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Comparative Analysis of Financial Products and Services at Standard Chartered Bank
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Comparative Analysis of Financial Products and Services at Standard Chartered Bank Comparative Analysis of Financial Products and Services at Standard Chartered Bank Document Transcript

  • http://www.studygalaxy.com/DECLARATIONI , Sweta Arora studying in Third semester of Masters Of Business Administration in theAcademic Year 2007-2009 at Amity Business School, Amity University, Noida, UttarPradesh hereby declare that I have completed the project titled “COMPARITIVEANALYSIS OF FINANCIAL PRODUCTS AND SERVICES OF STANDARDCHARTERED BANK WITH OTHER MULTINATIONAL BANKS AND PRIVATESECTOR BANKS” as a part of the course requirement of Masters Of BusinessAdministration of Amity University.I further declare that the information presented in this project is true and original to thebest of my knowledge.2
  • CERTIFICATEThis is to certify that Sweta Arora studying in Third Semester of Masters Of BusinessAdministration in the Academic Year 2007-2009 at Amity Business School, AmityUniversity, Noida, Uttar Pradesh has completed project on “COMPARITIVEANALYSIS OF FINANCIAL PRODUCTS AND SERVICES OF STANDARDCHARTERED BANK WITH OTHER MULTINATIONAL BANKS AND PRIVATESECTOR BANKS”, under my guidance for two months i.e. 01.05.2008 to 30.06.2008The information presented in this project is true and original to the best of myknowledge.Date:Place: (Prof. Dr. Raju G)3
  • ACKNOWLEDGEMENT"Sometimes our light goes outBut is blown into flame by another human being.Each of us owes deepest thanksTo those who have rekindled this light"No work is a single man’s effort. Cooperation, guidance and coordination are required atvarious levels for the successful completion of a project.I take this opportunity to express my gratitude to all those people who have beeninstrumental in successful completion of my project. I extend my sincere thanks to myfaculty guide, DR. RAJU G, who helped me in all possible ways and constantlyencouraged me throughout my project. I also thank him for his valuable guidance and forbeing understanding and supportive. I am particularly indebted to Mr.DASHRATHRENWA, my industry guide for his helpful guidance, comments and suggestionsthroughout my project.I am also grateful to the respondents who filled my questionnaires and helped me ingaining an insight of “Standard Chartered” as a brand in the Indian market. Theirenthusiastic feedback has given my project a direction. All errors, if any, in the projectare my sole responsibility.I would also like to express my gratitude towards my parents and friends, who havealways been my source of inspiration and motivation.(SWETA ARORA)4
  • EXECUTIVE SUMMARYStandard Chartered Bank having an history of over 150 years in the banking sector hasbecome one of the world’s fastest growing bank. In India, Standard Chartered started itsoperations by opening a branch at Kolkata in 1858 and has completed 150 years of itsexistence as a company in 2003.Standard Chartered offers various financial products and services to its customers toinvest their savings viz. savings account, current account, fixed deposits, mutual fundsand insurance plans in tie up with Bajaj Allianz.The project is related to comparison of financial products and services of StandardChartered Bank with other multinational banks and private sector banks existing inIndia. A secondary as well as primary research was conducted. Questionnaires weredesigned and were filled by the customers having their relation in the banks studiedtaking the sample size as 100.From the research conducted it was concluded that though Standard Chartered hasgrown tremendously in India, it still has a long way to go. The customers are satisfiedwith the bank’s savings account but when other products are concerned like currentaccount, term deposits customers are not much satisfied with the benefits provided. Evenunder savings account, average quarterly balance of 10,000 is to be maintained which isnot affordable by all. So, the customers of Standard Chartered are basically the rich classpeople. Moreover, people are very much dissatisfied with the Bank’s credit card andmost of them are planning to discontinue the product.Standard Chartered should target the middle income group. It should focus on brandbuilding by expanding market. Standard Chartered has restricted its operations in metrosso it should make its stand in non- metros as well. It should improve its services andcheck its loopholes to satisfy its customers fully.5
  • TABLE OF CONTENTSPage no.Chapter 1 : INTRODUCTION 7 - 101.1 Introduction 81.2 Rationale 91.3 Objectives 91.4 Methodology 10Chapter 2 : INDUSTRY AND COMPANY INTRODUCTION 11 - 182.1 Industry Introduction 12 - 132.2 Company Introduction 14 - 18Chapter 3: PRODUCTS AND SERVICES 19 - 433.1 Saving Account 20 - 253.2 Current Account 26 - 293.3 Insurance Plans 30 - 353.4 Credit Cards 36 - 383.5 Services 393.6 Financial Statement 40 - 43Chapter 4: DATA ANALYSIS AND INTERPRETATION 44 - 804.1 Secondary Data Analysis 46 - 534.2 Primary Data Analysis 55 - 774.3 SWOT Analysis 78 - 80Chapter 5: FINDINGS, RECOMMENDATIONSAND CONCLUSION 81 - 925.1 Findings 83 - 875.2 Recommendations 88 - 895.3 Conclusion 90 - 92APPENDIX 93 - 97BIBLIOGRAPHY 98 - 996
  • 1.1 INTRODUCTIONSaving generally means putting money aside for example by putting money in the bankor investing in a position. Saving in a broader sense refers to economizing, cutting costsor to rescuing someone or something. In terms of personal finance it refers to preservingmoney for future use, typically by putting into deposit. In banking terms, saving can bein the form of opening a savings account or a current account, investing in fixed depositsor mutual funds or by covering risk through insurance.Savings account are the accounts that let customers set a side a portion of their liquidasset while earning a monetary benefit. Saving accounts are offered by commercial bank,saving and loan associations, credit unions, building societies and mutual savings banks.Current account is the feature packed checking account for the business/ commercialsegment of users. Customers have the benefit of high monthly transaction at noadditional cost. Cheque book facility is available under this account. Routine paymentscan be made by the customers by giving standing instructions to the bank. Nominationand power of attorney facility is also available.A fixed deposit is meant for those investors who want to deposit a lumpsum of moneyfor a fixed period. Fixed deposit can be made for a minimum period of 15 days to 5 yrsand above which gives higher rate of interest in return.Insurance in Law and Economics, is a form of risk management primarily used to hedgeagainst risk of contingent loss. It is defined as the equitable transfer of the risk of a loss,from one entity to another in exchange for a premium.Mutual fund is a professionally managed firm of collective investments that collectsmoney from many investors and puts it in stocks, bonds, short term money market8
  • instruments and/ or other securities. Currently the worldwide value of all mutual fundstotals more than $26 trillion.1.2 RATIONALEThe basic aim behind preparing the report is to know where financial products andservices of Standard Chartered Bank stand in the Indian market. Who are the majorcompetitors of Standard Chartered bank including both multinational bank and privatesector bank. Are the customers of Standard Chartered satisfied with the products andservices offered by the bank. The study also aimed at knowing that if the bank is able togive what it promises and if it is successful in the Indian market or not.1.3 OBJECTIVES• To analyze the various financial products and services offered by variousmultinational banks• And then, on the basis of the products and services offered, compare theperformance of these banks with Standard Chartered Bank.• Thus by comparing the performance of the various banks I have to devisestrategies to increase the business for Standard Chartered Bank and discover thepotential market segment which may help Standard Chartered Bank to stay aheadin the competition.9
  • 1.4 METHODOLOGYSince it is basically a market research project along with some marketing and selling offinancial products, various market research methods were used to accomplish its goals. Iconducted a market survey to know about the various players and their performance inthe industry taking into consideration the various products and the product relatedservices provided by them. The stepwise methodology that was used is:1. Sampling: Population that was taken as a sample included customers of somemultinational banks like Standard Chartered Bank, ABN-AMRO, HSBC, Citibankand some new private sector banks like ICICI Bank, HDFC and IDBI.2. Secondary research3. Survey research was done through Personal Interviews Interactions with consumers of different banks.Questionnaires were designed to conduct interviews. Sample Size was taken as 100.4. Scaling technique used is ordinal, nominal and interval.5. Preparation and tabulation of data.6. Data Analysis.The information thus obtained from the survey was used to discover the potentialsegment for generating new business for the organization and thereby devise strategiesto generate new business from that potential segment.10
