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

Pushpa 2: Booking of 'Pushpa 2' will start from this day, the film can earn so many crores on the first day

Allu Arjun's much-awaited film 'Pushpa 2: The Rule' is all set to release on the big screen on De

PM Modi: BJP MP Prakash Javadekar said – PM Modi is being liked because of giving good governance to the country

Former Union Minister and senior BJP leader and MP Prakash Javadekar said that Prime Minister Nar

8 to 10% Growth is eminently achievable

 

Government is working on a new ag

IND vs WI 3rd ODI: India set a target of 266 runs for West Indies, Iyer and Pant hit half-centuries

India vs West Indies 3rd ODI, Narendra Modi Stadium Ahmedabad: In the third and final match of th

G20 Summit: From the hotels of the guests to the venues, everything was given a 'code name', even the police were unaware of many things.

While hosting more than twenty heads of state from across the world, the police and various secur

Israel-Hamas War: Israel will not fire ammunition on Gaza for two months, proposal put forward to Hamas terrorists

Israel has once again moved forward on a ceasefire proposal in the Israel-Hamas war that started

Pig heart will beat in humans for the first time: 57-year-old patient got genetically modified pig's heart in America, the surgery lasted for 7 hours

US doctors have done a great job of transplanting a genetically modified pig's heart into the bod

Peace talks begin in Qatar of Afghanistan and Taliban, know what will be the effect on India

After months of delay, the first formal peace talks between the Afghan government and the Taliban

Healthcare Technology Revolution: How Smartwatches and AI Are Helping People Stay Fit

Traditionally, most people visit a doctor only after experiencing a health problem. In many cases

To answer China, Indian Army's focus on these areas, conducting survey

To give a befitting reply to the expansionary Chinese salute-slicing strategy in the northern bor

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