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.
The National Investigation Agency (NIA) has caused a strong injury to the network of Khalistani t
Petrol Diesel Price: Oil companies have released the prices of petrol and diesel for today. Today
Vivo has launched its two flagship smartphones Vivo X60 and Vivo X60 Pro in the market. Currently
On Tuesday, the number of corona patients in the country crossed 37 lakh. So far 37 lakh 66 thous
The second match of the three-match Test series between Pakistan and Australia is being played in
The exit polls for Maharashtra Assembly Elections 2024 have shown a tough fight between the Maha
Once again, the story of the freedom revolution will be seen. Prime Video has announced its new p
Nitin Gadkari fulfills Ashok Gehlot's demand, Rajasthan CM happy
Rajasthan Chief Minister Ashok Gehlot on Tuesday spoke to Union Road and Transport Minister Nitin
Indian soldiers posted on the border are now going to be converted into fighting machines. Ballis
North Korea has tested a ballistic missile on Tuesday morning. Monitoring stations in South Korea
