 "Usha Ananthasubramanian")
Usha Ananthasubramanian, chairperson and managing director of Bharatiya Mahila Bank (BMB), the government’s initiative in establishing the country’s first bank which focuses on women, talks to Abhijit Lele on initial plans of the bank that goes live on Tuesday. Edited excerpts:
In last two decades many new banks came up in India, how you are going to be different (stand out) from them if compared to their initial days.
We are starting operations on pan India basis from day one. Many of them began first by focusing on raising low cost deposits and that too from one place. BMB will accept deposits as well as give loans from the start.
While speaking about asset (loan) side, what products you are looking as suitable for women.
While bank will do business with women across economic strata – high networth, middle class to low income group, there will be emphasis on funding for skills developments to help in economic activity. We are looking at assistance (credit) to set up well managed day care centres and also to start organised catering services.
Competition is intense amongst commercial banks and things are all the more tough in present environment marked by slowdown. How would you attract business?
BMB is ready for market place and work to innovative and concentrate on customer service. The thrust is on timely credit and right kind of product. We will have some leeway in quoting (giving) little higher rate of interest in attracting resources, subject to regulatory norms.
Initially, you are setting up branches in metro and urban areas. With thrust on financial inclusion, when would bank venture into rural areas where need to reach out to women is felt the most?
Though bank makes debut in metro and urban centres, we will enter into rural areas before March 2014. Banks will follow RBI’s norm to open 25% of branches in underserved and unbanked areas. We are looking at centres where working women population is significant. For instance it could a place that has large women farm labour.
All commercial banks are running operations with robust high technology platform. Where does BMB stand in this respect?
We are no different. Bank will work with on Core Banking Platform (CBS) from day one. FIS, US based IT provider of banking and payments technologies, is giving software support and Wipro will roll out hardware.
Being commercial entity when do you expect bank to break-even?
It will work as viable profit making entity. This will be commercial a organization. Initially expectation is about making operations profitable from fourth year.
Most public sector banks have raised capital from markets for growth? When does bank intends to list itself?
Bank will have capital base of Rs 1,000 crore in beginning. First priority is to get stability and become visible. In long term we will look at various routes to raise capital.
