ANDALIB AKHTER / New Delhi
Government of India has offered a plan of merger of three nationalised – Bank of Baroda, Dena Bank and Vijaya Bank – Finance minister Arun Jaitely informed today. He said that the proposal part of efforts to clean up the country’s banking system. He however did not give any time line for the amalgamation..
Jaitely said that the banks’ merger will create a financial entity which will be better positioned for substantial rise in customer base, market reach, operational efficiency and services for customers.
“The interests of the employee will be protected during the merger. Capital support will be ensured” minister assured.
Mr Jaitley said, government had announced in the budget that consolidation of banks was also in the agenda of the government. Earlier, the government had merged five subsidiaries of SBI into State Bank of India.
On Non- Performing Assets-NPAs, Mr Jaitley said, the real picture of NPAs was only known in 2015 and the UPA had swept NPAs under the carpet.
Earlier briefing media Financial Services Secretary Rajiv Kumar said the stock of non-performing assets (NPAs) had reduced by Rs 21,000 crore in last quarter. Banks recovered Rs 36,551 crore in the first quarter of FY19. There was a need to increase scale and synergy for growth momentum to continue, he said.