The Narendra Modi government on Wednesday announced the proposal of the consolidation of banks to ensure better banking services in future.
The Narendra Modi government on Wednesday announced the proposal of the consolidation of banks to ensure better banking services in future. Giving the report card on India’s massive bad loans mess, DFS Secretary Rajeev Kumar said that the government has decided to merge three public sector banks Dena Bank, Vijaya Bank and Bank of Baroda into one single entity, which will be the third largest bank in India.
Rajeev Kumar said that the bank boards of the three banks will examine the amalgamation proposal and will help improve the operational efficiency and customer services. Speaking on the decision, Finance Minister Arun Jaitley said that the idea is to merge two good banks with one weak bank, without compromising with the working conditions and services of the banks. The decision of amalgamation was recommended by the alternate mechanism.
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The fine print of the amalgamation is not yet final, Arun Jaitley said, assuring that no employee will suffer due to the amalgamation.