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.
In Leicester, UK, once again a case of a clash between Pakistani Muslims and Hindus has come to t
Gauraksha Bajrang Force president Rajkumar alias Bittu Bajrangi Kas, arrested in Nuh violence, ha
India stops infiltration of Chinese aircraft on Ladakh border, stir over LAC
New Delhi, ANI. The Indian Air Force repelled Chinese helicopters coming towards the Line of Actu
Dhoni rises to No.8 in batting rankings
Melbourne, March 16 (IANS) India captain Mahendra Singh Dhoni has risen two places to World No.
PM salutes the courage of women on International Women's Day
New Delhi, March 8 (IANS) Prime Minister Narendra Modi on
On the occasion of Doctors Day, Prime Minister Narendra Modi on Monday said that his government i
The grandeur and devotion of the Jagannath Rath Yatra was seen across the country. On the occasio
The Congress, which is trying hard to return to power in Uttar Pradesh, has made a big announceme
As much as cricket fans wait for IPL, more than they wait to see Chennai Super Kings captain Mahe
Defending the decision to levy GST on packaged goods and food items, Revenue Secretary Tarun Baja
