On July 7, a day after the Union Budget, the Reserve Bank of India (RBI) will meet with the CEOs of large banks to discuss various issues about credit policy and interest rates.

Interest rate and poor loan demands could be discoursed with Mr. D Subbarao, Governor of RBI. The 3 Deputy Governors will also be there in the meeting. In the said meeting, the budget propositions could also be computed.

The CEO of State owned Bank said, "Given the ample liquidity in the system and low credit off take, it's improbable that bankers would ask a cut in key interest rates."

After mid-September 2008, the RBI has reduced the repo rate by 400 basis points and the reverse repo rate by 250 basis points. The CRR was also cut by 400 basis points. Since mid-September, actual/potential release of primary liquidity totaled to Rs 4,22,793 crore.

In the past 2 months, 2 meetings have been attended by bankers with trade bodies. The trade bodies had recommended banks to reduce the interest rates for exporters in the previous meeting. Indian exporters complained that as compared to their competitors, they have to pay much higher interest rates.

Mr. D Subbarao told, "There were signals of demand resurgence in sectors such as steel, cement and coal."