SHRI CHINAI COLLEGE OF COMM. & ECO.

RETAIL BANKING IN INDIA

RETAIL BANKING IN INDIA
INTRODUCTION OF BANK

A bank is an institution that deals with money and credit. Different people understand the meaning of bank in different ways. For a common man bank means a storehouse where money is stored; for a business man it `s a financial institution and for a day to day customer it is an institution where he can deposit his savings. In reality banks are service organization selling banking services. Banks activities can be divided in to retail banking , directly dealing with individuals and small businesses; business banking, providing services to mid-market business; corporate banking , directed at large business entities; private banking, providing wealth management services to high net worth individuals and families; and investment banking, relating to activities on the financial markets. Most banks re profit making, private enterprises. However, some are owned by government, or are non-profits. We will study retail banking in detail.

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SHRI CHINAI COLLEGE OF COMM. & ECO. RETAIL BANKING IN INDIA

ORIGIN OF RETAIL BANKING
Retail banking is not an invention or innovation in itself. In India, it has been in existence right from the time banking operations started. However, not much emphasis was given to it since corporate banking was the preferred goal for the banks. Right from the independence up to 1990`s big corporate houses and industries depended heavily on the banks to finance their projects since a limited number of financial sources were available to them. This was because capital market was not well developed and numbers of restrictions were in place on raising capital from the overseas markets. There was no free for joint ventures and multinational companies. In addition, government norms embarked priority sectors which were to be financed by the banks. Thus banks had not much option but to finance the corporate sector. The origin of retail banking in India can be traced to a number of developed developments which occurred on the economic front both in national and international arena. Many challenges emerged for the banks with many opportunities. The challenges were in the form of decline in the traditional lines of business, heavy competition, changing economic preferences and the declining profitability, the opportunities emerged on account of many changes taking place on the socioeconomic and also on the technological front. Thus, to face the challenges and also to cash in on the emerging opportunities, banks operating in public, private or foreign sector began to place great deal of emphasis on retail banking.

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SHRI CHINAI COLLEGE OF COMM. & ECO. RETAIL BANKING IN INDIA

The decade of 1990s saw the implementation of economic and financial sector reforms in a phased manner to tide over the deteriorating economic condition of the country. The liberalization of financial sector has widened the scope of financial sources for corporate. They can now go in for external commercial borrowings (ECB) from any internationally recognized banks, export credit agencies, international capital markets, suppliers of equipments etc. corporate can raise loans from international sources up to predetermined amount without the need of getting approval from either the government or the reserve bank. Banking sector reforms paved way fir the entry of foreign and private banks. The government is also allowing FDI into the banking sector. Private and foreign banks with superior technology and management practices began to give tough competition to public sector banks. To counter dwindling profits, to cash on the economic growth and also to diversify their operations and earn a productive return with their surplus cash, public sector banks joined the bandwagon of retail banking. Public sector banks realized that the profit margins were higher and risks were lower in retail banking when compared to corporate banking. While foreign and foreign banks competed on the basis of technology and innovating marketing and management practices, public sector banks banked heavily on their wide network of branches spread throughout the length and breadth of the country.

INTRODUCTION OF RETAIL BANKING
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SHRI CHINAI COLLEGE OF COMM. & ECO. RETAIL BANKING IN INDIA

“We don’t want satisfied customers…we want delighted customers.” It is the new marketing mantra today. The same applies to banking as well. Retail banking and rural banking were once considered as taboos by the leading foreign and domestic banks. But cut-throat competition, innovation and advanced technology have altogether changed the faced of banking sector. Now all banks have recognized the importance of retail banking. In this that part of a bank that offers products and services primarily to individual customers, professional, self-employed individuals or small businesses. The focus is on creating products and services that meet the needs of the target customers and are profitable for the bank as well. Understanding retail banking will help in servicing your customer better as it would give you a perspective and insight into how such products are structured and specific requirements for each set of products. The approach to retail banking products is more is more on a mass production basis wherein all risk and operations are based on and geared to cater to a large number of customers. This is therefore, significantly different from corporate banking or wholesale banking where focus is on large sized customer accounts rather than large numbers of customers. With the advent of ATMs, ‘Anytime banking’ has come into picture. Satellites and telecom networks across the world have made ‘Anywhere banking’ possible. Now it is the turn of ‘Anyhow banking’, and the leading bank of the next century will be the one which has all these three A’s.

WHAT IS RETAIL BANKING

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SHRI CHINAI COLLEGE OF COMM. & ECO. RETAIL BANKING IN INDIA

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. Today’s retail banking sector is characterized by three basic characteristics.

Multiple products (deposits, credit card, insurance, investments and securities)

 Multiple channels of distribution (call center, branch, internet and kiosk); and  Multiple customer groups (consumer, small business, and corporate)

DEFINITION
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personal loans.Y.BBI . debit cards. Services offered include: savings and checking accounts. mortgages.SHRI CHINAI COLLEGE OF COMM. mortgages. debit cards. & ECO. OBJECTIVES OF RETAIL BANKING 6 T. and so forth”. rather than corporations or other banks. ➢ DEFINITION OF RETAIL BANKING SERVICES Banking services provided to individual members of the public as opposed to those provided to businesses and institutions. credit cards. and so. credit cards. RETAIL BANKING IN INDIA ➢ DEFINITION OF RETAIL BANKING “Retail banking refers to banking in which banking institutions execute transactions directly with consumers. “Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. personal loans. Services offered include: savings and checking A/c’s.

as loan amounts are relatively small.  Large numbers of clients can facilitate marketing.  Improve service capability in order to integrate with corporate parent and leverage financial planning network. & ECO. by offering value added services to customers by packing them with retail banking products and services. credit risks tends to be well diversified. RETAIL BANKING IN INDIA The objectives of retail banking is to increase penetration by providing increasing level of services and increased access. since customers are too fragmented to bargain effectively. ADVANTAGES AND DISADVANTAGES OF RETAIL BANKING ADVANTAGES 7 T.  Continues to stress credit quality and ensure risk is appropriately priced.  Provide cheap commercial deposits and consumer deposit growth.BBI .  Retail banking clients are generally loyal and tend not to change from one bank to another very often. SOME OF THE OBJECTIVES ARE  Assess way to leverage and scale to support aggressive growth.  There is less volatility in demand and credit cycle than from large corporate.Y.  Identify cost savings to meet return on investment capital target.SHRI CHINAI COLLEGE OF COMM.  Interest spreads are wide. mass selling and the ability to categorize/select clients using scoring systems /data mining. The retail banking offers considerably better of 3-4% compared to very thin spread available to banks in case of corporate clients.  Drives overall deposits and loan growth through aggressive marketing.

