ROLE OF CORPORATE

ENTREPRENEURSHIP IN INDIAN
BANKING INDUSTRY

Shama E Milton
Reserch Scholar
Bahadur Institute of Management Sciences
Mysore
INTRODUCTION
 Corporate entrepreneurship or intrapreneurship
refers to entrepreneurial activities within
existing business organizations (Schollhammer,
1982).

 Likewise, Zahra (1995) views Corporate

Entrepreneurship as the sum of a company’s
innovation, renewal, and venturing activities.
 A country’s financial stability depends on banks
which are backbone of economic activities in a
country.

 In order to survive and prosper in the banking

industry, the banks need to become more
entrepreneurial (Lumpkin and Dess 1996;
Thornberry 2001).
OBJECTIVES OF THE STUDY

 To understand the impact of corporate

entrepreneurship factors leading to performance
of banks.

 To study the current practices by banks to

increase their performance.

 To conceptualize a model for improved bank

performance.
RECENT APPROACHES
E-Wallets

 49 non-bank mobile wallet companies

 Banks like HDFC has collaborated with PayZapp, a

complete payment solutions; Yes Bank have partnered with
FreeCharge and PhonePe.

 estimated to grow over five times to $1 trillion by 2023,

according to a Credit Suisse report.

 On Oct. 16, the Reserve Bank of India (RBI) has issued a

new set of guidelines to facilitate money transfer between
different digital wallets.
 VOLUME OF E WALLET TRANSACTIONS IN
INDIA 2016-2022 (IN BILLION)
INNOVATION LABS
 To get ahead of Fintech race, Banks have to
setup or partner with Innvovation labs.

 Axis Bank has partnered with Zone start-ups to

launch Thought Factory – an innovation lab with
an in-house incubator.

 Kotak Mahindra Bank has joined the Bandwagon

with its innovation lab in Bengaluru that houses
national and international start-ups.
 Accelerating Entrepreneurship
Bank are actively involved in the mentoring of start-
ups, in exchange for equity and the promise of access
to funding.

 The Rural Push

Realizing the need of penetrating into the corners of
the country and turning them into cashless cities,
banks are working towards programmes in alliance
with the Pradhan Mantri Jan Dhan Yojana
STATISTICAL DATA

Note: E – Estimate
Source: Digital Lending Report 2018 - BCG
PROPOSED MODEL

To analyze the relationship between Innovation,

Corporate Collaboration, Proactiveness and
Strategic Renewal with Bank Performance, Covin
& Slevin (1991) in their study have made known
that clearly defined independent Variables have
direct impact on the performance of bank which
is the ultimate dependent variable.
 INNOVATION

BANK
STRATEGIC PERFORMANC PROACTIVENESS
RENEWAL E
(Dependent Variable)

CORPORATE
COLLABORATION
CONCLUSION
This paper attempts to study the relationship
between the corporate entrepreneurship factors
and the performance of Indian Banking Industry.
As discussed in the literature review, all
dimensions of Corporate Entrepreneurship
separately have positive effects and is
significantly associated with its performance.
Therefore, banks have to take innovative leads
and implement them to prosper and perform
better. The management may learn that the
ability to exert proactiveness, innovativeness and
risk-taking behavior would determine their
organizations growth and sustainability.