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.
Corporate espionage: Five men sent to police custody
New Delhi, March 17 (IANS) A court here on Tuesday sent three government officials and two other
The Supreme Court on Monday dismissed the petition filed against the verses of the Quran Sharif.
Golden opportunity to buy cheap gold, Sovereign Gold Bond Scheme starts today, know what
There is a worldwide lockdown in the wake of the Corona epidemic. No such investment method is wo
Why Finland wants to go to NATO despite Putin's threat
Important announcements made on Sunday
Sauli Ninisto has confirmed that hi
The Meteorological Department has also given good news to the people watching the path of the mon
IIFA (International Indian Film Academy), the famous award for Hindi cinema, has released the lis
Ori, who is popular on social media, recently visited Mata Vaishno Devi temple, where he was accu
Envoy invites Mamata to Pakistan
Kolkata, March 18 (IANS) Describing his meeting with West Bengal Chief Minister Mamata Banerjee
Islamic law in Afghanistan: Now only Islamic law will work in Afghanistan, Taliban leader ordered
There will be Islamic law once again in Afghanistan. The Taliban has issued an order to fully imp
After finding the ancient temple in Sambhal, now a 152-year-old Banke Bihari ancient temple has b
