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BFSI Sector Growth & Opportunity - SUNAINA SAMRIDDHI FOUNATION
The BFSI (Banking, Financial Services and Insurance) sector in India has experienced significant growth in recent decades. The banking sector has expanded from 89 banks in 1969 to over 279 banks currently, with over 825,000 branches across the country. The insurance industry has grown at an annual rate of 32-34% and was valued at $41 billion in size. Other financial services like mutual funds and asset management have also grown substantially. The BFSI sector is projected to account for 7.7% of India's GDP by 2010, demonstrating its increasing importance in the Indian economy. The sector provides numerous employment opportunities in areas like banking, insurance, and investment services.
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BFSI Sector Growth & Opportunity - SUNAINA SAMRIDDHI FOUNATION
- 1. BFSIFueling Economy SUNAINA SAMRIDDHIFOUNDATION
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- 3. • The Financialservices sector has risen by 9.5% in the first quarter of 2009-10. • The banking sector has grown from 89 banks in 1969 to 279 post liberalization in 1995. The number of branches increased from 8262 in 1969 to 82511 by 2010. Over all. • the banking sector has recorded an annual growth of 19%-21% and a CAGR growth of 19.5% between FY03-07 in terms of total assets. GROWTH OF BFSI SECTOR SUNAINA SAMRIDDHI FOUNDATION
- 4. • Indian insurancesector is the fifth largest life insurance market in Asia, with an annual growth of 32-34 % . The total life insurance premium in India is projected to grow to US$ 259.72 billion by 2010-11 • India’s share in the total world m-cap has risen to 2.79 %. Making it the ninth largest market cap in the world • India received US$ 45 billion in foreign currency remittances from non-resident Indians in 2008, the highest in the world GROWTH OF BFSI SECTOR SUNAINA SAMRIDDHI FOUNDATION
- 5. • Fund raisingby India Inc. through Initial Public Offers (IPOs) rose by 62 % to US$ 4.2 billion in 2008 from US$ 2.6 billion in 2006 • Expansion of a middle class expected to exceed 500 million by 2010 • Nearly 80% of the Indian population is without Life, Health and Non-life insurance, making it a potential segment • The mutual fund industry has witnessed a growth of 42.4% in Assets Under Management and the insurance sector has seen a 26.7% growth in terms of total premium earned during the same period • The Indian BFSI sector could account for over 7.7 % of GDP with over Rs.7,500 billion in market cap by 2010 SUNAINA SAMRIDDHI FOUNDATION
- 6. Financial Services Commercial Bank Investment Services Insurance Foreign Exchange • Asset Management • HedgeFund Managers • Custody services • Private banking • Investment Banks • Bank cards • Credit card machine services and networks • Insurance Brokerage • Insurance Underwriting • Reinsurance •Currency Exchange •Wire transfer •Foreign Currency Banking SUNAINA SAMRIDDHI FOUNDATION
- 7. Commercial Bank • Indiahas 96 scheduled commercial banks • 27 public sector banks • 31 private banks • 38 foreign banks. • Over 190 regional rural banks They have a combined network of over 82511 Branches and nearly 44000 ATM SUNAINA SAMRIDDHI FOUNDATION
- 8. Growth • As perthe McKinsey report ‘India Banking 2010’, banking sector index has CAGR of 51% since the year 2001 as compare to 27% growth in the market index . SUNAINA SAMRIDDHI FOUNDATION
- 9. Future • credit cards. •consumer finance. • wealth management. • life and general insurance. • investment banking. • mutual funds. • pension fund regulation. • stock broking services. • custodian services. • private equity. • etc. • Today, banks have diversified their activities and are getting into new Further, most of the leading Indian banks are going global, setting up offices in foreign countries, by themselves or through their subsidiaries. SUNAINA SAMRIDDHI FOUNDATION
- 10. India - StrategicMapServiceQuality Rural Urban LowHigh Regional Citibank ABN Amro State Bank of India ICICI Bank HDFC IndusInd Bank PNB Andhra Bank Canara Bank Co-operative Banks Rural Banks Bank of Baroda Bank of India Stan C HSBC Geographical Spread SUNAINA SAMRIDDHI FOUNDATION
