Analysis of Grameen Bank & Micro Finance Industry in Bangladesh: Internship Experience Perspective

Abstract

This report is an analysis on micro financing sector in Bangladesh. The main purpose of this report is overview the current scenario of microfinance industry in Bangladesh and Grameen Bank. The overall growth, trend and maturity of these sectors. Their targeted customers, competitors etc. This report represents the overall scenario of or MFI sector in Bangladesh. Their operational activities increased every year. New branches of MFIs, new NGOs increasing every year. Their members also increased every year. Foreign investors are registered every year, for opening new NGOs in our country. Finding says that, the micro credit loans taken at the time of harvesting seasons. There are few external factors this industry faces, like interest rate, Inflation, foreign exchange rate etc. When a MFI gives loan, if they don’t have fund then they need to collect fund from different banks, then if the interest rate goes high, it will be causes major impact. Because all time PKSF don’t have enough fund. When inflation rate goes high, then this sector also faces loss. There are few technological factors, like cashless transection system, ATM facilities, Mobile wallet; micro financing sectors need to concern more about those factors. Tax, corruptions also have major impact on this sector. Government need to reduce taxes for non-commercial activities, done my MFI. Government need to invest more in this sector. The fund needs to increase for PKSF. So, that new NGOs can get benefits. Though this sector is dominated by Grameen Bank, BRAC, ASA, it’s hard for new NGOs or MFIs to survive. They need huge investment, if they want to cope up with the competitors. But there are too many opportunities, like Digitalizing whole industry, increase capital in PKSF they whole sector will be benefited. The method of analysis includes trend and growth, ROA and many mores. Grameen Bank is top MFI in Bangladesh. Their share owned by government and the members of this bank. Last two decades they are amazingly doing well. They have almost 9.4 million members. Their 95% members are female. Most of those members are from rural area and poor. They provided few types of loans, Basic loan, entrepreneur loan, housing loans and many mores. Their operational work, mainly done in branch office. The rest of the official works done in head office. They have total 13 board of director. They need to operate their service worldwide, because they have worldwide recognition. They need to concern more on digitalized platform. This will give them extra benefit in MFI sectors. The major areas of weakness require further investigation and remedial action by management. Grameen Bank need to concern more about less training program, so that intern get chance to know more about the organizations. They need to open branches in city, need to start ATM service, providing mobile banking service. They also need to recruit more peoples in research and development department, need to more concern on research. If management can took proper action, I think they should be benefited. I also tried to find out my weakness, need to work more on them. There is little limitation; one of them is limitation of current economic situation of country, who took micro credit loans. There is not enough information about the overall scenario in this sector. Because most of the data collected by written documents. This sector is not fully digitalized. Decision makers in this sector need to concern more about this issue.