BANKING INDUSTRY

SUBMITTED By:-
Ashish Maloo
Gazal Badlani
Ankit Somani
Anushree Banerjee
www.studygalaxy.com
INDUSTRY ANALYSIS


Banking in India originated in the last decades of the 18
th

century.
The first banks were THE GENERAL BANK OF INDIA,
which started in 1786, and BANK OF HINDUSTAN
The oldest bank in existence in India is the STATE BANK
OF INDIA, which originated as the BANK OF CALCUTTA
in June 1806.
The first fully Indian owned bank was the ALLAHABAD
BANK, established in 1865


Herfindahl Index
Market share of total bank credits are:
SBI = 45%
ICICI = 23%
HDFC = 12%
PNB =10%
AXIS= 10%
Herfindahl Index of Banking Industry
= (0.450)
2
+ (0.230)
2
+ (0.120)
2
+ (0.100)
2
+ (0.100)
2
= .2025 + .0529 + .0144 + .01 +.01
= .289
It means there is huge competition in the banking industry






Industry Analysis Cont



The banking industry has grown at a compounded
annual rate of over 51 per cent since April 2001
Industry life cycle Maturity stage


RBI
ESTABLISHED in 1935
Central bank of india
Function performe
I. Banker to Government
II. Currency issuer
III. Development role
IV. Manager of exchange control
OVERVIEW OF THE INDUSTRY
27 Public sector banks
30 Private banks
40 Foreign banks

MARKET CAPTURE
77 % by Public sector banks
17% by Private banks
6% by Foreign banks
MAJOR PLAYERS
State Bank of India
ICICI
HDFC
PNB
AXIS Bank




These 5 Banks are Leader of Banking
industry and we are assuming them as the
Banking Industry
GROWTH RATE
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
private sector Public Sector Foreign Banks
MARKET SHARE FOR 2009











45%
23% 12%
10%
10%
20%
Chart Title
SBI ICICI HDFC PNB AXIS
DATA ANALYSIS
Bank Name Net sales
2009
Net profit
2009
Net sales
2008
Net profit
2008
SBI 177797 24790 180303 24784
ICICI 60896 11011 78361 12721
HDFC 40348 8185 44685 6217

PNB 55055 10113 52947 10058
AXIS 28837 6560 29848 5005
CHALLENGES FACED BY
BANKING INDUSTRY IN INDIA
Deregulation
New rules
Efficiency
Diffused customer loyalty
Misaligned mindset
Competency gap
KEY FINDINGS
Market Structure Perfect Competition
Many sellers and Many buyers
Differentiated product
Information is not equally conveyed



Thank You