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4. 3. 6. 2.CONTENTS Chapters 1. 7. . Introduction Literature Review Need of the Study Scope of the Study Objectives of the Study Research Methodology Tentative Chapter Scheme Bibliography Page No. 5. 8.
followed by the auto loans segment which constitutes almost 27. or depository services. Retail banking is quite broad in nature . and mortgages. educational and other personal loans take the remaining 16%. and educational) on the assets side. the growth had come from metros and tier I cities.000crore. This requires expansion and diversification of retail banking product portfolio.8%. but comprehensive phase of restructuring since 1991. Major product segments of retail credit include housing finance. current / savings accounts on the liabilities side.2%. In the next five years. loans (e. During 2004-05 retail contributed 42% of overall credit growth.g. Housing constitutes the biggest segment of 48% of the entire retail credit. housing. In India. consumer durable loan and credit cards to name a few.36% of the Indian banking system. retail banking is expected to grow by a CAGR of 25% to touch the figure of Rs575. Retail lending constitutes just 12.INTRODUCTION The banking sector has been undergoing a complex. personal loans. investment and growth.000 crore. Hitherto. better penetration and faster service mechanism.89.. all the retail banking segments are expected to witness a tremendous growth owing to the low cost of borrowing. are the more important of the products offered by banks. Related ancillary services include credit cards. efficient. auto finance. Growing at the CAGR of 35% over last 5 years the retail asset touched Rs1. personal. Fixed. auto. both on liabilities and assets sides of the balance sheet.it refers to the dealing of commercial banks with individual customers. While the loan requirement from larger cities will continue . with a view to make it sound. While the balance retail credit is used by consumer durables at 7. changing customer attitudes towards borrowing and optimism regarding economic growth. Indian retail banking is up and kicking. Given this macroeconomic scenario. the share of retail banking will grow dramatically and it is expected that about 35% of the incremental growth in net credit will come from retail banking. and at the same time forging its links firmly with the real sector for promotion of savings.
branch. 50 million. and multiple customer groups (consumer. Today’s retail banking sector is characterized by three basic characteristics: • • • multiple products (deposits. semi-urban and rural areas. overdrafts etc. explosive growth in credit is expected to register in tier II cities. T. Internet and kiosk).2% of the total retail portfolio of the bank or the absolute limit of Rs. Retail banking activities are identified based on four criteria of orientation. It also includes other ancillary products and services like credit cards. Retail banking products on the liability side includes all types of deposit accounts and mortgages and loans (personal. Kearney. . Retail banking exposures to one entity is limited to the extent of 0. multiple channels of distribution (call centre. demat accounts etc. investments and securities). Retail banking has immense opportunities in a growing economy like India. It includes exposures to individuals or small businesses.3% of the total loans and advances of SCBs at end-March 2009. these qualifiers imply that retail exposures should be to individuals or small businesses (whose annual turnover is limited to Rs. 0. credit cards. the Indian-English innovative curry available in umpteen numbers of restaurants of London.50 billion) and could take any form of credit like cash credit. Considering the fact that vindaloo. product criterion and low value of individual exposures.to grow. What is the nature of retail banking? In a recent book. The retail portfolio of banks accounted for around 21. it seems that retail banking is perceived to be the in-thing in today’s world of banking. Retail banking segment is a well diversified business segment. insurance. retail banking has been described as “hotter than vindaloo”. followed by auto loans. and corporate). small business. is indeed very hot and spicy. housing. granularity. educational etc) on the assets side of banks. In essence. India has been recently identified as the "second most attractive retail destination" of 30 emergent markets by A. The major component of the retail portfolio of banks is housing loans.
regulation and financial crime prevention. However. Among the smaller banks. HDFC bank and Axis bank.Most banks have a significant portion of their business contributed by retail banking activities. SBI’s retail business is also fast growing and a strategic business unit for the bank. Among these banks the reliance on their respective retail portfolio is high. Some of the key policy issues relevant to the retail banking sector are: financial inclusion. consumer protection. financial capability. Further. but as far as acquiring personal debt is concerned. SBI. Due to bundling of services and delivery channels. as many of these banks have advance portfolios that are concentrated in certain usages. responsible lending. ICICI bank is a major player in the retail banking space which has had definitive strategies in place to boost its retail portfolio. such as auto or consumer durables. The rise of the Indian middle class is an important contributory factor in this regard. which at present is in the nascent stage. PNB. Foreign banks have had a somewhat restricted retail portfolio till recently. The combination of the above factors promises substantial growth in the retail sector. The retail banking industry is likely to see a high competition scenario in the near future. which is vital for the transaction intensive retail business. the researcher through the proposed study on retail banking at Syndicate Bank intends . the areas of potential conflicts of interest tend to increase in universal banks and financial conglomerates. It has a strong focus on movement towards cheaper channels of distribution. coupled with more liberal attitudes toward personal debt. many have a visible presence especially in the auto loans business. Improving consumer purchasing power. long-term savings. and access to finance. they are fast expanding in this business segment. The largest players in retail banking in India are ICICI Bank. Among the large banks. they are perhaps more comfortable than previous generations. The percentage of middle to high income Indian households is expected to continue rising. The younger population not only wields increasing purchasing power. is contributing to India's retail banking segment.
