SWOT analysis of IDBI bank

February 22, 2019 By Hitesh Bhasin Tagged With: SWOT

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

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