Retail Banking (Functional Electives Finance)

Paper Code: 
MBF-524
Credits: 
4.0
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
8.00
Unit I: 
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. Using the Web as a channel to deliver customer value in retail banking.

6.00
Unit II: 
Retail Banking Products and Services

Deposit services-types of accounts, Payment services, Retail credit, Housing / auto/consumer/ personal loans / SME credit/ Micro credit. Retail Banking Delivery Channels: Branches, Self-service terminals, Mobile services, On-line services, Wireless services

10.00
Unit III: 
Different categories of retail lending

Consumer Loans, Housing Loans, Car Loans. Overview of appraisal and sanction, processing, monitoring, security and documentation procedures.

6.00
Unit IV: 
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.

10.00
Unit V: 
Managing Risks in Retail Banking

Basic knowledge of Market risk (e.g., 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: 

  •  Achieving Excellence in Retail banking, John Wiley and Sons, Reinhold Leichtful,2009.

  • The Future of Retail Banking: Delivering Value to Global Customer: Books: Joseph A. DiVanna by Joseph A. DiVanna.2008.

  • Retail Banking - Emerging Trends: N Rajashekar, ICFAI University Press Hyderabad,2008.
References: 
  1. IIBF, Risk Management, Macmillian, 2007.
  2. Prasad K Nirmala and Chandras, banking and Financial System, 2006.
  3. Successful Web Portals in Retail Banking by Daniel Singer, Douglas Ross and Albert Avery John Wiley & Sons, 2006.
  4. Banking Theory Law and Practice, Dr. S. Gurusamy, McGraw Hill, Education, 2007.