Key External Factors

Banking Industry
Presentation by:
Group-3

Key External Factor: Suppliers

Factor

Impact

Suppliers include:
Depositors

For bankers the customers are

the major source of funds.
Total Deposits collected by
SBI is 1394408,50,48,000.

Key External Factor: Distributors

Factor

Impact

Distributors include:
Branches
ATMs

26% of market share in ATM

population in India.
38% of the countrys total
ATM transactions.
15,564 Branches Across
country.
Better reach to customer and
expansion of business

Key External Factor: Creditors

Factor

Impact

Creditors include:
Depositors (Customers)
RBI

Deposits
1394408,50,48,000
Borrowings
183130,88,26,000
Increases the interest liability.

Key External Factor: Employees

Factor

Impact

Employees

2,22,033 Employees
Profit per employee 4.85
Lakhs.

Key External Factor: Special Interest Groups

Factor
Impact
SIGs include:
RBI
Ministry of finance
Money Markets/Capital
Markets
Economists

Based on the performance of

the banking sector RBI & FM
takes necessary regulatory
measures.

Key External Factors: Products and Services

Factor

Impact

Products and Services

Decides application and

sources of funds.

Economic Factors
Factors

Impact

Bank Rate policy(9%)

Cash Reserve Ratio(CRR)(4%)
Statutory Liquidity Ratio (SLR)(22%)
(Balances with RBI 84955,66,05,000)

Increase in BRP increases cost of

borrowing hence reduces supply
of money. It is a symbol of
tightening of monitory policy by
RBI.
Higher the CRR, lower will be the
liquidity in the system and vice
versa.
SLR is the certain % of liquid
assets that is to be maintained by
the bank with RBI to meet the
demand liabilities.

Political, Legal &Govt. Factors

Factors

Impact

Budget
Norms and provisions prescribed
by RBI
New Policies of the Govt.

RBI frames various norms and

provisions to address the
problems of banks such as NPAs.
Based on the budget the RBI cut
or hikes the rates.
Waiver of loans.

Technological Factors
Factors

Impact

ATMs
Online Banking

More than 1.77 crores Online

banking users.
More than 95 lakhs mobile banking
users.
State Bank Group debit card
holders (43%+ market share)

Socio, Cultural and Environmental Factors

Factors

Impact

Age
Occupation
Monsoon
Regional disparities
Cultural Disparities

Investment and Saving pattern

changes as per the
occupation(income).
Crop loans are mainly affected by
monsoon.

Competitive Factors
Factors

Impact

Lending policies of Different Banks Risky lending policies for higher

margins.
Other Banks
May erode profit margins.
NBFCs

Thank you