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.
Charges of nepotism on Arjun Tendulkar, Sachin gave trolls a retort
Arjun Tendulkar, son of the world's great batsman Sachin Tendulkar, was bought by Mumbai Indians
Sarfaraz Khan, who hails from Uttar Pradesh and plays domestic cricket for Mumbai, has not played
INS Visakhapatnam: Before Navy Day, there is going to be a big increase in the Indian Navy's comb
How can you claim land after taking compensation: SC asks farmers
New Delhi, Feb 4 (IANS) The Supreme Court Wednesday asked farmers of villages in Noida, Greater
MRF to invest Rs.4,500 crore in capacity expansion
Chennai, March 23 (IANS) Tyre major MRF Ltd plans to expand production capacity at its two plan
If the situation remains terrible in India, then the world will be the same: USIBC President
If the situation in India remains dreadful due to Corona, then the situation of the world will al
Dimapur lynching incident rocks Assam assembly
Guwahati, March 9 (IANS) The fifth day of the budget session of the Assam legislative assembly
Odisha chit fund scam: Charge sheet against Micro Finance Ltd
Bhubaneswar, Feb 12 (IANS) A Special Investigation Team of the CBI Thursday filed a preliminary
Petrol Diesel Price Today: For the first time in Anuppur district bordering Madhya Pradesh, the p
What transformation, from nobody to somebody! (Column: Just Sport)
Where does one put one’s finger on for India staying unbeaten, winning all their five Pool
