2. Company profile
State Bank of India (SBI), with a 200 year history, is the largest commercial bank
in India in terms of assets, deposits, profits, branches, customers and
employees. The Government of India is the single largest shareholder of this
Fortune 500 entity with 61.58% ownership. SBI is ranked 60th in the list of Top
1000 Banks in the world by “The Banker” in July 2012.
SBI provides a range of banking products through its network of branches in
India and overseas, including products aimed at non-resident Indians (NRIs). SBI
has 14 regional hubs and 57 Zonal Offices that are located at important cities
throughout India.
SBI had 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%)
were in Rural and Semi-urban areas. In the financial year 2012-13, its revenue
was INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations
contributed to 95.35% of revenue. Similarly, domestic operations contributed to
88.37% of total profits for the same financial year.
3. Analysis and interpretation
The reason that is given for the boom of the sector in India are:
Pharma is a niche industry
Advancement of technology and science
People are prone to diseases due to lifestyle, radiology and hazardous
substances
Export by the major players and support from the government
The reason that is cited for the industry declining are:
The stringent norms of the regulatory bodies like USA FDA.
The reduction of export of Indian manufactured drugs. The export will
potentially fall due to the quality of the drugs that are manufactured in India
and the price issue that the pharma companies are facing with the
government.
The increase in the excise and customs duty will also affect because in this
industry the imports plays an important role, so thus this will lead to the
increase in the cost of production.
Since Pharma industry is given the tag of “hazardous industry”, thus this will
play a crucial role due to the various rules and regulation laid down by
various regulatory bodies.
4. When it comes to Goa industry, they had a very mixed opinion. Some said the
industry will be stagnant but some said that the industry will grow.
The reason cited for booming are :
Land availability- The lands are given by the government at a reasonable price to
make sure with the advancement of the industries, the people are also helped to
advance economically.
Resources are good- Land, material and labor is a very crucial things to
determine that why this sector is playing so good.
More development of backward areas- With Goa been a major hub for the
manufacturing of pharma drugs in India, the government is trying to develop the
backward areas of the state by given user friendly policies in various places like
Verna, Kundiam, ponda and to name few.
Contract manufacturing plays an important role thus making the industry less
vulnerable to stagnation. For eg: Microlabs manufactures various products of
Teva India. Thus the sector will keep on booming with less new players in the
market.
Research and Development is a key area for Wallace, the three things that R&D in
Wallace do is:
Improving products
5. Findings
When coming to the corporate such as salary account and etc , the
pharma companies chose the private players rather than SBI due to
The slow working of the bank
Poor communication of services- Sometime the corporate is in a
dilemma whether the branch can avail various services or not.
No follow up with the companies
Laid back attitude of the employees, may be due to stressed schedule.
Poor customer services
Scarcity of well trained staffs
Old manpower and most of them are not technology oriented.
Long procedure for small work.
SBI Verna branch doesn’t take up state taxation, they only allow central
taxation as a result Blue cross have to travel to margoan, Vasco or
Panjim for that matter, which is quite cumbersome.
6. When asked about SBI as a personal point of view, he said that the bank
has transformed it self into a giant through innovation.
He said that the e banking facilities as really helped people to pay away
their EMI’s or etc online itself. With the advent of IT in India, SBI has really
moped in the opportunity and worked very well. SBI which was 10 years
ago, is not the same. Before the bank had a very ‘dun care attitude “but it
has moved on.
The reason why most of the expert chose SBI is due to the brand name and
the very notion that money is safe, since it is a banker to every Indian. But
other banks like ICICI and PNB are all new players, what credibility this bank
provides, no other bank provides in the country.
7. Suggestions
SBI should relegate the services to respective hierarchy- They should try to use
technology more often. The issue of hierarchy plays a very important role when
it comes to providing services
They should set up kiosk to provide better information to the companies and
individual regarding their latest services.
They should have enthusiasm to tap the potential salary accounts of its clients.
To train the employees to give a better customer services.
He said SBI should give some better facilities to the corporate for eg: if SBI
makes the salary account of every Watson employees to minimum zero
account, then it will help to attract some 1000 employees who are working with
the company. Similarly good insurance and mediclaim offer will help them to
rope in a good number of corporate customers.
Increase skilled staffs.
Trained and friendly staff.
They should try to communicate their schemes to the corporate in a very
efficient and effective way
8. Increase automation- For examples most of the transactions should
be allowed to be done by Net banking rather than forming up cues in
banks and wasting of time. The automated machines should be
installed for the deposits and passbook issues and they should thing
something out of the box when it comes to the corporate.
They should try to come out from the rural image and position
themselves as banker to the corporate.
