SWOT Analysis:A.

Strengths: All these Private banks have professional, dedicated and well-trained manpower In contrast to their Public Sector counterparts, Efficiency is maintained at the highestlevel The new Private Banks have commenced with strong financials and with a clean slate i.e.without having to pursue NPAs Al mo st al l the se ba nks hav e co mpl i ed wi th Capi tal Adequ acy r e q u i r e m e n t s a n d prudential norms Most of these banks are fully computerized and techno-savvy B. Weaknesses: Both old and new private banks are operating in a limited area confined to a region Although highly networked, the number of branches is limited The employee turnover appears to be on higher side There i s di ssi mi l ari ty b et ween ol d and n e w pri vate b ank s by vi r t u e o f t h e i r a g e , functional area, products and services, etc. C. Opportunities: Being in private sector, these banks enjoy high level of autonomy facilitating them for faster decision making To face stiff competition, they can innovate new products and services and achieve highcustomer satisfaction With full computerization, they can offer cost-effective services like ATMs, ElectronicFund Transfer, etc. D. Threats: Expansion of foreign banks in the post WTO era poses severe competition D o mi n a n t P S B s w h i c h a r e r e c h a r g e d wi t h a h i g h ma r k e t s h a r e wi l l o v e r - s h a d o w t h e Private Sector Banks Frequent announcements of takeover / Mergers & Acquisitions by PSBs as well as newPrivate sector banks disturb the very functioning of old Private Sector Banks.

RBI / GOI relaxation of FDI investment norms cause worry among the managements Conclusion: In the post-reforms era, with a promise to maintain perfect competition and level paying field for all types of banks in the Indian Banking scenario, both old and new Private Sector Banks willcontinue to strive to offer to their customers costeffective, efficient products and services I n c r e a s e d u s a g e o f T e c h n o l o g y , b e s t u t i l i z a t i o n o f t h e ma n p o w e r r e s o u r c e s c o u p l e d wi t h professional management adopting Corporate Governance principles these private banks willcontinue to give their best and stay in the Indian Financial System. This is possible in view of the not so dominant presence of the foreign banks and consolidation of Public Sector Banksenvisaged by the Government of India Reference---Best Bank 2004 : Business India, August 16-29, 20042 . B a n k i n g A n n u a l : B u s i n e s s S t a n d a r d , O c t o b e r 2 0 0 4 3.Indias Best Banks 2004 : Banking & Finance, July-August 20044 . B u s i n e s s W o r l d N o v e mb e r 1 5 , 2 0 0 4 5.Indian Journal of Bank Management ICFAI February, 20046.Professional Banker, ICFAI : October, 20047.www.financialexpress.com8.www.hinduonnet.com9.www.thehindub usinessline.com10.www.ficci.com11.www.domainb.com12.www.karvy.com13.www.rbi.org.in14.www.finance.indiamart.com/investment_in_in dia/banks.html15.www.highbeam.com/library/search.asp?q=private+banks+in+India&F N16.www.indianbanksassociation.org/home/kbp1/pvt/income.asp17.CRIS INFAC BANKING ANNUAL REVIEW : AUGUST 20021 8 . D o n t B a n k o n i t : T h e R B I m u s t n t d o z e o f f o n d u t y : B i s h wa ji t B h a t t a c h a r y y a , T h e Times of India, November 06, 200419.Ministry wants RBI to review ownership norms for private sector banks : Sarbajeet K.Sen : Business Line, November 08, 200422 Methodology - Statistical Analysis: The authors have taken cross-sectional data on banks from the IBA Bulletin (Oct. 2004) andcompared the 30 Private Sector Banks among themselves for the years 2002, 2003 and 2004( A n n e xu r e - I ( a ) , I ( b ) , I ( c ) f o r y e a r 2 0 0 2 , A n n e x u r e - I I ( a ) , I I ( b ) , I I ( c ) f o r y e a r 2 0 0 3 , a n d Annexure-III (a), III(b), III (c) for year 2004).Four factors have been considered are - Efficiency, Financial Strength, Profitability and Size &Scale, based on the financial and business indicators, for these Private Sector Banks. Each of thefactors is given an equal weightage of 25%. Each parameter within a Factor is ranked by givingequal weightage across all the Private Sector Banks. Efficiency is a composite of (1) Cost of Funds (CF)*, (2) Ratio of intermediation costs to totalassets (Total Expenses/Assets) (TE/A*), (3) Burden Total non-interest expenses minus totaln o n - i n t e r e s t i n c o m e d i v i d e d b y t o t a l a s s e t s ( B * ) ,

