‘Insurance, banking services offer attractive opportunities'

A record rise in India's market capitalisation at the international level, reflecting in increase in Indian equities in global market, has expanded opportunities in financial sector, according to Mr S. Gururaj, Zonal Sales Trainer (South), Birla Sunlife AMC Ltd, Bangalore.

India's market capitalisation had gone up from 3.12 per cent share at the market peak of January 2008 to 3.34 per cent as on September 22, 2010, amounting to $1.55 trillion as compared with the world market capitalisation of $46.5 trillion, Mr Gururaj said on Tuesday, delivering a guest lecture, Opportunities in Financial Sector, at the Shivani School of Business Management under the aegis of Business Line Club.

Opportunities exist in broking firms, investment services, financial consulting, national and private banks, mutual funds, car and home loans, equity market, and other banking services, for sales, marketing, operations and equity research roles, he said, and advised students to go for additional qualifications by referring to www.nism.ac.in and www.fpsb.org.

Insurance and banking services offer attractive opportunities. The insurance industry was expected to continue to outpace the rapid economic growth to reach $350-450 billion in premium income by 2020, placing India among the top three life insurance markets and top 15 non-life insurance markets by the year, Mr Gururaj said, referring to the industry report India Insurance – Turning 10, Going on 20. In 2010-11, the total premium of the general insurance has witnessed 22 per cent growth to $9.58 billion, and the premium of 23 life insurance companies have gone up by 15 per cent to $28.3 billion.

On banking services, a report by McKinsey & Company states that Indian banks have compared favourably on growth, asset quality and profitability. Notable changes in policy and regulation to strengthen the sector in the areas of prudential norms, enhancing the payment system and integrating regulations between commercial and co-operative banks, have made it possible for five to six Indian banks to make it to the top 100 global league (the world's top 100 banks) in the coming decade. As Indian banking sector continues to grow at 18 to 20 per cent, the country will be able to increase its share in global banking revenue collection from 1.5 per cent in 2009 to 2.8 per cent by 2015, Mr Gururaj said.

Citing Ernst & Young's 2011 Indian Attractiveness Survey, he said foreign investors see huge long-term growth possibilities in the growing country where GDP is projected to surpass eight per cent annually and the number of people in the middle class is set to treble over the next 15 years. With a corresponding impact on disposable income, domestic demand was expected to grow exponentially, he said, adding that a young demographic profile with well educated and cost-competitive work force has put India in a strong position to attract an increasing proportion of global FDI.

The Chairman of Shivani Group of Institutions, Mr P. Selvaraj, presided over the function.

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