BharatiyaMahilaBank

AMovetoEmpowerWomenin
India?

Casestudy
Referenceno3140041

ThiscasewaswrittenbyRajanShah,AmityResearchCenters
Headquarters,Bangalore.Itisintendedtobeusedasthebasisfor
classdiscussionratherthantoillustrateeithereffectiveor
ineffectivehandlingofamanagementsituation.Thecasewas
compiledfrompublishedsources.

2013,AmityResearchCentersHeadquarters,Bangalore.
Nopartofthispublicationmaybecopied,stored,transmitted,
reproducedordistributedinanyformormediumwhatsoever
withoutthepermissionofthecopyrightowner.

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314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

Author:Mr.RajanShah

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

Abstract: Postindependence, India recognised women as a key force in the economy. For
betterment of women, India pursued various plansand policies. Government also enacted various
lawssuchasTheDowryProhibitionAct,TheIndecentRepresentationofWomen(Prohibition)Act,
and The Commission of Sati (Prevention) Act. In a major move, the Government of India (GoI)
establishedTheNationalCommissionforWomenin1990andimplementeda10yearpolicyknown
astheNationalPolicyfortheEmpowermentofWomenin2001.Thesepolicyinitiativeswereaimed
to improve female literacy rate, work participation rate in organised and public sector, and gross
enrolmentratioofgirlsinschools.In2010,thegovernmentimplementedTheNationalMissionfor
Empowerment of Women to initiate numerous programmes. In 2013, the GoI floated an idea of
establishingBharatiyaMahilaBank(BMB),IndiasfirstallwomenbankheadquarteredatNewDelhi.
BMBwasaimedatwomen,womenrunbusinesses,andaidingwomenSHGsinorder to empower
them economically. Experts believed that such move would ensure financial inclusion and
empowermentofwomenandimprovetheirwellbeing.But,criticsraisedtheirconcernsregarding
thesame,followingtheclosureofninesuchbanksintheUS.Insuchascenario,itremainedtobe
seenhowBMBwouldsustaininthelongrun.

PedagogicalObjectives

Thecasestudyhelpstounderstandandanalyse:

WomenempowermentinitiativesinIndia
RationalebehindthecreationofBharatiyaMahilaBank
Futureprospects.

CaseStudy

ThefirststeptoensurethedignityofwomenistogivethemequalrightstomakeIndiaadeveloped
andmoderncountry.Wewillhavetomakechangesinourfamilies,societyandgovernment.Ifwe
areableto giveequalopportunitiestowomenand createabetteratmosphere,50percentofthe
populationwillincreasethegrossdomesticproduct.1

NarendraModi,ChiefMinister,Gujarat,India

esiding in Rata Khera village of Jaipur district, Rajasthan, Bhanumati Devi (Bhanumati)2, had
nevervisitedabankinherlife.Shealwaysreliedonherhusbandforanybankrelatedwork.
But,onedaywhenshewasroaminginthemarkettopurchasesomehouseholdstuff,shefoundthat
manywomenfromherneighbourhoodhadgatheredinabanktoopenanaccount.Bhanumatitoo

R
1

EqualRightstoWomenKeytoDeveloped&ModernIndia,http://www.businessstandard.com/article/current
affairs/equalrightstowomenkeytodevelopedmodernindia113040900014_1.html,April9th2013
2
Hypotheticalcharacter.
2013,AmityResearchCentersHQ,Bangalore.Allrightsreserved.

314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

joinedthem.But,aftervisitingthebank,sheobservedthatwomenweremanagingvariousbanking
activities. Bhanumati had visited Bharatiya Mahila Bank, Indias first dedicated bank for women.3
This initiative was a part of Government of Indias (GoI) efforts towards strengthening women
empowerment in the country. Jayati Ghosh, a professor of Economics at New Delhi's Jawaharlal
Nehru University said, The government wants to construct a building somewhere and say Look
women,youhaveyourownbank!4Whethersuchinitiativewouldboostwomenempowermentin
Indiaornotremainedtobeseen.

WomenEmpowerment:IndianPerspective

India,thesecondfastestgrowingeconomyintheworldafterChina5,hadwitnessedparadigmshiftin
its global economic repute. According to 2011 census, Indias population was 1.21 billion in
proportion to its 3.3 million sq. km area.6 Compared to any other nation in the world, India had
witnessedhigherpopulationgrowthrate.InthetotalpopulationofIndia,623.7millionweremales
and586.5millionwerewomen.7

Theconsiderablenumberofwomenintheoverallpopulationhadfuelledvariouswomenoriented
developments in the country. Traditionally, the word empowerment had been used in different
contextindifferentdisciplinessuchaseducation,socialwork,andpsychology.AccordingtoUnited
Nations, the term women empowerment had five components like self worth of women, right for
choicemaking,rightforgettingvariousopportunitiesandresources,andbecomingapartofsocial
change.8 The International Centre for Research on Women9 (ICRW) noted that, A woman is
economicallyempoweredwhenshehasboththeabilitytosucceedandadvanceeconomicallyand
the power to make and act on economic decisions.10 Further it elaborated that To succeed and
advanceeconomically,womenneedtheskillsandresourcestocompeteinmarkets,aswellasfair
andequalaccesstoeconomicinstitutions.Tohavethepowerandagencytobenefitfromeconomic
activities,womenneedtohavetheabilitytomakeandactondecisionsandcontrolresourcesand
profits11(AnnexureI).

