Issue 6

Kaleidoscopical India

1. Financial Services Sector In India

2. Cityscape –Kakinada

3. Upcoming Trade shows in India

4. News highlights

KALEIDOSCOPICAL INDIA

BSE SENSEX – For the month of Dec 2017

In this issue

Issue 6

Kaleidoscopical India

Financial Services Sector In India

Introduction

• India has a diversified financial sector undergoing rapid expansion, both 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.

• 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.

• The financial sector in India is predominantly a banking sector with commercial banks

accounting for more than 64 % of the total assets held by the financial system.

46.90%

27.60%

22.70%

2.10% 0.60%

Investor Breakup

Corporates HNWI Retail Banks/FI FII

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Kaleidoscopical India

Financial Services Sector In India

Market Size

• Total Merger and Acquisition activity rose 23% to US$ 15.8 billion in value terms during January-

March 2017.

• Total value of Private Equity /venture capital investments crossed US$ 2 billion with a 29% year-

on-year increase in the number of deals in April 2017.

• Total number of mutual fund schemes in India with Assets Under Management of over US$ 1.55

billion have doubled to 12 in the past one year

• Domestic mutual fund industry's Assets Under Management touched a record high of US$ 313.06

billion, nearly a fifth of the banking system deposits, in August 2017.

• The revenues of the brokerage industry in India are estimated to grow by 15-20% to reach US$

2.80-2.96 billion in FY 2017-18, 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% growth in FY

2016-17.

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Kaleidoscopical India

Investments:

• Blue Lotus Capital, an asset management company concentrating on private investments in public

enterprises strategy, has raised US$ 15 million for its second fund, the Blue Lotus Capital

Multibagger Fund.

• Private equity investments in India rose 48 per cent year-on-year in value to reach US$ 1.22

billion with 59 deals in July 2017 backed by big ticket investments.

• International Finance Corp, a member of the World Bank Group, has invested US$ 20 million in,

Avas Financiers Ltd, which will provide housing loans to low-income consumers in rural and semi-

urban areas of India.

• Equity mutual funds in India witnessed record net investor inflows worth US$ 3.11 billion in

August 2017 and also crossed US$ 311.45 billion in assets under management.

• Amazon India received approval from Reserve Bank of India for launching their own digital

payment wallet in India, thereby tapping into India's fastest-growing digital payments business.

• Facebook Inc. owned instant messaging application, WhatsApp, is planning to enter the digital

payment services segment in India by working towards launching person-to-person payments

within the next six months.

• Samsung has launched its mobile payment service, Samsung Pay, which enables consumers to

pay for products and services at various retail locations using their Samsung smartphone.

Financial Services Sector In India

Issue 6

Kaleidoscopical India

Government Initiatives:

The Government of India has introduced several reforms to liberalise, regulate and enhance this

industry.

• The Government and Reserve Bank of India have taken various measures to facilitate easy access

to finance for Micro, Small and Medium Enterprises.

• The measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises,

issuing guideline to banks regarding collateral requirements and setting up a Micro Units

Development and Refinance Agency.

• With a combined push by both government and private sector, India is undoubtedly one of the

world's most vibrant capital markets.

• SEBI has relaxed norms for registered foreign portfolio investors in India, allowing them to

operate through the International Financial Services Centre without undergoing any additional

documentation or prior approval process.

• The Government of India has relaxed norms for small merchants with a turnover of up to US$

300,000, allowing them to pay 6% of deemed profit in tax instead of 8% of total turnover or gross

receipts received through banking channels or digital means for FY 2016-17, in a bid to encourage

cashless transactions in the country.

Financial Services Sector In India

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Kaleidoscopical India

Road Ahead:

• India is today one of the most vibrant global economies, on the back of robust banking and

insurance sectors. The relaxation of foreign investment rules has received a positive response

from the insurance sector, with many companies announcing plans to increase their stakes in

joint ventures with Indian companies. Over the coming quarters there could be a series of joint

venture deals between global insurance giants and local players.

• The Association of Mutual Funds in India is targeting nearly five fold growth in assets under

management to US$ 1.47 trillion and a more than three times growth in investor accounts to 130

million by 2025.

