D&B BFSI Companies Study - 2017

by Shrutee K/DNS

Dun & Bradstreet, the world’s leading provider of business information, knowledge, and insight, has been tracking the banking, financial services and insurance (BFSI) sector for the past eight years through its publication titled ‘India’s Leading BFSI Companies’. The ninth edition, in this series, ‘India’s Leading BFSI Companies 2017’ highlights the contribution of key stakeholders of the BFSI sector across India and the growth of the sector. The publication profiles the leading players of the BFSI sector with an annual total income of ` 250 million and above in FY16. Accordingly, the publication profiles 303 companies – comprising 88 banks, 119 non-banking financial companies, 53 insurance companies (life and non-life), 24 asset management companies and 19 broking companies.

Following are some of the key highlights in this publication:

Credit growth of all scheduled commercial banks (SCBs) slowed down to 8.8% in FY16 from 9.7% in FY15. Similarly, the deposit growth rate of all SCBs decelerated to 8.1% in FY16 as compared to 10.7% in FY15

The aggregate balance sheet of the NBFC sector increased by 15.5 % in FY16 on a y-o-y basis as compared to that of 15.7 % in March 2015

FY16, the total premium income of the Indian life insurance industry stood at ` 3,669.4 bn, registering a growth of 11.8% over the previous year

In FY16, the total direct premium underwritten by the non-life insurers in India stood at ` 963.8 bn as against ` 846.9 bn in FY15, registering a growth of 13.8%

In the mutual funds industry, the average assets under management (AAUM) crossed the ` 12 trillion mark at the end of FY16

The BFSI sector is witnessing a very positive environment on the back of government reforms and high level application of financial technology. The leading companies from the BFSI sector are expected to play a critical role in transforming the nation into a digital economy. Dun & Bradstreet will continue to keep track of various developments in this sector to make this publication a ready reference tool of the BFSI sector.

Key segmental highlights of the BFSI sector which form part of the publication:

Banking Sector:

Advances growth of all profiled SCBs slowed down to 6.9% in FY16 from 9.7% in FY15.

The growth in aggregate deposits moderated to 7.0% in FY16 from 10.6% in FY15. However, as we all know that after demonetization, the landscape has changed during Q3 FY17.

The biggest concern is rising NPA; the gross NPAs of all SCBs sharply increased to 7.7% as of March 2016 compared to 4.4% in March 2015.

NBFCs and FIs:

The total income of the profiled NBFCs and FIs grew by 7.7% in FY16 as against 15% in FY15

On other hand, profit of these NBFCs remained nearly flat as against 14% growth in FY15

Net profit margin slowed down slightly from 17.6% in FY15 to 16% in FY16

Indian Capital Markets:

The total income of the profiled broking companies declined by 2% in FY16 as against whopping growth of around 50% in FY15. Profit declined by around 25%in FY16.

The net profit margin stood at 16% in FY16 as compared to 21% in the previous year

Insurance sector:

Life Insurance

During FY16, the life insurers issued 26.7 million new policies as compared to 25.9 million policies in FY15

The total premium income of the life insurance companies stood at Rs 3.7 trillion in FY16 - registering a growth of 12%.

Non-life Insurance

The non-life insurers underwrote 122 million policies in FY16 as compared to 118 million policies in FY15.

The total direct premium underwritten by the non-life insurers in India stood at Rs 963 billion in FY16 - registering a growth of 14%.

Mutual Funds:

The profiled AMCs showed 31% growth in both income and profit in FY16

Average Assets under Management (AAUM) grew by 17% at the end of the fourth quarter of FY16 on y-o-y basis.