Professional Documents
Culture Documents
ON
“RETAIL BANKING IN INDIA”
Submitted by:
SUNIL KUMAR
Roll No.-0806770065
(MBA-2008-10)
Preface
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RETAIL BANKING IN INDIA
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Table of Contents
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For over 40 years, IDBI Bank has essayed a key nation-building role,
first as the apex Development Financial Institution in the realm of
industry and now as a full-service commercial bank. As a development
institution, the erstwhile IDBI stretched its canvas beyond mere project
financing to cover an array of services that contributed towards balanced
geographical spread of industries, development of identified backward
areas, emergence of a new spirit of enterprise and evolution of a deep
and vibrant capital markets. Today, IDBI, as a new generation universal
Bank, touches the five of millions of Indians through an array of
corporate, retail, SME and Agri products & services without diluting its
secular development finance charter.
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VISION
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Board of Directors-
Mr. Yogesh Agarwal, Chairman & Managing Director
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Branch Network
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Subsidiaries
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IDBI Gilts Ltd. was set up as a wholly owned subsidiary of IDBI Bank
Ltd. to undertake Primary Dealership [PD] Business. In accordance with
RBI guidelines, the PD business of IDBI Capital Market Services Ltd.
[ICMS] has been de-linked and transferred to IDBI Gilts Ltd. The
company was incorporated in December 2006 and became operational
from July 24, 2007. The company's business ambit includes Bond
trading, underwriting in auctions of primary issuance of Government
dated securities and treasury bills. In addition, IDBI Gilts also plans to be
a major player in the interest rate and credit derivative market.
IDBI Intech Ltd. is a wholly owned subsidiary of IDBI Bank Ltd. IDBI has
set up IDBI Intech Ltd. (INTECH) in March 2000 to tap the opportunities
arising from the IT sector.
Intech capitalizes on the banking business knowledge acquired over the
years supplemented with experience in Implementation & Management
of state-of-the-art IT Infrastructure, Technology applications and
Systems for one of the largest universal bank in India and uniquely
positions itself, in the Information Technology Service Provider Space, to
offer the IT-related products and services to the IDBI Group companies
and the other organizations, focusing mainly on the BFSI sector.
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IDBI Home finance Ltd. is 100% subsidiary of IDBI Bank Ltd. acquired
the entire shareholding of Tata Finance Ltd. in Tata Home finance Ltd. in
September 2003. The name of the company was changed to IDBI Home
finance Ltd. Over the years, the company has taken steps to enhance its
retail reach, strengthen brand image, improve asset quality, thereby
achieving business growth finance Ltd. is 100% subsidiary of IDBI Bank
Ltd. acquired the entire shareholding of Tata Finance Ltd. in Tata Home
finance Ltd. in September 2003. The name of the company was changed
to IDBI Home finance Ltd. Over the years, the company has taken steps
to enhance its retail reach, strengthen brand image, improve asset
quality, thereby achieving business growth
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Over the last 5 years, the company has been ranked amongst the
leading players in each of these businesses. It has a strong agent
network which caters to the investment needs of retail investors in
instruments like IPOs, Bonds, etc.
The company is a major player in the Equity and Derivatives market and
a leading manager of Pension & Provident Funds in the country. The
company has executed several mandates on the Issue Management and
Corporate Advisory Services.
The company offers an online investment portal idbipaisabuilder.in with
advanced features and tools for an easy and informed investing
experience in Equities, Mutual Funds and IPOs.
Retail Banking
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DEFINITION:
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Origin of Banking
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Banks in India were started on the British pattern in the beginning of the
19th century. The first half of the 19th century, The East India Company
established 3 banks The Bank of Bengal, The Bank of Bombay and The
Bank of Madras. These three banks were known as Presidency Banks.
In 1920 these three banks were amalgamated and The Imperial Bank of
India was formed. In those days, all the banks were joint stock banks
and a large number of them were small and weak. At the time of the 2nd
world war about 1500 joint stock banks were operating in India out of
which 1400 were non- scheduled banks. Bad and dishonest
management managed quiet a quiet a few of them and there were a
number of bank failures. Hence the government had to step in and the
Banking Company’s Act (subsequently named as the Banking
Regulation Act) was enacted which led to the elimination of the weak
banks that were not in a position to fulfil the various requirements of the
Act. In order to strengthen their weak units and review public confidence
in the banking system, a new section 45 was enacted in the Banking
Regulation Act in the year 1960, empowering the Government of India to
compulsory amalgamate weak units with the stronger ones on the
recommendation of the RBI. Today banks are broadly classified into 2
groups namely—
(a) Scheduled banks.
