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.
The fact that several big and experienced names went unsold in the IPL 2026 mini-auction came as
8th story from New Delhi. (Bhanwar Jangid). Within two months of the lockdown, Delhi's heartbeats
Involve Youth in PM's Initiatives, says President
New Delhi, Feb 11 (IANS) Describing youth as the potential "engine of growth", President Pranab
Indian team's head coach Gautam Gambhir has supported KL Rahul, who is in poor form. Gambhir says
When GST comes, petrol 75 and diesel will be Rs 68 - SBI report
Due to the continuous increase in the prices of petrol and diesel, the government is under great
HUL Share Price Falls 4% Despite Strong Q1 Results; Profit Sees Best Growth in 13 Quarters
India's largest FMCG company, Hindustan Unilever Limited (HUL), has reported an impressive perfor
The BJP hit back at Rahul Gandhi's renewed allegations of vote theft. The BJP said Rahul Gandhi k
Yuvraj Singh Motivates Indian Team: The Indian team had to face defeat by 6 wickets at the hands
Only help with accurate Corona infection data
With the increase in coronavirus cases in Delhi, the information provided under the Health Bullet
Will make Delhi corruption free in five years: Kejriwal
New Delhi, Feb 14 (IANS) Chief Minister Arvind Kejriwal Saturday vowed to make Delhi corruption
