1 RETAIL BANKING

A PROJECT REPORT ON
RETAIL BANKING

BACHELOR OF COMMERCE
BANKING & INSURANCE
SEMESTER V

Submitted

In Partial Fulfillment of the requirements

For the Award of the Degree of
Bachelor of Commerce Banking & Insurance

By
HARPREET SINGH JAGGI
ROLL NO. 17

G.N.KHALSA COLLEGE OF ARTS, SCIENCE &

COMMERCE,
MATUNGA, MUMBAI 400019
 2 RETAIL BANKING

C E R T I F I C A T E

This is to certify that Mr. HARPREET SINGH JAGGI of

B.Com Banking & Insurance Semester V (2008-09) has
successfully completed the project on RETAIL BANKING
Under the guidance of SIR ALLAN DSOUZA .

Course Coordinator Principal

Project Guide/ Internal Examiner

External Examiner
 3 RETAIL BANKING

DECLARATION

I, HARPREET SINGH JAGGI, the student of B.Com

Banking & Insurance Semester V (2008-09) hereby
declare that I have completed this project on RETAIL
BANKING Submitted is true & original to the best of my
knowledge.

Students Signature

HARPREET SINGH JAGGI

ROLL.NO 17
 4 RETAIL BANKING

Acknowledgement

On the Event of completion of my project Retail Banking.

I take the opportunity to express my deep sense of gratitude
towards all those people without whose guidance, inspiration
and timely help, this project would have never seen the light
of day.

Any accomplishment requires the effort of many people and

this project is not different. I find great pleasure in
expressing my deepest sense of gratitude towards my Project
guide Prof. Allan Dsouza whose guidance and inspiration
right from the conceptualization to the finishing stages
proved to be very essential and valuable in the completion of
the project.
 5 RETAIL BANKING

CONTENTS

SR.NO TOPIC PAGE NO

1. INTRODUCTION 7
2 WHAT IS RETAIL BANKING? 8
3 ANALYSIS OF RETAIL BANKING 9
STRENGTH 9
WEAKNESS 11
OPPORTUNITIES 13
THREATS 14
4. RETAIL BANKING IN INDIA 16
5. ADVANTAGES OF RETAIL BANKING 18
6. PRESENT SENARIO 19
7. WHAT ARE VARIOUS RETAIL BANKING 20
SERVICES?
8. VARIOUS PRODUCT OF RETAIL 22
BANKING
Home Loans 22
Auto Loans 27
Two wheeler & consumer durable loan 30
Personal/Unsecured Loans 32
Educational loan 34
Plastic money 37

9. RETAIL LENDING 42
10. ROLE OF IT IN RETAIL BANKING 43
11. MARKETING STRATEGIES 46
12. CRM IN RETAIL BANKING 48
13. CONCLUSION 49
14. BIBLIOGRAPHY 50
 6 RETAIL BANKING

INTRODUCTION
We dont want satisfied customerswe 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.

Retail banking is that part of a bank that offers products and services primarily to
individual customers, professional, self-employed individuals or small businesses. The
 7 RETAIL BANKING

focus is on creating products and services that meet the needs of the target customers and
are profitable for the bank as well.

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.

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. This would help you advice your customer
in a more informed manner besides making you a more informed consumer.

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 As.

WHAT IS 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.
 8 RETAIL BANKING

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 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:

Retail Banking Services:-

Banking services provided to individual members of the public as opposed to those

provided to businesses and institutions.

ANALYSIS OF RETAIL BANKING

STRENGTH:-
1) Emerging as a new growth driver:
For several years banks viewed consumer loan with skepticism. Commercial
loans denominated the loan portfolio as they generated high net yield with low
credit risk. Consumer loans on the other hand involved smaller amount, large staff
to handle account and high default rates. Even regulators across the glob have not
encouraged retail banking until now till very recently. However , over past few
 9 RETAIL BANKING

years, fierce competition among the lowered the spread and profitability an
commercial loan with deregulation and increase in consumer loan rate, the risk
adjusted return in retail sector have exceed the return on consumer loan.

2) Provides diversified asset portfolio:

Retail banking includes comprehensive range of financial product and services
i.e. deposit product, auto loan, car loan, home loan, loan against equity shares,
mortgage loan, payment of bills, debit card, credit card, etc. These product
provide an opportunity for banks to diversify the asset portfolio with higher profit
and relatively lower NPA.

3) 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. Retail banking provide all such product and
services(home loan, car loan, personal loan, etc) to its customer which are
required by them to maintain change in there life style in short it helps in
fulfilling aspiration of people through affordable credit.

4) CRM tool:
The individual customer is deity of bank in retail banking segment. All product
and services are designed to satisfy need and wants of its customer. As customer
in retail banking belong to different economic, cultural, educational, and social
background there demand is also varied. It is acceptance of the banking product
and satisfaction of customer that yield profit in this segment. Hence customer
Service and Quality implementation through use of CRM tools will help banks
Success in this competitive world of retail banking.

5) Innovative product development :

 10 RETAIL BANKING

The scope for development in financial services is unlimited. In retail banking

ball is in the court of bankers where they approach the customer finds out there
financial need and problem, designs the product and services, market them and
finally sells them to satisfy its customer.

6) Economies of scale:
Retail banking enables banks to utilize existing capacities and reaching wider
population of customer. Banks can get the benefits of information and transaction.
In process of extending variety of services, banks are acquiring enormous amount
of customer information .if this information is systematically recorded , banks can
efficiently utilize this information in order to explore new segment and to cross
sell new services.

