
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.
AAP won as it offered what people want: Pai
Bengaluru, Feb 10 (IANS) The Aam Aadmi Party's (AAP) landslide win in the Delhi assembly electi
The two-day first All India State Ministers Annual Conference on the theme 'Water Vision 2047' ha
Australia power to 328/7 against India
Sydney, March 26 (IANS) Powered by a 182-run stand between Steven Smith (105) and Aaron Finch (
Defense Minister Rajnath Singh visited the Dinjan military base in Assam on Wednesday. He reviewe
Russia's attack against Ukraine has intensified. In this war, Russia has to face strong resistanc
International Yoga Day: Delhi was filled with yoga, from duty post to Red Fort... people did yoga.
Today the 10th World Yoga Day is being celebrated all over the world. Yoga programs are being org
Prime Minister Narendra Modi is currently on a visit to Sikkim. During this tour, on Tuesday, he
Delhi Police has arrested Youth Congress President Uday Bhanu Chib in connection with the protest
Andhra Pradesh Deputy Chief Minister Pawan Kalyan continuously attacks Jagan Mohan Reddy's previo
Praising religious freedom in India, America has said that India is the world's largest democracy