FM to meet CMs of northern states, PSU bank chiefs on Nov 16

FM to meet CMs of northern states, PSU bank chiefs on Nov 16 New Delhi: Finance Minister P Chidambaram will meet Chief Ministers of the northern states and heads of public sector banks on Friday to review the credit needs of the region and the progress of central schemes.

The meeting is expected to take up a range of issues, including loans related parameters, especially for agriculture, micro and small enterprises, housing, weaker sections and credit-deposit ratio, official sources said.

Among those who are expected to attend the meeting here on November 16, include Chief Ministers of Delhi, Jammu & Kashmir, Punjab, Haryana, Uttarakhand and Uttar Pradesh, they added.

Besides chairpersons of public sector banks, including SBI and Punjab National Bank, heads of Nabard, Sidbi, IIFCL and Exim Bank will also attend the meeting.

On November 15, the Finance Minister will review the first half financial performance of public sector banks.

The high-profile meeting will be held against the backdrop of the half-yearly review of monetary policy by the Reserve Bank last month, wherein the central bank left key policy rates unchanged on concern of sticky inflation.

However, it reduced cash reserve ratio by 0.25 percent to infuse additional liquidity that injected Rs 17,500 crore into the financial system.

Accordingly, the CRR -- the portion of deposits banks have to park with the RBI -- now stands at 4.25 percent, while the repo rate, at which RBI lends to the system, has been retained at 8 percent.

The reverse repo, at which RBI absorbs excess liquidity through borrowings from banks, remains at 7 percent.

Following the monetary action by RBI on October 30, many banks ruled out rate correction immediately.

PTI