Banks providing more credit for last few weeks: Montek

Banks providing more credit for last few weeks: Montek
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First Published: Fri, Feb 13 2009. 01 55 PM IST
Updated: Fri, Feb 13 2009. 01 55 PM IST
By PTI
New Delhi: With lending becoming a key area of concern amid declining industrial production, the Planning Commission today said banks have in fact started providing more credit in the last few weeks.
“In the last few weeks or so, there has been a change and the availability of credit from banks has improved,” Planning Commission deputy chairman Montek Singh Ahluwalia said at a function here.
He said credit availability from banks has improved after various measures taken by the government and several meetings of the RBI and finance ministry officials with the banks.
Recently, external affairs minister Pranab Mukherjee, who is holding charge of the finance portfolio, asked banks to step up lending to small and medium industries and infrastructure to stimulate the economy.
Since mid-September, the RBI has infused over Rs4,00,000 crore to overcome liquidity shortage, but there were complaints that banks are not lending due to risk aversion.
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First Published: Fri, Feb 13 2009. 01 55 PM IST