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.
Mogherini calls for revised European Security Strategy
Munich, Feb 8 (IANS) European Union (EU) foreign policy chief Federica Mogherini Sunday called
In his fifth and final World Cup, Lionel Messi also fulfilled the dream he had been dreaming of s
Protest in Himachal against Hydropower major
Shimla, Feb 14 (IANS) Thousands of workers, farmers, students and women organisations Saturday
Vrindavan widows visit Taj Mahal
Agra, March 8 (IANS) The Taj Mahal on Sunday had special visitors -- widows from Vrindavan and V
Ghaziabad students call strike over swine flu mismanagement
Ghaziabad, Feb 24 (IANS) Students of three engineering colleges here went on a strike and force
South Korean company Samsung can launch its new smartphone at the end of this month. Information
After strong performances in Ranji... Irani... and India-A, Kuldeep Sen has been selected in Team
8-year-old child shot the girl: found the father's gun and opened fire; death of one year old
An 8-year-old boy shot a 1-year-old girl at a motel in Florida, USA. During this, another 2-year-
Amid rising tensions between India and Pakistan, two big industrialists of the country, Mukesh Am
Two billion doses of the Covid-19 vaccine were made but where did it go?
The coronavirus epidemic has proved to be devastating to the whole world. But in such a short tim
