Infrastructure financing brings additional risks in view of their long term nature and is not good for the banks from an ALM perspective to increase their exposure excessively. Though prudential norms have been relaxed by RBI for infrastructure projects, RBI is not in favour of further relaxations in exposure norms.
Around that time, we saw the balance of risks to the inflation outlook shift decisively downwards, while the distribution of risks widened to encompass outright deflation, as you can see by comparing the blue and red lines on my second slide.