities. Instead, some of them utilised their investment in house repairing, childrens marriage ceremony and furniture purchase etc. Therefore, proper monitoring and supervision should be done to develop their morals and ethics so that they use their money in income generating activities. It was observed that some field supervisors do not properly practice the Bai-muajjal mode; which is a clear violation of shari'ah so, necessary measures have to be taken to develop their moral and ethics so that they do not violate shari'ah. Mudaraba mode of investment may be practised with some selective good clients, even if in some cases this mode does not bring any profit for the scheme so that the clients and person concerned would find the difference between conventional (interest based) and Islamic microfinance. Incorporating this mode in place of Bai-muajjal mode would reduce shari'ah violation.
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 Poor borrowers are not aware of the modern technology. They depend much on the traditional method of farming resulting in low production. Therefore, provision should be made to provide demand-led and effective training on different aspects of on-farm and off-farm activities, credit management, environmental pollution, nutrition, health care and ethical development. It was observed that field supervisors are not well trained up and hence they found it difficult to motivate the rural people toward RDS and also to manage the RDS centres. Frequent training should therefore, be organized for improving the field supervisors knowledge, skill, moral and ethical values. RDS organises weekly meetings in each centre but effectiveness of the meetings cannot be maintained due to shortage of time. Therefore, duration of centre meeting time has to be increased so as to make those meetings effective. Model estimation results showed that branch distance from RDS clients place (11 to 16 km) has a negative impact on clients income and wellbeing. Although this result is not significant, it is alarming. Therefore, branch command area for RDS program should not be expanded beyond the 16 kilometre range. The number of RDS clients is sharply increasing higher although the average rate of dropout (11%) is also alarming. The reason for dropout is not yet known therefore, proper selection of clients is very important and monitoring should be increased to reduce the rate of dropout.

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Uttara Bank Limited

Uttara Bank-one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient service to clients. 207 branches at home and 600 affiliates worldwide create efficent networking and reach capability. Uttara is a bank that serves both clients and country. UBL started Uttaran Consumers Credit Scheme from 1996. UBL offers opportunity of Financial assistance for

Motor cycle/car- New or re-conditioned. Refrigerator/ Deep Freeze. Television/ VCR /VCP/VCD Radio/ Two-in-one/ Three in one Air-Conditioner/ Water Cooler/ Water Pump Washing Machine. Personal Computer/ UPS/ Printer/ Type writer Sewing Machine. House hold furniture- Wooden & Steel. Cellular Telephone. Fax Photocopier. Electric Fan- Ceiling/ Pedestal/ Table. Bi-Cycle Dish Antenna. Baby Taxi, Tempo/Microbus (For self employed persons) Kitchen articles such as Oven, Micro-oven, Toaster, Blender, Pressure Cooker etc.

Special Features : No collateral security is required. Simple rate of interest. Quick sanction. Maximum Loan amount Tk.3,00,000/5% incentive on total interest charged Any permanent salaried employee aged between 20 to 55 years is eligible to get loan. No collateral security is required. Maximum Amount of loan Tk. 1,00,000. Maximum period of loan upto 3 years.
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Required Documents :

Documents related to applicant's job to prove himself. Two copies passport size photographs. Photograph of nominee (if any) duly attested by the account holder.

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Pubali Bank Limited

The Bank was initially emerged in the Banking scenario of the then East Pakistan as Eastern Mercantile Bank Limited at the initiative of some Bengali entrepreneurs in the year 1959 under Bank Companies Act 1913. After independence of Bangladesh in 1972 this Bank was nationalised as per policy of the Government and renamed as Pubali Bank. Subsequently due to changed circumstances this Bank was denationalised in the year 1983 as a private bank and renamed as Pubali Bank Limited. The Government of the People's Republic of Bangladesh handed over all assets and liabilities of the then Pubali Bank to the Pubali Bank Limited. Since then Pubali Bank Limited has been rendering all sorts of Commercial Banking services as the largest bank in private sector through its branch network all over the country. PUBALI BANK LIMITED is the largest Commercial Bank in Private Sector in Bangladesh. It provides mass banking services to the customers through its branch network all over the country. This Bank has been playing a vital role in socio-economic, industrial and agricultural development as well as in the overall economic development of the country since its inception through savings mobilization and investment of funds. During the last 5 years the growth rate of bank's earnings is more than 25% on average. Loans & Lease Services Micro Credit Small and Medium Enterprise Financing Industrial Loans Working Capital Financing Export Credit Import Credit Bills Purchase Letter of Credit Letter of Guarantee Lease Financing Transport Financing Consumers Loan Scheme House Building Loans

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Bangladesh Samabaya Bank Ltd.

Cooperative societies in Bangladesh work in three stages with the Bangladesh Samabaya Bank Ltd. at the apex, central cooperative banks and the central cooperative societies in the middle, and primary societies at the field level. The apex bank provides capital to the mid-level banks, which in turn lend money to the primary societies. The societies distribute this fund as loan among their members. All cooperative banks in Bangladesh are members of the apex bank. According to the Cooperative Societies Ordinance 1984, the cooperative bank cannot lend money to anyone other than a member of the bank. In the 1997-98 financial year the apex bank had 482 members. The members included (a) central societies: central cooperative banks (71), central multipurpose cooperative societies (43), central sugarcane growers, cooperative societies (16), thana central cooperative societies (53); (b) primary societies: cooperative land mortgage banks (43), primary multipurpose cooperative societies (155), town cooperative bank societies (12), fishermen's cooperative societies (3) and other societies (86). The objectives of Bangladesh Samabaya Bank Ltd. were: a) to act as the apex financial institution in the cooperative sector; b) to help promote development and growth of cooperative societies; c) to regulate the activities of the central cooperative banks and the cooperative societies and coordinate their activities; d) to assist in marketing the products of the primary societies and to finance construction of godowns and other infrastructure; e) to support and advise the listed societies; and f) to conduct banking activities with the cooperative societies according to the cooperative rules and regulations.

The basic units of the cooperative credit system are the primary credit societies. The purpose of the primary societies is to provide credit to members engaged in activities such as agriculture, afforestation, fishing and cottage industries. These societies are partly financed by the middle-stage central cooperative banks. The cooperative land mortgage banks and cooperative banks of urban areas are also listed as primary societies. These banks too lend money to members engaged in agriculture and cottage industries, but are partly financed by the samabaya banks. The membership of such banks is open only to individuals.It mostly provides small loans to the agriculture sector. Bangladesh Samabaya Bank Ltd and each of the central cooperative banks are independent entities run and regulated by their own board of directors.
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Cooperative banks are constituted on a cooperative basis. Each is run by cooperative members according to the cooperative laws. Their activities are audited by government-appointed external auditors. Cooperative banks can only lend money to their members in accordance with cooperative rules and regulations in pursuance of the policies laid down by the government and can accept deposits of their members. As the borrowers of cooperative banks are their members they play a role in running the banks. The activities of cooperative banks are regulated by the Bangladesh Bank as the country's central bank under the provision of the Banking Companies Act of 1991. Fishery Cooperatives in Bangladesh At one time in Bangladesh, an ethnic community used to harvest fish from the natural waters and sell them in the markets. Its members came from low caste "Hindu" society. They were traditionally poor and lived from hand to mouth. There was abundance of fish in this natural fishery. In those days, the capture fishery was the most important means for supply of fish, aquaculture being only a hobby for some welloff rich people. Things have now changed. Because of the constant erosion in the society due population increase and shrinkage of natural habitats of fishes for both man-made and natural reasons, fish has become scarce and because of unemployment many Muslim families living in the river bank and coastal belt have entered the profession. Fishermen are a highly neglected class in both Muslim and Hindu society. Some empirical studies show that their conditions are very precarious, being mostly landless and assetless and subject to the fluctuations of capture fisheries. They are totally dependent on middlemen or money lenders who provide boats, gear, food, etc., and take the lion's share of total earnings. They are in a chain of indebtness to these money lenders. Fishermen's cooperatives in Bangladesh represent a movement to ameliorate the socioeconomic conditions of the poor fishermen community. As defined by ILO, a cooperative is "an association of persons-usually of limited means who have voluntarily joined together to achieve common end through the formation of democratically controlled business organization making equitable contribution to the capital required and accepting a fair share of risks and benefits of the undertaking". The successes and failures of fishermen's cooperatives in the area now called Bangladesh are described below. Short History of Fishery Cooperatives in Bangladesh In tracing the history of fishery cooperatives in Bangladesh, some reference must be made to happenings in the past that is, of the then Bengal comprising of Bengal, Bihar and Orissa and also of Assam of British era and East Bengal and East Pakistan of post partition days. The first cooperative was established in 1905 after the enactment of the law in 1904, although it was primarily a credit society. However, because of the pecuniary conditions of the fishermen of Bengal and the extent of their exploitation by middlemen, no fishermen cooperative could be formed in Bengal up to 1910 in spite of severe attempts by the Registrar of cooperative credit societies; moreover, the fishermen were very ignorant and conservative. The exact date of formation of fishermen's cooperative society is not available. However, to start to form such societies was made by the Fisheries Department when it came into being and 7 (seven) fishermen cooperatives were established by 1916. By 1935, over a hundred such societies had been created with a membership in excess of 4000 fishermen. Little information can be unearthed about the fishermen's cooperatives during the period from 1936 to 1947. There are conflicting views about the numbers of fishermen's cooperative societies during the partition of Bengal in 1947. One report states that at the time of independence there were more than four hundred fishermen's cooperatives in the area now comprising East Pakistan. Karim (1978) mentions that there were about 120 fishermen's cooperatives in Bangladesh at the time of partition of India. Chowdhury (1979) states that while there were fishermen's cooperatives in Bangladesh during British rule, they existed only in name. A start in real sense to organize fishermen's cooperatives was made in 1960 when the erstwhile Provincial Fishermen's Cooperative Society (now renamed as the Bangladesh Jatiya Matshyajibi Samabaya Samity Ltd.) was established. Since then there has been a rapid expansion in the creation of fishermen's cooperatives which by 1990 totalled over 3,300 in number, embracing nearly 400,000 members and working capital of some 54,000 taka.
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Since 1960, three tier societies, primary, central and apex societies have been formed under section 15 of the Cooperative Act, 1940. The purposes of becoming a member of Fishermen's Cooperative Society, as stated in the report "Survey on Development of Fishermen's Cooperatives in East Pakistan" (1970), are as follows: to get a loan; to get facilities for catching fish; to get a loan for purchasing fishing materials; to get facilities for catching fish in the leased fishery of the society with low rate of rent; to get relief from the clutches of the money lenders and to catch fish at low rate of rent; to negotiate a fishery lease from the Government, to get loans for fishing and to catch fish in the leased fishery at low rate of rent; to improve economic conditions through mutual help; to get loans for fishing business for mutual benefit through Cooperative Society. Fake primary societies were formed in many villages by influential and well-to-do non-fishermen to take advantage of relief materials and lease of fisheries as and when the occasion arose. This mushrooming of primary societies ceased as soon as the scope for having the benefits vanished.

Trends in Government Intervention The Cooperative Movement in Bangladesh in present day, since its introduction in 1904 had been, by and large, a credit cooperative movement. The movement has its stories of success and failure. It has witnessed constant changes of policies and strategies, advantages and disadvantages, but fact remains that it was all through investment of the Government, i.e., Registrar of Cooperative Societies who is the organizer, manager and liquidator of Cooperative Societies. The presence of Government machineries from the very beginning of cooperative organization, development, administration, management and above all, over all planning, guidance, supervision and control did not give opportunities to cooperative members to identify common economic problems, needs and interests. Neither were they involved plans for joint efforts reflecting their own likings and interests, moreover local resources, rather than looking on Government for supply of credit for distribution among members, were neglected. The Constitution of Bangladesh recognizes 3 types of ownership - public ownership, cooperative ownership and private ownership. On this basis the National Cooperative Council (NCC) proposed a National Cooperative Policy statement to the Government for recognizing cooperatives as a secondary sector of the national economy and committed support, cooperation and development assistance for the promotion and development of cooperative in the country especially to tackle the problems of poor people, women and youths in the rural areas. The National Cooperative Council approved the policy. The Government announced a National Policy on Cooperatives in December 1989. The main objectives of the National Cooperative Policy are as follows: a) Structuring of the cooperatives; b) Institutional arrangement for extension and organization of cooperatives; c) Rules and regulations for pre-organization stages of cooperatives; d) Autonomy and self-management of cooperatives; e) Administration of income and expenditure to develop economic capabilities and rational administration of cooperatives; f) Role of cooperatives in removal of poverty and supply of support;
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g) Consolidation of cooperative movement by extension, education, training, research, evaluation and development of human resources. The NCC was authorized to act as a National Committee to prepare a National Cooperative Plan for implementation of the above objectives. The Government had already introduced a new Cooperative Act in 1984 and Cooperative Rules in 1987 in substitution of the colonial cooperative Act, 1940 and Cooperative Rules, 1942. The objectives of the new cooperative Act and Rules were to democratize the cooperative movement and free the movement from the clutches of intruders and protect the interests of the general members. It has also been realized that further improvements to the Act and Rules are still necessary to protect further the interests of the general members in the cooperatives. With this end in view, it was decided to bring further amendments in the cooperative Act and Rules as by an expert committee. National Cooperative Union (BJSU) of Bangladesh is recognized as the highest body of cooperative movement of Bangladesh. The Government has been requested to provide all out support and assistance to the BJSU to play its role as National Cooperative Union in the national and international areas in collaboration and conjunction with various development agencies for promotion and development of cooperative movement in Bangladesh. The Government has also been urged to provide program-based support and services both from internal and external sources. The BJSU is working to organize financial support to its efforts to develop itself a strong base for the entire cooperative movement of the country. The Government has taken initiatives to re-organize the Bangladesh Samabaya Bank (National Cooperative Bank) as a Commercial Bank and utilize the Central Cooperative Banks as its branches and Upazila-level Central Cooperative Organizations as its sub branches to provide credit and banking services directly to members through their primary cooperative societies in all sectors and also to provide banking services for production, marketing, distribution, consumer supply and other essential services. About hundred years ago, the cooperative movement was introduced in the subcontinent to improve the socio-economic conditions of the poor people. The movement suffered occasional set-backs owing to mismanagement. The time-worn cooperative Act of 1940 has been replaced and a new ordinance introduced in 1984. The Rules have also been amended in line with the new Act. Cooperators have long been demanding a pragmatic cooperative policy. The cooperative policy of 1989 fulfilled this long-standing demand of the cooperators. The policy will have far reaching effects in improving the conditions of cooperative societies of the country. Malpractices as well as inactive cooperative societies are to be removed, so that the ideals and principles of the cooperative movement are ensured for the greater interest of the common people in improving their socio-economic conditions. The National Cooperative Policy of 1989 aims at protecting the interests of the genuine cooperators against intruders and exploiters. The pre-independence plan of 1965-70 recognized that "the most effective way to help the fishermen is through the organization of cooperative societies under efficient management". The plan, however, did not provide any financial allocations for the development of fishermen's cooperatives in the present Bangladesh. It was left to the Cooperative Directorate to take initiatives in this direction. Accordingly, the Cooperative Directorate drew up a scheme entitled "Development of Fishermen's Cooperative" for implementation during 1961-62, embracing only six inshore and five inland fishermen's cooperative societies. A similar scheme was under operation in 1962-63. The results achieved from implementation of these two one-year schemes was encouraging and the need for keeping up the tempo of development and further expansion of activities of the Fishermen's Cooperatives was felt and a third scheme costing Rs. 4.81 million and covering the remaining two years of the plan, viz. 1963-64 and 1964-65 was diawn up and implemented. The third scheme was an integrated document of all works actually done in the first two years under the previous two schemes and those planned for the next two years covering up to 196465. The objective of the integrated scheme was to bring the inland and inshore fishermen of selected areas within the fold of cooperatives with a view to:
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(a) free the small fishermen from the clutches of the money lenders and other middlemen who exploit them by providing them necessary credit; (b) assist the fishermen to get rid of out-moded techniques in fishing operations; (c) supply necessary nylon-twine, collar and other fishing materials to members of cooperatives at reasonable rates; (d) organize collective fishing so as to ensure maximum production of fish; (e) organize marketing facilities in order to eliminate middlemen traders so as to ensure better prices to the fishermen; (f) organize training facilities for fishermen and crews of fishing and carrier boats. In all 41 Primary Fishermen's Cooperative Societies were proposed to be organized and developed in a phased manner during the four years of the plan period. To carry out the program, a total provision of Rs. 8.369 million was made to the cooperative for purchase and supply of fishing crafts, gears and other materials, payment of annual rent of fisheries, making seasonal advances to fishermen, mechanization of fishing and carrier boats and establishment of a repairing workshop, three net making factories as well as cold storage units, etc. During the period of four years 1961-65 primary fishermen cooperative societies were taken up for development under this scheme. However, despite such efforts made by the Government to promote the Cooperative movement in the fisheries sector, many problems still exist and further attention and care is needed to resolve them. As regards the leasing out of Government owned fisheries, the 1973 policy enunciated that all Government fisheries should be leased to registered fishermen's cooperative societies through discussions with them and provided that the societies consist of genuine fishermen, i.e., a person whose principal source of livelihood is catching and selling of fish. If there is any member in a society who is not a real fisherman as per this condition the society is not eligible for leased Government fisheries. If any dispute arises in this connection, there are committees at the district and sub divisional level to settle such disputes. Another decision was that fisheries should be auctioned only among the fishermen's cooperative societies and must be leased out to the highest bidder. The Government further decided in 1984 that, as a special case, open fisheries for one year and closed fisheries for three years may be leased out to the fishermen's cooperative societies by negotiation. But in that case, the bid money should be 25 percent more than the previous year. In order to implement development projects, fisheries more than 20 acres may be leased out to the fishermen's cooperative societies for 4-10 years. It may be on open auction or by negotiation. In the new fisheries management policy, introduced by the Government in 1987, fishermen's interests have been taken into account. Under this policy, the fishery is kept under the Government management while the fishermen are awarded fishing right annually in lieu of a fee which is equivalent to the lease money of the average of the last three years. Thus exploitation of the poor fishermen by middlemen is eliminated and the fishermen also take care of conservation of the resource. Bank loans, arrangements for training, and supply of fish culture and fishing implements were ensured. Fisheries other than those approbated by the Government for management under the new fisheries management policy are leased out to the fishermen's cooperative societies as before. There are central, district and Thana fisheries management coordination committees and in all such committees the Registrar District Cooperative Officer Thana Cooperative Officer is one of the members. The Government is hopeful about the role of cooperatives as an institutional arrangement for improving the overall welfare of disadvantaged groups in the socioeconomic structure of the society, particularly in poverty alleviation. 4. Types of Fishery Cooperatives There are no special laws applicable to fishery cooperatives. Therefore, the history of their structure and subsequent improvement has reflected developments in other cooperative societies. Cooperative
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structures have to conform with the needs of their members and also to cooperative law. The first cooperative legislation, i.e., Indian Credit Cooperative Societies Act of 1904, provided for only one structure, the primary cooperative. Only primary societies collide be organized under the Act, with not less than 10 members. The Cooperative Societies Act of 1912, which replaced the former Act, provided for a two-tier structure at primary and central levels. A central society could be composed of at least 10 primary societies or 10 primary societies and individual members who could become members of the central society as what was then called "preference share hoiders". The Act also provided for registration of credit and non-credit, agricultural, non-agricultural and other sectoral/ professional cooperatives to further the interest of "persons of limited means". The Bengal Cooperative Societies Act of 1940, which replace the Act of 1912, provided for organization of provincial apex societies covering various economic sectors. It also provided for organization of multipurpose cooperative societies. The Act was intended to further "the interest of persons of moderate means", a slight but significant verbal change from the wording "persons of limited means" the Act of 1912, which opened the door of the cooperatives even for persons of substance. On partition of India, the Cooperative Societies Act of 1940 was adopted in East Pakistan with some modifications. The same Act was adopted in Bangladesh with further modifications and remained in force with the enactment of the Cooperative Societies Ordinance in 1984 and the Rules there-under in 1987, which brought about some important changes in respect of operation and management of the cooperatives structure at different levels. Fishermen's Cooperatives are organized into the three tier pyramidal structure - primary, central and apex. The apex society is known as the Bangladesh Jatiya Matshyajibi Samabaya Samity (BJMSS), i.e., Bangladesh National Fishermen's Cooperative Society. Fishing materials are supplied by the BJMSS through the Central Societies formed of varying numbers of primary societies. 4.1 Successful/Unsuccessful of Fishery Cooperatives Cooperation is an economic movement. It is an association of individuals, usually of limited means, who. Form it with the object of improving their financial conditions and raising their standards of living. They mobilize savings, augment it through contracting credits and invest the funds in profitable enterprises. The basis of cooperative organization is democratic management and equitable distribution of profits. Cooperatives which had been hastily formed to accord to the targets of development projects but without proper motivation of its members, have failed to achieve the desired results, mainly because of organizational weaknesses. No thorough evaluation of individual primary and central fishermen's cooperative has yet been taken to identify the factors responsible for successful or unsuccessful types or cooperatives. But the Government has been taking appropriate actions against the inactive societies. A society is considered inactive if it has mainly the following defects: (a) No transaction has taken place for over one year; (b) Functioning did not start within 18 months after registration; (c) If share capital or deposit of any society is less than Taka 500/=; (d) Continuous financial insolvency. Records at June 1990 showed that out of 3,332 primary societies only 2,005 were active. But in spite of existing problems, a good number of fishermen's cooperatives are running successfully and profitably through dynamic leadership, efficient management and sincere mutual cooperation of the members. However, there are still many failures. An outstanding example is BJMSS which was a profitable organization until 1979 but then it became a losing concern. The society is now taking many steps to recover its business. It would appear that leadership of a society is the key factor in its management and success or failure. Rural Development & Cooperative Division
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To uplift the status of the poor people living in the rural areas, the government of Bangladesh set up the Rural Development and Cooperative Division ( RDCD ) under the Ministry of Local Government, Rural Development and Cooperatives. The office of RDCD is located at the 6th and 7th floors of the Building no. 7 of Bangladesh Secretariat. This Division is responsible for policy formulation, planning, monitoring and administration of rural development and cooperative initiatives of the country. RDCD is also assigned to coordinate the activities pertaining to rural development undertaken by other Ministries and provide policy guidelines to the RDA and BARD are serving the policy guidelines and formulating recommendations related to poverty reduction strategies through their symbiotic research and actionresearch programs. Mission Statement of Rural Development & Cooperative Division Reduce poverty and improve the socio-economic conditions of the poor people living in rural areas through rural development, cooperative based activities and conducting continuous research on rural development. Mandates of RDCD: 1. Formulation of rural development policy and laws, rules and policy relating to cooperatives; 2. Formulation and implementation of programs/and projects to alleviate rural poverty; 3. Assist entrepreneurs through micro-credit, agricultural credit, co-operative based small and cottage industries, co-operative bank, co-operative insurance, co-operative based farming and marketing, milk and other cooperative enterprises; 4. Initiate human resource development programs for members of the cooperatives; provide education, training and conduct research programs on rural development and cooperatives; 5. Innovate new model/strategy on rural development through action research; 6. Assist in the socio-economic development and empowerment of rural women through formation of formal and informal groups under cooperative programs. The Department of Cooperatives (DOC) The Department of Cooperatives (DOC) has been the principal government organization responsible for facilitating economic growth and poverty reduction effort to the government. It is an attached department under the Ministry of Local Government, Rural Development & Cooperatives. Currently, total man power of the department is 4891.The head of the department is Registrar, an Additional Secretary to the government. The administrative set-up of the DOC is extended up to upazilla (sub-district) level. The officers-incharge at the divisions, districts and upazilla levels have been delegated almost all the powers of the Registrar except for the affairs of national level co-operatives. This facilitates registration of cooperatives locally. Most of the legal mores that a legally incorporated enterprise usually requires can be locally performed. Divisional Joint Registrars, District Co-operative Officers and Upazilla Co-operative officers are the respective heads of the division, district and upazilla level co-opreative offices. The major services and responsibilities of the DOC can be grouped into four categories, Statutory, Judicial, Developmental and Promotional. The statutory responsibilities are-registration, liquidation of defunct societies, annual audit, periodical inspection and enquiry whenever needed. The judicial or quasijudicial responsibility refers to settlement of disputes arising in the working of co-operatives. The developmental role and responsibilities include education and training for development of management and business skill, advisory services and assistance in arranging finances. The promotional responsibilities include influencing other departments in the government in favour of co-operatives in securing concessions and facilities from public agencies.
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Bangladesh Rural Development Board (BRDB) BRDB is the prime public sector organization working for Rural Development and Poverty Alleviation under Rural Development and Cooperative Division (RD&C D) of the Ministry of Local Government Rural Development and Cooperative (LGRD & C) of the government of the Peoples Republic of Bangladesh. Bangladesh Rural Development Board is the prime government agency engaged in rural development and poverty alleviation. BRDB basically operates by organizing the small and marginal farmers into cooperative societies for increasing agricultural production through improved means and by forming formal or informal groups of landless men and distressed women to promote income generating activities in the rural areas. The origin of BRDB lies in the erstwhile Integrated Rural Development Program (IRDP) which was launched in the early 70s to replicate Two-Tier Cooperative, popularly known as the Comilla Model the Upazila Central Cooperative Association (UCCA) - Village based farmer cooperatives (KSS) system. The system is based on the "Comilla approach" to rural development, as conceived by the Bangladesh Academy for rural Development (BARD) in the early 1960s. IRDP was introduced to promote economic growth through increased agricultural production. Two-Tier Cooperative as the core component of IRDP together with other elements such as capital accumulation, training, credit, marketing, extension and technological support promoted IRDP to help attaining food autarky in the country. In view of IRDP success the program was transformed in 1972 into a nation- wide institution called Bangladesh Rural Development Board. Gradually, the activities of BRDB expanded beyond its originally mandated functions to the task of alleviation of endemic rural poverty by reaching the poorest of the poor through group- based self employment and income enhancing initiatives. In order to fulfill its lately assumed mission of reducing rural poverty. BRDB had to adopt a new strategy and undertake a number of development projects in addition to its normal programs. BRDB has so far implemented 66 development projects and 11 are known under implementation. Each project designed and implemented by BRDB includes in itself various social development issues such as Primary Health Care, HIV/AIDS, sanitation, environment, mass education and the like which has an indirect impact on reducing rural poverty. BRDB thus moved from a sect oral approach to a multidimensional approach with the following goal, objectives and strategies.
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Mission of BRDB: The outstanding mission of BRDB includes the followings: To organize Comilla type of cooperative for optimum utilization of human as well as material resources available to development. To organize rural masses into cohesive & disciplined group for planned sustained development. Accumulate/mobilize rural capital through thrift deposit & sale of shares. Ensuring proper utilization of institutional credit Developing human resources through training & motivation to the portfolio of demand driven as well as women empowerment. Integrate Supply & Services for effective utilization. Develop local leadership as community catalyst.

Bangladesh Academy for Rural Development Bangladesh Academy for Rural Development (BARD), Comilla is internationally acclaimed for its many innovative works in the field of rural development in Bangladesh. The Comilla Approach to Rural Development, which is, in fact, a package of mutually supportive development models produced lasting impacts on changing the lives and living environment of the rural poor. The Profile The Academy was established in 1959 basically as a training institute to train government officials and representatives of the local government and village organizations in various subjects relating to rural development. It is an autonomous institution governed by a Board of Governors of which the Minister for Local Government, Rural Development and Cooperatives is the Chairperson. Administratively, it is attached to the Ministry of Local Government, Rural Development and Cooperatives. The Board of Governors formulates policies and the Director General of BARD as the Chief Executive implements the policies and conducts the day-to-day affairs within the framework of the ordinance and Service Rules of the Academy. The activities of the Academy are carried out by its Faculty members working in 9 Divisions each of which is headed by a Director. The Divisions are divided into two broad categories: Service Divisions and Academic Divisions. The Service Divisions include Training; Research; Project; and Administration. The Academic Divisions are Rural Administration and Local Government; Rural Economics and Management; Rural Education and Social Development; Rural Sociology and
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Demography; and Agriculture and Environment. The strength of the faculty is 60 including the Director General, Additional Director General, 9 Directors, 14 Joint Directors, 13 Deputy Directors and 22 Assistant Directors. About 305 supporting officials and staff assist them. Statistics of various Central Cooperative Societies (As on June 2009) No. of Central Cooperative Societies No. of Member of Cooperative Societies Working Capital of Cooperative Societies Cooperative Principles: Voluntary & open membership; Democratic member control; Member economic participation; Autonomy & independence; Education, training & information; Cooperation among cooperatives; Concern for community. : 1107 : 133188 : Tk. 1026.80 crore

Rural Development Academy (RDA) Rural Development Academy (RDA), Bogra, was established in June 1974 as a specialised national institution for providing training, undertaking research for generation of innovative ideas, feed policy formulation, and undertaking action research for evolving new generation of development paradigms. Over its existence of more than three decades, RDA has been able to create some path breaking innovations and a competent cadre of professionals in the field of rural development. As recognition of its contribution in the field of rural development, RDA has been awarded nationally and internationally. RDA achieved the much-coveted Swadhinata Padak(Independence Award) in 2004, for the extraordinary contribution in rural development. It also received International Communication Award 2004, from IVCA London, for developing effective rural communication model. Some of the more recognised and recorded models of RDA are: Irrigation command area development through buried pipe, innovation of multi-purpose use of low cost DTW, Development of arsenic-free safe water supply plant, creation of additional employment, Increase in marginal productivity of labour in rural economic activities and poverty alleviation through irrigation and water management, development of technical protocol for commercial hybrid maize seed production in Bangladesh, Women-led seed business project , Water saving technology for rice cultivation, and Comprehensive Village Development Programme (CVDP) along with BARD and DoC.

