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Innovation in bonds will unlock money for growth: CRISIL

According to CRISIL Research, Innovation in bonds will unlock money for growth. Infra sector needs Rs.30 lakh crore, banks Rs.5 lakh crore in the next five years, says the report.

January 22, 2015 / 14:31 IST
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CRISIL Research: Infra sector needs Rs.30 lakh crore, banks Rs.5 lakh crore in the next five years

India’s financial sector has diverse goals to accomplish, such as generating humongous capital to fund long-term growth, creating sophisticated and safe tools for a rapidly globalising corporate sector, providing more investment avenues to middle-class savers, and ensuring financial inclusion for a vast number of the unbanked.

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Clearly, banks alone won’t be able to deliver on all these objectives. CRISIL believes India needs out-of-the-box solutions to generate the money so needed for economic growth. According to our estimates, just to build out infrastructure, India will need Rs.30 lakh crore over the next five years, while banks will need another Rs.5 lakh crore for their capital requirements till 2019.

This is why a vibrant corporate bond market has become an imperative. Says Raman Uberoi, Business Head - CRISIL Ratings, Large Corporates & Corporate Affairs, “Innovation is a critical ingredient in developing bond market. Continuous innovations in the corporate bond market will eventually open the floodgates of capital for key sectors of the economy. It will enable infrastructure projects to take off, deepen the financial sector, and improve access to credit for SMEs.”