NCRD’s STERLING INSTITUTE OF MANAGEMENT

STUDIES

Presentation on Financial Management

TRENDS AND DEVELOPMENT IN FINANCIAL

SECTOR
Presented By

Aniket Khorgade(74)

Dinesh Bhatti(64)

Ganesh Raskar(82)

Kuldeep Gawande(68)

Subodh Khedekar(73)
INRODUCTION
A financial system, which is inherently strong,
functionally diverse and displays efficiency and
flexibility, is critical to our national objectives of
creating a market-driven, productive and
competitive economy.
A mature system supports higher levels of
investment and promotes growth in the economy
with its depth and coverage. The financial system in
India comprises of financial institutions, financial
markets, financial instruments and services. The
Indian financial system is characterized by its two
major segments - an organized sector and a
traditional sector that is also known as informal
credit market.
Growth And Development Of Financial
sector
Growth of financial sector in India is 8.5%.

Reserve Bank in India played dynamic role in

growth of Financial sector of India.
Growth Depends On following Sector.
• BANKING SECTOR
Total asset value of banking sector in India is US$ 270 Bn.
Total deposit is nearly US$ 220 Bn.
Internet Banking and Core Banking made banking
operation more user friendly.

CAPITAL MARKET
Introduction Of latest IT Resources in stock
exchange(NSE).
Privatization of stock exchange.
Insurance sector
• Liberalization played important role to introduce many
foreign companies in India.
• Foreign company are making tie-ups with Indian
insurance company (TATA-AIG,BHARTI-AXA,Birla-
sunlife,BAJAJ-Allianz,ICICI-LOMBARD).
• IRDA (Insurance Regulatory And Development Authority)
is the Regulatory body keeps watch on these sector.
Strong growth drivers…
…underpinned by strong infrastructure
growth…
…though certain areas require close
attention
Important achievements in :

• Financial Market
Private sector played an important role.
They Grew Rapidly in commercial banking and asset
management business.
• Regulators:
Govt. accepted the important role of regulators
1. SEBI
2. IRDA
3. RBI
Capital Market

• Number of share holder in india is estimated at 25 Mn.

• India will be an attractive and emerging market with
tremendous potential.
TRENDS:
• Commercial Banks
In 1969 most of the major bank were nationalized.
Indian Bank stood strong there was no public panic at all at the
time of economic melt down(2008-2009).

• Technology in banking
Introduction of latest software in banking helps to increase the
function of bank very effectivly.
Introduction of ATM’s
Core banking
Shared payment network system.
Cross Selling
Recently in retail banking Cross selling concept has been introduced.
If Bank sell an asset product (housing /car /educational loan) to its account holder it is cross selling.

EDUCATIONAL LOAN:
In 2009 educational loan amounting to Rs 24000 Crore had been disbursed to 16 lakh student across country.
It is estimated that the educational loan may touch rs 50000 crore in 2015.
Govt has decided not to charge interest on educational loan for those family whose income is less than 4.5 lac per
annum.
 REGIONAL RURAL BANK(RRBS)
• The main objective of RRB is to provide credit to small
and marginal farmer who needs funds.
• Today we have 104 RRBS sponsored by 29 Banks.

Bank assurance :
• The concept bank assurance is French origin.

• Motives Behind bank assurance

• For bank-product diversification
• Insurance company-market penetration
• For Customer-Bonanza in terms of reduce price.
Micro Insurance
• LIC launched first micro insurance product, captioned
“jeevan madhur”.
• In sept 2009 LIC also launched second micro inssurance
product named jeevan mangal.
• Targeted customer
1. Factory worker
2. Domestic Servant
3. Rickshaw Puller and other low incoming people.
Salient Feature
1. Low premium and Higher Risk cover.
Mutual Funds :
• A mutual fund is a professionally-managed type
of collective investment scheme that pools money from
many investors to buy securities(stocks, bonds, short-
term money market instruments, and/or other securities)

• Mutual funds plays very important role by mobilizing

saving and investing them in capital market.
• The main objective of investing in mutual fund scheme is
to diversify risk.
• SEBI regulating the Indian capital market.