Postindependence, recognising the importance of women in the country, India devised various
plans for women development. For instance, GoI in its Fifth Five Year Plan (197478) focused on
addressingwomenrelatedissues.12IndiapassedTheDowryProhibitionActin1961whichprohibited
payment of dowry from the brides side at the time of marriage. In addition; India also enacted
various laws for the betterment of women in the country. For instance, in 1986, The Indecent
Representation of Women (Prohibition) Act came into effect which put a ban on discourteous
presentationofwomenviaanypublications,wirings,paintings,figuresoradvertisements.13In1987,

IndiasFirstWomansBanktobeLaunchedonNovember17,
http://www.dnaindia.com/money/reportindiasfirstwomensbanktobelaunchedonnovember171912528,
st
November1 2013
4
GopalnkrishnanMansi,ABanktoEmpowerWomen?,
http://www.dw.de/abanktoempowerwomen/a17084227,September12th2013
5
Indiastillsecondfastestgrowingeconomy:Chidambaram,
http://www.thehindu.com/business/Economy/indiastillsecondfastestgrowingeconomy
chidambaram/article4959820.ece,July27th2013
6
IndiaataGlance,http://indiainbusiness.nic.in/knowindia/indiaataglance.htm
7
ibid.
8
GuidelinesonWomenEmpowerment,http://www.un.org/popin/unfpa/taskforce/guide/iatfwemp.gdl.html
9
AglobalresearchinstitutebasedintheUS,havingkeyfocusonwomenempowerment,genderissues,andpoverty
alleviationinthedevelopingcountries.
10
MarieGollaAnne,etal.,UnderstandingandMeasuringWomensEconomicEmpowerment,
http://www.icrw.org/files/publications/Understandingmeasuringwomenseconomicempowerment.pdf,2011
11
ibid.
12
NationalPolicyforEmpowermentofWomen,http://www.wcd.nic.in/empwomen.htm,2001
13
CentreforSocialJustice,http://www.centreforsocialjustice.net/national_law.html

314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

TheCommissionofSati14(Prevention)Actwasformed.15Apartformvariousacts,takingabigleap
ahead for the women development, in 1985, India created a dedicated department named The
Department of Woman and Child Development for the overall development of women and
children.16

In a major development towards women empowerment, in 1990, India formed The National
Commission for Women by a special act of parliament to protect rights of women.17 In 2001, the
National Policy for the Empowerment of Women came into effect with a key focus on womens
advancement,developmentandempowerment.Thispolicycoveredkeyareasrelatedtoeconomic
and social empowerment of women. Economic empowerment approach focused on poverty
eradication,microcredit,womenandeconomy,globalisation,womenandagriculture,womenand
industry and provision of support services to women. At the same time, social empowerment
approach focused on ensuring provision of education, health, nutrition, drinking water and
sanitation,housingandsheltertowomen.Italsoaimedatincreasingparticipationofwomeninthe
environment related policies and programmes. According to policy makers, with such policy
initiative,theGoIemphasisedthatallcentralandstatelevelministriesmustdevelopatimebound
action plan to translate the policy into solid actions. Key expectation after implementation of this
policy was to achieve measurable goals by 2010. In addition, it also stressed on identification of
resourcesandresponsibilitiesofeachstakeholderforimplementation.18

To identify effectiveness of various women empowerment initiatives in India, in April 2006, the
PlanningCommissionofIndia19formedaworkinggroup.20Thisworkinggroupwasassignedataskto
review, analyse and evaluate various women empowerment initiatives undertaken in India. The
Working Group submitted its report and advised GoI to adopt a philosophy of Inclusive and
integrated economic, social, and political empowerment with gender justice during the Eleventh
FiveYearPlan(20072012)inIndia21(ExhibitI).

Meanwhile, on March 8th2010, the GoI launched The National Mission for Empowerment of
Women (NMEW) on the International Womens Day.22 The key motive behind NMEW was to
strengthenvariousprocessesforthedevelopmentofwomeninIndia.Thekeydomainareasunder
NMEWwerepovertyalleviationandeconomicempowermentofwomen,socialempowermentand
education,health&nutrition,focusingongenderrights,enforcinglawsforgenderbasedviolence,
empowermentofvulnerableandmarginalisedgroupsandwomenindifficultcircumstances.23Under
thisinitiative,theGoIadoptedaconvergencemodelknownasThePoornaShaktiKendra(PSK).PSK
was established at every village and served as a first point of contact for women with a motto of
Hum Sunenge Naari Ki Baat24.25 PSK was equipped to offer information related to government
schemes, services, programmes purely dedicated for women, maintaining database of targeted
population, creating awareness on legal rights of women, providing training and capacity building
and coordinating various services provided by the various government departments in India.26
KrishnaTirath,MinisterofStateforWomenandChildDevelopment,GoI,said,Theprocesstostart
14

