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Meaning of retail banking

Retail banking is, however, quite broad in nature - it refers to the
dealing of commercial banks with individual customers, both on
liabilities and assets sides of the balance sheet. Fixed, current /
savings accounts on the liabilities side; and mortgages, loans
(e.g., personal, housing, auto, and educational) on the assets side,
are the more important of the products offered by banks. Related
ancillary services include credit cards, or depository services.
Todays retail banking sector is characterized-by-three-basiccharacteristics:
multiple products (deposits,
investments and securities);


multiple channels of distribution

Internet and kiosk); and






multiple customer groups (consumer, small business, and


Retail banking in India

Retail banking in India is not a new phenomenon. It has always
been prevalent in India in various forms. For the last few years it
has become synonymous with mainstream banking for many
banks. The typical products offered in the Indian retail banking
segment are housing loans, consumption loans for purchase of
durables, auto loans, credit cards and educational loans. The loans
are marketed under attractive brand names to differentiate the
products offered by different banks. As the Report on Trend and
Progress of India, 2003-04 has shown that the loan values of these
retail lending typically range between Rs.20,000 to Rs.100 lakh.
The loans are generally for duration of five to seven years with
housing loans granted for a longer duration of 15 years. Credit
card is another rapidly growing sub-segment of this product

In recent past retail lending has turned out to be a key profit

driver for banks with retail portfolio constituting 21.5 per cent of
total outstanding advances as on March 2004. The overall
impairment of the retail loan portfolio worked out much less then
the Gross NPA ratio for the entire loan portfolio.
Within the retail segment, the housing loans had the least gross
asset impairment. In fact, retailing make ample business sense in
While new generation private sector banks have been able to
create a niche in this regard, the public sector banks have not
lagged behind. Leveraging their vast branch network and
outreach, public sector banks have aggressively forayed to garner
a larger slice of the retail pie. By international standards, however,
there is still much scope for retail banking in India. After all, retail
loans constitute less than seven per cent of GDP in India vis--vis
about 35 per cent for other Asian economies South Korea (55 per
cent), Taiwan (52 per cent), Malaysia (33 per cent) and Thailand
(18 per cent). As retail banking in India is still growing from
modest base, there is a likelihood that the growth numbers seem
to get somewhat exaggerated. One, thus, has to exercise caution
is interpreting the growth of retail banking in India.


1.To analyse various factors concerning of Retail Banking.
2.To analyse and interpret the additional services business
through retail banking.
3.To analyse growth of banking business.
4.To highlight the development in retail banking.
5.To come with findings ,suggestions and conclusions.


The project had several limitations due to some constraints such
as the market condition.
Limitation during the course of the project are:

Some of the respondents did not answer as they were busy.

Hence the right information could not be obtained.

Since the researcher was not familiar with the area of operation
the study took more time than it should have been.


The Retail Banking business of the Bank is divided into following
Retail Liabilities
Retail Assets
Wealth Management
Corporate Communications and Market Research
Bulk Retail Acquisition /Payroll Accounts
Alternate Channels
The focus of the Retail Banking Department is to:
1. Increase share of Retail Deposits
2. Increase share of Retail Assets
3. Increase Fee Based Income
In order to achieve the above mentioned, the following strategies
are used:
1. Introduce New Products based on Customer Need and to
address targeted segments.
2. A strong Sales Focus.
3. An extensive network and effective utilization of the banking

RETAIL LIABILITES An overview of the products

Retail Liabilities business includes deposits collected from Retail
Customers. These are of two types
1. Savings deposits
2. Term deposits (fixed deposits)

Savings deposits are important as these are low cost deposits and
are critical to keep the cost of funds low for the bank. A savings
account is also the cornerstone of relationship that the customer has
with the bank in majority of the cases. Selling a savings account
therefore is akin to acquiring a customer for the bank who can then
be cross-sold other products.
The Bank has launched customized savings account products for
various categories of customers Mass affluent, Senior Citizens,
Students & Trusts/NGOs besides a very competitive offering in the
Salary Accounts category.

Easy Access Account:

The EasyAccess Saving Account is an endeavor by the bank to
understand your needs and redefine banking to suit customers
requirements for a truly anywhere anytime banking experience.
The basic savings account product of the Bank is called the EASY
ACCESS and its features are as follows:

Interest paid on a quarterly basis

International Debit Card.
24-Hour Tele-banking
Internet Banking
Multi-city At Par cheque book for all Savings Account holders
Free Anywhere Banking facility
Quarterly statement of account.
Access to account informat