marketing - banking (sbi & hsbc) - final

7/29/2019 Marketing - Banking (SBI & HSBC) - FInal

1/23

Prepared By:Puneet AroraRavi Prakash

Saurabh Jain

Shubhayan Banerjee

Sushant Gupta

Vaibhav Kabra


2/23

History of Indian Banking

Indian banking system can be segregated in 3 phases:-

1. Phase-I (1786-1935): Early phase where many small banks were formed.

2. Phase-II (1935-1969): Pre Nationalisation, Regularisation & establishment ofRBI

3. Phase- III (1969-1990): Post Nationalisation, Regularisation & Growth of Indian

Banking

4. Phase-IV (1991 onwards): Liberalisation and its aftermath


3/23

PHASE 1- First bank was established in 1786.The British East India Company established Bank ofCalcutta in 1806 and later Bank of Madras & Bank ofBombay. The above 3 banks merged in 1925 to formImperial Bank of India. With stability of Indian

Economy in at the beginning of 20th Century ImperialBanks played a vital role. The Swadeshi movementinspired local businessmen and political figures tofound banks of and for the Indian community. Manybanks were established namely Bank of India,Corporation Bank, Indian Bank, Bank of Baroda,Canara Bank and Central Bank of India

PHASE 2 - The RBI was established in1935.

Main functions of RBI were

1. Regulate the issue of banknotes.

2. Maintain reserves with a view to securingmonetary stability.

3. To operate the credit and currency system of thecountry to its advantage.

SBI was formed in 1955, ICICI bank was formed in1955. IDBI was formed in 1964.

PHASE 3- Nationalisation of 14 major privatebanks by Govt. of India in 1969 followed by 7 otherbanks in 1980.

NABARD was set up in 1982, an apex institution forAgricultural & Rural credit.

BIFR came into existence in 1987 under SickCompanies (Special Provisions) Act 1985.

PHASE 4- In 1991 Narasimhan Committee

recommended for Financial Sector Reforms.

RBI was given the prime responsibility for regulating

the banking system

Larger role for Securities Exchange Board of India(SEBI), particularly as a market regulator rather thanas a controlling authority.

HISTORY


4/23

Indian Banking Scenario


5/23

Evolution of SBI


6/23

Evolution of HSBC


7/23

HSBC INDIA HISTORY

The antecedents of the HSBC Group in India canbe traced back to October 1853 when theMercantile Bank of India was founded in Bombay.

The acquisition in 1959 by The Hongkong andShanghai Banking Corporation Limited of theMercantile Bank was a decisive factor in layingthe foundation for today's HSBC Group.

Through the 1990s, HSBC has vigorouslydeveloped its role as one of the leading bankingand financial services organisations in the world.Its strategy of 'managing for value' emphasizesthe Group's unique balance of business andearnings between older, mature economies andfaster-growing emerging markets.


8/23

Needs Catered

Real

NeedStated

Need

Delight

NeedUnstated

Need


9/23

Major

Players inIndian

Banking
http://www.canarabank.com/English/Home.aspx


10/23

Major Players in Indian Banking(Contd.)

Bank NameRevenue

(2010-11)

Net Profit

(2010-11)

Total Assets

(2010-11)

Growth Rate

(2010-11)

SBI 97218 8264 1223736 14.1%

ICICI 32621 5151 406233 28%

PNB 30599 4433 378325 13.53%

HDFC 24263 3926 277352 33.2%

AXIS 19786 3388 242713 26%

Bank of India 24393 2488 351172 42.94

HSBC 6983 3074 91148 88.61%

Canara Bank 25767 4025 336078 33.2%

Bank of Baroda 24695 4241 358397 38.7%

Central Bank of India 16485 1253 209757 18.33%

Growth Rate is in terms of Net income

All figures are in INR (Crores)


11/23

Future Potential of Banking Sector

In contrast to the financial system in the west, Indian financial systemremains well capitalized with moderate levels of leverage, a stable depositbase, and relatively safe investments. With sustained growth in the realsector, banking is bound to see a huge scale-up in the present decade withnew operating systems, delivery channels and methods and techniques tomanage the risks associated with such growth. There is significant scope

for the growth of banking assets from the current level of about 30 percent of GDP and a change in their composition between the public and theprivate sector. In short, a paradigm shift in banking systems and technologyis possible and desirable.

