Growth of the Indian Banking Sector
The Indian banking sector is growing at a fast pace along with the
Indian economy. In this age of globalization, foreigners are also making
investments in India and so Indian banks are planning global strategies.
Thanks to liberalization, that the Indian banks have been able to make a
mark for themselves in the world map. The degree of leverage of Indian
banks has increased to 15.8% at the end of March 2007.The overall
banking industry's business has grown to US$ 1172 billion by the end of
March 2007.
Progress of Commercial and Private Banks
The commercial banks have made tremendous progress with respect to its
profitability, capital adequacy, risk management etc. The private banks
too are playing an important role in the Indian banking industry. The
private banks are growing at a rate of 35% per annum. As a result the
share of the private banks has increased to nearly 16%.The limit of FDI
has also been increased from 49 % to 74% in the private banks.
Prospects and Achievements of Indian Banks
But still there is huge potential in the Indian banking sector. India
has the second largest financially excluded house holds (about 135
million) and it is expected that nearly 60 million house hold will be
added in India's bankable pool by 2009. So it is quite clear that the
banking industry is going to grow very rapidly. Indian banks are also
very advanced in terms of technology and have vast network of branches.
Nine Indian banks have made their mark in the list of top 50 Asian
Banks. The leaders are HDFC and ICICI bank. State Bank of India (SBI)
was the top loan arranger in the Asia - Pacific region in 2007 and
Indian banks were the top provider of educational loans in 2007.
Finance Sector - Indian Finance Sector
Growth of the Indian Finance Sector
The Indian finance sector is on a roller coaster ride. The Indian stock
market crossed 21,000 mark and Nifty 6,000 for the first time. This was
because of the fact that the investors are interested in the Indian
stock market and they are interested in investing. This sector is also
growing because new products and services are being offered to the
people. Wealth management revenues are expected to rise to 37% by 2012.
The bygone year proved to be a golden year for the Indian stock market.
It emerged as the third largest performing market in the world. The
Bombay stock exchange also had the highest ever absolute gain of 6500
points.
Finance Sector of India in 2007
The year 2007 was also a defining moment for the private equity market
which was chosen as the most preferred mode of fund mobilization. India
also topped the Asia private equity in 2007. India has also emerged as
the fastest growing market in the Asia - Pacific region for stocked
finance. It also has a potential market for domestic insurance in
structured finance market. India is also attracting people to invest in
mutual funds. The Indian mutual funds industry is expected to grow at a
rate of 30% in the next three years. So if you want to make your
fortunes then surely invest in the financial sector of India.
