The bond market in India is still not completely developed, even after several committees being formed throughout the years to augment the bond market. This means that the bond market is unable to share the credit burden that the banking system in India is currently facing. Since there is an absence of a well functioning bond market in the country, it is the banks and the government that take on the task of financing infrastructural projects like roads, airports, bridges and ports. This puts the banks under pressure, since they are buying into long-term assets such as bridges. CPPR Research Intern, Pavithra Manoj writes…

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