Worksheet – SWOT and Technical Analysis of HDFC, ICICI, SBI Bank
Submitted by- Brijmohan
21MBA2489
SWOT ANALYSIS
1. HDFC Bank
Strengths of HDFC
HDFC’s strengths are internal, good characteristics that are under the
company’s control and the reason for its success. They are as follows.
Large Network of Branches: HDFC Bank is India’s second-largest private
banking sector, with 2,201 branches and 7,110 ATMs.
Strong Consumer Banking: The ATM card issued by the bank is
compatible with all domestic and international Visa/Master cards, Visa
Electron/Maestro, and American Express cards. This is one of the
reasons why HDFC cards are the most popular for shopping and online
transactions.
Higher Customer Satisfaction: When compared to other private banks, it
has a high level of customer satisfaction.
High Employee Retention Rate: The bank has a low employee turnover
rate and is regarded as one of the best places to work in the private
banking sector.
Brand’s Goodwill: It has received numerous awards and recognition,
including the title of “Best Bank” from various financial rating
institutions such as Dun and Bradstreet, Financial Express, Euromoney
Awards for Excellence, and Finance Asia Country Awards.
Weaknesses Of HDFC
Weaknesses are flaws that detract from one’s strengths. These are areas that
the business may need to improve to remain competitive.
No Rural Presence: HDFC Bank does not have a strong presence in rural
areas, whereas ICICI Bank is expanding in the rural market.
Limited Market Size: Unlike ICICI, HDFC lacks aggressive marketing
strategies. The bank primarily serves high-end clients.
Underperforming Sectors: Some of the bank’s product categories are
underperforming and have limited market reach.
Fluctuating Share Prices: The share price of the bank fluctuates
frequently, causing investors to be uncertain.
Opportunities of HDFC
External aspects in the business environment that are likely to contribute to
the success of the company are known as opportunities. Below mentioned are
the opportunities of HDFC.
Strong Fundamentals for Growth: As HDFC Bank has better asset quality
parameters than government banks, profit growth is expected to
increase.
Increasing Corporate Banking Sector: Companies, both large and small
and medium-sized, are expanding at a rapid pace. HDFC has a good
reputation for keeping corporate salary accounts up to date.
Efficient Debt Settlement: When compared to government banks, HDFC
Bank’s bad debt portfolio has improved and its bad debt recovery rate is
high.
Foreign Markets: Because of its strong financial position, it has very
good opportunities in foreign markets, with greater scope for
acquisitions and strategic alliances.
Threats of HDFC
External elements over which the bank has no control are referred to as
threats. The company needs to develop contingency plans for coping with
them if they arise.
Increasing NPA: The non-performing assets (NPA) of HDFC increased
from 0.18 to 0.20 percent. Even though it is a minor difference, it is not a
good sign for the bank’s financial health.
New-Age Banks: The number of non-banking financial companies and
new-age banks in India is growing.
Lack of Growth: The HDFC is unable to increase its market share
because ICICI poses a significant threat.
Increasing Competition: Government banks are attempting to
modernize to compete with private banks.
Increasing Foreign Investments: The Reserve Bank of India has granted
foreign banks permission to invest up to 74 percent of their assets in the
Indian market.
2. ICICI Bank
Strengths of ICICI Bank
ICICI is the second largest bank in terms of total assets and market
share.
Total assets of ICICI are 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 strengths of ICICI bank according to financial
analysts is its strong and transparent balance sheet.
The bank has PAN India presence of around 2,567 branches and
8003 ATM’s.
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.
The bank service charges are comparatively higher.
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 India’s
population is still in rural areas.
Small and nonperforming 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.
3. SBI Bank
Strengths of SBI
Government Support: Being a public sector bank it has the full support
of the Indian government which can be considered as one of the major
strengths.
Public Goodwill: Being a bank with a history of more than 2 centuries it
has accumulated a huge amount of goodwill. The belief that the public
or the consumer has towards it is at excellence.
High Revenue: Being a multinational company ranked at 221st position
in the fortune global 500 it sure does own a huge revenue and capital
which is a strength in itself.
Wide Network: According to recent reports, the bank has more than
22,141 branches and 58,555 ATMs.
International Reach: SBI is active in 36 countries involved in currency
traders around the world.
High Market Share: SBI is the largest bank in India with a 23% market
share by assets and a 25% share of the total loan and deposits market.
