1. Competitive Rivalry:
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
Top Performing Foreign Banks
a. Citibank
b. Standard Chartered
c. HSBC Bank
Industry Rivalry
Industry rivalry means the intensity of competition among the existing competitors in the market. Intensity of rivalry depends on the number of competitors and their capabilities. In case of Axis bank, we have found that this particular parameter is fierce.
Since March 2002, Bankex (Index tracking the performance of leading banking sector stocks) has grown at a compounded annual rate of about 31% as shown below.
After a very successful decade, a new era seems to have started for the Indian Banking Industry. If we look at 5 years historical performance of different types of players in the banking industry, public sector bank has grown its deposits, advances and business per employee by the highest rate – 21.7%, 23% and 21.1% respectively. As far as net interest income is concerned, private banks are ahead in the race by reporting 24.2% growth, followed by pubic banks (21.4%) and then by foreign banks (14.8%). This clearly indicates that the industry is growing...
The banking industry is highly competitive. The financial services industry has been around for hundreds of years and just about everyone who needs banking services already has them. Because of this, banks must attempt to lure clients away from competitor banks. They do this by offering lower financing, preferred rates and investment services. The banking sector is in a race to see who can offer both the best and fastest services.
2. Buyer Power: High
With the emergence of larger number of players in the Banking Industry, the switching cost of the buyer has gone done significantly. The onus is
