Grameen bank
we should very carefully proceeds on to solve the above problem. We should simultaneously take efforts to reduce the growth rate of
population as well as to make prudent and maximum utilization of our existing manpower.
population as well as to make prudent and maximum utilization of our existing manpower.
landless and marginal farmers as well as alleviating poverty from the poor and neglected section of our rural-population.
As, such people have no property to provide offer the same as mortgage or security the bank envesages financing without
securing the loan amount by mortgage. The bank, in 1978 started its journey in the form of a small project at the village
Jo bra, adjective to the University of Chittagong. The then Managing Director of Bangladesh Krishi Bank assisted the professor
by allowing to open a sub-office in the said village. He was vested with the full authority and responsibility to maintain and to
carry on the functions of the project independently. Although the progress of the project was really propitious but it was neither
rectified nor any banker came forward to patronize it.
As, such people have no property to provide offer the same as mortgage or security the bank envesages financing without
securing the loan amount by mortgage. The bank, in 1978 started its journey in the form of a small project at the village
Jo bra, adjective to the University of Chittagong. The then Managing Director of Bangladesh Krishi Bank assisted the professor
by allowing to open a sub-office in the said village. He was vested with the full authority and responsibility to maintain and to
carry on the functions of the project independently. Although the progress of the project was really propitious but it was neither
rectified nor any banker came forward to patronize it.
Critics of the project held the opinion that a small project invigorating lending without security might appear classifications but for a large banking institution implementable of the above idea would never be possible. But it was the conviction of the professor that if real well being of the landless and marginal farmers are desired they should be advanced credit without demanding security/mortgage (of property) from them. However sub-branch of Bangladesh Kris Bank at the village Jo bra was an Emile of success which created an ideal instance of banking without receiving property as mortgage from the beneficiaries. Yet renowned bankers of the country continued to oppose the above scheme. In the of such opponent situation the than Deputy Governor of Bangladesh Bank Mr. A K Gangplank came forward to assist the project of Mr. Unfussy. He in consultation with the Managing Director of Bangladesh Kris-hi Bank (BKB) and other Nationalized Commercial Banks decided to make an extension of the Cobra experience as a project |
Credit is an important component which plays significant role in the process of production. If poor and neglected section of our countries population could be timely facilitated with needed amount of credit they could have employed themselves with income generating activities. The above Postulation inspired the prop-under in formulating the idea of Gravamen Bank-project. Historical Background: Professor Dr. Mohammad Unfussy of Chittagong University Propounded the idea of Gravamen Bank in the year of 1976. Its financing activities aims at improving the sociology-economic condition of the |
of Bangladesh Bank in a suitable district of the country. In pursuance of the above decision the district-Tang-ail was selected for
undertaking such a project at the leadership of the Professor Dr. Muhammad Unfussy. This project also came out successful. Never the less no banking institution responded positively and showed sign of acceptance of the about project.
Under the above situation the propounded of the project Dr. Unfussy made a proposal to the Bangladesh Bank to convert the project into a commercial Bank which was disregarded at the bankers meeting. Later on he made another proposal to the finance minister of the then government seeking government's participation in the project and recognition thereof as a full fledged commercial bank. On the bsis of the above proposal Gravamen Bank-ordinance was passed in the year of 1983 by the govt. of Bangladesh. The above ordinance which ratifies the establishment of Gravamen Bank is the result of reiterated approaches to different authorities and efforts of the Professor Dr. Muhammad Unfussy of the Chittagong University.
undertaking such a project at the leadership of the Professor Dr. Muhammad Unfussy. This project also came out successful. Never the less no banking institution responded positively and showed sign of acceptance of the about project.
Under the above situation the propounded of the project Dr. Unfussy made a proposal to the Bangladesh Bank to convert the project into a commercial Bank which was disregarded at the bankers meeting. Later on he made another proposal to the finance minister of the then government seeking government's participation in the project and recognition thereof as a full fledged commercial bank. On the bsis of the above proposal Gravamen Bank-ordinance was passed in the year of 1983 by the govt. of Bangladesh. The above ordinance which ratifies the establishment of Gravamen Bank is the result of reiterated approaches to different authorities and efforts of the Professor Dr. Muhammad Unfussy of the Chittagong University.
