India’s financial services industry may grow 20(%) percent over the next few years, ambitious by the world’s second-fastest pace of economic growth, the Aditya Birla Group said.
Financial planning, wealth management, infrastructure financing and services for Indians investing overseas may lead the growth, said Mumbai-based Ajay Srinivasan, chief executive officer of the company’s financial services division.
“The economy will double over the next 8 to 9 years if it grows between 8 and 9 percent yearly,” he said. Savings, which account for about 30(%) percent of India’s $1 trillion economy, will increase at a related pace, he forecast. “The pie is huge and we are casting our net.”
About 60(%) percent of the India’s population doesn’t have a bank account and nearly 90(%) percent don’t get loans, K.C. Chakra arty, deputy governor of the central bank, said last month. Equity-related investments form 10(%) percent of savings, compared to 22(%) percent in China and about 40(%) percent in developed nations, according to Vikram Kotak, chief investment officer at Birla Sun Life Insurance.
India’s finance, insurance and real estate sectors expanded 7.9(%) percent in the quarter ended March 31, according to the Central Statistics Office. The nation plans to spend $1.7 trillion on infrastructure over 10 years, Trade Minister Anand Sharma said yesterday.
Retail Broking
Srinivasan, who joined the company in 2007 from Prudential Plc, said he will focus on building the group’s non-banking- financial-services business and might look at areas including microfinance, institutional broking, investment banking and infrastructure financing.
Srinivasan’s unit, which generates $1.3 billion in revenue, has added retail broking and private equity to the obtainable asset management, insurance and distribution businesses. It is currently raising money for a domestic real estate fund and has invested about 800 million rupees from its 8.8 billion rupee private equity fund, Srinivasan said
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