BFSI Centre of Excellence in GIFT City

Transcription

1 BFSI Centre of Excellence in GIFT City Skill Development Government of Gujarat

2 Contents Project Concept 3 Market Potential 5 Growth Drivers 6 Gujarat Competitive Advantage 7 Project Information 10 - Location/ Size - Infrastructure Availability/ Connectivity - Manpower - Key Players - Potential Collaboration Opportunities - Key Considerations Project Financials 11 Approvals & Incentives 12 Key Department Contacts 13 Page 2

3 Project Concept BFSI Sector Overview What is BFSI sector center of excellence? The centre of excellence is planned to be set up to bring organizations of banking, financial services & insurance together for creating strategies and operational plans for creating standardized skillsets required for various job profiles across the industry. The centre will give accreditation to leading organisations who would partner to impart training. According. to NSDC, Banking and Financial Services Sector will require 1.6 million skilled workforce by 2022.The aim of BFSI centre of excellence is to strengthen the foundation of the banking, financial services & insurance in the state of Gujarat. Penetration of financial services in Gujarat No. of people/ bank With a population of 6.04 crores and number of banks at 5279, the penetration of BFSI stands at people per bank in Gujarat as against national average of 13,379. * Skills in banking & financial services Category of skills Core Skills Allied skills Skills with acute shortage Skills Knowledge on core banking/ mobile/ internet platform Marketing & Skills Insurance underwriting, claims management There are 5279 scheduled commercial bank branches in Gujarat as on March Gujarat has average population per bank of against national average of as on march 2012 Page Average population per bank (in thousand) Gujarat India Average Source: District wise skill gap study for state of Gujarat National skill development corporation

4 Project Concept Centre of excellence Project facets Classroom course 3 months classroom courses on concepts of banking & financial services which would be certified by The BFSI sector skill council of India Real time training 4 weeks compulsory training for experience of real banking world, which would help individual compare real scenario with basic concepts learnt in class Workshops by industry professionals Workshops by professionals from industry, which would make students industry- ready Regular revision of curriculum Curriculum to be devised by taking inputs from industry leaders & regular interaction with them to meet up with ever changing needs Accessibility Special focus on improving accessibility on training and education for disadvantaged section Promoting research and development Conduct market survey/need assessment studies on a continuous basis to meet the industry demand Future prospects/ expansion of BFSI industry Innovating ideas for project financing Elementary courses on BFSI for Women & Senior citizens Courses on basics of financial services Training on how to manage/ invest/ make best out of money Sessions on importance of life & non life insurances Page 4

5 Project Concept Course Categorization The course description against various skill sets pertaining to BFSI have been listed below: Equity dealer Prepare for dealing operations, carrying out dealing operations Mutual fund agent Conduct research, market & sale mutual fund, assist with purchase of mutual fund, perform after sales activities Loan approver officer Prepare loan file, process and review application, perform post loan approval tasks Recording & reporting Recording receipts and payments, recording for provisions, preparation of bank reconciliation statement, preparation of depreciation worksheet, preparing reports on profit & loss account, balance sheet and so on Debt recovery agent Banking basics & products, Understanding of operations in collection, specific soft skills, beware of various case-laws on recovery issues Business correspondent Source new customer, assist with application process, facilitate/ execute transaction, provide ongoing services Business facilitator Assist with application procedure, attract new customers Accounts executive Perform payroll functions, accounting entry, statutory advice, salary advice, salary journal and so on Page 5

6 Market Potential- Gujarat The state of Gujarat is targeting overall skill training capacity to reach 2.5 million by 2017 Incremental human resource requirement in banking & financial services with skilled & semi skilled between are 44,800 & 134,400 respectively Young talent would be needed in the industry with the older lot nearing their retirement age. There is a significant opportunity in contractual employment across all the segments at various positions such as Insurance agents, Direct Selling Agents (DSA s), and so on. Financial institutions are realising the importance of technology infrastructure, in order to capture larger markets, gain competitive edge & improve overall customer experience. Incremental Human Resource requirement in BFSI between Skilled 44,800 Semi-skilled 134,400 Source: District wise skill gap study for state of Gujarat National skill development corporation Page 6