to assess empirically and combine it with the ‘on the job’ experience. .
from personnel counter services to electronic services. is demonstrated. However. The paper analyzes past studies regarding service quality improvement in the retail banking industry. The continuing trend to a model of service quality improvement. in a service.Chaisomphol Chaoprasert in his article “LITERATURE REVIEW OF SERVICE QUALITY IMPROVEMENT IN THE RETAIL BANKING INDUSTRY” talks about the importance of ‘Service Quality Improvement’. they often intertwine with core retail banking accounts like checking and savings to allow for easier transfers and maintenance. how does a retail bank innovate? Traditional innovation literature would suggest that organizations innovate by getting new and/or improved products to market. Harker Larry W. 2.) Dr. . While some of these ancillary services are outsourced to third parties (often for regulatory reasons). Hunter Reviews about. brokerage accounts. Thus.)” Innovation in Retail Banking” by Frances X. Frei Patrick T.LITERATURE REVIEW Investopedia explains 'Retail Banking' Retail banking aims to be the one-stop shop for as many financial services as possible on behalf of retail clients. the product is the process. 1. Some retail banks have even made a push into investment services such as wealth management. Improved service quality should be adopted to maintain the core competence and this paper contributes knowledge and background for banks to apply these findings to better shape and focus their positions in the market and also to provide service quality to customers. innovation in banking lies more in process and organizational changes than in new product development in a traditional sense. private banking and retirement planning.
technological upgradation.Banking Frontiers International Conference on “Retail Banking Directions: Opportunities & Challenges”. There are various pointers towards this. 3. is attributable to the rapid advances in information technology. at the IBA . retail lending has been a spectacular innovation in the commercial banking sector in recent years. the challenges are equally daunting. In bracing for tomorrow. Across the globe. The growth of retail lending.) Keynote address by Ms Shyamala Gopinath. 28 May 2005. home / electronic / mobile banking. the evolving macroeconomic environment. The issue of retail banking is extremely important and topical. This requires product development and differentiation.This paper reviews a multi-year research effort on innovation and efficiency in retail banking. and several micro-level demand and supply side factors. especially. Housing sector is experiencing a boom in its credit. customisation. and discusses both the means by which innovation occurs along with the factors that make one institution better than another in innovation. micro-planning. Gone are the days where getting a retail loan was somewhat cumbersome. marketing. While retail banking offers phenomenal opportunities for growth. Banks now need to use retail as a growth trigger. Mumbai. prudent pricing. There is a need of constant innovation in retail banking. Deputy Governor of the Reserve Bank of India. innovation and business process reengineering. The retail loan market has decisively got transformed from a sellers’ market to a buyers’ market. Implications of these results to the study of the broader service sector will be drawn as well. India too experienced a surge in retail banking. financial market reform. cost reduction and cross-selling. How far the retail banking is able to lead growth . All these emphasize the momentum that retail banking is experiencing in the Indian economy in recent years. in emerging economies. a paradigm shift in bank financing through innovative products and mechanisms involving constant upgradation and revalidation of the banks’ internal systems and processes is called for. Retail loan is estimated to have accounted for nearly one-fifth of all bank credit.
The banking sector in India is demonstrating this and I do hope they would continue to chart in this traded path.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.) “Customer relationship management in retail banking” from eds. CRM Services Retail banks are facing greater challenges than ever before in executing their customer management strategies. In looking for ways to drive growth. escalating attacks on customer information. in all these customers’ interest is of paramount importance. the kind of technology used and the efficiency of operations would provide the much needed competitive edge for success in retail banking business. Furthermore. banks need to evaluate their customer management strategy. Do they currently have a CRM solution that is capable of delivering? Consistent and cost-effective customer service? Customer-aligned products and services? Enhanced customer loyalty and long-term value? . Intensifying competition. Financial Services Industry EDS Business Transformation Outsourcing. However. rising customer expectations and capitalizing on new market opportunities are at the top of every bank executive’s agenda. 4.com Author Pat Russ Global Practice Leader. proliferating customer contact channels.
