Union Finance Minister P. Chidambaram, speaking at the inaugural of a new branch of Canara Bank at Siravayal, near Karaikudi, has said that the proposed exclusive bank for women, announced in the Union Budget is aimed at correcting the prejudice against women in lending financial assistance by banks.
He said the exclusive bank would be started this year with six branches and branches will be opened in all the states in a phased manner.
The reason for starting the bank for women is not because women do not get financial assistance in other banks, but there has been an inadvertent bias and prejudice against women in granting loans.
The proposed bank will lend financial assistance for self-employment, women empowerment and education, he said.
The Reserve Bank of India has stipulated a capital investment of Rs 500 crore for starting a new bank; yet, the proposed bank will be started with an outlay of Rs 1,000 crore, he said amid cheers by a large number of women at the function, said the sources.
R.K. Dubey, Chairman and Managing Director, Canara Bank, in his welcome address, said the bank’s Madurai circle had deposits of Rs 4,936 crore and advances of Rs 6,138 crore , at the end of December 2012, the sources added.