Retail banking in India

When a Dinosaur finally decides to get moving, it covers the ground at a very high speed. This is similar to what is happening to the course of banking industry in India. For decades, the banks in India have focused on earning big money from corporate clients. However, things have radically changed. Banks are awash with excess liquidity; interest rates and inflation are moving southwards. Corporates do not borrow from banks in a big way …

…twork, low cost of funding, low intermediation (operating) costs, marketing capability, large product portfolio, cross-selling, proper credit appraisal mechanism/risk assessment procedures, high service levels in terms of faster loan processing and disbursement, flexible technology across banking platforms, multi-distribution channels, strong brand presence and good recovery mechanism. These success factors would ultimately transform into how well banks understand their customers and how effective they are in meeting their new definition of access, convenience and value.