1. Retail Banking Retail banking refers to the efforts of the bankers to reach the customers on both fronts of the balance sheet. Retail banking refers to the efforts of the bankers to reach the customers on both fronts of the balance sheet. Under the liabilities side, we've deposit. Under the liabilities side, we've deposit. In the assets side, we've credit scheme. In the assets side, we've credit scheme.

2. Scope of Retail Banking in India Our GDP is growing @7-8% Our GDP is growing @7-8% %age of Retail finance to GDP is 7% in India %age of Retail finance to GDP is 7% in India In other countries like S.Korea 55%; Taiwan52%;Malaysia33%; Thailand 18% In other countries like S.Korea 55%; Taiwan52%;Malaysia33%; Thailand 18% 70% of our population is below 35 yrs of age 70% of our population is below 35 yrs of age Many of them are earning higher salaries and have high propency to consume rather than saving it. Many of them are earning higher salaries and have high propency to consume rather than saving it.

3. Why Retail Banking Retail Banking is hotter than Vindaloo. Retail Banking is hotter than Vindaloo. Frontrunner in today’s world of banking. Frontrunner in today’s world of banking. All com. Banks relying heavily on retail banking to expand their business/boost profitability. All com. Banks relying heavily on retail banking to expand their business/boost profitability. It reduces operation cost. It reduces operation cost. ATM expanded significantly over last 3 years (June’11-36314, June’08-27088) ATM expanded significantly over last 3 years (June’11-36314, June’08-27088)

4. Factors for growth of Retail Banking Growing Indian Economy. Growing Indian Economy. Declining interest rate. Declining interest rate. Simpler appraisal criteria. Simpler appraisal criteria.

5. Why Retail Finance Why Retail Finance B2B Bank Consumer Industrialist Trader Farmer B2C Bank Consumer

6. Retail Lending It is growing fast. It is growing fast. Covers large no of people. Covers large no of people. Consumption segments…housing, education, personal, consumer etc. Consumption segments…housing, education, personal, consumer etc. Loan values generally covers 20000/- to 100 lac. Loan values generally covers 20000/- to 100 lac. Duration generally from 5 to 7 years. Duration generally from 5 to 7 years. Credit card segment is a growing area. Credit card segment is a growing area.

7. Factors for growth of Retail Credit Lower risk in retail lending. Lower risk in retail lending. Lower NPA in retail credit portfolio. Lower NPA in retail credit portfolio. Technological support. Technological support. Changing demographic pattern ( changing life style ). 70% of people below 35 years of age. Changing demographic pattern ( changing life style ). 70% of people below 35 years of age. Liberalization & financial reforms. Liberalization & financial reforms.

8. Increase in purchasing power of consumers Consumer graphics Technological transformations Rise of the growing middle class Retention of customers Improving Lifestyle Changing mind set to borrow lend Driverse of Retail Banking

9. INDIAN PERSPECTIVE – A GLANCE 2010-2011

10. Features of Retail Finance It is for individual consumption. It is for individual consumption. It is for moderate needs ( Minimum Rs 10000) It is for moderate needs ( Minimum Rs 10000) They are usually Term Loans They are usually Term Loans Rate of interest usually range between 9-13%. Rate of interest usually range between 9-13%. They are tailor made as per the requirement of the people. They are tailor made as per the requirement of the people. Hassle free delivery system Hassle free delivery system

11. Strengths of Retail Products Spread in earnings is good. Spread in earnings is good. Impairment is low. Impairment is low. Risk is spread over number of persons instead of concentrating on one. Risk is spread over number of persons instead of concentrating on one. Easy to deliver. Easy to deliver.

12. Various Retail Lending Schemes Car finance Car finance Educational loan Educational loan Housing finance Housing finance Personal loan Personal loan Consumer loan Consumer loan Overdraft facility in SB accounts Overdraft facility in SB accounts Loan against property Loan against property Reverse mortgage Reverse mortgage Money Consumer Bank

13.  Customer focus:  Customer driven strategies  KYC: Understanding the needs and preferences of customers  Building relationships  Constant Innovation as the customer base is ever changing and increasingly demanding  Changes in credit portfolio of banks  Housing loans and Auto loans are on rise  Increment in Retail assets  diversify by focussing on non urban segment as well as varied income and demographic groups  Increasing % contribution of Retail banking in GDP Future Growth

14.  Reach to rural areas  Customization  Sophisticated marketing and sales  Promoting low risk retail lending procedures  Growth through Alliances  Increasing popularity of Merchant cards  Upcoming customer base – mainly tier 3 cities Future Growth contd…

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