Union Government to infuse Rs. 6,990 crore in nine public sector banks
Union Government is planning to infuse Rs. 6,990 crore in 9 Public Sector Banks (PSB’s) for enhancing their capital and meeting the global risk norms.
In this regard, Government has allocated Rs.11,200 crore in the Union Budget 2014-15, for the first tranche of capital infusion in these banks.
Capital infusion in PSBs was decided on the basis of the performance of the bank. In this case efficiency parameters for all PSBs for last three years were put together. PSBs which were above the average, were considered for capital infusion.
Two parameters were chosen to find efficiency parameters of all PSBs. They were weighted average of return on assets (ROA) and return on equity (ROE) during the last financial year.
9 PSBs 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).