'BOC Mithuru' awarded Best Sustainability (CSR) Project 2013

Bank of Ceylon was awarded with Best Sustainability Project Award under the category “other” at the Best Corporate Citizen Sustainability Awards ceremony organized by The Ceylon Chamber of Commerce held at the Cinnamon Grand recently.

'BOC Mithuru' is a strategic Corporate Social Responsibility (CSR) project of the Bank of Ceylon which aims to empower the most needy segment in the society to become self sufficient. 'BOC Mithuru' has been designed on the vision of empowering the grassroot level of the Sri Lankan economy in order to reduce poverty in the society.

Bank of Ceylon’s strategic CSR project - 'BOC Mithuru' has been recognized by The Ceylon Chamber of Commerce under Best Project category (other) at the Best Sustainability Awards 2013.

Bank of Ceylon has set up 'BOC Mithuru' small groups islandwide and is providing them with advisory services and financial assistance under the micro financing loan schemes. BOC’s strategic CSR project has been a catalyst in developing an entrepreneurial culture while inculcating the habit of savings among 'BOC Mithuru' groups set up in the country.

Today the Bank has empowered 100,000 families covering all parts of the country including Northern and Eastern provinces as beneficiaries of 'BOC Mithuru'. BOC pledges its continuous support towards reducing poverty in Sri Lanka.

Bank of Ceylon, has considered providing sustainable solutions to all Sri Lankans, as one of its innate responsibilities. Therefore, BOC grasped the principles of microfinance back in 1980s and embedded the same into the Corporate Social Responsibility (CSR) philosophy. As a result BOC has transformed a vast number of Sri Lankans, especially those who dwell in rural and under developed areas, who saw themselves as not qualified to deal with formal banks, into successful entrepreneurs. Thus, Bank of Ceylon has been making a conscious effort to live up to its vision, ‘Bankers to the Nation’ and being triumphant. The launching of ‘BOC Mithuru’, a branded package of its small group development project, is the culmination of all endeavors of BOC taken throughout the years to empower people in the low income group and enhance livelihood of participants.

This is a project that is aimed at alleviating poverty through a collaborative effort. It is designed to provide a structured facilitation for individuals in needy segments of the society, through forming groups with likeminded people, inculcating the habit of saving within the group, improving livelihood by facilitating financial assistance for their income generating activities and helping them to break out from the cycle of poverty and debt, thereby guiding them to improved living standards.

'BOC Mithuru' has been developed based on the social bottom-line of the Bank’s Sustainability Policy, which strives to achieve enhancement in entrepreneurship and livelihood development. Since the profits earned by development of income generating activities will be injected back to the Bank in the form of deposits.

Bank adopted 'BOC Mithuru' with a view to achieving a positive outcomes for individuals in groups, the Bank and the society as a whole. The foremost objective was to provide banking services to individuals whose income is below reasonably accepted level, and who are not considered by mainstream banks, since their credit worthiness is considered to be near zero. Incidents where innocent people lost their hard earned savings by dealing with informal deposit takers and money lenders, which at times, even threatened the stability of the Sri Lankan financial services sector, also triggered the need for a streamlined project such as BOC Mithuru.

Therefore, with the intention of providing banking facilities to those who have been neglected by the formal banking sector and absorbing those who are reluctant to transact with formal banks, into the formal banking stream, BOC has undertaken BOC Mithuru project.

Bank has observed that the projects’ success is due to the carefully planned stages carried out by the bank in absorbing individuals into formal banking activities. Introduction to the savings habit, income generating activities and group formation; introduction to the formal banking stream and formation of societies are the main steps that the Bank initiates during the project life of BOC Mithuru. Formation and successful continuation of societies marks the completion of the project and is the signal for the exit of the Bank.

Although the project originated centering on the Northern and Eastern provinces, currently it has no geographical restrictions and is being implemented throughout the island. BOC Mithuru proudly boasts of over 19,000 small groups functioning under 300 societies, dispersed across all 9 provinces and benefiting 100,000 families in the country. It has also resulted in its members registering 160 of their societies with the Registrar of Companies.