Strategic Analysis of Bank Industry

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  • Topic: Bank, Commercial bank, Retail banking
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  • Published : February 12, 2013
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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 Framework.................................................................................................. 7 Current Strategy Followed.................................................................................................................. 9 Problems........................................................................................................................................... 13 Way Forward – SBI............................................................................................................................ 16 Way Forward – HDFC........................................................................................................................ 19 References........................................................................................................................................ 24 Annexure.......................................................................................................................................... 25

History of Banking in India................................................................................................... 25
History of SBI........................................................................................................................ 28
History of HDFC.................................................................................................................... 36
Financials...................................................................................................................... 37

Introduction
The Indian Banking Industry is at the cusp of an interesting revolution. Rather many would say it has already begun the roller-coaster ride that will decide the path that the Indian economy will chart in the years to come. The most interesting facet of this revolution is the positioning of Indian Banking Industry with respect to its global counterparts. With the developed world already past it’s hey days and the two Asian giants succinctly moving on...
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