The pre-budget meeting between the finance minister, Pranab Mukherjee and the chiefs of state-run banks is scheduled today.

It is expected that the finance minister will review the annual performance of the banks in context of key areas like agriculture, micro, small and medium enterprises, housing and education. Other issues expected to be discussed in the meeting include the interest rates reduction, recapitalization of base of the banks to meet the capital adequacy and stress on industry lending by the private and foreign banks.

In a pre-meeting statement, C A Pereira, chairman, Bank of Maharshtra, said, "There is a scope for cut in interest rates by 25 basis points."

He also added, the bank expects 17-20 percent growth in credit in first half this year that began April 1.

K. Ramakrishnan, chief executive, Indian Banks' Association, today said, Credit growth in the nation is improving as the economy revives. Lenders are also seeking tax concessions for depositors."

Earlier, stating the agenda of the meeting, M D Mallya, Chairman and Managing Director, Bank of Baroda, said, "it would be a routine quarterly meet, with discussions revolving around corporate performances, credit demands and interest rate scenario."