Standard Charterd

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A PROJECT REPORT ON

CAMPARATIVE ANALYSIS OF

STANDARD CHARATERED BANK WITH OTHER MNCS BANK

Submitted to:

MISS. SAKSHI ANAND

PROJECT GUIDE & FACULTY

(DELHI INSTITUTE OF RURAL DEVELOPMENT)

Submitted By:

ARTI TYAGI

ENROLLMENT NO: 03112401809SUBMITTED IN PARTIAL FULFILMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

(BANKING & INSURANCE III SEM.)

DELHI INSTITUTE OF RULAR DEVELOPMENT

(AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY,DELHI)


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ACKNOWLEDGEMENT

IT WOULD BE A GREAT PLEASURE FOR ME TO TAKE

THIS OPPORTUNITY IN THANKING EVERYBODY WHO

HAD BEEN OF GREAT HELP IN THE COMPLETION OF MYSUMMER PROJECT. MY SINCERE GRATITUDE GOES

TO MR.A.K CHOUDHARY (Director,DIRD) , WITHOUT

WHOSE HELP THIS PROJECT WOULD HAVE SEEMED

IMPOSSIBLE.

AT THE SAME TIME I AM GREATLY OBLIGED TO .

MISS. SAKSHI ANAND (project guide)FOR HIS VALUABLE

CONTRIBUTION TO MY PROJECT.

IT HAS BEEN A GREAT LEARING EXPERIENCE TO BE

ON THE JOB CUM TRAINING AND DOING THEPROJECT SIMULTANEOUSLY, WHICH ENRICHED MY

KNOWLEDGE AND DEVELOPED MY OUTLOOK FOR

BECOMING A BETTER PROFESSIONAL ANTICIPATING

WITH CONVICTION THAT I HAD BEEN OF SOME HELP

TO THEM. I WOULD ALSO LIKE TO TAKE THIS

OPPORTUNITY TO THANK ALL THE STAFF MEMBERS

AT Standard Chartered G.K BRANCH FOR COOPERATINGWITH ME THROUGHOUT THE TENURE OR MY WORK

THERE.

(ARTI TYAGI)

03112401809


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List of contents

Introduction

Industry profile

New Generation Banking

Business of Banking

Various types of deposits

Objective

Research Methodology

Chapter 1

STANDARD CHARTERED A leading multinational

Bank of the country

1.1 A brief history of standard chartered Bank :

The early years

Expansion in Africa and Asia

The impact of war

Standard chartered in 1990s

Standard chartered Today

1.2 SWOT Analysis :

Strengths

Weaknesses

Opportunities

Threats


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INTRODUCTION


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INTRODUCTION

Standard Chartered is the worlds leading emerging marketsbank. It employs 32000 people in over 500 offices in more

than 56 countries in the Asia Pacific region, South Asia, the

Middle East, Africa, United Kingdom and Americas.

The bank serves both consumer and wholesaler banking

customers. The consumer bank provides credit cards, personal

loans, mortgages, deposit taking activity and wealth

management services to individuals and medium sized

businesses. The wholesale bank provide service to the

multinational, regional and domestic corporate and

institutional clients in trade finance, cash management,custody, lending foreign exchange, interest rate management

and debt capital markets.

With nearly 150 in emerging markets the bank has unmatched

knowledge and understanding of its customers in its markets.

Standard Chartered recognizes its responsibilities lies to its

staff and to the communities in which it operates.


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INDUSTRY PROFILE

The Indian banking can be broadly categorized intonationalized (govt. owned), private banks and specialized

banking institutions. The reserve bank of India acts as a

centralized body monitoring any discrepancies and short

comings in the system. Since the nationalization of banks in

1969, the public sector banks or the nationalized banks haveacquired a place of prominence and has since then seen

tremendous progress. The need to become highly customer

focused has forced the slow moving public sector banks to

adopt a fast track approach. The unleashing of product and

services through the net has galvanized players at all levels of

banking and financial institutions market grid to look a new at

their existing portfolio offerings. Conservative bankingpractices allowed Indian banks to be insulated partially from

the Asians currency crisis. Indian banks are now quoting higher

valuations when compared to banks in other Asian countriesi.e. Hong Kong, Singapore, Philippines, etc. that have major

problems linked to huge non performing assets (NPA) and

payment defaults. Co-operative banks are nimble footed in

approach and armed with efficient branch network focusedprimarily on the high revenue niche retail segments. The

Indian banking has finally worked up to the competitive

dynamics of the new Indian market and is addressing the

relevant issue to take on the multifarious challenge of

globalization. Banks that employ IT solutions are perceived to

be futuristic and proactive players capable of meeting the

multifarious requirements of the large customer base. Private


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bank have been fast on the uptake and are reorienting their

strategies using the internet as their medium. The internet has

emerged as a new and challenging frontier of marketing with

the conventional physical world tenets being just as applicablelike in any other marketing medium.

The Indian banking has come from a long way from being a

sleepy business institution to a highly proactive and dynamic

entity. This transformation has been highly brought about by

the large dose of liberalization and economic reforms that

allowed banks to explore new business opportunity rather than

generating revenues from conventional streams. The bank in

Indian is highly fragmented with 30 banking units contributing

to almost 50% of deposit and 60% of advances. Indian

nationalized banks continue to be the major lenders in theeconomy due to their sheer size penetrative networks which

assures them high deposit mobilization. The Indian banking

can be broadly categorized into nationalized, private banks and

specialized banking institutions. The reserve bank of India acts

as a centralized body monitoring any discrepancies and

shortcoming in the system. It is the foremost monitoring body

in the Indian financial sector. The nationalized bank continuedto dominate the Indian banks arena. Industry estimate indicate

that out of 274 commercial banks operating in India, 233 banks

are in public sector and 51 are in the private sector. The privatesector bank grid also includes 24 foreign banks that have

started their operations here. Under the ambit of nationalized

banks come the specialized banking institutions. These co-

operative, rural banks focus on the areas of agriculture, ruraldevelopment, etc. unlike commercial banks these co-operative

banks do not lend on the basis of prime lending rates. They also


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have the various tax sops bcos of their holding pattern and

lending structure and hence have lower overheads. This enable

them to give a marginally higher % age on saving deposits.

