Retail Banking

Paper Code: 
MBF-524
Credits: 
4
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 

• This course is designed for preparing the professionals to serve the financial services industry, and it will provide them with a fundamental understanding of the retail banking industry on completion of this course
• Explain customer needs met by retail banks
• Identify different types of banks and other financial institutions
• Describe the retail banking products and services offered by banks
• Discuss retail banking delivery channels used by banks
• Recognize risks facing retail banks and techniques used to manage these risks

9.00
Unit I: 
Retail Banking

Retail Banking: An Introduction
Meaning, Characteristics, Advantages and Constraints. Understanding Customer needs for Retail Banking – Maslow’s Theory and Customer Requirements, Customer perceptions about service quality. KYC norms. Difference between Retail Banking and Corporate/Wholesale Banking.

8.00
Unit II: 
Retail Banking Products and Services

Retail Banking Products and Services
Deposit services-types of accounts, Payment services. Retail Banking Delivery Channels: Branches, Self-service terminals, Mobile services, On-line services, Wireless services, Digital Wallets.

8.00
Unit III: 
Different categories of retail lending

Different categories of retail lending
Consumer Loans, Housing Loans, Car Loans, SME credit/ Micro Credit. Customer Relationship Management in Retail Banking. Credit Scoring.

8.00
Unit IV: 
Recovery of Retail Loans

Recovery of Retail Loans
Defaults in Retail Loan, Types of Defaults. Recovery Process – Recovery Policy, Recovery Agents. The Securitization and Reconstruction of Financial Assets & Enforcement of Security Interest (SARFAESI) Act – Main Provisions, Methods of Recovery of NPAs.

7.00
Unit V: 
Managing Risks in Retail Banking

Managing Risks in Retail Banking
Basic knowledge of Interest rate risk, Prepayment risk, Credit risk, Liquidity risk, Operational risk, Political/regulatory risk. Making Money in Retail Banking: Sources of revenue, Sources of expense.

Essential Readings: 

• Reinhold Leichtful, Achieving Excellence in Retail banking, John Wiley and Sons, 2009.
• Joseph A. DiVanna, The Future of Retail Banking: Delivering Value to Global Customer, Palgrave Schol, 2008.
• N Rajashekar, Retail Banking - Emerging Trends, ICFAI University Press, Hyderabad, 2008.

References: 

• IIBF, Risk Management: CAIIB, Macmillian, 2010.
• Daniel Singer, Douglas Ross and Albert Avery, Successful Web Portals in Retail Banking, John Wiley & Sons, 2006.
• Dr. S. Gurusamy, Banking Theory: Law and Practice, McGraw Hill Education, 2nd Edition, 2009.

Academic Year: 
2019-2020
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