SHRI CHINAI COLLEGE OF COMM.Y. RETAIL BANKING IN INDIA Retail banking has inherent advantages offsetting certain disadvantages. & ECO. 8 T. RESOURCE Stable deposits Less bargaining for additional Good avenue foe funds deployment interest Low cost funds Builds customer base Increases subsidiary business Lower risks and NPA perception Helps economic revival of the nation through increased production activity Improves lifestyle and fulfills aspirations of the people through affordable credit A safe and convenient saving Innovative product development avenue Minimum marketing efforts in a demand driven economy. Risk weight in certain segments like housing loan and constitute ASSET SIDE core Better yield and improved bottom line DISADVANTAGES  Designing own and new financial products is very costly and time consuming for the bank.BBI . Advantages are analyzed from the resources angle and asset angle.

 The volume of amount borrowed by a single customer is very low as compared to wholesale banking.  Though banks are investing heavily in technology.BBI . RETAIL BANKING IN INDIA  Customers now-a-days prefer net banking to branch banking.Y. can become NPAs.  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. are finding it difficult to retain the customers who wish to opt for net banking. The banks that are slow in introducing technology-based products. This does not allow banks to exploit the advantage of earning huge profits from single customer as in case of wholesale banking. they are not able to exploit the same to the full extent.SHRI CHINAI COLLEGE OF COMM. & ECO.  Customers are attracted towards other financial products like mutual funds etc. SWOT ANALYSIS 9 T.

Provides diversified asset portfolio Retail banking includes comprehensive range of financial product and services i. CRM Tool 10 T. & ECO. These products provide an opportunity for banks to diversify the asset portfolio with higher profit and relatively lower NPA.BBI . Retail banking provide all such product and services(home loan. 3. etc. car loan. personal loan. deposit product.SHRI CHINAI COLLEGE OF COMM. 2. RETAIL BANKING IN INDIA ✔ STRENGTH 1. auto loan. home loan. loan against equity shares. etc) to its customer which are required by them to maintain change in their life style in short it helps in fulfilling aspiration of people through affordable credit.Y.e. payment of bills. debit card. mortgage loan. credit card. car loan. Improves standard of living Due to major economic reforms in Indian economy there has been an increase in per capita income which has led to change in life style and growing urbanization have made the Indian population rise from oblivion and resurge in modern era on this front role of retail banking arises.

Main reason put forth or this is decline in corporate borrowing. Hence customer Service and Quality implementation through use of CRM tools will help of banks. 3. & ECO. higher amount of loan etc. Managing corporate client is more easily as they have well defined financial policy and project and they concentrate on product and services offered rather than on CRM of bank unlike individual clients.Y. All product and services are designed to satisfy need and wants of its customer. RETAIL BANKING IN INDIA The individual customer is deity of bank in retail banking segment. educational.SHRI CHINAI COLLEGE OF COMM. Marketing (Internal and External) Retail banking requires strong marketing strategies to be adopted by bank both internal and external under retail banking segment top level management need employees to introduce product properly to its employees because if the employees are not aware regarding the product they are offering that product will fail however effective the product is also bank require to spend lot on its marketing of product to general public because if public is not aware regarding the product and service how will they opt for it . cultural. Changes in technology 11 T. ✔ WEAKNESS 1.BBI . As customer in retail banking belong to different economic. However bank can take certain step to manage their corporate clients such as lower arte credit. and social background there demand is also varied. Avoids corporate sector Retail banking avoids corporate sector totally which is the backbone of Indian economy. 2. It is acceptance of the banking product and satisfaction of customer that yield profit in this segment.

SHRI CHINAI COLLEGE OF COMM. ATM leverage the retail banking product and service offered by banks. Improving consumer purchasing power. Various It solution used by banks such as E-banking. But this has weekend the segment somehow. phone banking. 2) Rise in per capita income The rise of the Indian middle class is an important contributory factor in this segment. coupled with more liberal attitudes toward personal debt. is contributing to India's retail banking segment. RETAIL BANKING IN INDIA Future of retail banking lies in the hand of IT. ✔ OPPORTUNITIES 1) Scope for innovation: Under retail banking as banks try to provide all those product and services which are desired by its customer this segment has more scope for innovation banks can keep on modifying its products as per the market demand which helps them from not being out dated .BBI . The percentage of middle to high-income Indian households is expected to continue rising.Y. & ECO. they are perhaps more comfortable than previous generations. 3) Economic growth 12 T. If banks are not able to adopt the latest technology it may pull back the growth of bank also this technology requires lot of capital investment and if at all the technology fails then it may shake the customer’s confidence on bank and bank may land up in losing its customer. but as far as acquiring personal debt is concerned. The younger population not only wields increasing purchasing power.

BBI . In the BRIC Report India is stated as an economic superpower. on easy terms without much scrutiny this has brought within an increase in the number of cases of default in loan repayment thus increasing the bank’s NPAs. 3. Large disbursement of loans The boom in the field of retail banking and the intense composition among the to increases the customer base has resulted in the large disbursement of customer loans.SHRI CHINAI COLLEGE OF COMM. RETAIL BANKING IN INDIA Retail banking has immense opportunities in a growing economy like India. informing them about new products and services. Kearney. RETAIL BANKING SERVICES 13 T. 2. T. recently identified India as the 'second most attractive retail destination' of 30 emergent markets. a global management-consulting firm. pass word and other confidential information relating to customer. This may cause inconvenience to busy customers. Banks are the victims of unscrupulous elements who have in many instances hacked banks website and stolen credit card number. auto loans. & ECO. According to A. educational loans etc.Y. Issue of customer privacy Customer privacy is also affected in another way wherein customer service representatives of the banks ring up customers at any times at their places of work. loans on credit cards. Hence retail banking has high opportunities in India ✔ THREATS 1.T The growth of IT has brought with it a number of frauds perpetrated with the help of technology and which come under the domain of cyber crimes. I.

home loan. etc. auto loan.Current account and saving account • ATM card • Standing instruction from customer for making payments • Inter branch transfer of fund • Safety vault • Credit card • Debit card • Service to senior citizen • Telephone banking • Internet banking • Conversion of excess balance to time deposit Supporting services • Delivery of promised time • Interest loan option 14 T. deposit product. car loan.Loan Product • Current account Consumer loan • Saving account • Time deposit loan at . Today the most proactive banks have entered the retail banking segment and have identified it as a principal growth driver. mortgage loan.e. debit card. RETAIL BANKING IN INDIA Retail banking includes comprehensive range of financial product and services i. payment of bills. loan against equity shares. These products provide an opportunity for banks to diversify the asset portfolio with higher profit and relatively lower NPA.BBI Core services Facilitating services 3.Y. & ECO. credit card. Categorization of Retail Bank services Core services 1.Payment services Facilitating services • Cash • Foreign currency requirements • Travelers cheque • DD/bankers cheque • IT Supporting services • Making payment at door step • Internet banking • Telephone banking 2.SHRI CHINAI COLLEGE OF COMM.

