SHRI RAMSWAROOP MEMORIAL COLLEGE OF ENGINEERING AND MANAGEMENT

Topic- Analysis Of Banking Industry and Comparative Analysis of Two major players –(HDFC BANK AND ICICI

BANK)

Submitted To- Submitted By- Nimish Saxena Priya Singh

About Banking Industry- A bank is a financial institution whose primary activity is to act as a

payment agent for customers and to borrow and lend money. Banks are important players in financial markets and offer financial services such as investment funds.

In some countries such as GERMANY, banks are the primary owners of industrial corporations .While in other countries such as the UNITED STATES banks are prohibited from owning non-financial companies.

Banking in India

Banking in India originated in the last decades of the 18th century. The first banks were THE GENERAL BANK OF INDIA, which started in 1786, and BANK OF HINDUSTAN, both of which are now defunct. The oldest bank in existence in India is the STATE BANK OF INDIA, which originated in the BANK OF CALCUTTA in June 1806.The first fully Indian owned bank was the ALLAHABAD BANK, established in 1865. Major players in India

State Bank of India HDFC Bank ICICI Bank HSBC Bank IDBI Bank City Bank Axis Bank Punjab national Bank ING Vysya Bank Union Bank of India

PEST ANALYSIS OF BANKING INDUSTRY-

• This analysis is essential for an organization before beginning its marketing process

• Consists of internal environment and external environment .

BREAK UP OF PEST -

• Political Factors• Economic Factors• Socio Cultural Factors• Technological Factors

Analysis of Political Factor for Banking Industry-

1. Political stability -If the government of the country is not stable so it can be one reason for the decline of the Growth for the Business.

2. Stand of opposition parties- If opposition party doesn’t support that Bank so it can also be harmful for the business.

3. Law and order - “The Banking Industry Act ‘was formulated in 1949 for the banking Industry .All the Banks has to follow all the rules and regulation of the banking act.

4. Political attitude towards business - is always positive because bank will help to increase the GDP growth and Per Capita Income.

5. Control on business frauds -for instance, recent Citi Bank scam Government handle the matter carefully so that common public do not bear any losses.Analysis of Economical Factor for Banking Industry-

1. Per capita income -will increase because provide loan facilities to common public like, education loan, car loan, home loan, personal loan etc.

2. Monetary and fiscal policy- 3. Money supply- liquidity maintain in the market .4. Industrial production- will increase through housing loan.5. Unemployment- will decrease because bank generate employment all over

country by opening new branches. 6. GDP growth-it will increase as per employment rate increased.7. Stock market-It will expand. Public can invest more and more money in stock market as per GDP growth rate increase.8. Credit/deposit ratio-it is decided by RBI.RBI decided this ratio through SLR ,CRR ,Bank rate and Base rate.

Analysis of Technological Factor for Banking Industry-

1. Emphasis on R&D -Bank should focus on R&D department so that they can adopt new technologies.

2. Internet availability -It will give positive impact on the business increase to capture more customer.

3. Technology transfer -Introduce many new-2 technology like, ATM ,CBS,Net Banking, On Line Transaction etc.

Analysis of Socio Cultural Factor for Banking Industry-

1. Lifestyles -It will help the banks to increase the profit ratio because public want to save their money for the future perspective.

2. Literacy -Ratio of literacy will increase as per GDP and employment rate increase and also increase through education loan.

3. Income -of the common public will increase because of employment which are provided by the banking industry.

4. Religion -This factor can become one obstacle to growth of the banking industry.for example, Dubai and Saudi Arabia where banking industry does not earn so much profit because they don’t provide the loan o interest basis.

ETOP(Economical technical opportunities provides) ANALYSIS-

Environmental Sector

Nature of impact

Impact on Business

Political + Form of government will have major effect on banking sector.

Government provide many types of aid to the banking sector like, recently Government provide the subsidy on the interest of education loan which reduce the burden of students as well as their parents.

