FM asks PSU banks to lend more for housing, consumer durables
Finance Minister P Chidambaram on Tuesday asked state-run banks to ensure adequate loans for housing and consumer durables, as these areas have been partly affected by a "conscious" moderation in credit flow over the past one year.
By PTI |
NEW DELHI: Finance Minister P Chidambaram on Tuesday asked state-run banks to ensure adequate loans for housing and consumer durables, as these areas have been partly affected by a "conscious" moderation in credit flow over the past one year.
"Consciously, over a period of a year, there has been a slowing down of credit growth... However, this slowing down of credit has indeed, to some extent, affected flow of credit to the housing sector and consumer durables sector," he told reporters after a review meeting with PSU bankers.
He said these issues came up for discussion at the meeting and banks have been advised to pay attention to the requirement of credit for home seekers and to those who would like to buy consumer durables and consumer non-durables.
Some banks have already begun moving in that direction, he said expressing the hope that others will also pay attention to credit delivery as well as credit quality to these sectors over the next few days.
When asked whether this means that banks will further cut interest rates, he said, "You ask bankers. All I said is there is a feeling that adequate credit is not flowing to these sectors for one reason or another, so you must pay attention to these sectors because these sectors are drivers of economic growth also."
To another query on rates cuts, he said, "Government does not want this or that, government simply sensitises the banks to the demands of the consuming public. So the banks have to respond to the situation. Government does not give them directions or orders. We have sensitised them to the need of the housing sector and consumer durables."
"Consciously, over a period of a year, there has been a slowing down of credit growth... However, this slowing down of credit has indeed, to some extent, affected flow of credit to the housing sector and consumer durables sector," he told reporters after a review meeting with PSU bankers.
He said these issues came up for discussion at the meeting and banks have been advised to pay attention to the requirement of credit for home seekers and to those who would like to buy consumer durables and consumer non-durables.
Some banks have already begun moving in that direction, he said expressing the hope that others will also pay attention to credit delivery as well as credit quality to these sectors over the next few days.
When asked whether this means that banks will further cut interest rates, he said, "You ask bankers. All I said is there is a feeling that adequate credit is not flowing to these sectors for one reason or another, so you must pay attention to these sectors because these sectors are drivers of economic growth also."
To another query on rates cuts, he said, "Government does not want this or that, government simply sensitises the banks to the demands of the consuming public. So the banks have to respond to the situation. Government does not give them directions or orders. We have sensitised them to the need of the housing sector and consumer durables."
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