Satiistheactofburningthewomanonherhusbandsfuneralpyre.
CentreforSocialJustice,op.cit.
16
AboutUs,http://wcd.nic.in/
17
NationalPolicyforEmpowermentofWomen,op.cit
18
ibid.
19
Itwasestablishedin1950bytheGovernmentofIndiatoformulateblueprintforeconomicdevelopment.
20
ReportoftheWorkingGrouponEmpowermentofWomen,
http://wcd.nic.in/WomanDevelopment/wgfinalreport.pdf
21
ibid.
22
AbouttheMission,http://www.nmew.gov.in/index.php?lang=1
23
ibid.
24
WhichmeansWeshalllistentotheWomen,inHindi.
25
ConvergenceModel,http://www.nmew.gov.in/index1.php?lang=1&level=0&linkid=63&lid=28&ltypeid=2&domid=1
26
ibid.
15

314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

themissionhasbegun.Themissionwillprovideasinglewindowtowomentoallowthemusethe
government'sdevelopmentservices27(AnnexureII).

ExhibitI
WomenDevelopmentKeyStatistics
DevelopmentIndicators
Women Men Total Women Men
Total
Population(inMillionin1971&2001)
264.1 284.0 548.1
495.7
531.2 1027.1
DecennialGrowth*(1971&2001)
24.9
24.4
24.6
21.7
20.9
21.34
SexRatio(1971&2001)
930

933

ExpectationofLifeatBirth(1971&2001
50.2
50.5
50.9
66.91
63.87

06)
MeanAgeatMarriage(1971&1991)
17.2
22.4

19.3
23.9

DeathRate(1970&2008)
15.6
15.8
15.7
6.8
8.0
7.4
LiteracyRates(1971&2001)
7.9
24.9
16.7
54.28
75.96
65.38
Gross Enrolment Ratio (199091 & 2006

07)(%)
ClassIV
85.5
113.9 100.1
107.8
114.4
111.2
ClassesVIVIII
47.8
76.6
62.1
69.5
77.4
73.6
DropoutRate(199091&200607)(%)

ClassIV
46
40.1
42.6
26.6
24.4
25.4
ClassesVIVIII

45.3
46.6
46
WorkParticipationRate(1971&2001)(%)
14.2
52.8
34.3
25.68
51.93
39.26
Organised Sector (No. in lakhs in 1971 &
19.3
155.6 174.9
51.21 218.72 269.93
2006)
PublicSector(No.inlakhsin1971&2006)
8.6
98.7 107.3
30.03 151.85 181.88
*recurringeverytenyears
Source:StatisticsonWomeninIndia2010,http://nipccd.nic.in/reports/ehndbk10.pdf,2010

Highlightingtherationaleforsuchinitiative,PratibhaPatil,thethenHonourablePresidentofIndia,
said,Sinceindependence,Indiahadmadesignificantstridesinempoweringwomenbyaddressing
social discrimination faced by them, providing them access to resources and spreading awareness
among them about their rights. The prosperity and growth of India required that women, half its
population, were actively drawn into the planning and development process. It is only when we
spread education and skill development among women that they can be agents of economic and
socialgrowth.Weneedanewsocialreformmovement,forgenderequalityandempowermentof
ourwomenamovementthatchangessocietysattitudetowardswomen.28

In December 2012, a Charter of Collaboration was singed by UNESCO29 New Delhi with NMEW
undertheMinistryofWomenandChildDevelopmentforundertakingvariouspilotprojectsinthe
area of socioeconomic empowerment of women.30 In due course, the GoI under its Twelfth Five

27

NationalMissionforEmpowermentofWomeninOffing,http://www.businessstandard.com/article/economy
policy/nationalmissionforempowermentofwomeninoffing109121500167_1.html,December15th2009
28
NationalMissionforEmpowermentofWomenSetinMotion,
http://www.csopartners.org.in/news_link.php?id=77,April15th2010
29
ItstandsforUnitedNationsEducational,Scientific,andCulturalOrganisation.
30
UNESCONewDelhiandtheIndianNationalMissionforEmpowermentofWomenSignaCharterofCollaboration,
http://www.unesco.org/new/en/newdelhi/aboutthisoffice/single
view/news/unesco_new_delhi_and_the_indian_national_mission_for_empowerment_of_women_sign_a_charter_of_c
ollaboration1/#.UoRjRLbZQ,December3rd2012

314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

Year Plan (201217) allocated nearly `1.8 billion on various ongoing and newly proposed schemes
andprogrammesforwomenempowermentinIndia.31

In a major boost towards women empowerment initiatives in India, on February 28th 2013, P.
Chidambaram(Chidambaram),FinanceMinister,GoIatthetimeofpresentingtheannualbudgetfor
201314,floatedanideaofestablishingabankexclusivelyforwomen.32Theproposedwomenonly
bank was created with an investment of `10 billion and focused on women and womenrun
businesses.33Chidambaramemphasisedthat,Thereisnobankthatexclusivelyserveswomen.Can
wehaveabankthatlendsmostlytowomenandwomenrunbusinesses,thatsupportswomenSHGs
and women's livelihood, that employs predominantly women, and that addresses gender related
aspectsofempowermentandfinancialinclusion?Ithinkwecan.IthereforeproposetosetupIndia's
firstwomen'sbankasapublicsectorbank.34

