CHAPTER-1
OVERVIEW OF
INTERNSHIP
1.Introduction:
Bangladesh is a rural
country and most of the people live in village. Miximum people of Bangladesh is
landless and asset less. My study is in the field of credit policy of Grameen
bank with reference rajshahi district parila branch .The economic development
of Bangladesh depends on rural development. So, my study is very important is
this context.
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| Methodology of the study |
1.2.Definition of
internship program:
Internship training,
practical training may be defined as systematic investigation intended add to
available knowledge in of firm that I communication and verifiable. Mr. Green
gave a definition that, “Standard methods taking for searching knowledge are
meant internship.”
Practical training in
necessary fir our needs especially to the student of Accounting Information
System like us. We only acquire practical knowledge in the classroom of
Universities it is trying need to us to acquire practical knowledge regarding
in short internship is a method of acquiring knowledge for application is
scientific well and find out the actual situation of certain fields. Through
internship a student can achieve the ability to find out real problems and can
make suitable solutions.
1.3. Objectives of
internship program:
The main objectives of
internship program are to earn practical expedience about a definite subject.
It helps to achieve real knowledge and experience. The purpose of internship
tainting is to discover answer to questions through the application of
considerable procedures.
I.
Identify
the problems and put forward recommendations.
II.
To gain
familiarity with phenomenon of to achieve practical knowledge.
III.
To
investigate the cause of loss.
IV.
To
celebrate advancement of the related concern by analyzing accounting ratios.
V.
To
implement the knowledge of practical training in the practical life.
VI.
To know
which type or which kind of administrative skill is necessary to conduct the
institution.
VII.
To innovate new technique of accounting.
VIII.
To
determine the frequency with which something else.
IX.
To
accurately the characteristic of a particular individual condition on a group.
1.4 Significance of internship
Program in accounting Information System:
Theoretical knowledge
is acquired for the purpose of applying is the practical life. Different
importance of internship training program in Accounting Information System are-
1. Practice makes a man perfect-truthfulness of
such can be achieved practical training
2.
It gives the opportunity to know about the present
situation of the institution.
3.
Review the advancement of the institutions,
4.
Expands the span of knowledge.
5.
It facilitates
thinking about problem of applying theoretical knowledge in the field of
action.
6.
It plays as important rile for the students of
Business Studies and also to copulate their theoretical studies such s student
may be service holder or Business person in future.
7.
To enact different policies for the over all
development of the institutions.
8.
Provides the guide about which type of which kind of
administrative skill is necessary to conduct the institution.
9.
Real experience can be gained can be gained through
practical one.
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| Methodology of the study |
1.5 Objectives of the leaner:
§ To leaner
different credit program of Grameen bank.
§ To know the
problems of Grameen bank credit policy.
§ To analyze
and interpret the credit program of Grameen bank.
§ To measure
the operating performance of different micro credit program.
§ How Grameen
women benefited by the Grameen bank credit policy?
§ To give
recommendation for better performance of Grameen bank.
1.6 Need for the learn:
Credit is a new concept of rural
finance. Landless and asset less people are getting benefit from credit of
Grameen bank. Grameen bank is facing many problems fir credit distribution.
Women are also confronting some problems. My study will show problems of both
parties. Therefore, it might be helpful for all of them.
1.7.
Limitation of the Internship:
We know
that practical training is essential to acquire a complete knowledge, but it is
not achieved easily within the short time. That’s why this internship program
is not over criticism. There are some shortcomings of internship program from
the researcher point of view and enterprise point of view. The following
limitations are:
From
internee point of view:
§ Time
duration: Time duration is short period.
§ Expensive: A good
amount of money is incurred to prepare this report, which is not possible to
maintain it properly.
§ Experience: lack of
pre experience because this program is for the first time to me/us.
§ Questionnaire
preparation: questionnaire preparation in the context of selected topic
not possible precisely caused by lack of proper knowledge about the topic.
§ Lack of
convincing power: It the internee is not able to be comprehend the
personnel about what he want to says, resulted that communication would not be
better.
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| Methodology of the study |
# From the
enterprise point of view:
- Lack of co-operation of personnel.