7 Growth drivers- BFSI sector Banking & financial services With new licences being issued to financial institutions by the RBI and government planning to expand financial services into rural areas Latest guidelines of RBI will streamline loan system Life Insurance According to a report by BRIC data the Indian life insurance industry is estimated to grow at a compounded annual growth rate (CAGR) of 14.1 per cent, between 2011 and 2015 from US$ 66.5b to US$ b Changing consumer behavior, GDP growth rate, changing socioeconomic demography & regular natural calamity Health Insurance The Indian health insurance industry is expected to grow at a CAGR of 37.2% between FY11 & FY16; with rising awareness, increasing medical cost, increasing population India BFSI sector will require incremental manpower of 1.7 m during by 2022* (Base Year 2013) Human resource requirement in BSFI Industry The projected manpower requirement of the India BFSI labor force by 2022 is 8.5 million** Source : * National Policy for Skill Development and Entrepreneurship Source : ** BFSI Sector Skill Council Page 7

8 Gujarat Competitive Advantage Key Differentiators of Gujarat The demographic and economic contour of Gujarat provides opportunity for skilled personnel for economic development through skill up gradation. The state of Gujarat has been on a high growth path. It has experienced an average growth rate of over 8% annually for the last three years. As per National Skill Development Corporation estimates, Gujarat has a significant demographic dividend in the near term, with a rising working age population. Gujarat is expected to register a net addition of lakh to the labour force during , and another lakh during FDI limits in financial services Sector % of equity/ FDI cap Entry route Asset construction company Banking-private sector 100% of paid up capital of ARC Automatic upto 49% Government route beyond 49% 74% including investment by FIIs/ FPIs Automatic upto 49% Government route beyond 49% and upto 74% Banking public sector 20% (FDI & portfolio investment) Government Commodity exchange Credit information company Infra company in the securities market 49%(FDI+FII/FPI) Investment under FDI-limited to 26%, Investment by FII/FPI under Portfolio investment scheme will be limited to 23% 74%(FDI+FII/FPI) 49%(FDI+FII/FPI) (FDI limit of 26% and FII/FPI limit of 23% of paid up capital Automatic Automatic Automatic Insurance 26%(FDI+FII/FPI/+NRI) Automatic Non-banking finance companies 100% Automatic Source: Department of industrial policy and promotion, Government of India Page 8

9 Project information Location Location: BFSI CoE (Centre of Excellence) in Gift city. Land shall be facilitated by Gujarat International Finance Tec-City Company Limited (GIFTCL) Infrastructure Availability/ Connectivity Ahmedabad has an extensive outlay of existing infrastructure - rail, road and air - which make it an excellent investment destination Ahmedabad is connected via rail broad gauge to Delhi and Mumbai The Government is also developing a Ahmedabad Vadodara rail link In October 2014, a metro project was approved for Ahmedabad and Gandhinagar Ahmedabad has an international airport with cargo handling capacity of ~50,000 tonnes per year A new international airport at Dholera is under development which is expected to become operational by 2018 Ahmedabad is also in close vicinity of other domestic airports such as Surat and Vadodara The city is connected to Delhi Mumbai Industrial Corridor (DMIC). DMIC is intended to be the manufacturing hub serviced with world class infrastructure. It also has a very good connectivity with other cities of the state such as Vadodara (182 km) and Surat (278 km) The city is also connected to several leading sea ports such as Dahej, Kandala, Mundra and Nhava Sheva sea port Most of the sea ports are within 300 km from Ahmedabad Page 9

