Western Region Grameen Bikas Bank

Gross Loan Portfolio USD, 2011: 12.5 million

Number of active borrowers 2011: 40,877

Average loan balance per borrower USD, 2011: 306.1

Deposits USD, 2011: 3.9 million

Assets USD, 2011: 18.1 million

Number of depositors 2011: 55,853

Mission:

To create income and generate self-employment through micro credit to the rural poor at their doorstep to reduce poverty level.

Background and Main Challenges:

Backgound: Access to financial services specially for poors in Nepal is very limited. And, such access is further limited in western development region of Nepal. In this background this bank has been established during 1994. Challenge: The main challenge for any financial program in Nepal ... Read more

Address:

Sukrapath Butwal -10, Rupandehi, Lumbini Zone

Butawal

Nepal

Phone:

00977-71-438951 / 00977-71-438953

Fax:

977-71-541289

Email:

pgbb-btw [at] wlink [dot] com [dot] np

Website:

www.grameenbanknepal.org

Main Funding Sources:

Grants

Loans

Savings

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Funds Transfer Services

Training and Consulting

Products:

Financial services, Governnance, Policy advocacy

Services Provided:

Full-scale Financial Services

Business Development Services

Health

Looking for (Investment Types):

Equity

Loans in Local Currency

Capacity-Building Grants

Donations

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1994

FYE:

16-Jul

Current Legal Status:

Rural Bank

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in rural areas	2
Clients living in urban areas	3
Adolescents and youth (below 18)	4
+ Development goals (ranked by importance)
Increased access to financial services	1
Employment generation	2
Gender equality and women's empowerment	3
Growth of existing businesses	4
Youth opportunities	5
Water and sanitation	6
Health improvement	7
Children's schooling	8
Development of start-up enterprises	9
Improvement of adult education	10
Housing	11
Poverty reduction	12
+ Poverty targets
Low income clients	1
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises	1
SME loans
Loans for agriculture	1
Loans for education	1
+ Savings products offered
Voluntary savings accounts
Compulsory savings accounts (cash collateral)
Special purpose savings accounts

+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
Remittances services	1
+ Non-financial services offered
+ Enterprise services offered
Enterprise skills development	1
+ Education services offered
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)

+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Portfolio quality
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution trains/educates clients regarding environmental improvements
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
This institution offers lending lines linked to alternative energies
+ Poverty measurement tools in use