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.
Rathore inaugurates national photography workshop
New Delhi, March 19 (IANS) Minister of State for Information and Broadcasting Rajyavardhan Sing
England captain Morgan defends missing ODI for IPL
Wellington, Feb 19 (IANS) England captain Eoin Morgan has defended his involvement in the India
Cold wave sweeps across North India, temperatures drop from Delhi to Bihar; read IMD's update.
Summer has begun to leave most states across the country, and a mild winter has arrived. Be it De
Things can change after the death of Sushant Singh Rajput
The news of the death of film star Sushant Singh Rajput has once again made public the discussion
For the past few years, the US has accused China of making developing countries more dependent on
Delhi's Bengali Market Sealed Over 3 COVID-19 Cases, 35 Found On Shop Roof
नई दिल्ली: राजधानी के बीचो-बीच एक लोक
Uttar Pradesh Chief Minister Yogi Adityanath has left for Delhi for two days on Thursday amid pol
Why did Salman Khan call Sonakshi 'Devi', netizens said- 'Bhaijaan', you said...
Sonakshi Sinha, who won everyone's heart by debuting with Salman Khan's film Dabangg, has the sam
The condition of corona infection in Maharashtra has become worrying. 25,833 new infections were
New START Treaty: Putin suspends START nuclear deal with US, apprehensions about war increased
Warning to Western countries, Russian President Vladimir Putin announced the termination of the N
