Chairman and Managing Director of the second largest public sector lender of the country, Punjab National Bank, K R Kamath has said that PSBs are very much open to the entry of new entities in the banking space.

"We are not afraid (of further opening of the banking sector)...best in the public sector banks is yet to come out," he said.

He said that public sector banks have started doing better since 1993 when RBI introduced the private sector lenders to the banking space.

He said, "PSU banks will further reform themselves to meet the growing aspirations of the customers who "want more (services) for less (charges)".

Talking about the new entrants, Kamath added, "will enhance competition and will benefit the customers."

India presently has 27 public sector banks, seven new private sector banks, 15 old private sector banks, 31 foreign banks, 86 regional rural banks, 4 local area banks, 1721 urban cooperative banks, 31 state cooperative banks, and 371 district central co-operative banks.