COMPANY PROFILE -State Bank of India (SBI)
Business Sector :Banking and Financial Services
Operating Geography :India, Asia, Global
About State Bank of India (SBI) :
State Bank of India (SBI) is an Indian multinational, financial statutory body and a public sector bank. It is headquartered in Mumbai, Maharashtra. It is a nationalised bank, and the largest bank in India with a 23% market share by assets and a 25% share of the total loan and deposits market. In the 19th century, Bank Of Calcutta which was established on 2 June 1806, was one of three Presidency banks and the other two being the Bank of Bombay which was incorporated on 15 April 1840 and the Bank of Madras which was incorporated on 1 July 1843. These Presidency banks merged on 27 January 1921, and the re-organised banking entity was renamed as Imperial Bank of India and in the year 1955, the Imperial Bank of India became the State Bank of India. State Bank of India, offers a range of banking products through its network of branches in India and overseas, which also includes products aimed at non-resident Indians (NRIs). It has 16 regional hubs and 57 zonal offices that are situated at important cities throughout India. In India the bank has 24,000 branches and 191 overseas offices spread over 36 countries. It has 16 regional hubs and 57 zonal offices that are situated at important cities throughout India. In India the bank has 24,000 branches and 191 overseas offices spread over 36 countries. In March 2020, State Bank of India acquired 48.2% of the shares of Yes Bank as part of RBI directed rescue deal. State Bank of India is ranked 221st in the Fortune Global 500 list of the world's biggest corporations of 2020 and also 43rd largest bank in the world. As of early 2022, the company leverages the talent of around 249,500 employees.
State Bank of India's Unique Selling Proposition or USP lies in it being the biggest nationalized bank in India and being the owner of one of the largest banking networks in the world. SBI's mission statement reads, "We will be prompt, polite and proactive with our customers. We will speak the language of Young India. We will create products and services that help our customers achieve their goals. We will go beyond the call of duty to make our customers feel valued".
State Bank of India (SBI) Revenue :
INR 2,96,209 crore – FY ending 31st March, 2020
INR 2,77,219 crore – FY ending 31st March, 2019
Competitive Analysis of State Bank of India (SBI)
The SWOT analysis for State Bank of India (SBI) is presented below in a matrix followed by the detailed analysis report
Strengths | Weaknesses |
1. Strong portfolio of extensive products and services
2. Largest domestic bank with international presence and strong government backing
3. High capital and strong leadership helping to improve ROE and ROA
4. India’s Largest Bank, in terms of deposits, advances, customers & banking outlets
5. Strong industry-leading subsidiaries with robust performances
6. Honored with multiple awards and recognitions
| 1. Employee’s behavior at work resembles to McGregor’s Theory X, resulting in bad customer service
2. Increasing bad debts is decreasing profits year on year
|
Opportunities | Threats |
1. Scaling up YONO as preference of customers is changing
2. Leading the digital transformation drive to serve an increasingly digital India
3. Leveraging analytics, AI and Machine Learning
| 1. Disruptive changes in banking sector due to advent of neo-banks
2. Profitability may get severely impacted due to higher provisioning requirement
|
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Detailed SWOT Analysis of State Bank of India (SBI)
Strength
1. Strong portfolio of extensive products and services: The State Bank of India is an Indian multinational bank, a government corporation statutory body headquartered in Mumbai, India. It is ranked 236th in Fortune Global 500 list of world’s biggest corporation. The State Bank of India is committed to provide best service through extensive list of products and services under the same roof. SBI offers personal banking to its customer through loans, salary accounts, wealth management etc. It has over 36 lakh home loan customers. SBI also offers SME financing and is a market leader in providing innovative financial solution. SBI offers products and services in rural banking, government banking, corporate banking and international banking.
2. Largest domestic bank with international presence and strong government backing: State Bank of India has a dense presence in India making it the largest domestic bank with over 24000 branches and over 58000 ATM’s. The bank also increased its presence in rural India when the government lunched Pradhanmantri Jan Dhan Yojna wherein the bank organized many camps and opened 3 million bank accounts in one month. Under this scheme government transferred funds to beneficiaries. Additionally, SBI has a strong international presence across North America, Europe, South America, Middle East, Africa, Australia and other South East Asian countries. Apart from international branches, State Bank of India has subsidiaries, joint ventures and non-banking subsidiaries. Net profit of foreign branch and subsidiaries was recorded as US $ 471 million for fiscal 2019. Government of India has a 61% stake in State Bank of India.
