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.

0 Like 0 Dislike
Previous news Next news
Other news

Rahul Gandhi: Controversy over Rahul Gandhi's visit to Vietnam, BJP called it an insult to late former Prime Minister Manmohan Singh

The war of words between BJP and Congress, which began after the death of former Prime Minister D

BJP ministers hail Jaitley over budget

New Delhi, Feb 28 (IANS) Ministers from the Bharatiya Janata Party were all praise for Finance

Weather Report: Flood warning in these states of the country, heavy rain alert issued in many districts of UP and Bihar

The rains of the second round of monsoon have gained momentum in many states of the country. Whil

Australia beat India by 95 runs to enter WC final

Sydney, March 26 (IANS) Australia entered the final of th

The woman started opening the flight gate at 37000 feet: When stopped, she started banging her head and said- Jesus had asked to do this

In America, a woman tried to open the flight door at an altitude of 37 thousand feet. Due to this

Wazid Khan suffering from corona virus dies of heart attack, will be delivered shortly

Mumbai: Wajid Khan of famous music duo Sajid-Wajid died of a heart attack on Sunday night. Althou

Budget Session: Prahlad Joshi will hold an all-party meeting before the budget session, CII recommends a separate investment ministry.

Before the start of the budget session in Parliament, Union Parliamentary Affairs Minister Pralha

CM MK Stalin demands the Center to remove Hindi from government offices, appeals to make Tamil the official language.

Tamil Nadu Chief Minister MK Stalin has made an absurd demand to remove official language Hindi f

Bomb Threats School: 40 schools in Delhi threatened to be bombed, panic created after the email; many schools closed

40 schools, including many big schools in the capital Delhi, have received bomb threats. DPS RK P

Samsung Galaxy F62 smartphone is equipped with a strong battery of 7000mAh, know here how you can buy it at a low price

The festive season is near. In such a situation, the launch of new smartphones continues continuo

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