  • 2.1 INDUSTRY INTRODUCTIONAlthough the antiquated Indian banking system has its roots in the nineteenth century,the character and structure of the system has, however, changed substantially since 1969,when the major banks were nationalized. Prior to nationalization, banking wasconcentrated only in urban areas. It was clear that a better banking system was needed topromote the economic goals of the new Indian state. Rural markets for industrial goodscould not be developed so long as money lenders charge high rates of interest, whichwas the main source of rural credit. Moreover, the green revolution depended onfarmers finding substantial sources of credit to pay for fertilizers and hybrid seeds.Since the mid-1970s, there has been a spectacular growth in the number of bankbranches and in the size of their deposits and advances. According to experts in bankingthis transformation has no parallel anywhere in the world. After nationalization, therewas also a change in recruitment policy. For the first time, the doors of the banks wereopened to everyone, irrespective of family status, caste, community, religion or gender.Recruitment was done on a more systematic basis, with merit assessed by conductingaptitude tests by an external agency in a relatively impartial manner.As the size of the banking sector increased, the industry became difficult to manage andComputer technology offered a possible solution. In India in the early 1960s, a smallnumber of industrial houses and a few educational, research and developmentinstitutions started using computers. During the late 1960s and 1970s, service-orientedindustries such as airlines, railways and insurance companies introduced computers inorder to improve their functioning and to provide better customer service’. However,Banks in India did not introduce computers on a large scale because of the fear that thesewould result in retrenchment and unemployment.For a long time Indian banks faced very little competition and operated in a protectedeconomy and so no long-term policy or perspective was formulated for the bankingsector. Banking sector was simply treated as a part of the public sector. But now, well-12
  • computerized foreign banks are beginning to compete seriously with the nationalizedbanks. They target at the profitable and wealthy part of the market and, in contrast to thenationalized banks, do not recognize any social responsibilities to small account holdersor to a rural and semi-urban client.The banking and financial services Industry in India is in a state of inevitable and rapidgrowth. The market for banking products and services has become more competitivethan ever before. With the steady fall in interest rates over the two years, customersstarted looking for alternate avenues for savings and investments such as pension funds,mutual funds, life insurance products etc. Furthermore, interest margins and hencerevenue opportunities have become very thin which are driving banks and financialservices companies to look for lending opportunities where intrinsically the delinquencyrates on loans are low and where the risk can be spread across a large base of customers.Simultaneously, a rapidly growing middle class having an enormous appetite to borrowfrom Banks for a better and improved lifestyle, has given banks and financial servicescompanies an opportunity to finance the demand side of the Economy.The multinational banks and some of the new private sector banks in the country haveentered the Indian market and seized the opportunity very well. The public sector banksand the old private sector banks, who command over 80% market share in the bankingindustry, must seize the opportunity in a big way and respond aggressively to marketdemands if the growth in Retail Banking has to be accelerated in the country itself.To be successful in Retail Banking, banks will need to revamp their business model to :-(a) build a large volume, highly scalable operation,(b) package and deliver products rapidly in a dynamic market,(c) leverage effectively on multiple delivery channels (branch, internet, ATMs etc.)with a view to contain the cost of operations(d) build collaborative relationships with providers of related financial products andservices and move towards converting the network of bank branches into ‘financialsupermarkets’.13
  • 2.2 COMPANY INTRODUCTIONOverviewStandard Chartered – leading the way in Asia, Africa and the MiddleEastStandard Chartered has a history of over 150 years in banking sector and is in many ofthe world’s fastest growing markets. It has an extensive global network of over 1,200branches (including subsidiaries, associates and joint ventures) in 56 countries in theAsia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and theAmericas. As one of the world’s best international bank, Standard Chartered employsover 44,000 people, representing 89 nationalities worldwide.Standard Chartered PLC is listed on both the London Stock Exchange and the StockExchange of Hong Kong and is ranked among the top 25 among FTSE-100 companies,by market capitalization.Serving both Consumer and Wholesale Banking customers, the Bank combines deeplocal knowledge with global capability to offer a wide range of innovative products andservices as well as award winning solutions.Standard Chartered is committed to be the Right Partner to all its stakeholders by livingits values and managing its people, exceeding expectations of its customers. Bank hasmade a difference in the communities in which it operates and works with its regulators.The Bank is trusted by its customers for its standard of governance and corporateresponsibility.HistoryThe Standard Chartered Group was formed in 1969 by merging two banks: The StandardBank of British South Africa founded in 1863, and the Chartered Bank of India,14
  • Australia and China, founded in 1853. Both the companies were keen to capitalize on thehuge expansion of trade and to earn the handsome profits to be made from financing themovement of goods from Europe to the East and Africa.The Chartered BankIt was funded by James Wilson following the grant of a Royal Charter by QueenVictoria in 1853 . Chartered opened its first branches in Mumbai (Bombay), Calcutta andShanghai in 1858, followed by Hong Kong and Singapore in 1859. Its traditional business was in cotton from Mumbai (Bombay), indigo and teafrom Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hempin Manila and silk from Yokohama Played a major role in the development of trade with the East which followedthe opening of the Suez Canal in 1869, and the extension of the telegraph toChina in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the IonianBank’s Cyprus Branches. This established a presence in the Gulf.The Standard Bank It was founded in the Cape Province of South Africa in 1862 by JohnPaterson and commenced business in Port Elizabeth, South Africa, inJanuary 1863. Was mainly in financing the development of the diamond fields ofKimberley from 1867 and later extended its network further north tothe new town of Johannesburg when gold was discovered there in1885. Expanded in Southern, Central and Eastern Africa and by 1953 had600 offices.15
  •  In 1965, it merged with the Bank of West Africa expanding itsoperations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.In 1969, Chartered and Standard to were merged. However, in 1986 , a hostile takeoverbid was made for the Group by Lloyds Bank of the United Kingdom. When the bid wasdefeated, Standard Chartered entered a period of change and provisions were made forthird world debt exposure and loans to corporations and entrepreneurs who could notmeet their commitments. Standard Chartered began a series of divestments in the UnitedStates and South Africa, and also entered into a number of asset sales.In the early 90s, Standard Chartered focused on developing its strong franchises in Asia,the Middle East and Africa using its operations in the United Kingdom and NorthAmerica in order to provide customers a bridging gap between these markets. Secondly,it focused on consumer, corporate and institutional banking, and on the provision oftreasury services.In 2000, it acquired Grind lays Bank from the ANZ Group and the Chase ConsumerBanking operations inHongKong.16
  • Establishment of Standard Chartered Bank around the worldCountry Year Established Country Year EstablishedUnited Kingdom 1853 Australia 1964China, India, SriLanka1858 Mexico, Oman 1968Hong Kong,Singapore1859 Peru 1973Indonesia,Pakistan1863 Jersey 1978Philippines 1872 Brazil 1979Malaysia 1875 Venezuela 1980Japan 1880Falkland Islands,Macau1983Zimbabwe 1892 Taiwan 1985The Gambia,Sierra Leone,Thailand1894 Cameroon 1986Ghana 1896 Nepal 1987Botswana 1897 Vietnam 1990USA 1902Cambodia, SouthAfrica1992Bangladesh 1905 Iran 199317
  • Zambia 1906 Colombia 1995Kenya 1911 Laos, Argentina 1996Uganda 1912 Nigeria 1999Tanzania 1917 Lebanon 2000Bahrain 1920 Cote d’Ivoire 2001Jordan 1925 Mauritius 2002Korea 1929 Turkey 2003Qatar 1950 Afghanistan 2004Brunei, UAE 1958Standard Chartered in IndiaStandard Chartered Bank India is the country’s largest international bank having 82branches and over 8,000 employees and is one of the profitable bank in India. The Bankhas played a significant role in the history of the banking industry in India since openingits first branch at Kolkata in 1858 and completed 150 years of existence as a company in2003. Standard Chartered Bank India is an active participant in various advisory forumsand has played a lead role in RBI committees on Rupee Derivatives and Options. TheBank’s back office operations, which were India’s first to be accorded ISO 9002certification, now form part of the state-of-the-art global processing and reconciliationhub in Chennai.18
