The last time we saw the Marketing Strategies of Bajaj Finserv, this time we will look at the SWOT Analysis of Bank of Maharashtra.
Headquartered in Pune, the Bank of Maharashtra is a nationalized bank owned by the Government of India. It has a whopping amount of 15 million customers around the country and about 2,000 branches in the state making it the largest nationalized bank in Maharashtra.
The bank offers services like savings deposits, credit cards, current deposits, term deposits, educational loans, housing finance, vehicle loans, personal loans, consumer loans, gold loans, pension plans, life insurance, and non-life insurance solutions.
One of the hindrances in the growth and visibility of the bank is its poor marketing skills, in today’s time digital marketing is very important for reaching out to customers as everything is shifting towards digital. If you want to learn digital marketing and its scope, do check out Free Digital Marketing Masterclass by Karan Shah, the founder and CEO of IIDE.
In this blog, we will be acquainted with the strengths, weaknesses, opportunities, and threats of the Bank of Maharashtra, but before we start, let us have a brief understanding of what the Bank of Maharashtra is all about.
About Bank of Maharashtra
Bank of Maharashtra (BOM) is a public sector bank that provides financial services in the country. The bank offers a range of banking products and services to individuals and businesses. Nationalized in 1969, it provides financial services to many startups and small-scale businesses and also gave birth to many prominent industrial houses.
The equity shares of the Bank of Maharashtra are listed on the Bombay Stock Exchange and the National Stock Exchange of India. Since its nationalization, the government had a 92.4% share in it.
In 2021 itself, the Bank of Maharashtra has bagged awards like the ‘Kirti Puraskar’, ‘Best Employer Brands Award 2021’, ‘Best IT and Cyber Security Award’, ’Top Improvers’, and many more.
Quick Stats about Bank of Maharashtra
|Founder||D.K. Sathe and V.G. KaleSingh|
|No. of Employees||13,048 (2020)|
|Market Cap||13999 Cr (2021)|
|Annual Revenue||13144.67 Cr (2020)|
|Net Income/ Profit||385 Cr (2020)|
Services provided by Bank of Maharashtra
Bank of Maharashtra provides services in the following areas:
- Consumer Banking
- Corporate Banking
Finance and Insurance
- Investment Banking
- Private Banking
Competitors of Bank of Maharashtra
There are numerous players in the banking industry, the top 5 competitors are as follows:
- State Bank of India
- Bank of Baroda
- IDBI Bank
- India Post Payments Bank
Now that we’ve got to know about the bank, let’s proceed further and take a look at the SWOT Analysis.
SWOT Analysis of Bank of Maharashtra
A SWOT Analysis is a tried and tested tool that helps one to understand the Bank of Maharashtra and the comparison of its business with its competitors and have an idea of the overall position of the bank. The strengths and weaknesses are the internal factors in this analysis while the opportunities and threats are the external factors involved.
1. Strengths of Bank of Maharashtra
Strengths are things an organization excels at, which provides it an advantage over those of its competitors. It may be the manufacturing process or the access to certain resources or the quality of employees. Let’s take a quick look at the points which make BOM ”tick”-
- Public Bank– Since the bank is a public sector undertaking, it has the backing of the government.
- High Investments– It has very high investments in SLR securities.
- Efficient Services -The bank is efficient in managing its assets and providing ROA which is also improving over the last 2 years.
- Growing Reach – BOM has a huge geographical presence in the country, thus making it accessible to the customers and increasing its reach to the target market.
- Diversification– The diverse services allow the organization to expand the customer base and offset the losses from one product category with benefits obtained from the opposite.
2. Weaknesses of Bank of Maharashtra
Weaknesses show in which parts the organization needs to improve and what practices should it avoid. It gives an idea about how and why the competitors are doing better. Here are the elements where the Bank of Maharashtra is lacking-
- Weak Momentum – There is a weak momentum as the stocks are trading below the Short, Medium, and Long Term averages.
- Slow Decision Making – The decision-making takes too much time causing expensive delays to introduce new products in the market.
- Increase in NPA – There has been a considerable increase in the bank’s NPAs. Leading to a reduction in the ability of the bank for lending more thus resulting in less interest income.
3. Opportunities of Bank of Maharashtra
Opportunities are the conditions existing in the external environment that allow the organization to take advantage of the organizational strengths, and help in overcoming the weaknesses and neutralizing the threats present in the environment. Thus, the opportunities of the Bank of Maharashtra are-
- Expansion – Bank of Maharashtra needs to expand its presence in the rural market.
- Increasing Investments – Increasing its Non-SLR investments will result in increased profits.
- Interests Rates– BOM can make credit cards more profitable by increasing the interest rate and the non-performing assets can be eased
- Digitalization – With the Internet, the world has become a smaller place that helps in communication in any part of the world. This helps the bank get into the international market and target the global audience which helps to increase profitability.
4. Threats of Bank of Maharashtra
The threats component in the bank’s SWOT analysis should list the areas where the bank has the potential to decline. A bank’s threats include lack of qualified staff, more competitors, new technology or payment methods, increased insurance rates, and more. Let us assess the following threats –
- High Competition – The primary competitors are Bank of Baroda, Canara Bank, Bank of India, Central Bank, Indian Overseas bank which is performing well.
- Losses – Dis-Investments by the government cause loss to the bank.
- Online Banks- Loans are provided online by Private Banks which pose a threat to the Bank of Maharashtra.
- Tech- Platforms– New-age technology like payment wallets are affecting the business of the bank.
So as we’ve seen, one needs to adapt to the change happening around. Bank of Maharashtra has done exceedingly well by using and following the current technology trends. Although it does not own any NBFCs it is one of the most tech-savvy banks in the country.
If the bank ups its marketing game in rural parts of the country and owns NBFCs it can outdo the other major key players. IIDE offers several short-term certified courses in digital marketing which can be completed within a few days.
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