Bharatiya Mahila Bank (BMB) was an Indian public sector banking company that focused on the financial inclusion and economic empowerment of women. Established by the Government of India, the bank had the distinction of being the first of its kind in the country, with operations primarily oriented towards women customers, women-owned enterprises and women's self-help groups, while also accepting deposits from the general public.
| Type | Public sector bank |
|---|---|
| Industry | Banking, financial services |
| Founded | 19 November 2013 |
| Founder | Government of India |
| Headquarters | New Delhi, India |
| Area served | India |
| Key focus | Banking services for women |
| Status | Merged with State Bank of India (1 April 2017) |
Background
The proposal for a women's bank was announced by Union Finance Minister P. Chidambaram in the Union Budget speech of 2013–14 presented to Parliament on 28 February 2013. The initiative was aimed at addressing gender-specific gaps in access to formal banking and credit, particularly for women entrepreneurs and women in the unorganised sector. The Government of India provided the initial capital for the bank.
Establishment and operations
Bharatiya Mahila Bank was incorporated as a public sector undertaking and inaugurated on 19 November 2013 in Mumbai by the then Prime Minister Manmohan Singh. The date coincided with the birth anniversary of former Prime Minister Indira Gandhi. The first branch was opened in Mumbai, with additional branches launched on the inaugural day in other cities, and the network expanded across India in the following years.
Usha Ananthasubramanian was appointed as the first Chairperson and Managing Director of the bank. The bank's headquarters was located in New Delhi.
Although the bank's lending was primarily directed towards women borrowers, both men and women were permitted to open deposit accounts. The product portfolio included savings and current accounts, fixed and recurring deposits, and a range of loan products designed for women, such as loans for small businesses, education, housing and entrepreneurship.
Merger with State Bank of India
In March 2016, the Union Cabinet approved the merger of Bharatiya Mahila Bank with the State Bank of India, along with the merger of SBI's five associate banks. The merger took effect on 1 April 2017, after which BMB ceased to exist as a separate entity and its operations, branches and customers were absorbed into the State Bank of India. The government cited operational scale, reach and cost-efficiency as reasons for consolidation, while announcing that the focus on women's empowerment would continue through dedicated SBI initiatives.
Significance
Bharatiya Mahila Bank was a notable policy experiment in gender-focused public banking in India. While its independent existence lasted less than four years, it drew attention to the question of women's access to credit and contributed to wider discussions on financial inclusion. Critics had argued that a separate institution was not necessary to achieve the stated objectives, while supporters viewed it as a symbolic and practical step towards gender-sensitive banking.
Timeline
- 28 February 2013 – Proposal announced in the Union Budget by Finance Minister P. Chidambaram.
- 19 November 2013 – Bank inaugurated in Mumbai by Prime Minister Manmohan Singh.
- 2013–2016 – Expansion of branch network across Indian states.
- March 2016 – Union Cabinet approves merger with State Bank of India.
- 1 April 2017 – Merger with State Bank of India takes effect; BMB ceases to function as an independent bank.
Related topics
- State Bank of India
- Reserve Bank of India
- Public Sector Banks in India
- Financial Inclusion in India
- Ministry of Finance (India)
- Usha Ananthasubramanian
- Manmohan Singh
- P. Chidambaram
References
- Wikidata entry: Q15176716
- Union Budget of India, 2013–14, Ministry of Finance, Government of India.
- Press releases of the Government of India and the State Bank of India regarding the merger of associate banks and Bharatiya Mahila Bank, 2016–2017.