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 the occasion of the foundation day of Gujarat, the state government has given a bumper gift to
ISRO YUVIKA 2023: If you also want to make your child's career in the field of space science, the
Cinematic fans shower lots of love on their favorite stars. Then whether it is a Bollywood star o
Indian Railways Launches ‘Q-Mitra’ System to Simplify Tatkal Ticket Booking and Crack Down on Bots
In a major move aimed at making Tatkal ticket booking fairer and more transparent, Indian Railway
The World Health Organization (WHO) has approved the first malaria vaccine RTS, S/AS01 in the wor
Cryptocurrency: Strong boom in crypto market, investors earn huge amid Russia-Ukraine war
On the one hand, the war between Russia and Ukraine is increasing and it is affecting the currenc
India has won the first ODI series of the World Cup year. He has taken an unassailable 2-0 lead o
TANCET 2023 Result Out: Tamil Nadu Common Entrance Test result released, download like this
TANCET 2023 Result Out: Anna University, Chennai has released the Tamil Nadu Common Entrance Test
Mysuru gets new prince as Wodeyar heir
Mysuru, Feb 23 (IANS) The Mysuru royal family Monday adopted 22-year-old Yaduveer Gopal Raj Urs
Ronnie Karin Rabin. Last week, British scientists declared success in the war against Covid 19. H