RDA is an autonomous institution and its governing body is the Board of Governors (BoG) headed by the Honourable Advisor/Minister in-charge of Local Government, Rural Development and Cooperatives (LGRD&C). As a linkage to the Government of Bangladesh, RDA is within the administrative jurisdiction of the Rural Development and Cooperatives Division (RDCD) of the Ministry of LGRD & C.
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Microfinance Regulatory Authority

The Microcredit Regulatory Authority (MRA) has been established by the Government of the Peoples Republic of Bangladesh under the "Microcredit Regulatory Authority Act 2006 to promote and foster sustainable development of microfinance sector through creating an enabling environment for NGO-MFIs in Bangladesh. MRA is the central body to monitor and supervise microfinance operations of NGO-MFIs. License from the Authority is mandatory to operate microfinance operations in Bangladesh as an NGO. Vision The Microcredit Regulatory Authority (MRA) will create a conducive and healthy environment in the microfinance sector which will ultimately eradicate poverty and contribute to achieve Millennium Development Goals (MDG) as well as foster sustainable development of the country. Mission To uphold the vision and in pursuant with the Microcredit Regulatory Authority Act 2006, MRAs mission is to ensure transparency and accountability of microfinance operations of NGO-MFIs as well as foster sustainable growth of this sector. In order to achieve its mission, MRA has set itself the task to attain the following goals: 1. To formulate as well as implementing the policies to ensure good governance and transparent financial systems of MFIs. 2. To conduct in-depth research on critical microfinance issues and provide policy inputs to the government consistent with the national strategy for poverty eradication. 3. To provide training of NGO-MFIs and linking them with the broader financial market to facilitate sustainable resources and efficient management. 4. To assist the government to build up an inclusive financial market for economic development of the country. 5. To identify the priority issues of microfinance sector for policy guidance and dissemination of information to attain the MRAs social responsibility. Responsibility of MRA According to the Act, the MRA will be responsible for the three primary functions that will need to be carried out, namely: 1. Licensing of MFIs with explicit legal powers; 2. Supervision of MFIs to ensure that they continue to comply with the licensing requirements; and 3. Enforcement of sanctions in the event of any MFI failing to meet the licensing and ongoing supervisory requirements. Functions Agricultural Credit and Special Programmes Department (ACSPD) is entrusted with the responsibilities of formulating national agricultural credit policy and its implementation. It also monitors and reviews the agricultural credit disbursement and recovery position of the commercial banks and specialised banks. The department also arranges refinance facilities to two specialised banks e.g. Bangadesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB) against Govt. guarantee. It also provides Demand Loan to the aforesaid two banks as and when approached by them. The department collects information and maintains data in respect of agricultural credit which are supplied to the Ministries of the Government, International bodies like International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB) etc. as and when required.
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Works relating to formulation of policies and implementation of agricultural projects financed by Development Partners, Government of Bangladesh and Bangladesh Bank are also done by this Department. Monitoring the ongoing projects, extending refinance facilities to the participating banks against their disbursement to target groups, coordinating disbursement and recovery activities of these banks and arranging repayment of project loan to government and Development Partners as per amortization schedules are the other functions of this department. The department also provides loan facilities to some specialised banks like Grameen Bank, Ansar VDP Unnayan Bank etc. against government guarantee for extension of micro credit services to the rural people. The department also monitors and reviews the industrial credit disbursement and recovery position of the banks and financial institutions of the country. It also provides refinance facilities to Banks and Financial institutions under Refinance Scheme for Small Enerprises for which Bangladesh Bank, Government of Bangladesh, World Bank and Asian Development Bank (ADB) have provided fund. Besides these Refinance Scheme for Housing Sector and Refinance Scheme for agro based industries in rural areas are dealt with by this department. History of Microcredit Regulatory Authority (MRA) Background In December 1997 the Bangladesh Bank commissioned a study to examine "the Regulatory Aspects of Microfinance Institutions (MFIs) and Linking it with the Formal Financial Sector". The study was completed in 1998 and the major findings and recommendations were as follows; 1. The regulation available in the form of statutory requirement under the existing banking and financial laws will not cater to the special needs of this sector, 2. Legal recognition of MFIs through enactment of law is required to access formal sources of funds, so that they can operate under an agreed "Code of norms/ Conducts" under the form of a special licensing arrangements, 3. Self-regulation based on agreed "Code of norms/ Conducts" can be an alternative or may supplement the existing or new government regulation, which may be introduced Subsequently in the light of the above recommendations Bangladesh Bank and other stakeholders also raised the issue of regulation for this sector to the government. In this circumstance, the government formed a Committee of seven members with the chairmanship of the Governor of Bangladesh Bank in October 1999 to a) recommend an effective credit and savings policy for this sector, b) ensure transparency and accountability into their activities and c) make some recommendations regarding a regulatory framework and to propose a body to regulate and supervise these institutions. The Committee submitted its report in March 2000, the major recommendations consist of formulating the following policies and actions; 1. Policy to remove overlapping problem, 2. Policy regarding establishment of linkage between NGOs and formal financial sector to solve NGOs' funding problem, 3. Policy for loan classification, provisioning, interest rate, reserve requirement against savings/ deposit, and investment of savings/ deposits, 4. Legal basis to recover default loan, 5. Proper definition of member and non-member, 6. Policy for uniform accounting standard, internal and external audit, 7. Fix up the upper limit of administrative expenses of NGOs,
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8. Formulation of a prudential guideline for the microfinance sector, 9. Formulation of performance standard to monitor and rating NGO-MFIs, 10. Creation of a separate regulatory body or a subsidiary organization of On the basis of the above recommendations there was a meeting in Ministry of Finance on May 28, 2000 under the chairmanship of the then Finance Minister. According to the decision of that meeting a Unit namely "Microfinance Research and Reference Unit (MRRU)" was established in Bangladesh Bank under the supervision of a National Steering Committee formed through a government order on June 18, 2000. The Governor of the Bangladesh Bank headed this Committee and it consisted of 10 other members from, ministry of finance, social welfare ministry, NGO Affairs Bureau, PKSF, Grameen Bank, ADAB, BRAC, and others. Members were selected from both government and private sectors. Terms of References (TORs) of the Committee were as follows; 1. Formulation of policy guidelines to regulate the NGO-Micro-Finance Institutions (NGO-MFIs) and setting performance standard to ensure their qualitative improvement. 2. Preparation of uniform accounting guidelines for MFIs to ensure their transparency and accountability. 3. Monitoring the activities of the MFIs in compliance of the policy guidelines prepare by the Steering Committee. 4. Recommendations for preparing a legal framework in support of the Micro-finance Research and Reference Unit or a new regulatory authority for the MFIs. The Steering Committee was given three years time to complete its work under the above TORs. Accordingly, by June 2003 the Committee completed following works with the help of a technical committee headed by the then, Managing Director of PKSF; 1. Prepared a financial guideline, TOR of external and internal auditor to ensure financial transparency and accountability, 2. Prepared a guideline to assess the performance of NGO-MFIs, 3. Prepared some formats for collecting information from NGO-MFIs for developing Management Information System that would help monitoring the activities of the MFIs. However, the Committee could not prepare a legal framework of a regulatory body to act as the regulatory authority for the micro-finance institutions (TOR (d) above) because of time constraint. The Committee submitted its report to the Government in June 2003; major recommendations were as follows: 1. MFIs should not be permitted to accept deposits from the non-member/ general public. 2. Steps should be taken for implementation of the guidelines, format, prepared by the Committee to ensure use of best practices by the MFIs. 3. The above steps should to be taken immediately, for which a regulatory body is necessary. Until such a legal regulatory authority is constituted the government may consider giving authority to this Committee/ the Unit to implement the recommended guidelines as an interim arrangement. 4. The Committee will prepare a legal framework for the regulatory body to act as a regulatory authority in the second term if the government permits. 5. The government may extend the time of the Committee for two more years to formulate a regulatory framework. The government accepted those recommendations and extended the time of the committee for two more years. Steps taken by the Steering Committee/ the Unit in the second term were as follows.
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1. A separate office was established in Bangladesh Bank for the Unit to implement Committee's guidelines. Initial technical and financial supports in establishing a separate office were given by the Bangladesh Bank and the Palli Karma-Sahayak Foundation (PKSF). 2. A public notice was published on daily newspapers regarding prohibition of deposit collection from non-members without having formal licenses to do so. 3. Published an operational guideline on the basis of recommendations given the Steering Committee for monitoring management and financial system of microfinance institutions. It contains reporting formats, guideline for measuring performance and an accounting procedure as well as terms of reference for internal and external audit. 4. Based on that guideline MRRU requested NGO-MFIs to provide quarterly information since January 2004 to the Unit. The Unit has published two analytical reports on NGO-MFIs in Bangladesh based on the information provided by the NGOs. 5. The Unit provided training to NGO-MFIs on the operational guideline. Proposal for Special Enactment for a Regulatory Authority The Steering Committee has prepared a draft law for setting up a separate regulatory authority for this sector and submitted it to the government for taking necessary action. Two renowned lawyers and a few microfinance specialists were involved in the process of drafting the law. Before submitting the final draft to the government, the Committee discussed the important contents of the draft with the representatives of NGO-MFIs in a workshop held in December 2004. A number of relevant recommendations from this workshop were taken into account during finalizing the draft law for a separate regulatory body. The draft law suggested for an independent regulatory authority that would be responsible for providing license to the MFIs and monitoring their activities. The new law passed by the Government The government passed the law, ' Microcredit Regulatory Authority Act 2006' in July 2006 on the basis of the suggestions given by the Committee. Under this law the government has established a separate Microcredit regulatory Authority (MRA) and constituted its board of directors with the governor of the Bangladesh Bank as the chairperson. According to this new law all active MFIs will have to apply for license from the Authority. No MFIs will be allowed to work within the country without having license from the Authority. According to the Law all institutions who have microcredit operation should separate their financial operations from other development works and keep their accounts separate. The Authority has been given power to monitor and supervise all these MFIs who will get license from it. The Authority also has the power to prepare detail rules related to the operations of microcredit including conditions for spending any income, area of operations, guideline of internal and external audit and accounts, collection of deposits, and use of earned profit, governance structure of MFIs, reporting requirements etc. The Authority has the mandate to take punitive measures if any institution does not comply with any of the provisions of law and rules. Establishment of MRA To bring Non-government Microfinance Institutions (NGO-MFIs) under a regulatory framework, the government of Bangladesh enacted "Microcredit Regulatory Authority Act, 2006" (Act no. 32 of 2006) on July 2006 with effective from August 27, 2006. Under this Act, the government established Microcredit Regulatory Authority (MRA) with a view to ensuring transparency and accountability of microcredit activities of the NGO-MFIs in the country. The Authority is empowered and responsible to implement the said act and to bring the microcredit sector of the country under a full-fledged regulatory framework.

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Palli Karma Sahayak Foundation (PKSF)

PKSF was established by the Government of Bangladesh in 1990 as the apex organization with the mandate to alleviate poverty through generating employment. PKSF disburses fund to microfinance institutions (MFIs) who are its Partner Organizations (POs) to implement development programs designed for the poor of Bangladesh. At present PKSF has 257 MFIs as its PO providing financial services that have grown in width as well as in breadth. Through PKSFs widespread PO network, the organization has access to all districts in the country as evident with total disbursement of BDT 454.81 Billion has been disbursed to 8.6 Million borrowers so far. The financial year FY 2009 has been marked with successful launching of new innovative programs that have been designed to address the evolving needs of the poor; strengthening of mainstream programs and streamlining financial management. PKSF comprises six core programs, eight projects and five special programs, amounting to nineteen activities. In this fiscal year, PKSF has achieved visible results from its mainstream programs with rural microcredit (RMC) dominating PKSFs performance in FY 2009. RMC, the largest component of PKSF, accounts for 41.5% of total FY disbursement reaching 70% of total number of borrowers. This is a mighty feat considering the total number of borrowers stands at 8.6 Million in FY 2009. Overall, core programs otherwise known as mainstream programs, has unparallel dominance accounting for over 83% of total disbursement of PKSF to POs in FY 2009. It also had a tremendous growth performance, over 36%, compared to last FY. This financial year is also the period where innovative programs became integrated into the mainstream programs. One such example is the launching of agro based program. Based on the knowledge derived from Microfinance for Marginal and Small Farmers Project (MFMSFP) PKSF gathered critical experience and know how that helped it to launch the innovative initiative titled Agricultural Sector Microcredit (ASM) as a mainstream program. One of its salient features is capacity building on sustainable use of modern agricultural technology for the targeted farmers. Even though projects account for only 12% of total disbursement and almost 10% of total borrowers in FY 2009 much of the innovative leanings are derived from PKSFs projects. In FY 2009, disbursement in projects grew by 40.8% with Learning and Innovation Fund to Test New Ideas (LIFT) leading the pact with 65% of growth compared to FY 2008. PLDP II has the largest disbursement in FY 2009 with BDT 0.73 Billion. Not all projects have microfinance component themselves as they often focus on non financial development aspects of the targeted poor. One such example is Programmed Initiatives for Monga Eradication (PRIME) which works in monga affected areas of Bangladesh. Monga is a bangla word referring to the yearly cyclical phenomenon of poverty and hunger that occurs in different parts of the country. The project provide employment opportunities for the monga season, emergency credit for households with a slightly higher income, consumption loans, primary health care and a carefully designed flexible credit support system. Microfinance component is supplemented by the core program, ultra poor program (UPP). PRIME aims to build beneficiaries coping capacity, and improve their skills and resources to secure their own futures by 5% PKSFs special programs provide a much needed support services during natural disasters among other unexpected events that often have detrimental impact on the ultra poor. Special programs account for about 4.5% of total loan disbursement in PKSF with Rehabilitation of Non-Motorized Transport Pullers and Poor Owners (RNPPO) dominating the pact with the disbursement of BDT 0.63 Billion in FY 2009. Similar to PRIME, Food Security for Vulnerable Group Development (FSVGD) and Ultra Poor (UP) Beneficiaries program also does not have its own microfinance component; rather the focus is on providing much needed capacity building services as well as for smoothening of consumption patterns. In addition to this, the program also created a revolving risk fund which compensates the beneficiaries/their spouse/family members during death of a family member or serious accidents.
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In the first decade, PKSF focused on strengthening program implementation and institutional development of its POs. In the second decade, PKSF has shifted gear to accommodate the economic and social change of Bangladesh. In so doing, PKSF integrated non financial services such as skill development activities into the programs. These initiatives deepened and widened PKSFs reach in its endeavor to generate employment amongst the poor of the country. The change in the level and type of need of the poor is evident in the demand for specialized services such as agriculture and seasonal loans which are tailored to the needs of the targeted poor. Another example is the increase in the loan size among different programs. Average loan size of RMC has increased by 8.5% to BDT 11,002, whereas for UMC it grew by 11% to 13,557 from FY 2008. PKSF garnered critical capability in managing crisis situations. In the face of natural calamities such as SIDR 2008 and AILA 2009, PKSF responded swiftly to address the needs of the crisis stricken poor. There were shortage of drinking water, shelter and loss of financial resources. Through projects such as Special Assistance for Housing of SIDR Affected Borrowers that helped build homes for the homeless; access to safe drinking water; and cash for work project was implemented for employment generation. Most importantly, PKSF utilized its network to deliver grants, free clothing, and food to all corners of the region devastated by the natural disaster. PKSF is stepping into the third decade since inception in 1990. In the new decade PKSF will take up bold initiative to incorporate education and health amongst its programs. Simultaneously, PKSF will also strive to address multi-dimensional aspects of development including generating employment with the purpose to provide a comprehensive development support which would include programs as microfinance, health, education, skill development among other things depending on the region.

Loan Disbursement
Strength of PKSFs performance is demonstrated by the trend of disbursement of loan in the last 19 years. Here, we are discussing the fund given to POs for onlending to their members; henceforth this excludes institutional development loans. As seen in Figure 1, PKSFs disbursement has grown steadily in the last two decades. In FY 2009, loan disbursement grew by 29% to BDT 18.17 Billion. Whereas, POs on-lending to members have grown tremendously with growth spikes in the FY 2002 and 2006 and has a five-year growth average of 24%. Today, disbursement by POs has reached BDT 85.16 Billion, a growth of 12% from last financial year.

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Loan Outstanding PKSFs loan outstanding, excluding institutional development loans, stood at BDT 28.98 Billion in FY 2009 as shown in Figure 2. It grew by 19% from last year, having a five-year growth average of 24%. Whereas POs loan outstanding for FY 2009 is BDT 45.80 having a growth of 9% compared to last year and a five-year average growth of 21%.

PKSF POs PKSF POs network gives the apex organization an unparallel strength in implementing its various activities aimed at poverty alleviation through employment generation. As shown in Figure 3, in FY 2009 PKSF has 257 POs, giving it access to all districts in the country. PKSF has been very focused on ensuring that strict procedures are followed for enrollment of new POs. It carries out due diligence and field level assessment among other initiatives to ascertain that potential organization become PKSFs PO Members PKSF network of POs stems from the POs members in the field. Majority of members are part of a group. In recent years, tendency for group formation has been declining. This is especially true in case of programs and projects that allow access to larger loans (above BDT 30,000 up to BDT 300,000). In FY 2009, total member is 11.42 Million, which grew by 2% from last year but having 10% as five-year growth average. Women Members From inception, PKSFs its activities have mainly targeted women and hence majority of the members are women as indicated in Figure 4. Since FY 1991, when 77% of members were women, it has now reached to 90% in FY 2009 with 10.24 Million women as members. Even though growth of women members were only 2% from last FY, the five year average growth is 11%.
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Borrowers Borrowers comprise of all members taking loan under various programs and projects. Total borrowers stood at 8.26 Million as of FY 2009 having a five-year average growth rate of 10%. Similar to women members, women account for 92% of borrowers in FY 2009 Institutional Development Disbursement (ID) Loan

PKSF recognizes that it is very important to enhance capacity as new technology, process and procedures are adopted over the passing of time. In order to ensure capacity development of PKSF and its POs, PKSF has a very rich capacity building program. In this program, institutional loan better known as ID loan are disbursed at a nominal interest rate to the POs for capacity development activities. This includes all form of institutional development such as enhancement of technology use at PKSF & PO level, implementation of management information system; development of office building, training centers and procurement of office equipment among other things. As seen in Figure 5, ID loan disbursement peaked in FY 2007 and settled at BDT 24.7 Million in FY 2009. PALLI KARMA-SAHAYAK FOUNDATION Summary of Foundation's Loan Program
A.Number of Active Partner Organizations

Sl. No. 1 2 3 4 5 6 Loan allocation Loan disbursement Loan recoverable Recovered Overdue loan Loan outstanding

Description Credit Program Credit Program Institutional Development Total Credit Program Institutional Development Total Credit Program Institutional Development Total Credit Program Institutional Development Total Credit Program Institutional Development

Cumulative up March 2011 million Taka) 123382.67 107144.57 287.09 107431.66 77480.92 263.44 77744.36 76156.35 262.34 76418.69 1340.90 1.11 1342.01 30988.22 24.75

199 toCumulative up (inMarch 2011 million US $) 1879.34 1626.56 1626.56 4.51 1631.07 1221.23 4.15 1225.38 1200.26 4.17 1204.43 20.52 0.07 20.60 426.31 0.34

to (in

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Total 31012.97 426.65 7 Rate of Recovery 98.29% B. Information on PKSF financed microcredit program of Partner Organizations Loan disbursement 638688.26 9656.73 Loan Recovered 575841.31 8674.74 8 Credit Program Loan outstanding 62847.30 982.02 Savings Balance 19993.24 320.80 Rate of Recovery 98.83% Male 867082 9 Number of Members Female9922139 Total 10789221 Male 706243 10 Number of Borrowers Female7507696 Total 8213939 NB. From the overdue amount Taka 1342.01 million mentioned above, Taka 236.55 million have already been recovered within April 2011. Including this amount the total recovery will be Taka 76655.24 million and the recovery rate will be 98.60% instead of 98.29%. Bangladesh: Moving Ahead Bangladesh has recently made significant strides in reducing poverty and in attaining Human Development Index. Since the 1990s the country has made good progress towards achieving a 1 per cent drop in the proportion of people living below the poverty line every year. Placing the highest priority to reducing poverty, successive governments uphill struggle has resulted in a sharp decline in poverty from 56.6% in 1991 to 36.3% in 2008. Simultaneously, in the area of Human Development Index (HDI), Bangladeshs rank now stands at 146. Between 1990 and 2007 Bangladesh's HDI rose by 1.96% annually from 0.359 to 0.543. The steadily improved development indicators have firmly place the country in the lower echelons of medium human development. With its huge 160 million population, predominantly rural, about 73 per cent, and a per capita PPP GDP of US$ 1,470, Bangladesh has already met one of the eight MDGs gender parity in primary and secondary education and is well on track to meet most of the others. PKSF: Learning, Innovating and Progressing Forward to a New Era of Development Its been 20 years since PKSF embarked upon the journey to effectively contribute to development through employment generation. Established by the Government of Bangladesh in 1990, the apex organization has moved beyond the initial scope of bringing access to finance to the rural poor and the underprivileged of the society. PKSF has gained in depth understanding and valuable experiences over the last two decades that resulted in better program design and implementation. In addition, the noteworthy achievement has been the progressive effort in developing non-financial programs that address the varied dimensions of development needs of the poor. PKSF has progressed to a new era of development by establishing a total household development strategy, which encompasses the development programs that addresses major social issues such as health and education among the poor. Capacity building initiatives and market linkage and development have become an intrinsic part of PKSF development programs. Working towards a total household development has become the central basis of our commitment PKSFs strength resides in its extensive and widespread microfinance institutions (MFIs) better known as Partner Organizations (POs) giving it access to all districts and sub-districts across Bangladesh. As of June 2010, PKSF has 262 POs providing development services that have grown in width as well as in breadth. PKSF has disbursed a sum of BDT 55,157 Crore (US$ 8.46 Billion) to about 9 million beneficiaries through its 262 Partner Organizations (POs) with a record credit recovery rate of over 98%.
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PKSF's POs include cooperatives, voluntary agencies, and non-government, semi-government and government organizations. PKSF comprises six core programs, eight projects and five special programs, amounting to nineteen activities. In this fiscal year, PKSF has achieved visible results from its mainstream programs with rural microcredit (RMC) dominating PKSFs performance in FY 2009. RMC, the largest component of PKSF, accounts for 41.5% of total FY disbursement reaching 70% of total number of borrowers. This is a mighty feat considering the total number of borrowers stands at 8.3 Million in FY 2009. Overall, core programs otherwise known as mainstream programs, has unparallel dominance accounting for over 83% of total disbursement of PKSF to POs in FY 2009. It also had a tremendous growth performance, over 36%, compared to last FY. Even though projects account for only 12% of total disbursement and almost 10% of total borrowers in FY 2009 much of the innovative learning is derived from PKSFs projects. In FY 2009, disbursement in projects grew by 40.8% with Learning and Innovation Fund to Test New Ideas (LIFT) leading the pact with 65% of growth compared to FY 2008. PLDP II has the largest disbursement in FY 2009 with BDT 0.73 Billion. Not all projects have microfinance component themselves as they often focus on nonfinancial development aspects of the targeted poor. One such example is Programmed Initiatives for Monga Eradication (PRIME) which works in Monga affected areas of Bangladesh. Monga is a Bangla word referring to the yearly cyclical phenomenon of poverty and hunger that occurs in different parts of the country. The project provides employment opportunities for the Monga season, emergency credit for households with a slightly higher income, consumption loans, primary health care and a carefully designed flexible credit support system. Microfinance component is supplemented by the core program, ultra poor program (UPP). PRIME aims to build beneficiaries coping capacity, and improve their skills and resources to secure their own futures. The project has successfully reduced occasional starvation during Monga by 5%. PKSFs special programs provide a much needed support services during natural disasters among other unexpected events that often have detrimental impact on the ultra poor. Special programs account for about 4.5% of total loan disbursement in PKSF with Rehabilitation of Non-Motorized Transport Pullers and Poor Owners (RNPPO) dominating the pact with the disbursement of BDT 0.63 Billion in FY 2009. Similar to PRIME, Food Security for Vulnerable Group Development (FSVGD) and Ultra Poor (UP) Beneficiaries program also does not have its own microfinance component; rather the focus is on providing much needed capacity building services as well as for smoothening of consumption patterns. In addition to this, the program also created a revolving risk fund, which compensates the beneficiaries/their spouse/family members during death of a family member or serious accidents. Last two years has been the period where innovative programs became integrated into the mainstream programs. One such example is the launching of agro-based program. Based on the knowledge derived from Microfinance for Marginal and Small Farmers Project (MFMSFP) PKSF gathered critical experience and know how that helped it to launch the innovative initiative titled Agricultural Sector Microcredit (ASM) as a mainstream program. One of its salient features is capacity building on sustainable use of modern agricultural technology for the targeted farmers. In the new decade, PKSF has taken the bold initiative to focus on developing and strengthening multidimensional development aspects such as nonfinancial programs that will encompass education and health amongst its programs. Simultaneously, PKSF will also strive to enrich and strengthen capacity building programs. Through innovative programs and comprehensive development approach PKSF aims for employment generation, enhanced capabilities, and overall betterment of livelihood of the poor. PKSFs Vision PKSFs vision is to alleviate poverty and improve the quality of life of the poor the landless and the asset-less people by providing them with resources for creation of employment with a view to enhancing economic conditions.
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Highlighted Objectives of PKSF a. Provide assistance (including financial, institutional, advisory and training) to non-government, semi-government and government organizations, voluntary agencies and societies, local government bodies, institutions, and groups of individuals as POs that generate income and employment opportunities for the poor, landless and asset-less. b. Support, promote, develop and identify employment opportunities for the poor, landless and asset-less; and to provide them with credit as well as other assistance including education and training as may be necessary for development of their skills. c. Build and strengthen the institutional capacity of the POs and enhance their ability to provide access to resources for the poor. d. Support, promote and sponsor innovative programs and projects for creating awareness among the poor to improve their quality of life and to make them self-reliant through the process of creating productive employment opportunities for them. e. Help the poor to diversify and strengthen their survival strategies, enhance their security, give them access to assets and rights, and augment their self-respect providing them greater choices and independence. f. Promote and stimulate innovative ideas and methods which emphasize and focus on new technologies and ideas for employment creation and productive activities for poverty alleviation g. Set up an effective Management Information System (MIS) for regular and proper monitoring and evaluation of the poverty alleviation activities of the POs supported by PKSF. Functions of PKSF: As an apex institution involved in the long-run financing of organizations with microfinance services, PKSF puts utmost emphasis on attainment of both financial and institutional sustainability of these organizations. In order to achieve the objective of sustainability, PKSF performs the major functions expected of an apex organization. These include, among others: a. Provision of microcredit funds to POs b. Developing best practices for the microcredit sector c. Institution/capacity building support to POs d. Advocacy for appropriate policies and regulations useful for the microcredit sector Operational Strategy The basic operational strategies of PKSF have been drawn from its objectives, which are the following: a. It does not directly lend money to the poor but rather reaches its target groups through its POs; b. It provides greater thrust to institutional development; and c. It does not favor a particular model; but rather encourage innovations and various approaches based on experience. Legal Structure Legally PKSF is a company limited by guarantee meaning company not for profit and is registered under the Companies Act of 1913/1994 with the Registrar of Joint Stock Companies. The legal structure of PKSF allows flexibility, authority and power to take programs and implement them throughout the country and managing its affairs as an independent organization. Funding of PKSF
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PKSF mandate authorizes PKSF management to mobilize funds in the forms of grants, loans and contributions from a wide variety of sources, which include the Government of Bangladesh (GOB), private individuals and organizations, foreign governments, international donors and lending agencies and capital markets. So far PKSF has received funds from the GOB, the IDA/World Bank, the USAID, the Asian Development Bank (ADB), Department for International Development (DFID), European Union and the International Fund for Agricultural Development (IFAD). Governance of PKSF PKSF comprises of two constitutional bodies as per Article of Association: the General Body and the Governing Body. The General Body The General Body of PKSF convenes once a year in the Annual General Meeting (AGM) to provide overall policy guidance and approve the annual budget that has already been endorsed by the Governing Body. As of March 2010, the General Body consists of 15 members. The total number of members of the General Body shall not exceed 25 members, out of which the GOB may nominate not more than 15 members from persons associated with the government agencies, voluntary organizations or private individuals having a successful record of service in poverty alleviation and/or interest in such activities. The remaining 10 members, representing POs and/or private individuals, are nominated by the General Body in the AGM. The Governing Body The Governing Body of PKSF plays a role as the executive body that carries out the responsibility of determining the direction and scope of PKSFs activities to achieve its goals. It is composed of maximum 7 members that include: the Chairman of PKSF, who is nominated by the GOB from persons who are not in government service; the Managing Director who is appointed by the Governing Body in consultation with the GOB; two members are nominated by the GOB from persons demonstrating achievement in poverty alleviation; and the remaining three are non-GOB members having noteworthy contribution in the development arena elected by the General Body in the AGM. As of March 2010, there are 6 members in the Governing Body. The Chairman Dr. Qazi Kholiquzzaman Ahmad is the chairman of the policymaking bodies and consequently of PKSF. His prominent achievement has been in the field of climate change. He was a member of the Intergovernmental Panel on Climate Change (IPCC) that won the Nobel Peace Prize in 2007. In Bangladesh, he is a well respected economist and the founder president of Bangladesh Economic Association. The Managing Director Dr. Quazi Mesbahuddin Ahmed, a former member of the Planning Commission, is the Managing Director of PKSF. The Managing Director carries out responsibilities as the Chief Executive of the organization and he is also an ex-officio member in both the General and Governing bodies. He serves as the conduit between the policy makers and the PKSF staff, who carries out the organizations day-to-day affairs. Management PKSF management is comprised of four broad divisions, including: OOSA, BIPOOL, Administration and Audit. The divisions are as the followings: a. OOSA Division: This division fully concentrates on credit program with POs Operating in Small Areas (OOSA), which includes mid-size and small organizations. b. BIPOOL Division: Its main responsibility is to implement credit program with the Big POs Operating in Large (BIPOOL) areas. This division also includes finance and IT cells.
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c. Administration Division: This division deals with day-to-day general administration, alongside training, research, publications and communications; library and archive; construction and maintenance; human resource, security, and legal affairs among other things. d. Audit Division: It is a division that works as a watchdog for ensuring transparency in all aspects of financial affairs of PKSF. It has two wings internal audit and external audit. The audit division is responsible for internal audit of PKSF and ensuring regular audit of the POs by external audit firms. PKSFs project activities have been divided into three Program Management Cells (PMC): PMC 1, 2 & 3. Each cell looks after designated projects. As of June 2010, PKSF management team comprises of 291 staff. The core staff stands at 208, project staff is 78 and short term staff is 4. PKSF focuses on recruiting individuals having academic strength that compliments work in development. All new recruits are given time to garner experience in overall operations in the field as well as exposure to training to enhance their capabilities in credit assessment, monitoring and overall financial management. PKSFs Operational Activities PKSF comprises six core programs, eight projects and five special programs, amounting to nineteen activities. Core programs are the driving force behind PKSFs expansion and growth. They include rural microcredit (RMC), urban microcredit (UMC), microenterprise program (ME), ultra poor program (UPP), agriculture sector microcredit (ASM), and seasonal loan (SL). The eight projects are Learning and Innovation Fund to Test New Ideas (LIFT), Program Initiatives for Monga Eradication (PRIME), Microfinance and Technical Support (MFTS), Microfinance for Marginal and Small Farmers (MFMSF), Second Participatory Livestock Development Project (PLDP-II), Disaster Management Fund (DMF), Livelihood Restoration Program (LRP), and Emergency 2007 Flood Restoration and Recovery Assistance Program (EFRRAP). PKSFs Special Programs consist of five programs, namely Special Assistance for Housing of SIDRaffected Borrowers (SAHOS), Rehabilitation of SIDR-affected Coastal Fishery, Small Business & Livestock Enterprises (RESCUE), Microfinance Support Intervention for Food Security for Vulnerable Group Development (FSVGD) and Ultra Poor (UP) Beneficiaries program, Rehabilitation of NonMotorized Transport Pullers and Poor Owners (RNPPO), and Financial Services for the Overseas Employment of the Ultra Poor (FSOEUP). Features of Credit Activities PKSF provides loans to three categories of POs Organizations Operating in Small Areas (OOSA); Big Partner Organizations Operating in Large Areas (BIPOOL); and Pre-PKSF POs. a. PKSF charges 4.5% service charge per year to OOSA and Pre-PKSF category POs and 7% service charge per year to its BIPOOL category POs. b. Loans received by OOSA and Pre-PKSF category POs from PKSF are repayable within a period of 3 years. First 6 months are considered as a grace period and loans along with service charge are to be repaid in 10 quarterly installments within the rest 30 months. c. Loans received by BIPOOL category POs are payable in 4 years in 12 equal installments with a grace period of 12 months. d. The maximum and minimum loan refund is flexible in some programs. Developing Best Practices for Microcredit Sector PKSF has prepared a number of policy guidelines and standards for its POs and for the microcredit sector involving the practitioners of PKSF, POs and others concerned stakeholders. PKSF reviews its policies and programs continuously and adjusts them to meet the changing requirements. Major policy guidelines and standards prepared by PKSF are:
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1. Guidelines for selection of POs and borrowers for Rural, Urban, Hardcore poor and Microenterprise; 2. Guideline for Accounting; 3. Policy for Loan Classification; 4. Guideline for Designing Internal Control System for POs of PKSF; 5. Guideline for Management of Savings; 6. Guideline for Management of Service Charge Earnings; 7. Guideline for Avoiding Overlapping; 8. Management Information System (MIS); 9. Guideline for Setting Performance Standards and Categorization of POs; 10. Financial Ratio Analysis; 11. Guideline for Indicators for Early Warning System; 12. Business Plan for POs; 13. Guideline for Management Audit of POs by PKSF; 14. Guideline for Internal Audit of POs by PKSF; 15. Audit TOR for External Auditors of PKSF for Auditing PKSF; 16. Audit TOR for External Auditors of PKSF for Auditing its POs; 17. Audit TOR for Auditors appointed by POs; and 18. Policy for Loans for Institutional Development. Institutional Development PKSF puts great emphasis on institutional development for itself as well as for its POs. Through such initiative PKSF is ensuring sustainability of itself and its POs. Institutional development has implications on a number of areas such as program outreach, absorption capacity of the POs, supervision and monitoring, financial management and control, personnel policy including human resource development (HRD), sustainability of microcredit program, etc. The institutional development component includes training, on-site technical assistance, study visit at PKSF, loan for institutional development of POs, workshops/seminars, research program, and internship. Training: Training activities aim at developing the capacity of PKSF officials as well as POs credit personnel. PKSFs training wing conducts highly customized training courses at PKSF training centre. The other courses are outsourced to training institutes belonging to both public and private sectors of the country following the training plan incorporated in the yearly training calendar. Training Modules: Training programs implemented by PKSF are operation based rather than theoretical that covers a wide range of subjects. PKSF has developed 22 training modules out of which 7 are for PKSF staff and 15 for POs staff. The modules have been prepared based on a Training Need Assessment (TNA). PKSF also regularly organizes inter-PO study visits/experience-sharing programs for its POs and conducts on the spot training (quick, need-based, in-situ) for the POs staff with a view to strengthening POs capacity. Details of the Training Modules for PKSF Staff and POs Staff are given in Annexure 3. On-site Technical Assistance: During their regular intensive field visits for on-site monitoring of the POs programs, PKSF officers provide the POs advice on different aspects of management and operations of their microcredit programs. This on-site technical assistance has been found very effective in improving the efficiency of POs programs.
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Training for External Organizations: PKSF also conducts training for domestic and foreign organizations that are not its POs but have microcredit activities. Study Visit at PKSF: PKSFs performance as an apex microcredit funding organization has attracted the attention of policymakers, professionals and practitioners of microcredit at home and abroad, who often visit PKSF to share their experience and expertise. PKSF model is now being replicated in countries of Asia, Latin America, and Africa. Loan for Institutional Development of POs: PKSF is implementing a loan program for its POs capacity enhancement since 1997. PKSF gives subsidized loan (at 1-% service charge rate) to its POs to purchase computers, motorcycles, bicycles, engine boats, and photocopiers. PKSF also provides soft-loan (at 1-% service charge rate) to construct office-cum-training centre of its POs. The recovery rate of ID loan is almost 100%. Workshops/Seminars: PKSF regularly organizes workshops/seminars on various pertinent issues to strengthen its multidimensional development operations of its POs. Research Program: PKSF gives much importance to research for institutional development. The objective of research program is to strengthen and support the microcredit program of PKSF and its POs. A research director has been appointed to oversee the program. Advocacy for Appropriate Policies and Regulations of the Microcredit Sector: PKSF lobbies with the Government and other relevant organizations for ensuring appropriate policies and regulations in the microfinance sector of the country. Significant progress has been made toward preparing a user-friendly regulatory framework for the countrys microcredit sector with substantial contribution from PKSF. PKSF is an important member of the Microfinance Research and Reference Unit (MRRU) set up by the government for preparing a microfinance regulatory framework. The Key Features for a Successful Apex Institution An Apex institution needs to be Government sponsored but in its policy guidelines Government intervention should be limited. The highest policy making body of an Apex institution must be consisting of distinguished personalities of the country and the persons of national and international repute. The management must have authority, power and flexibility to undertake programs and implement them throughout the country learning by doing and innovative approach and managing its affairs as independent organization. Those interested to use PKSF facilities may contact Manager (Admin) and Manager (Training) of PKSF. Interested organizations may contact PKSF office to get details about eligibility criteria, loan application form and other information related to management and operation of PKSF. Rural Microcredit (RMC)

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RMC is the first loan program of PKSF since its inception in 1991. RMC program is present in all 257 POs. Therefore, it is also the largest core program in PKSF in terms of disbursement and number of borrowers. Main IGAs undertaken by the rural poor include crop and non-crop agriculture, small trade; activities related to transports and are often family-based. In FY 2009, PKSF disbursed loan amounting to BDT 7.55 Billion to its POs under RMC, which grew by 22% compared to FY 2008. POs on-lent to its borrowers in the amount of BDT 50.77 Billion, which has a growth rate of 11%. As of June 2009, average loan in RMC stands at BDT 11,002. While loan outstanding of PKSF to POs and POs to Borrowers are BDT 14.07 Billion and BDT 27.59 Billion respectively. About 71% of RMC members are borrowers, i.e. 6.01 Million. Urban Microcredit (UMC) The urban poor constitute those living within the boundaries of municipal/metropolitan areas of Bangladesh. UMC borrowers are distinct from the RMC borrowers in that often urban poor are landless, floating (no fixed location for living), and they take loan for mostly trading. The urban poor live in slums and makeshift shacks next to the roads, which make them vulnerable to eviction. Nonetheless, they are also considered to be very resourceful and hardworking. Therefore, PKSF launched UMC in 2001 for the poor living in urban areas for employment generation. UMC program is available in all PKSF POs. UMC is the second largest program in PKSF in terms of loan disbursement, which is 11.55% of the core programs in FY 2009 as seen in Figure 6. UMC borrowers account for only 8% of all borrowers in the core program as seen in Figure 7. As per FY 2009, PKSF disbursed BDT 1.75 Billion to its POs, which grew by 22% since last FY. POs disbursed BDT 8.71 Billion to the borrowers, which is fairly similar to last years disbursement. Figure 9 shows how successfully POs have been able to revolve PKSF fund over the last five years. The FY 2009 average loan for UMC is BDT 13,557, which is about 19% higher to RMC average loan. UMC also has 84% of the members as borrowers, i.e. 0.62 Million. PKSF to POs and POs to Borrowers loan outstanding amounts to BDT 2.89 Billion and BDT 4.38 Billion respectively.

