Indian banks face challenges such as low banking access rates and rising customer expectations, but also opportunities for growth. Key challenges include implementing Basel III capital requirements, increasing competition, and rising non-performing assets. However, opportunities exist in expanding mortgage lending, wealth management, and rapid ATM/branch growth. Economic development, favorable demographics, and policy support can further drive the banking industry's growth in infrastructure financing, financial inclusion, and technological innovation.
This presentation have the detailed analysis of the Indian banking sector, how it has evolved and reformes that have come gradually.It also has a classic case of merger of ICICI bank with BOM.
Challenges for banking in current scenarioHumsi Singh
The presentation describes the challenges faced by the banking sector in today's scenario. It tells about the various problems faced by banks nowadays.
I Tried to give a detail on this ppt which will make u clear all about SBI. Many things i mentioned like the competitors ... its ATM ... do have a look and download if u need it
India being a developing country has been progressing since independence with the great sup-port of banking system in the country. The role of commercial bank in the progress of the country is considered as a benchmark. For the high rate of capital formation the role of commercial bank has no any other alternative. But yet India needs a great amount of development and growth for the time to come where again the banking system will become a milestone but the banking system has only one big issue that is of Non Performing Assets.
In general, the non performing assets are found more comparatively in the public sector banks in comparisons to private bank because of liberal rules for the debt recovery. Now a days the RBI has is-sued strict guidelines to reduce NPA,s in the banks and due to that the proportion of NPA,s has re-duced up to the extent but not all together. In the present paper a study is conducted to check the NPA,s of State Bank Of India during 2012-13 to 2016-17 and suggestion to reduce the NPA,s has also been drawn.
And much more
This presentation have the detailed analysis of the Indian banking sector, how it has evolved and reformes that have come gradually.It also has a classic case of merger of ICICI bank with BOM.
Challenges for banking in current scenarioHumsi Singh
The presentation describes the challenges faced by the banking sector in today's scenario. It tells about the various problems faced by banks nowadays.
I Tried to give a detail on this ppt which will make u clear all about SBI. Many things i mentioned like the competitors ... its ATM ... do have a look and download if u need it
India being a developing country has been progressing since independence with the great sup-port of banking system in the country. The role of commercial bank in the progress of the country is considered as a benchmark. For the high rate of capital formation the role of commercial bank has no any other alternative. But yet India needs a great amount of development and growth for the time to come where again the banking system will become a milestone but the banking system has only one big issue that is of Non Performing Assets.
In general, the non performing assets are found more comparatively in the public sector banks in comparisons to private bank because of liberal rules for the debt recovery. Now a days the RBI has is-sued strict guidelines to reduce NPA,s in the banks and due to that the proportion of NPA,s has re-duced up to the extent but not all together. In the present paper a study is conducted to check the NPA,s of State Bank Of India during 2012-13 to 2016-17 and suggestion to reduce the NPA,s has also been drawn.
And much more
Indian banking 2020 opportunities and challengesSaurav Dasgupta
The last decade was very beneficial for the Banking sector. In my this article, I have tried to highlight the probable factors that may / will influence the Banking Industry in the current decade (till 2020).
Indian banking 2020 opportunities and challengesSaurav Dasgupta
The last decade was very beneficial for the Banking sector. In my this article, I have tried to highlight the probable factors that may / will influence the Banking Industry in the current decade (till 2020).
Digital india: Emerging Challenges & Opportunities for the Banking SectorArun Prabhudesai
The presentation given by RBI's Harun R Khan outlines the following:
Digital Revolution: migration from cash to electronic
payments
• New Thrust Areas: mobile banking – BBPS - TReDS
• Security vs Convenience
• Challenges & Opportunities for banks
• Concluding Thoughts
2015 Banking Outlook: Boosting profitability amidst new challengesDeloitte United States
In a lot of ways, banks may liken the past six years to a turbulent ride on a small aircraft. As we move into 2015, institutions may finally be at the point of boosting profitability – taking off for a less bumpy ride. That’s not to say challenges aren’t ahead, but rather a new flight plan is in store. Check out seven key areas that banks will likely have to prioritize in 2015.
