The existing potential of retail banking in untapped rural and semi-urban areas and hitherto untapped clientele provides a good and vast opportunity for growth in the segment.Retail banking is not a new concept for the industry, as banks have been financing this segment since its inception. However, the growth in retail banking has escalated dramatically for the past 10-12 years due to various factors.

Retail banking refers to the dealings of a bank with its individual customers. The dealings include both deposits and advances. The deposits maybe in the form of fixed deposits, term deposits, current/ savings accounts. The advances include housing loans, consumer loans, personal loans, mortgage loans, educational loans, etc. In addition to the above, there are certain ancillary services in the form of credit cards, insurance, depository services, etc.