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FM meets PSU bank heads on liquidity, interest rates

Source: PTI
November 04, 2008 12:40 IST
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Finance Minister P Chidambaram held a meeting on Wednesday with top executives of PSU banks to review the liquidity situation and the performance of the lenders.

Chidambaram, who had said on November 1 that he would ask state-owned banks to consider lowering interest rates, held wide-ranging consultations with the bank executives. These related to the impact of the global meltdown on the Indian banking sector and various steps that could be undertaken to overcome the challenge.

The meeting comes a day after the captains of Indian industry met Prime Minister Manmohan Singh and demanded steps for enhancing liquidity and to create an environment conducive to lowering interest rates.

SBI Chairman O P Bhatt, PNB chief K C Chakrabarty, Bank of Baroda Chairman M D Mallya, Canara Bank head A C Mahajan and UCO Bank CMD S K Goel were among those who attended the meeting, where top officials from the finance ministry and the RBI were also present.

The prime minister said on November 3 that the government was behind the banking system and that no one should fear about the safety of bank deposits in the wake of the global financial crisis and its resultant impact on India.

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