Mumbai: Finance Minister P Chidambaram will review the performance of banks, including credit flow to agricultural and SME sectors, at a meeting with the heads of PSU banks on November 6.

The meeting will mainly discuss credit flow to agriculture and SMEs and the financial performance in the first half of the banks "The finance minister will also discuss action taken on the decisions made in the earlier meeting held with the bankers on July 21, 2006," sources said.

Public sector banks have signed letters of intent with the finance ministry detailing targets, including for business and profits for the financial year. According to the targets set for priority sector, at least 18 per cent of bank credit should go to agriculture sector.

Performance wise, except the State Bank of India, most of the PSU banks have come out with higher net profits in the second quarter of the current fiscal.

The interest rate scenario following the hike in Reserve Bank's short-term lending rate is also likely to figure in the meeting.