Transcript Mohammad Abdul Mannan - Islamic Microfinance- Bangladesh Experience

Islamic Microfinance:
Bangladesh Experience
Mohammad Abdul Mannan
Managing Director & CEO
Islami Bank Bangladesh Limited
Demography &
Area
Population
Literacy
GDP
Per Capita
Inflation (PP/Average)
Reserve
Export
Import
Foreign Remittance
: 147,570 km2
: 168.9 million
: 61.5%
: $ 205.3 billion (44th)
: $ 1,314
: 5.65% /6.10%
: $ 27.5 billion
: $ 31.6 billion
: $ 43.2 billion
: $ 15.3 billion
Next 11 emerging economy
Gained the status of Lower middle income country
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Banking Sector
3
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•
State owned Banks
Specialized Banks
Foreign Banks
Private Banks
:5
:3
:9
: 39 (Islamic Banks-8)
(Conventional Banks-31)
•
•
•
•
•
•
Total Banks
Branches
Manpower
Total Deposits
Total Credits
Number of Deposit Accounts
: 56
: 9263
: 160,000+
:$100 billion
:$87.7billion
: 76.80 million
3
Islamic Banking in Bangladesh
• Full Fledged Islamic Banks
:8
• Islamic Banking Branches
: 19
• Islamic Banking Windows
: 25
• Number of Branches
: 960
• Deposit
: $20.8 billion
• Investment
: $18.8 billion
• Manpower
: 27837
4
Microfinance in Bangladesh
• Bangladesh-the birthplace & hub of microfinance
• Grameen model by Noble Laureate Prof. Dr. Md. Yunus Started in 1983
• Microfinance inroads in finance landscape of country
Features:
• General Credit program
• Group based approach/ membership system
• Centre based arrangement
• Individual Savings
• Insurance coverage
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Microfinance Activities in Bangladesh
No. of MFIs
Clients
Loan Portfolio
Loan Portfolio Growth
Recovery Rate
Savings
: around 2100
: 30 million
: US$ 5.5 billion
: 15%
: around 96%
: US$ 4.1 billion
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Market Share of Microfinance in Bangladesh
Sl.
Name of MFI
Establis
Investment Share
hment
1976
1,234.92 23%
Savings
Share
2,427.38
60%
1
Grameen Bank
2
BRAC
1974
1,436.60
26%
515.46
13%
3
ASA
1992
1,284.46
23%
568.54
14%
4
RDS (IBBL)
1995
265.00
5%
87.77
2%
5
BURO BD
1990
249.06
5%
79.36
2%
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TMSS
1980
177.11
3%
58.01
1%
7
SSS(Society for
social service)
1986
110.18
2%
52.54
1%
8
UDDIPON
1984
76.61
1%
30.81
1%
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Others (MFIs)
-
649.08
12%
233.37
6%
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National
position
-
100%
4,053.24
100%
5,483.01
Islamic Microfinance
While, total Islamic Microfinance clients in the world is about 1
million. More than Half of them is in Bangladesh and over 80
percent of them is concentrated in Indonesia, Bangladesh and
Afghanistan. Islamic Microfinance in Bangladesh is mostly
operated by----•
•
•
•
•
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•
IBBL’s Rural Development Scheme(RDS), founded in 1995
SIBL, Al-Arafah
Muslim Aid Bangladesh operating since (1991)
Al Falah A’am Umayan Sangasta(AFAUS), Dinajpur in 1989
TMSS Islamic Microfinance (TIMF) started in 2008
RESCUE started operation in 1991 in Rangpur district
Noble Foundation and Literary society, Bogra.
