The document analyzes the financial services industry in India, highlighting its components, market size, and growth trends. Key points include the rapid growth of mutual funds and the insurance sector, regulatory changes by the Securities and Exchange Board of India (SEBI), and government initiatives to enhance financial inclusion. Looking ahead, the industry anticipates significant increases in assets under management and mobile wallet transactions by 2025 and 2022, respectively.

1. FINANCIAL SERVICES INDUSTRY:
AN ANALYSIS OF FINANCIAL SERVICES INDUSTRY
Presented by
Ovais Bin Imtiyaz
Roll No. 17MFC003
Fahad
Roll No. 17MFC002
Department of Commerce
AMU Aligarh

2. Financial Services
● Financial services refers to services provided by the finance industry.
● They are professional services involving the investment, lending, and management of money and
assets..
● The finance industry encompasses a broad range of organisation that deal with the management
of money.
● Examples of financial services are banking services, investment services, leasing & hire purchase
services, consumer finance services, insurance services, etc.

3. Financial Sector
● The Financial 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 mainly commercial banks (almost
64%).
● RBI has allowed payments banks to be created recently thereby adding to the types of entities
operating in the sector.

4. Market Size
● The Mutual Fund (MF) industry in India has seen rapid growth in
Assets Under Management (AUM). Total AUM of the industry stood at
Rs 24.03 trillion (US$ 342.01 billion) between April-November 2018.
● The insurance industry has been expanding at a fast pace. The total
first year premium of life insurance companies reached Rs 193,866.23
crore (US$ 30.10 billion) during FY18.
● Mergers and Acquisition (M&A) in 2018, 74 deals of acquisition took
place in financial sector. The total value of such transactions was US$
4.166 billion.
● BSE will set up a joint venture with Ebix Inc to build a robust insurance
distribution network in the country through a new distribution exchange
platform.

5. Investments
● Investments by Foreign Portfolio Investors (FPIs) in Indian capital markets have reached Rs 6,310
crore (US$ 899.12 million) up to November 22, 2018.
● The private equity and venture capital (PE/VC) investments reached US$ 25.20 billion between
January to October 2018.
● As of October 2018, the Financial Inclusion Lab has selected 11 fintech innovators with an
investment of US$ 9.5 million promoted by the IIM-Ahmedabad's Bharat Inclusion Initiative (BII)
along with JP Morgan, Michael and Susan Dell Foundation, and the Bill and Melinda Gates
Foundation.

6. Government Initiatives
● In December, 2018, Securities and Exchange Board of India (SEBI) proposed direct overseas listing
of Indian companies and other regulatory changes.
● Bombay Stock Exchange (BSE) introduced weekly futures and options contracts on Sensex 50
index from October 26, 2018.
● In September 2018, SEBI asked for recommendations to strengthen rules which will enhance the
overall governance standards for issuers, intermediaries or infrastructure providers in the financial
market.
● The Government of India launched India Post Payments Bank (IPPB), to provide every district with
one branch which will help increase rural penetration. As of August 2018, two branches out of 650
branches are already operational.

7. Road Ahead
● The relaxation of foreign investment rules has received a positive response from the insurance
sector, with many companies announcing plans to increase their stakes in joint ventures with Indian
companies.
● The Association of Mutual Funds in India (AMFI) is targeting nearly five fold growth in assets under
management (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a more than three times growth in
investor accounts to 130 million by 2025.
● India's mobile wallet industry is estimated to grow at a rate of 150 per cent to reach US$ 4.4 billion
by 2022 while mobile wallet transactions to touch Rs 32 trillion (USD $ 492.6 billion) by 2022.

8. THANKS !!!