State Bank of India (SBI) is India's largest bank. It was founded in 1806 and is majority owned by the government of India. SBI has over 17,000 branches across India and internationally. The document discusses SBI's strategic evolution over time in response to changes in ownership, governance, business processes, and structures. It analyzes SBI's competitors, products, marketing mix, SWOT analysis, and external environment using PEST and Porter's Five Forces frameworks. The analysis identifies SBI as the market leader and a "cash cow" given its continued growth and profitability.

1. Submitted by
Submitted to AADITYA SOOD
SandeepKumarMohanty ROLL NO 1
PGDM 15- 17

2. I
INRODUCTION -
State Bank of India is a public corporation owned by the government of India. This multinational company deals
exclusively in the financial and banking sector. SBI was founded in the year 1806 a multinational banking and
financial services company based in India.
State Bank OF India is India’s largest bank with total assets of US$388 billion and 17,000 branches, including 190
foreign offices, making it the largest banking and financial services company in India by assets SBI General's
current geographical coverage extends to 38 cities pan India and plans are on to extend this reach to another 20-
25 cities before the end of the current financial year

3. Strategic Evolution of SBI
Strategy can be defined as the periodic changes a business mustintroduceto its structure and operations in order to
ensure continuity in the face of environmental changes.The strategic evolution of a business can thus be
understood in terms of major social institutions such as the State, the market, community or civil society
and their interrelationships thatmay have a bearing on its working and thereby the achievementofthe principle objectives
of its establishment. Historians recognize moments of profound change when the balance of power or
influence shifts between these institutions. The SBI is a dynamic organization andhas beencontinuously changing its form
to adaptto its environment. Here, its three key environmental factors:
• Ownership and governance
• Business processes
• Structures and systems
MISSION -
To be a world class standard provider in buisness commitments with exellence to customers,shareholders and
employees
To diversify its financial services while continuing its efforts in banking role

4. competitor banks of SBI are as follows –
 Punjab National Bank
 HDFC Bank
 ICICI Bank
 Axis Bank
 Central Bank of India
Product in the Marketing mix
Cards – The products in this category include Travelling cards,Debit cards and Credit cards etc,
Consumer banking – This includes special type ofaccounts for specific type ofcostumers likefor teenagers,accounts for senior
citizens etc
Loans – This category includes all kinds of loans from study loan to medical loan and loans against securities
General insurance – According to the scheme launched by our prime minister ,every citizen who will open his account is liable
for a general insurance of INR one lakh from the bank.under jandhan yojna
MOBILE BANKING -With SBI Bank, banking is no longer whatit used to be. SBIBank offers Mobile Banking facility to all its Bank,
Credit Card and Demat customers. SBI Bank Mobile Banking enables you to bank while being on the move
Place in the Marketing mix
The place is the most important factor and State Bank of India has opened nearly 43,515 ATMs in country. The distribution
channels are fully equipped with latest infrastructure, technology with modern facilities and ATM and the branches are installed at
places that are convenientto both the banker and the customer. The conceptof internet banking through their residence and
offices is also encouraged to save time.
Internationally, the bank has near about 190 overseas offices that extend over nearly thirty-four countries in cities like Dhaka,
Tehran, Moscow, London, Maldives, Dubai, New York and many others. State Bank of India has opened various ATMs and
branches for the convenience ofits customers. The places are chosen with great care so that security would not be a problem.
Promotion mix
In order to promote the banking facilities & its facilities proper strategies are used and implemented like:
• Advertising: Television, radio, movies, theatres,,
•Print media: hoardings, pamphletsand newspaper, magazines
• Sales promotion: gifts, discount, incentives, etc,,

5. Advertisements focus on the modernization of banks and its branches and the many facilities provided by them.The main motive
of promotion is that the clients become impressed and they are attracted to the services of this bank.Under the promotional
strategy, ads are created with famous personalities making them brand abbasadors. The bank also provides incentives to its staff
so that better work environment is established.
Price
State Bank of India offers a many types offinancial services to loyal customers. Ithas very clear-cut pricing policy and they are
in a competitive marketplace so ithas a policy which includes creative efforts ateach level. Hence itcan be said that State bank
uses competitive pricing. Also we know that the pricing of SBI is determined by many of government policies.
The bank’s various strategies are made keeping in mind and examining the customer’s mindsetand economic changes that are
occuring around the market. State Bank of India’s pricing policy is very customer friendly. It gives many opportunities to the
customers via its flexible policies like operating the home loan account in either current account mode or savings accountmode.
75% of their funds are accessible atany given time.The pricing policies and decisions are made on the rate of interest that are
continuously regulated by the Reserve bank of India
SWOT analysis:
Strengths:
Brand name: SBI Bank has earned a reputation in the market over the period of time(it is the oldest bank in India
since 1806)
Wide Distribution Network: Excellent penetration in the country with more than 10000 core branches and more
than 5100 branches of associate banks
Government Owned: Government owns 60% stake in SBI. This gives SBI an edge over private banks in terms of
customer security
Weaknesses:
 The existing hierarchical management structure of the bank, although strength in some respects, is a barrier to
change
Still carries the image of the old Govt. sector bank
 SBI has the largest number of employeesin banking sector, hence the bank spends a considerable amount of its income in
employee’s salary compensation
 Though SBI is occupying the 2nd position in the credit card industry, it has the highest non-performing assets in the
industry, which stand out to be at 16.28 % (Dec 2014)