  • 19
  • 3.1 SAVING ACCOUNT1. Axcess PlusHaving average quarterly balance of 10,000 and 15,000 .A customer can get instant cashat over 13,000 ATMs across India and over 8, 10,000 ATMs across the world throughthe Visa network. And get a globally valid Debit Card that lets you shop at over 55,000outlets in India and at over 12 million outlets across the world.CHAPTER – 3PRODUCTS ANDSERVICES20
  • Unique features• Free access to cash anytime, anywhere, across India.• Provides two types of debit cards –1. Shop smart debit card : a customer can withdraw Rs.25,000 per day orshop for Rs.25,000 per day.2. Gold debit card : a customer can withdraw Rs.95,000 per day or shop forRs.95,000 per day. One reward point on every Rs.100 spent and onedinners card free.• Phone banking, Internet banking, Multi-city banking, 365 days branches,extended banking hours, lockers facility and doorstep banking.• At - par cheque book free of cost.• Add-on card for your loved one available with the joint account facility• Choice of photo, non-photo and picture cards2. Super ValueThe unique Super Value savings account is a proof that the best things in life come free.With an average quarterly balance of just Rs. 50,000, you get a host of services fromStandard Chartered Bank absolutely free.Unique features21
  • • Free globally valid Debit-cum-ATM card both shop smart debit card and golddebit card.• Free Access to 6500 ATMs in India• Free Payable at Par cheque book/ account statements.• One demand draft free daily.• Free Doorstep Banking – one per day.• Free bill pay• Free Inter Bank Funds Transfer• Free Foreign Inward Remittance Certificates• Free Investment Advisory ServicesOther benefits of the SuperValue account:• Globally valid debit card - make purchases at over 12 million merchantoutlets and withdraw cash at over 810,000 ATMs worldwide using fundsfrom your account22
  • • Multicity Branch Banking - access your account even when you are out oftown• Enjoy extended Banking hours at all our branches, and Speed ChequeClearing and Metro Clearing facilities• 24-hour branches, 365 day branches available at select locations• Phone banking - available to you 365 days a year on a 24-hour basis in themetros and everyday of the week at other centers• Internet banking - access and transact on your accounts through the Internetfrom any part of the world• Free Investment Advisory Services to assist you in investing in a range ofmutual funds• Full suite of complimentary banking services including credit cards, loanproducts and capital market services3. ParivaarParivaar savings account is a unique Wealth Management Solution from StandardChartered Bank that provides flexibility, convenience and essential tools for wealthaccumulation and preservation. Parivaar is much more than a regular Savings Account.It allows maintenance of individual identity and tapping of familys financial strength. It23
  • also offers attractive insurance options to protect against unforeseen events and thefacility of Systematic Investment Plan (SIP), a unique long-term wealth building tool. Acustomer has to maintain an average quarterly balance of Rs.25,000.Unique features• Your family can maintain individual savings accounts with the benefit ofclubbing balances in grouped accounts.• Anytime, anywhere access to accounts through ATMs, Phone Banking andInternet banking• Option of Systematic Investment Plan (SIP), a well known long term wealthbuilding tool that allows investment of fixed amount of money every monthin specific mutual funds.• At par cheque book free of cost.• Provides both shop smart debit card and gold debit card.• Head of the family can access accounts of all the members.• Globally valid ATM-cum-debit card can be used at 55,000 merchant outletsin India and 12 million outlets worldwide.4. 2-1 AccountA unique account that offers you a double advantage, letting you earn the high interestrate of a fixed deposit while you enjoy the flexibility of a savings or current account.How does the 2-in-1 account work?24
  • The 2-in-1 account gives the facility of linking your fixed deposits with a savings orcurrent account. In case of any shortfall in the savings or current account, funds will beautomatically swept in from the linked fixed deposits, thus giving you a combination ofboth liquidity and higher returns.In case you need to withdraw amounts in excess of what is available in your savings orcurrent account, we will break your deposit for the exact amount you require. The rest ofthe deposit continues earning the original high interest.With fixed deposit of Rs.1,00,000 or more a 0 balance account can be maintained.Unique features• Earn fixed deposit interest rates• Enjoy the flexibility of a Savings or a Current Account• Free personalized cheque book and Debit/ATM card• Flexibility of withdrawing money whenever you need it• Deposit more money in your account to earn a higher rate of interest byplacing subsequent deposits• Phone Banking for account related information at your fingertips• Free doorstep facility , SMS banking , Internet banking and Multicity branchbanking.25
  • 3.2 CURRENT ACCOUNT1. Business plusIn business, time is money and the Standard Chartered Business Plus Account savesboth time and money of a customer. It is designed to cater to all business needs andgive a range of conveniences to its customers unmatched by an ordinary currentaccount.Unique features• Free Multicity At-Par cheque books that saves valuable time and money(payable at all branch locations)• Free drafts and pay orders26
  • • Express Cheque Collection & National Clearing Speed Service• Free National Electronic Fund Transfer in over 63 banks and 26,000 branchesacross India. Funds can be transferred within 24 hours.• Free Consolidated Account Statement for every quarter• The option to maintain and operate account in any of the branches for free.• Cheque pick-up or DD/PO delivery/ Cash pick up and delivery as per yourconvenience• Doorstep Banking Facility• Anytime access to Business Plus Account from anywhere in the world,through Free Internet banking facility• Free Phone Banking Facility• Debit Card with all benefits of axcess plus saving account which can be usedin over 6500 ATMs across the country• Special pricing on Trade Services through International Trade and TreasuryServices2. Enhanced Business Plus Account27
  • The Enhanced Business Plus Account offered by Standard Chartered Bank is designed tomake business better and make the most efficient use of money.Unique features• Free drafts and pay orders at all Standard Chartered branch locations• Free drafts can be availed in correspondent bank locations upto a limit ofRs.75 lakhs per month• Multicity At – par cheque books payable at all branch locations• Special pricing on Trade Services through our International Trade andTreasury Services• Express Cheque Collection & National Clearing Speed Service• Free National Electronic Fund Transfer in over 63 banks and 26,000 branchesacross India . The funds of the customers can be transferred within 24 hours.• Easy outstation cheque pick up and collection at 175 locations• Remote Pay Facility that provides easy delivery of a draft payable at 42 selectlocations to any address within 24 hours• Free doorstep facility• Free Internet banking28
  • • Free Phone Banking• Free Multicity banking• Free Debit Card with benefits of Axcess Plus saving account.• Flexible banking hoursAverage Quarterly Balance of various accountsCurrent Account AverageQuarterlyBalanceEnhanced Business Plus100Rs.100,000Enhanced Business Plus500Rs.500,000Enhanced Business Plus1000Rs.10,00,00029
  • 3.3 INSURANCE PLANS (ULIP)Standard Chartered Bank has a tie up with Bajaj Allianz for selling of insurance plans.Various insurance plans are as follows:-1. Young Care PlusThis policy insures a safe financial future giving attractive returns and guaranteedlife cover with added benefit of Critical Illness cover.Unique Features• Loyalty units to enhance the fund value of the customer every yearfrom the sixth policy year.• Provides a guaranteed Sum Assured plus to pay premium on behalfof the customer. In case of an unfortunate death of a customer oron being diagnosed to be suffering from specified critical illness,whichever occurs first.30
  • • The policy continues to participate in investment performance of thefund till maturity even after the payment of Sum Assured as part ofdeath or critical illness benefit.• A fund called ‘Asset Allocation Fund’ looks after the investment ofthe customer even when market condition change. The fundmanagers monitor the mix of assets in the fund and manage themix in order to maximize your returns.• If the customer wants to manage the mix of assets for their ownpolicy, there is a choice of 5 other investment funds, withcomplete flexibility to switch money from one fund to the other tomanage the investment better.• The policy continues to participate in investment performance of thefund even if the customer is not able to pay the premium for first 3full years.• The policy provides flexibility of partial withdrawals at any time afterthree years from commencement of the policy provided first three fullyears’ premiums are paid.• The policy provides an option to pay top up premiums anytime duringthe tenure of the policy in order to enhance the savings in the future.• The policy also gives an option to choose UL Accidental PermanentTotal/Partial Disability Benefit as an individual rider benefit toprovide assurance to the whole family.2. New Unit Gain31
