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

Gold & Silver Prices Crash: Gold Drops ₹2,600, Silver Slumps ₹7,300 — Is This the Right Time to Buy? Experts Reveal the Best Strategy

Amid persistent geopolitical tensions and volatility in global financial markets, the Indian bull

The heat did not catch pace in Bihar and water crisis deepened here, 25 thousand population disturbed water

The heat has not started properly in Bihar and the water crisis has deepened in Gaya city of the

Poster war in BHU: objectionable remarks written on the walls, Chief Proctor said - conspiracy to defame the university

The atmosphere of the campus was heated up on Thursday morning by a controversial poster after th

Citadel Review: Priyanka Richard's series 'Citadel' received mixed reactions, taunts with praise

Two episodes of Priyanka Chopra's most awaited web series 'Citadel' are streaming on the OTT plat

Rain will continue in Delhi-NCR for the next one week, alert for these states including UP-Himachal
Even though the rainy season has stopped in Delhi-NCR, people are not going to get relief from this

Ghaziabad, Noida critically polluted: Official

Lucknow, Feb 27 (IANS) Ghaziabad, Noida and a few other areas in Uttar Pradesh have been declar

Visa Bribery Case: The sword of arrest hangs on Karti too, CBI will interrogate father P. Chidambaram

CBI has arrested Lok Sabha member Karti Chidambaram's close aide S.K. Bhaskar Raman has been arre

American company fired 2,700 employees overnight: said on message and e-mail - no need to come from tomorrow, if you have any goods, of course, take them

A furniture-making company in Mississippi, USA fired 2,700 of its employees overnight. According

Live, work for a purpose: Subhash Chandra

Noida, March 17 (IANS) Zee and Essel Group chairman Subha

Court can't intrude into legislature's domain, says SC

New Delhi, Feb 18 (IANS) The Supreme Court Wednesday said it was for elected representatives to

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