RBI deputy governor KC Chakrabarty said that the risk assessment capability of public sector banks (PSBs) is lower than that of private sector banks and asked PSBs to develop the habit of saying “no” to unviable proposals. “Knowingly you give money to some unviable projects. That is a governance issue... In many cases, our public sector bankers have forgotten to say ‘no’, except to small borrowers. A banker’s first characteristic should be to say no.” He added that “governance issues” in the functioning of PSBs are leading to poor performance.