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Growth prospects in Financial Sector

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  • 1. Present Trends ofFinancial Sector in India

2. Table of ContentsS. No. Content Page No.1About Financial Sector 4-52Indian Insurance Sector63Future of Indian Insurance Market74Structure of Banking 85Market Size9-106Growth Driver of Banking System117Job Description138Desired Candidate Personality149Compensation Plan, Location15 3. Present Trends ofFinancial Sector in India 4. About Financial Sector Financial Sector is the backbone of the economyand it is indeed critical to nurture the growth ofthis important sector in order to ensure sustainedgrowth rate. When the Indian economy wasliberalized in the year 1991, a road map was alsoset forth for financial sector reforms. 2nd largest component after trade, hotels,transport and communication all combinedtogether in GDP. 5. Financial Sector Includes Financial Services : 1. Capital Market 2. Forex Market 3. Asset Management 4. NBFCs (Non-Banking Financial Institutions) 5. MFIs (Microfinance Institutions) Banking Sector Insurance Sector 6. Indian Insurance Sector The US$ 41-billion Indian life insurance industry isconsidered the 5th largest life insurance market, and Growing at 32-34% The government is likely to reintroduce the Insurance Billwhich proposes to increase the FDI cap in private sectorinsurance companies from 26 % to 49%. The health insurance market stood at around us $ 1.5billion in 2008-09 and is expected to grow to us $ 9 billionby 2016-17. 7. Future of Indian Insurance MarketIndian Insurance Sector ready to tap Rural India A large part of rural India is still untapped due to poordistribution, large distances & high costs relative to returns Assocham stated that semi-urban areas would have a share ofUS$ 35 Billion and urban areas would account for US$ 25 Billionin the US$ 60 Billion industry. Life insurance market in semi-urban and rural territories isexpected to rise to US$ 20 Billion mark in the upcoming fouryears from the existing value of less than US$ five Billion. 8. Structure of the Banking IndustryReserve bank of India Non-banking Financial financialBanksinstitutions Institutions (NBFCs) Scheduled Commercial Co-operative Banks banksRural Co-RegionalUrabsn Co-Public Sector Private Sector Foreign Banksoperative Rural Banks opeartive Banks (27) Banks (22)(31) Banks(84) Banks (1,721)(98,061) 9. Market size Advances-Deposits of All SCBsCredit composition of Financial Sector6000000 Entities50000004000000NBFM-InfraRs. Crore6%300000020000000%Public Banks100000065%0HFCsSCBs2007 2008 2009 20102011 4% 85%Deposits2696937 332006240632014746920 5616432 Foreign BanksAdvances 1981236247693629999243496720 42987044%Private BanksCD Ratio73.5%74.6%73.8%73.7% 76.5%NBFM-Retail 16% 5%Domestic Credit as % of GDP300.0% Indias banking sector is dominated by250.0%public sector banks, i.e. 65% of the Gross200.0%credit suppliers.150.0%The Bank credit market in India is lower100.0%than the global benchmark on account of 50.0%lower penetration in the rural areas and 0.0% tier-3 cities. Higher credit % reflects higher 2006 2007200820092010financial inclusion. This clearly reflects thatUSA ThailandMalaysia ChinaIndia lower PCI of rural areas has not attractedbanks to service them.World average: 169.8% 10. Market size and Cost of Intermediation Advances-Deposits trend in Public BanksAdvances-Deposits trends in Pvt Banks35.00% 50014035%30.00%12030% In 10,000 Crores 400 In 10,000 Crore25.00%10025%20.00% 300 8020%15.00% 200 6015%10.00% 4010% 100 5.00% 205% 0.00% 000% 2006 20072008 20092010 20112006 2007 2008 2009 20102011 AdvancesDepositsAdv. growth%Dep growth% DepositsAdvances Deposit Growth %Advances Growth % Spread of Bank Lending and Deposit Rates6.00%Cost of Intermediation still remains higher than5.00% other countries due to small ticket4.00% size, regulatory cost associated with SLR, CRR and3.00%PSA (Priority Sector Advances) on account of 2007Hawkish monetary policy to contain recent2.00%2011inflationary pressure.1.00%0.00% IndiaMalaysiaThailandSingaporeChina 11. Growth Drivers for Banking System Large number of micro, small and mediumenterprises (MSMEs) with significant growthopportunities 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 12. Corporate sales Exe.(Selection Perspective) 13. 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 reportingManager. Establishing and maintaining new and established client relationships. Responding to sales inquiries from new and existing customers. Maintaining the companys contact database management with up-to-datecontact, accurate and activity details Preparing a variety of sales status reports (monthly/ weekly etc.) that includeactivity, follow-up, closings, and adherence to targets 14. 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 withdifferent 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 anadvantage 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 15. Compensation Plan- The compensationplan will include a base salary of 2.25 lac p.a.Location Delhi/NCR