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.
Arvind Kejriwal Press Conference: Along with campaigning in the Delhi Municipal Corporation elect
Sammy, Mooney fined for inappropriate language
Nelson (New Zealand), Feb 16 (IANS) West Indies batsman Darren Sammy and Ireland bowler John Mo
In the last 24 hours, 2 lakh 58 thousand 89 new corona infections have been found in the country.
Indians are increasingly attracted to SUV vehicles with higher, longer, and higher ground clearan
The Indian team's practice session scheduled for June 14 in Florida has been canceled due to rain
Politics has intensified over the violence over the survey of Shahi Jama Masjid in Sambhal, Uttar
Fluctuations are being seen in the cases of corona in the country. The Ministry of Health said th
Sunrisers Hyderabad defeated Rajasthan Royals by 8 wickets on Thursday night in IPL-13. After the
After Rajasthan, now Maharashtra has also started genome sequencing regarding the lumpy virus, bu
India has done wonders again with the SpadeX mission. The 44.5-meter-long Polar Satellite Launch
