
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.
Netflix News: Netflix profile transfer feature is also available in India, know how to use
Netflix Profile Transfer feature: Netflix has recently launched a new feature called 'Profile Tra
Arrest over FB comment: SC to hear plea on Friday
New Delhi, March 19 (IANS) The Supreme Court will on Friday hear an application seeking explana
World Population Day 2022: Today is World Population Day, on this occasion the population fortnig
Companies spend money lavishly to make their brands reach the millions of people who come to take
Terrorists have created a havoc of death in Pahalgam, Jammu, and Kashmir, which is called heaven
There are only 13 days left for the India-Pakistan great match in the Asia Cup. It is being seen
CPI-M seeks Modi's views on Mother Teresa issue
Thiruvananthapuram, Feb 25 (IANS) The Communist Party of
Israel-Hamas War: 27th day of Israel-Hamas war, President Joe Biden calls for humanitarian "pause"
Today is the 27th day of the ongoing war between Israel and Hamas. Till now thousands of people f
Mumbai
Maharashtra cabinet minister and NCP spokesperson Nawab Malik has m
After Operation Sindoor, five alleged spies have been arrested one after the other from Haryana b