Mumbai: The Finance Ministry has started taking steps to tackle the crisis of recession looming over various sectors of the economy. The Finance Ministry, in a move in this direction, announced on Friday that the National Housing Bank will provide A/C of rs 10,000 crore to non-banking finance companies (NBFCs) to provide residential loans. Finance Minister Nirmala Sitharaman will hold a meeting with the heads of major public and private sector banks on Monday to find out the latest in the banking sector.
She will also hold a meeting with various ministries next week to sort out the problems faced by the MSME sector. The package for the MSME sector is expected to be announced after the meeting. A statement issued by the Department of Financial Services said that the National Housing Bank will provide Rs 10,000 crore of cash to housing finance companies to meet the funding requirement of the housing sector, so as to provide additional cash for affordable housing.
The department said that after the announcement of the budget, the RBI has made efforts to provide 1,34,000 crore cash to banks. During the visit, the Finance Minister is going to hold a meeting with the heads of the public sector and private sector banks on the 5th of this month to find out the health of the banking sector. This is for the first time that major private sector banks have also been invited to the meeting. It will discuss the banking sector's priorities for GDP growth in the coming months as well as the status of loan acquisition to MSMEs, retail, automobiles, affordable housing and NBFCs.
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