
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.
Total crosses 10,000 worldwide, India cases now at 195
दुनिया भर में वायरस 234,000 से अधिक लोगों
Agra upset as Noida chosen for tourism varsity
Agra, March 24 (IANS) The decision to establish the national tourism university in Noida on the
PMO showed undue interest in coal block allocation: Court
New Delhi, March 11 (IANS) Manmohan Singh showed "extra u
New Zealand will continue playing aggressive cricket: McCullum
Melbourne, March 29 (IANS) Despite their bruising loss to Australia in the cricket World Cup fi
Growing global population disaster or opportunity, positive aspects of population growth
The population explosion in the world in the last five decades is surprising everyone. From this,
The two shooters killed by the joint STF and police team in the Disha Patani house shooting case
Due to the Russia-Ukraine war and climate change, grain prices are skyrocketing around the world.
Moosewala Murder: Five arrested for making fake passports of conspirators, one woman included
The South District Police has busted the gang that made fake passports of gangsters and arrested
New Delhi. True, the situation in the country is difficult, but it is expected to improve soon. T
UGC chairman's big announcement, now students will be able to get 2 full time degrees simultaneously
The University Grants Commission has announced its decision to allow students to pursue two full-