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NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIES

“RETAIL BANKING SYSTEM IN INDIA”
PRESENTED BY:

VARSHA GOLEKAR
MMS-II (FINANCE)
A-18

Overview Of Bank Performance In Last Five Years .

corporate clients.RETAIL BANKING SYSTEM Retail Banking in Retail Stores Way… AS IS / BEFORE TO BE /NOW PRIORITY Credit & Risk Customers & retailing APPROACH Secure & conventional Customer centric retail location for financial banking transactions (Customer is King) (Banks dictate terms) CUSTOMER BASE Corporation & other banks Retail consumers. multi branch MORE EMPHASIS Improving transactional Providing service and ON efficiency value to consumers CUSTOMIZATION Rarely there Highly customized . other banks FORMATS Single Entity Multi-location.

continuing to pursue “ a doing everything approach” will not be able to build strong capability in all models. .PATH FORWARD FOR RETAIL BANKS RETAIL BANK OF TODAY – COMPLEX BANK RETAIL BANK OF FUTURE – LEAN BANK “LEADERS” P D Product leader Distributor Utility Processor U “LAGGARDS” P D U Retail banks needs to identify their focus area and build capability in one or two only. Retail banks.

Retail Banking Product Portfolio Deposit Fixed deposit Saving account Current Account Loans & Advances Housing Loan (Sadasavli Housing Loan) Personal Loan Services Credit card Debit card Recurring Account Vehicle Loan (AutoFinance Loan) Net bankingMobile banking NRI Account Education Loan Phone banking Corporate Salary Account Professional Loan Demat Account Minor Account Senior Citizenship Account ATM Loan against share And securities Swayam siddha loan Kalpataru Consumer finance Travel Now Smart card 24*7 cheque issuance facility .

Techno-savvy Bank Multiple delivery channels such as ATM. Ltd. NAUPADA. for Life Insurance products and with The Oriental Insurance Co. which are operational 24 X 7 Bancassurance: Agent for Max New York Life Insurance Co. Mobile First Bank in Co-operative sector to install Cheque Depository Machines and Automated Cheque Issuance Machine at 63 branches. Ltd. Internet. for General Insurance .MULTI-STATE SCHEDULED CO-OPERATIVE BANK INCORPORATION: 1972 BRANCHES: 64 PROJECT PLACE: CENTRALIZED RETAIL BANKING CELL (CRBC) .

.PROCESSING OF RETAIL LOANS Processing Model Stand Alone Model Refers to processing of retail loans independently at the branch level. Branch will market the retail loans and process and sanction the loans based on the eligibility of the applicants. Centralised Model Refers to processing of loans at a centralised place depending upon the geography of branches.

TJSB Process the application Verification check and arrive at credit score The valuation (wherever applicable) through the panel valuer Receiving acceptance for the terms and conditions Advising the sanction of the loan to the borrower/branch with the terms and conditions Arrive at the quantum of finance based on type of loan Obtain the Encumbrance Certificate and legal opinion from lawyer Execution of documents for the loan and also completing the mortgage formalities (wherever applicable) Release of the loan to the borrower Verification of end use by the borrower Auditing is done by auditors on weekly basis sometime daily basis. Receipt of application and details from the branch .WORKFLOW OF CENTRALIZED RETAIL BANKING CELL.

processing charges. the more interest you'll pay A credit card may be a better option for short term lending It can cost you to pay back the loan early There may be other hidden fees Service . insurance charges Your repayments may be variable – Fixed or Floating You don't have to buy PPI when you take out a loan . private equity. franking charges.IMPORTANT THINGS YOU NEED TO KNOW BEFORE APPLYING FOR LOAN You may not be offered the rate you see advertised A secured loan is held against your property Disbursement time of bank The best rates are available to those with the best credit scores The longer the term.

GENERAL DOCUMENTS REQUIRED FOR LOAN APPRAISAL PROCESS .

Credit Report 6.GENERAL DOCUMENTS 1. Mortgage deed Other supporting documents Personal Loan 1. Promissory note 2. Fee receipt 3. Deed of guarantee 4.Educational Certificates Other supporting document . Term loan agreement 3. Section 60 – Borrower. Non encumbrance certificate 7.Letter of Lien and set off 6. Institute fees structure 2. Society NOC 2. Post dated cheques Housing loan 1. Title Deed 4. End use declairation Supporting Doucuments Education Loan 1. Valuation Report 5. Guarantor 5. Sale deed 3.

RETAIL BANKING RISK • Losing Money • Wrong Strategy • Processing Failures & Frauds • Regulatory Compliance • Customer Fall to Pay BUSINESS RISK CREDIT RISK OPERATING RISK MARKET RISK • Change in Market Price .

general guidelines Giving notice to Borrowers.RECOVERY OF LOAN Recovery Policy clauses .To recover dues and not to deprive the borrower.Approaches to recovery of loan. realisation of security after notice to borrower Valuation and Sale of property.Sale of repossessed property by TJSB bank opportunity for borrower to repurchase the property . telephonic reminders or visits by TJSB bank recovery agent Repossession of security.Written communication.

.DATA ANALYSIS AND INTERPRETATION OF TJSB SAHAKARI BANK LTD.

• Advances has increased by 32.R -0.61%.00% % Increase/Decrease Deposits Advances Net Profit 25. % Increase/Decrease 35.P.16% shows opportunities for further growth.55% in 2012. It also reflects the efficacy of banks’ credit risk management and the recovery environment.00% 25.20% Gross N.61% .00% -5.00% 5.00% 10.16% 32.Outcome Here • TJSB’s deposits has increased by 25.A.A -0.55% 21.00% 15.R. shows retail segment growth • Gross NPA has decreased and CRAR has also decreased by 0.00% 20.00% 0.79% C.00% 30.