Birla SL has launched the new fund offer of Birla SL Banking & Financial Services Fund, an open ended scheme. The NFO opens for subscription on 25 Nov 2013 & closes on 9 Dec., 2013. No entry load will be applicable for the scheme.

 About Sector

The financial sector consists of Banks, Non Banking Financial Services companies, Housing Finance Companies, Stock Broking Companies & Credit Rating Agencies etc.

The well developed sector yet under-penetrated financial sector is managed through a sound regulatory framework by the RBI, SEBI, and IRDA & PFRDA under the Ministry of Finance.

Why Banking & Finance Sector?

High Growth Sector

The banking sector was witnessed study growth, with 19% increased in Bank Deposits, 23% increase in Credit in the last 8 years. Non Banking Finance Companies have also shown a strong 26% growth in their asset base in the same period. 

Driven by Recent Reform Measures

Area of Reform

Reform

Potential Impact
  

 

 

Banking & Financial Services

Issue of Bank licenses by Jan 2014 Financial inclusion & growth of an underpenetrated & underserved non-urban market.
Allow foreign banks to enter India & even take over domestic lenders. The sector is expected to benefit from large global players’ transfer of technologies & best practices, & lead to healthy competition.
NHB allowed risk weightage on loans > Rs 75 Lakh, to be reduced from 125% to 75% This would free up capital requirements & allow HFCs to lend more.
49% FDI in Insurance (from current 26%) Help boost investments in the sector & attract more serious global players.
IRDA increased exposure limits to HFCs (for insurance co. investing in these) This would allow insurers lend more to the sector, thereby providing access to valuable capital from the insurance sector to the HFCs.
 Infrastructure Cabinet committee on Investment for Fast tracking infra projects. Already cleared over 171 projects worth Rs. 1.5 Lakh Cr. in order to kick-start the investment cycle, which is the need of the hour
  Fiscal Consolidation Reduce deficit to 3% by FY 17, through expenditure cuts, hike in railway fare, Diesel price deregulation & PSU Disinvestment. Improved economic growth which would directly impact the growth of the sector, & throw up multiple opportunities for companies engaged in Infra Finance, Mortgages, CV finance, etc.

 

Issue DetailsBirla SL Banking & Financial Sector Fund
Issue Open25 Nov 2013
Issue Close9 Dec 2013
Issue TypeAn Open Ended Banking & Financial Sector Scheme
Face ValueRs 10
Entry LoadNil
Minimum Application Amt5000
BenchmarkCNX Finance
Fund ManagerMr. Satyabrata Mohanty

 

RajendraMutual FundBirla SL has launched the new fund offer of Birla SL Banking & Financial Services Fund, an open ended scheme. The NFO opens for subscription on 25 Nov 2013 & closes on 9 Dec., 2013. No entry load will be applicable for the scheme.  About Sector The financial sector consists of...Investment you need