Bankers feel that corporates are unlikely to raise long-term funding at this point of time. Says Mr Nayar, "With investment and consumption demand receding, we will certainly see inflation expectations reined in, within a few months. Hence, we may not see too many corporates raising long-term funds during this phase, unless otherwise they have really run out of options."

Corporates, which were looking at raising money from overseas markets would find it more tougher. Says BankAm managing director and chief executive officer Vishwavir Ahuja, "The arbitrage opportunities that existed earlier have gone away now. While ECB norms have been loosened, the move comes at a time when the appetite to raise dollar-funding has gone down considerably. Even though, base rates in the US are low, spreads have widened dramatically. Add to that, the weakness of the rupee and the recent rise in forward premia. Global credit markets have been affected and the appetite to fund large-debt transactions has been severely impacted. There is a lot of risk aversion as well as credit availability.

The slowdown is likely to impact specific segments sectors. Allahabad Bank chairman and managing director AC Mahajan feels that there could be a slowdown in the real estate, personal loan, cement and steel segment.