(b) Non-Scheduled banks.
Benefits of Retail Banking
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individual and small units. Customize and wide ranging products are
available. The risk is spread and the recovery is good. Surplus
deployable funds can be put into use by the banks. Products can be
designed, developed and marketed as per individual needs.
Advantages
Retail banking has inherent advantages outweighing certain
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RESOURSE SIDE
○ Retail deposits are stable and constitute core deposits.
○ They are interest insensitive and less bargaining for additional
interest.
○ They constitute low cost funds for the banks.
○ Effective customer relationship management with the retail
customers built a strong customer base.
○ Retail banking increases the subsidiary business of the banks.
ASSETS SIDE
○ Retail banking results in better yield and improved bottom line for a
bank.
○ Retail segment is a good avenue for funds deployment.
○ Consumer loans are presumed to be of lower risk and NPA
perception.
○ Helps economic revival of the nation through increased production
activity.
○ Improves lifestyle and fulfils aspirations of the people through
affordable credit.
○ Innovative product development credit.
○ Retail banking involves minimum marketing efforts in a demand –
driven economy.
○ Diversified portfolio due to huge customer base enables bank to
reduce their dependence on few or single borrower
○ Banks can earn good profits by providing non fund based or fee
based services without deploying their funds.
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DISADVANTAGES
○ Designing own and new financial products is very costly and time
consuming for the bank.
○ Customers now-a-days prefer net banking to branch banking. The
banks that are slow in introducing technology-based products, are
finding it difficult to retain the customers who wish to opt for net
banking.
○ Customers are attracted towards other financial products like
mutual funds etc.
○ Though banks are investing heavily in technology, they are not
able to exploit the same to the full extent.
○ A major disadvantage is monitoring and follows up of huge volume
of loan accounts inducing banks to spend heavily in human
resource department.
○ Long term loans like housing loan due to its long repayment term
in the absence of proper follow-up, can become NPAs.
○ The volume of amount borrowed by a single customer is very low
as compared to wholesale banking. This does not allow banks to
to exploit the advantage of earning huge profits from single
customer as in case of wholesale banking.
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○ Banks are expected to take utmost care to retain the ongoing trust
of the public.
○ Customer service should be at the end all in retail banking.
Someone has rightly said, “It takes months to find a good customer
but only seconds to lose one.” Thus, strategy of Knowing Your
Customer (KYC) is important. So the banks are required to adopt
innovative strategies to meet customer’s needs and requirements
in terms of services/products etc.
○ The dependency on technology has brought IT departments’
additional responsibilities and challenges in managing, maintaining
and optimizing the performance of retail banking networks. It is
equally important that banks should maintain security to the
advance level to keep the faith of the customer.
○ The efficiency of operations would provide the competitive edge for
the success in retail banking in coming years.
○ The customer retention is of paramount important for the
profitability if retail banking business, so banks need to retain their
customer in order to increase the market share.
○ One of the crucial impediments for the growth of this sector is the
acute shortage of manpower talent of this specific nature, a
modern banking professional, for a modern banking sector.
If all these challenges are faced by the banks with utmost care and
deliberation, the retail banking is expected to play a very important role
in coming years, as in case of other nations.
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As most of the banks are offering retail products of similar nature, the
customers can easily switchover to the one, which offers better
service at comparatively lower costs. The quality of service that
banks offer and the experience that clients have, matter the most.
Hence, to retain the customers, banks have to come out with
competitive products satisfying the desires of the customers at the
click of a button.
○ Infrastructure outsourcing
This will help in lowering the cost of service channels combined with
quality and quickness.
○ Detail market research
Banks may go for detail market research, which will help them in
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knowing what their competitors are offering to their clients. This will
enable them to have an edge over their competitors and increase
their share in retail banking pie by offering better products and
services.
○ Cross-selling of products
PSBs have an added advantage of having a wide network of
branches, which gives them an opportunity to sell third-party products
through these branches.
