FM meets PSU bank heads to review liquidity, interest rates

Finance Minister P Chidambaram today held a meeting with top executives of PSU banks to review liquidity situation and performance of the lenders.     

Chidambaram, who had said on Sunday that he would ask the state-owned banks to consider lowering interest rates, held wide-ranging consultations with the bank executives relating to impact of the global meltdown on the Indian banking sector and consider various steps 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 the liquidity and steps to create environment conducive for lowering of 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, UCO Bank CMD S K Goel were among those who attended the meeting, where top officials of the Finance Ministry and RBI were also present.     

Prime Minister had said that government was behind the banking system and that no one should fear about the safety of bank deposits in the wake of global financial crisis and its resultant impact on India.