Term paper

On
“Assessment of the operational mechanisms &achievements of the organized sectors
in the provision of rural banking & microfinance in Bangladesh”

Submitted to:
Dr. A R Khan
Professor
Dept. of Banking
University of Dhaka.

Submitted by:

Name
Roll No.
Md. Safiullah 9-004(01)

M.B.A. 9th batch

Dept. of Banking
University of Dhaka.

Department of Finance
Faculty of Business Studies
University of Dhaka.

Date of submission: March 19, 2009

Letter of transmittal
March 19, 2009

Dr. A R Khan
Professor
Dept. of Banking
University of Dhaka.

Subject: Submission of term paper on “Assessment of the operational mechanisms

&achievements of the organized sectors in the provision of rural banking &

microfinance in Bangladesh”

Dear Sir,

Please see enclosed herewith my paper on “Assessment of the operational mechanisms

&achievements of the organized sectors in the provision of rural banking &

microfinance in Bangladesh” This is a great pleasure for me to submit this paper that
you have permitted. This paper was worthwhile experience for me. I have truly enjoyed
my time attachment with the preparation of this report.

I have tried to make the report comprehensive one with in the time. Any short of
suggestion regarding the paper would be greatly acknowledge and I would feel gratified
if my paper serves its purposes.

Thanking you.
Md. Safiullah
 Acknowledgement

It is my pleasure to submit this paper on “Assessment of the operational mechanisms

&achievements of the organized sector in the provision of rural banking &

microfinance in Bangladesh”. Upon completion of this paper, I pay my heartiest

gratitude to honorable sir Dr. A R Khan, Professor, Department of Banking, University
of Dhaka for your sublime guidance, warm advice and affectionate encouragement to
carry out my works as well as in preparing this paper.
 Objective of the report

The main objective of the term paper is to be acquainted with the operational mechanisms
&achievements of the organized sector in the provision of rural banking & microfinance
in Bangladesh. The specific objectives are:

To have a better understanding of the

 Operational mechanisms of nationalized commercial banks(NCBs)
 Rural banking & microfinance involvement and achievements of NCBs.
 Operational mechanisms of Private commercial banks(PCBs)
 Rural banking & microfinance involvement and achievements of PCBs.
 Operational mechanisms of NGOs
 Microfinance involvement and achievements of NGOs.
 Operational mechanisms of development banks
 Rural banking & microfinance involvement and achievements of DBs.
 Operational mechanisms of co-operatives
 Microfinance involvement and achievements of co-operatives
 Operational mechanisms of ministries, directorates & divisions
 Microfinance & Microcredit involvement and achievements of ministries,
directorates & divisions
 To fulfill the requirement for the successful completion of our course “Rural
banking & microfinance”
 Table of Contents

Sl No. Title Page No

01 Executive Summary 01
Microfinance & Micro credit: overview 02

Microfinance activities 03

Providers of microfinance funds 04

Clients of microfinance funds 04

Causes of microfinance growth 05

Microfinance & rural banking operations of organized sectors 06

02. Nationalized Commercial Banks (NCBs)

Sonali Bank 06-07

Rural Credit 08-12

Micro credit 13-17

Agrani Bank Limited 18

Rural Credit Programmes 19-21

Janata Bank Limited 22

Micro Enterprise & Special Credit 23-24

Rupali Bank Ltd 25-27

03. Private Commercial Banks

Islami Bank Bangladesh limited 28-34

Micro-credit Programme 34-36

Trust Bank 36

BASIC Bank Limited 36

Pubali Bank 36

04. Development Banks (DBs)

Bangladesh Krishi Bank 37-41
 Rajshahi Krishi Unnayan Bank (RAKUB) 42-48

05. Non-Govt. Organization (NGOs)

BRAC 50

ASA 51

Swanirvar Bangladesh 53-54

PROSHIKA 55-57

TMSS 57-58

Shakti Foundation 58-59

06. Co-operatives
Bangladesh Rural Development Board (BRDB) 60-70

BARD 71-86

RDA 87-88

07. Ministries/Directories/Divisions
Ministries/Directories/Divisions 89-91

Ministry of Finance (Banking division) 91-92

Rural development & cooperative divisions 93-94

Ministry of women &children affairs 94-96

Ministry of social welfare 97-99

Ministries of Fisheries and Livestock 99-102

Ministry of Industries 102-105

Ministry of Agriculture 105-108

Ministry of Land 108-111

Ministry of Youth & Sports 111-112

Ministry of Textile 112-114

Ministry of Liberation war affairs 114-117

08. Problem identification 118-119

09. Conclusion 121
10. References 122
Appendices 122-17