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.
Lucknow. Prime Minister Narendra Modi on Friday launched the 'Self-sufficient Uttar Pradesh Rozga
Hardik Pandya's career started questioned after the T20 World Cup 2021. Hardik then played for Te
President Draupadi Murmu is currently on a tour of Suriname and Serbia. He addressed the Indian c
Rajkumar Hirani, one of the finest directors of Indian cinema, has now joined the country's firs
Tension has increased in the relations between India and Canada in the last few months. Canadian
Over The Last Week, Slight But ‘Noticeable’ Flattening Of Growth Curve In Coronavirus Cases
कोरोनावायरस (COVID-19): जिस तरह à¤à¤¾à¤°à¤¤ अपनी 21 à¤
India-US Tariff War: India takes tough stand on threats...diplomatic relations may get derailed
India has also adopted a tough stance on repeated threats by US President Donald Trump to buy oil
Shreyas Iyer: The doors of the Indian team are getting closed for middle-order batsman Shreyas Iy
World Cup: Australia vs England scoreboard
Melbourne, Feb 14 (IANS) Scoreboard of the Australia innings against England in their World Cup
The people of Delhi-NCR, who have been facing the scorching heat and heatwave in the last few day
