Opportunities in Indian Banking Sector

Opportunities in Indian Banking Sector

The ``Opportunities in Indian Banking Sector`` report provides extensive research and rational analysis on the Indian Banking Industry. This report has been made to help clients in analyzing the opportunities, challenges and the drivers critical to the growth of banking industry in India.

The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. The future projection undertaken in this report is done on the basis of the current market scenario, past trends, and rules and regulations laid by Reserve Bank of India (ROI).

The report provides detailed overview of the banking industry in India by contemplating and analyzing various parameters like assets size, income level etc. It helps clients to understand various products available in Indian banking industry and their future scope.

The report also provides the future overview of the industry in terms of growing assets size, number of financial cardholders etc. in India. The future forecast discusses the future prospects of different arms of banking industry including rural banking, banccassurance, financial cards, mobile banking, role of technology in rural banking, pension funds and the future course of action or strategies for pension fund industry to be taken at macro level.

Key Findings of the Report

§ Pension fund industry in India grew at a CAGR of 122.44% from 1999-00 to 2006-07.
§ Rural and semi-urban India is expected to account for 58.33% of the insurance sector by 2010.
§ In terms of ownership, debit cards are more in number than credit cards but in terms of transactions, credit cards are used more than debit cards.
§ The ATM outlets in India increased at a CAGR of 53.99% to reach 20,000 in 2006 from 2000.
§ Rural and semi-urban centers account for 66% of total bank branches.
§ Indian Mutual Fund industry witnessed a growth of 49.88% from May 2006 to May 2007, and higher growth is recorded in closed ended schemes at 215.61%.
§ Increasing number of millionaires in India is increasing the scope of Wealth Management Services.
§ Bankable household India is anticipated to grow at a CAGR of 28.10% during 2007-2011.
§ Banking sector investment in Information Technology is expected grow at 18% in 2007 from last year.

Key Issues and Facts Analyzed in the Report

§ Market analysis of different product segments in the banking industry.
§ Evaluation of current market trends.
§ Basel II Accord and Capital Requirement by Indian Banking Industry.
§ The factors driving growth of Indian Banking Industry.
§ Analysis of various challenges and opportunities for the industry.
§ Rural banking and role of technology.
§ Urban Vs rural banking in terms of deposit, branches, and credit.
§ Drivers and constraints for credit and debit cards industry in India.
§ Pension Fund industry in India.
§ Rural banking in India and its future outlook.

Key Players Analyzed

This section covers the key facts about the major players (including Public, Private, and Foreign sector) in the Indian Banking Industry, including Bank of Baroda, State Bank of India, Canara Bank, Punjab National Bank, HDFC Bank, ICICI bank, Kotak Mahindra Bank, Citi Bank, Standard Chartered PLC, HSBC Bank, ABN AMRO Bank, American Express.

Research Methodology Used

Information Sources
Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Method
The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

1. Analyst View

2. Industry Overview
2.1 Global Banking Industry
2.1.1 Overview
2.1.2 Regional Segmentation
2.1.3 Top Performing Banks
2.2 Asia Banking Industry
2.2.1 Overview
2.2.2 Top Performing Banks
2.3 Indian Banking Industry
2.3.1 Overview

3. Indian Banking Industry Performance
3.1 Assets
3.2 Income
3.3 Profit
3.4 Credit/Deposit Ratio
3.5 Investment/Deposit Ratio
3.6 By Product
3.6.1 Deposits
3.6.2 Financial Card
3.6.2.1 Credit Card
3.6.2.2 Debit Card
3.6.2.3 Drivers
3.6.2.4 Constraints
3.6.3 ATMs
3.6.4 Mutual Fund
3.7 Urban vs Rural Banking
3.7.1 By Deposits
3.7.2 By Credit Demand
3.7.3 By Bank Branches
3.8 Pension Fund Industry
3.9 Bancassurance

4. Industry Analysis
4.1 Risk Assessment of Banking Industry
4.2 Drivers
4.2.1 Increasing Bankable Households
4.2.2 Growing Industry Credit
4.2.3 Growing Housing Finance Industry
4.2.4 Declining NPA
4.3 Opportunities
4.3.1 Wealth Management Services
4.3.2 Increasing Bankable Households
4.3.3 Large Unbanked Population
4.3.4 Call Centers (Support Services)
4.3.5 Pension Fund Industry
4.3.6 Auto Finance
4.3.7 Increasing Retail Lending
4.3.8 Booming Insurance Industry - Opportunity for Bancassurance
4.3.9 IT Investment
4.4 Challenges
4.4.1 Retention of Customers
4.4.2 Growing Attrition Rate
4.4.3 Lack of Consumer Credit Information
4.4.4 KYC (Know Your Customer) Issues & Money Laundering Risks
4.4.5 Increasing Level of Liquidity
4.4.6 Increasing Level of Risk Weightage to Commercial Real Estate Financing
4.4.7 Basel II Accords

