Mumbai:
Finance Minister P Chidambaram will review the performance
of banks, including credit flow to agricultural and SME
sectors, at a meeting with the heads of PSU banks on November
6.
The
meeting will mainly discuss credit flow to agriculture
and SMEs and the financial performance in the first half
of the banks "The finance minister will also discuss
action taken on the decisions made in the earlier meeting
held with the bankers on July 21, 2006," sources
said.
Public
sector banks have signed letters of intent with the finance
ministry detailing targets, including for business and
profits for the financial year. According to the targets
set for priority sector, at least 18 per cent of bank
credit should go to agriculture sector.
Performance
wise, except the State Bank of India, most of the PSU
banks have come out with higher net profits in the second
quarter of the current fiscal.
The
interest rate scenario following the hike in Reserve Bank's
short-term lending rate is also likely to figure in the
meeting.
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