The government has approved the merger of Bharatiya Mahila Bank (BMB) with State Bank of India (SBI). “The government of India has decided to merge BMB with State Bank of India to ensure greater banking services outreach to a larger number of women, at a faster pace,” the finance ministry said in a statement. “The proportion of administrative and managerial cost in the BMB is much higher to reach the same coverage. For the same cost, a much higher volume of loans to women could be given through SBI,” it said.
According to SBI, although the addition of 103 branches of BMB and business of about Rs 2,000 crore would not make significant impact on the branch network and business levels of SBI, it will be ensured the merger strengthens and reinforces SBI’s focus on financing of women entrepreneurs to fulfil the objectives behind setting up of BMB.
“…SBI has got an exposure of more than Rs 46,000 crore to women customers segment of the bank,” State Bank of India said. “Along with the merger of the five associate banks with SBI, this merger constitutes an important step towards strengthening the Indian banking sector through consolidation of public sector banks. A formal notification in this regard is awaited from the government,” it added.