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.
Chennai Super Kings will face Sunrisers Hyderabad in the Indian Premier League on Wednesday. If D
Heavy rains in many states of the country have increased the trouble of the people. Due to heavy
Gas Prices Hike: Mahanagar Gas gave shock the public, and increased the prices of CNG and PNG again
Mahanagar Gas on Friday once again dealt a blow to the general public, citing rising costs and a
At Patna Junction, there was a sudden strange atmosphere when obscene videos started showing in p
SC strikes down Section 66A of Information Technology Act
New Delhi, March 24 (IANS) The Supreme Court on Tuesday struck down Section 66A of the Informat
So far two cases of monkeypox have been confirmed in the country.
On July
The eclipse of the ongoing lockdown due to corona for the last 15 days has also been put on weddi
Continuous rains continue to wreak havoc in many cities of Maharashtra. The situation has gone fr
Prime Minister Narendra Modi took the front on Thursday in the political turmoil of West Bengal.
Hardik Patel Quits Congress: Big blow to Congress in Gujarat, Hardik Patel resigns
Congress suffered a setback before the assembly elections in Gujarat. Hardik Patel has finally sa