BharatiyaMahilaBank:ForWomen,ByWomen

BharatiyaMahilaBank(BMB),IndiasfirstallwomenbankwasheadquarteredatNewDelhiandwas
scheduled to commence its official operations from November 2013 with six branches. An
anonymousofficialwhowasclosetosuchdevelopmentsaid,Ithasbeendecidedthatthebankwill
becalledtheBhartiyaMahilaBankasitwillhaveconnectwithruralIndia,whichwasthemainidea
behind setting up a women's bank. It is a commercial bank, which will follow the guidelines
stipulatedbytheReserveBankofIndia.35

In March 2013, Chidambaram formed a committee of bankers and experts.36 M.B.N. Rao, former
ChairmanofCanaraBankwasappointedasaheadofthecommittee.OthermembersincludedM.D.
Mallya37, Jayshree Vyas38, Arundhati Bhattacharya39 and K. Ramakrishnan.40 On this development,
Chidambaramsaid,ThecommitteehasbeenaskedtosubmittheblueprintforwomenbankbyApril
30th2013.41InJune2013,theFinanceMinistryapproachedtheReserveBankofIndia(RBI)forits
clearance to establish BMB. Rajiv Takru, Financial Services Secretary, Ministry of Finance, GoI,said,
Thecommitteesetuptopreparetheblueprintforallwomenbankhassubmitteditsreporttothe
FinanceMinister.WehavesoughtinprincipleapprovalfromRBIforallwomenbank.42Hefurther
addedthat,Initiallyweshouldstartwithatleastonebranchineachmajorregionofthiscountry,
South,West,East,Centre,NorthandtheNortheast.Sothatwillmeanimmediatelyweshouldstart
withsixbranches43(ExhibitII).RBIgaveitsnodfortheestablishmentofBMBinlateJune2013.44

31

CentralSchemeforWomenEmpowerment,http://newindianexpress.com/nation/Centralschemeforwomens
th
empowerment/2013/04/13/article1542706.ece,April13 2013
32
th
Budget201314,http://indiabudget.nic.in/ub201314/bs/bs.pdf,February28 2013
33
ibid.
34
ChhabriaVishal,GovernmentPlansIndiasFirstWomensBank,http://www.business
standard.com/article/budget/governmentplansindiasfirstwomensbank113022800497_1.html,February28th2013
35
TiwariDheeraj,BharatiyaMahilaBanktoStartServicesWithSixBranchesFromNovember1,
http://articles.economictimes.indiatimes.com/20130705/news/40392116_1_allwomenbankmbnraocommercial
bank,July5th2013
36
PanelSetuptoPrepareBlueprintforAllWomenBank,http://www.thehindu.com/business/Industry/panelsetup
toprepareblueprintforallwomenbank/article4488320.ece,March8th2013
37
FormerCMDofBankofBaroda.
38
ManagingDirectorSelfEmployedWomensAssociation(SEWA).
39
MD&CEOofSBICaps.
40
ChiefExecutiveofIndianBanksAssociation.
41
PanelSetuptoPrepareBlueprintforAllWomenBank,op.cit.
42
FinanceMinistrySeekRBIApprovalforAllWomenBank,http://www.thehindu.com/business/Economy/finance
ministryseeksrbiapprovalforallwomenbank/article4774994.ece,June2nd2013
43
ibid.
44
GovernmenttoSetup25BranchesofBharatiyaMahilaBank,
http://www.timespro.com/admissions1/item/133governmenttosetup25branchesofbharatiyamahilabank

314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

ExhibitII
BharatiyaMahilaBankKeyAspects
Key objective providing banking needs to women and promoting economic
empowerment
Corporateoffice(includingtreasurydepartment)willbebasedatNewDelhi
BMB to be headed by Usha Ananthasubramanian, Executive Director, Punjab National
Bank
Initial capital `10 billion provided by the government. Hence, 100% owned by
GovernmentofIndia
Dedicatedforwomenandwomenrunbusinesses
ProvidingfinancialsupporttowomenSelfHelpGroups(SHGs)
Bankprojectedtohave39branchesand127cashmachinesandservemorethan33,000
customersattheendofthefirstyear
Planned to become profitability by opening100 branches in the fist five years of its
operations
OperationalModel:
Hostingmodel:FirstIndianbanktogoforthismodelfortechinfra
Costs: Besides managing IT operations, tech partner to bear the costs for
hardwareandsoftware
Payment:Techpartnertobepaidonaperbranchpermonthbasis
Asset transfer: After end of the contract tenure, all the assets would be
transferredtothebankatapredeterminedprice
Benefits: The model would help the bank avoid making upfront investment in
technology;wouldalsohastentheexpansionprocess
NotallowedtoofferanyconcessionalloansandmustcomplywithRBIguidelines.
Compiledbytheauthorfromvariouspublishedsources

InJuly2013,theFinanceMinistryhadaskedotherPublicSectorBanks(PSBs)operatinginIndiato
provide125probationaryofficerstorunBMBondeputationbasis.45Meanwhile,inAugust2013,the
GoI sought approval of the parliament in allocating `10 billion for BMB. Namo Narain Meena,
MinisterofStateforFinance,GoI,mentioned,ItisproposedtosolicittheapprovaloftheCabinetto
include the allocation of Rs 1,000 crore to the Women's Bank in the first Supplementary to be
approvedinthecurrentMonsoonSessionofParliament.46Inamajordevelopment,onAugust8th
2013, the Parliament approved the establishment of BMB.47 An anonymous official close to this
developmentmentioned,TheBharatiyaMahilaBankproposestocompletethefirstsixbranchesat
Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahati by October 15 and take the total to 25 by
March31,201448(ExhibitIII).

