Twinkle Ppt

8/3/2019 Twinkle Ppt

1/36

Group No.5

Ankita Gada 7422

Nilesh Gaikwad 7423

Dolly Gatta 7424

Hiten Gohil 7427

Gayatri Gowekar 7428

Paridhi Gupta 7429

Twinkle Haria 7430


2/36

The Banking &Insurance Industry of

India


3/36

Introduction History of more than 200 years

Indian Banking Sector has 6th

Rank Globally

General Bank of India in 1786 First Bank


4/36

Types Of Banks

Public sector Banks

Private sector Banks

Co-operative Banks

Development Bank/Financial institutions


5/36

Public sector Banks

Central Bank of India

Corporation BankDena Bank

Bank of India

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank


6/36

Private sectors Banks Old generation private banks

New generation private banks:

ICICI bank IDBI bank Axis bank

Foreign banks operating in India :

HSBC bank CITI bank ABN-AMRO bank Standard charted bank


7/36

Co-operative Banks

IDBI BANK(Industrial Development Bank of India).

IFCI BANK(Industrial Finance Cooperation of India).

APEX Bank.


8/36

Development Banks/Financial

Institutions

These banks are mainly used for developing industries andcountries.

Some Examples-

Federal Bank

HDFC Bank

HSBC ICICI

Bank Indian Overseas Bank

ING Vysya Bank


9/36

FUNCTIONS OF BANKSAccepting Deposits from public/others (Deposits)

Lending money to public (Loans)

Transferring money from one place to another(Remittances)

Acting as trustees

Government business


10/36

The Reserve Bank of India Established on April 1,1935

Nationalized in the Year 1949.

It regulates control credit, issue licenses and functions as bankers ofall banks

Major objectives:-

Regulate the issue of banknote and keeps reserves with a view tosecure monetary stability

To operate the credit and currency system of the country to itsadvantage


11/36

EXPORT IMPORT BANK Established by an Act passed by Indian parliament in

September 1981

Owned by Indian Government

MAIN OBJECTIVE

To provide economic assistance to importers and exporters

To function as a financial institution


12/36

Banking Sector in Budget 2008 Small and Marginal Farmers were relieved from all

Farm Loans

Indira Awas Yojana was brought under the ambit ofpublic sector banks

The Finance Minister also advised the Indian PSUBanks to open 288 branches in minority districts of

India In another Landmark decision Finance Minister said

the ex-banking service men in India would be offeredEmployment Opportunities in Banking sector


13/36

Another major announcement was that Banking CashTransaction Tax would be withdrawn from thefinancial year 2009-10

Moreover Experts are Skeptical about long termbenefits of such Agricultural Loan Waiver as offered

through the Union Budget 2008-09


14/36

Despite Recession, India Gets RecordInflow of Funds

The country is on track to receive as much as $40billion in funds from Indians living overseas, farmore than the World Bank's estimate of $30 billion


15/36

Upcoming Foreign Banks

in India

RBS (Royal Bank Of Scotland Group).

Industrial & Commercial Bank of China.


16/36

Banking Industry VisionReport 2010

Qualitative Growth

Consolidation

Risk and Reward

Technology Social Banking

Regulation


17/36

Problems and Challenges to

the Banking Industry

Lack of product expertise

Lack of distribution expertise

Limited use of technology

Inefficient capital allocation

Competition in market Post office Insurance

Foreign Banks


18/36

Possible Suggestions toOvercome Problems

Technological Advancement

Rural Banking

Improving Risk Management


19/36

CONCLUSION OFBANKING INDUSTRY


20/36

Indian INSURANCEINDUSTRY Overview


21/36

Introduction of Insurance

Insurance may be described as a social device to reduce or eliminate risk of lifeand property. Under the plan of insurance, a large number of people associatethemselves by sharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death,incident, & burglary. Any risk contingent upon these may be insured against ata premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party calledinsurer undertakes in exchange for a fixed sum called premium to pay the otherparty happening of a certain event.

.


22/36

Insurance is a contract whereby, in return for the

payment of premium by the insured, the insurers paythe financial losses suffered by the insured as a resultof the occurrence of unforeseen events.

With the help of Insurance, large number of peopleexposed to a similar risk make contributions to acommon fund out of which the losses suffered by theunfortunate few, due to accidental events, are madegood.


23/36

History of the Insurance Sector Milestones of the life insurance business in India are:

1912

1928

1938

1956


24/36

General Insurance Business Milestones of the General Insurance Business are:

1907

1957

1968

1972


25/36

Major reforms In 1993, Malhotra Committee was set up.

In 1994, the committee submitted a report suggestingrecommendation like-

Structure

Government stake should be brought down to 50% Competition

Private companies should have minimum rs.1 billion paid upcapital

Foreign companies should be allowed to enter


26/36

Major reforms

Regulatory body

An insurance regulatory body should be set up.

Customer service

LIC should pay interest on delay in payment

Computerization of operation to be carried out inindustry.


27/36

Insurance Regulatory and

Development Authority (IRDA)

Insurance Regulatory and Development AuthorityAct,1999

IRDA was established on 19th April, 2000

Operating condition

Should follow Companies Act ,1956

Equity share holdings of foreign co. should not exceed26%

Companies sole purpose should be insurance business

Minimum paid capital for life and general insurance is Rs.

100 crores and that of reinsurance is Rs.200 Crores


28/36

Present scenario of the industry Market size went up to US$ 47.89 billon in 2007, from

US$ 21.11 billon in 2000.

Market increased from just 1 company in last decade to22 life insurance companies.

Enter into Semi-urban and Rural market.

Country's insurance sector is likely to experience 17%

growth this year. 78% people aware of insurance, out of which only 24%

own a policy.


29/36

Global companies

Companies Base country Type of insurer

QBE Holdings (AAP) PtyLimited

Australia General Insurance

Aetna US Health insurers

CIGNA US Health insurers

Bupa UK Health insurers

Ace US Life and Non-Life sectors


30/36

Functions of insurance

Primary Functions

Secondary Functions

Other Functions


31/36

Primary Functions Provide Protection

Collective Bearing of Risks

Assessment of Risk


32/36

Secondary Function Prevention of losses

Small Capital to Cover Larger Risk

Development of Larger Industries


33/36

Other Functions

Means of Savings And Investment

Source of Earning Foreign Exchange

Risk Free Trade


34/36

Recent Trends & Opportunitiesin the insurance industry

Opportunities

Rural-Urban Mix


35/36

CONCLUSION

Insurance Sector Futuristic Growth ASSOCHAMhas started that Indias Insurance Sector is likely toreach US $ 46.25 billion by 2010


36/36

Thank you

Date post:	07-Apr-2018
Category:	Documents
Upload:	poorvabhirud
View:	223 times
Download:	0 times

Twinkle Ppt

Documents