all women bank

P.KULSHRESTHA(67)-‐-‐A.DHAWAN(69)

BUSINESS ECONOMICS-‐I [203]

PROJECT

SUBMITTED TO-‐ DR.YOGIETA S. MEHRA DEPARTMENT OF BUSINESS STUDIES

DEEN DAYAL UPADHYAYA COLLEGE

ABHISHEK DHAWAN PRITISH KULSHRESTHA 12/BBS/0069 12/BBS/0067 SEMESTER-‐II SEMESTER-‐II

UNION BUDGET FY 2013-14

86. Financial inclusion has made rapid strides. All scheduled commercial banks and all RRBs are on core banking solution (CBS) and on the electronic payment systems (NEFT and RTGS). We are working with RBI and NABARD to bring all other banks, including some cooperative banks, on CBS and e-payment systems by 31.12.2013. Public sector banks have assured me that all their branches will have an ATM in place by 31.3.2014. 87. Women are at the head of many banks today, including two public sector banks, but there is no bank that exclusively serves women. Can we have a bank that lends mostly to women and women-run businesses, that supports women SHGs and women’s livelihood, that employs predominantly women, and that addresses gender related aspects of empowerment and financial inclusion? I think we can. I therefore propose to set up India’s first Women’s Bank as a public sector bank and I shall provide `1,000 crore as initial capital. I hope to obtain the necessary approvals and the banking licence by October, 2013, and I invite all Hon’ble Members to the inauguration of the bank shortly thereafter.

Budget 2013-‐2014 Speech of P. Chidambaram

Minister of Finance February 28, 2013

THE ANNOUNCEMENT

Finance Minister P Chidambaram in his budget speech announced the setting up of India's first public sector women's bank with an initial capital of Rs 1,000 crore. The bank will be served by women bankers and address the financial needs of women citizens. The bank aims to lend mostly to women and women-run businesses that support women self-help groups and their livelihood. You have been appointed by the Government to analyze the possible implementation challenges, capture systematic risks, and suggest initiatives to tackle these issues and emerge as a successful player in the banking sector, which is now a very competitive environment.

“Some women have extremely good business ideas requiring larger loans, but they face discrimina^on in accessing such loans, with the result that their businesses collapse because they are forced to purchase inferior equipment or materials.” SUPPORTED BY THE GOVERNMENT OF INDIA WE BRING TO YOU ALL-WOMAN BANK

ALL WOMEN BANK (A GOVERNMENT OF INDIA INTIATIVE)

•  Low demand is often cited as a reason for women’s low access to finance

•  Many women entrepreneurs self-finance the growth of their businesses, but growth is likely hindered by their current financing practices

•  Women’s entrepreneurship is high, but skewed towards smaller firms.

•  Women-owned SMEs tend to be concentrated in less profitable industries

•  The choice of enterprise/economic activity is the critical piece to understand gender gaps in entrepreneurial opportunities.

•  Women entrepreneurs are more likely to be in the informal sector, running smaller firms

•  Women are more likely to be home-based and operate within the household than are men heading enterprises

FINANCIAL ISSUES


•  Brand loyalty and mul-ple sales points: Women entrepreneurs appear less likely than men to switch financial service provider and more likely to purchase several financial products from the same. This reduces acquisi^on cost despite the ini^al somewhat higher cost of including under-‐banked or non-‐banked women entrepreneurs in the customer base in the first place.

•  Health of Por7olio: Porcolios of loans provided to women entrepreneurs

exclusively appear to have a lower share of non-‐performing loans (NPLs), for a variety of reasons, including women entrepreneurs’ greater interest and willingness to restructure early.

•  Servicing women-‐owned enterprises successfully may require financial services firms to tailor their products to the specific needs of this market segment.

THE SILVER LINING


RELATE AND CATER Five criteria have TO BE used to evaluate the relevance of the submieed models: � •  Leverage: Models should maximize the leverage of public intervenôns — if any —

in catalyzing private MSME finance to a maximum number of firms.

•  �Scale and Sustainability: Models must credibly demonstrate either exis^ng relevant scale or potenâl to be scaled up over the long term, and must be able to funcôn on a sustainable basis.

•  �Replicability: Models should be able to prove their potenâl to be replicable in other countries and contexts.

•  �Results and Track Record: Models should have a clear and measurable financial access impact on MSMEs, as demonstrated from the results from pilot or empirical tes^ng.

•  � ImplementaVon Capacity: Models must have a realiS^c ^meframe for implementaôn and be suited to the technical, legal, and financing capacity of the IFIs.


