NEW DELHI: India will form a panel to devise a strategy for consolidation in the state-run banking sector, Finance Minister Arun Jaitley said on Saturday. More than two dozen state-run banks dominate India’s banking sector with over two-thirds of assets. They also hold close to 85 per cent of the bad loans in the sector. Banks have favoured the idea of consolidation, Jaitley told reporters after a two-day annual brainstorming event of senior officials from banks, the central bank and finance ministry. He also said the government was considering an employee stock option plan for the state-run banks.