The remaining section under "Strength"is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threats
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The PESTLE analysis for State Bank of India (SBI) is presented below in a table followed by the detailed analysis report
Political | Economical |
1. Political influence and involvement has led to fugitive loan defaulters
2. Electoral bonds are being sold to fund political parties.
3. Conflicts have always erupted between Indian government and bank officials.
| 1. Increasing bad loans and NPA’s will impact profit margin.
2. Hike in interest rate of home loans will impact in larger EMI’s thus avoiding new transactions.
3. Write-off in agricultural loans will is becoming a moral hazard impacting bank’s profit margin.
|
Social | Technological |
1. Enormous reach and assumption that nationalized bank is safe has shown a trend in increase of customer base
2. Navigating India’s financial inclusion agenda
| 1. Partnering with IT giants to transform core banking to digital banking to empower customers.
2. Leading provider of cyber defence insurance in Indian market.
|
Legal | Environmental |
1. Bank deposit insurance has brought in more trust in customers, banks to pay more premiums.
2. New banking and financial regulations to boost secure and free transfers
| 1. Combating climate change with increasing steps towards carbon neutrality.
2. Investing in renewable energy and issuing green bonds to promote sustainable environment.
|
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Detailed Pestle Analysis of State Bank of India (SBI)
Political
1. Political influence and involvement has led to fugitive loan defaulters:
State Bank of India being a government statutory body has always been influenced by political parties, leaders and bureaucrats. There have been instances when influential politicians have strong armed the bank to grant loans to businesses and their owners and involved in corrupt practices. In 2016, Vijay Mallya, owner of Kingfisher Airlines and United Breweries escaped from India after declaring himself as bankrupt. State Bank of India had granted Rs. 9000 Crore to Vijay Mallya. It has been alleged by the government that the previous Prime Minister and Finance Minister were helping Vijay Mallya in getting loans. Indian government later produced copy of letter between both parties requesting loan and getting assurance of approval respectively. Since then Vijay Mallya has been absconding with this debt; however SBI claims to have recovered Rs. 11000 Crore from his properties.
The remaining section under "Political"is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- PUNJAB NATIONAL BANK
- BANK OF INDIA
- HSBC
- CITI BANK
- ICICI
- HDFC
- IDBI BANK
Major Brands :
- SBI capital markets ltd
- SBI DFHI ltd
- SBI general insurance company ltd
- SBI mutual fund management pvt ltd
- SBI life insurance company ltd.
- SBI foundation
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in State Bank of India (SBI) SWOT & PESTLE Analysis Report
1. SBI tops customer complaints list; PSU banks have more irate customers than private lenders - https://www.financialexpress.com/industry/banking-finance/sbi-tops-customer-complaints-list-psu-banks-have-more-irate-customers-than-private-lenders/1804355/
2. RBI finds SBI under-reported bad loans by Rs 11,932 crore in FY19 - https://economictimes.indiatimes.com/markets/stocks/news/rbi-finds-sbi-under-reported-bad-loans-by-rs-11932-crore-in-fy19/articleshow/72454745.cms
3. Neobanks and the next banking revolution - https://www.pwc.in/consulting/financial-services/fintech/fintech-insights/neobanks-and-the-next-banking-revolution.html
4. UK digital bank Revolut to enter India next year -
https://timesofindia.indiatimes.com/business/india-business/uk-digital-bank-revolut-to-enter-india-next-year/articleshow/70064778.cms
5. RETAIL RESEARCH HDFC Securities - https://www.hdfcsec.com/hsl.research.pdf/SBI-Ltd-Initiating-Coverage-19062020.pdf
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State Bank of India (SBI) SWOT and PESTLE Analysis has been conducted by Akshay Mohan and reviewed by senior analysts from Barakaat Consulting.
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