The BFSI sector in India is very diverse and big. The country's economy is closely correlated with the banking sector. According to the recent GDP of India, which is estimated at 5 percent growth for 2013's fiscal year, the economy of the country is slowing down. This is likely due to the slowdown in domestic and international demand.
Between 2011 and 2012, the banking sectors' asset quality indicators had deteriorated, and continued to deteriorate each financial year thereafter. For the second quarter of 2012-2013, the asset quality continued to worsen, and the industry was led by public sector banks. A large portion of bank advances derive through public sector banks. An increase in risk aversion within the banking industry was fueled by both the deteriorating asset quality and macroeconomic conditions. Rather than portfolios consisting of credit creation, it switched to investment in SLR securities on the back of big government market borrowings.
Government policy reforms that occurred recently in 2012 and market expectations after policy rates have been cut, along with moderation in inflation, all played a role in improved sentiment for the BFSI sector.
In this report, you are given clear insight into the impact analysis of Union Budget 2013-2014 on the banking industry. The report is comprehensive, providing data about market expectations, including budget and proposed measures in the budget and its impact on the market and industry players.
This Report Includes:
- An overview of the banking industry
- A list of important budget expectations
- An analysis of how the industry is being affected by different budget provisions
- A summary of the impact it has on the market and important industry players
This report is ideal for learning the impact key government policies have on the overall banking industry and its important players.