Press Esc to close

Govt decides to merge Mahila Bank with SBI

New Delhi, Mar 20, 2017 (PTI) 20:55 IST
Finance ministry said the SBI group already has 126 exclusive all-women branches across the country while the Bharatiya Mahila Bank (BMB) has only seven. DH  photo

Finance ministry said the SBI group already has 126 exclusive all-women branches across the country while the Bharatiya Mahila Bank (BMB) has only seven. DH photo

The government today said it has decided to merge Bharatiya Mahila Bank with the country's largest lender SBI to ensure greater banking outreach to women.

Explaining the rationale behind the merger, the finance ministry said the SBI group already has 126 exclusive all-women branches across the country while the Bharatiya Mahila Bank (BMB) has only seven.

"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 the SBI," it said.

The ministry said there was a need to achieve the objectives of affordable credit to women as well as propagation of women-centric products quickly through a wider network and lower cost of funds.

"The Government of India has decided to merge the BMB with the State Bank of India to ensure greater banking services outreach to a larger number of women, at a faster pace," the ministry statement read.

In the three years since the BMB was established, it has extended loans of Rs 192 crore to women borrowers while the SBI group has provided loans of about Rs 46,000 crore to women borrowers.

"The decision to merge the BMB with the SBI has been taken in view of the advantage of the large network of the SBI, among other things," the statement added.

The SBI has a large outreach of more than 20,000 branches and lowest cost of funds in the sector. Of the total workforce of around 2 lakh employees in the SBI, 22 per cent are women.
The BMB, set up in 2013, has 103 branches with its presence in almost all the states. The total business of the bank is about Rs 1,600 crore.

"The Union Government is committed to enhancing the access to financial services to the population at large and women in particular," the ministry said.

Under the Pradhan Mantri Jan Dhan Yojana, preference is given to women for overdraft facility. Pradhan Mantri Mudra Yojana had 73 per cent women borrowers in the previous financial year, it added.

Go to Top

Most trending stories
Photo Gallery
BJP supporters during a BJP campaign rally attended by Prime Minister Narendra Modi...

BJP supporters during a BJP campaign rally attended by Prime Minister Narendra Modi...

Canadian Prime Minister Justin Trudeau with his son Hardien walks towards...

Canadian Prime Minister Justin Trudeau with his son Hardien walks towards...

Rolls-Royce Asia Pacific Regional Director Paul Harris at the launch of eight generation...

Rolls-Royce Asia Pacific Regional Director Paul Harris at the launch of eight generation...

Pigeons fly over the historical Jama Masjid in New Delhi...

Pigeons fly over the historical Jama Masjid in New Delhi...

BJP MP Hema Malini addresses a press conference regarding Braj Holi Rasotsav...

BJP MP Hema Malini addresses a press conference regarding Braj Holi Rasotsav...

Inmates of Netaji Subhash Chandra Bose central jail perform a tribal dance...

Inmates of Netaji Subhash Chandra Bose central jail perform a tribal dance...

A view of Sunder Nursery at Hazrat Nizamuddin in...

A view of Sunder Nursery at Hazrat Nizamuddin in...

Mahila Congress activists make 'pakodas' to protest against alleged unemployement...

Mahila Congress activists make 'pakodas' to protest against alleged unemployement...

Canadian Prime Minister Justin Trudeau and First Lady Sophie Grgoire greet visitors...

Canadian Prime Minister Justin Trudeau and First Lady Sophie Grgoire greet visitors...

Gold medalist Mariama Jamanka of Germany gets lifted by silver medal winner Lauren Gibbs...

Gold medalist Mariama Jamanka of Germany gets lifted by silver medal winner Lauren Gibbs...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.