New Delhi: Indian finance ministry has said that it does not have any plans to charge a premium on the equity that a host of banks plan to return. "The government does not propose to charge a premium on the capital being returned," says an official spokesperson of the ministry of finance.

Among the banks that have recently announced plans to return equities to the government are Punjab National Bank (PNB), Oriental Bank of Commerce (OBC), Bank of Baroda (BoB), Indian Overseas Bank (IOB) and Andhra Bank.

While PNB has decided to return Rs 130 crore, OBC plans to return Rs 50 crore, Bank of Baroda Rs 90 crore, IOB Rs 50 crore-75 crore and Andhra Bank Rs 100 crore in two tranches of Rs 50 crore each. All the above banks are listed on the stock markets.

The banks have decided to return the capital to the government to improve their earnings per share, thereby improving their valuations.