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.
The effect of the atmosphere of concern created around the world regarding the new variant of Cor
The number of corona patients in the country crossed 74 lakh on Friday. So far 74 lakh 30 thousan
Budget 2024-25: Startups hope to overcome funding shortages, get tax concessions and boost R&D
Finance Minister Nirmala Sitharaman made several announcements for startups in the interim budget
Ranbir Kapoor's film Animal, released in 2023, created a sensation at the box office. Shedding hi
There is a slight increase in the Corona figures in the country. After one week, once again the f
Bollywood actor Govinda has been shot in the leg. If reports are to be believed, the incident hap
Big news is coming from the Karnataka State Cricket Association, which is embroiled in controvers
In the case of Meerut's Saurabh murder case, the team of the Drugs Department also came into acti
Kolkata: Farmer leaders agitating against agricultural laws in Delhi held a press conference in W
No foreign head of state will be made the chief guest in the Republic Day parade this year. The n