BMB had adopted advance approach in its banking operations. For instance, BMB adopted
technologyinfrastructuremodelonperusagepaymentsystem.ThishadmadeBMBasIndiasfirst
banktousesuchmodel.Accordingtothismodel,variousserviceproviderswouldownthehardware
andsoftwareofthebankandpaymentwillbemadeperbranchpermonthbasis.Suchmodelwould
savetheinitialinvestmentcostandmaketheprocessfaster.Explainingthemodel,ananonymous
45

GreenSignaltoWomenBank,
http://www.smartinvestor.in/market/Econnews192123EconnewsdetGreen_signal_to_women_bank.htm,August9th
2013
46
Govt.toSeekparliamentNodforRs.1000crforMahilaBank,
http://www.businessstandard.com/article/finance/govttoseekparliamentnodforrs1000crformahilabank
th
113080600839_1.html,August6 2013
47
GoodNews:IndiasFirstWomenBankGetsGovtNod,toStartOpsinNovember,
http://www.firstpost.com/business/goodnewsindiasfirstallwomenbankgetsgovtnodtostartopsinnovember
1022189.html,August9th2013
48
AllWomenBanktoHave235BranchesbyFiscalend,http://www.businessstandard.com/article/economy
policy/allwomenbanktohave25branchesbyfiscalend113081800250_1.html,August18th2013

314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

officersaid,Sincethecapitalexpenditurewillbeputinplacebytheserviceprovider,thebankwill
notneedtohaveabigITsetup.Wewontownit.Wewillgoforacriticalaccess.Theprojectisset
upbythevendoronanownershipbasis.Normally,thereisacontractforacertainperiod.49But,for
a new bank, forecasting transaction volumes and determining services for customers were major
challenges. Highlighting the pros and cons of such model, Milan Sheth, Partner, Business Advisory
Services,Ernst&Young,mentioned,Severaloverseasbankshavetriedtobuildthismodelbutthey
havefounditverydifficulttoforecastvolumes.Thefactthatbankswouldnothavetomakehuge
upfront investments and would be able to start operations at a much faster pace are definite
advantagesofthismodel.50

ExhibitIII
BMBProjectedOperations
Particulars
Year1 Year2 Year3
Year4
Year5
Year6
Year7
NumberofBranches*

39

134

256

387

517

648

778

NumberofATMs

127

432

715

1,067

1,392

1,740

2,088

NumberofusersinCBS

200

900

1,626

2,379

3,139

3,931

4,724

Numberofcustomer
accounts

33,299524,914 1,214,427 2,076,583 3,129,0124,255,2675,532,912

Numberoffinancial
transactionsperday

3,330 78,737 242,885

519,146

938,704 1,702,1072,766,456

*Includesmobileandsatellitebranchestoo
Source:VrishtiBeniwal,WomensBanktoGet125OfficersfromPSBs,http://www.business
standard.com/article/finance/womensbanktoget125officersfrompsbs113072500727_1.html,July25th
2013

Withsuchmodel,BMBwasscheduledtocommenceitsoperationsonthebirthanniversaryoflate
Indira Gandhi on 19th November 2013.51On this, Chidambaram said, This bank will be a reality by
theendofOctoberandIwanttocrossaninvitetoMsSushmaSwarajandMrLKAdvani(seniorBJP
leaders) and all others for inauguration in November.52 Experts believed that this initiative would
make women empowerment strong in India. On November 19th 2013, Manmohan Singh, Prime
MinisterofIndiainauguratedthefirstbranchofBMBinMumbai.53Onthisoccasion,SoniaGandhi,
Chairperson, UPA54, said, Employees should be kind and supportive to young girls, show extra
compassion for the poor and underprivileged who are among those that banking sector has left
untouched.55

49

MahilaBanktoHavePayPerUseITInfraModel,
http://www.businessstandard.com/article/finance/mahilabanktohavepayperuseitinframodel
113091700842_1.html,September18th2013
50
ibid.
51
NairRemya,WomensbankLikelytoBeginwithOperationson19November,
http://www.livemint.com/Industry/lBKnEoQt5Z1d0k4gsUMfgP/Womensbanklikelytobeginoperationson19
November.html,September11th2013
52
Budget2013:IndiasFirstWomenBankbyNovember,
http://www.rediff.com/business/slideshow/slideshow1budgetwomenspsubank/20130228.htm,February28th
2013
53
PMManmohanSinghInauguratesBharatiyaMahilaBank,SoniaGandhiAttendsFunction,
http://economictimes.indiatimes.com/news/newsbyindustry/banking/finance/banking/pmmanmohansingh
inauguratesbharatiyamahilabanksoniagandhiattendsfunction/articleshow/26053310.cms,November20th2013
54
UnitedProgressiveAllianceformedin2004isacoalitionofpoliticalpartiesinIndia,ledbytheIndianNational
Congress.
55
PMManmohanSinghInauguratesBharatiyaMahilaBank,SoniaGandhiAttendsFunction,op.cit.

