New Delhi: Afghanistan said it is reviewing the whole gamut of its financial sector policies to weed out the "weaknesses" in its banking system and State Bank group has evinced interest in operating in that country.

"Of course, there are weaknesses in the banking system and we are reviewing the financial sector policies," Finance Minister in the Afghanistan Interim Administration Hedayat Amin Arasala told reporters after a meeting with Finance Minister Yashwant Sinha on May 25.

Asked if any Indian banks had shown interest in opening its branch in war-ravaged Afghanistan, the minister said State Bank group had evinced interest.

"I do not know about specific banks. In general, State Bank group has shown interest," Arasala said.

He said the discussions with Sinha were mainly on bilateral relations and the role of private sector in the reconstruction of Afghanistan.

Arasala said India had already pledged $ 100 million for reconstruction works and some of it had been earmarked for various projects and works.

Official sources said India released $ 30 million and the remaining would be released based on the progress of works in that country, which turned bankrupt during the Taleban regime.

"So far, the progress have been good and we are impressed by their (interim administration's) commitment," sources said.

PTI