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Islamic Microfinance: RDS Model
IBBL’s Rural Development Scheme(RDS), founded in 1995
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IBBL: At a Glance
 Asset Size
: USD 9,294 Million
 Branches
: 304+
 Manpower
: 13622
Market Share
 Import
:11%
 Export
:10%
 Remittance
:27%
 SME
: 17%
 Employment generation
: 2.5 million people
 Highest Taxpayer in Banking sector
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Sector-wise Business Exposure
Industry
: 32.36%
Trade
: 35.98%
Real Estate
: 8.35%
Agri. & Agro Industry :11.99%
Micro Credit(RDS)
: 3.64%
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Share of IBBL in country’s Microfinance
Share of IBBL's Microfinance to PCBs
52.05%
Share of IBBL to SCBs & PCBs
25.85%
Share of IBBL to PCBs Retail microfinance
IBBL share in country microfinance through banking
& public institutes
98.90%
8.05%
Source: Credit Development Forum
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RDS model of IBBL
 Launched in
: 1995
 Mode of Finance
: Baim, HPSM & Musharaka
 Investment Size
: US$ 145 – US$ 714
 Male Members
: 15%
 Female Members
: 85%
 Rate of Recovery
: 99%
IBBL covers 50% world Islamic microfinance
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Key Information on RDS
Particulars
2015
No of Village
18,615
No. of Member
Cumulative Disbursement
(Million BDT)
(Million USD)
Outstanding
National Rank
(Million BDT)
(Million USD)
9,47,305
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130445.12
$310
position
among
2100
MFIs
of the
Country
20798.82
$264
Share in IBBl’s to total investment
3.64%
Members Savings
6,890
$87.77
(Million BDT)
(Million USD)
th
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RDS: Special Features
Shariah based micro-finance
Collateral free
Farming and off-farming activities
Job Creation
Welfare and ethical services
Quard facilitates for sanitation
Lowest profit rates
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Target Group
Farmers
Sharecroppers
Persons engaged in off-farm activities
Fishermen
Women and distressed people
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Trends of Savings and Investments
(Million US$)
265
300
250
221
175
200
23
30
42
50
65
2010
2011
2012
58
88
90
100
73
132
150
0
Savings
2013
2014
2015
Investment
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RDS Expansion: Village coverage
20000
18615
19000
18086
18000
17163
17000
16000
15371
15000
14000
12857
13000
12000
11000
11482
10751
10000
2009
2010
2011
2012
2013
2014
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2015
3,335
200,000
74,315
400,000
911470
217,425
600,000
560,499
523,941
800,000
733520
1,000,000
836227
1,200,000
9,47,305
Increase of Members
-
1996
2000
2005
2010
2011
2012
2013
2014
15-Jun
2015
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RDS: Sector-wise Investment
Others, 1%
Crops, 24%
Nursery/Forestry
, 1%
Off-farm
Activities, 37%
Agricultural
Equipment, 2%
Livestock, 10%
Rural Housing,
15%
Poultry/Bird, 1%
Rural Transport,
5%
Fisheries, 4%
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Size-wise Investment:
Fig. taka in million
9%
3%
Upto $190
13%
41%
$191 to 380
$381 to 640
$641 to 1275
$1276 to above
34%
Graduation RDS to MEIS and SME
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IBBL’s Integrated Approaches to
Financial Inclusion
IBBL follows a Finance Plus Approach
Nutrition
Health
Finance
Education
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IBBL’s Integrated Approach to Microfinance
and Financial Inclusion (RDS & UPDS
Model)
RDS
Financial Inclusion
UPDS
CSR
Social Inclusion
Training
MicroInvestment
(Upto Tk.
75,000)
Micro-Enterprise
(Upto Tk. 400,00)
Ultra-Poor
(Financed
through Qard
coming from
charity fund)
Health Service
Relief &
Rehabilitation
Environment
Education
- Medical Camp
- Pre-primary
- Circumcision Camp
- Maqtab
-Medical Assistance
- Adult Education
-Welfare Gift
- Award & Scholarship
-Qard for housing,
sanitation & Tube well
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RDS Graduation Process
◊ Graduated from RDS
Tk.75,000
Investment Size
($1000)
◊ Stay at least 3 years
◊ Investment with Collateral
↑
↑
MEIS Investment Size
$1000 - $5000
Tk.5000
($65)
Collateral Free
Investment
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Qard Program for RDS
USD$ 12.74 million (Tk.100 crore) fund creation
-Qard for distressed members & the ultra poor
-Revolving basis
-Qard for 1(one) year
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Non-Financial Services(Welfare activities)
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Training for the beneficiaries
and centre leaders;
Health awareness
development program;
Relief Distribution Program
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Non-Financial Services(Welfare activities)
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Sanitation program;
•
Treatment assistance for the
poor members;
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Non-Financial Services (Welfare activities)
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Education program
Scholarship Award Program
Distribution of education materials
Waiver of the liabilities of incapable
members;
Plantation program
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Future Plan
• Extending RDS activities to all the 86,000 villages of the country.
• Addressing the ultra poor by developing Quard/Charitable Fund.
• Extensive investment in SME sector in the rural areas in view to
create huge employment.
• Encouraging bio-gas and solar panel in the rural house-holds.
continued-----
Future Plan
• Ensuring zero level drop-out of the children of RDS members from
primary education.
• Attaining 100% coverage of the beneficiaries in respect of pure
drinking water and sanitation.
• Ensuring health safety-net of RDS beneficiaries.
• Extending massive plantation especially in the coastal areas.
• Alleviate poverty from the country
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