Finance Ministry is considering a proposal to merge newly created Bharatiya Mahila Bank (BMB) with State Bank of India. A proposal is being <g data-gr-id="25">considered</g> but no decision has been taken, sources said.
When asked about the merger proposal, SBI Chairman Arundhati Bhattacharya said: "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."
She, however, added that SBI will not have a problem in amalgamating BMB, which is a small bank.
"...but having said that Bharatiya Mahila Bank is a Rs 1,000 crore capital...and their loan book must be Rs 150-200 crore and zero non-performing assets (NPAs) along with very few branches. So it is really a very small entity as of now. So we'll see," she said. "This is a very small entity with a very small loan book, this is a no-brainer actually," she said. Launched in 2013 by the previous UPA government, the bank has about 60 branches across the country. The bank was started with an initial capital of Rs 1,000 crore.
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. Government, in principle, agrees to consider these suggestions," he had said. SBI, which is the country's largest lender, had in past merged <g data-gr-id="26">its</g> two of its associate banks -- State Bank of Saurashtra and State Bank of Indore.
RBI to remain open today
The Reserve Bank will remain open for market transactions on July 1, an RBI release said here on Tuesday. The Central Bank normally remains closed for public transactions on July 1 on account of its annual closing of accounts. The Reserve Bank’s accounting year is July to June.