5. Future Outlook
5.1 Bancassurance - 2010
5.2 Rural Banking
5.2.1 Strategy
5.2.2 Technology
5.3 Credit & Debit Cards (2007-08 to 2010-11)
5.4 Mobile & Internet Banking
5.5 Pension Fund Industry
5.5.1 Future Initiative/Strategy
5.6 Assets & Deposits (March 2007 to March 2012)
5.7 ATMs (2007-2010)

6. Key Players
6.1 Public Sector Banks
6.1.1 Bank of Baroda
6.1.2 State Bank of India
6.1.3 Allahabad Bank
6.1.4 Canara Bank
6.1.5 Punjab National Bank
6.2 Private Sector Banks
6.2.1 HDFC Bank
6.2.2 UTI Bank
6.2.3 ICICI Bank
6.2.4 Kotak Mahindra Bank
6.2.5 Centurion Bank of Punjab
6.3 Foreign Sector Banks
6.3.1 Citibank
6.3.2 Standard Chartered Bank
6.3.3 HSBC Bank
6.3.4 ABN AMRO Bank
6.3.5 American Express

7. Annexure I: Indian Banking Industry - Regulatory Framework & Guidelines
7.1 Regulatory Framework
7.2 Ownership
7.2.1 Phase-I (March 2005 to March 2009)
7.2.2 Phase-II (April 2009)
7.3 Capital
7.4 Inspection & Reporting
7.5 Audit Requirements
7.6 Managing Pension Fund by Banks
7.6.1 Eligibility Criteria
7.6.2 Pension Fund Subsidiary

List of Figures:
Figure 2-1: Global - Banking Industry Assets (in Trillion US$), 2002-2006
Figure 2-2: Global - Forecast for Banking Industry Assets (in Trillion US$), 2007-2011
Figure 2-3: Global - Banking Industry Deposits (in Billion US$), 2002-2006
Figure 2-4: Asia - Banking Industry Assets (in Billion US$), 2004 & 2005
Figure 3-1: India - Banking Industry Assets (in Rs Crore), March 2004 to March 2006
Figure 3-2: India - Banking Industry Income (in Rs Crore), March 2004 to March 2006
Figure 3-3: India - Banking Industry Profit (in Rs Crore), March 2004 to March 2006
Figure 3-4: India - Banking Industry Credit/Deposit Ratio (%), 2000-01 to 2006-07
Figure 3-5: India - Banking Industry Investment/Deposit Ratio (%), 2000-01 to 2006-07
Figure 3-6: India - Banking Industry Deposits (in Rs Crore), March 2004 to March 2006
Figure 3-7: India - Comparison with Global Purchase through Credit Card (%), 2006
Figure 3-8: India - Number of Credit Card Holders (in Million), 2003-04 to 2005-06 & January 2007
Figure 3-9: India, Seoul, Sydney & Hong Kong - Credit Card Ownership by Affluent Class (%), 2006
Figure 3-10: India - Number of Credit Card Transactions (in Million), 2003-04 to 2005-06 & January 2007
Figure 3-11: India - Payment by Credit Card (in Billion Rs), 2003-04 to 2005-06 & January 2007
Figure 3-12: India - Number of Debit Cards (in Million), 2003-04 to 2005-06 & January 2007
Figure 3-13: India - Number of Debit Card Transactions (in Million), 2003-04 to 2005-06
Figure 3-14: India - Payment by Debit Card (in Rs Crore), 2003-04 to 2005-06
Figure 3-15: India - Number of ATMs (2000-2006)
Figure 3-16: India - Off-site ATMs by Bank (%), March 2005
Figure 3-17: India - Branches of Commercial Banks in Rural Area (in Numbers), March 2000 & March 2006
Figure 3-18: India - Number of People Served by a Bank Branch in Rural & Urban Area (1991, 2001 & 2005)
Figure 3-19: India - Pension Fund Premium (in Rs Crore), 1999-00 & 2006-07E
Figure 4-1: India - Number of Bankable Households (in ‘000), 2001-2006E
Figure 4-2: India - Industry Credit (in Rs Crore), 2004 & 2005
Figure 4-3: India - Housing Loan Disbursement (in Rs Crore), 2001 & 2006
Figure 4-4: India - Number of Millionaires (2003-2007F)
Figure 4-5: India - Forecast for Number of Bankable Households (in '000), 2007-2011
Figure 4-6: India - Unbankable Urban & Rural Population (%), July 2007
Figure 4-7: India - Forecast for Working Population (in Million), 2007-2011
Figure 4-8: India - Two Wheeler Finance Market (in Rs Crore) 2005-06 to 2009-10F
Figure 4-9: India - Forecast for Share of Organized & Unorganized Players in Auto Finance Market (%), 2009-10
Figure 4-10: India - Forecast for Share of Bancassurance in Life Insurance Industry (%), 2010
Figure 4-11: India - Banking Industry Investment on IT (in Million US$), 2006 & 2007E
Figure 4-12: India - Forecast for Banking Industry Investment on IT (in Million US$), 2008-2010
Figure 4-13: India - Banking Industry Investment on IT by Product (in Million US$), 2007E
Figure 5-1: India - Forecast for Insurance Industry (in Billion US$), 2010
Figure 5-2: India - Forecast for Number of Credit Holders (in Million), 2007-08 to 2010-11
Figure 5-3: India - Forecast for Number of Debit Cards (in Million), 2007-08 to 2010-11
Figure 5-4: India - Mobile & Internet Penetration (%), June 2007
Figure 5-5: India - Forecast for Banking Industry Assets & Deposits (in Billion US$), March 2008 to March 2012
Figure 5-6: India - Forecast for Number of ATMs (2007-2010)