  • This insurance plan is structured in order to provide a secure life cover withextraordinary benefits aligned with commitment to give the ‘ultimate investmentplan’.Unique Features• Apart from normal allocation the customer receives Loyalty Unitsequivalent to 51% of First Year’s Annualized Premium over aperiod of 10 years.• The investment plan gives a choice of six investment funds withunmatched flexibility in order to manage the investments better.• Even if the customer is not able to pay3 full years premium, thepolicy continues to participate in investment performance of thefund.• It provides maximum flexibility in ways like an option to increasepremium, partial withdrawals anytime after three years from thecommencement of policy, provided three full years premiums arepaid, advantage of three free switches every year and an option topay unlimited top up premiums anytime during the tenure of thepolicy to further enhance the saving of the customers.• Option of three simple terms – 15, 20 and 25 years.32
  • • A guaranteed life cover with a flexibility to choose insurance coveraccording to the changing needs.• Many other additional rider benefits in order to provide additionalprotection.3. New Secure FirstThe policy provides a combination of protecting life of an individual withattractive prospect of investing in securities.Unique Features• An individual can choose the funds in which he/she wishes toinvest which gives the individual an opportunity to have a directstake in the performance of the financial markets• The policy gives attractive tax advantages.• The policy provides guaranteed death benefit i.e. value of unitsplus Sum Assured.• It provides a choice of five investment funds with flexibleinvestment management. A customer can easily change funds at33
  • any time and can also invest in the newer funds that would beintroduced from time to time.• It gives attractive investment alternative to fixed interestsecurities.• There is a provision for full/partial withdrawals any time afterthree years from commencement if three full year’s premiums arepaid.• The policy gives unmatched flexibility to match changing needs.4. Future SecureAn insurance plan that gives a unique Asset Allocation Pension Fund.The plan ensures independence to the individual and provides flexibility toaccommodate to the ever changing needs.Unique Features• An individual can adopt their own investment strategy by choosingfrom 6 different investment funds with different fund objectives thatsuits the risk profile of the customer giving him flexibility to switchfunds or invest in the newly introduced funds.• A unique investment ‘Asset Allocation Pension Fund’ is offeredunder this plan. The fund managers monitor the mix of assets in thefund in order to maximize returns.34
  • • The policy also gives a choice of 5 other investment funds, givingcomplete flexibility to switch money from one fund to another inorder to manage investments better.• The policy continues to participate in the investment performance ofthe fund even if the customer is not able to pay premium for 3 fullyears.• The policy gives two options – a pure pension plan and a pensionplan with life cover.• It provides 4 additional rider benefits to choose from to furtherenhance the risk cover.• It gives Loyalty Units to enhance the fund value every year from thesixth policy year.• The policy provides an option to pay unlimited top up premiumsanytime during the tenure of the policy to further enhance thesavings.• Provides flexibility to increase or decrease the regular premium,change the premium apportionment, switch between funds and alsoto change the premium payment mode.35
  • 3.4 CREDIT CARDSThe Gold Card offered by Standard Chartered is not less than a credit card. It providesspecial deals at various restaurants, travel benefits and many more privileges.Unique features:-Some of the exclusive benefits availed by a Gold Card member:Privilege access to Airport Lounges: The Gold Card of Standard Chartered Bankensures the entry of its holder into exclusive airport lounges in Delhi, Chennai andKolkata including complimentary non-alcoholic beverages and snacks.Global AcceptanceThe Gold Card is the most widely accepted and respected credit card in over 19 millionVISA and MasterCard establishments worldwide and over 1.1 lac establishments inIndia and Nepal.Balance Transfer OptionThe Gold Card helps its holders to transfer the outstanding balance from any other creditcard to the Standard Chartered global credit card at a special rate lower than the 2.95%p.m. which is the current rate.Revolver FacilityThe revolver facility of Gold Card allows payment of just 5% of the outstanding amounton the card every month36
  • Cash Advance FacilityThe cash advance facility provides 24-hour access to cash upto 30% of the credit limit at850,000 ATMs worldwide and 6500 ATMs all over India.Doorstep FacilityConvenience of facilities at the doorstep of customers. Both pick up and drop facility.Picture CardA picture that is close to the heart of the customer can be used to make the card asunique as he want it to be.Photo CardIt can be a measure to safeguard the credit card by opting for a Photo CardZero Lost Card LiabilityIn case the card is lost, the customer can avail the benefit of the Zero Lost Card Liability.Credit Free PeriodThe Gold Card provides credit free period of upto 52 days.24 hour Help-linesA customer can use the help-lines for any queries 24/7.Cheque collection boxesPayments can be made on Standard Chartered Credit Card conveniently by placing thecheques at cheque collection boxes across centers.Airline/Railway countersThe Standard Chartered Credit Card can be used to purchase railway/airline ticketsonline or at railway & airline counters and gives access to exclusive airport lounges.37
  • Instant BuysA customer can pay in easy installments for high value purchases on the credit cards atattractive rates of interest.Rewards Plus ProgramOne reward point is awarded on every Rs.100 spent on Standard Chartered credit cardwhich can be exchanged for attractive gifts.Travel Cash BackInternational air tickets which are purchased through Carlson Wagonlit/ BTI Sita gives aspecial cash back offer.38
  • 3.5 SERVICESGoing beyond assurances and promisesService Guarantee by Standard Chartered Bank gives the power to demand the superiorservice that one truly deserves. Every time a service is delayed beyond the guaranteedtime given below, a customer can claim INR 50 for each day of the delay.The Room service GuaranteeA representative of the Standard Chartered Bank meets its customer within 24 hours ofthe call.The ATM card GuaranteeATM card would be received within seven working days of application of the card.The Deposit Confirmation Delivery GuaranteeFor a new account, the deposit confirmation will reach the customer within five workingdays of submission of the completed account opening forms to the bank.The Cheque-book Delivery GuaranteeThe cheque book will be received within seven working days of placing the request.The Finance Against Shares GuaranteeThe Setting up of overdraft limit and enhancement of the overdraft limitwithin five working days of receiving the completed documents, and if the customerwishes to enhance the limit, it will be done within three working days of receiving thedocuments and dividend warrants.39
  • 403.6 FINANCIALSTATEMENT2006 - 07
  • Financial ReportBalance Sheet as at 31 March, 2007For the year ended For the year ended. 31.3.2007(Rs. 000s) 31.3.2006(Rs.000s)_____________________________________________________Capital & LiabilitiesCapital 5,281,975 5,281,975Reserves & Surplus 52,726,184 40,334,119Deposits 341,740,351 284,598,056Borrowings 63,518,196 79,167,877Other Liab. & Provisions 125,265,063 50,164,127______________________________________________________Total capital & liabilities 588,531,769 459,546,154______________________________________AssetsCash & Bal. with the RBI 20,035,416 14,012,047Balances with banks 20,232,683 33,868,569& Money at call & short noticeInvestments 119,022,852 106,317,316Advances 301,037,976 240,767,280Fixed Assets 8,772,625 8,913,964Other Assets 119,430,217 55,666,978_______________________________________________________Total assets 588,531,769 459,546,154Contingent liabilities 8,159,001,109 3,809,554,242______________________________________Bills for collection 56,331,265 46,620,844______________________________________41
  • Profit and Loss Account as at 31 March, 2007For the year ended For the year ended. 31.3.2007(Rs. 000s) 31.3.2006(Rs. 000s)_____________________________________________________Income 40,427,830 30,563,503Other Income 13,473,330 10,577,377______________________________________________________Total Income 53,901,160 41,140,880______________________________________ExpenditureInterest Expended 16,518,869 11,901,671Operating Expenses 14,002,839 12,010,999Provisions & Contingency 9,736,330 8,179,733_______________________________________________________Total Expenditure 40,258,038 32,092,403_______________________________________________________Net Profit 13,643,122 9,048,47742
