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Rising incomes ͻNo of households with annual income above US$ 10000 increases from 6.07 mn in 2006 to 9.37 mn (4% of all
increase demand households) in 2008. Projected to grow 107% by 2013
for financial ͻMore than 39 mn (18% of the total) and 53 mn households(24% of the total) are estimated to have income of
services US$ 5000 and US$ 3000-5000 respectively in 2008

ͻPersonal disposable income (in local currency terms) is set to grow at an average annual rate of 9.1% in 2009-
Retail lending 13
booming ͻMcKinsey forecasts CAGR of 30% for credit cards, 24% for mortgages, 22% for personal loans, 20% for MF,
13% for securities

Liquidity remains ͻFII reinvestUS$ 8.50 bn (87%) in FY 2010 after they pulled out US$ 9.77 bn from Indian equity markets in 2009
ͻBut the financial sector attracts only 47% of total savings of Indian households though they are among the
abundant highest savers

Pvt players ͻDeregulation of interest rates, easy accessiblity to capital market, relaxation of entry norms, entry of
entering Non multinationals augment a competitive enviroment
bank finance ͻDomination of state owned financial institutions though overstaffed and saddled with high levels of non
performing loans.
sector

ͻCorporate restructuring activities like mergers and acquisitions, PSU disinvestments on the rise
Business
ͻGovt controlled commercial and development banks, insurance cos, UTI major fund providers for both local
investment and foreign invested enterprises

*Source: Economist Intelligence Unit

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Banks Insurers Asset Managers Exchanges
ͻIncreasing non ͻLife insurance grew ͻ3 5 Asset Mgmt cos ͻDomination of Govt
performing loans by 29% yoy in 2007- operating 1001 securities as Govt͛s
due to funding to 08 mutual fund budget deficits loom
Govt defined ͻSlow growth (11.7% schemes large. Yield on 1 year
priority sectors yoy) of health ͻGrowing MF bond rising sharply
ͻDomestic pvt banks insurance and non industry earmarks owing to higher
and foreign life insurance arrival of new inflation
institutions set up coverage as entrants, mergers ͻListing of banks and
franchises, offer compared to and closures. Case in firms on stock
competitively priced international levels point Nomura market
services ͻExpected increase in Securities buying ͻSecurities market to
ͻProposal to raise FDI JV activities of stake in LIC MF , be sustained by
limit in banking foreign cos in the Shinsei MF͛s launch, strong corporate
sector to 74 % market after raising Religare-AEGON JV, profits driven by
ͻRise in net profits of FDI limit in IDFC acquisition of improved
28 public sector insurance to 49% Standard Chartered productivity growth
banks to 31% in MF
2007-08
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IT and Operations: Opportunity to leverage

competitive capabilities globally

Robust legal framework in place to check

malpractices in a deregulated environment

Scope of financial services expanding and

industry is heading for competition

Credit and risk mgmt: Long way to match

global standards

Organisation: Imperative need to strengthen

leadership and talent
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 India's largest Registered Residuary Non-banking Company

(RNBC)
 Pan Indian presence with 147 offices across the country and a
huge customer base at the grass root level.
 Conservative approach in investments.
 Pioneers in Financial Product Distributions.
 Huge potential growth as semi urban and rural penetration of
financial services is very low in India.
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Capital to be raised ʹ ü 1600 Crores

Net worth of the company ʹ ü 810 Crores
Areas to invest money
 More Semi urban and rural penetration.
 Increasing sales force
 Expansion into Mutual Fund business
 Improvising major branches into one stop financial shops.