BOB SWOT Analysis [Update 2022] ❤️

BOB SWOT Analysis 2022

This is a comprehensive SWOT review for the Bank of Barod. The goal is to determine the strengths and weak points and weaknesses of the Bank of Baroda. 

The study also explores the possibilities and dangers that the bank faces. Bank of Baroda is an Indian multinational financial services company with its headquarters at Baroda, Gujarat, India. It was established in 1908 by Maharaja Baroda (Maharaja Sayajirao Gaekwad III) in 1908.

BOB SWOT Analysis

SWOT Analysis of Bank of Baroda

A SWOT analysis compares a business’s strengths potential, weaknesses, opportunities, and threats, with those of its competition.

It’s a fantastic tool to identify areas where the business excels and areas of weakness as well as devising countermeasures for finding out how the company can improve its performance. In the section below, we’ll examine the Bank of Baroda’s SWOT Report.

Strengths In The SWOT Analysis of BOB

❤️ Multi-branched branch networks: Bank of Baroda is the second largest bank in India with a broad branch network, which allows low-cost resource mobilization. Bank of Baroda has about 5330 branches across India and has expanded into rural India as well with over 1964 branches across rural India.

❤️ Full Banking product collection Portfolio of Banking products Bank of Baroda has a complete range of banking services and financial products Many of them are available to their customers.

❤️ Government accounts There are a variety of government accounts that help to operate the Bank of Baroda. For instance, Railways pensioners can get their pensions through Bank of Baroda accounts. In the same way, distinct government profiles require an account with a government bank for pension or salary payments in this case. Bank of Baroda has advantages more than private banking.

❤️ A Strong Financial Position Bank of Baroda maintains a strong capital percentage (CAR) at 13.2 percent as of March 31st, 2016. The bank’s net worth was INR 305,860 crore. The solid capital position helps the bank to maintain its solvency levels even in periods of adverse market conditions.

❤️ Second largest bank: Bank of Baroda is the second-biggest lender in India and has global operations at INR 9,578,080 million on March 31st, 2016.

Weaknesses In The SWOT Analysis of BOB

❤️ The growth of NPAs is high: The growth in the NPAs of the Bank of Baroda exceeds that of its advances. In the year ending in 2016, the bank’s NPA was 9.9 percent of its gross advances. From 0.9 percent in 2009 BOB’s NPA increased to 5 percent in 2016. A higher rate of growth in NPAs is reducing the benefits of the growth.

❤️ The presence of the bank is low overseas. Bank of Baroda is one of the Top 25 banks across Asia but the bank is too dependent on the Indian marketplace, i.e. 89.6%. The contribution of BOB’s operational activities to profit and revenue is extremely small when compared with the top 10 banks in Asia. The small presence overseas increases the risk of business.

❤️ Forex Scam: A number of employees have been found guilty of Forex scams that operated from Bank of Baroda and HDFC. In fact, the RBI punished the Bank of Baroda for the forex fraud, which was close to 6000 crores. In addition, there were several frauds that involved bank employees.

❤️ low Brand equity in the case of government banks are known for advertising little and only in accordance with budgets available. Therefore, the bank is not able to build value for its brand in comparison to private banks. When it comes to the Government banks the State Bank of India, as well as other branches of state banks and Bank of India, have higher brand equity.

Opportunities In The SWOT Analysis of BOB

❤️ Transformation to Bank assurance model BOB is pursuing the goal to turn itself into an institution that is based on bancassurance. BOB has entered into a joint venture that includes Andhra banks, as well as the UK legal and general to create an insurance company for life known as India First Life Insurance. This strategy could yield benefits over the long term to the Bank of Baroda.

❤️ Favorable rates of interest guidelines: Improvement in business confidence in India has led the RBI to move away from an expansive monetarist policy (low interest) in favor of a more controlled financial policy (high-interest rate). This is expected to increase the net interest margins of Indian banks.