○ Tie-up arrangements
PSBs with regional concentration can reap the benefit of reaching
customers across the country by entering into strategic alliance with
other such banks with intensive presence in other regions. In the
present regime of falling interest and stiff competition, banks are
aware that it is finally the retail banking which will enable them to hold
the head above water. Hence, banks should make all out efforts to
boost the retail banking by recognizing the needs of the customers. It
is essential that banks would be imaginative in predicting the
customers' expectations in the ever-changing tastes and
environments. It is the innovative and competitive products coupled
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with high quality care for clients will only hold the key to success in
this area. In short, bankers have to run very fast even to stay where
they are now. It is the survival of the fastest now and not only survival
of the fittest.
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○ Sound documentation
A latest system for credit documentation is necessary pre-requisite for
healthy growth of credit portfolio, as in the case of credit assessment,
this will also minimize the need to follow up at future point of time.
○ Technological support
This is yet another vital requirement. Retail credit is highly technological
intensive in nature, because of large volumes of business, the need to
provide instantaneous service to the customer large, faster processing,
maintaining database, etc.
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○ KNOWING CUSTOMER
‘Know your Customer’ is a concept which is easier said than
practiced. Banks face several hurdles in achieving this. In order
to that the product lines are targeted at the right customers-present
and prospective-it is imperative that an integrated view of
customers is available to the banks. The benefits flowing out of
cross-selling and up-selling will remain a far cry in the absence of
this vital input. In this regard the customer databases available
with most of the public sector banks, if not all, remain far from
being enviable.
What needs to be done is setting up of a robust data
warehouse where from meaningful data on customers, their
preferences, there spending patterns, etc. can be mined.
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○ TECHNOLOGY ISSUES
Retail banking calls for huge investments in technology. Whether
it is setting up of a Customer Relationship Management System or
Establishing Loan Process Automation or providing anytime,
anywhere convenience to the vast number of customers or
establishing channel/product/customer profitability, technology
plays a pivotal role. And it is a long haul. The Issues involved
include adoption of the right technology at the right time and at the
same time ensuring volumes and margins to sustain the
investments.
It is pertinent to remember that Citibank, known for its
deployment of technology, took nearly a decade to make profits in
credit cards. It has also to be added in the same breath that
without adequate technology support, it would be well nigh
possible to administer the growing retail portfolio without allowing
its health to deteriorate. Further, the key to reduction in
transaction costs simultaneously with increase in ability to handle
huge volumes of business lies only in technology adoption.
PSBs are on their way to catch up with the technology much
required for the success of retail banking efforts. Lack of
connectivity, stand alone models, concept of branch customer as
against bank customer, lack of convergence amongst available
channels, absence of customer profiling, lack of proper decision
support systems, etc., are a few deficiencies that are being
overcome in a great way. However, the initiatives in this regard
should include creating flexible computing architecture amenable
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○ ORGANIZATIONAL ALIGNMENT
It is of utmost importance that the culture and practices of an
institution support its stated goals. Having decided to take a plunge
into retail banking, banks need to have a well defined business
strategy based on the competitive of the bank and its potential.
Creation of a proper organization structure and business operating
models which would facilitate easy work flow are the needs of the
hour. The need for building the organizational capacity needed to
achieve the desired results cannot be overstated.
This would mean a strong commitment at all levels, intensive
training of the rank and file, putting in place a proper incentive
scheme, etc. As a part of organizational alignment, there is also
the need for setting up of an effective Corporate Marketing
Division. Most of the public sector banks have only publicity
departments and not marketing setup. A fully fledged marketing
department or division would help in evolving a brand strategy,
address the issue of alienation from the upwardly mobile, high net
worth customer group and improve the recall value of the
institution and its products by arresting the trend of getting receded
from public memory. The much needed tie-ups with
manufacturers/distributors/builders will also facilitated smoothly. It
is time to break the myth PSBs are not customer friendly. The
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○ PRODUCT INNOVATION
Product innovation continues to be yet another major challenge.