WEAKNESS:-
1) Avoids corporate sector :
Retail banking avoids corporate sector totally which is the backbone of Indian
economy. Main reason put forth or this is decline in corporate borrowing.
However bank can take certain step to manage there corporate clients such as
lower arte credit, higher amount of loan etc. Managing corporate client is more
easier 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.
 11 RETAIL BANKING

2) 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. All this increases the cost and
time required to introduce the product in the market which can reduce or make the
product out dated immediately on its arrival.

3) Changes in technology:
Future of retail banking lies in the hand of IT. Various It solution used by banks
such as E-banking, phone banking, ATM leverage the retail banking product and
service offered by banks. But this has weekend the segment some how. 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 customers confidence on bank and bank may land up
in loosing its customer.

4) Reduces the profitability:

It is claimed that retail banking increases overall profitability of the bank but in
reality this is not the case because managing wide range of product and service
requires high quality technology , large number of staff and all this requires high
capital investment which reduces banks profitability.

5) Co-ordination among various department:

Success of retail banking is not the result of one department but is result of
various departments together. If there is lack of co-ordination among various
department of the bank then however strong and effective the may be the product
 12 RETAIL BANKING

it will fail. Suppose if the front office is successful in attracting the customer but
back office is not able to execute the delivery of product or service on time then
bank may land up loosing the customer although its CRM was effective.

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 .

2) Rise in per capita income:

The rise of the Indian middle class is an important contributory factor in this
segment. The percentage of middle to high-income Indian households is expected
 13 RETAIL BANKING

to continue rising. The younger population not only wields increasing purchasing
power, but as far as acquiring personal debt is concerned, they are perhaps more
comfortable than previous generations. Improving consumer purchasing power,
coupled with more liberal attitudes toward personal debt, is contributing to India's
retail banking segment.

3) Economic growth:
Retail banking has immense opportunities in a growing economy like India. In the
BRIC Report India is stated as an economic superpower. According to A. T.
Kearney, a global management-consulting firm, recently identified India as the
'second most attractive retail destination' of 30 emergent markets. Hence retail
banking has high opportunities in India.

THREATS:
1) 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, loans on credit cards, auto loans, educational loans etc. on easy
terms without much scrutiny this has brought with in an increase in the number
of cases of default in loan repayment thus increasing the banks NPAs.

2) Issue of customers dignity:

 14 RETAIL BANKING

Banks have been adopting carrot and stick policy by renegotiating loan terms
where the default is genuine and handing over recovery to third parties where
default is willful. Most of the time, the third parties or external agents are not
trained to handle the loan repayment process. Hence, they restore to strong arms
tactics with defaulting customers. Many cases of harassment and invasion of
privacy have been reported by the affected parties. Such instances may hamper
the image and corporate vision of the bank in near future.

3) 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, informing them about new products and services. This may cause
inconvenience to busy customers. It is also obligation on part of the banks not to
share the private information from the records of the customers with outside
agencies like market research groups and other advertisers.

4) IT:
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. Banks
are the victims of unscrupulous elements who have in many instance hacked
banks website and stolen credit card number, pass word and other confidential
information relating to customer.

NEED FOR RETAIL BANKING

(The Ultimate Service Provider)

Until now banks were relying on financing, production based activities. Retail
finance was not favored by Indian banks, But they have to tune to it now with the demand
for loans from industrial sector is coming downing the past because of the economic
slowdown. As a result banks have become selective in there lending activities. Further
changing demographics, a rapidly growing ,middle-class, rise in disposable income
 15 RETAIL BANKING

changing life style and increasing ability of people to take credit risk are providing banks
with an opportunity to shift there lending operation to retail finance. Hence bankers have
been increasingly shifting to retail to increase profitability and reduce delinquency rates.
Customer shifting, cost pressure and increasing competition are some of the other reasons

Retailing is now favored because of the better returns lesser asset quality
problem and low NPA. Further it provides many opportunities for credit expansion. It
helps banks in risk diversification and is important for low-cost resources mobilization by
banks.
For Banks, retail segment is the principal growth driver as they are slowly
gaining market share in the retail space. Foreign banks are securitizing vehicle loans to
raise off-balance sheet resources and to reduce overall cost of funding. For example,
Bank of Muscat is taking over auto loans and personal loans from other banks signaling a
softer interest rate regime for consumer finance and giving indication to the intensifying
competition in business.

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop window
for all his/her banking requirements. The products are backed by world-class service and
delivered to the customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.
.
RETAIL BANKING IN INDIA

The Indian players are bullish on the Retail business and this is not totally
unfounded. There are two main reasons behind this. Firstly, it is now undeniable that the
face of the Indian consumer is changing. This is reflected in a change in the urban
household income pattern. The direct fallout of such a change will be the consumption
patterns and hence the banking habits of Indians, which will now be skewed towards
Retail products. At the same time, India compares pretty poorly with the other economies
 16 RETAIL BANKING

of the world that are now becoming comparable in terms of spending patterns with the
opening up of our economy. For instance, while the total outstanding Retail loans in
Taiwan is around 41% of GDP, the figure in India stands at less than 5%. The comparison
with the West is even more staggering. Another comparison that is natural when
comparing Retail sectors is the use of credit cards. Here also, the potential lies in the fact
that of all the consumer expenditure in India in 2001, less than 1% was through plastic,
the corresponding US figure standing at 18%.

