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This could be another instance of women power on display.
The proposed ‘Women Only’ bank, announced by Finance Minister P. Chidambaram in his Budget speech of 2013, may not pose a serious competitive threat to other public sector banks, but it could nevertheless wean away women customers, both existing and new comers.
The business plan of the new bank, which is in the making, envisages a steady ramp up of its branch and ATM networks across the country.
From 39 branches (including mobile and satellite branches) and 127 ATMs by the end of the first year of its operations, the bank is expected to bolster its physical network to 778 branches and 2,088 ATMs by the end of the seventh year of operations.
It is projected that the new bank will have 33,299 customer accounts by the end of the first year of operations and 55,32,912 customer accounts by the end of the seventh year.
To begin with, the bank will have a branch each in eight cities — Kolkata, Guwahati, Chennai, Bengaluru, Jaipur, Lucknow, Mysore and Indore.
It will be headquartered in Delhi and is expected to be operational by November 2013.
The bank, whose key objective is to focus on the banking needs of women and promote economic empowerment, received in-principle approval from RBI on June 27, 2013.
The critical theme of the business strategy is to establish a bank, which focuses on the needs of women, besides becoming the principal vehicle for propagation of financial inclusion in the hitherto unbanked areas of the country.
According to the strategy, the bank’s business would be customer-focussedrather than account-focused.
It would set up new channels for distribution of products and services to customers, and aim for high operational efficiency and better resource and performance management.
Usha Ananthasubramanian, Executive Director, Punjab National Bank, who is also part of the core management team, is expected to take charge as the first chief of the new bank.
A provision of Rs 1,000 crore as initial capital has been made for the same.
ramkumar.k@thehindu.co.in
Source: thehindubusinessline
The proposed ‘Women Only’ bank, announced by Finance Minister P. Chidambaram in his Budget speech of 2013, may not pose a serious competitive threat to other public sector banks, but it could nevertheless wean away women customers, both existing and new comers.
The business plan of the new bank, which is in the making, envisages a steady ramp up of its branch and ATM networks across the country.
From 39 branches (including mobile and satellite branches) and 127 ATMs by the end of the first year of its operations, the bank is expected to bolster its physical network to 778 branches and 2,088 ATMs by the end of the seventh year of operations.
It is projected that the new bank will have 33,299 customer accounts by the end of the first year of operations and 55,32,912 customer accounts by the end of the seventh year.
To begin with, the bank will have a branch each in eight cities — Kolkata, Guwahati, Chennai, Bengaluru, Jaipur, Lucknow, Mysore and Indore.
It will be headquartered in Delhi and is expected to be operational by November 2013.
The bank, whose key objective is to focus on the banking needs of women and promote economic empowerment, received in-principle approval from RBI on June 27, 2013.
Business strategy
The business strategy of the ‘women only’ bank has been drawn up by a core management team led by M.B.N Rao, former Chairman and Managing Director of Canara Bank.The critical theme of the business strategy is to establish a bank, which focuses on the needs of women, besides becoming the principal vehicle for propagation of financial inclusion in the hitherto unbanked areas of the country.
According to the strategy, the bank’s business would be customer-focussedrather than account-focused.
It would set up new channels for distribution of products and services to customers, and aim for high operational efficiency and better resource and performance management.
Usha Ananthasubramanian, Executive Director, Punjab National Bank, who is also part of the core management team, is expected to take charge as the first chief of the new bank.
A provision of Rs 1,000 crore as initial capital has been made for the same.
ramkumar.k@thehindu.co.in
Source: thehindubusinessline
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