Microenterprise (ME)
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FY 2009 has been an exceptional year for Microenterprise Program (MEP). MEP focuses on enhancement of microenterprise and provides loan ranging from BDT 30,000 to BDT 300,000. To further strengthen and expand the MEP, PKSF and International Fund for Agricultural Development (IFAD) started implementing Finance for Enterprise Development and Employment Creation (FEDEC) from March 2008. Under FEDEC, PKSF has taken the initiative, a first of its kind in PKSFs history, to implement Value Chain Development (VCD) Project. The project will focus on strengthening non-financial support services such as skill training, market access, which are vital for successful implementation of microenterprise development. The major focus of the project is to identify problematic links in the value delivery network (VDN) of a targeted subsector and work towards bringing about sustainable and commercially viable solution. This will lead to a more efficient and effective value delivery process enabling different stakeholders to reap greater income enhance capability and productivity. The uniqueness of ME program is that it directly focuses on employment generation through enterprise development at micro level, henceforth, successfully achieving PKSFs prime objective. Figure 10 depicts MEPs strong growth in loan disbursement achieving heights of BDT 1.95 Billion in FY 2009, which is 31% higher compared to last financial year. Whereas POs disbursement at the field amounts to BDT 8.94 Billion, a 21% higher than FY 2008. ME Program caters to 0.14 Million members of which over 92% are borrowers. Interestingly, 67% are women borrowers unlike RMC and UMC. In FY 2009, the average loan size is BDT 64,607 at field level. This is a much higher average compared to RMC and UMC. 136 POs implement MEP at field level, which is about 52% of PKSF POs. Figure 11 depicts the variety of loan use among ME borrowers. Small business dominates with about 67% of loan use. In order to respond to a major supply side constraint on ME sector development, PKSF is working towards strengthening the capacity of its POs by providing necessary services to support micro entrepreneurs. One of the major contributions in this regard has been the development of six training modules encompassing issues of microenterprise management and lending and value chain development. The modules are designed for staff of PKSF and POs. Furthermore, PKSF has been able to establish separate ME cells in 40 PKSF POs so that the staff at field level are capable of responding to the needs of the ME members whose needs are distinct from those of the rural and urban microcredit members. ME borrowers require more due diligence in loan assessment and borrower profiling is more elaborate. Therefore, it has been PKSFs priority to implement robust capacity building program to enhance the capacity of PKSFs staff, POs staff and borrowers. It mainly focused on developing capability in the areas ME management and lending, subsector analysis and value chain development amongst the PKSF and PO staff. Majority of the training were for POs staff, which is about 74%. Total of 23 trainings were conducted and 597 participants attended the training. Ultra Poor (UP) The ultra poor, also known as poorest of the poor, are often left out of the mainstream credit program because of the perceived believe that they are of high risk. To better understand these vulnerable groups PKSF launched a pilot project, Financial Services for the Poorest (FSP) in 2002. The project concluded that microcredit could be given to the poorest of the poor. FSP paved the way for PKSF to launch the mainstream Ultra Poor program (UPP). The program focused on the special need of the ultra poor. From FSP experience it was found that the ultra poor require high level flexibility in repayments schedule, savings, attending group meetings, and grace period, among other things. In addition, some of the
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financial components of the program differ from others in that the service charge is lower, charges related to purchase of passbook and forms of membership and loan application are waived. The program recognizes that these poor require non-financial services, which include skill development, health services, water & sanitation; in addition to financial support.

This program brings in the people who cannot meet their basic needs, as they do not have regular and adequate income. People of lower socio-economic strata, such as, beggars, daily laborers; bonded laborers and domestic helps, and floating sex workers; members of female headed households dependent on others, elderly people, disabled and those who do not have any alternative source of income are brought under this program. The program particularly targets the areas that are inaccessible and having very limited employment opportunities for the ultra poor. So far 98 POs are implementing this program. As seen in Figure 12, in FY 2009 PKSF disbursed loan amounting to BDT 1.40 Billion to its POs, increasing disbursement by 12% since last year. Whereas, POs were able to revolve the fund to disburse BDT 4.27 Billion to the borrowers, a 6% higher than last fiscal year. Although 9% of core program disbursement of PKSF is attributed to UPP it accounts for 10% of the core program borrowers. UPP encompass 0.94 Million members of which over 78% are borrowers. As of June 2009, the FY average loan was BDT 5,739, which grew by 8% since last year. This indicates the progress of the ultra poors capacity to utilize their loan. AGRICULTURE SECTOR MICROCREDIT (ASM) Direct lending in agri-related sector was considered risky but, nonetheless, loans were used for this sector in some form or another through PKSFs various programs. In July 2005 PKSF commenced the Microfinance for Marginal and Small Farmers (MFMSF) project with the inbuilt component of agriculture loan for agri-related IGA. This was a way to define the level of risks in this sector and fine-tune the design of providing credit to agriculture sector with minimized risks. Based on the learning derived from MFMSF project POs, PKSF garnered critical experience and know how that helped to launch its own innovative initiative titled Agricultural Sector Microcredit (ASM) as a mainstream program in 2008. Small and marginal farmers and their families are eligible to avail this loan. ASM provides loans only to fresh members and has a maximum tenure of 12 month. It has flexibility in terms of repayment and a loan ceiling of BDT 50,000. One of the components of this program is capacity building on sustainable use of modern agricultural technology for the targeted farmers. 63 POs are implementing this program having 36,733 borrowers. As of June 2009, the FY average loan size was BDT 9,629. In FY, loan disbursement stood at BDT 0.79 Billion from PKSF to POs and BDT 0.78 Billion from POs to field. At the end of June 2009, loan outstanding was BDT 0.60 Billion for PKSF and BDT 0.36 Billion for POs. In Figure 13, we can see that crops account for 88% of loan use. SEASONAL LOAN (SL)
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Over the years it became evident through various programs and projects of PKSF that borrowers require short-term loan at specific time of the year. For example, there is demand for short-term credit to purchase cows for beef fattening, usually for 4-5 months before Korbani Eid. Repayment can be made in one installment. It is considered to be lucrative resulting in high profit in short period of time. In recognition of such demand PKSF launched the innovative initiative, namely, Seasonal Loan (SL) as a mainstream program in 2008. Only the RMC members can access this loan with or without RMC loan. The prominent features of SL are that the maximum tenure for SL is 9 months, repayment can be done in one installment and the loan can be used for any seasonal IGAs. A borrower can take maximum BDT 50,000 as a seasonal loan. In FY 2009, PKSF disbursed loan amounting to BDT 1.69 Billion to its POs under this program. In turn, POs disbursed BDT 2.01 Billion to the borrowers. At the end of June 2009, loan outstanding was BDT 0.70 Billion for PKSF and BDT 0.68 Billion for POs. 107 POs have been implementing SL program at field level and within the first year of implementation there are already 59,377 borrowers. As per Figure 14, major categories in which SL are used include beef fattening and crops. Special Assistance For Housing Of Sidr-Affected Borrowers (Sahos) The cyclone SIDR imposed a heavy toll on lives and assets in 2007. It damaged houses of the people; particularly the houses of the poor were damaged fatally. Towards providing interest-free mid-term loan facility to the cyclone affected households for the reconstruction/ repair of their houses, PKSF created a special fund titled Special Assistance for Housing of SIDR-affected Borrowers (SAHOS), of BDT 500 Million which was implemented through 30 POs. In order to relieve the suffering of the cyclone victims, the charges imposed in regular microcredit programs, such as, admission fee, purchase of passbook, and loan application fee were waived for the borrowers under this credit program. As of June 2009, PKSF has disbursed BDT 391 Million to its POs. The POs disbursed BDT 320 Million to 42,339 beneficiary households of 14 districts under this program. The recovery rate of the loan is 92.77% at the field level. The average loan for the year stood at BDT 7,618. MICROFINANCE SUPPORT INTERVENTION FOR FOOD SECURITY FOR VULNERABLE GROUP DEVELOPMENT (FSVGD) AND ULTRA POOR (UP) BENEFICIARIES PROGRAM PKSF, with the financial assistance of European Union (EU) is implementing Microfinance Support Intervention for Food Security for Vulnerable Group Development (FSVGD) and Ultra Poor (UP) Beneficiaries program since January 2007. It is being implemented through its 31 POs in 16 districts of Rajshahi division and Jamalpur, Sherpur and Tangail of greater Mymensingh region. The program beneficiaries are members of PKSFs Ultra Poor Program. The program does not provide any microfinance services. It facilitates access to microfinance services through UP program and capacity building services to support development and implementation of sustainable income generating activities. A revolving risk fund has been created under this program to compensate the beneficiary/ the spouse/ family members in case of death or serious accidents. As of June 2009, 115,430 beneficiaries were trained on skill development training on various IGAs, microcredit and savings management. So far a total of 2,576 staff of PKSF and POs has been trained in the
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country and abroad. Table 3: Brief Capacity Building Activities of the Program Trained Participants No. Skill Development training 78,327 Ultra Poor beneficiaries of UP program of PKSF Microcredit and savings management 37,103 Former FSVGD beneficiaries who are enrolled to the training UP program of PKSF TOT on Microcredit Management 876 Midlevel officers of POs Microcredit and Financial Management 775 Midlevel officers of POs Group dynamics, savings and Microcredit 725 Field Organizer of POs management Local Training and study visit 83 PKSF & PO Officers Foreign Training and study visit 117 PKSF & PO Officers Type of training Rehabilitation Of Non-Motorized Transport Pullers And Poor Owners (Rnppo) Program The program Rehabilitation of Non-Motorized Transport Pullers and Poor Owners (RNPPO), initiated in July 2007, was undertaken for a period of two years with the total fund of US$ 17.0 Million. It was funded by the World Bank with US $ 15.0 Million and PKSF and POs with US $ 2 Million. The primary focus of the program was to rehabilitating the non-motorized transport pullers and poor owners, who were affected by the ban to drive their transports in some roads of Dhaka city. Up to June 2009, PKSF has disbursed BDT 713.69 Million under this program in favor of its 10 POs. The POs has disbursed BDT 629.03 Million to the beneficiaries. The recovery rate of the loan at the field level is 97.20%. Although it was a very short-term program, it showed how dynamically the poor could adapt to new conditions and how efficiently they could take up new occupations provided they are given proper guidance and necessary financial support.

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BRAC
BRAC is the largest NGO in Bangladesh and likely of the world. It started its journey in 1972 after the independence of Bangladesh to participate in the rehabilitation of rural Bangladesh. The pioneer of the project is Fazle Hussain Abed, who was working as senior executive in Shell in London during the liberation and decided to come back to Bangladesh after the war. Started as a small scale NGO with a twin vision of alleviation from poverty and empowerment of women, it has now 100,000 staff spread over throughout the country and beyond the border. It programs of achieving the ultimate goal spread from microfinance to education to health. With the involvement of BRAC in different national and international programs, BRAC is occasionally drawn into controversies. Agriculture Program BRAC's Agricultural Program aims to improve the livelihoods and nutritional status of small and marginal farm households through technology transfer. Our agricultural extension activities cover horticulture and crop farming. We have also established a modern soil-testing laboratory. By the end of December 2007, we had tested 553 soil samples supplied by farmers from different locations of the country. BRAC targets mostly landless and marginal land owning households as clients for our programs. We are also engaged in the marketing of vegetable seeds and tree saplings to help poor women increase their income through intensive use of their home gardens. We contribute to the development of the fisheries sector by establishing hatcheries for the supply of fish fingerlings and spawn. In the crop sector, we are involved in the production and distribution of improved varieties of rice, maize and vegetables. BRAC currently controls 60% of the seed market for hybrid maize and 20% for hybrid rice. Economic Development BRAC Economic Development Program provides the cornerstone for all of BRACs development work. It uses a participatory, peer supported and multisectoral strategy to offer poor rural women the skills and opportunity to achieve sustainable improvement in their livelihoods, and attain dignity and self-reliance. This program covers microfinance, institution building, income generating activities and program support enterprises. Village Organisations BRAC believes that a common platform created and owned by the poor themselves is a crucial prerequisite whereby the poor can make themselves count in the development process. The Village Organisation (VO) is an association of poor, landless people who come together with the help of BRAC to improve their socio-economic position. The VO promotes a structured organisation of the rural poor with particular emphasis on womens participation. The main goal of the VO is to strengthen the capacity of the poor for sustainable development and enable the poor to participate in the national development process. The VO is also the link between rural people and BRAC. To date, BRAC has organised a total of 293,016. Education In recent years, Bangladesh has made significant progress in the education sector, having achieved a primary enrolment rate of over 92 percent and gender parity at both primary and secondary levels. High dropout rates, particularly among girls, and lack of universal access remain a problem. Access to education is an issue particularly for children living in remote areas, from extremely poor households or ethnic minority groups, and those with special needs. There are also few services to prepare children of illiterate parents to enter and stay in school. The dropout rate among these groups is especially high.
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Another major challenge for all education service providers in Bangladesh, including the government, continues to be in the provision of quality basic education. Education today faces the challenge of creating a level playing field for all children in an increasingly globalised world. Education should provide children with the attitude as well as the skills that are conducive to promoting creativity, problem solving, and coping with uncertainties. Bringing every child into the classroom is no longer enough - each child is entitled to a high quality of education that will best prepare them for the future. The goal of the BRAC Education Program is to make a significant contribution to the achievement of education for all in Bangladesh. We aim to improve the quality and delivery of services in education appropriate to the needs of poor children, in particular girls, and to increase their access to those services. Our purpose is to help fill the remaining gaps in coverage, retention, and quality of compulsory primary basic education in Bangladesh. We launched our education program in 1985 with 22 one room primary schools. Since then, our education program has become a leader in providing non-formal education primary education to underprivileged children out of the formal education system. Our schools and teachers work to build the skills and confidence of the children and motivate them to continue their education through the formal system. We now provide pre-primary and primary education in collaboration with our partner NGOs, targeted towards the needs of marginalised children in both rural and urban settings. We also work with rural secondary schools through our Post-Primary Basic Education Program, livelihood development for adolescents, and Continuing Education Program for rural youth and adults. BRACS INTERNSHIP UNIT COME AND LEARN FROM THE BRAC EXPERIENCE BRAC started as a small scale relief and rehabilitation organisation in the aftermath of the Bangladesh Liberation War in 1972, to help poor people come out of the devastation and trauma of the war. From then on, through multifaceted interventions, the organisation has contributed significantly to the field of development in the last three decades; emerging as the largest development organisation in the world today, employing more than 100,000 staff members, and reaching over 110 million people. BRACs innovative and groundbreaking programs in health, education, economic and social development and its holistic model of tackling poverty have been so successful that they are now being replicated in countries like Afghanistan, Sri Lanka, Tanzania, Uganda and Southern Sudan, with operations also in the US and UK. Every year, BRAC receives many requests from interested candidates who want to work as interns with the organisation and learn from its activities and approaches. BRACs internship program offers internships to local and international students who are looking to gain exposure to the operations of various BRAC programs. BRAC also has internship opportunities for professionals that may lead to employment within the organisation or for them to get involved in various BRAC projects where they could bring in their expertise and valuable insights. The internship program is only available with the BRAC Bangladesh operations and has not yet been expanded to BRACs international ventures in Africa or Asia. Knowledge & Capacity Building Given that development is a complex process requiring a strong dedication to learning, sharing of knowledge and being responsive to the needs of the poor, BRAC places a strong emphasis on organisational development while simultaneously engaging in the process of capacity building on a national scale to accelerate societal emancipation. Solar Energy BRAC has been promoting solar energy for rural households who live in the 50,000 villages outside of the national power grid. Through microenterprise loans, villagers choose from a selection of home
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packages that can provide up to four hours of power each night and are capable of running a television, a couple of light bulbs and mobile phone chargers. The system includes a solar panel, battery, charge controller, inverter, cable, switch and accessories. The program is currently financed by the World Bank through the Infrastructure Development Company Limited (IDCOL). To date, we have successfully installed 36,830 solar panels bringing renewable energy to 180,000 rural people. Governance and Financials BRAC Internal Control System is designed to get reasonable assurance about effectiveness and efficiency of operations, reliability of financial data and compliance of applicable rules, regulations and procedures. Management's integrity, attitude, actions, and ethical values help to raise consciousness control among the staff. BRAC management believes that controls are important to achieve the objectives and communicates its view to staff at all levels. Clear policies and procedures, documentation process, table of authority, segregation of staff duties, supervision and accountability have made the organization transparent. Considering the internal control a continuous process BRAC periodically reviews and modifies the system in the changing circumstances. At the top of its control mechanism, there exists the willingness of BRAC Governing Body to ensure internal control and transparency. Health Health remains an integral component of BRACs development intervention since its inception in 1972. By improving the health of the people, especially the poor, and promoting the capacity of a community to deal with health problems, the health program contributes to achieving BRACs twin objectives of poverty alleviation and empowerment of the poor. Over the years, BRACs health programs have evolved in step with the national and global health priorities and changing knowledge base. Starting from small scale curative care to a large scale Oral Therapy Extension Program (OTEP) to fight massive diarrhoeal deaths in the 1980s, we have gone through successive programs in the nineties including Womens Health and Development Program (WHDP), Reproductive Health and Diseases Control (RHDC) Program and National Nutrition Program (NNP). Over time BRAC has forged successful partnerships with the government in implementing different health programs such as family planning, immunisation, tuberculosis control and malaria control. In addition to this, BRAC is now actively collaborating with the present Health, Nutrition and Population Sector Program (HNPSP) of the Government of Bangladesh. Since 2002, all BRACs health interventions have been incorporated under the BRAC Health Program (BHP).Today; we reach more than 92 million people with 18,000 staff members and 68,095 all-female community health volunteers working in all 64 districts of Bangladesh. The health interventions are delivered through four components: BRACs own programs, partnership programs with the government, facility based services, and pilot initiatives. Our maternal, neonatal, and child health programs currently target 8 million urban slaum dwellers and 11 million rural people. The tuberculosis control program has already reached 86 million people in 42 districts. Human Rights and Legal Services BRAC introduced the Human Rights and Legal Services (HRLS) program in 1986 when a BRAC study on power relations revealed that social conflicts and tensions in rural areas are mostly linked to land and human rights violations and violence against women. Poor people involved in such conflicts are often denied justice in the village shalish (arbitration). They also suffer severe financial crisis due to resource drains if such conflicts lead to court cases. The HRLS program is therefore aimed at making BRAC's VO members as well as others in the community aware of their basic rights and works to educate them on rudiments of laws that have direct bearing on their lives. Related Institutions The related institutions of BRAC are independently run organisations that are fully or partly owned by BRAC. Many of them came about to fulfill capacity building needs of the country. Social Enterprises
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BRAC has a holistic approach to poverty reduction and empowerment of the poor. If we come across a problem in a poor person's life, then we look for solutions. Sometimes that solution is a new development programme, sometimes it is a new financial service within our microfinance programme, and sometimes it is a business solution - a social enterprise that directly benefits and meets a poor family's needs. Social Development BRAC began its social development program in 1977. It is one of our core programs alongside microfinance, health, education and human rights and legal services. We aim to empower the poorest people by increasing their human, social and political assets so they are aware of their rights, can claim their entitlements and resist exploitation. Highlights of 2008 New Initiatives BRAC signed an agreement with five national NGOs to aid in replicating the Challenging the Frontiers of Poverty Reduction: Targeting the Ultra Poor (CFPR- TUP) Program. The organisation has made a two-year commitment of over Tk. 17 lakh in funding the five NGOs for the replication of the program. The Government of Bangladesh and BRAC jointly initiated a pilot program to improve the standard of education at selected government and registered non-government primary schools. The objectives of the pilot program are to increase attendance, reduce high drop out rates, raise course completion rates to over 80% and improve overall quality of teaching and learning at government and registered non-government primary schools in 20 sub-districts of 9 districts. BRACs Adolescent Development Program initiated Protibhar Khoje, a talent competition to encourage members of its adolescent clubs to participate in cultural and sports activities. BRAC and MasterCard Foundation expanded microfinance services in Uganda. It is a $19.6 million program to expand financial services to the poor across Uganda, benefiting approximately 2 million people. The program will provide economically active women in Uganda with loans, training and technical support to enable them to improve their livelihoods. Additionally, the program will expand vocational and life-skills education for adolescent girls. BRAC built shelters for cyclone SIDR victims and helped farmers and fishermen to restart their lives in affected areas. These include building 17 cyclone shelters and 1182 houses, reconstructing 927 school buildings and 2634 houses, distributing books and supplies for primary and pre-primary school students, performing long term agricultural rehabilitation work and crop production, replanting 4 million trees and distributing 1.5 million saplings to 163,575 households, generating short term employment for 1,99,505 people through cash for work projects and giving disaster preparedness training to BRAC staff for capacity building. Major Events Regional Workshop of South Asia Sanitation and Hygiene was jointly organised by BRAC, IRC and Water- Aid at the BRAC CDM in Gazipur. It brought together 53 practitioners working in South Asia, including those with specific experience in Bangladesh, Nepal, India, Pakistan, Bhutan and Vietnam. The group raised their issues and pushed for change during the International Year of Sanitation (IYS) and the third South Asia Conference on Sanitation (SACOSAN) in 2008. Aarong, BRACs handicraft retail enterprise celebrated its 30th anniversary this year. It marked 30 years of promoting traditional Bangladeshi products and affecting lives of disadvantaged artisans. The BRAC Human Rights and Legal Services program, together with the Center for Reproductive Rights, New York, organised a workshop titled Reproductive Health, Litigation, and Human Rights in Dhaka, where activists, health rights advocates and experts in reproductive health and human rights discussed legal strategies for addressing key reproductive health issues in Bangladesh.
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 BRAC organised a four-day international conference on Scaling Up: An Essential Strategy to Attaining Good Health for All at the BRAC Centre for Development Management (BCDM) in Rajendrapur. Latest Initiative of BRAC Education`s Mentoring Program - Interschool Debate Competition Aynapur High School of Jhenaigati Upazilla of Sherpur watched victory unfold as they won the Interschool debate competition arranged by BRAC Education Program. In the final phase of this debate titled, "Reading class textbooks is enough for student improvement," the team for the resolutionMahishbathan High School of Mahadevpur Upazilla, Naogaon secured the runner's up position. Today, Saturday (07.02.09) the best speaker prize was awarded to the opposition team member Sumaiya Kawser Kajli at the Dhaka Teacher's Training College Milnayoton where the debate was organised. Rajiv Gandhi Foundation delegates visit BRAC Priyanka Gandhi Vadra, daughter of Congress Party Chairman Sonia Gandhi, arrived on 3 rd February afternoon at Dhaka on a two-day visit to observe BRAC's education program. Priyanka Vadra was accompanied by Rajiv Gandhi Foundation Secretary Gyanendra Badgaiyan and Educator Sonia Phillip. BRAC Africa Loan Fund BRAC has successfully raised $62.6 million of debt capital to provide microfinance loans to poor borrowers in Tanzania, Uganda and Southern Sudan.

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Proshika

Impact of Proshika Program PROSHIKA development programmes have helped more than 2.7 million of its group members significantly improve their living standard over the years. This has been revealed in the most recent Impact Assessment Study (IAS 2002) of PROSHIKA programmes. The study also found that PROSHIKA has achieved or, sometimes, even exceeded most of the targets set in the phase VI five-year plan (1999-2004). Members of poverty-free households, ownership of land, average income, school enrolment rate, lowering dependency on money-lenders, average savings, use of sanitary latrine, etc, show the significant achievements. IAS reveals that changes in PROSHIKA group members' status and well-being are mainly due to PROSHIKA's intervention. PROSHIKA has also been able to facilitate a process of social change which is leading to the elimination or reduction of forces that reproduce poverty and disempower the poor.
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A comparison between a similar study, IAS 1998 and the recent one shows that the PROSHIKA group members' average income has increased from Tk. 48,635, to 62,731. The average annual household savings per year increased from Tk. 3,371 to Tk. 11,186, which is three times higher than the IAS 1998. The adult literacy rate has increased from 55 to 67 per cent while the child literacy rate has gone up to 77 from 70 per cent. The percentage of dowryless marriages has also increased from 37 to 48. Presently, 79 per cent of the group members use sanitary latrine while it was 57 per cent in 1998. The infant mortality rate has decreased from 81 to 69. Besides, the maternal mortality rate has decreased from 10.3 to 1.5. Also 90 per cent of PROSHIKA group members are involved in plantation whereas the percentage was 62 in 1998. Proshika Microcredit PROSHIKA, since its establishment in 1976, has been working for eradicating poverty initially in the rural areas and then in urban areas as well. After building the poor people's own organizations, PROSHIKA provides them with credit and other supports to make them self-reliant. PROSHIKA believes that only an integrated and multi-sectoral approach can achieve sustainable development for the poor. Thus, PROSHIKA implements its Employment and Income Generating (EIG) Programme through a strategy combining the following key elements.

utilization of groups' savings; provision of matching credit from the Revolving Loan Fund (RLF); technical assistance through provision of skills and management development training, hands-on technical advice, and support by technically competent workers; and provision of marketing assistance where needed.

