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.
Kolkata: Farmer leaders agitating against agricultural laws in Delhi held a press conference in W
Imran's container crushed the journalist: he was pushed, the question - is it an accident or murder
A female journalist was crushed to death by a container on Sunday in the Long March of former Pak
The much-awaited elections to the Jammu and Kashmir Assembly have finally been announced, which w
A complete schedule of Mumbai Indians in IPL 2022 like this, know when MI will play against whom
The Board of Control for Cricket in India (BCCI) has announced the full schedule of the 15th seas
Australia will miss a quality spinner against India: Misbah
Adelaide, March 20 (IANS) Pakistan skipper Misbah-ul-Haq said on Friday Australia will miss the
Tension between India and Canada is at its peak. Meanwhile, insulting India has cost the Canadian
Amartya Sen's withdrawal sad day for Nalanda: Sugato Bose
Kolkata, Feb 21 (IANS) Coming out in support of Nobel laureate Amartya Sen, who has decided to
The Delhi Disaster Management Authority has announced several new restrictions on Tuesday amid in
With the completion of the fifth phase of Uttar Pradesh assembly elections 2022, political partie
Punjab Chief Minister Captain Amarinder Singh appeared before a three-member committee formed by
