Dun & Bradstreet has released the third edition of "India's Leading BFSI Companies 2010". The publication highlights the growth and performance of 253 companies with an annual total income of Rs 250 million and above in FY10.
According to the report, the total assets for banks grew by 22% CAGR for FY05-FY10. Investments followed suit with 15% CAGR.
The report further says that deposits grew faster than advances y-o-y for financial institutions (FIs) in FY10. Consequently investments rose by 14% and borrowings witnessed a relatively slower growth, it adds.
“The overall real rate of growth in 2010-11 is expected to be 8.50-8.75%. We need to recognize that growth in 2011-12 cannot be higher than in 2010-11 as the growth in 2010-11 reflects the rebound in agriculture which cannot be expected to repeat in 2011-12. Moreover, constraints in various sectors are showing up and these issues need to be tackled before India can move over to a higher growth trajectory,” said S S Tarapore while speaking at the launch of the report.
Meanwhile, the total income of the FIs grew 7% from Rs 142.7 billion in FY09 to Rs 153.31 billion in FY10. Expenses, on the other hand, grew at a relatively slower pace of around six%. PAT for FIs thus grew by 9%, says the report. The net interest margin (NIM) improved from 1.6% to 2.3%.
On a different note, Residuary Non-Banking Companies (RNBCs) witnessed assets decline, however the net owned funds (NOF) increased on account of RNBCs shifting away from public deposits. Primary Dealers (PDs), however, continued to have the highest NOF/total assets ratio of 35% in FY10.
Debt schemes continued to form a large portion of the mutual fund industry – 51% share in FY10; investments too remained directed in the debt schemes. Equity schemes witnessed volatility in funds.