This case study narrates the situation of a large bank, christened Republic Bank of India (REBI) that has undergone a radical transformation. The objective of this case study is to identify triggers leading to large scale transformation efforts and examine the response of a stable and slow moving organization to such triggers. The case study is descriptive in nature and focusses on the content, process and challenges in a large scale change intervention program.
REBI, a ninety year old public sector bank, was facing competitive pressures from New Private Banks (NPBs) and also lagged on the technology adoption front. The bank was known for efficiency in branch operations, however, had inherited an inward looking culture with little focus on marketing and sales. As the external environment changed, private banks started expanding aggressively into the semi-urban and rural markets that were considered the stronghold of public sector banks like REBI. As a response, REBI undertook a cultural transformation exercise called Project Restructuring (PR), aimed at making the bank market-focused, salesoriented and customer-centric.
The case study provides a brief overview of the Indian banking industry and conditions that prompted Project Restructuring at REBI. This is followed by a detail description of Project Restructuring beginning with the ideation, visioning exercise and communication channels used to overcome resistance among employees. The case study then describes the four pillars of change viz., growth in retail assets, growth in SME, enhancing branch service and centralization of key processes. The change process is explicated in terms of specific activities undertaken at the branch level as well as the rebranding exercise at the corporate level. Finally, challenges faced by REBI are discussed.
|Journal||Indore Management Journal|