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2. Ms. SHEELU
MBA(IB)
E-mail –sheelusharma8@gmail.com
Mobile No. 09959643382
The Professionals’’ Bank of India Ltd. is a midsized bank in the country. The bank has
positioned itself from financial banking to customer care. The bank has done excellently
in Q2 and Q3 of FY09 and is now more concerned about the future quarters. This is
because they have built a world class human capital, acquired and institutionalized
relation capital. The bank is also planning to enter adjacent-synergistic business like
Insurance, Retail etc. The bank has re-balanced their portfolio with positioning and
capitalization but the main problem which arises is concerning the limited opportunity
due to competition.
As the major cause of concern in this globalised world is that companies are more
concentrating in RED-OCEAN STRATEGY but for the company like TPBoI ltd has to
concentrate more on BLUE –OCEAN STRATEGY to cater in to new segment of the
market.
Before going in to study the company as a whole there many methods to be followed we
in our analysis try to do EIC analysis and Benchmarking analysis to arrive in to some
logical conclusion. We also did comparative analysis with the major competitor of
TPBoI ltd. We also did ratio analysis to arrive at the current position of the bank .
ISSUES: - Changing the Mid and long-term strategy within the purview of three
major strategic alternatives.
BANKING INDUSTRY
The Indian banking system is financially stable and resilient to the shocks that may arise
due to higher non-performing assets (NPAs) and the global economic crisis. RBI, the
central bank of the country said that banks should link more branches to the National
Electronic Clearing Service (NECS). There are more than 80 banks in India including
public, private and foreign banks. Given the demographic shifts resulting from changes
in age profile and household income, consumers will increasingly demand enhanced
institutional capabilities and service levels from banks.
Strengths Weaknesses
Opportunities Threats
Strengths Weaknesses
These are some of the major indicator on how the country is moving . As we know
BANKEX is the replica of the banking industry and GDP is the replica of the whole
countries growth they are directly proportional with each other. BANKEX and GDP of
the country are inversely related to Inflation Rate and CPI of the country. So as per the
current situation of the country , as the CPI increasing day by day the company should
concentrate more on FINANCIAL INCLUSION of the SME sector.
BANKEX
BANKEX In both the graph it can be clearly
9,122.20 visible the relation between BANKEX,
This is the comparative analysis of TPBoI with some of the market competitors. As you
can see from the table above that TPBoI is not in the micro-finance and Retail business
including Life Insurance business. So as the bank is expanding it can enter into micro-
finance segment. Microfinance in India through its two major channels – SBLP and
MFIs – served over 33 million Indians in 2008, up by 9 million over the previous
financial year. 4 out of 5 microfinance clients in India are women. The loan segment
between Rs. 5,000 and Rs 10,000 has been growing strongest. The outstanding micro-
credit portfolio of India Microfinance was about Rs. 22,000 crore, 75% are accounted for
by SBLP, 20% by large MFIs and 5% by medium and small MFIs. Urban Microfinance is
emerging as a strong growth driver. Also penetration of life insurance services in rural
India is <10%.
So, as per our analysis we thought that as company is in a growth stage of economy, it
should go for expansion and diversification in future which need a proper well trained
human capital with the in-depth knowledge about the culture as a whole.
(Source: - http://www.dnb.co.in/TopBanks/company_listing.asp?
PageNo=6&q=Total_Income )
The table above shows some of the competitors of TPBoI Ltd. The employee base of
TPBoI is 2700 and wants to increase it to 10,000 with 750+ branches by 2015. To
implement this, bank needs to have expansion strategy in all segments. As the
workforce will increase it will lead to more output and income generation. The bank is
delivering extra ordinary results after every quarter so by looking this, human capital
will be attracted. To motivate, groom and retain human capital, bank need to design a
training program which will be accompanied by varied skill sets required in the
banking industry. The bank should also increase the perks, incentives, awards in the
employment policy. There also can be job rotation and job enrichment depending on
skill set the person posses. Also there should be state based recruitment process so that
it can cover all language and ethnic group and in return bank will get benefit as the
employee will understand each customers need. This manpower will help in designing
the product as per the demand. As suggested by us the bank should come up with
Micro finance so in that case the bank should appoint sales and marketing team who
should understand the villagers more effectively.
CONCLUSION:-
As per our Analysis we came to the conclusion that company should go for Building
World Class Human Capital and Allied businesses (A&C). From the above all analysis
we can clearly seen the below mention which shows company should go for BLUE
OCEAN STRATEGY.
BIBLIOGRAPHY:-
1. CMIE Report
2. www.capitaline.com
3. www.rbi.org.in
4. http://www.dnb.co.in/TopBanks/company_listing.asp?
PageNo=6&q=Total_Income
5. Different bank website