
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.
India will take on Pakistan in the Champions Trophy 2025 on Sunday, February 23 at the Dubai Inte
New variant of Coronavirus found in Chhattisgarh; Doctors said - how it will affect the body, we do not know yet
Another worrying news has come in Chhattisgarh amid the increasing infection of corona. Coronavirus
Weather Forecast: Cold will hit Delhi-NCR further, minimum temperature will fall today
These days, severe cold continues to wreak havoc across North India including Delhi-NCR. Due to s
'Habits are getting spoilt due to freebies', Supreme Court expressed concern over freebies.
The Supreme Court on Wednesday said on the promise of political parties to give freebies (free th
Gold demand for jewelry is at an all-time low
Gold demand in the country declined by 70 percent during the April-June quarter. This is the firs
The situation in West Bengal has gone out of control since the passing of the Waqf Amendment Act.
A painful accident has come to the fore in the area of Makkar Colony located on Tibba Road.
A supreme ban has been imposed on bulldozers running on more than 4000 houses in Banbhulpura of H
Pandemonium in Odisha assembly over PESA Act violation
Bhubaneswar, March 18 (IANS) Pandemonium prevailed in Odisha assembly on Wednesday over the
Icy winds blowing from the high peaks of the Himalayas have gripped the entire North India in a s