MEANING OF RETAIL Retail means sale of goods in small quantities, it is concerned with buying of goods in small quantities from

the wholesaler and selling them in small quantities to the ultimate consumers as per their requirements. The person engaged in this trade is called the retailer. He acts as a link between the wholesaler and the customers. In retail trade goods are sold to the ultimate consumers for personal use and for the use of the business in small quantities only. The retailer does not specialize in a particular line or a particular product. Rather he maintains a large variety of goods. Generally, sales are limited to a local and on a small scale. MEANING OF BANKING Banking has come to occupy a pivotal position in a nations economy. According to the modern concept, banking is a business which not only deals with borrowings, lending and remittance of funds, but also an important instrument for fostering economic growth. The Banking Regulation Act 1949, defines the term banking as the accepting for the purpose of lending or investment of deposits of money from the public or otherwise and withdraw able by cheque, draft, order or otherwise. Thus, the essentials of banking are: (1) (2) (3) (4) There should be acceptance of deposited. Deposits should be from the public. Deposits should be repayable on demand or expiry of a term or after a specified periods. The purpose of deposits should be lending or investment.

Bank is an institution which deals in money and credit. It buys money from depositors and sell to the borrowers. It is body of persons whether incorporated or not who carry on the business of banking. A bank may defined as a corporation or person which collects deposits from the public, repayable on demand and which supplies and facilitates all kinds of exchanges.

RETAIL BANKING Retail banking means mobilizing deposit form individuals and providing loan facilities to them in the form of home loans, auto loans, credit cards, etc, is becoming popular. This used to be considered by the banks as a tough proposition because of the volume of operations involved. But during the last couple of years or so, banks seem to have realized that the only sustainable way to increase deposits is to look at small and middle class consumer retail deposit and not the price sensitive corporate depositors. With financial sector reforms gathering momentum, the banking system is facing increasing companies from non-banks and the capital market. More and more companies are tapping the capital market directly for finance. This is one of the main reasons for the banks to focus vigourously on the much ignored retail deposits. Another reason is the current liquidity the margins are 1 to 2 percent above the prime rate; in retail market they are 3to4 percent.

It is reported that Indian retail market has the potential to be second only to the USA. National Readership Survey 5puts Indian households with monthly of over Rs. 5000 at 4.5 million. According to the survey, the category of households with annual income of Rs. 2 lakhs and above is growing at the rate of 30 per cent per annum. No winder, banks with vision and insight are trying to woo this market through a series of innovative additions to their products, services, technology and marketing methods. Fixed and unfixed Deposits, (cluster deposits which can be broken into smaller units to help meet depositors overdraft without breaking up entirely), centralised database for any branch banking (whereby the customer can access his account in any of the branches irrespective of where the account is maintained), room services (whereby the customers are visited at their residences offices to enable them to open their accounts), automatic teller machines, tele banking network, extended banking time, courier pickup for cheques and documents, etc are some of the privileges extended to the customers by the banks in are eagerness to cultivate the retail market. In short, in the bold new world of retail banking the customer is crowned as king. RETAIL BANKING-A COOL OASIS To bankers struggling through the shifting sands of corporate credit, retail banking looks like a cool oasis. Corporate Credit, retail banking looks like a cool oasis. Corporate customers rely less on commercial banks every day as other fund raising avenues present themselves. As this disintermediation takes place and competition shrinks margins, retail banking has gained an irresistible allure for banks because of its apparently higher margins and potential fir growth. With their large branch networks, banks have secured sizeable deposits-23 percent of GDP. On the assets side, however, retail advances account for a mere seven per cent of total lending. The penetration of products like car loans or credit cards is very low. With very few focused multiline banks, non-banks are often significant players in retail lending, as HDFC is in house loans. Yet, many non-banks lack the minimum size to make the necessary investments and address the challenges of retail banking. A large number of banks and non-banks have launched or relaunched retail products and are attempting to grow their share of the personal financial services market. Even the term lending institutions have decided that they need to go retail to raise funds. Many organization like ICICI are betting that a large part of their future growth will come from retail customers. Retail banking is much more than as opportunity to addressing dwindling margins. It is an imperative to preserve profits and market positions. Customers now have many more personal financial options, a growing credit culture, a willingness to switch between financial services providers, and a demand for lower interest rates. As they witness these trends, banks realize that they cannot remain passive. The new private sector banks are making inroads in the markets they serve, while competition from non-banks is growing. In respect, older institutions need to

