PESTEL ANALYSIS ON STATE BANK OF INDIA

Political factors affecting state bank of India To what a degree government intervenes in the economy . ex- TAX,policy,labour laws ,environmental laws, trade restrictions , tariffs, and political stability some of the major political factors affecting in the banking industry are : focus on regulation on government budget and budget measures foreign direct investment limits.

FOCUS ON REGULATION ON GOVT

Indian banking sector is least affected as compared to other Developed countries- thanks to robust policy frame work of RBI Government affects the performane of banking sector most by legislature and framing govt policy through its budget affects the banking activites securitization act has given more power to banking sector against defaulting borrowers. Stricter prudential regulations with respect to capital and liquidity gives india an advantage in trems of credibility over the countries . To support capitalisation, the govt has infused 23,200 crore into state owned banks during the last 3 ficals.

Foreign direct investment limits

To move to increase foreign direct investment FDI limits to 49 %from 20 % . During 1st quarter of this fiscal came as welcome announcement to foreign players wanting to get a foot hold in indian markets by investing in willing indian partners who are starved of net worth to meet CAR norms Ceiling for FDI investment in companies was also increased from 24.0 t0 49.0 %. And have included within the ambit of FDI investment

Budget measures
Increse farm credit subvation of 1% to be paid as incentives to farmers Debt waiver for farmers Setting up of separate task force for those not covered under the debt waiver scheme.

GDP
indian economy as registered robust growth in past years and banking sector is directly releated to growth of the economy GOI is trying to push the economy by framing favourable policies , NRI, investment plans which directly affects the GDP. These plans directly affects banking industry as money comes through banks and bank earns interest on that.

SWOT Analysis for SBI

Strength

1. The biggest bank in the country 2. Has a separate act for itself. Thus, a special privilege. 3. Biggest branch network in the country 4. First public sector to move to CBS(CORE BANKING SOLUTION )

Weakness

1. Huge amount of staff 2. Expected to experience high level of attrition due to retirement of its top management 3. Still carries the image of the old Govt. sector bank

Opportunity

1. Pool in talent to replace the going top management to serve the next generation 2. Make better use of its CRM 3. Expansion into rural areas

Threats

1. Consolidation among private banks 2. New bank licenses by RBI 3. Foreign banks that have sophisticated products
Competitors

1. ICICI 2. PNB 3. Bank of Baroda

THANK U

BY HARISH.AYNAPUR BBA 11BSUHH010019