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.
IPL 2020: DCvSRH - Delhi Capitals' fate changed, will history change?
If luck is in cricket, many times the doors of success are opened.
Luck wi
Dangerous cyclonic storm Remal reached West Bengal and Bangladesh on Sunday night with a speed of
Bengal opposition slams Mamata for skipping NITI Aayog meet
Kolkata, Feb 8 (IANS) Opposition parties in West Bengal Sunday slammed Chief Minister Mamata Ba
The trailer of Jaideep Ahlawat's most awaited series 'Paatal Lok 2' has been released. This time
Terror on the Internet: Internet playing the role of an ally in spreading terror
It is important to build a consensus among the world community to stop the use of internet media
Former India pacer and Delhi Capitals assistant coach Ajit Agarkar believes that no team is an ou
China's popular smartphone company Xiaomi has launched its new latest smartphone series globally.
The third match of the 5-Test series between India and England is being played at Headingley, Lee
Like this, I have spent 16 times in jail; SP candidate chief Gurjar openly threatens
Videos of controversial rhetoric of candidates who came out to campaign during the UP assembly el
Earthquake in Taiwan: Today is once again recorded in history for Taiwan. Exactly 25 years ago, t
