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.
Action on Vadra to be made public: Khattar
Chandigarh, March 15 (IANS) Haryana Chief Minister Manohar Lal Khattar on Sunday said action ta
Former SC judge Vineet Saran appointed Ethics Officer of BCCI, Lokpal
Former Supreme Court judge Vineet Saran has been appointed as the ethics officer and ombudsman of
The Calcutta High Court is hearing a case today related to the controversy surrounding the ED rai
The world economy is going to be worse in the year 2023 than in 2022. Kristalina Georgieva, head
PM Narendra Modi's first state visit to America will decide the future course of relations betwee
Shahid Kapoor's 'Jersey' was set to release late last year, and was about to clash with Ranveer S
Pakistani Taliban threatens to target top leaders of PML-N and PPP
The Tehrik-e-Taliban Pakistan (TTP) on Wednesday threatened to target top leaders of the two main
Jammu Kashmir: Tension after hate speech in Bhaderwah, the administration imposed a curfew
Conspiracies are continuing to create tension in Bhaderwah (Doda) and Kishtwar districts through
Royal Challengers Bangalore's star batsman Virat Kohli is known for his fun-loving style off the
Brahmastra Trailer Release: The trailer of director Ayan Mukerji's most awaited film 'Brahmastra'
