The country needs to double credit growth to 15 per cent to become a $5 trilli
The country needs to double credit growth to 15 per cent to become a $5 trillion economy by 2024-25, say bankers.
The country has recorded high double-digit credit growth in the past and is capable of achieving similar growth now as well, they added.
“If you want to reach a $5 trillion economy, the outstanding credit, which is around Rs 95-98 trillion, it will have to be doubled, which means we need to grow (credit) at around 15 per cent,” State Bank of India’s Chairman Rajnish Kumar said at an IBA event.
Echoing his views, Union Bank of India’s Managing Director and CEO Rajkiran Rai G said for a $5 trillion economy, credit growth has to be more than 15 per cent per annum.
“To sustain that kind of credit growth, we need to build a robust risk management system so that we don’t repeat the mistakes of past. The sourcing, process, monitoring have to be evolved and technology will play a major role in it,” Rai said.
Banks’ credit growth has been hovering at around 7 per cent, currently.