Read the full report here: http://www2.deloitte.com/us/en/pages/financial-services/articles/2015-banking-outlook.html
Financial inclusion is a powerful enabler of inclusive economic growth. Studies show that access to finance and financial services empowers people in many ways -- they are better able to start and expand businesses, invest in education, manage risk, and absorb financial shocks. It also helps help reduce income inequality and thereby accelerate economic growth.
Trend of Zero Balance Accounts under PMJDY - Part - 4Resurgent India
Of the 20 crore accounts opened under the scheme, about 53 lakh have been offered the overdraft facility. But the overdraft was sanctioned for only around 27.5 lakh accounts, of which only around 12.3 lakh accounts availed this facility amounting to a disbursement of Rs.166 crore.
Indian Banking Moving towards a new landscape - Current Trends in Indian Ban...Resurgent India
Given the fluctuating interest rate cycle and underlying macro-economic factors, banks have been looking to diversify their sources of income. This has led to emergence of new products under asset management, wealth management and treasury.
Financial inclusions a pavement towards the future growthTapasya123
India’s economic growth rates higher than most developed countries in recent years, a
majority of the country’s population still residue unbanked. Financial Inclusion is a relatively
new socio-economic concept in India that aspire to change this dynamic by providing
financial services at affordable costs to the underprivileged, who might not otherwise be
aware of or able to afford these services. Global trends have revealed that in order to achieve
inclusive development and growth, the expansion of financial services to all sections of society
is of utmost importance. As a whole, financial inclusion in the rural as well as financially
backward pockets of cities is a win-win opportunity for everybody involving – the
banks/NBFC’s intermediaries, and the left-out urban population. Banks will handle core
infrastructure and services while intermediaries known as Business Correspondents (BC’s)
will be the executors and act as the face of these banking & financial institutions in dealing
with end-users. Therefore, it is assumed that financial inclusion can initiate the next
revolution of growth and prosperity. In the 21st century, India has been pulling all the right
levers to advance financial inclusion and economic citizenship by channelling its own
transactions to lubricate the system. India’s journey towards economic ascension relies on
how the 65% unbanked population of India (conservative 2012 estimate by World Bank) is
enabled with financial infrastructure.
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The goal of the demonetization move in India is to make the economy stronger and eliminate the parallel cash economy which is unaccounted and untaxed. While this can impact the GDP negatively in the short term, it should have positive long term consequences. For e-commerce companies, which already have a digital payments system in place, it should lead to higher online payment and eventually eliminate the painful cash on delivery option. However, in the short term, witness a decline in GMV from India as the economy adjusts to the “new normal”.
Msme funding – Opportunities & Challenges (Part 5)Resurgent India
In India, the preferred mode of finance is either self or other sources. This further complicates the situation, as with these sources an enterprise cannot challenge the increasing competition
Funding Sme – MSME FINANCE – DEMAND & SUPPLY - Part - 9Resurgent India
The present domestic market conditions do not provide enough opportunities for the MSME sector for raising low cost funds. To improve the flow of credit there is a need to provide low cost finance to the MSME sector, which has limited working capital and is dependent exclusively on finance from public sector banks. The cost of credit in the Indian MSME sector is higher than its international peers. A transparent credit rating system, simplification/reduction in documentation for accessing finance, providing interest rate subvention to the MSME sector must be taken into consideration in order to maintain the growth of the MSME sector.
Funding Sme – The Challenges And Risk Within - Mezzanine Financing - Part - 8Resurgent India
Business owners need finance in order to invest but they want to retain control of their business and not give up valuable equity. For MSMEs the financing options are limited and private equity investors are usually interested in larger companies, while business angel investors are more active in start-ups. Furthermore, conventional bank lending is often not available for projects that could be classified as speculative. That’s where mezzanine finance comes in. Mezzanine finance is a fairly well-known type of funding, which sits between traditional bank debt and equity and it is exactly what many MSMEs need.
Funding Sme – The Challenges And Risk Within - Alternative financing sources ...Resurgent India
Securitization of Trade Credit: Trade credit is an important source of financing for MSMEs, as they sell on credit to their large customers and then wait for long periods for payment. If these receivables (trade credit) could be packaged as a securitized asset, which would essentially be a commercial paper with the credit rating of the large firm, it could help MSMEs reduce their investment in working capital and their need for finance significantly. The credit worthiness of a typical MSME would also improve, qualifying it for greater bank funding. Though the securitization process which is similar to factoring, could be more cost-effective than bank funding, factoring, and letters of credit.
