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.

Did you know?Explore Trending and Topic pages for more stories like this.
0 Like 0 Dislike
Previous news Next news
Other news

Arvind Kejriwal Arrest: AAP faces leadership crisis, Kejriwal will rule from jail or one of them will take command

As evening approaches, high voltage drama has started in Delhi. The Enforcement Directorate team

More than 48 thousand cases increased for the fourth consecutive day, 31 thousand people were also cured, 3 thousand patients, missing in Bengaluru; 14.36 lakh cases so far in the country

The number of corona infections in the country crossed 1.4 million. On Sunday, more than 48 thous

Centre pushes states to be Business friendly

Chennai, March 18 (IANS) The central government will name and shame state governments that do n

Corona still not in control: 87 deaths in 24 hours in the country, 3604 new patients, cases of Covid-19 crossed 70 thousand, know top 10 states including Delhi-Mumbai

The incidence of corona virus infection in India is increasing steadily. The third phase of the l

Coronavirus in China: Seven more patients died of corona in Shanghai, 10 people lost their lives in two days

The speed of Corona in China has become uncontrollable. Since March, there is a spurt in the case

Pune Car Crash: 'I was drunk on the night of the accident, I don't remember anything now'; said the minor accused during police interrogation

Two people lost their lives in a car accident in Pune, Maharashtra. The darkest aspect of the acc

BJP leadership put an end to the speculations about Yogi Adityanath, know what General Secretary BL Santosh said

Since the recent meetings in Uttar Pradesh, the BJP's central leadership has rubbished the specul

Rahul Gandhi: Two months have passed since Lok Sabha membership was restored, but Rahul has not yet returned to his bungalow, what is the reason?

More than two months have passed since Congress MP Rahul Gandhi's Parliament membership was reins

UP: Etawah jail complex resonates with firing, bullet marks found at deputy jailer's residence

Etawah Jail in Uttar Pradesh resonated with firing at 3 am on Saturday. The sudden firing also st

Lalu Yadav Health: In AIIMS, Lalu Yadav was stopped from reciting Gita, Tej Pratap said in a fit of rage – this is a great sin, the price has to be paid

A case of preventing RJD chief Lalu Yadav admitted to Delhi AIIMS from reciting and listening to

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