Banks offer innovative, customized products to attract the smaller borrowers. Most of the banks are trying to enhance the percentage of credit to retail customer in their total credit portfolio. In such a scenario, customers are getting the benefits in terms of lower interest rate, easy access to loan funds etc.

Today, Indian banks have come to know that it is the retail customer who can provide oxygen in the long run. Non-performing assets in this sector are very low when compared to heavy industry or small and medium size industry. Net margin is also high. These advantages are attracting the banking industry to chase the retail customers.

To impart convenience to customers, banks provide many innovative facilities like ATMs, anywhere banking, Internet banking and new/customized products etc. These facilities have radically altered the face of the Indian banking environment. To strengthen the delivery channels private sector banks use the franchise route, through which they can reach each and every corner of the country. This is the only route where banks can capture the higher market share in retail segment without opening large number of branches.

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