Hoping that the Non-performing asset (NPA) situation will improve in the coming quarters, Finance Minister Arun Jaitley today said an all-out effort has been launched to correct the current "unacceptable" level of bad loans in the PSU banks. He said, the banks reached this level partly because of indiscretion, partly because of inaction, partly because of challenges in some sectors of the economy.<br/><br/>Jaitley was inaugurating 109 new branches and 109 Bunch Note Acceptors (BNA) on the Indian Bank Foundation Day in New Delhi. The Finance Minister said the government's plan to infuse capital into the PSU banks over the next four years will "infuse lot of financial strength" in these banks to deal with the bad loan problems.<br/><br/>Gross Non Performing Assets (NPAs) of public sector unit (PSU) banks at the end of March quarter stood at 5.20 per cent compared with 5.63 per cent in December.<br/><br/>The Finance Minister said that the proposed payments banks will change banking habits in the country as more and more people entering formal banking network would act as a "game-changer"<br/>for the economy. RBI has given nod to 11 entities to launch such niche banks within next 18 months.<br/><br/>He said, banking is going to be more of technology-enabled and effort is now on to expand banking to every un-banked corners of the society. Jaitley said banking network is expanding hugely and the health of banks reflects on the challenges for the economy.