Dun & Bradstreet India is pleased to present to you the publication titled ‘BFSI Sector in India’ under the ‘D&B Sectoral Round Table Conferences’ series. The publication provides an overview of the key developments in the BFSI sector and highlights the factors that provided an impetus to the growth of the sector as well as the hindrances faced by it.

More than a year since the outbreak of the crisis, countries around the world continue to witness sluggish economic growth. The crisis has already profoundly affected the global financial system. The scale of the losses suffered has seriously damaged financial firms’ balance sheets. The crisis has left deep scars on the banking industry, which was arguably the hardest hit segment of the financial sector. While the turbulence in the global financial sector impacted the Indian financial markets especially the equity and forex markets, the banking industry largely remained resilient in the aftermath of the global financial turmoil. The emphasis on deregulation and liberalisation coupled with prudent regulatory framework has made the banking sector resilient and competent enough to face emerging global challenges. Though the insurance and mutual fund industry did feel the pinch of the global meltdown, they still managed to perform relatively better than their global counterparts. The publication would further provide an evidence on the relatively stronghold performance of the BFSI sector in India backed by incisive analysis of the banking, NBFC, mutual fund and insurance industry.

India has emerged as one of the fast growing economies in the world, having recorded an annual average growth rate of 8% during the last four years. Even during the turbulent times, the Indian economy recorded a modest growth rate of 6.7% during FY09. India, with a population of more than a billion and rising per capita income, provides an enormous opportunity for the BFSI companies to expand by introducing of new products, leveraging technology, deploying innovative strategies and ramping up distribution network.

The global financial order is likely to change significantly in the aftermath of the crisis. The changing market dynamics coupled with consolidation and globalisation will be crucial in determining the progress of this sector in the next few years. Leading players have started redefining their strategies and goals in the form of confidence building measures and innovative financial products to match up to international competition; and it is expected that their role will be magnified manifold in leading the country’s economic development. We, at D&B, are extremely optimistic about the progress of this sector and shall continue to track it for facilitating informed business decisions.

I hope you enjoy reading this publication and look forward to receiving your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet