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Economy to bounce back in second half of the festival season: FM

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Finance Minister Nirmala Sitharaman on Thursday expressed confidence that the economy will look up in the second half of this fiscal and she said,there’s no liquidity concern among private banks, NBFCs.

 

Speaking on the current scenario, consumption is happening and demand will come back, After a meeting with nearly 20 honchos of private sector banks, NBFCs, housing finance companies (HFCs) and small finance banks (SFBs) here, she said: “On the whole, it was a very tonic-like meeting where I heard good things, positive things. None of those who were present today expressed any concern over liquidity.”

 

NBFCs and HFCs are ready to support public sector banks’ (PSBs) liquidity outreach programme across 400 districts in two phases beginning October 3, she added.

 

The FM further said demand is expected to improve in the festival season though buying is now low due to the ongoing pitrupaksh period.

 

SFBs and non deposit-taking NBFCs expressed concern over RBI curbs on their participation in co-origination of loans with PSBs. Asked if steps will be taken to address this concern, she did not commit anything except acknowledging that such a concern was expressed.

 

The meeting saw participation from eight private sector banks, five NBFCs, five HFCs, six SFBs and four MFIs.

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