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 actress said- Shame, you don't deserve CM's chair; Your worst product of nepotism
The verbal war between Maharashtra Chief Minister Uddhav Thackeray and actress Kangana Ranaut con
World Cup Trophies Winners List 1975 to 2019 History: The countdown of ICC ODI World Cup 2023 has
Pranab writes to Singapore's president
New Delhi, March 24 (IANS) President Pranab Mukherjee wrote to the Singapore president on Tuesd
There has been a decrease in the cases of corona in the country (Covid 19 Cases in India). In the
The situation is getting worse now with the floods in Pakistan. Now there is a danger of infectio
The situation of the corona epidemic in the country is continuously improving. Corona cases have
The ongoing third round of meetings between Union Ministers and farmer leaders in Chandigarh cont
Prime Minister Narendra Modi addressed after the Bhoomi Poojan of Ram temple in Ayodhya. He said
Salaar 2: Shooting of Salaar 2 is going to start soon, know when the film will hit the theatres.
The duo of Pan India superstar Prabhas and director Prashant Neel made a huge splash with the fil
New Zealand PM backs Sikhs on wearing kirpans at cricket matches
Wellington, March 16 (IANS) New Zealand Prime Minister Jo
