estimate the number of employee of any nationalized bank?

guess-estimates
New answer on Dec 03, 2019
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Rajesh asked on Dec 03, 2019

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Antonello
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replied on Dec 03, 2019
McKinsey | MBA professor for consulting interviews

Hi Rajesh,
I would divide the problem into 2:
- Branches: starting from the revenue estimate the number of clients and then of branches in the country. Assume 10 people for an average brach
- Headquarter: starting from the size of the bank estimate the dimension of each department (finance, HR, legal, marketing, ...)

Best,
Antonello

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Vlad
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replied on Dec 03, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

  • For the branches, you can use the benchmark of your own city: e.g. in my hometown with 500k people I have 1 branch per district. And I can make an assumption about the # of people living in a district (# of buildings and # of apartments).
  • Then you make an assumption about cities / rural population and apply less density in rural areas
  • Make assumptions about HQ - e.g. nationalized banks are usually inefficient and for every 5 employees in fields there is 1 in HQ

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Antonello

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McKinsey | MBA professor for consulting interviews
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