State Bank of India: Innovation and Technology Management Analysis

2997 Words May 30th, 2013 12 Pages
SCHOOL OF BUSINESS AND LAW
GLOBALISATION AND INNOVATION
Harvard Business School case study on State Band of India: The critique

NELSON NANA NGNINGA
BABS 5
NOVEMBER 2012
LECTURER SETTING ASSESSMENT: Rajendra Kumar /Anand Walser

SCHOOL OF BUSINESS AND LAW
GLOBALISATION AND INNOVATION
Harvard Business School case study on State Band of India: The critique

Contents STATE BANK OF INDIA (SBI): Brief introduction 3 External Influences 3 Internal turmoil 5 State Bank of India & Globalisation 5 The use of technology at SBI 6 Change and Innovation 7 References 10

STATE BANK OF INDIA (SBI): Brief introduction

State Bank of India is India’s largest commercial bank in terms of revenue, assets and market capitalisation. It was led,
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Funds were available in household as the gross domestic savings increased from 15.7% to 24.2% and bank deposits growing at a compounded annual rate of 19%. But the conditions quickly deteriorated with the economic crisis of 1990 due to current account deficit and currency overvaluation. The government embarked in a series of financial reforms: * Dilution of government ownership in nationalized banks * Lower entry restrictions * Allow banks to set their own lending and deposit rates * Improve financial disclosures
Social factors
A society’s culture determines the rules that govern how firms operate in the society but also how customers behave towards those firms. For instance, USA citizens believe family comprises father, mother and descendants whereas in India, family is broader and bond within its member tighter also. If a family member banked with SBI the rest followed. That is one of the reason people still banked with SBI even though their interest rate was about half a percent lower than other banks.
However, because of social obligations, employees’ decisions were not as arbitrary as they should have been. Decisions were biased as regard to which strata the customer belonged to. Hofstede identifies five social dimensions along which people tend to differ across cultures. India’s culture tends to be characterised by power respect. Hofstede explains that people
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