Finance Minister Nirmala Sitharaman has expressed hope that the economy will start looking up in the second half of the current financial year as consumption rises and banks increase their lending operations.

She said, in the festive season, the demand will get back and motivate the economy to move at faster rate. 

Talking to reporters after holding meeting with Private Banks and Financial Institutions, Union Finance Minister Nirmala Sitharaman said, there is no issue of liquidity in private sector banks and financial institutions. She said that in fact, there is more liquidity reaching to them. The minister said, in many of the micro-finance units, which are in absolutely densely populated rural areas, there is still demand and they are extending loans. She said, these micro-finance units are witnessing positive growth which is encouraging.

The Minister said, loans for affordable housing scheme have taken off well and bankers have demanded to raise limit to 50 lakh rupees from current 45 lakh rupees. She quoted private bankers as telling her that slump in commercial vehicle sales is cyclical and sentiments are driving lower passenger vehicle sales. 

Finance Secretary Rajeev Kumar said, private sector banks will join outreach programme in 400 districts for potential lending. He said first round of bank outreach programme in 250 districts will be held from 3rd to 7th October.

SOURCE: DD NEWS

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