Many of these co-operativebanks diversified into specialized are alike car finance, housing

loans, truck finance, etc. in order to keep pace with their public

sector and private counterparts, the co-operative banks too have

invested heavily in IT to offer high end computerize banking

services to its clients.


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NEW GENERATION BANKING

The liberalized policy of government of India permitted entrytoprivate sector in the banking; the industry has witnessed theentry of 9 new generation private banks. The major

differentiating parameter that distinguishes these banks from all

the other banks in the Indian banking is the level of services

that is offered to the customer. Verify the focus has always

been centered on the customer understanding his needs,preempting him and consequently delighting him with various

configurations of benefits and a wide portfolio of product andservices. These banks have generally been established by

promoters of repute or by high value domestic financial

institutions. The popularity of these banks can be gauged by the

fact that in a short span of time, these banks have gained

considerable customer confidence and consequently have

shown impressive growth rates. Today the private banks

corners almost 4% share of the total share of deposit. Most ofthe banks in this category are concentrated in the high growthurban areas in metros. With efficiency being the major focus,

these banks have leveraged on their strengths and competencies

viz. management, operational, efficiency and flexibility,

superior product positioning and higher employee productivity

skills. The private banks with their focused business and

service portfolio have a reputation of being niche players in the

industry.

A strategy that has allowed these banks to concenterate on few

reliable high net worth companies and individuals rather than

cater to the mass market. These well chalked out integratesstrategy plans have allowed most of these banks to deliver

superlative level of personalized services. With the reserve

bank of India allowing these banks to operate 70% of their

businesses in urban areas, this statutory requirement hastranslated into lower deposit mobilization cost and higher

margins relative to public sector banks.


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BUSINESS OF BANKING

Banking, in an additional sense is the business of acceptingdeposit of money from public for the purpose of lending and

investment. These deposits can have a distinct feature of being

withdraw able by cheque, which no other financial institution

can offer.

In additional to this banks offer various other financial

services also which include:

Issuing Demand Draft and Travelers Cheque

Collection of Cheque, Bills of Exchange

Safe Deposit Lockers

Issuing Letter of Credit & Letter of Guarantee

Sale and purchase of Foreign Exchange

Custodial services

Investment services


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The business of banking is highly regulated since banks deal

with money offered to them by the public and ensuring the

safety of this public money is the prime responsibility of any

bank. That is why banks are expected to be prudent in theirlending and investment activities. The major regulations and

acts that govern the banking business are:

Banking regulation Act

Reserve Bank of India Act

Foreign Exchange Regulation (amendment) Act, 1993

Indian Contract Act

Negotiable Instrument Act

Banks lend money either for productive purposes to

individuals, firms, corporate, etc. or for buying house

property, car and other consumer durable and for investment

purposes to individuals and others. However banks do not

finance any speculative activity. Lending is risk taking. The

risk should be covered by having prudent norms for lending.

The depositors of banks are also assured of safety of theirmoney by deploying some %age of deposits in statutory

reserve like SLR & CRR.

VARIOUS TYPES OF DEPOSITS


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BANK DEPOSIT

Banks basically offer two types of deposits:

Demand Deposit

Term Deposit

Demand Deposit- by its nature, are payable as and when the

depositor makes demand to pay. There are two types of

accounts which are demand deposit in nature. These are:

Saving Account

Current Account

Any amount can be deposited in these accounts at any time.The amount deposited or a part of it can be withdrawn any

time by using a cheque. However, banks normally stipulate a

minimum balance to be maintained in this account.

Saving Account - is offered only to individuals and non

trading entities. Banks also pay interest on saving account.

The interest is paid on the minimum balance held in the

account between the 10th and the last day of the month. Theinterest is paid on a quarterly basis. The rate of interest is

determined by RBI.

Current Account - can be opened in the name of individual

or any firm or a company. No interest is paid on the balances

held in this account.

Term Deposit are the deposit where a fixed sum of money

is kept for a specific period and the money is repaid only of


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the expiry of this period. The interest offered on these

deposits depends upon the period of the deposit. Banks accept

term deposits for periods ranging from 15 days to 10 years.

However, our bank accept deposit for a maximum period of5years. Banks are free to determine the interest rates on the

deposits. The interest is normally paid out every quarter. But

at the request of the customer, the interest is paid every month

but at a discount rate of interest.

Three most common forms of terms deposit are:

Fixed deposits

Reinvestment deposits

Recurring deposits

Fixed deposits are those where a fixed amount is deposited

by the customer for a certain period and interest on it is paid by

the bank every quarter. On the expiry of the term, the principal

amount is paid back to the customer or the deposit is renewed

at the request of the customer.

Reinvestment deposit are similar to the fix3d deposit withthe difference that the interest is payable every quarter iscompounded with the principle amount. In effect, the interest

on a reinvestment is paid along with the principle on maturity

only.

Recurring deposit is the deposit where a certain amount

says 1000 is deposited every month as a monthly installment

for a certain period ranging from 6 months to 5 years. The

total amount deposited over the period is paid with accrued

interest on maturity.


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SCBs Deposit Products

Standard chartered bank offers the following deposit productsin the addition to above conventional deposits.

Cluster Deposit this is fixed or Reinvestment Deposit. The

amount deposited, say Rs. 10,000 each. The deposit thus

offers a flexibility of partial withdrawal in multiples of

Rs.1000. the penalty is charged only on the amountwithdrawal.

Two in One Deposit this product has features of a fixed

reinvestment cluster deposit and a saving / current account.

