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FM Sitharaman ropes in private lenders to boost growth

Ahead of the festive season, Finance Minister Smt. Nirmala Sitharaman sought the help of private banks and non-bank lenders to boost credit disbursal so as to stir up consumer demand. A few days ago, the government slashed the corporate tax rate in the hopes of augmenting the profitability of companies and spur private investments at a time when GDP growth cooled to a six-year-low of 5% in the June quarter & the private consumption expenditure stooped to an 18-quarter low of 3.1%.

“I have not heard liquidity as a problem (crisis or shortage) from anybody. That is one thing I would like to take as a message. If anything, more liquidity is reaching them, they see demand waiting and they won’t mind further extending the facility,” the minister was quoted saying.