ABOUT BANKING Origin of Banking Banks are among the main participants of the financial system in India.

Banking offersseveral facilities and opportunities. Banks in India were started on the British pattern in thebeginning of the 19thcentury. The first half of the 19thcentury, The East India Companyestablished 3 banks The Bank of Bengal, The Bank of Bombay and The Bank of Madras. Thesethree banks were known as Presidency Banks. In 1920 these three banks were amalgamated andThe Imperial Bank of India was formed. In those days, all the banks were joint stock banks and alarge number of them were small and weak. At the time of the 2ndworld war about 1500 joint stock banks were operating in India outof which 1400 were nonscheduled banks. Bad and dishonest management managed quiet a quieta few of them and there were a number of bank failures. Hence the government had to step inand the Banking Companys Act (subsequently named as the Banking Regulation Act) wasenacted which led to the elimination of the weak banks that were not in a position to fulfil thevarious requirements of the Act. In order to strengthen their weak units and review publicconfidence in the banking system, a new section 45 was enacted in the Banking Regulation Actin the year 1960, empowering the Government of India to compulsory amalgamate weak unitswith the stronger ones on the recommendation of the RBI. Today banks are broadly classifiedinto 2 groups namely (a) Scheduled banks. (b) Non-Scheduled banks. INTRODUCTION ABOUT RETAIL BANKING: Retail banking is, however, quite broad in nature - it refers to the dealing of commercialbanks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed,current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing,auto, and educational) on the assets side, are the more important of the products offered bybanks. Related ancillary services include credit cards, or depository services. The issue of retail banking is extremely important and topical. Across the globe, retaillending has been a spectacular innovation in the commercial banking sector in recent years. Thegrowth of retail lending, especially, in emerging economies, is

attributable to the rapid advances in information technology, the evolving macroeconomic environment, financial market reform, and several micro-level demand and supply side factors. India too experienced a surge in retail banking. There are various pointers towards this.Retail loan is estimated to have accounted for nearly one-fifth of all bank credit. Housing sectoris experiencing a boom in its credit. The retail loan market has decisively got transformed from asellers market to a buyers market. All these emphasise the momentum that retail banking isexperiencing in the Indian economy in recent years. Retail banking refers to provision of banking services to individuals and small businesswhere the financial institutions are dealing with large number of low value transactions. This isin contrast to wholesale banking where the customers are large, often multinational companies,governments and government enterprise, and the financial institution deal in small numbers ofhigh value transactions. The concept is not new to banks but is now viewed as an important and attractive market segment that offers opportunities for growth and profits. Todays retail banking sector is characterized by three basic characteristics: Multiple products (deposits, credit cards, insurance, investments and securities) Multiple channels of distribution (call center, branch, and internet) Multiple customer groups (consumer, small business, and corporate). OBJECTIVES To study on the Customer Satisfaction level on retail banking To know the technical advancement benefits for customers. To understand the operations and modalities ofRetail banking To study on the Impact of the Banking Crisis and the Flight to Quality To study and analyze the concept of Customer Relationship Management of banks in general. To predict the future position of Retail banking in India

NATURE OF THE STUDY Retail banking is typical mass-market banking where individual customers use localbranches of larger commercial banks. Services offered include: savings and checking accounts,mortgages, personal loans, debit cards, credit cards, and so The Retail Banking environment today is changing fast .The changing customer demographics demands to create a differentiated application based on scalable technology, improved service and banking convenience. Higher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. Increasing use of modern technology has further enhanced reach and accessibility. The market today gives us a challenge to provide multiple and innovative contemporary services to the customer through a consolidated window as so to ensure that the banks customer gets Uniformity and Consistency of service delivery across time and at every touch point across all channels. The pace of innovation is accelerating and security threat has become prime of all electronic transactions. High cost structure rendering mass-market servicing is prohibitively expensive. Present day tech-savvy bankers are now more looking at reduction in their operating costs by adopting scalable and secure technology thereby reducing the response time to their customers so as to improve their client base and economies of scale.