• Counseling for insurance family on post retirement saving VARIOUS PRODUCTS OF RETAIL BANKING 1) Home Loans 15 T.BBI . RETAIL BANKING IN INDIA Housing loan Personal loan Education loan account • Flexibility in loan • Counseling on Real estate market • Legal services for documentation paying 4.Y.Insurance product: Life insurance Pension scheme • Current account • Saving account • Time account • Safety vaults deposit • Additional facility members.SHRI CHINAI COLLEGE OF COMM. & ECO.

BBI .SHRI CHINAI COLLEGE OF COMM.Y. Home extension loan His is given for expanding or extending an existing home such as adding a room or floor etc. Home construction loan This is a loan given for the construction of a new home. & ECO. Land Purchase Loans This is loan which is provided to purchase land either for construction of a home or for investment in land. RETAIL BANKING IN INDIA Types of Home Loans There are a variety of home loans available: Home Purchase loans This is basic home loan for the purchase of a new home. Existing home improvement loans These loans are given for implementing repair works & innovations in home that has already been purchased by the borrower. 16 T.

✔ Documentations requirements – pre-approval  At the time of application for a home loan. salary certificate/slips & TDS certificate (From 16) of the borrower & coapplicant.SHRI CHINAI COLLEGE OF COMM. the housing finance company would ask for the following common documents:  In case the borrower is a salaried employee.BBI .  Copy of the latest credit card statement. RETAIL BANKING IN INDIA Bridge Loan These are loans given to persons who are looking to sell their existing home & purchase another.  Signature verification from the borrower’s banker. number of dependents. age. & ECO.  Proof of residence. liabilities. Balance transfer loan This is loan which allows the borrower to repay an existing loan & avail of another loan at lower rates of interest. if any.Y. 17 T. qualification.  In case the borrower is self-employed.  Passport size photograph. The bridge loan helps finance the purchase of the new home until the old one is sold. details of business track record & a copy of the audited financial statement of the last two years of the borrower & co-applicant. spouse’s income. if any. ✔ Eligibility terms for home loans The primary concern of a housing finance company is to determine the loan amount that the borrower is comfortably able to repay. The repayment capacity is determined by taking into consideration factors such as income. assets.  Copy of bank account statement for the last 6 months. stability & continuity of occupation & savings history.e. proof of income i.

usually at a higher rate of interest. Photocopies of title deeds 3. ✔ Documentation requirements – post-approval/ disbursal stage After a loan application has been approved & at the time that the borrower requires the funds for payment. Repayment is usually taken in Equated Monthly Installments (EMI) by way of post-dated cheques. the housing finance company receives the details & communicates its decision regarding approval of he loan application. Non-encumbrance certificate 5. A few housing finance companies also offer a 20-year repayment period.Y. ✔ Annual Reducing Balance 18 T. RETAIL BANKING IN INDIA Upon receipt of all the documents along with the duly completed application form. the following documents are required to be furnished: 1. Agreement to sell 4. This fixed money that is repaid to the housing finance company every month comprises of both interest & principal repayment. Allotment letter 2. ✔ Monthly Reducing Balance The principal on which the interest is paid reduces every month as the EMI is paid.SHRI CHINAI COLLEGE OF COMM.BBI . Approved plans & clearance certificates along with estimates if the property is self-constructed. & ECO. NRIs can avail of a housing loan for a maximum period of 7 years. the interest on home loans is usually calculated on Monthly Reducing or yearly reducing balance. ✔ Repayment Period Repayment options range generally from 5 to 15 years. ✔ Interest Rate Calculation In India.

1. The effective interest rate is approximately 0. ✔ Fees & Charges Home loans are usually accompanied by some or all of the following charges:  Interest tax which is payable on the interest paid on the home loan & not on the principal.000 and principle benefit of Rs.  Commitment fees are sometimes charged when a loan is not availed of within a stipulated period of the loan application being processed & sanctioned. Home loan interest rates for a loan upto 20 lacs is 9. RETAIL BANKING IN INDIA The principal is reduced at the end of the year. 50.  Processing charge is a fee payable to the lender on applying for a loan it could be a fixed fee or a percentage of loan amount applied for & sanctioned.Y.25% to 10% for the period of 5 years. ✔ Tax Benefits Tax benefits are available under The interest benefit of Rs. 1. This method of calculating interest is more expensive as the borrower continues to pay interest on a certain of the principal.  Prepayment penalties are sometimes charged when a loan is repaid before the end of the agreed duration of the plan. This ax is sometimes included in the rate of interest on the home loan. 00. 1999 to construct or acquire a 19 T. & ECO.BBI . which has already been paid back to the housing finance company by way of the EMI.SHRI CHINAI COLLEGE OF COMM.000 is deductible if the loan is taken on or after April 1.7% higher than the monthly reducing balance method.  Miscellaneous charges could include documentation or consultant charges.5% & 1% of the amount being repaid. This usually ranges between 0.

e. 1) Personal/Unsecured Loans Personal loan is an all-purpose loan for which the end user can be to meet any personal requirements of the borrower.BBI . the take home salary has to be over Rs. The borrower should be over 21 years of age & less than 58 years old. 20 T. the deductible amount of interest repaid that can be claimed for tax benefits is Rs.10 lakhs towards personal loans.SHRI CHINAI COLLEGE OF COMM. The borrower’s place of residence & work place & employment track record are given higher priority than in secured loans. his current earnings are the primary determinant.15. & ECO.Y. ✔ Eligibility Terms For Personal/Unsecured Loans Typically. Tax benefit will defer in case of the property has been leased out.000. 30. The bank usually tries to improve that the EMI does not exceed 30-40% of the net take home salary. The interest as well as tax benefits can be claimed only if the installments towards home loan repayment are paid. RETAIL BANKING IN INDIA property and construction of the property is completed within three years of the loan disbursement for home loans taken before April 1. 8. & regular outflows. Loan eligibility is determined primarily by the borrower’s capacity to repay i.000. Most banks lend anywhere between Rs. 000 to Rs. The maximum amount of loan sanctioned is usually in the range of about normal household expenses & outflows such a s any EMI on other loan etc. 1999.

