The document discusses potential places to save money, including under a bed, in a cookie jar, pillow, wallet, money belt, or small home safe. It asks if the reader would save money in any of these places, and to consider reasons why or why not, as well as other possible places to save money.

1. Grp.No13
Swatee Ghosh
Samit kr. Kapat
Ronald Fernandes
9/10/2010 1

2. PLACES TO SAVE MONEY
Would you save your money in any of these places?
Why? Why not? Can you think of other places to save
money?
• Bed & Mattress
• Cookie Jar
• Pillow
• Wallet
• Money Belt
• Small House Safe
9/10/2010 2

3. 9/10/2010 3

4. Financial services refer to services provided by the financial industry.
The industry comprises of organizations who manage money.
FORMAL INFORMAL
FINANCIAL SERVICES FINANCIAL
SERVICES
• Credit cards
• Loans • Payday lenders
• Investment vehicles • Check cashing services
• Direct deposit • Rent-to-own stores
• Wire transfers/ remittances • Pawn shops
• Loans from family/friends
9/10/2010 4

5. Banks
 A landmark was registered in the Indian banking sector
when the major banks were nationalized in 1969.
 Commercial banks
 Investments banks
 Bonds (debt)
 Stocks (equity)
 Notary services
 Credit cards
9/10/2010 5

6. Stock market
 Origin  Pre-independence  Post-independence
 India's market cap as a percentage of world market cap was
2.8 per cent as on December 31, 2009.
 In 2009, there were 21 IPOs that raised US$ 4.18 billion as
compared to 36 IPOs in 2008 that raised US$ 3.62 billion.
 QIP is a capital raising tool, whereby a listed company can
issue equity shares, fully and partly convertible debentures,
or securities other than warrants, which are convertible into
equity shares, to a qualified institutional buyer (QIB).
 In 2009, Indian companies had raised close to US$ 7.13
billion (QIP)
9/10/2010 6

7. NSE
Trading at NSE
 Fully automated screen-based trading mechanism
 Strictly follows the principle of an order-driven market
 Trading members are linked through a communication network
 This network allows them to execute trade from their offices
 The prices at which the buyer and seller are willing to transact will appear
on the screen
 When the prices match the transaction will be completed
 A confirmation slip will be printed at the office of the trading member
Advantage of trading at NSE
 Integrated network for trading in stock market of India
 Fully automated screen based system that provides higher degree of
transparency
 Investors can transact from any part of the country at uniform prices
 Greater functional efficiency supported by totally computerized network
9/10/2010 7

8. Foreign Exchange
 Currency exchange
 Wire transfer
 Foreign currency banking
9/10/2010 8

9. Investments services
 Asset management
 Hedge fund management
 Custody management
9/10/2010 9

10. Insurance
 India 5th largest life insurance market in the emerging
insurance economies globally and the segment is
growing at a healthy 32-34 per cent annually (LIC)
 Total first year premium collected in 2009-10 was US$
24.64 billion, an increase of 25.46 per cent over US$
19.64 billion collected in 2008-09.(IRDA)
 Brokers
 Underwriters
9/10/2010 10

11. Others
 Private equity
 Angel investor
 Conglomerates
 Debt resolution
 Venture capital -Presently in India there are around 34
national and 2 international SEBI registered venture
capital funds
 Mutual funds
 Mortgage companies
 Investment research agencies
9/10/2010 11

12. Economic Updates
 Indian economy growth 7.4 per cent in 2009-10.
 (CSO) – financial services 9.7 per cent in 2009-10
 (SEBI) Investors (FIIs) as on May 31, 2010 was 1,710
 FII inflow in equity US$ 4.6 billion
 US$ 5.9 billion inflow in debt. (May)09
 US$ 875.73 million in debt(Aug)10
 Net investment , 2010 was US$ 530.05 million
 Mutual fund US$ 170.46 billion May 2010- US$
135.58 billion May 2009, (AMFI).
 India's foreign exchange reserves US$ 271. billion, an
increase of US$ 9.87 billion (RBI)
9/10/2010 12

13. Main players of financial services
 SBI Capital Markets Limited:
 Bajaj Capital Limited:
 DSP Merrill Lynch Limited:
 Birla Global Finance Limited:
 Housing Development Finance Corporation:
 PNB Housing Finance Limited:
 ICICI Group:
 LIC Finance Limited:
 L & T Finance Limited:
 Karvy Group:
9/10/2010 13

14. Consolidation
 Increasing the number of customers and beating
competitors by selling various Financial products through
one distribution channel.
 Diversifying products and customers to avoid the risk and to
finance a loss-making part of the business with the profits of
another one.
 Maintaining a large capital base as a sponge to absorb losses
and the growing cost of technology.

 Increasing the quality of service and products to gain the
trust of the customers.
 Increasing profitability in the battle against competitors
9/10/2010 14

15. Performance  F.S.
 At about $900 billion, India's stock of financial assets—including
bank deposits, equities, and debt securities—is one-fifth the size
of China's The gap is widening: by 2010, China's financial stock
will reach $9 trillion, while India's will remain below $2 trillion.
 India's financial system is more effective than China's, largely
because the market share of more efficient foreign and privately
owned banks in India has crept up to 25 percent.
 Many nonperforming loans have been cleaned up, and while the
true figure is hard to determine, they are now estimated at
around 9 percent of all lending, compared with up to 40 percent
in China.
 India's stock market is booming, and its best companies list
shares abroad.
9/10/2010 15

16. Growth  F.S.
 Present is nearly 8.5% per year. The rise in the growth rate suggests the
growth of the economy.
 To maintain such a growth for a long term the inflation has to come
down further.
The financial sector in India had an overall growth of 15%, which has
exhibited stability over the last few years although several other markets
across the Asian region were going through a turmoil.
 With the opening of the financial market variety of products and
services were introduced to suit the need of the customer.
 The Reserve Bank of India (RBI) played a dynamic role in the growth of
the financial sector of India.
9/10/2010 16

17. Recession Financial services
9/10/2010 17

18. Recession 2008-09Impact
 First, the Indian stock markets, both BSE as well as
NSE, fell dramatically over 2008 .
 India’s main index sensex plunged nearly 50% during
the year from a high of 19,080 in January 2008 to 8,674
in January 2009.
 FIIs’ net outflows have been Rs 47,706 crore (Rs 477.06
billion) till March 30 in the financial year 2008-09 as
against huge inflows of Rs 53,000 crore (Rs 530 billion)
in the previous fiscal.
 Money and credit markets under pressure.(E.g.M.F.)
9/10/2010 18

19. Resistance ???
 Supervisory Review Process (SRP)
 Investment Fluctuation Reserve (IFR)-5%
 ‘Held for Trading’ (HFT) & ‘Available for Sale’ (AFS)
 Housing loan Rs.30 lakh (USD 75,000 approx) to
individuals against the mortgage of residential housing
properties from 75% to 50%
STEPS Taken:
 Financial Accounting-Conservative(net loss)
 Setting up of the Clearing Corporation of India Limited (CCIL)
 Setting up of INFINET as the communication backbone for the
financial sector.
 Introduction of Negotiated Dealing System (NDS) for screen-
based trading in government securities.
 Credit Information Bureau of India Limited (CIBIL) for
information sharing on defaulters as also other borrowers
9/10/2010 19

20. Bibliography
 www.investopedio.com
 www.sebi.com
 www.debtresolutionpartners.com
 www.mca.gov.in
 www.wikipedia.org
 www.centrelink.gov.in
 www.fisglobal.com
 www.business.com
 www.moneymadeclear.com
9/10/2010 20

21. THANK YOU
Q&A
9/10/2010 21