Liquidity stress in financial institutions overstated, says FinMin official

A top finance ministry official on October 25 said the liquidity stress in financial institutions is overstated allaying fears of a liquidity crunch in NBFCs, including housing finance firms triggered by a crisis at infrastructure financier IL&FS. It is learnt that Finance Minister Arun Jaitley met select banks and officials from his ministry on liquidity concerns. Banks said few NBFCs have approached them and the lenders have supported them by buying their assets, the official said, adding that most NBFCs said they are comfortable with the liquidity situation.

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