Bharatiya Mahila Bank

Bharatiya Mahila Bank
source
Name	Bharatiya Mahila Bank
Founded	2013
Founder	Manmohan Singh government initiative; supported by Pratibha Patil?
Defunct	2017 (merged)
Fate	Merged with State Bank of India
Headquarters	New Delhi
Key people	A. P. Shah? Chanda Kochhar?
Industry	Banking
Products	Microfinance, Loans, Savings, Insurance

Bharatiya Mahila Bank was a specialised Indian banking institution launched in 2013 to enhance financial inclusion for women across India. The initiative was announced by leaders associated with the United Progressive Alliance era and linked to high-profile figures from Indian National Congress leadership. The bank operated until consolidation with a major public sector bank, part of broader reforms in the Indian banking sector.

History

The launch of the bank was announced during the tenure of Manmohan Singh and associated with policymakers from Ministry of Finance (India) and leaders in the United Progressive Alliance II coalition. Public discussions referenced precedents such as the Reserve Bank of India regulatory framework and debates in the Lok Sabha and Rajya Sabha. Prominent commentators compared the initiative to programmes championed by figures like Indira Gandhi and to microfinance efforts linked to Muhammad Yunus and Grameen Bank. The institution began operations with a focus on states including Uttar Pradesh, Tamil Nadu, Maharashtra, and West Bengal, and interacted with development actors such as NABARD and Small Industries Development Bank of India. In 2017 the bank was merged with State Bank of India as part of consolidation announced by the Ministry of Finance (India) and overseen by regulators including the Finance Commission of India and the RBI Governor office.

Objectives and Mission

The bank’s stated aims drew on national strategies associated with National Rural Livelihood Mission and referenced policy goals similar to those outlined by the NITI Aayog and the Planning Commission of India. Its mission emphasized extending credit to women entrepreneurs in sectors linked to Ministry of Micro, Small and Medium Enterprises, promoting schemes akin to those of Mahatma Gandhi National Rural Employment Guarantee Act beneficiaries, and supporting self-help groups modeled after programmes from National Bank for Agriculture and Rural Development. Objectives also invoked targets found in reports by international bodies such as the World Bank and the International Monetary Fund concerning gendered access to finance.

Products and Services

Products included tailored savings accounts, microcredit, housing loans, education loans, and working capital financing structured similarly to offerings from public sector banks like Punjab National Bank and Bank of Baroda. Specialized programmes targeted artisans connected to initiatives like Khadi and Village Industries Commission and small producers participating in fairs aligned with Ministry of Textiles outreach. The bank collaborated with insurers regulated by Insurance Regulatory and Development Authority of India and offered remittance and digital payment services in the ecosystem alongside platforms influenced by National Payments Corporation of India and schemes echoing Pradhan Mantri Jan Dhan Yojana. It also sought to provide financial literacy consistent with campaigns run by Reserve Bank of India and training models from institutions such as Indian Institute of Management Ahmedabad and Tata Institute of Social Sciences.

Organizational Structure and Governance

The governance framework involved oversight by boards comparable to those of other public-sector entities like Life Insurance Corporation of India and directors drawn from cadres connected to Indian Administrative Service and Indian Revenue Service. Regulatory supervision referenced the mandates of Reserve Bank of India and coordination with Ministry of Finance (India). Strategic planning and audit practices aligned with standards used by Comptroller and Auditor General of India and corporate governance norms observed by listed institutions including State Bank of India and ICICI Bank. The merger process was administered through decisions involving senior officials from Department of Financial Services and institutional advisors resembling those from World Bank and Asian Development Bank.

Financial Performance and Impact

The bank reported metrics in its early years comparable to targeted outreach programmes run by National Rural Livelihood Mission and microfinance arms of entities like Bandhan Bank. Its portfolio composition reflected lending patterns to sectors parallel to those tracked by Ministry of Micro, Small and Medium Enterprises statistics and development indicators used by World Bank country reports. Impact assessments referenced gender-disaggregated financial inclusion indicators similar to analyses produced by UN Women and International Labour Organization. The consolidation with State Bank of India was justified by policymakers citing scale efficiencies and capital adequacy considerations under norms of the Reserve Bank of India.

Criticism and Controversies

Critics drew on debates familiar from cases involving ICICI Bank and Punjab National Bank controversies, arguing that a gender-specific bank could duplicate services offered by existing institutions such as State Bank of India and Canara Bank. Opponents invoked fiscal scrutiny akin to reviews by the Comptroller and Auditor General of India and questioned sustainability relative to the mandates of Reserve Bank of India. Political commentary referenced partisan disputes among leaders from Bharatiya Janata Party and Indian National Congress, and media coverage compared the proposal to similar gender-targeted initiatives globally, including critiques levelled at programmes affiliated with Muhammad Yunus. Other controversies centered on governance, capitalisation and strategic fit within reforms promoted by figures like Arun Jaitley and institutional consolidation trends endorsed by Nirmala Sitharaman.

Category:Defunct banks of India