BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Banks Private sector Banks Foreign Banks in India

Regional Rural Bank

(28) (27) (29) (102) Nationalized Bank Other Public Sector

Banks (IDBI) SBI and its Asso-

ciates

Old Private Banks New Private

Banks

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks (55)

Scheduled State Cooperative Banks (31)

Here we more concerned about private sector banks and competition among them. Today, there are

27 private sector banks in the banking sector: 19 old private sector banks and 8 new private sector

banks.

These new banks have brought in state-of-the-art technology and aggressively marketed their

products. The Public sector banks are facing a stiff competition from the new private sector banks.

The banks which have been setup in the 1990s under the guidelines of the Narasimham Committee

are referred to as NEW PRIVATE SECTOR BANKS.

INTRODUCTION

The banking section will navigate through all the aspects of the Banking System in India. It will

discuss upon the matters with the birth of the banking concept in the country to new players

adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and

top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three

separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well explained

under three different heads namely:

History of Banking in India

Nationalization of Banks in India

Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took

major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks

in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but

not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of

RBI Act 1934 lays down the condition of scheduled commercial banks. The descriptions along

with a list of scheduled commercial banks are given on this page.

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy economy. The

banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its

credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of

the country. This is one of the main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the

nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or

for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient

bank transferred money from one branch to other in two days. Now it is simple as instant

messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the

journey of Indian Banking System can be segregated into three distinct phases. They are as

mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking

Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay

(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank of India was established which started

as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National

Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of

India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore

were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures

between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the

functioning and activities of commercial banks, the Government of India came up with The

Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per

amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive

powers for the supervision of banking in India as the Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath deposit

mobilization was slow. Abreast of it the savings bank facility provided by the Postal department

was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In 1955,

it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially

in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI

and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,

1969, major process of nationalization was carried out. It was the effort of the then Prime

Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was

nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with

seven more banks. This step brought 80% of the banking segment in India under Government

ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in

the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to

approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense

confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his

name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a

satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis

triggered by any external macroeconomics shock as other East Asian Countries suffered. This is

all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not

yet fully convertible, and banks and their customers have limited foreign exchange exposure.

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits

and limitations in operating in India. Each has their own dedicated target market. Few of them

only work in rural sector while others in both rural as well as urban. Many even are only catering

in cities. Some are of Indian origin and some are foreign players.

All these details and many more is discussed over here. The banks and its relation with the

customers, their mode of operation, the names of banks under different groups and other such

useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI has

shown certain interest to involve more of foreign banks than the existing one recently. This step

has paved a way for few more foreign banks to start business in India.

Major Banks in India

ABN-AMRO Bank

Abu Dhabi Commercial Bank

American Express Bank

Andhra Bank

Allahabad Bank

Bank of Baroda

Bank of India

Bank of Maharastra

Bank of Punjab

Bank of Rajasthan

Bank of Ceylon

BNP Paribas Bank

Canara Bank

Catholic Syrian Bank

Central Bank of India

Centurion Bank

China Trust Commercial Bank

Citi Bank

City Union Bank

Corporation Bank

Dena Bank

Deutsche Bank

Development Credit Bank

Dhanalakshmi Bank

Federal Bank

HDFC Bank

HSBC ICICI Bank

IDBI Bank

Indian Bank

Indian Overseas Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

JPMorgan Chase Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Vilas Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab & Sind Bank

Scotia Bank

South Indian Bank

Standard Chartered Bank

State Bank of India (SBI)

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Saurastra

State Bank of Travancore

Syndicate Bank

Taib Bank

UCO Bank

Union Bank of India

United Bank of India

United Bank Of India

United Western Bank

UTI Bank

Fact Files of Banks in India

The first, the oldest, the largest, the biggest, get all such types of information’s about Banking in

India in this section.