The cluster deposit is linked to a savings account or current

account. Thus, the customer can withdraw partial amount

from his cluster by issuing a cheque or using ATM card. He

can also fund either of these accounts. However, a subsequent

term deposit can made with Rs. 10,000 or more. In case there

more than one deposits in this account, the last deposit is

uplifted in case of withdrawal. When ATM is used to

withdraw from this account, the customer can withdraw only

75% of his deposit or Rs. 25,000 /- whichever is lower. Two-

in- one account with savings account can be opened with aminimum amount of Rs.60,000 /- while that with a current

account can be opened with minimum Rs. 1,10,000 /-

Easy save / easy current account these saving and current

account offer special benefits to customers. At customers

request the bank sends representative to the residence or work

place of the customer to complete the account openingformalities. After opening the account, room service is


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provided for picking up the cheque to be deposited in the

customers account from any place.

Similarly, customer can request to deliver cash to self up to20,000 by debiting the account against a cheque to be handed

over at the time of receipt of the cash. In case the cash to be

delivered to the third person, maximum up to Rs. 10,000 /- is

delivered only at the residence after identification. Request to

deliver Demand Draft and pay orders issued by debiting the

account are also accepted.

While there no service charges for opening the account under

room service, other services provided is charged. The services

are provided only if the average balance maintained by thecustomer in savings account is Rs. 10,000 and in current

account is Rs. 25000. these services are available in two-in-

one account only if the link savings account has the average

balance of Rs. 5000 along with 50,000 in the deposit account.

In case of two-in-one with current account the balance

requirements are Rs. 100,000 in deposit account.

Business plus account - this is a current account which offers

following services to the customers. For this account the

monthly average balance should be Rs 50,000 or more.

Multicity Cheque books : These cheque are payable are

payable at par at Mumbai, Chennai, Calcutta and New Delhibranches.

This virtually facilitates the customer to conduct banking at any

of these cities.


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National Clearing Speed Service : Cheque deposited

for National Clearing (drawn ay any of the four metro cities)

by 4 p.m. are credited within four working days.

Free Draft and Pay Orders : Two drafts drawn in SCB

and two pay orders free of charge per day subject to a draftand 20 pay orders per quarter.

Other Free Services : Cheque book, Certificate ofBalance, FIRC and standing instructions for fixed payments.

Also if the balance is above Rs.1, 00,000, free stop payment

and Outward Clearing Cheque returns.

Quarterly consolidated statement : A consolidated

statement for all the deposits with bank.

Free demat account : No charges for opening a demat

account.

Special rates on advances : A discount on Professional

Loan and Finance against shares.


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OBJECTIVES

The main objective of this project report is to make ananalytical study of Standard Chartered Bank.

It includes the following:

SWOT Analysis

Services

Banks Savings Account

Comparison of the savings account with other leading

banks of

India.


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REASEARCH METHODOLOGY AND

LIMITATIONS

Data collection has been done from both sources primary as

well as secondary and also by questionnaire.

Primary data: by meeting various managers of the Standard

Chartered bank, Kotak Mahindra, ABN-AMRO bank, ICICI,

and HDFC.

Secondary data: from newspaper, magazines, Internet.

Questionnaire: questionnaire was filled by both account

holder of Standard Chartered bank as well as by non account

holder of Standard Chartered bank.

Limitations: in the meetings manager were not ready to give

the correct figure as regards turn-over of the company.


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Chapter 1

STANDARD CHARTERED

A leading Multi National

Bank of the country


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HISTORY OF STANDARD CHARTERED

Standard Chartered is the worlds leading emerging marketsbank headquartered in London. Its businesses however, have

always been overwhelmingly international. This is the

summary of main events in the history of standard chartered

and some of the organizations with which it merged.

The early years

Standard chartered is named after two banks which merged in

1969. They were originally known as the standard bank of

British South Africa and the chartered bank of India, Australiaand china. Of the two banks, the chartered bank is the olderhaving been founded in 1853 following the grant of a royal

charter from Queen Victoria. The moving force behind the

chartered was a Scott, James Wilson, who made his fortune in

London making hats. James Wilson went on to start the

economists, still one of the worlds pre-eminent publications.

Nine years later, 1962, the standard bank was founded by a

group of businessmen led by another Scott, John Paterson, who

had immigrated to the Cape Province in South Africa and had

become a successful merchant. Both banks were keen to

capitalize on the huge expansion of trade between Europe, Asiaand Africa and to reap the handsome profits to be made from

financing that trade. The chartered bank opened its first branch

in 1858 in Chennai and Mumbai. A branch opened in shanghai

that summer beginning standard chartereds unbroken presencein china. The following year the chartered bank opened a


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branchin Hong Kong and an agency was opened in Singapore,

a privilege to continue to exercise up until the end of the 19 th

century. Over the following decades both the standard bank andthe chartered bank printed bank notes in a variety of countries

including chin, south Africa, Zimbabwe, Malaysia and even

during the siege of marketing in south Africa. Today standard

chartered is still one of the three banks, which prints Hong-

Kongs bank notes.

EXPANSION IN AFRICA AND ASIA

The standard bank opened for business in Port Elizabeth,South Africa in 1863. It pursued a policy of expansion and

soon amalgamated with several other banks including thecommercial bank of Port Elizabeth, the Colesberg bank, theBritish kaffarian bank and the Fauresmith bank. The standard

bank was prominent in the financing and development of

diamond fields of Kimberly in 1867 and later extended its

network further north to the new town of Johannesburg when

gold was discovered there in 1885.

Over time half the output of the second largest gold field in the

world passed through the standard bank on its way to London.