SHRI CHINAI COLLEGE OF COMM. salary certificate/slips & TDS certificate (Form 16) of the borrower & coapplicant. ➢ In case the borrower is self-employed: details of business track record & copy of the audited financial statements of the last 2 years of the borrower & co-applicant. if any. ✔ Repayment Period Personal loans are usually short tenure loans up to maximum of three years. ➢ Copy of bank account statements for the last 6 months. RETAIL BANKING IN INDIA ✔ Documentations Requirements – Pre-Approval ➢ In case the borrower is a salaried employee. the bank reviews the details & communicates its decision regarding approval of the loan application.Y. the bank collects post-dated cheques for the full tenure of the loan prior to disbursal along with the collateral securities.BBI . There is usually a 6 months lock in period in either case. ✔ Interest Rate Calculation Interest rates currently vary between 12 to 30%. ➢ Copy of the latest credit card statement. ✔ Fees & Charges The usual fees & charges include: 21 T.5 to 15% per year. Upon receipt of all the documents along with the duly completed application form. ➢ Proof of residence. ➢ Signature verification from the borrower’s banker. Longer tenure loans are usually priced higher. ✔ Documentation Requirements – Post approval/Disbursal Post approval. In rare cases some banks offer a 5-year repayment option. if any. if any.e. & ECO. ➢ Passport size photograph. proof of income i. Personal loan for a loan up to 150000 is 12. As also loans to persons with a higher risk profile.

SHRI CHINAI COLLEGE OF COMM. Used car loan 22 T. self employed persons may avail of tax benefits on the interest amount paid if the loan is for professional purposes. ➢ Some banks also charge a commitment fee of approximately 1% of the loan amount. which could be about 1-3% of the loan amount being sanctioned.Y. However. 1) Auto Loans Types of Auto Loans Auto loans or car loans could be of the following nature: New car loan This is most opted for as it provides a simple loan for purchasing a new car. & ECO.BBI . ✔ Tax Benefits Tax benefit on personal loans is not available to salaried employees. ➢ Foreclosure or prepayment penalty ranges between 2-3% of the amount being repaid. which is levied in case the sanctioned loan is not availed of within stipulated time duration. RETAIL BANKING IN INDIA ➢ Processing fees.

the amount in used cars like the Maruti 800 could go up. Depending on the model & its resale. RETAIL BANKING IN INDIA This is loan facility offered on second hand car purchases. This involves valuation of the car being purchased by way or certified values of used cars. ➢ Signature verification from the borrower’s bank. Used cars get lower is offered. details of business track record & a copy of the audited financial statements of the last 2 years of the borrower & co-applicant.SHRI CHINAI COLLEGE OF COMM. Additional information is taken with the loan application form. 60. Eligibility terms For Auto Loans Typically most financiers have similar eligibility criteria for auto loans.Y.BBI . ➢ Proof of residence. ➢ Copy of bank statements for the last 6 months. The size of the loan amount sanctioned depends on the cost of the vehicle. & ECO. the type of car (standard or Premium) & the percentage financing. ➢ Copy of the latest credit card statement. A new car can get up to 90% financing. If any. Auto Refinance This is a loan facility given on an existing car owned by the borrower provided that the car is not hypothecated to any financier. ✔ Documentations Requirements – Pre-Approval ➢ In case the borrower is a salaried employee. proof income i. ➢ Passport size photograph.e. salary certificate/slips & TDS certificate (From 16) of the borrower & coapplicant. 23 T. The age of the borrower should be between 2-58 years. if any. Used cars get lower financing. Annual income should be above Rs. ➢ In case of borrower is self-employed.000.

✔ Documentation requirements – Post approval/disbursal Apart from the loan documentation the borrower is required to submit photocopies of the following: 1. ✔ Repayment Period Usually Car financing is available from 1-5 years. & ECO. Road transport tax papers. Some financiers offer longer tenure loans up to 7 years. The tenure is usually dependent on the brand of car being purchased. The RC book is usually endorsed as hypothecated to the financier until full repayment of the loan amount. Some financiers allow a facility for back loading of the EMI where in the EMI payments are lower initially & increases as the borrower’s income increases. RETAIL BANKING IN INDIA Upon receipt of all the documents along with the duly completed application form. Registration Certificate (RC book).BBI . when the hypothecation is cancelled. This is submitted to the RTO for updating the RC book. As tenure increases the EMI reduces but the total interest outflow is higher. A super premium car such as the Mercedes would be restricted to tenure of 3 years only.SHRI CHINAI COLLEGE OF COMM. 24 T. The insurance company also requires an NOC make the necessary changes on the insurance policy. the car finance company/bank reviews the details & communicates its decision regarding approval of the loan application. 2. Insurance policy.Y. 3. After the last payment is made the bank issues a NOC & form 35 to cancel the hypothecation on the car.

Most financiers do not cover insurance & registration.2. advanced EMIs if applicable. RETAIL BANKING IN INDIA ✔ Interest Rate Calculation The interest is usually charged on a rate or on a reducing balance basis which could be daily.000 at minimum period of 12 years. ✔ Fees & Charges There are fees & charges in addition to interest rate. 1) Educational Loans 25 T. registration charges & insurance have to be paid prior to the transaction being completed.50.e. & ECO. The price of the car is taken to be the ex-showroom price. Some banks offer a deduction based on relationship pricing criteria i. and quarterly on annually.SHRI CHINAI COLLEGE OF COMM. stamp charges. Processing fees.Y. ✔ Tax Benefits Salaried employees cannot avail of tax benefits on the loan taken for purchasing a car. monthly. if the borrower has any other relationship with the bank by way of deposits. credit cards or other loans with a good track record of repayment .BBI . However self employed persons can avail of tax benefits on depreciation as well as on the interest paid on the amount borrowed for the purchase of the vehicle.25% to 15% for a vehicle upto Rs. which does not include insurance & registration charges.14.

