The banking sector problems cannot be cured with just one budget announcement or one dose of bank recapitalisation but they require overhauling of the current structure of the banking system dominated by state-run banks based on a solid roadmap, according to participants at Firstpost’s Banking and Budget panel discussion on Wednesday. The speakers included Siddharth Purohit, banking analyst, Jayanta Sinha, ex-SBI executive, Madan Sabnavis, chief economist of CARE and Firstpost financial editor Dinesh Unnikrishnan. Vivek Kaul, author and commentator moderated the discussion. [caption id=“attachment_4317815” align=“alignleft” width=“380”] Customers wait at counters in a bank in Chandigarh. Reuters.[/caption] According to Sabnavis, the banking sector needs a series of reforms aimed at bring more efficiency in the way banking institutions operate. Sinha stressed that public sector lenders have played a critical role in spreading banking services in the economy but they need to be reformed to keep pace with the changing industry trends. Purohit said a roadmap for bad resolution remains important and the recently announced bank recapitalisation alone cannot be the panacea for all banking sector ills. However, it can help to revive the mood of the market with respect to these institutions, Purohit added. According to Unnikrishnan, privatisation of state-run banks is key to bring in fundamental changes in the sector in the long-term. The next in the series will be a panel discussion on Budget and Economy on 29 January. Click here for full coverage of Union Budget 2018.