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.
World-class tourism infrastructure in twelve cities soon
New Delhi, March 9 (IANS) The tourism ministry will develop world class infrastructure in twelv
Voting is being held at all polling stations for Delhi Vidhan Sabha Chunav 2025 from the schedule
Due to Omicron worldwide, the pace of corona infection has become uncontrollable. In the last 24
Delhi children exposed to very unhealthy air in schools: Greenpeace India
New Delhi, Feb 16 (IANS) The air inside Delhi schools is
The matter of validity of the case will be heard first in the Gyanvapi case. The demand for legit
Rescue workers pulled several people alive from the rubble of buildings in Turkey on Monday. Howe
Shah Rukh Khan and Deepika Padukone are shooting for their upcoming film 'Pathan' in Spain. The c
Are metros, buses and cabs running in Delhi from May 18? Read expected news
New Delhi: In Lockdown 4.0, there are some signs of change in everyday life. Expectations of conc
The Ministry of Civil Aviation has told a parliamentary committee that in the coming two years, m
On Monday, the bodies of 46 migrants were found in a truck parked on the roadside in Texas, USA.
