PC to meet bankers on June 3

Finance Minister P Chidambaram will meet bankers on June 3 to review operations of banks, firm up next generation banking reforms and set targets for credit flow to sustain 7% growth in economy.

The meeting on Friday is slated to be attended by senior officials of Finance Ministry, Reserve Bank, Indian Banks Association and all chairman of PSU banks, a ministry official told.

Chidambaram is likely to set farm credit target at Rs 1,41,000 crore for 2005-06 after banks over-shot last fiscal's target and disbursed more than Rs 1,15,000 crore loans to farmers to ensure 3% growth in agriculture, sources said today.

Bankers would be urged to step up credit in other key sectors like infrastructure, manufacturing and export as well to ensure the overall growth in GDP stays above 7%.

In the last 12 months, government has given more autonomy to PSU banks and encouraged them to tap capital market to raise more resources to sustain their growth in business.

Indian Banks Association will present an overview of the banking operations during the last fiscal and propose steps to further strengthen PSU banks in the wake of Basel-II norms coming into effect from 2007.