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

Bengal rights panel seeks report on nun's gang rape

Kolkata, March 17 (IANS) Taking cognizance of the gang rape of a septuagenarian nun in Nadia di

Aus vs Ned: Glenn Maxwell created a stir, scored a record-breaking century on Delhi ground, left Warner behind too

Glenn Maxwell Record AUS vs NED: Australian batsmen and bowlers created a stir against Netherland

Amazon Great Indian Festival Sale: Up to 50% off on 108 megapixel camera phones in Amazon's festival sale.

Amazon Great Indian Festival Sale: If you want to buy a 5G support smartphone with the best camer

UP Election 2022: JanVishwas Yatra ends today, know-how BJP did the triple attack on Akhilesh Yadav through this

UP Assembly Election 2022: The crowd gathered in support of Akhilesh Yadav from Lucknow to Delhi

IPL 2025 Dance: After becoming champions, Bangalore players danced a lot, family members also supported them, two videos surfaced

Royal Challengers Bangalore players danced a lot after winning the IPL 2025 title. Its video has

Corona outbreak will remain in China even in the new year, Xi Jinping said – it is difficult to face the new wave

The new year 2023 has started. The whole world is immersed in the celebration of the New Year. Bu

Women's Day 2024: Why is International Women's Day celebrated only on March 8? Know the reason behind this

We all know that Women's Day is celebrated to make women aware of their rights. For which various

Oppo launches Reno 5 and Reno 5 Pro smartphones, know its price and features, OnePlus mobile will get competition

Smartphone manufacturer OPPO has launched Reno 5 and Reno 5 Pro mobiles. Although these smartphon

Another murder like Shraddha in Delhi: Wife along with son killed husband 6 months ago, kept pieces in the fridge, later threw

Another case like the Shraddha murder has come to light in Delhi's Pandav Nagar. A woman killed h

IND vs AUS: Rohit Sharma becomes India's second most successful T20I captain, surpasses Virat Kohli

Rohit Sharma has become the second most successful captain of India in T20 International cricket.

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