Even though bank after bank is coming out with new products, not
all are successful. What is of crucial importance is the need to
understand the difference between novelty and innovation? Peter
Drucker in his path breaking book: “Management Challenges for
the 21st Century” has in fact sounded a word of caution: “innovation
that is not in tune with the strategic realities will not work;
confusing novelty with innovation (should be avoided), test of
innovation is that it creates value; novelty creates only
amusement”. The days of selling the products available in the
shelves are gone. Banks need to innovate products suiting the
needs and requirements of different types of customers. Revisiting
the features of the existing products to continue to keep them on
demand should not also be lost sight of.
○ PRICING OF PRODUCT
The next challenge is to have appropriate policies in place. The
industry today is witnessing a price war, with each bank wanting to
have a larger slice of the cake that is the market, without much of a
scientific study into the cost of funds involved, margins, etc. The
strategy of each player in the market seems to be: ‘under cutting
others and wooing the clients of others’. Most of the banks that
use rating models for determining the health of the retail portfolio
do not use them for pricing the products. The much needed
transparency in pricing is also missing, with many hidden charges.
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○ PROCESS CHANGES
Business Process Re-engineering is yet another key requirement
for banks to handle the growing retail portfolio. Simplified
processes and aligning them around delivery of customer service
impinging on reducing customer touch-points are of essence. A
realization has to drawn that automating the inefficiencies will not
help anyone and continuing the old processes with new technology
would only make the organization an old expensive one. Work
flow and document management will be integral part of process
changes. The documentation issues have to remain simple both in
terms of documents to be submitted by the customer at the time of
loan application and those to be executed upon sanction.
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○ RURAL ORIENTATION
As of now, action that is taking place on the retail front is by and
large confined two metros and cities. There is still a vast market
available in rural India, which remains to be trapped. Multinational
Corporations, as manufacturers and distributors, have already
taken the lead in showing the way by coming out with exquisite
products, packaging and promotions, keeping the rural customer in
mind. Washing powders and shampoos in Re.1 sachet made
available through an efficient network and testimony to the
determination of the MNCs to penetrate the rural market. In this
scenario, banks cannot lack behind.
In particular PSBs, which have a strong rural presence, need
to address the needs of rural customers in a big way. These and
only these will propel retail growth that is envisaged as a key
strategy for portfolio expansion by most of the banks.
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○ CUSTOMER SERVICE
Customer service is perhaps the most important dimension of retail
banking. While most public sector banks offer the same range of
service with similar technology/expertise, the level of customer
service matters the most in bringing in more business. Perhaps
more than the efficiency of service, the approach and attitude
towards customers will make the difference.
Front line staffs have to be educated in this regard. A scheme of
entrusting a group of important customers to the care of each
employee/officer with a person to person knowledge and intimacy
can be implemented all sundry advices/notices such as Dr. /Cr.
advices. TDR maturity advices, etc. whether signed by employees
or officers should be identifiable by the name of those signing, and
inviting customers to contact them for further assistance in the
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matter.
A customer centered organization has to be built up, whose
ultimate goal is to "own" a customer. Focused merchandizing
through effective market segmentation is the need of the hour. A
first step can be the organization of the various retail branches to
enter for different market segments like up market individuals,
traders, common customers, etc..
For the SIB (Small Industry and Business) sector banks, the focus
should be on identifying efficient units and allocations of loans lo
these units. These banks should try Merchant Banking services en
a small scale.
With agricultural output growing at a fast rate and mechanization
setting in, banks should try to cater to the credit needs of the
people involved in this profession. A wide network is absolutely
imperative for this sector.
Separate branches/divisions should be opened for traders and
similar government businesses. Special facilities for cash tendered
in bulk and immediate issue of drafts, by extending facilities like
"guarantee bond" system, will go a long way in mitigating problems
faced by traders who are the major customers for drafts issue.
Provision for cash counting machines in these branches will
reduce the monotony of cashiers and unnecessary delays, thus
resulting in better productivity and ultimately in improved customer
service.
The personal segment is however the most important one. With
the urban segment moving away because of disintermediation and
competition from foreign banks, retail banks should focus en the
rural/semi-urban areas that hold the maximum potential. Innovative
schemes like "paper-gold" schemes can be introduced. In the
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○ TECHNOLOGY
In the current scenario, the importance of technology cannot be
understated for retail banks which entail large volumes, large
queues and paperwork. But most of the banks are burdened with a
large staff strength which cannot be done away with. Besides, in
the rural and semi-urban areas, customers will not be at home in
an automated, impersonal environment.