(4) Business per Branch ( BPB), and (5)Operating Profit per E m p l o y e e ( O P P E ) . S o , e a c h s u b - p a r a me t e r w a s g i v e n 5 % we i g h t a g e aggregating to 25%. Financial Strength is a composite of (1) Capital Adequacy Ratio (CAR), and (2) NPA level (net NPAs to net advances) (NPA to NA*). Both these sub-parameters were given 12.5% weightageaggregating to 25%. Profitability i s a c o mp o s i t e o f ( 1 ) S p r e a d a s P e r c e n t a g e o f A s s e t s ( S A ) , a n d ( 2 ) R e t u r n o n Assets. Both these sub-parameters were given 12.5% weightage aggregating to 25%.17 Size & Scale is a composite of (1) Aggregate Deposits (AD), (2) Operating Profits (OP), (3) NetP r o f i t s ( N P ) , a n d ( 4 ) ( C r e d i t + I n v e s t m e n t ) / D e p o s i t R a t i o ( ( C + I ) / D ) . A l l t h e s e f o u r s u b - parameters were given 6.25% weightage aggregating to 25%. Note: The parameters that are by virtue of nature higher is the better have been ranked indescending order but the other parameters (marked with *) have been ranked in ascending order.While giving the score, these ranking numbers were taken in opposite sense without loss of generality.The authors have carried out Analysis of Variance (ANOVA) for each of these four parametersusing F-test as a parametric case. The authors have also done the overall ranking of four factors -Efficiency, Financial Strength, Profitability, Size & Scale and ranked the banks using the OverallPerformance. They also identified the top most / bottom banks each year (2002, 2003 and 2004)using the methodology. Findings: (From Annexures I/II/III: Final Charts on data for 2002-04) In the financial year ending March 2002, based on the total score obtained from four parameters(already described in the methodology), HDFC Bank, J & K Bank and Karur Vysya Bank are onthe top three positions. However, based on the four selected parameters, the following positionemerged for the year:Table No. 8: Outcome of Analysis for the Year 2002P a r a m e t e r B a n k a t t h e T o p p o s i t i o n B a n k a t t h e B o t t o m 1 . E f f i c i e n c y I n d u s I n d B a n k C e n t u r i o n B a n k 18

2 . F i n a n c i a l n k G a n e s h B a n o f i t a b i l i t y K a r I C I B a n k L t d 4

S t r e n g t h N a i n i t a l B a k o f K u r u n d w a d 3 . P r u r V y s y a B a n k L t d . I C . S i z e & S c a l e I C

L t d . G a n e s h B a n k o f K u r u n d w a d O v e r a l l H D F C B a n k G a n e s h B a n k o f K u r u n d w a d Kotak Mahindra Bank was only a Finance Company and not existing as a Bank during the year.Hence, it was not reckoned for the purpose of this analysis during 2002.In the financial year ending March 2003, based on the total score obtained from four parameters,J & K Bank, HDFC Bank and Karur Vysya Bank are on the top three positions. However, basedon the four selected parameters, the following position emerged for the year:Table No. 9: Outcome of Analysis for the Year 2003P a r a m e t e r B a n k a t t h e T o p p o s i t i o n B a n k a t t h e B o t t o m 1 . E f f i c i e n c y I n d u s I n d B a n k G a n e s h B a n k o f K u r u n d w a d 2 . F i n a n c i a l S t r e n g t h N a i n i t a l B a n k G l o b a l T r u s t B a n k 3 . P r o f i t a b i l i t y J & K B a n k L t d G l o b a l T r u s t B a n k 4 . S i z e & S c a l e I C I C I B a n k L t d . G a n e s h B a n k o f K u r u n d w a d O v e r a l l J & K B a n k G a n e s h B a n k o f K u r u n d w a d Kotak Mahindra Finance Company was converted into a Bank in March 2003 only and data for the year will be representing its performance for one month and not full year. Hence, it was notr e c k o n e d f o r r a n k i n g p u r p o s e s e v e n t h o u g h i n t w o p a r a m e t e r s ( F i n a n c i a l S t r e n g t h a n d Profitability), it emerged at the top position.In the financial year ending March 2004, based on the total score obtained from four parameters,J & K Bank, IndusInd Bank and HDFC Bank are on the top three positions. However, based onthe four selected parameters, the following position emerged for the year:Table No. 10: Outcome of Analysis for the Year 2004P a r a m e t e r B a n k a t t h e T o p p o s i t i o n B a n k a t t h e B o t t o m 1 . E f f i c i e n c y a . I D B I B a n k b. UTI Bank Ganesh Bank of Kurundwad2 . F i n a n c i a l S t r e n g t h S B I C o m m e r c i a l a n d I n t e r - National Bank Ltd.IDBI Bank 3 . P r o f i t a b i l i t y K a r u r V y s y a B a n k L t d G l o b a l T r u s t B a n k 4 . S i z e & S c a l e I C I C I B a n k L t d . G a n e s h B a n k o f K u r u n d w a d

