Merger Of Mahila Bank With SBI ?

Merger Of Mahila Bank With SBI ?

Mahila bank may merge with SBI-Times of

 India-30th June 2015

MUMBAI: Former finance minister P Chidambaram's brainchild the Bharatiya Mahila Bank (BMB), launched only 20 months ago, may be merged with the State Bank of India. According to sources, the merger proposal is being discussed within the government considering that the newly started bank will find it a challenge to build a distribution reach.

The bank was started with a capital of Rs 1,000 crore which was provided under the budget. The bank has opened 62 branches, mobilized deposits of around Rs 800 crore and has loans of around Rs 400 crore. Following the announcement in the 2013 budget, the bank was launched in record time in November 2013. But despite the speed of the roll-out, the bank's coverage has been very meagre and large lenders have been able to open more women's account during the same period.

"I do not know the basis of this news and I have not been approached on this...I think this is something they are discussing at the Cabinet," said SBI chairman Arundhati Bhattacharya when asked about the likelihood of a merger.