Evaluation of Barclays Bank in india Essay Example | Topics and Well Written Essays - 2000 words

Evaluation of Barclays Bank in india - Essay ExampleDue to the lofty interest rate and the increasing purchasing power of the Indian economy, the coasting sector is on high claim. During this period, many a(prenominal) foreign argots expanded their business to India as the economy of the country was growing at a really high rate of 8% per annum. The country provides ample opportunity for corporate entrusting, sell banking, micro pay 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 dodge 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 doesnt have many bra nches 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 purlieu 2.1 PESTLE Analysis The Pestle analysis is mainly done by the companies in order to reclaim the environmental influence of the country on a business sector. Indian Banking sector is not lots affected by the political government policies as compared to other developing countries because of the robust framework insurance policy of free trade of the Reserve Bank of India. Indian economy has had a growth rate of roughly 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 ever-changing peoples lifetimestyle 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 reciprocal ohm highest population (1.17 billion) with literacy rate of 61% is very advanced technologically thus giving a swell opportunity for Barclays to implement core banking system in India (Kamath et. al, 2003, p.84). Barclays use latest technologies like internet & active banking, CMA, NEFT, RTGS, INFINET, and Core Banking to get an extra edge over its competitors (IDRBT, 2004). But the Indian Governments law-makers 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 tooshie be broadly divided into two major categories i.e. nationalized and privatized bank. Wi th 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 its very difficult to determine a specific industry life cycle in banking sector. Thus taking into consideration the major areas of advancements, Roussakis