revamp their distribution capabilities, customer management capabilities, operating culture, compensation system and operations processing. WEB IMPACT ON BANKS RETAIL REVENUES: For all those gurus whove been predicting that the net will end the business of said banks, heres a shocker. Even in the SILICON valley-driven USA, Internet is not expected to have a major impact in banks retail revenues. The reason: the absence of a convenient alternative at present to using cash. According to a report by moodys Investors service, at least in the intermediate term, the internet is not expected to impact large US banks core profitability or competitive position. This is despite the despite business being the simple-most important profit source for most American retail banks. The core retail banking business of deposit taking will be sheltered form web-based competitors and margin shrinkage on this business. Need for convenient access to physical locations coupled with the advantages of multiple delivery channels like branch, ATM, telephone and computers, consumers need to leave money in transactional accounts; customer inertia and the relatively limited cost savings available to consumers from net banking, are cited as the main factors supporting its view. The moodys report, however, cautions that other consumer business such as residential mortgages, auto loans and credit cards may be more vulnerable to web-based competitors. However, most US banks have thin margins or low market shares in these businesses mitigating this impact, says the report made available to the Economic Times. The rating agency is skeptical of banks ability to generate substantial incremental revenues from cross-selling financial products to existing customers via the net. Banks have to maintain a comprehensive and effective web based capability to maintain their competitive position, cautions moodys. The need for customers to take frequent physical receipts, make convenient physical receipts, make convenient physical delivery of cheques using ATMs, inhibition towards paying ATM

charges for using another banks ATM network by the consumer and time consuming, difficult and disruptive nature of switching accounts also contribute to the stickiness of retail deposits. With low bank fees for individual transactions and relatively small bank deposits, the opportunity cost in terms of interest income for customers is not material where the deposits are not large. Banks offer convenience and choice and the web-based channels of banks have reported rapid growth in the number of customers by retaining current customers. According to moodys a survey indicated that 35 per cent of Internet banking customer disconnect because they dont find it convenient. Customers prefer to use a variety of channels to conduct their banking which is why it remains to be seen whether a business model based solely on internet banking will generate adequate returns and sustain long term competition against conventional banking systems. The advent of the internet could, however have a powerful effect on banks acquisition strategies by creating uncertainty about the value of purchasing large branch networks, the study says. For some banks, however, the Internet could facilitate an increase in fee income by generating fees from Internet service arrangements like bill presentment and clearing. However, if smart cards or stored value cards or other electronic cash substitute gain popularity, alternatives could become more attractive to customers. On the other hand, banks might be able to reduce costs of servicing the retail customers by moving them over into a paperless environment. Banks could introduce various incentives to the persuade customers to forego paper statements for the basic savings account and credit card, says moodys. THE RULES HAVE CHANGED As the 1900s come to their close and we look eagerly towards the new millennium, a revolution that will change the rules and everything we have understood of the retail market, financial products and other services. Economic boundaries are disappearing, and the global village is a reality where the retail customer will have a choice in a manner we may have never imagined. Providers of retail products and services will battle for market and market share. It is battle that will be fought at different levels and the real winner will be the customer, who will benefit from

increased competition through better products, distribution, technology, pricing, and post transaction service. The quality and range of products will expand exponentially convenience of usage, customization to individual needs, and a host of other user-friendly add-ons will create a whole new frontier of applications. Companies will have to innovate and continuously upgrade their products. Anticipation, listening and responding to your customers needs, will be the buzz-words of this thrust. Distribution will be the next key benchmark of success. The customer will demand (and therefore the provider will have to respond) for greater convenience of access to the product or service and all this at the best cost of delivery. Re-defined methods, the use of technology specifically the Internet-and realigned strategies will drive this important criterion of success. Constraints of location, timing, accessibility etc will all be history. No matter how brilliant the product you have, your distribution flexibility will be the customers selection parameter. Again, quality of the product and responsive strategies for distribution will also have a link to price. Efficiencies on this front will be the next item on your report card. Through innovation in production and delivery and cost reduction strategies, the price to the customer will have to be at maximum benefit. The intelligent customer will be ruthless with any price distortions, which as a consequence of inefficiencies or market exploitation his cost benefit analysis will not allow for these variables. Would you prefer a product, which (hopefully) is never expected to need post sale service or one which offers the best after sale service if required? Clearly, the relationship with the customer starts with the transaction does not and with it. Organisation we have to give equal importance to cost sale needs of customers as the pitch made prior to the sale. Technology will perhaps be the single largest driver of this detail thrust. The entire strategy will evolve around the absolute ability of the organisation to be at the cutting as edge of technology. We will have to invest in technology far ahead of immediate needs and be able to anticipate the future direction at a pace we are perhaps not used to. Being able to keep abreast, but more importantly, being able to recognize the immense potential that technology provides at all stages in the retail chain will be of paramount importance. To leverage, exploit and link technology to your business will be the greatest challenge of the new millennium and I am convinced that the retail war will be won and lost on this one aspect, purely because technology increasingly we influence on the entire chain in a retail business cycle. Above all these, I would list attitude towards customer as the single point basis on determining the winner of the race. Attitude to the customer will influence all the areas we have discussed