10 Project Information Manpower Availability: For BFSI center of excellence in GIFT City. This Centre of excellence will create a strong base for banking and financing activities It will be a Centre which will promote special skill development in the area of banking and finance It will promote research and development to initiate innovate ideas in project financing It will also work towards improving financial literacy of the population of Gujarat Manpower requirement Position & Responsibility Number Managing director 1 Director (Training, Apprenticeship, Employment, Admin, cash) 5 Assistant director 5 Training officers 15 IT team 5 Librarian 2 Clerical Staff (admin, accounts etc.) 10 Other Staff (peon, security) 5 Maintenance Department 9 Total 57 Page 10

11 Project Information Key Players BANKING LIFE INSURANCE State Bank of India ICICI Bank Disha microfin pvt ltd. Life Insurance corporation of India HDFC Standard life Insurance Aviva life Insurance MUTUAL FUNDS NON LIFE INSURANCE UTI Mutual Fund Prudential ICICI Franklin Templeton National Insurance Company Ltd The New India assurance Co. Ltd The Oriental Insurance Co. Ltd Potential Collaboration Opportunities BFSI Academy The BFSI Sector Skill Council of India Indian Institute of Banking and Finance (IIBF) National Skill Development Agency Key Considerations Idea, vision and objective of CoE Preparing long term training and capacity building strategy for BFSI Study of gaps and needs - extensive SWOT analysis and interactions with various concerned stakeholders. Creation of databases and expertise to be readily used Identification and documentation of best practices Developing training modules for all levels Serve as a platform for public policy consultation Maintain the standards in training and education by providing certification for quality performance Page 11

12 Project Financials Cost of setting-up a BFSI centre of excellence facility in GIFT CITY A team of people that promote collaboration and using best practices around a specific focus area to drive business or customer-valued results. Project cost Project components & specifications Buildings (office, training rooms, laboratory, seminar hall, server, IT room, cafeteria etc.) Built-up area: 1000 sq. meter Average rate: INR 25,000 per sq. meter Cost (INR crore) 2.50 Machinery and equipment (Computers-peripherals, hardware etc.) 2.0 Miscellaneous fixed assets (Furniture and fixtures, office equipment, etc.) 0.50 Sub-total 5.00 Project engineering and consultancy charges (@5%) 0.25 Preliminary and pre-operative expenses (@12%) (Company formation, interest during construction, etc.) 0.60 Contingency (@10%) 0.50 Indicative Project cost 6.35 Note : Indicative Project cost may vary subject to the scale and requirement of the Project Page 12

13 Approvals & Incentives Approvals For project approvals, the project report should be submitted to District Industries centre, DIC. DIC will forward the proposal to Industries Commissioner who will submit the report to State Level Approver Committee (SLAC) for final approval. Incentives from Government of India /Gujarat NSDC funding- NSDC will provide funding assistance for creation of skills infrastructure and / or working capital requirement for skill development activity for the first three years only. Funding would be up to a maximum of 75% of the investment requirement Scheme for 'Setting up Mini Tool Room & Training Centres under PPP Mode'- an NMCP Scheme - Financial assistance would be provided by Government of India (GOI) to set up Mini tool rooms through a Public Private Partnership mode. Incentives from Government of Gujarat Assistance Scheme Name Marketing/publicity assistance of up to INR 10 lakh will be provided for the introduction of innovated product in the market Up to INR 10 lakh assistance will be provided for Cost of Raw Material / Components & other related equipment required for the innovative process Assistance for Startups / Innovation Govt. will support selected innovator to get free access to University / Libraries / Govt. Laboratories / PSUs to have more clarity on his innovative ideas / concept Page 13

14 Directorate of Employment & Training Ministry of Skill Development And Entrepreneurship Finance Department, Government of Gujarat Gujarat International Finance Tec-city (GIFT) Gujarat Knowledge Society, Government of Gujarat National Skill Development Corporation, Gujarat Industrial Extension Bureau This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision. Directorate of Employment & Training Phone: director-det@gujarat.gov.in