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 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 group.
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 the banking
sector.
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),
 17 RETAIL BANKING

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.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed keeping
in mind needs of customers who seek distinct financial solutions, information and advice
on various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans for
Two-wheelers. It is also a leading provider of Depository Participant (DP) services for
retail customers, providing customers the facility to hold their investments in electronic
form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Master debit card as well. The
Bank launched its credit card business in late 2001. By March 2005, the bank had a total
card base (debit and credit cards) of 4.2 million cards. The Bank is also one of the leading
players in the merchant acquiring business with over 42,000 Point-of-sale (POS)
terminals for debit / credit cards acceptance at merchant establishments. The Bank is well
positioned as a leader in various net based B2C opportunities including a wide range of
internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

ADVANTAGES OF RETAIL BANKING

Retail Banking has inherent advantages outweighing certain disadvantages.
RESOURCES SIDE:
Retail deposit are stable and constitute core deposit
They are interest insensitive and less bargaining for additional interest
They constitute the low cost for banks
Effective CRM with the retail customer builds a strong customer base.
Retail banking increases the subsidiary business of a bank.
 18 RETAIL BANKING

ASSETS SIDE:
Retail banking results in better yield and improve bottom line of a bank.
Retail segment is a good avenue for funds deployment.
The consumer loan are presumed to be of lower risk and NPA perception.
Help economic revival of the nation through increased production activities.
Improves lifestyle and fulfills aspiration of people through affordable credit.
Innovative product development.
Retail segment involves minimum marketing efforts in a demand driven economy.

PRESENT SENARIO
There has been a considerable growth in the retail-banking sector in India, which
makes up for about 1/5th of the overall bank credit. Typically, the retail banking industry
encompasses the services such as credit cards, Housing loans, Education loans, Auto
loan, etc
Retail banking has brought in a drastic makeover in the overall banking scenario
in India. The exceptional improvement in the banking system in India is a result of strong
initiatives taken up by both the government and private companies
A recent market research report named, Indian Retail Banking Sector Analysis (2006)
 19 RETAIL BANKING

published by RNCOS provides an exclusive tour to the entire retail-banking industry of

India. As per the report, Mainstream banking and retail banking have become one and
the same thing for the past several years now. Approximately, 22% of the total
outstanding advances were derived from the retail portfolios of the banks in India till
March 2004.
The contribution of retail banking to the overall banking sector has been
outstanding. Growing at a rate of 122%, the retail-banking sector of India managed to
reach a worth of $67 billion in the year 2005, as per experts at RNCOS. The retail
banking sector in India should reach a worth of $310 billion by the year 2010, anticipate
the experts. Profiles of key players along with the strategies and plans adopted by them
for the growth of the industry are also talked about in it. Besides discussing the present
scenario of the financial system in India the report offers a reliable prediction of the
market in the years to come.
The ratio of retail credit to net credit at the global level is around 5%. In India, it
is interesting to note that this ratio is over 10% as on March31, 2002 (Source : RBI,
Annual Report ). With the economy reforms set in motion , the country is already rated as
a major hub for economic development. Increase in per capita income , change in life
style and growing urbanization have made the Indian population rise from oblivion and
resurge in modern era. The policy of and spent is gradually giving way to spend and save
concept.

WHAT ARE VARIOUS RETAIL BANKING

SERVICES?
Retail banking includes comprehensive range of financial product and services i.e.
deposit product, auto loan, car loan, home loan, loan against equity shares, mortgage
loan, payment of bills, debit card, credit card, etc. These product provide an opportunity
for banks to diversify the asset portfolio with higher profit and relatively lower NPA.
Today the most proactive banks have entered the retail banking segment and have
identified it as a principal growth driver.
 20 RETAIL BANKING

Categorization of Retail Bank services

Core services Facilitating services Supporting services

Payment services Cash Making payment at door
Foreign currency step
requirements Internet banking
Traveller cheque Telephone banking
DD/bankers cheque
IT
EFT

Current account ATM card Credit card

and saving account Standing instruction Debit card
from customer for Service to senior citizen
making payments Telephone banking
Inter branch transfer of Internet banking
fund Conversion of excess
Safety vault balance to time deposit
Loan product: Current account Delivery of loan at
Consumer loan Saving account promised time
Housing loan Time deposit account Interest loan option
Personal loan Flexibility
Education loan in paying
loan
Counseling on Real estate
market
Legal services for
documentation
ECS for payment of loan
installment
Insurance product: Current account Additional insurance
 21 RETAIL BANKING

Life insurance Saving account facility for family

Pension scheme Time deposit members.
account Counseling on post
Safety vaults retirement saving

VARIOUS PRODUCT OF RETAIL BANKING

1) Home Loans:

Types of Home Loans

There are a variety of home loans available:
 22 RETAIL BANKING

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.

Home construction loan: This is a loan given for the construction of a new
home.

Home extension loan: his is given for expanding or extending an existing home
such as adding a room or floor etc.

Home conversion loan: This is loan given to those who have financed the
present home with loan & wish to purchase another home for which extra funds
are necessary. The home conversion loan allows the borrower to transfer the
existing loan to the new home loan, which includes the extra amount required,
thus doing away with the need to pre-pay the previous loan.

Land Purchase Loans: This is loan which is provided to purchase land either for
construction of a home or for investment in land.

Bridge Loan: These are loans given to persons who are looking to sell their
existing home & purchase another. The bridge loan helps finance the purchase of
the new home until the old one is sold.
 23 RETAIL BANKING

Balance transfer loan: This is loan which allows the borrower to repay an
existing loan & avail of another loan at lower rates of interest.

Refinance loans: This is a loan that is given in order to repay debts incurred from
un-organized sourced such as relatives, friends etc. which may have been taken to
purchase the home.

Stamp Duty Loan: This is a loan sanctioned to pay the stamp duty amount
necessary to be paid on the purchase of a home.

Loan to NRIs: These are similar to loans given to domestic borrowers but are
specifically ear-marked loans to NRIs as the repayment is usually from foreign
currency sources.