314-004-1

BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

BankingonWomen:TheWayAhead

On November 12th 2013, Usha Ananthasubramanian (Usha) took charge as the Chairperson and
Managing Director (CMD) of BMB.56 Commenting on the role of BMB, Usha said, The status and
economic empowerment of women in our country is very low as compared with some other
countries. Improving the status and the livelihood of women is the single most important way in
improving the standard of living. Many women do not control cash at home even in metropolitan
cities like Delhi, Mumbai etc. The bank will help in supporting women by giving advice and in a
sustainable way. When womens income increases, it will improve significantly in the society as
well57(ExhibitIV).

ExhibitIV
LeadersApproachUshaAnanthasubramanian

Q.
Isthereaneedtosetupaseparatebankforwomen?
Usha The unserved womens population is huge. According to an international management
consultantfirm,Indiaisplaced115,outofthe128countriesinthewomensempowerment
scale.Therearewomenwhohavesharpbusinesssense,butdonotgetopportunities.They
have never been encouraged or had the right kind of money to invest. There are a lot of
captivecustomersavailable.Asaconceptitisreallygoodbecauseitwilltouchthelivesofso
manywomen.

Q.
Whatisuniqueaboutthisbank?
Usha Thisisthefirstpublicsectorbankwhichhasbeencreated.Allotherpublicsectorbankshave
beenfoundedbyanindividualandthennationalized.Therehasbeennobankcreatedinthe
public sector space, they have all been acquired by an Act of Parliament. This is a unique
bankwhichhasbeenscriptedinthepublicsectorspaceanditcomeswithaRs.1,000crore
capital.Acoremanagementteamofsevenmembershasbeenformedbythegovernmentof
India,headedbyme,tosetupthebankadvisedbySBICapitalMarkets.Theapplicationwas
madeinJuneandwegotthefinallicenceby25September.TheRs.1,000crorecapitalhas
alreadyflowninandthesystemsareinplace.

Q.
Whatistheplanintermsofbranchexpansion?
Usha Weaimtohave25branchesinthefirstyearbyMarch2014and75brancheseachyearafter
that. Then, there is a sevenyear plan for the rampup. We needed people of experience
because banking is a very serious business. We have taken people from all public sector
banks. We have also recruited 30 people on board out of the 100 total people on board
currently.

Q.
Howwillyourbankbedifferentfromotherpublicsectorbanks?
Usha We must appreciate the fact that women are underutilized as an economic asset and so
thereisalotofuntappedpotential.Weneedtoengagewomeneconomically.Thisbanks
approachwillbetoinspirepeoplewithentrepreneurialskills.WewilltieupwithNGOs.We
willalsolocallymobilizewomentotraintheminvocationsliketoymakingordrivingtractors
ormobilerepairs.Wewilltrytoreachdeeperruralpockets.

Q.
Willyoulendtoandreceivedepositsonlyfromwomen?
56

UshaAnanthasubramanianAppointedCMDofBhartiyaMahilaBank,http://businesstoday.intoday.in/story/usha
ananthasubramaniancmdofbharatiyamahilabank/1/200519.html,November12th2013
57
GoalofWomenBankistoSupportWomenintheCountry:UshaAnanthasubramanian,
http://www.apnnews.com/2013/10/12/goalofwomensbankistosupportwomeninthecountryusha
ananthasubramanian/,October12th2013

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BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

Usha No. I want to make it clear that it is predominantly for women. For resources, all are
welcome. Loans also will be given predominantly to women, but we never say it is not to
others and we are targeting Rs.60 out of every Rs.100 to be lent to women. Also, as
customers,wewillnotconsideronlywomenasanindividual,butwecanhaveacompany
withawomanCEOasaborrower.Similarly,acompanywhere40%employeesarewomen
or20%directorsarewomencouldbeconsideredbyus.Wecantieupwithanursingcollege
forwomenorateacherstrainingcollegeforwomen.Besides,wewillalsolendtofirmsthat
aremakingcertainproductsexclusivelyforwomen.

Q.
Thatsaboutloans.Whataboutdeposits?
Usha Deposits will flow from everyone, but lending will be predominantly for women. Men
building womencentric projects will also be preferred. For instance, garment factories
employeesarepredominantlywomen.

Q.
Willyougivesubsidizedcredittowomen?
Usha There could be some concessions that are being thought of. We need to encourage
women... People are not worried about interest rates, but about timely credit. The
borrowers are ready to pay half a per cent more as long as you are able to meet the
timeline. The moneylender is still part of the ecosystem because he can give you money
evenatmidnight.Wearelookingtogive4.5%onsavingsaccountsuptoRs.1lakhand5%
foraboveRs.1lakhtoencouragemoresavingsandtapCASA(currentandsavingsaccount
deposits).Nosubsidiesarebeingdiscussed,butitwillalldependonthevolumes.

