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.
Jharkhand Governor Ramesh Bais issued an important guideline on Thursday. Governor Ramesh Bais ha
The International Monetary Fund (IMF) and Pakistan could not reach an agreement on a bailout pack
Ind vs Ban: Indian fast bowlers compared this Pakistani cricketer, Wasim-Sakhtar, and Waqar's trio
The first match of the two-match Test series between India and Bangladesh played a cow at the Che
SC pulls up home ministry for not acting promptly on rape videos
New Delhi, March 13 (IANS) The Supreme Court on Friday took to task the union home ministry for
Major accident in eastern Taiwan, 48 people killed due to derailment of train; Many injured
In eastern Taiwan, 48 people died after a train partially derailed after hitting a vehicle fallin
Prime Minister Narendra Modi laid the foundation stone of several rail projects worth over Rs 85,
The pace of coronavirus vaccination is increasing rapidly in India. Meanwhile, the President of t
Under the Open Market Sale Scheme (OMSS), the central government on Tuesday announced to sale of
Adipurush Dialogue Controversy Since the release of the film Adipurush, the controversy regarding
Chief Justice of Nepal's Supreme Court (CJ) Cholendra Shamsher Rana has been placed under house a
