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Group No.5
Ankita Gada 7422
Nilesh Gaikwad 7423
Dolly Gatta 7424
Hiten Gohil 7427
Gayatri Gowekar 7428
Paridhi Gupta 7429
Twinkle Haria 7430
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The Banking &Insurance Industry of
India
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Introduction History of more than 200 years
Indian Banking Sector has 6th
Rank Globally
General Bank of India in 1786 First Bank
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Types Of Banks
Public sector Banks
Private sector Banks
Co-operative Banks
Development Bank/Financial institutions
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Public sector Banks
Central Bank of India
Corporation BankDena Bank
Bank of India
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
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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
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Co-operative Banks
IDBI BANK(Industrial Development Bank of India).
IFCI BANK(Industrial Finance Cooperation of India).
APEX Bank.
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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
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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
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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
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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
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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
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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
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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
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Upcoming Foreign Banks
in India
RBS (Royal Bank Of Scotland Group).
Industrial & Commercial Bank of China.
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Banking Industry VisionReport 2010
Qualitative Growth
Consolidation
Risk and Reward
Technology Social Banking
Regulation
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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
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Possible Suggestions toOvercome Problems
Technological Advancement
Rural Banking
Improving Risk Management
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CONCLUSION OFBANKING INDUSTRY
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Indian INSURANCEINDUSTRY Overview
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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.
.
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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.
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History of the Insurance Sector Milestones of the life insurance business in India are:
1912
1928
1938
1956
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General Insurance Business Milestones of the General Insurance Business are:
1907
1957
1968
1972
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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
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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.
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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
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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.
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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
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Functions of insurance
Primary Functions
Secondary Functions
Other Functions
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Primary Functions Provide Protection
Collective Bearing of Risks
Assessment of Risk
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Secondary Function Prevention of losses
Small Capital to Cover Larger Risk
Development of Larger Industries
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Other Functions
Means of Savings And Investment
Source of Earning Foreign Exchange
Risk Free Trade
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Recent Trends & Opportunitiesin the insurance industry
Opportunities
Rural-Urban Mix
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CONCLUSION
Insurance Sector Futuristic Growth ASSOCHAMhas started that Indias Insurance Sector is likely toreach US $ 46.25 billion by 2010
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Thank you