BFSI Sector in India: Strategic Review (Budget 2013-14)
India's BFSI sector is large and diverse. The banking sector is highly correlated with the economy of the country. The GDP growth is estimated at 5 per cent for FY13 which gives us a hint that the Indian economy is witnessing slowdown due to sluggish demand domestically as well as internationally.
Asset quality indicators of the banking sector, which had deteriorated significantly during 2011-12, have further deteriorated in the financial year so far. The worsening asset quality during Q2 of 2012-13 continued to be led by public sector banks, which account for the major portion of bank advances. Deterioration in asset quality and in macroeconomic conditions resulted in increased risk aversion in the banking sector. This, in turn, led to a portfolio switch from credit creation to investment in SLR securities on the back of large government market borrowings.
However, improved global sentiments along with recent policy reforms by the government beginning September 2012 and market expectations of a cut in the policy rate in the face of moderation in inflation aided improvement in sentiments for the BFSI sector.
IS Advisors takes you through the impact analysis of Union Budget 2013-14 on the Industry in this report. The report provides useful and comprehensive information about the industry expectations from the budget, proposed measures in the budget and their impact on industry and its players.
SCOPE OF THE REPORT
To understand the impact of key government policies on the overall industry and key players
Asset quality indicators of the banking sector, which had deteriorated significantly during 2011-12, have further deteriorated in the financial year so far. The worsening asset quality during Q2 of 2012-13 continued to be led by public sector banks, which account for the major portion of bank advances. Deterioration in asset quality and in macroeconomic conditions resulted in increased risk aversion in the banking sector. This, in turn, led to a portfolio switch from credit creation to investment in SLR securities on the back of large government market borrowings.
However, improved global sentiments along with recent policy reforms by the government beginning September 2012 and market expectations of a cut in the policy rate in the face of moderation in inflation aided improvement in sentiments for the BFSI sector.
IS Advisors takes you through the impact analysis of Union Budget 2013-14 on the Industry in this report. The report provides useful and comprehensive information about the industry expectations from the budget, proposed measures in the budget and their impact on industry and its players.
SCOPE OF THE REPORT
- Industry at a glance
- List of key Budget expectations
- Analysis of the various budget provisions affecting the industry
- Summarize impact on key players of the industry
To understand the impact of key government policies on the overall industry and key players
1. OVERVIEW
2. PRE BUDGET EXPECTATIONS
3. KEY BUDGET PROVISIONS
4. BUDGET IMPACT ANALYSIS
4.1 Industry Impact
4.2 Company Impact
2. PRE BUDGET EXPECTATIONS
3. KEY BUDGET PROVISIONS
4. BUDGET IMPACT ANALYSIS
4.1 Industry Impact
4.2 Company Impact
LIST OF TABLES & FIGURES
Table 1: Impact on Companies
Table 1: Impact on Companies