The solution lies to market demands and challenges lies in innovation of new offering with minimum dependence on branches ' a multi-channel bank and to eliminate the disadvantage of an inadequate branch network. Generation of leads to cross sell and creating additional revenues with outmost customer satisfaction has become focal point worldwide for the success of a Bank. RESEARCH OBJECTIVE Top of mind awareness of consumers for banks offering various retail products. Factors influencing their purchase decision. To study the comparative influence of various mediums of advertisements in creating awareness amongst the consumers. To find the immediate competitors in the minds of consumer for every retail product. RESEARCH METHODOLOGY An exploratory research was conducted in order the study the consumer perception about various banks offering retail products and the banks they opt for. Sample Size A random sample of 100 were administered with the questionnaire and responses collected. Research Area The research was carried out at Hyderabad. Respondents profile Data was collected from respondents across all age and income groups.Data relating to age was collected.This segmentation helped us to gain insights into the perception and preferences across all age groups.Based on the nature of retail banking products age groups were

identified and classified as follows: Majority of the respondentsbelonged to the age group of 25 40 years. The reason associated with it is that this group is the highest user of retail offerings. Respondents earning Rs. 8000-15000 constitute the major chunk of the respondents using retail product. Age Profile 15%45% 23% 17% 18-25 yrs 25-40 yrs 40-55 yrs 55 yrs & above Income Profile 15% 15% 27% 30% 13% Non- earning <5000 5000-8000 8000-15000 >15000 This income group qualifies almost all eligibility criteria of retail offerings. Retail products being also designed for students and retired

people, they were considered for the survey. Salaried and businessmen being the major users of retail users of retail products. Data Collection Tools Data was collected using Questionnaires. The Questionnaire consisted of suitable combination of Rating Scale, Ranking Scale and open ended Questions in the level of importance. An in depth interview was also conducted while administering the questionnaire. Sources of Data Questionnaires were administered to people with experience of any retail offering, currently using or used in the past. Secondary Sources: Data was collected from the various websites from the internet as well as Journals of Marketing. Brief overview of research planned: Retail Banking In India 2008 Description: The annual growth in bank credit to the commercial sector is at 25.4% as on March31, 2007 and was lower than 27.2% against previous year. Till 2010, retail banking is expectedto grow at a CAGR of 28% to touch a figure of INR9,700 billion. This requires expansion anddiversification of retail product portfolio, better penetration and faster service mechanism. The report on Retail Banking Industry in India covers industry segments like housingloan, auto loan, personal loan, education loan, consumer durable loan, credit card and regulatoryframe work for retail banks is also discussed. The report gives retail

banking industrys currentperformance and future outlook. Total 22 major retail banks in India are covered in terms of theirperformance, strategy and outlook. Indian Retail Banking 2006 Description: Indian Retail Banking continues to redefine the credit growth in the country. It grewby a whopping 44.4% in 2005-06 to touch Rs3,538 billion. This leap was despite the increase inrisk weight by RBI for housing and real estate loans during August, 2005. Housing, whichconstitutes more than 52% of all retail loans, grew at a robust rate of 44.35% during 2005-06. Inorder to help banks in India to understand the market and competition and plan future strategies,we have just come out with an Industry Insight on Indian Retail banking 2006 edition. Thisreport analyses the retail banking market and its segments in India and presents the key trends,along with issues and challenges. The report also paints a future outlook for the market. Besidesit profiles 21 major players in the retail banking space and their strategies. This report will be ofimmense use to all banks in India to review and formulate their strategies in the retail space. Itprimarily covers analysis of the present status, current trends, major issues & challenges in thegrowth of the retail banking sector. Key Highlights Covered During 2006-07, gross credit extended by Indian commercial banks grew by 34.83% to touch INR19, 495 billion. Retail credit constitutes about 25% of the total credit and has grown by 28.0% to INR4, 218.3 Billion The annual growth in bank credit to the commercial sector is at 25.4% as on March 31, 2007 and was lower than 27.2% against previous year. Till 2010, retail banking is expected to grow at a CAGR of 28% to touch a figure of INR9, 700 billion 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 200910 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 2007-2011 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, and EXPECTED OUTCOMES FOR THE PROPOSED STUDY: This study would enrich my knowledge to look into the modalities of operations of Key products analyzed in this report include:

