SBI board meets next week to review interest rates

New Delhi, Aug 4: Notwithstanding directive from a senior Finance Ministry official to the banks not to rush for hiking the interest rates, the State Bank of India today said its board would meet next week to review the rates, following increase in the overnight reverse and reverse repo by the Reserve Bank of India.

''We will review the interest rates at our board meeting next week,'' SBI Chairman O P Bhatt told reporters on the sidelines of a function here.

The SBI Chairman was here for signing an agreement with the Railways for setting up automatic teller machines (ATMs) at 681 railway stations across the country.

Significantly, Finance Minister P Chidambaram was present at the function where Mr Bhatt spoke about the revision in the interest rates.

Reports said the Finance Ministry is not happy with the interest rate revision resorted to by the banks following the decision of the Central Bank to scale up repo to seven per cent and reverse repo to six per cent.

Banks have advanced an argument that their cost of funds has increased. Most of the leading banks, have already revised the interest rates.

UNI