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, age, qualification,
number of dependents, spouses income, assets, liabilities, stability & continuity of
occupation & savings history.

Documentations requirements pre-approval

At the time of application for a home loan, the housing finance company would
ask for the following common documents:

In case the borrower is a salaried employee, proof of income i.e. salary

certificate/slips & TDS certificate (From 16) of the borrower & co-applicant, if
any.
 24 RETAIL BANKING

In case the borrower is self-employed; details of business track record & a copy of
the audited financial statement of the last two years of the borrower & co-
applicant, if any.

Copy of bank account statement for the last 6 months.

Copy of the latest credit card statement.

Passport size photograph.

Signature verification from the borrowers banker.

Proof of residence.

Upon receipt of all the documents along with the duly completed application
form, the housing finance company receives the details & communicate its decision
regarding approval of he loan application.

Documentation requirements post-approval/ disbursal stage:

After a loan application has been approved & at the time that the borrower requires
the funds for payment, the following documents are required to be furnished:
1. Allotment letter
2. Photocopies of title deeds
3. Agreement to sell
4. Non-encumbrance certificate
 25 RETAIL BANKING

5. Approved plans & clearance certificates along with estimates if the property is
self-constructed.

Repayment Period
Repayment options range generally from 5 to 15 years. A few housing finance
companies also offer a 20-year repayment period, usually at a higher rate of interest.
NRIs can avail of a housing loan for a maximum period of 7 years. Repayment is usually
taken in Equated Monthly Installments (EMI) by way of post-dated cheques. This fixed
money that is repaid to the housing finance company every month comprises of both
interest & principal repayment.

Collateral Securities
Housing finance companies usually take securities as collateral in addition to the
mortgage of the property being purchased. These collateral securities could be guarantees
from one or two persons (guarantors), assignment of life insurance policies, shares, units
of Unit Trust of India, bank deposits & other securities. These securities are taken so as to
ensure that the loan is repaid in the event that the borrowers normal source of income is
no longer available.
Security for the loan is a first mortgage of the property to be financed, normally
by way of deposit of title deeds. Liquidation of the mortgaged property is usually the last
resort of the housing finance company for repayment of the loan.

Interest Rate Calculation

In India, the interest on home loans is usually calculated on Monthly Reducing or
yearly reducing balance.
A. Monthly Reducing Balance: The principal on which the interest is paid reduces
every month as the EMI is paid.
B. Annual Reducing Balance: The principal is reduced at the end of the year. This
method of calculating interest is more expensive as the borrower continues to pay
 26 RETAIL BANKING

interest on a certain of the principal, which has already been paid back to the
housing finance company by way of the EMI.

The effective interest rate is approximately 0.7% higher than the monthly
reducing balance method.

Tax Benefits
Tax benefits are available under:
1. Exemption under section 88 of IT act (Rebate) for repayment of principle up to Rs.
10,000.

2. Deduction under section 24 of IT act for interest payment on housing loans up to Rs.
150,000 (in respect of self-occupied house property acquired or constructed with capital
borrowed on or after 1.4.99, & acquisition or construction is completed within 3 years
from the end of the financial year in which the capital borrowed). Tax benefit will defer
in case of the property has been leased out.

2) Auto Loans:
 27 RETAIL BANKING

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.

Used car loan: 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.

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.Eligibility
terms For Auto Loans

Typically most financiers have similar eligibility criteria for auto loans. The age
of the borrower should be between 2-58 years. Annual income should be above Rs.
60,000. Additional information is taken with the loan application form.

The size of the loan amount sanctioned depends on the cost of the vehicle, the
type of car (standard or Premium) & the percentage financing. Used cars get lower is
offered. A new car can get up to 90% financing. Used cars get lower financing.
 28 RETAIL BANKING

Depending on the model & its resale, the amount in used cars like the Maruti 800 could
go up.

Documentations Requirements Pre-Approval

In case the borrower is a salaried employee, proof income i.e. salary
certificate/slips & TDS certificate (From 16) of the borrower & co-applicant, if
any.
In case of borrower is self-employed, details of business track record & a copy of
the audited financial statements of the last 2 years of the borrower & co-applicant.
If any.
Copy of bank statements for the last 6 months.
Copy of the latest credit card statement.
Passport size photograph.
Signature verification from the borrowers bank.
Proof of residence.
Upon receipt of all the documents along with the duly completed application
form, the car finance company/bank reviews the details & communicates its decision
regarding approval of the loan application.

Documentation requirements Post approval/disbursal

Apart from the loan documentation the borrower is required to submit
photocopies of the following:
1. Registration Certificate (RC book).
2. Insurance policy.
3. Road transport tax papers.
The RC book is usually endorsed as hypothecated to the financier until full
repayment of the loan amount, when the hypothecation is cancelled. After the last
payment is made the bank issues a NOC & form 35 to cancel the hypothecation on the
car. This is submitted to the RTO for updating the RC book. The insurance company also
requires an NOC o make the necessary changes on the insurance policy.
 29 RETAIL BANKING

Repayment Period
Usually Car financing is available from 1-5 years. Some financiers offer longer
tenure loans up to 7 years. The tenure is usually dependent on the brand of car being
purchased. A super premium car such as the Mercedes would be restricted to tenure of 3
years only. As tenure increases the EMI reduces but the total interest outflow is higher.
Some financiers allow a facility for back loading of the EMI where in the EMI
payments are lower initially & increases as the borrowers income increases.

Collateral Securities
Typically there is no requirement for any additional collateral to be provided. The
RC book is endorsed for hypothecation to the financier which by itself is adequate
security for the financier.

Interest Rate Calculation

The interest is usually charged on a rate or on a reducing balance basis which
could be daily, monthly, quarterly on annually.

