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

Huge jump in YouTube's viewers in India, more than 20 million viewers played the app on TV

Video streaming company YouTube said that in May this year in India, more than 20 million people

Announcement of construction of Ram temple in Karnataka budget, a gift to farmers; Siddaramaiah reached the House with flowers in his ear

Karnataka CM Basavaraj Bommai presented the budget for the financial year 2023-24 in the House. H

Nazul Bhoomi Bill: 'BJP is against home and family', Akhilesh challenges BJP; implement Nazul Bill across the country

SP President Akhilesh Yadav appeared aggressive on Friday regarding the Nazul Land Property Bill-

Why Kota became political hotspot, bitterness in Nitish-Gehlot-Yogi!

Kota / Jaipur

So far, Kovid-19 infection has spread to 97 people in two Karona hotspots o

Christopher Nolan Oppenheimer: Cillian Murphy recited Bhagavad Gita to become 'Oppenheimer', know how the actor was impressed

Hollywood film 'Oppenheimer' has been one of the most awaited films to release in the year 2023 e

Maharashtra bans but Goa 'beefs up'

Panaji, March 23 (IANS) Carmen Athaide, 49, slices a few slivers of beef into a broth that's ju

Is Yuzvendra Chahal dating RJ Mahavash? Yuji himself revealed the truth.

Indian cricketer Yuzvendra Chahal recently spoke openly about his personal life in Raj Shamani's

On the day of daughter's wedding, mother-in-law and son-in-law reached the police station, woman said- we will stay together, made such revelations about her husband

Sapna's daughter's marriage was fixed with Rahul, whose marriage procession was to come on 16th A

Weather Update: IMD's alert regarding the cyclonic storm, heavy rain expected in Tamil Nadu-Puducherry and Andhra Pradesh

Along with the hilly areas in the country, the weather has changed in the plains. Winter is incre

Large Number of Voters choose NOTA in Delhi

New Delhi, Feb 10 (IANS) Even as the AAP Tuesday got a thumping victory in the Delhi polls, a l

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