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.
A New Mercedes car has been included in Prime Minister Narendra Modi's convoy. This new car has b
Consent was received on Wednesday to bring a no-confidence motion against the Modi government in
On the rising water level in Yamuna, Chief Minister Arvind Kejriwal called an emergency meeting a
Former Pakistan Prime Minister and Pakistan Tehreek-e-Insaf (PTI) chief Imran Khan on Sunday alle
The Indian documentary 'Writing with Fire', directed by Rintu Thomas and Sushmit Ghosh, has recei
New cases of corona and death in the country continue to decline rapidly. The good news is that o
Covid-19 In China: China issues new Covid control protocol, emphasis on monitoring mutated variants
Because of the increasing cases of coronavirus in China, the Joint Prevention and Control Mechani
Now CBI will investigate the case of purchase of one thousand low floor buses in Delhi
The case of alleged irregularities in the purchase of 1000 low-floor buses in Delhi was handed ov
The world-famous Rath Yatra of Mahaprabhu is being celebrated with full enthusiasm in Jagannath D
In many states of the country, the falling temperature has started showing its effect. Changes in