 Indian retail credit scenario Housing finance Auto finance Consumer Durable loan educational Loan Other personal loans Credit Cards & Banc assurance. THE STUDY WOULD FURTHER ENABLE ME TO LEARN: On line service provided by banks The level of awareness about various products of banks The satisfactory levels of existing customers The location advantages to customer These are the some of the expected outcomes out of these over-all research programs i will come to that. LITERATURE REVIEW Background: Our perception is an approximation of reality. Our brain attempts to make sense out of thestimuli to which we are exposed. This works well when we are about to

perceive familiar facts.However, our perception is sometimes off when we are not clear about concepts. Perception isa process by which an individual select, organize & Interpret stimuli in a meaningful picture ofthe world Also, we can describe as how we see the world around us Perception is the processof selecting, organizing, & Interpreting or attaching meaning to events happening in environment The Concept of Perception Perception is one of the objects studied by the science of consumer behaviour. Analyzingthe works of scientists studying consumer behaviour, it is possible to make a conclusion thatperception is presented as one of personal factors, determining consumer behaviour. Personalfactors mean the closest environment of a human, including everything what is inside the person,his head and soul, characterizing him as a personality. Using his sensory receptors and beinginfluenced by external factors, the person receives information, accepts and adapts it, forms hispersonal attitude, opinion, and motive, which can be defined as factors that will influence hisfurther activity and behaviour. Perception within this context is considered as one of theprincipal personal factors, conditioning the nature and direction of remaining variables. Customer Perception Customer perception is an important component of our relationship with our customers.Customer satisfaction is a mental state which results from the customers comparison ofexpectations prior to a purchase with performance perceptions after a purchase. A customer may make such comparisons for each part of an offer called domain-specific satisfaction or for the offer in total called global satisfaction. Moreover, this mental state, which we view as a cognitive judgment, is conceived of asfalling somewhere on a bipolar continuum bounded at the lower end by a low level ofsatisfaction where expectations exceed performance perceptions and at the higher end by a highlevel of satisfaction where performance perceptions exceed expectations. Customer Perception on Service: These characteristics of service also make service unique and different from goods as Described below

1.I n tan gib ility. Unlike manufactured goods that are tangible, a service is intangible. The Products from service are purely a performance. The consumer cannot see, taste, smell, hear, feel or touch the product before it purchased 2.Heterogen eity. A service is difficult to produce consistently and exactly over time. Service performance varies from producer to producer, from customer to customer, and from time to time. This characteristic of service makes it difficult to standardize the quality of the service Inseparability. In service industries, usually the producer performs the service at the time the consumption of the service takes place. Therefore, it is difficult for the producer to hide mistakes or quality shortfalls of the service. In comparison the goods producers, have a buffer between production and customers consumption 4.Peris h ab ility. Unlike manufactured goods, services cannot be stored for later consumption. This makes it impossible to have a quality check before the producers send it to the customers. The service providers then only have one path, to provide service right the first time and every time. 5.N on-returnable. A service is not returnable, unlike products. On the other hand, in many services, customers maybe fully refunded if the service is not satisfactory. 6. Needs-match uncertainty. Service attributes are more uncertain than the product. This

Yield to higher variance of making a match between perceived needs and service is greater than perceived need and product match. 7.I nterpers onal. Service tends to be more interpersonal than products. For example, compare buying a vacuum cleaner to contracting for the cleaning of a carpet. While customers will judge the quality of the vacuum cleaner by how clean the carpet is, customers will tend to judge the quality of the carpet cleaning service on both the appearance of the carpet and the attitude of the technician. 8.Pers on al. Customers often view services to be more personal than products. For example, a customer may perceive the service of her car (balancing the tires) as more personal than purchasing new tires. If the same customer has problems later with the tires, the defect in the tires would be less personal than if the tires were never balanced. 9.Ps ych ic. Even though the food at a restaurant might not be as delicious as other famous restaurants., the customers will recognize the restaurant and tend to be satisfactions if the service of the restaurant is excellent. Another example is when a flight is delayed, and people tend to be upset with this poor service . However, if the gate agent is very helpful and friendly, people tend to still be pleased with the service (Groth, & Dye,1999). Like other industries, banking and financial services companies have reached the conclusion that the relationship with the

