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AMN / NEW DELHI

Union Finance Minister Nirmala Sitharaman today 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. She was addressing media in New Delhi this evening after meeting private sector banks and micro-financial institutions.

She said, many of the micro-finance units which are in absolutely densely populated rural areas said in the meeting that 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 the 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 the first round of bank outreach programme in 250 districts will be held from 3rd to 7th October.