Are you researching the most relevant SWOT Analysis of Punjab National Bank (PNB)? Then you’re on the suitable blog page to read about it and research. In this blog, you will learn about the various SWOT pointers on Punjab National Bank which will chronologically explain to you about the bank, its Strengths, Weaknesses, Opportunities and Threats.
As we all know, SWOT Analysis is the essence of every company, here I further present you with the entire relevant information about Punjab National Bank.
About Punjab National Bank
Punjab National Bank (PNB) is a commercial functional bank in India. It is under the ownership of the Ministry of Finance and the Government of India.
This bank has numerous competitors like Tata, ICICI Bank, HDFC, SBI, Canara Bank, Andhra Bank, Indian Bank and Bank of Baroda. Bank of Baroda is said to be one of the biggest competitors of Punjab National Bank. It makes $1.2B more revenue than Punjab National Bank. Also, other rival competitors include Axis Bank and Canara Bank as they have similar operations just like Punjab National Bank.
While PNB is a commercial bank that comprises accounts, savings accounts, credit cards, debit cards, home loans, auto loans, term loans, Agri loans, education loans and MSME loans. Punjab National Bank suggests assistance such as NRI services, cash management services, forex services, insurance services, Internet banking and SMS banking services. It categorises its products and services through a network of branches, ATMs and online. Since we had a brief introduction to the company. Let’s deep dive into its SWOT analysis.
SWOT Analysis of Punjab National Bank
SWOT Analysis is the influential part of any company to know more about its Strengths, Weaknesses, Opportunities and Threats. Strengths assist a company to improve more whereas, weaknesses accommodate to change and know what sorts of practices should the company withdraw. A company needs to grab the opportunities to support developments for the future. While threats can destructively affect the company and can also make undesired shifts in the market requirements. Hence, it is essential to balance and assume the futuristic and the present values of the company.
Below listed are the most relevant Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis of Punjab National Bank (PNB):
1. Strengths of Punjab National Bank
Strength helps a company to effectively achieve its goals and objects and assist them to make definite improvements. below listed are the Weaknesses of Punjab National Bank:
- Diversified Operations: Punjab National Bank has heterogeneous functional operations with 5100 branches. Due to their diversified operations, the bank is widely recognized and is approved with varied branches.
- Strong High-End IT Support: Due to its strong and well-established IT support, it gives the best services to its customers, making them the best-fit approach. The end-to-end IT support makes the bank more substantial with its services.
- Best Reliable Schemes: Punjab National Bank mainly focuses on providing the best reliable schemes for both small and medium scale businesses. Hence, these schemes promote the bank more efficaciously and make it prominently defined.
- Second-Largest Commercial Bank: It is the second-largest commercial bank in India with state-owned and about 5000 branches across 764 cities. Therefore, the popularity and recognition of Punjab National Bank are higher than any other commercial bank.
- Wide Range of Customers and Employees: It has more than 56,000 workforces and serves over 37 million customers and therefore, it is known to have a wide range of employees and customers.
2. Weaknesses of Punjab National Bank
The internal factors of every company affect it drastically if it’s negatively. Thus, weaknesses play a neutral role where it pulls down a company’s reputation but in the same way, it also helps to accommodate changes to make and what practices should be withdrawn soon by the company. So, below listed are the Weaknesses of Punjab National Bank:
- Inadequate Advertising: Any brand requires an efficient amount of advertising and branding to lead in the market and meet its needs. The bank is so popular and diversified, but it fails to initiate proper advertising and branding compared to other banks. Thus, this makes the bank somewhere lag in terms of advertising.
- Poor Reputation: Legal issues regarding employees caused a bad name for the commercial bank. Thus, the bank lost its huge reputation and significance due to legal issues. Poor reputation should be converted to a healthy and rich reputation to enhance the bank and its past legal issues.
- Less Presence in Rural Areas: Punjab National Bank is not ubiquitous and has less presence in rural areas. Thus, because of their less presence in rural areas, it is not recognized in rural regions.
3. Opportunities for Punjab National Bank
The most positive external factor of any company is opportunity. A company should always be opportunistic and should grab effective chances to elevate the company. Here are the Opportunities of Punjab National Bank.
- Small Scale Business: Punjab National Bank (PNB) should start with its small scale business across India to provide an end number of job opportunities to employees. This can also help them gain more popularity, make them ubiquitous across India, and receive increased profits.
- Expansion of the Company Across the Globe: The bank should expand its services internationally and not keep them limited to only India. International banking can again be another opportunity for the firm to gain profits and successive popularity across the globe.
- Installation of ATM’s: Installing more ATM’s can make the customers benefit through it and will have better feedback for the firm. It can be easier for people to accommodate and withdraw their money whenever and wherever required.
- Providing with Reliable and Better Customer Service: If the firm stays loyal and provides excellent customer service, it will attract more customers and receive superior feedbacks.
- Launching New Unique Schemes: Punjab National Bank can further launch new schemes for Saving Account Holders to expand its cash deposit ratio.
- Promotion Through Social Media Platforms: In the digital and social media trend, Punjab National Bank can promote its services through social media platforms and advertising platforms such as Google Ads and Facebook Ads because most customers prefer watching social media ads these days.
- Emphasizing Business Loans: The bank can accent business loans to appeal to more customers. As business loans can attract business-oriented customers for profit maximization of its business company.
- Originating E-Wallets: As it is the digital era, PNB can originate E-Wallets as it is trending throughout the world. Ahead in the future, e-wallets can make lives much easier and people are looking for such innovations to receive easy digital trends.
4. Threats to Punjab National Bank
Threats can drastically bring down your company. It can be from the intrusion of other companies to other shortages and lags in the service. Below are the threats faced by Punjab National Bank –
- Fluctuations in the Economy: A major threat for the banking industry are fluctuations and crises in the economy and thus, the bank has to be cautious for the same. The shifts in the economy may make the bank suffer from unwanted delays and a decrease in demand.
- Stringent Regulations of the Government: The stringent regulations of RBI and the Government are also a major threat to the bank as they are interruptive and can make certain changes. Strict regulations can always bring the interruption in and led to disruptive unwanted changes in the formation.
- Competitor Threat: As the banking sector expands, new competitors will enter the market and they might get successful profits in the future. Not only this, the bank may have their old competitors shortly in the topmost lists and therefore, this can make the bank lose its ranking and might have a downfall. Hence, the bank should be prepared with both the consequences of profit and loss shortly to generate strategic pre-planning.
Reading all the points reflecting the strengths, weaknesses, opportunities and threats for Punjab National Bank and by this, you come to know that it has a varied range of opportunities to come up with. Not only does it ends here but it surely has an ample amount of strengths to face off with its numerous competitors like Tata, ICICI Bank, HDFC, SBI, Canara Bank, Andhra Bank, Indian Bank and Bank of Baroda. Highlighting the threats and weaknesses, the bank can uplift itself by formulating certain issues and maintaining them regularly. Punjab National Bank can modify several things which are highlighted in the opportunities lists to attract more customers and ensure multiple profits shortly.
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