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

Israel Hamas War: 'Israel can take its own decisions', Biden blunt about the ground attack on Gaza

It has been more than two weeks since the conflict between Israel and Hamas started. The death to

Connecting with Suriname, Guyana through diaspora

New Delhi, Feb 8 (IANS) Helping upgrade a much-needed mortuary, sending a Ramlila troupe to exc

America is our boss, and Pakistan is a hired gun; What did Imran Khan say on 'foreign conspiracy'

Former Pakistan prime minister Imran Khan said he no longer "blames" the US administration for ou

Mahavir Jayanti 2023: When is Mahavir Jayanti? Know the date, worship, and their principles

According to the Panchang, the birth anniversary of Lord Mahavira, the 24th and last Tirthankara

Restaurant Service Charge: Restaurants cannot forcibly take service charge from consumers, warned by writing a letter to NRAI President

Restaurants cannot extort service charges from customers. The Department of Consumer Affairs has

Iran raises Shia-Sunni point of view in attack on a mosque in Afghanistan

Iran has strongly condemned the blast during Friday prayers at a Shia mosque in the Afghan city o

America again besieges China, says - is behaving aggressively in South China Sea

Washington: US Defense Minister Mark Asper said on Tuesday that China's military was taking an ag

Animal: Ranbir Kapoor's 'Animal' on the path of Pathan and Jawan, will the show start at this time in the morning in the harsh cold?

The name of Hindi cinema's powerful actor Ranbir Kapoor is in the news these days for his upcomin

AAP government attacks union budget

New Delhi, Feb 28 (IANS) The AAP government in Delhi Saturday criticised the union budget for k

Bhagwant Mann cabinet meeting in a while, may decide on giving 300 units of free electricity to the people of Punjab

Bhagwant Mann Cabinet Meeting: The meeting of the Bhagwant Mann cabinet of Punjab will start shor

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