The Principal Secretary to PM PK Mishra asked the finance industry to have a futuristic outlook. According to him, the finance industry needs to invest in next generation businesses of India rather than worrying about next year’s performance. Mishra made this statement while addressing the 13th SBI Banking and Economics Conclave, which was held on Wednesday. This change according to him is required for India to emerge as a global economic superpower.
According to Mishra, the finance industry now needs to focus on building up the growth of the country. He stated that a big and developed economy cannot survive only through banking. For this purpose, deep corporate bond and equity markets are required. The participation of institutional players and infrastructure funds also becomes very important. He even demanded a change in the process of credit evaluation. This change needs to happen from collateral-based to cash flow-based credit evaluation process.
Mishra said that the financial sector should now focus on cash flow rather than collateral. He emphasized the use of new technologies to expand credit. Technology can help lenders evaluate businesses through Goods and Services Tax (GST) returns, bank statements, and payment flows. Account aggregator data and digital lending infrastructure will also be helpful. Lenders should evaluate businesses based on their earnings and future potential, not just existing assets owned by promoters.