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.
Punjabi singer Diljit Dosanjh recently made headlines after he received a legal notice from the T
Delhi Assembly Election: War of words lapped on AAP Donations
Prime Minister Narendra Modi inaugurated India Energy Week 2024 in Goa. During this, in his addre
The BCCI has so far earned over Rs 46000 crore through the TV and digital rights of IPL, making i
India-Pakistan Ceasefire: 32 airports closed amid India-Pakistan tension reopened; operations resume
32 airports of the country which were closed due to the recent military tension between India and
In view of the danger of new variants of Kovid, the Delhi government has made it compulsory to ap
40 percent shortfall of fresh water by 2030: UN report
New Delhi, March 20 (IANS) Earth would face 40 percent shortfall of fresh water by the year 203
Some time ago, it was reported that there was some rift between Govinda and his wife, and he was
FIR against DLF, top officials for fraud
Gurgaon, March 17 (IANS) An FIR has been filed here against realty major DLF and its top officia
Prime Minister Narendra Modi will distribute more than 71 thousand appointment letters for new re
