assets except to raise the cost of funds all round? The Committee also fails to examine the consequences of an increase in interest rates on bank deposits on the relatives yield on risk capital for industry and on non-risk searing financial assets such as bank deposits. Is profitability in Indian industry high enough to attract risk capital on the required scale if the rate of interest on fixed deposits with banks is kept at the level sug- gested by the Committee of the inflation rate plus 3 per cent?