Haven’t heard of liquidity crunch in Banks: Nirmala Sitharaman

Private sector banks and other financial institutions have not complaint about existence of any liquidity crunch and enough demand for loans exists, finance minister Nirmala Sitharaman said on Thursday.

During the meet yesterday, she asserted that the economy will revive in second half of the financial year as consumption inflates and banks raise their lending. 

“On the whole, it was a very tonic-like meeting where I have heard good things, positive things. Not one voice said there’s a concern. None of them voiced liquidity concerns,” Sitharaman said, adding that “the message” was consumption is happening. “I have not heard liquidity as a problem from anybody. That is one thing that I want to take as a message,” said FM during the press conference after the  meeting with private sector banks, financial institutions and micro finance entities.

The bankers have reported positive chances for a string credit appetite and the demand will pick up to motivate economy, she added. 

Further, the demand fir loans on the rural areas is still strong, as conveyed by The Microfinance institutions who attended the meet, said Sitharaman.

“Near unanimity prevails that in those areas, there is still demand, there is still activity going on.”

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