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

Petrol Diesel Price: Oil companies have released the prices of petrol and diesel, know how much are the prices in your city

Oil companies have released the prices of petrol and diesel for today. Today companies have not m

Ghee and cooking oil prices increased in Pakistan, demand for action like Modi government raised

Inflation is on the seventh sky in the Imran government of Pakistan. Recently, there was a record

President confers Bharat Ratna on Malviya

New Delhi, March 30 (IANS) President Pranab Mukherjee on

Delhi AIIMS server down from tomorrow: Central agencies arrive to investigate, fear of cyber attack

The server of the country's largest government hospital Delhi AIIMS is down since 7 am on Wednesd

How will Russia start the war with Ukraine?: That agreement with the separatists, which revealed Putin's whole plan

Russian President Vladimir Putin on Monday declared two Ukrainian cities - Donetsk and Luhansk -

The Good news for the Africa series: Cricket board said - there is no danger to the players in the bio bubble, Omicron's symptoms are normal

The series between India and South Africa starting from December 17 is under the shadow of Corona

China is earning goods in the war between EU and Russia, know-how European countries are being cheated

The European Union banned gas supplies from Russia after Russia attacked Ukraine. However, the in

Corona has made Pakistan more troubled than before, demanding mercy from lending countries

Already troubled by poverty and a weak economy, the Corona epidemic has left Pakistan in a state

Haryana government announced after increasing lockdown, financial assistance of Rs 5000 to poor families

Amid restrictions imposed to prevent corona infection, the Haryana government has made a big anno

SRH vs GT Pitch Report: Batting or bowling? What will be beneficial after winning the toss, is knowing the nature of the Hyderabad pitch

The 66th match of IPL 2024 is to be held between Sunrisers Hyderabad and Gujarat Titans

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