Finance Minister Arun Jaitley today said states keen on farm loan waiver must generate funds from their own resources. <br/><br/>Speaking after meeting bank chief executives in New Delhi, Mr Jaitley said that the Reserve Bank of India, RBI is at an advanced stage of preparing a list of bad loans where resolution is required under the country's insolvency and bankruptcy rules. <br/><br/>He said the government has authorised the central bank to direct banks to initiate an insolvency resolution process in the case of a default under provisions of the bankruptcy code. <br/><br/>The finance minister also said the government was actively working on consolidating state-run banks. Mr Jaitley said PSBs made stable operating pofit of 1.5 lakh cr rupees in 2016-17.