Retail Loan Trends over Last Decade & Study of Factors Affecting Them | Original Article

ABSTRACT:

Retail Banking remains one of the niche segments of Banking Industry. It basically caters to providing banking services to Micro Small and medium Term Enterprises (MSME’s) and Individuals. Interest Based and Non Interest based financial services are provided over to customers as means to generate net income to the bank. Accepting Deposits and granting loans to and from customer provide interest incomes, which are often their main stay of Net income generated. Retail loans and their customer preferences have been subject to changes with changes in social environment, change in demographics, change in family patterns and increase or decrease in people’s purchasing power and several other factors over the last two decades since liberalization of Indian economy. The Objective of this chapter is to study the trend analysis of retail loan values outstanding by the Public Sector Bank’s over last decade 2007-2017 and highlight what are the factors that are causing the aforesaid trends. The study shall conclude by highlighting the future outlook and necessary recommendations to bank for necessary actions to provide synergy in retail loan facilities, factors affecting them and customer needs.