Tuesday, May 26, 2009

B&E’s manish k. pandey & deepak r. patra closely analyse how the ‘best’ got the better of the ‘worst weathers’, and a lesson for those with ‘....

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

Coming to the Indian banking sector, expect plenty of smirks from people in the American banking industry when you tell them how the Indian banking giant SBI has posted a 31.44% increase in profits for the period under consideration. Actually there is a positive correlation. Jagannadham Thunuguntla, Equity Head, SMC Capitals Limited, explains, “ As a matter of fact, post the Lehman Brothers episode, SBI saw deposits to the tune of Rs.10 billion every working day. Over the year, SBI, which had been maintaning a conservative approach towards branding, has now become aggressive and cornered the likes of ICICI Bank et al.” Size can become a burden for many, but SBI (with a mammoth 11,111 branches across India) does not seem to belong to that list by miles. SBI creditably showed a competitive streak when it became one of the first banks to slash interest rates and increase deposit rates following the RBI directive. According to V. Krishnan, Analyst, Ambit Capital Pvt. Ltd., “SBI recording huge profits can be primarily attributed to surge in its treasury profits and the higher bond prices... the key competitive advantage of SBI over its peers is its geographical reach.”


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Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).

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