The decision to merge the Bharatiya Mahila Bank (BMB) with State Bank of India (SBI) is aimed for ensuring greater banking services to outreach a larger number of women and at a faster pace, the finance ministry said.
The decision have been taken to merge the Bharatiya Mahila Bank (BMB) with the State Bank of India (SBI) is aimed to ensure greater banking services to outreach a larger number of women and at a faster pace, the finance ministry said on Monday.
“The objectives that could make a affordable credit to women as well as propagation of women-centric products that are need to be quickly achieved through a wider network and lower cost of funds,” the ministry has said in a statement. For the past three years since BMB was established, it has offered loans of Rs. 192 crore to women, while the SBI group had provided huge loans of about Rs. 46,000 crore to women. SBI has more than 20,000 branches all over India and the lowest cost of funds in the banking sector, the ministry said.
Last month, the Cabinet approved the mergering of five associate banks with SBI, paving the way for the first such wide-scale consolidation exercise for creating a banking behemoth. After the Cabinet meeting held on February 15, finance minister Arun Jaitley has said that although the Cabinet didn’t take up any proposal for the mergering of BMB with SBI, it was very much under the government’s consideration.
The decision to merge BMB with SBI has been taken in a view for the advantage of the large network of SBI, amongst other things, the finance ministry said on Monday.