Preview

PEST & POTER Analysis of State Bank of India

Powerful Essays
Open Document
Open Document
1501 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
PEST & POTER Analysis of State Bank of India
State Bank of India

SUBJECT : PEST & POTER Analysis of State Bank of India

This assignment’s main objective is to provide PEST and POTER’s five force analysis.The service provider ‘State Bank of India’ is the subject of investigation in this assignment.State Bank of India is a well know financial provider in banking industry and is an state owned entity. SBI is a regional banking behemoth and is one of the largest financial institutions in the world.

PEST ANALYSIS
PEST analysis stands for “Political, Economic, Social and Technological analysis” and describes a framework of macro environmental factors used in the environmental scanning component of strategic management.

Political Analysis
The expected integration of various intermediaries in the financial system would require a strong regulatory framework . It would also require a number of legislative changes to enable the banking system to remain contemporary and competitive.The principal governing body of all financial providers in India is RBI(Reserve Bank of India) and SEBI (Securities and Exchange Board of India ). SBI has to always adjust with the new policies regulated by RBI & SEBI , sometimes it leads to uncomfortable situations , not only for SBI but other financial providers.
For example : RBI’s guidline to limit banks ' exposure to their own group non- financial and financial entities. Such guidlines lead to credit negative for group companies that rely on parent banks for capital and brand support. Frequent changes in interest rates to manage inflation. There is also rifts between RBI and SBI over high percentage of CRR . International legislations like BASEL II and policies of IMF also effect the bank to a certain extent.
Though being a public sector bank SBI enjoys surplus funds
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Sebi
    • 1309 Words
    • 6 Pages

    Sebi

    Nebody knows about the Sebi's latest Announce .....?CNBC-TV18 has learnt from sources that Sebi is likely to propose shortswing rule in India. The move restricts company insiders from making short-termprofit at the company’s expense.It is a move that could potentially have a big impact on promoters of listed companies. Market regulator Sebi is proposing to put in place a new rule-theshort swing rule- in India. This is similar to one that exists in the USA.The rule prevents company insiders, who have greater access to materialinformation, from taking advantage of the information to make short-term profits.So, Sebi proposes that company insiders buying and selling their company's stock within…

    • 1309 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Indian Scenario After the Global Financial Crisis
    • 569 Words
    • 3 Pages

    Indian Scenario After the Global Financial Crisis

    the system. With this in mind, the RBI have reduced the Cash Reserve Ratio, the repo rates…

    • 569 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    Impact of Inflation and Interest Rates on Gdp, India
    • 5521 Words
    • 23 Pages

    Impact of Inflation and Interest Rates on Gdp, India

    Third Quarter Review of Monetary Policy 2009-10, RESERVE BANK OF INDIA, January 29, 2010 Mumbai [Online] Available from: http://rbi.org.in/scripts/NotificationUser.aspx?Id=5478&Mode=0 [Accessed: 1st August 2013]…

    • 5521 Words
    • 23 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Swot of Sbi
    • 461 Words
    • 2 Pages

    Swot of Sbi

    Modernisation: SBI lags with respect to private players in terms of modernisation of its processes, infrastructure, centralisation, etc.…

    • 461 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    SMS unhappy
    • 1069 Words
    • 4 Pages

    SMS unhappy

    It has been nearly 60 years since the State Bank of India came into operation and undoubtedly, it has been one of the most well-established banks in the country. The SBI focuses on areas such as treasury and financial markets,international banking, relationship management and other non-banking financial services like insurance and mutual funds. The major reason as to why State Bank of India is what it is today is its progressive nature and drive for continuous improvement. At 1991, a time when SBI was enjoying near monopoly, its reign was threatened by liberalization as it handed many other private banks an opportunity to make a foray against the SBI. But the State Bank of India rose to the occasion and showed dramatic growth in the private sector.…

    • 1069 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Capital Account Convertibility A Boon Or A Bane Economics Essay
    • 1667 Words
    • 6 Pages

    Capital Account Convertibility A Boon Or A Bane Economics Essay

    Fully Convertible currencies are those which can be freely traded without any restrictions from the…

    • 1667 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Comparative Study of Training and Development of Sbi and Icici Bank
    • 585 Words
    • 3 Pages

    Comparative Study of Training and Development of Sbi and Icici Bank

    A COMPARATIVE STUDY OF “INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA”(ICICI) with “STATE BANK OF INDIA”(SBI).…

    • 585 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Inflation in India
    • 800 Words
    • 4 Pages

    Inflation in India

    India suffers with maximum inflation compared to chief markets. From the last two years India is trying to bring down the inflation rate but all the efforts are in vain. Started with the hike in food prices, inflation now has a strong foothold in the Indian economy. The consequence is that the hiked price is now considered as the “new normal” in an economy which has had subsidised prices since independence. To counter this Reserve Bank of India (RBI) has raised lending rates numerous times since March 2010.…