The objective would be to ensure faster and easier customer
service and more usable information, instantly, economically and
easily to all those who need it -customers as well as employees.
Proper management information systems can also be
implemented to aid in superior decision making.
Communication technology is especially needed for money
transfer between the same city and also between cities. There are
inordinate delays in India because of geographical and other
factors. Modem technology can make it possible to clear any
check anywhere in India within three days. Installation of FAX
facilities at all the big branches will facilitate speedy transfer of
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○ PRICE BUNDLING
Price bundling is a selling arrangement where several different
products are explicitly marketed together to a price that is
dependent on the offer. As banks are multi-product firms this
strategy is more applicable to retail banking. Price bundling offers
several economic and strategic benefits to a bank. It offers
economies of, utilization of the existing capacities and reaching
wider population of customers. Bank can get the benefits of
information and transacting. In the process of extending variety of
services, banks are acquiring enormous amount of customer
information. If this information is systematically stored, banks can
efficiently utilize this information in order to explore new segments
and to cross-sell new services to these segments. Cross-selling
opportunities and larger customer base can also be the motive for
merger against usually stated advantage of cost savings. Price
bundling can be used in order to lengthen the relationship with a
customer. It will reduce the need of resources to be put on
acquiring new customers and saves time of the bank. Among the
strategic benefits, price bundling may cause less aggressive
competition; it differentiates its products compared to rivals in the
same market where the products are sold individually or in other
kinds of bundles.
Retail banking offers many services and it gives an opportunity to
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○ INNOVATION
The scope for innovation in financial services is unlimited.
Although banks have introduced a variety of deposit and loan
products, the basic features of all these products are almost one
and the same. Among the delivery channels, ATMs have emerged
as ubiquitous money centers. Almost all banks have established
their ATMs. India had only 400 ATMs, which increased to 3,600.
Out of this 881 ATMs have Swadhan connectivity. It is projected
that the number of ATMs will reach up to 35,000 by the end of. The
question arises is, are they cash cows? The answer is certainly no.
For most of the banks the overhead costs on these ATMs are far
higher than the revenue generated by them. ATM operation costs
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2003.
Smart card revolution will further change the face of retail banking.
Smart cards can store information; carry out local processing on
the data stored and can perform complex calculations. At present,
India has around 3.4 million smart card users and it is estimated
that by the end of 2004 it will reach 14.7 million.
MACRO-ECONOMIC FACTORS
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○ Comparatively stable real estate prices during last 4/5 years have
laid to spurt in demand for housing loans.
○ Inflation continued to be under control.
○ Keenness shown by the consumer goods/ automobile
manufacturers to -push up finance schemes through market tie-up
with banks with a view to increasing their marketing share.
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Keeping pace with the average 8.5 per cent growth of the Indian
economy over the past few years, the retail banking sector in India has
also witnessed phenomenal growth. It has faced up to the need of the
hour and introduced anytime, anywhere banking, for its customers
through ATMs, mobile and internet banking. It has also offered services
like D-MAT, plastic money (credit and debit cards), online transfers, etc.
This has not only helped in reducing operational costs but facilitated
greater conveniences to its customers.
○ High-Tech Banking
ATMs - With growing technological innovations, banks have
significantly expanded their ATM network over the past three
years. According to the RBI data as of end-June 2008, the number
of ATMs in the country had climbed to 36,314 compared to 27,088
and 20,267 as at end-March 2007 and 2006, respectively.
○ Loan disbursement
Technology has facilitated the growth in retail loan disbursements,
making the whole process simpler and faster. The sector has
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delivered a growth of around 30 per cent per year over the past 4-
5 years. As per the RBI data, although the retail portfolio of banks
saw a slowdown to 29.9 per cent during 2006-07 from 40.9 per
cent in 2005-06, the growth was faster than the overall credit
portfolio of the banking sector (28.5 per cent).
○ Plastic Money
Credit cards have also played an important role in promoting retail
banking. The use of credit cards has been growing significantly
over the last few years. The number of credit cards outstanding at
the end- June 2008 stood at 27.02 million as against 24.39 million
in June 2007, with usage increasing by 10.73 per cent during this
period.
