Banks focus on SME and WM

[amullatti]

Pvt and MNC banks are now, in the downturn, focussing on two areas: SME lending and Wealth Management. Retail lending, a large hiring focus from about 2004, is currently a bad word. If you look at ICICI Bank, Yes Bank, etc. they have launched business units focussing on SME lending. After having to knock endlessly on bank doors for service, SMEs will now be bewildered by all the attention
Further, Wealth Management is being seen as a high growth, good margin area which of course, is a new offering in India. Yes Bank especially has high focus in this area. So those of you looking to join the banking industry this year, these are the hot areas - prepare accordingly!

[kartik]

I assume the effect will only stay until recession bottoms out. The only reason for focusing on sme's is that they are the only ones making money given the amount of flexibility they enjoy. A SME can afford to cut cost and maintain equilibrium with demand and supply. Mass production is no more a competitive advantage and customization is the king.

The ball game will take a u-turn to retail lending as soon as there are some signs of recovery in the world markets and that doesn't look too far from now.