Category — Banking & Financial Services

India Holds $124 Billion in U.S. Securities

The most recent data available with the U.S. Treasury Department shows that India increased its holding of American government securities to $124.1 billion at the end of April, a $7 billion increase from the previous month.

Among the BRIC nations, India had the third largest exposure to the U.S. government securities after China and Brazil, while Russia‘s holding rose to $104.9 billion reports the Press Trust of India.

With the U.S. economy witnessing relatively better economic growth trends, India has hiked its exposure to the securities. According to the latest estimate from the Bureau of Economic Analysis released last month, “Real gross domestic product increased at an annual rate of 1.2 percent in the first quarter of 2017.”

picture depicting growth

June 27, 2017   No Comments

M&A Deals Surge in India

According to assurance, tax, and advisory firm Grant Thornton, during January-May 2017, there were 170 mergers and acquisition deals worth $35.45 billion in India, registering a significant jump over last year deals worth $13.37 billion.

“All eyes seem to be now on the Goods and Services Tax implementation and its impact on not only trade and economy, but more importantly on investor interest,” Grant Thornton India partner Prashant Mehra said. He added that since there is a clear visibility on this, one should see good traction in both M&A and PE.

A handshake

In May, the e-commerce sector led the deal activity by contributing over 53 percent of the total transaction value. The month also witnessed deals worth over $100 million in the banking and financial services, hospitality and leisure, and real estate sectors, Grant Thornton’s report added.

“Increasing consolidation is driving deal volumes in the start-up sector, capturing 25 percent of volumes with highest activity witnessed in the on-demand services space,” quotes BusinessLine from the report.

June 21, 2017   No Comments

Diebold Nixdorf Targets over 30 percent Revenue Growth in India

With 49 percent market share in the ATM segment, and a presence in 4,000 Tier I cities in India, Ohio-based Diebold Nixdorf plans to shift its focus to Tier 2 and Tier 3 cities. This is part of its strategy to grow its retail business in India the company’s managing director S. Asia, and vice-president, operations, Asia-Pacific, Jaivinder Singh Gill, told BusinessLine. “We have started work [entering Tier 2 and Tier 3 cities]. We should get returns in 2018-19. We need different solutions and products for that market,” he said.

Diebold Nixdorf PoS machine

Gill sees ample opportunities to grow the retail (ePoS) side of the business in India. The target is to grow retail revenues by 30-40 per cent this fiscal, he said. The company will also look to manufacture ePoS machines under the ‘Make in India’ program, Gill added.

 

June 16, 2017   No Comments

ATM Maker Diebold Says India is a High Growth Market

With a presence in over 4,000 cities and towns, Ohio-based Diebold has operated in India for more than 25 years and is well versed in the country’s banking and financial narrative. The company recently completed integration after acquiring German corporation Nixdorf.

In an interview with CXO Today, Jaivinder Singh Gill, managing director – South Asia and vice president Operations – Asia Pacific, Diebold Nixdorf, discussed the future of the banking and e-Point of Sales (PoS) market in India.

Lightly edited excerpts from the interview:

The current scenario of banking

Gill: The number of banking outlets in the villages went up from 67,694 in March 2010 to 586,307 in March 2016 after India’s central bank permitted the appointment of Banking Correspondents – entities engaged by a bank to provide banking services in geographical territories where banks are under represented. A banking correspondent works as an agent of the bank and substitutes for the brick and mortar branch of the bank. The number of urban locations covered through such Banking Correspondents also surged from 447 in March 2010 to 102,552 in March 2016.

On the changing consumer patterns in Indian banking

Gill: Since currency demonitization in November 2016, ATM transactions have increased by 26% and the value of ATM transactions is up by 83%. Customer transaction behavior is now a mix of both ATM and PoS transactions. We see the increasing usage of mobile phones as a banking channel and the use of social media by millennials to interact with banks.

On the implications of India moving towards a digital economy

Gill: The PoS market is expanding fast in India with digital adoption on the upswing. Some data facts highlight that there has been a 67% growth in the absolute number of terminals across the country. There has been a 64% growth in the number of P0S transactions in India.

The PoS market is directly linked to the growth in the retail industry which has a very high growth potential in India. This high growth will be see in Tier 2 and 3 cities/ towns due to rapid urbanization, growing aspiration levels, and availability of credit.

Augmented Reality and Virtual Reality are two key levers which retailers need to focus on to drive footfalls. Adopting an Omni-channel approach is another major criterion on which the retailers need to shape their strategy on.

On how products like PoS or ATM machines will support the economy

Gill: The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 percent of the country’s GDP and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space and the Indian retail market is expected to nearly double to $1 trillion by 2020, driven by income growth, urbanization and attitudinal shifts.

The e-POS solution delivers a seamless, Omni-channel retail experience to enhance competitiveness. It can rapidly roll out pre-configured templates to support diversification into different retail sectors and accelerate international expansion with centralized store-lifecycle management. The technical benefits are also immense: it enables a reliable, secure and easily manageable platform for retail asset management based on trusted industry standards. It also comes with comprehensive data exchange options and offers support for centralized and client/server configuration.

On the roadmap for the India market in the next one year

Gill: We expect high growth in cash recycling with almost 30% y-o-y market growth expected in 2017/18 per our internal estimates. Branch redesign and teller automation is also a focus area for banks to reduce their operational costs. Growth is also expected in cash system logical security solutions, multi-vendor software solutions, services, and e-POS growth in Tier 2/ 3 market segments. The ATM replacement market with banks opting for technology refresh also has immense potential. This growth market is predicted to reach up to 52% of the overall procurement by 2021.

Mobile and Stationary PoS

June 14, 2017   No Comments

India Tops Global Retail Development Index

India has overtaken China to secure the top position among 30 developing countries on ease of doing business, according to AT Kearney‘s the 2017 Global Retail Development Index, now in its 16th edition.

This index ranks the top 30 developing countries for retail investment worldwide and analyses 25 macroeconomic and retail-specific variables. India’s rapidly expanding economy, its relaxing of foreign direct investment rules and a consumption boom are the key drivers for India’s top ranking in the  Global Retail Development Index reports the Economic Times. India’s retail sector has been growing at an annual rate of 20 percent. Total sales surpassed the $1 trillion mark last year and the sector is expected to double in size by 2020.

 “The study is unique in that it not only identifies the markets that are most attractive today, but also those that offer future potential,” said management consulting firm AT Kearney. “India’s top ranking is a clear vote of confidence in its retail market and vast growth potential,” said Debashish Mukherjee, Partner with A T Kearney and Head of the Consumer Industries & Retail Products Practice for India.

India Tops GRDI 2017

June 13, 2017   No Comments