The criteria for grading a bank and considering its eligibility for autonomy are - positive net profits for the last three years, capital adequacy ratio of more than eight per cent, net non-performing asset (NPA) level below nine per cent of net advances and minimum owned funds of Rs 100 crore.

The banks fulfilling the criteria include State Bank of India and three of its associates, Bank of Baroda, Bank of India, Union Bank, Bank of Maharashtra, Canara Bank, Corporation Bank, Dena Bank, Indian Overseas Bank, Oriental Bank of Commerce, PNB and Syndicate Bank. The governmentadopted the policy of providing autonomy to PSBs in order to enable them to perform in a `more competitive manner' the Reserve Bank of India observed in its report on trend and progress of banking in India, 1998-99.

Banks which fall short of the requirements include StateBank of Mysore, State Bank of Indore, State Bank of Travancore, Allahabad Bank, Central Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank and United Bank of India. Out of these, three are certified `sick' banks, while others did not make the grade as their net NPAs were above the floor cut-off level, the report said.