Gross Domestic Saving and Investment Household Saving Private Corporate Public sector

Estimation Prepared by Household Saving Financial Assets Physical Assets Private Corporate Public Sector Reserve Bank of India Central Statistical Organization Reserve Bank of India Central Statistical Organization

Decomposition of portfolio of Indian Household: Source RBI Annual Report

 GDS table: Source RBI 2012

Trend of Portfolio composition of Indian Household

Bank Intermediation of financial Savings

2011 Aggregate Deposit of all schedule accounted to

17.3% from 22.1% in 2010 Total Bank Credit decrease from 23.5% in 2010 to 16.1% in2011 Credit Deposit ratio of 2011 -75.5% Priority Sector Lending Target for 2012 - direct and indirect agricultural lending is at 13.5 per cent and 4.5 per cent of adjusted net bank credit Priority Sector to Retain 40 % CRR Oct 2011 was increased by 100 basis points Frb 2012 CRR decline to 75 basis point

CAPITAL MARKETS
Capital market is basically divided into 3 parts i.e. private placement, public issue & Euro issues.

As per Economic Survey 06-07 stock market trading was dominated by Retail Investors.
The share of AUM in equity schemes accounts for 4 % of total market capitalization in 2008. Banks and Insurance Companies (For Life is 25% General is 30 % of Controlled Funds)are the largest investors in the Government Securities. The size Corporate Bond Market is very low as compared to Developed countries like US, Japan, South Korea & UK. As per Govt. ECB policy a Borrower can access ECB only through Automatic(Up to $500million ) & approval route(Beyond $500million)

Corporate Finance and Governance

Ownership Concentration of Indian Promoters in the total shareholding pattern remained unchanged @ 45 to 50% in India.

Five categories of Ultimate owners are: Family, State, Financial Institutions, Corporations & Others.
As per Moodys & ICRA around 40 % of Market Capitalization is family Controlled Indian Business Groups. Some points on Corporate Governance Practice of Indian Companies: 1. Contribution to Strategy 2. Succession planning 3. Risk Management 4. Decision making Process. 5. Penalties for poor Corporate Governance