Under the above situation the propounded of the project Dr:
of Bangladesh Bank in a suitable district of the country. In pursuance of the above decision the district-Tang ail was selected for
undertaking such a project at the leadership of the Professor Dr. Muhammad Unfussy. This project also came out successful. Never-the
less no banking institution responded positively and showed sign of acceptance of the about project.
Under the above situation the propounded of the project Dr. Unfussy made a proposal to the Bangladesh Bank to convert the project into
a commercial Bank which was disregarded at the bankers meeting. Later on he made another proposal to the finance minister of the then
government seeking government's participation in the project and recognition thereof as a full fledged commercial bank. On the bsis of the
above proposal Gravamen Bank-ordinance was passed in the year of 1983 by the govt. of Bangladesh. The above ordinance which ratifies the
establishment of Gravamen Bank is the result of reiterated approaches to different authorities and efforts of the Professor Dr. Muhammad
Unfussy of the Chittagong University.
undertaking such a project at the leadership of the Professor Dr. Muhammad Unfussy. This project also came out successful. Never-the
less no banking institution responded positively and showed sign of acceptance of the about project.
Under the above situation the propounded of the project Dr. Unfussy made a proposal to the Bangladesh Bank to convert the project into
a commercial Bank which was disregarded at the bankers meeting. Later on he made another proposal to the finance minister of the then
government seeking government's participation in the project and recognition thereof as a full fledged commercial bank. On the bsis of the
above proposal Gravamen Bank-ordinance was passed in the year of 1983 by the govt. of Bangladesh. The above ordinance which ratifies the
establishment of Gravamen Bank is the result of reiterated approaches to different authorities and efforts of the Professor Dr. Muhammad
Unfussy of the Chittagong University.
Objectives of Gravamen Bank :
The main objectives of the bank are as follows :- (1) To extend banking facilities to the poor and neglected section of the country's population. (2) To remove exploitation of the poor people by village/rural-money lenders. (3) To create employment opportunity for the unemployed people. (4) The vicious circle "poor income-poor savings-poor investment-poor income" is to replace by another |
Evaluation/Criticism & conclusion :
Gravamen Bank performs all sorts of banking activities through its zonal, area and barns offices swattered in the different parts of the country. Uphill Feb. 1990 number of branches of Gravamen Bank was 677 ramified in the districts of Chittagong, Tang ail, Purana, Dhaka, Patuakhali, Boga, Sylphs, Rajahs and Dinosaur. Upto the above period bank since its inspection facilitated a number of 662263 landless poor people with an amount of Tk. 572.00 corer and during the same period recovered an amount of Tk. 464.00 corer from the beneficiaries/ borrowers. It is to be noted here the 89% of its borrowers are women/female.
Evaluation/Criticism & conclusion :
Formation of the group comprising five members and observance of some rules and regulations by the group members forms the basis of receiving
credit from the Gravamen Bank. Above lending policy yielded some auspicious result such as generation of employment opportunity and augmentation of
production in the country. Upto April,1990 a number of 662263 male and female were provided with the employment opportunity which is undoubtedly a
positive and remarkable achievement for the country. A survey conducted by BIDS unveils that within two years and a half the actual income of landless
borrowers has increased by 26% over the corresponding figure of the previous year. Another study by FAO reveals that the Gravamen Bank played significant
role in increasing income, production, consumption as well as in generating employment opportunity in the country.
Thus it may be concluded that Gravamen Bank creates employment opportunities, raises level of
Evaluation/Criticism & conclusion :
Formation of the group comprising five members and observance of some rules and regulations by the group members forms the basis of receiving
credit from the Gravamen Bank. Above lending policy yielded some auspicious result such as generation of employment opportunity and augmentation of
production in the country. Upto April,1990 a number of 662263 male and female were provided with the employment opportunity which is undoubtedly a
positive and remarkable achievement for the country. A survey conducted by BIDS unveils that within two years and a half the actual income of landless
borrowers has increased by 26% over the corresponding figure of the previous year. Another study by FAO reveals that the Gravamen Bank played significant
role in increasing income, production, consumption as well as in generating employment opportunity in the country.
Thus it may be concluded that Gravamen Bank creates employment opportunities, raises level of