Finance Minister P Chidambaram today said more steps would be taken to provide liquidity to tide over credit tightening in the aftermath of fresh global financial market turmoil.
“There could be some tightness in credit..we will take steps to provide liquidity,” Chidambaram told reporters here.
Chidambaram said public sector banks have virtually no exposure to the debt of Lehman Brothers, which filed for bankruptcy in the United States this week. “There is no case for any alarm as our banks have strong balance sheet and are well regulated,” he said.
The Reserve Bank of India and Insurance Regulatory and Development Authority have assured the government that there is no reason for apprehension, he added.
