Extensive SWOT Analysis of SBI – An Indian Multinational Public Sector Bank

Quick Stats on SBI

Founder	Dinesh Kumar Khara
Year Founded	1955
Origin	Mumbai, India
No. of Employees	245,642
Company Type	Public
Market Cap	$63.19 Billion (2021)
Annual Revenue	Rs 385,338 Crore (2021)
Net Income/ Profit	Rs 22,405 Crore (2021)

 

Current news about the brand

• State Bank of India (SBI) a Fortune 500 company, is an Indian Transitional, Public Sector Banking and Financial Services statutory body headquartered in Mumbai. The rich heritage and heritage of over 200 times, accredits SBI as the most trusted Bank by Indians through generations.
• SBI Mutual Fund Gets RBI Nod For Stake Buy In IndusInd Bank.
• Calcutta High Court voids SBI’s sale of Atibir Industries’ loans to CFM ARC.
• Share price of SBI Card jumps as Sensex gains 374.09 points.
• SBI, HDFC to ICICI: RBI enrolls 30 banks on the UDGAM portal for unclaimed deposits.

After understanding the core of the corporation, let us now proceed to the SWOT analysis of SBI.

SWOT Analysis of SBI

A SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or a business venture. A good SWOT analysis can help you reach your online marketing goals or kick your business startup into high gear. 

To better understand the SWOT analysis of SBI, refer to the infographic below:

Let’s proceed further with expanding on the strengths of the SBI from the SWOT analysis of SBI.

Strengths of SBI

• Government Support: Being a public sector bank it has the full support of the Indian government which can be considered as one of the major strengths.
• Public Goodwill: Being a bank with a history of more than 2 centuries it has accumulated a huge amount of goodwill. The belief that the public or the consumer has towards it is at excellence.
• High Revenue: Being a multinational company ranked at 221st position in the Fortune Global 500 it sure does own a huge revenue and capital which is a strength in itself.
• Wide Network: According to recent reports, the bank has more than 22,141 branches and 58,555 ATMs.
• International Reach: SBI is active in 36 countries involved in currency traders around the world.
• High Market Share: SBI is the largest bank in India with a 23% market share by assets and a 25% share of the total loan and deposits market.

Weaknesses of SBI

• Employees Attitude: Due to having a secured government job most of the employees don’t have a good attitude towards the consumers.
• Technology: The lack of adequate technology-driven infrastructure relative to private banks.
• Efficiency: Employees are hesitant to fix issues efficiently due to better job stability.
• Hesitation to Innovate: Despite the modernization, the bank still conveys the perception of the traditional bank to new-age clients.
• No. of Employees: SBI has the largest number of employees in the banking sector, which is why the bank spends a considerable amount of its income on employees’ salaries.

Opportunities for SBI

Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit.

• Youth Hiring: Pool in talent to replace top management to serve the next generation and bring about innovation. This will also enable driving the latest innovation into the company.
• Improvement: SBI can make better use of the CRM, new technology, and the online space to increase its banking business.
• Rural Areas: Expansion into the rural areas will also boost its business to a new level.
• Cashless: With a focus on India going cashless, the bank that supports cashless features by evolving its methods and technology can dominate the market with its extensive reach.
• Foreign Market: Expanding its business in the foreign market also holds a huge scope of growth for SBI.

Threats to SBI

• Private Banks: Consolidation among private banks can reduce market share for SBI by a huge margin.
• Changing Policies: Banking policies are governed by Reserve SBI  (RBI) laws and regulations, therefore any changes made by the RBI have a direct impact on the bank’s operations.
• Foreign Banks: Foreign banks that have sophisticated products can fully affect the old strategy of SBI.
• Government: SBI operations are often disrupted by slow government decisions and red-tapism.
• Competitors CRM:- Competitors with good CRM systems are a threat to the SBI.

Failed Campaigns of SBI

What was the issue?

Many customers did not fully understand the concept of InTouch branches and the digital services they offered. This resulted in a lack of interest and adoption among the target audience.

What backlash did the brand face?

The campaign’s emphasis on modernity and sophistication gave some customers the impression that SBI was shifting its focus away from serving all segments of the population, including those in rural and less affluent areas

What did the brand do in this situation?

The “SBIInTouch” campaign highlighted the importance of aligning marketing strategies with the needs and preferences of the target audience.

Top 5 Competitors of SBI

1. ICICI Bank: It is one of the largest private sector banks in India and offers a wide range of financial products and services.
2. HDFC Bank:  It is another major private sector bank in India known for its retail and commercial banking services.
3. Punjab National Bank (PNB): It is one of the largest public sector banks in India and competes with SBI in various banking services.
4. Axis Bank: It is another prominent private-sector bank with a significant presence in the Indian banking sector.
5. Bank of Baroda: It is a leading public sector bank and competes with SBI in areas such as retail and corporate banking.