The new bank, which will be working at the beginning of the next financial year, from the three public sector banks - the merger of Bank of Baroda, Vijaya Bank and Dena Bank. Sources say this. He said that the three banks will settle the merger process in the prescribed limit and by the end of the financial year 2018-19 all the necessary regulatory procedures are expected to be completed. He said that the new bank should be operational from April 1, 2019.
The government has announced the formation of a new bank on Monday with the addition of three public sector banks- Dena Bank, Vijaya Bank and Bank of Baroda - which will be the third largest bank in the country and its combined turnover will be Rs 14.82 lakh. Union Finance Minister Arun Jaitley announced this and said that the government has directed the board of directors of three banks to consider the proposal.
Let us state that last year the government merged its five associate banks and Indian women bank in the country's largest bank, State Bank of India. Subsequently, the State Bank became one of the top 50 banks in the world. Government banks are being merged for the second time in the last one-and-a-half years.
Finance Minister Arun Jaitley dismissed Congress's claim that the debt trapped during the Congress government's tenure (NPA) was 2.5 lakh crore rupees. He said that in reality it was 8.5 lakh crores rupees. According to him, the board of directors of the banks will have meetings in the same month, in which the plan of integration will be planned and the share swap ratio and the proposals will have different details including the requirement of capital.
An alternative mechanism, chaired by Finance Minister Arun Jaitley, decided to join three banks on Monday. With this decision a big bank will come into existence which will be stronger and stronger. He said that till this proposal has been passed by the Board of Directors of the three banks, these banks will continue to function independently. The name of the bank formed after the merger will be considered during the merger.
Jaitley said that this merger will create a durable big bank, which will be the third largest bank in the country. Jaitley said that the merger of banks was in the government agenda and it was announced even in the budget. The government is awaiting the settlement of cases of non-executed assets (NPAs or stranded loans) so that the plan is properly carried forward.
Last time the government merged five associate banks and Indian women banks in the State Bank of India on April 1, 2017. After this, the country's largest bank SBI joined the top 50 banks of the world.
Jaitley said on Monday that this decision has been taken under the alternative process and the board of directors of the banks has been requested to decide on this. It will be necessary action after discussions in the Board of Directors meeting. "He said that it is expected that this will create another big bank, which will be sustainable. The bank created after the merger will increase its banking operations.