Other Distinctive Features PROSHIKA innovated a holistic approach to credit called 'credit plus plus'. In this system proper training, technical assistance, marketing facilities as well as social and other development services are provided along with credit. The management of credit is highly participatory. The group members are involved at every level of decision making from project design to loan disbursement and recovery. Active participation of the people in credit management reduces staff intensity, and thereby, the cost as well. Consequently, PROSHIKA can provide low-cost credits to the poor. Reaching the Hard-core Poor PROSHIKA always gives importance to the income flow of the group members in the repayment of their loans. This encourages the hard-core poor to join the PROSHIKA programme more than the programmes of other micro-credit organizations, which emphasize an equal weekly or fortnightly repayment system. a) Credit From the Revolving Loan Fund: PROSHIKAs approach to credit is credit plus plusa system under which not only credit is given but proper training, technical assistance, marketing facilities, as well as social and other development supports are also provided. Through this unique peer group lending system, a total of Tk. 36,642 million has been disbursed against 904,703 projects, creating 10.19 million employment/self-employment opportunities for the poor. The management of credit is highly participatory. b) PROSHIKA Savings Scheme (PSS): The PSS has been introduced on the basis of certain principles like security of group savings, life insurance, risk coverage for damages caused by natural disasters, accessibility, etc. The life and property risk coverage aspects of PSS are unique in Bangladesh. The number of PSS groups presently is 114,864 while the number of members is 1.81 million. The savings
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balance stands at Tk. 1,854.02 million. The total compensation paid from the PSS Fisheries Development Program The programme facilitates the access of poor fishers and poor fish farmers to the public and private water resources and contributes to the overall fish production of the country. Credit, again, plays the most important role here in income generation. So far, a total of 680 ponds have been re-excavated by the group members and thousands of members received help on getting license for fish farming in 183 water-bodies. A total of Tk. 1,304.91 million has been disbursed to date through 25,093 fishery projects. Organic Agriculture Program The programme promotes uses of organic methods in cropland and vegetable production. A total of 769,234 farmers have adopted organic agriculture in 228,411 acres of land so far. A total of Tk. 299.31 and Tk. 336.22 million have been disbursed against 5,496 organic agriculture and 9,393 homestead gardening projects respectively. Irrigation and Farm Power Technology Services Program The main objectives of the IFPTSP are to enable the landless and marginal farmers to become owners of the irrigation and farming equipment like pumps, threshers, and shellers, and to increase their income by selling water for irrigation and providing farming services. Since the inception of this programme, 590,502 acres of land has been irrigated and ploughed by 203,651 group members. They have so far successfully implemented 7,214 irrigation and power tiller projects with Tk. 185.32 million. Livestock Development Program Under this programme 5,014, 1,157 and 195 group members have so far been trained as vaccinators, paravets and artificial insemination technicians respectively. They are working as resource persons in various livestock-related group training courses and earn Tk. 1000-2000 per month on an average. So far, a total of Tk. 2,305.39 million has been disbursed to the group members through 50,066 livestock projects. Proshika Integrated Agricultural Firm (PIF) Trust The PIAF Trust has five components, namely (i) Poultry Production and Marketing; (ii) Seed Production and Marketing; (iii) Organic Vegetable Production and Marketing; and (iv) Honey Production and Marketing; Poultry Production and Marketing Of the PIAFT farms, the Satkania Poultry Farm in Chittagong is the biggest. Located in an area of 18 acres of land at the foot of a hill, this farm has five modern controlled houses, four open houses, three Chic Master incubators imported from the USA, two generators and a feed mill. Its parent stock rearing capacity is 38,000 and day-old chick production capacity 75,000-80,000 per week. The parent stocks are of Hubbard Classic, Hubbard Flex, Cobb 500 varieties imported from France, Uk and the Netherlands. Sixty per cent of the chicks produced here are directly distributed to the farmers and the remaining 40 per cent are distributed through agents. The Rangpur Farm is located in 30 acres of land and has two modern controlled houses, six open houses, one generator and one feed mill. Its parent stock rearing capacity is 9,000. Both the Nabinagar Farm and the Khulna Farm have a parent stock rearing capacity of 5,000 and 8,500 respectively. The Koitta Farm has a parent stock rearing capacity of 3,500. All these farms have controlled houses, feed mills and generators. At the Nabinagar Farm there are two Chick Master and Buckeye incubators imported from USA and UK. The day-old chick production capacity at the Nabinagar Farm is 60,000-65,000 per week. Seed Production and Marketing The PIAF Trust has a seed production and marketing programme also. Launched in 1997 this programme aims at making high-yielding quality seeds available to farmers at the right time. Also, seeds and plants
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are being produced in the tissue culture method. Organic Vegetable Production and Marketing The PIAF Trust is facilitating the marketing of organic vegetables and foodgrains produced by the group members as well as by its own agricultural farms. Organic vegetables are always available in PROSHIKAs sale centre Trinamul in Dhaka. Besides this, vegetables are supplied to different apartment complexes, mega shops and department stores in Dhaka city. Honey Production and Marketing The PIAF Trust through its Apiculture Programme facilitates the production of 50 tons of natural honey every year in conformity with international standards. The honey is produced through the same scientific bee-keeping practice as seen in Australia, Canada, USA and India. The PROSHIKA honey is gathered from sources like the mustard flower, the litchi flower and other flowers available in the mangrove forests through bees. The programme has a honey processing plant (the only plant in Bangladesh) which guarantees the excellent quality of the honey produced. The PROSHIKA honey has three different flavours and is available in 500 gm and 250 gm food graded pet jars. It is certified by the Bangladesh Standard and Testing Institute (BSTI). Fresh Water Prawn Hatchery Two prawn hatcheries, one at the Human Resource Development Centre (HRDC), Koitta, Manikgonj in 1993 and the other at Shiromoni, Khulna in 2005 provide good quality post-larvae as per farmers demand, to reduce the pressure and dependency on the natural source of post-larvae to protect biodiversity. The capacities of post-larvae production of the two hatcheries is 25-30 lakh and 90-100 lakh per year respectively. Apiculture Development Program PROSHIKA has undertaken the Apiculture Development Programme as one of the most promising, and environment-friendly income generating activities for its group members. Apiculture involves less investment of capital and time yet yields high returns. PROSHIKA has also innovated and introduced a number of new technologies to modernize apiculture practices in Bangladesh. Along with credit, PROSHIKA provides training and also marketing facilities to those group members who produce honey. Human Resource Development Centre (HRDC) Trust PROSHIKA HRDC Trust campus is one of the most attractive places in Bangladesh. Open to the public on a rental basis, it is more than just a physical facility for holding conferences, seminars, training, workshops, or just for recreation. If offers a complete package including international standard living arrangements as well as dining facilities. It is situated at village Koitta of Saturia thana. The campus spreads over 42 acres of land that includes facilities for hosting training courses, seminars, workshops, meetings and conferences; and demonstration projects on ecological agriculture, apiculture, livestock, fishery and sericulture. Besides, there is a shrimp hatchery, a bio-gas plant and tissue-culture laboratory and plant. The centre can house seven training events at a time. Conference /Training/Workshop Facilities There are two conference halls in the campus. One of these accommodates 300 persons in a theatre style. It is fully air-conditioned and is equipped with multimedia communication services, public address (PA) system, audio-visual recording, LCD panel, electronically regulated white screens, OHPs, fixed and portable VIPP boards. With two movable soundproof panels, this large auditorium can be instantly converted into three separate training halls, each accommodating 50 participants in a seminar-type setup arrangement. The other conference hall accommodates 50 participants in a theatre style and 30 in a training style. This hall, too, is air-conditioned and equipped with necessary electronic audio-visual ware. There are three more training halls, all air-conditioned, each accommodating 25 participants in training
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style. There are five group discussion rooms, each accommodating 10-12 persons. Accommodation Accommodation for over 350 participants at a given time can be arranged in the dormitories and in the single/double (AC/Non-Ac) occupancy rooms. Library Aimed at providing necessary support to the researchers, academics, trainers, resources persons and participants, the library at the campus has a rich collection of books, journals, and research publications. Logistic Twenty-four-hour power supply has been ensured by an exclusive 1000 KV power sub-station, supported by a stand-by 400 KG auto power generator. Safe drinking water filtered through a recently built water treatment plant is available to the users. Phone, fax, photocopy, cleaning and laundry services are available. A full-time resident MBBS doctor is available with a transport for emergency medical responses. Full-time armed guards maintain the security of the campus. SIDR Cyclone 2007: Relief and Rehabilitation Program Practical Skill Trainning Development Program This training largely contributes to the effective implementation of Employment and Income Generating (EIG) activities through providing relevant information about the management of projects implemented through environmentally sound technology. In skill development training, the number of courses offered so far reached 49,407. A total of 1.13 million participants have attended these courses. Handloom fabrics production is one of the extensive entrepreneurial activities undertaken by the PROSHIKA groups for poverty elimination through creating more employment and increasing the income of the poor weavers. PROSHIKA promotes their micro-enterprises by providing credit, training, and technical and marketing support. PROSHIKA Fabrics manufactures its fabrics with vegetable dyes and AZO-free colours instead of corrosive chemical colour, which is detrimental to the human body. With its attractive presentation and high quality designs, PROSHIKA Fabrics today has become most popular with men and women with high, rich tastes. PROSHIKA Fabrics has a display and sale centre in the capital city at Mirpur. For its high quality designing and reasonable prices, PROSHIKA Fabrics with its handloom silk and cotton fabric collections of vegetable/natural dyed silk, spun, Dupion and cotton fabrics, has earned tremendous appreciation from the users. In recognition of its excellence, it has so far been awarded 50 different covetous awards and medals by various prestigious organizations and institutions. Development Support Communication Centre Trust Recognizing the strong relevance of efficient and effective communication support to development efforts, PROSHIKA started its Development Support Communication Programme in 1986 which, later on, evolved as DSCC Trust. Since then DSCCT has been providing communication support to the development programmes of PROSHIKA and other agencies of the country involved in development activities. DSCCT has three objectives: (i) meeting the communication needs of PROSHIKA; (ii) preparing communication materials for advocacy endeavours; and (iii) providing communication support to other organizations and agencies. The components of DSCCT are: (i) development communication material production; (ii) development communication material utilization; (iii) participatory video; (iv) acquisition and maintenance of equipment; (v) revenue generation; and (vi) capacity building.
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DSCCT generates revenue for PROSHIKA providing technical support to other organizations in producing, shooting, illustrating, sub-titling, editing, cassette transferring, etc. towards production of audio-visual materials. During the 2001-2006 period DSCCT has produced 70 TV spots, 11 TV dramas, 82 video documentaries, 157 still documentations, 990 participatory videos and 31,320 community screenings. Besides this, six training events have been organized. Peoples Organization Building Program Organization building is at the core of all PROSHIKA programmes, all the achievements and activities emanate from the concepts and methods of organization building pioneered by PROSHIKA. The poor people living in rural and urban areas are encouraged to organize themselves into forming primary groups popularly known as Samitis, and form group federations at village, union and upazila levels building a broad organizational network. The process constitutes the basis of participatory development and spurs on the acquisition and strengthening of human, socio-economic, and cultural resource bases of the poor. After their formation, the groups go through a process of empowerment involving various savings plans and much human and skill development training, and engage themselves in different income-generating activities with credit from PROSHIKA. The group federations play an effective role in achieving greater alliances among the poor and protecting their interests at all administrative levels. The federations undertake various socio-economic programmes in a participatory method to strengthen their capacity. So far, 149,016 primary groups have been formed of which 97,562 are women groups. There are currently 18,231 group federations. Proshika Computer System (PCS) Trust ProshikaNET Since 1997 Proshika Computer System (PCS) has been serving as a one-stop IT solution centre. Meanwhile it has been transformed into a Trust. It is one of the fastest growing IT solution providers in Bangladesh. A team of 130 committed professionals are steering the PCS Trust ahead with their high quality services, always with an eye to clients satisfaction. Corporate Internet Solution The major functions of corporate service are dedicated bandwidth through Radio link & Digital Subscriber Line (DSL). ProshikNET Radio link /DSL Internet service has the following features:

Radio link/DSL is available in Dhaka and Chittagong. Free Customer Premise Equipments (CPE) Free initial service activation for the DSL connection Internet service 24 hours a day 7 days a week

Retail Internet Solution ProshikNET has two types of retail service. Post-paid service is one of them. This service is on " No use No pay" basis. There is no monthly fixed payment. The exclusive features of post-paid services are as follows;

No registration charge Peak of peak billing system

ProshikNET prepaid has lunched the night cruiser unlimited and the 24-hour unlimited connectivity. Two other types of unlimited connectivity (any time 3/4 hours) are also available in the market. Copper, Silver, Gold and Platinum prepaid card services are also available in the dealers outlet.
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ProshikaSoft The products of ProshikaSoft are Accpro, Accpro Mini, Janashokti, Commercial and merchandising and so on. ProshikaSoft can be proud of the ProshikaShabda, which is the best export oriented software in Bangladesh. PCST Training PCST provides quality computer training through skilled professionals. PCST training is the only one authorized training partner of Red-Hat Linux in our country. PCST Web Plant Tissue Culture Centre Trust (PTCCT) PROSHIKA Tissue Culture Centre Trust (PTCCT) was established in 2003. PTCCT has already emerged as an Agro-Biotech Enterprise banking on its skilled and experienced person power. PTCCT has the biggest Biotech Lab in Bangladesh with all modern facilities for both commercial and research activities. It has the capacity to release 20-25 million plants per year. Since 2001, PTCCT has been releasing mericloned potato, orchid, jackfruit, cassava and banana for commercial purposes while extensive research is in progress to release a few other crops like gerbera, ginger, agaves and mushroom at the field level. Over the years PTCCT has developed a rich Gene Pool (Genetic Resources) for potato, orchid, banana and ornamentals for future commercial exploration.. Sericulture Development Program The SDP is one of the most attractive and successful programmes of PROSHIKA and an alternative income generation option for its group members as well as a means to promote the country's rich heritage of silk fabric. More than 2.14 million mulberry saplings have been planted by the group members under this programme. The group members have implemented a total of 2,915 projects with Tk. 29.60 million over the years. Small Entreprise Development program The aim of this programme is to provide the graduated groups of PROSHIKA with entrepreneurial support loans along with technical assistance, formal training, business counselling and marketing support. The programme is operated by PROSHIKA SEED Trust. Up to December 2006, a total of 13,441 entrepreneurs (40% female) have been organized at 76 PROSHIKA ADCs and Tk. 742 million loans have been disbursed among them. A total of 43,095 new employments (54% full-time and 46% casual) have already been created. Both formal and non-formal training has been imparted to around two thousand entrepreneurs. Business counseling and technological and marketing extension supports have also been provided to them. Proshika Small Economic Enterprise Development (SEED) Trust The Small Economic Enterprise Development (SEED) Trust Activities is a unique development approach of PROSHIKA which formally started in 1995. Since its inception the SEED Trust has been trying to develop the micro and small enterprise sector of Bangladesh through action research aimed at developing micro and small entrepreneurial capacities. The activities of the SEED Trust has successfully expanded in 15 major cities of Bangladesh with the provision of financial and technological assistance, relevant training business counseling and marketing extension supports to the entrepreneurs. The programme goal is to develop entrepreneurial capacities. The success of entrepreneurs translates directly into increased employment opportunities for the poor. A small enterprise is an owner-operated enterprise where no more than 12 employees are engaged. The amount of fixed plus working capital invested in the business is up to Taka 01 million
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The components of the SEED Trust are: a. Existing Small Enterprise Development Programme; b. New Entrepreneurs Development Programme; and c. Research and Development Programme for Enterprises During the 1995-2007 period 7,031 entrepreneurs have been organized and Tk. 883.85 million loans have been disbursed among the entrepreneurs. A total of 13.757 million new employments (58% full-time and 42% casual) have been created. Formal and non-formal training has been provided to 7,600 entrepreneurs. Business counseling and technological and marketing extension support has also been provided to them.

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RDRS Bangladesh
RDRS Bangladesh is a national humanitarian and development NGO operating since 1972 in association with LWF/DWS Geneva and its Related Agencies. RDRS Bangladesh (Rangpur Dinajpur Rural Service) is a respected, long-established development NGO working to empower the rural poor in northern Bangladesh for over 36 years. In 1997, RDRS became an autonomous organisation, governed by a Board of Trustees, as the Bangladesh field programme of the Geneva-based Lutheran World Federation/Department for World Service (LWF/DWS) was localised. RDRS retains close partnership links with LWF/DWS and its Related Agencies. Origins of RDRS RDRS came into being at the time of Bangladeshs War of Independence, in 1971. Set up by the Lutheran World Federation (LWF) to help refugees fleeing conflict across the border, it returned with them after liberation to carry out much-needed rehabilitation in the devastated and long-neglected northwest greater Rangpur + Dinajpur Districts. In 1976, a sectoral development programme was launched to assist the poorest in agriculture, community development, health and womens economic activities. Construction of roads, bridges, markets and schools continued. During these years, RDRS established itself as the leading non-governmental agency in the northwest. It is also credited with introducing many major innovations into the area: the treadle pump (its most famous invention, allowing crops to be grown in winter); wheat production; vegetable gardens; and, womens advancement, not least the picture of women on bicycles. By the late 1980s, an integrated Comprehensive programme superseded its sectoral work, focused on conscientisation and group organization of the poor, emphasizing social, educational and economic elements. Physical infrastructure development continued under the Rural Works Project. Since then, RDRS successes have included the greening the north through its roadside tree plantation programme; improving life on the chars (the river islands on the Brahmaputra); raising awareness of womens rights; promoting savings, credit and skills training to improve the livelihoods of the poor and, the emergence of Union Federations - self-managed peoples organisations, of, by and for the rural poor. The RDRS programme has continued to evolve over the past decade, but the empowerment of the landless and near landless through their groups and, later Federations remain the focal point. Successive studies and evaluation provide evidence of the positive impact in livelihood and lifestyle of those participating in the programme, two-thirds of whom are now women to take place in the last decade and the present organisational structure is of one development programme with smaller projects shoring up the main Group and Federation-based development activities. The RDRS Working Area RDRS is unusual is maintaining a concentrated geographic programme, working in 46 contiguous Upazilas (sub-districts) in NW Bangladesh, far from the economic and political power centres in Dhaka, Chittagong, even Rajshahi. In recent years, the programme has expanded to the neglected north-east of Bangladesh.

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Once the two regions of Rangpur and Dinajpur were considered among the remotest parts of the country, and their people among the poorest and least developed. But the years since Independence in 1971 have seen great changes in the area, in both the physical and the social landscapes; the opening of the Jamuna Bridge in 1998, an historic event in itself, was merely the latest cog in the wheel of development bringing new vitality to the region. RDRS is aware that access to savings and credit is important for the survival of families, Groups and Federations. But the belief that the principal aim of development is to improve the lives of the poor, and not just raise incomes, is widely held still in RDRS. So the emphasis in the development programme is on providing knowledge and creating access to skills and resources, and developing the confidence among the poor to use that knowledge and those resources and skills for the benefit of themselves and their own communities. Thus, as it did in 1976, RDRS still promotes innovations in agriculture; encourages childrens education and adult skills training; raises awareness on vital health and womens issues; constructs community buildings; and, most importantly, promotes peoples organisations as the way forward for the poor of north-western Bangladesh. The Core Development Programme of RDRS has eight linked components: social organisation rights; womens rights; education and training; health; agriculture; credit and income generating activities; employment generation; the environment and disaster-preparedness. Each of these is represented organisationally by one Co-ordination Unit, and their staff work with all beneficiaries in the NonFederated and Federated Groups and Federations across the working area. These Co-ordination Units are responsible for providing guidance and support in their respective disciplines to the field workers, based at District, Upazila (sub-district) and Union (lowest tier of government) level. The emphasis of the Core Programme is on raising awareness and general living standards among the programme participants so that they can benefit from credit and advanced skills training and play effective roles in their Federations and communities. RDRS also demonstrates excellent in its Community Health Programme (CHP), based at Lalmonirhat, which provides a high quality of preventative and curative services to Mother and Child Health (MCH), Leprosy and TB sufferers through clinics and community-based eye care services. Since so many of the rural poor are vulnerable to natural disaster, disaster preparedness and response remain important elements of the RDRS programme. When disaster strikes, the entire RDRS programme, if necessary, can be mobilised for relief and rehabilitation.
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Training, Research and Information RDRS upgraded a number of its training centres at all levels. There are now 13 training centres with good meeting and residential facilities for staff and beneficiaries. Built on RDRS own land, most of them are surrounded by demonstration farms and ponds, with livestock, bio-gas and other technical innovations, where Group Members can see new ideas and methods in action, and from where development work in action can be easily visited. The newly-built North Bengal Institute (NBI) on the campus at Rangpur town has the capacity to facilitate and accommodate big meetings, workshops and seminars of international standards and will develop its alternative and research and advocacy focus on the northwest region. RDRS is also building links with young people from its partner countries, who visit under its Intern and other programmes; and is hoping to expand its research and academic links (through the NBI) RDRS publishes regular in-house newsletters, posters, magazines and periodic studies, reports and evaluations. For mass media coverage, RDRS regularly publishes development features/stories in national dailies and international magazines as well as on its website. In the electronic media, RDRS is involved in producing radio and television programmes as development education. RDRS: the Organisation RDRS employs over 2,100 staff (presently one-third are women) and works with a further approximately 1,500 volunteers and daily paid labourers. With the exception of a few part-time advisors/consultants, all staff are Bangladeshi. The vast majority of staff are in field positions, with specialist sectoral and support units in Rangpur and Dhaka. RDRS operates field offices in 40 locations, with rural training centres in 18 of these locations, in addition to the central co-ordination office in Rangpur and Dhaka all linked by VHF radio. RDRSlinked Federations, operate in 307 Unions. RDRS also operates its own vehicle fleet and information technology to support its field programme. The funding of the RDRS programme is through the sustained commitment of a core group of partner church agencies from Europe, North America and Asia. The RDRS Core Programme is the basic framework for all RDRS development interventions. In recent years, additional bilateral funding has been mobilised to expand the impact of its core programme and to introduce new elements providing additional services and opportunities for Group members and Federations. Micro-credit activities have also expanded significantly. In 2000, the annual turnover of the RDRS programme (including credit) was around $15 million, RDRS AT A GLANCE

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RDRS Identity and Values 1. Broad Principles

In setting and pursuing its mission, the character of the organisation and its work is a critical factor. The RDRS Bangladesh programme has developed a distinctive identity and value system, strongly influenced by its past, its place, and its people (see Diagram) this identity, along with underlying values, underpin the Strategy 2001-2005. a. The centrality of the rural poor- RDRS has never lost sight of its primary function and raison dtre - to support the emergence of, to give voice to, and to empower the rural poor of the northwest. All actions must be assessed according to this fundamental principle. b. Integrity and consistency of approach - between the development programme, the development organisation and its wider interactions, RDRS must practise what it preaches; the same basic developmental principles and standards should apply in all spheres of its work as far as possible. Promoting awareness and democracy must be developed not only among its constituency, but within the organisation itself and in its wider advocacy and networking tasks. Promoting economic viability should not be restricted only to income-generating activities of beneficiaries but to all the organisations own economic work; promoting environmental or gender awareness cannot only be limited to its grassroots work with the poor. The values of honesty, dedication, participation and transparency are insisted on throughout. c. Building realistically on the present - effective development must start from where the people are. Thus the Strategies for RDRS are seldom radical-departures but the logical development of past and present work. The challenge is to build on past achievements and present strengths and resources, to overcome weaknesses and setbacks, to address new challenges, adapt and improve in a practical and achievable. This evolutionary approach is essential for a locallyrooted organisation which has been working for poverty alleviation in the north since the birth of the nation. Approaches change, people and methods evolve but RDRS demonstrates its loyalty and commitment to its working area and,
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especially the poor. d. Focus and impact - the geographic concentration of RDRSs work, the intensive and integrated area approach, the linking of bilateral and core projects to improve impact demonstrate the seriousness and focus with which the organisation approaches its work. RDRS is not concerned with ephemeral tinkering it is here on a long-term basis to make a difference. The Strategies are an attempt to further strengthen focus and impact and to make a difference. RDRS scales-up and integratse its work within its working area to this end. The themes of targeting, intensification and popular participation are central to these strategies. e. Quality and effectiveness - RDRS is conscious of its good reputation among NGOs built up over many years of dedicated work. The Strategies seek to guard and enhance this reputation through improved quality and increased effectiveness and efficiency of work. The themes of professionalisation, systematisation, accountability, cost-effectiveness, improved technical capacity, transparency and critical self-analysis are thus emphasised. 2. Distinctive Characteristics of RDRS and its Approach While RDRS shares similarities with other development NGOs operating in Bangladesh, it a number of distinctive characteristics: a. Intensive geographic focus and concentration: The continued regional concentration of RDRS activities in 6 Districts of northern Bangladesh has enabled RDRS to gain acceptance and trust from the local community, government and beneficiaries. The concentration of various developmental and relief interventions through a network of district, upazila and union level field workers also creates an intensified impact reaching towards a `critical mass' concept of social organisation and development to be aimed for. Finally, the continued multi-purpose presence in a fixed number of localities also increases implementation capacity, as well as flexibility in operations and promotes efficient and cost-effective operation. Integrated and multidisciplinary approach: Despite pressures, the RDRS programme pursues a holistic integrated development towards poverty and empowerment. Though the organisation and delivery may not always be fully integrated (for example due to the differing resource provision), the programme believes that the multifaceted nature of poverty requires a relatively balanced intervention, stressing for example social and economic dimensions equally. The concept of a core programme implies both continuity and integration a holistic development foundation as offering the best means of empowerment yet which is flexible to respond to additional opportunities built upon this foundation. Relatively participatory management style and shared responsibility: Unlike many national NGOs, which are the creation of one dynamic and charismatic founder-leader, RDRS has developed differently. It has a strong organisational culture, a distinctive identity and a style of shared decision-making relying on a broad cadre of experienced senior staff. With less than 8% of its total staff in administrative or support positions in Dhaka or Rangpur, RDRS also has a very marked field orientation and focus.

b.

c.

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d.

Experience and continuing capacity to learn and to adapt: Few other organisations possess such continuity and depth of experience in relief, rehabilitation and development work. Building sustainable peoples' institutions of, by and for the rural poor: Surprisingly few NGOs promote the logical development progression beyond grassroots Primary Groups and thus remain constrained in service delivery or support organisation mode. RDRS has consistently promoted the emergence of this second tier or apex bodies known as Federation of the landless and marginal farmers. In addition to promoting their strengthening as vital institutional and representative bodies of the poor RDRS also supports them to develop economic and several assets under their control and management.

e.

RDRS Projects Promoting Folk Music : The SUNO initiative Current Bilateral Projects Chars Livelihoods Programme Poverty and Working Children Project School Feeding/Food For Education Programme SHIKHON - Learning Alternatives for Vulnerable Children Vulnerable Group Development (VGD) Community Health Programme in Northwest Bangladesh Comprehensive District eye Care Programmes Enhancing water and sanitation behaviour practices Implementation of the Tuberculosis control Program elements LEGAL Project

North Bengal Institute >> Northwest Bangladesh RDRS works exclusively in Northwest Bangladesh, the northernmost area of the country, known as greater Rangpur-Dinajpur in Rajshahi Division. Its current working area covers 37 Upazilas (subdistricts) of 7 (Include Rangpur), Districts namely Dinajpur, Thakurgaon, Panchagarh, Nilphamari, Kurigram & Lalmonirhat in the greater Rangpur-Dinajpur region in the northwest part of Bangladesh. Presently this includes 307 Unions the lowest tier of local government and extends into the riverine belt to include the islands and sandbars in the River Brahmaputra. The area is generally very low-lying, and crisscrossed by river systems. The total working area is 5,498 sq. with a population of 6.2 million. Total participants in the RDRS programme are approximately 1.5 million, including health and at least twothirds are women. Rangpur is around 250 kilometers north of the capital Dhaka, and now well connected
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by road since the Jamuna Bridge was completed.

The northwest Bangladesh is historically more neglected and poor. The soil tends to be sandy and water tables deeper than in other regions. Environmentally RDRS working area is vulnerable to frequent natural disasters. People face catastrophe like cyclones during summer, floods and river-bank erosion in the rainy season, drought in summer, spring and cold wave in winter. Figure: RDRS Working MAP Lacking any significant industrial development agriculture is the mainstay of the economy and main source of employment. The spread of irrigation has reduced the extent of the lean season but remains problematic RDRS has a strong commit-ment to and receives respect from the people of the northwest. After providing humanitarian assistance to refugees in camps across the border in India, RDRS returned with them to focus in the northwest and contribute to the huge task of rehabilitation. When RDRS first began inside the country, most roads were earth-filled the few bridges and culverts damaged and no other NGOs operated. RDRS has assisted the people develop and played an important role in the development of road systems,public services (bridges, culverts, clinics, schools) and flood shelters and in the greening of the landscape through afforestation, crop diversification and irrigation and in the education and organisations of the rural poor. North Bengal Institute >> About North Bengal Institute North Bengal Institute (NBI) RDRS established the North Bengal Institute (NBI) in Rangpur to support its promotion of a pro-poor, advocacy-based agenda, across the working area and beyond, and to expand the regional capacity to search out, alanyse and find solutions for existing and emerging development issues. Although it has so far operated on a modest scale, the NBI's resources have allowed RDRS to build on its significant regional presence and to activity engage in a constructive knowledge-based empowerment process through academic and practical research studies combined with media promotion of ideas, experiments and projects, both alone and in partnership with other national and international institutions. RDRS has a research collaboration programme with the Bangladesh Agricultural University (BAU) under witch post-graduate students conduct field research in the RDRS working area in partial fulfillment of the requirement of their academic courses. The Dhaka University Refugee and Migratory Movements Research Unit (RMMRU) has just concluded and published jointly with RDRS/NBI a research study
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THE BANGLADESH YEAR January April July October Cold, Drought, Lean Season Cyclone, Stroms Monsoons, Floods, River erosion, Lean Season Drought, Cold, Lean Season

report on the widespread and perennial problem of internally displaced people as a result of river erosion in northwest Bangladesh. The diversity and extension of RDRS field programme continues to attract students/interns from abroad (under the RDRS Internship Programme). In recent years, many students from Finland, Norway, Sweden, Denmark, United Kingdom and Canada have completed their short-term internship or academic attachment with RDRS/NBI. RESEARCH AWARD SCHEME North Bengal Institute (NBI) introduced a modest Research Award scheme in northern Bangladesh with a vision to emancipate the poor destitute and disadvantaged from poverty, vulnerability, disempowerment and social inequality. Each year, 10 young researchers from different areas of specialisms such as Rural Economy, Social Development, Health and Agriculture were selected under competitive process and each received an award of Tk. 25,000/- for conducting small-scale research. The scheme was intended to serve a dual purpose. Student researches benefited from this grant to fulfill their academic requirements in terms of practical field-based study, while NBI finds it useful in gaining preliminary ideas, knowledge and inputs for future research work as well as advocacy actions. The studies conducted are not intended as extensive or in-depth studies but essentially mapping or identification of a question awaiting further exploration which may assist RDRS/NBI in developing the research agenda for the future, exploring and establishing formal/informal research linkages. Torben V Petersen Library and other RDRS Libraries North Bengal Institute (NBI) maintains a library with a collection of 5,000+ books and relevant magazines, which is located in the first floor of RDRS Bangladesh Rangpur center. The Library is dedicated in the name of a former RDRS Director, Torben V Petersen from Denmark. The Library remains open from 8.30 am until 5pm (except weekends and holidays). Email and internet browsing facilities are also available for the users. A fulltime librarian manages the library. RDRS staff members, associated researchers, consultants, visitors and interns enjoy access to library facilities under stated conditions. Efforts are in place to continue to expand and enrich the library for today's and tomorrow's users. RDRS also maintains small libraries at its Thakurgaon and Lalmonirhat Training Centres, and has supported 260 CBOs known as Union federations to establish small community libraries across northwest Bangladesh which are used for the education and entrainment of the wider community and also to support school students with their studies. The Federations have been trained in running these libraries which are a valuable community resource. RDRS welcome these donations of books, magazines reports and any written materials for use in its own libraries or for distribution to community libraries. North Bengal Institute >> Begum Rokeya Forum This Forum, named in honour of Begum Rokeya, an 18th century local pioneer in womens education and social independence, was established on 5 August 2004 to create forward-looking educational and cultural initiatives for women and girls. Its ultimate goal is to attain empowerment and freedom for intellectual advancement for the much-oppressed women and girls in Bangladesh. The idea for the Forum came from the North Bengal Institute, RDRS regional research and advocacy resource centre, and its formation came about through the commitment of locally-based civic actors; Forum members include teachers, journalists, social workers, lawyers, government officials and NGO activists committed individuals as well as dedicated professionals. The Forum is properly constituted and run by the Members who pay a modest monthly subscription. Among its regular activities are:
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Initiatives to inspire the local community by Begum Rokeyas ground-breaking efforts to improve the lot of women and girls in the 18th century; this is particularly important as the situation of women and girls is still so very harsh in present-day Bangladesh. To acquaint international agencies, such as SAARC, about the heroic struggles of Begum Rokeya Sakhawat Hossain. The collection and archiving of written material by and about Begum Rokeya, with relevant research and publications. Organizing educational and cultural events (such as debates and painting competitions) for school and college students on womens empowerment and social issues. Organizing discussion sessions, rallies, campaigns and day-long public programs on Begum Rokeya Day. Distributing Begum Rokeyas Rachana Somogra (collection of writing) to educational institutions. Introducing Begum Rokeyas literature and biography into school curricula. Selling posters of Begum Rokeya during fund-raising and promotional activities. Awarding prizes to outstanding professionals and volunteers in recognition of their contributions towards the advancement of women. Working to re-establish the Begum Rokeya Smriti Kendra at Payrabond, Rangpur and to set up a Begum Rokeya University for Women. Liaising with local and national organizations and networks working towards womens empowerment. Ensuring media coverage on relevant womens issues. Holding regular monthly and specific meetings for Forum Members. The Forum welcomes support from interested individuals and institutions who wish to support the Forum in promoting womens empowerment and education.

