The Hindu Business Line : Chidambaram to meet PSB chiefs on Feb 12

The Finance Minister, Mr P. Chidambaram, is to meet Chief Executives of public sector banks here on February 12. This meeting assumes significance as it comes close on the heels of “standstill” credit policy review of the Reserve Bank of India in which policy rates were left unchanged.

Indications are that the Finance Minister might again try and convince bank chairmen to look at reducing interest rates to stimulate both investment and consumption thereby giving a boost to economic growth.

Mr Chidambaram had last met public sector bank chairmen on January 4, when he sent out a signal to the RBI and PSBs that he would prefer the lending and deposit rates to move down by 50 basis points.

The RBI Governor, Dr Y.V. Reddy, in his recent quarterly monetary policy review on January 29 kept policy rates unchanged. He, however, indulged in moral suasion asking the bank chairmen to look at moderation in lending and deposit rates.

More Stories on : Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ICICI Bank’s holding company plan suffers further setback

Sub-prime: An American loan mela at global cost

Forex reserves up $3.4 billion

Rupee ends flat

LIC Ernakulam divn crosses Rs 1,000 cr

GIC’s statutory business share to be reduced to 10%

Chidambaram to meet PSB chiefs on Feb 12

Royal Bank of Canada begins operations in India

SKS Microfinance plans to widen customer base by next fiscal

Karnataka Bank, Tata MF ink pact