  • Significant changes:-• For a bank one of the most important forms of liability is the amount ofdeposits it has procured from the public. For Standard Chartered Bank, thisfigure has shown an increase of almost 20%.• The increase in provision is also very tremendous from 50,164,127 to125,265,063 i.e. an increase of 150%.• Now as far as assets are concerned the company has been able to create goodamount derivative deposits. In other words, the company utilized the amountit collected in the form of deposits towards advances and other assets therebyincreasing the overall assets.• Contingent liabilities have also shown a tremendous increase of4,349,446,867 crores i.e. almost an increase of 114%.• When we look at the income and expenditure of the company over the year,both have shown an increase of 31% and 25% respectively increasing the netprofit of the company by almost 50%.43
  • Table 4.1Comparative Analysis – StandardChartered Vs. Other Multinational BanksBank Services StandardCharteredABN-AMROCitibank HSBC1. Branches 68(Metros)& 83(India)17(Metros)& 19(India)25(Metros)& 35(India)30(Metros)& 39(India)2. ATM’s 165 78 376 1583.ATM/DebitCardYes Yes Yes Yes4.Charges forATM cardRs. 200 p.a. Rs. 200 p.a. Rs. 100 p.a. Rs. 150 p.a.5.ATM/DebitCard accessto otherbanksYes Yes Yes Yes6.Charges pertransactionfrom ATM’sof otherbanks4 transactionfree/monthand then Rs.50 pertransaction2 transactionfree/monthand then Rs.40 pertransactionRs. 50 pertransactionRs. 50 pertransaction7.LockerFacilityYes, Rs.2000 perannumYes Yes Yes8.Chequedeposit boxesYes Yes Yes Yes9. GlobalDebit cardYes Yes Yes Yes10. GlobalCredit cardYes Yes Yes Yes11.Averagebanking hrs10 AM – 7PM10 AM – 7PM10 AM – 2PM9 AM – 4PM12. Sunday46
  • Banking Yes Yes Yes No13.MinimunBalanceSaving10,000 10,000 10,000 10,00014. Chargesfor non-maintenanceof min.balanceRs. 750 perquarterRs 200 to Rs1800 permonthRs 250 permonthRs 300 perquarter15.CashWithdrawalper day25,000 25,000 –1,00,00050,000 25,00016. Cashtransactionfrom non-branchYes Yes Yes Yes17.StatementchargesFree Free Free Free18. 24 hoursbranchYes No No No19. 365 daysbranchYes Yes Yes No20.AutomatedchequereorderYes No No Yes21. MulticityBranchbankingYes Yes Yes Yes22. NationalclearingYes Yes(3-5days)Yes(7-15days)Yes23. SpeedClearingYes Yes Yes Yes24. NetBankingYes Yes Yes Yes25. MobileBankingYes Yes Yes Yes26.PhoneBankingYes Yes Yes Yes27. DMAT Yes Yes Yes Yes47
  • 28.PriorityBankingYes Yes Yes Yes29.Flexibilityof InterestRatesYes No No Yes30.Door stepBankingYes Yes Yes Yes31. CashDeliveryYes(charged) Up to 1 lakhfree & abovechargedYes(charged) Yes(charged)32. Cash pickupYes(charged) Yes(charged) Yes(charged) Yes(charged)33. Chequepick upYes Yes Yes YesExplanation :1. Most of the branches of Multinational banks are concentrated in the metros. Thebranches of Standard Chartered bank are comparatively more than ABN Amro, Citibank and HSBC bank. But ATMs of Citi bank are higher.2. Almost every bank provides ATM cards to their customers to make banking moreeasier. Customers do not have to visit the banks for deposits and withdrawals. ATMservice can be accessed through other banks as well. Few banks provide this facilityfree of cost while others have charges for it. All the banks mentioned above havetheir respective charges.3. Locker facility is chargeable under Standard Chartered bank at Rs. 2000 p.a. but inother banks this facility is offered free of cost.4. Banking hours of the banks are almost the same. Branches are open even onSundays and Standard Chartered bank provides 24 hours banking to its customers.48
  • 5. The Average Quarterly Balance is Rs. 10,000 for all the four banks. If the customeris not maintaining this minimum balance there are charges for non maintenance.6. Bank statements are available free of cost.7. Cash withdrawal per day for Standard Chartered bank is the lowest at Rs.25,000while for ABN Amro it is the highest and ranges from Rs. 25,000 to Rs. 1,00,000.8. Doorstep banking is a new facility which was first introduced by StandardChartered bank and is now used by almost every bank. Banks have their respectivepickup and drop charges.9. Multibranch banking, phone banking, mobile banking, internet banking, nationalclearing and speed clearing facilities are provided by all the four banks.10. Priority banking includes customers of high value and is provided by every bankthese days.49
  • Table 4.2Comparative Analysis – StandardChartered Vs. New Private Sector BanksBank ICICI HDFC AXIS IDBIServices1. Branches 158(Metros)& 508(India)194(Metros)& 446(India)96(Metros)& 247(India)43(Metros)& 120(India)2. ATM’s 1910 1147 1599 3293.ATM/DebitCardYes Yes Yes Yes4.Charges forATM cardRs. 99 p.a. Rs. 100 p.a. Rs. 150 p.a. Rs. 100 p.a.5.ATM/DebitCard accessto otherbanksYes Yes Yes Yes6.Charges pertransactionfrom ATM’sof otherbanksRs. 50 pertransactionRs. 50-100pertransactionRs. 50 pertransactionRs. 50 pertransaction7.LockerFacilityYes, Rs. 750per annumYes Yes Yes8.Chequedeposit boxesYes Yes Yes Yes9. GlobalDebit cardYes Yes Yes Yes10. GlobalCredit cardYes Yes Yes Yes11.Averagebanking hrs9 AM – 4PM10 AM – 4PM10 AM – 4PM10 AM – 4PM12. SundayBankingNo Yes No No13.Minimun 5,000 5,000 5,000 5,00050
  • BalanceSaving14. Chargesfor non-maintenanceof min.balanceRs. 300 perquarterRs 150 to Rs500 permonthRs 200 permonthRs 100 perquarter15.CashWithdrawalper day15,000 15,000 20,000 25,00016. Cashtransactionfrom non-branchYes Yes( Up to1,00,000)Yes(Up to1,50,000)Yes(Up to50,000)17.StatementchargesFree Free Free Free18. 24 hoursbranchNo No No No19. 365 daysbranchNo No No No20.AutomatedchequereorderNo No No No21. MulticityBranchbankingYes Yes Yes(selectedcities)Yes22. NationalclearingYes Yes Yes Yes23. SpeedClearingYes Yes Yes Yes24. NetBankingYes Yes Yes Yes25. MobileBankingYes Yes Yes Yes26.PhoneBankingYes Yes Yes Yes27. DMAT Yes Yes Yes No28.Priority Yes Yes Yes Yes51
  • Banking29.Flexibilityof InterestRatesYes Yes Yes Yes30.Door stepBankingYes Yes Yes (forselectedcustomers)Yes(forselectedcustomers)31. CashDeliveryYes(charged) Yes(charged) Yes(charged) Yes(charged)32. Cash pickupYes(charged) Yes(charged) Yes(charged) Yes(charged)33. Chequepick upFree once amonthYes(charged) Yes(charged) Yes(charged)Explanation :1. The branches of private sector banks are spread all over India and is notconcentrated only in the metro cities.2. The number of ATMs of private sector banks are comparatively high than that ofmultinational banks. Banks have charges for the ATM cards and ATM services ofother banks can be accessed by paying an amount.3. Locker facility is provided by all the banks. Its chargeable under ICICI bank but isprovided free of cost by the remaining banks.4. Banking hours of all the four banks are almost the same. No 24 hours banking isprovided by any of the banks and only HDFC bank provides banking on Sundays.5. Minimum balance for saving account for all the banks are Rs.5,000 and there is acharge for non- maintenance of this balance.6. Cash transaction from other banks can be done by customers of all the four banks.52
  • 7. National clearing, speed clearing, mobile banking, phone banking, internet bankingand Multicity branch banking is provided by all the banks. But AXIS bank hasMulticity branch banking facility only in selected cities.8. Priority banking is available under all the banks.9. Doorstep banking is provided by all the banks but AXIS and IDBI provide thisfacility only to priority banking customers. All the banks have charges for cash pickup, cheque pick up and cash delivery.53
  • DEMOGRAPHIC ATTRIBUTIONSAgeTable 4.3Age15 15.0 15.0 15.026 26.0 26.0 41.040 40.0 40.0 81.019 19.0 19.0 100.0100 100.0 100.0Below 20 yearsBetween 20 and 40 yearsBetween 40 and 60 yearsAbove 60 yearsTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.115%26%40%19%Below 20 yearsBetween 20 and 40 yearsBetween 40 and 60 yearsAbove 60 yearsFrom the above analysis, I can analyze that normally people in the age group 20-60maintain their relations with multinational or private sector banks. While, people in theage group of below 20 years and above 60 years are somewhat indifferent.55
  • OccupationTable 4.4Occupation13 13.0 13.0 13.047 47.0 47.0 60.036 36.0 36.0 96.04 4.0 4.0 100.0100 100.0 100.0StudentServiceBusinessOthersTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.213%47%36%4%StudentServiceBusinessOthersFrom the above figure, we can analyze that the major proportion of the customers of theMultinational banks and the Private sector banks are from the service class and thebusiness class. So the potential market segment of the customers of the various bankscomprises of the service and the business class.56
  • Annual IncomeTable 4.5Annual Income13 13.0 13.0 13.011 11.0 11.0 24.044 44.0 44.0 68.032 32.0 32.0 100.0100 100.0 100.0DependantBelow 2 LakhBetween 2-5 LakhAbove 5 LakhTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.313%11%44%32%DependentBelow 2 lakhBetween 2-5 lakhAbove 5lakhFrom the above results, it can be analyzed that people whose income is above two lakhsnormally go for relations with multinational banks or some private sector banks. Whilepeople who are dependent prefer Public sector banks.57
