Ministers' panel to be set up to oversee state bank consolidation: Jaitley

NEW DELHI (Reuters) - India's central cabinet has approved a mechanism to oversee consolidation in the state-run banking sector, Finance Minister Arun Jaitley said on Wednesday.

Jaitley said a ministerial panel will be set up to supervise merger proposals from banks' boards, adding that the objective of the planned consolidation was to create strong banks.

(Reporting by Rajesh Kumar Singh and Devidutta Tripathy; Editing by Richard Borsuk)