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

Pakistan: Chief Minister of Punjab will take a trust vote before January 11, former PM of Pakistan Imran Khan announced

Former Pakistan Prime Minister Imran Khan announced on Sunday that Punjab Chief Minister Chaudhar

Bhool Bhulaiyaa 2 Box Office: 'Bhool Bhulaiyaa 2' continues to earn, Karthik Aryan's film reached so close to 150 crores in 12 days

Bhool Bhulaiyaa 2 Box Office Collection Day 12: Kartik Aaryan and Kiara Advani's film Bhool Bhula

Corona: Bengaluru woman giving food to the elderly by bicycle

Almost the whole world is locked down. In Italy, cases of coronation virus deaths are increasing.

Meeting: Finance Minister holds meeting with heads of banks, reviews schemes for scheduled castes

Union Finance Minister Nirmala Sitharaman held a meeting with heads of public sector banks and fi

Shadow of Corona on IPL: 3 staff positive at Wankhede Stadium, 16 members previously infected; There will be 10 matches between CSK-DC-RR and Punjab Kings teams here

The 14th season of the Indian Premier League (IPL) is to begin on 9 April. Already, the corona ha

World Mental Health Day 2022: When and why is 'World Mental Health Day celebrated? Know what is the theme of this time

World Mental Health Day is celebrated every year on 10 October. It was started in 1992 at the ini

Adhir Ranjan Chowdhury said - I will apologize to the President, not from these hypocrites, because of knowing less Hindi, mistake

Congress MP Adhir Ranjan Chowdhury, who was again embroiled in controversies after saying the wor

Weather Report: When will there be torrential rain in Bihar-UP? Meteorological Department has now given new information, know the latest condition of other states

In many states including Maharashtra, Gujarat, and Assam, where there is a dire situation due to

'Central' government in Maharashtra: 8 decisions after the change of power at the behest of the center, 5 times in 25 days attendance in Delhi Durbar

It has been 25 days since Eknath Shinde became the CM and Devendra Fadnavis as the deputy CM, but

Coronavirus: China Comes To A Standstill As It Mourns The Death Of Thousands Due To Pandemic

चीन ने पिछले कुछ महीनों में कोरोनावा

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