- Sufficient information is not provided to the internee in order to
maintain enterprises privacy.
- In addition, the present of the enterprise try to avoid the
internee in different ways.
1.8 Methodology
of the study:
We know that
practical training is essential to acquire a complete knowledge. Data have been
collected in the following ways.
(a)
Primary source
(b)
Secondary source
(a)Primary
source: The data, which are directly collected field the study
field, are called primary data or raw data.
Primary
data have been collected under the following methods,
(i)
Observation methods
(ii)
Interviews
(iii)
Questionnaire
I
have collected data from the Grameen bank parila branch, Rajshahi.
Outdate of the related department
have been collected by interview and
Questionnaire
method
(b) Secondary source: I have
collected secondary data from the following sources.
(i)
The publications of Grameen bank.
(ii)
Circular letter and journals.
(iii)
Published papers
on credit program
(iv)
Internet search.
1.8.1.
Tools used: In the present study the following tools
have been used for data compilation tabulation and test.
(i)
Various tables.
(ii)
Graphical presentation (bar diagram).
(iii)
Line graphs.
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| Methodology of the study |
CHAPTER-2
BACKGROUND OF GRAMEEN BANK
2.1. Grameen Bank at glance:
History of Establishment : The history of foundation and
overall activities of Grameen bank of Bangladesh is at present the largest
specialized credit institution in the world. The credit program of the GB was
incited by Dr.Yunus a professor of economics university of Chittagong as
research project aiming at poverty alleviation bin August 1976 firm “jobra” a
village of Chittagong district. It disbursed small size of collateral –free
credit among the landless people and successfully recovered 100percent of
credit including interest in the scheduled time seeing the excellent
performance of recovery rate, Dr.Yunus was able to convince Bangladesh bank to
extend the experience of GB project under supervision of Bangladesh bank with
financial support in1997GBP started its credit operation in Tangail district as
a project of Bangladesh bank (Yunus-1987) .The project operated with
excellent rate of recovery with was 98-99%
(Yunus-1987) in all the nineteen branches in Tangail region, Grameen bank
project received huge grants and soft loans firm may international agencies
like IFAD,FORD Foundation, IDA, UNICEF, Etc along with the financial support of
central bank and nationalized commercial banks of Bangladesh later on it credit
programs in Dhaka ,Rangpur and Patuakhalli districts till early 1983. In
September1983, the government of Bangladesh announced “Grameen bank “ ordinance
by with the GBP became a scheduled financial institution named “Grameen bank”
Finally GB was launched as a specialized bank with group _based micro –credit
programs to uplift the rural poor from poverty in 2nd October1983
with an authorized capital of Tk 1oo million and paid –up capital of Tk 30
million. The Grameen bank was declared as a share holding financial
institution. Initially 60% and 40%share was show under the ownership of the
government of Bangladesh and the poor borrower respectively. The percentage of
shares under the ownership of the poor members has been increasing with the expansion
of the credit program. It present if is show that member borrowers own 93.28%
of the shares and the government owns only the remaining 6.72% share.
2.2. Specialties
of Grameen bank:
By nature the commercial banks
credit fund and make profit by lending at higher rates of interest relative to
the deposit and borrowing rates. The demand and supply of funds in free markets
usually determine the rates. Demand and supply of funds, in free market.
Usually determine the rates. The demand and supply of funds in free markets
usually determine the rates of interest. The GB also maintains this principle
of fund accumulation and profit credit ion. The commercial banks of Bangladesh
are regulated by the banks companies Act and are obliged to fallow the directions
and guidelines of the central band. But the GB is operating under if own
ordinance. The Grameen bank, ordinance 1983 and enjoying full autonomy. The commercial bank secure collateral against
lending but the GB is lending without any visible collateral unlike other
banks, GB do not provide loan to an individual. It forms group of borrowers
before loan sanction GB is fundamentally a group –based lending in situation
designed especially to work with the rural poor and unlike many other financial
institutions if recovers the lending weekly in equal installment with interest.
If collects different types of compulsory saving from the group members through
which, capital accumulates.
