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.
Prime Minister Modi, citing his visit to South India during the fast observed before the consecra
Shiv Sena (Uddhav Balasaheb Thackeray) MP Priyanka Chaturvedi has demanded a ban on the live tele
Violent demonstrations in many places in Bangladesh after the attack on Hindu temples
Violent clashes broke out between protesters and police in the capital Dhaka and Noakhali on Frid
In 2020, Indian expatriates were sending money home in record amounts. In that year, migrants sen
Mamata denies assault on PSU officials
Kolkata, Feb 19 (IANS) West Bengal Chief Minister Mamata Banerjee Thursday dismissed reports th
Double blow to Pakistan, Turkey also trapped; who will save now
The Financial Action Task Force (FATF) has decided to keep Pakistan on the gray list. Along with
The Rs 358 crore sponsorship deal between the Board of Control for Cricket in India (BCCI) and fa
There is news about the health of Aftab Amin Poonawala, accused in the Shraddha Walker murder cas
PM Modi launches RBI's Retail Direct Scheme, there will be an Ombudsman Portal for complaints
PM Narendra Modi on Friday launched two schemes launched under the Customer-Centric Initiative of
Afghanistan's caretaker PM, in his first address, accused Ghani of embezzlement, pleaded for help
In his first public address on Saturday, Afghanistan's caretaker Prime Minister Muhammad Hassan A
