He also asked bank employees to make the public sector competitive so that they get higher compensation and other benefits.
"This government is of view that we should create ESOPs for PSB bank staff," he said at a function organised by BMS and NOBW.
The employees, Sinha said, should be working towards making PSBs competitive, raising market sharing and improving profitability.
It will help improving profit to book ratio so that banks can raise capital from market.
On non-performing assets in the banks, the minister said strict measures will be taken by law in case of criminal negligence.