State Bank of India: Breaking entry barriers and building an identity in Singapore

• Main Authors: TAN, Swee Liang, MATHUR, Sarita, VENKATARAMANAN, S. N.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Market entry; brand identity; value proposition; product offering; pricing; entrance strategy; growth strategy; target market; consumer banking; international business; financial services; banking; India; Singapore; Finance; International Business; Marketing; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/102; https://cmp.smu.edu.sg/case/2921
• Institution: Singapore Management University

In October 2008, State Bank of India (SBI), India’s largest state-owned bank, makes its foray into Singapore’s consumer banking market. A year into operations, Anil Kishora, chief executive officer of SBI, Singapore, is charged to double the remittance earnings in the next 12 months, an onerous task for a young branch that is just finding its feet in a new market. Yet Kishora’s team manages to successfully meet the target — remittance volume rose by 96% in ten months. Despite these successes, Kishora is aware of the challenges that lay ahead. Remittances have been a quick win and have yielded the necessary cash flow for the new division. But will the growth from remittance earnings be sustainable over the longer term? How can SBI establish a strong presence and build an identity in Singapore’s mature and fiercely competitive market, beyond the remittance story? Through this case students will learn how a bank from an emerging market prepares to enter a well-developed and highly competitive retail-banking sector, discussing strategic questions of developing unique value propositions and defining target markets. Students will also discuss ways in which SBI can expand its presence and build a brand identity in Singapore. The case is suitable for undergraduate and postgraduate courses on economics of globalisation, international business, and brand strategy.