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.
Allu Arjun's much-awaited film 'Pushpa 2: The Rule' is all set to release on the big screen on De
Former Union Minister and senior BJP leader and MP Prakash Javadekar said that Prime Minister Nar
8 to 10% Growth is eminently achievable
Government is working on a new ag
IND vs WI 3rd ODI: India set a target of 266 runs for West Indies, Iyer and Pant hit half-centuries
India vs West Indies 3rd ODI, Narendra Modi Stadium Ahmedabad: In the third and final match of th
While hosting more than twenty heads of state from across the world, the police and various secur
Israel has once again moved forward on a ceasefire proposal in the Israel-Hamas war that started
US doctors have done a great job of transplanting a genetically modified pig's heart into the bod
Peace talks begin in Qatar of Afghanistan and Taliban, know what will be the effect on India
After months of delay, the first formal peace talks between the Afghan government and the Taliban
Healthcare Technology Revolution: How Smartwatches and AI Are Helping People Stay Fit
Traditionally, most people visit a doctor only after experiencing a health problem. In many cases
To answer China, Indian Army's focus on these areas, conducting survey
To give a befitting reply to the expansionary Chinese salute-slicing strategy in the northern bor