Experts have also projected that India would emerge as the third largest banking hub in the world by 2040. the reason is not far to see. .” Looking at the above mentioned reviews. After all. service wise or any other form.5. Several banks that were not very active in retail banking are now eyeing this sector. and to what extent is it going to tap this upcoming sector whether it is technology wise. In my report “ A study on retail banking in Syndicate Bank”. margins in retail banking are higher than corporate banking and the growth too is faster. Rajeshwari Adappa Thakur writes about the buoyant sector He also has a highlight on the ‘Retail Banking’ sector as a new buzzword in the Indian banking sector. He says” If retail banking is a buzzword in India today.)”Banking on Growth” by Rajeshwari Adappa Thakur With the Indian economy growing at a brisk clip of nine-plus percent per annum. there is growing global and domestic interest in the nation’s banking industry. there is a clear understanding on the main aspects of ‘retail banking’ and also the importance of this sector. I would try to use these studies to understand whether or not Syndicate bank has taken consideration of such aspects in retail banking.
Increasing use of modern technology has further enhanced reach and accessibility. mortgages. The solution lies to market demands and challenges lies in innovation of new offering with minimum dependence on branches ' a multi-channel bank and to eliminate the disadvantage of an inadequate branch network. Higher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. High cost structure rendering mass-market servicing is prohibitively expensive. and so” The Retail Banking environment today is changing fast .NEED OF THE STUDY “Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. The market today gives us a challenge to provide multiple and innovative contemporary services to the customer through a consolidated window as so to ensure that the bank’s customer gets “Uniformity and Consistency” of service delivery across time and at every touch point across all channels. Services offered include: savings and checking accounts.The changing customer demographics demands to create a differentiated application based on scalable technology. credit cards. debit cards. improved service and banking convenience. personal loans. The pace of innovation is accelerating and security threat has become prime of all electronic transactions. Present day tech-savvy bankers are now more looking at reduction in their operating costs by adopting scalable and secure technology thereby reducing the response time to their customers so as to improve their client base and economies of scale. . Generation of leads to cross sell and creating additional revenues with outmost customer satisfaction has become focal point worldwide for the success of a Bank.
SCOPE OF THE STUDY The study will be limited to retail banking products of Syndicate bank and specific branch of Syndicate Bank. The scope of the study will be limited to: Evaluation of the level of awareness about various products of Syndicate Bank he satisfactory levels of existing customers The location advantages to customer .
To undertake a study by comparing the performance of Syndicate Bank based on: Business Model Business Performance under various retail segments Top of mind awareness of consumers for banks offering various retail products. . To study and analyze the performance of Syndicate Bank in the retail banking segment banks and enlist the roadmap for their future growth.OBJECTIVES OF THE STUDY The proposed research study is to be centered on fulfilling the following objectives: To study the Indian Banking scenario and emerging trends and history of public and private sector banks with special emphasis on retail banking in India. To analyze the consumer behavior with expectations towards various retail banking products of Syndicate Bank and designing the expansion plan basis on consumer / business requirement. Factors influencing their purchase decision.
RESEARCH METHODOLOGY An exploratory research will be conducted in order the study the consumer perception about retail products of Syndicate Bank. b) Books/Journals/Articles on Retail banking. analysed and interpreted. The information collected through above methods will be tabulated. Questionnaire i) ii) Sample Size Sample composition Banking Customers Structured Interview i) ii) Sample Size Sample composition Managers/Employees at Syndicate Bank Secondary Data I propose to get sampling data from: a) In house studies done at Syndicate Bank. 10 10 100 100 . I propose to use of two research instruments i. Sources for Data Collection: Primary Data For obtaining the primary data for my project. Questionnaire and Structured Interview.e.
TENTATIVE CHAPTER SCHEME Preface Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Chapter-7 Chapter-8 Chapter-9 Bibliography Annexures Introduction Objective and Scope Theoretical perspective/organization profile Methodology Data collection Data analysis Findings of the study Recommendations Conclusion .
com (Retail banking) (Banking in India) • • • • • www.com www. ICFAI (Page no.com (Retail Banking in India) www.2011). WEBSITE: • www.Renu Sobti.com www.icfaipress. 34-37 and 39) Banking and financial services.google. Go2.org ww.wikipedia.indiainfolinne.fotoshop.com .BIBLIOGRAPHY BOOKS: • • Commercial Banking (Sep.
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