SWOT Analysis of ICICI bank.
Strengths of ICICI Bank
ICICI is the second largest bank in terms of total assets and market share
Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after
tax of Rs. 51.51 billion and located in 19 countries
One of the major strength of ICICI bank according to financial analysts is its
strong and transparent balance sheet
ICICI bank has first mover advantage in many of the banking and financial
services. ICICI bank is the first bank in India to introduce complete mobile banking
solutions and jewelry card
The bank has PAN India presence of around 2,567 branches and 8003 ATMs
ICICI bank is the first bank in India to attach life style benefits to banking
services for exclusive purchases and tie-ups with best brands in the industry such as
Nakshatra, Asmi, Ddamas etc
ICICI bank has the longest working hours and additional services offering at
ATMs which attracts customers
Marketing and advertising strategies of ICICI have good reach compared to other
banks in India
Weaknesses of ICICI Bank
Customer support of ICICI section is not performing well in terms of resolving
complaints
There are lot of consumer complaints filed against ICICI
The ICICI bank has the most stringent policies in terms of recovering the debts
and loans, and credit payments. They employ third party agency to handle recovery
management
There are also complaints of customer assault and abuse while recovering and the
credit payment reminders are sent even before the deadlines which annoys the
customers
The bank service charges are comparatively higher
The employees of ICICI are bank in maximum stress because of the aggressive
policies of the management to win ahead in the race. This may result in less productivity
in future years
Opportunities of ICICI Bank
Banking sector is expected to grow at a rate of 17% in the next three years
The concept of saving in banks and investing in financial products is increasing in
rural areas as more than 62% percentage of Indias population is still in rural areas.
As per 2010 data in TOI, the total number b-schools in India are more than 1500.
This can ensure regular supply of trained human power in financial products and
banking services
Within next four years ICICI bank is planning to open 1500 new branches
Small and non performing banks can be acquired by ICICI because of its financial
strength
ICICI bank is expected to have 20% credit growth in the coming years.
ICICI bank has the minimum amount of non performing assets
Threats of ICICI Bank
RBI allowed foreign banks to invest up to 74% in Indian banking
Government sector banks are in urge of modernizing the capacities to ensure the
customers switching to new age banks are minimized
HDFC is the major competitor for ICICI, and other upcoming banks like AXIS,
HSBC impose a major threat
In rural areas the micro financing groups hold a major share
Though customer acquisition is high on one side, the unsatisfied customers are
increasing and make them to switch to other banks.
Home SWOT SWOT analysis of SBI
SWOT analysis of SBI
SBI has its roots since 1806 which was later transformed under various names, finally
SBI Was established after the act in parliament on May 1955. In the year 1959 SBI took
over 8 state owned banks and since then it started to grow up carrying its heritage of
servicing people at various economic levels.
Strengths
SBI is the largest bank in India in terms of market share, revenue and assets.
As per recent data the bank has more than 13,000 outlets and 25,000 ATM centres
The bank has its presence in 32 countries engaging currency trade all over the world
The bank has a merged with State Bank of Saurashtra, State bank of Indore and the
bank is planning to go further acquisition in the current FY2012.
SBI has the first mover advantage in commercial banking service
SBI has recently changed its vision and mission statements showing a sign of inclination
towards new age banking services
Weakness
Lack of proper technology driven services when compared to private banks
Employees show reluctance to solve issues quickly due to higher job security and
customers waiting period is long when compared to private banks
The banks spends a huge amount on its rented buildings
SBI has the largest number of employees in banking sector, hence the bank spends a
considerable amount of its income in employees salary compensation
In spite of modernization, the bank still carries the perception of traditional bank to new
age customers
SBI fails to attract salary accounts of corporate and many government sector employees
salary accounts are also shifted to private bank for ease of operations unlike before
Opportunities
SBIs merger with five more banks namely State Bank of Hyderebad, State bank of
Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank of
Mysore are in approval stage
Mergers will result in expansion of market share to defend its number one position
SBI is planning to expand and invest in international operations due to good inflow of
money from Asian Market
Since the bank is yet to modernize few of its banking operations, there is a better scope
of using advanced technologies and software to improve customer relations
Young and talented pool of graduates and B schools are in rise to open new horizon to so
called old government bank
Threats
Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the
year FY2011
This shows the reduce in market share to its close competitor ICICI
Other private banks like HDFC, AXIS bank etc
FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking
service
Other government banks like PNB, Andhra, Allahabad bank and Indian bank are
showing
Customer prefer to switch to private banks and financial service providers for loans and
mortgages, as SBI involves stringent verification procedures and take long time for
processing.
