Finance Minister Chidambaram pitches for cheaper home loans
In a pre-budget meeting, FM flagged housing and consumer goods sectors as part of his overall thrust to ensure adequate credit flow. In video: What an 'aam admi' wants?
By TNN |
NEW DELHI: A day after public sector banks led by State Bank of India cut interest rates, Finance Minister P Chidambaram raised hopes of another round of cuts.
The good news is, unlike last month, when bankers waited before acting on Chidambaram���s suggestion, they appeared more forthcoming this time around, saying there was scope for fresh cuts.
During a pre-budget meeting with state-run bank chiefs on Tuesday, the finance minister flagged housing and consumer goods sectors as part of his overall thrust to ensure adequate credit flow.
The good news is, unlike last month, when bankers waited before acting on Chidambaram���s suggestion, they appeared more forthcoming this time around, saying there was scope for fresh cuts.
During a pre-budget meeting with state-run bank chiefs on Tuesday, the finance minister flagged housing and consumer goods sectors as part of his overall thrust to ensure adequate credit flow.
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The two sectors have been hit due to the credit squeeze enforced by Reserve Bank of India over the last 12 months to ensure that inflation stays within limits.
������ 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,������ Chidambaram told reporters after the meeting where he also reviewed the performance of public sector banks during the first three quarters.
He said banks have been advised to pay attention to the requirements of credit in these sectors.
While clarifying that the government does not give directions to banks, the minister said the Centre was only trying to sensitise banks to the demands of the consuming public and the prevailing situation . ������ Banks should respond to the situation,������ he added.
Because of the easy liquidity situation, banks have already resorted to a rate cut, which is likely to further increase in times to come.
(Courtesy Timesofindia.com)
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