1. “BANKER TO THE POOR”
[Micro-Lending and the Battle Against World Poverty]
An Autobiography of ‘Muhammad Yunus’

2. Policy of Presentation
 About the Author
 Awards to the Muhammad Yunus
 Purpose of the Book
 About Grameen Bank
 Learning’s of the Group
 Why Others should Read this Book
 Critics
Father of Micro-Lending

3. About Author
(Professional Life / Balance Sheet)
1940, Chittagong, India, (Now Bangladesh)
Third of fourteen Children ( Five of them died in
infancy)
BA & MA (Economics) at Dhaka University
Ph. D ( Economics) from Vanderbilt University (
USA)
In 1972, Head-of-Department (Eco) of
Chittagong University Idiot Box

4. About Author
(Personal Life / Profit & Loss Account)
 1st Marriage Account (1970)
 Amount (Wife): Vera Forostenko
 Interest (Kid): Monica ( March 7, 1977)
 Repayment : No, Divorced ( Dec. 1977)
 Account Place: USA
 2nd Marriage Account ( April, 1980)
 Amount (Wife): Afrozi
 Interest (Kid): Deena Afrozi Yunus ( 24 January
1986)
 Repayment : Yes, Now No divorce
 Account Place: Bangladesh
Teacher & Researcher in Adv. Physics @ University of Manchester

5. Muhammad’s Role Model
“Muhammad was influenced by his
mother’s love for helping the poor,
and her willingness to share
whatever the family had with the
less fortunate. This had a lasting
effect on him”
‘Poverty is a Result of Mismanagement of Resources

6. Muhammad’s Objective
Muhammad Yunus had following objectives
behind set up Grameen bank
 To provide credit facilities to as many low
income and unemployed people
 As possible, to improve the quality of their
lives
And, to give them the opportunity to live
Social Revolution

7. Recognition
He has received more
than seventy-seven (77)
awards for his contribution
to society & mankind
Australia @ 1998: Sydney
Peace Prize, by the Sydney
Peace Foundation
 Jordan @ 2000: King
Hussein Humanitarian
Leadership Award, by King
Hussein Foundation
 UK @ 2003: World
Technology Network Award
Nobel Peace Prize in 2006 with joint of Grameen Bank

8. Conti……
 Spain @
2005:Foundation of
Justice
 USA @ 2006: Global
Citizen of the Year
Award, by Patel
Foundation for Global
Understanding
 Germany @ 2007:
Vision Award by Global
A Bona fide Visionary

9. Purpose of Book
“To tell the story of Grameen
bank to every one and to
motivate people to join those
who believe in the possibility of
creating poverty free world and
have decided to work for it.”

10. MF and SB: two approaches successfully
tested by Yunus
Microfinance and Social Business
combine technical and social
innovation and use the strengths of
the market economy for the benefit of
the fight against poverty.
 MF and SB follow a business model to
ensure their sustainability and
development, but their core
mission is social.
 Beyond the techniques used, the goal
of MF and SB is to give back their
dignity to poor people
 In contact with reality, innovative
solutions have been invented that
need to be adapted to local conditions.
 Address the risk of mission drift –

11. The Poor in Bangladesh before Yunus
 Did not have enough life survival things to
feed his/her family
Poor in Bangladesh involved in Small
Business—i.e., Entrepreneurs
Outside of the Formal Banking System
No Access to Loans or Credit
No Collateral
Credit is a Powerful Weapon

12. What is Grameen
Grameen is a Self-help organization,
is not a bank. Grameen is all about
personal and economic development, and
where is development there is change.
People improves their lives, their lives
change, and suddenly the situation is fluid.
The change which occurs is not a victory
over another person, but over the
confidence of abject poverty. And ,
Improving one’s living standard is intrinsic
to the process of change.
It’s not people who aren’t credit worthy. It’s bank that aren’t people worthy

13. Vision and Mission of Grameen Bank
Mission
To inculcate the sprit of
savings access loans and
utilize the Money a
sustainable basis
Vision
A strong microfinance
institute ready to take on
the challenges of every day
life for all members mainly
improvement of their well
Unknowingly, He Believe in KISS Formula

14. Introduction to Micro-Lending: History
How did all start?
On the field in Jobara village (near to
Chittagong) with his college students,
Prof. Yunus saw that even poor people
and women need loans. They can have
activities and can repay. Therefore, he set
up financial institutions with a social
mission. Listen to the needs and
constraints of the excluded & offer them
adapted financial tools to empower
themselves (solidarity groups).
Sufia Begum Khatun, 26 Dollars