The first bank in India to be given an ISO Certification Canara Bank

The first bank in Northern India to get ISO 9002 certification for

their selected branches

Punjab and Sind

Bank

The first Indian bank to have been started solely with Indian

capital

Punjab National

Bank

The first among the private sector banks in Kerala to become a

scheduled bank in 1946 under the RBI ActSouth Indian Bank

India's oldest, largest and most successful commercial bank,

offering the widest possible range of domestic, international and

NRI products and services, through its vast network in India and

overseas

State Bank of India

India's second largest private sector bank and is now the largest

scheduled commercial bank in India

The Federal Bank

Limited

Bank which started as private shareholders banks, mostly

Europeans shareholders

Imperial Bank of

India

The first Indian bank to open a branch outside India in London in

1946 and the first to open a branch in continental Europe at Paris

Bank of India,

founded in 1906 in

in 1974 Mumbai

The oldest Public Sector Bank in India having branches all over

India and serving the customers for the last 132 yearsAllahabad Bank

The first Indian commercial bank which was wholly owned and

managed by Indians

Central Bank of

India

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a branch

outside India in London in 1946 and the first to open a branch in continental Europe at Paris in

1974.

PUBLIC SECTOR BANKS

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks,

which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United

Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Camilla

Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Camilla Union Bank Ltd.

(1922) and Hooghly Bank Ltd.(1932).

Oriental Bank of Commerce (OBC), Government of India Undertaking offers Domestic,

NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in

Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This

Public Sector Bank India has implemented 14 point action plan for strengthening of credit

delivery to women and has designated 5 branches as specialized branches for women

entrepreneurs.

The following are the list of Public Sector Banks in India

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharastra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

State Bank of India

o State Bank of Bikaner & Jaipur

o State Bank of Hyderabad

o State Bank of Indore

o State Bank of Mysore

o State Bank of Saurastra

State Bank of Travancore

INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets expected to reach

US$1 trillion by 2010. An expanding economy, middle class, and technological innovations

are all contributing to this growth.

The country’s middle class accounts for over 320 million People. In correlation with the

growth of the economy, rising income levels, increased standard of living, and affordability of

banking products are promising factors for continued expansion.

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1

trillion by 2010. An expanding economy, middle class, and technological innovations are all

contributing to this growth.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the expan-

sion of retail and rural banking. Players are becoming increasingly customer - centric in

their approach, which has resulted in innovative methods of offering new banking products and

services. Banks are now realizing the importance of being a big player and are begin-

ning to focus their attention on mergers and acquisitions to take advantage of economies

of scale and/or comply with Basel II regulation.“Indian banking industry assets are ex -

pected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign cap-

ital,” says Prathima Rajan, analyst in Celent's banking group and author of the report. “The

banking industry should focus on having a small number of large players that can compete glob-

ally rather than having a large number of fragmented players."

State Bank of India is the largest bank in India. It is also, measured by the number of branch of-

fices and employees, the second largest bank in the world.[citation needed] The bank traces its

ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of Cal-

cutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of In-

dia nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60%

stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held

by the Reserve Bank of India.SBI provides a range of banking products through its vast network

in India and overseas, including products aimed at NRIs. With an asset base of $126 billion and

its reach, it is a regional banking behemoth. SBI has laid emphasis on reducing the huge man-

power through Golden handshake schemes and computerizing its operations.The State Bank

Group, with over 16000 branches , has the largest branch network in India. It has a market share

among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for

almost one-fifth of the nation’s loans.There are some other banks which gives challenging some

how in the banking and service sectorthey are:

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

IDBI Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

Opportunity Matrix

A Marketing opportunity is an area of interest in which a company can perform

profitably. An opportunity can take many forms. Some of them are:

1) Buying process made easy- Internet shopping

2) Meet the information needs of the customers in a better way.

3) A company can customize the product which was originally offered in standard form.

The opportunities that fall under the first quadrant are higher on the side of success

probability and also on the attractiveness, so the company should tap those opportunities

as early as possible.

The opportunities falling under the second quadrant should be

tapped only after the success of the opportunities in the first quadrant. Although the

success probability is on the lower side still the attractiveness is on the higher side.

