No liquidity crisis, says FM Sitharaman after bankers meeting

Finance Minister Nirmala Sitharaman continues her interactions with lenders, seeking to improve liquidity in financial system.

Things are looking up for the economy and demand will pick up soon, said Finance Minister Nirmala Sitharaman on Thursday after meeting leaders of private banks and financial institutions.

The "sum and substance of what I heard was that there is no liquidity crisis," she said in Delhi.

The government has been nudging banks to lend, aiming to end a liquidity crunch which has been hurting business and consumer demand.

Sitharaman had on September 19 announced state-owned banks (PSBs) will hold public meetings with borrowers for distributing loans in 400 districts of the country to boost demand ahead of the festive season.

The government also told PSBs not to declare stressed assets of micro, small and medium enterprises (MSMEs) as non-performing till March 31 next year.

8:07 PM

Commercial vehicle sales

Slump in commercial vehicle sales is cyclical; sentiments driving lower passenger vehicle sales, FM Sitharaman quotes private bank as telling her, reports news agency PTI

8:06 PM

Housing scheme

Loans for affordable housing scheme has taken off well; demand from bankers to raise limit to Rs 50 lakh from current Rs 45 lakh: FM Sitharaman

 

8:04 PM

'No liquidity crisis'

Sum and substance of what I heard was that there is no liquidity crisis, says FM Sitharaman after meeting private banks

8:02 PM

Service sector

Service sector showing appetite for credit: FM Sitharaman after meeting with private bankers

7:58 PM

'Positive growth'

Heard of positive growth, says Sitharaman about small lenders

7:56 PM

Liquidity not a problem: FM Sitharaman

I have not heard of liquidity as a problem from anybody, says FM Sitharaman after meeting with private lenders.

6:13 PM

Meetings with bankers

Sitharaman met with heads of public sector banks on Septmeber 19 to review liquidity or money flow in the system and transmission of lower benchmark interest rates to borrowers.

 

6:11 PM

Grappling with six-year low GDP growth and a 45-year high unemployment rate, the government is looking to boost credit that will bring liquidity for businesses and create jobs.