Fees & Charges

There are fees & charges in addition to interest rate. Processing fees, advanced
EMIs if applicable, stamp charges, registration charges & insurance have to be paid prior
to the transaction being completed.
Most financiers do not cover insurance & registration. The price of the car is taken
to be the ex-showroom price, which does not include insurance & registration charges.

Tax Benefits
Salaried employees cannot avail of tax benefits on the loan taken for purchasing a
car. 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.
 30 RETAIL BANKING

3) Two wheeler & consumer durable loan:

Two wheeler loans are given for purchase of mopeds, scooters & motor-cycles.
Consumer durable loans cover purchase of durables such as refrigerators, washing
machines, Music systems, camcorders & DVD Players.

Eligibilty Terms for Two Wheelers & consumer Durable Loans

Broadly, the eligibility criteria are:
1. Between 21 years & 60 years
2. Minimum gross monthly income of Rs.4, 500 for salaried employees.
3. Minimum annual income of about Rs. 45,000 for self-employed individuals.
The loan amount sanctioned range from Rs. 7.500 to Rs. 90000 for two wheeler
loans. Consumer durable loans are usually of a smaller amount & vary as per the nature
of the durable being purchased.
Most of the financiers require a down payment to be made by the borrower
towards the purchase of the two-wheeler or consumer durable.

Documentation Requirements
In case the borrower is a salaried employee, proof on income that is salary
certificate/slips & TDS certificate (From 16) of the borrower & co-applicant, if
any. However, the stringency of his requirement is waived in most cases.
In case the borrower is self-employed, details of business track record & a copy of
the audited financial statements of the last 2 years of the borrower & co-applicant,
if any. These documents are not mandatory in most cases.
Signature verification from the borrowers banker/Proof of identity.
Proof of residence.
Repayment Period
Repayment of two wheeler loans are usually over 6 to 36 months, whilst those of
consumer durable loans are between 12 to 36 months.
 31 RETAIL BANKING

Collateral Securities
Usually no collateral security is required in two wheeler & consumer durable
loans.

Interest Rate Calculation

Interest is charged at a flat rate & range between 7.5% & 15.25% for two wheeler
loans. The rates on consumer durable loans are varied depending on the seasonality of the
product being sold.

Fees & Charges

Most two-wheeler financiers charge a flat processing fee of 2% or Rs. 500
whichever is higher.
The additional charges on consumer durable financing are similar to that of the
two-wheeler charges, the difference being that there are slabs of loan amounts of
approximately of up to Rs. 10,000 between Rs. 10,000 & Rs. 20,000 & above Rs. 20,000
& fees are based on these amounts.

Tax Benefits
Salaried employees cannot avail of tax benefits on the loan taken for purchasing a
two wheeler. However, self employed persons avail of tax benefits on depreciation as
well as on the interest paid on the amount borrowed for the purchase of the vehicle of
durable if it is for professional purposes.
 32 RETAIL BANKING

4) Personal/Unsecured Loans:

Personal loan is an all-purpose loan for which the end use can be to meet any
personal requirements of the borrower.

Eligibility Terms For Personal/Unsecured Loans

Typically, the take home salary has to be over Rs. 8,000. The borrower should be
over 21 years of age & less than 58 years old.
Loan eligibility is determined primarily by the borrowers capacity to repay i.e.
his current earnings are the primary determinant. The bank usually tries to improve that
the EMI does not exceed 30-40% of the net take home salary. The borrowers place of
residence & work place & employment track record are given higher priority than in
secured loans.
The maximum amount of loan sanctioned is usually in the range of about normal
household expenses & outflows such as any EMI on other loan etc. & regular outflows.
Most banks lend anywhere between Rs.15, 000 to Rs.10 lakhs towards personal loans.

Documentations Requirements Pre-Approval

In case the borrower is a salaried employee; proof of income i.e. salary
certificate/slips & TDS certificate (Form 16) of the borrower & co-applicant, if
any.
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.
Copy of bank account statements for the last 6 months.
Copy of the latest credit card statement.
Passport size photograph.
Signature verification from the borrowers banker.
Proof of residence.
 33 RETAIL BANKING

Upon receipt of all the documents along with the duly completed application
form, the bank reviews the details & communicates its decision regarding approval of the
loan application.

Documentation Requirements Post approval/Disbursal

Post approval, the bank collects post-dated cheques for the full tenure of the loan
prior to disbursal along with the collateral securities, if any.

Repayment Period
Personal loans are usually short tenure loans up to maximum of three years. In
rare cases some banks offer a 5-year repayment option. There is usually a 6 months lock
in period in either case.

Collateral Securities
Unsecured loans are by definition unsecured. They are designed for people who
dont want to undergo the hassles of providing security or hypothecation or are willing to
pay the higher price of such loans. No collateral or guarantee is usually taken by the
bank. However, in case of software professionals, some banks are ask for a guarantor or a
co-applicant.

Interest Rate Calculation

Interest rates currently vary between 15 to 30%. Longer tenure loans are usually
priced higher. As also loans to persons with a higher risk profile.

Tax Benefits
Tax benefit on personal loans is not available to salaried employees. However,
self employed persons may avail of tax benefits on the interest amount paid if the loan is
for professional purposes.
 34 RETAIL BANKING

5) Educational loan:

Educational loan usually cover a variety of courses. It pays for the cost of tuition
fees, hostel fess, mess fees & examination fees. The cost of books, equipment & other
instruments required by the student are also covered. 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. The
primary requirement is that the student should have got admission to the course that he is
seeking the loan for. Most banks also specify an age criteria such as 16-26 years etc. The
past academic track record of the student would also be considered.
The maximum loan amount varies by individual banks as well as the institution
that the student would pursue his/her academics. It could be for studies abroad. The
repayment capacity of the student & in several cases, the parents &/or guardians is of
utmost concern to the bank. Usually no margin money is required for loans uptoRs.4
Lakhs. For loans in India & 15% for studies in abroad, to be borne by the applicant. The
parents income would also be considered by most banks.