In 1892 the standard bank opened for business in Zimbabwe

and expanded into Mozambique in 1894, Botswana in 1897,Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the

democratic republic in Congo in 1911 and Uganda in 1912. Of

these new businesses, Botswana, Zanzibar and the D.R.C.

proved the most difficult and the branches soon closed. Abranch in Botswana opened again in 1934 but lasted only for a


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year and it was not until 1950 that the bank reopened for

business in Botswana. In Asia the chartered bank expanded

opening offices including Myanmar in 1862, Pakistan andIndonesia in 1863, they Philippines in 1872, Malaysia in 1875,

Japan in 1880 and Thailand in 1894. Some 34 years after the

chartered bank appointed an agent in Sri Lanka it opened a

branch in 1892 to take advantage of businesses from the tea

and rubber industries. During 1904 a branch opened in

Vietnam. Both the chartered and the standard bank opened

offices in New York and Hamburger in the early 1900s. Thechartered bank gaining the first branch license to be issued to a

foreign bank in New York.


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STANDARD CHARTERED IN THE 1990s

Even within this period of apparent retrenchment the standardchartered expanded its network, re-opening in Vietnam in

1990, Cambodia and Iran in 1992, Tanzania in 1993 and

Myanmar in1995. With opening of branches in Macau and Taiwan in 1983

and 1985 plus a representative office in Laos, the Standard

chartered now has office in every country in the Asia pacific

region with the exception of North Korea. In 1998 standard

chartered concluded the purchase of a controlling interest in

Banco exterior de Los Andes an Andean region bank involved

in trade finance. With this purchase standard chartered nowoffers full banking services in Colombia, Peru and Venezuela.

In 1999, standard chartered acquire the global trade finance

businesses of union bank of Switzerland. This acquisitionmakes standard chartered one of the leading clearers of the

dollar payment in the U.S.A. standard chartered also opened a

new subsidiary, standard chartered Nigeria Ltd. in Lagos,

acquired 75% of equity of Nakornthon bank Thailand andagreed terms to acquire 89% of the share capital of

metropolitan bank of Lebanon.


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STANDARD CHARTERED TODAY

Today standard chartered is the worlds leading emergingmarkets bank employing 30,000 people in 500 offices in more

than 50 countries primarily in countries in Asia pacific region,

south Asia, Middle East, Africa and the Americas.

The new millennium has brought with it two of its largest

acquisition in the history of bank with the purchase of

Grindlays bank from the ANZ group and the acquisition of

chase consumer banking operations in Hong Kong in 2000.

These acquisitions demonstrate standard chartered firm

commitment to the emerging markets, where we have a strong

and established presence and where we see our future growth.


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SWOT ANALYSIS

STRENGTH

Market position is strong

Aggressive foreign bank

Shareholders return has grown more than 7 times

Maintain a position as a leading Asian cash management

provider

Brand SCBs modern and dynamic look appeals to the

growing middle income earners

On of the most profitable MNC in India

Improved product proposition

Better geographic balances

Multi-cultural organization that offers opportunities togood managers


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WEAKNESS

HDFC, ICICI, ABM-AMBRO, KOTAK and HSBC are

dominant players

Has disadvantage due to last entry

Fewer locations as compared to other MNC banks

Service delivery reception is weak

OPPORTUNITIES

Branch expansion for rapid growth

Increase focus on value creation in whole banking

Improve shareholders return

Build market share in consumer banking as consumer

banking continues to offer highest potential for growth

Broadening of the demographic base

Tie ups with master card networks

Integrated sales and service approach

Can offer a complete corporate package into under

proposed corporate relationship


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THREATS

IDBI is pitching in quite aggressively

Citibank is expanding in new markets

Competitive products and offers from ICICI and HDFC

Proposed networking of all branches in next 6 months

Reduced business in OECD business


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ANALYSIS


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QUESTIONNAIRE

NAME:____________________________ CONTACT NO.:_______________________

Q1. OCCUPATION:

SERVICE BUSINESS STUDENT OTHERS

Q2. APPROX. MONTHLY INCOME?

BELOW 10,000 10,000-20,000 ABOVE 20,000

Q3. WHICH TYPES OF ACCOUNT DO YOU HAVE?

SAVING CURRENT ZERO-BALANCE

RECURRING DEPOSIT

Q4. DO YOU HAVE SAVING ACCOUNT IN ANY FOLLOWING BANKS?

STANDARD CHARTERED ICICI HDFC

ABN-AMRO KOTAK MAHINDRA OTHERS

Q5. REASONS, IF ANY, FOR PREFERENCE FOR OPERATING THE ACCOUNT IN

THE ABOVE BANKS?

AQR ATM FACILITY SERVICES SATISFACTION

365 DAYS BANKING ANY OTHER

Q6. WOULD YOU LIKE TO OPEN A NEW ACCOUNT IN SOME OTHER BANK

OR CHANGE FROM CURRENT BANK?

YES NO

Q7. IF YES, INDICATE YOUR PREFERENCE TO OPEN A NEW ACCOUNT.

STANDARD CHARTERED ICICI HDFC

ABN-AMRO KOTAK MAHINDRA OTHERS


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SAMPLE SIZE

TOTAL NUMBER OF QUETIONNAIRE FILLED.

= 50.

AREA IN WHICH SURVEY WAS CONDUCTED.

= SOUTH DELHI

= EAST DELHI

= NCR.(NOIDA,GHAZIABAD)

NUMBER OF QUETIONNAIRE FILLED IN SOUTH

DELHI, EAST DELHI & NCR.

= SOUTH DELHI 10

= EAST DELHI 18

= NCR - 22.


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Q1.OCCUPATION.

0

2

4

6

8

10

12

14

16

SERVICE BUSINESS STUDENT OTHERS

SOUTH DELHI

NCR

EAST DELHI


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Q2.WHICH TYPES OF ACCOUNT DO YOU HAVE ?

0

5

10

15

20

25

SAVING CURRENT ZERO- BALANCE RECURRING

DEPOSIT

SOUTH DELHI

NCR

EAST DELHI


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Q3.APPROX. MONTHLY INCOME ?

0

2

4

6

8

10

12

14

16

18

BELOW 10,000 10,000-20,000 ABOVE 20,000

SOUTH DELHI

NCR

EAST DELHI


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Q4.DO YOU HAVE SAVING ACCOUNT IN ANY FOLLOWINGBANKS ?

