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.
Maharashtra's ex-deputy CM R.R. Patil dead (Second Lead)
Mumbai, Feb 16 (IANS) Former Maharashtra deputy chief minister Raosaheb Ramrao Patil, who was h
In the scorching heat, the water fight has increased in the national capital. There are still man
Big Change in Mutual Fund Trends: Investors Move from Equity SIPs to Gold and Debt Funds
India’s mutual fund industry witnessed a major shift in investor sentiment during April, as
Be it Earth or space, without water man cannot survive anywhere for long. Astronauts i.e. scienti
Stories of unusual entrepreneurs highlighted in a book
New Delhi, March 2 (IANS) A young girl from Jammu and Kashmir is reviving numdah, the popular r
Prime Minister Narendra Modi will address a gathering at the tribal shrine Mangarh in Rajasthan's
India's PM Narendra Modi, who is engaged in a new effort to improve his relations with Southeast
The release date of actor Salman Khan's film 'Kisi Ka Bhai Kisi Ki Jaan' is just around the corne
Ranya Rao Case: Ranya Rao confessed her crime! Apart from Dubai, she traveled to these countries.
Recently, Karnataka actress Ranya Rao was arrested at Bengaluru airport in the gold smuggling cas
US President Joe Biden is going viral on social media. In fact, after forty minutes of his speech
