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

China successful in reducing corruption: Daily

Beijing, March 3 (IANS) China has taken a series of steps

Government can go ahead with 2G spectrum auction: SC

New Delhi, Feb 26 (IANS) The Supreme Court Thursday said even as it has found inconsistencies i

Mid-term election primary begins in America: Biden's Democratic Party lags behind Trump's Republican, inflation is the biggest issue

Mid-term election primaries have begun in the US. In a recent survey by three agencies, President

Infosys Employee Arrested Over "Spread-The-Virus" Post, Company Sacks Him

बेंगलुरू: बेंगलुरु में एक इन्फोसिस क

RCB vs CSK Playing 11 Prediction: Bangalore and Chennai can handle the field with this Playing 11 today

The 24th match of IPL 2023 will be played today at the M Chinnaswamy Stadium between the two favo

COVID-19: Corona cases are increasing rapidly in the country, Kerala has the highest number, and Maharashtra has 208 cases; Know Updates

Corona cases are increasing rapidly in the country. The number of active cases of coronavirus has

Russia-Ukraine Crisis: Bank of BRICS countries NDB took a big step, banning all transactions in Russia

The New Development Bank (NDB) created by the BRICS countries has taken a big step during the Ukr

UK PM Boris Johnson's visit to India, what is the agenda regarding defense matters

British Prime Minister Boris Johnson is coming to India after a long wait. Johnson, who is coming

Cracks in 868 buildings so far in Joshimath: 243 families sent to a relief camp, relief amount of more than 5 crores given

So far 868 buildings have developed cracks due to land subsidence in Joshimath, Uttarakhand. Cham

Navjot Singh Sidhu in Jail: Navjot Singh Sidhu was brought to Rajindra Hospital for medical examination, he has a poetic style in jail

Congress leader Navjot Singh Sidhu, who is lodged in Patiala Jail in the 1988 road rage case, was

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