Union Finance Minister Arun Jaitley, senior bureaucrats and leading public sector bankers met in Gurugram for a “PSB Manthan” over the weekend. The event saw the government and bankers brainstorm on a variety of issues related to state-owned banks. Some of the key issues were predictable: Resolution of bad loans, improving the credit offtake and focusing on consolidation in the sector. Mr Jaitely reminded the bankers present that the Rs 2.11 lakh crore recapitalisation announced by the government recently would by itself not be enough for state-owned banks to credibly support economic growth.
Most struggling public sector banks (PSBs), which anyway