  • Factors Affecting the banking habits of peopleThe banking habits were studied on the basis of six features included in thequestionnaire. The respondents were asked to rate each of these features on a scale offive factors namely lowest, low, average, high and highest. The following results wereobtained for each of these factors:1. LocationTable 4.6Location11 11.0 11.0 11.050 50.0 50.0 61.039 39.0 39.0 100.0100 100.0 100.0AverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.411503901020304050Average High HighestLocationFrom the above figure, it can be said that people normally rated the factor “Location” ashigh. Thus it can be concluded that location is one of the most important factor forpeople while choosing a particular bank.58
  • 2. AmbienceTable 4.7Ambience3 3.0 3.0 3.08 8.0 8.0 11.051 51.0 51.0 62.034 34.0 34.0 96.04 4.0 4.0 100.0100 100.0 100.0LowestLowAverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.538513440102030405060Lowest Low Average High HighestAmbienceFrom the above figure, it is pretty clear that people rate the factor “ambience” as averageor high. The reason behind rating this factor as normally average is that people told thatthey hardly have the time to go to the bank. Though, it does have an effect on people butis not of much importance to them so they rated it as average.59
  • 3. TimingsTable 4.8Timings1 1.0 1.0 1.04 4.0 4.0 5.058 58.0 58.0 63.036 36.0 36.0 99.01 1.0 1.0 100.0100 100.0 100.0LowestLowAverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.614583610102030405060Lowest Low Average High HighestTimingsFrom the above figure, it is evident that the factor “timings” is rated as average bypeople. Many people rated this factor as average because they think that all the bankshave the same timings. Therefore it is not of much importance to people while choosingparticular bank.60
  • 4. Products OfferedTable 4.9Product Offered17 17.0 17.0 17.064 64.0 64.0 81.017 17.0 17.0 98.02 2.0 2.0 100.0100 100.0 100.0LowAverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.71764172010203040506070Low Average High HighestProducts offeredFrom the above figure, it is evident that the factor “products offered” is rated as averageby people. Many people rated this factor as average because they think that all the banksoffer the same kind of products. Therefore it is not of much importance to people whilechoosing particular bank.61
  • 5. InformationTable 4.10Information15 15.0 15.0 15.074 74.0 74.0 89.011 11.0 11.0 100.0100 100.0 100.0AverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.815741101020304050607080Average High HighestInformationMost of the respondents rated this factor as high. The reason behind such rating was thatmost of the respondents felt that they were not provided with the right information about62
  • the products. So they wanted that they should be provided with the right information andshould not be deceived.6. ServiceTable 4.11Service1 1.0 1.0 1.040 40.0 40.0 41.059 59.0 59.0 100.0100 100.0 100.0AverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.9140590102030405060Average High HighestServiceThis factor was rated by the respondents as the highest. Almost every respondent rated“Service” as highest because they felt that once they use any product of a bank then theservices which are provided along with the product effect the relationship of the63
  • customers with that particular bank. On the basis of the results obtained from the surveyit can be clearly stated that “Service” is the most important criteria for choosing a bank.Rating of Banks1. Multi-national BanksStandard Chartered BankTable 4.12Standard Chartered3 3.0 3.0 3.032 32.0 32.0 35.050 50.0 50.0 85.015 15.0 15.0 100.0100 100.0 100.0LowAverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.10332501505101520253035404550Low Average High HighestStandard Chartered Bank64
  • Standard Chartered Bank is normally rated by people as “high” which means that peoplekeep a good opinion about Standard Chartered Bank.ABN AmroTable 4.13ABN Amro38 38.0 38.0 38.060 60.0 60.0 98.02 2.0 2.0 100.0100 100.0 100.0AverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.11386020102030405060Average High HighestABN AmroFrom the above data it can be stated that ABN - Amro also has a good reputation amongmultinational banks as it has been rated by most of the respondents as an above averagebank.65
  • CitibankTable 4.14Citibank30 30.0 30.0 30.066 66.0 66.0 96.04 4.0 4.0 100.0100 100.0 100.0AverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.1230664010203040506070Average High HighestCiti BankCitibank has also been rated as an above average bank by the respondents. People feelthat Citibank is providing good facilities along with the products it offers.66
  • HSBCTable 4.15HSBC6 6.0 6.0 6.071 71.0 71.0 77.023 23.0 23.0 100.0100 100.0 100.0AverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.136712301020304050607080Average High HighestHSBC67
  • From the above data, it is evident that HSBC is the best rated bank among allmultinational banks in India. The respondents who had their relationship with HSBCwere very much satisfied with the services provided by HSBC.Private Sector BanksICICI BankTable 4.16ICICI2 2.0 2.0 2.072 72.0 72.0 74.025 25.0 25.0 99.01 1.0 1.0 100.0100 100.0 100.0LowAverageHighHighestTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.1427225101020304050607080Low Average High HighestICICIICICI was rated as an above average bank when compared with the multinational banksand the new private players in this industry. Some respondents had a good experience68
  • with ICICI and were satisfied with the facilities and services provided by them whilesome were not satisfied with ICICI. So there was a mixed opinion about ICICI.HDFCTable 4.17HDFC6 6.0 6.0 6.067 67.0 67.0 73.027 27.0 27.0 100.0100 100.0 100.0LowAverageHighTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.1566727010203040506070Low Average HighHDFCFrom the above data obtained it can be analyzed that HDFC was rated as an averagebank by most of the respondents. The reason behind such ratings was that people werenot satisfied with the services provided by HDFC. Some had faced the problem because69
  • of non availability of third party transactions while some were tired of a long queueoutside its ATM machines.IDBITable 4.18IDBI1 1.0 1.0 1.019 19.0 19.0 20.076 76.0 76.0 96.04 4.0 4.0 100.0100 100.0 100.0LowestLowAverageHighTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.1611976401020304050607080Lowest Low Average HighEast70
  • IDBI was also rated as an average bank by most of the respondents. Although a very fewhad maintained relationships with IDBI but even these few were not satisfied with theservices and other facilities provided by IDBI.For Standard Chartered Bank OnlyProducts OfferedSaving AccountTable 4.19Saving Acc45 45.0 45.0 45.055 55.0 55.0 100.0100 100.0 100.0YesNoTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.1745550204060Yes NoSaving Account71
  • From the survey, I analyzed that people who had relations with Standard Chartered Bankpreferred to have their saving account with Standard Chartered Bank.Current AccountTable 4.20Current Acc7 7.0 7.0 7.093 93.0 93.0 100.0100 100.0 100.0YesNoTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.187930102030405060708090100Yes NoCurrentAccount72
  • From the above data it can be easily interpreted that a very few of those people whowere maintaining relationship with Standard Chartered Bank had their Current accountin Standard Chartered bank. So it can be said that people were not much interested inhaving their Current Account with Standard Chartered Bank.Term DepositsTable 4.21Term Deposits1 1.0 1.0 1.099 99.0 99.0 100.0100 100.0 100.0YesNoTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.19199020406080100120Yes NoTerm DepositFrom the above figures it is pretty clear that “Term Deposits” of Standard CharteredBank is not a very popular product . Therefore Standard Chartered will have to make thisproduct more attractive to attract more customers.73
  • Credit CardsTable 4.22Credit Cards21 21.0 21.0 21.079 79.0 79.0 100.0100 100.0 100.0YesNoTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.2021790102030405060708090Yes NoCredit CardsWhile conducting my market survey I found that people were not satisfied with thisproduct of Standard Chartered Bank. Instead they wanted to discontinue with this74
  • product as they felt that they were deceived. This was because they were not providedwith the right information about how to use the product.SatisfactionTable 4.23satisfaction33 33.0 33.0 33.016 16.0 16.0 49.051 51.0 51.0 100.0100 100.0 100.0YesNoNot applicableTotalValidFrequency Percent Valid PercentCumulativePercentFigure 4.213316510102030405060Yes No NotApplicableSatisfactionFrom the above data it can be interpreted that people who had their relations withStandard Chartered Bank were pretty much satisfied with Standard Chartered Bank. Amajority of the people who were not satisfied with Standard Chartered were those peoplewho were using the credit card of Standard Chartered Bank.75