List of Tables:
Table 2-1: Global - Banking Industry Loans by Region (in Trillion US$), 2002-2006
Table 2-2: Global - Top Performing Banks by Capital Base, Assets & Capitalization (June 2007)
Table 2-3: Asia - Top Performing Banks by Country, 2007
Table 2-4: India - List of the Types of Bank
Table 3-1: India - Banking Industry Assets by Type of Bank (in Rs Crore), March 2004 to March 2006
Table 3-2: India - Banking Industry Income by Type of Bank (in Rs Crore), March 2004 to March 2006
Table 3-3: India - Banking Industry Profit by Type of Bank (in Rs Crore), March 2004 to March 2006
Table 3-4: India - Top 3 Players in Term Deposit by Type of Bank (in Rs Crore), March 2004 to March 2006
Table 3-5: India - Number of Off-site ATMs by Type of Bank (March 2005)
Table 3-6: India - Mutual Fund Industry by Assets under Management (in Rs Crore), May 2006 & May 2007
Table 3-7: India - Banking Industry Deposits by Urban, Semi Urban & Rural Centers (in Rs Crore), December 2001 & December 2006
Table 3-8: India - Banking Industry Credit Demand by Urban, Semi Urban & Rural Centers (in Rs Crore), December 2001 & December 2006
Table 3-9: India - Number of Bank Branches in Urban, Semi Urban & Rural Centers (December 2001 & December 2006)
Table 3-10: India - Bank Life Insurance Business (in Rs Crore), 2004 & 2005
Table 3-11: India - Public Sector Banks & their Collaboration with Insurance Companies, 2006
Table 4-1: India - NPA by Type of Bank (in Rs Crore), March 2004 to March 2006
Table 6-1: Bank of Baroda - Key Financials (in Rs Crore), March 2007
Table 6-2: State Bank of India - Key Financials (in Rs Crore), March 2007
Table 6-3: Allahabad Bank - Key Financials (in Lakh Rs), March 2007
Table 6-4: Canara Bank - Key Financials (in '000 Rs), March 2007
Table 6-5: Punjab National Bank - Key Financials (in Rs Crore), March 2007
Table 6-6: HDFC Bank - Key Financials (in Lakh Rs), March 2006 & March 2007
Table 6-7: UTI Bank - Key Financials (in Rs Crore), March 2007
Table 6-8: ICICI Bank - Key Financials (in '000 Rs), March 2007
Table 6-9: Kotak Mahindra Bank - Key Financials (in Lakh Rs), March 2007
Table 6-10: Centurion Bank of Punjab - Key Financials (in Rs Crore), March 2007
Table 6-11: Citi Bank - India specific Credit Cards
Table 6-12: Citi Bank India - Key Financials (in ‘000 Rs), March 2007
Table 6-13: Standard Chartered India - Key Financials (in Rs Crore), March 2007
Table 6-14: HSBC India - Key Financials (in Rs Crore), March 2007
Table 6-15: ABN AMRO India - Key Financials (in Rs Crore), March 2007
Table 6-16: American Express India - Key Financials (in Rs Crore), March 2007