Priyanka Choradia

Meghna Lalwani
Sajal Maheshwari
Deeksha Grover
Samridhi singhania
Tanvi
Tanya
Roopali
Chahak Sharma
Simple Sharma
Raksha Dhingra
Khushbu
Financial services refer to services
provided by the finance industry.
In a broad sense it means mobilizing and
allocating savings.
The finance industry encompasses a broad
range of organizations that deal with the
management of money.
Example:- banks, credit card companies,
insurance companies, consumer finance
companies, stock brokerages, some
government sponsored enterprises.
Customer-Specific
Intangibility
Tendency to Perish
Concomitant
People based services
Intangibility:- Not visible in nature
Inseparability:- Unique feature of service
Heterogeneity:- Cant be uniform for all
Perishability:- can not be stored
Advisory
Labour Intensive
Fluctuation in demand as per economic activity
Role of FINANCIAL
SERVICES in Economic
Growth
India's services sector has always served the Indian
economy well, accounting for nearly 57 per cent of
the gross domestic product (GDP). Here, the
financial services segment has been a significant
contributor.
Instruments for growth &
development

Mobilize resources for efficient allocation for
productive investment, including through risk
diversification and risk management
(maturity transformation).
Facilitate the exchange of goods and
services by reducing transaction costs,
including by providing insurance against
low probability but high- cost events.
Improve capital allocation through the
production of ex ante information about
investment opportunities.


Increase investors willingness to finance
new projects through ex post
monitoring and corporate governance.
Share in top 10 Export Growth Rate (%) 2010 2005-09
2010
European Union (27) 53.0 8 1
United States 23.9 9 5
Switzerland 23.6 4 -2
China 6.4 1 6 12
Singapore 5.1 20 31
Japan 4.9 -1 -25
India 1.5 34 64
Canada 2.4 7 31
Covers a wide range of activities which can be
broadly classified into two types:
Traditional
Activities

Modern Activities
o Renders a wide range of services encompassing both
capital and money market.
o It can be grouped under two heads: -
i. Fund Based Activities
ii.Non-Fund Based Activities
Fund Based
Activities
Non-Fund Based
Activities

Includes underwriting or
investment in shares,
debentures, bonds etc.


Managing die capital issue

Dealing in security market
activities etc.

Arrangement of funds
from financial inst. etc.
o Besides traditional services some modern services are also
provided by them most of which in the nature of non-fund
based activities. Some of modern services provided by
them are:-
i. Rendering project advisory services
ii. Planning of M&A and assisting for their smooth
carry out
iii. Guiding corporate customers in capital
restructuring
iv. Acting as trustee to the debenture holders etc.
MUTUAL FUND
In the public & private sector have been garnering savings for investment in
the primary secondary & debt market.
LONG TERM FINANCE
It is for the period of more than 10 year. Smaller & less well established
enterprises fund leasing an attractive source.
HOUSING FINANCE
This finance raises the welfare of the household that live in it. It is temporary
start up financing in the form of equity capital or loans with return linked to
profit & managerial control.
DEPOSITIRIES
It is a bank for securities ,which are maintained in electronic data from
instead of physical paper certificate.
FORFEITING
It is an alternative source of trade finance mainly for exporters . The delay in
receiving payments from importers act as a hurdle for exporters in expanding
their business.
SBI capital markets limited
ICICI group
PNB housing finance limited
Bajaj capital limited
Birla global finance limited
SBI Capital Market Limited
This happens to be the oldest organizations
in the sphere of capital markets in India.

Established in 1986 in the form of an ancillary
of SBI, they have ranked second in Asia's
Project Advisory services.

The company is a trailblazer in privatization
and securitization.

The subsidiaries of SBI Capital Markets are
SBICAPs Ventures Ltd., SBICAP Trustee
Co.Ltd. and many others.
ICICI Group
It is the wide arena of financial products and
services.

ICICI Group has solutions like Insta Insure, ICICI
Bank immobile etc. providing high class
financial services in all segments of the society.

ICICI Group deals with Mutual Fund, Private
Equity, Securities, and Life Insurance Insta
Banking, online trading , etc.
PNB Housing Finance Ltd.
This company offers premium solutions
for relieving the borrower segment.

The Home Loan Life Insurance Plan of
this has come in conjunction with TATA
AIG, with the lowest premium when
compared to the peers.





Bajaj Capital Limited
It is one of the major financial services
companies in India.

Bajaj Capital offers best investment advisory
and financial planning services.

The services are meted out to the institutional
investors, NRIs, corporate houses, individual
investors, high network clients as well.
Birla Global Finance Limited
This is the subsidiary of Aditya Birla Nuvo Ltd.

This company has operations in the corporate
finance and capital market arena.

An alliance with Sun Life Financial of Canada,
they have given birth to Birla Sun Life Insurance
Co Ltd., Birla Sun Life Distribution Co. and alike.
These are economic services provided by the finance industry
which comprises of :
Deposits taking firms
o Commercial banks
o Credit Unions
o Mutual funds
o Pension Funds
o Investment Companies
Professional Asset Management company
Institutional Investors
Securities firm
o Investment Banks
o Brokers and delays
o Mortgage banks
Commercial banks are like other financial institutions which are
in the business of lending and borrowing of money or credit.

FUNCTIONS :-

Accepting Deposits
Advancing Loans
Discounting bills of
exchange
Agency Services
General Services
Demand or current deposits:
A depositor can withdraw it in part or in full at any time he likes
without notice. It carries no interest.
This is the most important means of earnings for the banks

Giving loans to businessman

But it keeps a fine balance between deposits and loans

Banks profitability depends on this as well.
Discounting Bills of Exchange
Collection of bills, cheques
Collection of dividends, interest, premium
Purchase & sale of shares and debentures
Payment of insurance premiums
Acts as trustee when nominated
Travellers cheques. bank draft
Safe vaults for valuables
Supplying trade information
Economic surveys
Projects report preparation
Bandhan Financial Services to begin banking with 600 branches.
Edelweiss Financial Services acquires Forefront Capital
Management
IBM enters into a six-year agreement with Janalakshmi Financial
Services
Poverty definition immaterial for financial services: Raghu ram
Rajan
Factors Affecting
the supply of
Financial Services
Type of Economy- Different economies with particular biases and
factor endowments tend to put different demands on their
financial sectors and thus affect their structure.
Macroeconomic Shocks- Shocks, which seriously affect an
economys fundamentals, can come in various forms which can
wipe out savings etc.
Political Pressures-This has brought forth a welter of proposals
on capital regulation, liquidity and leverage controls,
governance, and remuneration issues.
Legal and Regulatory Constraints- Generate conflict if the need
to build capital buffers clashes with the need to provide credit
during periods of economic stress.
Individuals-There can be little doubt that individuals can
influence financial development significantly, although care must
be taken to distinguish between those whose reputations stand
out.