Funding Sme – The Challenges And Risk Within - MSME FUNDING - NEED FOR ALTERN...Resurgent India
Finance is the lifeline of any enterprise. India has one of most extensive banking networks in the world. Despite, a considerable expansion of the banking infrastructure during the recent years, the provision of finance to grassroot level businesses, scattered across the nation, still remains an enormous challenge. Going ahead, it is also observed that Indian MSMEs have limited access to finance. Majority of the MSMEs operates on the funds of its promoters, thus limiting its growth. The limited or nonavailability of institutional finance at affordable terms is also hindering innovation in the Indian MSMEs.
Funding Sme – The Challenges And Risk Within - MSMEs CONTRIBUTION TO ECONOMY ...Resurgent India
Economy, with more than 31 million units employing more than 80 million persons. Further, productivity of the MSME sector has been improving significantly with fixed investments and employment growing consistently over the past few years. This is a direct indication of the efforts focused on this sector to integrate the workforce with technological enhancements to increase production. Fixed investments in the MSME sector between FY07 and FY12 has grown at a CAGR of 6.5 per cent and employment has grown by more than 6 per cent (y-o-y). Further, between FY07 and FY12, the sector’s total gross output grew at a CAGR of 6.3 per cent - reiterating the substantial contribution of the MSMEs to the Indian economy.
MSME Financing - Alternative Financing Instruments - Part - 14Resurgent India
Asset-based finance, which includes asset-based lending, factoring, purchase-order finance, warehouse receipts and leasing, differs from traditional debt finance, as a firm obtains funding based on the value of specific assets, rather than on its own credit standing. Working capital and term loans are thus secured by assets such as trade accounts receivable, inventory, machinery, equipment and real estate.
MSME Financing - Financing options available to MSMEs-II - Part -10Resurgent India
SME exchange
GOI and regulators have initiated several measures to address the low level of MSME financing through the capital markets. In March 2012, post issuance of SEBI guidelines, both BSE and NSE have set up institutional trading platforms in the SME segment to allow MSMEs to list and raise equity capital through venture funds, private equity and wealthy individuals, without initial public offerings.
MSME Financing - FINANCING MSME’S IN INDIA - Part - 7Resurgent India
Finance is life blood of any enterprise. But Indian MSMEs have always suffered the deficiency of this life blood, despite India having one of the most extensive banking networks in the world.
The present domestic market conditions do not provide enough opportunities for the MSME sector for raising low cost funds. To improve the flow of credit there is a need to provide low cost finance to the MSME sector, which has limited working capital and is dependent exclusively on finance from public sector banks. The cost of credit in the Indian MSME sector is higher than its international peers.
Indian Insurance Industry - Recent Industry Trends - Part - 5Resurgent India
Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells the tied insurance company's insurance products to its clients. Globally, bancassurance has emerged as an important channel for distribution of insurance products. Various international studies have shown that a bancassurance strategy has indeed saved costs of insurance companies in the long run.
Indian Insurance Industry - Key Issues and Challenges - Part - 2Resurgent India
While a range of economic and financial reforms have helped the insurance sector grow, there remains a host of challenges which need to be addressed for harnessing the full potential of the sector:
DMIC will be an essential component of India’s future economic development. Implementation of DMIC Project requires huge investment for building up of infrastructure. It is envisaged that there will be primarily two categories of projects under the purview of state and central government agencies as:
DMIC Summit - Implementation and Institutional Framework - Part - 2Resurgent India
The effective implementation of such large and complex project, involving multiple states and agencies calls for immaculate planning and a robust administrative structure. In order to ensure that the traditional pitfalls of project implementation are overcome, it is proposed that a Project Development approach be adopted, wherein each facet of the project is rigorously developed from an engineering, financial, contractual, environmental and social perspective, along with interlinkages, on prioritization and selective basis and prior to commencement of implementation
DMIC Summit – Developing Hub for Investors - Overview & Approach - Part - 1Resurgent India
Delhi-Mumbai Industrial Corridor, from here on referred to as DMIC, is a multi-modal High Axle Load dedicated freight corridor connecting Delhi and Mumbai. It is a mega infrastructure project at USD 100 billion with technical and financial aid built in from Japan. The project is a flagship programme of Government of India with the aim of creating futuristic Industrial Cities by leveraging the "High Speed - High Capacity" connectivity backbone provided by Western Dedicated Freight Corridor (DFC).
