2. Retail Banking
In pre-liberalisation era, banks mainly focused on
providing credit to industries and business houses
With the liberalisation of Indian economy, bank saw
a emerging opportunities in terms of young
population, increased incomes, purchasing power
and aspiration for better life style, quality products
and services
This gave birth to ‘Retail Banking’……..
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3. Contd….
Retail Banking is defined as doing business with
individuals by segmenting the individuals as a
separate business market
In technical language, Retail Banking can be defined
as dealing with individuals both on liabilities and
assets side
Key features of Retail Banking:
- Multiple Products
- Multiple Channels
- Multiple Customer Groups 3
5. Contd….
Retail Banking Opportunities
Contribution of retail loan to GDP stands at 6% as
compared to 15% in China and 24% in Thailand
Housing Finance itself will require an estimated
3,61,000 Cr to meet the shortfall of 25 million
houses
Opportunities lies in consumer finance and wealth
management
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6. Wholesale Banking
Wholesale Banking refers to conducting banking
business with industrial and business entities. This
includes, corporates, trading houses, multinationals
and domestic companies etc.
Key products under Wholesale Banking can be
classified as:
- Fund-based services
- Non-fund-based services
- Value-added services and
- Internet Banking services 6
7. Contd….
Fund-based services
- Term lending, Short-term Finance
- Working Capital Finance, Bill discounting
- Structured Finance, Export Credit
Non-Fund-based services
- Bank guarantee, Letter of credit
- Collection of bills and documents
Value-added Services
- Cash management services,
- Channel financing, vendor financing,
- Real Time Gross Settlement, CSA etc…. 7
8. Contd….
Wholesale Banking Opportunities
Commercial lending and small businesses are
expected to drive Wholesale banking
Opportunities also lie in Investment banking and
structured finance
Wholesale banking is highly profitable for top
performing banks contributing 35-40% to PBT
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