Arun Jaitley announces merger of three public sector banks

Arun Jaitely, Finance Minister, Diagnosed, Cancer, US, News Mobile, News Mobile India
Arun Jaitley diagnosed with rare cancer, in US for treatment

While addressing the media in Delhi on Monday with Financial Services Secretary Rajiv Kumar, Finance Minister Arun Jaitley revealed that the government has decided to merge three state-run banks- Dena Bank, Vijaya Bank and Bank of Baroda, to create the third-largest bank in the country.

Jaitley also said that consolidation of banks was also on the agenda and the government will provide the best of the service conditions to the merged bank.

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“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.”

The announcement comes as the country’s banking sector grapples with non-performing assets or NPAs. However, the proposal will be sent to the boards of the three banks, which needs to approve it, before any further process, Rajiv Kumar added.

Rationalisation of overseas operation in the banking sector is in full swing, Rajiv Kumar said, adding the government is keen to take steps so that history isn’t repeated as far as NPAs are concerned.

Currently, State Bank of India and private sector banks- HDFC Bank and ICICI Bank are the three largest banks in the country.

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