hdfc - strategic management - sec c - group 2 (3)
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BANKING INDUSTRY- HDFC
Submitted By-Aditya AggarwalAditya NarayananAnand ChandranAnkita KunwarKevin AbrahamPulkit KabraSaket Deepak
About HDFCHousing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts 2201 branches and over 7110 ATMs across India.
Capital Structure• HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion),
of this the paid-up amount is Rs.468.26 crore (Rs.4.68 billion). In terms of equity share, the HDFC Group holds 23.20%.
• Foreign Institutional Investors (FIIs) have around 29.67% of the equity• 17.33% is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue).• The bank has about 477,291 shareholders. Its shares find a listing on the
Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB‘.
As on 31st December, 2011Source: HDFC BANK website
Timeline•1994 – The Bank was Incorporated on 30th August. A new private sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing finance company•1995–The Bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16th•1998–HDFC Bank, had tied up with BPL Ltd to offer Internet-enabled supply-chain management and business-to-consumer (B2C) e-commerce services to corporates– Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-banking services in the city•2002–HDFC Bank unveils Silver card in Hyderabad.– HDFC Bank opens first overseas representative office. – HDFC Bank unveils gold card
Timeline• 2007
– HDFC Bank has signed an agreement with Tata Pipes to offer credit facilities to farmers across the country.
– HDFC Bank Opens Its First Overseas Branch In Bahrain• 2009
– HDFC Bank launches ‘Meritus’ Scholarship Programme. – The Asian Banker declares HDFC Bank the Best Retail Bank
• 2010 – With a view to attract long term deposits and prevent premature
withdrawal when the interest rates peak, HDFC, the housing finance major, has decided to pay variable interest rate on recurring deposits
Net Revenues2006-07
498,471 Lakhs
2007-08751,103 Lakhs
2008-091,071,176 Lakhs
2009-101,236,953 Lakhs
2010-111,487,828 Lakhs
Revenues
Growth
FY08 FY09 FY10 FY110.00%
10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%
100.00%
50.00%42.60%
15.90% 15.80%
HDFC Bank
Growth (%)
Growth
Source: Edelweiss Research
Market Capitalization• Market Capitalization depends upon the future performance of the company to a large extent
• It is different from profit margin and profitability
• PE Ratio = Market Capitalization Profit
MC= PE Ratio* Profit After Tax
2006/07 = 26.29 * 114145 Lakhs = 3000872 Lakhs2007/08 = 28.80 * 159018 Lakhs = 4579718 Lakhs2008/09 = 18.42 * 224493 Lakhs = 4135161 Lakhs2009/10 = 28.62 * 294870 Lakhs = 8439179 Lakhs2010/11 = 27.59 * 392640 Lakhs = 10832937 Lakhs
Market Capitalization
Leading banks by market capitalization
Company Name Market Cap(Rupee Cr)
SBI 135,321.59
HDFC Bank 122,648.63
ICICI Bank 106,796.74
Axis Bank 46,093.45
Kotak Mahindra 41,331.53
Bank of Baroda 31,998.30
PNB 31,377.08
Company Name Market Cap(Rupee Cr)
Canara Bank 22,980.63
Bank of India 19,803.89
Union Bank 15,886.43
IndusInd Bank 14,760.92
Yes Bank 12,091.78
Federal Bank 6,910.32
ING Vysya Bank 5,266.06
Source: Money Control (Latest)
Business Strategy• Increase the market share in India
• Expand the product range and the customers
• Improve the quality of customer service
• Innovate on the product and service range to attract more customers and address the existing inefficiencies
• Maintain a disciplined credit risk management
• Reduce bank’s cost of funds
• HDFC’s diverse loan portfolio along with superior lending practices de-risks its business model
• Lower operating costs along with stable margins and high asset quality ensures sustainable profitability
Business Model
Business Philosophy
Based on 4 Core Values
Operational Excellence
Customer Focus
Product Leadership
People
Porters Forces
