EXECUTIVE SUMMARY 2. HIGHLIGHTS 3. GLOBAL RETAIL BANKING SCENARIO 3.1 Introduction 3.2 Retail drives the global banking assets to touch USD65 trillion 3.3 Declining bad debt and provisions 3.4.Profitability improves 3.5 Increased emphasis on fee-based business 3.6 Region-wise Analysis 3.6.1 US 3.6.2 Europe 3.6.3 Asia Pacific 3.7 Recent Trends 3.7.1 Level and growth rate of Household Credit 3.7.2 More Banks focusing on revenue growth 3.7.3Rising consumer debt causes concern 4.INDIAN BANKING INDUSTRY 4.1 Introduction 4.2 Evolution 4.3 Reforms galore 4.4 Current Status 4.4.1 Monetary and liquidity position: Relatively stable 4.4.2 Inflationary pressure decreases 4.4.3 Credit Market 4.4.4 Composition of Indian banking system in 2007 4.5 Geographic Spread 4.6 Key Business Segments 4.7 Public sector banks are still leading… 5. Retail Banking - An Indian Scenario 5.1 Introduction 5.2 Credit growth zooms 5.3 Segments of retail lending 5.4 Retail Credit: Geographical Spread (2005-06) 5.5 Category wise Distribution (2005-06) 5.6 Comparing India with global peers (2005) 5.7 Major players and their market share 5.7.1 ICICI a leader among private banks with 34% market share 5.7.2 SBI does the catching up 5.7.3 Geographic dominance (2006-07) 5.8 Recent Trends 5.8.1 Changing Demographic profile drives the growth 5.8.2 Players’ Response aggressively to the changing environment 5.8.3 NPA Level still favourable 6. Housing Finance 6.1 Introduction 6.2 Industry Structure 6.3 Housing loan disbursement zooms 6.4 Low interest rates push up home loan disbursement 6.5 Banks overtake HFCs in housing loan disbursements 6.6 Banks are aggressive on Refinancing as well 6.7 Changing age profile of borrowers 6.8 Higher loan-to-value ratio 6.9 Size of Home Loan 6.10Outlook 6.10.1 Housing loan as pe rcentage of GDP will touch 10% soon 6.10.2 Loan disbursement will rise up to the demand6.10.3 Banks’ dominance in funding will increase 6.10.4 Rising asset prices and frauds to pose challenge 7. Auto Finance 7.1 Introduction 7.2 Component-wise break-up 7.3 Segment-wise analysis 7.3.1 Cars 7.3.2 Multi-utility Vehicles 7.3.3 Two-wheeler sales crosses 7m 7.4 Driving factors 7.4.1 Entry of foreign car makers 7.4.2 Cheaper loans 7.4.3 Reduction in Taxes & Duties 7.5 Changing Business dynamics 7.6 Recent Trends 7.6.1 Upgradation is helping auto financier 7.6.2 Used Car Finance: Catching up fast 7.7 Major Challenges 7.7.1 Sustaining the growth rate 7.7.2 Need for innovation 7.7.3 Enhancement of share of auto component in global trade 7.8 Outlook 8. Consumer Durable Loans 8.1 Introduction 8.2 Consumer durable credit 8.2.1 Geographical Spread and Market share 8.2.2 Category wise Distribution 8.3 Competition pinches on consumer durable credit growth 8.4 Innovations in lending – Avenues for growth 8.5Commercial Banks are aggressively capturing market 8.6 Outlook 9. Educational loans 9.1 Introduction 9.2 Educational loans disbursement 9.3 Driving factors 9.4 Major Challenge in Education Loan 9.5 Outlook 10. Other Personal Loans 10.1 Introduction 10.2 Personal Loans: Geographical spread and Market share 10.3 Personal Loans Category wise Distribution 10.4 Bank lending is increasing 10.5 Competition propels Innovation 11. Credit Cards 11.1 Introduction 11.2 Growth: Card volume surges 11.3 Major Players: Who leads the Rally? 11.3.1 Private sector banks are more aggressive 11.3.2 ICICI Bank becomes market leader due to aggressive strategy 11.4 Industry Spend 11.5 Key Trends 11.6 Techology Spend 11.7 Role of Associations 11.8 Outlook 12. BanCASSURANCE 13. Regulatory watch 13.1 Introduction 13.2 Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 13.3 RBI increases CRR (cash reserve ratio) 13.4 Housing finance: Growing incidence of frauds 13.5 Banks can issue Capital Instruments In foreign currency 13.6 Basel II adoption may be deferred 13.7 Statutory Pre-emptions 13.8. Simplification of the Procedures and Processes for obtaining Agricultural Loans 13.9. Technical Group for Review of Legislations on Money Lending 13.10. Outlook 14. Issues/Challenges