SWOT analysis of IDBI bank - IDBI SWOT analysis

Table of Contents

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

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

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

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