Cases

Conducting an in-depth Comparative Study of two of the Largest Private Sector Banks in India

Background and Challenge

The clients wished to conduct an in-depth comparative study of their respective companies. The companies had conducted an internal study to:

  • Demystify the evolution and the success of the bank
  • Provide an explanation to the trajectory of growth faced by the two banks
  • Understand the compulsions and drivers to the strategies adopted by the two banks in the past 10 years
  • Provide a perspective on the future actions and profitability of the two banks
  • Understand the challenges thrown by the two banks to the foreign banks

To further conduct an in-depth comparative study, top management from both companies asked for advice from UC.

Approach and Recommendations

To conduct an in-depth comparative study, UC adopted the following approach:

  • Studied the two banks through:

    1) Interviews with bank personnel

    2) Interviews with industry specialists

    3) Annual reports/ industry reports/ analyst reports/ articles/ directors’ speeches etc.

  • Created a perspective on:

    1) Drivers for the creation of the two banks and their foray into areas traditionally serviced by foreign banks

    2) Strategies adopted each year and the difference between the strategies of the two banks

    3) The axis of competition each bank chose to capture the market

    4) Explanations for their income and asset growth trajectory and profitability year on year

    5) Share of the market and profitability product wise with a focus on retail banking

    6) Reasons for the aggressive pricing strategies used and yet maintaining profitability

    7) Future strategies, actions with regards to pricing and an impact on profitability and market share

Results

UC provided a detailed comparative report on the two banks.