to Retail Banking in India 14.1 Introduction 14.2 Mandate to increase organic revenue growth through superior cross-sell and customer retention 14.3 Interest rate risk 14.4 Issue of money laundering 14.5 Competition in retail banking 14.6 The urge to merge 14.7 Impact of BASEL-II norms 14.8 Objection to outsourcing 14.9 Imbalance in bank C-D & I-D Ratio 14.10 Competition from Mutual Funds 14.11 Mobilisation of cheap deposits 14.12 Conclusion 15. THE FUTURE 15.1 Refocus customer relationships through technology and innovation 15.2 Enterprise CRM in Retail Banking 15.3 Fresh frontiers in Retail Operations 15.4 Micro Finance- an emerging opportunity 15.5 Budding opportunities in Non-agricultural rural credit 15.6 The shape of things to come 15.7 Conclusion 16. MAJOR BANK PROFILES 1. Andhra Bank 2. Axis Bank 3. Bank of Baroda 4. Bank of India5. Canara Bank 6. Centurion Bank of Punjab 7. Central Bank of India 8. Citibank 9. Deutsche Bank 10. HDFC Bank 11. HSBC 12. I D B I (Industrial Development Bank Of India) 13. Indian Bank 14. Indian Overseas Bank 15. ICICI Bank 16. ING Vysya Bank 17. Jammu & Kashmir Bank Ltd. 18. Saraswat Co-Operative Bank Ltd. 19. State Bank of India 20. Syndicate Bank 21. Union Bank of India 22. UCO Bank 17. REFERENCES List of Charts: Chart 3.2 Global banking assets Chart 3.3 Provisioning expenses (as a % of total average assets) Chart 3.6.1.1 US credit growth Chart 3.6.2 Household credit growth in Euro areas Chart 3.7.2.1 Retail penetration (as a % of GDP) Chart 3.7.2.2 Market loan penetration (as a % of GDP) Chart 3.7.2.3 Market loan penetration (as a % of GDP) Chart 3.7.2.4 Origin of expected profit growth Chart 3.7.2.5 Origin of expected revenue growth Chart 3.7.3 Household debt in Euro areas, UK & US Chart 4.4 Growth in major aggregates of SCBs Chart 4.4.1.1 Growth in bank deposits Chart 4.4.1.2 Growth in bank creditsChart 4.4.2 Movement of headline inflation during fiscal 2006-07 Chart 4.4.4 Composition of Indian Banking System Chart 4.7 Assets held by different banking groups Chart 5.2.1 Segment loan growth rate Chart 5.2.2 Retail finance growth in 2006-07 Chart 5.3 Retail loan segmental share in 2006-07 Chart 5.4.1 Retail credit distribution Chart 5.4.2 Retail credit vs. total credit Chart 5.5.1 Category wise distribution of retail credits in Nos Chart 5.5.2 Gender wise distribution of retail credit Chart 5.5.3 Distribution of retail credit as per amount Chart 5.5.4 Distribution of retail credit in numbers Chart 5.6.1 Loan as a percentage of GDP Chart 5.6.2 Consumer loans/ Total loans Chart 5.6.3 Mortgages/ GDP Chart 5.6.4 Credit card/ Population Chart 5.6.5 Other retail loans/ GDP Chart 5.7.1 Market share of banks based on retail disbursement (as on March 31, 2007) Chart 5.7.3.1.1 Retail credit market share (all India) Chart 5.7.3.1.2 Retail credit market share (Metropolitan) Chart 5.7.3.2.1 Retail credit market share Region wise (Urban, Semi-urban and Rural) Chart 5.8.1.1 Building an affluent customer group Chart 5.8.1.2 Trends in urbanisation Chart 5.8.1.3 Demographic transition Chart 5.8.3 Impaired credit as a percentage of outstanding loan Chart 6.3.1 Home loan disbursements Chart 6.4.1 Home loan distributions vs. interest rate Chart 6.5.1 Market share 2001-02 Chart 6.5.2 Market share 2006-07 Chart 6.9.1 Size wise classification of housing loan Chart 6.10.1 Projected housing loans as a percentage of GDP Chart 6.10.2 Projected demand & supply of housing finance Chart 6.10.3 Institution wise projected growth in housing finance Chart 7.1 Share of automobile sector in GDP Chart 7.2.1 Auto finance: Component and their estimated market share Chart 7.3.1.1 Growth patterns in cars & MUVs production Chart 7.3.3.1 Industry sales of two-wheelers Chart 7.4.2.1 Demand & supply w.r.t. interest rate Chart 7.6.1.1 Estimated car finance market in India Chart 8.2.1.1 Demographic spread of consume durable loan Chart 8.2.1.2 Market share of consumer durable loans (all India) Chart 8.2.1.3 Market share of consumer durable loans Region wise (semi-urban, Rural, urban and metropolitan) Chart 