Economic + The growth rate and per capita income of the country will increase because of emplyment so it will give positive impact on the business.

Education loan, housing loan ,car loan will build up the economic strong.

Common public save more and more money in the bank which will maintain the liquidity in the market.

Technology + Technology up gradation and innovation will provide the help to the business.

ATM ,CBS branches, Net Banking, Money transfer, debit card machines, Credit card

machines ,visa etc will help to increase the profit.

Social + Life style ,Living standard of the people will increase.

People can get their own money easily through banks

Interest provided on their save money will increase their expenditure ratio.

Market + Bank should emphasis on the whole class in the market whether they are lower ,middle and upper class.

There are some schemes which specially focus on lower group people.

Competition - There are so many major bank are exist in the market which can give negative impact on the business. like, HDFC ,ICICI,AXIS,CITI bank.

SWOT ANALYSIS OF TWO MAJOR COMPETITORS OF PRIVATE BANKING INDUSTRY(HDFC BANK AND ICICI BANK)-

PROFILE OF HDFC BANK Type - Private Bank Founded- 1994 Headquarters - HDFC Bank Ltd., Mumbai, India Industry - Banking, Insurance, Capital Markets ,Mutual etc Products - Loans, Credit Cards, Savings, Investment,vehicles,

Insurance etc. Net revenue - Rs.2,509.6 crores Net income - Rs. 4,634.3 crores Website - www.hdfcbank.com

SWOT OF HDFC BANK-

Strengths : -

1. Right strategy for the right products.2. Superior customer service vs. competitors.3. Great Brand Image.4. Products have required accreditation.5. High degree of customer satisfaction.6. Good place to work7. Lower response time with efficient and effective service.8. Dedicated workforce aiming at making a long-term career in the field.

Weakness : –1. Some gaps in range for certain sectors.2. Customer service staff need training.3. Processes and systems, etc4. Management cover insufficient

Opportunities:-1. Growing Indian banking sector-

-People are becoming more service oriented in the global market.Threats:-1- From various competitors-

-Foreign banks-govt. banks

2- Future market trends.

PROFILE OF ICICI BANK

Type - Private Bank Founded- 1955 Headquarters - ICICI Bank Ltd., Mumbai, India Industry - Banking, Insurance, Capital Markets ,Mutual etc Products - Loans, Credit Cards, Savings, Investment,vehicles,

Insurance etc. Net revenue - Rs. 257.6 billion Net income - Rs. 24.2 billion Website - www.icicibank.com

SWOT OF ICICI BANK-

Strengths : -

BRAND NAME- ICICI Bank has earned a reputation in the market for extending quality services to the market vis-à-vis its competitors.

MARKET SHARE- ICICI Bank has the largest market share of 34% in the IT & ITES industry in Hyderabad according to our survey (within the limitation of the sample size.)

HUGE NETWORK:-The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India, thus enabling them to serve customer in better way..DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which help it to extend the relationship with existing customer. ICICI Bank has umbrella of products to offer their customers.

SALARY ACCOUNT: Most of the companies are having their Salary Account with ICICI even if their Current Account is with any other Bank. This is mainly because of the huge network of ATMs and branches of ICICI.

Weakness : –

Rural Areas are not covered till now. Minimum Deposit money for account opening is so high. Lower income group are not targeted.

Opportunities:- Growing Indian banking sector- People are becoming more service oriented in the global market. Increase their network in the world wide level.

Threats:- Major competitors are available in the market like ,HDFC ,AXIS, CITI, YES

so on which give tough competition. Government rules and regulations towards banking laws RBI Rules and regulations towards SLR,CRR, Bank rate, Base rate.

If I want to enter into Banking Industry so I will analyze all the above factors which will provide me the sufficient knowledge of Banking industry and I will also analyze SWOT market of the major competitors like HDFC,ICICI,AXIS bank and so. after analyzing all the factors I can enter in to the market carefully.