Singapore: Raghuram Rajan got a lot of flak for squeezing both India’s borrowers and lenders. To see how, consider the $22 billion of rupee-denominated bonds sold in India’s domestic market by single A-rated companies since 2000. Also Read: Corporate bonds get RBI boosterBut the carrots come with a stick. Even as Rajan gives banks an opportunity to earn bigger fees and a new avenue to raise capital, he wants them to reduce their exposure to large corporate borrowers. By spicing things up, Rajan is helping both borrowers and lenders.

Source: Mint August 26, 2016 08:48 UTC