Abstract:
Grameen Bank has positioned itself as a leader in microfinance that targets the financial inclusion
of the rural poor in Bangladesh, especially women, by means of its innovative designated model
of group lending with no collateral. The provided internship report analyses the financial activity
of Grameen Bank during the last five years (2019-2023) and concludes on the aspects where it can
be valued and improved. The report has been done on an internship experience at the bank and an
analysis of financial ratios as well as operations figures.
To evaluate the health of the bank, important financial ratios were considered that include Return
on equity (ROE), Return on assets (ROA), Earnings per share (EPS), Net interest margin (NIM),
Net non-interest margin (NNIM), and Equity multiplier. Grameen Bank had a great performance
in 2019, having the highest ROE (21.69%), ROA (1.65%), and EPS (34.98%). Nevertheless, it has
not been doing as well in 2020 and 2021 because of external shocks, such as the COVID-19
pandemic. However, a slow recovery was witnessed in the years 2022 and 2023, which
experienced an improvement in ROE (6.69 %), ROA (0.62 %), and NIM (8.14 %).
And although this turned in a profit, the bank had regular losses in terms of Net Non-Interest
Margins, which means poor results in producing income outside the basic processes of lending
money. Also, the Equity Multiplier was down in 2023(10.74) as compared to 2019 (13.16),
indicating a more conservative financial leverage.
The effect of the Grameen Bank is not achieved only on financial scales. It has a model concerning
community-based lending, which contributes to discipline, accountability, and empowerment of
women as well as their contribution to rural socio-economic development. But, to ensure longterm sustainability, there is a need to improve the level of digitization, asset utilization, and revenue
diversification.
Finally, Grameen Bank has proved to be strong and even socially responsible, but the aspect of
improving its operational efficiency and embracing modern trends of banking is important towards
ensuring the continuity of its growth and mission.
