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Complete 8 page APA formatted essay: Evaluation of Barclays Bank in india.Download file to see previous pages... Due to the high interest rate and the increasing purchasing power of the Indian economy
Complete 8 page APA formatted essay: Evaluation of Barclays Bank in india.
Download file to see previous pages...Due to the high interest rate and the increasing purchasing power of the Indian economy, the banking sector is on high demand. During this period, many foreign banks expanded their business to India as the economy of the country was growing at a very high rate of 8% per annum. The country provides ample opportunity for corporate banking, retail banking, micro finance and consumer financial banking sector (Bosworth, Collins &. Virmani, 2007, p.23). Barclays took the opportunity of the growing economy in India and adopted the expansion strategy by introducing retail banking in the country. India is expected to grow massively in the coming years and since the bank has started from scratch, it has a big advantage as it does not have any legacy systems. In retail sector, the bank has introduced personal loans and cards business and also NRI business plans within few days of launch. Though the bank doesn’t have many branches in India with the advancement of technology like internet banking, the Indian customers are ready to operate with the branchless foreign banks which helped Barclays to explore more and more (Sciglimpaglia &. Ely, 2010). 2. Analysis of environment 2.1 PESTLE Analysis The Pestle analysis is mainly done by the companies in order to find the environmental influence of the country on a business sector. Indian Banking sector is not much affected by the political government policies as compared to other developing countries because of the robust framework policy of free trade of the Reserve Bank of India. Indian economy has had a growth rate of around 8-9% during the last 3 years. 54% of the GDP of India was contributed by the service sector during 2006-2007 (Cetorelli &. Gambera, 2002, p.617-648). The socio-cultural factors are also changing people’s lifestyle and their behavior continuously. The people of any developing country often demand high class products leading to the requirement of money from banks, thus ensuring a good prospect for Barclays bank. India with second highest population (1.17 billion) with literacy rate of 61% is very advanced technologically thus giving a great opportunity for Barclays to implement core banking system in India (Kamath et. al, 2003, p.84). Barclays use latest technologies like internet &. mobile banking, CMA, NEFT, RTGS, INFINET, and Core Banking to get an extra edge over its competitors (IDRBT, 2004). But the Indian Government’s legislature and the farming policy for providing short term agricultural loans affects the banking sector on its profit in India. Indian environmental factor is very favorable for the agricultural development and thus the farmers’ needs are provided by Barclays through several customer centric schemes (Mohan, 2005, p.1106). 2.2 Industry life cycle The Indian banking sector can be broadly divided into two major categories i.e. nationalized and privatized bank. With the development in technology and product the nationalized bank are currently in transition stage while on the other hand the privatized bank like Barclays have crossed the transition phase with the implementation of technologies into their system. Since there is constant growth in technological and product it’s very difficult to determine a specific industry life cycle in banking sector.