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| Methodology of the study |
2.3. Goal and objective of Grameen
bank:
The goal, which is
proclamation by the GB, is poverty alleviation mentioning the credit as the
most powerful instrument of engine of development, if has been providing group
–based credit facilities to the poorest section of rural society for the
creation of self- employment and income generating activities. The objectives,
which are spiffed by the GB, are mentioned here: -
(1)
To empower the rural poor especially the women who are
seriously neglected and ignored, through creation of self-employment
opportunities and freedoms of them.
(2)
To provide financial services exclusively to the
poorest section of rural area which is excluded from the formal credit
institutions.
(3)
To rescue the poor people from the informal
moneylenders who arte exalting them by charging exorbitant rate of interest of
credit.
(4)
To provide organizational support to the disadvantage
people for better use of credit and income as well.
(5)
To develop human capital in the rural areas through
providing developmental programs regarding education, health, nutrition,
disaster management etc.
(6)
To mobilize savings as a part of future nope for poor.
(7)
To reduce rural unemployment and dependency rat by
offering self-employment opportunities. In rural non-farm sector.
Grameen
bank has made a guideline consisting of a lot of advises named “Sixteen Decision”
as a comprehensive program fir the Socio-economic development of the rural
poor. The sixteen decisions are as follows: -
(1)
The four
principles of the Grameen bank: Discipline, Unity, Courage and Advance in All
walks of our live.
(2) We will bring prosperity to our families.
(3)
We will not live in dilapidated houses; We will repair
our houses and work forwards Constructing new houses.
(4) We will
grow vegetables all the year round; we will eat plenty of them and sell the
surplus.
(5)During
the plantation season, we will plant as many seedlings a possible.
(6) We will
plan keep families small. We will minimize our expenditures. We will look after
our health.
(7) We will
educate our children and ensure that they can pay for their education.
(8) We will
always keep children and the enlivenment clean.
(9) We will
build and use pit-latrines.
(10) We
will drink tube well water, if it is not available, we will boil water or treat
it with alum.
(11) We
will not take any dowry in our son’s wedding; neither will we give any dowry in
our daughter’s wedding. We will keep the center free from the curser of dowry.
(12) We
will not inflict injustice on anyone nor will we allow any one to do so.
(13) For
higher income we will collectively under-take bigger investment.
(14) We
will always be ready to help each other. If anyone is having difficulty. We will help him.
(15) If we
learn of any breach of discipline in any center, we will help to restore
discipline.
(16) We
will introduce physical exercise in our centers; we will take part in all
social activities collectively.
Grameen
bank has introduced these sixteen decisions to achieve overall uplift of the
rural disadvantaged people.
2.4. Organization structure:
2.5 Administrative Hierarchy:
The administrative hierarchy of Grameen bank is shown in the follow in
the following diagram
Administrative
Hierarchy of Grameen bank
Administrative
hierarchy of Grameen bank:
2.6.
Expansion and coverage:
The Grameen bank while was inaugurated
in small village in 1976 with Us Dollar 27 only, at present stand out as the
world’s largest specialized micro institution, the expansion of fund, coverage
of geographical area and rural dwellers are mentioned here.
2.6. A
Expansion of credit fund:
Up to September 20000 Grameen bank has
disbursed a cumulative total of Tk
126.789’40 million credit, which is higher than any other specialized
credit program institution credit not only in Bangladesh but in the world.
2.6.B. Geographical coverage:
The
geographical coverage of the credit programs of the GB in Bangladesh shown in
the following charts:
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| Methodology of the studyMethodology of the study |
2.7. Formation of group and center:
The Grameen bank form a group of
five members chosen firm five separate households living in the same aria and
bearing same, Socio-economic and cultural starters, the entitlement of more
that one member firm the dame household in the same group is strictly
prohibited. The GB that it considers those individuals who belong to landless
or asset less households mentions it only. Who elects a member or the group as
the chairman, the GB maintains financial discipline in the group level. The
group members undergo a training program for a period of least 7 days. After
the completion of the training program, the workers of the GB select the
potential groups as well as members for delivering credit.
