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Introduction

The banking sector has under gone turbulent changes in the past few years. The financial sector reforms have brought in the entry of new private sector and foreign banks in the country. The conventional banking as outlined above has given way for professional and high-tech banking. There has been a paradigm shift from the monopolies of public sector banks to competitive banking. Public sector banks can no longer remain complacent with their conventional products and services. With walk in business virtually being ruled out, banks are now scouting for quality consumers both for building their resources and assets

There were times when the corporate clientele occupied the centre stage and the retail ones were pushed to the back seat. The slow down of the economy, sluggish industrial growth and slump in agricultural activities have pushed the commercial banks to look to the retail customers.

Retail banking has both pros and cons. In a situation like today, the bankers have very little option, but to chant the “Retail Mantra”

RETAIL BANKING IN INDIA

Retail credit outstanding as on March 22, 2003, amounted to Rs 1,60,000 crore. According to one estimate, the retail segment is expected to grow at 30-40% in the coming years.
Major Players: State Bank of India, HDFC Bank, UTI Bank, IDBI Bank and ICICI Bank
The ratio of retail credit to net credit in the global level is around 5%. In India, it is interesting to note that this ratio is over 10% as on March 31, 2002 (Source: RBI, Annual report). With the economic reforms set in motion, the country is already rated as a major hub for economic development. Increase in per capita, change in lifestyle and growing urbanization has made the Indian population rise from oblivion and resurges in a modern era. Traditionally against incurring a debt, the policy of save and spend is gradually giving way to spend and save concept.