From an investment banking perspective you need to offer what investors
want at all times, but as a lender you need to decide if it makes sense
for you. For example, in 2007-08, there was exuberance around the Indian
infrastructure story — the media believed it, the policy makers
believed it, investors wanted it, so we brought some of these companies
to market. It was probably high risk but we got them in. Offering
equities is like leaving to the consumer the choice of how much spice
they want in their food — if they want a high risk bet with the upside
and the downside of equities, the choice is really theirs — and as a
cook I need to give them that. But as a banker, I need to decide how
much spice is good for me; I did not like spice in my food during that
time so we did not take exposure to infrastructure.
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