The opportunities in the third quadrant are less important as compared to the

opportunities in the first and second quadrant. Although the attractiveness is on the lower

side but the success probabilities of these opportunities are on the higher side.

The opportunities in the fourth quadrant are negligible as the success probability and

attractiveness both are on the lower side

Threat Matrix.

An Environmental Threat is a challenge posed by an unfavourable trend or development.

In the absence of any defensive marketing action these threats may lead to deterioration

in sales and indirectly in the profits of the company.

The Threats falling under the first quadrant are harmful to the progress of the firm.

Their occurrence probability and also the seriousness is on the higher side. Therefore the

company should take immediate actions against these threats.

The Threats falling under the second quadrant are also very harmful as their seriousness

of these threats is on the higher side, although the probability occurrence is on the lower

side.

The Threats coming under the third quadrant are less serious as compared to the threats in

the first and second quadrant. The company should keep a backup plans for these threats

as this can also affect the profitability of the company.

The Threats under the fourth quadrant are negligible as the probability occurrence and

seriousness both are on the lower side of the matrix.

RESEARCH METHODOLOGY

Data Collection Techniques:

This project consists of two parts.

The first part is a study of the banking industry, SBI using secondary data sources. This

secondary information has been sourced from the internet and from business related magazines

and newspapers.

The second part of the study has been done using an exploratory research process and a

structured questionnaire was developed for this purpose. For the collection of primary data this

was the only method used. The reason I used this method is because a need was felt for the free

influx of information about the products. Also this method allowed the use of skills gained in

class.

Sample Design:

The population considered for the purpose of the survey was people residing in Delhi and the

National Capital Region (NCR).

Sampling Technique Used:

Since the information required was not of a very technical nature and also looking at the scope of

the project and the extent of the target segment, the sampling technique employed was

Convenience Sampling. I administered the questionnaires.

Sample Size:

I have restricted the sample size to 50 respondents. This was done keeping in mind the time

constraints and the fact that I felt that this number would be enough to serve the information

needs required to show the trends.

Customer Satisfaction:

Customer satisfaction is equivalent to making sure that product and service performance meets

customer expectations. It is the perception of the customer that the outcome of a business

transaction is equal to or greater than his/her expectation. Customer satisfaction occurs when the

acquisition of products and /or services provides a minimum negative departure from

expectations when compared with other acquisitions and when the marginal utility of a

transaction is equal to or greater than preceding acquisitions.

Customer satisfaction occurs when the perception of the reward from the purchase of goods or

services by the customer meets or exceeds his/her perceived sacrifice. The perception is a

consequence of matching past purchase and consumption experience with the current purchase.

Customer Service and Satisfaction:

When we talk about customer service and/or satisfaction, we talk about creativity. Creativity

allows us to handle or diffuse problems at hand or later on rather in the process of conducting the

everyday business. We talk about how, or what, does the organization have to do to gain not only

the sale but also the loyalty of the customer. We want to know the payoff of the transaction both

in the short and long term. We want to know what our customers Want? We want to know if our

customers are satisfied. Satisfaction, Of course, means that what we delivered to a customer met

the customer’s Approval. We want to know if customers are delighted and willing to come

Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in their writings.

Fleiss has written about Ben and Jerry’s ice cream and Feldman has discussed excellence in a

cab ride. As important as delightfulness is, some of us minimize it, or even totally disregard it.

At this point, we fail. Some of the issues that will guarantee failure in sales, satisfaction, and

loyalty are:

Employees must adhere to a rigid chain of command

Employees are closely supervised

Conflict—in whatever form—is not allowed

Rewards are based on carrot-and-stick principles

Wrong objectives are measure.

We must understand customer expectation levels concerning quality. We must also understand

the strategy for customer service quality, and next we must understand the measurement and

feedback cycles of Customer satisfaction.

The customer is the person or unit receiving the output of a process on the system. In fact, it is

worth emphasizing that a customer can be the immediate, intermediate, or ultimate customer.

