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.
SP to launch membership drive to expand base
Lucknow, Feb 5 (IANS) Uttar Pradesh's ruling Samajwadi Party (SP) Thursday decided to launch a
Siddhu Moosewala News: An encounter is going on between the suspected killers of Siddhu Moosewala
Eye surgeries done without permission: Haryana CM
Chandigarh, March 15 (IANS) Haryana Chief Minister Manohar Lal Khattar on Sunday said an eye su
If the Chennai Super Kings were to keep their playoff hopes alive this season, a victory against
Srinagar. Abdul Rashid. Age 67, Shikara runs on the famous Dal Lake in Kashmir. They have been do
The US space agency NASA has once again extended the launch date of its much-awaited Moon Rocket.
Gujarat Election 2022: The election of Gujarat stuck between these 'three models'! Who will win?
In the elections to be held in Gujarat, this time there will be a test of 'three models. Number o
The problem of air pollution has taken a formidable form around the world. About 91 percent of th
India will soon win the battle of Corona, these 3 figures increase government's expectation
new Delhi. Amid the coronavirus infection, the central government has announced the third phase o
Maharashtra is facing the threat of a cyclone storm due to the Corona epidemic. The Meteorologica
