Arun Jaitley on the state of economy highlights: Dena bank, Vijaya bank and Bank of Baroda to be merged

The government Monday said state-owned Bank of Baroda, Vijaya Bank and Dena Bank will be merged to create the country’s third largest lender as part of efforts to revive credit and economic growth.The move follows top lender State Bank of India last year merging with itself five of its subsidiary banks and taking over Bharatiya Mahila Bank, a niche state-run lender for women.Announcing the plan, Finance Minister Arun Jaitley said the merger will make the banks stronger and sustainable as well as increase their lending ability.Here are the highlights from Jaitley’s speech:

7 pm IST

Finance minister Arun Jaitley addressing the media in New Delhi. (REUTERS File)

Merged bank to India’s third-largest

The government will continue to provide capital support to the merged bank, expected to be India’s third-largest, financial services secretary Rajeev Kumar told reporters

6:40 pm IST

Jaitley’s message to employees of banks being merged

No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them: Finance Minister Arun Jaitley on merger of Dena Bank, Vijaya Bank and Bank of Baroda.

6:35 pm IST

Consolidation of banks was also our agenda: Jaitley

Government had announced in the budget that consolidation of banks was also in our agenda and the first step has been announced: Arun Jaitley on merger of Dena Bank, Vijaya Bank and Bank of Baroda

6:28 pm IST

Real picture of NPAs was only known in 2015

Real picture of Non Performing Assets(NPAs) was only known in 2015, the UPA had swept NPAs under the carpet: FM Arun Jaitley

Dena Bank, Vijaya Bank and Bank of Baroda to be merged

We have decided to merge Dena Bank, Vijaya Bank and Bank of Baroda. Merger of the 3 banks will make this the third largest bank of the country, says Financial Services Secretary Rajiv Kumar

6:20 pm IST

PSBs have faced a challenge in last few years

In last few years, PSBs have faced a challenge. They were large in numbers and 2008-2014 became a peak lending period. The nature of lending was as if there is no tomorrow. That took a toll on the economy, says Arun Jaitley.

This was accompanied by sweeping the NPAs below the carpet so that the real picture doesn’t come out: Jaitley