Micro Environmental Analysis

Suppliers:

a) Customer deposits

b) Mortgages and loans

c) Loan from other financial institutions

Customers:

a) Joint account holders

b) Minors

c) Lunatics

d) Trustees

e) Proprietorships

f) Partnerships

g) Hindu Undivided Families

h) Limited Companies

i) Societies, Charitable Institutions

j) Foreigners

Marketing Intermediaries

Competitors

a) HDFC Bank

b) ICICI Bank

c) Axis Bank

d) Kotak Bank

e) State Bank of India

f) Andhra Bank

g) Yes Bank

h) Bandhan Bank
Technological Analysis

1. Technological Change

 In 2016, IDBI Bank had old version of Infosys’ Finacle, version 7.x. Later, they

move to Finacle 10.x and increased the performance pf the bank.

 It has also implemented Oracle Real Application Clusters database for Finacle.

2. Impact of Technological Change

 Digitalization provide the bank to increase their image and satisfaction to

customer in providing services to them.

 Bank is able to provide service to the customer at anytime due to digital banking.

 It is the first public sector bank to open its IFSC Banking Unit at India’s First.

3. Technology Transfer

 IDBI Bank launched ‘GO MOBILE+’ app for the customer to experience new

feature and service provided by them.

 The customers can easily access the facilities anytime and anywhere.

 The facilities they can access are; fund transfer, recharge, payments, and many

more.
Political Analysis

1. Impact of Political Ideology

 In January, 2018, Arun Jaitley said about privatization of IDBI Bank which will

be applicable on right time.

 In February, 2020, it has been re-categorized by as private sector bank RBI after

LIC takes 51% and become majority owner.

 Nirmala Sitharaman also proposed to sell 46.5% holding in IDBI Bank to private,

retail and institutional investors through stock exchange.

2. Impact of Political Stability

 In the year 2013, FDI grew up and this benefit to the bank in stability in the

market.

 Calibration of FDI and FII initiative help India to follow global norms.

 In policy reforms, Government do liberalization of FDI inflows in several sectors.

3. Impact of Political Systems

 It has a bad loan ratio and low capital so after majority stake with LIC it is trying

to exit the framework and resume leading.

 After privatization of the bank, employee’s response was not god as they joined

the bank as perspective of public sector and now it has become private bank.
Learnings

 Acquired more knowledge about IDBI Bank.

 Able to analyse internal and external environment factors of the bank.

 Able to understand the impact of economic factors on the bank.

 Able to analyse technological and political factors that can impact the function of the

bank.