Union Finance Minister

Pranab MukherjeeBusiness World Best Bank Awards Function

Mumbai

19th November, 2011


12/23

Economic Environment

Global Financial Crisis

Consolidation

Steady Growth

Regulatory Environment

Deregulation ofinterest rates

Implementation of strict capital norms

Easing up the License norms

Technological Advancement

Introduction of Core Banking Solutions

Increased usage of Internet & Mobile banking


13/23

SBI SWOT ANALYSIS

Strength

Trusted Brand name , Market Leader, Wide Distribution Network,Government Owned, Diversified Portfolio

Weakness

Beaurocratic management, Lacks modernisation, Government

Obligations, Less empowerment of Employees, Poor CRM.

Opportunities

Merger of associate banks with SBI, New Branches and ATM's,Expansion on Foreign soil, Growing economy.

Threat

Advent of MNC banks, Private banks venturing into the rural,Opening up of norms for new players, Bank Licences to privateplayers.


14/23

HSBC SWOT ANALYSIS

Strength

Large Capital base, unlikely to borrow money, More autonomy,Strong presence in emerging markets, Global presence, thusbetter risk mgmt

Weakness

Poor reach due to small branch network, Strong investment in

small business sector, Global branding may be taken negativelyby few customers

Opportunities

High level of capitalisation to acquire assets, Adequate capital topurchase stronger banks, Opening up of Indian banking sector forforeign players, Rising disposable income and requirement for

personalised services.

Threat

Trust in banks has decreased due to financial losses, Claims oflosses in US sub prime markets.


15/23

PORTER FIVE FORCES SBI

Buyer Power: Low Threat of New Entrants: Low

Supplier Power: Low Threat from Substitutes: Low

CompetitiveRivalry: High


16/23

PORTER FIVE FORCES HSBC

Buyer Power: High Threat of New Entrants: Low

Supplier Power: High Threat from Substitutes:Moderate

CompetitiveRivalry: High


17/23

Base DescriptorSBI HSBC

Demographic

Age

Child Account

Student Account

Senior Citizen Account

Child Account,

Senior Citizen Account

SexWomens Account

Womens Account

Family

lifecycle

Higher Education Loan

Life Insurance Plan

Retirement Plan

Started JobInvestment

plans

Life Insurance Plans

Income Normal Salary Account

Salary AccountsPremier >2.5Lac,

Advance >50k-2.5Lac


18/23

SBI HSBCSegment: Mass Audience like retail,

corporate, SMEs, Govt. depts.Segment: HNI customers & Corporates.

General Banking Solution Customised Banking Solutions

Easy reach due to Wide Branch Network International Banking Services

Solutions to SME business needs as well as

needs of large CorporatesSolutions to Global Corporates

Focuses on pure banking solution relatively

than investments

Primarily focus on investment solutions, NRI

services.

Plain vanilla retail bankingSpecialised privilege banking & wealth

management services

Caters to banking needs of all Govt. bodiesMajorly catering to large Corporates and

MNCs

Major Benefits/Solutions for Target Customers


19/23

Similaritiesin

customers

Customer Lifecycle based

solutions

Ease /convenienceof banking

Customers havetrust in both the

brands

Seek Securityand Credibility

Meet the basicbanking needs of

customers likesaving and

investment

Both SBI andHSBC cater to

UrbanMarket

customers


20/23

Difference in Customers

SBI HSBC

Mass Banking so penetration even to rural

customersPresence in major cities only

Customers are not that tech savvy Customers are very tech savvy

Customers rely on branch network Rely more on RMs

Saving Oriented Investment Friendly

Do not seek preferential treatment Customers seek preferential treatment

SBI has literate as well as literate customers Highly Literate customers


21/23

SBI Strategic Decisions

1. Technological Advances and greater Financial Inclusion

2. Focus on Customer Centric Banking Environment

3. Consolidation (take over among associates)

4. To open 100 Overseas Branches in next 2 Years (3-Nov-11)

5. Tie up with Moneygram for money transfer services (17-Nov-11)


22/23

HSBC Strategic Decision

1. Increasing Unsecured Loans (19-Nov-11)

2. HSBC Living Business SME Award

3. HSBC eye on RBS' India Retail Business


23/23

Bibliography

www.statebankofindia.com

www.hsbc.co.in

www.youtube.comwww.sbicard.com

www.indianexpress.com

www.rbi.org.inwww.livemint.com

www.afaqs.com

marketing - banking (sbi & hsbc) - final

Documents