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.
SP Patron Mulayam Singh Yadav will be cremated in Saifai on Tuesday. More than one lakh people ha
There is reportedly a rift between Elvish Yadav and Prince Narula. Many times, news of difference
Aamir Khan has recovered from the box office disaster of Laal Singh Chaddha. After taking a break
Bundelkhand Expressway Key Points: PM Modi will inaugurate Bundelkhand Expressway tomorrow. The M
Ponting, Richards, Botham back New Zealand to win the Cup
Wellington, March 13 (IANS) Three cricketing greats -- Ricky Ponting, Ian Botham and Viv Richar
Control swine flu: Assam CM tells health department
Guwahati, March 11 (IANS) Assam Chief Minister Tarun Gogoi on Wednesday directed the health and
Why did Modi-Modi slogans, Arvind Kejriwal laughed and explained the reason
Delhi Chief Minister and Aam Aadmi Party convener Arvind Kejriwal campaigned for the party in Guj
Ravi Teja is one of the most popular actors in Telugu cinema. He will soon be seen in Ravanasur.
Realme 9 budget smartphone realme book prime laptop and tv stick launch know how much it costs
realme has launched a new budget smartphone in India today. This smartphone is a realme 9. The co
After the Taliban's occupation of Afghanistan, while most countries are busy evacuating their cit
