Bargaining power of buyers : There are a lot of banks in India both private and public so there is a lot

of competition among banks this competition gives buyers an advantage as banks have to keep
competitive prices and interest rates and if someone is providing higher interests on investments
buyers always have an option to go with them them SO bargaining power of buyers is very high

Bargaining power of suppliers : Supplier of the banks is one and only RBI and it’s the one under
whom all the banks have to function. It has a high bargaining power as all the banks have to follow
its norms. RBI has all the control of the banks and the banks have no choice but to follow it because
it’s the single regulator of the banks or the central bank.

Rivalry among the competitors : as said previously there are a lot of banks in india bothe private and
public and they have intense rivalry between them considering interest rates and loans granted so
the banking sector has a lot of competion within itself and the sector leaders constantly fight for
more customers buy reducing their interest charged and increasing their interest offered.

Threat Of substitutes : There is no threat of substitutes in the banking sector on the loan granting
area as only commercial banks are allowed to do it formally other than that its just the informal
money lenders. In the investment area there are a lot of financial service providers who can get the
investments as they provide higher returns ,banks may get investment as they are a little safer so in
this space competition exists

Threat of new entrants : In the banking sector the ones who have a greater market share excel as
they have higher capital so they can grant more loans and earn more. Unless a new entrant provides
very attractive interest rates on investments and at a risk lower or at par to the established banks
there is very minimal threat of new entrants as such as the