GoI on 20th March 2017 announced the decision to merge Bharatiya Mahila Bank with the State Bank of India to ensure greater banking services outreach to women at a faster pace.
The decision to merge BMB with SBI has been taken in view of advantage of a large network of SBI.
In the 3 years since BMB was set up, women have been granted loans of INR 192 crore by the bank and INR 46,000 crore by SBI.
SBI has a wide range of more than 20,000 branches and the lowest cost of funds among banks.
Of the 200,000 workers, 22% are women. SBI has 126 all women branches across the country. BMB has 7.
This merger will help SBI get paid capital worth INR 1,000 crore lying on the books of BMB.
Bharatiya Mahila Bank had a loan book worth INR 620 crore and deposit base worth INR 927 crore at the end of March 2016.
The government on 23 February indicated 1 April will be the record date for the merger of SBI with five of its associate banks—State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad and State Bank of Patiala.
All the shares of these associate banks would cease to exist as individual entities and would stand transferred to SBI.
According to the RBI, all branches of associate banks will now function as branches of SBI.
After the merger with its associate banks, SBI is set to be among the top 50 large banks of the world.
SBI was ranked 52 in the world in terms of assets in 2015 and a merger will see it break into the top 50.
Bharatiya Mahila Bank: Know More- Industry: Banking, Financial services
- Founded: 2013
- Headquarters: Delhi, India
- Head: S. M. Swathi (ED)
- Products: core banking, credit card, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management
- Owner: Government of India
