After the meeting, Mr Rao said a "good beginning" has been made regarding the formation of a common front and the two leaders have come to an "understanding" which will be revealed later.
Ms Banerjee, who was present for the joint address to the media, however, gave a guarded response: "It is not like whatever Mr Rao has said, I completely agree with that. But let him speak. If something happens you will get to know".
On March 4, Ms Gandhi had dialled Mr Rao, following his statement that he was keen to participate in national politics to bring about "qualitative changes" in governance. On the occasion, she had assured him that they could work together.
Today, the 63-year-old Chief Minister said, "Sometimes in politics, situations become such that people have to come together to work... We want a strong front but we are not in a hurry."
Mr Rao underscored that it will be a "federal front". But leaving some doubts about the participation of the Congress, he went on to say, "For the last 71 years, what has been happening in the country? Do you want the same thing to continue? The country needs a miracle".
Since last year, Ms Banerjee has been trying to drum up support for a common front against the BJP. She has been in touch with Shiv Sena chief Uddhav Thackeray, Delhi Chief Minister Arvind Kejriwal and MK Stalin, the leader of opposition in Tamil Nadu.
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She also had conversations with then Congress chief Sonia Gandhi, with whom she had a warm rapport. But her relationship with Rahul Gandhi has been frosty. There has been little interaction between the two leaders. When Mr Gandhi took charge of the party from his mother in December, no public congratulations came from Kolkata, even though Ms Banerjee congratulated Sonia Gandhi after the party's victory in the Rajasthan by-elections last month. Ms Banerjee's party leaders, however, have indicated that the Congress too, has a role to play in a federal front. Senior party leader Derek O'Brien has told NDTV that they are at least six states, including Karnataka, where the Congress is expected to trounce the BJP.