
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.
Srinagar: One Lashkar-e-Taiba terrorist arrested during a search operation in Chadoora
Irrespective of the snowfall and rain in Kashmir, the security forces are continuing their operat
It doesn't matter who is running Twitter, how it is running is important: Antonio Guterres
United Nations Secretary-General Antonio Guterres has said that he is not interested in who is ru
Last night, actress Tanushree Dutta shared a reel on social media, in which she was seen crying a
The difficulties of Pakistan Tehreek-e-Insaf (PTI) chairman and former PM Imran Khan are increasi
Salaar OTT Release: KGF director Prashant Neel's film Salaar broke records at the box office. The
This year floods and landslides have caused great destruction in Pakistan. In the remaining grave
Big accident in Uttarakhand, so far 13 bodies have been removed from the ditch, rescue continues
Champawat Accident: A major accident happened in Uttarakhand on Monday night. Max met with an acc
Despite government pressure, Twitter did not take action on some handles, why did it do this
On the orders of the central government, Twitter has blocked many accounts in the last about 10 d
There is an election atmosphere in the country. Congress is busy saving its crumbling forts in di
Defending champions India down but not out (World Cup team profile)
Adelaide, Feb 13 (IANS) India are the defending champions. They are also one of the favourites.