'India needs more credit to be developed by 2047'

India needs to extend the reach of credit in the economy to become a developed nation by 2047, even as companies increasingly move away from traditional bank financing, top bankers said at Mint’s BFSI Conclave.

- Shayan Ghosh

CEOs of Citi, IndusInd, and Bank of Baroda (left to right).

In a panel discussion at the event, they said the availability of alternative financing for companies, coupled with difficulty in getting bank deposits, has led to a structural change in the pace of credit growth.

“Indian banks’ credit-to-GDP (gross domestic product) is almost around 55%, and to be a developed country, I think we need to push it to something around 60-65%,” said Debadatta Chand, chief executive, Bank of Baroda.