FM Sitharaman Says No Liquidity Issue Post ‘Tonic-like’ Meet With Banks

New Delhi: Describing her meeting with the bankers as a “tonic”, Finance Minister Nirmala Sitharaman said on Thursday that there is no liquidity related problems being faced by the private sector lenders and the non-banking financial companies (NBFCs).

Addressing the media after meeting the bankers, NBFCs and mutual funds, Sitharaman said that no banks or other financial institutions felt that there is a problem of liquidity in the system.

She said that banks have been invited to participate in the credit outreach programme spanning 400 districts.

The Finance Minister further said that the service sector has shown high appetite for credit. On the ongoing subdued demand in the automobile sector, Sitharaman said that low commercial vehicle demand is a cyclical problem.

She said that all financial institutions are largely optimistic and hope that the upcoming festive season would boost consumption and demand. Sitharaman also said the affordable housing scheme has taken off well.