Threat of competitors• Large number of banks• Strong exit barriers• Low switching costs
Threat of substitutes• Deposits in posts• Non Banking financial sector growing rapidly
Bargaining power of consumer• Numerous alternatives• Low switching costs• Increasing consumer awareness
Threat of new entrants• Product differentiation very difficult• Entry barriers
Bargaining power of suppliers• RBI rules and regulations
Industry Analysis
Industry Size
India’s GDP (USD Billion PPP) – 4057Share of Services (% of GDP) – 55.2Banking and Insurance Size (USD Billion) – 395.96
Source:http://www.interlinkre.com
0.18%
9.40%1.81%
2.53%2.74%
9.76%
26.94%20.61%
14.67%
11.36%
Composition of Service Sector
StorageTransportRailwaysHotels & Rest.Commu.Banking & InsuranceTradeReal EstateOther ServicesPublic Admin. & Defence
Growth
2005-06 2006-07 2007-08 2008-09 2009-100.00%
5.00%
10.00%
15.00%
20.00%
25.00%
15.90%
20.60%
16.70%
14.00%
11.30%
Annual growth in Banking and Insurance sector which forms a part of India’s services
Annual Growth
Source:http://www.interlinkre.com
Segmental AnalysisReserve Bank of India
Scheduled Commercial Bank
Non-Scheduled Commercial Bank
Local Area BankCo-operative BankCommercial Bank
Foreign24 Urban Bank State Bank
Private Sector22
Regional rural6
Public Sector26
New7 Old15SBI Group7 Nationalized19
Basis of CompetitionThe following factors have influenced the increase in competition in the banking sector
Profitability - Higher profitability compared to the past or international standards. This attracts new entrants which increases the competition in the industry Technological Changes – This enable quicker and more efficient service Product Innovations – Features such as home banking, ATMs etc are making the industry fiercely competitive Entry/Exit Norms – Though regulatory barriers have been eased, desirable barriers exist in the form of capital and other requirements Increasing consumer awareness - consumers of banking services are getting increasingly agile, enlightened, cost and quality conscious. They are already forcing the pace of competition on price, product and quality products
Critical Success Factors
Critical Success Factors
IT
New Technology
Low Employee CostManaging NPAs
Diversified Products
Demand Drivers
High Economic Growth
Increase in purchasing power
Sectors showing growth
Retail Infrastructure Telecom Rural Markets Exports/Imports
Key EventsMain mergers and acquisitions in the Indian banking sector
HDFC Bank acquires Centurion Bank of Punjab (May '08)
Standard Chartered acquires ANZ Grindlays Bank (November '00)
Bank of Baroda acquires South Gujarat Local Area Bank Ltd (June '04)
ICICI Bank acquires Bank of Madura (March '01)
Oriental Bank of Commerce acquires Global Trust Bank Ltd (August '04)
RegulationsBanks in India are governed by the Reserve Bank of India.
Banking Regulation Act, 1949As per Section 5(c) of Banking Regulation Act, 1949 a "Banking Company" means any company which transacts the business of banking in India.
Explanation: Any company which is engaged in the manufacture of goods or carries on any trade and which accepts the deposits of money from public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause.
As per Section 5(b) of Banking Regulation Act, 1949 , banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise. Source: http://fiuindia.gov.in
Financial Analysis Deposits (Rs. Crore)
Public Sector Banks; 437298
5
Private Sector Banks; 100275
9
Foreign Banks; 240689
Source-http://www.rbi.org.in/home.aspx
Deposits0
200000
400000
600000
800000
1000000
1200000
14000001245862
225602 208586 189237
SBI & Associates ICICIHDFC AXIS
CAR0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
11.98%
19.50%16.20%
12.65%
SBI & Associates ICICIHDFC AXIS
CAR of Different Banks
DepositsDeposits
SWOT AnalysisPolicies such as strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks
Bank lending has been a significant driver of GDP growth and employment.
