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.
Windies Sammy recalls Douglas-Tyson contest
Wellington, March 19 (IANS) Former captain Darren Sammy p
PM Modi praised Congress leader Kamaraj; said, 'He is an inspiration for all of us'
Prime Minister Narendra Modi today paid tribute to the great hero of the freedom struggle and for
PSG got another defeat on their home ground, fans got angry with Messi, and teased the middle ground
The team of Paris St. Germain, adorned with star footballers Lionel Messi, Neymar, and Kylian Emb
A new update has come out regarding the attack on actor Saif Ali Khan. According to the informati
Tunisha Sharma Death Case: Sheezan Khan did not get relief from the court, bail plea rejected
Tunisha Sharma Death Case: Sheezan Khan, lead actor of 'Ali Baba Dastan-e-Kabul' is in judicial c
Today is the third day of Prime Minister Narendra Modi's visit to Gujarat. Today he will hold pub
If it's not a miracle, then what? God heard the compassionate call of a mother. Her six-year-old
Once again the fire of violence is blazing in Manipur. Two commandos of Manipur Police have been
Gautam Adani, the owner of Adani Group, has become Asia's second-richest businessman. His total a
New Delhi, March 24 (IANS) Prime Minister Narendra Modi will attend the funeral of former Singa
