
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.
Faizan Khan, who was arrested from Raipur in the case of threatening to kill Bollywood actor Shah
Gold demand for jewelry is at an all-time low
Gold demand in the country declined by 70 percent during the April-June quarter. This is the firs
Delhi Traffic Advisory on Chhath Puja: Large crowds are expected at various ghats across Delhi du
A joint team of the State Archaeological Directorate and Archaeological Survey of India (ASI) on
The trailer of late actor Irrfan Khan's film 'The Song of Scorpion' has been released. Now this f
The news of the affair between Indian cricket star Hardik Pandya and British singer Jasmine Walia
BJP threatening Mukul, Subhendu of arrest in Saradha scam: Mamata
Kolkata, Jan 31 (IANS) Accusing the BJP of threatening her party leaders Mukul Roy and Subhendu
'Fit is my Right': Online Lingerie Store to help Women
Mumbai, Feb 5 (IANS) With an overwhelming majority of Indian women simply unaware of their corr
Microsoft CEO Row: Srinivas Claims Bill Gates Trapped the World in 9-to-5 Jobs to Sell Software
A bold statement by Perplexity AI CEO Aravind Srinivas has reignited debate over the origins of m
Draupadi Murmu will be the next President of the country. It was only after three rounds of count