An Economic and Financial Analysis of Commercial Banks in Evolving a Competitive Strategy

Synopsis

Objectives:

To identify the clients of banks and analyze the marketing channels used by various banks to

push their products.

To identify and study the main banks in the private sector in India competing

To compare various banks with respect to specific retail products such as retail loans, cards,

salary a/c and NRI service.

To evolve a strategy for the bank to follow based on project findings.

Problem Statement:

Indian banks find themselves in a scenario of tighter regulation, global and domestic economic

slowdown, half-baked reforms, dwindling industrial performance, and a prolonged lull in the

capital market, increasing competition, excess liquidity and narrowing array of development

avenues. In such a situation the customer has become of prime importance. To stay one up in

competition it has become essential to gauge the competitor’s offering in terms of innovative

products and service to the customer and the reasons behind customer’s loyalty to a particular

bank.

In this regards, the scope of the project covers analyzing the private sector banks in India with

special emphasis on the product portfolio, both corporate and retail, evaluating the thrust areas

and strategies of these banks, and evolving a strategy for the bank based on the project findings.

To identify and study the main banks in the private sector in India competing and gauge the

strategy followed by each bank and thrust areas.

Methodology:

The study is exploratory in nature with primary data being collected though questionnaire and

balance sheets administered to a sample of 50 respondents. A personal interview will be

conducted with respondents. Some of the questionnaires will be filled up after a small

conversation relevant to the subject of the study. The questionnaire will be structured with both

open and close-ended questions. The balance sheet serves the purpose of calculating the various

ratios. Analysis, tabulation and interpretation of the data will be done accordingly and

conclusions will be drawn. Thus the questionnaire and interview method along with the balance

sheets will be adopted for the purpose of research.

Area of Sampling:

Sampling:

A sample is a small portion of the population selected for observation and analysis. By observing

the characteristics of the sample, one can make certain inferences about the population from

which it is drawn. A population is any group of individuals that have one or more characteristics

in common and are of interest to the researchers. The sampling technique to be adopted will be

convenience sampling. Non-probability samples that are unrestricted are called convenience

samples; they include informal pools of neighbours, friends, newspapers etc. In this study the

size of the sample is 100 respondents and the sampling unit constitutes the employees at different

level of banks.