1. Presented By: CA ANAND SAKLECHA
Phase in Indian Banking and Alternative Source of Finance
Presented By: CA ANAND SAKLECHA

2. FINANCE:
Finance includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk.
Three distinct categories of Finance:
Public Finance
Corporate Finance
Personal Finance

3. Evolution of Indian Banking Sector

4. Liberalization (1991 & onwards):
In order to improve financial stability and profitability of Public Sector Banks the following recommendations were made to reform banking system in the country:
To make banks competitive and strong and conducive to the stability of the financial system.
No more nationalization of banks.
Foreign banks would be allowed to open offices in India either as branches or as subsidiaries.

5. Public sector banks and private sector banks should be treated equally by the Government and RBI.
To encourage Banks to abandon the conservative and traditional system of banking and adopt progressive function such as merchant banking and retail banking, etc
Foreign banks and Indian banks permitted to set up joint ventures in these and other newer forms of financial services.
10 Privates players got a license from the RBI to entry in the Banking sector.

6. Sector wise Credit distribution
Key Points:-
As per data publishes by RBI on Jan 19, 2018 Total credit distributed is Rs. 96,895 Billions.
Major proportion of Credit mainly infused in Industrial sector, Priority sector, Personal loans.
Total Rs billions infused in Industrial and Priority sector. Personal loans are infused of by Rs billions.

7. Retail Lending Scenario
Key Points:-
Total personal Loan: Rs Billions
Major portion of retail lending is given for housing Purpose with total exposure of Rs Billions.

8. V/s
Bank Fraud
Intentional act of deception involving financial transactions for purpose of personal gain. Fraud is a crime, and is also a civil law violation.
Bad Loans
(Defaults)
It is failure to meet legal obligations (or conditions) of loan.

9. Pitfalls of Indian Credit Industry:
Bad loans :
At nearly Rs10 lakh Crore, India’s pile of bad loans is bigger than the gross domestic products of at least 137 countries.
The share of gross NPAs in India could inch up to 10.2% by March 2018, from 9.6% in March 2017, according to the FSR.
Bank fraud:
As per RBI, almost all corporate loan-related fraud cases get seasoned for two to three years as NPAs before they are reported as fraud.
In the last five years, the volume of bank fraud has increased by 19.6% to 5,064 cases.

10. Bad Loans Examples: Good Loans Asian Paints Ltd Bajaj Corp Ltd
Colgate Palmolive (India) Ltd
Dabur India Ltd.
HUL
Good Loans
Defaulters:
Bhushan Steel Ltd.
Sahara
Essar Steel Ltd.
Frauds:
Nirav Modi (Gitanjali)
Kingfisher Airlines
Bad Loans

11. Road Ahead Block Chain Technology.
Artificial Intelligence- From Sci-fi to reality.
Proliferation of non banks.
Banking on Cloud First Technology.
Banking Architecture Simplification.
Automated Financial Services Employees.

12. Recent Government Initiatives:
Following are the initiatives taken by the Govt. of India to strengthen the Credit lending Institutions:
Planning to introduce a 2% discount in GST on B2C transactions made via Digital Payments.
Introduction of ‘The Banking Regulation (Amendment) Bill,2017‘.
Capital infusion of Rs 2.11 lakh Crore. The Lok Sabha has approved recapitalization bonds worth Rs 80,000 Crore for public sector banks.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been passed.

13. No Route to Escape
With the introduction of Insolvency and Bankruptcy Code (IBC), following schemes are now no more:
5/25 Scheme
CDR Scheme
SDR Scheme
S4A Scheme
JLF Mechanism

14. Alternative Modes Of Finance:
Equity
IPO
FPO
Private Placement
Venture Capital Financing
Strategic Investors
Debt
Inter corporate Deposit (ICD)
Commercial Papers
Treasury Notes
Bonds
Asset Securitization

15. Thank You !
By: CA Anand Saklecha