Breaking the Bank

Your client is a leading public sector bank in India that has been experiencing a decline in profitability for the past 5 to 6 quarters. The bank operates pan India with a majority of its business coming from rural banking but also has an urban presence it wants to grow. Management wants you to analyze the reasons for the profitability decline and suggest avenues for growth. The timeline to reverse the decline is 1 to 2 years. The bank’s revenues have remained roughly constant while costs have increased. You are asked to start by analyzing the revenue side.

Analyze the reasons for the decline in the bank’s profitability and recommend strategies to reverse the trend within 1 to 2 years.