customer should not (metaphorically and literally) end at the bank door. Customer access after the transaction adds value to the transaction. Features of Banking: 1. Dealing in Money: The banks accept deposits from the public and advancing them as loans to the needy people. The deposits may be of different types- Current, Fixed, Savings, etc. accounts. The deposits are accepted on various terms and conditions. 2. Deposits must be withdrawable: The deposits (other than fixed deposits) made by the public can be withdrawable by cheques, draft or otherwise, i.e., the bank issue and pay cheque. The deposits are usually withdrawable on demand. 3. Dealing with Credit: The banks are the institutions that can create Credit i.e., creation of additional money for lending. Thus, Creation of Credit is the unique feature of banking. 4. Commercial in Nature: Since all the banking functions are carried on with the aim of making profit, it is regarded as a commercial institution. 5. Nature of Agent: Besides the basic functions of accepting deposit and lending money as loans, banks possess the character of an agent because of its various agency services. Measuring Customer Perception in the Banking Industry: Banking operations are becoming increasingly customer dictated. The demand for'banking super malls' offering one-stop integrated financial services is well on the rise. Theability of banks to offer clients access to several markets for different classes of financialinstruments has become a valuable competitive edge. Convergence in the industry to cater to thechanging demographic expectations is now more than evident. Banc assurance and other formsof cross selling and strategic alliances will soon alter the

business dynamics of banks and fuel theprocess of consolidation for increased scope of business and revenue. The thrust on farm sector,health sector and services offers several investment linkages. In short, the domestic economy isan increasing pie which offers extensive economies of scale that only large banks will be in aposition to tap. With the phenomenal increase in the country's population and the increaseddemand for banking services; speed, service quality and customer satisfaction are going to bekey differentiators for each bank's future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking,which in turn will help them take positive steps to maintain a competitive edge. The working ofthe customer's mind is a mystery which is difficult to solve and understanding the nuances ofwhat perception the customer has to attain satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into theparameters of customer satisfaction and their measurement. This vital information will help us tobuild satisfaction amongst the customers and customer loyalty in the long run which is anintegral part of any business. The customer's requirements must be translated and quantified intomeasurable targets. This provides an easy way to monitor improvements, and deciding upon theattributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. The Need to Measure Customer Perception: Satisfied customers are central to optimal performance and financial returns. In many placesin the world, business organizations have been elevating the role of the customer to that of a keystakeholder over the past twenty years. Customers are viewed as a group whose satisfaction withthe enterprise must be incorporated in strategic planning efforts. Forward-looking companies arefinding value in directly measuring and tracking customer satisfaction as an important strategicsuccess indicator. Evidence is mounting that placing a high priority on customer satisfaction iscritical to improved organizational performance in a global marketplace.

With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. When buyers are powerful, the health and strength of the company's relationship with its customers its most critical economic asset is its best predictor of the future. Assets on the balance sheet basically assets of production are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction. Need and Importance of the Study One of the most important developments in banking sector has been the growth of thefinancial industry over the past two decades. The benefits of financial industry can be

seen in theform of large scale industrial development, increased employment opportunities, higher turnover as well as revenue generation to the government and also increase in export of goods and services. Banking industry in India has undergone a process of evolution with the package of time.To count or to depend on a bank merely by the function it is supposed to perform would beinsufficient in the world that we live today. Investments play a vital role on the part of the customers. A real investor does not simplythrow his or her money random investment; he or she performs through analysis and commitscapital only when there is a reasonable expectation of profit. Hence they both are interdependenti.e., it all depends upon the customer. Customer knows what to expect. Today banks have arelationship management approach with their clients. Banks are offering more customizedsolutions to their clients. The need of the hour is not only to introduce more value added productsfor which the customers are willing to pay here but also to innovate & enter new segments likesmall business & periodical finance. Everything resolves around the customer and banks via with their innovative and quality products to suit their clients. Today the bottom line for any customer is convenience understanding and evaluating the customers perception on the service & products of a bank has without doubt become a need, which propels the body to structure itself for better performance and service. Thus delivering high quality service to clients is just as important as delivering performance that meets or exceeds their expectations. It is in this context that a study is necessary to know about awareness levels on the services provided by the public and private sector banks namely, Public Sector Banks : State Bank of India, Indian Bank and Indian Overseas Bank and Private Sector Banks : ICICI, HDFC and IndusInd Bank and the