Smart Cities - Global Case Studies - Part - 5Resurgent India
Greater Manchester is the single biggest economic area outside London with a residential population of 2.7 million. Greater Manchester is made up of 10 local authorities, of which the city of Manchester is the largest. The city of Manchester is located at the core of the Greater Manchester metropolitan area. Manchester’s core sectors are the business, finance and professional services sector which contribute ~40% to the city’s economy.
Smart Cities - Global Case Studies - Part - 4Resurgent India
Beijing, as the capital and political and cultural center of China, is a world famous ancient city and modern cosmopolis. Standing in the northwest of Beijing, Haidian District is important and famous for its science and technology, culture, education and tourism. It, consists of 22 sub -districts and 11 townships, has a total area of 426 square kilometers and a resident population of 1.5 million.
Empowering MSMEs - Benefits of Credit Rating in MSME - Part - 8Resurgent India
Approaching a credit rating agency is a good option for small and medium enterprises (SMEs) given the problems they face in seeking finance. Rating agencies assess a firm's financial viability and capability to honour business obligations, provide an insight into its sales, operational and financial composition, thereby assessing the risk element and highlights the overall health of the enterprise.
Empowering MSMEs - Skills Development of the MSME Sector - Part - 7Resurgent India
One of the thrust areas for increasing the competitiveness of MSMEs includes skills development. Skills development not only helps in improving productivity but also fosters entrepreneurship. Hence, it is imperative for the concerned governmental agencies, trade associations and MSMEs to come together and discuss on how to make training programmers relevant and attractive for MSMEs. The lack of human resources has been a long-standing problem faced by MSMEs in the country. Despite India’s large pool of human resources, the MSMEs continue to lack skilled manpower required for manufacturing, marketing, servicing, etc.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
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3. Challenges
Challenges:
Developing countries like India, still has a huge number of people who do not have
access to banking services due to scattered and fragmented locations. But if we talk
about those people who are availing banking services, their expectations are
raising as the level of services are increasing due to the emergence of
Information Technology and competition. Since, foreign banks are playing in
Indian market, the number of services offered has increased and banks have laid
emphasis on meeting the customer expectations.
4. Challenges
Now, the existing situation has created various challenges and opportunities for Indian
Commercial Banks. In order to encounter the general scenario of banking industry
we need to understand the challenges and opportunities lying with banking industry
of India.
The main problem faced by Indian Banks
is that, half of the population has no
access to formal banking facilities.
However, this challenge is blessing in
disguise and also offer huge opportunity
to explore untouched market.
5. Impact of Changes on CFO
Interest income growth in Indian banking sector (USD mn)
6. Challenges
Introduction of Basel‐III Norms:
As per Basel‐ III norms, Indian Banks will have to bring in an additional capital of Rs.
5 lakhs crore to meet the Basel III norms. The government on its part has to infuse Rs.
90,000 crore into the state‐run banks to maintain majority shareholding as per the
Basel III. Further, this norm will be implemented in a phased manner starting from
January 2013 and to be implemented to the fullest by March 2018
Intensifying Competition:
Intense competition due to a large number of players in the banking industry and
other players such as NBFCs (less regulation) has resulted in reducing market
share of the existing banks.
7. Challenges
Increasing NPA:
Economic slow‐down and aggressive lending by the banks has turned loans into non‐
performing assets and thus impacting the profitability of the banks as they are
required to have higher provisioning amounts.
Licensing requirement:
For setting up of a banking business in India, a banking license from the RBI has to be
acquired which has served as an associated protocol and formalities. The
requirements are so stringent that the last licenses issued were to Kotak Mahindra
Bank and Yes Bank in 2003 and 2004 respectively.
