Corporate bond market development: Is bank loans to bonds the game changer?

One of the key reasons for the lower development of corporate bond markets in In
dia has been the alternate source of financing which is bank loan s.
Regulatory arbitrage and efficiency in pricing have been the key factors for gr
owth of bank loans vis--vis bonds amongst others.
One of the key step which is been discussed is to convert existing loan portfoli
o into bonds and going forward encourage lending/investing by banks in the form
of bonds instead of loans.
Would this step provide the necessary impetus to the development of bond market
and if this has to be successful what are the key hurdles that need to be addres
sed?