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

2 accidents on Agra-Lucknow Expressway, 7 killed: Sleeper bus collided with parked truck in Kannauj due to fog, bus collided with truck in Unnao

There have been two major accidents on the Lucknow-Agra Expressway due to the dense fog in UP. Th

India's worst phase of summer is yet to come, with air pollution to be the cause, according to a report.

The worst phase of heat resulting from the climate crisis in India is yet to come. According to n

Meeting with farmers' government: Government may propose to leave the decision to implement agricultural law on the states

The farmer movement has been 44 days. The 9th round meeting with the farmers' government is going

Prophet remarks row: Kuwait's big action on the protesters will deport the migrants who participated in the demonstration

Instructions have been issued to arrest migrants from the Fahheel area who demonstrated after Fri

Liger: Ananya Panday shares a glimpse of Vijay Deverakonda from the 'Liger' dubbing session, see the actor's Liger look

South cinema's famous actor Vijay Deverakonda has been in the headlines for a long time for his H

I feel ashamed: Modi on farmers woes

New Delhi, March 22 (IANS) Prime Minister Narendra Modi on Sunday said he felt "ashamed at time

ECI Voter List Bihar: Whose use is the list of 65 lakh voters removed? Claims and objections unaffected in special intensive revision

The Election Commission of India, which is busy preparing for the Bihar assembly elections, is on

Coronavirus in India: Kerala overtakes Maharashtra as Covid-19 cases rise to 724

ज्ञात कोरोनोवायरस मामलों की कुल संख

AirIndia Express: Even today, more than 70 flights of Air India Express were canceled, 25 employees lost their jobs and the rest got an ultimatum.

Air India Express flight operations are being disrupted. This problem has arisen due to the

Strict action against those stealing documents: Pradhan

New Delhi, Feb 19 (IANS) Petroleum Minister Dharmendra Pradhan Thursday said that strict action

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