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

Iran's president threatens to apologize, saying, "We won't attack neighboring countries until..."

Iranian President Masoud Pezeshkian has apologized for attacking neighboring countries. The presi

Ghulam Nabi: Indian Muslims were Hindus earlier, Azad said – Kashmiri Pandits adopted Islam 600 years ago

Former Jammu and Kashmir Chief Minister Ghulam Nabi Azad, who left the Congress and formed the De

UP Election 2022: Now Akhilesh's ordeal in Yadav belt and Bundelkhand, in 2012, 37 seats were occupied by SP

After the Legislative Assembly seats with Jatland and dominant Muslim votes, now Samajwadi Party

Motorola will launch a phone with a 108-megapixel camera, Realme and Redmi will get a challenge ..!

Motorola may soon launch two new smartphones in India. The company has recently launched Moto G10

Eight Home Guards arrested after mass cheating

Patna, March 20 (IANS) Eight Home Guard personnel were arrested on Friday on charges of helping

India to showcase Parsi culture: Jaitley

New Delhi, Feb 28 (IANS) The government would support an exhibition showcasing Parsi civilisati

PM Modi: Bapu's words in the personal diary of the Prime Minister, know which statements of Gandhiji are the inspiration for PM Modi

On the death anniversary of the Father of the Nation Mahatma Gandhi, a social media account of Pr

Yogi's minister Swami Prasad Maurya joins SP: 3 more MLAs resign from BJP in support; Akhilesh said - 'Mela hobe' in twenty

BJP has suffered a major setback before the UP assembly elections. Swami Prasad Maurya, a ministe

Corona In India : The daily number of corona cases in the country has crossed 11 thousand; Active patients are also more than 49 thousand

Corona cases are continuously increasing in the country. In the last 24 hours, more than 11 thous

Mulayam Singh Yadav Death: Former UP CM Mulayam Singh Yadav is no more, breathed his last in Medanta Hospital

Samajwadi Party patriarch and former Uttar Pradesh Chief Minister Mulayam Singh Yadav passed away

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