Due to the vast networking & growing number of branches & ATMs, Indian banking system has reached even to the remote corners of the country
The public sector banks holdover 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively
The cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies
The government has refused to dilute its stake in PSU banks below 51%
Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance etc.
Strengths
Weaknesses
The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side
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
Reserve Bank of India (RBI) has approved a proposal from the government to amend the Banking Regulation Act to permit banks to trade in commodities and commodity derivatives
Opportunities
Threat of stability of the system: failure of some weak banks has often threatened the stability of the system.
Rise in inflation figures which would lead to increase in interest rates.
Increase in the number of foreign players would pose a threat to the PSB as well as the private players.
Threats
Key Segments
Wholesale Banking Services
Retail Banking Services
Treasury
Segmental Presence of HDFC
Wholesale Banking Services• The Bank’s target market ranges from large manufacturing companies in the Indian
corporate to small & mid-sized corporate and agri-based businesses• HDFC provides a wide range of commercial and transactional banking services,
including working capital finance, trade services, transactional services, cash management, etc.
• The bank is also a leading provider to corporate customers, mutual funds, stock exchange members and banks
Corporate-
• Funded Services• Non Funded Services• Value Added Services• Internet Banking
Small and Medium Enterprises-
• Funded Services• Non Funded Services• Specialized Services• Value added services• Internet Banking
Financial Institutions and Trusts-
• BANKS- Sub-Membership ,RTGS – sub membership, Fund Transfer, ATM Tie-ups, Tax Collection Financial Institutions
• Mutual Funds• Stock Brokers• Insurance Companies• Commodities Business
Retail Services
Loan Product
• Auto Loan• Loan Against
Property• Personal loan• Credit card• Commercial
vehicles finance• Home loans• Retail business
banking• Working Capital
Finance• Health Care
Finance• Education Loan• Gold Loan
Deposit Product-
• Saving a/c• Current a/c• Fixed deposit• Demat a/c• Safe Deposit
Lockers
Investment & Insurance-
• Mutual Fund• Bonds• Insurance • Equity and
Derivatives• Mudra Gold Bar
Cards and Services-
• Credit Card• Debit Card• Prepaid Card• Bill pay• Direct Pay• Visa Money
Transfer• Online Payment of
Direct Tax• Mobile Banking• ATM• Phone Banking• Email Statements• Branch Network
Treasury
Foreign Exchange and Derivatives
To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio
FINANCIAL PERFORMANCE (in crore)
March 31, 2011 March 31, 2010
Deposits and Other Borrowings
208,586 167,404
Advances 159,982.7 125,830.6
Total Income 14,878.28 12,369.53
Profit before Depreciation and Tax
5,818.66 4,289.14
Net Profit 3,926.4 2,948.7
Financial Analysis
Non Performing Assets (%)
Year0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%1.74%
1.54%
0.48%
2009 2010 2011
Profit After Tax in (Rs. Crore)
Years0
500
1000
1500
2000
2500
3000
3500
4000
4500
1141
1590
2245
2949
3926
2007 2008 2009 2010 2011
DPS (Rs.)
Year0
2
4
6
8
10
12
14
16
18
78.5
10
12
16.5
2007 2008 2009 2010 2011
EPS (Rs.)
Year0
10
20
30
40
50
60
70
80
90
36.3
46.252.9
67.6
85
2007 2008 2009 2010 2011
Balance Sheet Size (Rs. Crore)
Year0
50000100000150000200000250000300000
183271222459
277353
2009 2010 2011
Advances (Rs. Crore)
Years0
50000100000150000200000
98883125831
159983
2009 2010 2011
Deposits (Rs. Crore)
Year0
50000100000150000200000250000
142812167404
208586
2009 2010 2011
Savings Deposits (Rs. Crore)
Year0
20000
40000
60000
80000
3491549877
63448
2009 2010 2011
Retail Assets (Rs. Crore)
Year0
20000400006000080000
100000
53548 6316180113
2009 2010 2011
Net Interest Margin (%) (Denotes Core NIM)
Year4
4.14.24.34.44.5
4.2
4.4
4.2
2009 2010 2011
Capital Adequacy (%)
Year14.5
1515.5
1616.5
1717.5
18
15.7
17.4
16.2
2009 2010 2011
Return on Capital (%)
Year15.8
1616.216.416.616.8
17
16.2
16.816.5
2009 2010 2011
ATMs (Nos.)
