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.
Chinaman spinner Kuldeep Yadav's confidence has increased after getting a regular place in the pl
The petrol and diesel crisis has started in many parts of the country including Uttar Pradesh, Ra
Prime Minister Narendra Modi on Friday launched the second phase of the Swachh Bharat Mission (Ur
JNVST Result 2022: Jawahar Navodaya Vidyalaya Admission Test 2022 result for admission to class 6
The troubles of stand-up comedian Kunal Kamra, who is in trouble for making controversial stateme
HC restrains allocation of blocks to Coal India
New Delhi, March 23 (IANS) The Delhi High Court on Monday granted interim relief to Jindal Stee
Shops will open from today under a new schedule
The administration is opening the market with a new schedule from Monday amidst the ever-increasi
The Central Government on Tuesday announced gallantry awards to be given to the Armed Forces Forc
A long-stalled trade agreement between India and the United States has been finalized. President
The Health Department is increasing the list of children and adolescents along with vaccination.
