
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.
Anushka Sharma-Virat Kohli Marriage Anniversary Celebration: Anushka Sharma and Virat Kohli are t
There is a continuous decline in the cases of corona in the country. In the last 24 hours, 3,325
Kolkata. Home Minister Amit Shah is on a tour of West Bengal today. Amidst the Corona epidemic, a
3.32 lakh people in the world are Killed by corona, more than 5 million infected
Beijing / Geneva / New Delhi. The global epidemic corona virus (Covid 19) has been steadily incre
JEE Advanced 2022: JEE Advanced 2022 question papers released, answer key will come on this date
Indian Institute of Technology Bombay/IIT Bombay has released the question paper for JEE Advanced
On Wednesday, due to the opposing stance of four opposition-ruled states on the question of givin
Land acquisition amendment bill introduced in LS
New Delhi, Feb 24 (IANS) The government Tuesday introduced the land acquisition amendment bill i
The Indian batsmen, who flopped on the fast and bouncy pitch of Gakebarha in the second T20, will
The International Monetary Fund raised concerns about the global economy just before the G-20 mee
Former Prime Minister of Pakistan Imran Khan can be arrested at any time now. The Islamabad Sessi