FINANCIAL

SERVICE
ANALYSIS
Sushant Tiwari (18)
Muskan Jain (58)
Atul Raj (64)
Hemant Lamkane (71)
Ritesh Bhanuse (85)
INTRODUCTION

India has diversified financial sector undergoing rapid ex

pansion, both in terms strong growth of existing financial servi
ce firms and new entities entering the market.

The Indian Financial Sector Includes:

• Commercial Banks.
• Insurance Companies.
• Non-Banking Financial Companies.
• Co-operatives.
• Pension Funds.
• Mutual Funds.
• Other Small Financial Entities.
Importance of Financial Sector
• The Financial services are the economic services provided by the finance ind
ustry, which encompasses a broad range of businesses that manage money,
including banks, credit card, insurance, accountancy companies, stock broker
age, investment funds, individual managers and some government s
ponsored enterprises.
• The financial services industry comprises of companies who specialize in acti
vities such as insurance, lending, investing and securities trading and issu
ance. Firms in the financial services industry specialize in managing money a
nd are world leaders when it comes to equity market capitalizations and earning
s.
• The financial services industry helps in smooth transition of money from e
ntities with extra funds to those who are in needs of funds.
• Several types of companies offer financial services to the general public, alth
ough few companies engage in multiple consumer financial activities.
The financial services are :
1) Banking 2) Mutual funds 3) Insurance
 Financial Services In India
• GROWING DEMAND
Rising income is driving the demand for financial services across income brackets.

• INNOVATION
Emerging digital gold investment options. Platform for infra debt financing the
government plans to make a Rs 6000 Cr. equity investment in the debt platform
of the National Investment and Infrastructure Fund.

• POLICY SUPPORT
International Financial Services Centre Authority (Banking) Regulation 2020 are
expected to drive and facilitate the constituents operation in the IFSC and help th
e sector reach its potential.

• GROWING PENETRATION
Credit, insurance and investment penetration is rising in rural areas. HNWI
participation is growing in the wealth management segment .
BANKING
Financial sector in India is predominantly a banking se
ctor with commercial banks accounting for more than 6
4% of the total assets held by the financial sector.

IMPORTANCE OF BANKING SECTOR IN INDIA

• Providing stability to a country economically.
• Getting out of depression or inflation.
• Co-ordinate among all units.
• Accurate Investments.
• Capital Formation.
• Creation of Money.
• Encourage Saving.
• Acceptance of Deposits.
 TYPES OF BANKS
PUBLIC SECTOR PRIVATE SECTOR FOREIGN BANK

SBI HDFC CITI

In terms of market HDFC Bank is the Citi Bank is one of
cap, SBI is the largest private the best
largest public sector sector bank in foreign bank in
bank in India. SBI India, considering the India. It has the
has a market share market lowest NPA in
of  23 %. SBI has capitalization India. Citi
presence in more factor. HDFC bank Bank has the
than 36 has a market market share
countries. share of 8.5%. of 22%.
AWARDS

State-owned State Bank of India (SBI) and private m

ajor HDFC Bank have jointly bagged the 'B
ank of the Year' award at Business Today-Money To
day Financial Awards 2020. While this is the second
time SBI has won the award, for HDFC Bank, it wa
s sixth year running.

HDFC has also bagged the 'Best Large Bank' and 'Be
st Fintech Engagement' award. On the other han
d, SBI won the award for 'Best in Rural Outr
each‘.
MUTUAL FUNDS
• Common pool of funds
contributed by investors and i
nvested in accordance to the ob
jectives.
• Investments are held in a trust of
which the investors alone are the j
oint beneficial owners.
• Trustees oversee the
management by investment m
anager.
HOW MUTUAL FUND WORKS ?

• Pool of investors money.

• Invested according to
pre-specified investment
objectives.
• Benefits accrue to those that
contribute to this pool.
• There is thus mutuality in the
contribution and the benefi
t.
• Hence the name ‘mutual’ f
und.
CLASSIFICATION
INSURANCE
The insurance industry can be broadly divided in
to two categories - life insurance and general ins
urance. Life insurance relates to risk cover for life or
disability/accidents of an individual or a group of
individuals while general insurance or non-life ins
urance covers risk to other insurable assets such as
property, vehicles, health etc.

