PSU Banks in India are facing low Capital Adequacy Ratio under Basel-II. Most of these woos have come from high lending exposures to large corporates, mostly at base rate. Even the basic norms for filing regular accounts are waived in some cases. We don't find logic in over-exposure at base rate, as these advances require higher priority sector exposure too besides hitting the Capital Adequacy Ratio. It is high time, Banks do cost-benefit analysis for these advances, considering the CRAR and priority sector exposure requirement. Once, these advances are done away with, Both CRAR and credit-deposit ratio will improve. Moreover, with lesser options, the borrowers are more likely to fall in line to abide by normal banking norms.