MFI Report

Background Madhyamanchal Grameen Bikas Bank Ltd. (MGBB), a Grameen Replicator has been established under the development Bank Act (B.S. 2052) and registered under company act (2053 B.S.). Bank is jointly ventured by public sector and joint venture private banks with an authorized capital of NRS. 120 Million (Us$2.2 Million) and paid up capital of NRS 60 Million (Us$1.1 Million). Accordingly MGBB has been registered in June 21, 1996 (Ashad 7, 2053 B.S.). Currently MGBB is working with 11 Area/Branch and 28 Branch offices in 14 districts of the centeral Development region of Nepal. MGBB is working in rural areas with a view to create environment within people in difficult situations. It is heading with a mission to work with and for the poor and disadvantaged group of society to alleviate their poverty by raising their awareness. It generated self employment of the rural poor through micro credits at their doorstep to reduce poverty level. MGBB is governed by a eight members board. The board is policy making body and is responsible for providing policy direction to management. The day to day operation is managed by a management team headed by Executive Director who is appointed for a certain period by the board among themselves. Executive Director is responsible for managing smooth implication of the bank. Challenges * Overlapping problem from other Grameen Replicator * Security problem * High inflation rate * Risk of default in extending credit without tangible collateral security * Complication in fund management Hide