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.
Agra, March 13 (IANS) An engine got separated from its coaches here, disrupting railway traffic
PM Modi in Denmark: PM Modi to attend India-Nordic summit, will visit France today
Prime Minister Narendra Modi is on a Europe tour. On this three-day visit, Prime Minister Modi wi
External Affairs Minister S Jaishankar has presented Covid, Conflict, and Climate (Corona, Confli
The noose has started tightening on the miscreants who created a ruckus during the idol immersion
A meeting of the Communist Party has been called in October to crown Xi Jinping as China's presid
Hearing the petitions challenging the validity of the Waqf Amendment Act 2025, the Supreme Court
Rajasthan Royals had to face defeat by 37 runs against Gujarat Titans in the 24th match of the IP
Surguja News: Earthquake tremors were felt in Chhattisgarh's Surguja division on Thursday aftern
How Turkey became 'drone superpower' in the Battle of Azerbaijan Armenia
The fierce war between Armenia and Azerbaijan in Nagorno-Karabakh has also brought the combat dro
Samrat Prithviraj Flop! Akshay Kumar's period drama 'Samrat Prithviraj' has been disappointing si
