SBI

STRATEGIC MANAGEMENT & BUSINESS POLICY Prof: B K Kumar: 

STRATEGIC MANAGEMENT & BUSINESS POLICY Prof: B K Kumar GROUP MEMBERS DINESH REDDY G V F09BB03 HARINATH REDDY B F10A157 HARISH NAGARAJ F10A106 VENKAAT SWARUP KUMAR F10A110

A PROJECT REPORT ON MULTIDIVISIONAL STRATEGIES STATE BANK OF INDIA Venue: 203, IIPM BANGALORE Date: 05-12-2011 FW 10-12 FIN 1, III TRIMESTER: 

A PROJECT REPORT ON MULTIDIVISIONAL STRATEGIES STATE BANK OF INDIA Venue: 203, IIPM BANGALORE Date: 05-12-2011 FW 10-12 FIN 1, III TRIMESTER

SECTORS CONTRIBUTING TO THE GDP: 

SECTORS CONTRIBUTING TO THE GDP NOTE: Banking industry is a Service Industry which fall under Service.

BANKING INDUSTRY: 

BANKING INDUSTRY The Indian Banking Industry can be categorized into Non-Scheduled Banks. Scheduled Banks. First Bank was started in 1786. RBI became as a Central Bank in 1934. Nationalized in 1969. Liberalization occurred in 1991.

BANKING INDUSTRY: 

BANKING INDUSTRY The Public Sector Bank (PSBs) which is the base of the banking sector in India account for more than 78% of total banking assets. The Private Sector Banks are making tremendous progress. They are the leaders in the internet banking, mobile banking, phone banking and ATMs.

MAJOR PLAYERS IN INDIAN BANKING SECTOR: 

MAJOR PLAYERS IN INDIAN BANKING SECTOR State Bank Of India, ICICI Bank, Allahabad Bank, HDFC, UCO Bank, Punjab Bank, Bank of Maharashtra, Axis Bank, CITI Bank, HSBC Bank.

INTRODUCTION OF SBI: 

INTRODUCTION OF SBI Largest Nationalized Bank in India in terms of assets, number of branches, deposits, profits and workforce. Headquarters in Mumbai, India & employs about 205,896 people. Started in 2 nd June 1806 as Bank Of Calcutta. Redesigned as Bank Of Bengal in 1809. Nationalized in 1955 and was renamed as State Bank Of India.

SUBSIDARIES OF SBI: 

SUBSIDARIES OF SBI State Bank Of Indore, State Bank Of Bikaner & Jaipur, State Bank Of Hyderabad, State Bank Of Mysore, State Bank Of Patiala, State Bank Of Travencore

SUBSIDARIES OF SBI: 

SUBSIDARIES OF SBI State Bank Of Indore, State Bank Of Bikaner & Jaipur, State Bank Of Hyderabad, State Bank Of Mysore, State Bank Of Patiala, State Bank Of Travancore.

MISSION: 

MISSION To retain its position as the premiere Indian financial services group. SBI also aims to be a group with world class standards and significant global business commitments to excellence in customer, shareholder and employee satisfaction so as to play a leading role in expanding and diversifying financial services while continuing emphasis on its development banking role.

MARKETING MIX: 

MARKETING MIX PRODUCT Personal Banking, NRI Services, International Banking, Agricultural, Corporate Banking, SME, Investments, Domestic Treasury, Services.

MARKETING: 

MARKETING PRICE The pricing policy of SBI Bank is considered important for raising the number of customers’ vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position.

MARKETING: 

MARKETING PLACE Offering the services through various branches (almost 16000 branches in India)

MARKETING: 

MARKETING PROMOTION Advertising, Print media, Publicity, Sales promotion, Personal selling

MARKETING: 

MARKETING PEOPLE Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organization to its customers.

MARKETING: 

MARKETING PROCESS Flow of activities, Standardization, Customization, Number of steps, Simplicity, Customer involvement.

MARKETING: 

MARKETING PHYSICAL EVIDENCE Internet/Web Pages, Broachers, Furnishing, Buildings, Signage, Financial reports, Tangibles, Punch lines.

PowerPoint Presentation: 

EXTERNAL ENVIRONMENT ANALYSIS PESTAL - C

7 MACRO PARAMETERS : 

7 MACRO PARAMETERS POLITICAL : Regulatory Framework Deregulation of the Market Monetary Policy Check Clearing for the 21st Century Act Fair and Accurate Credit Transactions Act of 2003 ECONOMIC : Changes in Interest Rates Complex Nature of Banking Operations Consolidation of the Industry

7 MACRO PARAMETERS : 

7 MACRO PARAMETERS SOCIAL: Employment Demographics Working Conditions Payment-System Changes TECHNOLOGY : ENVIRONMENT : LEGAL : COMPETATIVE:

PowerPoint Presentation: 

INTERNAL ENVIRONMENT SWOT ANALYSIS

BCG MATRIX: 

BCG MATRIX

PORTER’S FIVE FORCE ANALYSIS: 

PORTER’S FIVE FORCE ANALYSIS

INCOME : 

INCOME Note: Income of SBI has seen a growth of 105% for the past 5FY

PERFORMANCE INDICATORS: 

PERFORMANCE INDICATORS Note: Deposits have grown up to 25% in the past 3FY & Advances have grown to 39%

NET PROFIT : 

NET PROFIT Note: From 2008 to 2009 the profit was increased by 35% as the people started depositing their money in the banks which would be safer when the market was not performing well.