C I

B a

O B

v a

e n B

r k a

a C n

l e k

l n 19

J t L

u t

& r d

i .

K o

Global Trust Bank was deteriorating in its performance year after year during the above threeyears study. It was finally asked to be merged with a Public Sector Bank viz., OBC in the monthof July 2004. A OA N V: In addition to the analysis of data for the thirty Private Sector Banks for the three years2002, 2003 and 2004 individually, a statistical test ANOVA (Analysis of Variance) (Annexure IV) was carried out for each of the parameters including the Overall Performance. The resultsi n d i c a t e d t h a t t h e r e i s a s i g n i f i c a n t d i f f e r e n c e i n t h e a v e r a g e E f f i c i e n c y a t 5 % l e v e l . Interestingly, similar trend was observed in the performance of the 21 Old Private Sector Bankstested separately. SWOT Analysi

Indian banks swot analysis strength Indian banks have compared favourably on growth, asset quality and profitability witho t h e r r e g i o n a l b a n k s o v e r t h e l a s t f e w y e a r s . T h e b a n k i n g i n d e x h a s g r o w n a t a compounded annual rate of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market index for the same period.

Policy makers have made some notable changes in policy and r e g u enhancingthe payments system and integrating regulations between commercial and co-operative banks. Bank lending has been a significant driver of GDP growth and employment. Extensive reach: the vast networking & growing number of branches & ATMs. Indian banking system has reached even to the remote corners of the country. The government's regular policy for Indian bank since 1969 has paid rich dividends withthe nationalisation of 14 major private banks of India. In terms of quality of assets and capital adequacy, Indian banks are considered to havec l e a n , s t r o n g a n d t r a n s p a r e n t b a l a n c e s h e e t s r e l a t i v e t o o t h e r b a n k s i n c o m p a r a b l e economies in its region. India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is withthe Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may b e p u b l i c l y l i s t e d a n d t r a d e d o n s t o c k e x c h a n g e s ) a n d 3 1 f o r e i g n b a n k s . T h e y h a v e a combined network of over 53,000 branches and 17,000 ATMs. According to a report byICRA Limited, a rating agency, the public sector banks hold over 75 percent of totalassets of the banking industry, with the private and foreign banks holding 18.2% and6.5% respectively. Foreign banks will have the opportunity to own up to 74 per cent of Indian private sector banks and 20 per cent of government owned banks. WEAKNESS PSBs need to fundamentally strengthen institutional skill levels especially in sales andm a r k e t i n g , s e r v i c e o p e r a t i o n s , r i s k m a n a g e m e n t a n d t h e o v e r a l l o r g a n i s a t i o n a l performance ethic & strengthen human capital. Old private sector banks also have the need to fundamentally strengthen skill levels. The cost of intermediation remains high and bank penetration is limited to only a fewcustomer segments and geographies. Structural weaknesses such as a fragmented industry structure, restrictions on capitalavailability and deployment, lack of institutional support infrastructure, restrictive labour l a w s , w e a k c o r p o r a t e g o v e r n a n c e a n d i n e f f e c t i v e r e g u l a t i

