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

IND Vs ENG 1st Test Day 2 Tea: England's position is very strong due to Root's double century, Team India on backfoot

India vs England: Thanks to the fifth double century of the career of captain Joe Root (unbeaten

Court refuses to stay proceedings in Uber rape case

New Delhi, Feb 26 (IANS) A court Thursday refused to stay proceedings in the case of the rape o

Border Issue: Tharoor dissatisfied with the government's statement on the border dispute with China, said- a 'small statement without explanation'

Senior Congress leader Shashi Tharoor on Wednesday expressed dissatisfaction over the government'

Khelo Jharkhand: Now play Jharkhand on the lines of Khelo India; Talented players will be found out of 50 lakh students

Khelo Jharkhand: On the lines of the Khelo India campaign of the central government, now the Jhar

Russia-Ukraine War Updates: Russia intensifies attacks in Severodonetsk, Zelensky sacks Kharkiv's head of state security

95 days have passed since the Russo-Ukraine war. Meanwhile, Russia has intensified attacks on the

Petrol and diesel prices have not increased; the order circulating on social media is fake.

The Press Information Bureau (PIB) has debunked a post circulating on social media that claimed t

Deepika Padukone's pictures with the baby went viral, she was seen pampering the baby while holding him in her lap

B-Town's glamorous queen Deepika Padukone has now become a mother. On September 8, the actress ga

Gautam Adani shines: Ranks fifth among top-10 billionaires, surpasses Warren Buffett in terms of wealth

Indians continue to dominate the list of top-10 billionaires of the world and the two Indian indu

COP-26 Climate Summit: PM Modi said, no one is untouched by the threat of climate change

In the ongoing CAP-26 Climate Summit in Glasgow, PM Modi said that the launch of 'Infrastructure

India -Thailand Ties: 9th India-Thailand Joint Commission meeting to be held in Bangkok today, External Affairs Minister S Jaishankar will attend

External Affairs Minister S Jaishankar arrived in Bangkok on Tuesday to attend the 9th meeting of

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