Documentation Requirements Pre-Approval

The documentation requirements would depend on the specific requirements as

per the policy of the bank giving the loan. However, a confirmation of admission
by the educational institution is necessary. Other documents would include.

Copy of bank account statements for the last 6 months.

Passport size photograph.

Signature verification from the borrowers banker.

 35 RETAIL BANKING

Proof of residence.

Incase either of the borrowers parents is a salaried employee; proof of income i.e.
salary certificate/slips & TDS certificate (Form16) of he borrower & co-applicant,
if any.

Incase either of the borrowers parents is self-employed; details of business rack

record & a copy of the audited financial statements of the last 2 years of the
borrower & co-applicant.

Documents with respect of past academic track record of the student.

Airline booking details, in case of foreign university education.

Documentations Requirements Post-Approval/Disbursal

Disbursement of the educational loan is made directly to the institution to which
the student is admitted. Hostel & mess fees are also paid likewise. Airfare is directly paid
to the airlines. The student is given certain amounts to make book or
instrument/equipment purchases on a monthly or quarterly basis. Receipts for each
payment are forwarded to the bank.
When the loan amount exceeds Rs. 1 lakh, banks usually requires a Life Insurance
Policy equal to or more than the loan amount. This is the security that the bank takes to
recover the outstanding amount in case the student is unable to repay the loan amount.

Repayment Period
A holiday period is usually given for educational loan requirement before he/she
starts paying back the loan in EMIs. The holiday period ranges from 6 months to a year.
However, if the students start working immediately on completing the course, he does not
enjoy a holiday period. Repayment stars 6 months after completion of the course or on
commencement of a job, whichever is earlier.
 36 RETAIL BANKING

Collateral Securities
Some banks do not require collateral security to be furnished if the amount being
borrowed is less than Rs. 25,000. For amounts greater than that NSCs, bonds, property
mortgage etc. are taken as collateral.

Interest Rate Calculation

Interest on educational loan is charged on a simple basis during study period or up
to commencement of repayment (interest rates are as per RBI guidelines at ha time).

Fees & Charges

Fees & charges include:
1. Processing fees 2. Documentation cost
3. Pre-payment penalty 4. Penal interest for overdue amount & overdue period.

Tax Benefits
Under section 80E of the IT Act, a deduction will be allowed in respect of
repayment of loan educational purposes, subject to the following conditions.
In computing total income of an assessee being an individual, these shall be
deducted, in accordance with, & subject to, the provision of this section: any amount
from the previous year, out of his income chargeable to tax, or any approved charitable
institution for the purpose of pursuing his/her higher education such loan, provided that
the amount that may be so deducted shall not exceed Rs. 25,000.
 37 RETAIL BANKING

6) Plastic money:

A barometer of maturity of an economy with a few exceptions is the stage of

development reached by its payment systems. Cash in the form of notes and coins make
up just one form of payment system. The development in banking brought about a second
phase in payment system, through paper instruments namely cheques and credit transfers.
The requirement for greater flexibility and convenience and development of technology
has given rise to electronic payments and this is where plastic cards have been provided.
The credit card can be defined as a small plastic card that allows its holder to buy
goods and services on credit and to pay at fixed intervals through the card issuing
agencies.

Regulatory for cards

In view of this ever-increasing role of credit cards, a working group was set up for
regulatory mechanism for cards. The terms of reference of the working group were fairly
broad and the group was to look into the type of regulatory measures that are to be
introduced for plastic cards (credit, debit and smart cards) for encouraging their growth in
a safe, secure and efficient manner, as also to take care of the best customer practices and
grievances redressal mechanism for the card users. The Reserve bank has been receiving
a number of complaints regarding various undesirable practices by credit card issuing
institutions and their agents. Some of them are:

Unsolicited call to members of the public by card issuing banks/direct selling

agents pressurizing them to apply for credit card.
Communicating misleading/wrong information regarding credit cards regarding
conditions for issue, amount of service charges/waiver of fees, gifts/prizes.
Sending credit cards to persons who have not applied for them/activating unsolicited
cards without the approval of the recipient.
Charging very high interest rates/service charges.
Lack of transparency in disclosing fees/charges/penalties. Non disclosure of
detailed billing procedure.
 38 RETAIL BANKING

The working group deliberated a number of major issues relating to customer grievances
and rights:
Transparency and disclosure.
Customers rights protection and
Code of conduct.

The group recommended that the most important terms and conditions should be
highlighted and advertised and sent separately to the prospective customer. These terms
and conditions include various issues relating to.
Fees and charges.
Drawl limits.
Billing.
Default.
Termination/revocation of card membership.
Loss/theft/misuse of card and
Disclosure.
While building a regulatory oversight in this regard we need to ensure that neither
does it reduce the efficiency of the system nor does it hamper the credit card
usage.
 39 RETAIL BANKING

Type of cards issued by a Bank are:

Cash card:

Also known as an ATM card. This has been discussed in detail earlier. A special
plastic card is used for getting currency notes from a machine. Known as automated teller
machine.