Q.
Inacountrywherehalfofthepopulationisstillunbanked,howgoodisanideatofocuson
onesectionofthesociety?
Usha Wearenotexcludinganyonefordeposits.Evenforadvances,menarenotexcluded.Inthe
Indiancontext,wehaveaproblemwherewomendonothavecollaterals,thepropertiesare
not in their name, and so we need to focus on taking women on the credit guarantee
platform which asks for no collateral for less than Rs.1 crore. Anyone who starts a small
enterprise,doesntneedRs.10orRs.20crore.Wearefocusingonempowermentwithsmall
amountswhichhelpsthemtogrowgradually.

1.
2.

Source:
SahuPrasanta,AtWork:WomensOnlyBanker,
http://blogs.wsj.com/indiarealtime/2013/09/03/womensonlybanker/,September3rd2013
RebelloJoel,WomensBankWillInspirePeoplewithEntrepreneurialSkills,SaysCMD,
http://www.livemint.com/Industry/ZjeTmEJjc8Jj78eqyoTJoI/MahilaBankwillinspirepeoplewith
entrepreneurialskills.html,November19th2013

Expertstoobelievedthattherewasapositivelinkagebetweenfinancialempowermentofwomen
and wellbeing of their families in particular and the economy in general. But, in order to achieve
suchgoal,therewerecertainkeysuccessfactorstobeleveragedbyBMB.Theseincludedvisionof
BMB, identification of right leaders and clients, use of local talents, customer differentiation, and
maintaining quality in product or services offerings.58 Shinjini Kumar (Shinjini), Director at
PricewaterhouseCoopers,said,Creatinganinstitutionwithcriticalmassoftalentedwomenmight
be a good starting point to tap local talent. It will also increase the visibility of women in the
decisionmakingspace.59SupportingShinjini,S.L.Rao60,said,Womenhavespecialissueswhenit
58

IstheMahilaBankaGoodIdea?,
http://www.businessstandard.com/article/opinion/isthemahilabankagoodidea113040800530_1.html,April8th
2013
59
ibid.
60
HeisasociologistbasedatBangaloreandformerDirectorGeneraloftheNationalCouncilforAppliedEconomic
Research.

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BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

comestobanking.Theyarerelativelyuneducatedandmaynotknowhowtoopenabankaccount.
Tothatextent,staffingabankpredominantlywithwomenwillhelpfemalecustomerstowalkintoa
bankwithouttoomuchhesitation.However,itsnotagoodideatorestrictthecustomerbaseonthe
basisofgender.61

With women empowerment as a key reason for its existence, analysts felt that Microfinance
InstitutionswouldfacedirectcompetitionfromBMBwhichmightadverselyimpacttheirbusinesses.
AnanonymousChiefExecutiveOfficerofaHyderabadbasedMicrofinancecompanysaid,Itseems
thecentralgovernmenthastakenacuefromthestategovernment.Thebudgethasnotofferedus
anyrelaxationsonservicetaxandremainedsilentontheprogressofthecentralactformicrofinance
institutions.Instead,wewillnowhavetocompetewithanewbankthatwillbefinanciallystronger
thanus.Itmaythreatenourexistence.62

ExpertsarguedthatBMBmustworkonsoundcommercialprinciples.Also,BMBmustnotlendtothe
clientswhowerealreadyrejectedbytheotherbanks.Atthesametime,bankingpunditsopinedthat
BMB must also draw lessons from the US. During 1975 to 1980, The US had witnessed closure of
nine such banks.63 These banks were closed down due to continuous decline in profits. In such a
scenario,itremainedtobeseenhowBMBwouldsustaininthelongrun.

AnnexureI
WomenEmpowermentFramework

Source:MarieGollaAnne,etal.,UnderstandingandMeasuringWomensEconomicEmpowerment,
http://www.icrw.org/files/publications/Understandingmeasuringwomenseconomicempowerment.pdf,
2011

61

WomensbankLikelytoBeginwithOperationson19November,op.cit.
GovernmentPlansIndiasFirstWomensBank,op.cit.
63
BhartiyaMahilaBankaWelcomeStep,ShouldWorkonSoundCommercialPrinciples,
http://articles.economictimes.indiatimes.com/20130706/news/40407694_1_banklendinggeneralbanknewprivate
banklicences,June6th2013
62

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BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

