Government is infusing an additional Rs 10,000 crore 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 Rs. 10,000 crore for housing finance companies as additional liquidity," the government said.
Finance Minister Nirmala Sitharaman is also scheduled to meet bankers on August 5 to review credit growth in various sectors, the statement said.
The government is trying to take steps to revive economic growth of Asia's third-largest economy that has slumped to a five-year low.