MeraNews Network, New Delhi: The government has proposed amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank to create India’s 3rd largest globally competitive bank.

Addressing a press conference in New Delhi today, Finance Minister Arun Jaitley said, the amalgamation will increase the banking operations and no employee will face any service condition adverse to present conditions. The biggest bank among the three, Bank of Baroda has a total business of Rs 10.29 lakh crore, followed by Vijaya Bank at Rs 2.79 lakh crore and Dena Bank at Rs 1.72 lakh crore. The combined entity will have more than 34 percent of low-cost deposits, about 12 percent of capital buffer and a business book of Rs 14.82 lakh crore.

Jaitley said that government had announced in the budget that consolidation of banks was also in the agenda of the government. Earlier, the government had merged five subsidiaries of SBI into State Bank of India. On Non- Performing Assets-NPAs, Jaitley said, the real picture of NPAs was only known in 2015 and the UPA had swept NPAs under the carpet.