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.
Madhya Pradesh Deputy Chief Minister Rajendra Shukla and ASP Anuj Chaudhary reached out on Sunday
Air pollution in the country's capital Delhi has reached dangerous levels. The fog along with pol
The year 2022 is going to be very special for OTT platforms. Many big Bollywood stars will hit th
Defense Minister Rajnath Singh will attend a program organized by the Department of Ex-Servicemen
PM Modi praised Manmohan Singh: While addressing the farewell ceremony of MPs in Rajya Sabha, PM
DU Final Year / Semester Exam 2021: University of Delhi has announced to hold the final year and
UP Police Recruitment 2023: Good news for women, bumper recruitment in UP Police; Read new update
There is going to be a tremendous increase in women's power in Uttar Pradesh Police next year. Ab
Virat Kohli Century KL Rahul: Virat Kohli is known as a team man. Kohli thinks more about helping
Countries around the world are worried about the new wave of Corona in Singapore. Now i
The referendum organized by Khalistanis in London on Sunday to separate Punjab from India has pro