It pays for the cost of tuition fees. However.SHRI CHINAI COLLEGE OF COMM. • Copy of bank account statements for the last 6 months. the parents &/or guardians is of utmost concern to the bank. For loans in India & 15% for studies in abroad. & ECO. The cost of books.4 Lakhs. Other documents would include. mess fees & examination fees. Usually no margin money is required for loans uptoRs. ✔ Documentation Requirements – Pre-Approval • The documentation requirements would depend on the specific requirements as per the policy of the bank giving the loan. The past academic track record of the student would also be considered. The primary requirement is that the student should have got admission to the course that he is seeking the loan for. 26 T. hostel fess.BBI . Some financiers cover the cost of airfare if the studies are being undertaken overseas. Eligibility Terms for Educational Loans The terms for eligibility for an Educational Loan vary from bank to bank. • Signature verification from the borrower’s banker. The repayment capacity of the student & in several cases. to be borne by the applicant. The parent’s income would also be considered by most banks. • Proof of residence. a confirmation of admission by the educational institution is necessary. It could be for studies abroad. The maximum loan amount varies by individual banks as well as the institution that the student would pursue his/her academics. equipment & other instruments required by the student are also covered. RETAIL BANKING IN INDIA Educational loan usually cover a variety of courses. • Passport size photograph.Y. Most banks also specify an age criteria such as 16-26 years etc.

Airfare is directly paid to the airlines. Repayment stars 6 months after completion of the course or on commencement of a job.e. However. whichever is earlier. ✔ Repayment Period A holiday period is usually given for educational loan requirement before he/she starts paying back the loan in EMIs. This is the security that the bank takes to recover the outstanding amount in case the student is unable to repay the loan amount. RETAIL BANKING IN INDIA • Incase either of the borrower’s parents is a salaried employee. if any. The student is given certain amounts to make book or instrument/equipment purchases on a monthly or quarterly basis. ✔ Documentations Requirements – Post-Approval/Disbursal Disbursement of the educational loan is made directly to the institution to which the student is admitted. banks usually requires a Life Insurance Policy equal to or more than the loan amount. details of business rack record & a copy of the audited financial statements of the last 2 years of the borrower & co-applicant. Receipts for each payment are forwarded to the bank. & ECO. The holiday period ranges from 6 months to a year. 27 T. proof of income i.SHRI CHINAI COLLEGE OF COMM. in case of foreign university education.BBI . salary certificate/slips & TDS certificate (Form16) of he borrower & co-applicant. • Airline booking details. if the students start working immediately on completing the course. • Documents with respect of past academic track record of the student.Y. 1 lakh. he does not enjoy a holiday period. When the loan amount exceeds Rs. • Incase either of the borrower’s parents is self-employed. Hostel & mess fees are also paid likewise.

The lesser of the two amounts would be valid for deduction 1. No deduction. You will get a tax benefit on the interest you pay.SHRI CHINAI COLLEGE OF COMM. Processing fees 2. Initially. repayments on your education loan are NOT covered under Section 28 T. ✔ Fees & Charges Fees & charges include: 1. Study Abroad is 10% to 13% for the loan up to 400000.BBI . Documentation cost 3. Rs 40. Do remember. you can claim deduction under Section 80E of the Income Tax Act. this had been done away with. It will reduce the tax you have to pay. there is no limit any more. subject to the following conditions.Y. Study in India is 13% to 15% for the loan up to 400000. however.000 Now. Total amount paid during the year (principal repaid and interest paid) 2. The interest you pay will be deducted from your income. a deduction will be allowed in respect of repayment of loan educational purposes. & ECO. Pre-payment penalty ✔ Tax Benefits Under section 80E of the IT Act. If you take an education loan. is now available for the principal repayment. RETAIL BANKING IN INDIA ✔ Interest Rate Calculation Interest on educational loan is charged on a simple basis during study period or upto commencement of repayment (interest rates are as per RBI guidelines at ha time). there was a limit on the tax benefit.

Y. RETAIL LENDING 29 T. As mentioned above.SHRI CHINAI COLLEGE OF COMM. RETAIL BANKING IN INDIA 80C. These deductions are available upto eight years totally. & ECO. You cannot claim the deduction for more than eight years. they are covered under Section 80E of the Income Tax Act.BBI . The time period The deduction mentioned above will only be applicable when you start repaying the loan.

Credit portfolio of the banking business is fast changing in India. when they need it and in a manner that the customers want. the loan book containing a relatively high proportion of sizeable large credit exposure is more susceptible to potential credit risk compared to a more widely distributed/mixed portfolio. Retail lending is becoming an important segment of bank credit. Limits have to be fixed for single exposure in relation to the capital funds. Thus. RETAIL BANKING IN INDIA Large credit exposures are linked to bank`s capital. Further. The share of credit to other non-priority sector “personal loans” witnessed relatively a slower growth rate. Thereby. retail exposure. In the face of slowdown in industrial activity. with strong dominance on local populace and having personal contact with customers facilitates risk spreading and quality assets. TYPES OF CARDS ISSUED BY THE BANKS ✔ Cash card(ATM) 30 T. The industry must become more proactive and reach out to customer. & ECO. The critical challenge for the banking industry is approachability and accessibility the ability to make finance to those who need. banks have aggressively increased the share of credit towards to retail lending. rather than expecting the customer to reach out the industry.BBI .SHRI CHINAI COLLEGE OF COMM.Y. clearly defined exposure ceiling for a single counterparty of group of related counterparties is required to be fixed.

✔ Debit Cards 31 T.Y. A special plastic card is used for getting currency notes from a machine known as automated teller machine. & ECO.BBI . This has been discussed in detail earlier. RETAIL BANKING IN INDIA Also known as an ATM card.SHRI CHINAI COLLEGE OF COMM.

while purchase is made & the traders gets guaranteed payment. Under check card system. the card holder is given a card & a chequebook. ✔ Cheque cards It is a card given to customer by the bank that he must show when he writes a cheque.SHRI CHINAI COLLEGE OF COMM. Under the system. These can be issued only for customer maintaining satisfactory accounts & for a minimum period of six months. & ECO.BBI . he has to keep sufficient balance in his account or the bank will provide overdraft up to a specific limit. which promises that the bank will pay out the money written on the cheque. ✔ Charge Card 32 T. card holders account are immediately debited against purchase or services through the computer network. The spending limit is determined by the user’s bank upon available balance in the account of user. of course on interest payment basis.Y. He has to use the cheques. Hence. It is a special plastic card connected with electromagnetic identification hat one can use to pay for things purchased directly from his bank account. The customer does not get free credit. under debit card the cardholder must have adequate balance in his account. RETAIL BANKING IN INDIA Debit cards allow for direct withdrawal of funds from a customer’s bank account.Debit card & smart card issuance by banks in India should be approved by the respective bank’s board as well as by RBI.

