No liquidity crisis: FM after 'tonic-like' meeting with private banks

Says sentiment driving lower passenger vehicle sales, says Finance Minister Nirmala Sitharaman

Demand is back in the system, Finance Minister Nirmala Sitharaman said on Thursday, expressing hope that it, along with increased lending, would perk up the economy in the second half of the current financial year. 

The finance minister’s statement came amid growing concerns about a slowing economy. The economic growth plunged to an over six-year low of 5 per cent in the first quarter. 

“Things are looking forward and upward from here, and we hope to take this message across,” Sitharaman said after holding a meeting with top executives of private sector banks, housing finance companies, and micro finance institutions