Strengths in the SWOT analysis of IDBI bank
- The banks major strength is it involves latest cutting edge technologies to support its core banking operations
- The bank has network of 943 branches and 1529 ATMs
- The total turnover of the bank is 3,37,584 crores in the last FY 2010-11, and earned a net profit of Rs.1650 cr.
- The bank has grown at a rate of 60% compared to previous year
- IDBI has the first mover advantage in opening ‘G-sec portal’. This is a platform for the retail investors to invest in government securities
- IDBI is one of the largest commercial banks in India which focuses on industrial infrastructure and development
- IDBI’s product portfolio includes 14 broad classifications, and there are some sub categories in each. The bank has customized solution faculties for its industrial clients
- The location of its head quarters in Mumbai fosters the growth of the bank
- IDBI’s subsidiaries are into capital market services, IT services, asset management and life insurance
Weaknesses in the SWOT analysis of IDBI bank
- IDBI has less penetration into the rural market
- IDBI has very less number of branches and ATM network compared to other major players
- It concentrates mainly on commercial banking services whereas the individual banking services is where the main revenue lies.
- The customer help desk is not performing efficiently and there are many unresolved issues of customers
- The bank has lots of consumer complaints with respect to servicing charges
- The bank lacks in promotional activities
Opportunities in the SWOT analysis of IDBI bank
- Scope for bagging government schemes are high as IDBI belongs to public sector
- Global opportunities for IDBI are the rise as the management is keenly focusing on global expansion in next few years
- They have a good number of financial expertise to face the emerging industrial and economic growth in India
- It is the only bank in public sector which has enabled social media plug-in in its website. This has increased the brand awareness and better reach to its customers
- The bank has good opportunities in semi-urban and Tire II cities areas as the industrial growth is taking very rapidly
Threats in the SWOT analysis of IDBI bank
- IDBI faces tough competition in terms of new market development due to competition from both government and private banks
- FDI in Indian banking has been opened up to 74% by the RBI
- In private banking HDFC, ICICI and in public sector SBI, Punjab National Bank, Andhra bank and Allahabad bank are the major competitors
- The bank has to focus on improving the customer satisfaction in order to sustain the loyal customers
- Recent scams and fraudulent activities of bank have gained mistrust from its customers and investors
Liked this post? Check out these detailed articles on Topic of SWOT of Brands
Alternatively, check out the Marketing91 Academy, which provides you access to 10+ marketing courses and 100s of Case studies.