The document discusses various financial services and sectors in India. It describes the growth of the banking, capital markets, insurance, and venture capital sectors. It also covers credit unions, stock brokerages, non-banking financial corporations, investment funds, and government sponsored enterprises. The key sectors discussed are banking, insurance, capital markets, and the various types of organizations that operate within these sectors such as banks, insurance companies, stock brokerages, and investment funds.

1. Services in financial sectors
Group No. 05
Sonali Shivkar……….50
Vicky Mathur..………56
Manish Ch.Yadav….24
Pooja Chilongia…….39

2. Introduction
 Financial services refer to services provided by the finance
industry
 The finance industry encompasses a broad range of
organizations that deal with the management of money.
 The growth of financial sector in India at present is nearly
8.5% per year.

3. Organization
 Credit Unions
 Banks
 Credit Card Companies
 Insurance Companies
 Consumer Finance Companies
 Stock Brokerages
 Investment Funds
 Government Sponsored Enterprises

4. Growth of the banking sector in
India
 The banking system in India is the most extensive.
 The total asset value of the entire banking sector in India is
nearly US$ 270 billion.
 The total deposits is nearly US$ 220 billion.
 Banking sector in India has been transformed completely.
 Presently the latest inclusions such as Internet banking and
Core banking have made banking operations more user
friendly and easy.

5. Growth of the Capital Market in India
 The ratio of the transaction was increased with the share ratio
and deposit system
 The removal of the pliable but ill-used forward trading
mechanism
 The introduction of InfoTech systems in the national stock
exchange (NSE) in order to cater to the various investors in
different locations
 Privatization of stock exchanges

6. Growth in the Insurance sector in India
 Indian players are keen to convert untapped market potential
into opportunities by providing tailor-made products
 The competition among the companies has led to aggressive
marketing, and distribution techniques
 Foreign companies which entered the arena are
 Toki Marine
 Aviva
 Allianz
 Lombard General
 AMP, New York Life
 Standard Life
 AIG
 Sun Life

7. Growth of the Venture Capital market in
India
 The venture capital sector in India is one of the most active in
the financial sector inspite of the hindrances by the external set
up
 Presently in India there are around 34 national and 2
international SEBI registered venture capital funds

8. Ability of Financial Sector
i. Reduce risk involved in financial transactions by pooling and
diversifying risk factors
ii. Lower the cost of financial intermediation by exploiting
benefits from economies of scale and economies of scope
iii. Mobilize savings and channelize these funds into investment
activities
iv. Optimize the allocation of resources available in the
economy.

9. 7 p’s of financial sector
1. Product
2. Place
3. Promotion
4. Price
5. Physical environment
6. Process
7. people

10. Characteristics of Services
1) Intangibility
2) Perishability
3)Variability
4) Inseperability

11. 1. Product:- Knowledge Banking
 Food & Agribusiness
 Infrastructure
 Healthcare &Lifesciences
 Communication & Technology
 Environment & Sustainability
 Education & Social Infrastructure

12. 2. Place:- Dr. A. B. Road, Worli, Mumbai
3. Promotion:- Business Line News Paper
4. Price:- According to service provided
5. Physical environment:-
 185 Branches Pan India
 225 + ATMs
 2 National Operating Centers
6. Process:- Banking Process
7. People:-Human Capital and robust Technology

13. 1.Government-sponsored enterprises
(GSEs)
GSEs are a group of financial services corporations created by the United States
Congress.
Their function is to enhance the flow of credit to targeted sectors of the economy
and to make those segments of the capital market more efficient and transparent.
The targeted borrowing sectors: agriculture, home finance and education.
Congress created the first GSE in 1916.
GSEs hold or pool approximately $5 trillion worth of mortgages

14. List of organizations
Housing
 The twelve Federal Home Loan Banks (1932)
 Federal National Mortgage Association (1938)
 Federal Home Loan Mortgage Corporation (1970)
 Government National Mortgage Association (1968)
Farming
 Federal Farm Credit Banks(1916)
 Federal Agricultural Mortgage Corporation (Farmer Mac)
(1987)

15. 2.Stock Brokerages
A stock broker is a regulated professional broker who
buys and sells shares and other securities through
market makers or Agency Only Firms on behalf of
investors.
 A broker may be employed by a brokerage firm.
Servicesprovider
 A transaction on a stock exchange must be made
between two members of the exchange— Such an
exchange must be done through a broker.

16. Contd…
There are three types of stock broking service.
 Execution-only, which means that the broker will
only carry out the client's instructions to buy or sell.
 Advisory dealing, where the broker advises the client
on which shares to buy and sell, but leaves the final
decision to the investor.
 Discretionary dealing, where the stockbroker
ascertains the client's investment objectives and then
makes all dealing decisions on the client's behalf.

17. Contd…
Similar roles
Roles similar to that of a stockbroker include
investment advisor and financial advisor.
 A stockbroker may or may not be also an
investment advisor, and vice versa.

18. 3.Non-Banking Financial
Corporation
 Non-bank financial companies (nbfcs) are financial
institutions that provide banking services without
meeting the legal definition of a bank,
 i.e. One that does not hold a banking license.
 These institutions are not allowed to take deposits
from the public.

19. Contd…
 Nonetheless, all operations of these
institutions are still exercised under bank
regulation.
 However this depends on the jurisdiction, as
in some jurisdictions, such as New Zealand,
any company can do the business of banking,
and there are no banking licenses issued.

20. Banking services
 Loans and credit facilities
 Private education funding
Retirement planning
Trading in money markets
Underwriting stocks and shares

21. Credit Union
• A credit union is a cooperative financial institution that is
owned and controlled by its members and operated for the
purpose of promoting thrift, providing credit at reasonable
rates, and providing other financial services to its members.

22. Differences From Other Financial Institutions
• Credit unions differ from banks and other financial institutions in that the
members who have accounts in the credit union are the owners of the credit
union and they elect their board of directors in a democratic one-person-
one-vote system regardless of the amount of money invested in the credit
union.
• Credit unions offer many of the same financial services as banks, often
using a different terminology; common services include: share accounts
(savings accounts), share draft accounts (checking accounts), credit cards,
share term certificates (certificates of deposit), and online banking.
• only a member of a credit union may deposit money with the credit union,
or borrow money from it.

23. Growth Of Credit Cards In India
• During the year to May 23, 2008, the growth rate was 36.5 per
cent. And, for the preceding year, it was 45 per cent.
• This flat growth comes despite an increase in rollover of credit
from around 60 per cent a year ago to around 65 per cent
now.
• Banks, already on a culling spree, have cancelled nearly 3
million credit cards in 2008-09.
• ICICI Bank, which has the largest credit card base in the
country.

24. TYPE OF CARDS…
• Credit Cards
• Charge Card
• Debit Cards
• Co-branded Cards
• In Store Cards.
• ATM cards

25. Credit Card Usage by Country

26. INVESTMENT FUND
• India investment funds are one of the most
preferred ways through which one can reap in
profits and enjoy that financial stability in the
long run.
• Types of investment funds.
1. Open ended investment fund.
2. Close ended investment fund.

27. INVESTMENT FUNDS
• Some of the well known companies which offer
various kinds of India investment fund are:
• ICICI Prudential
• HDFC Prudence Fund
• HDFC MIP
• Escorts Liquid Plan
• Junior Bees
• Birla Sun Life
• Franklin India Index

28. Thank You