  • Annual Income/Standard Chartered BankTable 4.24Annual Income * Standard Chartered CrosstabulationCount5 6 2 136 4 1 112 15 24 3 441 6 16 9 323 32 50 15 100DependantBelow 2 LakhBetween 2-5 LakhAbove 5 LakhAnnualIncomeTotalLow Average High HighestStandard CharteredTotalFigure 4.225626412152416161690%20%40%60%80%100%Dependent Below 2 lakh Between 2- 5lakhAbove 5 lakhHighestHighAverageLowThe above table which shows the rating of people in different income group shows thatpeople whose income is above two lakhs rated Standard Chartered as “high” whichmeans that they were pretty much satisfied with Standard Chartered Bank.76
  • Occupation/ServiceTable 4.25Occupation * Service CrosstabulationCount5 8 131 25 21 4710 26 364 41 40 59 100StudentServiceBusinessOthersOccupationTotalAverage High HighestServiceTotalFigure 4.235812521102640%10%20%30%40%50%60%70%80%90%100%Student Service Business OthersHighestHighAverageThe above data shows that the factor “service” was very important for the business classand the service class people. They wanted that service should be up to the mark and theyshould not face any problems because it leads to irritation.77
  • SWOT ANALYSISStrengths1. Diversity, resilience and flexibility.2. Multinational Bank with a good financial backup from the UK.3. Quality service is assured if one has a banking relationship with StandardChartered Bank4. Four free transactions from ATMs of any bank plus unlimited access to ATMs ofStandard Chartered Bank across the country in a month.5. Good infrastructure & good incentives for the result oriented employees.6. Large number of branches in Metros.7. Strong sales team who are recruited through tough interviews.Weakness1. Number of Standard Chartered ATMs is less than its close competitors.2. Average quarterly balance is comparatively higher than most of its competitors.79
  • 3. Penalties are higher for non-maintenance of average quarterly balance, chequebouncing, etc.4. Bank charges are high (Demand draft, pay order charges).5. Customer of middle income group hesitates to start a relationship with StandardChartered Bank.Opportunity1. Explore the market with Parivaar account.2. Lot of scope for product variation.3. Tap the middle income group and the salaried class.4. Lot of scope for growth in the Indian market.Threat1. ATM infrastructure of its competitors.2. Players have similar strategies.3. There is not much differentiation between the services and products of otherbanks.80
  • 5.1 FINDINGSFindings from secondary data:-Multinational Banks• The number of branches of Standard Chartered bank are the highest among all themultinational banks surveyed. It has 68 branches in metro and 83 all over in India.While the number of ATMs of Citi bank is highest at 376.• All the banks provide ATM cards while there are some charges for it. For StandardChartered bank it is Rs. 200 p.a., for ABN Amro it is Rs. 200 p.a., for Citi bank it isRs. 100 p.a. and for HSBC it is Rs. 150 p.a.• The customers of these banks have the facility to access the ATMs of other banks buthave to pay the following charges – For Standard Chartered customers it is free forfirst 4 transactions in a month and then the charges are Rs. 50 per transaction. ForABN Amro customers, it is free for first 2 transactions in a month and then thecharges are Rs. 40 per transaction. For Citi bank and HSBC customers the chargesare Rs. 50 per transaction.• All the banks provide locker facility. Standard Chartered bank charges Rs. 2000 p.a.while other banks offer this facility free of cost.• The bank timings of all the banks are almost the same. Except for HSBC, all thethree banks provide Sunday banking as well. Standard Chartered bank provide 24hours banking also.• The minimum balance for the savings account is Rs. 10,000 and if the customer doesnot maintain this minimum balance, he has to bear some charges. For StandardChartered customers it is Rs. 750 per quarter, for ABN Amro customers, it is Rs.200to Rs.1800 per month, for Citi bank customers, it is Rs.250 per month and for that ofHSBC customers, it is Rs. 300 per Quarter.82
  • • Cash withdrawal per day for Standard Chartered bank is Rs.25,000, for ABN AmroRs.25000- Rs.1,00,000, for Citi bank Rs.50,000 and for HSBC Rs.25,000.• Cash transaction from non-branch is provided by all the banks.• Multicity branch banking, national clearing, speed clearing, phone banking, internetbanking, mobile banking, priority banking and DMAT facility is provided by all thebanks.• Doorstep banking which was first introduced by Standard Chartered bank is providedby all the banks now. Banks have there different charges for cheque pick up, cashpickup and cash delivery depending upon the amount.Private Sector banks• The number of branches of HDFC in metro cities is the highest at 194 and all overIndia, ICICI has maximum number of branches and ATMs at 508 and 1910respectively.• All the banks provide ATM cards but have their respective charges such as for ICICIRs. 99 p.a., for HDFC Rs. 100 p.a., for AXIS Rs. 150 p.a. and for IDBI Rs.100 p.a.• The customers can has the advantage of accessing other banks ATMs also but theyhave to bear some charges. For ICICI the charges are Rs.50 per transaction, forHDFC Rs.50- Rs.100 per transaction, for AXIS and IDBI Rs.50 per transaction.• Locker facility is available with all the banks. ICICI has a charge of Rs. 750 p.a.while other banks provide this facility for free.• Bank timings of all the banks are almost the same. HDFC provides Sunday bankingbut 2 hours banking is not provided by any of the banks.• The average balance of saving account is Rs.5000 and in case of non- maintenanceof this balance, the customer is charged. For ICICI the charges are Rs.300 perquarter, for HDFC it is Rs.150 – Rs. 500 per month, for AXIS it is Rs. 200 per monthand for IDBI it is Rs. 100 per quarter.• The cash withdrawal per day for ICICI customers are Rs.15,000, for HDFC is Rs.15,000, for AXIS is Rs. 20,000 and for IDBI is Rs. 25,000.83
  • • All the banks provide facilities like Multicity branch banking, phone banking,internet banking, mobile banking, national clearing, speed clearing and prioritybanking.• DMAT facility is provided by all the banks except IDBI.• Doorstep banking is provided by all the banks but AXIS and IDBI provide thisfacility only to its priority customers. Banks have their own charges for cash pickup,cheque pickup and cash delivery.Findings from primary data:-When we consider the demographic factors, the following are the findings:-• People falling under the age group of 20 years to 60 years constitute the majorproportion of customers of Multinational banks and private sector banks. Thepercentage is 66.• The customers of Multinational banks and private sector banks are basically fromservice class which constitute 47 percentage and business class which constitute36 percentage.• The majority customers of multinational and private sector banks have theirannual income above 2 lakhs and they form 76 percentage of the peoplesurveyed.When we consider the factors affecting banking habits of people, these are the findings:-• People rated location as an important factor. 89 percentage of the populationsurveyed were in favour of this.84
  • • Only 51 percentage people said that ambience is an important factor in selectinga bank while others believe that this factor does not really matter much as theyhardly have to visit bank.• Timings is again not considered as an important factor as people believe thatalmost every bank has the same timing. 58 percentage people supported thisfactor.• Same is the case with the products offered. People say that almost every bankoffer same type of products so only 64 percentage people rated this as animportant factor.• Information was rated as an important factor as people believe that they shouldhave the right information about the products and services that the banks offer.• Service is the highest rated factor. 99 percenatge of the people say that the kindof service the bank offers influences their decision to select a bank to a greatextent.When we consider the rating of banks both multinational an private sector bank, theseare the views of the customers:-Multinational banks• HSBC is the most rated bank among all the multinational banks and thecustomers are very much satisfied with the services provided by the bank. 94percentage of the people are satisfied with the services of this bank.• People rated Standard Chartered bank, ABN Amro and Citi bank as aboveaverage which means people form good opinion about these three banks andpeople in favour of these three banks formed 65 percentage ,62 percentage and70 percentage of the population surveyed. Customers of these banks are satisfied.Private sector banks85
  • • Customers carry a mixed response about the services provided by ICICI bankand 72 percentage of the people are in favour of the bank.• Customers of HDFC bank are not satisfied with the bank as they say they have towait in long queue and there is non availability of 3rdparty. 67 percentage peoplerated it as an average bank.• IDBI does not have much customers and moreover its customers are not satisfiedwith the services of the bank. 76 percentage people rated it as an average bank.Services provided by Standard Chartered bank and customer satisfaction:-• Customers holding savings account in this bank are very much satisfied and form45 percentage of the people.• But customers of current account, term deposit and credit cards are verydissatisfied. Customers satisfied with these products constitute only 7 percenatge,1 percentage and 21 percentage respectively of the population.• When the total population is considered, people who are already StandardChartered customers, among them 67 percentage people are satisfied with theproducts and services of the bank while others are dissatisfied and thisdissatisfied customer constitute basically customers of credit cards.86