and will ensure excellence in each one of them. It is an intangible, it is not prescribed in a manual nor is it a quantifiable item in the balance sheet, but an organizations attitude to the customer will be the basis determinant of success for any retail operation. There are interesting and challenging times ahead the future promises a lot but will also make extraordinary demands. The customer will be the most important aspect of your business and ultimately the winner of the retail war. RISK INVOLVED IN RETAIL BUSINESS There are of course, considerable risks in retail banking. They are: (a) (b) (c) (d) (e) (f) (g) (h) Databases on credit history are large. Collection mechanisms are poor. Investments in technology are large. Operating efficiency level needs to be very high. Unlike corporate banking, retail banking involves a large number of small accounts. Demands on processing capabilities are higher. Retail segment is not something you can get into overnight. The right systems and the right architecture needs to be put in place first.

Retail bank is a bank that works with consumers, otherwise known as 'retail customers'. Retail banks provide basic banking services to the general public, including:

Checking and savings accounts CDs Safe deposit boxes Mortgages and second mortgages Auto loans Unsecured and revolving loans such as credit cards Retail banks are the banks you most often see in cities on crowded intersections, the ones you probably use for your personal checking account. In addition to helping consumers, retail banks often serve businesses as well - so they can also serve as commercial banks. A commercial bank is a bank that works with businesses. Commercial banks handle banking needs for large and small businesses, including:

Basic accounts such as savings and checking Lending money for real and capital purchases Lines of credit Letters of credit

Lockbox services Payment and transaction processing Foreign exchange Commercial banks often function as retail banks as well, serving individuals along with businesses. Businesses have unique needs that consumers dont have. For example, some businesses need a commercial bank that can accommodate a large volume of credit card payments and cash deposits. Lockboxes allow organization to streamline receipts. When customers and business partners write you a check, you need to get those payments into the bank so that you can use the money. Lockbox services make that process more efficient than almost any business can hope for on its own. Types of Lockbox Services There are a variety of lockbox services available:

Wholesale lockboxes Retail lockboxes Other, custom designed lockbox programs

Why Would You Use a Lockbox? The main reason to consider lockbox services is speed and efficiency. Lockbox services get money into your bank account faster than youd be able to do it yourself. Perhaps you could run to the bank every time you got a check, but you wouldnt be able to get much work done. Note that these lockboxes may be located in places where the mail is delivered several times per day. Your offices probably only receive mail once each day. If a payment just misses delivery to your location, youll have to wait one business day to get your hands on the payment. In contrast, lockboxes offer more opportunities to capture payments and make deposits to your account. Perhaps most importantly, you reduce the amount of time it takes for money to hit your accounts. You have less outstanding float money out there customer payments get deposited and become available for use as quickly as possible. Imaging and Lockboxes Some banks offer image based lockbox services. Image based services scan everything that gets sent to your lockbox so that you can view it online. You can often see images from payments received on the same day they reached the lockbox.

As you might imagine, the ability to see the actual checks and envelopes that your customers send is priceless. You can respond to customer service inquiries, and you can resolve problems much more easily. Automation By using automation, banks can make your accounts receivable easier to manage. Optical Character Recognition (OCR) programs literally read everything and store the output electronically. This allows you to slice and dice your remittance data and, scroll through lists of customer information. In addition, having computers do the tedious work means that youll have less data entry errors when the computers arent broken, of course.

