Finance Minister Arun Jaitley on consolidation of Dena Bank, Vijaya Bank and Bank of Baroda

On Monday the government said that state-owned Bank of Baroda, Vijaya Bank and Dena Bank will be merged to create the country's third largest lender. It was done as part of efforts to revive credit and economic growth.

Announcing the plan, Finance Minister Arun Jaitley said the merger will make the banks stronger and sustainable as well as increase their lending ability.

He said, “The government had announced in the budget that consolidation of banks was also in our agenda and the first step has been announced. Real picture of Non Performing Assets(NPAs) was only known in 2015, the UPA had swept NPAs under the carpet.”