Last week, government said it would infuse Rs 6,990 crore into nine of its 27 banks including SBI, BoB, and PNB.

The government also announced new parameters to determine capital allocation, focusing on efficiency and earnings metrics, including returns on equity and assets.     

To be eligible for fresh capital, a state-run bank's Return on Assets (RoA) must be better than the average for all public sector lenders for the past three years, while the Return on Equity (RoE) must be better than the average for the past one year.

"I would like to clarify that we have better RoE from many other banks which have got the capital now. They have taken average RoA for the last three years and that is where we have got left out," Bank of India Chairperson and Managing Director Vijaylaxmi Iyer told reporters while announcing Q3 numbers wherein it reported a 70.4 percent dip in net profit on rising NPAs and provisions.

She said the government has allowed SBI, BoB and Bank of India to be internationally active, as one third of their operations are from overseas.

"You all would appreciate that the spread in the international operations is always much lower which depresses the RoA. So, banks like us should have been treated differently. We cannot be classified along with others when you measure the RoA," Iyer claimed.

The bank has made a representation to the department of financial services on the issue, Iyer said.     

She said since the government has changed the methodology to infuse capital only recently and that too without any notice, it should have given more time to her bank to comply with the new norms.

"Having changed the metrics, they could have given us a transition period and a different treatment to a bank like us," she said, adding "this isn't the end. I do understand that there may be a second tranche and we may stand a chance."

In the current round of equity infusion SBI would get Rs 2,970 crore, BoB Rs 1,260 crore, PNB would get Rs 870 crore and Canara Bank Rs 570 crore. Iyer said though the bank had initially requested Rs 1500 crore equity it may get only Rs 800 crore from the government.

The Mumbai-based bank is also in process of raising Rs 642 crore through preferential issue of shares.

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