Also, a customer may be a person or persons, or a process or processes. Customer satisfaction,

however, is when the customer is satisfied with a product/service that meets the customer’s

needs, wants, and expectations.

There are at least three levels of customer expectations about quality:

Level 1. Expectations are very simple and take the form of assumptions, must have, or take it for

granted. For example, I expect the airline to be able to take off, fly to my destination, and land

safely. I expect to get the correct blood for my blood transfusion and I expect the bank to deposit

my money to my account and to keep a correct tally for me.

Level 2. Expectations are a step higher than that of level 1 and they require some form of

satisfaction through meeting the requirements and/or specifications. For example, I expect to be

treated courteously by all airline personnel. I went to the hospital expecting to have my hernia

repaired, to be in some pain after it was done, to be out on the same day, and to receive a correct

bill. And I went to the bank expecting the bank teller to be friendly, informative, and helpful with

my transactions.

Level 3. Expectations are much higher than for levels 1 and 2. Level 3 requires some kind of

delightfulness or a service that is so good that it attracts me to it. For example, an airline gives

passengers traveling coach class the same superior food service that other airlines provide only

for first-class passengers. In fact, I once took a flight where the flight attendants actually baked

cookies for us right there on the plane. When I went to the hospital, I expected staff to treat me

with respect and they carefully explained things to me. But I was surprised when they called me

at home the next day to find out how I was doing. And at my house closing, the bank officer,

representing the bank holding my mortgage, not only treated me with respect and answered all

my questions about my new mortgage, but just before we shook hands to close the deal, he gave

me a housewarming gift.

Customer satisfaction surveys help to:

Improve customer, client, or employee loyalty.

React quickly to changes in the market.

Identify and capitalize on opportunities.

Beat the competition.

Retain or gain market share.

Increase revenue.

Reduce costs.

Data Analysis

1. WHICH OF THE FOLLOWING ATTR IBUTES COMPELLED YOU To

MOST OPEN SAVING ACCOUNT IN ANY BANK?

37%

17%15%

21%

10%

People Like To Open an A/c

ATMCHEQUE BOOKInternet Bankingworking HourValue added Services

2:-Which TYPE OF SERVICE PREFERS THE MOST by you?

50%

20%

15%

5%10%

services prefer most by customer

ATMNet BankingCore BankingMobile Banking Retail Banking

3:-Which of following banks do you have account?

SBI ICICI Axis Hdfc Others0

5

10

15

20

25

20

11

86

5

Customer Having Bank A/C

Customer Having Bank A/C

4:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK?

Saving Current Fixed Deposit Others0

10

20

30

40

50

60

50

10

43

12

Customer Having A/C

Customer Having A/C

5:-How many services offered by your banks have been Used By you?

Demat A/C Matual Fund E- tasaction LI & GI0

5

10

15

20

25

30

35

40

45

50

19

27

22

47

Customer Using Services Offered by Their Bank

Customer Using Services Offered by Their Bank

6:-How would you know about these services?

Adtiesment36%

Friends & Relative29%

Selling agent21%

Others14%

Awareness

7:-What the people think about the Banks?

49%

33%

7% 11%

People Think About BankSecurity Saving Imposition of a burden of expenses Others

8:-What a respondent see in purchase of new plan from Banks?

Standing and goodwill of the company

41%

Product range of the company13%

Services being given by the company

28%

Advertisement being released by

the company18%

Peope See In Perchasing New Plan

(SBI) is the largest public sector bank in India

SBI has branches and ATMs all over India, details of which are available at their web-

site. State Bank of  Hyderabad, State Bank of  Patiala, State Bank of  Saurashtra, State

Bank of  Bikaner and Jaipur ,State Bank of  Indore, State Bank of  Mysore and State

Bank of  Travancore are the seven subsidary banks of  SBI. As of March 2006, SBI hold-

ing in these banks varies from 74% to 100% , but is likely to decrease in future. SBI has

one of the largest network of  ATMs in the Asia Pacific region. Many branches of  State

Bank of India are computerized. In places where the Reserve Bank of India, (RBI) the

central bank of India does have an office, SBI carries out many of its functions. SBI tim-

ings vary according to location, for example the Powai, Mumbai branch of State Bank

of India is open between 10.15 am to 2pm (Monday-Friday

You can open a public provident fund (PPF) account at any State Bank of India branch.

