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 Delhi government is working on a mission mode these days due to the third wave that has come
Congress leader Rahul Gandhi on Friday inaugurated the party's digital 'Jan Jagran Abhiyan'. Duri
BCCI May Modify Central Contracts for Jasprit Bumrah; The Matter Involves ₹2 Crore.
The Board of Control for Cricket in India (BCCI) has decided to discontinue the 'A+' category in
Even though China presents itself as a big power in the world, its internal condition is very poo
The second season of the Women's Premier League (WPL) will start on Friday. On the lines of IPL,
In recent days, affected IndiGo flights have caused inconvenience to millions of people. The Indi
GT vs KKR: Enjoy the Gujarat vs KKR match without spending a single rupee; Know the complete details
Gujarat Titans (GT) will face Kolkata Knight Riders (KKR) in the 63rd match of IPL 2024. An
Corona virus can also infect through the air, strong evidence found in the study of Lancet magazine
Colorado, ANI. A study published in the prestigious medical journal Lancet on Friday said that th
After the uproar during the survey of Shahi Jama Masjid on 24 November in Sambhal district of Utt
Kerala Tourism wins national award for website content
New Delhi/Thiruvananthapuram, March 25 (IANS) Kerala Tourism was on Wednesday conferred the nat
