Case study on Barclays: Survival and Expansion Strategies in India.

Introduction: Barclays is a UK-based financial services group with a large international presence in Europe, the United States, Africa and Asia. Its areas of expertise are primarily banking, investment banking, and investment management. In terms of market capitalization, Barclays is one of the largest financial services companies in the world. Barclays is a global financial services company headquartered in London, United Kingdom. Barclays is the 10 largest banks in the world and is the third largest in terms of assets. Though the Bank was founded in the year 1690 the name 'Barclays' became associated with the business in 1736. Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs many people. Barclays moves, lends, invests and protects money for over 30 million customers and clients worldwide. Barclays is a major global financial services provider. It operates in over 50 countries employ more than 156,000 people. In 2008, Barclays had an income of 23 billion, generating a profit before tax of just over 6 billion. In the UK, Barclays has 741,000 business customers. Many of these customers run relatively small enterprises; some are new business start-ups. Barclays offers a dedicated banking service for smaller enterprises called Local Business. This is provided through the bank's UK retail banking division. Their experience and expertise in providing world-class banking solutions for corporate and small and medium enterprises constantly attempt to work towards customer advantages. Their banking solutions are tailored to specifically meet your banking requirements. In the UK they have over 50 areas of industry expertise including Oil and Gas, Manufacturing, Personal, Wholesale, Property, Energy, Food & Drink, Transport, Automotive, Hotels, Media, Telecoms, Utilities, Pharmaceuticals and Business Services. The finance market has become global, and those companies expected to stay in business are most likely to be those focusing on a global strategy. The current strategy for increased competitiveness comprises improving

customer services by investing in customer facing roles, expanding in size, achieving economies of scale, and reducing costs. One way of minimizing costs and improving customer services is to offshore back-office activities to lower-cost countries like India.

Barclays in india:
Barclays move, lend, invest and protect money for more than 50 million customers in over 50 countries and have over 300 years of history and expertise in banking. Our services include personal and corporate banking, credit cards, investment banking, wealth and investment management services across Europe, Africa, Asia and the United States of America. They have been in India for nearly three decades, through our leading investment banking division and more recently with our personal and corporate banking services in Mumbai, Pune, New Delhi, Hyderabad, Kanchipuram near Chennai, and Nelamangala near Bangalore.
Branches Mumbai: Barclays Bank PLC - India Head Office 801-808 Ceejay House, Shivsagar Estate Dr Annie Besant Road, Worli, Mumbai - 400018 Investment Banking - Investment Banking Division Tel: +91-22-6719 6000 Fax: +91-22-6719 6100 Barclays Bank PLC 601/603 Ceejay House Shivsagar Estate Dr. A. B. Road, Worli Mumbai, 400018 Tel: +91 22 6719 6400 Branch timings: Weekdays: 10 am to 6 pm Saturday: 10 am to 2 pm Closed on all Sundays and Public Holidays Pune: Barclays Bank PLC Connaught Place Building, Ground Floor, Shop No.31 & Shop No.32, Bund Garden road, Pune 411 001 Tel: +91 20 41208823 and +91 20 41208824 Fax: +91 2041208830 Branch timings: Weekdays: 10 am to 6 pm Saturday: 10 am to 2 pm Closed on all Sundays and Public Holidays New Delhi: Barclays Bank PLC First Floor, Eros Corporate Tower Nehru Place