• Mobile wallet transactions to touch US$ 492.6 billion by 2022.

Financial Services Sector In India

72

12590

130 130 125 129 137180

252273

326

0

50

100

150

200

250

300

350

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18*

Mutual fund assets under management (AUM) (in US$ bn)

Mutual fund assets under management (AUM) (in US$ bn)

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Kaleidoscopical India

Top Indian Financial Services Companies (Indicative)

Financial Services Sector In India

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Kaleidoscopical India

Associations in India (Indicative)

Asset Finance Association of IndiaAssociation of International Wealth

Management of India

The BFSI Sector Skill Council of India Association of Investment Bankers of India

Industrial Finance Corporation of India

Financial Services Sector In India

Issue 6

Kaleidoscopical India

Industry Specific News (Indicative)

• IL&FS Financial Services ties up with J&K Bank to finance US$ 3000 million hydropower projects

• India Inc. sees deals worth US$60 billion in 2017 with big M&As

• IRDAI permits Indian, foreign insurers to open offshore business at GIFT IFSC

• KKR India Financial Services has received an undisclosed amount from an entity wholly owned

by Abu Dhabi Investment Authority (ADIA)

• India's Block chain Revolution Goes Beyond Banks Into Land Records And Private Firms

Financial Services Sector In India

Issue 6

Kaleidoscopical India

Finance Sector In India

Trade shows related to Finance Industry (Indicative)

Name of the

ExhibitionEvent Dates Product Profile

IBEX India1st-3rd February,

2018,Mumbai

IBEX India is the region’s largest trade fair andconference on banking technology, equipment& services and strives to promote the FinancialInclusion Policy of India by bringing alltechnologies and services under oneroof. Conceptualised with the vision of bridgingbanks with technology, IBEX India hassuccessfully achieved this goal since itsinception in 2011 thanks to the unanimousencouragement and support from the IndianBanking Sector. Over 10,700 bankingprofessionals have attended IBEX India in its 5editions thus far, meeting & engaging withtechnologies and products from more than 434companies.

Finbridge Expo3rd-4th February

2018, Mumbai

The prime focus of Finbridge Expo are:• To provide stage to visitors to connect and

interact with investment and wealth creation industry

• To give visitors an opportunity to learn investment strategies in stock and mutual funds and other financial instruments

Issue 6

Kaleidoscopical India

Cityscape – Kakinada

Kakinada is a city and the district headquarters of East Godavari district in the Indian state

of Andhra Pradesh. The city is often termed as Pensioner's paradise. The city was selected

as one of the hundred Indian cities to be developed as a smart city under PM Narendra

Modi's flagship, Smart Cities Mission. The city consists of two regions, connected by

bridges. The southern part, Jagannathapuram, is separated from the rest of the city by the

Buckingham Canal. The northern area of Kakinada is the more modern part of the city,

with its recent extension. An industrial belt, running north–south the length of the city,

separates the eastern part from the coast. Kakinada is bordered on the southeast by

Kakinada Bay and a marshy wetland, home to India's second largest mangrove forest and

the Coringa Wildlife Sanctuary. A branch of the Godavari River, the Gouthami, flows into

the Bay of Bengal at this point.

The Andhra Pradesh Housing Board (APHB), formed by merging the erstwhile City

Improvement Board and erstwhile Town Improvement Trust of Twin Cities is engaged in

providing housing accommodation to the needy citizens at an affordable price. It is also

engaged in construction of houses under integrated/composite housing schemes,

construction of shops, commercial complexes and multi-storied buildings. Presently APHB

is intending to take up integrated i.e. houses for all categories and income groups Housing

schemes Under Self Financing Scheme in Kakinada. Andhra Pradesh Pollution Control

Board, a statutory authority entrusted to implement environmental laws and rules within

the jurisdiction of the State of Andhra Pradesh. The Board functions through its Head

Office at Hyderabad and one of its zonal offices is located at Kakinada.