2.7 credit
delivery and recovery Mechanism:
GB does
not disburse loan to all the members of a group at a time two persons
relatively poorer among the group members, as selected by the GB workers and
are give credit for the first time. After the observation of the recovery
performance of the first two for a period of 6 to 8 weeks the rest of the
member remain in the credit line are considerers in turns. Each member of the
group is accountable for the recovery of the loan, in settlements sanctioned to
any one of the groups. Similarly responsibility for repayment of any borrower
lies of every member of the centers. The chairmen of the groups and centers
bear the sole responsibility in this regard.
The first credit Sanctioned to the
borrower appears the be a me age amount of Tk 1000 to Tk 3000, the GB deducts
Tk 5% during credit delivery’s as group –fund / group tax from, the Sanctioned
money and then recovers Tk 24 per thousand as weekly repayment installments of
which Tk 22 is the principal and Tk 2 interest. Every borrower is obliged to
deposit Tk 5 to GB found as weekly savings with the repayment installments. The
amount of weekly installment varies with the sire, of the loan. GB also
collects Tk 2 per day from each of the members during the training period.
Previously GB used to used to collect many types of contribution as “emergency
–fund” children found etc. at present GB recovers it loan and interest with in
46 weeks from the date of delivery In equal installments according to the
fixation mentioned above. Previously, the number of installments was 52 if any
borrower delays to repay, other members including the leaders of the groups and
centers create pressure on him. GB expels the member if she or he foils to repay
the duty installments.
2.8
Nature of
capital formation:
At present different type of obligatory
saving and weekly collection of loan installments from the member borrows and
loan from Bangladesh bank and other commercial bank are the main comments of
the working capital of GB. GB that started its Banking operation in October
1989 with a total of Tk130 million of which Tk 100 million is authorized and
Tk30 million is paid-up capital, at the very early stage, GB received huge
amount of grants and confessional loan firm external sources, Till December
1994 it received a total of Tk 31365.30 million as grants and subsidized loan
firm foreign as well as domestic sources.
2.9. Manpower Employed:
At present the GB
is doing micro-credit business almost in all rural area of Bangladesh except
three will district. About 14000 people are employed in the GB activities at
present of them than 3000 are officers who are highly educated and are high
salaried.
2.10. Extra Benefit:
It is seen firm
the above analysis that the government of Bangladesh has signed the entire loan
agreements firm foreign source on behalf of rural poverty. If has enjoyed many
kinds of extra benefits than many other financial organizations. These benefits
include tax relaxation, free-transfer of money thought other commercial band
till 1995 grants and interest- free loan soft loan firm foreign and domestic
sources, many types of advantage for capital accumulation in the early stage
etc.
2.11. Parila poba branch at glance:
- Name of the bank: Grameen bank (Parila
poba branch)
- Location: Thana:
Poba. Village: Parila
Post: Kharkhari, District: Rajshahi
- Establish of the year: 26 February1989AD
- Branch cord no: 539-0289.
- First date of the credit distribution: 26 February1989AD
- Total center of the branch: 92.
- Name of the manager: A.S.M. AMINUL ISLAM
- Number of the workers of the branch: 10
- Distribution of the Polly phone: 380
- Official mobile number:0171-410484.
CHAPTER-3
THEORETICAL ASCENTS OF CREDIT
POLICY
3.1.
Definition of credit policy:
Credit policy
means lending money to individuals or firms on specific terms relating to
interest and repayment. Credit created by commercial banks through loans and
discounts granted with or without collateral. The amount of credit so extended
is controlled in part by the rediscount rate established by the Federal Reserve
Board.
3.2. Major characteristic of credit Policy:
§ Increase social owners.
§ Motivate and encourage poor for savings.
§ Interest rate is controversial.
§ It is totally collateral free.
§ Male and female get preferential treatment.
§ Most programs are group based.
§ Generally weakly installment payment system.
§ Group savings concept.
§ Mortgages must be need.
3.3. Objectives of credit policy:
Main objective:
§ To accelerate economic development of rural
people.
§ To participate in poverty alleviation.
§ To earn optimum profit.
Relevant objectives:
§ To make efficient investment of bank fund.
