K’omrades

Consultancy
Akshay Chittimalla PGP/21/015
Surabhi Chandra PGP/21/055
Venkatesh T PGP/21/060
Abhinav Bura PGP/21/125
Bhavesh Silawat PGP/21/141
Somesh Gobbur PGP/21/358
Who are • Domestic Consultant

K’omrades ?
About Tata Capital Limited

Tata Capital Limited

Strengths
Tata Capital
Strong backing and support from the ultimate parent, Tata sons Subsidiary of Tata
Sons. Offers
Comfortable capitalization to support growth and expansion commercial finance,
plans, possibly by the regular infusion from the parent company investment banking,
consumer loans, PE

Weakness
Tata Capital Housing
Average asset quality; expected to improve with strengthened Tata Capital Financial Finance Limited-
risk management systems and processes Services Limited- Purchase of land,
Subsidiary of TCL. It is home improvement
Moderate, though improving earnings profile an NBFC offering fund loans, home extension
and fee based financial loans, project finance
services loans to developers

One-of-a-kind concept of Payments Bank has been incorporated in the Indian Banking System
with the ultimate objective of promoting financial inclusion
The following points are critical for long term growth so that they
may remain dominant in a rapidly evolving ecosystem:
• Radical departure from sales and product
obsessed mindset
Customer centricity • Rationalization of strategies to target right
markets, customer segments and solutions
To simplify and modernize, and to build technology agility, banks
should ask themselves three important questions:
How can they best manage the portfolio of technology assets to deliver
Q. 1 the most impact for businesses?

• Modernizing regulatory compliance

Regulatory • Bringing together different silos created for
recalibration individual compliance goals
• Portfolio of technology assets should be
Technology managed to help make banks more agile
management • Efforts should be focused on generic functions
with an emphasis on cost efficiencies.
What is the right level and type of technology externalization (i.e.,
Q. 2 the use of third-parties to design, develop, and manage technology
solutions)?
How do they direct development resources toward only the activities
Q. 3 that truly create competitive differentiation?

• As the potential for cyber risk increases with

increase in rapid adoption of technologies and
Mitigating cyber risk reliance on legacy infrastructure, measures
should be taken to mitigate it

• Banks can replicate what fintechs are doing,

Fintechs and big come up with innovative solutions, become
techs more symbiotic and less competitive, or pursue
a mix of these strategies

• With increasing automation and greater

Reimagining the diversity, banks should rethink their workforce
workforce strategy

1
BUSINESS SITUATION FRAMEWORK
New Market Entry, New Product, New Business, How to Grow, Strategy, Turnaround, Company Position Assessment

Customer : Who is the customer? What Product : Nature of product? Commodity

does each customer segment want? What good or easily differentiable goods ?
price is each segment willing to pay? Identify complimentary goods?

Competitor Concentration & Structure

(monopoly, oligopoly, competitive, market
Company :Capabilities and expertise share concertation) Competitor
behaviours (Target customer segments,
Distribution channels used
products, pricing strategy, distribution
Cost structure ? strategy, brand loyalty) Barriers to entry*
(do we need to worry any new entrants to
market)? Supplier concentration*
 Approach and Methodology

Market Assessment Objective of entering the market

1) Market sizing 1) Existing Saturation
2) Increasing Profitability
2) Possible product portfolio
3) Market Share
3) Market possibility 4) Growth
5) Other!
Competitive Analysis
Any barriers to enter into Banking ?
1) Analysis of Current competitor.
Organic or Inorganic Growth ?
2) Chance of any Substitutes entering industry.
Competitors
3) Analysis of future competitor entrance. Customer
Product
Component
PROSPECTS OF ENTRY INTO INDIA

High Low
Licensing
RBI as a regulator.
requirement,
Trade unions in public
investment in
sector banks can be anti
technology and
reforms and orchestrate
branch network,
strikes. Depositors may
capital and
invest elsewhere if
regulatory
interest rates fall.
requirements

High
Insurance,
Mutual funds or
Fixed income High
securities (For good creditworthy
borrowers)
PROSPECTS OF ENTRY INTO INDIA

PROS CONS

Economic and demographic drivers Regulatory Issues

Favorable demographics and rising income levels
Strong GDP growth
Policy support
Pradhan Mantri Suraksha Bima Yojana, Pradhan
Mantri Jan Dhan Yojana etc.
Infrastructure financing
India spends around 6% of GDP on infra & expected
to grow in future.
Government initiatives
'Udyami Mitra' portal for credit availability for
MSMEs
Simplification of KYC norms, recapitalization bonds
worth Rs. 80,000 Cr. (US$ 12.62 billion) for public
sector banks
Cost effective solution by Mobile banking &
Housing & Personal finance are increasing
Financial Inclusion
Priority sector lending (PSL)
Longer gestation period for getting
Licenses
Marketplace Challenges
Diverse banking environment
Unique product mix required to capture
market share
Social Issues
Social integration (relationships and trust)
Branding and publicity - PSB score higher
here
Infrastructure Issues
Branch infrastructure - No of Branch walk-
ins very high comparatively
 Why K’omrade Consultancy

Preparing organizations for sustainable growth

Certified Technology Experience

Certified Banking Keeps you ahead with
Domain Professionals upcoming trends &
technology in banking
sector
Partnerships
Insights from • Blockchain
different research • Advanced Analytics
analyst firms • Artificial Intelligence
 Successful entry
into banking for
a conglomerate,
recently
 Steady growth
of all our clients
from banking
sector
Thank you!