○ Future Outlook
Indian retail banking, according to a report, is likely to grow at a
CAGR of 28 per cent till 2010 to Rs 97,00 billion. So, although the
revolution in retail banking has changed the face of the Indian
banking industry as a whole, it has still miles to go.
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○ The reasons for this shift to retail, particularly the housing finance
segment, are many. The important among these include—
○ The poor credit off take to the corporate, commercial and other
business sector because of industrial slowdown.
○ Risky nature of lending to corporate, given in industry recession
and uncertainty prevalent in the economy.
○ High disintermediation pressure, leading many highly rated
corporates to tap the domestic and/or overseas markets directly for
finance, rather than approaching the banks.
○ Relatively safe nature of some of the retail credit finance with
lesser incidence of loan turning bad.
○ Rising disposable income, changing lifestyles/aspirations and
willingness to spend for more luxuries of the higher middle class.
○ Better availability of loans, because of the consultancy lowering
interest rates, as a result of the low interest regime followed by the
regulating authorities, the housing loans interest rates hailed to
almost 7.5 – 8% in last 5 years.
○ Increased government incentives in form of tax rebates etc. in the
case of certain loans like housing loans.
○ Banks are aware with abundant reserve requirement by RBI; they
are searching revenues for packing the surplus funds.
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Retail banking has significant past and glorious future over the
years. Retail banking has proved as an effective tool not only to
improve the bottom lines of the banks concerned but also to significantly
contribute to the development of the individual consumers availing the
services or products in particular and to the overall development of the
society in general with the needs of the consumers ever multiplying.
There is definitely a vast scope for the furtherance of the Retail Banking
business.
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Deposits-Saving accounts
Apart from the basic benefits of a savings account, It offers options for
faster transfer of funds, options to pay your bills or tax online and options
to grow money at attractive interest rates in the savings account.
All these features are offered for a minimum balance of Rs 5,000.
With the growing focus on the Kids segment and its requirements, IDBI
Bank realized the importance of introducing a product specifically
catering to this market. Now a days, parents start saving money for their
children right from the day they are born and by supporting this thought
IDBI has designed the “POWERKIDZ” account, cut for the needs of
children.
It is a piggy bank for the Kids that will not just keep their money safe but
provide an interest on the same, allow them to take out money when
required, make smart purchases by way of exclusive debit card, teach
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them to operate their account in a better and convenient way and also
advise them from time to time about better investment options.
Kids at a young age can start saving the amount received from
parents/guardian into these account which will not just inculcate the habit
of saving but also act as an instrument in guiding them into financial
sector. Coupled with various training programs and with insight to
various other products children can make better investment decisions in
future. They can even have the benefit by availing education loan from
IDBI bank at a competitive interest rate for funding their higher education
in India and Overseas.
Roaming Current Account from IDBI Bank comes packed with a host of
services and facilities that makes the banking convenient and hassle-
free. With services such as multi-city and multi-branch banking,
electronic funds transfers, national clearing in selected cities, 24x7 cash
withdrawals from ATMs, Internet Banking, Phone Banking and SMS
Banking, customers are assured of faster remittances and collection of
funds at competitive rates. What’s more, extended IDBI Banking hours
and Sunday Banking, all this to simplify banking for you.
Features
➢ Make payments to your vendors in different cities without any
costs
➢ Receive payments from your customers without any charge
deducted from the amount
➢ Do all your banking right from where you are or wherever you
travel
➢ Most importantly, maintain better relations with your vendors and
customers.
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IDBI has brought to the senior citizens an account which can facilitate
banking transactions with hosts of facilities catering to the needs of the
customer. This is deal in which customer cannot just save the money but
also make it grow. Also get the benefit of getting another account with an
AQB of Rs. 1,000.
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○ Education
○ Business
○ Marriage
○ Purchase or improvement of property
○ Medical treatment or any other personal need
Advantages
○ Tenor up to 15 years
○ Attractive Rate of Interest
○ Maximum Funding
○ Interest rate on daily reducing balance
○ Fixed and floating interest rate options
○ Simple documentations
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Education Loan
Personal Loan
Personal Loans from IDBI comes with an insurance cover. This means
when times are tough, customer'll have an insurance cover to take care
of the EMI's.
