New Delhi: Finance Minister Nirmala Sitharaman on Thursday met chiefs of private sector banks and financial institutions in New Delhi and said she hasn’t heard of liquidity as a problem from anybody till today.
“I have not heard liquidity as a problem from anybody here today,” she said, adding, “If there was a problem of liquidity, it was in the wholesale financing, and not in the retail.”
Talking about the meeting with the private sector banks, Sitharaman said on the whole it was a very tonic-like meeting, where she heard a lot of positive things. “Not one voice said there was a concern, shortfall of demand. None of them voiced liquidity concerns,” she said.
She said that the service sector is showing a very high appetite for credit. “There is an 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,” she added.
Earlier, addressing a press conference, Finance Secretary Rajeev Kumar said that in 400 districts, there would be an outreach program. “The outreach program is essentially to just go to the districts and convey that banks have sufficient liquidity, so as the NBFCs (Non- Banking Financial Company),” he said.
After meeting private sector banks and financial institutions, Kumar said that the festival season is coming. “Therefore, we have all decided to join the outreach program and step up their efforts in various districts,” he added.
Earlier on September 19, Sitharaman had said that state-owned banks (PSBs) can hold public meetings with borrowers to lend loans in 400 districts of the country in an effort to boost the demand ahead of the festive season. She had also told the PSBs not to declare stressed assets of micro, small and medium enterprises (MSMEs) as non-performing till March 31 next year.