Porter’s Five Forces Analysis of Sbi

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STATE BANK OF INDIA

Porter’s Five Forces Analysis

1. Competitive Rivalry: High
Top Performing Public Sector Banks
a. Andhra Bank
b. Allahabad Bank
c.Punjab National Bank
Top Performing Private Sector Banks
a. HDFC Bank
b. ICICI Bank
c. AXIS Bank
Top Performing Foreign Banks
a. Citibank
b. Standard Chartered
c. HSBC Bank
The banking industry is highly competitive. The financial services industry has beenaround for hundreds of years and just about everyone who needs banking servicesalready has them. Because of this, banks must attempt to lure clients away fromcompetitor banks. They do this by offering lower financing, preferred rates andinvestment services. The banking sector is in a race to see who can offer both the
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•Advent of MNC Banks: Large numbers of MNC banks are mushrooming in the Indian market due to the friendly policies adopted by the government. This can increase the level of competition and prove a potential threat for the market share of SBI bank.

•Employee Strikes: There was an employee strike in the year 2006 which disrupted
SBI’s activities. This might happen again in the future if the employees are not taken care of.
Pvt. Banks - Retail Banking: Private Banks have started venturing into Retail Banking in the rural and semi-urban sector, which used to be the bastion of the State Bank and other PSU

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