Banks can issue long term bonds with minimum tenure of five years but subject to their credit exposure in the infrastructure sector with the minimum residual maturity of five years, said a RBI panel advocating the need for long term fixed interest rate loans.
India’s top bankers, S Sridharan MD of SBI and Shikha Sharma MD, CEO of Axis Bank, in an exclusive interview on CNBC-TV18, detail if infrastructure loans given by banks could lead to asset liability mismatches, a greater chance of bad loans or if it is too early to worry.