
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.
Tendulkar calls for Globalisation of Cricket
Melbourne, Feb 22 (IANS) Indian batting legend Sachin Tendulkar Sunday stressed the need to glo
The Supreme Court said, in a heinous crime having a grave impact on society, FIR cannot be quashe
After the Pahalgam terror attack, the Indian government is in action mode. The Indo-Pak border is
Poacher Trailer Out: The investigative crime thriller series Poacher, directed by Emmy Award winn
The Asia Cup 2025 has seen a lot of drama. The India-Pakistan match in particular sparked controv
Pictures of cheating don't reflect reality: Nitish
Patna, March 20 (IANS) Pictures carried by the media showing mass copying and cheating in schoo
Secrecy around budget should end: Yashwant Sinha
Kolkata, March 3 (IANS) The secrecy surrounding the annual union budget needs to be broken to f
Coronavirus: India readies for Stage 3 transmission as Covid-19 cases cross 800
देश में 800 से अधिक कोरोनोवायरस मामलों
Corona: US, UK, UAE, Saudi Arabia, Singapore, Bhutan are sending help to India
Hospitals in India, facing the second deadly wave of the Corona epidemic, are facing a severe sho
सिल्वर स्क्रीन पर दूसरी बार साथ आए टा