Pune - There is a need to rethink strategies for public sector banks in the country and the efforts for their consolidation would not be limited to merger and acquisitions, a senior finance ministry official said on Friday.

Financial Services Secretary Hasmukh 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' here, Adhia also said that asset quality was a problem for many PSU banks, while low credit offtake was also an area of concern.

He said there is a need for a rethink on strategies for public sector banks.

'Gyan Sangm' was scheduled to start later this afternoon and would be addressed by Prime Minister Narendra Modi tomorrow. Others expected at the event include Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan, along with a host of PSU 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 this programme for giving bank accounts to all. PTI