Issue 6

Kaleidoscopical India

Top 5 Sectors

Agro−products

Edible oil refineries and biofuel

plants

IT/ITES

Power generation

Natural gas and petroleum

Top Associations in the City

Kakinada Port Steave Door Staff & Workers

Association

East Godavari District Rice Millers Association

The Kakinada Mini Goods Lorry & Van

Owners Welfare Association

AP State Fisherman Development And

Welfare Association

The Cocanada Chamber Of Commerce

Cityscape – Kakinada

Issue 6

Kaleidoscopical India

Upcoming Trade Shows in India

Name of the

ExhibitionEvent Dates Product Profile

Screen Print India20th-22nd April,

2018

Screen Print India (SPI) is a leading exhibitionfor the printing industry with a heritage thatdates back to 1994. It is a platform that coversdifferent elements of the screen, textile,sublimation and digital printing technologies.The show provides an ideal platform formanufacturers to showcase their latestproducts & machinery in the screen printingdomain.

Chemlogistics India25th-26th April

2018

India is emerging as one of the most importantglobal locations for the chemical industry, withcontinuous growth in the demand ofchemicals. The Indian chemical market is oneof the fastest growing in the world, with anannual growth rate of approximately12%. Consequently, India's large coastline, landarea and the largest rail network provide animmense opportunity to logisticsand warehousing companies.

Chemspec India25th-26th April

2018

Chemspec India 2017 welcomed 11,500industry professionals to the BombayExhibition Centre in Mumbai. Visitors fromthroughout India, Europe, China and the USAhelped to make Chemspec India 2017 a trulyupbeat networking occasion as they touredover 300 exhibitor companies on-site and satin on the range of technical conferences andseminars on offer.

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Kaleidoscopical India

Upcoming Trade Shows in India

Name of the

ExhibitionEvent Dates Product Profile

Secutech India05th-07th April

2018

Secutech India is an Intersec Dubai sister

concern catering to the leading Security &

Safety companies around the world. The expo

brings together change makers from the

security industry under one roof. Co-organized

by ABEC Exhibitions & Conferences and Messe

Frankfurt, the show brings about 690+ brands

and about 28000+ visitors making it the largest

show in India. The visitors include a range of

Chief Security & Fire Officers and the decision

makers from varied sectors.

Smart Cities India expo

23rd-25th May

2018

Developing citizen friendly and economically

viable cities is an urban initiative by the

Government of India. Cities are engines of

economic growth, and it is anticipated that

40% of India’s population will live in cities by

2030. With the rapid rise in the proportion of

people living in urban areas, there is an

increasing requirement for sustainable cities.

Clean And Green

IndiaApril 2018

A high level thought leadership summit and an

international exhibition, with unparalleled

business matching and networking

opportunities, dedicated to India’s cleaning,

waste management & environment industries

Issue 6

Kaleidoscopical India

News Highlights

PM Narendra Modi, US

President Donald Trump To

Hold Talks At ASEAN Summit

PM Modi will attend the 15th ASEAN- India summit and 12th EastAsia summit. It will be the first meeting between the two leadersfollowing a proposal to have a quadrilateral alliance among India,the US, Japan, and Australia. Japan last month had indicated thatit would propose a top-level dialogue with the US, India andAustralia.

Donald Trump's "America First National Strategy" Has "Leadership Role For India"

Donald Trump's all-encompassing strategy plan looks for allies to

face what he sees as "an extraordinarily dangerous world, filled

with a wide range of threats". USA will deepen their strategic

partnership with India and support its leadership role in Indian

Ocean security and throughout the broader region

India-US Relationship Beyond Mutual Interest, Good For Humanity: PM Modi

PM Modi praised Donald Trump and the relation between India

and the US ahead of his bilateral talks with the US President on

the side-lines of the ASEAN summit in Manila during which the

two leaders discussed a range of key issues including defence

and security.

New US Defence Act Urges Pentagon To Build Enduring Defence Ties With India

The new version of the NDAA-2018 requires the Secretary ofDefence to "develop a forward-looking strategy" that would buildupon current objectives and goals, underlining a mutual desire todevelop an enduring defence relationship with India".