The Center has assured that there will be no sort of withdrawal in the process of merger of government banks. Finance Minister Arun Jaitley has given this assurance while rejecting the possibility of retrenchment after the merger of Vijaya Bank and Dena Bank in Bank of Baroda.
Jaitley said in the Lok Sabha on Friday that there would be no crisis like losing jobs by the merger of banks, but a big bank like State Bank will be standing in the country. On the merger of two other banks with Bank of Baroda, Jaitley said that the position of one bank in it had become very weak and it was merged with two strong banks. Jaitley assured that the merger of weak banks would create strong competitive banks and customers would be able to get cheaper loans from them. He clarified that SBI and some other government banks are operating in profits as operating, but due to the provisions of NPA, Look in Government has provided capital of Rs 51,533 crore till December this fiscal year. An amount of Rs. 65 thousand crores have been kept for the banks for the entire financial year. In the year 2017-18, the budget was allocated Rs 90 thousand crores for the banks. Jaitley said that money should be returned in the banking system and recovery has accelerated for it. It’s reviewed every third month. Also, the monitoring process has been strengthened in the banking sector.
On the question of the safe deposit available with the Reserve Bank, the Finance Minister said that this amount is to deal with the situation of the crisis and this time the central bank has an additional amount. He said that what this amount was, was reviewed in 1997, 2005 and 2013. His government has also constituted a committee under the leadership of former RBI governor Vimal Jalan, who will make recommendations on it.
With the merger of Vijaya and Dena Bank, Bank of Baroda will become the third largest bank after SBI and HDFC. Bank of Baroda will retain ICICI third place This merger process will be completed by one April. After a merger of the total turnover of Bank of Baroda, there will be Rs 15.4 lakh crore, ICICI’s turnover is Rs 11 lakh crore.
Finance Minister Arun Jaitley said that 11 out of 21 government banks are not in the position to distribute the loan. Due to a large amount of debt trapped due to the debt, it has been curbed against distributing debt on them. However, due to bankruptcy and purporting disability code, recovery of a debt of about three lakh crores has been possible. The merger of banks will create some strong banks, which will provide cheap loans.