NICT Assignment

By : Anand Chaurasia

1) Do you think NICT should take up PBI Offer?
In my opinion, NICT shouldnt take up the PBI offer. Below are some of the reasons for it to
do so:
NICT is already working in joint collaboration with SBI & BOI.
PBI plans to become the largest bank in the country by collaborating with NICT and
thus diversifying to the banking sector.
SBI & BOI two of Indias largest public banks would oppose this collaboration.
The founder of NICT, Mr. Mukesh Hajela was in favour of a stabilised system by
being in collaboration with SBI & BOI.
Although, collaborating with PBI would give them the opportunity to engage the rural
population, but with SBI & BOI two institutes which are primarily known for their
service to the nation as a bank, they still could serve the rural market segment
successfully.
PBI in rural areas would be perceived more as a post office, which was its primary
function rather than as a banking entity.
Moreover, collaborating with PBI would narrow NICTs portfolio rather than making
it more diverse.
More importantly, NICT was a unique IT social enterprise built on the ethics to serve
the society. Collaborating with a lacklustre and inefficient entity like the PBI would
be a dent to its reputation.

2) What are ramifications with respect to SBI & BOI if it takes up PBI Offer?
Below are the ramifications for SBI & BOI:
SBI & BOI would lose their customers and market share, as PBI would become the
largest bank in India.
PBI with its reach in the rural areas would be able to make a good impact onto the
customers.
With a good technological partner in NICT, PBI would be able to provide better
services to its customers in a much quicker time.
PBI if it diversifies to the urban areas would do better, as it would have a stronger and
reliable technological partner in NICT tom assist them.
With support from the Government of India and the policy for extending financial
inclusion to around 22 Million people, PBI with its extensive reach would be a good
tool in the hands of the government rather than SBI with its not so extensive reach.