Volume : IV, Issue : III, March - 2015

"Banking industry under transition"(Moving towards Customer Focused-Retail Banking)

Noor Alam Khan, Firoz Husain

 After privatization and liberalization the Indian Banking sector developed and diversified at individual reach. The 

RBI also nationalized the good amount of commercial banks and co–operative banks for providing socio–economic 

services at micro–level. All around the world Retail Banking has been an established market; however its rise in emerging 

economies like India has been of recent origin. India’s retail banking is rising continuously where retail is contributing more than 30% of overall 

credit growth. 

Banking as a whole is undergoing change and consumer is getting transacted into a larger demand for retail banking products and services. 

Major product segments of retail credit include housing finance, auto finance, personal loans, consumer durables loan, credit card etc. In India, 

all the retail Banking segments are expected to witness a tremendous growth owing to the low cost of borrowing, changing customer’s attitudes 

towards borrowing and optimism regarding economic growth. Retail banking in India has to be developed in the Indian way, notwithstanding 

the long queues in front of the teller counters in the public sector banks. 

Retail banks provides e–banking facilities for their high net worth and techno–savvy customers which enables to do the banking transactions 

from anywhere in the world without physically going down to the anch. An attempt has been made under this study to observe the transition 

of banking industry toward customer focused retail banking.

Gone are the days when customer use to wait outside SBI Branches for different services. With privatization of banking industry and emergent 

of new technology based banks like ICICI, HDFC etc, the entire banking system is on transition mode where customer is King and they are on 

receiving end.

Present era is service era where banks have to give prompt service to their customer either being it anch banking or net banking or mobile 

banking.

In short banking now is shifting from leisure ick and mortar to quick and responsive banking. The banks which are quick in their metamorphosis 

will lead the industry others will only be follower. 