Gyan Sangam: Need to rethink strategy for PSU banks, says FinMin official

There is a need to rethink strategies for public sector (or PSU) banks in the country and the efforts for their consolidation would not be limited to merger and acquisitions, Financial Services Secretary Hasmukh Adhia said on Friday.

Adhia also said that it was absolutely essential to implement banking reforms and making the banks stronger was necessary for the economic growth.

Speaking to reporters at a pre-event briefing on two-day financial sector retreat 'Gyan Sangam ' in Pune, the finance ministry official also said that asset quality was a problem for many state-run banks, while low credit offtake was also an area of concern.

Adhia said there was a need for a rethink strategies for public sector banks.

'Gyan Sangm' is scheduled to start later on Friday afternoon and would be addressed by Prime Minister Narendra Modi on Saturday.

Others expected at the event include Finance Minister Arun Jaitley and Reserve Bank of India (RBI) Governor Raghuram Rajan, along with a host of state-owned bank chiefs and top executives of insurance companies.

Among other issues, Prime Minister's Jan Dhan Yojana would also be discussed at the event and Adhia said that 10.3 crore accounts have been opened so far under the massive financial inclusion programme aimed at giving bank accounts to all.