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.
Shubman Gill on Mohammed Shami. Indian team's fast bowler Mohammed Shami is wreaking havoc in the
The Indian team can be announced today for the remaining three matches of the ongoing five-match
Congress leader Rahul Gandhi said that in the 1990s, the Congress ignored the interests of Dalits
New Delhi. Congress President Sonia Gandhi has said that the Congress Committee of the state will
Delhi Police and Central Security Forces have made foolproof security arrangements for the foreig
The first match of the home T20 series against Sri Lanka will be played in the stadium without th
Veteran former all-rounder Yuvraj Singh praised Indian captain Rohit Sharma and wants to see the&
Government to continue with Aadhar scheme, SC told
New Delhi, Feb 13 (IANS) The central government Friday cl
PM Modi addressed a public meeting in Surguja, Chhattisgarh today. PM Modi mentioned inherit
Actor Aamir Khan is in the news these days for his upcoming film 'Sitare Zameen Par'. New updates
