
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.
People's wait is over and the most awaited show of the year 'Panchayat Season 4' has now been rel
Corona's new variant Omicron has once again created a sensation in the world. Its causes have bee
CUET UG 2022: CUET exams will start on 15th, these tips will help in preparation at the last moment
CUET UG 2022: The Common University Entrance Test/CUET UG examinations will be conducted from Jul
Happy Birthday Arijit Singh: Arijit Singh, who has sung many songs like 'Kesariya', 'Channa Merey
Two policemen shoot each other dead in Bihar
Patna, March 9 (IANS) Two policemen shot each other dead, following an argument on Monday in Bih
India Lockdown Day 6: Govt Zeroes In On 10 Hotspots
देश भर में COVID-19 मामलों की संख्या 1,251 तक प
Amid the deepening crisis in the Corona epidemic, many states have begun to take more stringent m
South actor Vijay Sethupathi is in the headlines these days. A user on the social media platform
Shock: 50 crore assets of Air India and IATA seized in Canada, know what is the reason here
A Canadian court has given a strong blow to India. The court ordered the confiscation of the asse
North Korea begins to collapse? Kim Jong Un said - the country undergoing the worst
North Korea's leader Kim Jong Un addressed thousands of grassroots activists of his ruling party