The insurance sector is regulated by the I

nsurance Regulatory and Development Authority of I
ndia (IRDAI). The IRDAI opened up the ins
urance sector for private participation in 2000. From
a single insurer industry two decades ago, today th
e market is thriving with 24 life insurance and 34
general insurance.
Govt. Insurance Schemes

• Pradhan Mantri Jan Suraksha Bi

ma Yojana

• Pradhan Mantri Jeevan Jyoti Bi

ma Yojana

• Atal Pension Yojana

• Ayushman Bharat Yojana

The Government of India has taken number
of initiatives to boost the insurance industry. S PARAMETERS SBI LIFE HDFC LIFE
INSURANCE
ome of them are as follows:
• As per Union Budget 2019-20, 100%
foreign direct investment (FDI) was SHARE 914.00 703.50
permitted for insurance intermediaries. PRICE 

• In December 2020, Uttarakhand MARKETCAP 91406.37 142154.91

announced its plan to offer ‘COVID-19 (In Cr)
Insurance Policy’ to international tourists. A
proposal request has been submitted to the
NO.OF 28 million  61 million 
Union Tourism Minister, Mr. Prahlad Pate CUSTOMERS
l, to introduce special life insurance policie
s for foreign tourists.
• On December 03, 2020, as a one-time FUTURE Corona Click 2
INVESTMENT  Rakshak Protect
measure, IRDAI announced that it has a policy, Corona 
uthorized up to 5% of the existing p SBI Life Kavach.
insurance Co.
remium rates to change the base pr Ltd.
emium. This move was to ensure via
bility and longevity for smooth tra
nsformation of the existing goods.
RETAIL MIX

SBI [HDFC]
PRODUCT Personal, Rural, Corporate, International,
Agriculture Banking.
Personal, Enterprise, Loan, Cards sector.

Follows guidelines given by RBI. Follows guidelines given by RBI.

PRICE

PLACE 24000 Branches in INDIA. 50 thousand plus ATMs.

Present in 36 countries with 191 overseas branches.
5500 branches in INDIA.
Over 14000 ATMs.

Print media, Audio visual media Advertisements, Hoardings, Posters,

PROMOTION (radio, newspaper) Shareholdings.
MARKET SIZE
• As of November 2020, Assets under management managed by the mutual fu
nd industry stood at Rs 30 lakh crore, inflow in India’s mutual fund schemes via t
he systematic investment plan rout reached Rs. 82,453 crores in 2019. Equity
mutual funds registered a net inflow of Rs 804 trillion by the end of December
2019.

• Another crucial component of India’s financial industry is the insurance ind

ustry. Insurance industry has been expending at a fast pace. The total first year p
remium of the insurance companies reached Rs.2.59 lakh crore in FY20.
• Furthermore, India’s leading bourse Bombay stock Exchange (BSE), setup a join
t venture with Ebix Inc to build a robust insurance distribution network in the co
untry through a new distribution exchange platform.
Investment / Development

• In November 2020, LIC Took initiatives to facilitate quicker proposal co

mpletion by launching digital application –ANANDA.
• In November 2020, Paytm reported 2x growth in digital gold
transactions in the last six months, New customers have increased 5
0% since the beginning of the financial year and the average order val
ue has increased by 60%.
• In November 2020 the RBI announced establishment of its Innovation H
ub. In order to encourage access to financial services and good and fost
er financial inclusion, this initiative would create an ecosystem.
• In October 2020 unified payment interface (UPI) recorder 2.07 billion
transactions worth Rs 3.86 lakh crore (US$ 10 billion).
Governmental Initiatives

• In November 2020, the union cabinet approved the government’s e

quity infusion plan for Rs. 6000 crores in the NIIF Debt platform funded
by the National Investment and Infrastructure Finance Limited (NIIF) c
onsisting of Aseem infrastructure Finance Limited (AIFL) and NIIF infra
structure Finance Limited.

• In November 11,2020. The Cabinet committee on Economic Affaires

approved continuation and revamping of the scheme for financial su
pport to public private partnership (PPPs) in ‘Infrastructure viability Gap Fu
nding (VCF) scheme’ until 2024-25 with a total outlay of Rs. 8100
crore.
THANK
YOU