Canara bank is a public-sector bank owned by the Government of India and is one of the largest banks in the kitty of the government. The headquarters of the bank is located in the city of Bangalore in Karnataka. The bank started in the year 1906 in Mangalore. It is one of the oldest banks in the country. It has more than 6000 bank branches in India. It is present in different other countries as well.
Strengths in the SWOT analysis of Canara Bank
- Schemes are innovative in nature –The schemes introduced by the bank are very innovative in nature. It provides loans at a very low rate for people living in the rural areas and hence helps in uplifting the living standard in rural areas by helping farmers. It collaborated with UNEP so as to launch a scheme for solar loans.
- The banking style –In comparison to other public banks in India Canara bank articulates the best practices and creates a good banking experience for the customers which leads to the better brand image in the minds of the customers.
- Employment Generation – The banks employ more than 40000 people in India and hence generates employment for the huge amount of people.
Weaknesses in the SWOT analysis of Canara Bank
This is the pain area of the organization where it does not have the resources or skills. Business has to work upon these areas so that they are not left behind fro the competition. Though there will be some or the other weakness but it should not be an area which takes the business out of the market
- Marketing is Poor – Being a public bank in India the marketing focus is very less and hence this leads to low publicity in the market despite offering good banking facilities and experience to the customers. Bank does not have a marketing department which focuses on increasing the awareness of the bank in the market.
- Customer Service is Poor – The banking industry in India is very competitive and customer service is one thing which uniquely differentiates the bank. Canara bank has not been able to deliver a good customer service. Customers are generally not happy with the way staff handles the queries and imparts services at the banks. Also, the online banking facilities are not very well developed.
- Client Base is Poor – The bank does not have a good customer base of high-income groups. Thus the revenue generation is from low-income groups which do not increase the bottom line of the bank and hence the growth is slow
Opportunities in the SWOT analysis of Canara Bank
This helps in understanding what other things a business can do with the current skills and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base
- Rural Banking – The bank can explore more aspects of rural banking as the majority of Indians are living in the rural areas and hence by fulfilling their banking needs the bank can grow its revenue.
- Social Banking – In the era of social media the banks are adopting social channels and hence catering to the needs of customers using an additional challenge and saving their time to visit physical banks.
Threats in the SWOT analysis of Canara Bank
This analysis helps in understanding what are the areas which can impact the business in future or right away. So, business has to prepare itself to handle the threats in the market landscape. Competition or increasing number of players in the market with same value proposition is a threat to business as it directly lowers down the customer base and revenue
- Competition is Increasing from Private Sector Banks – Private sector banks are coming up with innovative investment schemes and hence taking the share of retail customers.
- Economic Crisis – Due to the economic crisis the customers are not saving money in the banks and hence this reduces the liquidity of banks and they cannot operate smoothly due to lack of cash.
- Changing Policies – Banking policies are subject to the rules and regulation of RBI and hence any changes from RBI has a direct impact on the operations of the bank.