Amalgamation of Public Sector Banks (PSBs) will not result in loss of jobs, said Union Finance Minister Arun Jaitley in Lok Sabha.
The Cabinet approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda, earlier this week.
The minister said that the merger will help in creating a bigger entity like State Bank of India (SBI) and there would be no job losses due to merger.
He added that the approved merger would also make cost of lending cheaper.
The minister said that out of the 21 public sector banks, 11 are under PAC (Prompt Corrective Action) framework.
The centre initiated the PAC against banks that have inflated level of non-performing assets (NPAs).
Jaitley said that as a part of recapitalisation Rs 51,533 crore has been infused into PSBs in the current financial year till December 31.
“In the budget estimates of FY 2018-19, Rs 65,000 crore has been allocated for recapitalisation of PSBs and an amount of Rs 51,533 crore has been infused in PSBs till December 31, 2018,” he said.