o n s b e y o n d S c h e d u l e d Commercial Banks (SCBs), unless industry utilities and service bureaus. Refusal to dilute stake in PSU banks: The government has refused to dilute its stake inPSU banks below 51% thus choking the headroom available to these banks for rainingequity capital. Impediments in sectoral reforms: Opposition from Left and resultant cautious approachfrom the North Block in terms of approving merger of PSU banks may hamper their growth prospects in the medium term. OPPORTUNITY The market is seeing discontinuous growth driven by new products and services thatinclude opportunities in credit cards, consumer finance and wealth management on theretail side, and in fee-based income and investment banking on the wholesale bankingside. These require new skills in sales & marketing, credit and operations. \banks will no longer enjoy windfall treasury gains that the decade-long secular decline ininterest rates provided. This will expose the weaker banks. With increased interest in India, competition from foreign banks will only intensify. G i v e n t h e d e mo g r a p h i c s h i f t s r e s u l t i n g f r o m c h a n g e s i n a g e p r o f i l e a n d h o u s e h o l d income, consumers will increasingly demand enhanced institutional capabilities andservice levels from banks. New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serves e g m e n t s l i k e t h e r u r a l / l o w i n c o m e a n d a f f l u e n t / H N I s e g m e n t s ; a c t i v e l y a d o p t i n g a c q u i s i t i o n s a s a me a n s t o g r o w a n d r e a c h i n g t h e n e x t l e v e l o f p e r f o r ma n c e i n t h e i r service platforms. Attracting, developing and retaining more leadership capacity F o r e i g n b a n k s c o m m i t t e d t o m a k i n g a p l a y i n I n d i a wi l l n e e d t o a d o p t a l t e r n a t i v e a p p r o a c h e s t o w i n t h e r a c e f o r t h e c u s t o me r a n d b u i l d a v a l u e - c r e a t i n g c u s t o me r franchise in advance of regulations potentially opening up post 2009. At the same time,they should stay in the game for potential acquisition opportunities as and when theyappear in the near term. Maintaining a fundamentally long-term value-creation mindset. reach in rural India for the private sector and foreign banks. W i t h t h e g r o wt h i n t h e I n d i a n e c o n o m y e x p e c t e d t o b e s t r o n g f o r q u i t e s o me t i m e - e s p e c i a l l y i n i t s s e r v i c e s s e c t o r -

t h e d e ma n d f o r b a n k i n g s e r v i c e s , e s p e c i a l l y r e t a i l banking, mortgages and investment services are expected to be strong. the Reserve Bank of India (RBI) has approved a proposal from the government to amendthe Banking Regulation Act to permit banks to trade in commodities and commodityderivatives.

(Extra)Liberalisation of ECB norms: T h e g o v e r n me n t a l s o l i b e r a l i s e d t h e E C B n o r m s t o permit financial sector entities engaged in infrastructure funding to raise ECBs. Thisenabled banks and financial institutions, which were earlier not permitted to raise suchfunds, explore this route for raising cheaper funds in the overseas markets. Hybrid capital: In an atte mpt to relieve banks of th eir capital crunch, the RBI h a s allowed them to raise perpetual bonds and other hybrid capital securities to shore up their c a p i t a l . I f t h e n e w i n s t r u me n t s f i n d t a k e r s , i t wo u l d h e l p P S U b a n k s , l e f t wi t h l i ttl eheadroom for rai si ng equi ty. Si gni fi cantl y, FII and NRI i nvest me n t l i mi t s i n t h e s e securities have been fixed at 49%, compared to 20% foreign equity holding allowed inPSU banks. THREATS Threat of stability of the system: failure of some weak banks has often threatened thestability of the system. Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the PSB as well as the private players. W i t h t h e g r o wt h i n t h e I n d i a n e c o n o m y e x p e c t e d t o b e s t r o n g f o r q u i t e s o me t i m e - e s p e c i a l l y i n i t s s e r v i c e s s e c t o r t h e d e ma n d f o r b a n k i n g s e r v i c e s , e s p e c i a l l y r e t a i l banking, mortgages and investment services are expected to be strong. the Reserve Bank of India (RBI) has approved a proposal from the government to amendthe Banking Regulation Act to permit banks to trade in commodities and commodityderivatives. Liberalisation of ECB norms: T h e g o v e r n me n t a l s o l i b e r a l i s e d t h e E C B n o r m s t o permit financial sector entities engaged in infrastructure funding to raise ECBs. Thisenabled

