The British major Barclays has made an entry into Indian retail banking market. Barclays is in function in Indian market as investment banking in the name of Barclays Capital. The experts are saying that this is not the best time to make an entry in to India’s crowded retail banking because profitability is taking a hit, interest rates are going up and the cases of loan defaults are being increased.

The bank has launched a wide range of credit cards, personal loans, business installment loans and investment plans as well as no-frills accounts, with a zero-balance requirement, savings accounts just to target people in small towns and cities.

However, Barclays is looking firm as it has targeted the entire market from the lower end to the upper end. According to the Frits Seegers, chief executive (global retail and commercial banking), Barclays, the bank believes that there is a wide hope to issue range of services to all clients.

The data says that there are only 63 branches per million in India and Barclays can play a big role in Indian market. It has planned just to reach at the lower end of the market through introducing micro finance initiatives in India.

The 300-year old bank, which was the first to launch ATMs, wants to reinvent banking in India. Ahmed Khizer Khan, CEO (emerging markets), Barclays, said that India is the crown crystal in terms of size and opportunity.

Barclays believes that there is cut throat competition in Indian retail banking market as various foreign banks such as ABN Amro, HSBC, StanChart, Amex have been entered into some of the retail segments like auto loans. At present, Barclays has three working branches at Mumbai, Neelamangala (Karnataka) and Kanchipuram (Tamil Nadu).

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