
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.
On Monday, 1.67 lakh cases were reported in the country. During this 2.54 lakh, people were also
These 5G smartphones will soon be launched in India in 2021, know the features and price
Tech companies are now focusing on 5G smartphones according to the changing market. By the year 2
This new launch smartwatch is available at a discount of 83%, its dial is the biggest feature
Amazon Deal On Smartwatch: Don't miss to check out your choice and budget options on Amazon befor
External Affairs Minister S Jaishankar said that India wants to ensure that its relations with al
New Delhi: In the Tabligi Markaz case, Delhi Police will today (Tuesday) file 20 charge sheets ag
There is tension on the India-Pakistan international border after India's Operation Sindoor on Pa
These phones from Samsung to OnePlus, these companies become cheap, can be your choice
New Delhi: In the ongoing unlock between the coronavirus epidemic, the markets are getting again
Iran calls for lifting of US sanctions as nuclear talks begin
Iran on Tuesday made it clear that the issues discussed during the earlier diplomatic talks shoul
Apart from his films, Bollywood actor Ayushmann Khurrana also makes a lot of headlines for his si
Twitter on Wednesday added the 'official' label to the handles of leaders including Prime Ministe