Mumbai, Aug. 9 (PTI): The controversial issue regarding finance ministry's directions to public sector banks, asking it to get their board's approval before hiking prime lending rates, will be taken up by the Indian Banks’ association at its managing committee meeting on Friday.

“Though this subject is not on the agenda, we will be taking this matter up for an informal discussion,” said H. N. Sinor, chief executive of IBA, the representative body of bankers. Meanwhile, an RBI spokesperson said there were no instructions from the central bank to its nominees stopping them from attending the recent board meetings of Andhra Bank, Bank of Baroda and Oriental Bank of Commerce.

“It is the prerogative of the monetary authorities and the asset-liability management committees (Alcos) of banks to decide on PLRs and deposit rates,” Sinor told reporters, adding “by and large, it has been the Alcos of banks which decide on the issue except in the case of Allahabad Bank, where the matter is decided by its board”.