Krishna Merchant is Asia credit correspondent at IFR. She covers credit, mainly corporate bonds in India, Indonesia and the Philippines, and also the offshore rupee market, or Masala, bonds for India. She has been with IFR since May 2016.
A bitter public spat between the central bank and Narendra Modi’s government has dealt a further blow to India’s fragile debt market, following last month’s Infrastructure Leasing & Financial Services crisis.
India’s largest state-owned bank and the regulator for mortgage finance companies have moved to ease concerns over liquidity at the country’s shadow banks, following the central bank’s announcement of a crackdown on the non-banking financial sector.
The Reserve Bank of India plans to give foreign investors more flexibility to invest in the country’s debt capital markets in a bid to attract long-term stable investment flows and arrest a decline in the rupee.