RETAIL BANKING IN INDIA

DEFINITION
 “ RETAIL BANKING is a typical mass-market banking
where individual customers use local branches of larger
commercial banks .”
SERVICES INCLUDE
 SAVINGS AND CURRENT ACCOUNTS
 MORTGAGES

 PERSONAL LOANS

 DEBIT and CREDIT CARDS

 MUTUAL FUNDS
CAUSES
 RAPID ADVANCES IN TECHNOLOGY
 EVOLVING MACROECONOMIC ENVT.

 FINANCIAL MARKET REFORMS

 MICROLEVEL DEMAND AND SUPPLY SIDE

FACTORS
 HOUSING SECTOR BOOM
 AT Kearney identified india as 3rd attractive
retail destination of 30 emergent markets 2010.
 Bankable households in India are estimated to
move up at a CAGR of 28.10% during 2007-
2011.
ADVANTAGES
 Strong Customer base can be formed that can increase
subsidiary business in banks
 Improves lifestyle and fulfills aspirations of people by
providing affordable credit.
 Better profits

 Establishment of sustainable business at lower risk

DISADVANTAGES
 Needs to be technologically updated.(net banking)
 Customers are attracted to other financial services like
mutual funds.
Indian Mutual Fund industry witnessed a growth of
49.88% from May 2006 to May 2007, and a higher
215.61% growth was recorded in closed ended schemes.

 Long term loans like housing loans needs follow up lest

it can turn to NPA .
OPPORTUNITIES
 Increase in Consumer Spending Power
 Growth of Technology(ATM Machines,Internet
Banking)
The ATM outlets in India increased at a rate of 28.09%.
Economy decides the progress of a bank.

Education loan segment is expected to grow at 36.41%

Two-wheeler finance industry is forging ahead at a CAGR
of 14.21%.

2010
CHALLENGES
 Customer retention
 Know Your Customer

 Regulatory Compliance
RBI REGULATIONS
 Repo rate 6.5 pc
 Reverse repo rate 5.5 pc

 1 Basis point = 0.01 pc

 CRR = 6 pc
 Pension fund industry in India grew at a CAGR of
122.44%.

 In terms of ownership, debit cards are more in number

than credit cards but in terms of transactions, use of credit
cards is more prevalent than debit cards.
LIST OF TOP 10 BANKS IN INDIA
1. SBI
2. HDFC
3. ICICI
4. PNB
5. AXIS
6. HSBC
7. KOTAK MAHINDRA
8. SUNDARAM FINANCE
9. ORIENTAL BANK OF COMMERCE
400,000.00

350,000.00

300,000.00

250,000.00

200,000.00

150,000.00

100,000.00

50,000.00

0.00
SBI PNB Bank of Baroda Other Public ICICI HDFC Axis Other Private