
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.
India beat Bangladesh by 109 runs, reach World Cup semis
Melbourne, March 19 (IANS) India beat Bangladesh by 109 runs to enter the cricket World Cup sem
What is the role of Chinese Ambassador in Indo-Nepal dispute
At a time when most of China's diplomats are trying to advance their foreign policy agenda in an
Indian Foreign Minister Dr. S. Jaishankar's visit to Russia has been completed. Many important ag
NASA, NOAA to announce 2022 global temperature and climate conditions today
Climate researchers from NASA and the National Oceanic and Atmospheric Administration (NOAA) will
Union Defense Minister Rajnath Singh has reached Srinagar. He is on a two-day visit to Jammu and
On May 18, the whole world is celebrating International Museum Day. On this occasion, all the mus
The Delhi-Dehradun Expressway stands as an unparalleled example of the balance between developmen
Sonia shocked over rail disaster
New Delhi, March 20 (IANS) Congress president Sonia Gandhi expressed shock over the train disas
The Sino-Russian-led Shanghai Cooperation Organization is holding a summit meeting in Samarkand c
The temperature in the capital on Monday was one degree Celsius above normal. Due to this, there