0

2

4

6

8

10

12

14

16

18

20

STANDARD

CHARTERED

ICICI HDFC ABN-AMRO KOTAK

MAHINDRA

OTHERS

SOUTH DELHI

NCR

EAST DELHI


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Q5. REASONS, IF ANY FOR PREFERENCE FOR OPERATINGTHE ACCOUNT IN THE ABOVE BANKS ?

0

2

4

6

8

10

12

14

16

18

20

AQB ATM FACILITY SERVICE

SATISFACTION

365 DAYS

BANKING

ANY OTHER

SOUTH DELHI

NCR

EAST DELHI


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Q6. WOULD YOU LIKE TO OPEN A NEW ACCOUNT IN SOME

OTHER BANK OR CHANGE FROM CURRENT BANK?

0

2

4

6

8

10

12

14

16

18

SOUTH

DELHI

NCR EAST DELHI

YES

NO


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Q7.IF YES, INDICATE YOUR PREFERENCE TO OPEN A NEWACCOUNT.

0

1

2

3

4

5

6

7

STANDARD

CHARTERED

ICICI HDFC ABN AMRO KOTAK

MAHINDRA

OTHERS

Series1


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Chapter 2SERVICES


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Services provided by

standard chartered

Through the network of over 500 offices in more than 50

countries, standard chartered offers personal financial solutionrelevant to you as an individual, standard chartered treasure

building a relationship with the customer, developing an

understanding of customers changing financial needs at

different stages of your life. Their long heritage of nearly 150years has enabled them to change with time, offering quality

products by means that are convenient to customer.

Standard chartered offer includes:

Personal finance.

Credit cards.

Priority banking. Investment advisory services.

Personal investments.

Insurance.

Deposits and Retail services

Retail FX products.


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1. PERSONAL FINANCE.

Mortgages

In many of the markets where standard chartered operate,especially in key markets of Hong Kong, Singapore, Malaysia,

they are reported to be the market leader for mortgages. Their

experienced and dedicated teams will guide the individual in

every single step to enable him a smooth and hassie-freeexperience, offering him rates and repayment packages most

suitable, start by trying our instant approval service.

Unique features:

Low interest rates, option of flat or reducing interestrates.

Low EMI (equated monthly installments).

No hidden costs like processing charge. Everything is

done up front.

Quick approval and realization.

Tax benefits.

No unfair collateral demands.

A simple mortgage process.


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Personal loans

Standard Chartered bank helps the customer to de in control of his/her

own finances. Personal loans, without any guarantees or collaterals, areavailable to customer to meet specific credit needs. Choose installment

loan or Revolving loan, whatever suits best. Whether planning a

vacation, re-decorating home, paying for childs college education, or

simply wish to have a standby line of credit for unforeseen expenses,

Standard Chartered Banks personal loans can help fulfill the dreams.

Personal loan is specially designed to get the money need in

time, without having to answer unnecessary questions, andwithout any collateral or mortgages.

Unique features:

Choose the repayment plan most convenient, ranging

from a compact 12-months period to a comfortable 36-month span.

Free to use the money for renovating house or meeting

some unexpected expenses etc.

No collateral or security.

Quick and easy processing.

2. CREDIT CARDS

Standard Chartered visa and MasterCard credit cardsStandard Chartered credit cards provide financial flexibility,

worldwide acceptance, and round- the- clock convenience.


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Benefits:

Welcomed at the largest number of merchant outletsacross the world.

Revolving credit facility, allowing repaying card

outstanding over time, at a convenience.

Cash withdrawal in local currency at Visa and

MasterCard linked ATMs across the world.

Platinum, Gold or Classic cards to suit lifestyle and

needs.

Smart credit cards with special privileges andsecurity.

Attractive rewards programs

Affinity and co branded credit cards that give

additional benefits from our partners.

World-class service assistance and 24-hour customerhelp line.

3. PRIORITY BANKING

Experience new Standards in banking. And lead a life ofprivilege and preferred financial solutions tailored perfectly for

you with priority banking from Standard Chartered.


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Designed specially for those who appreciate only finest things

in life, priority banking offers the very highest levels of

personalized banking to match unique status.

By embracing a holistic approach to financial well being and

commitment to personal Wealth Management with a full range

of innovative products and services, a customer will find

banking with a reassuring and secure experience.

Bank is committed to helping a plan, build and protect wealthby offering individual attention as well as international and

investment opportunities to meet current and future needs.

Standard Chartered bank priority banking is createdspecifically for a chosen few individuals, who will settle for

nothing but the best and demand the highest Standards of

services in all your banking relationships.

Unique features:

Personalized priority card will give instant

recognition of priority status at all branches of

Standard Chartered bank, worldwide.

A dedicated customer relationship Manager trained to

understand specific financial needs and help to

manage assets at home and abroad. It is as

personalized as can bE

Preferential pricing on our various products.

Entitled to exclusive benefits.


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A complimentary pre-approved Gold Standard credit

card.

Special foreign exchange rates.

Special invitations to exclusive events.

Many account facilities, which are absolutely free of charge.

4. INVESTMENT ADVISORY SERVICES

The Standard Chartered investment advisory services is

comprehensive process that assists in planning for future. With

this service, they can help to review financial goals, conduct a

financial health check, evaluate risk profile and asset allocationplan to realize financial aspirations.

5. PERSONAL INVESTMENTS

Standard Chartered is the leading independent distributor of

unit trusts and mutual funds in Asia. Because they dontactually manage their own investment funds, they are

absolutely objective in fund evaluation process. Bringingunmatched around the world, it can be assured of different

investment options and a wealth of informative and relevant

updates.

With trained investment services consultants from countriesaround the globe, they can help to make the right investment

decisions. Using a unique risk evaluation to gauge the level OF


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risk customer can be comfortable with, coupled with a

proprietary fund evaluation process to identify funds, assess

risks and shortlist top-performing funds; customer can be

ensured of a personalized investment portfolio catered to needs.

