Industry Analysis of Indian Banking and Financial Services Essay

1793 Words 8 Pages
SECTOR-1 (BANKING & FINANCE INDUSTRY SECTOR)
INDUSTRY ANALYSIS:

INRODUCTION:
Indian banking and financial services industry is strong and robust among the world economies. Over the previous years, financial markets have witnessed a significant deepening and broadening of services with the introduction of new instruments and products in banking, capital markets space and insurance.
Insurance Sector:
The life insurance sector collected new business premiums of Rs 11,742.7 crore (1.92 billion USD) for April-May 2013, as per the data from Insurance Regulatory and Development Authority. Life insurers collected Rs 1,07,010.7 crore (17.47 billion USD) of new premiums for the financial year ended March 2013.
Banking Services:
According RBI’s
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Indian merger and acquisition witnessed substantial levels of deal activity in the first 9 months of year 2013. 377 deals amounting to 23.9 billion USD happened, as per the survey by tax advisory firm Grant Thornton.
Foreign Institutional Investors (FIIs) in India
Investments in Indian markets through participatory notes increased to 23.74 billion USD by end of July 2013, as per the data released by SEBI. P-Notes allow high net-worth individuals, hedge funds and other FI’s to invest in Indian markets through the registered FIIs. The FIIs investments via P-Notes registered a growth of 11.45% in July 2013 as compared to 10.93% in June 2013. Overseas investors infused 2 billion USD in the Indian stock market in month of September 2013. Since 2013, they pumped a 13.7 billion USD in equities.
Road Ahead
IRDA estimated that the insurance business in India would touch Rs 4 lakh crore (65.32 billion USD) by the end year 2014. The regulator is considering in bringing out the norms for sub-brokers of insurance products too.

Porter's 5 Forces Analysis
Threat of New Entrants:
• Internet bill payments.
• Banks are fearful by the payments business, as it is a good source of fee-based revenue.
• Threat from other companies offering the financial services.
Power of Suppliers:
• The suppliers of capital may not pose serious threat, but the suppliers luring away human

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