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.
North Korea's drone violates airspace after five years, South Korea's army gives a befitting reply
South Korea's military says it fired warning shots after a North Korean drone violated the south'
The Meteorological Department said that the pace of the monsoon has been very slow for the last f
Social activist Snehmayi Krishna has demanded an FIR against Chief Minister Siddaramaiah, Deputy
Coronavirus in China: Coronavirus in China has once again destroyed the lives of people. Every da
Coronavirus update: Expect relief from a pandemic, know when the fall in infection cases will start
There is some relief news for the countrymen facing the havoc of the Corona infection. According
Indian navigation satellite to be mated with rocket this week
Chennai, March 16 (IANS) The Indian space agency is hoping to mate the country's fourth regiona
Vikrant Massey is currently in the news for his film 'The Sabarmati Report'. But, recently, peopl
Clashes Near Russia Border: The Ukrainian army reported the first death of a soldier on Saturday.
Beijing The neighboring country has blown off the head of the confrontation between the Indian an
The BJP is very conscious about the formation of the cabinet after the victory in the 2022 Uttar
