Government to Infuse Rs.6,990 Crore in Nine Public Sector Banks


Posted on 9th Feb 2015 01:08 pm by mohit kumar

New Delhi, Feb 7 (IANS) The government has decided to infuse Rs.6,990 crore in nine public sector banks (PSBs), out of the current year's budget, for which orders are being issued, an official statement said here Saturday.

"This year, the government of India has adopted a new criteria in which the banks which are more efficient would only be rewarded with extra capital for their equity so that they can further strengthen their position," the statement said.

The methodology for arriving at the amount to be infused in these banks has been based on efficiency parameters.

"First of all, weighted average of return on assets (ROA) for all PSBs for last three years put together was arrived at and all those who were above the average have been considered.

"The second parameter that has been used is return on equity (ROE) for these banks for the last financial year. Those who have performed better than average have been rewarded," it added.

Stating that the central government is conscious of the fact that a lot of reforms are required in the PSBs, it arranged for the recent two-day retreat of chairman and managing directors of banks and financial institutions called 'Gyan Sangam' at Pune Jan 1 and 2, 2015.

"One of the general principle adopted during the Retreat was that efficient banks should be encouraged. For the last few years, Government of India has been infusing capital to those banks whose equity erosion has taken place," it said.

Therefore, this year, the government has adopted this new criteria in which the banks which are more efficient would only be rewarded with extra capital for their equity so that they can further strengthen their position, it added.

The banks that got infusion are - State Bank of India, Rs.2,970 crore; Bank of Baroda, Rs.1,260 crore; Punjab National Bank, Rs.870 crore; Canara Bank, Rs.570 crore; Syndicate Bank, Rs.460 crore; Allahabad Bank, Rs.320 crore; Indian Bank, Rs.280 crore; Dena Bank, Rs.140 crore and Andhra Bank, Rs.120 crore.

0 Like 0 Dislike
Previous news Next news
Other news

Entry of AAP MLAs banned in Delhi Assembly; Atishi sits on dharna; says- BJP has crossed all limits.

AAP MLAs have not been given entry into the Delhi Assembly today on Thursday. On the other hand,

CAG raps Odisha over Phailin relief

Bhubaneswar, Feb 12 (IANS) The Comptroller and Auditor Ge

When will children get the vaccine and adults will get the booster dose? The decision may be taken in next 2 weeks

The National Technical Advisory Group on Immunization in India i.e. NTAGI will also prepare a com

IND vs PAK: 'If I were captain, I wouldn't shake hands with Pakistani players,' Praveen Kumar said bluntly.

Former Indian cricketer and chairman of the Uttar Pradesh Senior Selection Committee, Praveen Kum

RR vs PBKS Playing 11: Rajasthan will miss Butler, match with Punjab today, see how the possible playing 11 will be

Rajasthan Royals team will play its 13th match on Wednesday against Punjab Kings, who are out of

Ishan Kishan Comeback: Ishan returned to the field after BCCI's warning, flopped in batting; severe rebuke

Indian team's wicketkeeper-batsman Ishan Kishan returned to playing competitive cricket after 3 m

Crakk Screening: Arjun Rampal's magic in the screening of Crakk, these stars graced the red carpet

Vidyut Jamwal and Arjun Rampal's much-awaited action thriller film 'Crakk: Jeetega To Jeega' has

Samsung Galaxy M53 launch date in India final, know when and with which features it will be launched

Samsung recently took the wraps off its new Galaxy M53 in the global market and now it is prepari

Pakistan Crisis: Pakistan is on the way to Sri Lanka, a country facing an economic crisis; Unemployment and debt a big problem

Pakistan, trapped in an economic crisis, is also slowly moving forward on the path of becoming Sr

After May 14, Devendra Fadnavis will expose the CM of Maharashtra- Said- Government works for bar owners and builders

Once again in the politics of Maharashtra, the echo of the disputed structure of Ayodhya, Babri M

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash