The Government of India’s (GoI) plan to help public sector banks (PSB) make a fresh start is well intentioned. Replenishing lost capital is necessary, but it comes with several constraints. For one, GoI’s insistence on maintaining a 50 per cent equity in PSBs from raising capital from the market. On the other hand, SEBI’s requirement of GoI reducing its stake in PSBs to 75 per cent or less by August 2017 also constrains further GoI infusion for several weak PSBs. But, providing for bad loans is not enough. Why will raising the required capital—assuming they do, stem future loan losses? Given the changing landscape, GoI must ask itself, will PSBs remain relevant in the banking sector in future?