A smart card however. enables the cardholder to perform various other banking functions apart from credit purchases. & ECO.Y. For examples. In a charge card such credit facility is not available.SHRI CHINAI COLLEGE OF COMM. etc. with smart cards. In credit cards. This is possible because the card has an integrated circuit with microprocessor chip embedded in the card for identification purposes. we can verify entries in our accounts.BBI . ✔ Smart Cards With the use of credit cards. etc. we can draw cash from ATMs. the card holders get credit or loan for payment of periodical bills when sufficient balance is available in their accounts. The full amount owed must then be paid on demand. The periodical bill amount is paid off by charging it to customers account. A fee is also payable by the card holder to the card issuing institution. we may avail of credit facility on our purchase of goods/services from approved sales outlets. The card can also perform calculations & maintain records. 33 T. seek information pertaining to our accounts. RETAIL BANKING IN INDIA A small usually plastic card provided by an organization with which one may buy goods from various shops.

BBI . Such cardholders are called convenience users. Beyond the period. & ECO.SHRI CHINAI COLLEGE OF COMM. RETAIL BANKING IN INDIA ✔ Convenience Users Credit card customers are typically extended an unsecured credit at least up to 30 days. some cardholders may prefer to pay off their full dues before the free credit period. INFORMATION TECHNOLOGY (I.Y.T) IN RETAIL BANKING 34 T. However. the bank charges interest on outstanding bills.

35 T.SHRI CHINAI COLLEGE OF COMM. Since the success of retail banking is measured based on the volume of customer base. & ECO.Y.BBI . a physical transaction costs the bank Rs. to compete with public sector banks. the public sector banks were in advantageous position because of their wide network of physical branches in urban and rural areas. cheque transaction Rs. private and foreign banks adopted IT as a major cost effective tool in their expansion drive. while a debit transaction costs only Rs. IT has made it possible for banks to reach and serve a large number of individual customers in the shortest possible time and also reduce the cost of banking transactions. 13-17.30-50. RETAIL BANKING IN INDIA The growth of information technology (IT) and its remarkable applications to banking and financial sector has greatly facilitated the growth of retail banking to a very large extent. 2-5. When the banking sector reforms were introduced. According to ICICI bank officials.

internet. riding on the technological wave. etc. they have introduced ATMs. Technology provides Retail Banks with various delivery channels: Automated Teller Machines (ATM) 36 T. internet banking. Private and foreign banks who were pioneer of applying IT in banking sector have laid more stress on virtual banking when compared to brick and mortar structure of the public sector banks. phone banking and mobile banking such that banking transactions are reflected irrespective of any convenient medium used by their customers.SHRI CHINAI COLLEGE OF COMM. IT has enabled the integration of ATM. to move over to virtual banking in a big way by offering and promotional schemes. The development of software industry in India has helped the cause of these banks. & ECO. Major Banks has tie-ups with software companies for developing the requisite software.Y. In addition to websites. These banks discourage physical branch by charging extra amount. phone banking. mobile banking.BBI . Private and foreign banks have state-of the art websites which provides information to the customers about the banking products and services and also help them to avail these products and services through some easy steps Private and foreign banks are found to encourage their customers. RETAIL BANKING IN INDIA Therefore. in a big way by computerizing and networking their branches. private and foreign banks tried to capture the market in a big way.

the machines sensing equipment identifies the account holder and asks for his/her identification code number. This number is unknown to the banks staff and is secret and unique to that individual. usually.BBI . The card is a plastic card with a magnetic strip with the account number of the individual. the ATM pops a menu screen. MOBILE BANKING 37 T. When the matches found. whose traditional and primary use is to dispense cash upon insertion of a plastic card and its unique PIN or Personal Identification Number. When the card is inserted into the ATM.SHRI CHINAI COLLEGE OF COMM. The machine then verifies the account number on the ATM card along with the secret code number stored in the ATM. which allows the user to transact almost all types of bank transactions. & ECO.Y. as the PIN and is issued by the banks computers. RETAIL BANKING IN INDIA The trend in banking has evolved from a cash economy to cheque economy and thereon to the plastic card economy. Current and savings account holders of a bank who hold a certain minimum balance in their accounts (determined by each bank as per their policy) are issued an ATM card. This is referred to. When the person uses the ATM and it asks for the PIN. One of the channels of banking services delivery is vide the ATM or the Automated Teller Machines. the cardholder identifies himself/herself by pressing the relevant number buttons on the machine.

Every bank has special firewalls & its own security measures to protect the accounts from nonauthentic use from unauthorized users.. there are 3. ICICI has signed Memorandum of understanding (MoU) with Reliance India mobile to provide services of mobile banking free of cost to those clients who have reliance handsets. mobile phones have become one of the convenient means of carrying out banking transactions. RETAIL BANKING IN INDIA All over the world. However.Y. But in India. very few people use mobile phones even for simple banking queries in spite of having 47 million mobile users base with nearly two million being added every month. frauds and security problems. & ECO. In Korea.024-bit encryption. The access to account information as well as transaction is offered through the worldwide network of computers on the Internet. the transaction is aborted. INTERNET BANKING One of the channels of service delivery to a banking customer is through the Internet. Each account holder is provided a PIN similar to that of the ATM or Phone banking PIN. in some cases.SHRI CHINAI COLLEGE OF COMM.3 million mobile phones users.g. with a 1. Data are encoded using algorithms with a 128-bit key or. the various banks have entered into strategies tie-ups with mobile companies so that customers can avail banking services. complex process etc. Then both versions are compared. This was due to low level of awareness. TELE OR PHONE BANKING 38 T. The finger print is taken before & after the transaction. The access to the account is allowed upon a match of the account details & PIN entered on the computer system. For e. In case of any difference. A higher level of security may be reached by an electronic finger-print.BBI .

