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.
'Dangal' director Nitesh Tiwari's mythological film Ramayana is one of the biggest films of this
Former US President Bill Clinton infected with Corona, tweeted information
Former US President Bill Clinton made a tweet on Wednesday. He said that his corona infection rep
Trinamool Congress MP Saugata Roy has termed even a single crime against women in West Bengal as
Opposition MPs included in the Joint Parliamentary Committee (JPC) formed to discuss the Waqf Ame
'We are not afraid of this', Asaduddin Owaisi said on FIR regarding provocative remarks
All India Majlis-e-Ittehadul Muslimeen (AIMIM) chief Asaduddin Owaisi has reacted to the FIR rega
The Pune Municipal Corporation (PMC) has said that the bodies of Covid-19 victims who died at hom
A severe cold wave is expected to grip North India on January 12th. The India Meteorological Depa
The end of Stranger Things is almost here, and Netflix has just given fans a glimpse of what's to
Monsoon has slowed down over Northwest India. According to the Meteorological Department, it is n
Salman Khan's fitness at the age of 59 left fans stunned, saying, "Bhaijaan's charisma..."
Bollywood icon Salman Khan is currently in Qatar for his much-awaited Da-Bangg: The Tour Reloaded
