PRESENTED BY: Learning Group 6 (PGPM-11B)

-Vasundhara Kedia - Sourabh Soni - Sudeshna Chowdhary - Niloy Biswas - Sauryadipta Basu - Mandeep Pradhan

INDIAN BANKING INDUSTRY

PHASES OF THE BANKING INDUSTRY LIFECYCLE

Phase I : Indigenous banks Phase II : Direct Intervention Phase III : Liberalization Phase IV : Transition Phase V : Entry of Foreign Banks

TECHNOLOGY TRENDS IN BANKING INDUSTRY

SWOT ANALYSIS OF BANKING INDUSTRY

PORTERS FIVE FORCES MODEL FOR BANKING INDUSTRY

THE GENERIC VALUE CHAIN: BANKING INDUSTRY

CRITICAL SUCCESS FACTORS OF BANKING INDUSTRY

Access to technology Computerization Low employee cost Management of NPAs Transparency of public disclosure and best

practices Diversified products

PESTLE ANALYSIS OF BANKING INDUSTRY

Political Factors Economic Factors Social Factors Technological Factors Legal Factors Environmental Factors

KEY TRENDS IN BANKING INDUSTRY

KEY TRENDS IN BANKING INDUSTRY (contd.)

ICICI BANK

ICICI BANKS : FACTS

It was incorporated in India in 1994.

It is the India's second-largest bank with total assets of Rs. 3,674.19 billion (US$ 77 billion) at June 30, 2009 and profit after tax Rs. 8.78 billion for the quarter ended June 30, 2009.
The Bank has a network of 1,532 branches and about 4,816 ATMs in India and presence in 18

countries.

SUBSIDIARIES

BUSINESS STRATEGY OF ICICI BANK

1. Focus on Quality Growth Opportunities 2. Maintaining and Enhancing its Strong Retail Franchise 3. Maintaining and Enhancing its Strong Corporate Franchise 4. Build an International Presence 5. Build a Rural Banking Franchise

BUSINESS STRATEGY OF ICICI BANK (contd.)

6. Strengthen Insurance and Asset

Management Businesses 7. Emphasize Conservative Risk Management Practices and Enhance Asset Quality 8. Use Technology for Competitive Advantage 9. Attract and Retain Talented Professionals

SWOT ANALYSIS OF ICICI BANK

SWOT ANALYSIS OF ICICI BANK

PORTERS FIVE FORCES MODEL FOR ICICI BANK

Threat of Intense Segment Rivalry: Because of immense

potential in this sector, intense competition exists in this sector. Major competitors are LIC, Bajaj Alliance, HDFC, Franklin Templeton, Reliance, UTI etc. to government regulations and exist barrier is low due to which new firms can enter into the industry and poorperforming firms can easily exit.

Threat of new entrants: Entry barrier is high especially due

Threat of substitute Product: Threat exists from

substitutes, specifically from well established competitors like LIC

PORTERS FIVE FORCES MODEL FOR ICICI BANK

Threat of Buyers growing Bargaining Power: The buyers switching cost is low in the financial

investment sector which offers them more bargaining power.

Threat of Suppliers Growing Powers: In this segment, the suppliers bargaining power is more, because banks and CA are the easiest and the important channel to reach the client and for

that reason they have the strong bargaining power.

BCG MATRIX FOR ICICI BANK

I.

ICICI Prudential: Since the company was established with the collaboration between ICICI Bank and Prudential plc which helped to increase their profit. It can be stated that it follows under CASH FLOWS. Also since the growth was at the rapid space along with the high market share it is also categorized under STAR.

II. ICICI Lombard:

The company was established with the collaboration between ICICI bank and Fairfax Financial holding, it can be stated it falls under the category of CASH FLOWS. Also since the growth was at the rapid space along with the high market share it is also categorized under STAR.
III. ICICI Home Finance:

Since the company, had large amount of cash for inflow and outflow, in addition to the balance sheet, it falls under category of STAR.

CRITICAL SUCCESS FACTOR AND WEIGHTAGES OF EACH FACTOR

The CSF of the Banks depends on the Business strategy adopted by the Bank. As per the Miles and Snow (1985) Studys four types of strategy, which is one of the "best known" and most widely accepted models for bank growth, are

Prospector : The Prospector usually attempts to enter a new market and adjusts his/her products and services in a timely manner
Analyzer: An analyzer is identified as a cost saver and/or efficiency promoter, especially in risk and innovative businesses and is always the second company to enter a new market Defender: A defender is an expert on managing an experienced task in a stable market, with stability and security as key principles Reactor: A reactor is a contingency player and typically lacks a consistent strategy.

CRITICAL SUCCESS FACTOR AND WEIGHTAGES OF EACH FACTOR (contd.)

ICICI Bank has been in the market since 1990s and can be

classified under Analyzer and defender The CSF required for following these strategies is,

GENERIC VALUE CHAIN OF ICICI BANK

BUSINESS MODEL OF ICICI BANK

12 DIMENSIONS OF BUSINESS INNOVATION FOR ICICI BANK

12 DIMENSIONS OF BUSINESS INNOVATION FOR ICICI BANK (contd.)

INNOVATION RADAR FOR ICICI BANK

SERVICE GAP ANALYSIS OF ICICI BANK

CONCLUSION AND RECOMMENDATIONS

1. A Major revamp of its Customer care.

2. Penetration into Rural Market with E Commerce Facility. 3. Introduction of Smart Cards for New as well as Old Credit Card Holders. 4. Concentrate on Building Brand Image.

CONCLUSION AND RECOMMENDATIONS (contd.)

5. Formulation of a Win - Win Situation to reduce Non Performing Assets. 6. Completely separation of other alike Businesses like Insurance, Mutual Funds etc.
7. Major re-look at working of their Agents. 8. Reduction of Penalty Fees & Special Service Fees.

THANK YOU