Bank Employees News: Bharatiya Mahila Bank

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Wednesday, 15 June 2016

Cabinet approves merger of 5 associate banks with SBI

Cabinet approves merger of 5 associate banks with SBI

SBI will also take over Bharatiya Mahila Bank; merged entity will have asset base of Rs 37 lakh cr

The Cabinet today gave go-ahead to the merger of State Bank of India (SBI) and its associate lenders that would make the state-owned lender a global-sized bank.

India's largest lender SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank.

SBI has five associate lenders -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

"Kindly await a structured briefing on that," Telecom Minister Ravi Shankar Prasad said when asked if the Cabinet approved the merger of associate banks with the SBI.

Meanwhile, SBI Chairperson Arundhati Bhattacharya said merger of SBI and its associate banks is a win-win for both the sides.

"Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely to increase. Customers of associates and subsidiaries of the Bank will also be beneficiaries," she said.

She further said that with this merger the network of SBI will increase and its reach multiply. One can expect efficiencies to be created from rationalisation of branches, common treasury pooling and proper deployment of a large skilled resource base, Bhattacharya said.

"Customers of associates and subsidiaries of the Bank will also be beneficiaries. Any introduction of new technology by SBI would simultaneously be available uniformly. The scale of operations and common cost would get rationalised. Overall, the synergies being pooled at one place are going to be a big positive," she added.

Among the associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed. There shares jumped nearly 20 per cent on benchmark BSE today and hit their respective upper circuit limits towards closing of the trading session. SBI stock was up 3.9 per cent.

The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

Presently SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.

SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.

Source:Business Standard

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Saturday, 12 December 2015

Bharatiya Mahila Bank 08:00

No info from govt on bank's merger: Mahila Bank official

No info from govt on bank's merger: Mahila Bank official

Bharatiya Mahila Bank (BMB) has not heard anything from the government over merger of the bank, a top official of the bank said today.

"Many reports have come on the merger of the bank...we have not been informed about it by the government," BMB Executive Director Swathi S M said here.

Media reports suggested that government was considering merger of BMB with State Bank of India.

The bank is functioning as usual and continuing with expansion plan, she said, adding that even today the bank has opened a branch leading the tally to 85 branches.

"We expect the number of branches to increase to 110 by the end of March this year," she said.

The bank posted a profit of Rs 14 crore for the first six months of current fiscal against Rs 19 crore in 2014-15.

Expressing concern over the exodus of middle management from the bank to their parent organisation in the next few months, Swathi said there is urgent need for recruitment of senior persons in the bank.

The bank, which was set up in 2013, had appointed senior officials on three-year deputation from other banks.

The term of most of these 100 senior officials drawn from 28 public sector banks or financial institutions are coming to an end in next few months, she said.

BMB will be left without senior management in case the government did not extend their deputation term or allow for lateral recruitment in those segments, she said.

As of now the bank has its own staff up to scale IV level, while scale above that is on deputation basis, she added.

After the board approval later this month, she said, the will submit proposals related with HR plan and business plan to the Finance Ministry.

Source :BankingUpdates

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Sunday, 29 November 2015

State Bank of India 08:29

Government mulls merger of Bharatiya Mahila Bank into State Bank of India

Government mulls merger of Bharatiya Mahila Bank into State Bank of India

Bharatiya Mahila Bank (BMB) may be absorbed by State Bank of India if a plan being considered by the government is accepted, said two officials aware of the matter. This would considerably reduce the scope of the United Progressive Alliance regime's move to establish a lender dedicated solely to women. The bank was set up in 2013 to promote women's entrepreneurship, access to financial services and empowerment.

Bharatiya Mahila Bank has not been able to make much of a dent in the market. Total advances stood at Rs 446 crore at September-end, strengthening the view that a standalone bank for such a specific need is not justified at such a level of operations, especially since the Narendra Modi government has made a strong push on the financial inclusion front with the Pradhan Mantri Jan Dhan Yojana.

"We have kickstarted various schemes to bring people, irrespective of gender, into the financial fold," said one of the officials cited above, adding that specific needs were being addressed.

"For example, the Mudra Yojana is aimed at promoting entrepreneurship and all banks are making efforts towards that," he said, referring to the government's Micro Units Development & Refinance Agency initiative. "There is no case for a bank aimed at a specific cause."

More than one bank has shown interest in taking over BMB given it has no bad loans on its books and has a network of 84 branches, said the second official. Deposits amounted to Rs 920 crore in September.

"It will be a clean merger and will boost the acquiring bank's balance sheet besides adding to its low-cost deposits," said the official. BMB's current and savings accounts (CASA) amounted to Rs 110 crore at the end of September. An outright closure of the bank will be unacceptable to Congress, which heads UPA, some experts pointed out, since it was a plan that emanated from top echelons of the party. The solution being considered by the government may be seen as the less painful alternative, they said.

The merger proposal sparked a predictably sharp reaction from the Congress party. "This merger is tantamount to abolishing the concept of the Mahila Bank altogether," Congress spokesperson Randeep Surjewala said. "It reflects a retrograde anti-women stance followed by the Modi government on multiple fronts including a drastic reduction in the Budget of the women and child development ministry, particularly the ICDS (Integrated Child Development Scheme) scheme. The current decision is one more step in that direction."

The last merger among public sector banks was the merger of State Bank of Indore with SBI in 2010. One of the options is to merge BMB with another bank but retain the branches as specialised ones catering primarily to women.

The government is also not keen on pumping in additional resources to help the fledgling bank meet regulatory requirements, given that it needs to infuse funds into older institutions to meet norms.

"As BMB grows, it will have capital requirements. Already, we are financially stretched with our bank capitalisation programme," said one of the officials, adding that the government has asked banks to explore consolidation options and look at areas of commonality.

Source :BankingUpdates

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