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

Personnel working in Containment Zone will get risk cover of 10 lakhs

Haryana Chief Minister Manohar Lal Khattar has announced a risk cover of Rs 10 lakh to employees

Russia openly joined China on Taiwan, and Pakistan also in support of its evergreen friend

The tension between the US and China over Taiwan is no longer limited to just two countries. Many

Big News Apple's online store Started in India

The wait for the online store of Apple India in India ended at midnight on Tuesday and since that

Corona: Police team attacked for barricading in Godhra, mob pelted stones

Ahmedabad: The news of the continuous attack on frontline warriors fighting the Coronavirus has i

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

Trump's attempt to create a fiasco in Indo-China, India said, nothing happened in Modi-Trump

New Delhi, Jayaprakash Ranjan. Creating strange conditions for other nations and their heads of s

OMG 2 Twitter Review: 'Bholenath' on Akshay Kumar's OMG 2 or the film's divide? The verdict of the audience has come

OMG 2 Twitter Review: After crossing many hurdles, finally Bollywood Khiladi Akshay Kumar's film

Bangladeshi held with 27 kg silver in Bengal

Kolkata, March 20 (IANS) The BSF on Friday arrested a Ban

PAK vs SL Pitch Report: Hyderabad will score a lot of runs, fours and sixes will rain heavily, and toss will also play an important role.

PAK vs SL Pitch Report CWC 2023: Forgetting the crushing defeat against South Africa, Sri Lanka w

PM Modi: PM Modi awarded Guyana's highest civilian honor 'Order of Excellence'; President Ali honored him

Guyana's President Dr. Irfan Ali honored Prime Minister Narendra Modi with the country's highest

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