New Delhi/Mumbai: Finance Ministry is considering a proposal to merge newly created Bharatiya Mahila Bank (BMB) with State Bank of India.
A proposal is being considered 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 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.
The bank, a specialised financial vehicle for economic empowerment of women, posted a total income of Rs 45.29 crore during 2013-14. The total business of the bank stood at Rs 175.17 crore at the end of March 2014.