15. Working Principal of Grameen Bank
―Conventional banks ask their clients to
come to their office. It’s a terrifying place for
the poor and illiterate. … The entire Grameen
Bank system runs on the principle that
people should not come to the bank, the
bank should go to the people. … If any staff
member is seen in the office, it should be taken
as a violation of the rules of the Grameen
Bank. … It is essential that [those setting up a
new village Branch] have no office and no
Bicycle
place to stay. The reason is to make us as

16. How to Finance to Rural Poor
 In 1978, He attended a seminar, which was
organized by Central bank
US experts view: Lending to the poor setting up
interest rate at a higher level.
Yunus View: If you lend to farmers, they would
borrow regardless of what interest you charge.
“I would pay formers a negative interest rate.
I would lend them 100 taka, and if a former
returned 90 to me, then I would forgive for
repayment of the 10 taka. The real problem
with lending to formers is getting the
principal back, not interest rate. “

17. Grameen Bank Lending Model
 Group: 5 Members ( Self-formed and group
approved all loans request)
 Center : 4 to 8 Groups
 Center Meeting : Weekly
 Center Manger : Grameen Bank Employee
 Center Chief : A member ( Female)
 Loan request & Saving Deposit : At centre
 Loan Distribution : At Bank Branch
 If one member default, then no more loan to group
 Group members collectively responsible for loan
 Training program also available
No Legal Instruments & No Collateral

18. The Repayment Mechanism
One year loans
Equal weekly installments
Repayment starts one week after the loan
Interest rate of 20%
Repayments amount to 2% per week for fifty
weeks
Interest payment amounts to 2 taka per week
for a 1000 taka loan
Contribute to the Group Fund = 5% of Loan
Amount
No Judiciary in seeking repayment of loans

19. Why Lend to Women rather than to Men
 Bangladesh is gender-baised.
 Credit given to women brought faster
changes in house hold than men.
 Given the smallest opportunity, women
putted extra effort to get out from poverty.
 Destitute women adapted quicker and better
to self-help process than men.
 Women have more self-exploration and self-
discover attitude than men
94 % borrowers of Grameen Bank

20. Grameen Bank Workers
Women Men
Recruited Locally Recruited Nationally
At a time when they No such type of
finished their studies Condition Involved
Either are waiting to Does not matter
be married about marital status
Preference to those, No such type of
whose husband is condition involved
Jobless
Age: Not more than 27 years / Qualification: PG with B grade.

21. 16 Decisions
 We shall follow and advance the four principles
of Grameen Bank- Discipline, Unity, Courage
and Hard work – in all walks of out lives
 Prosperity we shall bring to our families
 We shall not live in Rundown houses. We shall
repair our houses and work towards
constructing new houses at the earliest
 We shall grow Vegetables all the year round.
We shall eat plenty of them and sell the surplus
 During the Plantation seasons, we shall plant
as many seedlings as possible

22. Conti…
 We shall plan to keep our Families small. We
shall minimize our expenditures. We shall look
after our health
 We shall Educate our children and ensure that
they can earn to pay for their education
 We shall always keep our children and the
Environment clean.
 We shall build and use pit-latrines
 We shall Drink water from tubewells. If it is not
available, we shall boil water or use alum
 We shall not take any Dowry at our sons'
weddings, neither shall we give any dowry at our

23. Conti…
 We shall not inflict any Injustice on anyone,
neither shall we allow anyone to do so.
 We shall collectively undertake Bigger
Investments for higher incomes.
 We shall always be ready to Help Each Other.
If anyone is in difficulty, we shall all help him or
her.
 If we come to know of any breach of Discipline
in any centre, we shall all go there and help
restore discipline.
 We shall take part in all Social Activities

24. Grameen Bank Success Story
 In 1976
Only a small single hut
Students work as volunteers
Number of borrowers = 42 women
 According to the book, it has now
1,181 branches & 11,777 employees
Total Loans given $174.78 billion
 2.4 Million Families in Rural Bangladesh have been
served
98% repaid
95% borrowers are women
250 Institutes Around the World Operate on Grameen Bank Concept