Standard Chartered Bank investment services puts a whole new

whole new world of possibilities within the reach of people

who would like to achieve their financial goals but have many

other demands on their time.

Unique features:

A one-stop offering a wide range of investment

options to grow your wealth.

Available across 8 cities.

Trained investment services counselors.

Sophisticated research franchise.

Impartial and unbiased analysis on options best

suited.

Tailor made investment plans suited to risk taking

ability.


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6. INSURANCE

Standard Chartered recognizes the things important to customer

and his family. They are dedicated to protecting the customer,

his family, and his hard earned assets and even his future

earning giving him the assurance he needs.

Their strategic alliance with prudential and CGU insurance putsus in a very strong position to provide for life and General

Insurance needs. With a comprehensive range of products,

Standard Chartered is set to protect the world.

7. DEPOSITS AND RETAIL SERVICES

Deposits

Standard Chartered offers a wide array of deposit products in

both local and foreign currencies to help to earn competitiveinterest rates. Their international network offers an extra

convenience while abroad. In some countries, they offer

premium interest savings plans like Higher Education Funds to

turn the dreams into reality.


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Retail services

Standard Chartered offers a comprehensive range of retail

services in many countries. These includes:

Automated banking services.

Demand drafts.

Foreign exchange services.

Local and foreign currency cheques.

Safe deposit boxes.

Telegraphic transfers.

Travelers cheques.

8. RETAIL FX PRODUCTS

Standard Chartered is now offering valuable customers an easy

and flexible way to invest in foreign currencies. They provide

high flexibility to enable sophisticated investors to capitalize onopportunities in the currency markets.


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Some of the Retail FX products include:

FX Margin Trading.

Currency Trading.

Premium Currency Deposit.

Principle Protected Currency Deposit.

ADDITIONAL SERVICES

1. INTERNET BANKING

Youre banking needs now taken care of at the click of a

mouse. With secure Internet ID and Password, a customer can

login and take care of his/her banking and credit card needs at

his/her convenience and time. No more queues, no more

waiting.

2. PHONE BANKING

As part of commitment to meeting all needs, Standard

Chartered offer Phone Banking A service that enables you to

access a wealth of financial information, 24 hours a day, 7 days

a week.


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Through Phone Banking:

Check your account balance.

Get details about specific transactions.

Inquire about the status of a particular cheque.

Order demand drafts.

Transfer funds amongst your linked accounts.

Get information on deposit rates, lending rates, exchange

rates and bank charges.

Access information an any of our products and services.

Call room services to open your account.

Make complaints and suggestions.

3. MOBILE AND E-MAIL ALERTS

Standard Chartered always try and make life simple. Mobileand E-mail Alerts service is designed just for that.


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4. SMART FILL DEBIT CARD

Smart fill Debit card, launched in association with Bharat

Petroleum, will help to save on fuel purchases and even gets

you free fuel.

Unique features:

Earn reward points every time you use the card to make

purchases anywhere, which you can then redeem for fuel at

select Bharat Petroleum outlets.

When the card is use to make purchases at select Bharat

Petroleum outlets, the customer dont have to pay the 2.5%

surcharge levied on most credit or debit cards.

Smart fill debit card is globally valid. It gives access to 12

millions merchant establishments worldwide and over

55,000 in India.

A customer can access over 3500 ATMs in India for FREE*

and over 750,000 ATMs worldwide through the Visa ATMnetwork.

The card gets an exclusive discount of 5% at select In & Out

stores at Bharat Petroleum outlets, besides benefits at leading

retail outlets and restaurant.


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5.ATM

Standard Chartered ATMs give the freedom to conduct most of

the banking transactions 24 hours a day, 365 days a year.

The ATM card is and absolutely free. There are no transaction

charges on the use of the card.

Whats more, use ATM card at any of the 70 ATM centersacross the country.

6. CREDIT CARD HELP-LINE

As part of commitment to meeting all needs, StandardChartered offer the facility of calling them over the phone to

access a wealth of information on credit cards, 24 hours a day,

7 days a week.

7. ELECTRONIC CLEARING SYSTEM

Standard Chartered introduces ECS (Electronic Clearing

system), an innovation facility for busy people. With this

facility, card bill amount automatically gets debited from your

saving bank account.

So that customer doesnt have to worry about last minutepayment rush, since this entire process happens through the


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Reserve Bank of India electronic clearing mechanism,

customer can enjoy the advantages of ECS.

8. FAX BANKING

Its the most efficient way to stay on top of the business

finance. Every day, Standard Chartered fax a report of all

transaction made the previous day, customer will still receive

his/her regular monthly statements.


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Chapter 3

ACCOUNTS


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MAINTAINING ACCOUNTS WITH STANDARD

CHARTERED

DEPOSITS

DEMAND DEPOSITS TIME DEPOSITS

SAVINGS A/C CURRENT A/C FIXED DEPOSITS

AXCESS PLUS A/C SUPER VALUE A/C PARIVAAR A/C SARALA/C

DEMAND DEPOSITS


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SAVINGS ACCOUNT

Standard chartered introduces aXcess plus a revolutionary

savings account that provides with unparallel access to money.

An account primarily opened for and operated by individuals,

wherein the numbers of transactions are few and which give the

customer liquidity with the facility to earn some interest on the

residual balance.

With the aXcess plus account the customer can now aXcess

cash at over 1800 ATMs in India to free and at over 6,50,000

ATM worldwide through the visa network. Besides he can use

his account to shop for goods and services at over 25,000

outlets in India and at 10 million outlets worldwide, without

ever handling to carry cash.

The aXcess Plus account provides with a globally valid debitcard that provides these and a host of other exciting benefits.


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Unique features

There are several unique features about the standard chartered

banks aXcess Plus account, each designed to provide the mostconvenient banking experience can ever get!