RETAIL BANKING IN INDIA Tele banking or phone banking service offered by banks to enable customers to access their accounts for information or transactions. Though cash withdrawal and deposit are not enabled through this service many banks offer cash delivery or collection service to certain classes of customers. a telephone PIN (T-PIN) is provided to each account holder.Y. MARKETING STRATEGIES 39 T.SHRI CHINAI COLLEGE OF COMM. Similar to the ATM PIN. The customer can call the exclusive tele-banking numbers and provide the details to identify himself/ herself to the automated voice. Upon the respective numbers matching the computerized systems the customer is given access to his account to query or transact on his account. the bank account number and the T-PIN are asked for.BBI . & ECO. Typically.

to retain the customers. The banks should come out with new products in the area of securities.Y. the customers can easily switch over to the one. RETAIL BANKING IN INDIA Strategies for increasing retail banking business  CONSTANT PRODUCT INNOVATION It is required to match the requirements of the customer segments. & ECO. The quality of service that bank offer and the experience that clients have. 40 T. which offers better service at comparatively lower cost. etc.  QUALITY SERVICE AND QUICKNESS IN DELIVERY As most of the banks are offering retail products of similar nature.BBI . Therefore. The customer database available with the banks is the best source of their demographic and financial information and can be used by the banks for targeting certain customer segments for new or modified product. ATMs. matter the most. the banks have to come out with competitive products satisfying the desires of the customers at the click of a button. Hence.  INTRODUCTION OF NEW DELIVARY CHANNELS Retail customers like to interface with their banks through their multiple channels. internet. mutual funds and insurance. banks should try to give high quality service across all service channels like branches.SHRI CHINAI COLLEGE OF COMM.

India compares pretty poorly with the other economies of the world that are now becoming comparable in terms of spending patterns with the opening up of our economy. Firstly.BBI . it is now undeniable that the face of the Indian consumer is changing. 41 T. The direct fallout of such a change will be the consumption patterns and hence the banking habits of Indians.SHRI CHINAI COLLEGE OF COMM. & ECO. There are two main reasons behind this. RETAIL BANKING IN INDIA The Indian players are bullish on the Retail business and this is not totally unfounded. 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. At the same time. which will help them in knowing what their competitors are offering to their client. This is reflected in a change in the urban household income pattern.Y. which will now be skewed towards Retail products. which gives them an opportunity to sell third-party products through these branches.  CROSS-SELLING OF PRODUCTS Public sector banks have an added advantage of having a wide network of branches. RETAIL BANKING IN INDIA  RETAIL MARKET RESEARCH Banks may go for detail market research.

the corresponding US figure standing at 18%. The comparison with the West is even more staggering. Taiwan (52 per cent). 000 to Rs. While new generation private sector banks have been able to create a niche in this regard. the public sector banks have not lagged behind. After all. credit cards and educational loans. while the total outstanding Retail loans in Taiwan is around 41% of GDP. As the has shown that the loan values of these retail lending typically range between Rs. auto loans. there is still much scope for retail banking in India. Retail banking in India is not a new phenomenon.5 per cent of total outstanding advances as on March 2004. & ECO. Here also.100 lakh. By international standards. Another comparison that is natural when comparing Retail sectors is the use of credit cards.BBI . The loans are marketed under attractive brand names to differentiate the products offered by different banks. It has always been prevalent in India in various forms. Within the retail segment. The overall impairment of the retail loan portfolio worked out much less then the Gross NPA ratio for the entire loan portfolio. less than 1% was through plastic. In recent past retail lending has turned out to be a key profit driver for banks with retail portfolio constituting 21. retailing make ample business sense in the banking sector. however. the housing loans had the least gross asset impairment. consumption loans for purchase of durables. RETAIL BANKING IN INDIA For instance. the figure in India stands at less than 5%. Malaysia (33 per cent) and Thailand (18 per cent). In fact. the potential lies in the fact that of all the consumer expenditure in India in 2001. For the last few years it has become synonymous with mainstream banking for many banks.SHRI CHINAI COLLEGE OF COMM. The loans are generally for duration of five to seven years with housing loans granted for a longer duration of 15 years. retail loans constitute less than seven per cent of GDP in India vis-à-vis about 35 per cent for other Asian economies — South Korea (55 per cent).20.Y. The typical products offered in the Indian retail banking segment are housing loans. 42 T.

SHRI CHINAI COLLEGE OF COMM. thus. there is a likelihood that the growth numbers seem to get somewhat exaggerated. RETAIL BANKING IN INDIA As retail banking in India is still growing from modest base. ○ ○ 1. Are you aware of the term Retail banking? YES NO Are you satisfied with the Retail banking services provided by your banks? YES NO Which product they use in Retail Banking? 43 T. & ECO.BBI . ○ ○ 1. has to exercise caution is interpreting the growth of retail banking in India. FORMAT OF CUSTOMER SURVEY REPORT SHRI CHINAI COLLEGE OF COMMERCE AND ECONOMICS SURVEY ON PROJECT OF “RETAIL BANKING IN INDIA” NAME:DESIGNATION:SIGNATURE:CONTACT NO:1.Y. One.

When survey respondents were asked.BBI .Y.B.SHRI CHINAI COLLEGE OF COMM. RETAIL BANKING IN INDIA ○ PLASTIC CARDS ○ LOANS ○ OTHERS 1. Do they aware of the term “Retail Banking”? 44 T. In your opinion what are the drawbacks of Retail banking products? ○ INEFFICIENT SERVICES ○ FRAUDS ○ LACK OF AWARENESS 1.K. According to you which bank is effective in providing Retail banking services? ○ NATIONALISED BANKS ○ FOREIGN BANKS ○ OTHERS 1. Do you think that awareness regarding Retail banking is lacking? ○ YES ○ NO COMMENT:-__________________________________________________________ PROJECT GUIDE: PROF. I have done survey of 100 people and asked them certain set of Question.SHARMA) T. & ECO.SHIVANI BAFLEKAR SURVEY CONDUCTED BY: (RESHU. 1.COM (B & I) SURVEY REPORT Data Analysis & Interpretation To know customer view about Retail Banking services provided by various Banks.Y.

2.BBI .SHRI CHINAI COLLEGE OF COMM. 65% of the people are satisfied with the service provided by banks whereas 35% of the people are not satisfied with the service provided by banks.Y. 70% of the people are aware of the term “Retail Banking” whereas 30% of the people don’t know the service which bank provide as “Retail Banking”. RETAIL BANKING IN INDIA INTERPRETATION This bar diagram shows how many people are aware of the term “Retail Banking”. & ECO. 45 T. Are they satisfied with the service provided by Banks? INTERPRETATION This bar diagram shows how many people are satisfied with the retail service provided by Banks. When survey respondent were asked.

4. Demat services. 20 % people said Others (i.e. When survey respondent were asked. When survey respondent were asked. which product they use of Retail Banking? INTERPRETATION 40 % people said Plastic card.Y. & ECO.SHRI CHINAI COLLEGE OF COMM. According to them which bank is Effective in providing Retail Banking Services? 46 T. etc). RETAIL BANKING IN INDIA 3.BBI . 40% people said Loans.

