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

V-Day: Protesters detained, Hindu Mahasabha says married off couples

New Delhi, Feb 14 (IANS) Wearing wedding attire and carrying placards reading "Fall in Love, No

Wet from Delhi to Tamil Nadu: Why it is raining heavily in October this time, how long will you get relief, know

Heavy rain continues to wreak havoc in India. Especially in North India, incessant rain for the l

Gyanvapi Case: Allahabad High Court's decision in the Gyanvapi campus case secured, a petition filed by the mosque side

The Allahabad High Court has reserved its decision regarding the maintainability of the civil sui

Kerala High Court News: Center's vaccination campaign has created two groups in the country, fundamental rights of people who have got Covaxin are being violated

The Centre's vaccination campaign has divided the citizens of the country into two groups. One gr

Bhuvneshwar Kumar created history in the GT vs RCB match, equaling Dwayne Bravo's IPL record

Royal Challengers Bangalore (RCB) suffered their first defeat of IPL 2025. They lost the match by

Raisina Dialogue: President of the European Commission will visit India, will meet PM Modi and President Kovind

European Commission President Ursala von der Lane will be on an official visit to India. She will

Coronavirus Updates: Corona cases increased again after a day, with 1,946 new cases found in the last 24 hours, know the latest updates

After a day, there has been an increase in the cases of corona in the country again. Today, 1 tho

IND vs ENG: Shubman Gill's anger erupted over Lord's controversy, showing the mirror to England and English media in the middle of the press conference

Indian Test team captain Shubman Gill has termed the strategy of deliberately wasting time by Eng

Bangladeshi protesters do not value independence! Statues related to Pakistan's surrender were vandalized; Tharoor said - they were not worthy of forgiveness

Even after the political upheaval and coup in Bangladesh, violent protests in the country have no

May heat in March: Hot winds coming from Pakistan started heating up; the Heatwave continues even in the foothills of Himachal; Know what experts say

When the month of March started, there was a slight cold left, but around Holi, the mercury sudde

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