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 central government has warned all states about the second wave of Corona. The Center said on
Bollywood actor Sunny Deol is currently in the limelight for his upcoming film 'Jaat'. This film
New Delhi, Online Desk. There is also a debate about the corona epidemic in the country whether t
The process of decreasing the effect of Corona in the country continues. On Thursday, 1 lakh 31 t
The political stir has increased after the resignation of two ministers (Manish Sisodia and Satye
The dispute that broke out between Russia and Ukraine, where Crimea has been formed on one side a
IND vs SA: 'One of the 10 best innings in Indian Test history', Gavaskar praised KL Rahul's century
Lokesh Rahul's brilliant century in the first Test match against South Africa was praised by the
Arun Jaitley to meet PSU bank's chiefs on Wednesday
New Delhi, March 10 (IANS) Finance Minister Arun Jaitley will meet the heads of public sector b
The number of new corona patients in the country is fluctuating daily. On Saturday, 20,408 new co
Finance Minister Nirmala Sitharaman presented the Union Budget today. Responding to this, Prime M
