Reluctant to lower lending rates meaningfully, banks seem to be losing out to the commercial paper (CP) and corporate bond markets, which offer borrowers more attractive rates, reports Bhavik Nair in Mumbai. Interestingly, banks are among the biggest lenders in the CP market but are happy to pick up short-term paper instead of offering companies a longer-term line of working capital even if it means a smaller spread. Sebi data show firms raised Rs 36,125.09 crore via bonds in June, a 97% rise year-on-year.
