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.
Once again a change in the weather can be seen in the country. Monsoon has returned in most parts
There has been a decrease in the cases of Corona (Covid 19 Cases) in the country. For two consecu
Taliban's capture of power How deep a stain on Biden's politics?
Before the Afghanistan crisis, the Biden administration claimed to have been able to regain its p
The National Green Tribunal has ordered the Central Pollution Control Board and Delhi Pollution C
As the month of April progresses, a continuous rise in temperature is being observed. According t
Be it Earth or space, without water man cannot survive anywhere for long. Astronauts i.e. scienti
Before the ceasefire after Operation Sindoor, India drew a Laxman Rekha for neighboring Pakistan
India-Pakistan: 'Stay out of our internal matter', India slams OIC Secretary General's visit to PoK
India has strongly objected to the visit of Organization of Islamic Cooperation (OIC) Secretary G
Cattle smugglers held in Gurgaon
Gurgaon, Feb 15 (IANS) Four cattle smugglers were Sunday arrested near the Kherki Daula toll pl
The government said that people will not suffer the price of onion and pulses during the festive
