Govt to infuse Rs 6,990 cr in state-owned banks

New Delhi, Feb 7 :� Government will infuse Rs 6,990 crorein nine Public Sector Banks (PSBs) and will reward efficientbanks with extra capital to strengthen their positionfurther."Out of the current year�s budget, the Government ofIndia has decided to infuse Rs 6,990 crore in nine PSBs forwhich orders are being issued," Finance Ministry said in astatement.This year, the government has adopted a new criteria inwhich the banks which are more efficient would only berewarded with extra capital for their equity so that theycan further strengthen their position, stated the release.Out of the total allocation, country�s largest lenderState Bank of India will be given Rs 2,970 crore followed byBank of Baroda Rs 1,260 and Punjab National Bank Rs 870crore.The methodology for arriving the amount to be infused inthese 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 arrivedat and all those who were above the average have beenconsidered.The second parameter that has been used is return onequity (ROE) for these banks for the last financial year.UNI ABI ASH AE AN1524