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.
The war between Russia and Ukraine continues even after 4 months. Ukraine has claimed that the Ru
Ujjain Rape Case: A case of embarrassing humanity has come to light in the city of Baba Mahakal,
Russia flew spy satellite, America said in anger – will get the answer
The US has condemned Russia for a "dangerous and irresponsible" missile test, saying the test put
Defense ties between US and India very important, each other's allies: Pentagon
India-US Defense Relationship: Pentagon's big statement has come out regarding the defense relati
South actor Naga Chaitanya has tied the knot. He married actress Shobhita Dhulipala on December 4
NFHS 5: Has there really been an increase in the number of women compared to men in India?
When the results of the National Family Health Survey (5), the most comprehensive survey conducte
The team of CBI and X have left the actor's Bandra house to investigate the death of Sushant Sing
Kejriwal wanted to give free flats to Rohingya, Center retaliated by showing the letter
The round of accusations and counter-accusations between Delhi and the central government on the
New Delhi, Feb 24 (IANS) It will be a partly cloudy Tuesday here with the possibility of light
Financial crisis deepens, government will take loan
The financial situation of Haryana is deteriorating due to the ongoing lockdown on Covid-19. Apar
