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.
22-year-old Umran Malik, who plays for Sunrisers Hyderabad, has emerged as the new speed star. He
Jailer Twitter Review: Before 'Gadar 2' and 'Oh My God-2' hit the theatres, South Superstar Rajin
The Russia-Ukraine war is going to complete 50 days soon. Meanwhile, Russia has destroyed two arm
Europe Heatwave Crisis: Residents Rush to Buy Cooling Appliances Amid Rising Temperatures
A severe heatwave sweeping across several European countries has sent temperatures soaring, promp
It was natural to celebrate in Bengaluru after the victory of Royal Challengers Bangalore (RCB),
During the economic crisis in Pakistan, the political uproar is also increasing. There is news fr
The scorching heat continues to wreak havoc in about 70% of the country. About 80% of the country
Dhurandhar has been making headlines ever since its release. The film is garnering attention and
Why was voting held in Kerala to elect a Russian President, people voted enthusiastically
Kerala vote for Russian President Voting for the presidential election is going on in Russia. Vot
Petrol Diesel Price: Oil companies have released the prices of petrol and diesel for today. Today
