Non banking financial institutions


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Non banking financial institutions

  1. 1. Welcome<br />
  2. 2. Non-Banking Financial Institutions<br />Presented By<br />DivyaRoyal.G<br />
  3. 3. Contents<br /><ul><li>What is NBFI
  4. 4. Mutual Funds
  5. 5. Growth Of Mutual Funds in India
  6. 6. Role Of AMFI
  7. 7. Insurance Companies
  8. 8. Role Of IRDA</li></li></ul><li>What is NBFI<br /><ul><li>Non banking financial institutions are companies that do not accept deposits or handle accounts like traditional banks but provide all other form of services like loans, share trading accounts, investment banking etc. Since they are not banks but still provide financial services they are called NBFC's Non Banking financial Companies. Some of the nbfi’s are as follow’sUNIT TRUST OF INDIA LIFE INSURANCE CORPORATION (LIC) GENERAL INSURANCE CORPORATION (GIC)</li></li></ul><li>Mutual Funds<br />
  9. 9. Mutual Funds:<br />Mutual Funds are financial instruments. These funds are collective investments which gather money from different investors to invest in stocks, short-term money market financial instruments, bonds and other securities and distribute the proceeds as dividends. The Mutual Funds in India are handled by Fund Managers, also referred as the portfolio managers.<br />
  10. 10. Types Of Mutual Funds<br /> Equity Funds<br /> Debt or Income Funds<br /> Balanced Funds<br /> Liquid Funds<br /> Index Funds<br />
  11. 11. Mutual Fund Operation Flow Chart<br />Pool Their money with<br />Passed back to<br />Invest in<br />Generates<br />
  12. 12. Growth Of Mutual FundsInIndia<br />
  13. 13. Growth of Mutual Funds<br />Mutual funds are opened in India 1963 by Unit Trust of India.<br />U.T.I is Monopoly in MF up to 1986-87<br />In July 1987 SBI MF was stared followed by Canara Bank in 1987 and other Major banks also.<br />1987- Public Sector banks, Insurance Companies<br />SBI, Canbank, PNB LIC, GIC<br />1993- Private Sector<br />Kothari Pioneer ( later merged with Franklin Templeton), J P Morgan, Morgan Stanley, George Soros and Capital International<br />
  14. 14. Phases of Mutual Fund<br />First phase- 1964-87<br />Second Phase - 1987-1993<br />Third Phase - 1993-2003<br />Fourth Phase - since Feb 2003<br />
  15. 15. First Phase - 1964-87<br /><ul><li>Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.
  16. 16. The first scheme launched by UTI was Unit Scheme 1964.
  17. 17. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI.
  18. 18. At the end of 1988 UTI had Rs.6,700 crores of assets under management. </li></li></ul><li>Second Phase - 1987-1993 (Entry of Public Sector Funds)<br /><ul><li>SBI Mutual Fund was the first followed by Canbank Mutual Fund (Dec 1987)
  19. 19. Punjab National Bank Mutual Fund (Aug 1989), Indian Bank Mutual Fund (Nov1989).
  20. 20. Bank of India (Jun 1990), LIC in 1989 and GIC in 1990.
  21. 21. Bank of Baroda Mutual Fund (Oct 1992).
  22. 22. The end of 1993 marked Rs.47,004 as assets under management.</li></li></ul><li>Third Phase - 1993-2003 (Entry of Private Sector Funds)<br /><ul><li>A new era started in the Indian mutual fund industry, With the entry of private sector funds in 1993
  23. 23. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
  24. 24. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996
  25. 25. At the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crore.
  26. 26. The Unit Trust of India with Rs.44,541 crore (Asset value)</li></li></ul><li>Fourth Phase - since February 2003<br /><ul><li>This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January 2003).
  27. 27. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
  28. 28. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of AUM (Assets Under Management) and with the setting up of a UTI Mutual Fund,</li></li></ul><li>Future of Mutual Funds in India<br />By end of 2010, the mutual fund industry of India will reach Rs 40,90,000 crore.<br />It was based on the December 2004 asset value of Rs 1,50,537 crore. <br />In the coming 10 years the annual composite growth rate is expected to go up by 13.4%. <br />Since the last 5 years, the growth rate was recorded as 9% annually.<br />
  29. 29. Association of Mutual Funds in India(AMFI)<br />
  30. 30. Association of Mutual Funds in India (AMFI):<br /><ul><li>Association of Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995.
  31. 31. AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI.
  32. 32. AMFI has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards.
  33. 33. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders. </li></li></ul><li>Insurance<br />
  34. 34. Definition<br />A contract between an insurance company and a person or group which provides for a money payment in case of covered loss, accident or death.<br />
  35. 35. Major types of insurances<br />Life insurance<br />Automobile insurance<br />
  36. 36. Cont………<br />Health insurance<br />Credit insurance<br />Property insurance<br />
  37. 37. Insurance Companies<br />Life Insurance corporation of India (LIC)<br />Bajaj Allianz General Insurance<br />ICICI Prudential Life Insurance<br />ICICI Lombard General Insurance<br />Birla Sun Life Insurance<br />Tata AIG General Insurance<br /> New India Assurance Co.<br />Oriental Insurance Co.<br />HDFC Standard Life Insurance<br />Max NewYork Life Insurance<br />
  38. 38. Insurance Regulatory andDevelopment Authority(IRDA)<br />
  39. 39. What is IRDA?<br /><ul><li>Insurance Regulatory and Development Authority, responsible for monitoring all Insurance companies and their policies, looking at customer complaints, agent's certification etc.</li></li></ul><li>Role Of IRDA?<br />Protecting the interests of policy holders.<br />Establishing guidelines for the operations of insurers and brokers.<br />Promoting efficiency in the conduct of insurance business.<br />Regulating the investment of funds by insurance companies.<br />Specifying the percentage of business to be written by insurers in rural sectors.<br />