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

What is expensive, what is cheap: gold and silver will be cheap; Mobile phones will be expensive, but phones will be made more than ever in the country

The budget has arrived. Like every time, some things have become cheaper this time, some more exp

Worrying about American displeasure started troubling Pakistan, said - nuclear capability is necessary for peace in the region

Pakistan's Defense Minister Khawaja Muhammad Asif has said that his country wants relations with

IND vs SA Day 3 of the first Test: Play will start at 1 pm; Shatakvir Elgar is not out, and South Africa is ahead by 11 runs

The first Test between India and South Africa is being played in Centurion. On the second day, So

Gyanvapi Case: No stay on ASI survey in Gyanvapi, Muslim side got a blow from Allahabad High Court

The Allahabad High Court has dismissed the petition of Anjuman Intejamia Masajid Varanasi against

Coronavirus in China: Demand to tighten zero covid policy in China, local media appeals

Just a few days back, the Zero Covid policy was relaxed in China. The local media of China has no

Russia-Ukraine War Updates: Now 45 lakh people left Ukraine due to the Russian attack, the economy also lost more than 45%

It has been more than 45 days since the Russia-Ukraine war. The devastation that has wreaked havo

Attack on Kirit Somaiya: BJP delegation reached Delhi to meet Home Secretary, Kirit Somaiya said – fake case registered against me

Political turmoil has intensified in the case of an attack on Maharashtra BJP leader Kirit Somaiy

Ajit Kumar is India's permanent representative to UN in Geneva

New Delhi, Feb 19 (IANS) The government Thursday appointed Ajit Kumar, India's consul general a

Redmi’s New 5G Smartphone Launching Tomorrow With Massive 7,540mAh Battery, 100W Fast Charging and 50MP Camera

Redmi is gearing up to expand its smartphone lineup with the launch of the much-anticipated Redmi

Modi to attend G-7 summit today: India's stand on the situation in the Indo-Pacific region will be discussed; PM will go from Germany to UAE

Prime Minister Narendra Modi will attend the G-7 summit on Monday at the Schloss Elmau Palace in

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