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.
After the crushing defeat in Australia, the Board of Control for Cricket in India (BCCI) has now
PM Modi praised Manmohan Singh: While addressing the farewell ceremony of MPs in Rajya Sabha, PM
Distance between Nepal and India disappears, but China can again spoil the relationship
The neighboring country Nepal, which came under the guise of China, now wants to improve its rela
The weather has changed in many states of the country. On one hand, winter has started increasing
Naib Singh Saini, who became the hero of BJP's victory in Haryana, will once again become the Chi
Along with the national capital Delhi, Uttarakhand, Himachal Pradesh, Uttar Pradesh, Punjab, Hary
Corona is constantly wreaking havoc on the country. What is common and what is taking everyone fa
Malaysia keen to partner with Andhra for various projects
Hyderabad, March 17 (IANS) Malaysia has evinced interest in partnering with Andhra Pradesh for
The Supreme Court stayed the release of Annu Kapoor's film 'Humare Barah'. The film, which was to
Indian team's fast bowler Akash Deep performed brilliantly in the second Test match against Engla
