Vinod Rai, Chairman of the Banks Board Bureau, said on Thursday that recovery is on top of the agenda of public sector banks and at this time they should not be saddled with the consolidation process.

This comment comes even as the government is pushing for consolidation among public sector banks.

The government had constituted the seven-member Bureau to recommend selection of heads of public sector banks and financial institutions and help banks develop strategies and firm up capital-raising plans.

Rai, who was the former Comptroller and Auditor General of India, said recovery in the banking sector and resolution of their stressed assets is on the top of the Banks Board Bureau’s agenda so that the lending process can restart. Consolidation of banks can happen over a period of time, he added.

He was addressing mediapersons on the sidelines of the Lalit Doshi Memorial Lecture.

Rai said banks are currently engaged in the resolution of stressed assets; and the Bureau is encouraging them to resolve these issues soon.

Discussions are taking place in government circles to resolve the stressed assets issue. Thhings will fall into place soon, he said.

On the appointment of chairpersons for some of the smaller PSBs, he said that the process is under way and is getting vetted by central agencies.

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