India Tuesday opened its first women-focused bank called "Bharatiya Mahila Bank" with a view to enhance banking services to the fairer sex nearly three-fourths of whom currently don't have bank accounts.
Prime Minister Manmohan Singh accompanied by UPA (United Progressive Alliance) chairperson Sonia Gandhi inaugurated the first bank at the Air India building in Nariman Point.
Another six branches were inaugurated through video-conferencing.
"The Bank will initially have seven branches, which will go up to 25 by March 2014, and will focus equally on rural and urban areas," the prime minister said in his inaugural speech at the event.
"It will offer special products keeping in view the needs of women entrepreneurs. It is a challenging task ahead for those who have been given the responsibility of beginning the operations of this Bank and nurturing it in its initial years," he said.
"But it is also a meaningful and fulfilling endeavor which they have been entrusted with," the prime minister added.
It will primarily serve women but later deposits will also be taken from men.
Usha Ananthasubramanian, who was executive director of Punjab National bank, is the chairperson of the bank.
The government had announced about the opening of the bank in the annual budget for 2013-14 fiscal presented in February.
Addressing the opening session, Finance Minister P. Chidambaram said Bharatiya Mahila Bank will be a universal bank and will provide every banking service and facility that is provided by comparable public and private sector banks.
"It will establish branches all over the country and, in due course, some branches abroad," Chidambaram said.
The finance minister asked private sector also open such women focused banks.
Chidambaram pointed out that only 26 percent women in India have a bank account.
"Since fewer women than men have bank accounts, fewer women are able to get loans. Per capita credit in the case of women is 80 percent lower than in the case of men," he said.
"Hence the need for a bank that predominantly serves women -- from the self-help groups to the small business women and from the working woman to the high networth individual," Chidambaram added.
The opening of the bank coincides with the 96th birth anniversary of late prime minister Indira Gandhi.
"On behalf of the Government, I made a promise on Feb 28, 2013. I am glad that we are able to fulfil that promise today, a very special day that marks the birth anniversary of a very special person, Smt Indira Gandhi," Chidambaram said.
