Bharatiya Mahila Bank to be merged with State Bank of India

The finance ministry says decision to merge Bharatiya Mahila Bank with SBI has been taken to ensure greater banking services outreach to more women at a faster pace.

In the three years since Bharatiya Mahila Bank was established, women have been extended loans of Rs192 crore by Bharatiya Mahila Bank and about Rs46,000 crore by SBI group.

SBI has a wide reach of more than 20,000 branches and the lowest cost of funds among banks. Out of its 200,000 workforce, 22% are women. SBI group has 126 all-women branches across the country, while Bharatiya Mahila Bank has seven.

This merger will help SBI get paid capital worth Rs1,000 crore lying on the books of BMB.

The government on 23 February said 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.