Free aXcess to cash at over 1800 ATMs in 35 cities in

India

Globally valid debit card

The debit can be used to make purchase at over 25,000

merchant outlets in India and at over 10 million outlets

worldwide.

Phone banking, internet banking, Multicity banking and

365 days branches, extended banking hours, lockers

facility and doorstep banking.

Unique free insurance benefits lost card insurance,

purchase protection and personal accident cover.

Exciting usage benefits such as travel cash back discount

on air fair, rasoi ongoing privileges in restaurants,

fabdeals special privileges for shopping at selectmerchant outlets etc.

2 in -1 Account


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A unique account that offers you double advantage letting you

earn the high interest rate of a fixed deposit while you enjoy the

flexibility of a savings and current account.

Unique features:

Earn fixed deposit interest rates

Enjoy the flexibility of a saving or a current account

Free personalized cheque book and ATM card

Flexibility of withdrawing money wherever you need it

Deposit more money in your account to earn higher rate

of interest by simply filling a subsequent deposit slip

Phone banking for current account related information at

your fingertips.

2-in-1 Account interest rates


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TENOR RATE OF INTEREST (% P.A.)

15 days 29 days 3.75%

30 days less than 46 days 4.00%

46 days less than 2 months 4.00%

2 months less than 3 months 4.00%









60 months 4.50%

Above interest rates are offered by standard chartered bank and

are subject to change without prior notice. Deposits of Rs. 15lakh and above may be opened for tenors starting 7 days.


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Procedure:

On opening a 2-in-1 account two accounts are opened an FD

and a transaction account .The FD earns the high interest ratesand the transaction account is used as a normal savings or

current account.

In case you need to withdraw amounts in excess of what is

available in your transaction account we will break your

deposit for the exact amount you require. The rest of the

deposit continues earning the original high interest on the

amount withdrawn you will lose only 1% of the interest rateyou are eligible for.

PARIVAAR ACCOUNT

A unique wealth management solution that offers the entire

family flexibility and tools for wealth accumulation and

preservation.

Unique features:


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A family can maintain individuals savings account

with the benefit of clubbing balances in the grouped

accounts

Attractively priced health insurance options to protect

against unforeseen events

Free accident hospitalization cover of Rs. 50,000 for

the primary account holder

Free access to accounts through 5500 ATMs in the country atall branches of the bank and through phone banking and

internet banking

Option of systematic Investment Plan (SIP) the best known

long term wealth building tools that allows customers to

invest a fixed amount of money every month in specific

mutual fund. This comes with a direct debit facility and

avoids the need to remember dates and write cheque everymonth

Globally valid ATM-cum-debit card can be used at 55000

merchant outlets in India and 12 million outlets worldwide

Up to 4 free cash withdrawals per account every month at

other banks ATMs in India through the visa ATM network.

Unlimited free transaction at all SCBs ATM.

CURRENT ACCOUNT


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An account opened and operated primarily by corporate for

commercial use wherein the numbers of transactions are much

higher than a normal savings account.

Unique features:

High liquidity

Unlimited transaction

Zero interest

Any branch banking

TERM DEPOSITS

A term deposit is a deposit held for a contracted period of time

and a contracted rate of interest. The rate of interest for term

deposits is higher than the applicable for a normal savings

account and penal rates of interest is applicable if the deposit is

withdrawn before the contracted period.

Term deposit rates:


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TENOR RATE OF INTEREST (% P.A.)

15 days 29 days 3.75%

30 days less than 46 days 4.00%

46 days less than 2 months 4.00%










60 months 4.50%


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CONCLUSIONS


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CONCLUSION

With years of banking experience, Standard Chartered is

undoubtedly in a strong position to help growing business sail

through the complexities they may face.

Standard Chartered Bank offers one of the widest range ofbanking products and services in the market today. Managing agrowing business demands most of your time and energy. That

is why working with the right bank can help ones business sail

more smoothly and Standard Chartered Bank helps in doing

that as it understands todays business requirements.

The bank provides the right kind of services and accounts at theright time and according to the need of market.

The expertise of Standard Chartered with over 150 years

experience, global network of 500 offices in 56 countriesmaking it one of the leading providers of treasury financial

services.

As the largest independent distributor of third party funds,

Standard Chartered gives investors choice, unbiased evaluation

of funds and a portfolio management account that matches your

risk profile and investment goals.


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Not only this, the bank provides the widest range of foreign

currencies for your investment needs plus other products such

as housing loan, insurance and unit trusts.

Standard Chartered Bank well developed remote channels for

your banking convenience through our 24-hour phone banking

and internet banking.

Foreign banks in India are subject to the same regulations as

scheduled banks. Currently about 25 foreign banks are licensedto operate in India. Foreign bank branches in India finance

trade through their global networks.

All commercial banks including Standard Chartered face stiff

restriction on the use of both their assets and liabilities. Forty

percent of loan must be directed to priority sectors and the

high liquidity ratio and cash reserve requirements severely limit

the availability of deposits for lending. Since July 1993, foreign

banks like Standard Chartered have been require to make 32

percent of their loans to the priority sector. Within the target of

32 percent, two sub targets for loans to the small scale sectors

(minimum of 10 percent) and exports (minimum of 12 percent)

have been fixed.

Foreign banks, however, are not require to open branches inrural areas, or to make loans to the agricultural sector.


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RECOMMENDATIONS


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RECOMMENDATIONS

1. STRONG NEEDS OF BRAND BUILDING

The bank needs to make a lot of marketing efforts. The level of

recognition that may be desired by any brand has not been

achieved by Standard Chartered Bank. A lot of noise is madewhenever a child is born and as long as that noise is not made

the doctors are not sure about life of that child. Same is the case

in marketing. Whenever a new branch comes into existence it

is necessary that they announce there birth. Here comes the

pre-launch exercises, and in similar in the case after the birth,

the name has to be taken again. Boast about yourself , about the

strong points that you have over and above your competitors.Pull the customers towards you. As said earlier it is a

relationship of trust and this trust can be generated through the

better and better performance of the bank. Now as working

with the bank for some time the fact have come out that they

believe in low costing and want to keep low profile. So better

way of marketing can be sought which are low of cost. These

are discussed further.