§ To satisfy working capital need of
agricultural sectors.
§ To meet working capital need of trading
business.
§ To provide financial support to transport and
traveling business.
§ To meet working capital need of
manufacturing, etc.
§ To provide long-term fund to manufacturing
businesses.
3.4.Types of credit policy:
Three majors types
of credit policy.
(One the basis of time)
1. Short term credit policy. Example: -Micro
credit.
2. Medium term credit policy. Example: - Credit
/Loan.
3. Long-term credit policy. Example: Education
Loan.
1. Micro credit: Micro credit is the small size
of loan, which is found to be an amount of Tk 1000 to Tk 10000, disbursed with
the condition of weekly repayment with interest.
2. Credit: Generally lending money to
individuals or firms on specific terms relating to interest and repayment.
3. Education loan: It is long-term process and
recovery time big. Education loan programmer, in an effort to provide new
opportunities for talented children of its borrowers who enroll in medical schools,
engineering schools honors and masters degree programmer. Agricultural
colleges, textile engineering and other higher education programmers, are
eligible to receive financing from this loan window. The loans are intended to
cover all expenses incurred by students firm the beginning of their respective
courses until completion, including admission fees, course fees, required
stationery, food and accommodation and other related necessary expenses.
3.5. Various involve organizations:
Various government and
non-government organization playing are increasing role for poverty alleviation
through credit program.
a) Government organization:
q Various
government Commercial Banks.
q Specialized
Bank like Grameen bank, RAKUB.
q Bangladesh
Academy for rural development.
q Youth
training program.
q Bangladesh
small and cottage industries Corporation.
b) Non-
Governmental organization
q ASA.
q BRACK
q PROSHIKA
q TMMS.
3.6.Methods
of interest calculation:
In the present study, the interest
rate changed by the GB has been estimate by using three alternative methods.
These are briefly discussed blow:
1)
The Average Balance Method: The
working formula of this method is:
TAI
FBL+LBL
IRAB= --------X100 and
ABL= ---------------
ABL
2
Where, IRAB=Interest rate on
average balance. TAI=Total amount of interest,
ABL=Average balance of loan,
FBL=Fist balance of loan, LBL=Balance of loan.
2)
The Effective Rate Method: The
working formula of this method is:
2PC
ERI= ------------
X100
A (n+1)
Where, ERI=Effective rate of
interest, P=Number of annual Installment,
C= Total interest payment, A=Amount
of loan, N= Total number of installments.
3)
The Flat Rate Method: The
working formula of this method is.
TAI
RI= ------- X100
TAL
Where, RI=Rate of interest, TAI=
Total Amount of interest, TAL=Total amount of loan.
3.7. Velocity of credit creation of
GB:
The multiplier /velocity of credit
creation is defined as the amount by which the GB raises its initial fund
through its short term and weekly recovery process. The working formula of the
velocity of credit creation is.
n
IC+∑
i
V=
--------------- X100
IC
Where, V=velocity of credit
creation, X= Amount of credit per week and IC= Amount of initial credit.
CHAPTER-4
CREDIT
POLICY PROGRAM OF GB PARILA POBA BRANCH RAJSHAHI
4.1
Introduction:
Generally Credit means lending
money to individual’s or firms on specific terms relating to interest and
repayment.
Credit is fundamental important
function of commercial bank, which determine whether a bank operating
successfully revitalizing it position or degenerating day by day.
4.1.
Objectives of credit:
v To
accelerate economic development of rural people
v To
participate in poverty alleviation.
v To earn optimum
profit.
v To make
efficient in investment of bank fund.
v To meet
working capital need of trading business.
v To satisfy
working need of any house repair.
v Etc.
4.2.
Branch credit program
1. The Basic loan. It used any purpose. Size amount is Tk. 1000 to until
Tk10000.
Table-1 : Grameen bank Parila
poba branch .
