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.
When India enters the Rose Bowl next month to play the final of the World Test Championship again
The tenure of Team India head coach Rahul Dravid ended after the ODI World Cup 2023. After Ravi S
Vijay Diwas celebrations, a symbol of India's historic victory in the 1971 war against Pakistan,
Time 2 pm. Everywhere in Pikaura village of Mankapur, there was a discussion about the train acci
Pranit More has been evicted from the controversial reality show Bigg Boss Season 19. Nine contes
Indian cricket team's star batsman Virat Kohli has once again sought refuge at the feet of Lord S
In the case of money laundering related to the National Herald newspaper, the Enforcement Directo
Sony Xperia smartphone will be launched on April 14, these special features can be on the phone
Japanese multinational company Sony Corporation is preparing to launch the latest model of its Xp
Dengue vaccine not found, more than 100 countries million people affected every year Aedes mosqui
A Korean woman was molested on Wednesday night in the Khar area of Mumbai. The incident hap
