Beruflich Dokumente
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Contents
Industry Overview
Definition
Size and Growth Share of Retail Banking Structure of Industry Regulations and Policies Major Players Key Trends Effect of Union Budget 2011-12 Future Outlook
Industry Overview
Definition
The retail banking industry comprises those banks which provide banking services to retail customers These services include offering personal loans, home mortgages, education loans, handling retail accounts etc.
As on 31st March 2010, the banking sector in India comprised of 167 commercial banks Retail loans account for about 6% of GDP of India
Industry Overview
Within retail banking, the semi-urban and rural segments have been driving the growth Increased purchasing power of consumers has also contributed towards growth in personal loans
Industry Overview
Public Sector
SBI PNB Bank of Baroda Canara Bank
Foreign Banks 7.0% Private Sector Banks 19.0%
Private Sector
ICICI Bank HDFC Bank Axis Bank Yes Bank Share of Total Assets (%)
Foreign Banks
Citi Bank HSBC Standard Chartered Bank The Royal Bank of Scotland
Co-operative Institutions
Delhi State Cooperative Bank
Indian banking sector is dominated by government-controlled banks which account for about three-fourths of the total bank assets
Contents
Industry Overview
Regulatory Framework
Formulating and implementing the monetary policies Monetary Authority
Development al Role
Issuer of Currency
Managing foreign exchange as per the Foreign Exchange Management Act, 1999
Minimum amount of cash reserves that a bank has to deposit with RBI
Repo/ Reverse Repo Rate Short-term money market interest rates for transactions between RBI and commercial banks
Source: Banking, India Brand Equity Foundation (November 2010)
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Contents
Industry Overview
Major Players
ICICI Bank
1994
2564
56969
225602
42.5%
25974
5151
HDFC Bank
1994
1963
55752
208586
14.2%
19928
3936
Axis Bank
1994
1459
26435
189238
11.7%
15155
3388
Major Players
SBI
1805
13929
222933
933933
23.9%
81394
64,809.3
7370.35
PNB
1895
4997
56963
312899
6.6%
26986
21,998
4430
Canara Bank
1906
3329
43397
293973
6.0%
23064
20,417.99
4025
Major Players
Interest Income
Citibank
1902
43
5327
56668
23.0%
6298
28.61
HSBC
1853
50
6373
54107
20.9%
5195
23
1858
95
7813
58419
20.2%
6352
26.36
Contents
Industry Overview
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Key Trends
Date of M&A
Acquirer Bank
Target Bank
State Bank of India ICICI Bank HDFC Bank Centurion Bank of Punjab
State Bank of Indore Bank of Rajasthan Centurion Bank of Punjab Lord Krishna Bank
April 2007
ICICI Bank
Sangli Bank
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Key Trends
Retail banks are spending heavily on technology projects such as End-to-End Encryption that ensure information security and fraud prevention Canara Bank has recently implemented biometric identification in its ATMs Due to increasing number of internet consumers, retail banks are introducing online banking services These services include online fund transfers and gross settlements
Internet Banking
Consumers can access their bank accounts on-the-move using mobile banking
Mobile Banking Notification of account balances, withdrawal details, due date of payment, blocking of cards, etc.
Plastic Money
With the advent of technology, consumers can now transact in any part of the country using debit or credit cards
Contents
Industry Overview
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Source: http://www.bankingonly.com/detail-news.php?news_id=411
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Contents
Industry Overview
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Future Outlook
Future Outlook
Better capitalization for private sector banks Due to lower exposure to credit risks, the private sector banks are poised to grow more than public sector counterparts
Loyalty programs
More and more retail banks are expected to build on loyalty and focus on data collection through data mining and CRM
Diversification programs
To counter increasing competition, banks are likely to diversify their banking operations to cater to needs of both rural as well as urban customers
The players in banking industry are expected to gain higher level of involvement in government policies such as New Pension Scheme
Source: India Commercial Banking Report, Business Monitor International (Q3 2011)
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