Retail Banking in Indiaa

8/6/2019 Retail Banking in Indiaa

1/19

RETAIL BANKING IN INDIA


2/19

RETAIL BANKING is a typical mass-market

banking where individual customers use local

branches of larger commercial banks .


3/19

SAVINGS AND CURRENT ACCOUNTS

PERSONAL LOANS

MORTGAGES

DEBIT & CREDIT CARDS

CORE BANKING

NEFT/RTGS

DEMAT ACCOUNTS

ATM CENTRES


4/19

RAPID ADVANCES IN TECHNOLOGY

EVOLVINGMACROECONOMIC ENVT.

FINANCIALMARKET REFORMS

MICROLEVEL DEMAND AND SUPPLY

SIDE FACTORS

HOUSING SECTOR BOOM


5/19


6/19

ADVANTAGES OF RETAIL BANKING

Strong Customer base can be formed that can

increase subsidiary business in banks

Improves lifestyle and fulfills aspirations of

people by providing affordable credit. Better profits

Establishment of sustainable business at lower

risk


7/19

DISADVANTAGES

Needs to be technologically updated.(net

banking)

Customers are attracted to other financial

services like mutual funds.Indian Mutual Fund industry witnessed a growth

of 39.88% from May 2009 to May 2010, and a

higher 215.61% growth was recorded in closed

ended schemes.

Long term loans like housing loans needs follow

up lest it can turn to NPA .


8/19

CHALLENGES

Customer retention

Know Your Customer

Regulatory Compliance

Technology


9/19

RBI REGULATIONS

Repo rate 6.75 pc

Reverse repo rate 5.75 pc

1 Basis point = 0.01 pc

CRR = 6 pc

SLR= 25 pc to 40 pc


10/19

COMPARATIVE STUDY OF PRIVATEAND PUBLIC SECTOR BANKS

Private sector is characterized by the speed and

the customer satisfaction index in terms of

service .

Public Sector banks in India are known for thetrust they have built in the minds of people of

being supported by the govt.


11/19

There is a lack of marketing with the public

sector compared to the private sector who bank

highly on their attractive segmented marketing

strategies.

The outsourcing done in private banks help them

to run their banks faster and efficiently and

concentrate more on maximizing profits than

their counterparts in the public sector banks.


12/19

The organization structure and the subsequent

decision making power rests in the hands of few

in public sector banks unlike in private sector

banks who are known for their fast decision

making.

The lengthy procedures and the requirement of

proof documents makes loan acquiring a longer

process than in private sector banks where the

managers can bank on the goodwill of thecustomer.


13/19

However there are hidden charges associated in

banking with private sector banks

Eg: ICICI charges extra for more than 2 ATM

transactions per month and also charges ifunused.

Minimum balance in private sector banks Rs

5000 and that for public sector banks Rs 500.

Penalty for a bounced cheque in Pvt sector Rs

300 whereas in Public sector bank is Rs 100.


14/19

PUBLICSECTOR

PRIVATESECTOR

PERSONAL

SELLING

NO YES

TELE CALLING NO YES

GIFTS AND

PRIZES

NO YES

PAMPHLETS NO YES

E MAIL NO YES

TEL

EVISION

YES YESNEWSPAPERS YES YES

MAGAZINES YES YES

EVENTS YES YES

COMPARISON IN PROMOTIONAL STRATEGIES


15/19

LIST OF PUBLIC SECTOR BANKS ININDIA

*Allahabad Bank

* Andhra Bank

* Bank of Baroda

* Bank of India

* Bank of

Maharastra* Canara Bank

* Central Bank of

India

* Corporation Bank

* Dena Bank

* Indian Bank

* Indian Overseas Bank

* Oriental Bank of

Commerce

* Punjab & Sind Bank

* Punjab National Bank

* Syndicate Bank

* UCO Bank

* Union Bank of India

* United Bank of India

* Vijaya Bank

* State Bank Of India


16/19

LIST OF PRIVATE SECTOR BANKS ININDIA

* Bank ofPunjab

* Bank of Rajasthan

* Catholic SyrianBank

* Centurion Bank

* City Union Bank

* Dhanalakshmi Bank

*Development Credit

Bank

* Federal Bank*HDFC Bank

* ICICI Bank

* IDBI Bank

* IndusInd Bank

* ING Vysya Bank

* Jammu & KashmirBank

* Karnataka Bank

* Karur Vysya Bank

*L

axmi Vilas Bank* South Indian Bank

* United Western

Bank

* UTI Bank


17/19

37%

18%

13%

11%

8%

6%4% 3% H

P LI

S I

I I I

HDF

H

P IVATE

AXIS

PNB

BANK F

BARODA

MARKETSHARE


18/19

QUERIES

???

THANK

YOU.!!!


19/19

Retail Banking in Indiaa

Documents

Transcript of Retail Banking in Indiaa