Marketing of Retail Banking Services:–A Comparative Study between Public and Private Sector Banking in Karnataka

Dr. M. Kumaraswamy; Nayan .J

Volume : IV, Issue : V, May - 2015

Marketing of Retail Banking Services:–A Comparative Study between Public and Private Sector Banking in Karnataka

Dr. M. Kumaraswamy, Nayan . J

Abstract :

Retail banking services in the banking sector are crucial from various aspects. The factors inducing consolidation include technical progress, excess retention capacity, emerging opportunities and deregulation of geographic, functional and other restrictions. The banks are to be made more effective and comparable with private and foreign banks, they need to be more capitalized, automated and technology oriented in addition to strengthening their internal operations and marketing their Retail banking services. Public sector banks facing stiff competition first from intra anch banks i.e., among the same bank anches in the geographical area, interbank competition from the other public sector banks, open competition from co–operate and private banks and global competition from the foreign banks. . This situation has made retail banking (Non fund based services) a desperate search for a survival strategy. The public sector banks are incapable to compete with leading private banks such as ICICI bank, HSBC bank, Axis banks in retail banking. The problems of public sector banks withered away the solvency and liquidity position of the banks. The economic reforms guided the public sector to equip to meet all the challenges of the globalised scenario, failing which, privatization is unavoidable Economic liberalization could provide disinvestment. Marketing of Retail banking has become inevitable in Indian banking industry as well. State Bank of India which is considered to be number two in Indian banking can be empowered on all fronts provided the mergers of associate banks with State Bank of India takes off.