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.
Geetanjali Iyer, a well-known television anchor of the nineties, is no more with us. There is a w
Monsoon has entered many states of India including Delhi NCR. Monsoon has also reached Uttar Prad
Manipur is burning in the fire of violence. Violent clashes are still visible today in Manipur be
The Union Home and Cooperation Minister have said that the whole world is going through a recessi
An auto rickshaw and a truck collided head-on in a village in Karnataka's Chittaguppa taluk late
After two years, the case of the death of a girl student in Gurukul located in Sorkha village of
Tesla owner Elon Musk's letter to his employees is going viral on social media. In this, he asked
West Bengal Chief Minister Mamata Banerjee has said that the Trinamool Congress government will s
Days after Pakistan Prime Minister Shehbaz Sharif offered bilateral talks, India on Thursday said
PM Shahbaz Sharif was scolded in Saudi Arabia, people raised slogans of 'chor-chor'
Pakistan Prime Minister Shahbaz Sharif is on a visit to Saudi Arabia with his delegation. The vis
