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

Netflix: Netflix suffered a setback, more than nine and a half million users said goodbye in the second quarter

Netflix suffered a major setback in the second quarter. According to the report, 970,000 users le

Back land bill in national interest: Gadkari tells Sonia

New Delhi, March 30 (IANS) Road and Transport Minister Nitin Gadkari on Monday urged Congress p

ICC Test Player rankings: Ravindra Jadeja became the world's number one Test all-rounder, Kohli and Pant also jumped

India's Ravindra Jadeja has moved up to the number one spot in the ICC Test all-rounder rankings

Will Suryakumar Yadav miss the first two matches for MI? Big update on star batsman's fitness before IPL 2024

Before IPL 2024, a big update is coming out regarding Mumbai Indians' star batsman Suryakumar Yad

Bhargavastra: 'Bhargavastra' will sense the threat of a drone and destroy it in a moment, capable of attacking up to 2.5 KM

India has successfully tested the indigenously developed anti-drone state-of-the-art hypersonic m

CLAT Registration 2023: Today is the last day for CLAT application, see exam date here

CLAT 2023: The Consortium of National Law Universities has extended the registration deadline for

Coronavirus Updates: 415 Infections In India, 30 Cases Confirmed In Delhi

According to the Ministry of Health, the number of positive cases of corona virus (COVID-19) in I

Delhi Weather Update: Weather changed in Delhi-NCR, darkness spread due to thick clouds, light rain started at many places

After heavy rain on Wednesday night in Delhi and NCR, light rain continued on Thursday as well. E

Yogi Vs Akhilesh: Responding to Yogi's statement, Akhilesh asks—

The Uttar Pradesh 2026 event is being organized at The Centrum hotel in the state capital. Today

The US supports temporary abolition of patent on corona vaccine, know what it means

The war against the Coronavirus has raised great hope for poor and middle-income countries. The U

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