customer perception towards the banks. Objectives To evaluate the different factors considered by the investors while making investments. To study the services provided by Private Sector and Public Sector banks and the performance of it. To analyze the service facilities those are being effectively utilized by thecustomers. To ascertain suggestions from the investors for further improvement of the institutions. Methodology The data required for this study has been collected from the primary sources. Initially a Pilot Study will be conducted for testing the questionnaires. The pilot survey will help in making certain improvement in the final questionnaire. A structured questionnaire shall then be prepared for the respondents in order to collect primary data. The questionnaire is designed based on the objectives. Source of Data The researcher proposed to gather the required data through primary data and secondary data.Primary data are those which are collected afresh and for the first time, and thus happen to beoriginal in character. It will be collected through questionnaires method. Secondary data iscollected from the possible records like books, magazines, periodicals and websites. Universe The proposed study is to find out the services rendered by the Public and Private Sector Banks to their Customers. The population is uncountable and is considered as infinite. However,

the proposed sample for the study from Private Sector Banks and Public Sector Banks are 300 respectively. Sampling Method The universe of the study is the account holders of Public and Private Sector banks and the sampling technique adopted will be convenient sampling method. Statistical Tools and Techniques The collected data have been analyzed with the help of tools like Gap Analysis and Factor Analysis Findingsfrom Factor Analysis: It is concluded that the respondents expectation are significantly more than they derive on the various aspects relating to facilities in SBI. It is concluded that the respondents expectation are significantly more than they derive on the various aspects of Indian Overseas bank. It is concluded that the respondents expectation are significantly more than they derive on the various aspects of Indian bank. It is concluded that the respondents expectation are significantly more than they derive on the various aspects relating to facilities in ICICI bank. It is concluded that the respondents expectation are significantly more than they derive on the various aspects relating to facilities in HDFC bank. It is concluded that the respondents expectation are significantly more than they derive on the various aspects relating to various facilities in Indusind bank. SUGGESTIONS, DISCUSSIONS AND CONCLUSIONS The following suggestions are the outcome of the research and applications of theseEvery bank should take precautions to keep customers experience safe. It should takecontinued efforts to safeguard online banking transactions. All internet banks should provide close interaction between bank service and web based e-commerce and even service through direct electronic payments. The bank should provide more convenient international transactions which means internet along with general trends.

 Elimination of geographical boundaries will help free access of internet banking. The bank should provide more customer awareness and need of transparency in their dealings. All banks should provide digital certification procedure as it helps the customers data that they receive from the correct system. The banks should come up with innovative ways of service at their door steps this may be a costly affair but will surely give positive results in the long run. The banks should take the initiative of training the advisors about the new schemes from time to time which also makes the advisors connected to the bank. The banks should also emphasis on the monitoring of EMI which directly relates to the returns of a loan amount. The company should come up with proper fixed deposit plans at this point of time where the market is highly volatile and the investors become very cautious at this level. The banks should use brand ambassadors for example the CEOs of major Companies where the company allocate the funds. This will probably ensure proper results. The banks should focus on the advertising strategy and also the marketing of the bank product. The bank doesnt have enough tax saving plans or appropriate plans for tax so which they should come up with. PROGRESS REPORT: The reliance, reliability and validity to the present study: Indian retail banking sector which mainly depends upon transactions directly withconsumers savings and lending, registered a decline in share of 5.02 per cent during the firstquarter of FY 10 as compared to the corresponding period last year as per analyses of thirtypublic or private Indian banks by the Assocham Financial Pulse. The Retail Banking in India covers segments like current account, saving account,housing loan, auto loan, personal loan, education loan, consumer durable loan,

