Pest Analysis for Bank

Pestel analysis : Banking sectorPresentation Transcript * 1. PESTEL ANALYSIS- BANKING SECTOR ABHINAV SAINI AKANKSHYA BISHWAL BIPIN KUMAR GAURAV SHARMA PANKIT MAHENDRU RISHIKA MAHESHWARI * 2. The banking system remains, as always, the most dominant segment of thefinancial sector. Indian banks continue to build on their strengths under theregulators watchful eye and hence, have emerged stronger. The banking sector in India has made significant progress in the last five years –the growth is well reflected through parameters including profitability, annual creditgrowth, and decline in non-performing assets (NPAs) Growth in the sector has been favoured by factors including low defaulterratio, strong economic growth, central bank’s regular intervention and pre-emptiveadjustment of monetary policy. The policy makers for the banking sector, which comprise the Reserve Bank ofIndia (RBI), Ministry of Finance and related government and financial sectorregulatory entities, have made several notable efforts to improve regulation in thesector * 3. WHAT IS PESTEL ANALYSIS * 4. To what degree a government intervenes in the economy. Ex-taxpolicy, labour law, environmental law, traderestrictions, tariffs, and political stability Some of the major political factors affecting the Bankingindustry are :• Focus on regulation of government• Budget and budget measures• Foreign Direct Investment limits * 5. • Indian banking sector is least affected as compared to other developed countries- thanks to robust policy framework of RBI.• Government affects the performance of banking sector most by legislature and framing policy government through its budget affects the banking activities securitization act has given more power to banking sector against defaulting borrowers.• Stricter prudential regulations with respect to capital and liquidity gives India an advantage in terms of credibility over other countries.• To support capitalisation, the government has infused Rs