The Turnaround of Indian Bank|Business Strategy|Case Study|Case Studies

The Turnaround of Indian Bank

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR104
Case Length : 10 Pages
Period : 1992 - 2004
Organization : Indian Bank
Pub Date : 2004
Teaching Note : Available
Countries : India
Industry : Banking & Finance

To download The Turnaround of Indian Bank case study (Case Code: BSTR104) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

Business Strategy Case Studies
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Excerpts Contd...

Efforts at Restructuring

Efforts at reviving the Indian Bank began in July 2000 when the management, led by Kumar, submitted a plan to the GOI with details of the steps it proposed to take during the three-year restructuring period. Kumar requested the finance ministry to provide recapitalization funds, but the government decided to defer it till the bank showed a distinct improvement. Kumar began the restructuring by entering into a written agreement with the trade unions, seeking their cooperation on the three year long initiative. Soon after, the bank's structure was modified to make operations simpler and ensure quick decisions. The original four-tiered structure was modified into a three-tiered one, by doing away with the zonal office level...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The Revival

The official turnaround period of the Indian Bank was three years - 2000 to 2003. However, efforts started yielding fruit within the first year itself. The first ray of sunshine came in 2000-2001, when the bank posted its first operating profit of Rs 61.59 crore after suffering losses for years.

The turnaround finally happened, when the Indian Bank posted its first net profit of Rs 33 crore in six years in 2001-2002. In the fiscal year 2002-2003, net profits increased by 468 per cent to Rs.188 crore(Refer Exhibit-III).

In the Business Standard Annual 'Banker of the Year Survey' 2003, the Indian Bank was ranked second on the growth parameter. Analysts felt that this was no mean achievement for a bank, which was in the throes of losses half a decade ago. The honor was not surprising, as over 25 percent of Indian Bank's business since its inception had been done in the three-year period between 2000 and 2003 (Out of the total business of Rs.40,000 crore, Rs.11,000 crore was gained during the three-year period)...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Looking Ahead

Encouraged by the progress achieved during the three years of restructuring leading to the turnaround, the Indian Bank developed a new long term vision document called Vision 2010. The document, which embodied the vision of the bank, looked ahead to the year 2010 and included plans for a public issue which was likely to open in early 2005 (According to norms laid down by the Securities Exchange Board of India , an entity can come out with an IPO only if it posts profits for three consequent years and the Indian Bank was expecting to post its third consequent profit in the fiscal year 2004)...


Exhibit I: The Seven Parameters of Efficiency Adopted by the Working Group
Exhibit II: Loans Offered by Indian Bank (2003)
Exhibit III: Indian Bank's Net Income Over The Years
Exhibit IV: Business and Profitability (A Comparative Analysis)

Custom Search

Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.