
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.
Saudi Arabia accepts its role between India and Pakistan
Saudi Arabia's Deputy Foreign Minister Adel al-Zubair has admitted that Saudi Arabia is trying to
Popular comedian Jaswinder Bhalla passed away on August 22. He was admitted to Fortis Hospital, w
The budget segment's strong smartphone is the new Nokia C3, a direct competition from this phone
In the budget segment, Nokia (HMD Global) has launched its new smartphone Nokia C3 in India. At t
OPPO's great camera phone launched, know the best 5 features of F21 Pro
Oppo F21 Pro On Amazon: If you plan to buy a new phone, then definitely check the deal of OPPO F2
The language dispute in Tamil Nadu is deepening. Now BJP's Tamil Nadu unit president K Annamalai
Five envoys present credentials to president
New Delhi, March 18 (IANS) Envoys of five countries including Maldives and Italy presented thei
Even after a year of Taliban rule in Afghanistan, effective steps have not been taken for the edu
RBI Governor Shaktikanta Das said that to reduce inflation, the central banks of the world have i
Samsung Galaxy M53 launch date in India final, know when and with which features it will be launched
Samsung recently took the wraps off its new Galaxy M53 in the global market and now it is prepari
Aam Aadmi Party (AAP) leader and MP Raghav Chadha announced his resignation from the party on Fri