The Arguments Against

CONFLICT OF INTEREST - A lender is also a borrower in the market

CONNECTED LENDING - A huge supplier and dealer network may get funds via the banking unit

CONCENTRATION OF ECONOMIC POWER - Big corporates will become bigger lenders in the economy

OVER-BURDENING RBI'S SUPERVISORY CAPACITY - A much more stringent mechanism needed for corporate-backed banks

RISK FOR THE GOVT - A Too Big To Fail risk falls on the government and not the group