PPF accounts are one of the few savings instruments which offer a high tax free interest

rate of 8% per year. All deposits made on or before 5th of  a month earn interest for the

entire month. If you deposit a cheque in your PPF account on the 5th of  the month, you

will get interest for the month, though your account may be debited at a later date. The

interest is credited to the account at the end of the accounting year in India.

If you know an agent who is registered with that particular branch of State Bank , he will

pay you back, a part of the commission he receives from the bank. So you can get back

0.5% - 0.6% of the amount deposited immediately by cash. Usually larger the amount,

the higher the commission paid back by the agent (it is negotiable) . The pay-in slip for

PPF has 3 sections - depositors copy, agents copy and bank copy. The agents copy has to

be given to the agent and he will give part of the commission. Earlier financial services

firm like Blue-chip in Mumbai, would also give a commission of 0.25% , but they have

stopped in the last 2 years.

The minimum amount that can be invested in one year is Rs 500 and maximum amount is

Rs 70000. This investment has a lock in period of 15 years. No withdrawals are allow till

6 years after account opening and  one withdrawal is allowed per year there after. It

offers rebate under section 80C and the interest is tax free under section 10C.   

For cash withdrawals, you can either use a withdrawal slip or cheque. If an account is

inactive for a long time, State Bank of India does not charge any fee for reactivation.

However, they have a verification process, which may take a long time. Payment

of income tax, advance tax, sales tax can be done at SBI branches. Foreign currency

drafts can also be obtained at the branches.  Since SBI offers a variety of banking

services, their branches are usually very crowded.

State Bank of India has increase home loan interest rates by 25-75 basis points. Also no

fixed rate loans will be available for periods more than 10 years. These changes have

come into effect from March 1, 2006.

SBI Railway Visa Card allows booking of railway tickets online at the Indian Railways

website at zero transaction charges. Users of this credit card can get back up to 10%  of

ticket fare as railway points. These points can be redeemed later, like frequent flyer miles

offered by airlines. State Bank of India is the largest issuer of debit cards (Maestro) in

India

State Bank customers who have to wait a long time to process a bank transaction can

register their complaint through a touch screen device for customer feedback service at 

the branch. The information is recorded and processed in the central server. As of March

2006, it is implemented in 10 branches of SBI in Mumbai. When SBI employees go on

strike, the Reserve Bank of India takes over all clearing operations. However, banking

operations are affected since SBI has nearly 30% of the total customers of banks in India.

Cheques/DD drawn on SBI was not cleared due to the strike. All government taxes like

income tax, sales tax, service tax can be paid at any branch of SBI.

State Bank of India has 52 foreign offices in 34 countries including Australia, UK, USA,

Canada, Bahrain, Nigeria, Bangladesh, Nepal, and Bhutan Sri Lanka.  These are useful

for foreign trade transactions like opening of Letter of Credit

STRENGTHS WEAKNESSES

OPPORTUNITIES

S – O Strategies

Strength: Large Capital base.

Opportunity: Market Expansion.

Strategy: Deep Penetration into Rural Market.

W – O Strategies

Weakness: Workforce

Responsiveness.

Opportunity: Outsourcing of Non – Core Business.

Strategy: Outsource Customer Care & other E-Helps.

THREAT

S – T Strategies

Strength: Low operating costs

Threat: Increased Competition from others Pvt. Banks.

W – T Strategies

Weakness: Not Equal to International Standards.

Threat: Entry of many Foreign Banks.

SStrategy: Steps to Ensure Loyalty by old Customers.

Strategy: Consider additional benefits