PROPOSED PERFORMA


THE CRM What can you use a CRM system for? •  Profiling customers (and prospects) •  Tracking all contacts with a customer •  Managing all communicaôns, including leeers and proposals •  Managing sales campaigns and tracking results •  Managing problems and complaints •  Improving customer service Benefits •  increased sales by understanding trends and needs beeer •  iden^fying needs more effec^vely •  enhanced customer sa^sfacôn and retenôn •  increased value from your exis^ng customers •  reducôn in costs associated with suppor^ng and servicing customers •  increase your overall efficiency •  reducôn in total cost of sales


STRATEGIC PLACEMENT


THE PROBLEMS •  LIMITED HUMAN RESOURCES •  LIMITED CAPITAL INVESTMENT •  NO PRE-‐ESTABLISHED INFRASTRUCTURE •  PAN-‐INDIA OPERATIONS NEEDED

THE PLAN •  SET-‐UP BRANCHES IN THE SUPRE-‐METROS (DELHI,MUMBAI,CHENNAI,BANGALORE,CALCUTTA) •  SET-‐UP CUSTOMER RELATION OFFICES IN SUPPORT CITIES

(CHANDIGARH,GURGAON,PUNE,HYDERABAD,BHOPAL,GUWAHATI) •  FOR EFFECTIVE PAN-‐INDIA OPERATIONS CLUB WITH PRIVATE AND GOVT. BANKS

FOR GROUND WORK(FILING,REQUEST,WITHDRAWLS) •  FOR THE ABOVE AGREE UPON A POLICY SIMILAR TO THE ATM-‐AGREEMENT OF

GIVE-‐TAKE-‐SETTLE. •  FOR BUILDING CONFIDENCE HIER A PRIVATE PROMOTION FIRM THROUGH

TENDERS FOR CUSTOMER CHANNEL ESTABLISHMENT.


THE GOVERNMENT IN ACTION – NEW SCHEMES •  Reserve Bank of India (RBI) in 2000 asked public sector banks to disaggregate and

report the percentage of credit to women within their total lending. •  The aggregate net bank credit to women increased to 6.3 percent in 2009, with 25

banks reaching the target. •  Though the full impact of the policy requires further exploraôn, tracking data has

increased awareness of women’s low access levels. •  Furthermore, India’s 11th Plan encourages ownership rights for women by offering

incen^ves for owner-‐ ship of property. •  Women homebuyers benefit from tax exempôns, lower stamp duês, and easier

avail-‐ ability of home loans. •  State and local governments in Uear Pradesh, Delhi, Orissa, and Punjab have

launched some iniâ^ves in this regard. •  For example, in 2002, the state of Delhi cut stamp duty rates from 8 to 6 percent for

women owners. In case of joint ownership by men and women, the duty is 7 percent.

•  Using the opportunity that India’s favorable macro-‐environment provideS, WE WILL advocate for stamp duty reducVon for joint property registraVon for women borrowers, and honor and reward husbands that undertake such joint registraVons.


THE NEED OF THE HOUR

•  Specific steps to address gender gaps in economic rights include: � Applying cons^tuônal provisions of nondiscriminaôn in areas of marriage, property, and inheritance. �

•  Giving women equal say over the administraôn and transfer of marital property. �

•  Limi^ng or removing head-‐of-‐household laws that allow husbands to deny permission to their wives to engage in a trade or profession, or to choose the marital home.

•  �Removing provisions requiring a husband’s signature to enter into contracts or open a bank account.

� •  Recognizing women’s rights to marital property on divorce or in

inheritance.

•  Facilita^ng joint ^tling of land and other assets and allowing married women equal access to naônal iden^ty documents, such as passports, which can be prerequisites for financial transacôns.


THE SHORT TERM GOALS •  BUILD CAPACITY OF FINANCIAL INSTITUTIONS TO BETTER SERVE WOMEN

ENTREPRENEURS

•  EXPAND RESEARCH INTO THE MOST EFFECTIVE WAYS TO COMBINE ACCESS TO FINANCE AND BUSINESS TRAINING

•  APPOINT A NATIONAL LEADER/CHAMPION FOR WOMEN SMES

•  BUILD MORE INCLUSIVE PUBLIC-‐PRIVATE DIALOGUE PROCESSES BY EMPOWERING WOMEN’S NETWORKS AND ASSOCIATIONS TO ACTIVELY PARTICIPATE IN THE POLICY DIALOGUE

•  STRENGTHEN WOMEN ENTREPRENEURS’ HUMAN CAPITAL BY DEVELOPING ENTREPRENEURIAL EDUCATION AND TRAINING OPPORTUNITIES THAT ARE BETTER ALIGNED WITH THE SPECIFIC NEEDS OF WOMEN ENTREPRENEURS


UTILIZE EFFECTIVELY AND GROW INDIA THANKYOU !


all women bank

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