PEST & POTER Analysis of State Bank of India
State Bank of India
SUBJECT : PEST & POTER Analysis of State Bank of India
This assignment’s main objective is to provide PEST and POTER’s five force analysis.The service provider ‘State Bank of India’ is the subject of investigation in this assignment.State Bank of India is a well know financial provider in banking industry and is an state owned entity. SBI is a regional banking behemoth and is one of the largest financial institutions in the world.
PEST ANALYSIS
PEST analysis stands for “Political, Economic, Social and Technological analysis” and describes a framework of macro environmental factors used in the environmental scanning component of strategic management.
Political Analysis
The expected integration of various intermediaries in the financial system would require a strong regulatory framework . It would also require a number of legislative changes to enable the banking system to remain contemporary and competitive.The principal governing body of all financial providers in India is RBI(Reserve Bank of India) and SEBI (Securities and Exchange Board of India ). SBI has to always adjust with the new policies regulated by RBI & SEBI , sometimes it leads to uncomfortable situations , not only for SBI but other financial providers.
For example : RBI’s guidline to limit banks ' exposure to their own group non- financial and financial entities. Such guidlines lead to credit negative for group companies that rely on parent banks for capital and brand support. Frequent changes in interest rates to manage inflation. There is also rifts between RBI and SBI over high percentage of CRR . International legislations like BASEL II and policies of IMF also effect the bank to a certain extent.
Though being a public sector bank SBI enjoys surplus funds
SUBJECT : PEST & POTER Analysis of State Bank of India
This assignment’s main objective is to provide PEST and POTER’s five force analysis.The service provider ‘State Bank of India’ is the subject of investigation in this assignment.State Bank of India is a well know financial provider in banking industry and is an state owned entity. SBI is a regional banking behemoth and is one of the largest financial institutions in the world.
PEST ANALYSIS
PEST analysis stands for “Political, Economic, Social and Technological analysis” and describes a framework of macro environmental factors used in the environmental scanning component of strategic management.
Political Analysis
The expected integration of various intermediaries in the financial system would require a strong regulatory framework . It would also require a number of legislative changes to enable the banking system to remain contemporary and competitive.The principal governing body of all financial providers in India is RBI(Reserve Bank of India) and SEBI (Securities and Exchange Board of India ). SBI has to always adjust with the new policies regulated by RBI & SEBI , sometimes it leads to uncomfortable situations , not only for SBI but other financial providers.
For example : RBI’s guidline to limit banks ' exposure to their own group non- financial and financial entities. Such guidlines lead to credit negative for group companies that rely on parent banks for capital and brand support. Frequent changes in interest rates to manage inflation. There is also rifts between RBI and SBI over high percentage of CRR . International legislations like BASEL II and policies of IMF also effect the bank to a certain extent.
Though being a public sector bank SBI enjoys surplus funds