FM may ask banks to raise credit, lower interest rates
NEW DELHI: With economic growth likely to slow down to 8.7% this fiscal, public sector bank heads are expected to come under pressure from finance minister P Chidambaram when he meets them on Tuesday to raise lending to the manufacturing sector and cut interest rates. “Some public sector banks have reduced interest rates, but other banks should also bring down interest rates considering there is ample liquidity in the system and deposit rates have come down,” official sources said.