New Delhi, March 20: As per an announcement, all branches of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT) will function as branches of SBI from April 1, 2017.
All the customers of these associate banks will be treated as customer of the State Bank of India from April 1. Moreover, all the terms and conditions applicable for otherwise SBI customers will be applicable for the customers of SBBJ, SBH, SBM, SBP and SBT.
In February 2017, the cabinet approved the earlier proposed merger of State Bank of India and five subsidiaries. Apart from that, on Monday the government gave its nod to the merger of Bharatiya Mahila Bank (BMB) with the State Bank of India (SBI). According to the government, the merger of the BMB and the SBI will help to achieve the objectives of affordable credit to women as well as propagation of women-centric products through a wider network and lower cost of funds.
“In the three years since BMB was established, it has extended loans of Rs 192 crores to women borrowers, while the SBI group has provided loans of about Rs.46,000 crore to women borrowers. SBI has a large outreach of more than 20,000 branches and lowest cost of funds in the sector. Out of the total workforce of around 2 lakh employees in SBI, 22% are women. SBI group already has 126 exclusive all-women branches across the country while BMB has only seven. The proportion of administrative and managerial cost in BMB is much higher to reach the same coverage. For the same cost, a much higher volume of loans to women could be given through SBI,” said the government in its announcement.