New Delhi 110019 Tel: +91-11-4657 9000 Fax: +91 -11-4657 9098 / 99 Branch timings: Weekdays: 10 am to 6 pm Saturday: 10 am to 2 pm Closed on all Sundays and Public Holidays Kanchipuram: Barclays Bank PLC K.B.K Tower, 2nd floor, No-33, 33/1 West raja street, Opp Kumara Kottam (above More Super market) Kanchipuram-631502 Tel: +91-44-27234501 & +91-44-27234502 Fax no: +91-44- 27234509 Branch timings: Weekdays: 10 am to 3 pm Saturday: 10 am to 12:30 pm Closed on all Sundays and Public Holidays Nelamangala: Barclays Bank PLC First Floor, Paramanna Layout, B.H.Road, Nelamangala Bangalore 562123 Tel: +91-80-2772 3768 / 2772 3769 Fax: +91-80-2772 3531 Branch timings: Weekdays: 10 am to 3 pm Saturday: 10 am to 12:30 pm Closed on all Sundays and Public Holidays Hyderabad: Ashoka Capitol Blg Gound Floor,Shop no G-1A,Plot no. 89 & 90 L V Prasad Marg Road no 2, Opp KBR Park Banjara Hills Hyderabad-500034 Branch timings: Weekdays: 10 am - 6 pm Saturday: 10 am - 2 pm Closed on all Sundays and Public Holidays

Personal Banking Helpline Numbers Personal Banking 18002336565 (Toll free for MTNL / BSNL users) 60007888 (for Private Service users) (This number is accessible from all metros and state capitals. For other cities and mobile users please dial the no 6000 7888 with a prefix of the nearest metro /capital city code)

Corporate Banking Helpline Numbers Corporate Banking 022-6000 1550 (for Private Service users) (This number is accessible from all metros and state capitals. For other cities and mobile users please dial the no 6000 1550 with a prefix of the nearest metro /capital city code.)

NRI Banking Helpline Numbers

NRI Banking

Call us in India 1800 233 6565 (MTNL and BSNL users) 6000 7888 (for private service users) Call us in UK - 0800 376 2355 Call us in UAE - 8000 441 4318

The clients of Barclays Bank India consist of individuals, multinational companies, public sector companies and a large number of small and medium enterprises. Services consisting of payment and cash management services, trade, finance, loans, deposits and treasury solutions are offered to clients. The consumer banking division of Barclays Bank India that was launched in 2007 offers customers an increasing suite of products and services that are relevant both to the emerging markets and the current market needs as well. Barclays recently launched The Latitude Club, a global commercial banking proposition that helps corporate customers to identify international prospective business partners. Barclays Bank India: Commercial Banking All the customers of Barclays Commercial Banking have a dedicated Relationship Manager to help them manage their funds in the best possible way. The Relationship Managers have specific industry expertise and experience to understand the financial requirements of the clients; they also provide access to Sales Financing Managers and International Trade Managers as required. Some of the commercial banking products of Barclays include trade & finance, deposits, treasury solutions, payment & cash management, loans and financing. Barclays Bank Loans Barclays Bank India provides various types of loans to customers to take care of their financial needs. The bank provides home loans, business loans and loans against property based on requirements. Barclay's business loans in India can be taken by partnership firms, self employed individuals, sole proprietorship firms and private limited companies. All the loans have easy repayment options making it easy for everyone who take the loan to pay back the money. Barclays Bank NRI Banking Barclays Bank India has a wide range of financial products that are specifically designed keeping in mind the requirement of NRI clients. Some of

the facilities available to NRI clients include NRI Home Loans, Premier NRI, Non Resident External (NRE) Savings Account, Investments and Foreign Currency Non Resident (FCNR) Deposits. Barclays Bank Credit Card Barclays offers a range of credit cards that makes the whole experience of shopping a very hassle free one. Some of the special features of Barclay's credit card consist of the freedom to decide on the minimum amount that the customer would like to pay, assign credit limits and choose when to receive the credit card statements. All credit cards have the highest level of protection against frauds. Some of the cards offered by the bank include:

Times of Money Barclaycard Gold Barclaycard Platinum Yatra Barclaycard Platinum Times Card from Barclaycard Barclays Premier League Barclaycard

