FPIs could be the panacea for India's credit crisis: JPMorgan

One of the most senior bankers in India has an antidote for the nation’s yearlong credit crisis that is showing no signs of abating: seek monies from overseas investors.

JPMorgan Chase & Co.’s chairman for south and south-east Asia, Kalpana Morparia, is advising policy makers to tweak bankruptcy rules to let foreign portfolio managers throw a lifeline to the troubled shadow banking sector. The overseas investors could also step in to fill the financing void left by the non-bank lenders, she said in a recent interview.

The cash squeeze in the financial system triggered by the default of infrastructure financier IL&FS Group