Most banks have liquidity, says PNB MD Sunil Mehta
Punjab National Bank (PNB) managing director Sunil Mehta, on Friday, said that liquidity was not an issue for any of the banks. His comments came after Finance Minister Nirmala Sitharaman made fresh announcements for credit push.
After meeting public sector undertaking (PSU) banks heads in Delhi, the FM said that lenders will organise loan gatherings across 200 districts over the next few weeks. Union ministers and lawmakers will attend these loan gatherings aimed at improving credit disbursement to small businesses and retail customers. FM also said that micro, small and medium enterprises (MSME) stressed loans will not be declared non-performing assets till the end of the current financial year.
Mehta, and J Packirisamy, MD and CEO of Andhra Bank, discussed the announcements with CNBC-TV18.
“Asset quality will not be diluted where the bank has got its established system and processes. Only thing is you increase your speed of disposals. That is all," Mehta said.
“I don’t think liquidity is any issue with any of the banks. Most of the banks are having liquidity and any bank having more liquidity will be more willing to give the loans because it is better for the bank,” he added.
“It is only basically connecting the people and it is an outreach programme. We are just trying to make it a single-window approach. That is all,” said Packirisamy.
In terms of auto loans and housing loans, he mentioned, “Even now you can avail. We are not saying that you cannot come and take a housing loan from me. Even now you can avail. The parliamentarian presentation was to give a feeling that the banks are out to help you, it is not that we have closed fist. However, eventually, the quality of the loans has to be as per the acceptable standards of each bank as well as in terms of the regulatory issues.”
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