Mumbai: Finance Minister Pranab Mukherjee on Sunday expressed concern over high costs and limited reach of banking services, but assured that government was working in collaboration with RBI to address these concerns.

Mukherjee was speaking at Sir Sorabji Pochkhanawala Memorial Lecture 2011 as part of the centenary celebrations of Central Bank of India. The PSU bank was set up by Sir Sorabji Pochkhanawala.

The Finance Minister said that PSU banks were playing a very vital role in India's economic growth and they constitute over 72 per cent of the banking sector assets.

To address the issue of capital constraints faced by the PSU banks, Mukherjee said the government had provided over Rs 20,000 crore towards recapitalisation of public sector banks during 2010-11.

"An additional amount of Rs 6,000 crore is also being provided for 2011-12. This will enable the PSBs to meet the credit requirements of the growing economy," he added.

(Agencies)