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

PBKS vs RCB Playing 11: RCB's challenge in front of Punjab, captain Shikhar Dhawan's return fixed! View Possible Playing-11

In the 27th match of the Indian Premier League (IPL), Punjab Kings will face Royal Challengers Ba

BJP Convention: In the BJP convention, PM Modi targeted the Congress, saying - it has been their policy to divide every region.

Prime Minister Modi, citing his visit to South India during the fast observed before the consecra

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

Elon Musk now announces to buy 'Coca Cola' after Twitter! Said- will make Twitter more fun

Elon Musk, the world's richest person, recently bought the micro-blogging site Twitter for $44 bi

Saradha scam: Rose Valley chief sent to five days ED custody

Kolkata, March 26 (IANS) A court here on Thursday sent Rose Valley Group chairman Gautam Kundu

Sonia shocked over rail disaster

New Delhi, March 20 (IANS) Congress president Sonia Gandhi expressed shock over the train disas

Delhi High Court dismissed the petition seeking Bharat Ratna to Ratan Tata, know what was said?

Ratan Tata: The Delhi High Court on Thursday dismissed a petition seeking to confer Bharat Ratna,

Confidence booming in WI camp: Opener Charles

Wellington, March 20 (IANS) Opening batsman Johnson Charles says there is a growing sense of se

Kullu Tourists Accident: A vehicle full of tourists got stuck in the ditch due to a lack of brakes, 17 people from four states had come to visit Kullu from Delhi, and seven died

Himachal Kullu Tourists Accident, Himachal Pradesh A group of 17 people who went to visit Jalori

Police's fear: Jugraj's parents, who hoisted the Nishan Sahib at the Red Fort, fled the village, know-how happiness turned into sorrow.

Jugraj Singh, who hoisted the 'Nishan Sahib' flag at the Red Fort during the tractor parade of fa

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