Growth of service sector

1. Growth of service sector
In Indian Economy

2. GROUP MEMBERS
• Piyush Upadhya
• Prafful Sapra
• Mayank Agrawal

3. Service sector
• The segment of the economy that provides
services to its consumers. This includes a wide
range of businesses including financial
institutions, schools, transports and
restaurants.
• Also known as "tertiary sector of industry," or
"service industry/sector".

4. The various sectors that
combine together to
constitute service industry are
 Trade
 Hotels and Restaurants
 Railways
 Other Transport &
Storage
 Communication (Post,
Telecom)
 Banking
 Insurance
 Dwellings, Real Estate
 Business Services
 Public Administration;
Defense
 Personal Services
 Community Services

5. Contribution Of Service Sector In
Indian Economy

6. Meaning of Banking
• The primary activity of banks is "accepting
deposits, for the purpose of lending and
investment, deposits of money”.
• The essence of banking is TRUST.

7. Importance of Banking
• Motivate people to save.
• Channelize household savings into productive
capital
• Facilitate productive use of surpluses to
generate
• employment and promote economic welfare.
• Provides risk free income to depositors.

8. SECTOR
OVERVIEW
Banking Deposits
1.4 trillion
41%
Unbanked Population in
India
42.8
India’s Banking Penetration
Score
157
Total Number of Schedule
Commercial Banks in India
27.5%
Banking Sector’s Share in Total BFSI Employment
$1.8 trillion Total Banking Assets

9. India’s banking sector plays a key role
in economic growth and employment
• Aggregate deposits of all Scheduled Commercial Banks (SCBs), as a
percentage of GDP increased from 61% in FY07 to 67% in FY13 ,
driven by increasing demand from retail customers.
• Credit to GDP increased from 45% in FY07 to53% in FY13 indicating
the improved lending of SCBs to various industries, which has
enhanced trade and economic development.
CONTRIBUTION TO GDP

10. • WithintheBanking,FinancialservicesandInsura
nce(BFSI)sector,financialintermediariessuchas
DSA’s,insuranceagents,mutualfundadvisors,etc
.accountforthelargestshare(65–
70%)ofemployment.
• Bankingstandssecondintermsofemployment(
averageshareof28%).Thebankingsectorisprojec
tedtocreateupto2millionnewjobsinthenext5-
10years,drivenbyissuanceofnewlicensesandeff
ortstoexpandfinancialservicesintoruralareas.

12. NUMBER OF BRANCHES –BY BANK TYPE
• Over all employment levels in the Indian banking
system increased at a CAGR of 3.5% during the FY09-
FY13 period . The main drivers of these employment
trends have been the private sector banks which
witnessed a growth of 8.7% CAGR in their number of
employees during the same period
• On the other hand, public sector banks (PSBs) great
CAGR of 2.3% while the foreign banks saw aced line of-
3.8% in the employment levels.

13. SEGMENTATION & OFFERINGS
• LOAN PRODUCTS
1. Auto & personal loans
2. CV & construction equipment finance
3. Credit/debit cards
4. Loans against gold
5. Agri & tractor and education loans
6. RETAIL
• DEPOSIT PRODUCTS
1. Savings accounts
2. Current accounts
3. Fixed / recurring deposits
4. Corporate salary accounts
OTHER OFFERINGS
Depository accounts
Mutual fund, insurance and gold
sales
Private banking
NRI, bill payment & foreign
exchange (forex) services
POS terminals
RETAIL BANKING
WHOLESALE BANKING
COMMERCIAL BANKING
Working capital & term loans
Bill collection
Wholesale deposits
Forex & derivatives
Letters of Credit & Guarantees
TRANSACTIONAL
BANKING
•Cash management
•Custodial and clearing bank
services
•Correspondent banking
•Tax collections
•IPO underwriting
INVESTMENT BANKING
Debt capital markets
Equity capital markets
Project finance
M&A and advisory

14. Growth in banking sector
• RISING FOCUS ON MOBILE BANKING
• SHIFT TO FEE-BASED BUSINESS MODEL
• ADOPTION OF DIGITAL TECHNOLOGIES
• FOCUS ON EMERGING SECTORS & RURAL
MARKETS

15. • Deposits:
TheRBI'sestimateofthebankingsystem'sdeposits’growthfo
rFY14is14%.Depositsareexpectedtogrowduetoriseininter
estrateonsavingsbankdepositswhichinturnwouldencoura
gehouseholdsavings,RBI’seffortstoattractNRIdepositsamo
ngothers.
• Credit off-take :
AspertheRBI’sestimates,bankcreditisestimatedtogrow15
%inFY14.Theincreaseincreditcouldbeattributedtodemand
forshort-termloans,workingcapital,andretailsegments.
• New branches :
Bankswillcontinuetofocusonexpandingtheirnetwork.Acco
rdingtoGartnerresearch,about2,000newbrancheswouldb
eaddedinIndiabytheendof2014.Thiswouldresultinincrease
demploymentinthesector.