Retail banking in India

When a Dinosaur fin every(prenominal)y decides to get moving, it c all overs the primer at a very high speed. This is similar to what is fortuity to the course of banking sedulousness in India. For decades, the banks in India guide focus on earning voluminous money from corporate clients. However, things have radically changed. Banks be inundated with excess liquidity; interest grade and inflation atomic number 18 moving southwards. Corporates do not lift out from banks in a big way due to a variety of reasons desire economic s natural depressiondown, infrastructural constraints etc. Under this scenario banks are forced to weigh into the retail segment for lending and thereof the spotlight has instantaneously shifted to the retail sector. Banks across the country are tripping over themselves to enter new segments- car loanwords, consumer loans, lodgement finance, educational loans, deferred payment cards etc. The big bounty for banks came in the physical body of t he Securitization Bill, which gave banks and institutions muscle to recover braggart(a) debts. Retail banking is the new mantra for all the banks. Retail banking scenario Retail banking includes a comprehensive range of financial products viz. bond products, residential mortgage loans, recognise cards, auto finance, personal loan, consumer invariable loans, loan against equity shares, loan for Initial Public Offers (IPOs), account cards, flower payment services, mutual funds, investment advisory services.

These products generate an fortune for banks to diversify the asset portfolio with high profitability and comparatively low NPAs. The categorization of retail banking services is shown in figure1. now the or so proactive ! banks have entered the retail banking segment and have place it as a principal growth driver. They are slowly gaining market share in the retail space. For several(prenominal) years banks viewed consumer loans with skepticism. commercialised loans dominated the banks portfolio as they generated high remuneration yields with low credit risk. Consumer... If you want to get a plenteous essay, order it on our website: OrderEssay.net

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