Mahila bank may merge with SBI

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 Stock Market Trading Tips

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 Astrology & Numerology books

According to analysts, such a merger would not be negative for State Bank of India but would in fact boost the bank's capital adequacy ratio. The bank has hardly any non-performing assets as it does not have any exposure to industry. 

Last year, finance minister Arun Jaitley said he intends to reform the sector and give banks more autonomy to expand faster by mergers and consolidation. "There have been some suggestions for consolidation of public sector banks. The government, in principle, agrees to consider these suggestions," he had said. 

SBI, which is the country's largest lender, had in past merged its two of its associate banks — State Bank of Saurashtra and State Bank of Indore. SBI merged State Bank of Saurashtra with itself in 2008. Two years later in 2010, State Bank of Indore was merged with the parent. Among the public sector banks, BMB is the only unlisted entity Jupiter Astro Book 2015-2016