Year0
100020003000400050006000
32954232
5471
2009 2010 2011
Cities (Nos.)
Year0
200400600800
10001200
200920102011
Debit Cards (Nos. in Lacs)
Year0
40
80
12090.8 98.3
115.5
2009 2010 2011
Credit Cards (Nos. in Lacs)
Year40
45
50
55
43.9 44.5
50.5
2009 2010 2011
Rupee Earned in 2010-11
62.18%19.05%
14.82%
3.24%0.71%
Interest from Advances = 62.18%Interest from Investments = 19.05%Commision, Exchange & Brokerage = 14.82%FX & Derivative Income = 3.24%Other Interest Income = 0.71%
Rupee Spent in 2010-11
41.48%
31.62%
8.43%
8.36%
6.15%3.96%
Rupee Spent
Interest Expense = 41.48%Operating Expense = 31.62%Provisions = 8.43%Tax = 8.36%Transfer to Reserve = 6.15%Dividend & Tax on Div-idend = 3.96%
Financial Analysis• HDFC Bank has a consistent high CAR Ratio, which signifies the solid position
of the bank.• NPAs of HDFC Bank are very low. This shows the banks good relations with
its customer.• Deposits are increasing continuously which shows the good services
provided by the bank.• NIM for the bank is also good which further solidifies its position in the
market.• Profit margins are increasing year by year.
List of Products and Services• No-limit Credit Cards• Forexplus Platinum Card• Mobile Bank Account with Vodafone • Product called “Mirevenue”• Dual Rate Loans• Move-In Home Loans• Quickremit• Tie-up with International Bank of Qatar• SWIFT - Personal Loan• Debt Fund for Cancer Cure
Products and Services
Competitive Analysis• India’s banks have grown at a rapid pace over the past 2 decades after the
financial liberalization
• This growth has still lacked in meeting the massive demand in the need of financial intermediation. It has led to the growth on non-banking financing companies (NBFCs) and microfinance companies
• Major banks in India are either state owned or previous government owned institutions which have been fully privatized like ICICI and HDFC Bank
Competitive Analysis
Competitive AnalysisState Bank of India (SBI) SBI is India’s Largest Bank which is majority owned by the government. The
Company has a number of Subsidiaries and has been a market outperformer in recent times. Revenues of $22 billion. The SBI has 7 subsidiaries of which 2 have been merged and 5 are remaining– State Bank Bikaner Jaipur– State Bank of Hyderabad– State Bank of Mysore– State Bank of Patiala– State Bank of Travancore
Punjab National Bank Punjab National Bank (PNB) , is the second largest PSU bank with about
5000 branches across 764 cities The Bank like BOB and SBI has shown good growth while at the same time
managed to control bad debt
Competitive AnalysisICICI Bank This is the largest Indian Private Bank with operations in all Financial
Services Sectors. The Company has faced a bad time during the Lehman downturn but has recovered well
Revenues of $12.5 billion. ICICI Bank is strong in almost all sectors of the financial industry with one of the best management teams in the country
The company which overextended itself in the 2007-2008 boom has now reduced the size of its risky segments and is again back on the growth trajectory
Axis Bank Axis Bank has been the best performing private bank along with HDFC
Bank showing excellent growth in top line and bottom line The Bank has been expanding into insurance and investment banking
(acquired Enam) The Bank was promoted jointly by UTI, LIC and other state owned general
insurers
Direct Comparison – HDFC Bank Vs Axis Bank - Q2 FY2010
1. Interest on Advances 13. Basic EPS 2. Interest Earned 14. Percentage of Gross/Net NPA3. Total Income 15. Market Price and PE Ratio4. Interest Expended5. Employees Cost6. Other Operating Expenses7. Operating Profit8. Provisions9. Tax Expense10. Net Profit11. Paid-up Equity12. Capital Adequacy Ratio
SWOT - HDFCSTRENGTHSLeader in home loan segment Right strategy for productsBrand imageHigh degree of customer satisfactionRobust Risk control FrameworkLarge network, Distribution structure
OPPORTUNITIES
Untapped rural market
Fast growing insurance business
WEAKNESSESStrict policy of fundingNot very aggressive on M&A Low international presenceControversies like job cuts, racism and data loss have affected image
THREATSRisk of fraud and NPAMajor private playersRBI policiesIncrease in funding costEconomic instability and global crisis
SWOT for HDFC and competitors
SWOT - ICICISTRENGTHSGlobal player in International Banking operations in 18 countriesPioneer in usage of Internet services for Online Banking Advanced infrastructure with sound IT base
OPPORTUNITIESRise in upper and middle class population due to increase in GDP, therefore could introduce economical version of their servicesLargely unexplored market in regions where only PSBs operate