8. Opportunities
Mortgages to cross Rs 40 lakh crores by 2020:
The total mortgages in the books of banks have grown from 1.5% to more than 10%
of the total bank advances/loans in the last period of 10 years. The total ratio of
outstanding mortgages, including the Housing Finance Companies to the GDP is 10%.
Further, as per a survey, by 2020, this ratio were to reach 20%, a number similar to
that of China, then the mortgage industry can be expected to grow at an average
rate of over 20% during the next decade. The outstanding mortgages are
expected to cross Rs. 40 lakh crores by 2020
9. Opportunities
Wealth management to boost the growth:
Further, wealth is expected to get further concentrated in the hands of a few. The
top band of income distribution is expected to grow most rapidly over the next
decade. By the end of this decade, the top 5% house‐holds, predominantly residing in
the metros and Tier I cities, will account for 30% of the total disposable income. In
such a situation, wealth management services will be an integral part of the product
portfolio for both private as well as public sector banks.
Opportunities for the banks in India, include increase in
outstanding mortgages, rapid growth in branches
and ATM, Mobile Banking, Infra
Financing and SME Finance.
10. Opportunities
Rapid growth of branches and ATMs:
India’s penetration rate of branches and ATMs is very low as compared to other
developed and developing nations. Currently there are 85 ATMs for one mn
population, i.e. 1,04,500. Further, the ATMs are expected to grow and double their
number in the next two years. As such, most of the new ATMs, 50‐65 % will be
deployed in tier 2 and 3 cities, while tier 1 cities will grow at around 20%.
11. Opportunities
Mobile banking to grow exponentially:
The Internet is widely used by all banking segments around the world to purchase
financial services products. Further, by 2015, it is estimated that the mobile banking
transaction volume worldwide will reach US$500 mn. and on domestic front,
mobile banking transactions are expected to result in a cost savings of US$ 22 mn ( Rs
1,100 crore).
12. Opportunities
Infrastructure financing:
Currently, Banking sector is the major financer for the infrastructure in India,
accounting for more than half of the funding of this segment. Further, to sustain
India’s economic growth, the Planning Commission envisages that $1 trillion (about 1
0% of GDP) will be spent on infrastructure during the 12th plan from 2012 to 2017,
thus providing huge opportunity for banking industry.
13. Opportunities
New Models to serve the Small & Medium Enterprises (SME):
As per a survey, large customers in banking segment are more satisfied than the
medium and small sized ones. Due to higher risk and lower ticket size, SMEs typically
get less attention. This provides the opportunity to create innovative models to
serve SMEs with sufficient and timely credit at the right price.
14. Growth Drivers
Economic and demographic drivers:
• Favourable demographics and rising income levels
•The sector will benefit from structural economic stability and continued credibili
ty of Monetary Policy
• Growth in infrastructure, industry, services and agriculture is expected to grow
Corporate credit in the economy.
15. Growth Drivers
Nearly 35% of the Indian population has a median age of 25.5 years which signifies th
at India will gain from its demographic dividend
India not only enjoys a favourable demographic dividend but also has a strong pop
ulation of High Net worth Individuals (HNWI)
16. Growth Drivers
Policy Support
Extension of interest subsidy to low cost home buyers
Simplifying of KYC norms, introduction of no‐frills accounts and Kisan Credit
Cards to increase rural banking penetration
RBI is considering giving more licenses to private sector players to increase
banking penetration
17. Growth Drivers
Financial Inclusion
In India, 40% of the population lack access to the simplest kind of formal
financial services. With this regard, the RBI mandated banks to allocate at
least 25% of the total number of branches proposed to be opened during a
year in unbanked rural centers
Banks considering Financial Inclusion as a banking opportunity rather than a
Regulatory obligation are likely to see long term profitable growth and a
cushion against market volatility
18. Growth Drivers
Technology Innovation
Innovation in banking services such as ATM, internet banking, mobile bankin
g have increased productivity and helped in acquiring new customers
As per estimates, currently banks spend around 15% of the total expenditure
on technology.
Technological innovation will not only help to improve products an service
s but also to reach out to the masses in cost effective way
19. THANK YOU
Email: jyoti.gadia@resurgentindia.com Call Us: +91 124 4754550
www.resurgentindia.com
Read full report on : http://blog.resurgentindia.com/indian-banking-industry-sustaining-
growth-with-equity-2/