Total the basic loan disbursement
form 31.12.01 to 15.12.05 (in Tk. Lack)
|
Year
|
Lending
|
Recovering
|
|
2001
|
194.22
|
85.44
|
|
2002
|
204.42
|
94.33
|
|
2003
|
225.00
|
104.22
|
|
2004
|
284.44
|
115.66
|
|
2005
|
342.80
|
234.74
|
Source: GB Parila, Poba
Branch,Ledger
By plotting
the given above table, we get the following Multiple Bar & Trend line of
Total lone:
Comment:
According to trend line, we see that there is more increasing Lend money then
Recover. Year 2004-05,Recovering is more then other years. Grameen Bank has
increased Lending of the Basic loan.
2. Education
loan:
Table-2
Green
bank
Parila poba
branch Rajshahi
Total
Education loan payment firm 31.12.01 to 15.12.05
(in Tk.
Thousand)
|
Year
|
Amount of
Loan
|
|
2000-01
|
14240
|
|
2001-02
|
27760
|
|
2002-03
|
30000
|
|
2003-04
|
13500
|
|
2004-05
|
65050
|
Source: GB Parila, Poba Branch,
Ledger
By plotting the given in above
Table-2,we get following Bar & trend line:
Comment: According to trend line,
we see that education loan is increased year 2004 –2005. But year 2001 &
2003 is not satisfactory.
N.B.:- This
loan is not started to Recover. All student is study continue.
3. The
housing loan.
Table-3
Grameen
bank
Parila poba branch.Rajshih.
Total housing
loan: 31.12.01 to 15.12.05
|
Year
|
Lending
|
Recover
|
|
2000-01
|
105000
|
75000
|
|
2001-02
|
125000
|
90000
|
|
2002-03
|
172000
|
86500
|
|
2003-04
|
195000
|
112000
|
|
2004-05
|
201000
|
135000
|
Source: GB
Parila, Poba Branch, Ledger
Comment:
Above Graphical presentation, we see that year 2003 to 2005 Housing
loan is increasing slowly. The
difference between Lending and Recovering is more in the year 2002-2003.
4. struggling
loan: Branch data is not available because it is new program in the branch.
CHAPTER-5
THE IMPACT OF GRAMEEN BANK ON WOMEN EMPOWERMENT
5.1. Introduction:
One of the main objectives of the Grameen bank is to remove the adverse Social-
economic position of the rural women and thereby to empower them.
5.2. Self-employment creation:
It is seen that the total borrower
could create self-employment opportunity after their enrolment in GB; on the
other hand the total respondents could not start any kind of economic
activities for their own employment.
5.3.
Literacy status:
It is seen that the literacy status of the
female borrowers remains almost constant. It has improved in case of
respondents after joining the GB.
5.4.Vocational knowledge status:
It is seen
that GB’S credit program could not help the borrowers to secure any kind of vocational knowledge to make
their earning source easier.
5.5.Freedim
in social decision-making:
The impact
of the GB on the creation of social freedom for the borrowers is not
significant.
5.6.
Freedom in political choice:
The freedom
in political decision found the women after their joining in the GB. It is seen
that indicator remains almost the same before and after their joining in the
GB.
5.7.
The status of legal right:
It is seen that the impact of the
programs of the GB on the legal right of the female borrower is not
significant.
5.8.
Changes in mental oppressions:
It is seen that mental oppression of female borrows have increased after
their joining the GB.
5.7. Brief summary:
Women empowerment is shown as one
of the vital objectives of GB and 100% GB borrowers of the sample area are
women in the present chapter; the changes of women empowerment in terms of
various social-economic and social- political indices.
CHAPTER-6
GRAMEEN BANK : OPERATIONAL
PERFORMANCE BRANCH/WHOLE BANK
6.1.
Introduction:
Grameen Bank is a bank and it
cannot service for long without paying due economic, consideration of its
operation social profitably may be the basic goal of GB but accounting
profitability is on less important and it should be take in consideration. If
any organization fails to generate sufficient after tax profit for its
shareholders and for forth growth, its long-run existence may be threatened.
Realizing the gravity of the problem attempt has been made in this chapter to
evaluate the operational performance.
6.2.
Key concepts:
1. Profit
and profitability:
The term profit and profitability
are not sonorous profitability differs firm profit, because profitability does
not reveal how much is earned (gained) rather how efficiently earning are does.