banks and financial institutions, which were earlier not permitted to raise suchfunds, explore this route for raising cheaper funds in the overseas markets. Hybrid capital: In an atte mpt to relieve banks of th eir capital crunch, the RBI h a s allowed them to raise perpetual bonds and other hybrid capital securities to shore up their c a p i t a l . I f t h e n e w i n s t r u me n t s f i n d t a k e r s , i t wo u l d h e l p P S U b a n k s , l e f t wi t h l i ttl eheadroom for rai si ng equi ty. Si gni fi cantl y, FII and NRI i nvest me n t l i mi t s i n t h e s e securities have been fixed at 49%, compared to 20% foreign equity holding allowed inPSU banks. THREATS Threat of stability of the system: failure of some weak banks has often threatened thestability of the system. Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the PSB as well as the private players.
y y y y
elevant answers: What is the swot analysis of hdfc bank? Strengths : - Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image. Products have required accreditation. High degree of customer satisfaction. Good... How maany banks are private sector banks in India? There are many private banks in India. Some of them are: ICICI Bank HDFC Bank Kotak Mahindra bank Axis Bank City Union Bank Federal Bank ING Vysya Bank Etc. What are the existing private sectors bank in India? Some of the top private sector banks in India are: ICICI Bank HDFC Bank Yes Bank Kotak Mahindra Bank Karur Vysya Bank etcA full list of all registered banks in India can be seen in the related links... Swot analysis of Bank of America? the swot can be found on the below given link: http://www.wikiswot.com/SWOT/11_Banking/Bank_of_America.html Read more: http://wiki.answers.com/Q/Swot_analysis_of_private_sector_banks#ixzz1lKOOl9FA

Banking Sector SWOT Analysis The balance of strengths and weaknesses identified within the Banking sector have shifted to a more negative positioning in recent years, but there are different outlooks within the sector as a whole. While the Trust and the Private banks are optimistic, the Clearing and Savings banks are more negative, with the off-Island Retail banks displaying mixed views. However, the size and importance of the Savings and Clearing banks in terms of total assets and staff employed is resulting in an overall more gloomy outlook for the sector. In relation to the issues covered by the SWOT analysis below, it is the size of the gap between the best estimate and pessimistic

outcomes for the sector that is most noteworthy. This is largely due to the severity of the threat posed by ESD to large aspects of the Banking sector proposition and compounded by the market access issue. As these critical factors are largely outside the Islands control and banking is the largest sector of the economy, the prognosis is doubly worrying. Strengths Valuable contributor to GDP over a period of 15 years and of pivotal importance to the Islands economy. High standard regulatory environment. Flexible work permit system and good quality staff offering personal client service. Weaknesses Weak retail and mass affluent customer proposition. General perception of Isle of Man as vanilla jurisdiction that is is not attractive to the up-scale clients required. Lack of legitimate access to markets, especially the EU. Lack of competitive differential with other offshore centres. Rigid legislation that inhibits business development. Opportunities Unified trade body to lead finance sector programme change. Active and aggressive targeting of corporate & private clients, and institutions that attract such clients, to shift focus from mass affluent to HNW business. Morphing of Banking and CSP propositions to create a bigger market share for all. Co-ordinating business relationships across the IoM finance sector to increase revenue, thus investing in the ecosystem. Threats ESD significantly impacts business levels, affecting the Savings Banks in particular. Anti-offshore regulations in foreign target markets restricting the development of products and new markets. Downsizing and reduction in banking operations in favour of rival jurisdictions. Outsourcing to cheaper jurisdictions Subsequent impact on rest of finance sector ecosystem. Marketing 3.17 As the Region moves from primary commodity production to the export of higher value-added goods and services, marketing becomes more important. Private sector enterprises in CDBs BMCs need to develop brand images that can be recognised internationally and are associated with high quality. There are already a

few outstanding examples of this within the Region, but enterprises require sustained assistance in developing product brands capable of penetrating international markets. Protection of these brands through appropriate trade mark registration and other intellectual property devices is of paramount importance if investment in product development is to yield maximum benefits.