RETAIL BANKING STRATERGIES Constant innovation in products, services to match the requirements of the customer segment. Quality service and quickness in delivery. Introduction of new delivery channels Tapping of unexploited potential and increasing the volume of business Detail Market research Cross selling of products Business process outsourcing Tie-up arrangements Fixed and unfixed Deposits, (cluster deposits which can be broken into smaller units to help meet depositors overdraft without breaking up entirely) Centralized database for any branch banking (whereby the customer can access his account in any of the branches) Room services (whereby the customers are visited at their residences offices to enable them to open their accounts) Automatic teller machine Tele banking network Extended banking time Courier pickup for cheques and documents Banking like Retail Store Anywhere, Any time Banking Improved processes/Bundled product offerings Faster service/Reduced TATs Customer specific products/offerings on a regular basis Focus on understanding customer needs/ preferences Segmentation/Differentiation of customers Building relationships

Beneficial for: - Industry analysts, - Bankers, - Other financial institute, - Auto loan financier, - Housing loan financier and - Private financiers in general. Content Outline: 1. EXECUTIVE SUMMARY 2. HIGHLIGHTS 3. GLOBAL RETAIL BANKING SCENARIO 4. INDIAN BANKING INDUSTRY 5. RETAIL BANKING - AN INDIAN SCENARIO 6. Housing Finance 7. Auto Finance 8. Consumer Durable Loans 9. Educational loans 10. Other Personal Loans 11. Credit Cards 12. BanCASSURANCE 13. Regulatory watch 14. Issues/Challenges to Retail Banking in India 15. THE FUTURE 16. MAJOR BANK PROFILES 17. REFERENCES

List of Charts Companies Mentioned: Andhra Bank Axis Bank Bank of Baroda Bank of India Canara Bank Centurion Bank of Punjab Central Bank of India Citibank Deutsche Bank HDFC Bank HSBC I D B I (Industrial Development Bank Of India) Indian Bank Indian Overseas Bank ICICI Bank ING Vysya Bank Jammu & Kashmir Bank Ltd Saraswat Co-Operative Bank Ltd State Bank of India Syndicate Bank Union Bank of India UCO Bank The Internet's Impact on Retail Banking By Bill Burnham

Since the Great Depression, consumers have largely chosen their banks based on how convenient a bank's branches were to their homes or offices. Well aware of this, banks spent billions of dollars building up their branch networks to secure the most convenient locations in the most attractive communities. Today, branches serve as the cornerstone of competitive advantage in the retail banking industry. It is no wonder then that the Internet has inspired a crisis of confidence in that industry. With its 24- hour access, national footprint, low barriers to entry and attractive demographics, the Internet has confronted retail banks with a series of difficult strategic questions: How soon will the Internet have an impact on retail banking? How will it change the competitive dynamics of the industry? What needs to be done to prepare for these changes? To help answer these questions, Booz-Allen & Hamilton's financial services group recently conducted a study that included the first-ever survey of banks that operate sites on the Internet. Current and Future Prospects For now, banks don't have much to worry about, the survey revealed. For example, even though 285 North American banks have opened Internet sites, only 1 percent of those sites are actually offering banking services. The majority of sites, more than 70 percent, are little more than glorified brochures, providing only general information. But this underdeveloped state won't last for long. In fact, 90 percent of the survey respondents have aggressive plans for improving the size and functionality of their Internet banking offerings. So much so that within three years, 69 percent of the banks plan to offer such advanced services as bill payments over the Internet. Based on these plans, as well as estimates of the overall growth of the Internet, the study projects that the number of bank Internet sites will explode to almost 1,500 within three years. (See Exhibit I.) Now that's something to worry about. EXHIBIT I BRANCHING OUT TO THE NET

Source: Booz-Allen & Hamilton Even more worrisome is the fact that Internet banking clearly represents a low-cost alternative to branch banking. For example, more than two-thirds of the respondents spent less than $25,000 to establish an Internet site, and 84 percent were spending less than $25,000 a year to maintain it. Even though these costs will rise as banks increase the size and functionality of their sites, they should still be well below the $1.5 million to $2 million required to set up a traditional branch and the $350,000 to $500,000 a year needed to operate it. Indeed, a simple comparison of expense ratios (total non-interest expenses/total revenues) indicates that an Internet bank potentially could be as much as 70 percent less expensive to operate than a traditional bank. (See Exhibit II.)