WEAKNESSESHigh Bank Service ChargesLess Credit Period
THREATSTight local and international competition ICICI levies higher service charges- transactions expensiveICICI Bank provides all services through electronic computerized machines. This creates problems to the less educated people
SWOT - AXISSTRENGTHSSound technological platform Current Account deposits grew by 24%yoyRetail Banking: Savings Bank Deposits by 29% YOY
OPPORTUNITIESLarge retail and corporate marketWide scope in rural IndiaOther Activity (Non Banking Activity)People are become more service oriented
WEAKNESSESMarket capitalization is very lowNot having Image - UTI (fraud)Higher costCustomer service
THREATSGovernment Rules And RegulationVery high competition with Private sector (ICICI Bank, HDFC bank) or public sector (BOB, PNB)banksCapital Market slow-downRising Rates
SWOT - YESSTRENGTHSHigh Quality, Customer Centric, Service DrivenAdopted International Best Practices, the highest standard of service, quality and operational excellenceCredible And Transparent Performance Management Process
OPPORTUNITIESVery wide marketOther activity(insurance, stock broking, mutual fund)Wide scope in rural area
WEAKNESSESLess wide networkNot in every stateLess promotional activityUnknown brand
THREATSVery high competition Private bank market (ICICI Bank, HDFC bank), In public sector (BOB, PNB)Government PolicyOther better Saving, investment option available
SWOT - SBISTRENGTHSStrong domestic market position, sustaining reach and customer confidenceWide Distribution NetworkGovernment owns 60% stake in SBI-customer securityOffers very low transition costs
OPPORTUNITIESHighest beneficiary from increasing adoption of E-transactionsInformation technology - decrease transaction costMerger with associate banks Addition of more branches and ATMs
WEAKNESSESThe existing hierarchical management structure - barrier to changeHas the highest non performing assets Susceptible to political interventionLags in terms of modernization of its processes, infrastructure, centralization
THREATSLarge numbers of MNC banks mushroomingPrivate banks venturing into the rural and semi-urban sector, which used to be the bastion of the State Bank and other PSU banks
Key Focus
• Understanding of customers’ financial needs and providing banking solutions• Wide range of products and services to cater both retail and wholesale customer segments• Market Leaders in various products of retail banking such as Credit Cards and Auto Loans• Providing financial services to the under banked and rural sector• Helping Farmers with products like Tractor Loan, Kissan Gold Card, Loan against Warehousing Receipts etc• In line with growth strategy today 30% of the branches are located in rural and under banked areas
Strategic Decisions
Merger with CBoPAbout Centurion Bank of Punjab
Was one of the leading private sector bank in India
Strong nationwide presence with 394 Branches and 452 ATMs in 180 Cities
Employee base of more than 7500
Was listed in major stock exchanges
Strong player in FOREX services, personal loans, mortgages and agricultural loans
Merger with CBoPReasons of Merger
HDFC wanted to add scale, geography and experienced staff to its franchise
CBoP was the right fit in terms of culture, strategic intent and approach to business
Merger was Win-Win situation for both the banks
Combined entity became even more strong in the banking market
Merger with CBoPDetails of Merger
Finalised on 26th Feb., 2008
Swap Ratio of 1:29 (1 share of HDFC Bank for every 29 shares of CBoP Bank)
Acquisition came for Rs.9510 Crores, one of the largest merger in banking history of India
Merger was EPS Dilutive for HDFC Bank in the interim
Strong Deposit Base of Rs. 120000 Crores and Net Advances of around Rs. 85000 Crores
Current Business Strategy• Develop innovative products and services that attract its targeted
customers and address inefficiencies in the Indian financial sector• Leverage its technology platform and open scalable systems to deliver
more products to more customers and to control operating costs• Focus on healthy earnings growth with low volatility• To increase the market share in the growing banking industry by following
a disciplined growth strategy, focusing on quality and not on quantity and delivering high customer service
• To maintain the current high standards for asset quality through disciplined credit risk
• To develop innovative products and services that attract the targeted customers
• To continue developing products and services that reduce the cost of funds.
