My View on "Bharatiya Mahila Bank: Let this not be another UID...":
Banking by gender was initiated by the SBI with the ushering in of a Streeshakti scheme. It did not move forward. A scheme with gender bias did not succeed but would a bank itself dedicated to women succeed although I would wish for its success. But the factors for its success just do not exist from the website displayed. The business model is basically flawed. Take for example the Sreenidhi SHG Bank with AP State patronage. The NPAs are already mounting in a year's time. it is dedicated to women SHGs. The Bank would like to take deposits from men but lends only to women! Supposing these male depositors want to borrow against their deposits - would they be denied the loans? Second, there are lots of women enterprises currently in the MSME sector financed by several other banks - both the private and public sector. Will they be taken over by this BMB in the first eight cities where it is planning to open branches? Is such takeover possible if the borrowing enterprises would not like to shift? Some of these are in industrial estates/industrial clusters closer to the banks from where they borrowed. There are many issues to the capital adequacy maintenance, security etc.
- Yerram Raju
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