Interesting Revenue-PBT Pattern with a lag of 6-7 years.
Can this be repeated in future? Disc-Invested.
Oct-2019, Raamdeo Agrawal : One of the things is that credit intensity in the economy which is about 70 percent of the gross domestic product (GDP) – so Rs 200 lakh crore of our GDP, the outstanding credit must be about Rs 140-150 lakh crore. But world over what happens is the next $3 trillion will have a significantly higher credit intensity. So if the credit flow is not there, there is no GDP.
You can make it minus 100 percent and there is no GDP growth. That kind of thing. It is just one-to-one correlation. So it is a tower of credit. So my sense is that we will go to $3 trillion, we wrote about this trillion dollar economy in 2008. So we are watching it for the last ten years, it will go to $6 trillion and it will go to $12 trillion also, but let us talk about this $6 trillion and this will happen by 2026-2027.
When this happens, you will need about Rs 200-250 lakh crore of credit to be underwritten in next six-seven years.
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