Abstract

State Bank of India (SBI) is the largest nationalized commercial bank in India in terms of assets, number of branches, deposits, profits and workforce. With the liberalization of the Indian banking industry in the mid-1990s, SBI faced stiff competition from the private sector and foreign banks which resulted in significant loss of its market share. The case describes the efforts of SBI to regain its lost market share by undergoing a major restructuring exercise which involved redesigning its branch network, providing alternate banking channels, emphasis on lean structure and technology up gradation. The case also discusses how SBI is building its image as a customer friendly bank by launching innovative products & services and promoting its brand. Finally, it discusses the challenges faced by SBI in 2004 and its plans in the future. The case includes a note on the recent trends in the Indian banking industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Corporate Restructuring
• Marketing initiatives adopted by SBI.

Keywords

Case, State Bank of India, Competitive Advantage, Market Leadership, Indian Banking Industry, Restructuring of Banks, Banking Channels, Products and Services, Technology Upgradation Program, Alliances and Tie-ups, Marketing Banking Services, Code of Fair Banking Practice