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FM to discuss targets at bankers meet
July, 13th 2006

Finance minister P Chidambaram, in his forthcoming quarterly review meeting with bank chairmen on July 21, is likely to discuss issues related to achievements and targets for the current fiscal, relief to farmers in states where suicides have taken place, management of non-performing asset and preparedness for Basel II norms. These apart, bankers are all set to draw the governments attention to the problems that could emerge due to the Reserve Bank of Indias decision to scrap interest on cash reserve ratio.

The issue of outsourcing banking operations would also come up in the next meeting. Bank chairmen are expected to submit their statement of intent on annual goals.
Most banks have indicated that their targets for the current fiscal will be lower than the previous fiscal. The government would be willing to consider their lower projections but they still need to be challenging enough, an official said.

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