Finance & stock markets

stock marketThe Ministry of Finance handles all financial matters of the country. India’s inherent strengths include an extensive commercial banking system, an independent regulatory authority, active stock market, established term lending institutions, investment funds, equipment leasing companies, venture capital funds etc.

Worldwide Stock Markets

Source: World Federation of Exchanges, 2014 year-end

Country Market cap
(US$ trillion)
USA
Japan
China
Hong Kong
UK
Canada
France
Germany
India
Switzerland
Australia
23.8
4.5
4.2
3.8
3.7
2.1
2
1.8
1.6
1.5
1

Note:

The capital markets in India are regulated by the Securities and Exchange Board of India (SEBI). India has over 20 million shareholders, over 9,000 companies listed on the stock exchanges, serviced by approximately 7,500 stockbrokers. Bombay Stock Exchange (BSE), the oldest stock market of Asia. BSE is the tenth largest stock market in the world and NSE is the world’s eleventh largest in terms of market capitalization (Source: World Stock Exchanges, Dec 2014). There is a large presence of FIIs in the Indian capital market with over 451 FIIs and 38 foreign brokers registered with SEBI.

Assets under management (AUM) by the Indian Mutual Fund industry

Source: moneycontrol.com

March 2015 Rs 11,87,477 crores
February 2010 Rs 7,81,711 crore
May 2008 Rs 6,00,000 crore
End-March 2000 Rs 1,13,005 crore

Note: In India, there are 41 registered Mutual Fund houses, including investments in income funds, equity or growth funds, balanced funds, gilt funds, ELSS and Liquid funds/ money market funds.

Individual Wealth in India

The total individual wealth in India, held by individuals is as given below (2009-10), as per World Wealth Report.

Asset-wise break-up of individuals Amount (Rs cr)
Direct equity
Fixed deposit and bonds
Life Insurance
Savings bank deposits
Small savings (PO/ KVP/ NSC/ etc.)
Provident fund
Mutual Fund
Employee’s Pension fund
Others (Debentures/ PE/ VC/ etc.)
22,73,043
22,16,307
9,47,903
675,134
519,162
281,559
277,953
98,242
18,575
Total 73,07,878

individual assetsIf we include physical GOLD and real estate, the individual wealth increases to Rs 95 lakh crores (US$ 2.12 trillion). Privately held gold in India is worth Rs 9.2 trillion (4 times the amount held in Fort Knox and about 1/5th of all gold ever mined in the world (source: World Gold Council). The individual HNI wealth across the globe is estimated at US$ 48.5 trillion, 2013.

Tax payers in India

Source: Central Board of Direct Taxes

Individual tax payers HUF tax payers
2013-14
2009-10
2008-09
1997-98
35 million
31.3 million
30.1 million
10 million
~8 lakhs
8,06,236
7,68,845

Number of middle class households in India are 26 million in 2009-10 (annual incomes of US$ 5,000-12,000).

gross savingsIndia’s annual savings of about Rs 22,12,414 crores (2012-13) is amongst the highest in the world, including Rs 10.97 lakh crores of household savings. Our Savings to GDP ratio is around 31% (2012-13) compared to 33% in 2005; 23.7% in 2000 and 24% in 1995.

 

Indian credit-card market

Source: Reserve Bank of India

Year Credit cards (crores) Debit cards (crores)
Dec 2014 2.04 50.01
2009-10 1.83 18.14
2007-08 2.75 10.24
2006-07 2.62
2005-06 1.73 4.98
2004 1.2

Medical insurance statistics

Source: Insurance Information Bureau, India

Yr-end Policy holders
(cr)
Premiums
(Rs cr)
Claims made
(lakhs)
Claims paid
(Rs cr)
2004*
2005*
2006*
2007*
2008*
2009*
2010
2011
2012
2013
0.84
0.90
1.64
1.79
2.41
3.27
5.49
5.25
2.91
3.48
944
987
1,947
2,820
2,758
3,976
7,803
10,932
10.942
12,941
3.6
5.55
10.17
10.06
14.37
20.81
32.64
38.44
25.91
35.18
785
948
1,777
2,198
2,904
4,087
7,456
10,797
8,499
8,783

Note – * Policies serviced by TPAs only

  • World’s largest marketing workforce is LIC agent base of 1 million agents
  • India’s share in of world life insurance business grew to 1.97% in 2007 with an annual premia generated worth $47.1 billion. China accounts for 2.45% world share with an annual premia of $58.6 billion.

