The Finance Sector

The Indian Financial Sector is at present going through a phase of stable growth rate which is experiencing an upward swing. The rise can be maintained over a long period by keeping the inflation down. The financial sector in India has experienced a growth rate of 8.5% per annum. The rise in the growth rate suggests the growth of the economy. The financial policies and the monetary policies are able to sustain a stable growth rate. The reforms pertaining to the monetary policies and the macro economic policies over the last few years have influenced the Indian economy to the core.

The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth in the financial sector. To maintain such a growth for a long term the inflation has to come down further. Analytically, the growth of the sector was the result of the individual development of the divisions under the sector.

There are tremendous opportunities for the financial sector of India. These include non-taxation of the distributed financial gain of the venture capital funds, the financial gains being taxed only after the investors receive it as income. More insurance and banking products are expected to be introduced into the market to broaden the spectrum which in turn would boost the growth of the sector. Further nullification of the regulations have to take place in order to increase the competition and boost the growth of the financial sector to reach the US$ 51 billion mark.

PLAYERS

Let’s take a look at the biggest names dotting the banking landscape in India………………

State Bank of India (SBI)

The State Bank of India (SBI) is the largest bank in India. If one goes by the number of branch offices and employees, SBI is the largest bank in the world. The government nationalized the bank in 1955, with the Reserve Bank of India taking a 60% ownership stake.

With more than 9400 branches and a further 4000+ associate bank branches, the SBI has extensive coverage. The bank has the largest ATM network in the country having more than 5600 ATMs. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings.

Recently, around 18,000 employees of State Bank of India (SBI) have passed a mandatory industry test that makes them eligible to sell mutual funds, said two bank employees involved in the programme, giving the public sector bank the biggest mutual fund marketing machine in the country.

For more details, log on to www.statebankofindia.com.

Punjab National Bank (PNB)

Punjab National Bank is one of the largest public sector commercial bank in India with about 4500 branches and offices throughout the country. It serves over 3.5 crore customers through 4,540 Offices including 421 extension counters – the largest amongst nationalized banks.

Government-run Punjab National Bank (PNB) has registered a net profit of Rs.926.96 crore for the second quarter of the 2009-10 fiscal which ended on Sep 30, witnessing a 31.09% hike from the Rs.707.09 crore registered during 2008-09 Q2. The total income has been logged at Rs. 6,075.86 crore for the 2009-10 Q2, which is 14.35% up from the Rs.5,313.18 crore registered during the quarter ended Sep 30, 2008.

Punjab National Bank (PNB) will be launching an IT subsidiary for imparting technical assistance to the financial sector of India. Chief General Manager, PNB, R.I.S. Sidhu said, "We have the technical know-how in the area of financial services and we want to share this know-how. So we applied for permission and the finance ministry has given its nod for an IT subsidiary."

For more details, log on to www.pnbindia.com

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