Debit Cards:

Debit cards allow for direct withdrawal of funds from a customers bank account.
The spending limit is determined by the users bank upon available balance in the
account of user. It is a special plastic card connected with electromagnetic identification
hat one can use to pay for things purchased directly from his bank account. Under the
system, card holders account are immediately debited against purchase or services
through the computer network. Hence, under debit card the cardholder must have
adequate balance in his account. This system is intended to replace cheque system of
payment. Debit card & smart card issuance by banks in India should be approved by the
respective banks board as well as by RBI. These can be issued only for customer
maintaining satisfactory accounts & for a minimum period of six months.
 40 RETAIL BANKING

Cheque cards:

It is a card given to customer by the bank that he must show when he writes a
cheque, which promises that the bank will pay out the money written on the cheque.
Under check card system, the card holder is given a card & a chequebook. He has to use
the cheques, while purchase is made & the traders gets guaranteed payment. The
customer does not get free credit, he has to keep sufficient balance in his account or the
bank will provide overdraft up to a specific limit, of course on interest payment basis.

Charge Card:

A small usually plastic card provided by an organization with which one may buy
goods from various shops, etc. The full amount owed must then be paid on demand. In
credit cards, the card holders get credit or loan for payment of periodical bills when
sufficient balance is available in their accounts. In a charge card such credit facility is not
available. 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.
 41 RETAIL BANKING

Smart Cards:
With the use of credit cards, we may avail of credit facility on our purchase of
goods/services from approved sales outlets. A smart card however, enables the cardholder
to perform various other banking functions apart from credit purchases. For examples,
with smart cards, we can draw cash from ATMs, we can verify entries in our accounts,
seek information pertaining to our accounts, etc. This is possible because the card has an
integrated circuit with microprocessor chip embedded in the card for identification
purposes. The card can also perform calculations & maintain records.

Convenience Users:
Credit card customers are typically extended an unsecured credit at least up to 30
days. Beyond the period, the bank charges interest on outstanding bills. However, some
cardholders may prefer to pay off their full dues before the free credit period. Such
cardholders are called convenience users.
 42 RETAIL BANKING

RETAIL LENDING

Everyone dreams of living a comfortable life and does all one can to make this
dream come true. Today this has become much easier, as with higher levels of income
and multiple earning members in the family, it is easy to avail loans to fulfill aspirations
Buying a home, car or any small household item such as TV or a refrigerator using
money borrowed from a bank or a finance company has become the way of life today.
This has created a big business opportunity for finance companies.

They are offering loans to all types of customers for all types of assets. Retail
lending has thus become one of the key business verticals for finance companies. This
necessitates banks to follow processes for conducting business profitably. There are two
main areas in lending. Loan Origination and Loan Servicing. The process of validating
customers, convincing them that the finance company is the right source for their loan
requirement and finally offering the loan with terms and conditions that make business
sense to the finance company is Loan Origination and once the loan is disbursed, the
process of managing the repayments from customers and responding to the customer
requests for pre payments, early settlement, rescheduling, etc. is Loan Servicing.

Lending has become very competitive as customers are in the mode of shopping
for loans. Finance companies have to continuously offer new financial products to
customers and thus two of the important aspects of the business are time-to-market and
flexibility. But as number of customers increase, the risk of increase in the number of
defaulters prevails. Thus finance companies have to do the balancing act. On one hand
they have to acquire more business by lending to more customers and on the other hand
they have to lend to select customers so that the rate of delinquency is under control.
 43 RETAIL BANKING

ROLE OF IT IN RETAIL BANKING

The growth in retail banking has been facilities by the growth in banking
technology and automation in banking process that enables in extension of reach and
rationalization of cost. ATM has emerged as an alternative channel which has facilitate
low cost transaction . It also has the advantage of reducing the branch traffic and enable
bank with small network to offset traditional disadvantage by increasing there reach and
spread.

Indian retail banks have been extensively using Information and Communication
technologies for their operations like central accounting, customer information
management, transaction-processing and importantly, for numerous customer-facing
solutions. Besides there are supporting or ancillary solutions such as security and
compliance in addition to the "middleware" that banks use to link their customer-facing
applications to their core systems. The major business focus of the IT savvy retail banks
is in providing products and services to the customers through a diversified base of
channels - bank branches, ATMs, e-banking, e-branch, mobile-banking, SMS-banking,
etc. In India, the business growth is driving technology spending in the retail banking
segment. Indian retail banks are looking to move beyond their branch-centric distribution
models. Extending ATMs networks, advancing online and phone banking, and
rationalizing branch infrastructure are all on the cards.

Technology provides Retail Banks with various delivery channels:-

1) Automated Teller Machines(ATM):

The trend in banking has evolved from a cash economy to cheque economy
and thereon to the plastic card economy. One of the channels of banking services
delivery is vide the ATM or the Automated Teller Machines, whose traditional and
primary use is to dispense cash upon insertion of a plastic card and its unique PIN or
Personal Identification Number.
 44 RETAIL BANKING

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. The card is a plastic card with a magnetic strip with the account number of
the individual. When the card is inserted into the ATM, the machines sensing
equipment identifies the account holder and asks for his/her identification code
number. This is referred to, usually, as the PIN and is issued by the banks computers.
This number is unknown to the banks staff and is secret and unique to that individual.
When the person uses the ATM and it asks for the PIN, the cardholder identifies
himself/herself by pressing the relevant number buttons on the machine. The machine
then verifies the account number on the ATM card along with the secret code number
stored in the ATM. When the matches found, the ATM pops a menu screen, which
allows the user to transact almost all types of bank transactions.

