Strategic Analysis of Bank Industry
Banking Industry
Strategic Management
2012
3/27/2012
Executive Summary
Banking Industry is the chief indicator of the growth of any country’s economy. India with its huge populations presents a huge scope for banking industry. State Bank of India is a public sector unit and enjoys the market leader position. HDFC is catching up on the back of its exquisite growth in last decade. And with the relaxation of government control, private players are in a much better position to compete. But both the banks have their own problems
SBI has to undertake several government duties which lead to huge labour and high number of non-performing assets. HDFC
Moving ahead, SBI has to increase its reach in rural areas, Aadhar and PDS provides an ideal opportunity. SBI has another advantage of huge CA/SA accounts and it is best suited to fund large projects. But with liberalization and increase in living standards, SBI has to come out of its comfort zone and would have to start delivering better services.
HDFC follows a customer centric approach and could start a Customer loyalty program to attract more business. It could also start “Mobile Wallet” Services to better serve the customers. But one area which presents huge opportunity is the SME sector, which is currently not been targeted by any banks and has huge potential.
Table of contents
Introduction.......................................................................................................................................... 1
Market Leader – SBI............................................................................................................................. 2
Market Follower – HDFC...................................................................................................................... 3
Industry Analysis.................................................................................................................................. 4
Generic Decision Making
Strategic Management
2012
3/27/2012
Executive Summary
Banking Industry is the chief indicator of the growth of any country’s economy. India with its huge populations presents a huge scope for banking industry. State Bank of India is a public sector unit and enjoys the market leader position. HDFC is catching up on the back of its exquisite growth in last decade. And with the relaxation of government control, private players are in a much better position to compete. But both the banks have their own problems
SBI has to undertake several government duties which lead to huge labour and high number of non-performing assets. HDFC
Moving ahead, SBI has to increase its reach in rural areas, Aadhar and PDS provides an ideal opportunity. SBI has another advantage of huge CA/SA accounts and it is best suited to fund large projects. But with liberalization and increase in living standards, SBI has to come out of its comfort zone and would have to start delivering better services.
HDFC follows a customer centric approach and could start a Customer loyalty program to attract more business. It could also start “Mobile Wallet” Services to better serve the customers. But one area which presents huge opportunity is the SME sector, which is currently not been targeted by any banks and has huge potential.
Table of contents
Introduction.......................................................................................................................................... 1
Market Leader – SBI............................................................................................................................. 2
Market Follower – HDFC...................................................................................................................... 3
Industry Analysis.................................................................................................................................. 4
Generic Decision Making
References: Indian Express Newspaper Khera, Reetika (2010): “India’s Public Distribution System: Utilisation and Impact”, Journal of Development Studies, Vol 47. * The Reserve Bank of India, India 's central banking authority, was established in April 1934, but was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act (1948).