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Liquidity not a problem, says Finance Minister Nirmala Sitharaman after meeting private banks

The Union minister said that many of the MFIs and micro-finance units which were present during the meeting work in remote parts of India and they said that demand is still high in those areas and they are extending loans.

Liquidity not a problem, says Finance Minister Nirmala Sitharaman after meeting private banks
Pic courtesy: ANI

Union Finance Minister Nirmala Sitharaman on Thursday met the representatives of private sector banks, non-banking financial companies (NBFCs) and Housing finance companies and said that during the meeting no one said that liquidity is a problem for them.

The Union minister said that many of the MFIs and micro-finance units which were present during the meeting work in remote parts of India and they said that demand is still high in those areas and they are extending loans. "Many of the MFIs and micro-finance units which have come here are in deep country, they said that in those areas there is still demand and they are extending loans. All of them clearly voiced a positive growth which is a good encouraging story," Sitharaman said.

Sitharaman said that the appetite for credit is very high in the service sector and it is possible to reach out to them by some tweaking that can be done using their salaries and cash they earn also as a part can be used for their credit assessment. "The service sector is showing very high appetite for credit. There is immense possibility to reach out to them provided of course there are some simpler tweaking that we can do using their salaries and cash they earn also as a part can be used for their credit assessment," noted the BJP leader.

According to the Union Finance Minister, affordable housing scheme took off very well. She added that commercial vehicle related problem are seen as a cyclical problem and situation will improve in that sector in the near future. Sitharaman admitted that there is liquidity problem in wholesale financing but retail financing is not witnessing any such blip.

Commenting on the Punjab & Maharashtra Cooperative Bank Ltd crisis, Sitharaman said that RBI is currently handling this matter the government might intervene only after the emergence of a comprehensive picture. "At this stage, RBI is handling it. Let there a comprehensive picture emerge, post that the govt will have to see what best can be done so that there is some assurance given to people who are affected," she said.