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ASA
The Beginnings & Expansion ASA has emerged as one of the largest and most efficient Microfinance Institution (MFI) in the world and has been working relentlessly to assist the poor since its inception in 1978. The major drive behind ASA is to gradually eradicate poverty from society. During its early years, ASA undertook various development programs like awareness building for social action, training local birth attendants, capacity building of journalists, etc. In the mid-80's it introduced new programs working in the sector of health and nutrition, education, sanitation, etc. It was at this stage that ASA introduced microcredit as a pilot project. From its hands on experience in the field, and by evaluating the impact of development assistance, ASA realized that financial solvency, to a great extent, is what the poor need to bringing positive changes in their lives. In 1992, this paradigm shift led ASA to focus solely on microfinance as its tool in fighting poverty. ASA wanted to evolve its operations to become self-reliant and move away from depending on donor funding and grants - ASA's Microfinance Model gradually transformed itself to become the globally renowned "ASA Costeffective and Sustainable Microfinance Model." Following this model, ASA became self-sustainable within a short span of time and the organization declared itself a "self-reliant MFI" in 2001. This model, that has been practiced and perfected in the field by ASA, has proved effective in making a branch self-reliant within 12 months. Any MFI that adopts this model for operations becomes sustainable within the shortest possible time. It has been adopted by many MFIs around the world to get result within the shortest possible time. As of June 2008, ASA has successfully extended its outreach in Bangladesh through 3,324 branches and its 25,125 staff work relentlessly to serve more than 7.13 million clients in 72,204 villages. In April 2006 ASA formulated its 10-years IT Roadmap - the first step of which called for automating its branch operations by December 2007. With this target, a world-class software called ASA Microfinance Management System (AMMS) was developed by an in-house team of software developers and IT professionals within twelve months. A pilot deployment was done in 89 ASA district offices once AMMS was ready to a beta release. From the experience gathered by this pilot rollout the IT Team successfully deployed a full fledged branch automation system to 3200 of ASA's branches at one go. Starting in June 2007 this deployment was successfully completed by December 2007, covering the branches within just seven months. ASA has the reputation of being the most rapidly expanding and best-managed MFI in the world MICROSAVE / UNDP / CGAP Vision of ASA The vision of ASA is to establish a poverty free society. Institutional Mission of ASA The institutional mission of ASA is to support and strengthen the economy at the bottom of the socio-economic pyramid by facilitating access to financial services for the poor, marginalized and disadvantaged. Objectives of ASA The overarching objectives of ASA are to alleviate poverty and improve the quality of lives of the landless and assetless rural poor by providing them with access to financial services.
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ASA Foundation Many Microfinance Institutions (MFIs) around the world are willing to replicate ASA's Cost-effective and Sustainable Microfinance Model. This demand is ever increasing but, more often than not, they do not have the capacity to source funds needed to grow. On the other hand, people of certain countries are not well aware of the microfinance programs and this lack of awareness is considered as a serious obstacle in proliferation of MFIs. To meet all these challenges, ASA Foundation (AF) was established in September 2006 and registered as a 501(c)3 organization in the State of New York in 2007. The secretarial office of AF is in New York, USA. Its work is funded with the support of generous donors and through institutional grants. AF is a nonprofit organization and welcomes funds from different sources which will be donated to various small and emerging MFIs around the world for their quick and sustainable development. ASA Foundation seeks to improve efficiency and growth in MFIs so that microfinance reaches the greatest number of poor at the lowest possible cost. They will help microfinance institutions achieve growth and efficiency by providing access to proven, simple and effective strategies from the most effective microfinance institutions. The Foundations primary functions will be to identify donors that wish to support technical assistance in the microfinance industry and approve applications from developing MFIs seeking effective TA services. ASA International It is estimated that are almost 1.3 billion people living under the poverty line throughout the world. The major part of these people lives in Asia and Africa and most of them are yet access microfinance services. To meet this challenge, a global equity investment fund called "Catalyst Microfinance Investors" (CMI) was established in August 2005. The major objective of this fund is to provide Technical Assistance as well as financing to emerging Microfinance Institutions (MFIs) in Asia and Africa so that they can help the poor directly and become self-sustainable. The activities and funds of CMI is managed by "Catalyst Microfinance Investment Company" (CMIC). It has two major office, once in Europe and one in South Asia. The European office is based in Utrecht, the Netherlands and the Asian & African Regional Office is in Dhaka, Bangladesh. Catalyst Microfinance Investors (CMI) CMI has been formed by a partnership between SEQUOIA (a corporate finance & private equity specialist) from the Netherlands and ASA from Bangladesh, and is the only microfinance fund that is managed by the microfinance practitioners. The activities of CMI is run by CMIC who also identifies, analyzes and negotiates every investment made by the CMI. CMIC is governed and managed by its Executive Committee, consisting of Md. Shafiqual Haque Choudhury (CMIC Executive Chairman, Founder and President of ASA) and Mr. Dirk Brouwer (CMIC Executive Directors, Founder and Managing Director of SEQUOIA). The Executive Committee is responsible for overall strategic decision making as well as identifying and negotiating potential investments. Each of the investments is sponsored, fostered and monitored by practitioner. For effective implementation of this fund, ASA has formed an implementation team with senior level staff. CMI has selected a number of countries like India, Sri Lanka, Cambodia, Philippines, Pakistan, Ghana, Nigeria, etc. to invest its fund and work has already begun in some of the countries. At the time of it's closing in 2007, CMI has a total equity of US$ 125 million. ASA International (ASAI) ASA International (ASAI) has been established to greenfield ASA's Model of microfinance operations in various countries around the world, with the funding from CMI. ASAI is currently establishing new MFIs
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in various countries like India, Nigeria, Pakistan, Sri Lanka, Philippines, and Ghana. Each of these MFIs will follow the highly efficient ASA model, adjusted to local circumstances. Experienced staff from ASA has been seconded to these institutions to replicate the model. It is foreseen that each of these MFIs will, over time, be the market leader in terms of efficiency and scale in each of the mentioned markets. This will stimulate competition in these markets and put pressure on other MFIs to reduce their operating expenses and ultimately reduce the costs of borrowing for the clients. Program i. Small Loan for Female Clients; accounts for 78% of total portfolio ii. Hardcore Poor Loan; accounting 1% of total portfolio iii. Small Business loan; accounts for 12% of total portfolio iv. Small Entrepreneur Lending (SEL); accounts for 6.5% of total portfolio v. Agri-business Loan; account to 1.5% of total portfolio Program Special ii. Business Development Loan (part of BDS) iii. Rehabilitation Loan iv. Short Term Loan v. Scarcity Loan vi. Education Loan Program Saving ii. Voluntary Savings iii. Long Term Savings Program Health Assistance i. Health Assistance Grant Fund for ASA Client from the Central Pool Clients suffering from serious illnesses who need to undergo major treatment are entitled to receive a one-time grant, free of cost. No premium or any fees is associated with this grant - rather the fund is created from the surplus of ASAs cost-efficient operation. Budget A total of BDT 12,062,100 or US$ 177,300 was allocated for 2008 from the central pool. In the beginning of 2008, fresh allocation is made from the central pool and communicated to the field offices. Implementation Guideline The following chart is provided to implement the health assistance program at field level. ii. Health Assistance Grant Fund for ASA Client for minor illness Clients suffering from minor illnesses are also entitled to receive a one-time grant support free of cost. No premium or any sort of fees is associated rather the fund is created from the surplus of ASAs operation.

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CARE
CARE Bangladesh is the part of CARE International works with more than 70 countries around the world. CARE seek a world of hope, tolerance and social justice, where poverty has been overcome and people live in dignity and security. Power Through Pumpkins By Habiba Sultana Farida Parvin (36) lives in Doani village with her three children, Liza (18), Lalon (11) and Nasima (7) in the remote north-west of Bangladesh. The family struggle with poverty Monga and river erosion, surviving under open sky on a raised embankment when their house is under water during floods. They moved here six years ago after their home, land and all possessions were destroyed by erosion along the banks of the Tista. At this time, Faridas husband Akkas Ali (48) worked as a day laborer, earning 60 Taka per day when jobs could be found. This was never enough to feed or adequately clothe the family and Farida often went without rice so her children could eat. Akkas Ali was forced to migrate to Dhaka in search of employment. Although he was sometimes able to send home small amounts, Farida could not depend on these contributions. She started a small tailoring activity sewing dresses for local women. Happiness for Hamida Akter Hamida Akter is around 40 years old. She lives with her husband and five children atop a hill in Pahari village of Lengura union, Kalmakanda Upazilla of Netrakona district. Her husband is unable to work and earn sufficient money to maintain the family expenditure. Her house was made of straw and plastic sheet on a khas land. It gets surrounded by water during monsoon, by heavy rain almost to the roof. Flash flood hampered day labor and other activity. She picks rocks from a small hill river and earns 50 to 70 taka per day but she does not get the chance to work regularly. Feature The Northwest Institutional Analysis "The Northwest Institutional Analysis is a good example of the kind of exercise that is needed if we are to be effective in rights-based programming. Presented here is a compelling depiction of the interconnected nature of formal and informal institutions, showing how power and resources are concentrated in the hands of certain key individuals, families and institutions and graphically demonstrating the complexity of programming required to change the status quo." - John Ambler, Asia Regional Director, CARE. Constructions of Masculinities and Violence Against Women Violence against women has been repeatedly exposed and condemned by feminist groups, NGOs and human rights activists. The problem is certainly not new. Although the discourse is fierce and anger is profound among many Bangladeshi women, numerous barriers still prevent identifying and exposing gender violence. Much is still denied or brushed away as normal, especially when it occurs within the family. The study on "Construction of Masculinities and Violence against Women" explored different aspects of this issue and provided some recommendations. The Findings of the Northwest Rural Livelihood Baseline 2002 "The Findings of the Northwest Rural Livelihoods Baseline: 2002" report focused on livelihood patterns in the northwest part of Bangladesh, mainly the Panchagar, Thakurgaon, Dinajpur, Gaibandha and Joypurhat districts. The study examined 1600 poor households and 80 villages to elicit view of both men and women from the household on specific issues relevant to them.
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Caritas
Caritas Bangladesh was born out of disaster and thrives on disaster (though one should not therefore conclude that is a disaster). It is only the constantly recurring natural disasters that keep Bangladesh on the map and draw the pity of the planet. The real problems and needs of the country are largely unknown outside. Vision, Mission, Priorities and Strategic Plan of Caritas Bangladesh July-2004 to June-2014 Vision In the light of the Social Teachings of the Church, Caritas Bangladesh envisions a society which embraces the values of freedom and justice, peace and forgiveness, to live as a communion and community of mutual love and rspect. Mission Caritas Bangladesh tries to become a partner of people especially the poor and marginalised, with equal respect fr all to attain integral development, to live a truly human life in dignity and to serve others responsibly. Priorities 1. Human Resource Development through Education, Formation and Capacity Building Quality Education for children and youth, especially those in need. Formation and development of Youths and Adolescents. Capacity building and Formation of Staff. 2. Establishment of Social Justice and Human Rights through the Capacity Building of the Poor, of the Women and of the Ethnic Communities. Promote, uphold and advocate for Social Justice in favor of the poor and marginalised. Create appropriate conditions to eliminate all forms of discriminations against gender, class, religion and ethnicity. Self-help capacity building of the hardcore poor for their sustainable livelihoods. Activation of self-managed sustainable Peoples Organization through appropriate educational and technical support. Capacity building through institution development. 3. Health and Care Preventive and Curative Health services including Safe Water and Sanitation. Preventive Education on HIV/AIDS and Drug Abuse and Care for the drug addicts. Care for the Disabled and Elderly. Family Life Education for promoting Responsible Parenthood and Respect for Procreation. 4. Ensure Ecological Sustainability through the Appropriate use of Natural Resources and Capacity Building in Disaster Management. Humanitarian assistance to people affected by Natural Calamities and Man-made Disastrs. Building of the capacity of the people in coping with disasters, before, during and after. Promote innovative steps to minimize Degradatin of Environment and Depletion of Natural Resources to restore ecological balance.
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 Bio-diversity Conservation and Poverty Reduction through sustainable use of natural resources (including land, water, aquatic resources and livestock) as well as promotion of Indigenous Knowledge & techniques. Cross Cutting Issues: Community Participation Good Governance Gender Partnership Building Spirituality in Development Advocacy and Lobbying Partners in Development: Poorest of the poor, especially the landless and day-laourers Marginalized Community especially the ethnic groups Children Youth Women Disabled Elderly Caritas main on-going Projects at a Glance CO-OPERATIVE & EXTENSION SERVICES AND RURAL DEVELOPMENT 1. Development Extension Education Services (DEEDS): Peoples Organizations initiatives for socioculturaland economic emancipation. Development Extension Education Services (DEEDS) has been initiated in 1979 in 24 Upazilas with the objective to organize the landless poor and powerless people of the grassroots level. The ultimate goal is to make landless and marginalized households self-reliant through their own organizations. In 1991 DEEDS extended the services in another 27 Upazilas. At present DEEDS covered 51 Upazilas. During this period of 27 years, DEEDS project has undergone six distinct development phases always learning from the previous phases for future direction. The target group approach as opposed to community approach was introduced to organize the poverty-stricken poor. To establish a social force materializing Caritas irrevocable choice "Option for the Poor" Caritas envisions self-sufficient and sustainable Peoples Organizations (PO). The self-sufficiency is understood to have two dimensions. Each PO can take their own decisions during planning, implementation monitoring and evaluation of their activities and finance their activity program from own resources. The sustainability, however, is understood as continuity of the organization with right based and need-based program through self-management. To achieve the above result Caritas facilitate only. In all these Upazila areas 13,559 groups (men 4,335 and women 9,224) are formed with 257,449 members (men 78,160 and women 179,289) as of June, 2005. 2. Integrated Human Development Project (IHDP) IHDP began in 1990 as a separate project aiming to promote Socio-Economic and Cultural development of the poor and marginalised Adibashi community of the Barind Tract; by imparting non formal education i.e. training, meeting, seminar & workshop and to help the primary groups to build Peoples Organization (POs). At present IHDP covered 7 Upazila under Rajshahi Region. For the empowerment of the members and strengthening the traditional community organisation (Dighori, Pargana, Baishi) of the Adibashi at village, Union & Upazila level this special
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program has been implemented. It is also now in the process of building Union level POs. IHDP has been merged with DEEDS since 1997. In IHDP working area 870 groups (men 297 and women 573) are formed with 16269 members (men 5276 and women 10993) as of June 2005. 3. Improvement of Living Standard of the Hardcore Poor of Sandwip (ILSHP) This project started in July 2002. The main objective of this project is to create a better understanding of situation of the poor of Sandwip, especially the hardcore poor and to improve the life of the hardcore poor following an integrated approach. 4. Rural Infrastructure Development & Job Creation Measures (RIDJCM) Rural Infrastructure Development & Job Creation Measures (RIDJCM) or Cash for Work at the time of maximum unemployment in the seasonal lean period: re-excavating fish ponds, canals, clearing out wasteland for productive purposes; construction of village roads, culverts, embankments and bridges for improved communication; community centres, raising of school field for education, social and cultural purposes. A minimum of 20% of the project cost is borne by the community, either by providing cash or by physical labour. Drinking Water and Sanitation: Development of drinking water through sinking tube-wells and digging ring wells with new emphasis on harvesting rain water. Arsenic in the tube wells is a growing menace. Caritas is exploring the possibilities to solve the problem of arsenic in a cheaper and appropriate manner. Low cost sanitation programs: clay and concrete pit latrines are installed on community basis to cover a contiguous area. 5. Caritas Development Institute (CDI) Provides both short and medium term training courses to social workers and leaders on social analysis and development issues. In-depth study and evaluation of projects are also conducted. Research is an itegrated component with an applied nature. 6. Prevention of Trafficking of Women and Children through Awareness Building Raise mass awareness about the effect and consequences of trafficking; rehabilitate the victims of trafficking in the society; prevent trafficking through collaborative response; and involve local NGOs in ati-trafficking drive. 7. Training, Evaluation, Resources and Counseling (TERC) Provides project-oriented training and evaluation services to Caritas Regions and sister organizations. Publication of annual report, newsletters, reports and booklets in Bangla and English is another function. 8. Human Rights Education Program To build processes and mechanisms for addressing the issues of justice and peace and create awareness on human rights at the grassroots level. 9. Capacity Building and Morality Development Project (CBMDP) Morality and spirituality of the staff members of local partner NGOs and Caritas are developed in order to address the needs of the poor; strengthen capacity of the social workers/animators on human rights, justice & peace, advocacy & networking, planning, evaluation & monitoring; and raise awareness of the saff members on gender & development in order to build a gender sensitive society. 10. Gender Development Programme (GDP) To empower the powerless women folk and to reduce gender discrimination in order to build gender responsive society to live with human dignity. Till June 05 a total of 2,503 groups with 46,330 members have been formed, with group savings amounting to Tk. 40.07 million. The project is, at present, in the process of establishing gender focused and financially sustainable Peoples Organizations (POs) and making gender responsive Caritas projects. 11. Integrated Community Development Projects (ICDP) To motivate and organise ethnic communities of greater Mymensingh, Dinajpur, Sylhet, Moulvibazar and Chittagong areas for socioeconomic development by way of human development through training, income generations and awareness on health and education.

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12. Employment Creation through Sericulture (ECTS) To encourage rural landless poor to involve in various phases of sericulture activities, starting from cultivation of mulberry trees to production of silk cloth, thus creating of employment opportunities for them. AGRICULTURE & ENVIRONMENT 13. Social Forestry To help to achieve ecological balance and derive economic benefit for the rural people through homestead plantation and establishing nurseries through groups organised by Caritas, for their employment and income generation. 14. Horticulture Development Project To help the tribal families in order to achieving improved socioeconomic condition ensuring permanently settled on own land through collective actions including practice of eco-friendly and profitable sustainable ariculture for their livelihood shifting from traditional Jhum cultivation. FISHERIES DEVELOPMENT 15. Sustainable Aquatic Resources Management (SARM) Project To increase fish production, create more gainful employment and explore the eco-friendly fish farming tchnology among the rural poor for their better livelihood through aquatic resources management. 16. Community Based Fisheries Management Project (CBFM) To organize and motivate fishers towards a greater understanding and development of initiatives to implement CBFM practices and to create new income generation opportunities and to strengthen the process of community development through Community Based Organization (CBO) by which community access to the local fishery and CBFM will be enhanced. 17. Sustainable Environment Management Programme (SEMP) Involves the poor/marginal and community people of the brackish water areas in aqua-agricultural activities through introducing scientific rotation of environmentally sustainable and economically viable rotational shrimp and rice cultivation as well as coastal resources development. 18. Management of Aquatic-ecosystem through Community Husbandry (MACH) Community based approach follows for wetland resource management with great emphasis on habitat restoration of aquatic resources, promote other income generating activities for sustainable supply of food fr the fisher communities as well as their overall development. 19. Patuakhali Barguna Aquaculture Extension Project (PBAEP) In collaboration with Bangladesh Government, integrated pond farming is practised in seven Upazilas of Patuakhali and Barguna districts, for higher aquaculture and agriculture yields, aiming at sustainable development of target groups of pond operators, particularly the poor and marginalised VOCATIONAL TRADES TRAINING & EMPLOYMENT CREATION 20. Trade Schools (Regional & Mobile) Provide an opportunity to young poor boys and girls to ensure professional skill for life through a six-month vocational or trades training school, in carpentry, mechanical, electrical, plumbing work, etc. under the Mobile Trade project and one year course in the seven Regional Trade Schools. Under Mobile Trade Schools Project Technical institution including Barind Tract Mobile Trade School, Two Mobile Trade Schools (KinderMission), Five Mobile Trade Schools (BMZ-Govt) set in the remotest area is shifted / removed, after the completion of courses, to other place where required / demanded. It does not require fixed capital investment and it provides technical skills to young men / women / widows for the purpose of promoting employment creation and income generation. 21. Employment Creation through Trade Training for Street Children and Youths The main objective of this project is to impart trade training for the street children and youth so that they become self- employed. This is a pilot project initiated by the Dhaka Archdiocese and the Holy Cross
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Congregations. The project started in January 2004. During the current fiscal year the project will continue to provide technical skills to the street children and youths. 22. MAWTS (Mirpur Agricultural Workshop and Training School) Started as a workshop for repair and manufacture of agricultural machinery it is now essentially a training school which offers Mechanic Course for 3 years, Trade Course for one year and Instructor Course for one year. Appropriate technologies developed include "Rower Pump", "Seed Drills", "Improved Ploughs", "Harrows", etc. Many new ideas are being tried & tested. It operates on "earning while learning principle. The workshop provides training in practical, market needs oriented, opportunities. It is striving to achieve selfsufficiency. 23. Bandarban Technical Training School (BTTC) A project for vocational trades training, aimed at diversification of occupations of tribal boys and girls, from uneconomic jhum (slash & burn) cultivation to other possibilities like carpentry, tailoring and electrical work to, improve/change their way of life from nomadic to a more settled one. COMMUNITY HEALTH & FAMILY PLANNING 24. Support to Eye Hospitals of Bangladesh National Society for the Blind (BNSB) Support to Bangladesh National Society for the Blind (BNSB) for seven hospitals, mobile eye camps, school sight testing, ophthalmic training and nutrition research centre. Intra ocular lens implantation is being rapidly introduced. 25. Under-Fives & Maternity Clinic (UFMC) Focus both on curative and preventive health care, such as treatment and care of babies and mothers, nutrition, inoculation and vaccination. 26. Leprosy Centre & TB Control Project (Diajpur and Khulna) Treatment and rehabilitation of the Leprosy patients. Treatment of the TB patients. Outreach programmes.

27. Centre for Assistance to the Sick and Support to Clinics Provides service to rural poor patients in the form of securing admission in city hospitals, providing food, shelter and first aid/medicine through two centres at Rajshahi and Mymensingh. 28. Reproductive and Child Health Development Project: The main functions of the project -- a) awareness for mother and child care, b) fertility awareness education (FAE), and c) encouraging practice of ovulation method & family planning. Couples are taught the ovulation method of NFP through individual instruction, group seminars and workshops. While achieving planned parenthood it cultivates greater harmony in family-life. 29. Safe Motherhood Project: The objective of the project is to decrease the rate of maternal and infant mortality and morbidity; to decrease the incidence of pregnancy occurring before the woman is 18 years old. 30. HIV / AIDS Prevention Project: The direct stakeholders of Caritas (staff members, partner group members and volunteers) become well informed about HIV/AIDS issues and by following developed HIV/AIDS policy are responsive towards prevention and mitigation of HIV/AIDS suffering. 31. Bangladesh Rehabilitation and Assistance Centre for Addicts (BARACA) A residential centre for treatment and rehabilitation of drug addicts. The addicts who seek such help are provided with therapeutic and psychotropic treatment for their recovery. The centre motivates the addicts in their struggle against the use of drugs. 32. Community Based Rehabilitation of the Disabled Poor, physically handicapped people are provided with artificial limbs and braces, so that they may lead a comparatively active life.
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33. Work with the Disabled (WWD) Disability is considered to be a major health concern in Bangladesh and statistics suggest that about 10% of the total population in Bangladesh is disabled. The issue of disability has been identified as a major deprivation concerning grassroots level people. Responding to the plight of poor disabled. Caritas has initiated a project in collaboration with Catholic dioceses in Bangladesh. The project is gradually being expanded to all dioceses through a process of gradual learning. 34. Assistance to Charitable Dispensaries/Clinics Provide medicine and basic medical equipment to 45 charitable dispensaries and clinics; Provide vaccine for immunization of children; Educate the rural poor about health care, nutrition, childcare, etc.

LITERACY & NUMERACY 35. Underprivileged Children Preparatory Education Programme (former Feeder Schools) The programme was initiated to aware and mobilize the community to understand the significance of education and to ensure their participation in children education. As a result enrolment and school going habit developed in Caritas working areas. More than 500 schools were established so far in Caritas working areas and among these some were nationalized and some were merged as registered school. Still more than 300 schools are running by Caritas. The project has been creating the opportunities of quality primary education to the children of rural communities who are deprived of education for want of consciousness of parents, poverty and lack of school nearby as well as contributing to the governments effort of Universal Primary Education. In the meantime, a model of Child-centered Interactive Teaching Learning is introduced to enhance the quality of education. 36. Formation of Youth and Teachers Programme (FYTP) This proramme strives to bring about timebefitting changes and reforms in the arena of education. With a view to enriching teachers professional skills both short and long term training courses, seminars and workshops are arranged. Nowadays erosion of moral values has become a serious problem. In order to minimize ethical decadence Moral Education (known as Education To Reality ETR) training is imparted to teachers and youth. There are opportunities for pupils to take part in extracurricular activities. With a FYTP coordinated school set as the nucleus, neighbouring educational institutions are involved in year-round interaction on specific issues. 37. Youth Formation Activities Development of a nation depends upon all-round formation of Youth. Young people are the life-blood of every nation. Development of a nation depends upon the all-round formation of youth. Therefore, this project is continuing its efforts for proper formation and development of the youth through different activities for them organized in schools, regions and dioceses. 38. Education Support Program to Children This project started in 2005 to contribute in government efforts to raise national literacy rate by providing support to the poor, orphan and needy students, particularly Adivasi students in the form of monthly grants to meet the expenses of tuition fees, food, lodging and educational materials including books. 39. Education Program for Indigenous People of Chittagong Hill Tracts This project also started in 2005 to contribute to the realization of Government Plan (commitment) for Education for All (EFA) by providing support to the development of the indigenous people that can only be achieved through education objectives as well as to provide basic and fundamental education to the shool-aged children of indigenous communities. 40. Literacy and Health Care Programme (Notre Dame College -Dhaka) To build up school-going habits among destitute and slum children of Dhaka and to give them primary lvel education. To provide medical and preventive health care service for poor patients. HANDICRAFTS
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41. CORR--The Jute Works The CORR-The Jute Works (CJW) is a Womens Non-profit Handicraft Marketing & Exporting Trust working for rural destitute women. The CJW was established in September 2, 1973 and registered under Trust organization regulation of the Peoples Republic of Bangladesh in October 17, 1981 (DEED # 198). The organization (strongly follow vision of Fair Trade and a pioneer in the movement) became self reliant in 1984 and till now run from its own income. As on 30 June, 2005 4,622 artisans in 195 groups and 78 regular staffs are providing ongoing effort in the implementation process of the organization. From 1981, Board of Trustees comprising of ten members are providing their service as the key planners of the organization. The subsequent Board members were elected by producer groups. The main objectives of this project are as under: To promote and assist in the formation of handicraft producers as economically viable groups; To organize rural destitute women and provide them with skill education for producing handicrafts as a supplementary source of income for their socio-economic development; To promote thrift, self-help and democratic practices among the handicraft producer groups in the management of their affairs and to make them self-reliant by group action; To provide facilities for training to the artisans and employees of the Trust by coordinating with other agencies both at home and abroad in the interest of Trust and its beneficiaries.

DISASTER MANAGEMENT 42. Emergency Disaster Management Program (EDMP): Emergency Disaster Management planning and actions for immediate relief and rehabilitation activities for the victims of natural and man-made calamities (at all levels of the organization); Providing food and non-food items if necessary; Providing assistances for crop recovery; Providing assistances for reconstruction works as well as employment opportunities through cash for works; Providing assistances to repair damaged shelters; Providing low cost shelter; Providing professional support e.g. distribution of boat & fishing nets, rickshaws, vans, cow, sewing machines, groceries for small traders etc. for the affected people; Construction of flood/cyclone shelters; Assistance to refugees; Rehabilitation of destitute and disabled; and To minimize the loss of lives and reduce the damage of properties in floods; To have the vulnerable people responded early for floods; To provide training on flood management for volunteers, action groups, social workers, teachers, religious leaders and Union Disaster Management Committee members; To make aware and organize the community people for undertaking flood mitigation projects and considering flood issues in their development work;
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43. Strengthening of Community Resilience to Withstand Flood Poject (SCRWFP)

To coordinate the local efforts with the Govt. and Non Govt. organizations for flood management; and To implement flood mitigation projects;

44. Strengthening of Arsenic Preparedness and Mitigation Project (SAPMP) To make people aware of arsenic poisoning, sources of arsenic contamination and the consequences of the same. To equip local communities, leaders of Caritas formed group members, development allies and civil society members with technical skills to tackle arsenic related problems; To complete arsenic test of the tube-wells in the arsenic contaminated areas; To provide assistances for arsenic patients for proper treatment. To provide arsenic free and safe drinking water for the communities;

45. Shelter for the Poorest Women and Children (SPWCP) To improve the existing living conditions, social security and human dignity of the shelter less/poor sheltered women/children led families by providing a complete house with a set of water sealed latrine on their own homesteads or on the lands donated by others. 46. Sensitization, Community Mobilization and Disaster Management Programme (SCMDMP) To aware the people for the minimization of loss of lives and reducing the damage of properties in disaster situations. To have the vulnerable people responded early for an impending disaster according to warning signals. To provide training on disaster management for volunteers, action groups, social workers, teachers, religious leaders and Union and Upazila disaster management committee members. To provide volunteers rescue equipment for responding the disaster efficiently.