EXHIBIT II BANK EXPENSE RATIOS 0

Source: Booz-Allen & Hamilton Impact on the Industry The main impact of hundreds of low-cost Internet banking sites will be to "commoditize" convenience, since all Internet banks will have the same geographic reach, operating hours and service levels. This change will effectively eliminate the competitive advantage afforded by a branch network. On top of this, Internet banking consumers will be able to switch banks with much greater ease than they can today. These lower switching costs, combined with generic convenience, could result in a dramatic decrease in customer loyalty and stiff price competition. Banks' Response To avoid this fate, banks will have to build a new and sustainable source of competitive advantage. Early signs are that this new advantage will be built on two key elements: customer knowledge and decision science capabilities. Customer knowledge will form the foundation of a bank's competitive advantage due to its proprietary nature and rich cross-sell potential. Decision science capabilities, including predictive models and intelligent agents, will translate customer knowledge into customized product and service offerings that appeal directly to the needs of individual consumers. Of course, a lot remains to be seen, the most important of which is how many people will actually want to do their banking over the Internet. While that question will undoubtedly

serve as the fodder for future studies, one thing is now clear: A lot of banks will be around to greet those who show up -- and it sure won't be business as usual Retail Banking & Financial Services Solutions Impact 360 for Retail Financial Services provides solutions to improve the customer experience, workforce productivity and performance across retail financial services enterprises. In todays highly competitive financial services industry, workforce productivity is a critical performance goal. But productivity isnt just about cost cutting its about driving sales, service quality and customer satisfaction while lowering costs and retaining staff. Impact 360 for Retail Financial Services A powerful combination of bundled software and services, Impact 360 for Retail Financial Services is specially designed for optimizing and managing labor in the retail banking and financial services market. This workforce optimization solution provides an unprecedented level of visibility into the customer experience, workforce productivity and performance, and customer intelligence across retail financial services enterprises. Capture, Analyse, and Act on Information Impact 360 for Retail Financial Services provides a closed-loop system for continuous performance improvement, enabling you to:

Forecast demand and staffing requirements to meet each individual branch/store locations service level goals Automate and streamline scheduling, allowing branches to meet forecasted demand and service-level goals by deploying the right number of staff Establish a long-term resource plan that supports your customer service and revenue objectives Monitor adherence to see how closely employees follow their schedules Track, capture, and analyse screen navigation and keystrokes on employee desktops to identify navigation effectiveness and process efficiencies, as well as performance issues and opportunities Monitor employee performance and customer satisfaction by capturing customer interactions, either on demand or selectively through business rules Consolidate performance data from bank systems and applications into actionable information Measure employee performance consistently using key performance indicators (KPIs) and role-appropriate scorecards Deliver individualized training to the employee desktop, even across multiple sites

Enhance Workforce Productivity Impact 360 for Retail Financial Services combines information from different systems and areas within banking centers, customer service, and operations departments, then presents it in clear, concise scorecards that enable you to drill down quickly from what to why. You can gain unprecedented visibility into performance and workplace productivity for faster, enhanced decision-making. For example, a regional branch manager can review his or her scorecard to evaluate the sales per full-time equivalent (FTE) per day (a KPI) in the branches in the region. Seeing that a particular branch is exceeding its goal by 200 percent, the manager drills down, revealing that

