Mumbai, Dec. 15 -- India needs to extend the reach of credit in the economy for it to become a developed nation in a little over two decades, even as companies increasingly move away from traditional bank financing, panellists said at Mint's BFSI Conclave.

They said that the availability of alternative financing options for companies, coupled with the difficulty in getting bank deposits, has led to a structural change in the pace of credit growth. The government has set a target for India to become a developed nation by 2047.

"India's banks' credit to GDP 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.

Chand said that apa...