Current Strategies
State Bank of India• State Bank of India (SBI) is the largest nationalized commercial bank in
India in terms of assets, number of branches, deposits, profits and workforce. With the liberalization of the Indian banking industry in the mid-1990s, SBI faced stiff competition from the private sector and foreign banks which resulted in significant loss of its market share.
Strategies adopted by Key Competitors
ICICI Bank• ICICI Bank Second largest bank in India
• Strong diversified financial services franchise in India
• ICICI Bank has taken up specific initiatives to ramp up financial literacy as well as intermediation to the underserved and under-banked segments in both rural and urban areas
• ICICI Bank offers a complete suite of products and services to meet the individual financial requirements of customer segments. Savings, investments and insurance products are made available to its rural and agri customer base
• The Bank also offers microfinance services to low-income households and crop loans, farm equipment loans, commodity based loans to farmers.
Axis Bank• 3rd largest private sector bank
• Aggressive branch and ATM expansion to 1021 branches and 371 ATMs to be upcoming in tier II and Tier III cities.
• Expanding global reach by way of setting up 3 branch offices in Singapore , Dubai and Hong Kong and 2 representative offices in Shanghai and Dubai recently
• Axis Bank offers a vast spectrum of services encompassing Large and Mid-Corporate Banking, SME Banking, Agri-Business Banking, Retail Banking and International Banking.
Axis Bank• Axis Bank's network of over 1,200 branches and 4,900 ATMs is spread
across more than 680 cities and towns across the country
• Instead of piecemeal efforts of promoting their debit card, the bank has launched what it calls the first ever filmi Platinum debit and credit card across 25 cities in India. The objective — to offer movie deals on movie tickets through one exclusive card. The bank therefore hopes to carve out a niche in a space not fully explored by competition
Successful Strategies• Focusing on the expansion of retail and rural banking
• Increasingly customer - centric in their approach
• Mergers and acquisitions
• Strong national network
• Mission is to be "a World Class Indian Bank", benchmarking themselves against international standards.
Critical Analysis
Successful Strategies• Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance
• Develop new product and technology is the main business strategy
• Increase market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.
• Leverage our technology platform and open scalable systems to deliver more products to more customers and to control operating costs
• Develop innovative products and services that attract the targeted customers that reduce bank’s cost of funds
• Focus on high earnings growth with low volatility
Successful Strategies
Where Did They Go Wrong?• FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top
bracket of clients and does not cater to the needs of small customers. Due to this reason the bank may sometimes loose good clients
• Not Equal to International Standard
• Highly depended on individuals loans
• Major Stake held by American financial group which are under stress in economic slow down
Where Did They Go Wrong?• Managerial international presence
• No next line of leadership
• Lack of infrastructure in rural area
• Minimum balance to open a account is very high
• Extension overseas holds lots of risk
• Credit card department is not active
THANK YOU
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