Profitability is a relative term (i.e. ratio) whereas profit is an absolute
term. The profitability is calculated to measure the operating performance of
an enterprise.
2. Working
funds:
It includes capital reserve, deposits
and borrowing. This working fund figure (WF) represents balance sheet total
less contra item.
3. Earning
Assets:
The earning assets of a bank include
loans and investments. From the viewpoint of income generation, assets of a
bank can be grouped into two classes. Earning and Non-earning, loans including
investment fall in the first group and remaining items in the assets side of a
bank balance sheet fall it’s the second group.
4. Common
equity:
It includes total paid up amount of
ordinary shares and reserve for undistributed profit.
5. Volume of Business:
Volume of business stands of total
advances plus total deposits of a bank on a balance sheet date.
6.
Personnel Expenses:
It includes salaries, allowances,
etc. it the most significant cost items from the paint of view of management
efficiency.
7. Spread:
it is the excess of interest income over interest expenses. Thus spread present
the different between interest income and interest expenses.
6.3.Analysis and Interpretation Operation
Performance.
Table-1
Profitability
ratios of Grameen bank during 1992 to 1996
|
Year
|
Net profit as % of EA
|
Net profit as % of WF
|
Net profit as % common Equity
|
Net profit as % VOB
|
Spread % of common equity
|
Income as % of expense
|
Personnel exp as % of Total
expenses
|
|
1992
|
(0.009)
|
(0.008)
|
(0.33)
|
0.0009
|
298.29
|
99.27
|
50.02
|
|
1993
|
0.10
|
0.80
|
4.79
|
0.08
|
419.06
|
100.73
|
44.07
|
|
1994
|
0.15
|
0.13
|
7.52
|
0.14
|
390.71
|
259.42
|
34.55
|
|
1995
|
0.10
|
0.08
|
4.76
|
0.09
|
270.79
|
100.67
|
31.25
|
|
1996
|
0.11
|
0.10
|
5.57
|
0.12
|
404.99
|
100.67
|
34.56
|
Source: annual
report of GB for relevant year / credit facilities for the poorest of the poor:
A study on Grameen bank in Bangladesh.
Mohammad Main
Uddin, Assistant Professor, department of AIS.RU.
From the above
analysis we may conclude that GB profit performance in relation to earning
assts was very poor and dissatisfactory. It also suggests that GB could not
utilize its earning assets efficiently and effectively. because percentage of
earning assets and working fund is very low.
CONCLUSION:
The study suggests
that the economic health of GB was weak although its social contribution was
too high during the period of review. It could not even generate minimum amount
of profit to compensated the opportunity cost of equity funds invested in this
organization profit in relation to working fund, volume of business and earning
assets also corroborate poor operational performance of GB .The main cause
identified in the study is the failure of the bank to control its non-interest
expenditure is a vital issue and emphasis on the same can make a significant
contribution to wards accounting profit. Moreover, being a service industry,
GB’s profitability also depends on efficient use of its productive resource
including manpower resource.
CHAPTER-7
MAJOR
FINDINGS OF THE STUDY
Chapter-1. My study is the field
credit policy of Grameen bank with reference Rajshahi District, Parila poba
Branch. In this chapter I had given internship definition, objectives,
significance, (objectives and need of the leaner) limitations, methodology of
the study as my ability.
Chapter-2. It is seen that GB has
established a wide-ranging network of group-based credit program in rural
Bangladesh till –2004. GB disbursed a total of Tk 20,846,367,700
(Balance sheet –2004) .The average rate of loan recovery 93% often. The
obligations of weekly repayment and saving deposits to GB make the borrowers
scope limited to use the full amount of loan for a reasonable period to
generable sustainable self –employment and income by the borrowers and their
dependents. On the other hand it enhanced GB’s gross profit earning by creation
higher velocity of credit creation. From the rapid expansion of GB’s credit
program, it can be assumed that there is no problem in demand side. GB given
only 8.5% interest on various savings deposit of the borrowers including the
share value paid by the borrowers which is calculated on the average balance of
saving deposits by borrowers. Also GB fund is depended foreign country loans.