1) Tele banking: -

Tele banking or phone banking service offered by banks to enable customers

to access their accounts for information or transactions. Similar to the ATM PIN, a
telephone PIN (T-PIN) is provided to each account holder. The customer can call the
exclusive tele-banking numbers and provide the details to identify himself/herself to
the automated voice. Typically, the bank account number and the T-PIN are asked
for. Upon the respective numbers matching the computerized systems the customer is
given access to his account to query or transact on his account. Though cash
withdrawal and deposit are not enabled through this service many banks offer cash
delivery or collection service to certain classes of customers.
 45 RETAIL BANKING

2) Internet Banking:

One of the channels of service delivery to a banking customer is through the

Internet. The access to account information as well as transaction is offered through the
worldwide network of computers on the Internet. Every bank has special firewalls & its
own security measures to protect the accounts from non-authentic use from unauthorized
users. Data are encoded using algorithms with a 128-bit key or, in some cases, with a
1,024-bit encryption.
Each account holder is provided a PIN similar to that of the ATM or Phone
banking PIN. The access to the account is allowed upon a match of the account details &
PIN entered on the computer system. A higher level of security may be reached by an
electronic finger-print. The finger print is taken before & after the transaction. Then both
versions are compared. In case of any difference, the transaction is aborted.
Account querying as well as transaction is possible on the Internet banking
platform. The accounting is instantaneous & funds transfers can be effected immediately.
Though cash transaction are not possible at present, the next phase of evolution in
Internet banking will allow those as well.
 46 RETAIL BANKING

MARKETING STRATEGIES
(Innovative Retail Banking)
The competition is intense in retail banking as almost all the public, private
and foreign banks are eyeing a share a on retail market pie . To meet the competition
retail banking product and services have to become more competitive, and they are being
perceived as commodities. To leverage the competitive environment , they are reducing
the interest rate to increase the customer base
According to Hemant Kaul, Senior vice- President, Retail Banking ,UTI Bank,
banks are formulating there marketing strategies around the customer life cycle because
they have different credit requirement at different stage of there lives Initially customers
look for personal loan after some time they look to buy a scooter or a car. Around the age
of 30-35 years , they look for home loans . so banks are not only developing strong
product but also investing in developing infrastructure and delivery points.
For expanding the market, banks ate developing both market and product they are
venturing into new locations and adding depth to the existing geography. They are
increasing there penetration in existing location as well. They are also increasing there
presence in Tier-2 and Tier-3 because these have immense potential.
Banks are tying up with small and organized retailers (malls) to co-brand with
credit card companies to fuel retail growth. As disposable income is increasing it gives
retail opportunities to sell more. Banks are providing retail loans to Small and Medium
Entrepreneurs (SME) Sector. They are also extending collateralized loans and working
capital finance to suppliers and vendors to large corporate customers as a part of the
supply chain financing initiative. These banks are tying up with manufacturers, builders,
and vehicle suppliers to facilitate quicker supply of loan In such a scenario IT has become
an important tool facilitating net banking, tele banking, mobile banking and ATM, In
retail financing they have been concentrating on mortgages as this lending is less risky
even though it involves significantly larger than average loan.
 47 RETAIL BANKING

To be on safe side banks are targeting the upwardly urban salaried class despite
knowing that it is Big city Indian youth who are most profitable segment. However
banks are also spreading there operations to include the self employed and semi-urban
rich
Retail Banking covers both asset-side and liabilities-side products. The
liabilities side includes ATM, E-banking, and Tele-banking where the bank has to make
significant investment in infrastructure and technology. The asset side of bank has various
type of loans provided by banks

Bank can devise suitable strategies of segmentation, delivery channels and

pricing by understanding the frame work of retail banking. Banking service can be
understood in three categories from the point of view of retail banking. Core services,
facilitating services are needed and supporting services are needed.
 48 RETAIL BANKING

CRM IN RETAIL BANKING

Banks are commercial institutions whose chief activity is to borrow money from
those entities that has surplus cash and lend money to those entities which are deficient in
cash, at different rate of establishment for carrying out business with money. Under retail
banking activity, banks have to deal with a large number of individual accounts whose
account size is very small when compare to the account size of corporate entities.

The individual customer is the presiding deity of banks in the field of retail
banking. All the products and services are designed and formed to satisfy the financial
needs of the customers. The customers belong to different economic, cultural and social
background. Hence the products and services offered are also varied. Through out the
world it has been felt that main focus of the banks in the retail sector should be customer
service. It is the acceptance by the customers of the banking products and his satisfaction
with the services that brings out profit for the banks in this sector. Unlike corporate
banking where corporate customers have a well defined financial policy and projects, in
retail banking the onus lies on the banks to approach the customers, find out there
financial needs and problems, design the products and services, market them and finally
sell them to the satisfaction of the customer.
 49 RETAIL BANKING

CONCLUSION

There is a need of constant innovation in retail banking. In bracing for tomorrow,

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. Banks now need to use retail as a growth trigger. This requires
product development and differentiation, innovation and business process reengineering,
micro-planning, marketing, prudent pricing, customization, technological up gradation,
home / electronic / mobile banking, cost reduction and cross selling.

While retail banking offers phenomenal opportunities for growth, the challenges
are equally daunting. 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. Furthermore, in all these customers interest is of
paramount importance. The banking sector in India is demonstrating this and I do hope
they would continue to chart in this traded path.
 50 RETAIL BANKING

BIBLIOGRAPHY

BOOKS:
Commercial Banking (sep- 2003), ICFAI
(Page no. 34-37 and 39)
Banking and financial services- Renu sobti.

MAGZINES:
Professional banker (FEB-2006), ICFAI
(Page no. 53-55)
Indian Banking special(2004), ICFAI
(Page no. 72, 74)

WEBSITE:
www.google.com
(Retail banking)
(Banking in India)
www. Go2.com (Retail Banking in India)
www.icfaipress.org
ww.indiainfolinne.com
www.wikipedia.com
www.fotoshop.com