Opportunities and Challenges in Indian Retail Banking Industry

Published: 09th August 2007
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The subject matter of retail banking is of prime importance. In recent years, commercial banks have witnessed development in the form of retail lending, all over the world. The growth in the field of retail lending is primarily because of the speedy advancement in the IT sector, evolving macroeconomic environment, numerous micro level demand and supply side factors and financial market reform. This criterion is based on the market research report on retail banking.



India has also experienced growth in the field of retail banking. The retail loan accounted for approximately one-fifth of the entire bank credit. The housing sector is undergoing a boom in its credit. The retail loan market has detrimentally undergone a change, from the sellers market to the buyers market. The time is no more the same, when it was difficult to get loans from the bank. This indicates that the retail loan market has shown phenomenal growth and development over recent years.



The market research reports that were made exclusively for the Indian retail banking market indicated, that India offers tremendous opportunities in this field. It further indicated that retail banking market is a booming sector in India.



One of the key contributors for the boom in the Indian retail banking industry is, the increasing ratio of the Indian middle class. The number of people who fall in the category of the middle class is increasing rapidly. The younger population of the country has increased not only its purchasing power; it is also comfortable acquiring personal debts as compared to their older generations. This dual combination of increased purchasing power and comfort acquiring personal loans has contributed majorly in the development of the retail loan sector in India.



If retail banking on one hand offers development opportunities, it also offers challenges on the other hand. These challenges are listed in the market research reports made on retail banking. Further growth and success of the retail market (in the banking sector) will depend upon the capacity and ability of the banks to meet with the challenges and make the best use of the opportunities.



The technological base and efficiency in operations would give the retail banking market a competitive edge and will contribute in the success of the business in India. Prime importance has to be given to consumer interest.



To avail more information on Indian Retail Banking Market and Research reports associated with this new developing market log on to the website: http://www.rncos.com.



RNCOS E-Services Pvt. Ltd. is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our market research reports, visit us at our website: - http://www.rncos.com or email us at info@rncos.com.


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