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.
There is an atmosphere of tension between India and Pakistan at this time. In Operation Sindoor o
The number of corona patients in the country has crossed 43 lakhs. In the last 24 hours, 89 thous
The suffocating air in Delhi-NCR has been further aggravated by fog and cold weather. Dense fog a
Union Budget 2022: Home Minister Amit Shah's first reaction on the budget, know what he said
Home Minister Amit Shah has given his first reaction on the budget 2022. Amit Shah has called it
The World Trade Organization (WTO) meeting was held in Geneva. At this conference, America and Eu
After India's defeat in the second test match against South Africa, now the big news is coming ou
The weather in North India is about to take a turn once again. Due to snowfall in the mountains,
Recently YouTuber Kusha Kapila and her husband Zorawar Ahluwalia announced their divorce. Ever si
After Rajat Patidar, Sarfaraz Khan and Dhruv Chand Jurail, another youngster may get the opportun
The rains of the second round of monsoon have gained momentum in many states of the country. Whil
