Why is it in the news?
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Finance Minister hoped the economy will start looking up in the second half of the current financial year.
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It is expected that consumption would rise and banks increase their lending operations.
More in the news
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India’s economic growth in April-June fell to a six-year low of 5%.
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The private sector banks had assured her that there was no liquidity crunch and there was strong demand in rural areas.
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As per some bankers, the slump in demand for commercial vehicles was a cyclical issue, but this was not the case for passenger vehicles.
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Minister said that for commercial vehicles, it was a cyclical phenomenon and that it would be resolved in one or two quarters.
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According to Uday Kotak, private investment will respond to the reduction in corporate tax.
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He said most banks will follow external benchmark-based lending from October 1.
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Affordable housing:
(1) Some banks had asked if the credit limit for affordable housing could be raised to ₹50 lakh from the current ₹45 lakh.
Source
The Hindu.