Indian BFSI Sector Experiencing High Growth

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  • 31 Jan 2024
Indian BFSI Sector Experiencing High Growth

Along with technological advancements and regulatory reforms, the growth is happening for many reasons. Some of them include more people who haven't used credit before, more spending by a growing middle class, and companies being better at giving out credit both in physical stores and online. The industry has witnessed a renewed resurgence in investment interest, with deals worth USD 5 billion in 2022.

The advent of mobile banking, online payment systems, and digital wallets has transformed how financial services are delivered. Digital platforms not only enhance the customer experience but also provide cost-effective solutions for financial institutions. The push towards a digital economy, catalyzed by initiatives like the Digital India campaign, has further accelerated the transformation in the industry.

With the implementation of Jan Dhan Yojana, millions of Indians now have access to basic banking services, insurance, and pension schemes. This inclusive approach benefits individuals and contributes to overall economic growth by expanding the customer base for financial institutions.

Investors engaged with the sector injected substantial capital and expressed confidence in its potential for growth. It is expected to be the third largest in the world by 2025.

Here are the some of the BFSI stocks that you can invest in:

1. State Bank of India

As a powerhouse in the Indian banking sector, SBI has an extensive network of branches and a significant market presence. Its extensive customer base and diversified operations, including retail and corporate banking, give it stability.

  • As of 1st November 2023, the 3-year trailing return of SBI stocks stood at 44.25%

Source: Value Research

2. ICICI Bank

Established in 1994, it has grown to become one of the largest banks in India and has a significant global presence. ICICI Bank offers various financial products and services, including retail and corporate banking, wealth management, insurance, and asset management.

  • As of 1st November 2023, the 3-year trailing returns from ICICI Bank's stock stood at 33.14%.

Source: Value Research

3. ICICI Prudential Life Insurance

ICICI Prudential Life Insurance is a joint venture between ICICI Bank and Prudential Corporation Holdings Limited, it combines the expertise of a trusted Indian financial institution and a globally renowned insurance provider.

  • As of 1st November 2023, the 3-year trailing returns from ICICI Pru's stocks stood at 8.86%.

Source: Value Research

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