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The purpose of consolidation is not to resolve NPA issues, says principal economic advisor Sanjeev Sanyal

Updated : September 18, 2018 10:51:43 IST

The government's plan to merge three public sector banks -- Bank of Baroda, Vijaya Bank and Dena Bank -- is a commercial judgement and the centre is not trying to resolve the non-performing asset (NPA) problems through the merger, said Sanjeev Sanyal, principal economic advisor.

"This is a commercial judgement which in the medium term will hopefully lead to more viable banks," said Sanyal.

The government on Monday proposed the merger of the three state-owned banks to create the country’s third largest lender as part of efforts to revive credit and economic growth.

"The issue of the consolidation has been discussed for quite some time and we wanted to do this for a while," he said.
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