Growth of Digital Infrastructure in India

Subject: Environmental Management & Corporate Social Responsibility

Author names:
Author Names: Alokik Agarwal,
Anika Vij,
Krrish Khemani,
Prachee Bansal,
Mehar Nandrajog,
Yadvi Aggarwal
Group No.: 01
Batch: 2021-24
Division: TYBCOM(H)_A

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Grameen bank
Founded in Bangladesh, Grameen Bank is a microfinance institution and bank for community
development. It provides modest, collateral-free loans to the poor, referred to as
"grameencredit" or microcredit.

Professor Muhammad Yunus of the University of Chittagong started a research project in

Between 2003 and 2007, the bank experienced substantial growth. Ninety-six percent of the
bank's 9.5 million debtors as of January 2022 are female. The Bank's "Low-cost Housing
Programme" took home a World Habitat Award in 1998. The Nobel Peace Prize was shared
by the bank and Muhammad Yunus, who founded it, in 2006.

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Because of the bank's success, comparable initiatives have been launched in over 64 nations,
including a World Bank project to fund Grameen-style programmes.

Founder

Inception

Development
through the years
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SOCIAL BUSINESS MODEL FOR
GRAEMEEN BANK
Established in 1976 by Professor Muhammad Yunus, Grameen Bank obtained its institutional
identity as a stand-alone financial organisation in 1983. This micro-credit bank has
established itself as one of the world's most inventive business ideas. The microfinance
concept was initially presented by Grameen Bank, and it quickly attracted the interest of
several social assistance initiatives in Bangladesh and abroad. When the bank was opened, its
goal was to aid Bangladesh's rural impoverished women who were having difficulty
obtaining loans and were being taken advantage of by money launderers. Professor Yunus
began lending money to the ladies out of his own pocket, beginning with sums as little as
$27. He was motivated to expand it and establish the process as an institution when he
gradually saw that it was helping the whole hamlet. Through the distribution of more than
US$18 billion, Grameen Bank has aided over nine million borrowers, 97% of whom are
women. At the moment, Grameen employs 21,751 people to service 8.81 million borrowers
throughout 81,392 communities. Other than Bangladesh, many other nations have rejoiced in
the Grameen model's success since it has lifted millions of people out of poverty, suffering,
and social marginalisation.

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Vision, Mission,Targets

Vision & Mission:

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Targets:

Grameen Bank evaluates the programs through twelve indicators to check whether the
members are moving out of poverty. Housing, food, health, children's education,
entrepreneurial ability, vegetable cultivation, and other qualities of life are evaluated.This
procedure creates awareness among the staff members about the ultimate objectives of their

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work. It clarifies their mission and their understanding of the organization.

There are two major principles of Grameen Bank :

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The purpose of Grameen Bank is to empower the poor, provide access to credit and help in breaking
the cycle of low income. Some the characteristics of the loan provide are :

 Small, Sufficient Loans

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Social and Environmental Impact: Contributions of the For-Profit
Social Enterprise (FPSE)
Grameen Bank's strategy, encapsulated in "The Eighteen Decisions," aims to empower Bangladesh's
impoverished communities. Originally, these directives, initially known as the "Sixteen Decisions,"
formed a Poverty Alleviation Program. They prompt borrowers to instigate personal, economic, and
social shifts, disrupting traditional norms while preventing excessive reliance on middlemen.
Empowering women with income opportunities not only enhances family standards of living but also
bolsters their security within marriages and elevates their societal standing. Between 1980 and 1984,
Grameen Bank borrowers engaged in extensive dialogues, culminating in these decisions prioritizing
health, housing, sanitation, family planning, and cleanliness. Since then, these directives have been
integral, mandating continual efforts toward their execution.

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 (source: https://grameenbank.org.bd)

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 (source: https://grameenbank.org.bd)

The financial institution has played a pivotal role in alleviating poverty, fostering gender
empowerment, enhancing educational opportunities, fostering community development, advocating
for sustainable practices among its borrowers, advancing the progress of rural areas, and heightening
awareness among its clientele In recognition of these contributions, Grameen Bank has received
numerous accolades and honours from diverse entities worldwide, which include:

(source: https://grameenbank.org.bd)

Comparision between international FSPE’s: Grameen Bank, BRAC

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The microfinance models of Grameen Bank (GB), BRAC, and ASA in Bangladesh have achieved
significant success in addressing poverty through unique approaches. Grameen Bank prioritizes poor
individuals, particularly women, forming small solidarity groups for easy access to credit. It employs a
doorstep service, requires no collateral, and utilizes a group support system for loan repayment.
BRAC, in addition to group approaches, forms Village Organizations (VOs) of 30-40 people to address
structural barriers. BRAC emphasizes credit availability for rural women, reasonable pricing, and self-
sustaining credit activities. ASA, distinctive in its sustainable and cost-effective model, operates with
30-40 member groups and achieves branch self-reliance within 12 months. ASA simplifies
accounting, distributes responsibilities among staff, and maintains a tight monitoring schedule,
ensuring efficiency and sustainability. Each organization's success lies in their tailored approaches to
empower the poor economically and socially.

Bangladeshi Microfinance Service Providers (MSPs), especially larger ones like ASA, Grameen Bank
(GB), and BRAC, exhibit exceptional self-sufficiency in Asia. They achieve financial sustainability
through diverse funding sources, including local banks, Polli Kormo Shyakak Foundation (PKSF)
wholesale funds, international grants, member savings, and service charges. PKSF, established in
1991, plays a pivotal role in the sector by refinancing NGOs and acting as a financial intermediary.

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While external donor grants have declined, MSPs maintain financial self-sufficiency, with ASA even
securing loans at market rates. Operational and Financial Self-Sufficiency metrics for GB, BRAC, and
ASA demonstrate their robust financial positions, ensuring sustainability.

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