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.
Taking cognizance of the devotees going to Varanasi and Ayodhya after bathing in Prayagraj Mahaku
Amazing of crypto, this billionaire is giving competition to Ambani and Adani in wealth
In the past few years, many people's fortunes have changed because of cryptocurrencies. Cryptocur
OMG 2 Trailer Twitter Reaction: People liked the trailer of Akshay Kumar's film, CBFC got ripped off
OMG, 2 Trailer Twitter Reaction: Akshay Kumar and Pankaj Tripathi's film Oh My God 2 is very clos
RRB-NTPC: 2 BJP MPs met Railway Minister amidst students' agitation, know what happened
The agitation of the students continues after the controversy over the Railway Recruitment Examin
How far the discovery of corona virus vaccine has reached in India?
New Delhi: In search of the corona vaccine in India, scientists and institutions are doing resear
Voting is going on for the Presidential elections in the Parliament and the Legislative Assembly
Sunil Chhetri-led Indian team played out a 1-1 draw against Kuwait in the SAFF Championship footb
The Congress high command has become active late Sunday night to prevent the MLAs from rebelling
Preparations are being finalized for the consecration of Ram Lalla to be held in Ayodhya on 22 Ja
The divine, grand, and cultural gathering Maha Kumbh, being organized on the land of the holy lan