one particular bank representative is outselling his colleagues threefold. The manager can then pull up specific customer sessions and the representatives usage of applications during those sessions. By analysing this information, he or she can create a best-practice eLearning lesson and disseminate it through the Lesson Management module or assign it to specific representatives who are falling behind on their sales per day. INTRODUCTION Retail banking in India has fast emerged as one of the major drivers of the overall banking industry and has witnessed enormous growth in the recent past. The Retail Banking Report encompasses extensive study & analysis of this rapidly growing sector. It primarily covers analysis of the present status, current trends, major issues & challenges in the growth of the retail banking sector. This report helps in Banks, financial institutions, MNC Banks, academicians, consultants and researchers to have a better understanding of the booming opportunities in retail banking in India. MAJOR FINDINGS With recession departing away from away global economy, opportunities are slowly emerging in emerging markets. Since emerging markets, except China, were less depending upon US for growth; are first to come out of recession eclipse. Growth opportunities in banking, especially retail segment is set to witness fast growth due to high consumption. The higher growth of retail lending in emerging economies is attributable to fast growth of personal wealth, favourable demographic profile, rapid development in information technology, the conducive macro-economic environment, financial market reforms, and several micro-level supply side factors. The retail banking strategies of banks are undergoing major transformation, as banks adopt a mix of strategies like organic growth, acquisitions and alliances. This has resulted in a paradigm shift in the marketing strategies of the banks. Public Sector Banks players are adopting aggressive strategies, leveraging their rural branch network and their customer vase to earn a larger share of the retail pie. Banks are also going in for innovative strategies like cross selling, packaged selling of retail products and technology based banking. At the same time, new foreign players are also entering this high growth sector POINTS DISCUSSED - Global retail banking vis--vis Indian scenario - Indian retail banking overview - What are the regulatory factors involved in Indian banking industry - How interest rate risks, money laundering, and outsourcing are affecting the performance of banking sector? - What would be the impact of Basel-II norms in Indian banking industry? - What are the implications of SARFESI Act on recovery of money? - How the banking industry would combat the competition from upcoming sectors like mutual funds? - What are the various issues and challenges before this industry? - What are strategies taken by retail bank companies and their comparison thereof? PLAYERS PROFILED The report contains major profiles of - Andhra Bank, AXIS Bank, Bank of Baroda, Bank of India, Canara Bank, Citibank, Central Bank of India, Deutsche Bank, HDFC Bank, HSBC,

Indian Overseas Bank, ICICI Bank, I D B I (Industrial Development Bank Of India), Indian Bank, ING Vysya Bank, Jammu & Kashmir Bank Ltd, State Bank of India, Saraswat CoOperative Bank Ltd, Syndicate Bank, UCO Bank and Union Bank of India PRODUCTS ANALYSED - Indian retail credit - Housing finance - Auto finance - Consumer durable loan - Educational loan - Other personal loans - Credit cards - Bancassurance FOR WHOM - Banks, Financial institutions - MNC Banks - Academicians - Consultants - Researchers RESEARCH METHODOLOGY The data used, extensively draws from the in-house and proprietary sources available at Cygnus as our research team regularly tracks the sector. The other sources include Bank for International Settlements (BIS), Reserve Bank of India, Banking related Journals, and Research papers, Industry portals, Government Agencies, and Trade associations, monitoring of Industry News and developments etc. The data has been cross-checked by the research team and validated to provide the latest and unambiguous information. ADDITIONS IN THE EDITION Global Banking Scenario Introduction Global banking assets touches US$96 tn Rising Bad debts and Provisions Profitability plummeted Region wise analysis - US -- Rising defaults and slowdown affects overall credit - Europe -- Credit growth dips in European banks - Asia Pacific -- Japan find opportunity in serving baby boomers -- Asia pacific outperforms than developed economies Recent trends - Housing bubble collapsed Indian Banking Industry Current Scenario - Monetary and liquidity position: Relatively stable -- Bank deposits moving up -- Credit off take slows

Housing finance Housing loan disbursement: facing the heat from global slowdown Major Challenges - Managing volatility in metal and oil prices and in exchange rates - Finding a solution to slowdown in exports and manufacturing activities - Integrating the entire supply chain and managing inbound logistics - Managing Poor Monsoons - Maintaining the pace of infrastructure development Credit cards Key Trends - Infrastructural challenges could soon become irrelevant - EMV issuance is still far away - Prepaid Cards on the horizon - Demand for premium and co-brand cards - Full ATM outsourcing Techology Spend - Spread of ATMsprimary concern for banks - Cards being a strong alternative to cash payments - Internet banking emergence of new era in personal banking Micro payment Regulations Consumer credit, Home Loan, Education Loan, Auto Loans and their Risk weight exposures Credit card Norms - Single overall limit to an individual - KYC (know your customer) Norms - Reporting to Credit Bureau - Other harassment Micro Finance - The Micro Financial sector (Development and Regulation) Bill, 2007 Foreign Exchange Regulations Remittance Regulations Mobile Banking Issues and challenges A paradigm shift from the monopolies of public sector banks to competitive banking Retail loan quality seen falling Tie-Up Arrangement Basel II Norms Growth In Retail Electronic Funds Transfer Systems Future outlook Emerging trends in technology