- 11. Investment Management Services (AssetManagement) • It Include various securities like shares, bonds and other securities and assets (e.g., real estate, Commodities) and investment is done mainly in form of mutual funds. • Investors may be institutions, insurance companies, pension funds, corporations etc. or private investors. SUNAINA SAMRIDDHI FOUNDATION
- 12. Growth • Business inIndia is going to increase at least 33% annually. • The main growth is expected in the retail segment (an estimated growth of 36%). SUNAINA SAMRIDDHI FOUNDATION
- 13. Future • McKenzie studyreveals that growth in Assets Under Management sector will go upto 440 billion US $. SUNAINA SAMRIDDHI FOUNDATION
- 14. Insurance• Started in1818 by Anita Bhavsar at Kolkata as Oriental Life Insurance Company. • Insurance is a US$41-billion industry in India, and grew by 36% in 2006-07 over the previous year – Life Insurance - US$35 billion industry with US$24 billion – Non-Life Insurance - US$5.6-billion industry – Motor and health segments account for 56% of total business • The Indian Insurance industry consists of a total of 34 players – Life: 1 public sector player; 16 private players – Non-life: 6 public sector players; 11 private players • Major international players like AIG, Aviva, MetLife, New York Life, Prudential, Allianz, Sun Life, Standard Life and Lombard are already present with minority stakes in joint ventures with Indian companies for both Life and Non-life segments SUNAINA SAMRIDDHI FOUNDATION
- 15. Growth • Currently, a$41 billion industry, India is the world's fifth largest life insurance market growing at a rapid pace of 32- 34% annually as per Life Insurance Council studies. • Home insurance sector is likely to achieve a 100% growth since home insurance are made compulsory for housing loan approvals by the financial institutions. • In the coming three years Health insurance sector is all set to become the second largest business after motor insurance. SUNAINA SAMRIDDHI FOUNDATION
- 16. Future • In Indiaonly 0.2% of population is insured under mediclaim as compare to 75% of USA, which is only 20 lacs. • Health Insurance Premium in India to surpass Rs. 15000 Crore by 2012-13:IMRS Research • 65% of Indian population is Young it is the largest customer base for Insurance companies. SUNAINA SAMRIDDHI FOUNDATION
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- 18. Foreign Exchange Services •The primary purpose of the foreign exchange services is to assist international trade and investment, by allowing businesses to. convert one currency to another currency. • India is 16th largest foreign exchange market in the world in terms of total daily turnover which was US$34 billion in 2007. • Average daily turnover of global forex market rose to $3.2 trillion in April 2007, an increase of 69% at current exchange rates and 63% at constant exchange rates. • Daily global trading volumes would likely reach US$5 trillion by 2010. SUNAINA SAMRIDDHI FOUNDATION
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- 20. Future • Increase inthe world trade will increase the foreign exchange among the countries. • World tourism will also increase the Forex activities across the globe. SUNAINA SAMRIDDHI FOUNDATION
- 21. Employment Opportunities Branch Banking •Banking Sales • Phone Banking / Transactions Processes • Personal Banking & Wealth Management • Wholesale & Corporate Banking – Treasury – Corporate Finance – Investment Banking – Capital Markets – Rural & Agricultural Banking SUNAINA SAMRIDDHI FOUNDATION
- 22. Employment Opportunities FINANCIAL SERVICES •Sales • Operations • Financial Planning • Research • Institutional Equities • Compliance & Audits • Fund Accounting • Corporate Finance SUNAINA SAMRIDDHI FOUNDATION
- 23. Employment Opportunities INSURANCE • Sales •Operations • Support Functions • Underwriting • Actuary SUNAINA SAMRIDDHI FOUNDATION
- 24. Some Projects • WorkingCapital management • Capital structure • Ratio Analysis. • Project Appraisal. • Budgeting. • Share trading. • Portfolio Management. • Comparative study of various mutual fund. • FII's & FDI in India SUNAINA SAMRIDDHI FOUNDATION
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