'There is no liquidity crisis,' says Sitharaman after meeting private bankers

New Delhi: Finance Minister Nirmala Sitharaman, on Thursday, said that there wasn't any liquidity problem in the country even as the government decided to join an outreach by public sector banks ahead of the festive season.

“I have not heard liquidity as a problem from anybody here today,” ANI quoted Sitharaman as saying at a meeting with heads of private banks.

She also said that micro-finance units at the meeting have vouched for growth and are extending loans and that there is demand in the country, Hindustan Times reported.

“Many of the MFIs and micro-finance units which have come here are in deep country. They said that in those areas there is still demand and they are extending loans. All of them clearly voiced a positive growth which is a good encouraging story,” she said.

Sitharaman said there was no disagreement at the meeting, which she described as “tonic-like”.

“On the whole it was very tonic-like meeting, where I 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.

Earlier, finance secretary Rajeev Kumar said that the government would join the banks’ outreach programme to promote demand.

“The festival season is coming. Therefore, we have all decided to join the outreach program and step up their efforts in various districts,” Kumar said.

Last week, Sitharaman slashed corporate tax rate for domestic manufacturing companies from 30% to 22% and for new manufacturing firms from 25% to 15% in a measure aimed at reviving growth in the country’s slowing economy.