credit card anddebit card etc. The share of retail banking in total income stood at 41.06 per cent during Q1 FY10 and was lower than the share of 46.08 per cent in the corresponding period last year. Thetotal income of banking sector increased about 24.3 per cent during Q1 FY 10, whereas theincome from retail banking registered a growth of 6.03 per cent during the period. Due to the global meltdown, Indian government took major steps in monitory policy andcut the banking interest rate for lending like housing and auto loans which impacted the revenueof Indian retail banking segment. Other reason behind the decline in retail revenue may be due tohigher collateral charged by the banks for retail loans.The analyses of fifteen private and fifteenpublic banks show that the private banks are performing better than the public banks in terms oftheir revenue from retail segment. The private and public banks have registered about 54.27 percent and 35.47 per cent share in retail banking during Q1 FY 10 respectively. In the context of banking sector, the public sector banks registered a growth of 28.96 percent in total income and 9.92 per cent in retail banking during the first quarter of FY 10. Whilethe share of retail banking in public banks declined 6.14 per cent during the period from 41.61 per cent in Q1 FY 09 to 35.47 per cent in Q1 FY 10. However the private banks registered only13.52 per cent growth in total income during the period and show a minimal decline of 0.16 percent in retail banking. The share of retail banking in private banks declined by 7.44 percentagepoints during the period from 61.71 per cent in Q1 FY 09 to 54.27 per cent in Q1 FY 10.

Public Bank : The analyses of fifteen public banks shows that State Bank of Hyderabad recorded amajor share in retail banking segment from its total income about 81.84 per cent followedby Andhra Bank with 42.14 per cent, State Bank of India with 39.81 per cent and IndianBank with 38.01 per cent. State Bank of Hyderabad registered a major share in retail banking from its total income during Q1 FY 10. The total income of the bank stood at Rs. 1724.41 crore during the period, out of which Rs. 1448.94 crore came from the retail banking. The bank has involved about 81.84 per cent in retail banking segment during Q1 FY 10 registered a minimal decline in share of 2.03 per cent from the last year same period. Andhra Bank registered about 42.14 per cent share in retail banking from its total incomeduring the Q1 FY 10. The total income of the bank during the period stood at Rs.1742.70 crore and the revenue from retail banking was Rs. 734.44 crore, the bankregistered 1.17 per cent decline in share of retail banking as compared to the last yearsame period. The major wholesale and retail banking operator, State Bank of India (SBI) shows 39.81per cent share in the retail banking segment from its total income during Q1 FY 10. Thebank registered a major decline in share of retail segment about 6.23 per cent ascompared to the same period last year. The total income of the bank during the periodstood at Rs. 21041.51 crore and the revenue from retail banking was about Rs. 8377.09 crore. Indian Bank had a 38.01 per cent share in retail banking from its total income during Q1FY 10. The total income of the bank during the period stood at Rs. 2230.39 crore andrevenue from retail banking was Rs. 847.84 crore. The bank registered a minimal declineof 0.98 per cent in share as compared to the last year same period.

Other banks which present major share in retail banking segment from their total income were UCO Bank (37.42 per cent), Central Bank of India (34.45 per cent), Canara Bank (33.42 per cent) and Union bank of India (31.36 per cent). The banks which registered decline in share of retail banking during Q1 FY 10 ascompared to the same period last year were Oriental Bank of commerce (33.96 per cent),Allahabad Bank (10.54 per cent), Corporation Bank (7.81 per cent), Bank of India (7.71per cent), Indian Overseas Bank (6.64 per cent) and Bank of Baroda (5.88 per cent).

