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.
President, PM call for end to violence against women
New Delhi, March 8 (IANS) President Pranab Mukherjee and Prime Minister Narendra Modi on Sunday
The political battle that was going on for about two and a half months regarding the Lok Sabha el
After being out of form for almost three years, Virat Kohli made a good comeback in the last mont
33 new cases of swine flu in Telangana
Hyderabad, Feb 26 (IANS) Telangana Thursday reported 33 fresh cases of swine flu, officials said
Lalu Yadav's daughter Dr. Rohini Acharya has now launched a scathing attack on actress Kangana Ra
National Herald Case: After interrogation in the National Herald case, Congress leader Rahul Gand
Delhi to see big voter turnout: Survey
New Delhi, Feb 6 (IANS) The national capital is likely to witness a voter turnout of around 72
The Meteorological Department (IMD) has issued a heavy rain alert for 14 states including Gujarat
While economists around the world are expressing the possibility of a global recession, on the ot
India again came forward to help Sri Lanka facing an economic crisis
External Affairs Minister S. Jaishankar on Monday assured Sri Lankan President Gotabaya Rajapaksa
