ICICI Bank - A SWOT Analysis
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ICICI Bank has emerged as the second largest bank in India with over $81 billion in assets and $896 million in profits. It has expanded globally with operations in 18 countries [S]. However, it primarily targets upper-income customers, missing opportunities with middle and lower-income groups [W]. It can expand its customer base by introducing more affordable services [O], but faces threats from increasing competition from other banks offering lower rates and fees [T].
ICICI Bank - A SWOT Analysis
- 1. PGDIE 40 NITIE, Mumbai Industrial Credit and Investment Corporation of India (ICICI) Bank A SWOT Analysis Strengths ICICI Bank has today emerged as the SECOND largest bank in India and is among the top 250 banks in the world within a decade of its operation. Currently it has an asset of worth around USD 81 Billion*, with a profit after tax of USD 896 million*. ICICI Bank is now a global player in the arena of International Banking through its operations in 18 countries all over the world. ICICI Bank has expanded its market capitalization through enlistment not only in NSE and BSE, but also in becoming the first non-Japanese Asian bank to get enlisted in NYSE. ICICI has successfully diversified its operations to a number of financial spheres, starting from general banking activities to general insurance, credit card services, mutual funds, stock trading, loans etc. It has a massive customer pool of 14 million (and counting...), and the same is served through 2016 branches*, and 5219 ATMs* in India. ICICI is considered as the pioneer in usage of Internet services for Online Banking from the comforts of home and offices. Much of its success is attributed to aggressive and innovative marketing strategies for its diversified range of products and services. Weakness It primarily targets upper middle class and upper class of the society, thereby losing the business opportunities concentrated at middle and bottom sections of the economical pyramid. ICICI levies higher services charges for various transactions making it expensive to afford by the major sections of the society. * Figures as on 31st March, 2010. 1
- 2. PGDIE 40 NITIE, Mumbai Opportunities Expanding business to the middle and lower income groups of the society by introducing economical version of its services and hence making it affordable. Threat More and more banks are coming up, both in private and public sector, with Online Banking Systems (which no longer is the exclusive domain of ICICI), competitive service charges and interest rates, lucrative loan schemes and insurance policies etc. In view of above, ICICI has to re-model its business strategies to cope with stiff competition from the fast growing pool of players in the Indian Banking Sector. -By Subhrajyoti Parida Roll No. 124, Sec. B, PGDIE-40 Batch. * Figures as on 31st March, 2010. 2