Chidambaram summons chiefs of PSU banks

The government, which owns majority stake in 28 banks, has summoned chiefs of public sector banks on May 1 -- two days after the annual credit policy -- to ostensibly review their financial performance in 2007-08, though most of them would not have finalised their annual accounts by then.

Sources said banks have been informed about Finance Minister P Chidambaram's meeting but a detailed agenda has not been circulated yet.

The move is being seen in banking circles as a message from the Centre to ensure that the public sector, which accounts for nearly 70 per cent of the business, does not take interest rate cues from the central bank alone.

Bankers are waiting for signals from the RBI's monetary policy, scheduled for April 29, before deciding on an interest rate hike in the wake of wholesale price index-based inflation touching a 40-month high of 7.41 per cent.