Finance minister P Chidambaram will likely push public sector banks to lend more to boost economic activity and growth, at a meeting with heads of the banks on March 18, a government official revealed.

Mr. Chidambaram will hold a meeting with the heads of public sector lenders on March 18, a day ahead of the Reserve bank of India's mid-review policy on March 19.

The official said that the government wanted the cash-rich public sector undertaking and banks to start investing funds to help boost economic activity.

Speaking on the topic, the official said, "The banks have been encouraged to start lending to companies so that the investment cycle starts and economic activity accelerates."

According to official, the public sector banks have really started looking to invest in good projects.

The agenda of the finance minister's meeting with the heads of public sector banks includes direct deteriorating asset quality, benefit transfer and credit growth.

The country's economic growth rate has slipped drastically over the past few years. Economists have blamed the decline in corporate and infrastructure investments as one of the biggest reasons for drastic economic slowdown.