Industry profile: India has a diversified financial sector undergoing rapid expansion in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds, and other smaller financial entities. In addition, the banking regulator has allowed new entities such as payments banks to be created recently, thereby adding to the types of entities operating in the sector. However, the financial sector in India is predominantly a banking sector, with commercial banks accounting for more than 64 percent of the total assets held by the financial system. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small, and Medium Enterprises (MSMEs). These measures include launching the Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing banks’ collateral requirements guidelines, and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by both government and private sector, India is undoubtedly one of the world’s most vibrant capital markets.
They are driven by strong participation from retail investors and the creation of awareness by the Securities and Exchange Board of India (SEBI). Equity mutual funds are driven by strong participation from retail investors and result of attention by the Securities and Exchange Board of India (SEBI). Equity mutual funds are witnessing large inflows kept in the banking system before 2017. The revenues of the brokerage industry in India are estimated to grow by 15-20 percent to reach Rs 18,000-19,000 crore (US$ 2.80-2.96 billion) in FY2017-18, backed by healthy volumes and a rise in the share of the cash segment.
The Indian life insurance industry has begun to recover and is likely to report 12-15 percent growth in FY 2016-17.
In 2016, 2.4 million new Demat accounts were opened by Indians, the highest number of account openings since 2008, led by a higher number of initial public offerings (IPOs) and greater interest in mutual fund investments. SBI, the second-largest issuer of credit cards in India, has reported the issuance of 115,000 new cards in December 2016, post demonetization, taking its total card issuance to 4.75 million.
Company profile: Aditya Birla capital is the holding company for all the financial service businesses of the Aditya Birla Group. The company is one of the well-diversified and universal financial solutions providers and one of the largest financial services businesses in India and operating in life insurance, general insurance, health insurance, Mutual fund, wealth management, PMS, pension fund, brokerage service, Home finance, personal finance, SME finance.
ABFL is registered with RBI as a systemically important non-deposit accepting non-banking finance company (“NBFC”) and ranks among the top five largest private diversified NBFCs in India based on AUM as of March 31st, 2017.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=125 /]
Future prospectus: The business is new, so the growth is significant. The financial services sector is going through a big change, and a company with parentage like Birla group is a big thing, so it is helpful. Many investors do not understand that the financial services business is like asset play. It took time to give the return.
