New Delhi, Mar 6 (ANI): Reviewing performance of public sector banks, Finance Minister P Chidambaram said "biggest challenge faced by PSU banks is non-performing assets and their asset qualities". Chidambaram said that credit disbursal to medium- sized industry has declined and was only "satisfactory" in the agricultural sector. Chidambaram also said that a large part of the meeting with banks' chiefs was focused on bad loans and the steps needed for the recovery.