Products and Growth of Indian Retail Banking

Retail Banking in India is imperative for the fact that it contributes for economic growth and provides faster results than many other means. The question on whether retail banking boom has paused is often in the air due to global recession and its impact on Indian economy. Continued raising NPAs in the sector coupled with decreasing net interest margins, necessitating commercial banks shift focus from lending to investment activities. On the other hand, the discussion on the size, growth and direction of retail banking is worth mentioning in the era of modern banking and policy initiatives for financial inclusion. This article describes the importance of retail banking in Indian economy, its features, growth across products and product lines, and concludes with the challenges in lending.