
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.
BJP's national executive meeting is being held in Delhi on 16 and 17 January. The meeting will be
Violence was seen across the country for alcohol, people started in line since morning
In the third phase of lockdown (liquor shops) have been opened. People living without alcohol for
In the last Super Four match of Asia Cup 2023 against Bangladesh, the Indian team had to face def
Sugar export curbs: Limit sugar exports to maintain sweetness, increase in prices will be curbed
The government has restricted the export of sugar to 10 million metric tonnes this year to mainta
Khaleda Zia, Bangladesh's first female Prime Minister, passed away on Tuesday, December 30, 2025,
Pakistan: Islamabad High Court gives big relief to Imran Khan, lifts ban on live speeches
The Islamabad High Court (IHC) has given a big relief to PTI President Imran Khan. The court has
Washington. So far, 4 lakh 18 thousand 872 people have died due to coronavirus in the world. The
LEAP India IPO Listing: Shares Make Tepid Debut, List at Over 4% Premium to Issue Price
KKR-backed LEAP India made a modest debut on the stock exchanges on Thursday, August 14, with sha
Indian cricketer Hardik Pandya may have separated from his ex-wife Natasha Stankovic, but the ex-
Bollywood's famous film director and producer Karan Johar is often in the headlines for his parti