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Introduction

Founded Charlotte, North Carolina (1874) CEO : Brian.T Moynihan

Financial services company

Largest bank holding company in US Serves clients in more than 150 countries

3rd best company in the world(Forbes)

As of 2010, Bank of America is the 5th largest

company in the United States by total revenue,

Bank of America generates 90% of its revenues in

its domestic market

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Financial summary year ending

December, 2009

Sales: $150,450.0M

Income growth: 56.6%

Revenue: $150.45bn

Paid up capital : $231,444 mn

Bank of America is the second largest in market

Capitalization $128.23 bn

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Industry and product offering

Banking Financial services

Investment services

Products

Finance and insurance

Retail ,commercial and private banking

Investment banking

Private equity , mortgages , and credit cards

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Global operations

Bank of America has many branches in Asia,

Europe, Middle east, Latin America and

Caribbean.

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Huge customer base

Diversified range ofbanking and non banking

financial services

Innovation in products

and services

Convenience

Brand recognition

Strong internet banking

Weak wholesale banking

operations Not as nimble as small

regional operators

The company has lost the

ability to compete head to

head in an environment

where it lacks a size

advantage

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Expansion in

international markets

Further consolidation inthe banking industry

Merill lynch acquisition

Countrywide home loans

acquisition

Financial economic

turmoil .

Due to globalizationmore and more banks are

entering the US markets

Increase in restrictions in

capital market andgovernment regulations

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Objectives of venturing in to India

To setup the back office operations.

To set up the software development projects.

To tap the huge potential in terms of humanintellect In India.

To increase its operations to loan process,

account managing etc.

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Comment on mode of entry

Risks:

It is a burdensome process.

Very huge process as it involves casing all thesaid routes to enter.

Involves huge costs in setting up the

infrastructure. Consumes lot of time in framing the policies in

accordance with rules and regulations.

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Benefits:

It paves an avenue for setting the business in

the environment.

Awareness about the FDI policies helps in

future for further growth.

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PEST factors

Political factors

Environmental factors

Social factors

Technological factors

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1. Charlotte-based Bank of America Corp., the nation's largest financial

institution as measured by

Deposits $991,611mn

Controls nearly $2,223,299 mn in assets

Operates nearly 5,800 banking centers

More than 17,000 ATMs in 30 states and the District of Columbia.

Operates in 44 countries worldwide.

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3. Bank of America also invested over $600 million into its corporate and

investment banking operations, located in Charlotte and New York City.

Two of its most notable accomplishments were :

The 1975 invention of the first bank credit card.

The acquisition of Security Pacific Corporation, which turned the bank

into the largest in the nation.

2. Bank of America has invested heavily into corporate and investment banking.

4. Internationally, Bank of America has strengthened its partnership ties with

three IT companies located in India (Infosys, Tata Consultancy Services (TCS), and

Accenture).

5. Bank of America also has wholly owned subsidiary in Hyderabad, India, The

Continuum Solutions Pvt. Ltd., which performs some low-value added, relatively

expensive back office operations, such as transaction and high-end complex

processing.

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