State Bank of India SWOT Analysis

“SWOT is an acronym for the internal Strengths and Weaknesses of a firm

and the environmental Opportunities and Threats facing that firm. SWOT

analysis is a widely used technique through which managers create a quick

overview of a company’s strategic situation. The technique is based on the

assumption that an effective strategy derives from a sound “fit” between a firm’s

internal resources (strengths and weaknesses) and its external situation

(opportunities and threats). A good fit maximizes a firm’s strengths and

opportunities and minimizes its weaknesses and threats. Accurately applied, this

simple assumption has powerful implications for the design of a successful

strategy.”

State Bank of India State Bank of India (SBI) is the leading commercial bank in India, offering

services such as retail banking, commercial banking, international banking and

treasury operations. The bank is an integral part of State Bank Group, which

includes seven other banks and offers additional services such as mutual funds

and insurance. The bank primarily operates in India. It is headquartered in

Mumbai, India and employs about 179,205 people.

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State Bank of India SWOT Analysis

Strengths, Weaknesses, Opportunities and Threats (SWOT)

TYPE OF FACTOR Location of Factor Favorable Unfavorable

Internal Strengths Strong domestic

market position

sustaining reach and

customer confidence

Strong capital position

helping pursue growth

initiatives

SBS merger further

hastens SBI and its

associate banks

merger and helping

defend its leadership

position

Weaknesses Reduction in the

asset quality

increasing non

performing asset’s

ratio

Susceptible to

political

interventions

External Opportunities SBI could be the

highest beneficiary

from the increasing

adoption of E-

transactions

Investments in

information technology

will decrease

transaction costs of

SBI

New business initiative

will expand the market

share and increase the

Threats Opening of Indian

banking sector in

2009 will cause

intense competition

Global economic

slow down could

reduce demand for

banking services in

India

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State Bank of India SWOT Analysis

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revenues

Growth in general

insurance industry will

help increasing the

market share