30% people said Loans.SHRI CHINAI COLLEGE OF COMM. what are the drawbacks of Retail Banking service? INTERPRETATION 40% people said Inefficient Services.Y. In your opinion.BBI . 10% people said Foreign Banks. & ECO. 47 T. 20% people said Frauds. RETAIL BANKING IN INDIA INTERPRETATION 60% people said Nationalized banks. 5. 40% people said Lack of Awareness.

Answers from the Respondent: 48 T. Pawar (Branch Manager). Do you think that awareness regarding Retail Banking is lacking? INTERPRETATION According to this bar diagram. in all these customers’ interest is of paramount importance.D.Y. Mr. J. & ECO. SBI (State Bank of India) Bank. OVERALL CONCLUSION OF CUSTOMER SURVEY Furthermore. W. I had asked them certain set of Question to know their views and thoughts on this segment and here I have tried to share with you all their experience that they have shared with me. Ramesh. PATEL (SR. 60% of the populations are aware about retail banking and 40% of the people are still not aware of retail banking. MR. BRANCH MANAGER) Respectively.SHRI CHINAI COLLEGE OF COMM.BBI . and BANK OF BARODA where I met Miss. Mayura Vaidya (Manager). RETAIL BANKING IN INDIA 6. INTERVIEW (Analysis) For better understanding of this topic I have visited ICICI Bank. The banking sector in India is demonstrating this and I do hope they would continue to chart in this traded path.

rate of interest is on reducing balance method. Investment plan . traders. doctor. personal loan to doctors.  SBI BANK-“Obviously the main motive is profit and to give facility by fulfilling the requirements of our clients and accountholders. SBI student loan. What are the products and services included in Retail banking?  ICICI Bank-Saving A/c. Mutual fund. mortgage. internet banking. sainik etc and all types of accounts. Earlier we used to face competition with private banks only but now nationalized bank has also entered in competition. 1. For e.  SBI BANK-“In our bank. education. police. stretched timings.”  BANK OF BARODA-To encourage retail banking in all our branches. There are no hidden charges on the product provided by our bank.Y. Current A/c. but our major competitor is ICICI Bank. Insurance-General. ICIC Direct facility and all types of loans.SHRI CHINAI COLLEGE OF COMM. Fixed deposit. How your products and services differ from other banks?  ICICI BANK-We provide quick services..I.C. online facilities. Online trading A/c. auto. & ECO. Do you face a competition? Who are your competitors?  ICICI BANK-Yes. teacher. surely we face a competition. L. various special “plus” schemes of NRI. What is your primary motive behind Retail banking?  ICICI BANK-Customers satisfaction.g.BBI . 1.” 49 T.  BANK OF BARODA-Our banks provides 26 types of products. 1. RETAIL BANKING IN INDIA 1. reverse mortgage. Almost we face competition from every bank. home.  SBI Bank -Our products include Home loan.  SBI BANK-“Yes.”  BANK OF BARODA-We provide services as per the needs of the customers. Anywhere banking was also started first by us only. growth and we want to be leading player in financial service provider. agriculturist.

T.V. & ECO.Y. How do retail banking products affect the turnover of your bank?  ICICI BANK-Retail bank products are the main strength of the bank. RETAIL BANKING IN INDIA  BANK OF BARODA-Yes. 1. 1. print media. local newspaper like Lok satta etc. What are the marketing strategies that you use in Retail Banking?  ICICIBANK-Marketing strategies include our own sales team. How does recession affect the growth of your bank?  ICICI BANK-Low investment in revenue earning product. 1. All banks are our competitors. For instance KASA FLOAT which includes savings a/c. 50 T. hoardings. fixed deposit and much more.BBI . Why do you think that your services are best as compared to other banks?  ICICI BANK-We are pioneer in providing every services. newspaper like Times of India.  BANK OF BARODA-We mainly publish through Advertising.  BANK OF BARODA-It has affected the total turnover of our Bank. current a/c.SHRI CHINAI COLLEGE OF COMM.  SBI BANK-It depends upon the area in which the branch is situated. 1.  SBI BANK-No effect. we face competition. advertising.  BANK OF BARODA-Since retail banking form the major part of our banking system our entire turnover depends upon the sales of retail banking products.  SBI BANK-Actually we use various strategies among which some are advertisement.

”  BANK OF BARODA-We have 24 hours customer care services. Customer can complain us any time. What are your future plans?  ICICI BANK-To strengthen our position in market also to concentrate more towards customer.BBI .”  BANK OF BARODA-We want to increase Retail Banking Products for the upcoming years. RETAIL BANKING IN INDIA  SBI BANK-“Our bank follows the rules based on RBI and thus the charges charged on the products and services are less as compared to private banks.Y. 1. & ECO.SHRI CHINAI COLLEGE OF COMM. 1. 1800112211 or 080-26599990 and tell the personal details to the bank and then bank will stop the payment.  BANK OF BARODA-Because our Customers sales are increasing day by day. expand the projects and so on.  SBI BANK-“Obviously to expand the business and increase the number of new customers.  SBI BANK-“Firstly customer should inform us on our customer care toll free no. 51 T. If suppose our credit card or debit card is lost then what we should do?  ICICI BANK-The bank will block the card and get the new card as per the demand of the customers.

micro-planning. Banks now need to use retail as a growth trigger. customization. technological up gradation. home / electronic / mobile banking. marketing. prudent pricing.SHRI CHINAI COLLEGE OF COMM. In bracing for tomorrow.Y. cost reduction and cross selling. innovation and business process reengineering. a paradigm shift in bank financing through innovative products and mechanisms involving constant up gradation and revalidation of the banks’ internal systems and processes is called for.BBI . 52 T. RETAIL BANKING IN INDIA CONCLUSION There is a need of constant innovation in retail banking. & ECO. This requires product development and differentiation.

BBI . Retail Banking forms the major parts in functioning of every bank. STATE BANK OF INDIA AND BANK OF BARODA where I got many useful information of various Retail Banking products. the challenges are equally daunting. Retail Banking products covers almost major turnover of banks profit.SHRI CHINAI COLLEGE OF COMM. 53 T. RETAIL BANKING IN INDIA While retail banking offers phenomenal opportunities for growth.Y. & ECO. How far the retail banking is able to lead growth of the banking industry in future would depend upon the capacity building of the banks to meet the challenges and make use of the opportunities profitably. However. the kind of technology used and the efficiency of operations would provide the much-needed competitive edge for success in retail banking business. For detail explanation and for practical knowledge I had visited ICICIBANK.

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