India's First Women's Bank

India’s first women’s bank, the Bharatiya Mahila Bank (BMB) has been inaugurated in Mumbai at the iconic Air India building in Nariman Point. With the inauguration of the bank in Mumbai, seven branches would become operational across the country including in Kolkata, Chennai, Ahmedabad and Guwahati…


india-first-women-bankIndia’s first women’s bank, the Bharatiya Mahila Bank (BMB), headed by Usha Ananthasubramanian, obtained its license in September and was formed following an announcement to the effect by finance minister P Chidambaram in the budget earlier this year.
Here’s all you wanted to know about this initiative:

Pan India operations
BNB will start pan India operations from day one accepting deposits as well as giving out loans. With the inauguration of the bank in Mumbai, seven branches would become operational across the country including in Kolkata, Chennai, Ahmedabad and Guwahati. Though the bank makes its debut in a metro and urban centers, it will enter into rural areas before March 2014. It will follow RBI’s norm to open 25 per cent of branches in underserved and unbanked areas and scout for centers where working women population is significant.

Expansion plans
The objective of BNB is to be a profit making, commercial organisation and the expectation is that its operations will become profitable from the 4th year. It plans to open 25 branches by March 2014 and 75 branches every year from then. The bank has a 7 year ramp up plan; the CMD was quoted as saying by the ‘Mint’ newspaper.

loading...

Restricted to women?
The bank will focus on lending predominantly to women and companies that focus on women’s activities/products but there will be no restriction on deposits by men. Also, 36 per cent of the probationary officers recruited by BNB are men. The lending, while it will be chiefly to women with an emphasis on funding for skills development to help in economic activity via small concessions on loans according to reports, the current target is to have a 60:40 ratio where 40 per cent of funds can be loaned out to men as well according to a report in the ‘Mint’ newspaper.

Capital base
The bank has a capital base of Rs. 1,000 crore (Rs. 10 billion) that was approved in the first supplementary by the Finance Ministry to kick start business. Through the course of its operations, BNB will continue to look at various other routes to raise capital so that it is not constrained for expansion of normal business.

Beyond business
The bank is looking at providing assistance through credit to set up day care centers and start organised catering services. BNB will also tie up with NGOs, and train women in various vocations in order to penetrate deeper into rural areas.

Usha Ananthasubramanian is the CMD
Usha Ananthasubramanian has been appointed as the CMD of BNB. She started her career in the actuarial department with LIC and banking career in February 1982 as a specialist officer in the planning stream of Bank of Baroda. In a career spanning over 31 years, she has worked in various positions in banking and allied areas and before joining BMB, was executive director with Punjab National Bank.

Who else is on the board?
The following members along with a Government nominee will constitute the board – Chhavi Rajawat – a sarpanch from Rajasthan, Nupur Mitra – ex-CMD of Dena bank, Renuka Ramnath of Multiples Alternate Asset Management, MBN Rao – Ex-CMD of Canara Bank, Tanya Dubash – Executive Director and President (Marketing) of the Godrej group and Kalpana Saroj – CEO of Kamani Tubes.
– BS


India Inc Welcomes Launch Of Bharatiya Mahila Bank

Only 26 per cent women in India have a bank account and credit issued to women accounts for only 7.3 per cent of the total credit in the Indian financial system. Many times due to lack of ownership of collaterals, women entrepreneurs are unable to access bank credit, Ficci said. “Setting up of an all-women bank will provide financial services and credit to millions of women, especially the self-help groups (SHGs). Access to easy credit for women in rural India will play an important role in skill-building, increasing women entrepreneurship and economically empowering our women,” Ficci President elect Sidharth Birla said.

Welcoming the launch of the Bharatiya Mahila Bank, India Inc said the initiative will propel women’s financial inclusion, encourage female entrepreneurs and empower women in the country. “The bank would provide women better access to financial services and hence encourage female entrepreneurship, promote equity in asset ownership and ensure greater participation of women in the economic activity,” CII Director General Chandrajit Banerjee said.
The first all-women Bharatiya Mahila Bank, a pioneering initiative to empower women, was launched recently with a corpus of Rs. 1,000 crore (Rs. 10 billion). It will be a universal bank, but will primarily serve women, taking care of their special needs and requirements. “The opening of the Bharatiya Mahila Bank is the best way to ensure financial inclusion and the initiative would bring a new vibrancy among women entrepreneurs in the country,” Yes Bank MD & CEO and Assocham President Rana Kapoor said.
“Setting up of an all-women bank will provide financial services and credit to millions of women, especially the self-help groups (SHGs). Access to easy credit for women in rural India will play an important role in skill-building, increasing women entrepreneurship and economically empowering our women,” Ficci President elect Sidharth Birla said.
The bank, headquartered in New Delhi, began operations with seven branches and as many automated teller machines. It has targeted setting up 25 branches and 100 ATMs by March. The bank begins operations with seven branches. Only 26 per cent women in India have a bank account and credit issued to women accounts for only 7.3 per cent of the total credit in the Indian financial system. Many times due to lack of ownership of collaterals, women entrepreneurs are unable to access bank credit, Ficci said. The Board of the Mahila Bank was constituted with the induction of eight women members. This will be the first all-woman board of a PSU bank.
– PTI

loading...

Leave a Reply

Your email address will not be published. Required fields are marked *