India has a diversified financial sector, which is undergoing rapid expansion. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The financial sector in India is predominantly a banking sector with commercial banks accounting for more than 60 per cent of the total assets held by the financial system says Pawan Bansal MD of Altius Finserv.

1. Altius Finserv Discuss on Financial Services
Introduction
India has a diversified financial sector, which is undergoing rapid expansion. The sector comprises
commercial banks, insurance companies, non-banking financial companies, co-operatives, pension
funds, mutual funds and other smaller financial entities. The financial sector in India is predominantly a
banking sector with commercial banks accounting for more than 60 per cent of the total assets held by
the financial systemsaysPawanBansal MD of AltiusFinserv.
India's financial services sector such as Altius Finserv has always served the country’s economy well,
accounting for about 57 per cent of the gross domestic product (GDP). In this regard, the financial
servicessectorhasbeenanimportantcontributor.
The Government of India has introduced reforms to liberalise, regulate and enhance this industry. At
present, India is undoubtedly one of the world's most vibrant capital markets. Challenges remain, but
the future of the sector looks good. The advent of technology has also aided the growth of the industry.
About 75 per cent of the insurance policies sold by 2020 would, in one way or another, be influenced by
digital channels during the pre-purchase, purchase or renewal stages, as per a report by Boston
ConsultingGroup(BCG) andGoogle India.
Market Size
The size of banking assets in India reached US$ 1.8 trillion in FY14 and is expected to touch US$ 28.5
trillionbyFY25.
The Association of Mutual Funds in India (AMFI) data show that assets of the mutual fund industry have
hit an all-time high of about Rs 12 trillion (US$ 189.83 billion). Equity funds had inflows of Rs 5,217 crore
(US$ 825.49 million), taking total inflows on a year-to-date basis to Rs 61,089 crore (US$ 9.66 billion).
Income funds and liquid funds account for the largest proportion of AUM, with Income funds accounting
for Rs 5.22 trillion(US$82.59 billion) andequityfundsaccountingforRs3.06 trillion(US$48.41 billion).
During 2013-14, the life insurance industry recorded a premium income of Rs 3.14 trillion (US$ 49.67
billion), as against Rs 2.87 trillion (US$ 45.39 billion) in the previous financial year, registering a growth
of 9.4 per cent.
India’s life insurance sector is the biggest in the world with about 36 crore policies, which are expected
to increase at a compounded annual growth rate (CAGR) of 12-15 per cent over the next five years. The
insurance industry is planning to hike penetration levels to five per cent by 2020, and could top the US$
1 trillion mark in the next seven years. The total market size of India's insurance sector is projected to
touch US$ 350-400 billionby2020.
According to the recent data released by the Insurance Regulatory and Development Authority (IRDA),
the gross direct premium underwritten by non-life insurance companies during 2013-14 was Rs
77,538.25 crore (US$ 12.26 billion) compared to Rs 69,089 crore (US$ 10.92 billion) in 2012-13. The

2. gross direct premium underwritten during 2011-12 was Rs 58,119.71 crore (US$ 9.19 billion). The non-
life sectorgrowthwas19 per centin2012-13 and 23 percent in2011-12.
India is the fifteenth largest insurance market in the world in terms of premium volume, and has the
potential to grow exponentially in the coming years. Life insurance penetration in India is just 3.1 per
cent of GDP, which has almost doubled since 2000. A fast growing economy, rising income levels and
improving life expectancy rates are some of the many favourable factors that are likely to boost growth
inthe sectorinthe comingyears.
Altius Finserv Private Limited Investments are corpus in India’s pension sector expected to cross US$ 1
trillion by 2025, following the passage of the Pension Fund Regulatory and Development Authority
(PFRDA) Act2013.