Post globalisation era in greater mumbai june 2006 efi – solar foundation mumbai
Table: 6.1.1 - B Performance of banks in terms of deposits– All India –Category -wise
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- Table: 6.1.2 - B
Table: 6.1.1 - BPerformance of banks in terms of deposits– All India –Category -wise(Figures in Rs. crore)
(Source: IBA) According to projections for 2010 made by IBA, the total deposits of banks in India are expected to increase to Rs. 3,500,000 crore from Rs. 1,575,143 crore in 2004. In addition, the total liabilities/assets are also expected to rise to Rs. 4,090,000 crore in 2010 from Rs. 1,975,020 crore in 2004. While the investments in government and other securities are estimated to double from Rs. 802,066 crore in 2004 to Rs. 1,640,000 crore in 2010. 6.1.2 Mutual Fund Sector in India Though the opening of mutual fund sub sector to PSUs (other than Unit Trust of India) took place as recent as 1987, private players had to wait till 1993 to formally enter into business. The sub sector has grown at a CAGR of 11.57 per cent, while the CAGR for the private players has been 68.56 per cent. Almost 65 per cent of the Indian mutual fund assets are with institutional investors, however this situation is fast changing due to the focus on customisation, innovative products, and greater investor awareness. Table 6.1.2 - A Performance of Mutual Funds sub sector in India (1995-2004) (Figures in Rs. crore)
(Source: AMFI) Industry Perspective Association of Mutual Funds in India (AMFI) attributes the recent dramatic rise in mutual fund investment figures to the entry of private sector units. The restructuring of UTI into two companies UTI – I and UTI – II in the year 2003 and the eventual consolidation the sub sector saw reduction in the total number of operators from 32 to 29 between 2000–2005. Though there was a drop in the number of operators, the total Assets Under Management saw an appreciable increase from Rs. 93,717 crore in March 2000 to Rs. 1,49,600 crore in 2005, a growth of 59.62 per cent. The extent of impact the private players had on the mutual fund sub-sector can be gauged from the range of products that are now being offered to customers. In 1995, the sub-sector offered approximately 10-15 plain vanilla schemes to its customers, which after the entry of private players dramatically rose to 421 schemes in 2005. Table: 6.1.2 - BGrowth of Mutual Fund sub sector (1995-2005)
(Source – AMFI) Increasing investor interest has seen that AUM of mutual fund sub sector grow eightfold in five years, i.e. from March 1999 to December 2003 (Refer table: 6.1.2 – B). Studies have revealed that by 2010, the size of Indian Mutual Fund sub sector would grow to over Rs. 3,00,000 crore. Table: 6.1.2 - C Growth of Mutual Fund sub sector in India (2000-2005)
(Source – AMFI) 6.2 FINANCIAL SECTOR IN MUMBAI (Over last decade) A research study undertaken by James Laurenceson and Abhaya Kamalakanthan, School of Economics - The University of Queensland, Australia on ‘Emerging Financial Centres in Asia’ - has put Mumbai and Shanghai as the primary candidate cities to emerge as International Financial Centres (IFC). Both, Mumbai and Shanghai, are situated in countries of enormous international significance - China and India - and are domestic financial centres of their respective countries. Although Indian and Chinese economies continue to grow rapidly and are integrating into the global economy, the study gives Mumbai an edge over Shanghai because it has a comparatively stronger and organised financial infrastructure. Mumbai’s domestic financial dominance is primarily based on the premise that it houses the country’s two largest stock exchanges, i.e. the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSEI). The two stock exchanges clearly dominate all the other Indian exchanges in terms of both turnover and market capitalisation. The historical development of credit markets in Mumbai has also been significant with the headquarters of many of India’s major banking institutions being based in the city, including India’s Central Bank, the Reserve Bank of India (RBI). Many of the world’s top banking institutions such as ABN AMRO, Bank of America, American Express, Citibank, Deutsche Bank, HSBC, Barclays Bank, ING, Standard Chartered Bank and J P Morgan Chase are also housed in Mumbai. In addition to the stock exchanges and banks, the headquarters of other critical financial institutions such as the Over-the-Counter Exchange of India, the Securities and Exchange Board of India (SEBI), insurance companies, capital market intermediaries and mutual funds are now located in Mumbai. There are also close to 500 Foreign Institutional Investors (FIIs) and 800 merchant banks based in Mumbai. As a result, virtually all FII transactions and over 90 per cent of merchant banking transactions occur here. Another important factor that goes in Mumbai’s favour; China has been tagged as “Manufacturer to the world”, while India is emerging as the “Back office to the world”. The combination of a relatively cheap, English proficient and highly educated workforce, along with continued improvements in the quality and price of international telecommunications, are working in favour of Mumbai’s claim to become the International Financial Centres in near future. 6.2.1 Banking sub sector in Mumbai Mumbai’s prominence in the Indian Banking sector is evident from the fact that in March 2002 with bank deposits of over Rs. 141,800 crore, Mumbai accounted for about 13 per cent of the total bank deposits in India. While Delhi with deposits of Rs. 117,890 crore trailed at 10.7 per cent during the same period. Mumbai’s dominance in bank credit is even more striking as it contributes a whooping Rs. 181,158 crore, i.e. 26.5 per cent to the total credit. While the other three metros – Delhi, Kolkata and Chennai - collectively contributed to 24.8 per cent of bank credit. Moreover, the national credit-deposit ratio of banks stood at 62.5 per cent as of March 2002. For Mumbai, the ratio is more than double at 128 per cent. This signifies that Mumbai has truly developed as a financial intermediation centre rather than only being a deposit mobilisation centre. Table: 6.2.1 A Directory: reports reports -> Charter School Enrollment Data Annual Report reports -> Request for Proposal [insert date] reports -> Government of India Ministry of Communication and it department of Telecommunications reports -> Government of India Ministry of Communication and it department of Telecommunications reports -> 1. 2 Authority 1 3 Planning Area 1 reports -> Pricing Closing Price $3,578 (June 22) 52-Wk High $3,825 52-Wk Low $2,982 Market Data reports -> Work performed under agreement reports -> Comet Aircraft – The Worlds First Jet Airliner Fatigue Failure Background reports -> Management and functional review ministry of transport and aviation Download 2.03 Mb. Share with your friends:
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