Nirmala Sitharaman press conference highlights: Liquidity not a problem for banks

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FM Sitharaman on #PMCBank crisis: At this stage, RBI is handling it. Let there a comprehensive picture emerge, post that the govt will have to see what best can be done so that there is some assurance given to people who are affected. pic.twitter.com/CpBD0M51Ps

— ANI (@ANI) September 26, 2019

FM Nirmala Sitharaman says not heard of any concerns about liquidity from bankers, NBFCs

There are no complaints of liquidity shortage in the system and near unanimity that most microfinance institutions in rural India are seeing strong credit demand, said Finance Minister Nirmala Sitharaman, in a media briefing after her meeting with private bankers, MFIs and non-banking finance companies (NBFCs) on September 26.... Read More

When the government is going out there, it is our dharma to lend actively and prudently, said Uday Kotak, vice chairman and managing director of Kotak Mahindra Bank.

Small ticket loans growing at over 25 percent per year, said V Vaidyanathan, CEO of IDFC First Bank. We expect demand for large ticket loans to pick up as sentiment revives, he said.

The message I have got is consumption is increasing, and that by the festive season, demand will improve andit will motivate our economy to move in a fast rate. Things will look up, and pep up the other sectors: FM Sitharaman.

Nothing stopping us from linking deposit rates to external benchmark. I think private investment, both domestic and abroad, should pick up with the reduction in cost of capital, and banks will look to underwrite the appropriate projects, said Uday Kotak.

We feel that this is a huge opportunity to use this outreach programme to make use of the surplus liquidity we have, said Uday Kotak.

I have received a request to raise the affordablehousing scheme limit up to Rs 50 lakh from Rs 45 lakh: FM Sitharaman.

The service sector is showing very high appetite for credit, and since it contributes to more than 50 percent, there is immense possibility to reach out to them: FM Sitharaman.

Commercial vehicle related problem is seen as a cyclical problem. Private bankers and NBFCs feel that it will be taken care of in one or two quarters. Passenger vehicles demand is largely sentiment related, which should weather over. Any problem in liquidity would be seen in wholesale financing: FM Sitharaman.

The small finance banks seem to be going on a smooth map: FM Sitharaman.

I have not heard liquidity as a problem from any of those present, said FM Sitharaman.