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 global pandemic Coronavirus is wreaking havoc once again in India. The new variant of Covid-1
DG GST team reached Piyush Jain's residence in Kannauj, Piyush to appear in court today
Originally the hold of DG GST Intelligence on Piyush Jain, a businessman of Kannauj, is getting s
Uttam Mohanty Dies: Big blow to Odia film industry, veteran actor Uttam Mohanty passes away.
A sad news related to Odia cinema has come to light. Veteran actor Uttam Mohanty has said goodbye
The repo rate will remain at 6.5 percent, RBI Governor Shaktikanta Das announced after the MPC me
The Delhi Government has presented a budget of ₹1,03,700 crore for the financial year 2026-27.
Cyber fraud in India is evolving rapidly, with scammers constantly inventing new tricks to steal
Hindu temple attacked in Canada, targeted for the third time by Khalistan supporters;
Once again news of an attack on a Hindu temple is coming to the fore in Canada. A Canadian journa
In West Bengal, the conflict between the Trinamool Congress government led by Chief Minister Mama
Sushma travelling to South Africa, Tanzania
New Delhi, March 20 (IANS) External Affairs Minister Sushma Swaraj would be interacting with he
HAL to roll out more Hawk trainers for IAF, navy
Bengaluru, Feb 21 (IANS) State-run Hindustan Aeronautics Ltd (HAL) will roll out 26 more advanc
