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.
The people of Pakistan, who are suffering from the economic crisis, are facing inflation along wi
Bharat Jodo Yatra: Rahul Gandhi starts Bharat Jodo Yatra from Washim, today Sachin Pilot will join
Congress's Bharat Jodo Yatra is moving forward in Maharashtra. It advanced into the Washim distri
The mercury is rising in the northwestern plains including Delhi, Uttar Pradesh, Haryan
Want ₹1 Crore in 10 Years? Check the Monthly SIP Amount and Formula You Need to Follow
Building a corpus of ₹1 crore is a common financial goal for many Indians. Whether it is planni
Friday is coming and bringing with it a flood of new films to the theatres. This time, Siddhant C
E20 Petrol Debate: CEA Calls for E10 Fuel for Older Vehicles, Warns of Food-vs-Fuel Risks
The debate over India's E20 petrol policy has intensified after Chief Economic Adviser V. Anantha
The phase of violence has continued since the results of the assembly elections in Bengal. BJP ho
In the fourth match of Pakistan Super League 2024, Quetta Gladiators defeated Lahore Qalandars by
The shares of the country's largest insurance company LIC are falling continuously and this proce
Accused of getting EVM in BJP leader's car, Election Commission suspended 4 officers
After the second round of voting in Assam, the Election Commission has suspended 4 officials afte
