
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.
Diljit Dosanjh: Diljit Dosanjh gifted shoes to a Pakistani fan, and said- we Punjabis love everyone
Famous actor and Punjabi singer Diljit Dosanjh is often in the news for his films and songs. The
Greenland Row: 'Donald Trump... go to hell,' Danish MP lashes out at US aggression over Greenland.
US President Donald Trump's aggression regarding Greenland continues to escalate. Meanwhile, a st
Prosecution evidence closed in 2G money laundering case
New Delhi, Feb 26 (IANS) A special court Thursday concluded recording statements of prosecution
After three phases, Prime Minister Narendra Modi will now heat the atmosphere by campai
In Assam one Assistant Sub-inspector and student killed by CRPF jawan's
In assam one of the CRPF constable o
In IPL 2022, Rashid Khan performed brilliantly with the ball and bat for Gujarat Titans. While to
Covid-19: Discussion on two variants of Corona NIMBUS and STRATUS, has a new variant arrived again?
For more than a month now, the outbreak of coronavirus has been seen in many countries of the wor
Shashi Tharoor attacked Nitish Kumar The entire opposition is upset with Bihar Chief Minister Nit
How Kolkata Knight Riders can reach IPL 2022 playoff, know what is the complete maths
Kolkata Knight Riders i.e. KKR had a good start in IPL 2022, but the team kept on losing in the m
2 new cases in Faridabad, total number of patients 211
The district has also seen 2 positive patients in the district on Monday, with this the figure of