Indian banking has undergone a sea change in the last decade. Due to the problems associated with bulk lending, banks are stressing on retail segment. The retail banking has now become a sustainable business model.

Banking industry in India has passed through several stages of change during the past few decades. The traditional system of lending only to the trading communities has undergone changes after nationalization and social banking has taken its root. Mass banking was the order of the day in the 1980s. After globalization many foreign banks and new private banks have entered into the arena of Indian banking. We could see a shift from mass banking to class banking in the beginning of the last decade. Due to stringent rules regarding NPAs the banks were engaged in cleaning up their balance sheet at the end of the last century. Compromise, writing off huge balances, waiver of interest amount were the order of the day. Even the RBI had brought out few One Time Settlement (OTS) schemes. After these developments banks realized that lending to the big industries or blocking huge funds in a particular segment or lending in bulk is no longer safe. In other words, the old saying "Do not keep all the eggs in a single basket" has gained importance and banks started looking for some new ways and means to spread the risk instead of concentrating the lending risk. This paved the way for massive expansion under retail lending

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