Growth Strategies at SVC Bank Harvard Case Solution & Analysis

Primary co-operative banks in India are located in suburban and urban areas, known as the urban cooperative banks (UCBs), traditionally centered around communities and groups work. The main activity of the banks lending to small businesses and home of the borrower, but the scope of their activities has been significantly increased. The case describes the Shamrao Vithal Cooperative (SVC) Bank inorganic growth strategy by acquiring weaker / loss UCBS, as well as the problems and challenges faced by the bank. It also discusses alternative organic growth to achieve its goal of pan-India presence. One of the fastest growing urban cooperative banks (UCBs) in India, SVC Bank is moving towards this goal. Of the total of 38 branches in 2005, the deposit base of ₹ 24 billion, the bank has grown to more than 100 branches with a total business ₹ 100 billion by 2011. This growth has come in three stages. During 2005-2008, when the policy of the government is not allowed to open new branches, SVC Bank grew by acquiring three weak UCBs with 24 branches. When restrictions on organic growth was removed in 2009, the bank aggressively added 26 new branches in two years. During 2010-11, it added 16 new branches, and also acquired a UCB with one branch. So the vice-chairman of the bank experienced the benefits and disadvantages of both organic and inorganic growth, he asks which route is better made sense and whether the bank should continue with this aggressive expansion over the past six years. "Hide
by Gita Kumta, Vrinda Kamat Source: Richard Ivey School of Business Foundation 12 pages. Publication Date: October 24, 2012. Prod. #: W12270-PDF-ENG

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