Primary co-operative banks in India located in semi-urban and urban areas, known as Urban Co-operative Banks (UCBs), were traditionally centered around communities and work place groups. The extent of their operations had increased considerably although the primary company of these banks was giving to company houses and small borrowers. It also examines the alternative of organic growth towards its target of attaining a pan-India presence. Among the fastest growing Urban Co-operative Banks (UCBs) in India, SVC Bank was moving towards this objective.
By the year 2011, the bank had grown to more than 100 divisions using a total business of 100 billion from a total of 38 divisions in 2005, with a deposit base of 24 billion. This growth had come in three phases. During 2005-2008, when government policy did not allow launching of new divisions, SVC Bank had grown by acquiring three poor UCBs with 24 branches. The bank harshly added 26 new branches in a couple of years, when the curbs on organic growth were lifted in 2009. During 2010-11, it added 16 new divisions as well as got UCB with one branch. Ever since the vice-chairman of bank had faced advantages and dis-advantages of the both inorganic and organic growth, he wondered whether the bank should continue together with the kind of aggressive expansion of the last six years and which made better sense.
PUBLICATION DATE: October 24, 2012 PRODUCT #: W12270-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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