Chapter-3. In this chapter we are
given definition the credit and it major characteristics, types (time basis),
various involve organization, methods of interest, and velocity of credit
creation of GB.
Chapter-4.In this chapter we find
that objectives of credit is, to accelerate economic development of rural
people and, to earn optimum profit. Basic loan, Year 2002 to 2003 lending
increase slowly and 2004 to 2005year lending growth is high. And recovery
position is high year 2005also lowest loan recovery year is 2001.
On the other hand, Education loan
is quickly high, year 2005and year 2001and 2004 is slow position bar chart is
same, also year 2002 and 2003 loan chart position same. But education loan is
not recovery because it is long-term process and some year ago it lending process
is started.
The housing loan is growth year
2002 to 2004 slowly and recovery position of loan is increase slow motion.
Struggling loan (beggar’s loan) Branch data is not available because it is new
program.
Chapter-5. A very few of the female
borrowers were found to handle the credit on their own. Almost in all cases the
borrowers transfer the loan to male members immediately after receiving it.
Event in most cases the female borrower could not even apply their opinion
regarding the use of credit. As a result the opportunity of self-employment has
not been credited for the females member-including the borrowers among the
sample households after their joining the GB.
Chapter-6. The poor or negative
profitability was due to huge operational expenses like personnel expenses and
other current and non –current expenses, which have contributed to this
unhealthy profitability position; But GB’s performance should be evaluated
through it social contribution which is so high that the same can not be
measured Through any statistical tool. Moreover, GB’s management is so dynamic
and pragmatic that they have already diver sifted its business. All it sister
organization of GB are now highly profitable and from those organizations the
management could subside the leading activities if needed.
Other Information of GB (Branch):
q The Basic
loan increased Day by day. GB of parila poba branch distribution large amount
of money.
q Education
loan increased year after year. Now in this time it is not recovery because it
is loan terms process.
q Struggle
loan in not significant because in this branch the project o struggle loan
started current year.
q Housing
loan increase slowly
q In this
branch member of Polly phone increased quickly. It is good for our
communication.
q Interest of
the basic loan collected by the right methods.
q Loan
distribution program is very good GB Parila Poba Branch, Rajshahi.
q GB Parila
Poba Branch, Rajshahi, Transition processing is not good.
q Accounting
information system and Management information system to started very quickly
because it used tradition approach.
q In this
branch computer must be used and computer training given all stuff’s.
CHAPTER-8
Recommendations:
To make GB programs effective, some policy prescriptions are suggested
here.
- Grameen Bank should lower the interest rate on lending and
interest rate should be calculated according to reducing balance method.
- Size of loan must be raised initially at least the Tk15000 in
order to fulfill the demand of the borrowers.
- Government should monitor entire of GB funds including the fields
of its sister organizations.
- Instead of opening new branches, GB should focus on the existing
ones and work interactively in order to eliminate provably drastically.
- GB should provide loan in terms of capital goals and basic
vocational training in the initial stage rather that giving loan in cast.
- To archive the objectives of education and Human development,
borrower, Households should be given free education loan from the
obligatory saving deposit fund of the borrowers in GB.
- Both male and female youth literal and potential person of poor
households must be undertaken in to program to make the loan more
effective.
- To ensure the ownership of the member borrowers should also be
preserved.
- GB should start recovering the loan after six month from
disbursement and installment should be monthly, so that the borrowers can
have a reasonable time to general some income before starting to repay.
CONCLUSIONS:
From the findings of the study
following conclusions can be draw.
- GB has established in the rural areas a strong parallel money
market, which is actually usurious type in nature.
- GB could not reduce the dependence of rural poor on informal
moneylenders.
- There is no relationship between GB and it borrowers regarding
ownership of Grameen Bank.
- The contribution of GB credit in the income generated by the
borrower households is negligible.
- Grameen Bank has no significant impact on traditional rural power
structure.
- Female borrowers have no significant control over the use of loan.
- The credit program of GB is hardly to education and human
development.
- The impact of developmental slogans of GB on the borrower household is in significant. The weekly recovery of GB loan is not significant generated firm the retune of GB credit.
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