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Financial Banking Sector


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Growth prospects in Financial Sector

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Financial Banking Sector

  1. 1. Present Trends ofFinancial Sector in India
  2. 2. Table of ContentsS. No. Content Page No.1 About Financial Sector 4-52 Indian Insurance Sector 63 Future of Indian Insurance Market 74 Structure of Banking 85 Market Size 9-106 Growth Driver of Banking System 117 Job Description 138 Desired Candidate Personality 149 Compensation Plan, Location 15
  3. 3. Present Trends ofFinancial Sector in India
  4. 4. About Financial Sector• Financial Sector is the backbone of the economy and it is indeed critical to nurture the growth of this important sector in order to ensure sustained growth rate. When the Indian economy was liberalized in the year 1991, a road map was also set forth for financial sector reforms.• 2nd largest component after trade, hotels, transport and communication all combined together in GDP.
  5. 5. Financial Sector Includes• Financial Services : 1. Capital Market 2. Forex Market 3. Asset Management 4. NBFCs (Non-Banking Financial Institutions) 5. MFIs (Microfinance Institutions)• Banking Sector• Insurance Sector
  6. 6. Indian Insurance Sector• The US$ 41-billion Indian life insurance industry is considered the• 5th largest life insurance market, and• Growing at 32-34%• The government is likely to reintroduce the Insurance Bill which proposes to increase the FDI cap in private sector insurance companies from 26 % to 49%.• The health insurance market stood at around us $ 1.5 billion in 2008-09 and is expected to grow to us $ 9 billion by 2016-17.
  7. 7. Future of Indian Insurance MarketIndian Insurance Sector ready to tap Rural India• A large part of rural India is still untapped due to poor distribution, large distances & high costs relative to returns• Assocham stated that semi-urban areas would have a share of US$ 35 Billion and urban areas would account for US$ 25 Billion in the US$ 60 Billion industry.• Life insurance market in semi-urban and rural territories is expected to rise to US$ 20 Billion mark in the upcoming four years from the existing value of less than US$ five Billion.
  8. 8. Structure of the Banking Industry Reserve bank of India Non-banking Financial financial Banks institutions Institutions (NBFCs) Scheduled Commercial Co-operative Banks banks Rural Co- Regional Urabsn Co-Public Sector Private Sector Foreign Banks operative Rural Banks opeartive Banks (27) Banks (22) (31) Banks (84) Banks (1,721) (98,061)
  9. 9. Market size Advances-Deposits of All SCBs Credit composition of Financial Sector 6000000 Entities 5000000 4000000 NBFM-InfraRs. Crore 6% 3000000 2000000 0% Public Banks 1000000 65% 0 HFCs SCBs 2007 2008 2009 2010 2011 4% 85% Deposits 2696937 3320062 4063201 4746920 5616432 Foreign Banks Advances 1981236 2476936 2999924 3496720 4298704 4% Private Banks CD Ratio 73.5% 74.6% 73.8% 73.7% 76.5% NBFM-Retail 16% 5% Domestic Credit as % of GDP300.0%  India’s banking sector is dominated by250.0% public sector banks, i.e. 65% of the Gross200.0% credit suppliers.150.0% The Bank credit market in India is lower100.0% than the global benchmark on account of 50.0% lower penetration in the rural areas and 0.0% tier-3 cities. Higher credit % reflects higher 2006 2007 2008 2009 2010 financial inclusion. This clearly reflects that USA Thailand Malaysia China India lower PCI of rural areas has not attracted banks to service them. World average: 169.8%
  10. 10. Market size and Cost of Intermediation Advances-Deposits trend in Public Banks Advances-Deposits trends in Pvt Banks35.00% 500 140 35%30.00% 120 30% In 10,000 Crores 400 In 10,000 Crore25.00% 100 25%20.00% 300 80 20%15.00% 200 60 15%10.00% 40 10% 100 5.00% 20 5% 0.00% 0 0 0% 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Advances Deposits Adv. growth% Dep growth% Deposits Advances Deposit Growth % Advances Growth % Spread of Bank Lending and Deposit Rates6.00% Cost of Intermediation still remains higher than5.00% other countries due to small ticket4.00% size, regulatory cost associated with SLR, CRR and3.00% PSA (Priority Sector Advances) on account of 2007 Hawkish monetary policy to contain recent2.00% 2011 inflationary pressure.1.00%0.00% India Malaysia Thailand Singapore China
  11. 11. Growth Drivers for Banking System• Large number of micro, small and medium enterprises (MSMEs) with significant growth opportunities in their respective sectors.• Large amount of money is remitted by NRI.• Stringent regulatory framework like RBI• Adoption of best practices from other countries• Retail Banking• Technological Development for Core Banking
  12. 12. Corporate sales Exe.(Selection Perspective)
  13. 13. Job Description• Conduct market research and collect the data of the company in a respective area.•• Conduct cold calling and maintain the data of the same.•• Create a database of SME accounts and service them.•• Responsible for the sourcing of materials from the SME accounts.•• Adhere to day to day summing up of accounts and reporting the same to their reporting Manager.•• Establishing and maintaining new and established client relationships.• Responding to sales inquiries from new and existing customers.• Maintaining the company’s contact database management with up-to-date contact, accurate and activity details• Preparing a variety of sales status reports (monthly/ weekly etc.) that include activity, follow-up, closings, and adherence to targets
  14. 14. Desired Candidate personality• Good interpersonal and communication skills• Tenacious work attitude• Self-motivated and flexible to work under negligible supervision• Excellent problem solving skills• Able to persuade and convince others and should have negotiation skills to deal with different kinds of customers• An enthusiastic, confident, problem – solving and flexible mindset is important• Having an emotional and sympathetic approach to people and their problems is an advantage in this profession• Good computer application skills such as Microsoft Word, Excel, PowerPoint etc.• High emotional stability• Capable of agile cogitating to give quick and accurate response to questions
  15. 15. Compensation Plan- The compensationplan will include a base salary of 2.25 lac p.a.Location – Delhi/NCR