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.
Strong earthquake tremors in California, 2 people died; Richter scale 6.4 measured intensity
Earthquake tremors were felt in Northern California at 2.34 pm on Tuesday late night. The earthqu
Chasing a massive target of 243 runs against Sunrisers Hyderabad in IPL 2026, the Delhi Capitals
Indian-origin American astronaut Sunita Williams retired from NASA, the space agency, upon turnin
HC reserves order on Greenpeace activist's plea against offloading
New Delhi, Feb 19 (IANS) The Delhi High Court Thursday reserved its order on a plea filed by Gr
You were surprised, weren't you? But something similar has happened in Peru. Here an 800-year-old
What is the reason behind increasing the lockdown till 3rd May instead of 30th April?
New Delhi, ANI. A 21-day nationwide lockdown to prevent the spread of the corona virus is being c
China has made a big bet to suppress the protest of Uygar Muslims in Xinjiang province. To elimin
Petrol Diesel Price: Oil companies have released the prices of petrol and diesel for today. Today
Why Congress is absent from Gujarat and Himachal Pradesh elections, has already accepted defeat
The Election Commission can announce the assembly elections of Gujarat and Himachal Pradesh at an
UP CM Yogi Adityanath also got corona, took the first dose of vaccine on April 5, 9 days ago.
Uttar Pradesh Chief Minister Yogi Adityanath Corona has been found infected. He isolated himself