    • 800 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Collage Project
    • 3884 Words
    • 16 Pages

    Collage Project

    in and the like. SEBI had issued guidelines for the protection of the investors through the…

    • 3884 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    marketing tools
    • 1286 Words
    • 6 Pages

    marketing tools

    SWOT ANALYSIS AND PEST ANALYSIS were used to analyse the Banking Industry, HDFC Bank have selected for critical analysation .…

    • 1286 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Role of Rbi
    • 2251 Words
    • 10 Pages

    Role of Rbi

    Fundamentally, Indian financial system is supporting by banks, reserve bank of India (RBI) is playing the critical role of regulating and supervising such banks as well as ensuring the soundness and safety of banking system which leads to financial stability. As a regulator and supervisor, RBI ensures a frame work for operations and development of banking industry which is focusing for the conductive customer interests and financial stability of the country through certain preventive measures.…

    • 2251 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Inflation Containment - the Role of Rbi and Banking Industry
    • 348 Words
    • 1 Page

    Inflation Containment - the Role of Rbi and Banking Industry

    When inflation spikes, the single focus of the government becomes controlling inflation. This is not how mature market economies work. In all mature market economies, the task of controlling inflation - and only the task of controlling inflation - is placed with the central bank. In India, the onus to control the situation of inflation is upon the Reserve Bank of India (RBI) and the banking Industry. Our paper aim is to present the role that the RBI and the banking Industry plays in controlling the Inflation, the measures adopted in overcoming the negative effects of Inflation, the mechanisms and the policies through which the Central Bank seeks to control the amount of credit flowing in the market, whether these mechanisms used by the RBI has passed its prime and thus now the RBI needs to take up a holistic approach to the same. We would then deal very briefly with the suggestions that may shed some light on what could be the possible steps RBI and the banking industry could take to control rising prices. We find that the practice adopted by the Central bank right now seems to be an ostrich approach. We understand it clearly that the reason that we have inflation is because the economic status and mindsets of the people of India are advancing. Indian consumer is no longer afraid to spend tomorrow’s money today. The average Indian consumer has reached a comfortable economic position where he now starts to demand products and services which were earlier not available to him. This is an indicator of an improved standard of living.But this should not be considered as a disadvantage. The problem here is that the country’s infrastructure is not capable of meeting these requirements. But, instead of giving any attention to the supply factors, by simply lowering money and credit in the market, the RBI is artificially pushing demand down. It is stifling the needs and requirements of the consumers and is…

    • 348 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    makro enviroment
    • 4417 Words
    • 18 Pages

    makro enviroment

    This analysis clearly falls into the category of Qualitative research as it aims to get a deeper understanding…

    • 4417 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Global Crisis, Recession & Uneven Recovery
    • 2339 Words
    • 10 Pages

    Global Crisis, Recession & Uneven Recovery

    There have been a large number of books published on current global financial crisis therefore; selection of this particular book on the subject requires some reasoning. First, there are not many books written by central bankers on the topic. Central banks have been central in the management of the crisis and therefore, Dr Reddy’s book provides a central banker’s assessment of the crisis and its impact. Second, on personal level, I have worked in RBI between September 2006 and December 2011 and was witness to the measures taken by Reserve Bank before and during the crisis under the able leadership of Dr Y.V. Reddy, the Governor, Reserve Bank of India (2003-2008). Having worked under his visionary leadership, I opted to take his book, “Global Crisis, Recession and Uneven Recovery” for review. Third, Dr Reddy led the course of financial pragmatism in times of relentless deregulation and ensured that Indian financial system does not fall into the blind race to bottom in regulation. Finally, having read Dr Reddy’s previous book on the topic viz. “India and the Global Financial Crisis: Managing Money and Finance”, I was very keen on reading its sequel viz. “Global Crisis, Recession and Uneven Recovery”. For all these reasons, I selected this book and am thankful to Madam Nidhi Sharma for approving this book for review. The reviewed book is a collection of 27 speeches (given in the form of 27 chapters in 5 parts), Dr Reddy delivered at different points of time during and after the crisis. These chapters give a deeper insight into the actions taken by the RBI to mitigate the impact of the crisis in India and how India remained largely unaffected due to adequate regulatory mechanisms. Dr Reddy has also been a member of the Commission of Experts…

    • 2339 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Role of Foreign Banks
    • 3292 Words
    • 14 Pages

    Role of Foreign Banks

    Indian Banks abroad are involved in many new banking activities. State Bank of India and Bank of Baroda, the two leaders in the sphere, are raising foreign currency funds, for both private and public sector concerns. In addition, these banks are funding many joint ventures in South East Asia. For instance, SBI is funding joint ventures in Singapore, Indonesia and Malaysia. The Bank has arranged finances to the tune of $ 750 million dollars.…

    • 3292 Words
    • 14 Pages
    Powerful Essays
    Read More

Related Topics