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Promotional strategies

Press publicity:

Paper inserts

Advertisements in newspaper (local and national)

Interest cards distribution

Mailers/personal invitations to selective section of

society

Leaflets

Outdoor publicity

Banners in commercial areas and prime sites

Air balloons at shopping complexes

Bus stand shelters

Off site ATM for developing business

Advertisements on dividers and railings

Media

Local channel advertisements (cable TV scrolls)

Advertisements in news and business channels


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Face to face

Through personal interaction of marketingexecutives.

Meeting

Detailing about schemes and updating them from

time to time

Events sponsoring in local clubs and social gathering

Road shows

Contacting senior citizens in parks in morning and

evening

Contacting office goers in the morning and evening

at stop lights by distribution of interest cards

Advertisements strategies segmented according to the

target customer

Senior citizens, housewives , students, service class

Personal mailers

Contacting at parks during morning and evening walk

Contacting at stop lights

Road shows at market side Cable TV advertisements during prime time

Stick on the newspaper

Leaflet on the wiper of the vehicles in the parking slots


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Educational bodies

Sponsoring events in schools and colleges

Meeting the top management for opening salary account

and fee payment system of the students

Local clubs like young clubs, laughter club, senior

citizen club, ladies club, etc

Event sponsoring Temporary banners

Advertisements in club magazines

Opening of extension counters (in case of large clubs)

Commercial places and market establishment

Cold calling

Personal visits of the executives


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2. NEED A CHANGE IN MARKETING FOCUS

The marketing team of the branch has until now focused on

selling of their most competitive product, which are there

fixed deposits. The rates of interest, which they provide onfixed deposits, are really competitive and highest in the

market. But this strategy could not be held for a longer

period of time as in the long run it would become liability to

the bank to pay such high rate of interest and it would lowerthe revenues of the branch. Even the survey conducted

proved that the fastest selling product is savings account

amongst the consumer. With a network that is good enough

this bank can make efforts to increase the market share in the

area where the competition is so tough. This needs a brain

storming from the top management in the branch as to how

about fixing the targets in each category of accounts.

Solid network required to develop the business

further

If we see the results of the survey, it is evident that people

prefer strong network system to make their banking life ascomfortable and reachable as possible. For Standard Chartered

bank to enjoy a good customer base, they should make efforts

towards developing more and more ATM in the cities and

extension counters to facilitate better and fast service. Updating

of technology from time to time is very necessary. Standard

Chartered bank was the very first bank to start few of the very

good services like internet banking, bringing about newservices to attract more and more consumers should carry on

this tradition further.


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Corrective positioning of Standard Chartered bank

Standard Chartered bank is known for its corporate operations.

Very big names in the corporate world have their account with

the bank. For the past so many years it has been catering to

these clients only and has generated an image of being a

corporate bank. The product extension into the retail segmentneed separate focus and separate positioning in the market. The

bank cannot carry on its old image for both segment of market.

For this a distinctive advertising campaign has to be developed

(refer to the promotional activities stated earlier) to reposition

the brand in potential consumers mind. It should be noted that

both the type of clients differ from each other in their true

nature. One is a very low profile relationship, which talks

about masses. This type of client requires assurance, trust,

information and support. This is retail banking. While on theother hand the second type of relationship is stronger, which is

the corporate client that requires different setup all together.


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MAKE THE BRANCH SELF-INFORMATIVE

The branch should be decorated in the manner, which would

provide maximum information to the customer without any

difficulty. All the schemes and product, all the service charges,days and time of transaction should be printed in a beautifulmanner and hanged on the walls of

the branch where customer can see with ease. This was one of

the things, which was found to be absent in this branch. By

doing so customers would feel more attached and it will be

converted in higher number of accounts.

SERVICE LIKE PHONE BANKING AND ATM SHOULD

BE ENCOURAGED.


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BIBLIOGRAPHY


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BIBLIOGRAPHY

www.banknetindia.com

www.rbi.org.in

www.economictimes.indiatimes.com

www.indianfoline.com

www.finance.indiamart.com/investment_in_india/banks

www.standard.chartered.broacher.and.mannuals

www.finance.indiamart.com/investment_in_india/banks.html

www.indianfoline.com/nevi/bank.html

www.finanace.indiamart.com/investment_in_india/standard_chartered_bank.html

www.abn_amrobank.com

www.hdfc.com

www.icicibank.comwww.standardchartered.com

www.standardchartered.com/in

http://economic.indiatimes.com/banking/bn11299.html
http://www.banknetindia.com/http://www.rbi.org.in/http://www.indianfoline.com/http://www.finance.indiamart.com/investment_in_india/bankshttp://www.standard.chartered.broacher.and.mannuals/http://www.finance.indiamart.com/investment_in_india/banks.htmlhttp://www.finance.indiamart.com/investment_in_india/banks.htmlhttp://www.indianfoline.com/nevi/bank.htmlhttp://www.hdfc.com/http://www.icicibank.com/http://www.standardchartered.com/http://www.standardchartered.com/inhttp://www.banknetindia.com/http://www.rbi.org.in/http://www.indianfoline.com/http://www.finance.indiamart.com/investment_in_india/bankshttp://www.standard.chartered.broacher.and.mannuals/http://www.finance.indiamart.com/investment_in_india/banks.htmlhttp://www.finance.indiamart.com/investment_in_india/banks.htmlhttp://www.indianfoline.com/nevi/bank.htmlhttp://www.hdfc.com/http://www.icicibank.com/http://www.standardchartered.com/http://www.standardchartered.com/in


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END OF PROJECT


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Documents

Standard Charterd