
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 the IPL today, there will be a tough fight between Chennai Super Kings (CSK), captained by Mah
Politics has started on 38 kg heroin recovered from Nawanshahr in Punjab. Aam Aadmi Party (AAP) c
New Delhi: Amidst increasing cases of coronavirus, India's top experts said on Monday that RT-PCR
Two alleged close friends of Pakistan seem to be turning away from it in difficult times. Pakista
120 people from India, who were airlifted from Kabul, reached Delhi on Tuesday. The second batch
The song from the 1966 film 'Mera Saaya' may have brought fame to the city of Bareilly in Uttar P
India won the trophy in the 2011 ODI World Cup by defeating Sri Lanka in the final. This tourname
Meta CEO Mark Zuckerberg spoke to hundreds of company employees on Monday. In the conversation, h
Apple can make AirPods 3 and Apple Music Hi-Fi Tier colonic tomorrow, know details
Rumors about Apple AirPods have been going on for a long time and now Apple can launch it in an e
Joe Root claimed, that Ben Stokes has a plan for the test match against India too
England captain Ben Stokes has given credit for picking the best player and new coach Brendon McC