The Centre has decided to merge three state-run banks – Dena Bank, Vijaya Bank and Bank of Baroda, Financial Services Secretary Rajiv Kumar said on Monday.
“Merger of the 3 banks will make this the third largest bank of the country,” Kumar added.
He also said the banking sector needs reforms and the government is taking care of banks’ capital needs.
The announcement was made by Kumar during a media briefing with Finance Minister Arun Jaitley on the state of the economy.
Finance Minister Arun Jaitley said, “Government had announced in the budget that consolidation of banks was also in our agenda and the first step has been announced.”
“No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them”, Jaitley added.
Rajiv Kumar also said that rationalisation of overseas operation in banking sector is in full swing adding the government is keen to take steps so that history isn’t repeated as far as NPAs are concerned.
Speaking on non-performing assets (NPAs), Jaitley accused the Congress-lead UPA government of making concerted efforts till 2014 to hide the NPAs.
“Real picture of Non Performing Assets (NPAs) was only known in 2015, the UPA had swept NPAs under the carpet,” Jaitley alleged.