Money & Banking
Government to recapitalise 13 state-run banks with Rs22,915 crore
The Ministry of Finance on Tuesday announced the much-awaited capital infusion of Rs22,915 crore towards the recapitalisation of 13 public sector banks during 2016-17, with the largest amount earmarked for the country's largest lender, the State Bank of India.
 
"In line with the announcements made under 'Indradhanush' and the Union budget, the government has undertaken an exercise to assess the capitalisation needs of public sector banks during the year 2016-17," a finance ministry statement said.
 
"The capital infusion exercise for the current year is based on an assessment of need as assessed from the compounded annual growth rate of credit growth for the last five years, banks' own projections of credit growth and an objective assessment of the potential for growth of each public sector bank."
 
Following this, 75% of the amount collected for each bank is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market. 
 
The remaining amount, to be released later is linked to performance, with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations. 
 
Among others, Indian Overseas Bank will get Rs3,101 crore, Punjab National Bank will get Rs2,816 crorer, Bank of India will get Rs1,784 crore, Central Bank of India will get Rs1,729 crore and Syndicate Bank will get Rs1,034 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Balaji Kasal

7 months ago

I can't do much more than cry myself, as hard earned Tax money getting funded for award inefficiencies and corruption. :(

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CBDT signs 7 advance pricing agreements to cut tax litigation
In a move designed to reduce tax litigation, the Central Board of Direct Taxes (CBDT) on Monday signed seven more unilateral Advance Pricing Agreements (APAs) with Indian taxpayers.
 
"With today's signing, the total number of APAs entered into by the CBDT has reached 77. This includes 3 bilateral APAs and 74 unilateral APAs.
 
"In the current financial year, a total of 13 Unilateral APAs have been entered into so far," a Union Finance Ministry statement said here.
 
The latest APAs signed with taxpayers pertain to various sectors like banking, information technology and automotives.
 
APAs provide for signing an agreement between a taxpayer and the income tax department on an appropriate transfer pricing methodology for determining the value of assets and taxes on intra-group overseas transactions.
 
The scheme attempts to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and setting the prices of international transactions in advance, the ministry said.
 
"Since its inception, the APA scheme has attracted tremendous interest from taxpayers that has resulted in more than 700 applications (both unilateral and bilateral) having been filed in just four years," the statement said.
 
"The progress of the APA scheme strengthens the government's mission of fostering a non-adversarial tax regime," it added.
 
According to the government, the APA mechanism helps to achieve tax certainty for a period of up to nine years.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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