47. Disaster Preparedness, Prevention and Mitigation Programme (DPPMP) To aware the people for the minimization of loss of lives and reducing the damage of properties in disaster situations. To filling up of communication gaps of disseminating early warning system for an impending danger; To establishing/mainstreaming liaison and contact with Govt. and Non-Govt. organizations; To create and strengthen the trained persons, volunteers and action team in the community level; To create the persons for risk identification, need assessment and planning and implementation of of structural/emergency support works;

48. Humanitarian Assistance for the Fire Affected Families under Mohalchhari Caritas has implemented the following three projects in order to assist the fire affected families of Mohalchhari, Khagrachari. 1. Distribution of Household Materials (Non-food items). 2. Construction of Permanent Shelter and Essential Repairing Work of Damaged Homes (in two phases). 3. Bamboo Fence Ceiling Works for the Improvement of Permanent Shelters. Caritas has completed the entire activities for the fire victims of Mohalchhari in two phases as mentioned below: (1) the first phase completed in the financial year 2003-04 with the construction of 33 permanent shelters (model-1) and the distribution of household materials. In the second phase, construction of 289 permanent shelters (model-2) and essential repairing works for 7 houses and the construction of bamboo
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fence ceiling for 275 permanent shelters were completed during the financial year 2004-05. A total amount of Tk. 28,656,491/- has been expended for the implementation of this project. MINI PROJECTS & DISCRETIONARY FUND GRANTS 49. Teg O Sheba Abhejan (TOSA) or Lenten Campaign Lent is the period of self-purification and for creating a greater awareness of the need to share what we have, not just from our surplus but from our own needs. TOSA is an annual campaign organised for creating awareness among the people, irrespective of caste and creed, for sharing with others. The funds collected through the campaign are used for supporting various development projects. 50. Discretionary Fund Grants Caritas Directors Discretionary Fund has been instituted to deal with small but urgent issues, for which normal procedures to obtain Executive Boards permission cannot be followed. Caritas has not been able to get Donors support for this project. Therefore, Caritas General Body has allocated CB General Fund for the Discretionary Fund. The fund is utilized for purposes that are of short duration, such as seminars, training, individual cases that deserve charity, as well as minor proposals for experimentation and innovation. 51. Caritas Employees Solidarity/Poor Fund To express concern for the poor and destitute and assist our less fortunate brethren with our own voluntary monthly contributions. This program is for immediate help to the destitute helpless people of the society. Each staff member working under Caritas is serving the needy and poor people voluntarily by giving his/her own generous contribution in this project. It improves the livelihood condition of the poor people especially through its house repairing, income generation, marriages and other financial supports. This fund also creates an opportunity for the poor and meritorious students for going a step ahead for education. MANAGEMENT INFORMATION SERVICES 52. Projects Monitoring Unit (PMU) Regular and accurate information and feedback help the management to take appropriate decisions where necessary. Since inception, PMU has been involved in designing monitoring system and database software, preparing reports, participating in formulation of project proposal, conducting training, etc. The origin and evolution of Caritas Bangladesh The history of Caritas mirrors the development history and the changing situation of Bangladesh. In tracing its evolution briefly we see that it began with addressing the immediate needs and progressed to an awareness of basic social change through peoples' power as the only hope for human development of the poor majority. Caritas was founded in 1967 as the eastern branch of Caritas Pakistan. Caritas (in the person of Fr. Young) was on leave when the cyclone occurred. When Caritas Switzerland came with funding CORR (Christian Organization for Relief and Rehabilitation) was set up almost immediately after the great cyclone and tidal surge of November 12, 1970. It took up three relief and rehabilitation projects in the coastal belt and became national in scope from January 13, 1971, moving its office to Dhaka and changing Chittagong to Christian in its title. Again the name Caritas was re-introduced in 1976. One of the above three cyclone projects was an ecumenical project with the NCCB (National Council of Churches of Bangladesh), thus early acquainting CORR with some of the difficulties of ecumenical endeavour. The projects were concerned not only with providing the five basic human needs but sought above all to give employment by building a network of roads and therefore opening up communication in the isolated coastal areas. Government had determined that rehabilitation was to be carried out on a cooperative group basis for restoring agriculture. The cyclone projects were hard hit by the eruption of civil conflict from March 25, 1971. The Pakistan Army went on a rampage, resulting in genocide for thousands and forced migration to India of millions, particularly Hindus. From April with close CRS
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assistance, CORR began a programme of aid for war-devastated villages. At Nagari mission Fr. Goedert cared for up to 10,000 Hindus of the burnt-out villages. By the end of the War of Liberation on 16 December, 1971 CORR was carrying on 55 different aid projects, mostly through the Catholic missions. It was the only organization except the U.N. that remained operative throughout the war. Since a network and a team of workers with experience in basic survival were already in place, it was considered that CORR could manage an ambitious reconstruction programme and get it underway long before government or other agencies. Before the end of 1971 Fr. Labbe, CSC the National Director, had received approval from Caritas Internationalis in Rome for the CORR "Skeleton Programme." CORR was to rehabilitate 200,000 families and provide them with five things: partial housing at an average cost of Tk.300 ($ 35), cooking utensils and clothing, test relief work to give employment, food relief and rehabilitation in their former profession as soon as possible at an average cost of Tk.500 per family. Stress was laid on the latter. If people could be put back to work quickly, they could buy or raise their own food and could gradually complete or expand their house. Professional rehabilitation looked forward to development and was done on a half-grant, half-loan basis. The incentive for loan repayment was that all the loan repayment money would be used for development of each particular area. Food was to be given only if absolutely necessary. S. Santiago in his evaluation of the CORR programme wrote that "the CRS was successfully persuaded by CORR not to engage in organized and regular free food supplies." Other important principles followed were : 1) procure as much locally or in India as possible; 2) avoid the BBMM Complex (baby food, blankets, milk powder and medicine); and 3) don't use an emergency situation as a time to experiment with unfamiliar housing and unfamiliar food or crops. During 1972 CORR drew up its Mandate in a brief statement. It was to last for ten years before the Governing Body requested a revision and went through a lengthy study process which ended up by practically reaffirming the original. CORR's philosophy of development was expanded in the 1973 Annual Report. "Projects, however small, which arise from the felt needs of the people, and in which they take an active part not only in the education but also in the planning have a far better chance to succeed that large projects imposed from the top down, without participation by the beneficiaries, 'Paternalistic Programmes perpetuate parasitism' - this motto should be hung on the wall of all central planners.' The main difference in orientation from previous Church efforts in human welfare, particularly through CRS supply channels, was that CORR was to work "irrespective of race, caste or creed." It took the Catholics of Bangladesh several years to accept this philosophy of CORR, let alone be deeply convinced of it. By the end of 1972 CORR had completed 264,985 houses, of which Fr. L'Imperio, PIME in Dinajpur had constructed 169,000 before government had built even one. CORR's reconstruction programme eventually totaled US $ 40 million in cash and kind, with an administrative budget of 2%. This was possible because most of the parishes and large numbers of volunteers had some part in the work. By 1973 it was apparent that an almost-universal relief mentality had developed in Bangladesh. Therefore CORR decided that it would be a purely development organisation from July, 1973. However, in 1974 there were huge floods followed by famine and CORR once again had to turn its efforts towards disaster relief and rehabilitation. The following year two permanent divisions of Caritas - Development and Social Welfare - were set up, each with its own financing and personnel, so that disaster situations would not disrupt the task of development. The cyclone of May 1985, to which Caritas responded briskly and with great efficiency and with the approval and appreciation of Government, shows that the decision for a permanent Social Welfare arm was a wise one. Also in 1975 the name of CORR was changed to Caritas Bangladesh in order to avoid the implications of being only for Christians and for carrying out only relief and rehabilitation. CORR as a development agency first embarked in 1973 on a large irrigation project, taken over from the Bangladesh Planning Commission and the World Bank at their request, because they felt that CORR had the efficiency and flexibility to execute the project much more rapidly than government. The project was
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in existence for many years having the name JCCIP (Joint CORR-CRS Irrigation Project). Several LLPs (Lowlift Pumps) and shallow tubewells were distributed on hire-purchase contracts to organized irrigation groups which had been formed on the basis of standard co-operative principles, though without being registered with government. Field organization was carried out by FEWs (Field Extension Workers), trained at the Caritas hostel in Comilla near BARD (Bangladesh Academy for Rural Development), where good resource persons were available. Mechanic and engine driver trainings were conducted at MAWTS (Mirpur Agricultural Workshop and Training School), where JCCIP also had its office and facilities. MAWTS made an important contribution to the irrigation programme by developing the Rower Pump, invented by an MCC (Mennonite Central Committee) engineer. It is now regarded as one of the most appropriate irrigation technologies for the small and marginal farmers. One idea was that irrigation is the great need of agriculture in the dry season and hence the farmers' groups would work together co-operatively in order to get an irrigation unit. It was reckoned that they could pay back the full cost of the unit in three years and as a result of their successful co-operative efforts they would turn themselves to other economic projects as independent self-reliant groups. Two big difficulties stood in the way of success. One was technical: experimental LLPs and tube-wells were procured and put into the field before sufficient trial testing and many technical problems arose, demanding instant solutions during the growing season. The other difficulty was social -- some irrigation groups were formed from previously existing co-operatives, which included both large and small farmers; some Regional Directors felt that the presence of educated large farmers in the group was either necessary or desirable, because they were better managers. In 1978 a full-scale evaluation of all the irrigation groups, based on a 33-point questionnaire, was carried out. The evaluation demonstrated conclusively that Caritas was not fulfilling our social objectives sufficiently in the irrigation project but that the bigger farmers were taking over the groups. That is when Caritas turned to DEEDS (Development Extension Education Service) from 1977, at present Caritas largest and most important programme. The Assistant Field Officers (AFOs) under DEEDS organized homogeneous groups of the poor, who begin with regular weekly meetings and savings, discussing their problems and analyzing their village environment, with the AFO present as a participantobserver, rather than as a guide or a lecturer. Nearly 14,500 partner groups have already been organized under DEEDS, including groups exclusively for women. These groups carry out two principal activities: (1) socio-economic projects of their own choice, using at first their own savings and after proving themselves loan eligible they would get loans from Caritas Revolving Loan Fund. Then they would unitedly try to get government benefits due to them or to struggle against personal or social injustices in their experience. The many income generating projects taken up by the Caritas Partner Groups attest to their desperate economic plight. Consciousness raising means a changing mental attitude but the poor are principally concerned with improving the condition of their families. Some groups carry out joint projects, such as cultivating fish in a leased pond or leasing a piece of land for common cultivation, while other groups distribute loans to their individual members on terms and conditions set by the group. The most common uses of loans by the members are for small business, agricultural cultivation, animal husbandry, poultry or fish farming, handicraft or food processing. Through awareness building the group members learn that "In unity there is strength." Many neighbouring groups have joined ranks to get better terms of sharecropping or a higher agricultural wage. When one group gets involved in a struggle for justice on behalf of one of its members, the nearby groups show solidarity and give their support. In several cases the traditional "power structure of the village" has been defeated in its open domination and oppression through the combined efforts of the DEEDS groups. In 1989 Caritas initiated the Integrated Community Development Project (ICDP) in 14 Upazila of the greater Mymensingh district, targeted particularly towards the development of the ethnic minority or Adivasis with an overarching goal of solving their major problems as a community and assistsing them in providing a life of cultural, social, political and economic well-being. They, for various social political
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reasons, are more vulnerable to risks and disasters and becoming poor and face greater difficulties in overcoming poverty, subject to cultural, social, political and economic oppressions and exploitations than the non-Adivasi poor. Towards solving the problems of the Adivasis the project is working on preserving and developing Adivasi culture and heritage; building saving habits among them; creating income generating opportunities for them both on farm and off-farm; engaging them in income generating activities; creating leadership among them; promoting preventive community health care and family planning; providing non-formal education, promoting land retention among the Adibasis; promoting land development among the Adivasis; and creating legal awareness, particularly awareness related to land. The Integrated Community Development Project (ICDP) is also in operation in Dinajpur and Rangpur areas since 1998. Caritas has an extensive working experience with the landless and marginal farmers, women and in small way with Adivasis living in the Northwest part of the country. In the early 70s Caritas took up a legal aid project for raising awareness among the tribal people about the value of their land, land documents and supporting legal cases where necessary. In the following decades it was important to support the interventions of the Adivasis to help change and improve their conditions and living standard. Caritas Bangladesh came forward with its ICDP programme the first one in 1989 and the second one in 1998 to extend her help to indigenous people such as education, training, credit union movement, credit for self-employment, health education, social forestry program, etc. After 1998 the Integrated Community Development Project (ICDP) of Caritas has been expanded in Sylhet, Moulvi Bazar and Chittagong Hill Tracts areas. During the year 1990 Caritas started another programme named Integrated Human Development Programme (IHDP) as a separate project, aiming to promote Socio-Economic and Cultural development of the poor and marginalised Adivasi community of the Barind Tract area of greater Rajshahi District; by imparting non formal education, i.e. training, meeting, seminar and workshop and to help the primary groups to build Peoples Organizations. At present IHDP covers seven Upazilas under Rajshahi Region. For the empowerment of the members and strengthening the traditional community organisation (Dighori, Pargana, Baishi) of the Adivasi at village, Union and Upazila level this special program has been implemented. IHDP has been merged with DEEDS since 1997. Through implementing different development programmes over the years, Caritas experienced that women are more sincere in attending meetings, depositing savings and repaying loans than men. At group level, the role of women was much better than that of men. But at the Union and Upazila levels the scenario was found to be the reverse. Women were not performing an active role in comparison to men in terms of leadership. Based on the findings and lessons learned, Caritas took up the Integrated Women Development Programme (IWDP) in 1992. In IWDP special emphasis was given on the empowerment of women through forming self-managed and self-financed grassroots organizations. The project is now in operation, bearing the name Gender Development Programme and helping to promote womens leadership. Considering that Bangladesh is a disaster-prone area and that 80% of the people are below the subsistence level, there is need of continuation of welfare activities side by side with development. Caritas also learned from experience that development is only possible within a community which has a minimum risk-bearing capacity. At present Caritas has as many as 52 projects under its two broad programme heads i.e. Disaster Management and Development (formerly Welfare); and Development. Through the implementation of these projects Caritas aspires to build an exploitation-free society where there will be peace, justice, human dignity, and all people irrespective of caste, creed and social denomination will live together, building a peaceful communion of communities. Within the institutional mandate of Caritas Bangladesh, the consultations with different stakeholders have also led to the revision of its Vision and Mission and to defining the Values and Principles to be followed in pursuing its mission. The process ended with consensus on four thematic and six cross-cutting priorities for the future. Objectives for each thematic
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area and the strategies to achieve them under the present development context are also incorporated in this Strategic Plan. Caritas has opted to embrace the following thematic challenges as its main priorities: A) Human Resource Development through Education, Formation and Capacity Building. B) Establishment of Social Justice and Human Rights through the Capacity Building of the Poor, of the Women and of the Ethnic Communities. C) Health Care. D) Ensure Ecological Sustainability through the Appropriate Use of Natural Resources and Capacity Building in Disaster Management. While Caritas remains committed to these thematic areas, it is fully aware that these challenges are interlinked with a wide range of social dynamics. Therefore, Caritas also wants to integrate some cross-cutting issues like Community Participation, Gender, Spirituality and Morality in Development, Good Governance, Partnership Building, Advocacy and Lobbying in its development interventions. Caritas has many projects but only one programme: the whole and integrated development of people to progress from less human to more human conditions. Caritas seeks Gods blessings and co-operation of all well-wishers for its work. We look forward to have the steady support of our donors, friends and wellwishers, which we have enjoyed over the years.

BURO Bangladesh
BURO Bangladesh is a national not-for-profit organization that was set up in 1990 with a view to working for the poor on sustainable basis to reduce poverty. It is a specialized micro-finance institution that provides high quality flexible financial services to low-income people, particularly the women, who are regarded as its prime customers. They are indeed the conduit for channeling resources into the households for reduction of poverty. The organization is responsive to diverse financial needs of customers. To meet their ever-growing financial needs, it has launched six loan products, three savings products and one insurance scheme. In addition, it provides agriculture loans to small and marginal farmers and stepped up loans to the graduated clients called enterprise loan. The organization has also a disaster mitigation program for the affected people in the microfinance system. The organization was one of the first MFIs in the country to articulate a clear, unequivocal commitment to achieve financial sustainability, and establish itself as an independent institution. Since then, it has been achieving milestones of success and eventually attained financial sustainability. BURO Bangladeshs financial service is helping the customers in many ways. The money that they save with the organization are used for productive purposes when it turns into a lump sum amount. On the other hand, most customers are using loans for small trade and business activities as working capital. This loan is helping the growth of the businesses and their income. Some people are also getting employment opportunities. Vision A happy, prosperous and pluralistic democratic society that meets the basic needs of the people in Bangladesh. Mission An independent, sustainable, cost-effective microfinance institution that provides diverse, appropriate and market responsive, quality financial and business development services at competitive prices along with other social development programs to very poor, poor and vulnerable non-poor customers. Strategic Priorities : Market Positioning : Promote product diversification. Identify the major attributes that the customers value in the financial products. Pursue commercialization principle. Assess importance of different attributes in terms
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 Support the hard-core poor; small & micro enterprises; and small & marginal farmers. Values Listening to Customers

of quality, cost, price and service delivery. Assess BURO Bangladesh and its competitors offer for positioning in the market.

Respecting the customers as valued clients. The program pivots on customers choice. Rules and regulations change on the likes and dislikes of customers. Customers Empowerment Access to flexible and quality financial services for the poor. Money management capacity through savings and loan activities. Customer responsiveness as a key to the development of the organization. Right to Access Information The customers have every right to tally the passbooks with branch level transaction. Customers have right to know what the organization is doing with their savings. Financial Service is a Right The customers need a safe place to keep savings. of the Customers The customers have every right to withdraw savings whenever necessary. Customers have a right for credit for their development and raising income. Features of Quality Financial Service that is timely. Service Service that is prompt and quick. Service that meets the customers needs. Service that the customers can afford. Financial Prudence Cost recovery principle for service delivery to the customers. Capacity to mobilize funds from commercial sources or market. Capacity for financial management, audit and financial control. Good Governance Strategic vision/mission: A long-term perspective about what is needed by the customers, and BURO Bangladesh. Responsiveness: Serving the interests of all stakeholders. Transparency: A free flow of information between the organization and concerned stakeholders. Accountability: Decision-makers are answerable to the stakeholders and the organization. Social and Development Work with a social mission to contribute in poverty reduction. Commitment Pursue commercial objective to provide sustainable microfinance service. BURO Customers There are three categories of customers who are selected based on some specific criteria. VERY POOR/EXTREME POOR owning less than 10 decimals of land annual income equal to or less than BDT 6,000 and having assets less than BDT 12,000 age limit between 18-60 years MODERATE POOR owning less than 0.50 acres of land annual income equal to or less than BDT 18,000 and having assets less than BDT 100,000
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 age limit between 18-60 years MICRO ENTREPRENEURS AND SMALL & MARGINAL FARMERS owning more than 0.50 acres of land annual income in the range of BDT 18,000 BDT 60,000 and having assets in the range of BDT 100,000 BDT 300,000 age limit between 18-60 years Non-Financial Development Programs Business Development Services (BDS) A CONTINUOUS PROCESS: Employment and income generation is one of the most important area for macroeconomic stability for poverty reduction through reducing income equality within inter and intratarget groups and between the target and non-target groups. Employment and income generation is a continuous process, that is, investments in micro enterprise development shall open further investment opportunities. COMPARATIVE ADVANTAGE: BURO Bangladesh focuses on employment opportunities in the rural areas, particularly in non-conventional businesses either existing or new with fewer risks but who have gained certain specialization in business development. The infusion of further knowledge will enhance the development of rural and urban linkages in economic activity, further resulting into modernization of economy and also linkage between the farm and non-farm sector to promote economic growth in the country. FUNDAMENTAL BARRIERS: Inadequate information, poor education, insufficient technical skills and inadequate access to market are the fundamental barriers to the growth of micro enterprises. The participation of suppliers of goods and services in the markets is effectively constrained because of these barriers. As such, all the stated barriers are required to address to mainstream these MEs into development process of the country. TECHNOLOGY TRANSFER: One such means to remove the fundamental barriers is the technology transfer that BURO Bangladesh emphasizes on, instead of limiting itself to employment related skill development training on the basis of the demands from its customers BURO Bangladesh reaches the training services to individual household level that facilitates their participation in the highly competitive market. Quality seed production is one such example that spreads the technology among the active members of an individual household where each member works as both consumer and producer. LABOR DEMAND: The micro enterprises (MEs) are the firms and will demand labor from the households and at the same time, households will supply labor but will demand better wages, as such squeezed participation in the market by the firms will jeopardize the labor supply from the households. Thus, the program is intended to facilitate BDS to the grassroots MEs to run their businesses in a sustainable manner and create a sustainable BDS market that also benefit both consumers (firms) and suppliers (households) in the labor market. Food Security DIVERSIFICATION OF EMPLOYMENT: Engaging only into non-farm activities as income sources will keep the productivity of labor for most of the hardcore poor unutilized because it requires complete macro-economic stability. Hyperinflation or inflation will push the prices of inputs for non-farm activities, as such may find many small, medium and micro enterprises in rural and urban areas are winded-up creating unemployment. This requires replenishing the income losses through either opening new employment opportunities in other sector or creating the bases of food security for the disadvantaged and poor. CREATING NEW EMPLOYMENT OPPORTUNITIES: Creating and sustaining the new employment opportunities also require macroeconomic stability; for example: controlled inflation, availability of
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power, better communication, waterways, marketing facilities etc.. Thus, creating the bases of food security is the priori to creating new employment opportunities to withstand pressure on household economy due to consumption and income shocks. AGRICULTURE: Is the fundamental and central nerve of both economic and non-economic activities. Agriculture is the consumers and suppliers to both economic and non-economic activities. Food security, which is: availability, accessibility to and utilization of food are surrounded by economical, social, and political complex phenomena. Every moment because of market - market integration within and across the national boundaries food security becomes adversely affected. TRANSPARENCY AND ACCOUNTABILITY: Two integral entities circumvent the food security issue. These are: (1) community stakeholders and (2) local government. The former largely shapes social structure and relations in the rural and urban society, and the later is the link between the community and the government devel Loan Products The loan products have been developed in response to the demand of its customers and specifically designed to assist their economic activities they are market-led and customer responsive. As a result, BURO Bangladesh has many comparative advantages. Unlike many NGO-MFIs, customers do not have to take loans from BURO Bangladesh just to remain in the program. Instead, BURO Bangladesh only gives loans as and when customers want them to support their economic activities. Unlike most of the NGO-MFIs customers, BURO Bangladeshs loans are not linked to savings balances loans and savings services have been completely de-linked and made entirely voluntary. Customers can prepay their loans in order to qualify for new and larger loans. In addition to existing loan(s), BURO Bangladesh customers can have short-term loan for meeting any emergency needs. GENERAL LOAN: The loan is intended to allow rural and urban poor households to finance their economic activities and build a strong capital base. General Loans are working capital loans given to poor and disadvantaged households. General Loans range from BDT 5,000 to BDT 45,000, depending on the economic activity, the borrowers management capacity, and demand for the product and/or services in the market. The loans are repayable within a year in 46 installments at an annual interest rate of 15 percent. MICRO-ENTERPRISE LOAN: BURO Bangladesh has developed its micro-enterprise loan for the 1520% of entrepreneurs capable of graduating from groups, as well as entrepreneurs in the community, Micro-enterprise Loans are individual loans that are assessed on the basis of household cash flow, business projections and the reputation of the borrower amongst her/his business peers/in the community. The size of the loan depends on the size of the businesses and the comparative advantages that the entrepreneurs have. With the Micro-enterprise Loan borrowers are expected both to provide equity and to generate wage labor employment (other than family labor). Micro-enterprise loans range between BDT 50,000-BDT 300,000, repayable within one-three years in 46-138 installments at an annual interest rate of 15 percent. AGRICULTURE LOAN: The loan is exclusively for agricultural activities and is designed to increase the farm activities enhancing the livelihood of the poor rural and peri-urban households. The agricultural loan also enhances food security of the households. The loans are disbursed to landless and marginal farmers in organized groups. Agricultural loans of BDT 10,000 BDT 50,000 are given for one year, depending on the activity, land-holding etc., repayable in 46 installments with an annual interest rate of 15 percent. HAND LOAN: The loan is intended to serve as a social security net and was designed implemented after the Customer Consultative Group Discussions and Client Satisfaction Surveys conducted by BURO Bangladesh. The hand loan is designed to protect customers from shocks to their household economies
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and the erosion of their financial, physical and social assets. Hand loans are used to finance important festivals (Eid, Puja, Christmas, marriages etc.), health care and child education. The hand loan is a small loan of BDT 3,000, repayable within 3 months at an annual interest rate of 15 percent. DISASTER LOAN: In extreme emergencies such as cyclone and floods, BURO Bangladesh provides disaster relief with support from leading donor agencies. However, instead of offering large-scale or longterm charitable activities, the organization places emphasis on the promotion of self-help and self-reliance of disaster-affected rural communities, encouraging and helping households to stand on their own feet. The disaster loan ranges from BDT 3,000 BDT 5,000 with an interest rate of 10 percent to be repaid over one year. The disaster loan is intended to reduce the effect of shocks to the households financial and physical assets immediately after natural disasters. The disaster loans meet affected households immediate needs for cash and thus to respond to their situation. WATER & SANITATION LOAN: Environmental health concerns continue to be an ominous factor contributing to diseases and poverty. Access to safe drinking water which is also free from arsenic contamination and to hygienic sanitation will reduce sickness and thus increase the labor productivity. The tube-well loan facilitates access to safe water for drinking and other purposes. The sanitary loan is offered to customers seeking to install sanitary latrines in their homesteads. Both the sanitary and tubewell loans range from BDT 3,000 BDT 10,000 repayable within a year with an interest rate of 15 percent. Savings Products All savings are payable to the customers on demand. Savings is not held as security for loan. Strong, accountable governance, sound asset management and an enabling legal and regulatory environment are three cornerstones for large scale savings mobilization. The organization offers savings services to all its clients (whether they choose to borrow or not), with the basic objectives of: The poor people have a formidable capacity to save and BURO Bangladesh duly recognizes this fact. It provides a secured place for keeping savings, increasing financial strength and capital growth of the customers with a view to reducing their dependency on external resources; and Improving the sustainability of the institution by developing a relatively stable means to finance its loan portfolio. In accepting savings from poor people, BURO Bangladesh discharges a fiduciary responsibility. It has worked hard to: Strengthen the governance and management functions to optimize the security of the savings products offered by the institution; Assess, understand and respond to the demand for a variety of differentiated savings products and offer a range of liquid and illiquid products; and Develop and implement policies, procedures and processes that optimize systems of internal control and risk management. GENERAL SAVINGS: Small depositors usually value convenient, easy access and relatively secure delivery savings services above all else. In some environments, to be useful to women, the delivery systems must respond to their restricted mobility and availability of time. Customers also value privacy, preferring systems that do not reveal to other customer how much they save and withdraw. The general savings account is like a current account, where customers can save or withdraw on demand. The general savings account requires a nominal minimum balance of BDT 10. The general savings account customers have the following advantages: Savings of any amount from BDT 10 BDT 2,000 at the Kendra (group) meeting in the village; and deposit any amount above BDT 2,000 at the branch; Withdraw savings at any time on demand, and
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Receive compounded interest at the rate of 4.5 percent per annum of their general savings account balance. REGULAR VOLUNTARY SAVINGS: Poor people often value regular, disciplined savings systems as a way of building up useful lump sums that can be invested or used for social obligations such as marriages, funeral or childrens education. These products respond to the poors demand for illiquid savings systems that protect their money from frivolous spending and allow the slow, but steady accumulation of a lump sum. BURO Bangladesh pays a significantly higher rate of interest on these regular voluntary savings than on the general savings account. The Regular Voluntary Savings account allows savers to determine the amount and time of deposits and withdrawals. In the Regular Voluntary Savings account, clients agree to regularly deposit a set amount for a set period of time, after which they can withdraw the entire amount plus the interest. The savings account offers the following advantages to the customers: Customers can choose to deposit on a weekly or monthly basis according to their income/ cash flows. Customers can choose to deposit weekly savings in the range of BDT 10 BDT 250; and monthly savings in the range of BDT 40 BDT 1,000. At the end of the period, customers receive more than the total deposited amount. Customers can (and often choose to) open more than one account in the same name simultaneously. Interest is paid on a compound basis in the range of 7 to 8 percent. TIME SAVINGS: In some occasions, the customers earn lump sum amount at a time from business or sales. Under the circumstances, the organization allows such customers to deposit a maximum of amount of BDT 5,000 in this account for varying period with interest rate within the range of 6% to 8%. Micro-Insurance Product Customers security fund has been promoted with two objectives viz. the social objective, and the commercial objective. The social objective recognizes social protection of the customers is necessary to reduce the vulnerability of households to income and consumption shocks. The commercial objective is to increase the stability and profitability of poor households through reducing the impact of customer risk on loan and savings portfolios, generating additional revenue, supporting risk management, and reducing customers vulnerability to economic stresses. The poor and micro-entrepreneurs and small & marginal farmers (vulnerable poor) customers have to pay premium of BDT 50 to BDT 200, while the very poor customers are required to pay BDT 30. The premiums are one-time payment in a year. The insurance yields three benefits after the death of the customer. First, cash benefits will be 100 times of the premium chosen. Secondly, the entire outstanding loan of the clients will be waived and thirdly, after the death of the principal loan guarantor, the family of the guarantor will also receive half of the cash benefits. Remittances Delivery Channel The increased volume of remittance funds, sent mostly to low-income families, has prompted a heightened interest of customers that will lower the costs of these transfers and raise their economic impact. By providing remittance service, microfinance institutions can attract new clients and provide greater value to existing clients. BURO Bangladesh is developing a remittance product in collaboration with a consortium of banks. Approach & Recognition Sustainable Approach BURO Bangladesh considers sustainability of lending operation is its ability to cover the cost of administration, loan losses, savings account interest, and cost of other capital from funds generated through receipts from interest charges and other fees. Profitability remains to be tested in many countries, but remarkable examples have been set by some lending operations that break even or
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overcome that point. BURO Bangladesh firmly believes this and has already demonstrated that it is feasible in Bangladesh. Its sustainable approach is based on the following: Developing an appropriate quality financial service delivery methodology: Virtually all programs that come close to break even, use special savings and credit techniques adopted from the informal sector. Streamlining administration to control cost: For very small loans, administrative techniques must be extremely simple, so that paper work is minimized, and volume of workload per staff is maximized. Despite streamlined procedures, the administrative costs will still be higher that necessitates high interest rate to cope up with volume of loan. Full cost pricing: From the outset, institutions should charge a rate that will ultimately support a viable lending operation. Loans to informal sector will require interest rates at least 7-10 percent higher than the standard commercial rates. This informal sector can afford such rates. Adopt transparent and consistent financial reporting: A frequent criticism of MFIs is the question of accuracy or the completeness of their financial statements and reporting. The generally accepted accounting principles and transparent recording of transactions adopted among the subsidiaries will enhance the credibility of MFIs with the financial investors. Accountability: Managers and staff must be held accountable for the results and should be rewarded for good performances. Good management is essential, but more important is the requirement for accountability that comes operating as a business, where survival depends on good performance. In fine, self-sufficiency in savings and credit operations is an essential prerequisite for reaching a large number of members and becoming a permanent, independent institution. Recognition Through its journey, BURO Bangladesh has achieved numerous recognitions and awards from distinguished concerns. Followings are the most esteemed of them: [ CGAP/The World Bank Financial Transparency Award ] BURO Bangladesh has been awarded Merit Recognition for its performance in Financial Transparency Award 2005 and 2006 by the Consultative Group to Assist the Poor (CGAP)/ The World Bank. This is a significant international recognition to the organization especially for its financial transparency. Applicants for the award were judged according to their compliance with international disclosure guidelines, including industry-specific CGAP Disclosure Guidelines that are widely accepted as International Financial Reporting Standards (IFRS). [ SAFA Award for Best Published Reports and Accounts ] The South Asian Federation of Accountants-SAFA, which was established in 1984 to coordinate the accounting profession from the SAARC member countries, has awarded BURO Bangladesh the first position for the Best Presented Accounts in the category of NGO-MFI for the year 2005. [ ICAB National Award for Best Published Reports and Accounts ] The Institute of Chartered Accountants of Bangladesh (ICAB) has awarded BURO Bangladesh the second, first and third position in a row in the NGO-MFI sector for its best published Reports and Accounts for the financial year 2004, 2005 and 2006 respectively. This is a big national recognition to an NGO-MFI especially for its financial transparency.

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Dhaka Ahsania Mission

A voluntary organization striving towards sustainable development. Founded in 1958 with the aim to develop social and spiritual life of the entire human community, DAM works with basic thrust on poverty alleviation and socio-economic empowerment of the poor, specially the disadvantaged. Major Functions Implements community-based programmes Develops innovative education & communication materials Operates educational, vocational & health institutions Provides wide range of training & consultancy services Undertake advocacy for policy changes in strategic issues Work at international level DAM functions at the grassroots level, as well as at national and international levels. Perspectives Dhaka Ahsania Mission (DAM) pursues a mission to create conditions for increased access of the target groups and the communities within which they live, to public and private services and enhance capacities of such communities to maximally utilize such services particularly in four interconnected areas of Education, Livelihood, Health and Human Rights & Social Justice, with Environment being a crosscutting theme. The Mission is reflected in the figure , where the top represents the living condition of family symbolized by a child, a woman and a man and the pillars represent sectors for intervention through which the family will enjoy a satisfying standard of living. Trainning Program Sectors Facilitating issue-based discussion Education In education sector, DAM actively works Community based social and resource mobilization in policy advocacy through dialogues, besides providing education to the children, adolescents and Group management adults in both non-formal and formal programmes. DAM also works on community empowerment to Leadership development equip them to claim quality education, to monitor access and efficiency of available education services. Community capacity development Decision making Future Planning of Ganokendra Networking and linkage Participatory monitoring Project planning and management Refreshers training for teachers Foundation training of teachers Supervisors training Material Development Training and Materials Development Division, with its long field-based experience, is in a process of shifting paradigm in design, development and
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facilitation of training courses and also developing education, information and communication materials in a way that needs of the community are reflected through their participation in the process. Livelihood For improvement of livelihood conditions, DAM focus on capacity building of target disadvantaged households to engage in income generating activities, in particular through promoting agricultural diversity, establishing market-oriented vocational training facilities supported by employment support service, market linkage and facilitating access to micro finance. Entrepreneurship development training Employment and market linkage Ganokendra accounts and record keeping Fund management training Cow rearing Employment guidance and market linkage Fund management Project planning and management Community based disaster management Health DAMs health service focus is on enhancing complemented health service system by engaging in capacity building of health workers, facilitating effective and sustainable water and sanitation practices, establishment of community managed satellite clinics, prevention of drug abuse and HIV/AIDS, and cancer care and mental health care. Human Rights and Social Justice In Human Rights & Social Justice sector, DAMs major focus is to mobilize communities to stand up for their social and human rights in the broadest sense including the right to live in a safe and peaceful environment, gender rights, and child rights. Besides, DAM joins policy dialogue on related issues at the national level. Gender Development New Couple Training Good Governance Selected Issues for women rights Bangladesh Extension Education Service (BEES) BEES started its journey in 1975 with an aim to be with the people those who are at disadvantaged situations. Since then BEES has been contributing towards the development of the poor with utmost Master Trainer Training commitments and enthusiasm. BEES believe that sustainable Community Volunteer Training development of the poor communities can only be ensured if the development activities are shared and owned by the communities. Being Social Empowerment Training a development partner, BEES attitude is always to support the poor with appropriate assistance, link them with local level institutions and facilitate the government policy so that development is sustained. BEES. From its long association with the people has experienced that without integration and addressing the peoples' requirements following the participatory approach, real development will never be attained.
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Advocacy Development Training

Therefore, BEES is very careful in designing and implementing its programs. BEES programs are contributing to supplement and compliment the services taken by the Government of Bangladesh. The overall achievements of the year 2001-2002 were quite satisfactory in terms of the annual targets. BEES successfully addressed over 600,000 population within 26 districts of Bangladesh. Development initiatives were continued to accelerate employment and income generation through the Micro-credit and Micro-Enterprise Development programs. BEES shared a major portion of the credit for the beneficiaries from its own fund. Agriculture and Social Forestry program targeted landless, marginal and small farmers including tribal people and successfully promoted agricultural crop diversification and increased food production. The education program facilitated the disadvantaged children and adolescents who had either been dropped-out from regular schooling or never been enrolled in any school. The program supplemented national efforts towards building an illiteracy-free society. Health initiatives under BEES program significantly enhanced the health and nutritional status of the women and children under the program areas. The lessons learnt from different programs would be the platform of BEES to move forward. Credit Plus is another innovation of BEES's services which is providing financial assistance to the target beneficiaries under "Sheba Package" along with other development services. A common trend of microcredit programs in Bangladesh is to provide economic support to the beneficiaries to enhance their economic condition only through Income Generating Activities (IGAs). Unfortunately most of these programs do not critically analyze the socio-cultural and other development aspects including the question of sustainability. Hence these programs may partially contribute in social and other development and as a consequence, sustainable changes in the life of targeted beneficiaries are not being observed. We believe that parallel to financial support, people need to widen their periphery of knowledge and skill and; fulfill social requirements. The approach "Credit Plus" promotes human attitudes, social norms, values & culture. It is linked with other essential services such as basic health & nutrition, education, training along with IGAs, which have direct impact on the welfare of the potential beneficiaries. BEES have introduced this approach since last two years and a good number of beneficiaries are brought under these facilities on pilot basis. Considering the demand, BEES has a plan to expand this approach among all the target beneficiaries. The accomplishments of BEES are not only the credit of its own. It is the Community People who contributed their utmost effort to transform the initiatives into actions, the Donors who provided us the financial and technical assistance, the Executive Board of BEES who contributed to develop the policy guidelines, and finally the committed Staff who leads to the accomplishments with their professionalism and sincere efforts. The ultimate goal of BEES is organizational sustainability. BEES is trying to reduce its dependency over the donors' fund and become self-reliant. The new S years plan (2004-2008) Credit Plus Development Program (CPDP) has been developed taking into consideration the continuity and sustainability of the beneficiaries of BEES. Now BEES is in the process of establishing its motto through hard work and sincere efforts. We hope that the Report will be of interest to the valued readers to know about the programs and philosophy of BEES and to this report will be a source of some information to the partners of BEES who are constantly supporting its initiatives.