AnnexureII
Schemes&ProgrammesUnderNMEW
PovertyAlleviationandEconomicEmpowermentofWomen
AssistancetoStatesforFeedandFodderDevelopment
SchemesofDepartmentofAnimalHusbandryDairyingFisheries
SchemeonDevelopmentofInlandFisheriesandAquaculture
SchemeonDevelopmentofMarineFisheries,InfrastructureandPostharvestOperations
SchemeonFisheriesTrainingandExtension
AssistancetoCooperatives
NationalBambooMission
CentralPoultryDevelopmentOrganisation
DevelopmentofCommercialHorticulturethroughProductionandPostHarvestManagement
Promotion and Strengthening of Agricultural Mechanization through Training, Testing &
Demonstration
GraminBhandaranYojna
CapacityBuildingtoenhanceCompetitivenessofIndianAgricultureandRegistrationofOrganic
Products
TechnologyDevelopmentandTransferforPromotionofHorticulture
MarketingAssistanceScheme
SchemeofSupporttoVoluntaryAgenciesforAdultEducationandSkillDevelopment
SchemeofFundforRegenerationofTraditionalIndustries(SFURTI)
Performance&CreditRatingSchemeforSmallIndustries
EntrepreneurshipDevelopmentInstitutions(EDIs)Scheme
NationalAwardScheme/Guidelines[LaunchedbyMinistryofMicro,Small&MediumEnterprise
(MSME)]
Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of the Small Scale
Industrie
ManagementTrainingProgrammes
SchemeForMarketDevelopmentAssistanceForMSMEExporters
CreditGuaranteeCoverFundSchemeforSmallIndustries
RajivGandhiUdyamiMitraYojana(RGUMY)
RawMaterialAssistanceScheme
BambooCultivation
OrganicFarming
SwarnajayantiGramSwarozgarYojana(SGSY)
MushroomFarming
SchemeofFinancialAssistanceforPreparingYoungProfessionalinRuralAreas
MahatmaGandhiNationalRuralEmploymentGuaranteeScheme
PotteryTechnology
TechnopreneurPromotionProgramme
ConsultancyPromotionProgramme
TechnologyDevelopment&UtilizationProgrammeforWomen
IndustrialR&DPromotionProgramme(IRDPP)
NationalBackwardClassesFinanceandDevelopmentCorporation
NationalScheduledCastesFinance&DevelopmentCorporation
MarketingandExportPromotionScheme
GrantinAidSchemeExport
DiversifiedHandloomDevelopmentScheme(DHDS)
GrantinAidSchemeAmbedkarHastshilpVikasYojna
JuteManufacturesDevelopmentCouncilSchemes
SchemeforIntegratedTextileParks
GrantinAidSchemeHRDScheme
TechnologyUpgradationFundScheme

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BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

TechnologyUpgradationFundScheme(HandloomSector)
Dairy/PoultryVentureCapitalFund
AssistancetoCooperativesScheme
StrengtheningInfrastructureforQuality&CleanMilkProduction
RajivGandhiNationalCrecheScheme
TotalSanitationCampaign(TSC)
NationalRuralDrinkingWaterProgramme
MidDayMeal
KishoriShaktiYogana
TargetedPublicDistributionSystem(TPDS)
AntyodayaAnnaYojna(AAY)
OldandInfirmPersonsAnnapurna
NationalIodineDeficiencyDisordersControlProgramme(NIDDCP)
NutritionEducationandExtension
RashtriyaSwasthyaBimaYojana(RSBY)
IndiraGandhiMatritvaSahyogYojana(IGMSY)AConditionalMaternityBenefitScheme
RajivGandhiSchemeforEmpowermentofAdolescentGirls(RGSEAG)Sabla
SwayamSiddha
SchemeforWorkingWomenHostel
ShortStayHomeForWomenandGirls(SSH)
STEP(SupporttoTrainingandEmploymentProgrammeforWomen)
SocialEmpowermentAndEducation
ElementaryEducation
SecondaryEducation
VocationalizationofSecondaryEducation
AdultEducation
HigherandTechnicalEducation
Health&Nutrition
IntegratedChildDevelopmentScheme
Reproductive&ChildHealthProgramme,Ph.II(RCHII)
NationalRuralHealthMission
JananiSurakshaYojana
IndiraGandhiMatritvaSahyogYojana(IGMSY)
IntegratedChildProtectionScheme
RajivGandhiNationalCrecheScheme
TotalSanitationCampaign(TSC)
NationalRuralDrinkingWaterProgramme
MidDayMeal
Sabla
KishoriShaktiYogana
TargetedPublicDistributionSystem(TPDS)
AntyodayaAnnaYojna(AAY)
OldandInfirmPersonsAnnapurna
FoodSecurityMission
NationalIodineDeficiencyDisordersControlProgramme(NIDDCP)
NutritionEducationandExtension
RashtriyaSwasthyaBimaYojana(RSBY)
SarvaShikshaAbhiyan
EmpowermentofVulnerableandMarginalizedGroupsandWomeninDifficultCircumstances
SchemesofNationalScheduledTribesFinanceanddevelopmentCorporation(NSTFDC)
IntegratedChildDevelopmentScheme
NationalRuralHealthMission
JananiSurakshaYojana

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BharatiyaMahilaBank:AMovetoEmpowerWomeninIndia?

IntegratedChildProtectionScheme
SwadharAschemeforWomeninDifficultCircumstances
TargetedPublicDistributionSystem(TPDS)
AntyodayaAnnaYojna(AAY)
UjjawalaASchemeforPreventionofTraffickingandRescue,RehabilitationandReintegration
RashtriyaSwasthyaBimaYojana(RSBY)
SarvaShikshaAbhiyan
IndiraGandhiMatritvaSahyogYojana(IGMSY)AConditionalMaternityBenefitScheme
RajivGandhiSchemeforEmpowermentofAdolescentGirls(RGSEAG)Sabla
SwayamSiddha
SchemeforWorkingWomenHostel
STEP(SupporttoTrainingandEmploymentProgrammeforWomen)
SwarnjayantiGramSwarozgarYojana
IndiraAwaasYojana(IAY)
MahatmaGandhiNationalRuralEmploymentGuaranteeAct(MGNREGA)
Source:Schemes&Programmes,http://www.nmew.gov.in/dommain.php?lang=1&ltypeid=1

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