How retail financial services have evolved in India
1. Till about 1994 there were no new age private banks, RBI gave licenses to 10 entities
2. There was only Citibank who offered car loans and credit cards
3. Only HDFC Ltd was there in private Home Loans space
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1. Till about 1994 there were no new age private banks, RBI gave licenses to 10 entities
2. There was only Citibank who offered car loans and credit cards
3. Only HDFC Ltd was there in private Home Loans space
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3. In mid nineties ICICI Ltd launched their retail products like car and home loans through their subsidiary ICICI PFS
4. In 1998 HDFC Bank launched their retail assets business starting with car, personal and consumer durable loans
5. The loan book mix for private banks
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4. In 1998 HDFC Bank launched their retail assets business starting with car, personal and consumer durable loans
5. The loan book mix for private banks
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at that time was 100% corporate loans with 0 share of retail
6. After 25 years today loan book composition of leading private banks is 55% retail n 45% corporate
7. In 2000 the mortgage to GDP ratio was around 2% which is now 10%. A growth of 5X in 20 years
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6. After 25 years today loan book composition of leading private banks is 55% retail n 45% corporate
7. In 2000 the mortgage to GDP ratio was around 2% which is now 10%. A growth of 5X in 20 years
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8. Life Insurance sector was opened to private players in 1999, 100% market share was with LiC, after 20 years LIC has a share of 70% n private players have 30% share
9. Insurance premium to GDP ratio today is ~3% which may rise to 10% in next 10 to 15 years
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9. Insurance premium to GDP ratio today is ~3% which may rise to 10% in next 10 to 15 years
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10. The opportunity for life insurance companies to grow their business is huge as awarenes about life insurance spreads among the Indian population over the next decade or so
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