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A pledge is created in favour of the Bank and the Drawing Power (DP) is
calculated based on the applicable margins set by the Bank. Facility will
be renewed after every 12 months depending on the performance of the
account. What makes it more attractive is that customer pay only on the
amount utilized.
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Daily Limits: You can withdraw cash upto Rs. 75,000/- and make
purchases worth Rs. 75,000/- in a day.
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○ Enjoy the following benefits with the IDBI Bank International Debit-
cum-ATM Card
○ Loyalty points with great rewards
○ Enhanced access to over 10 lakh VISA & MasterCard ATMs
worldwide and 14 million VISA merchant establishments & 26
million MasterCard merchant establishments worldwide.
○ Promotional programmers with exciting prizes
○ Zero lost card liability insurance
Electronic Bill Payment. This feature allows paying off all those bills
appearing physically.
Tax Payment
Through IDBI simple tax payment service, taxes can be paid, sitting from
the comfort of your home or office in any of the following ways:
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○ Direct Taxes
○ Indirect Taxes
○ State Tax
Insurance-Wealthsurance
Wealthsurance is a first of its kind combination of comprehensive
investment choices, protected by powerful insurance options, all
presented with a reasonable charge structure, making it a one stop
solution to a customer’s wealth building plans. Wealthsurance offers
investment choices such as Guaranteed Return Fund, Equity Funds, and
Debt Funds etc. ensuring that the customer would find all his investment
requirements satisfied with this one powerful product. The powerful
insurance benefits of Wealthsurance ensure that a customer’s wealth
plan is not affected by unforeseen events that may strike them.
The guiding philosophy behind this product is that wealth will grow better
with a protective cover. So, while one’s wealth stays invested, the
insurance benefits ensure that life’s uncertainties such as death, terminal
illness, 17 major diseases, sickness requiring hospitalization or serious
accidental injuries, do not disturb its growth. Wealthsurance is thus
designed to also give living benefits to ensure one’s well-being in their
lifetime. Customers can opt for a ready plan or build their own plan by
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Family Care
The Family Care Policy is a complete health insurance plan that covers
insurer, his/her spouse and two dependent children up to the age of 25
years. It enables customer to access the best medical treatment in case
of a sudden illness, accidents or an emergency surgery, without any
hassles.
The Family Care policy covers the hospitalization expenses as a result
of any illness and accident. Unlike any other regular policy, wherein a
family has to take individual policies for each member, this unique family
floater policy gives you the flexibility of taking one policy that covers the
entire family under a single sum insured.
Internet Banking
In today's digital world, Internet banking assumes a special significance.
Realizing that the default access to the banking information in the near
future would be only through the Internet, IDBI Bank has made available
to a globally benchmarked Internet Banking facility.
With IDBI's Internet Banking, your Bank travels with you around the
world and you have on-line, real-time access to your accounts.
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Phone Banking
IDBI Bank Phone Banking service enables customers to access
authentic, instantaneous information of account balances and
transactions. The service is available totally free of cost round the clock,
365 days a year.
SMS Banking
Features of SMS Banking
○ Balance enquiry
○ Last three transaction
○ Cheque payment status
○ Cheque book
○ Statement request
○ Demat - free balance holding
○ Demat - last two transactions
○ Bill payment
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Profitability:
IDBI reported a net profit of Rs.314 crore for the quarter and Rs.859
crore for the year ended March 31, 2009, as against Rs.245 crore and
Rs.729 crore in the corresponding quarter and year ended March 31,
2008. This amounts to an increase in net profit by 17.7% for the year
and 28.2% for the quarter, compared to corresponding period of last
year.
Net Interest Income (NII) for the quarter ended March 31, 2009 stood at
Rs.481 crore as against Rs.241 crore in the corresponding quarter of the
previous year, recording a growth of 100%. NII for the year ended March
31, 2009, stood at Rs.1326 crore as against Rs.676 crore in the previous
year, recording a growth of 96%.
Fee based income during the year has shown considerable improvement
to Rs.901 Crore as against Rs.504 Crore in the previous year, recording
a growth of 79%.
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Net NPAs reduced to Rs.949 Crore (0.92%) from Rs.1083 Crore (1.30%)
in the previous year.
Conclusion
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