25. A Comparison with Conventional Banks
Conventional Banks Grameen Bank
People should come to the The Bank should go to the
bank people
Staff members work in-side Staff members work out-side
the bank the bank
Success of bank measured Success measured by the less
by the repayment rate miserable and difficult lives of
our borrowers
No visits at borrowers home Weekly and monthly visit at
borrowers home
Here, Credit means Interest Grameen means Credit means
Trust
Even single penny loan has All millions of dollars loans have
Govt. Banks Means Charity Organization for Rich
legal cover no legal cover

26. Against the Mind-Set
Shariah Law: According to this law, ban on the
charging the interest rate on lending. And, this law
can not apply to Grameen bank, where a borrower
is also the owner of the bank
Rumors that spread against the Grameen Bank
Project
Will convert you to Christianity
Will steal your House and Property
Will run away with your money
 Is a part of international smuggling ring
Wants to destroy Islam by taking women out of
Purdah
Managers always run behind women

27. Map of Grameen Bank’s Zones
TANGAI
L
DHAK
A
CHITTAGOA
NG

28. Birth of Grameen Separate Corporate Entity
In 1982, He met with Mr. Muhith in BRDA
during future option for Grameen Bank
Project
 In new Govt. Mr. Muhith became finance
minister
Mr. Muhith took proposal directly to the
president after facing strong opposition from
the all chief-ecxecutives of Govt. owned bank
in a central bank meeting
And end of September 1983, president had
signed the proclamation and Grameen bank

29. Hierarchical Structure of Grameen Bank
Zones
Areas
Branches
Centers
Groups
Zonal Manager & Zonal Office Has to be done Actual Operations

30. Ownership Structure of Grameen Bank
Yunus Muhith Preside In 1985
Wante Reserv nt
d ed Approv
ed
Borrow
60 % 40 % 40 % 75 %
ers
Govern
Muhith told to Yunus this only one way to get Bank
40 % 60 % 60 % 25 %

31. Learning’s of Group
 The strength of women is far greater than our
imagination
Smile Girls Smile
Fortune @ bottom of pyramid
 Small is Big
Work life Balance
Worst situation could be turn in to better situation
 Utilitarianism :An action is right if it tends to
produce, the greatest amount of good for the
greatest number of people. They will Change the Country
Change the Attitude of People,

32. Why Others should be Read this Book
From Social Perspective
Muhammad Yunus has faith "If you have
given tools to the people, and they use with their
natural abilities and their curiosity, they will
develop things in ways that will surprise you
very much beyond what you might have
From Business Perspective
expected‖
―Today, The brand Grameen has 4 profit
companies and 13 organization. It is all result of
strong social image of brand Grameen. Unlike
many other companies, brand Grameen totally
concern about human well-being rather than

33. The Grameen Family of Companies
For Profit
Grameen
Bank……………………………………………1983
Gonoshasthyaya Grameen
Textile………………………..1995
Grameen Cyber
net……………………………………….1996
Grameen Phone
…………………………………………..1996
Not for Profit
Grameen bankBangladesh, 13 non profit organizations,
In also has Grameen is Like as TATA

34. Critique
 Book Quality
 mostly focuses on micro-credit and the Grameen Bank
 well-written
 quality is derived from the content
 His points:
 Well argued and effective
 Uses individual examples
 Uses statistics to better grasp the context
 Contribution to the field
 It ―is‖ the field to micro lending
 Relations with World leaders ensure field development
 Negative atitude towards Govt. banks and its
employees

35. A Special Request to Our Friends
―There is one thing [I don’t like about Grameen] . I used
to enjoy beating my wife. But the Group came to me
and argued with me and shouted at me. Who gave
them the right to shout at me? The borrowing group
threatened they will get really mean if I beat my wife
again‖
( Husband of borrower to Muhammad Yunus )
“Hence, Keep your Life Partner away from this
book, because. Immediate after from reading this
book, she will be able to get an idea, how to get
more money from you. Eventually, You will lose
control over your Life Partner”

36. Stake Holders in this Presentation
Muhammad Yunus
Alan Jolis
Anant Kumar Chaudhary
Hemant Singh Katiyar
Manish Singh
Shailesh Kumar Agrawal
And, Poorer of Bangladesh and Grameen Bank
Staff
Thank You all my Classmates for Paying Attention

37. I strongly believe that we can create a
poverty-free world, if we want to.... In that kind
of world, [the] only place you can see poverty
is in the museum. When school children will be
on a tour of the poverty museum, they will be
horrified to see the misery and indignity of
human beings. They will blame their
forefathers for tolerating this inhuman condition
to continue in a massive way....
—Muhammad Yunus
Sufia Begum Khatun & Jobra Village