Finance Minister Arun Jaitley today termed the level of bad assets in the system as "unacceptable" and promised more autonomy for state-run banks to run business with a "commercial mindset".

"There are unacceptable levels of NPAs (non-performing assets) in some cases and the banks have to be given a sufficient amount of leeway ... to deal with commercial issues with a commercial mindset," Jaitley told reporters on the sidelines of a two-day bankers' retreat here.