The document summarizes the banking, financial services, and insurance (BFSI) sector in India. It discusses the history and growth of banking, financial services, and insurance in India. It also describes the structure and future prospects of the BFSI sector, which is an important industry in India and expected to experience continued growth.

1. Banking
Financial
Services
Insurance
Presented By-
Surendra Singh Bisht

2. BFSI SECTOR
• Banking, financial services and insurance (BFSI) is an
industry term of art for companies that provide a range
of such products/services.
• Banking may include core banking, retail, private,
corporate, investment, cards and the like.
• Financial services may include stock-broking, payment
gateways, mutual funds etc.
• Insurance covers both life & general insurance.

4. BANKING
• The Indian banking industry has its foundations in the 18th
century,
• The General Bank of India(1786) & Bank of Hindustan(1770)
are first Bank in India
• The Reserve Bank of India, India's central banking authority,
was established in April 1935, but was nationalized on January
1, 1949
• In 1949, the Banking Regulation Act was enacted which
empowered the Reserve Bank of India (RBI) "to regulate,
control, and inspect the banks in India".
• More than 26 nationalise banks and private banks in india
• State bank of india is the largest bank in india

5. STRUCTURE OF BANKING INDUSTRY
IN INDIA

6. GROWTH AND FUTURE PROSPECTS
• As per IBA-FICCI-BCG the Indian banking industry
is set for an exponential growth with its assets size
from $1,350 bn.(2010) to $28,500 bn.(2025)
• Total bank credit grew at 15.9 per cent, while total
deposits growth was 14.3 per cent as at end
September 2012
• Indian banks face the prospect of retirement of nearly
55 per cent of their people so here huge opportunity
for employment
• New banking license

8. FINANCIAL SERVICES
• The history of Indian financial markets spans back 200 years,
around the end of the 18th century
• India financial market comprise of the primary market, FDIs,
alternative investment options, the pension sectors, asset
management segment as well.
• One of the oldest across the globe and is definitely the fastest
growing and best among all the financial markets of the
emerging economies.

9. CONTINUE….
• The capital market of India initially developed
around Mumbai; with around 200 to 250
securities brokers participating in active trade
during the second half of the 19th century.
• India has a strong financial regulatory system,
administered by Reserve Bank of India (RBI) and
supported by securities and exchange board of
India (SEBI), which govern capital markets and
mutual funds, among other financial institutions

10. STRUCTURE OF FINANCIAL SERVICES
IN INDIA

11. GROWTH AND FUTURE PROSPECTS
• Large proportion of India’s population has limited access to bank
credit.
Market • Unorganized money lending is a general practice in micro-credit.
Expansion • High level of professionalism, more transparency and low
interest rates brought in by organized microfinance firms, is
expected to expand the market.
• High GDP growth rate, driven by significant corporate earnings,
Favorable is expected to create the need for more intermediaries in the
capital market.
Growth
• Lower penetration of the retail investor segment in the capital
Dynamics markets offers a significant opportunity, given the increasing per
capita incomes.
High • India’s high savings rate offers significant opportunity to
channelize resources into the financial markets.
Saving
• RBI projects India’s gross domestic savings to be 34 per cent in
Rate FY11, which is likely to increase to 35.3 per cent by FY12.

13. INSURANCE
• In 1818, when Oriental Life Insurance Company was
started by Anita Bhavsar in Kolkata to cater to the needs
of European community.
• In 1870, Bombay Mutual Life Assurance Society
became the first Indian insurer.
• In the year 1912, the Life Insurance Companies Act and
the Provident Fund Act were passed to regulate the
insurance business.
• The oldest existing insurance company in India is the
National Insurance Company Ltd., which was founded
in 1906.
• Currently India is a US$41 billion industry.

14. CONTINUE…..
• The Insurance Act of 1938 was the first legislation governing
all forms of insurance to provide strict state control over
insurance business.
• The Govt. of India introduced the Insurance Regulatory and
Development Authority Act in 1999, thereby de-regulating the
insurance sector and allowing private companies.
• Foreign investment was also allowed and capped at 51%
holding in the Indian insurance companies.
• In 2006, the Actuaries Act was passed by parliament to give
the profession statutory status on par with Chartered
Accountants, Notaries, Cost & Works Accountants,
Advocates, Architects and Company Secretaries.
• A minimum capital of US$80 million(Rs.400 Cr.) is required
by legislation to set up an insurance business.

15. STRUCTURE OF INSURANCE SECTOR
IN INDIA
Insurance
Industry In
India
Life General
Insurance Insurance
Motor Fire Health Marine
Insurance Insurance Insurance Insurance

16. LIFE INSURANCE
• The Government of India issued an Ordinance
on 19 January 1956 nationalising the Life
Insurance sector
• Life Insurance Corporation (LIC) absorbed
154 Indian, 16 non-Indian insurers as also 75
provident societies—245 Indian and foreign
insurers and came into existence in 1956
• Today 1 public and 23 private life insurance
companies operating in India.

17. GENERAL INSURANCE
• In 1972, the general insurance sector was to be
nationalized with effect from 1 January 1973.
• At that time107 insurers were amalgamated and
grouped into four companies, namely-
New India Assurance Co Ltd (NIACL),
Oriental Insurance Company Ltd (OIC),
United India Insurance Co Ltd (UIIC)
National Insurance Company Ltd (NIC).
• Today there are 27 (4 public and 23 private) general
insurance companies including the ECGC and
Agriculture Insurance Corporation of India are
operating in India

18. GROWTH AND FUTURE PROSPECT
• According to BRIC data life insurance industry is
estimated to grow at a compounded annual
growth rate (CAGR) of 14.1 per cent
• Life insurance industries reach US$ 111.9 billion
in 2015 from US$ 66.5 billion in 2011
• The Indian health insurance industry is expected
to grow at a CAGR of 37.2% from FY’2011 -
FY’2016 second largest in insurance sector.
• Currently, in India approx. two million people
(0.2% of the total population of above1 billion)
are covered under mediclaim

19. IT IN THE (BFSI) SECTOR IN INDIA.
• BFSI sector contributed to 11.1% of total
spending for IT in India, or about $3.4 billion.
• Indian capital market is highly depend on IT
• Innovative products like virtual debit cards and
services like branchless and mobile
banking require a mammoth IT infrastructure.
• Insurance sector is increasing its footprint
including mobile, internet and E-Insurance
accounts.

20. INDIAN BFSI SECTOR HAS HUGE
POTENTIAL
• The BFSI sector certainly offers a ray of hope to fresh
graduates who are ready to take a plunge in the industry.
• Companies are also going all the way to encourage
fresher's, by assigning challenging projects in diverse areas
to develop their skills.
• Entry level executives should look forward to an extremely
fast paced challenging enterprising and remunerative career
in the BFSI sector.
• In the context of the challenging global economic
environment, the Indian financial sector has remained
relatively resilient.
• Expansion within the sector which will not only create new
job opportunities for young talent, but will also offer a
major scope for skilled, knowledgeable and experienced
workforce