PRESENTED BY UTKARSH PANDEY

When services are offered to individuals as their personal requirements, it is called Retail Banking. Retail Banking should encompass all institutional who provide a range of banking services-money transmition,deposit and credit service and some form of financial advice. Retail Banking consists of large volumes of low value transactions. Retail Banking refers to the mobilization of deposit

Most of the customers visiting branches 2-3 times a month. Very much satisfied with the services. 24% are not satisfied with the minimum balance required to be maintained in their account. ATMS are most preferred virtual banking technique by customers. At ATMS preferred enquiry is balance and cash withdrawal. Internet is giving ground. Customers using telephone having opt for four types of functions - Check account balance - Cheque book request - Check credit card balance

CORE SERVICES

FACILITATING SUPPORTING

Loan Product *Current a/c *Delivery time period Consumer Loans *Interest rate optionPersonal loans *Saving Banking Fixed/Floating Housing loans a/c *Pre payment facility Education Loans *Time Deposit *Counseling a/c *Legal services for documentation *ECS for payment of Installment Insurance Product C/A *Additional Insurance S/B for family members Life T/B *Counseling on post General Safety vaults retirement savings

1) Saving Bank accounts 2) Fixed Deposit schemes 3) Current Accounts 4) Corporate Salary Accounts 5) Automated Teller Machines 6) Internet Banking Services 7) De-mat Services 8) Inter Branch Banking 9) 24- hour Loan Banking 10)Bill Pay 11)Safe Deposit Lockers 12)Debit Cards, Credit Cards and Charge Cards 13)Easy Loan

13.) Free Investment Advisory Service 14.) Banking through Mobile Phone 15.) Free Home Services 16.) Bankasurance 17.) Kid e Bank

Resource Side 1) Deposit stable 2) insensitive and less bargaining for additional interest 3) Such deposit are loan cost funds 4) Strong customer base 5) Retail increases the subsidiaries business Assets side 1) Better yield and improved bottom line 2) Good avenue for funds deployment 3) Consumers loans presumed to the lover risk ,less NPA 4) Helps economic revival through increase in production 5) Innovative product development 6) Improve life style of people through cheap

Bank can formulate the following strategies in order to achieve success in the retail banking segment Adoption of advanced and latest technology Skilled man power in all branches and offices Balanced and sustained growth in deposits and advances Strategic cost management

Market research and market intelligence in order to formulate competitive and innovative products Customer relationship management Universal banking/ financial supermarkets More delivery channel Service quality with human touch

Installment credit -Clean demand Housing loans -Future Rentals Home Financing , House Educational Loans -Regular, General.Serving Personal Consumption -Executive ,Rural Loans Credit Card/Revolving Pensioners,VehicleLoan Credit Overdraft/Open Credit -Executive,Rural

Griha Sewa, Beauty Parlor, Boutiques, Tailor Shops Day to day loans, Timber merchants and Saw mills Earnest money scheme, Bon Voyage scheme for financing travel and tour, Defense Personal Loan,C NG

Differ from commercial loans No comprehensive analytical format applies In commercial loans, financial papers , etc are available on which credit decision is taken Consumer loans are peculiar, bank cannot guage the creditworthiness of the borrower Credit analysis and credit scoring techniques

CREDIT ANALYSIS/SCORING TECHNIQUES Credit Analysis includes 6cs namely character, capital, capacity, condition, collateral, compliance Credit Scoring covers certain steps are as followsJudgmental as well as credit scoring procedure Through score bank states the borrower in terms of risk Historical data on the performance of previous loan is analyzed good/bad weighted average of borrowing

Intensive competition Banks may compromise on quality of credit. Banks have to target specific customer base on individual behavior, needs and value. Customer data based stored in the bank would be handy. International trends shows that large losses can be related to retail loans portfolio. There is need to tread cautiously and manage risks proactively. Through portfolio of retail loans is better diversified than corporate loans a systematic risk arising out of macroeconomics shock could still have a large negative impact

Risk includes following Incorrect product structuring Inadequate loan documents Deficiencies in credit appraisal Inadequate risk pricing Inadequately defined lending limits

Knowing The Customer b) Easier said than practiced c) Branch data warehousing d) Customer preferences, spending patterns Technology Issues g) Huge investment in technology h) New delivery channels, ATMs, credit cards etc.

Product Innovations b) New products may not become successful c) Product should create value not amusement d) Can not sell the product on shelf Pricing Of The Product g) Banking sector witnessing price war h) Transparency in pricing i) Minimum amount due, total amount due, processing charges not advertised in credit cards, so these are hidden charges

HRD Issues b) Motivating frontline staff, project them as sales managers rather than as clerk c) Changing the image of the bank from transaction provider to solution provider Low Cost And No Cost Deposits f) Banks are in need of more s/b a/c and current a/c so that their cost of liability is less

More Services through ATMS Smart Cards E-Cheques Wealth Management Services