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.

0 Like 0 Dislike
Previous news Next news
Other news

Budget 23-24: Sitharaman discussed with industry representatives and experts, held first consultation meeting

Union Finance Minister Nirmala Sitharaman on Monday chaired her pre-Budget consultation meeting w

25 lakh new voters in Jammu and Kashmir: Army personnel and migrants will cast their votes, Abdullah said – BJP is importing votes for victory

After the abrogation of Article 370, elections can be held in Jammu and Kashmir for the first tim

Know about Russia's corona vaccine Sputnik-V - some special things, many countries expressed confidence

Apart from Covaccine and Covishield now in India, Russia's developed Sputnik V vaccine will also

SC asked the Center - what did they do to save protesting farmers from Covid-19?

The Supreme Court on Thursday questioned the central government as to what guidelines have been i

Modi Govt 8 Year: Preparations for the big celebration on completion of 8 years of Modi government, know what is the plan

8th Year Modi Government Preparation for Celebration: The Narendra Modi government at the Center

Today in Azam Khan's stronghold, CM Yogi will face-off with Akhilesh Yadav and Priyanka Gandhi

UP Vidhan Sabha Election 2022: Chief Minister Yogi Adityanath will address public meetings in Bil

India should not be offended, British Queen Camilla will not wear the Kohinoor diamond crown at the coronation.

Before the coronation of Maharaja Charles III, Britain is worried that India might not get angry.

Sonam Kapoor: Sonam Kapoor will attend the coronation of King Charles III, and will increase the honor of India in the Royal ceremony

Bollywood actress Sonam Kapoor may not be seen in films these days, but the actress often becomes

Covid vaccination of children will start in January, children from two to 17 years will be vaccinated

The Health Department is increasing the list of children and adolescents along with vaccination.

Surat Diamond Business: Due to the ongoing war between Russia and Ukraine, 25 thousand diamond artisans became unemployed in Surat, know the whole matter

The heat of the ongoing war between Russia and Ukraine since February is now reaching India as we

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