6. Opportunities:
Increasing trade and business relations and a large number of expatriate populations offers a greatopportunity to
expand on foreign soil
 Expansion into rural areas will help expand is network mre and attract more numbers of customers
Micro Finance: there is a lot of growth opportunity in the area ofmicro finance
Threats:
The changing interest rates & also the changing policies ofRBI.
Slow down in the domestic economy will raise a concern over credit off-take thereby Impacting earnings growth
 FDI allowed in banking sector is now increased,this can be a major threat to SBI as people tend to switch to foreign banks for
better facilities and technologies in banking
 Private banks have started entering and penitrating into the rural and semi-urban sector, which used to be the main area of the
State Bank and other PSU banks
Porters five forcestheory:
1. Threat of competitors:
Top Performing Public Sector Banks
a. Andhra Bank
b. Allahabad Bank
c. Punjab National Bank
d. Dena Bank
e. Vijaya Bank
Top Performing Foreign Banks
a. Citibank
b. Standard Chartered
c. HSBC Bank
d. ABN AMRO Bank
e. American Express

7. 2. Threat of new entrants: there have been many new entrants in banking sector like yes bank
3. Threat of substitutes: investors as a substitute can always invest into the capital markets instead of depositing
in their capital in the bank.
4. Buying power of suppliers: changing policies and guidelines of RBI, interest rates, CRR and SLR maintained by
the banks as per RBI norms.
5. Buying power of customers: changing scenarios, increasing and decreasing disposable incomes, other
attractive options available to customers
EXTERNAL ENVIRONMENT ANALYSIS
(PEST analysis )
Political
Political environmentof any country always have effect on all the sectors ofthat country and banking is no exception. With good
& stable political environment,banking sector is able to transfer funds more efficiently. One must note that the political instability
of the country affect directly the banking sector in India
Weakness in Indian political system affects the economic flexibility. Bureaucracy, poor administration, coalition, and power hurts
the resilience of India’s framework of policy-making.unstable politics leads to delayed decision making and
implementations.Monetary policy ofRBI has been restrictive over last couple ofyears with more intervention by RBI into money
market. RBI has made many changes into repo and reverse repo rate to curb inflation and ease the pressure
 Monetary policy
 Regulatory frame work
 Degulation of market

8. Economic
India's economic flexibility is damaged by its weak economic structure, with very low per capita GDP. However, this risk is p artially
covered with the growth percentthat India has & with its characteristic of being a well-diversified economy.Indian economy is
getting into expansion mode combined with private sector growth. The Indian private sector has not yet fully taken the benefit of
absolute credit growth ofvthis country. The increase in private sector credithas been very nominal over last few years.There is
high creditrisk in Indian banking sector owing to the notwell developed legal framework thatleads to delayed payments and lower
recovery. As per S&P reviews on Indian Banking, Indian banking regulations are at par with world standards. RBI has taken
noteworthy steps to ensure feasible risk-return ratio of banks
 Regular change in rate of interest
 Complex nature of operations
 Consolidation of industry
Social
India has been on growth track and banking being an maor part of our economy ithas to adjust itself so as to supplementthe
growth of indian economy. Despite all this growth, Indian rural part have largely deprived with the basic banking facility.where
Farmers and small businessman have no other choice than to take loans from local vendors. Also The techcno type consumer
provides opportunity as well as poses challenges in the banking system.The consumers are looking for electronic modes offund
transfer along with the personal touch and experience
 Employment
 Demographics
 Working condition
Technologicalenvironment:
With the new changes in technology, banking has seen major changes in operations and has now focused on customer centric
approach, mobile banking, ATMs, internet banking,core banking, ERP, etc. and improved efficiency and productivity. Banks are
now focusing on cashless, paperless and hassle-free working. As per KPMG, non-cash paymentcomprised of91% in value terms
compared to 88% in 2013. Also, the payments made through cheques have also come down
Establishment of computers, internet connectivity, RTGS and NEFT, MICR Cheques, ECS ,OTP are all significant milestones in
present. The continuous advancementin technology changed the way the bank interacts with consumer. Now, we have the virtual
banking concept to roll out in market wherein the products or services are available only on electronic modes and these are
competitively and attractively priced so as to invite customer to non-branch banking world, thereby reducing costs. With
digitalization oftransactions, wireless transfer offunds, paper less culture, etc. the banks have opportunity ofimproving the overall
productivity, reduce cost and provide better customer service

9. PORTER’S 5 FORCE ANALYSIS

10. Competitor analysis
Thus we can clearly see sbi is leading and icici bank is traling

11. BCG theory: Cash Cow
There is a lot of growth potential for the banking industry because ofincreasingdisposable incomeofcustomers,increasing
working class, more volatility in other markets also increasingimportance of savings and in this banking industry SBI
has shown a growth rate of 13% with a 21 % increase in PAT standing to 62.1 cr in the FY 20013-14. Hence itcan be
concluded thatSBI stands at cash cow in BCG matrix.
References-
http://www.researchandmarkets.com/
http://mywordsmyarticle.blogspot.com/
http://wikipedia.com
www.marketing91.com