IDBI or Industrial Development Bank of India is one of the trusted and reliable banking institutes in India. It provides commercial and wholesale banking services. . It has 3,683 ATMs, 1,892 branches, and an overseas branch in Dubai.
This bank offers a diverse range of financial products and services, including deposits, loans, payment services, and investment solutions. IDBI Net Banking is another service of the bank that is gaining popularity day by day. IDBI is known for its commitment to understanding customers’ needs and constantly providing relevant financial solutions and outstanding customer service.
In this blog, we will be talking about the SWOT Analysis of IDBI Bank. But first, let us have a brief Idea about the IDBI Bank:
About IDBI Bank
IDBI Bank Ltd. is a development financial institution and a subsidiary of a Life insurance company, established in 1964 by an act to provide credit and other financial assistance for the development of Indian Industry.
The equity shares of IDBI Bank are listed on the Bombay Stock Exchange and the National Stock Exchange of India. The government shareholding in IDBI Bank is 45.5%, currently.
The bank employed 16,555 people, including 197 people with disabilities. In May 2013, IDBI Bank was ranked #1197 in the Forbes Global 2000 and In the 2011 Dun & Bradstreet Banking Awards, it was named ‘Overall Best Bank’ and ‘Best Public Sector Bank.’
Now that we have got a brief idea of IDBI Bank, let’s go through its SWOT Analysis:
SWOT Analysis of IDBI Bank
SWOT Analysis is a technique for assessing mainly four aspects of a business are Strengths, Weaknesses, Opportunities, and threats. With the help of this combination of evaluation metrics, a company can gain a comprehensive overview of a business, product, brand, or new project early in the project life cycle.
So, to assess the internal and external factors affecting IDBI, let’s start with discussing its strengths:
1. Strengths of IDBI bank
Strengths describe what an organisation excels at and what differentiates it from the competitors, such as a strong brand, a loyal customer base, a strong balance sheet, unique technology, and so on. Here are some points which make IDBI Bank stand stronger than other banks-
- The bank’s main strength is that it uses cutting-edge technology to assist its fundamental banking activities.
- The bank has 943 branches and 1529 ATMs in its network.
- IDBI employs 18000 people.
- The bank has increased its scale by 60% compared to the prior year. The advantage of being the first to open the ‘G-sec portal.’
- The IDBI is one of India’s largest commercial banks, with a focus on industrial infrastructure and growth. Its product basket includes 14 distinct classifications and subcategories. Institutional investors can use this platform to invest in government securities.
- The shift of the bank’s headquarters to Mumbai indicates an increase in capital market infrastructure, information technology, asset management, and life insurance subsidies.
2. Weaknesses of IDBI bank
Weaknesses prevent an organisation from performing at its best. There are the areas in which the company needs to improve in order to remain competitive: a poor brand, higher-than-average turnover, high debt levels, an insufficient supply chain, or a lack of capital. Here are some weaknesses of IDBI Bank-
- IDBI has a smaller presence in the rural market.
- IDBI has far fewer branches and ATM networks than the other big financial institutes.
- IDBI primarily provides commercial banking services, with individual banking services accounting for the majority of its revenue.
- The customer service desk is inefficient, and a variety of customer issues remain unsolved.
- IDBI Bank receives a high volume of customer complaints about service fees.
- And the bank is not pursuing an aggressive sales strategy.
3. Opportunities for IDBI Bank
Opportunities are external factors that can provide an organisation with a competitive advantage. For example, if a country lowers tariffs, a car manufacturer may be able to export its vehicles into a new market, increasing sales and market share. Thus, the opportunities of IDBI Bank are:
- IDBI is part of the government, thus, there is a considerable possibility that government initiatives will be implemented.
- IDBI offers global opportunities as management focuses primarily on worldwide expansion in the coming years.
- IDBI provides a wide range of financial services to India’s expanding industrial and economic developments.
- It is the only public-sector bank whose website includes social media plug-ins. The brand’s recognition is increased, and its clients are better treated.
- As industrial expansion accelerates, the bank has good potential in Tire II’s semi-urban and city districts.
4. Threats to IDBI Bank
Threats are factors that have the potential to cause harm to an organisation. A drought, for example, poses a risk to a wheat-producing company because it can destroy or reduce crop yield. Other common threats include rising material costs, increased competition, a scarcity of labour, and so on. These are the following threats to IDBI Bank:
- IDBI faces stiff competition in terms of new market development from both government and commercial banks.
- The RBI has allowed up to 74 per cent FDI in Indian banks.
- The primary competitors in private banking are HDFC and ICICI, and in public banking, SBI, Punjab National Bank, Andhra Bank, and Allahabad Bank. These banks are performing well in the market by coming up with better services and innovative offers.
- To retain loyal customers, the bank must focus on enhancing customer happiness.
- Recent bank scams and fraudulent acts have evoked scepticism in its customers.
IDBI Bank Competitors
Below are the top 7 IDBI Bank competitors:
From the above SWOT Analysis of IDBI, It can be concluded that the bank is doing great when it comes to scaling and taking advantage of technology. The services that it provides for industrial development are top-notch and trusted by customers all over India. However, some of the aspects of the IDBI Bank like fewer ATMs and inefficient customer support can thwart its growth. Thus, the bank must take advantage of the opportunities to give its growth a boost. Apart from this, it also needs to stay ahead of its competitors to survive in the market.
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