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.
On Public Demand, "Ramayan" Will Air On Doordarshan Again
नई दिल्ली: रामानंद सागर की रामायण, जो
US Marks Record 2,108 Coronavirus Deaths In 24 Hours: Johns Hopkins Data
अमेरिका दुनिया का पहला देश बन गया है
Maharashtra opener Ruturaj Gaikwad has created history in the Vijay Hazar Trophy. He has become t
These days the issue of work shifts is hot in Bollywood corridors. After becoming a mother, Deepi
For some time now, actress Elli Avram's name is being linked with famous YouTuber and actor Ashis
Wheat Export: Western countries only suffer due to sanctions imposed on Russia: President Putin
Russia has said that the way Western countries have imposed illegal sanctions on Russia, due to t
Indian cricket team's star spinner Kuldeep Yadav is set to tie the knot soon. He will tie the kno
In the Chandigarh-Dibrugarh Express derailment on the Gonda-Mankapur rail section, the investigat
America is the most devastated in the world due to the corona virus havoc. US President Donald Tr
Srinivasan hands over World Cup trophy to Australia
Melbourne, March 29 (IANS) Former BCCI president and current ICC chairman N. Srinivasan handed
