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.
Cryptocurrency: Decline in the digital currency market, Uniswap raises hopes, jumps 3 percent
Cryptocurrency markets around the world are seeing a decline on Monday. During this period, the w
Tension is rising over Ukraine, will Putin press the nuclear button?
First of all, I want to admit one thing. Several times I thought: "Putin would never do that." Bu
Sit at your own Risk: Make office your Mini-Gym (Lifestyle Feature)
New Delhi, Feb 5 (IANS) Be it the Metro, car, bike or workplace, most office-goers tend to sit
UP Travel Mart gets off to dazzling start
Lucknow, Feb 23 (IANS) The Uttar Pradesh Travel Mart 2015, a joint initiative of Ficci and UP T
Zhengshen Ou and Zhangjie, directors of India's popular mobile brand Vivo, fled India last year.
80s Retro Photo Trend Goes Viral: Try These 8 AI Prompts for a Vintage Look
The 1980s photo trend is going viral on social media, with users turning their modern-day picture
The second wave of Corona in the country has caused outrage. Most states of the country have come
The Reserve Bank of India (RBI) announced the review of its Monetary Policy Committee (MPC). Ther
Malaysia keen to partner with Andhra for various projects
Hyderabad, March 17 (IANS) Malaysia has evinced interest in partnering with Andhra Pradesh for
Choreographer-director Farah Khan often entertains everyone with her impeccable style and sense o
