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.
Prime Minister Narendra Modi went out to hold five rallies across the country on Tuesday. While g
Volvo sells 4.7 percent stake in Eicher Motors
Chennai, March 4 (IANS) European truck maker AB Volvo on Wednesday sold 4.7 percent stake in Ei
A controversy has erupted over the new notification issued by the University Grants Commission (U
The rescue operation started after the Deoghar ropeway accident has ended. All the people trapped
Along with the security forces in Kashmir, now the security forces are tightening the noose on th
JEE Main Toppers List 2023: The result of Joint Entrance Examination Session 2 (Joint Entrance Ex
Real Gross Domestic Product (GDP) in the US is back in the positive zone after two consecutive qu
Team India will play ODI and T20 series against West Indies, two matches will be played in America
Cricket West Indies (CWI) has confirmed that India will play a few T20 Internationals in the US.
Lockdown extended in Bihar till 6 September, the order issued on 30 July will remain in effect
Corona lockdown has been extended once again in Bihar. This time it has been extended till 6 Sept
One thing that has remained constant so far in the match between India and Pakistan in the Asia C
