Each year, the ‘India’s Leading BFSI Companies’ publication is associated with a theme. In this context, the theme for this year’s edition is ‘Exploring the Underlying Opportunities in the Financial Services Sector’. There is a huge untapped market which offers enormous opportunities. With continual technological changes the sector is already witnessing disruptive innovations and BFSI players will have to rethink their business models and adopt innovative delivery channels to respond to the needs of increasingly demanding digital customer.
Following are some of the key highlights of the study:
• As on 2014, India ranked 11th among 88 countries in the life insurance business and 20th in global non-life insurance markets. In terms of premium volume, the country is the fifteenth largest insurance market in the world. During Mar-Sep 2015, foreign direct investment in the insurance sector stood at US$ 341 million displaying a stupendous growth of 152% compared to the same period last year
· The asset base of mutual fund industry surged nearly Rs.3 trillion in FY15, crossing the `10 trillion benchmark. The country’s fund houses together saw a growth of 33.2% in AUM to end the year FY15 at Rs.10.8 trillion. The first three quarters of FY16 witnessed AUM reaching almost Rs.13 trillion, showcasing a strong growth of 21.3% in Dec 2015 as compared to Dec-14
· The aggregate trading turnover of the cash segment on both exchanges taken together remained largely unchanged during FY11-15, having increased marginally from Rs.46.8 trillion in FY11 to `51.8 trillion in FY15. On the other hand, trading in the derivatives segment has seen a manifold growth over the last five years. The aggregate trading turnover (derivatives) on both exchanges taken together grew from Rs.292.5 trillion in FY11 to Rs.759.7 trillion in FY15
· Deteriorating asset quality has emerged to be a major concern for the domestic banking industry. The gross nonperforming advances (GNPAs) of all SCBs as a percentage of gross advances grew to 4.6% in March 2015 from 4.1% in March 2014. The net non-performing advances (NNPAs) as a percentage of the total net advances for all SCBs grew from 2.2% as on Mar 2014 to 2.5% as on Mar 2015
· As at the end of FY15, balance sheet size of NBFC-D stood at Rs.1,925 billion registering a marginal increase of around 2% y-o-y. The balance sheet size of NBFCs-ND-SI grew considerably by 15.9% y-o-y and stood at Rs.14,166 billion as at end-Mar 2015
Digital transformation is expected to catalyze the expansion and growth of the BFSI sector. The BFSI sector in India will continue to undergo rapid change and the vision of complete digitization will soon become a reality in the years to come.