Islamic Microfinance: Bangladesh Experience

Transcription

1 Islamic Microfinance: Bangladesh Experience Mohammad Abdul Mannan Managing Director & CEO Islami Bank Bangladesh Limited

2 Demography & Area : 147,570 km 2 Population : million Literacy : 61.5% GDP : $ billion (44 th ) Per Capita : $ 1,314 Inflation (PP/Average) : 5.65% /6.10% Reserve : $ 27.5 billion Export : $ 31.6 billion Import : $ 43.2 billion Foreign Remittance : $ 15.3 billion Next 11 emerging economy Gained the status of Lower middle income country 2

3 Banking Sector 3 State owned Banks : 5 Specialized Banks : 3 Foreign Banks : 9 Private Banks : 39 (Islamic Banks-8) Total Banks : 56 Branches : 9263 Manpower : 160,000+ Total Deposits :$100 billion Total Credits :$87.7billion Number of Deposit Accounts : million (Conventional Banks-31) 3

4 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 :

5 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 5

6 Microfinance Activities in Bangladesh No. of MFIs : around 2100 Clients : 30 million Loan Portfolio : US$ 5.5 billion Loan Portfolio Growth : 15% Recovery Rate : around 96% Savings : US$ 4.1 billion 6 6

7 Market Share of Microfinance in Bangladesh Sl. Name of MFI Establis hment Investment Share Savings Share 1 Grameen Bank , % 2, % 2 BRAC , % % 3 ASA , % % 4 RDS (IBBL) % % 5 BURO BD % % 6 TMSS % % 7 SSS(Society for social service) % % 8 UDDIPON % % 9 Others (MFIs) % % 10 National position - 5, % 4, %

8 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----- IBBL s Rural Development Scheme(RDS), founded in 1995 SIBL, Al-Arafah Islamic Microfinance 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. 8

9 Islamic Microfinance: RDS Model IBBL s Rural Development Scheme(RDS), founded in

10 IBBL: At a Glance Asset Size : USD 9,294 Million Branches : 304+ Manpower : Market Share Import :11% Export :10% Remittance :27% SME : 17% Employment generation : 2.5 million people Highest Taxpayer in Banking sector 10

11 Sector-wise Business Exposure Industry : 32.36% Trade : 35.98% Real Estate : 8.35% Agri. & Agro Industry :11.99% Micro Credit(RDS) : 3.64% 11

12 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 98.90% IBBL share in country microfinance through banking & public institutes 8.05% Source: Credit Development Forum 12

13 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 13

14 Key Information on RDS Particulars 2015 National Rank No of Village 18,615 No. of Member 9,47,305 Cumulative Disbursement (Million BDT) Outstanding (Million USD) (Million BDT) (Million USD) $ $264 Share in IBBl s to total investment 3.64% Members Savings (Million BDT) (Million USD) 6,890 $ th position among 2100 MFIs of the Country 14

15 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 15

16 Target Group Farmers Sharecroppers Persons engaged in off-farm activities Fishermen Women and distressed people 16

17 Trends of Savings and Investments (Million US$) Savings Investment 17

18 RDS Expansion: Village coverage

19 3,335 74, , , , ,47,305 Increase of Members 1,200,000 1,000, , , , , Jun 19

20 RDS: Sector-wise Investment Others, 1% Crops, 24% Off-farm Activities, 37% Rural Housing, 15% Nursery/Forestry, 1% Agricultural Equipment, 2% Livestock, 10% Poultry/Bird, 1% Rural Transport, 5% Fisheries, 4% 20

21 Size-wise Investment: Fig. taka in million 9% 3% 13% 41% Upto $190 $191 to 380 $381 to 640 $641 to % $1276 to above

22 Graduation RDS to MEIS and SME 22

23 IBBL s Integrated Approaches to Financial Inclusion IBBL follows a Finance Plus Approach Nutrition Health Finance Education 23

24 IBBL s Integrated Approach to Microfinance and Financial Inclusion (RDS & UPDS Model) RDS UPDS CSR Financial Inclusion Social Inclusion Micro- Investment (Upto Tk. 75,000) Micro-Enterprise (Upto Tk. 400,00) Ultra-Poor (Financed through Qard coming from charity fund) Training Health Service Relief & Rehabilitation Education Environment - Medical Camp - Pre-primary - Circumcision Camp -Medical Assistance -Welfare Gift -Qard for housing, sanitation & Tube well - Maqtab - Adult Education - Award & Scholarship 24

25 Investment Size RDS Graduation Process Tk.75,000 ($1000) Graduated from RDS Stay at least 3 years Investment with Collateral MEIS Investment Size $ $5000 Tk.5000 ($65) Collateral Free Investment 25

26 Qard Program for RDS USD$ million (Tk.100 crore) fund creation -Qard for distressed members & the ultra poor -Revolving basis -Qard for 1(one) year 26

27 Non-Financial Services(Welfare activities) Training for the beneficiaries and centre leaders; Health awareness development program; Relief Distribution Program 27

28 Non-Financial Services(Welfare activities) Sanitation program; Treatment assistance for the poor members; 28

29 Non-Financial Services (Welfare activities) Education program Scholarship Award Program Distribution of education materials Waiver of the liabilities of incapable members; Plantation program 29

30 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--

31 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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