Driving Economic Growth: A Comprehensive Analysis of Banking and Investment Tenders in India

Introduction: Banking and investment services are referred to as a kind of services which help individuals, businesses, and organizations to achieve their financial goals. These services play a vital role in economic growth, infrastructure development, and financial stability in India. So, the government agencies and PSUs in India, procure these services through tendering processes to serve their various financial needs such as financing, investment management, financial consultancy, risk mitigation, and capital markets access.

Yearly analysis: Government agencies and PSUs in India procure banking and investment tenders to serve their diverse financial needs. This study analyzes the procurement of banking and investment tenders during the last year March 2023 to March 2024. A total of 362 tenders were published by various 120 government agencies across various states in India. Among these 120 agencies Engineers India Limited MoPNG, Food Corporation of India, and Telecommunications Consultants India Limited are the top ranking agencies. Of these 362 tenders, Delhi, Karnataka, and Maharashtra were the key buyer states.

State-wise analysis: Among these total tenders, the top three key buyer states were Delhi, Karnataka, and Maharashtra. The government agencies in Delhi issued various tenders like Punjab National Bank in Delhi issued a tender for RFP for selection of application services provider for internet banking services to customers of sponsored RRBs. Bharat Heavy Electricals Limited in Delhi published a tender for EOI for empanelment of investment arrangers for BHEL PF and gratuity trust. Agriculture Produce Marketing Committee in Karnataka issued a tender for competitive rate of interest for placing surplus funds of Rs. 22,73,20,00 /- in fixed deposit. Nuclear Power Corporation of India Limited in Maharashtra issued a tender for request for quote (RFQ) for investment of NPCIL PF funds.

Education sector: Various education sectors like schools and higher education sectors advertised a significant number of tenders for procuring investment and banking services. For instance, Dr B R Ambedkar National Institute of Technology Jalandhar, Chhattisgarh issued a tender for quotations for interest rates for investment of surplus funds. National Institute of Technology Patna in Bihar advertised a tender for rate of interest from public & private sector banks for investment/re-investment of surplus funds. Indian Institute of Technology Madras, Tamil Nadu issued a tender for providing investment advisory services to IIT Madras for appropriate investment of the Institute funds.

Financial consultancy: Various government sectors procure financial consultancy services from banking and financial institutions. There were 22 financial consultancy tenders published across various states in India during the last year. For instance, the Department of Defence in Tamil Nadu issued a tender for manpower outsourcing services for fixed remuneration of finance/accounts; financial consultant; chartered accountant. Similarly, the Watershed Development Department (WSDD) in Karnataka advertised a tender for procurement of financial management consultancy (FMC) under the reward program. Additionally, Assam State Rural Livelihood Mission (ASRLM), issued a tender for hiring of TSA for providing financial consultancy services under DDU-GKY.

Railways: A significant number of tenders were published by the railway department across various states for collecting cash and instruments from various stations in the region.  For example, South Eastern Rly in West Bengal issued a tender for collection of cash and instruments from 306 stations over KGP, ADRA, CKP, RANCHI divisions including GA. Similarly, South East Central Rly in Maharashtra advertised a tender for collection of station earnings (cash + instruments) from 10 stations of Nagpur division falling in Chha. 

Banking sector: Banking and financial sector published various tenders for providing several services to their customers. For instance, Bank of Baroda in Maharashtra issued a tender for appointment of valuation firm for carrying out valuation of the investments, equity shares and other assets of BOB financial solutions LTD. (BFSL) for bringing in a strategic partner in BFSL, a subsidiary of BOB. Similarly,Union Bank of India in Maharashtra issued a tender for providing complete scope of work and tentative cost of the project to develop, build, launch and maintain metaverse banking experience for bank customers to provide banking facilities

Procurement in various departments: Apart from these government agencies, various other agencies also advertise these tenders. For example, the Airports Authority of India in Delhi issued a tender for empanelment of fund managers cum annuity providers. Karnataka State Electronics Development Corporation Limited published a tender for investment of the company’s surplus funds in fixed deposits. Similarly, Uttar Pradesh Housing and Development Board advertised a tender for a bid from IRDA registered insurance companies for investment of gratuity. Additionally, New India Assurance Company Limited in Maharashtra issued a tender for appointment of risk management auditor in the investment department, head office, Mumbai.

Estimation value: Though estimation cost and contract period is not mentioned in most of the tenders, there were few tenders where the estimated value was specified. Estimation value varies from 1 lakh to 800 crores. For example, Hindu Religious Institutions and Charitable Endowments in Karnataka issued a tender for invited rate of interest from nationalized banks for fixed deposit in percentage for one year for funds available in Shri Anjaneyaswamy temple, Shivanahalli was estimated at 1.46 lakh. Whereas, Uttar Pradesh Housing and Development Board issued a tender for investment of parishad/infrastructure fund in the shape of fixed deposit for one year on highest interest rates for the period of one year through nationalized banks was estimated at 753 crore.

Live analysis: 

As of 18th March 2024, there are 24 live tenders for banking and investment services across various states in India. Among these, Karnataka ranks top with 13 tenders, which is 54% of the total followed by Delhi with 5 tenders, and Maharashtra with 2 tenders. Jammu and Kashmir, Andhra Pradesh, Tripura, and Rajasthan have 1 tender each.

Conclusion: As the tender analysis given above shows the significant demand for banking and investment services across various industries such as education, railways, and banking and financial sectors. Thes estimated value differs from 1 lakh to 800 crores approximately in various cases. Therefore, it is recommended for the organizations or firms which are providing these services to actively monitor the tender announcements and participate in the relevant tenders to grab the future business opportunities.