Survival techniques:
Barclays in India havent been as successful as compared to UK and Africa. But, still they have been successful in continuing their making their presence in many major cities in India as well as to many big enterprises. Besides being a late comer in Indian market they still are continuing in Indian market which is already crowded by many big players such as State bank of India, ICICI, HDFC, and Axis bank etc. The Indian market is already at saturation point so with it has been very hard for a newcomer such as Barclays to exist in same market. It has recently in few years expanded its operation so survival against other old players had been very hard. Where other players in market are taking corrective measures on personal loans and credit card portfolios and Barclays is still in marketing stage by contacting customer about their loans and other services. Innovativeness has been a key point or strategy for Barclays which make them stand out among other players. In 2008, Barclays had been one of 1st banks which launched its mobile banking services. They tied

up with bharti telesoft an arm of bharti enterprise to launch their mobile banking services. Barclays was the 1st bank to launch their banking services on GSM mobile (services was named HELLO MONEY), which used USSD technology for 1st time in India. The services were launched with attractive scheme of rs.30/month and free of cost to salary a/c holders and it also launched it to no frill a/c which was with limited features of mobile banking services. Another innovative step taken by Barclays was when in same year (2008) it tied up with e-payments and remittance services provider Times of Money to launch an online money transfer services called Barclays Online Money Transfer -- will enable the bank's customers in the UK to transfer money online directly to any Barclays account anywhere in India. The benefit shall directly to customers of Barclays bank in UK as well as India.

Tie-up and purchasing stake in some important institution had also been an important part on the part of Barclays survival and expansion in India. In 2006, The Barclays as part of its expansion drive in the high-potential Indian financial services market, Barclays Bank picked up a 10 per cent stake in asset reconstruction company, ARCIL, from domestic banking major ICICI Bank. "We intend to expand our operations in India where we are already a leading player in debt raising for Indian corporate as well as in risk management. The ARCIL move is a part of our entry strategy into the Indian market," (Barclays Capital Managing Director-Investment Banking Raju Shukla told the media). In 2006, UK Financial services group Barclays roped in Samir Bhatia, head of corporate and SME banking in HDFC Bank, as managing director of its retail and commercial banking in India. Bhatia was taken on board as part of the bank's plans to widen its activities in India to include corporate, small and medium enterprise and retail business in India. In 2007, UK-based Barclays Bank, which launched retail banking services in the country, it tied up with ICICI Lombard General Insurance Company for offering non-life insurance products to its retail customers. The company will provide insurance products for Barclays customers who have availed of credit cards, personal loans, SME loans, premier investment services or any other banking products, ICICI Lombard said in a statement. ICICI Lombard has designed health insurance policies, that can also cover check-ups, hospital allowances and ambulance charges, it said.

In 2010, Barclays as an expansion strategy again have re-enter INTELENET. The UK-based Barclays Bank has acquired a 12.75% equity stake in back office services provider Intelenet Global Services. The bank has again become a shareholder in the firm, three years after selling its entire stake and exiting the company. The BPO provider, which is majority-owned by private equity firm Blackstone, did not disclose the value of the deal. The most important reason for its survival has been that it has been leading player in debt raising for Indian corporate. It recently in 2011 gave loan of 100 million to SSTL (Sistema Shyam Tele Services Ltd). It is same company which provides telecom services under MTS brand in India.

Discussion:
So, the question now arises that what new thing they should do in order to make its presence felt in a bit stronger way or what other important strategies they need to apply for better results and making its position better in India. According to me, Barclays immediately need to show its self that they do exist in India because majority of population have not even heard about them working in India except for in some major cities. They need to work on the advertisement part and show that what all products and services they are making available to Indian people. They need should advertise various benefit they are providing to customers in comparison to other banks. They also need to open new branches in new cities in order to make their presence felt to Indian customers. Besides that they may also expand in rural area by coming up with new products and services for rural people mainly for agriculturist society of rural area.

Conclusion
In the end I just want to say that Barclays with its strong capital backup can do anything they want to do, but the question that arises in my mind is that are they moving bit slow purposefully or un-purposefully? Ques. Should they advertise more ?

Ques. Should they move in rural area? Ques. Is Barclay moving slowly purposefull or not?