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Kumudini Welfare Trust

KUMUDINI WELFARE TRUST is a non-profit organization focusing on the needs of women and the poor in Bangladesh. The 750-bed Kumudini Hospital offers free treatment to the poor from all over the country; Kumudini Hospital School trains 250 nurses a year; Bharateswari Homes, a residential school, offers elementary and secondary education to over 1200 girls; and Kumudini Handcrafts helps over 5,000 artisans, mostly women, generate income by providing training and encouraging the development and preservation of traditional handcraft skills. Kumudini operates its own vegetable dyeing plant using leaves, petals, bark, and roots and has also developed a handmade paper line using the pesky water hyacinth plant. We truly believe that successful marketing of fairly traded goods ultimately helps producers get away from acute poverty in less developed countries such as Nepal. - Sunil Chitrakar - Mahaguthi: Crafts with a Conscience, Nepal

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SERRV Partners in Bangladesh: CORR - The Jute Works CORR The Jute Works (CJW) was started in 1973 by CARITAS/Bangladesh, a Catholic service organization, to help rural women provide supplemental income for their families. At present, 3,515 artisans, who are members of 140 artisan groups, are supported by CJWs work. Dhaka Handicrafts Dhaka Handicrafts is a worker-owned organization marketing traditional handcrafts (baskets & terra cotta pottery) for rural artisans in Bangladesh. HEED Handicrafts Established in 1977, HEED Handicrafts is a forward thinking job creation project of HEED Bangladesh (Health, Education and Economic Development), a registered Christian non-governmental organization. HEED Handicrafts trains and works directly with minority groups such as refugees, people with disabilities and indigenous tribal groups to develop their skills base, improve their financial status, and raise their self-esteem. Prokritee Prokritee is a Bangla word which means "nature", referring to the all-natural materials used to make their products. Prokritee works with small enterprises with the goal of generating income for poor, rural women. YWCA of Dhaka The YWCA of Dhaka Craft Centre was started in 1973 to provide training in sewing and embroidery for women, many of whom had been abandoned or abused by their husbands. The Center's programs currently benefit 400 women.

Donate or Lend Gifts of financial support are what make it possible for us to provide valuable training, product development, and small grants to our partners, extending their earning potential into the future.

Donate a cash contribution

With the SERRV International Loan Fund, your money can earn so much more than interest. By investing in the Fund, you help provide loans and partial pre-payments to our partners, who have little or no access to much-needed capital. At the same time, you earn interest and receive your principal back when the loan matures.

Lend a portion of your savings

BANGLADESH DISASTER PREPAREDNESS CENTRE

An Overview of BDPC Who is BDPC
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Bangladesh Disaster Preparedness Centre (BDPC) is a non-government organization, established in 1992. It is the only NGO in Bangladesh, which has pioneered in the role as a facilitator, providing guidance, advice, inputs and knowledge towards capacity development of actors and institutions engaged in disaster management, and risk reduction activities and over the past fourteen years, has gained recognition among various stakeholder groups both at national and international level as well. BDPC is solely engaged in the whole gamut of disaster management programs e.g. research, study, publication, advocacy and lobbying, program appraisal, strategy formulation, training, media materials development, message dissemination, post-disaster response planning and intervention, monitoring, evaluation, etc. BDPC is a not-for-profit entity and registered as a Non-Government Voluntary Organization with the NGO Affairs Bureau (No. 1043, dated 27.05.1996) of Bangladesh. What is BDPCs Mission, Goals and Objectives BDPC's mission is to reduce the risks of people vulnerable to disasters and enable them to establish their rights to access public resources and other entitlements. BDPC's ultimate goal is disaster risk reduction of the poor and vulnerable communities though operating, facilitating, promoting and advocating for a nation better prepared for disasters. BDPC's objectives are Raising awareness on the need of pre-disaster preparedness of the poor and vulnerable for risk reduction Capacity development of beneficiaries and key actors through training, motivation, coordination and information sharing for effective disaster mitigation program Integration of disaster management components into development programs Initiating programs to provide support for improvement of quality of life of the poor though various sustainable development projects What are BDPC's Approaches BDPC emphasizes the following approaches to address disaster management issues at different levels: Promoting good governance in disaster management, through improved coordination and transparency across concerned agencies, local government and affected communities, accountability towards objective and targets, and responsibility sharing, during normal and emergency periods. Changing the mindset of policy makers at the national level from post-disaster response to predisaster investment. Emphasis is given on integration of components of risk management into development planning; Orientating the practitioners (both government and non-government structures) and developing the capacities at the field level for integration of components of risk and emergency response management into their normal development and disaster management programmes; and Enhancing the capacity of the poor to live with disasters through creating a sense of confidence and pride within them at utilizing own resources and other development assistance effectively. Emphasizing women and children's needs and concerns with regard to disaster preparedness at household and community level. Empowering the communities through promoting Change Agents (community leaders) as the key community facilitators ACHIEVEMENTS
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Capacity Development: BDPC has designed and organized over 500 training courses, workshops, discussions and knowledge sharing events, to address the capacity development needs of the government agencies from national to field level and more importantly for the communities and households most vulnerable to natural disasters. Advocacy and Lobbying: BDPC takes lead in advocacy and lobbying for all actors and institutions to address disaster risk reduction as a threat and challenge to the pursuit and achievement of sustainable development goals for Bangladesh, particularly in relevance to the poverty reduction goals and strategies, and to overcome these uncertainties through a concerted and well-coordinated long-term enabling processes. BDPC has been contributing to the process of integrating disaster risk reduction into the Bangladesh Poverty Reduction Strategy Paper, and has assisted the concerned authorities to uptake significant concerns into the final PRSP. Strategy Formulation and Planning: BDPC provides impetus to government, development partners and non-government agencies in recognizing the need to integrate disaster risk reduction into development policies, programmes and projects. Awareness, Knowledge, and Communication: BDPC has engaged in the process of providing essential support for conceptualizing risks associated with disaster, to manage disasters through prevention, preparedness, and mitigation. In this respect, BDPC has developed and disseminated a number of Information Education and Communication (IEC) materials that contribute greatly to awareness development. Networking: BDPC has long-standing relationship with actors and agencies of both government and nongovernment organizations from community to national and the international level. BDPC has functional collaborative partnership with relevant government ministries, departments, UN agencies, national, regional and international NGOs. Accomplished Projects Project Title Promotion of Rights of the Low Income Group People for Sustainable Livelihood through Postdisaster Rehabilitation Support Program for Hydro-Metrological Disaster Mitigation in Secondary Cities in Asia (PROMISE) Mainstreaming disability issues in disaster management policies and practices Community Based Flood Information System (CFIS) Community based Earthquake Preparedness UN Organizations Study for "Strengthening Flood Warning And Preparedness Systems both at National and Local Levels" Empowerment of Coastal Fishing Communities in Disaster Preparedness Development of 3 training modules on Disaster Management Upazila Disaster Management Committee Name of the Client USAID ADPC Handicap International RTi Oxfam-GB UNDP FAO Dates 20052007 20052007 20052007 20022007 20062007 19992000 Level Family and Community City Level Local, Family & Community Local, Family & Community Family and Community National Local Regional Local, Family & Community
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and

20032004 DMB (with 2000 Unicef funding)

Union Disaster Management Committee Grass root level implementers Training for promotion of Public Awareness and Community Action Plans for members of local government and local community in cyclone prone area Study on Indigenous Coping Mechanisms of People Against Cyclone and production of proposal titled Family and Community Level Disaster Preparedness Through Outreach Public Awareness Programme. Government Departments Need Assessment for the Disaster Risk Reduction through Long-term Livelihood Development Pilot project Implementation of Disaster Risk Reduction through Long-term Livelihood Development Pilot project at Lalmonirhat District Conducted two massive programmes for screening of tubewells contaminated by arsenic. People-Oriented Procedure Flood Warning Dissemination

DMB (With 1995-96 Unicef funding) Unicef 1995

Local, Family & Community Family and Community

Planning and implementing the Disaster Response Plan for Meghna Dhonagoda Irrigation Project (MDIP) & Pabna Irrigation and Rural Development Project (PIRDP) Study on Cyclone Proofing in the cyclone-prone areas of Bangladesh. Preliminary Research on Peoples Knowledge, Belief and Misconception About Natural Disasters. Donors and International NGOs

Ministry of Food and Disaster Management Ministry of Food and Disaster Management Department of Public health and engineering (DPHE) Flood Forecasting and Warning CentreWDB Bangladesh Water Development Board Disaster Management Bureau Disaster Management Bureau

2003 2004 2001

National Union Upazila, Union and Household Upazilla, Union and Household Upazilla, Union and Household National National

20012002 2003

2001

2000

Department For Development of a training manual - Handbook on International Family and Community Level Disaster Department Preparedness for flood and cyclone-prone areas. (DFID) Department For International Hand book on First Aid in Disaster Emergencies Department (DFID) Massive Public Awareness Programme for developing the capacity of all the people in the floodEuropean Union prone Upazila of Chowhali under the District of through an Italian Sirajganj for promoting the concept of integration of NGO (APS) disaster preparedness into normal day to day life of common people. Participatory Vulnerability Appraisal (PVA) for OXFAM

2003

Family and Community

1995

National

2000-1

Family and Community Community

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2004

Community based Disaster Risk Management Project (CDRMP) Study on Problems of Co-ordination in Disaster Relief Operations in Bangladesh Promotion of Family and Community Level Flood Preparedness through public awareness program. Impact evaluation of Oxfams disaster preparedness programmes on the enhancement of capacities of the people to face disasters. TOT on Disaster Management, First Aid and Orientation to Community based Organisations of OXFAM-GB program partners Disaster Management Training and Training of Trainers for NGO workers in cyclone and food-prone areas. The emphasis of the courses was on public awareness, response planning and integration of disaster management components into development programmes. Disaster Management Handbook for Bangladesh in four volumes, both in English and Bengali Disaster Management Training (flood and cyclone) to local level NGOs Study for formulation of the strategy of Public Awareness Component for Flood Proofing Pilot Project National NGOs

OXFAM

2003

National Family and Community Organisation Organisation

European Union 2001-2 through (APS) OXFAM OXFAM 2002 2001

USAID through 1995-96 (PACT/PRIP) USAID through 1993 PACT/PRIP. OXFAM CARE 1992-93 1997

Organisation

National Organization Organization

Lutheran World Appraisal of disaster management programmes of Federation in 1996 RDRS Bangladesh. Local NGOs 1992 Training on disaster management, first aid, TOT, etc. over 300 NGOs date Research Organization Baseline Survey for implementation of Community CEGIS, 2003-4 based Flood Information Systems (CFIS) RTi, USA

Regional - Organization and community Organisation

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Bangladesh Manobadhikar Sangbadik Forum (BMSF)

Bangladesh Manobadhikar Sangbadik Forum, in short BMSF, was formed in January 10, 1991 with the objective to mobilize the journalists, those working in the national and local print as well as electronic media to facilitate their participation in the national development program activities. Vision: An environment, free of Human Rights Violation against Men, Women and Child, that ensures Drugs and HIV/AIDS free society and strengthens the democratic institutions and good governance in Bangladesh. Mission: BMSF works to contribute its share in the national development. The organization mobilizes the journalists community in Bangladesh to undertake various development projects and programs that are related to environment, human rights and good governance, press freedom, HIV/AIDS and development of democratic institutions in Bangladesh with support and in collaboration with the Government, Donors, NGOs and members of the Civil Society. Goal: Protect & promote human rights, women rights, child rights, good governance & press freedom issues, prevention on HIV/AIDS through media networking & advocacy. Present Activities: 1. Project Name: HIV Prevention and Control among High-Risk Populations and Vulnerable Young People in Bangladesh Package Number and Title: Provisional of Essential Services to Street Based & Hotel/Residence based Female Sex-workers (GF-909) Objective of Project: To rapidly scale up HIV essential services to Street-Based and Hotel/Residencebased Female Sex Workers (SB & H/RB FSW) Populations at higher risk and vulnerability. Assignments: 1. Mapping of current services delivery gaps to SB & H/RB FSW at national and local levels 2. Development of BCC materials on essential services for SB & H/RB FSW 3. Training activities for master trainers, peer educators, outreach supervisors and DIC In-Charge 4. Establish and operate DIC in assigned districts 5. Provision of supplementary income generation services for street and hotel/resident based female sex workers 6. Creating an enabling environment within local communities through advocacy meetings and distribution of print materials Donor: 1. Global Fund for AIDS, TB and Malaria (GFATM), Geneva, Switzerland 2. National AIDS/STD Program (NASP), Ministry of Health & Family Welfare, Bangladesh Government of

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3. Save the Children Fund, USA, Bangladesh Country Office Working areas: Dhaka, Khulna and Chittagong divisional 25 districts A. HIV/AIDS Prevention Program 1. HIV/AIDS Awareness Raising via Media Program: The program activities that include: :: :: Training/workshop for the journalists community on HIV/AIDS reporting Exchanging information on HIV/AIDS/STD through material/ media kits collection and dissemination Reporting on partner agencies' activities & other GO. NGO working for HIV/AIDS/STD Networking members & resource Journalists data base Press conference/briefing and meetings Publishing of Newsletter/ Articles/ Photo Feature and Telecast of TV spots on HIV/AIDS Co-ordination & Networking with NGOs, CBOs, and Networks at national and regional level Establish HIV/AIDS Information resource centre

:: :: :: :: ::

::

2. Media advocacy on HIV/AIDS & Human rights. Major activities of this Program include: :: :: Capacity building training/workshop for the journalists community Exchanging information on HIV/AIDS/STD, PLWA and Marginalized Community through material/ media kits collection and dissemination Report preparation on Human Rights violation of PLWA and Marginalized population

:: B.

Press Freedom in Bangladesh: BMSF is currently implementing a Program titled as Press Freedom in Bangladesh :: Exchange Information on Press Freedom in Bangladesh through ICT

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:: Reporting on Human Rights Fact Finding for the Journalists Issues :: Provide Legal Aid Support for Victim Journalists in Bangladesh with the co-operation Bangladesh Bar Council :: Urgent appeal/action :: Media advocacy :: Co-ordination & Networking with NGOs, CBOs, and Networks at national and regional/International level on Press Freedom Issues C. Child Rights program 1. Information campaign against child trafficking Program: Major activities of this project include: :: :: :: :: :: :: :: Journalists training on Child Rights Convention (CRC) Organize local level advocacy workshop Monitoring Information Campaign Case Study and facts-finding Networking Newsletter and IEC

2. Media Program on Worst Forms of Child Labour BMSF is currently implementing a Program titled as Media Program on Worst Forms of Child Labour" :: :: :: :: Orientated journalists Community Information Campaign on the issues Reporting/Feature Writing/Case Study/Photo Feature on the Issues Co-ordination & Networking with NGOs, CBOs, GOB and Networks at national and
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regional level D. Human Rights program Major activity: :: Journalists training/workshop on Human Rights facts-finding reporting :: Conduct Human Rights facts-finding :: Media advocacy on Human Rights E. Media advocacy on Good Governance Major activity: :: Media monitoring on governance issues :: Media campaign :: Organize journalists training/workshop on Good Governance reporting Activities Background: Since its formation, BMSF has been carrying out various activities in accordance with its objectives and policy guidelines. Among these followings are the major activities completed by the organization during the past years. >> A survey on Repressive Law 1994 >> A Study on Child Trafficking in Bangladesh - 1996 >> A Study on Violence against Women- 1997 >> Media Campaign on the rights of Sex Workers-1999 to 2004 >> Long-term National Parliament Election Monitoring 2001 BMSF has already undertaken a program to mobilize the HIV/AIDS oriented journalists to strengthening and accelerating the social movement to project and protect human rights issues of People Living With HIV/AIDS (PLWHA) and their effective involvement at various level in response to HIV/AIDS in Bangladesh. The organization intends to initiate Legal and Media Aid for helping the victims of human rights violation and specially the Journalists Community, the organization enhanced its experience and capacity in respect of media advocacy in the areas of HIV/AIDS by taking part in the following workshops:
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>> Strategic Planning Workshop on HIV/AIDS and Media, organised by BMSF & supported by CCDB in 2002. >> Two Media Advocacy on HIV/AIDS organised by BMSF & supported by VHSS and HASAB, respectively in 1997 >> Alternative Dhaka Declaration for UNGAS organised by BMSF & supported by HASAB in 2001 >> BMSF acted as Media Focal Point of the National STD/AIDS Network, Bangladesh during 1996-2000 Activities: A. HIV/AIDS Awareness Raising via Media Program: The program activities that include: >> Training/workshop for 200 journalists through 10 batches at 6 divisional areas. >> Exchanging information on HIV/AIDS/STD through material/ media kits collection and dissemination. >> Reporting on partner agencies' activities & other GO. NGO working for HIV/AIDS/STD. >> Networking members & resource Journalists data base >> Press conference/briefing and meetings >> Publishing of Newsletter/ Articles/ Photo Feature and Telecast of TV spots on HIV/AIDS >> Co-ordination & Networking with NGOs, CBOs, and Networks at national and regional level B. Media advocacy on HIV/AIDS & Human rights: Major activities of this Program include: >> Capacity builds up training/workshop for 400 journalists through 10 batches at 6 divisional areas. >> Exchanging information on HIV/AIDS/STD, PLWA and Marginalized Community through material/ media kits collection and dissemination >> Report preparation on Human Rights violation of Marginalized population >> Co-ordination & Networking with NGOs, CBOs, and Networks at national and regional level C. Information campaign against child trafficking Program: Major activities of this project includes>> Organize local level advocacy workshop >> Monitoring

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>> Information Campaign >> Case Study, >> Newsletter, and IEC. D. Press Freedom in Bangladesh: BMSF is currently implementing a Program titled as Press Freedom in Bangladesh" >> Exchange Information on Press Freedom in Bangladesh through ICT >> Reporting on Human Rights Fact Finding for the Journalists Issues >> Provide Legal Aid Support for Victim Journalists in Bangladesh with the co-operation Bangladesh Bar Council >> Co-ordination & Networking with NGOs, CBOs, and Networks at national and regional/International level on Press Freedom Issues E. Media Program on Worst Forms of Child Labour BMSF is currently implementing a Program titled as Media Program on Worst Forms of Child Labour" Supported by Advocacy & Awareness Unit, ILO-IPEC, Bangladesh. Major activities are: >> Orientated journalists Community. >> Information Campaign on the issues. >> Reporting/Feature Writing/Case Study/Photo Feature on the Issues. >> Co-ordination & Networking with NGOs, CBOs, GOB and Networks at national and regional level. Outcome: The HIV/AIDS Awareness raising programs via Media has already produced some encouraging results. Several reports in the central and divisional newspapers and periodicals have been published highlighting the positive aspects of the AIDS situation in the country. Since the beginning of the Training and Refreshers program no report has been published causing violation to the rights of the infected and affected people. Journalists started writing on the NGOs highlighting their activity on HIV/AIDS and the resulting impact among the vulnerable populations and their high-risk behaviours. Gradually BMSF has been developed as an Information Resource Centre for the Journalist community as they now seek information from BMSF for writing reports/features and articles on HIV/AIDS. District based journalists now send their write ups on HIV/AIDS to BMSF for editing and publishing in the national dailies/weeklies. On the other hand, 6 journalists at six divisions are involved with BMSF as Divisional Co-ordinators and 64 journalists in 64 districts of Bangladesh are now working as Focal Point. BMSF provided Legal Aid support for the journalists community with the co-operation Bangladesh Bar Council.
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Future Plan Creation of a conducive environment for the HIV/AIDS infected and affected people through Media campaign. Advocacy with law makers for enactment of appropriate law to protect the rights of the people living with HIV/AIDS (PLWHA). Promoting Co-operation among the media networks working in the field of HIV/AIDS in the South Asia region. Continuation of the HIV/AIDS Awareness Raising via Media program for the Journalists community. Promoting human rights and good governance issues through Media Advocacy. Prevent Women and Child Trafficking through social vigilance team approach. Insure Legal, Ethical and Human Rights support for the journalists community. Members of Networking Members of Networking/Co-ordination body: International Network: Asia Pacific Human Rights Network (APHRN) Asia Pacific Media Network against AIDS(APMA) Amnesty International International Campaign Against Child Trafficking (ICACT) South Asian Regional Forum of NGOs on HIV/AIDS, Media & Human Rights South Asia Media Solidarity Network's (SAMSN) National Level Network: Co-ordination Council for Human Rights in Bangladesh (CCHRB) Bangladesh Shishu Adhikar Forum (BSAF) Coalition for the Urban Poor (CUP) National STD/AIDS Network, Bangladesh Shonghoty

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TMSS
Introductory Discussion: Micro-credit refers to programs that are poverty focused and provide services to very poor persons for generation of self-employment and income. Credit is a powerful instrument to fight against poverty. The role of micro-credit in reducing poverty is now well recognized all over the world. It obtained a new identity, a new meaning and a place in development literature. It is no mere a concept and now it is a worldwide movement. But there is an ongoing debate whether credit alone or credit plus is needed for poverty reduction. There are views that credit alone on its own is inadequate to fight against poverty. The need for other services is also important in this respect. Most of the practitioners believe that credit plays a vital role as an instrument of intervention for a poor person to discover her potential and to stride for better living. Now, it is considered that credit is a human right. It empowers to break the vicious cycle of poverty by instantaneously creating self-employment and generating income. Micro-credit is itself a very powerful tool. But if it is combined with others, it is definitely more empowering. It is known that poor people live in a high risk and vulnerable conditions. Their ability to take advantage of opportunities that will lead to increasing their income or economic status, to protect themselves against risks of crises through promoting coping mechanisms. Various studies provide a strong indication that Micro-credit do help the poor especially women for enhancing their livelihoods. Credit creates opportunities for self-employment rather than waiting for employment to be created. It liberates both poor and women from the clutches of poverty. It brings the poor into income stream. Given the access to credit under an appropriate institutional structure and arrangement, one can do whatever one does best and earn money for survival. Through credit, one can overcome poverty; one can become the architect of ones destiny and the agent of change not only for ones family but also for the society. Thus, micro-credit is an innovation that helps poor to switch from vicious circle to Virtuous circle. Empowerment of women through economic and financial emancipation is one of the main activities of TMSS. It has been implementing several programs/projects through which TMSS is providing financial supports to reduce their poverty. Major financial support services are, Credit Program, LEAD Program, Savings Program, Insurance/Member Benevolent Fund, Grant Allocation, Award Giving, NGO Financing, etc. Goal of microfinance program: The prime goal of TMSSs microfinance program is to empower poor women by creating, expanding, strengthening & upgrading their abilities and by ensuring their direct involvement in income-generating activities through demand-driven, multi-dimensional & integrated financial services. Objectives of microfinance program: To empower the poor/ultra poor women through direct involvement. To alleviate or reduce poverty in Bangladesh. To build leadership among poor women. To create employment through formation of enterprises. To create a positive environment that encourages savings among members.
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 To increase empowerment and social status of women. To enhance individual business competency of entrepreneurs. To ensure gender equity and equality in everywhere; To help clients address common issues and problems. To increase the incomes of poor women. To develop TMSS as a sustainable organization that contributes to economic development. Target groups: Ultra poor women, ranging in age between 15 and 50, are without houses and assets and maintain themselves by begging. Poor women own less than 0.5 decimal of land and daily earn less than TK 65. Poor Disabled women and children who are mentally, physically and socially disabled or handicapped Vulnerable groups are those with low incomes and less awareness that can fall victim to different diseases and natural disasters. Monga victims are poor women who are agriculture based labor and face seasonal unemployment due to scarcity of work. Small, Micro and agro Entrepreneurs are women who have crossed the poverty line and have the potential to operate micro enterprises & to expand existing business including agricultural production, input supply, marketing, processing. They also increase the value added to activities of nontraditional agricultural commodities and generating employment and income for the rural and urban poor. Sister organizations have been established with assistance from TMSS and are run by independent management Collaborating NGOs are interested in working with TMSS in development activities. Major product of microfinance: Savings product: General savings, Special savings etc. Safety-net product: Livelihood restoration program (LRP), Risk coverage fund, Special assistance for housing of SIDR affected borrower (SAHOS), Rehabilitation of SIDR affected coastal fisheries, small business and livestock enterprise (RESCUE), Rehabilitation of Non-Motorized Transport Puller and Poor Owners (RNPPO) etc. Micro credit product: Rural micro credit (RMC), Urban Micro Credit (UMC), Microfinance for Marginal and Small Farmers (MFMSF), Seasonal Loan (SL), Flexible credit for ultra poor etc. Micro enterprise product: Entrepreneurship development loan, Agribusiness development loan etc. Employment generation product: Participator Livestock Development Project (PLDP), Fisheries development project, Handicrafts development project etc.
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 Financial entitlements product: Health voucher scheme for ultra poor, Life oriented non-formal education facility for the poor and their family etc. Non-financial services: Occupational skill development training for the poor/ultra poor member/target group etc. Program implementation strategy: All services provided through branch offices Focus on ultra poor women and group formation through social mobilization. Linking clients with local facilities and opportunities. Make initial loans small. Match loan size and loan cycle to individuals economic circumstances. One health assistant in each branch and one doctor for every five branch offices. Meet client needs, not just those of TMSS. Let clients do the work. Couple social development support with microfinance to minimize client frustration. Involve community-based and partner organizations. Ensure active participation of all stakeholders. Quality control at every step of the program. Cost effective and timely delivery. Capacity development of target group and local management.

Service delivery steps of Microfinance: Conduct survey to select the potential locations for microfinance programs. Conduct focus group discussion with the targeted people. Select group members using different tools and techniques. Form main group and six subgroups for education, health, discipline, etc., with leaders for each. Make members aware of the rules, regulations and others issues through training at group level Collect savings from members. Identify individual IGAs for selection by members. Prepare members loan proposal in group meetings. Test viability of proposal and secure approval by the authority. Disburse loan to the member from the office in cash. Counsel borrower at their enterprise.
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Recover weekly installments from the members in group meetings. Monitor and follow-up activities.

Service delivery pattern: Every service is delivered from the branch office. The operational structure of the microfinance program is Head Office to regional office to zonal office to area office to branch office to group. TMSS Profile i) TMSS Background TMSS, established in 1964, as local organization in Thengamara village, is now acclaimed as a sustainable institution. In 1980, Prof. Dr. Hosne-Ara Begum, Executive Director of TMSS is inspired by zeal of social welfare, overcoming a critical juncture of her life, had assumed the responsibility and transformed it as an organization devoted towards fighting back poverty. She started her mission of social development together with a group of beggars, who approached to her with accumulated handful of rice as initial capital. TMSS is now a national organization, working in 63 districts and has been providing support to 28,40,774 families (Development Service 10,60,854 and Micro-finance Service 17,79,920) under various programs and projects. The major projects of TMSS include rural and urban micro credit, education, health, fisheries and livestock, human rights and gender, environment & forestry, social development, agriculture, disaster management, social business enterprise, etc. TMSS, over the decades, has diversified its programs and sought to attain sustainability. The organization has developed institutions in health and education sectors in order to achieve social development goal. TMSS considers poverty alleviation and women empowerment as the major building block of its programmatic intervention. In 2000, TMSS launched Micro Enterprise (ME) program with the assistance of PKSF with a view to creating employment through enterprise development in rural and urban areas. Up to June 2008, 5,345 women have been provided with micro-enterprise loan under various projects components such as Agriculture, Fisheries, Mini factory, Trade, Incubator, Dairy, Making Ghee and Chana, Poultry Feed, Mini Garments, Mushroom Cultivation, Beauty Parlor, Handicrafts, Nursery, Sanitation, Poultry, etc. The micro-credit approach of TMSS builds upon HEM model (Health, Education & Micro-finance). Since 1986 to until now, micro-credit has covered 17,79,920 families. The programs of TMSS have particular focus on women and trafficking, nutrition, fortification, reaching out droop out children, eradication of hazardous labor, improvement of adolescents, technology demonstration, renewable energy, clean fuel etc. Since its begging, agriculture and environment came into forefront of TMSS intervention. Agro forestry, crop diversification, plantation, seed promotion and a host of activities being implemented by TMSS contributing directly towards higher productivity, food security and enhance utilization of local resources. The organization has set-up a hospital and is running 65 health centres in order to provide health service to poor peoples. Now it has been working with food-insecure people (Monga Affected) of Northern part of the country. TMSS is governed by Executive Committee (EC) and guided by a set of operational guidelines and proclaimed policies. Strength of management lies in participatory, democratic, interactive approach towards carrying out its regular functional activities. As recognition to contribution of TMSS, has received 51awards and recognition of government have been source of inspiration for workers and beneficiaries to solidify and strengthen the pace of development. Notably, in 1988 TMSS, was awarded with Presidential Award for Successful Organizer on Development and in 2007 Begum Rokeya Padak-'07 was given to Executive Director of the organization.
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(ii) Philosophy and Approach Endeavors of TMSS are built upon the understanding of the current development phenomenon and the unique process of internalization of the development needs of the people. Since its inception, the organization has remained consistent and focused on its mottofamily is the center of the development. Over the years the organization has widened its horizon both in terms of program, ability in development management and strength of implementing nationwide programs. The strength of TMSS builds on HEM (Health, Education and Microfinance) Model. TMSS emphasizes unique development needs of the population across regions and underlines active participation of beneficiaries in its development mission as the fundamental building block. Nevertheless, environment, land development, poverty alleviation and augmentation of resources, adopting a specific programmatic approach, implementing a variety of programs in agriculture, fisheries, poultry, livestock, etc. creates condition for the beneficiaries to come out of income, poverty and provide them the means to fight against discrimination & exploitation. TMSS believes that an important component of sustainable development is ensuring gender equity and providing the means of economic empowerment. It has been working relentlessly to promote the social rights and economic well being of women. (iii) Integrated Identity TMSS was founded by poor women and till today governed by women. It is client oriented. It always focuses on the needs of its members, both financial and social, by mobilizing local resources and institutional development. TMSS believes that the family is the center of all development. Womens empowerment is its primary concern. It has been organizing poor rural women in groups within its operational areas to bring them into the development mainstream through exercising microfinance plus model. So, it strives to promote their self-reliance through implementing innovative programs. (iv) Vision Happy & prosperous women and their family in the society. (v) Mission: TMSS provides its best efforts in bringing the poor womenfolks life/living conditions at a dignified level in the family and society through their capacity building, adaptability, responsiveness, optimum use of their own/available resource, participation in development activities, good governance, fulfillment of their legitimate rights and management of their sustainability. (vi) Goal: Family development through women empowerment. (vii) Objectives: Prime objective of TMSS is to develop the socio-economic status & condition of the poor women/ultra poor women & their family members through implementation of grassroots decision and utilizing local human & material resources. (viii) Specific Objectives: Organization building with the targeted beneficiaries Raising awareness and human resource development Eradicating illiteracy through education & training Providing Skill development and employment generation Supporting beneficiaries for local fund development Channeling credit facilities to poor women. Providing technical and financial support for income generating activities Eliminating gender disparity Improving health status of children & women
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Facilitating the process of identification & enhancement of utilization of local resources Ensuring sustainable process for integrated development of agriculture, forestry, livestock, environment, and sanitation. Increasing GO, NGO Co-ordination and cooperation Accelerating disaster management & rehabilitation Conducting social / action Research Capacity building of local partner Promoting participatory planning for beneficiaries Ensuring good governance.