❤️ Growing acceptance of technology: Online cash transactions are growing in popularity, particularly after the introduction of demonetization and the launches of platforms like the BHIM application. The growing use of electronic transactions permits BOB to maximize the value of its technology investment.

❤️ Bank Audits Conducting audits of banks can aid HDFC in avoiding frauds that occur in branches. Even before demonetization there was numerous scams were exposed. Bank audits can keep employees safe and increase the reputation of the company.

Threats In The SWOT Analysis of BOB

❤️ Intensifying Competition RBI has permitted the foreign banking sector to put up to 74% of its capital into Indian banks. It allows competitors to obtain funds from foreign banks and also provides competition to the existing big private and public banking institutions in India.

❤️ Global interbank lending is lukewarm: Post the sub-prime crisis the global market for interbank loans has been dead. The subprime crisis has exposed the various banks from the US, UK, and many European countries. This has made obtaining money in foreign currencies more difficult for existing banks.

❤️ Private banks can be a significant rival to government banks because of the facilities they offer and the superior efficiency of private banks over those of the government.

References:

Bank of Baroda (2019) About us, available at: https://www.bankofbaroda.in/about-us.htm (accessed 05 December 2019)

The Economic Times (2019) What India’s new megabank means for banks & customers, available at: https://economictimes.indiatimes.com/industry/banking/finance/banking/what-indias-new-banking-behemoth-means-for-banks-customers/articleshow/68671033.cms?from=mdr (accessed 10 December 2019)

The Economic Times (2018) Number of adult Indians with bank accounts rises to 80%, available at: https://economictimes.indiatimes.com/industry/banking/finance/banking/number-of-adult-indians-with-bank-accounts-rises-to-80/articleshow/63838930.cms (accessed 10 December 2019)

Times of India (2017) Tech glitch triggers panic among BoB depositors, available at: https://timesofindia.indiatimes.com/city/vadodara/tech-glitch-triggers-panic-among-bob-depositors/articleshow/60149900.cms (accessed 12 December 2019)

FAQ BOB

What is the SWOT analysis of a bank?

The SWOT analysis of a bank evaluates the financial institution’s strengths and weaknesses, potential opportunities, and threats. A SWOT analysis is a formal evaluation of the strengths, weaknesses, opportunities, and threats of a bank.

Is Bank of Baroda a strong bank?

With 132 million customers and a total business worth US$218billion, it is India’s third-largest nationalized bank. It also has a global presence with 100 offices around the world. It is ranked 1145 in the Forbes Global 2000 List based on 2019 data. Bank of Baroda Ltd.

What are the strategies of Bank of Baroda?

Bank of Baroda communicates with customers through a variety of media. Bank of Baroda promotes its services via the internet, magazines, newspapers, and television ads.

Why Bank of Baroda is best?

BoB is the best-positioned PSU bank with an increased net interest margin and strong current account savings account accretion. Bob also has higher comfort regarding asset quality.

Is Bank of Baroda a safe bank?

They are all well managed and could give the best banks a run for the money in the future. Bank of Baroda, Canara Bank, Vijaya Bank. These banks, which were once private and had been nationalized, have a conservative culture and are slowly expanding their all-India presence.

Conclusion

Bank of Baroda is an Indian state-owned international bank and financial services company. It is India’s second-largest banking institution second only to it is the State Bank of India. 

It’s been a century-long and awe-inspiring journey through 21 countries. It’s a tale of ambition, vision prudent financial management, and corporate governance.

It started in 1908 with a tiny structure located in Baroda and continues to be a part of today’s business with the new high-rise and high-tech Baroda Corporate Centre in Mumbai.

We hope that this state-owned bank will take advantage of the opportunities and limit the risks to become the largest bank in India in the next few years. 

This SWOT assessment of the Bank of Baroda performed aided in the development of important recommendations, like developing a new concept and sticking to the most current performance indicators.

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