ICICI Bank PESTLE Analysis

Published in Companies category by MBA Skool Team

ICICI Bank PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. PESTLE Analysis of ICICI Bank examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Let us start the ICICI Bank PESTLE Analysis:

Political Factors:

The political factors in the ICICI Bank PESTLE Analysis can be explained as follows:

ICICI Bank has its operations in India and has its subsidiaries in many countries. The bank is one of the biggest banks in India. To get this position and to maintain the position it has to maintain good political connections. The stability of the political governance also important for them to operate in a big democratic Nation. Due to pandemic and the great recession, the government has taken many policies to revitalise the banks.

ICICI bank is mainly for the industry purpose, so the government which have best policies to ease for doing business is a crucial thing for the bank. The policies related to the foreign trade also important for the bank. The bank should always observe the policies which improves the disposable income of the people.

Image: Wikimedia

Economic Factors:

Below are the economic factors in the PESTLE Analysis of ICICI Bank:

ICICI Bank has several financial aspects which define its business. Due to pandemic, the economy of the people has decreased a lot.

The recovery of the loan has decreased due to mortgage policies taken up by the government. The economy of the nation is important for any bank to operate smoothly. The Indian GDP is decreasing from the past five years and this year it went down to the least. The government of India has taken many policies to revitalise the economy. The government also make policies which helps for the Indian entrepreneurs and SMEs. These policies help for the industrial growth of the India which indeed impact on the operations of the bank.

Social Factors:

Following are the social factors impacting ICICI Bank PESTLE Analysis:

Since saving money is an integral part of people’s behaviour, it also impacts ICICI Bank’s operations. Due to uncertainty in the future, people are more conscious on the financial terms. People become more conscious about their and their family future needs. The way of purchasing has changed a lot. People have the mindset of that the cost of the products will increase in the future. Due to increase in family expenditure and other needs people are keen to take the loans to meet their needs. The Indians also change their mindset of working to give employment. Due to better education, people are keen to make their own way of living by establishing start-ups.

Technological Factors:

The technological factors in the PESTLE Analysis of ICICI Bank are mentioned below:

In the past it is very difficult to run the banks with heavy paper work. Due to introduction of date warehouse and online solutions in the bank, it makes the job very smoothly. Then the rise of internet makes the operations of ICICI Bank robust, fast & reliable. Banks provide their services to the consumers remotely. This is due to improve in technology in the AI, IOT, cloud-based technology. These new generation technologies make the consumers and the bank employees flexible to do their works smoothly. Due to improvement of new technologies, the bank should also design new offerings to the people.

The bank should also improve its operations and give the fruits which it gains from the new technologies to the consumers.

Following are the legal factors in the ICICI Bank PESTLE Analysis:

ICICI bank focuses on the laws created by the RBI. It also should ensure that its employees are abide to the rules and regulations of RBI. It also should ensure that it abide to the rules of the state and central governments to establish the banks and operate its operations. It also should follow the rules of the RBI to introduce any new services. The bank should also ensure to follow the rules of the host nations and ensure to practice safe banking policies.

Environmental Factors:

In the ICICI Bank PESTLE Analysis, the environmental elements affecting its business are as below:

The ICICI bank usually use lots of non-renewable energy sources for its operations which increases the carbon foot print. This is a crucial factor for the climate change. the climate change has huge impact on the operations of the bank.

The intensity of disasters due to climate change make the income of the people to decrease which impacts on the bank operations. So the bank should be more eco friendly and also should encourage the industries which shown interest to reduce their carbon foot print. It also should focus on its stake holders which increase the carbon foot print.

To conclude, the above ICICI Bank PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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