Private Bank : In the context of fifteen private banks, Ing Vysya Bank Limited shows a major share (80.20 per cent) of retail banking in its total income, followed by Kotak Mahindra Bank Limited (75.36 per cent), HDFC Bank of India (74.82 per cent) and ICICI Bank Limited (53.52 per cent). Ing Vysya Bank Limited recorded a major share in retail banking from its total income during Q1 FY 10. The total income of the bank stood at Rs. 742.55 crore during the period, out of which Rs. 595.73 crore came from the retail banking. The bank earned about 80.2 per cent revenue from retail banking segment during Q1 FY 10 however registered a minimal decline in share of 2.22 per cent from the last year same period. Kotak Mahindra Bank Limited had a share of 75.36 per cent of retail banking in its totalincome during the Q1 FY 10. The total income of the bank during the period stood atRs.894.23 crore and the revenue from retail banking was Rs. 673.91 crore, the bankRegistered 3.52 per cent decline in share of retail banking as compared to the same period last year.

 HDFC bank recorded about 74.82 per cent share in retail banking from its total income during the Q1 FY 10. The total income of the bank during the period stood at Rs. 5126.75 crore and the revenue from retail banking was Rs. 3843.34 crore, the bank registered 2.83 per cent decline in share of retail banking as compared to the same period last year.The major private bank which involved in wholesale and retail banking operations, State ICICI Bank Limited shows 53.52 per cent share in the retail banking segment from its total income during Q1 FY 10. The bank registered a major decline in share of retail segment about 10.936 per cent as compared to the last year same period. The total income of thebank during the period stood at Rs. 9223.32 crore and the revenue comes from retail banking was about Rs. 4936.18 crore. Development Credit Bank Limited recorded 52.26 per cent share in retail banking from its total income during Q1 FY 10. The total income of the bank during the period stood at Rs. 147.08 crore and revenue from retail banking was Rs. 76.85 crore, registering a 7.52 per cent growth in share as compared to the same period last year. Other banks which recorded major share in retail banking segment from their total income were Axis Bank (47.16 per cent), South Indian Bank (46.92 per cent), J&K Bank (45.90 per cent), IDBI Bank (43.45 per cent) and The Bank of Rajasthan Limited (22.91 per cent). The banks which registered decline in share of retail banking during Q1 FY 10 as compared to the same period last year were The Federal Bank Limited (20.07 per cent), IndusInd Bank (16.22 per cent), Dhanalakshmi Bank (15.89 per cent) and Karnataka Bank ( 13.29 per cent),

Data analysis from the link Relation between basic-banking and retail-banking choices: The survey also tried to study, analyze and correlate respondents decision in selecting a bank for general banking purposes and for availing retail products. The findings revealed that people Top Of Mind Awareness For Housing L o a n OTHER S 12% CITI BAN K 13% HDFC 31% SBI 20% ICICI 24% Top Of Mind Awareness For Credit Card s HSBC 16% SBI 12% HDFC 8% CITI BANK 24% OTHERS 21% ICICI 19%

generally prefer PSU banks close to their locality to bank with whereas private banks and foreign banks have higher preference on the retail banking front. The reason associated with this behavior is the close proximity and long existence of PSU banks making them safe and trustworthy. Also people have had accounts with the PSU banks as private banks were non-existent earlier, and hence are reluctant to change their banks. However due to efficient service, short processing time, competitive rates and a caring attitude people have started to prefer private banks for meeting their retail needs. Conclusion There is a need of constant innovation in retail banking. In bracing for tomorrow, a paradigm shift in bank financing through innovative products and mechanisms involving constant upgradation and revalidation of the banks internal systems and processes is called for. Banks now need to use retail as a growth trigger. This requires product development and differentiation, innovation and business process reengineering, micro-planning, marketing, prudent pricing, customisation, technological upgradation, home / electronic / mobile banking, cost reduction and cross-selling. While retail banking offers phenomenal opportunities for growth, the challenges are equally daunting. How far the retail banking is able to lead growth of the banking industry in future would depend upon the capacity building of the banks to meet the challenges and make use of the opportunities profitably. However, the kind of technology used and the

efficiency of operations would provide the much needed competitive edge for success in retail banking business. Furthermore, in all these customers interest is of paramount importance. The banking sector in India is demonstrating this and I do hope they would continue to chart in this traded path. Questionnaire from the link