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.
Union Law Minister Kiren Rijiju pitched for institutional arbitration, pointing out flaws in ad h
Prime Minister Narendra Modi addressed a huge public meeting in Nanded, Maharashtra. Du
Shahjahan Sheikh, accused in the Sandeshkhali violence case in West Bengal, was arrested by the p
Make style statement with mask against pollution, swine flu
New Delhi, Feb 20 (IANS) Here comes a mask that not only protects you from air pollution and swi
On Sunday, 1 lakh 1 thousand 159 cases of the corona were reported in the country. This figure is
There is anger in the country after the terrorist attack in Pulwama, Jammu, and Kashmir. Security
New York: Teen arrested for hate crime, besides elderly Sikh tourist, two other Sikhs were attacked
A 19-year-old teenager has been arrested for his alleged involvement in the attack on three Sikh
No restrictions on march against land bill: Government
New Delhi, March 17 (IANS) The government on Tuesday clarified that there were no restrictions
IPL star and Sixer King Rinku Singh is ready to rock the series starting in Sri Lanka with his ba
Even after the announcement of imposing a 50 percent duty on India, the government will have to p
