Q. The central government recently announced its decision to merge Bharatiya Mahila Bank (BMB) with State Bank of India (SBI) from April 1. The most valid reason behind this merger could be:
A. greater banking services outreach to more women
B. merger is the part of central government’s banking reforms
C. BMB failed to achieve its objective of reaching 85% of women in 3 years.
D. BMB is reeling under NPAs worth Rs. 620 crore and the merger is the only option government had.
The government on 20 March 2017 announced its decision to merge Bharatiya Mahila Bank (BMB) with State Bank of India (SBI) to ensure greater banking services outreach to more women at a faster pace.
Since its inception, BMB extended loans worth Rs. 192 crore in 3 years while in the same period, Rs46,000 crore was sanctioned to its women customers by SBI group.
The finance ministry outlined the largest coverage network of State Bank of India (more than 20,000 branches as compared to 103 branches of BMB) as one of the reasons for the merger. To reach the same coverage, the proportion of administrative and managerial cost in BMB would be much higher. For the same cost, a much higher volume of loans to women could be given through SBI, the ministry said in a statement.
Background of Bhartiya Mahila Bank
Bharatiya Mahila Bank Ltd is the first of its kind in the Banking Industry in India formed with a vision of economic empowerment for women. While the Bank focuses on the entire pyramid of Indian women, special attention is given to economically neglected, deprived, discriminated, underbanked, unbanked, rural and urban women to ensure inclusive and sustainable growth.
Former Indian Prime Minister Manmohan Singh inaugurated the bank on 19 November 2013 on the occasion of the 96th birth anniversary of former Indian Prime Minister Indira Gandhi.
India is the third country in the world to have a bank, especially for women, after Pakistan and Tanzania.
The Bank currently has 103 branches.
Bharatiya Mahila Bank is wholly owned by Government of India. Initially, the bank has a board of directors consisting of eight women. Mrs. Usha Ananthasubramanian is the chairman and managing director of the Bank and SM Swathi is executive director of Bank.
- Asit Ranjan Mishra (Mar 21, 2017), Bharatiya Mahila Bank to be merged with State Bank of India, livemint.com
- About us, Bhartiya Mahila Bank
- Bharatiya Mahila Bank From Wikipedia, the free encyclopedia