8.2.2 size wise market share of consumer durable loan Chart 8.3 Consumer durable industry growthChart 9.2.1 Education loan disbursement Chart 9.3.1 Education with economy Chart 9.3.2 Total number of recognized institute in India Chart 9.4.1 Number of accounts and amount disbursed by public sector banks Chart10.2.1 Market share of other personal loan (all India) Chart10.2.2 Market share of other personal loan (Rural) Chart10.2.3 Market share of other personal loan (Semi-urban) Chart10.2.4 Market share of other personal loan (Semi-urban) Chart10.2.5 Market share of other personal loan (Urban) Chart10.2.6 Market share of other personal loan (Metropolitan) Chart 10.3.1 Size wise market share of other personal loan Chart 10.3.2 Type wise market share of other personal loan Chart 11.2.1. Credit cards issued Chart 11.3.1.1 Analysis in terms of MNC, private & public sector players Chart 11.3.2.1 Market share by no. of cards as on Mar, 07 Chart 11.3.2.2 Market share by no. of cards as on Mar, 08(e) Chart 11.4.1 Share in spend for FY07 Chart 11.6.1 No. of ATMs Chart 11.6.2 Retail electronics and card based payments in terms of value Chart 12.2 Various Stages of Bancassurance Chart 12.3.1 Distribution Models of Bancassurance in India Chart 12.3.2 Contribution of Bancassurance to total premium collected (Private players) Chart14.9.1 C-D & I-D ratios of scheduled commercial banks Chart 15.4.2 Number of SHGs (in '000) Chart 15.4.3 Bank loans to SHGs Chart 15.6.1 Credit portfolio in FY07 Chart 15.6.1 Credit portfolio in FY10 (e) List of tables: Table 5.8.1Changing consumer demographics Table 6.3 Growth factors Table 7.1 Indian Car Finance Industry: Snapshot Table 7.5 Indian Automobile Finance Industry Transformation Table 8.3 Expected sales growth in White goods Table 8.4 Obstacle in consumer durable finance Table 9.1 Educational Loans: Snapshot Table 9.3 Factors contributing to the growth of education loans Table 10.1 Personal Loan: At a glance Table 11.1 Credit card statistics-different countries Table 11.3.2 Position of different banks for issuing credit cards Table 12.3.2 List of different insurance companies & their respective banking partners Table 16.1: Major Banks and Their Retail Loan Book Position (FY06 and FY07) Table 16.2: Andhra Bank at a glance Table 16.3: Axis Bank at a glance Table 16.4: Bank of Baroda at a glance Table 16.5: Bank of India at a glance Table 16.6: Canara Bank at a glance Table 16.7: Punjab National Bank at a glance Table 16.8: Central Bank of India at a glance Table 16.9: Citi Bank at a glance Table 16.10: Deutsche Bank at a glance Table 16.11: HDFC Bank at a glance Table 16.12: HSBC BANK at a glance Table 16.13: I D B I at a glance Table 16.14: Indian Bank at a glance Table 16.15: Indian Overseas Bank at a glance Table 16.16: ICICI BANK at a glance Table 16.17: ING Vysya Bank at a glance Table 16.18: Jammu & Kashmir Bank Limited at a glance Table 16.19: Saraswat Co-Operative Bank Ltd. at a glanceTable 16.20: State Bank of India at a glance Table 16.21: Syndicate Bank at a glance Table 16.22: Union Bank of India at a glance Table 16.23: UCO Bank at a glance List of Figures: Figure 4.6: Key Business segments in SCBs Figure 6.2: Key Business segments in NHB Figure 12.2: Various stages of Bancassurance List of Abbreviations: ACMA Auto Component Manufacturers Association BISBank of international Settlement CAGRCompounded Annual Growth Rate CIBIL Credit Information Bureau of India Ltd C-D RatioCredit Deposit Ratio CRM Customer Relationship Management FTAsFree Trade AgreementsFYFinancial Year HFCs Housing Finance Companies IPDIInnovative Perpetual Debt Instruments GDP Gross Domestic Product I-D Ratio Investment Deposit Ratio m Million MFIs Micro Finance Institutions MUVs Multi Utility Vehicles NBFCs Non-Banking Financial Companies NHB National Housing Bank OEMs Original Equipment Manufacturers POS Point of sales PSBs Public Sector Banks RSV Retail Sales Volume SCB Scheduled Commercial Banks SHGs Self Help Groups tn Trillion VCFs Venture Capital Funds WTO World Trade Organisation