PPT
PPT
PPT
A Case Study On
Turnaround Story of Indian Bank
AMAL REMESH & ADITH
VENUGOPAL
MBA-SNGCE
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
Definition of
turnaround strategy
In General sense
to transform a loss
In Business Sense
to deal with issue
of a loss making
company
In an Academic
senseto solve
the root cause
failure of a loss
making company.
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
best
bank
in
the
country.
INDIAS TURNAROUND
QUEEN
First woman Officer in the Public sector banks to
become Chairman and Managing Director.
Took charge of restructuring Indian bank in June
2000.
Vigilance Commissioner in Central Vigilance
Commission in 2005.
Smt. Ranjana
Kumar
INDIAN BANK
Indian Bank a swadeshi bank on started in 15 August 1907, exactly 40
years before India got its independence.
It has 22,000 employees, 2100 branches and is one of the big public sector
banks of India.
It has overseas branches inColombo,Jaffna, Sri Lanka, Singapore, and
229correspondent banksin 69 countries.
Through its trusted banking service it gained its brand equity, committed
and
emotionally
attached
customers
who
have
been
banking
for
5
Indian Bank continued to flourish and boasted of the trust it had been
enjoying since the early 1900.
The 'nine decades of trust', suddenly came under threat in the 1990s,
when it started facing a problem in the management of assets and
liabilities due to indiscriminate growth of credit.
500
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
-500
-1000
-1500
Operating profit/loss
Net profit/loss
Net worth
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
GOI and RBI decided on a restructuring plan in June 2000 under the leadership of
(its new CMD)
Smt. Ranjana Kumar.
An MOU was signed with all unions and associations agreed to give the
management a free hand on the three-year long initiative.
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
NPA Management :
Credit management:
Extensive planning:
Corporate governance
Marketing
Technology up gradation
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
10
SUCESSFUL TURNAROUND
Restructuring of to make operations simpler and to ensure speedy decision-making.
Branch segmentation to cater t the needs of various target markets.
streamlined structure, several branches across the country were also merged.
To pare down excess staff and making the organization leaner Bank implemented VRS.
Bank took advantage of the 'securitization' Act to bring down the huge NPA levels .
Bank began focusing on retail products.
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
11
Performance improvement
1000
800
600
400
200
0
2000
2001
2002
2003
2004
-200
-400
-600
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
12
REFERENCES
www.indian-bank.com
The Turnaround of Indian Bank, case study IBS Center for management
research, case code- BSTR104
The New Beginning of Indian Bank -A Case Study On Turnaround Story of Indian Bank
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