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.
Bushra-Azeem of 3 to 3 feet of each other: CM Yogi and Salman had even pleaded - get me married
The years-old dream of Azim Mansoori, who lived in Kairana, Shamli, Uttar Pradesh, came true on W
Coronavirus lockdown made Indian rich 35% more wealthy, 1.7 million jobs lost every hour in April
Coronavirus has further increased income inequality between India's billionaires and the poor. Th
Delhi Blast: A case has been registered under the Unlawful Activities (Prevention) Act (UAPA) in
Sikh for Justice, a banned organization in India, is going to conduct the 'Khalistan Referendum'
G-20 Summit: PM Narendra Modi met British Prime Minister Rishi Sunak, what happened between the two?
Prime Minister Narendra Modi today held an informal meeting with Britain's new Prime Minister Ris
After breaking the pride of Australia in Perth, the Indian team is ready to take revenge for the
The rupee on Wednesday lost 62 paise to close at 79.15 against the dollar, a day after hitting a
The Data Protection Bill in India is currently in cold storage. In 2018, the European Union imple
Controversy has now arisen in Canada regarding the Swastika, the sacred symbol of Hindus. A bill
Battle of Galwan's heroine confirmed, director tells why Chitrangda was chosen opposite Salman Khan?
There was discussion on the heroine for Salman Khan's upcoming film Battle of Galwan. The name of
