They need to be. Their exposure is almost 1 lakh crore. Half of that may be on account of loans to the winners of the 3G auction. So one can argue that the auction only fetched half of what is claimed, at present. And PSU banks - implicitly backed by the government - funded a large part of the 3G auction amount as the report points out. SBI itself has an exposure of Rs 23,000 crore. What if the loans go bad as some are already?
No wonder one never hears calls for privatisation of PSU banks. They are sitting ducks for industry to get loans from.