Inflation

Source: Labour Bureau of India, 2015

Food Inflation
5 year moving avg (Approx % pa)
Wholesale Price Index (new base 2005) Consumer Price Index (new base 2010)
Dec 1997
Dec 1998
Dec 1999
Dec 2000
Dec 2001
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Feb 2010
2010-11
2011-12
2012-13
2013-14
9.7%
11%
8%
6%
4.8%
3%
0.7%
2.1%
3.8%
4.4%
5.9%
7.8%
10%
10.5%
17%





155.7







117
126
133
149
159.8
167.6
177.6



444







133
145
163
180
111.9
123.3
135

Note: The WPI has three parts — primary articles (weightage of 32.29 per cent), fuel group (weightage of 10.66 per cent) and manufactured articles (weightage of 57.04 per cent). Primary articles are meaning unprocessed food crops and fibres plus livestock. The fuel group comprises mineral oils, electricity and coal. The largest contributor to the low inflation rate, as measured by the WPI, has been the ‘manufactured products’ group.

[su_spoiler title=”Indian banking statistics” style=”fancy” icon=”plus-circle”]

RBI inflationThe Reserve Bank of India (RBI) – India’s central banking institution supervises all banking operations in the country. Among the public sector banks, the State Bank of India is the largest. World’s first floating ATM is located on a barge on backwaters of Kerala.

Outstanding homeowners mortgages in India has increased from Rs. 18,600 Cr. in 1998 to Rs. 81,000 Cr. in 2003-04 to Rs. 396,000 Cr. in 2009-10. Household debt as a % of gross domestic product for South Korea and Taiwan, exceeds 60% of their GDP, and Malaysia and Thailand, with 25% each.

Non-performing Assets (NPA) of nationalized banks, 2014

Source: Economic Survey of India

Bank statistics (India) 1998 2002 2006 2014
Total NPA of nationalized PSU banks (Rs Cr) 45,653 54,458 41,378 2,64,200*

Note:

  • 2014 NPA figures are for all banks combined
  • Private sector banking NPA for 2010-11 was Rs 18,240 cr (Rs 17,639 for 2009-10) and for foreign banks in India it was Rs 5,068 cr (Rs 7,133 for 2009-10).

Return on Assets of banks, March 2011

Source: International Monetary Fund

Country 2007 2008 2009 2010
Brazil
Russia
India
China
USA
France
Japan
Germany
UK
3.4
3.0
0.9
0.9
1.2
0.4
0.3
0.3
0.4
1.5
1.8
1.1
1.0
-0.1
0.0
-0.3
-0.1
-0.4
2.4
0.7
1.0
0.9
-0.1
0.4
0.2
0.2
0.1
3.2
1.9
1.0
1.0
0.9
0.6
0.4

0.2

Historical Banking Statistics, 2011

Source: Economic Survey of India

Bank statistics (India) 1969 1995 2011
Number of banks
Number of bank branches
Population per branch
Credit/ Deposit Ratio (%)
Cash/ Deposit Ratio (%)
89
8,262
62,697
78
8
282
62,264
14,000
59
4
283
74,130
13,466
76.5

Indian coinsAs of 2011, there were close to 300 foreign, public-sector, and regional banks – up from about 60 in 1997, and 1,645 urban co-operative banks and 1,150 rural co-operative banks in India. 288 branches of Indian commercial banks are spread over a number of countries and located in major centers like London, New York, Paris, Tokyo, Singapore and Bahrain. These branches specialize in various areas of international trade including financing of foreign trade.

[/su_spoiler]