The India Loan Market Opportunities & Forecast 2016 Declining interest rate, less paper work, fast processing time, rebate on income tax, flexibility to repay, attractive schemes have led for the significant growth of Indian Loan Market. India loan market is estimated to generate Rs 9,324.3 billion in 2011 and is expected to reach Rs 21,980.6 billion by 2016 with a CAGR of 18.7% from 2011-2016. The loans which

constitutes and plays a crucial role in Indian loan market includes home loans, education loan, auto loan, personal loan, consumer durable loan and much hyped gold loans. According to TechSci Research, in 2010, home loan holds the largest market share of 46.1% in Indian loan market. Declining interest rates, flexibility to repay, increased dwelling of housing societies have led for its growth. However, gold loan market is growing with the highest growth rate and is expected to grow with a CAGR of 38.7% from 2011-2016. The availability of Gold among almost every middle class Indian family has accounted for this growth. The Indian population holds worlds 11% of the total Gold that values around Rs. 32,100 Billion in 2010. In 2010, Southern India dominates the Indian loan market with a share of 35.4%, followed by Northern India, Western India and Eastern India. The Northern India loan market is expected to reach $7,319.8 Billion by 2016 at an estimated CAGR of 21.3% from 2011-2016. The India Loan Market Opportunities & Forecast 2016 discusses the following issues related to the Indian Loan Market. - India Loan Market Size & Share - Housing Loan Market - Auto Loans Market - Gold Loans Market - Consumer Durable Loans Market - Education Loans Market - Personal Loans Market - Market Drivers & Challenges The India Loan Market Opportunities & Forecast 2016 gives a detailed and unbiased overview on the loans market in India. This report helps readers to identify ongoing trends in the industry and expected growth in the coming years, as a consequence of changing industry dynamics in the coming years. The report will help industry consultants, bankers and nonbanking financial companies and other stakeholders to align their market-centric strategies according to ongoing and expected future trends.

Booming Indian Retail Banking Sector, the market research report provides extensive research and rational analysis on the Indian banking industry. This report has been made to help clients in analyzing the opportunities, challenges and drivers critical to the growth of the retail banking industry in India. The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. The future projection undertaken in this report is done on the basis of the current market scenario, past trends, and rules and regulations laid by Reserve Bank of India (RBI). The report provides detailed overview of the Indian banking industry by contemplating and analyzing various parameters, like asset size, income level etc. It helps clients to understand various products offered by the Indian banking industry and their future scope. The report also provides the future overview of the industry in terms of assets size, number of financial cardholders and various other important features. The future forecast discusses the

prospects of different arms of banking industry, including rural banking, bancassurance, financial cards, mobile banking, role of technology in rural banking, pension funds, and the future course of action or strategies for pension fund industry to be taken at macro level. Key Findings of the Report - Pension fund industry in India grew at a CAGR of 122.44% from 1999-00 to 2006-07. - In terms of ownership, debit cards are more in number than credit cards but in terms of transactions, use of credit cards is more prevalent than debit cards. - The ATM outlets in India increased at a rate of 28.09% from March 2006 to March 2007. - Outstanding Education loan segment is expected to grow at 36.41% till March 2009 from March 2007 onwards to cross Rs. 27000 Crore Mark. - Two-wheeler finance industry is projected to forge ahead at a CAGR of 14.21% till 2009-10 from 2005-06. - Indian Mutual Fund industry witnessed a growth of 49.88% from May 2006 to May 2007, and a higher 215.61% growth was recorded in closed ended schemes. - Increasing number of millionaires in India is increasing the scope of Wealth Management Services. - Bankable households in India are estimated to move up at a CAGR of 28.10% during 20072011. Key Issues & Facts Analyzed in the Report - Market analysis of different product segments in the banking industry. - Evaluation of current market trends. - Basel II Accord and Capital Requirement by Indian Banking Industry. - Factors driving he growth of Retail Banking Industry in India. - Analysis of various challenges and opportunities for the industry. - Urban vs. rural banking in terms of deposit and credit. - Drivers and constraints for credit and debit cards industry in India. - Pension Fund industry in India. Key Players Analyzed This section covers the key facts about the major players (including Public, Private, and Foreign sector) in the Indian Banking Industry, including Bank of Baroda, State Bank of India, Canara Bank, Punjab National Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Citibank, Standard Chartered Bank, HSBC Bank, ABN AMRO Bank, American Express, etc. Research Methodology Used Information Sources Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases. Analysis Method The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

