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

Day 6 of cruise drugs case: Aryan Khan sent to jail by NCB, bail hearing resumes in Fort Court

Actor Shahrukh Khan's son Aryan Khan will get bail or he will have to stay in jail for 14 days, i

Sandeshkhali Violence: Now controversy over 'Khalistani' comment heated up in Bengal, ADG said - will take action against Suvendu; BJP gave clarification

Sandeshkhali Violence: Amidst the ongoing politics regarding the Sandeshkhali incident in West Be

Waiting for word from Governor: Nitish Kumar

Patna, Feb 20 (IANS) We are now waiting for a word from the governor, said JD-U leader Nitish K

Covid-19: Infection of new variants increased in many countries, will another booster vaccine be needed for protection?

There are reports of increasing cases of new variants of Corona in many countries of the world. I

Petrol Diesel Price Today: Oil companies released the prices of petrol and diesel, know the prices of your city

Oil companies have released the prices of petrol and diesel for today. Today companies have chang

'Workers Needs trampled in Microsoft-Nokia Deal'

Chennai, Feb 19 (IANS) The Labour Progressive Federation (LPF) Thursday said commercial interes

Himachal has best Enrolment in Education

Shimla, Feb 27 (IANS) Himachal Pradesh Chief Minister Virbhadra Singh said Friday the state has

UPSC CSE Extra Attempt: UPSC's answer in court, giving one more chance in the civil services exam is a complicated matter

On Monday, March 7, 2022, the Supreme Court heard the petition of three candidates seeking one mo

No quick fix to plight of potato farmers in Bengal: Minister

Kolkata, March 19 (IANS) There will be no immediate alleviation of the plight of potato farmers

Shootout in Delhi: Criminal killed, two policemen injured

New Delhi, Jan 31 (IANS) An 18-year-old suspected criminal was shot dead and his accomplice inj

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