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.
The UP police are once again questioning Seema Haider, a Pakistani woman who entered India illega
A month after smashing win, AAP locked in crisis
New Delhi, March 13 (IANS) A month after it vanquished the BJP and the Congress to take power in
The first meeting of the high-level committee formed by the Central Government to investigate the
AAP Breakaway Faction Questions Party Funding
New Delhi, Feb 3 (IANS) The AAP Volunteer Action Manch (AVAM), a breakaway group of the Aam Aad
13 MPs do not want Liz Truss to be British PM, what can be ousted from power? rules are not easy
Britain's Prime Minister Liz Truss is hanging the sword of being removed from her post. 13 of his
Russia's attack on Ukraine continues after more than two months. During this, many videos and pic
From Ranbir Kapoor, Alia Bhatt, and Neetu Kapoor to Kareena Kapoor and Karishma Kapoor, recently
RBI News: Reserve Bank cancels the registration of PC Financial Services, know the reason here
The Reserve Bank of India (RBI) has taken major action against PC Financial Services Pvt Ltd for
Today is the second day of the special meeting of the Counter-Terrorism Committee of the United N
The government has responded to the World Health Organization (WHO) matter of calling cough syrup
