(FE)
Finance minister Nirmala Sitharaman met Prime Minister Narendra Modi, as the government gears up for the next round of succour for critical sectors, a senior government official told FE. However, a one-time, big-bang stimulus to blunt the pandemic impact on the economy is not on the cards. Instead, the government will come out with several rounds of relief measures, with focus on the worst-hit sectors, such as MSMEs, exports, construction, aviation and certain other labour-intensive sectors, said the official.
The finance ministry will hold a meeting with top executives of state-run banks on Friday, for a second time this week, to review liquidity in the system and the lenders’ preparedness to support the credit appetite of the economy once the lockdown is lifted for certain segments after April 20, another source said. Public-sector banks’ capital position and an expected spike in bad loans following the lifting of a three-month repayment moratorium will likely feature in the discussion as well.