Weaknesses of SBI
Employees Attitude: Due to having a secured government job most of
the employees don’t have a good attitude towards the consumers.
Technology: The lack of adequate technology-driven infrastructure
relative to private banks.
Efficiency: Employees are hesitant to fix issues efficiently due to better
job stability.
Hesitation to Innovate: Despite the modernization, the bank still
conveys the perception of the traditional bank to new-age clients.
No. of Employees: SBI has the largest number of employees in the
banking sector, which is why the bank spends a considerable amount of
its income on employees’ salaries.
Opportunities for SBI
Opportunities are potential areas of focus for a company to improve results,
increase sales, and, ultimately, profit.
Youth Hiring: Pool in talent to replace top management to serve the
next generation and bring about innovation. This will also enable driving
the latest innovation into the company.
Improvement: SBI can make better use of the CRM, new technology,
and the online space to increase its banking business.
Rural Areas: Expansion into the rural areas will also boost its business to
a new level.
Cashless: With a focus on India going cashless, the bank that supports
cashless features by evolving its methods and technology can dominate
the market with its extensive reach.
Foreign Market: Expanding its business in the foreign market also holds
a huge scope of growth for SBI.
Threats to SBI
Private Banks: Consolidation among private banks can reduce market
share for SBI by a huge margin.
Changing Policies: Banking policies are governed by Reserve SBI (RBI)
laws and regulations, therefore any changes made by the RBI have a
direct impact on the bank’s operations.
Foreign Banks: Foreign banks that have sophisticated products can fully
affect the old strategy of SBI.
Government: SBI operations are often disrupted by slow government
decisions and red-tapism.
Competitors CRM:- Competitors with good CRM systems are a threat to
the SBI.
Technical Analysis
Technical analysis of HDFC, ICICI, SBI Bank
1. Alexa Rank
Alexa Rank
6000
5149
5000
4000
3000
2000
1000
181 239
0
HDFC ICICI SBI
Series 1
According to the Alexa HDFC Bank is ranking at 181 while ICICI Bank and SBI Bank are at 239
and 5149 respectively. Some of the analyst consider a ranking of 1 million to be good, but
comparing these three bank websites HDFC Bank is that provide high-level data and is easy
to understand the site.
2. Site Metrics
Site Metrics
5
4.5 4.3 4.4
4
3.5
3.5
3
2.5
2.5 2.3
2 1.8
1.5
1
0.5
0
HDFC ICICI SBI
Page views per visitor Average time spent on website per visitor (minutes)
A higher time on page indicates that the content is relevant, easy to understand , and
targeted at the right audience. Here in case of ICICI Bank the average time spend by higher
than the other ones even after having low page visitors.
HDFC Bank has higher number of page visitors but less time spend on page. So HDFC Bank is
legging in successful conversion this may be due to complexity of website or irrelevant
articles on landing page.
3. Traffic Search
Traffic Search
70
SBI; 63.5
60
50 46.4
44.5
40
35.1
HDFC; 29.3
30
ICICI; 21.9
20
10
0
HDFC ICICI SBI
Average(%) This site(%)
Higher rate of traffic search means that website appears more in organic search. SBI Bank
has more traffic search than average traffic search. Traffic search can be increase by using
relevent keyword and content.
4. Bounce Rate
Bounce Rate
60
50
40
30
20
10
0
HDFC ICICI SBI
Average Bounce Rate(%) This site Bounce Rate(%)
SBI is having high traffic search but Bounce rate is also very high than average . HDFC and
ICICI Bank has very low rate of Bounce rate. HDFC and ICICI bank has more customer
attractive landing page and easy to use comparatively to SBI Bank.
5. Referral sites ( Sites Linked)
Number of Linked Sites
SBI SBI; 2075
ICICI ICICI; 1941
HDFC HDFC; 1712
0 500 1000 1500 2000 2500
Number of Linked Sites
SBI bank has more linking websites than the HDFC and ICICI bank this is one of the reasons
of more traffic on sbi.co.in.
6. Top audience overlaps
Audience Overlap (%)
SBI; 52.8
HDFC; 63.8
ICICI; 63.8
Sbi.co.in shares 52.8 % audience with sbionline.com
Hdfcbank.com shares 63.8 % audience with icicibank.com
Icicibank.com shares 63.8 % audience with hdfcbank.com
