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.
In IPL Phase-2, the second match of the day was played between Royal Challengers Bangalore (RCB)
Jaishankar in Islamabad, Holds Talks
Islamabad, March 3 (IANS) Indian Foreign Secretary S. Jai
IRCTC will be the first agency in the country to connect two countries through tourism train unde
There has been a war of words between the BJP and Congress over the election results of the north
Covid has made a deep impact on the economy of the whole world, but during this time the health o
Whatever was feared in Afghanistan, it happened. The Taliban also captured the capital, Kabul. Th
The film industry was shaken on Wednesday when the news of Malaika Arora's father Anil Kuldeep Me
Turkiye Earthquake: Earthquake tremors again in Turkey, a magnitude 5.5 on the Richter scale
Strong earthquake tremors were felt once again in Turkey on Saturday. Let us tell you that an ear
Sovereign Rating Depends on Productive Growth: Moody's
Mumbai, Feb 28 (IANS) The sovereign credit rating implications of the first full budget of the
Every cricketer has his bad times, which all players accept. But what can we say about
