
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.
Another shooter involved in the Umesh Pal murder case was killed by the police in an encounter on
Don't mislead the public... High Court's scathing remarks on Baba Ramdev's statements on Allopathy
The Delhi High Court on Wednesday asked yoga guru Baba Ramdev to not mislead the public on the st
There is a wave of mourning in the whole country due to the death of former Prime Minister Manmoh
US seeks allies' support for possible China sanctions over Ukraine war: report
The United States may talk further on the subject to close allies about the possibility of imposi
HC upholds 10-year jail term for Chautala, Son
New Delhi, March 5 (IANS) The Delhi High Court on Thursday upheld a 10-year jail term for forme
ED is again in the headlines for its raids in high-profile cases. Within a week, the ED has recov
Qatar Navy Officer News The death sentence of 8 former Indian sailors has been put on hold in Qat
Mumbai: Defending the timing of Yes Bank's moratorium, Reserve Bank of India governor Shaktikanta
Sidhu can come out on Republic Day: 1-year sentence in road rage case, jailed for 6 months
Navjot Singh Sidhu, who is serving a one-year sentence in a 34-year-old road rage case, may be re
In the last 24 hours, 3,676 new patients were identified, 2,497 patients were cured of the corona