The document discusses the growth of India's service sector, with a focus on the banking industry. It notes that the banking sector plays a key role in the Indian economy through employment, lending, and facilitating savings. The service sector, including banking, has grown significantly and contributes over half of India's GDP. Within banking, deposits and credit are projected to increase by 14-15% in the coming fiscal year through rising household savings, demand for loans, and expansion of bank branches.

1. Growth of service sector
In Indian Economy

2. GROUP MEMBERS
• Piyush Upadhya
• Prafful Sapra
• Mayank Agrawal

3. Service sector
• The segment of the economy that provides
services to its consumers. This includes a wide
range of businesses including financial
institutions, schools, transports and
restaurants.
• Also known as "tertiary sector of industry," or
"service industry/sector".

4. The various sectors that
combine together to
constitute service industry are
 Trade
 Hotels and Restaurants
 Railways
 Other Transport &
Storage
 Communication (Post,
Telecom)
 Banking
 Insurance
 Dwellings, Real Estate
 Business Services
 Public Administration;
Defense
 Personal Services
 Community Services

5. Contribution Of Service Sector In
Indian Economy

6. Meaning of Banking
• The primary activity of banks is "accepting
deposits, for the purpose of lending and
investment, deposits of money”.
• The essence of banking is TRUST.

7. Importance of Banking
• Motivate people to save.
• Channelize household savings into productive
capital
• Facilitate productive use of surpluses to
generate
• employment and promote economic welfare.
• Provides risk free income to depositors.

8. SECTOR
OVERVIEW
Banking Deposits
1.4 trillion
41%
Unbanked Population in
India
42.8
India’s Banking Penetration
Score
157
Total Number of Schedule
Commercial Banks in India
27.5%
Banking Sector’s Share in Total BFSI Employment
$1.8 trillion Total Banking Assets

9. India’s banking sector plays a key role
in economic growth and employment
• Aggregate deposits of all Scheduled Commercial Banks (SCBs), as a
percentage of GDP increased from 61% in FY07 to 67% in FY13 ,
driven by increasing demand from retail customers.
• Credit to GDP increased from 45% in FY07 to53% in FY13 indicating
the improved lending of SCBs to various industries, which has
enhanced trade and economic development.
CONTRIBUTION TO GDP

10. • WithintheBanking,FinancialservicesandInsura
nce(BFSI)sector,financialintermediariessuchas
DSA’s,insuranceagents,mutualfundadvisors,etc
.accountforthelargestshare(65–
70%)ofemployment.
• Bankingstandssecondintermsofemployment(
averageshareof28%).Thebankingsectorisprojec
tedtocreateupto2millionnewjobsinthenext5-
10years,drivenbyissuanceofnewlicensesandeff
ortstoexpandfinancialservicesintoruralareas.

12. NUMBER OF BRANCHES –BY BANK TYPE
• Over all employment levels in the Indian banking
system increased at a CAGR of 3.5% during the FY09-
FY13 period . The main drivers of these employment
trends have been the private sector banks which
witnessed a growth of 8.7% CAGR in their number of
employees during the same period
• On the other hand, public sector banks (PSBs) great
CAGR of 2.3% while the foreign banks saw aced line of-
3.8% in the employment levels.

13. SEGMENTATION & OFFERINGS
• LOAN PRODUCTS
1. Auto & personal loans
2. CV & construction equipment finance
3. Credit/debit cards
4. Loans against gold
5. Agri & tractor and education loans
6. RETAIL
• DEPOSIT PRODUCTS
1. Savings accounts
2. Current accounts
3. Fixed / recurring deposits
4. Corporate salary accounts
OTHER OFFERINGS
Depository accounts
Mutual fund, insurance and gold
sales
Private banking
NRI, bill payment & foreign
exchange (forex) services
POS terminals
RETAIL BANKING
WHOLESALE BANKING
COMMERCIAL BANKING
Working capital & term loans
Bill collection
Wholesale deposits
Forex & derivatives
Letters of Credit & Guarantees
TRANSACTIONAL
BANKING
•Cash management
•Custodial and clearing bank
services
•Correspondent banking
•Tax collections
•IPO underwriting
INVESTMENT BANKING
Debt capital markets
Equity capital markets
Project finance
M&A and advisory

14. Growth in banking sector
• RISING FOCUS ON MOBILE BANKING
• SHIFT TO FEE-BASED BUSINESS MODEL
• ADOPTION OF DIGITAL TECHNOLOGIES
• FOCUS ON EMERGING SECTORS & RURAL
MARKETS

15. • Deposits:
TheRBI'sestimateofthebankingsystem'sdeposits’growthfo
rFY14is14%.Depositsareexpectedtogrowduetoriseininter
estrateonsavingsbankdepositswhichinturnwouldencoura
gehouseholdsavings,RBI’seffortstoattractNRIdepositsamo
ngothers.
• Credit off-take :
AspertheRBI’sestimates,bankcreditisestimatedtogrow15
%inFY14.Theincreaseincreditcouldbeattributedtodemand
forshort-termloans,workingcapital,andretailsegments.
• New branches :
Bankswillcontinuetofocusonexpandingtheirnetwork.Acco
rdingtoGartnerresearch,about2,000newbrancheswouldb
eaddedinIndiabytheendof2014.Thiswouldresultinincrease
demploymentinthesector.