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.
Cyrus Mistry’s statement that will not take the seat of chairmanship of Tata Sons
Basically, the turning point in Tata-Mistry saga, Cyrus Mistry on Sunday finall
BJP wants to murder Arvind Kejriwal, Sisodia's sensational allegation; Know what was argued
Delhi Deputy Chief Minister Manish Sisodia on Wednesday made serious allegations against the Bhar
Many torture chambers have been found in the territory of Ukraine freed from the occupation of Ru
Delhi's air quality once again slipped into the "very poor" category. Friday morning began with h
India, Spain hold foreign office consultations
New Delhi, March 2 (IANS) India and Spain held their thir
After the crushing defeat in Australia, the Board of Control for Cricket in India (BCCI) has now
Amidst the fear of the third wave of corona in India, news of great relief has come on Wednesday.
Recently, protests have started against the new draft rules made by the University Grants Commiss
For some time now, actress Elli Avram's name is being linked with famous YouTuber and actor Ashis
Diljit Dosanjh: Diljit Dosanjh gifted shoes to a Pakistani fan, and said- we Punjabis love everyone
Famous actor and Punjabi singer Diljit Dosanjh is often in the news for his films and songs. The
