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.
Noise is continuously launching in India. The company has launched three TWS earphones one after
Army Helicopter Crashes in Nagaland, None Hurt
Dimapur (Nagaland), Feb 2 (IANS) A Cheetah helicopter of the army crashed Monday in western Nag
Iran calls for lifting of US sanctions as nuclear talks begin
Iran on Tuesday made it clear that the issues discussed during the earlier diplomatic talks shoul
Farmers interests vis-a-vis corporates fully protected: Modi
New Delhi, March 22 (IANS) Prime Minister Narendra Modi on Sunday assured farmers that their in
The Indian population is the fastest growing in Australia. This has been revealed from the data r
E-way bill generation for B2B (business-to-business) transactions will soon be made mandatory for
The Odisha government has issued an alert in all the districts after the cyclonic storm Jawad is
Skipper Rohit Sharma said on Thursday that the Indian team is not looking to achieve anything spe
The Supreme Court on Wednesday rejected the request for an immediate hearing on the demand to dir
Delhi halves Power tariff, Gives 20,000 Litres Free Water
New Delhi, Feb 25 (IANS) Twelve days after taking over the reigns of power in Delhi, the Arvind