(ix) Slogan of TMSS : Let family be the focal point of women development (x) Values of TMSS : 1. Respect to women in all activities 3. Gender equality 5. Faith on human resource. 7. Self-reliance / Sustainability 9. Honesty and Justice 11. Peace and prosperity 13. Transparency every where (xi) Legal Authority: TMSS is a formal service provider registered by the different government departments/directorates and Joint stock companies to carry out socioeconomic development activities for its beneficiaries. Also it has been certified and regulated by the Micro Credit Regulatory Authority (MRA) of the Bangladesh Government. Social Welfare, Regn. 1494, dated 10.11.1964. Women Affairs Department, Regn. 717/80/885 (106), Dated 8. 9. 1980. Health and Family Planning Directorate, Regn.-5, Dated 16.10.1985. External Resource Division/NGO Affairs Bureau, Regn. DSS/FDO/R-241, Dated 05. 10. 1987. Joint Stock Companies, Regn. S-2991 (134) 99, Dated-28/12/1999. Department of Narcotics Control, Regn. DNC 0036, Dated 01/01/2005. 2. Accountability 4. Reciprocal respect and cooperation 6. Innovation & creativity 8. Unity & harmony 10. Ecological balanced environment 12. Practices of democracy 14. Secularism

(xii) Our commitment: Client satisfaction and loyalty to customers.

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Demand-driven, high-quality, timely & effective services delivery. Quality ensured at every step of the activities. Local resource mobilization by the beneficiaries. Transparency and accountability in all activities.

Building a peoples organization that, through volunteerism, creates familiar and congenial working environments. Gender equity and equality throughout the organization & priority given to women staff. Death benefit to the group members. Reflection of organizational values in every step of the activities. Program operated by knowledgeable, experienced & highly qualified professionals.

D. Progressive Members/Small & Medium Entrepreneur: i) Who have been associated with development process for a considerable period and have improved their investment capacity for job creation and graduate member from micro-credit. ii) Who have investment ability but unable to receive loan from bank and /Small & Medium Entrepreneur . They create working opportunities for the Hard Core Poor. E. Other Community People TMSS has been working to bring about the positive change to the ill fate of the helpless poor, hard core poor, marginalized farmer, beggars, sex-workers through education, providing need based life skill training, raising awareness in health and sanitation, environment and motivation for para-agriculture etc. As a result, the socio-economic condition of the community people improves, friendly environment prevails in the society and thus the community people other than the TMSS -beneficiaries are benefited need base / to a great extent. TMSS also implement some Project by community-approach. F. Sister Organization TMSS organized a good number of sister organizations operated by independent management for achieving the goal and objectives in favor of TMSS. G. Collaborating NGOs TMSS has got as many as collaborating NGOs. At the time of crying need all the collaborating NGOs work jointly to tackle the situation. TMSS provides fund and technical assistance for their capacity building & to remove misery of the people at threat. (xiv) Governance TMSS is governed by its registered Constitutions, framed out Policies, Rules & Regulations, Decisions of AGM and Peoples Republic of Bangladesh's Voluntary Social Welfare Agencies (Registration & Control) Ordinance of 1961 and Foreign Donation (Voluntary Activities) Regulation Ordinance of 1961. Apart
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from these a 15 member Executive Committee (elected every after 3 years by direct voting of General Body Members & Regular Subscribing Members) ensures the proper governance of TMSS on behalf of the entire women members. The General Body Members are the Chairpersons of the Village Organizations of TMSS. (xviii) Network Coverage TMSS Network membership across 63 districts of Bangladesh. (xvi) Human Resource Pool TMSS maintains a resource pool of professionals who are experienced on microfinance practitioners, researchers, bankers and development policy makers. TMSS utilizes their expertise in developing capacity in the various sectors and also for carrying out consulting assignments in home and abroad. (xvii) Strength Federal Management System Skilled and Dedicated Staff Well-equipped Training Centre Sufficient Vehicles Local and Domestic Regular Contribution

Effective constitution, desirable service rules, manuals and AIS, MIS, FIS proper record & documentation Transparency & Accountability Strong Networking and Collaboration System Land (more than 500 acres) Regular Information of Staff & non-staffs Team work

(xviii) Exceptionality and Specialty Open style participatory bottom-up management Organization initiated by beggar women (Ultra hardcore poor) Participation of group members in the Executive Committee Integration of TMSS at a grater extent and degree Maximum assistance from the social people Women empowerment through credit program with synergetic effect of other activities Entertain collaboration and partnership
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 Accountability & Transparency are strictly maintained at all levels of the management and financial operation Microfinance program at a glance (Up to June2008) Program coverage: Number of Divisions Number of Districts Number of Upazillas Number of Unions Number of Villages : 06 : 43 :265 : 2,678 : 17,491

Program Infrastructure: Branch offices Area offices Zonal offices Regional offices Foundation office Head office : 01 : 482 : 90 : 21 : 07 : 01

Personnel: Permanent staffs : 4,547

Port-folio quality: Number of groups : 45,648 : 6,98474

Number of present members

Number of members per group : 15 Number of groups per field worker : 14

Number of member per field worker: 285 Number of present borrowers Savings outstanding Loan outstanding : 5,63,396 : TK. 108,35,78,632 : TK. 292,79,20,273

Loan outstanding per field worker : TK. 11,30,623

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Cumulative rate of recovery On the time realization Port folio at risk Delinquency ratio Return on performing assets Financial cost ratio : 23% : 4%

: 99.69% : 98.72% : 4.15% : 2.37%

Financial self-sufficiency ratio : 97% Operating cost ratio : 18%

Operating self-sufficiency ratio : 107% Cost per unit of money lent Cost per borrower Loan-loss provision ratio Member and borrower ratio : 81% : 38% : TK 0.11 : TK 1278 : 03%

Savings and loan outstanding ratio Reserve ratio

: 3.14%

Features of Loans There are some features of loan regarding loan range, interest rate, repayment mechanism and loan products. The loan ranges from 2,000 to 29,000/= with a flat interest arte of 12.50%. Equal weekly installment is the repayment mechanism. General loan, sectoral loan and micro-enterprise development program loan are the major loan products. It is noted that general loan can be taken for employment and income generating activities, while sectoral program loan can be taken for micro-enterprise development like poultry, livestock, agriculture and small business and trade. Types of Loan: Sanitary Loan: This loan is for the protection from communicable disease, health risk and poor health and environmental pollution. The provision of good sanitation facility plays a vital role in improving hygiene status at the community level, thus increasing the productivity and well being of the society. TMSS provides loan to the entrepreneurs for establishing production centers of sanitary materials (Ring-slave & others). TMSS also provide loan to the poor people for individual & group sanitary latrine. Livestock Loan: To facilitate for the poor especially hard core we provide as lease cow, goat, and sheep. Fish Cultivation Loan: For poverty alleviation TMSS has given enough Micro-credit to beneficiaries for Fish Cultivation. Crop Loan:
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Rural people of Bangladesh are depends on agriculture. For helping and encouraging the poor people in cultivation, TMSS provides crop loan. Housing Loan: To create a livelihood and working environment in the poor people TMSS provide housing loan. Investment Loan (Pond & Firm): TMSS try to utilize maximum local resources. For this, we take so many initiatives. We also invest a big amount as a loan for create work environment and local poor people can engage themselves like pond and fish-culture, farming, etc. Education Loan: For the betterment of children of poor people (beneficiaries) and staff, TMSS provide education loan. According to our experience, beneficiaries of TMSS are able to increase their livelihood and try to educate their children. Therefore, they need sound arrangement for their childrens education. Consumer Loan: TMSS try to support all beneficiaries & staff for purchasing their family consumable goods. Therefore, we provide a soft loan to them for their livelihood. Products PRODUCT/UTPADON-TMSS (An enterprise for Handicrafts development & promotion): Since 1984, UTPADON has been engaged in working with poor women. These women are mostly female headed household and dependent on their work on the production of handicrafts, in order to support themselves and their families. This program has been conducted through the Income Generating Activities (IGA). UTPADON is one of the wings of IGA. Over the last 20 years, UTPADON has created employment for about 12550 disadvantaged women of 47 villages of 09 upazilas of 03 districts. Major Objective & Goal: To improve socio-economic condition of poor and ultra poor women; To make the disadvantaged women self-reliant; To produce quality handicraft and cotton product and marketing these at a reasonable price; To contribute to earn foreign currency through exporting handicraft and cotton product;

To provide training to the poor and ultra poor women in skill development, management of Income Generating Activities (IGAs), financial record keeping, and marketing of produced goods that will help them to be financially self-reliant; To contribute to increase TMSSs image by establishing UTPADON as a model of small and cottage industry UTPADON-TMSS & Job Creation:

Unemployed poor women within TMSS operating areas and are engaged with home-textile, handicrafts, various cottage products under this program. Appropriate technology and using the local-resources are the main thrust of this program. Present coverage of this program is about 1000 thousand families.

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Product-Development Research: UTPADON continuously carryout research activities for innovating need-based and local resource based production such as Gents and Ladies wears, Bed sheet, Bed Cover, Nakshi Kantha, Pilo Cover, etc. It develops uncommon design and maintains quality of products. It ensures marketing facilities for maximizing sale of the products.
Training: UTPADON arranges various training programs for skill development of its Employees involved with Income Generating Activities. It has well equipped training venues, training professionals and hostel having modern facilities and amenities. Order Procurement: UTPADON puts emphasizes on promotion of marketing of its products. Orders for supplying products are collected from different organizations, shops, established farms etc. Range of production depends on the demand of market. Linkage & Marketing Services: UTPADON works for channeling the business activities of groups or individuals and out-standing organizations to carry out the activity successfully and satisfactorily. TMSS is engaged in demand-driven products expansion and marketing network through 13 Business Entrepreneurs in Rajshahi, Dhaka, Chittagong and Sylhet. Usually, TMSS adopts local techniques for production. It also used to take external expertise (JICA) to improve the quality of the products as and when necessary. Promotion of National Heritage and Culture through Handicrafts: Promotion and up-gradation of National heritage through production is the motto of UTPADON-TMSS. The organization always takes initiatives to preserve & promote National Heritage and Culture through indigenous design and crafts. Besides, TMSS took part in different National and International Handicraft Fairs to promote the indigenous traditional products of TMSS. It has become a member of ECOTA Forum since 1998, Bogra Chamber of Commerce since1997. Employment Creation: Employment Creation is one of the prime purposes of UTPADON. It trains-up beneficiaries as per market demand for creating employment. It has been employed a total of about 1500 unemployed rural poor through various income generating activities. Handicrafts with Weeds: UTPADON has been carrying out Handicraft program with 500 poor women in 07 Villages of Gokul Union under Bogra Sadar Thana since 1997.The aim of this program is to use the redundant goods such as palm-fiber, weeds, water-hysiene, katkin grass, cripertree, orchid etc. to produce Cap, dining-essentials, mats, tiny-baskets. Product description: Rural Micro Credit (RMC): Rural Micro Credit (RMC) is one of the major interventions of TMSS. The RMC program, launched by TMSS in 1985, is used to provide support to rural poor people. Palli Karma Shahayak Foundation (PKSF) is the major sources of fund of this program. The main objective is to involve poor women in rural areas in the income-generating activities through collateral free loans. Loan size ranges between Tk.2, 000 to Tk.29, 000. There are two types of borrowers like male and female and all members participate in a compulsory interest-bearing savings program and optional savings programs are available. Loan installments in equal amounts are due weekly. Loans are made for a maximum of one year and repayment is in cash at the group meetings. Service charge is 12.5% using flat method. Death benefits are available for clients as well as guardians. As on June 2008, loan outstanding is TK. 997.18 Million among the 1, 98,335 borrowers. The members must be women who are poor and willing to operate IGAs that are socially acceptable and profitable. Urban Micro Credit (UMC):
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A significant number of people migrate every year to the urban areas searching for employment causal daily labour is the sole source of income for most men. Women have been fewer options and the informal sectors they work in are unregulated. However, the urban poor population continues to soar. Despite the fact that urban poor people make major contributions to the Bangladeshi economy and provide essential services, the areas they occupy are seen by the athorities and middle classes as heavens of crime, drugs, diseases and environmental pollution. TMSS felt the necessary of helping these poor people to uplift their socio-economic condition and over the years, the organization has been working for them. The UMC program, launched by TMSS in 1999, is used to assist urban slum dwellers in order to build group support among urban poor beneficiaries. Palli Karma Shahayak Foundation (PKSF) is the major sources of fund for strengthening Urban Micro-credit (UMC) program. The main objective is to involve poor women of urban areas in income-generating activities through collateral free loans. Loan size ranges between TK. 2,000 to TK. 29000. All members participate in a compulsory interest-bearing savings program and optional savings programs are available. Loan installments in equal amounts are due weekly. Loans are made for a maximum of one year and repayment is in cash at the group meetings. Service charge is 12.5% using flat method. Death benefits are available for clients as well as guardians. At present loan outstanding is TK. 587.16 Million among the 98,786 borrowers. The members must be women who are poor and willing to operate IGAs that are socially acceptable and profitable. Micro Enterprise (ME): While most economists agree that long-term employment provides more security and higher returns than micro-enterprise activities, traditions in Bangladesh often inhibit a womens ability to obtain employment outside the home. However, in order to reverse the falling status of Bangladeshi women, international and local organizations have instituted micro-lending programs, giving women access to loans to start their own small business. During implementation of micro-credit programs, TMSS observed that there are many small entrepreneurs, craftsman and skill workers in the rural areas who are struggling hard to overcome their sufferings but failed due to capital. On that realization TMSS provided the financial support to promote their entrepreneurship as well as create the employment opportunity for the rural and urban poor. The concept is not new for TMSS, it is initiated in 2000 with the assistance of PKSF, aims to create employment through enterprise development in rural and urban areas. Loan size ranges between TK. 30,000 to TK. 3, 00,000. All members participate in a compulsory interest-bearing savings program and optional savings programs are available. Loan installments in equal amounts are due weekly or monthly. Loans are made for a maximum of one year and repayment is in cash at the group meetings. Service charge is 12.5% using flat method. At present loan outstanding is TK. 160.07 Million among the 5,345 borrowers. The members must be a potential or existing entrepreneur. Participatory Livestock Development Project (PLDP): The PLDP program was launched by TMSS in 2001 with the assistance of PKSF. The main objective is to create employment and income-generating opportunities by livestock husbandry in rural and urban areas. Loan size ranges between TK. 2,000 to TK. 29,000. All members participate in a compulsory interest-bearing savings program and optional savings programs are available. Loan installments in equal amounts are due weekly or monthly. Loans are made for a maximum of one year and repayment is in cash at the group meetings. Service charge is 12.5% using flat method. At present loan outstanding is TK. 522.35 Million among the 99,687 borrowers. Members must be women who have been trained in livestock, poultry or fish cultivation. TMSS also provides technical support for the members through counseling and market linkage. Financial Services for the Poorest (FSP): FSP is a special type of financial services for the poor people of Sharikandi Upazilla in Bogra district. The main objective is to develop the capacity of poor women through their direct involvement in IGAs and thereby increase their family incomes. FSP also helps to increase women participation in the
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development process. Major activities include family survey, member selection, group development, awareness development, selection of income-generating activities, training, credit support, and flexible installment and savings plans. Loan installments are due weekly in cash at the group meetings. Loan size ranges between TK. 2,000 to TK. 29,000. Maximum loan period is one year. Service charge is 12.5% by using flat method. At present loan outstanding is TK 4.31 Million among the 1,478 borrowers. Ultra Poor Project (UPP): The ultra poor households are most universally landless, with wage labor being their main source of income. This high dependence on wage market makes the ultra poor households extremely vulnerable to food security and malnutrition. The UPP targets those who are landless or have less than 3 decimals of land, earn their livings by physical labor, are unable to eat three meals a day, have no assets and no money to spend on education or clothing. This group of people is untouched and they have not yet been brought into the mainstream of development by any other NGO initiatives. TMSS implemented the UPP program with the assistance of PKSF to give this neglected group support and training in incomegenerating activities so its members improve their living conditions. The major activities under this project are group formation, social mobilization, group meeting, savings, collection, micro-credit management, awareness raising on various social issues, human development, skill training on various IGAs for self-employment, wage-employment supervision and follow up, technical support in the field of IGAs, workshop, community meetings and leadership trainings etc. It is mentioned that Savings and loan installment plans are flexible in this program. The loan installments are equal and made weekly in cash at group meetings. Loan size ranges between TK. 200 to TK. 5,000. The loan period is for a maximum of one, and the service charge is 10%. At present loan outstanding is TK 312.29 Million among the 1, 13,659 borrowers. Microfinance & Technical Support (MFTS): The objective of the MFTS program is to improve the livelihoods and food security of the target group by increasing the beneficiaries per capita incomes and creating immediate employment opportunities. The MFTS program strengthens livestock production capacity and promotes the adoption of technology. It also supports the creation of sustainable demand-driven savings and credit programs. The loan installments are equal in size and made weekly in cash at group meetings. Loan size ranges between TK. 2,000 to TK. 29,000. The loan period is for a maximum of one year. The service charge is 12.5%. At present loan outstanding is TK 55.23 Million among the 9,117 borrowers. Microfinance for Marginal and Small Farmers (MFMSF): The MFMSF program supports the marginal and small farmer by providing credit facilities as well as technical support. The major objective of this program is to improve the livelihoods of the targeted people, small and marginal farmer households by enabling them to access and utilize viable microfinance services to invest in existing and new farm and off-farm enterprises. This program has been implemented in 6 districts for providing the credit support to the poor population. In near future this program will be extended in the other parts of the country. Now, it is extending its support to the marginal and small farmers considering them as vulnerable group. The loan installments are equal in size and made weekly in cash at group meetings. The loan period is for a maximum of one year. Loan size ranges between TK. 2,000 to TK. 29,000. The service charge is 12.5%. At present loan outstanding is TK 71.06 Million among the 13,934 borrowers. It is mentionable that an organization can obtain better results in agricultural product, employment generation, diversify income sources or any other field by taking incorporating technical assistance to the financial services and all these concepts are associated with MFMSF project. Rehabilitation of Non-Motorized Transport Puller and Poor Owners (RNPPO):
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The RNPPO project, launched by TMSS in 2007 in Dhaka with the assistance of PKSF, aims to improve the socioeconomic status of selected non-motorized transport pullers and poor owners. TMSS provide technical support to the members, including social issue training, skill development training, business management training, and market linkage. The program is designed only for males. The loan installments are equal in size and made weekly in cash at group meetings. The loan period is for a maximum of one year. Loan size ranges between TK. 5,000 to TK. 1, 50,000. The service charge is 12.5%. At present loan outstanding is TK 11.23 Million among the 640 borrowers. Bangladesh Agribusiness Development Program (BADP): The BADPs objectives are to encourage entrepreneurship in agribusiness, to create new agribusiness, and to strengthen the value-added in agribusiness. This objective will lead to job creation and contribute to Bangladeshs GDP. Loan ceilings are higher than in most micro-credit programs. In response to the growing demands of graduate borrowers and other SMEs involved in agribusiness, TMSS launched BADP with the assistance of Asian Development Bank (ADB). The maximum loan period is 3 years with a minimum of six months. The loan installments are equal in size and made monthly, with a grace period of at least six weeks. Loan size ranges between TK. 35,000 to TK. 3, 50,000. The service charge is 12.5%. At present loan outstanding is TK 181.63 Million among the 4,017 borrowers Seasonal Loan (SL): TMSS observed that every beneficiary is eligible to received two types of loan, one is regular and another is seasonal loan. Seasonal loan is a short term loan for a particular season. The objective of the SL program is to meet-up the crises of fund during peck season and expand business of the target group by increasing the beneficiaries per capita incomes and creating immediate employment opportunities. This program has been implemented in Bogra and Joypuhat districts for providing the credit support to the poor population. In near future this program will be extended in the other parts of the country. This group of people has thus far been excluded from mainstream development activities. The loan installments are equal in size and made weekly in cash at group meetings. Loan size ranges between TK. 2,000 to TK. 29,000. The loan period is for a maximum of one year. The service charge is 12.5%. At present loan outstanding is TK 2.85 Million among the 570 borrowers. Ultra Poor Pilot Project (UPPP): The UPP targets those who are landless or have no land, earn their livings by physical labor, are unable to eat three meals a day, have no assets and no money to spend on education or clothing. It also supports the creation of employment through livestock development program. This program has been implemented in Gaibandha, Sirajgonj and Bogra districts for providing the credit support to the poor population. In near future this program will be extended in the other parts of the country. The loan installments are equal in size and made weekly in cash at group meetings. Loan size ranges between TK. 2,000 to TK. 29,000. The loan period is for a maximum of one year. The service charge is 12.5%. At present loan outstanding is TK 0.51 Million among the 270 borrowers. Livelihood Restoration Program (LRP): LRP was launched with the assistance of PKSF after the flood that devastated Bangladesh in 2006. LRP is being implemented for victims of natural and man-made disasters. This group of people has thus far been excluded from mainstream development activities. Micro-credit is made available for rehabilitation of housing and restoration of livelihoods. The loan size range is TK 2,000 to TK 4,000. The loan installments are made weekly, with one- or two-month grace periods, in cash and in group meetings. Existing borrowers can also participate in this program. The maximum loan period is one and a half years. Service charge is 6% by using flat method. At present loan outstanding is TK 15.60 Million among the 16,210 borrowers.
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Special Assistance for Housing of SIDR Affected Borrowers (SAHOS): The program was launched by TMSS, with the assistance of PKSF, to address the devastation caused by cyclone SIDR in November 2007. The main objective is to repair or rebuild the houses of vulnerable people that were damaged or destroyed by SIDR. The program is running among the SIDR affected people in the southern part of Bangladesh, especially in Khulna and Bhagherhat districts and it is a pilot project. The loan size range is TK 5,000 to TK 15,000. Loan repayment time is 3 years, with a sixmonth grace period, in 30 equal installments due monthly. There is no service charge. Mode of repayment is cash in group meetings. At present loan outstanding is TK 2.7 Million among the 292 borrowers. Rehabilitation of SIDR affected coastal fisheries, small businesses and livestock enterprises (RESCUE): RESCUE was launched by TMSS, with the assistance of PKSF, to rehabilitate the fisheries, small businesses, and livestock enterprises damaged by SIDR in November 2007. The main objectives are to rehabilitate business ventures and to create employment among small and marginal entrepreneurs affected by SIDR. It is a special program of PKSF and operates among 22 southern districts of Bangladesh. The loan size range is TK 5,000 to TK 15,000. Loan repayment time is 3 years, with a six-month grace period. Thirty monthly installments are due and made in cash at group meetings. Service charge is 4%. At present loan outstanding is TK 5.00 Million among the 1,056 borrowers. Strength and Capacity of Microfinance program: Skilled, efficient, sincere, hard working, honest and dedicated permanent human resources. Experienced and qualified microfinance professionals. Ample material resources to run the programs successfully. Sufficient vehicles support. Strong team-building approach. Decentralized and participatory management system. Infrastructure and facilities in working areas with easy access to members & timely delivery. Harmonious & women friendly working environment.

Countrywide network & relationships with international and national organization like ADB, INAFI, WB, PKSF, CDF etc. Impact of Micro finance program: Increased the level of income. Achieved universal primary education. Promoted gender equality and equity. Contributed to increase GDP by empowering women. Increased women participation to reduce poverty. Decreased different diseases and rate of child mortality.
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Improved maternal health. Ensured environmental sustainability through formulating a global partnership. Created women empowerment by active participation in the society.

Leadership development of the poor women and contribution to reach the millennium development goal. Rating of Microfinance program: In November 2005 INAFI-Bangladesh conducted a rating appraisal among the most important NGOs involved with micro credit in Bangladesh The report found the following situation at TMSS. Future Challenges of Micro finance program: Religious and cultural barriers Lack of skilled human resources. Unauthorized and unsupervised practitioners operating in remote areas. Natural and man-made disasters. Lack of cooperation and trust among local leadership. NGO capacity to create self-sustaining initiatives. Political unrest. Relief mentality of target group. High inflation. Employment rather than entrepreneurship.

Program Domain Head of Domain: Md. Habibul Hassan Siddique, Director (Program) Program department is one of the important departments/domains; which plays a crucial role to social development activities. TMSS has been operating various programs and projects under program department from its inception as per needs of social developments with a view to develop livelihood strategy of rural people. There are two units of program department like-Program Implementation Unit-1 (PIU-1) and Program Implementation Unit-2 (PIU-2). Various types of donor funded projects/programs are being conducted successfully by this department, which are as follows: Counter Trafficking Interventions (CTI) Shelter Home Post Literacy & Continuing Education and Human Development -1 (PLCEDH-1) Solar Home System (SHS) Reaching Out of School Children Project (ROSC)
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Human Rights & Gender (HR&G) Area Based Community Nutrition Programme (ABCN) Listen to Children voice Prevention and Protection of Victims of Human Trafficking in Bangladesh (PPVHT-B) BEHTRWRC (Hard to Reach) Eradication of Hazardous Child Labor of Bangladesh (EHCLB) Skill & Entrepreneurship development of women in LES project Remittance & Payment Partnership (Output-3) NVGD. National Nutrition Program Household Food Security through Nutrition Gardening (HFSNG) Monga Mitigation Program (MMP): PRIME Project Awareness Training on Rights & Law Social Development Program Project (SIPP), Phase-III FSVGD & UP Poultry for Nutrition (PEN) Survey on Solid Waste Collection. Savings program: TMSS was initiated through savings activities. Savings is encouraged for accumulation of fund and to get rid of poverty. In fact, saving activities (accumulation of tiny amount of money from individual client) are being operated in TMSS in order to mitigate Group Members crisis situation and promote their livelihood through door-step service. The accumulated fund is utilized as per planning; capacity and capacity of the incumbent with a view to reduce poverty. The impact of these will be Socio-Economic upliftment through poverty alleviation and reduction of unemployment. To create own capital is not possible without savings and individual decision cannot be implemented without it as well. For this reason, TMSS used to adapt some steps to make them savings oriented. Every member has passbook and they get their interest as per bank rate. Major objectives: The objectives of savings service of TMSS are as under: To minimize financial crisis & poverty elimination of group members.
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To change beneficiaries attitude and make them savings minded To ensure and increase participatory investment in any project To raise women empowerment in the society To reduce dependence on lending To increase the financial confidence of the beneficiaries.

Savings products: TMSS branch office is convenient to all members for depositing to their accounts. Member can withdraw their savings from the accounts at suitable time. TMSS branch office is a safe place for keeping savings instead of their house. General Savings: General Savings is the prerequisite to be group member of TMSS micro-credit program. For creating own capital, TMSS accumulates the small savings of individuals. Under this facility, members of TMSS save particular amount per week/fortnightly/monthly through using Pass-Book in scheduled group meeting and is deposited to bank through field worker, they get their interest as per schedule bank rate. General savings collected from the group members on regular (weekly, fortnightly, and monthly) basis which helps the poor to save money easily and effectively. Up to June 2008, present balance is TK. 812,646,287/-. Special Savings: The group members accumulate this savings and can withdraw it at any time as per their need. Up to June 2008 this kind of savings amount is TK 233082284 and last years up to June 2007 this balance was Tk. 221495983/-. TMSS Savings Scheme: The beneficiaries save their money in TMSS saving scheme for a particular period and it is returned while desired or according to savings rule of TMSS. Up to June 2008 the balance is TK 7365061/- and last years up to June 2007 this balance was Tk. 7398300/-. Grant Allocation: In case of the small worthy initiatives those who are the networking members/CEFE club members/registered Co-operatives Somity are allocated Grant money from TMSS. Award Giving: TMSS provides with awards to its group members, local initiators, social people, scholars and innovative initiators for their extra-ordinary performance considering successful implementation of the programs. It is done for the smooth operation at the interest of the development of the organization. HEM Model In the modern world Micro Finance has emerged as a very effective tool for socio-economic development, especially for the underprivileged. TMSS, one of the largest National NGOs in Bangladesh, having 25 years experience, has been practicing micro finance program for a long time with a view to improve the livelihood status of underprivileged. Through applied experience, this organization observes micro-credit is not sufficient only to improve the livelihood status of the poor and need to micro-credit plus approach. Realizing this, TMSS accepts as a true that to compose sustainable development through social actors mainly people is needed to be self confident, must have access to the health services, must encompass educational base, should be trained on financial literacy and management capabilities and the like along with financial support as a package. Based on that experience, TMSS has introduced a new model named HEM (Health, Education and Micro Finance) in order to sustainable development in our country. Thus, it has been implementing this model in a cost-effective way in the name of HEM (Health, Education and Microfinance) to overcome the difficulties of maintaining livelihood management with a view to prestigious sustainability of the poor in the following way: Average 2000 clients in a branch (Service providing center);
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One paramedic/health assistant in a branch for covering the commanding area; One doctor for the coverage of 5 branches having regular one day service for each branch in a week; Referral services; Bridging the clients with local facilities and opportunities; Awareness and rights; Nutrition and early childhood development; Basic & life skill education and training; Identifies the unused local resources and ensures the best use of these incorporating the poor people and making them productive.

Microfinance plus model should be the strategy of development interventions towards attacking poverty for the comprehensive development of disadvantaged and underprivileged people. Besides, economic poverty, people need to get rid other human poverty like education, health etc. The long time practicing experience tells that livelihood security which results sustainability shall have to face obstacles if the development interventions are not an integrated one. Our experience says that microfinance and other social development supports work together to attack poverty most successfully. In spite of many limitations, the GDP growth on Bangladesh in increasing and the contribution of microfinance towards this growth is considered as a counting factor which is reflected from the comments by the think tanks and policy makers of the country. The above mentioned social development and microfinance supports of TMSS help the poor people in a very effective way to stand in the society in a better position. In fact, TMSS HEM model has already attained the acceptability in the civil society as the cost-effective Microfinance model in Bangladesh. For materializing health, education and micro-credit programs; TMSS has established many Branches all over the country. And branch office is considered as centre of development activities from where all the efforts are provided for the targeted people. At present, TMSS emphasizes to provide credit, health and education supports for the same people. This organization believes, without ensuring basic education and sound health; credit is not successful for reducing poverty. In addition, through this, it is possible to achieve Millennium Development Goals where three major targets are eradicate extreme poverty and hunger, achieve universal primary education and improve maternal health by 2015. Beyond the major programs, various short-term human right-related programs and environment conservation and preservation related programs also be activated at field level.

Conclusion
The member-based Microfinance Institutions (MFIs) constitute a rapidly growing segment of the Rural Financial Market (RFM) in Bangladesh. Microcredit programs (MCP) in Bangladesh are implemented by various formal financial institutions (nationalized commercial banks and specialized banks), specialized government organizations and Non-Government Organizations (NGOs). The growth in the MFI sector, in terms of the number of MFI as well as total membership, was phenomenal during the 1990s and continues
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till today. Over the period of June 2003 to June 2006 the growth rate was over 70% in terms of horizontal expansion of microcredit borrower. The total coverage of MCP in Bangladesh is approximately 30.09 million borrowers. Microcredit programs of NGOs (known as NGO-Microfinance Institutions or NGOMFIs) and Grameen Bank play dominant role in this financial market, NGO-MFIs serve more than 61 percent and Grameen Bank alone serves 24 percent of the total borrowers. Among NGO-MFIs more than 80 percent of the outstanding loan disbursed by the top 20 NGOs, three of them are very large and have coverage all over the country. Service charge on credit varies from 10% to 20% at flat method of collection, all partners of Palli Karma-Sahayak Foundation (PKSF) charge 12.5%. Average interest offered by NGO-MFIs on savings to the members is 5%. Near about 90% of the clients of this sector are female. Average loan size of NGO-MFIs was found around Taka 4,000. Loan recovery rate is generally very high compare to the banking sector, which is over 90%.

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