''Opportunities in Indian Banking Sector'' ''Opportunities in Indian Banking Sector'' - provides extensive research and rational analysis on the Indian banking industry. This report has been made to help clients to evaluate the opportunities, challenges and driving forces critical to the growth of banking industry in India. The forecast given in this report is not based on a complex economic model but is intended as a rough guide to the direction in which the market is likely to move. The future projection is done on the basis of the current market scenario, past trends, and rules and regulations laid by the regulator and supervisor of the financial system, Reserve Bank of India (RBI). The report provides detailed overview of the Indian banking industry by contemplating and analyzing various parameters like assets size, and income level. It helps clients to understand various products available in the Indian banking industry and their future scope. The future forecast discusses the future prospects of different arms of banking industry including rural banking, bancassurance, financial cards, mobile banking, role of technology in rural banking, pension funds, and the future course of action and strategies for pension fund industry to be taken at macro level. Key Findings of the Report - Pension fund industry in India grew at a CAGR of 122.44% from 1999-00 to 2006-07. - Rural and semi-urban India is expected to account for 58.33% of the insurance sector by 2010. - In terms of ownership, debit cards are more in number than credit cards but in terms of transactions, credit cards are used more than debit cards. - The ATM outlets in India increased at a CAGR of 28.09% from March 2006 to March 2007. - Rural and semi-urban centers account for 66% of total bank branches. - Indian Mutual Fund industry witnessed a growth of 49.88% from May 2006 to May 2007, and higher growth is recorded in closed ended schemes at 215.61%. - Increasing number of millionaires in India is increasing the scope of Wealth Management Services. - Bankable households in India are anticipated to grow at a CAGR of 28.10% during 20072011. - Investment by banking sector in Information Technology is expected to increase at 18% in 2007 from last year. Key Issues & Facts Analyzed in the Report - Market analysis of different product segments in the banking industry. - Evaluation of current market trends. - Basel II Accord and capital requirement by Indian Banking Industry.

- Role of technology in banking industry. - Pension fund industry in India. - Urban Vs rural banking in terms of deposit, branches, and credit and future outlook of rural banking. - Drivers and constraints for credit and debit cards industry in India. - Analysis of various challenges and opportunities for the industry. Key Players Analyzed This section covers the key facts about the major players (including Public, Private, and Foreign sector) in the Indian banking industry, including Bank of Baroda, State Bank of India, Canara Bank, Punjab National Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Citibank, Standard Chartered Bank, HSBC Bank, ABN AMRO Bank, American Express, etc. Research Methodology Used Information Sources Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases. Analysis Method The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.' A number of major themes dominated retail banking in 2011. Revenue remained under intense pressure in the majority of markets; historically low interest rates and increased regulation, in particular demands for increased capital, combined to place huge pressure on margins while consumer and political sentiment remained hostile. 2011 witnessed a growing number of major international banks performing dramatic and strategic U-turns, ripping up plans for growth as they restructured balance sheets and focused instead on core markets, improved asset performance and increased productivity. Concerns related to sovereign debt and the weakness of the Eurozone served only to heighten the challenges faced by retail bankers in the mature markets. Set against this backdrop, it is hard but not impossible, to flag up retail banking highlights in 2011. Recognising the need to drive down costs while enhancing and broadening the customer user experience, banks ramped up their investments in mobile and online banking in the past year. Looking ahead to 2012, banks can be expected to maintain the drive to enhance customer service and more and more banks can also be expected to ramp up their investment in data analytics. It is also a safe forecast that lenders will continue to seek new revenue streams solely focusing on expense control will not in itself enable banks to meet their financial targets. A summary of 2011's major new developments is followed by interviews with senior

executives at some of the world's largest wealth managers and a round-up of the year's thought-provoking features. 2012, just as 2011 did, will provide a host of challenges. Embracing that struggle will help the retail banking industry re-shape their offerings in a more sustainable, client-centric way. This report arms you with the industry-specific insight to make the right business decisions in a highly competitive market place. Find out what the views of industry leaders are on the prospects for the industry over the next 12 months, highlighting the key trends and their likely impact on the industry and analysing the prospects. Read this report to: - Gain a strategic overview of the retail banking industry - Learn what senior executives think 2012 will hold for retail banks - Review last year's most though-provoking articles - Investigate the opportunities for market growth across your region - Implement strategic market positioning and customer segmentation