Not Rs 2.50 lakh crore! Arun Jaitley reveals this shocking big number!

Finance Minister Arun Jaitley today said the real picture of Non Performing Assets (NPAs) crisis in banks was actually revealed only in 2015, because the previous UPA government had swept the same under the carpet. He said the actual figure came out to be a whopping Rs 8.50 lakh crore and not Rs 2.50 lakh crore!

Addressing a press conference in New Delhi, Arun Jaitley said the bank lending before 2008 was Rs 18 lakh crore, and it jumped to Rs 55 lakh crore between 2008 and 2014. He said the nature of lending was as if there would be no tomorrow, adding that the real picture was known by the government as well as RBI after 2015. 
 
Jaitley also said that the banks had to face 2-3 challenges that were hampering their lending because many were in a fragile state. 
 
Another surprise that Arun Jaitley pulled was the shock announcement regarding merger of Dena Bank, Vijaya Bank and Bank of Baroda. The finance minister said, "Government had announced in the budget that consolidation of banks was also in our agenda and the first step has been announced."
 
He also clarified that "No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them."
 
Financial services secretary Rajiv Kumar stated that these state-controlled lenders will continue to work as independent entities, while addressing media persons. He said that employees interest would be protected in the merger process. The merger of five SBI associate banks five associate banks and the Bharatiya Mahila Bank was done without any job losses, he added.

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The government today announced the merger of public sector banks Bank of Baroda, Dena Bank and Vijaya Bank.