NEED OF INDIA IN CORPORATE BOND MARKET

There have been some rumors that the banks are forcing the government not to set up a new development financial institution (DFI). DFI will be set up to provide long-term capital for infrastructure projects.

The demand sounds reasonable. The banks with a large portfolio of short-term deposits will not be able to lend for the long term. The term shouldn't be long enough that it would take longer by the infrastructure project to re....