SBI Case Study

SBI Case Study

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Executive summary

The study is informative and highlights information on SBI performance, position in share value, competitiveness and scope of development since its establishment. SBI being one of the earliest banks in India and contributed significantly in the development of the nation its history is rich. The bank initially established in the urban area of India was established and 60% was owned by the government. Therefore, most of the government transactions and projects were financed through the institution this made it not only popular but also reliable. The bank was later nationalised and the government made deliberate plans to develop the rural India. Considering SBI was part of the government it was used in opening up development economic projects in the rural area. Therefore, the bank expanded across India and eventually became the biggest in the nation. Its status was highly regarded in the society therefore controlled the highest banking market share in India. However, the management failed to realised the changes that occurred in the industry and development mechanism to sustain competiveness and top quality services.

Also, the nationalisation of SBI created a notion that the bank was purely inclined towards offering the government avenues to finance its projects as well as perform transaction across India. Therefore, majority of the customers were lost to upcoming and competitive banks. This highlighted the initial stages that culminated to reduced performance and profitability of the bank. Also, the internal structure of the bank failed to reflect on the needs of customer considering India incurred tremendous economic development. Communication of the bank was not only poor but only allowed top to bottom mode of communication which eliminate the sense of belonging among the junior officers. Also, the organisational culture as well as structure contributed significantly in its underperformance. Although, Bhatt revived its development in 2006, the chairman is expected to leave which can ruin the bank. However, in relation to the identified changes the study offers solutions and recommendations to boost its development and transform it to greater heights of prosperity.

SBI Case Study