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.
Sourav Ganguly Resign News: Jay Shah rubbished the news of Sourav Ganguly's resignation
Sourav Ganguly Resign: Secretary Jay Shah has dismissed the news of Sourav Ganguly resigning as t
Police attack case: Hearing on Arnab Goswami's anticipatory bail plea today
Mumbai's sessions court will hear the anticipatory bail pleas in the case lodged against Arnab Go
What is the oil game and gulf countries' trouble in the Ukraine-Russia war
The Muslim countries of the Gulf have large reserves of the world's oil. These countries have so
The screw has deepened regarding the name of the murderer in the PUBG murder case of Lucknow. The
'India's Look East policy yet to translate into action'
Kolkata, March 10 (IANS) Finding fault in India's Look Ea
Himachal to get more snowfall next week
Shimla, Feb 21 (IANS) The hills of Himachal Pradesh, which saw snow and rain in the past four d
Mobile towers no health threat: Ravi Shankar Prasad
New Delhi, March 13 (IANS) Telecom Minister Ravi Shankar Prasad said on Friday that fears of
Punjab Kings and RCB are to face each other in the final of IPL 2025. Meanwhile, radio jockey tur
Amid Grim Challenges, AAP Rises from the ashes (News Analysis)
New Delhi, Feb 4 (IANS) For a party that was written off after its humiliating rout in the Lok
British pop band 'One Direction' ex-member and English singer Liam Payne has passed away. 31-year