ICICI BANK: 

ICICI BANK

ICICI BANK SWOT ANALYSIS: 

ICICI BANK SWOT ANALYSIS

SME INDUSTRY: 

SME INDUSTRY FEATURES 400 modern and 6000 rural and artisan based clusters. Contribute 60% of India’s manufactured exports. Examples: Pune, Bangalore. PROMINENT SECTORS Chemical and Pharmaceuticals (Maharashtra, Gujarat) Textiles & Garments (North and South India). Auto Ancillary (Maharashtra, Gujarat, Punjab) Engineering (Spread Across India)

SME INDUSTRY: 

SME INDUSTRY Growth Engine Of Economy. Second Largest Employer, Significant Contribution To Exports, Significant Contribution To GDP.

NEED OF SMEs: 

NEED OF SMEs Persistent requirement of Capital, Working Capital Facilities, Routine Business Needs, FOREX Services, Business Management Guidance, Legal and Regulatory Guidance.

SME’s BY SIZE: 

SME’s BY SIZE Note: Of the 1150 micro, small and medium enterprises evaluated by SMERA Source: SMERA Newsletter.

SME SERVICES BY SBI & ICICI: 

SME SERVICES BY SBI & ICICI The services of SME provided by SBI are: Agriculture, Medical, Transport, Tourism, Art, Education. Currently SBI have 12Lakh customers, where as ICICI has on 5Lakh customers.

COMPARISON OF SME PLANS BY SBI & ICICI: 

COMPARISON OF SME PLANS BY SBI & ICICI

ADVANCES FOR SME BY SBI: 

ADVANCES FOR SME BY SBI Note: there was a decline of advances given to SME sector due to the economic factors influenced and after the market was stable again the advance were increased.

ADVANCES FOR SME BY ICICI: 

ADVANCES FOR SME BY ICICI Note: We can see there is a difference between SBI and ICICI and this is due to the interest rates, service charges, margin amount and repayment period. So people have chosen SBI as their better choice.

LIFE INSURANCE: 

LIFE INSURANCE The insurance sector was opened up for private participation four years ago. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non-life segment. Most of the private insurance companies have formed joint venture partnering well recognized foreign players across the globe. There are now 29 insurance companies operating in the Indian market – 14 private life insurers, nine private non-life insurers and six public sector companies.

LIFE INSURANCE: 

LIFE INSURANCE There is pressure from both within the country and outside on the Government to increase the foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for expansion. There are opportunities in the pensions sector where regulations are being framed. Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first license for a standalone health company in the country as many more players wait to enter. The health insurance sector has tremendous growth potential, and as it matures and new players enter, product innovation and enhancement will increase.

MARKET SHARE OF INSURANCE COMPANIES IN INDIA: 

MARKET SHARE OF INSURANCE COMPANIES IN INDIA

SBI LIFE INSURANCE: 

SBI LIFE INSURANCE SBI Life Insurance is a joint venture between the STATE BANK OF INDIA and CARDIFF SA of France. It is registered with and authorized capital of 500Crore and a paid up capital of 350Crore. SBI Life Insurance offers personal insurance and related services. The strategy adopted by them is to provide the customers the utmost benefit along with the fulfillment of company’s goal and mission.

MARKETING INITIATIVES: 

MARKETING INITIATIVES Segregating and targeting existing high value customers , C ross sales of other products, Setting up call centres and outbound sales force to secure new customers. Plans were also made to utilize database marketing to pursue large and medium sized corporate, government and trade finance customers.

MARKETING INITIATIVES: 

MARKETING INITIATIVES Extension of hours of work ( SBI increased daily working hours by two hours and Sunday banking was introduced ). Aggressive marketing through print and television media.

BUSINESS STRATEGIES: 

BUSINESS STRATEGIES Institution for advanced learning, Internal consultant/change agent, Feedback supplier, Think tank, Research and development role, Overlapping staff training centres,

OTHER STRATEGIES: 

OTHER STRATEGIES Centralization and Decentralization, The Restructuring, New Products and Services, Alliances and Tie-Ups Auto Finance

PowerPoint Presentation: 

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