Ad Here  
March
April
May
June
July
August
 
 
Growing gainfully Smart banking in smart cities What is the priority – mergers or NPA reduction? United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu How okay are new banks? Big bank merger, bigger expectations It’s a war on black money, support it. Good, bad and ugly Banking overhauling or reorganisation? Drop in SLR- sparing lendable resources Governance in Reverse Gear? Drastic decline in asset quality Small finance banks offer high interest rates All that glitters is not gold... Fund healthcare clinics in villages... Hesitancy in announcing year-end results Thirty more cities seek to become SMART Financial inclusion vs unclaimed deposits Insatiable appetite for credit New capitals of Migrant banks Another route for achieving financial inclusion Monetary policy continues to adopt dis-inflationary path Two banks: their jubilees and performances New bank licences, at last... How ‘secure’ are the secured loans? A development bank for BRICS Needed a Banking Atlas Managing NPAs... Small is ‘more’ beautiful Bank deposits account for 46.3 per cent of household savings Well-lived... Just 660 days! Target over-ambitious... Cradle of banks to a smart city... Targets continue to be ad hoc Nothing much can happen…. Reaching the Unreached… A new development bank rising in the east… LVB- A supermarket of financial services Bottomlines shrink, bad loans rise... Too big to fail and too small to sail Aadhaar, niraadhaar and banking One down in private sector The collaboration suite of cyber criminals The paradox: clamour for the Goliath and David Reaching out: is it slowing down? Capital base of regional rural banks raised Holy or unholy? Perhaps small is more beautiful than big! Small finance payment banks... Ernakulam excels... Who is the real beneficiary? Ferrying digital banking to Lakshadweep Banking in Telangana Growing volume of stressed assets… Rationalised Why any time money? From lazy banking to easy banking Why priority status? Indian customers are tech savvy Mega merger is on A bank for women, by women Cautious and considerate Payment banks have arrived Lacklustre credit expansion Banking on Risk Grows Bigger Anytime banking to anywhere banking Cut in repo rate – lower than expected Merger mania haunts banks Emerging crisis Stage set for Indian ‘avatar’ of foreign banks Greet Lakshmi the banking robot
 
A bank for women, by women
While the long-awaited new banks are yet to make their appearance, an innovative bank for women, managed by women is expected to join the banking sector soon under government ownership.

Beginning its innings with six branches in metropolitan centres, it is proposed to have an all women bank with 25 branches by March 2014. A provision in the Union Budget for Rs.1000 crore is reported to have been already made. Steps have been initiated to invite applications from experienced women bank officers of different grades working in public sector banks. The success of this experiment is beyond doubt as already there are three big public sector banks managed by women chairpersons.

 

Gender inequality in banking

The banking sector in India has not reached out to a large percentage of female members. Female bank customers, those who have deposit accounts, are less than a fourth of the total deposit accounts handled by the banking sector. The number of deposit accounts of female customers is 21.84 crore out of the total deposit accounts of 90.32 crore as on March 2012. As the female population is 58.64 crore, hardly 37 per cent of them can be considered having access to banking. Remember, as the number of deposit accounts is not equal to the number of depositors, the percentage of female customers would be less than 37 per cent.

 

Employment in banks

Banking sector has been employing women in good number during the last fifty years. However, majority of them were working in clerical cadres, foregoing transfers and promotions. The ambitious among them did accept the challenges and went up in the hierarchy. Quite a few ladies have entered the boardrooms of big public sector banks. Incidentally, the Reserve Bank of India, the regulator of banking sector, also had two ladies as deputy governors till recently.

As a result of rapid branch expansion adopted by the banking sector, the number of bank employees has increased to 11.75 lakh, of which women employees are 2.15 lakh as on March 2012. As far as bank officers are concerned, they are 5.02 lakh in number, while women officers are only 84,375. The total number of women staff working in rural and semi-urban areas, is 56,324. Mobility of female staff, both spatial and hierarchical, has been quite fast in the recent years unlike in the past.

In the current selection process of bank officers conducted at the apex level by the Institute of Banking Personnel Selection (IBPS), women are found to be participating very successfully. Some banks are recruiting officers in large numbers and training them through outside agencies by offering incentives in terms of education loans. In the initial stages, the new Bank can take trained officers to begin the branch level business.

 

Strategy for success

To be cost-effective and accessible to large number of ‘unbanked households’, the new bank could adopt the branchless banking model by opening large number of ultra small branches in rural and semi-urban centres. The Branchless Banking Centres (BBC) are to be managed by selected local women designated as business correspondents. Women are more suitable for this job, as they would be rendering this service from their homes. The informal atmosphere at such centres makes the villagers quite comfortable in doing their banking transactions. The scope for setting up such BBCs is immense, as there are 6.31 lakh villages in India and the number of rural branches is less than 40,000 at present. Even if the banking sector proposes to extend this facility to one lakh villages, it may require one lakh business correspondents. The Mahila Bank should opt for a major share in this plan.

Also Self Help Groups can be gainfully used for business expansion. Majority of their members are women from middle income group living in towns and villages. These groups are instrumental in reaching out to lakhs of households for expanding sales of some FMCG companies. Enhancing the level of financial literacy can be attempted through such field level workers for attaining financial inclusion.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com