  • 5.2 RECOMMENDATIONSThese are few recommendations which can help Standard Chartered Bank to stay aheadin the competition. Brand building: Standard Chartered needs to build a good brand image byproviding innovative products and top class services accordingly with theirproducts. Improve its Services: There are many people who were not too muchsatisfied with the services provided by Standard Chartered Bank. Theservices provided by the other multinational banks in India are much betteras compared with Standard Chartered, therefore Standard Charteredstrongly needs to improve its services in order to compete with the othermultinational and private sector banks in India. Standard Chartered Bank should install a number of offsite ATMs to makeits presence felt in area where it has low or no presence at all. Understand challenges that Standard Chartered Bank is facing from thecompetition and also analyze and understand the future prospects and use it87
  • to understand the opportunities and threats facing the business and thefactors driving success. Get insight into performing better in the market. Pinpoint growth sectors and identify factors driving change. Identify market and brand leaders and understand the competitiveenvironment. Identify the needs of the various segments of its consumers: For example, asenior citizen might opt for a higher-cost MNC bank simply because itoffers free home pick-up and delivery of even small-value cheques. Abusinessman would like a bank that offers a sweep facility.Recommendations – Credit CardsUnmet NeedsIt includes some benefits which are not currently being offered by the credit cardindustry and hence becomes an opportunity.Need for a customized Card for Internet transactions:Business is rapidly growing over the Internet so there exists a great need for a card thatis suitable for transacting safely and conveniently over the Internet. The growing numberof Internet users will provide a lucrative market for this product.Need for ‘Premium’ benefits:Even though the premium segment includes credit cards, there is a dearth of ‘premium’benefits under it. An example of these are Special airport Lounges. These benefits are88
  • available to the Indian consumer only when he goes abroad, but when he is in India, hedoesn’t get all the extra ‘premium’ benefits which are associated with Premium cards.Proliferation of ATMs:The credit card can be used by a customer to withdraw cash from an ATM. Thisrevolving credit facility also turns out to be a major revenue earner for the issuing bank(interest charges range from 1.99 % to 3 % per month). There are many ATMs in themetros but only a few in most non-metro cities. The lack of the ATMs doesn’t allow thecredit card to be used to its potential.5.3 CONCLUSIONService with a smile: in today’s banking sector, a customer will settle for nothing less.He realizes, somewhat belatedly, that he is a king. He demands from banks not justworld-class products and services, but a red carpet as well. His choice of one entity overanother as his principal bank is determined by considering service quality rather than anyother factor. He wants competitive loan rates on one hand and on the other he also wantshis loan or credit card application processed in double-quick time. He insists to bepromptly informed of changes in deposit rates and service charges, and he bristles with‘customer rights’ if his bank is slow to redress any grievance he may have. He cherishesthe convenience of impersonal internet banking, but he wants that when he is on a visitto the branch, he has full comfort of personalized behavior with human interactions andfacilities that make his banking experience pleasurable. In short, he wants a financialhouse that will not just clear his cheques and update his passbook but that the bank caresand for more than just as a customer. Therefore, he wants a customer-friendly bank.Service Quality89
  • The overall service standards of a bank is what makes a bank customer-friendly and israted for ease of opening an account, how courteous, accessible and knowledgeable itsstaffs are, transaction time taken for services, how innovative the bank is in introducingnew products and services, how proactively the bank informs customers about thechanges in deposit rates or service charges, how quickly it redresses grievances of itscustomers, how likely it is to retain customers, and how probable it is that its customerswill recommend the bank to others.Branch FacilitiesAny branch of a multinational or leading Indian private bank is no less than a plushcountry club. While many other banks, of course, have miles to go in this sphere, butthere is a growing realizations among them that offering apleasant banking ambience with comfortable seating, air-conditioning, restroom anddrinking water facilities and easy access to bank stationery makes a good business.ATM ServiceATM Service has automated the most common day-to-day banking transactions likecash withdrawal, cheque deposits and statement generation and has liberated customersfrom time wasting branch visits and surly staff.Banks are increasingly waking up to the merits of an expansive, glitch-free ATMnetwork. Banks are investing highly in technology (read newer machines), so they’ll befewer card rejects. And they’re entering into tie-ups with one another in order to sharetheir ATM network (for a nominal fee which the customer has to pay); which means thecustomer no longer has to bear the agony of having to stand in overlong queues at thebank’s ATMs.90
  • Market PotentialWith a growing national economy, the financial-sector reforms and a growing middleclass group, the Indian market offers huge potential for Standard Chartered Bank togrow and expand. The large and growing middle class population and increase indisposable incomes have created booming markets for housing, motor, televisions,computers, mobile phones and many other products, most of which require financing.SCB has been very effective in grasping this opportunity with its product and serviceofferings.The Road Ahead…for SCBAfter offering its 150 years of service to India, Standard Chartered Bank continues to becommitted to the country and optimistic in contributing to the Indian Financial Sector.The Standard Chartered Group considers India as one of its greatest economicopportunity in the 21st century and is proud to be so strongly positioned here. The Bankhas striving plans to transform its business in the country in the future and plans tofurther expand its operations across the country91
  • QUESTIONNAIRE1. Your criteria for choosing a particular bank:(Please tick the appropriate box, 1- lowest 2 -low 3- average 4 – highand 5 the highest)Rating ScaleFeatures1 2 3 4 51. Location2. Ambience3. Timings4. ProductsOffered5. Clarity ofInformation6. Service2. Rate the following banks on a scale of 1 to 5 of satisfaction level.(Please tick the appropriate box, 1 being the lowest and 5 the highest)Rating Scale1 2 3 4 593
  • Bank1.StandardChartered2. Citibank3. ABN Amro4. HSBC5. HDFC6. ICICI7.IDBI3. Any other facilities not provided by your current bank?__________________________________________________________4. Do you have relationships with other banks, if yes, please specify(a) Standard chartered Bank (b) ABN AMRO(c) HSBC (d) Citibank(e) HDFC (f) ICICI(g) IDBI (h)Others…………………………………...5. Type of services availed in the above mentioned bank.BankServicesSCB ABNAMROHSBC Citibank HDFC ICICI IDBI1.SavingA/c2.CurrentA/c3, TermDeposit4. Creditcards5. Loans6.Insuranc94
  • e7. LockerFor Standard Chartered Customers only1. What facilities are you availing in Standard Chartered Bank?a) Saving A/cb) Current A/cc) Term Depositsd) Credit cardse) Loansf) Insuranceg) Lockerh) Others………………………………………………………..2. Are you happy with the current services and products being offered atStandard Chartered Bank?a) Yes b) No3. How many times do you use ATM’s in a month?a) 1-4 times b) 5-10 timesc) more than 10 times d) NeverPersonal Details1.Name __________________________________________________2. Agea) Below 20 years b) 20 – 40 yearsc). 40 – 60 years d) Above 60 years95
  • 3. Sexa) Male b) Female4. Marital Statusa) Marriedb) Single5. Occupationa) Student b) Servicec) Business d) Others______________________6. Annual Incomea) Below Rs 2, 00,000 p.a.b) Between Rs 2, 00,000 & 5, 00,000c) Above 5, 00,0007. Contact Number/Email _______________________96
  • BIBLIOGRAPHY1. Internet Sites• www.google.com• www.economictimes.com• www.standardchartered.co.in• www.hsbc.com• www.abnamro.com• www.hdfcbank.com• www.icicibankom• www.indiainfoline.com97
  • 2. Magazines and Newspapers.• Economic Times• Business India• Business Standard• The Times Of India3. Books• Name of the author - Philip Kotler, Name of the book – Principles ofMarketing, Publisher – Asoke K. Ghosh, Year - 2006• Name of the author – Naresh K. Malhotra, Name of the book -Marketing Research, Publisher – Asoke K. Ghosh, Year - 20074. Product Manual, Standard Chartered Bank98
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