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.
Indian External Affairs Minister S Jaishankar on Thursday said that in the year of India's G20 pr
The number of corona patients in the country has crossed 43 lakhs. In the last 24 hours, 89 thous
Realme 9 Pro Smartphone: Realme has launched its 2 new smartphones Realme 9 Pro and Realme 9 pro
The threat of another variant of the virus is looming amidst the Omicron version of Corona wreaki
Despite the agreement reached between the protesters and the administration, the Lakhimpur Kheri
Shahi Imam makes pro-AAP appeal, Party Rejects 'Unsolicited' Support (Intro Roundup)
New Delhi, Feb 6 (IANS) On the eve of Delhi assembly poll
CISF caught 4 tourists for offering Namaz in Taj Mahal's Shahi Masjid. Among them, 3 tourists are
SC to hear BSES plea against tribunal order Feb 9
New Delhi, Feb 6 (IANS) The Supreme Court Friday said it would hear Monday a BSES Rajdhani and
HC reserves order on plea for more swine flu test labs
New Delhi, March 18 (IANS) The Delhi High Court on Wednesday reserved its order on a plea seeki
Micromax IN 1 will compete with Realme and Xiaomi in terms of entry, price, and features in India
In the budget segment, a lot of smartphones will be seen in India at this time. This is a segment
