Present Trends of Financial Sector in India

Table of Contents S. No. Content Page No.

1 About Financial Sector 4-5

2 Indian Insurance Sector 6

3 Future of Indian Insurance Market 7

4 Structure of Banking 8

5 Market Size 9-10

6 Growth Driver of Banking System 11

7 Job Description 13

8 Desired Candidate Personality 14

9 Compensation Plan, Location 15

Present Trends ofFinancial Sector in India

About Financial Sector

• Financial Sector is the backbone of the economy and it is indeed critical to nurture the growth of this important sector in order to ensure sustained growth rate. When the Indian economy was liberalized in the year 1991, a road map was also set forth for financial sector reforms.

• 2nd largest component after trade, hotels, transport and communication all combined together in GDP.

Financial Sector Includes

• Financial Services : 1. Capital Market2. Forex Market3. Asset Management4. NBFCs (Non-Banking Financial Institutions)5. MFIs (Microfinance Institutions)

• Banking Sector• Insurance Sector

Indian Insurance Sector

• The US$ 41-billion Indian life insurance industry is considered the

• 5th largest life insurance market, and • Growing at 32-34%• The government is likely to reintroduce the Insurance Bill

which proposes to increase the FDI cap in private sector insurance companies from 26 % to 49%.

• The health insurance market stood at around us $ 1.5 billion in 2008-09 and is expected to grow to us $ 9 billion by 2016-17.

Future of Indian Insurance Market

Indian Insurance Sector ready to tap Rural India• A large part of rural India is still untapped due to poor

distribution, large distances & high costs relative to returns

• Assocham stated that semi-urban areas would have a share of US$ 35 Billion and urban areas would account for US$ 25 Billion in the US$ 60 Billion industry.

• Life insurance market in semi-urban and rural territories is expected to rise to US$ 20 Billion mark in the upcoming four years from the existing value of less than US$ five Billion.

Structure of the Banking Industry

Reserve bank of India

Financial institutions

Non-banking financial

Institutions (NBFCs)

Banks

Scheduled Commercial banks

Public Sector Banks (27)

Private Sector Banks (22)

Foreign Banks (31)

Regional Rural Banks

(84)

Co-operative Banks

Urabsn Co-opeartive

Banks (1,721)

Rural Co-operative

Banks (98,061)

Market size

2006 2007 2008 2009 20100.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

Domestic Credit as % of GDP

USA Thailand Malaysia China India

India’s banking sector is dominated by public sector banks, i.e. 65% of the Gross credit suppliers.

The Bank credit market in India is lower than the global benchmark on account of lower penetration in the rural areas and tier-3 cities. Higher credit % reflects higher financial inclusion. This clearly reflects that lower PCI of rural areas has not attracted banks to service them.

World average: 169.8%

NBFM-Retail5% HFCs

4%

NBFM-Infra6%

Public Banks65%

Private Banks16%

Foreign Banks4%

Credit composition of Financial Sector Entit-ies

2007 2008 2009 2010 2011

De-posits

2696937 3320062 4063201 4746920 5616432

Ad-vances

1981236 2476936 2999924 3496720 4298704

CD Ratio

0.73462450179592

6

0.74605112796086

4

0.73831543160183

4

0.73662922484474

2

0.76537987106405

500000

2500000

4500000

Advances-Deposits of All SCBs

Rs. C

rore

Market size and Cost of Intermediation

2006 2007 2008 2009 2010 20110.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%

0

100

200

300

400

500

Advances-Deposits trend in Public Banks

Advances DepositsAdv. growth% Dep growth%

In 1

0,00

0 Cr

ore

2006 2007 2008 2009 2010 20110

20

40

60

80

100

120

140

0%

5%

10%

15%

20%

25%

30%

35%

Advances-Deposits trends in Pvt Banks

Deposits AdvancesDeposit Growth % Advances Growth %

In 1

0,00

0 Cr

ores

Cost of Intermediation still remains higher than other countries due to small ticket size, regulatory cost associated with SLR, CRR and PSA (Priority Sector Advances) on account of Hawkish monetary policy to contain recent inflationary pressure.

India Malaysia Thailand Singapore China0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Spread of Bank Lending and Deposit Rates

20072011

• Large number of micro, small and medium enterprises (MSMEs) with significant growth opportunities in their respective sectors.

• Large amount of money is remitted by NRI.• Stringent regulatory framework like RBI• Adoption of best practices from other countries• Retail Banking• Technological Development for Core Banking

Growth Drivers for Banking System

Corporate sales Exe.

(Selection Perspective)

Job Description • Conduct market research and collect the data of the company in a respective area.• • Conduct cold calling and maintain the data of the same.• • Create a database of SME accounts and service them.• • Responsible for the sourcing of materials from the SME accounts.• • Adhere to day to day summing up of accounts and reporting the same to their reporting Manager.• • Establishing and maintaining new and established client relationships.

• Responding to sales inquiries from new and existing customers.

• Maintaining the company’s contact database management with up-to-date contact, accurate and activity details

• Preparing a variety of sales status reports (monthly/ weekly etc.) that include activity, follow-up, closings, and adherence to targets

Desired Candidate personality

• Good interpersonal and communication skills

• Tenacious work attitude

• Self-motivated and flexible to work under negligible supervision

• Excellent problem solving skills

• Able to persuade and convince others and should have negotiation skills to deal with different kinds of customers

• An enthusiastic, confident, problem – solving and flexible mindset is important

• Having an emotional and sympathetic approach to people and their problems is an advantage in this profession

• Good computer application skills such as Microsoft Word, Excel, PowerPoint etc.

• High emotional stability

• Capable of agile cogitating to give quick and accurate response to questions

Compensation Plan- The compensation plan will include a base salary of 2.25 lac p.a.

Location – Delhi/NCR