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.
INTACH documenting traditional Jagannath pilgrimage route
Bhubaneswar, March 12 (IANS) The INTACH has started listi
First-ever World Ocean Science Congress in Kochi from Thursday
Kochi, Feb 3 (IANS) Eminent oceanographers, environmentalists, naval exponents and maritime ind
Tim Cook ate vada pav with Madhuri Dixit, took pictures with employees, and meet PM Modi
Apple Chief Executive Tim Cook arrives in Mumbai on Monday ahead of the inauguration of Apple's f
There was a well-planned conspiracy of anti-national violence behind the actions of stone pelters
With the help of two goals from young forward Rodrigo, Real Madrid defeated Osasuna 2-1 in the fi
Realme: The company launched the Q5 Carnival Edition in the market, gets a 50-megapixel camera
Realme Q5 Carnival Edition Launch: Realme has launched its Q5 Carnival Edition smartphone in Chin
Kolkata Knight Riders' star fast bowler Mitchell Starc has given a big hint related to
PM Modi Praises Singer Snehdeep Singh Kalsi: Not only the story of the Bollywood hit film 'Brahma
Indore. A 21-day lockdown continues across the country to prevent infection with coronaviruses. D
The pressure on the Telangana government is increasing in the case of the murder of a six-year-ol
