India is infusing an additional 100 billion rupees in housing finance companies to boost lending in the sector, a government statement said on Friday, at a time when the shadow banking industry is under stress due to lack of liquidity.
“To further ease flow of funds in the housing sector, the National Housing Bank is making available from today, a liquidity infusion facility of 100 billion rupees for housing finance companies as additional liquidity,” the government said.
Finance Minister Nirmala Sitharaman is also scheduled to meet Indian bankers on August 5 to review credit growth in various sectors, the statement said.
The Indian government is trying to take steps to revive economic growth of Asia’s third-largest economy that has slumped to a five-year low.