SIBM, Manipal

Induction Program for

Marketing Officers
January 17-22, 2011

Retail Banking & Corporate

Banking Strategies – 22nd
January 2011
Prof Chowdari Prasad,
TAPMI, Manipal
 RBI : T n P of Banking in India
’10
Item (Rs in
March Crores)
March % %
2009 2010 Variation Variation
in 2008- in 2009-10
09
Housing Loans 2,63,23 3,15,86 4.1 20.0
5 2
Consumer Durable 5,431 3,032 13.1 -44.2
Loans
Credit Card 29,941 21,565 9.1 -28.0
Receivables
Auto Loans 83,915 78,346 -4.6 -6.6
Other Personal 2,11,29 2,03,94 6.9 -3.5
Loans
4 7
Total Retail Loans 5,93,81 6,22,75 4.0 4.9
6 2
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% Share of Retail (21.3) (19.0)
 Banking Today
• Agricultural Banking
• Branch Banking
• Business Banking
• Cooperative Banking
• Convenience Banking
• Core Banking Solutions
• Corporate Banking
• Developmental Banking
• E-Banking
• Green Banking
• Innovative Banking
• International Banking
• Internet Banking
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• Investment Banking
• Islamic Banking
• Knowledge Banking
• Mobile Banking
• Narrow Banking
• Overseas Banking
• Personal Banking
• Priority Banking
• Retail Banking
• Relationship Banking
• Rural Banking
• Universal Banking
• Virtual Banking
3
 Focus aspects of Commercial
Banking
BANK’S BUSINESS

LOANS & MISC. SERVICES

Core MIS & ATMs
Banking (CBS) Intranet POS Terminals
and Cash
dispenser
Electronic
Banking Card
Corporate Management
Network
Any Branch Document
Banking Management

Risk Resource
GNI SI AR

CRM
Management Management

BANK’S BUSINESS
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 Market / Customer
Segmentation
• Agriculturalists / Rural Customers
• Personal Banking / Retail Banking Customers :
High Net-worth Individuals
• Commercial & Institutional / Corporate Banking
• Micro, Small & Medium Scale Enterprises
• NRI / International Banking customers
• Government Departments – State & Central
• Others

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 Retail Banking
• Savings Accounts • Home Loans
• Current accounts • Personal Loans
• Fixed Deposits • Loans against
• Recurring Deposits Shares
• Demat Accounts • Gold Loans
• Any time, Anywhere • Car /Vehicle Loans
Bkg • Educational Loans
• SMS Banking • Credit / Debit Card
• Phone Banking • Mutual Funds
• ATM Banking • Insurance
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 Other retail products…
• Consumer Durable Loan
• Desh Videsh Yatra loan
• Personal Computers Ln
• Loans to Defence Personnel
• Professional Loan
• Loans to Pensioners (Reverse
Mortgages)
• Traders Loans
• Loans for Subscription
to Public Issues / IPO
• Home Improvement
Loans
• Loans against Rent
Receivables
• Festival Loan
• Mixie Deposit Scheme
(Bank of Maharashtra0

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 Meaning of Retail Banking ?
• The term ‘Retail Banking’ refers to a host of financial
products such as retail deposit schemes, retail loans,
credit cards, debit cards, insurance products, mutual
funds, depository services including demat facilities and
a host of other services offered by Banks and Financial
Institutions, catering to the needs of the individual
customers in an integrated manner. (Dr T S
Padmanabhan - BF - October 2004)

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 Reasons for growth
of
Retail Banking in
India
1. Introduction of Technology
2. Increased competition among Banks
3. Opening of New Generation of Private Banks
4. Inviting of more Foreign Banks after WTO
5. Focus on Productivity and Profitability
6. Deregulation of Interest Rates
7. Absence of Directed Lending

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 Reasons for Retail Banking
……
8.Drive to bring down Non Performing Assets
9.Tilt towards consumer and life style spending
10.Innovation of new products and services
11.Implementation of Pru-Norms, ALM and RM
12.Closure / Re-locating of Loss-making branches
13.VRS of surplus staff – and Sales orientation
14.Corporates sourcing funds from non-Banking

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 Reasons for Retail Banking
……
15. Revival of Mutual Fund Market
16. Revitalising of Stock Market
17. Increase in Life Expectancy o/a health care
18. Increasing contribution to GDP from Services
19. Change in Govt policy of FDI in Banking
20. Thrust on Infrastructure Development by GOI
21. Opening up of Insurance Sector

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 Influencing Factors

MARKET TRAINED
SEGMENTA EMPLOYEES
TION
RETAIL
BANKING

CUSTOMER PRODUCT
FOCUS TECHNOLOGY
INNOVATION

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 Factors for investment
• Availability of Funds
• Rate of Return, Yield
• Degree of Risk and Cover
• Level of Inflation
• Capital Appreciation
• Liquidity and Marketability
• Tax Advantages
• Frequency of Return

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 Facilitators for Personal
Finance
• Agents of LIC, GIC, etc
• Chartered Accountants
• Investment Advisors
• Post Office Agents
• Share Brokers
• Franchisees, Direct Selling Agents, etc
• Personal Financial Advisors

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Investor Guidance

• Banks and their Personal Banking Cells

• RBI and SEBI Notifications
• Advertisements of MFs and Insurance Cos.,
• (Bangalore) Stock Exchange Monthly meets
• (Bombay) Stock Exch Investor Service Cell
• NSE “Know your Facts” in Hindustan Times (Ref : Ads
on Jan 13, 14, 16 and 17, 2003)

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 Types of Savings Instruments
• SB, RD, FD, Foreign Cy Domestic a/cs
• Insurance Policies – Life, Non-Life, Mediclaim
• NSC, PPF, EPF, CPF, PLI, etc
• Gold, Silver, Jewellery, etc
• Land, Building, Flat, Real Estate, etc
• Shares, Debentures, Flexi Bonds, etc
• Company Deposits, FCD, PCDs, NCDs, etc
• Chit Funds, Plantation Schemes, Resorts, etc

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 Corporates
• Sole Proprietors / Individuals in Business
• Partnership Firms / Limited Liability Partnership
• Private Limited Companies
• Public Limited / Limited Liability Companies
• Government Corporations
• Trusts, Cooperative Societies, Clubs,
Associations
• Others…..

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 Corporate Banking
• Project Finance
• Film Finance
• Infrastructure Finance
• Working Capital Finance
• Corporate Finance
• Trade Finance
• Bill Finance
• Hire Purchase, Leasing, etc
• Issue of Guarantees / Letters of Credit :
Non Fund based
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 Any Questions please?

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 Thanks for your attention!
• My contact details:-
• Prof Chowdari Prasad
• Professor & Dean (Plg & Dev)
• TAPMI, Manipal
• Email: chowdarip@tapmi.edu.in or gmail.com;
• Telephone: 0820-2701045 (Direct) or 2701000
• Mobiles: 9242124642 or 9482549472
• Search : google.com; scribd.com; or my blog!

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