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.
Finance Minister Nirmala Sitharaman has invited global investors to be a part of India's growth s
There is a lot of drama happening every day in Salman Khan's reality show Bigg Boss 18. To achiev
ICC has released the batsmen's ranking of T20 International. In this ranking, India's star batsma
It is also feared that the Omicron variant of Corona will reach India. Meanwhile, Dr. NK Arora, c
Veteran actor of Marathi cinema Ravindra Mahajani, who was seen in the role of a policeman in the
PM Visits Manipur: Modi's big attack, said - some people want to destabilize Manipur for power
PM Narendra Modi is on a visit to Manipur and Tripura today. Modi reached Imphal, the capital of
The Supreme Court has once again made strict remarks on illegal conversions. Describing those who
Guidelines: Avoid taking antibiotics for mild fever, ICMR advised
The Indian Council of Medical Research (ICMR) has issued guidelines asking people not to use anti
Good news: Big decision regarding admission in school-college, now admissions will be free
Guwahati. There is hardly any country in the world untouched by the deadly pandemic Corona virus.
Singer Sonu Nigam was manhandled during a live concert in the Chembur area of Mumbai. The inciden
