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Bharatiya Mahila Bank is history, set to merge with SBI

SBI is in the middle of merging its own five associate banks with itself. From April 1, six banks -- the five associate banks and BMB -- will be merged with SBI.

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Bharatiya Mahila Bank (BMB), which started with much fanfare to nurture the entrepreneurial skills of women by the former finance minister P Chidambaram in 2013, will now be merged with the State Bank of India (SBI).

The merger is part of the government's proposed moves to usher in reforms in the banking sector where consolidation will be the way forward. The government is in the process of identifying smaller banks to be merged with bigger banks for a stronger thrust, especially in the semi-urban and rural areas.

SBI is in the middle of merging its own five associate banks with itself. From April 1, six banks -- the five associate banks and BMB -- will be merged with SBI.

The finance ministry said in a late evening press release that the government has approved the merger of BMB with SBI.

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

Post the merger, about 103 branches of BMB and business of approximately Rs 2,000 crore would come into SBI's books. Employees of BMB were all women employees of various public sector banks who had joined the bank on deputation. These employees will now be relocated to their respective banks.

The release said, "The merger would strengthen and reinforce SBI's focus on financing of women entrepreneurs."

SBI has also got a substantial exposure of more than Rs 46,000 crore to women customers of the bank. 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% are women.

"Along with the merger of the five associate banks with SBI, this merger constitutes an important step towards strengthening the Indian banking sector through consolidation of public sector banks," the release added.

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