
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.
Antilia Case: Crime Branch demands custody of Sachin Waje and PI Sunil Mane, know the whole matter
Crime Branch Seeks Custody of Sachin Waze: The Crime Branch of Mumbai Police has demanded the cus
Pradeep Sarkar Death: A few days after the death of Satish Kaushik, Bollywood suffered another de
In the Antilia case, the National Investigation Agency (NIA) on Wednesday presented former API Sa
For the past year and a half, the Coronavirus has caused havoc all over the world from China. So
China's Djibouti plan can pose a threat to India. China can deploy aircraft carriers, large warsh
The question of marriage came up during Rahul Gandhi's Bharat Jodo Yatra. The answer was very int
New Delhi. Foreign Minister S. Jaishankar has said that the soldiers who were martyred in the Gal
IPL 2024: Big T20 records destroyed in Hyderabad storm against Mumbai, know interesting statistics
Sunrisers Hyderabad batsmen Travis Head, Abhishek Sharma, and Heinrich Klaasen performed such exp
India helps clear blocked Kathmandu airport
Mumbai, March 5 (IANS) India on Thursday helped clear the runway at Kathmandu's Tribhuvan Inter
Zakir Hussain turns psycho lover in 'Game Paisa Ladki'
Mumbai, Feb 19 (IANS) Actor Zakir Hussain, who is known for his performance in "Johnny Gaddar",