ACKNOWLEDGEMENT We are thankful to our teacher sir Ahmed Rafiq who assigned us this project and with the guidance of her we have completed it successfully.
DEDICATION:- We dedicate this assignment to our parents and our teacher sir Ahmed Rafiq who always helped us while the completion of this project.
EXECUTIVE SUMMARY We were given a final project related to the subject “Money, Banking & Finance” in which we had to visit a bank. The project was assigned by SIR Ahmed Rafiq, who is our course instructor. For this project, we chose Standard Chartered Bank and we met Mr. Shoaib Salahu Din-The Manager of Standard Chartered Bank, Gulberg branch. We collected all the information which was included in the contents of assignment. It includes types of accounts the bank offers, special accounts of the bank, loans, mortgages, interest rates, etc.
HISTORICAL BACKGROUND History :- The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863 and the Chartered Bank of India, Australia and China, founded in 1853.
Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.
Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.
Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama.
Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871.
THE STANDARD BANK
Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863.
Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.
Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices.
In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.
STANDARD CHARTERED IN PAKISTAN Standard Chartered Bank (Pakistan) Limited - A locally embedded international bank Standard Chartered is the largest international Bank in Pakistan. The Bank has been operating in Pakistan for over 140 years when it first established its operations in 1863 in Karachi. After the acquisition of Union Bank in September 2006, the new entity Standard Chartered Bank (Pakistan) Limited was incorporated in Pakistan on 30 December 2006 as a subsidiary of Standard Chartered PLC. The bank has a network of over 162 branches in Pakistan. Standard Chartered employs a workforce of over 9,000 employees in its Pakistan operations.
TYPES OF ACCOUNTS OFFERED BY THE BANK The Standard Chartered mainly offers the following account types: Saving Accounts Current Accounts Corporate Salary Account
1- SAVING ACCOUNTS The Standard Chartered bank offers the following types of savings accounts:
a- SAVING ACCOUNT Saving Account is the latest addition to Standard Chartered Bank Pakistan Limited’s ever increasing portfolio of products. This product combines a good rate of return, profit paid out on a six-monthly basis, and outstanding services offered by Standard Chartered Bank Pakistan Limited all-in-one.
The saving account can be opened with a balance of 25,000.
Standard Chartered is now online with all its 162 branches across Pakistan.
Our Customer Contact Center allows the customer to access his account information, make PO/DD's, transfer his money and does more with it, from anywhere in the country, just by placing a toll free call to the Contact Center.
Profit on Saving Account is on a minimum balance basis and is credited to the account every January and July.
b- BONUS SAVER ACCOUNT Standard Chartered introduces Bonus Saver - a savings account that gives you an opportunity to earn a high rate of return on your savings. Bonus Saver gives you a ‘bonus’ for saving. Earn upto 10% until you decide to reward yourself with a well deserved vacation, refurbishment of your home or just set it aside for a rainy day.
c- FLEX ACCOUNT The most flexible account ever for individuals who want more value from their salaries. Flex Account has no minimum balance requirement and add to it a host of other advantages to suit your needs.
Account accessible from 162 online branches across Pakistan.
d- MAHANA IZAAFA Mahana Izaafa is a unique Rupee Saving Account which combines a high rate of monthly profit, flexibility of withdrawal and convenience, all in one. The special tiering structure ensures a higher profit on higher deposits. It is the smart choice of the profit minded who demand more than just profit from their bank account. Today it is the preferred choice of thousands of satisfied customers including businessmen, salaried individuals, housewives, business houses and retirees.
Profit depends on balance, higher the investment higher will be the profits.
Your profit is credited to your Mahana Izaafa account every month.
2- CURRENT ACCOUNTS Following are the current accounts offered by the Standard Chartered. Current Account Basic Banking Account Foreign Currency Accounts Business Account
a- CURRENT ACCOUNT The current account can be started with the amount of 5,000.
b- BASIC BANK ACCOUNT Enjoy an unmatched combination of high returns and liquidity. In addition, our nationwide network of ATMs offers you 24-hour convenience in withdrawing your funds, ensuring that your money works for you, as you would like it.
Cash-handling fee is levied as per Schedule of Charges
d-BUSINESS ACCOUNT Take your business to soaring new heights with this account. Business Account provides efficient, accessible and convenient transactional capabilities of a world-class bank with highly competitive charges.
Offerings: (1) Chequebook (2) VISA debit card for Local Currency accounts.
3- corporate salary account The Standard Chartered Payroll Account allows you to streamline salary payments and provides world-class banking facilities that sets your employees free to bank at their own convenience – from office, home or anywhere else.
ADVANTAGES OF SALARY ACCOUNT Product Advantage:
Secure and hassle free employee salary transfer via Straight to Bank.
Access to Payroll information – both current & historical.
Access to Cash Management solutions via Corporate Bank.
Collection of account opening documents from the company premises.
Informing the company about the account opening status during on boarding.
After sales service on any issues on Payroll & personalized complaint handing
SPECIAL ACCOUNTS OF BANK Standard Chartered offers two special accounts. These are:
Transactional Convenience through the use of Wide Branch Network and Alternative Distribution Channels.
SAHULAT ONLINE ACCOUNT Sahulat Online Account has been designed to provide efficient, accessible and convenient transactional capabilities of a world-class bank with highly competitive charges. Features of Sahulat Online Account:
Charges: PKR 50 will be charged if Monthly Average Balance not maintained.
LOANS The Standard Chartered offers following types of loans: Ready cash Swift finance
1- READY CASH Standard Chartered's Ready Cash is an evergreen personal line of credit that gives financial power with unmatched freedom and flexibility. It is a credit line facility that provides a bank account maintained with Standard Chartered, from which customers can withdraw cash up to a pre-approved limit using their ATM Card or cheque book. Ready Cash Benefits:
2- SWIFT FINANCE Swift Finance is an efficient, accessible and convenient way of meeting all your short-term liquidity needs. With this, you don’t have to liquidate your long-term savings and investments set aside to meet your future financial goals. Features of Swift Account:
Financing up to 85% of your collateral amount
Avail facilities at the most competitive rates in the market
Markup charged only on the amount utilized and only for the number of days it is utilized.
Get your financing amount disbursed into your account in 7 working days.
MORTAGES Following are the mortgages offered by the Standard Chartered:
Home purchase Home credit
1- HOME PURCHASE Turn your dreams into reality with Standard Chartered Home Purchase. With Standard Chartered Home Purchase you can purchase residential ready property for the purpose of self-occupation. Features of Home Purchase:
Repayment tenor of 1 to 20 years.
Loan to value up to 80 % of the property value.
Minimum Net Income as low as PKR 20,000 per month.
Markup rates for Mortgage Loan for Salaried is 17.00% & Self-employed is 17.50% per annum.
To avail higher loan amount Standard Chartered Home Loans offers you the option of clubbing the income of your spouse and blood relatives.
Minimum age of the primary borrower should be >=25 years. Incase of co-borrower the secondary borrower should be either >=21 if income is being clubbed or >= 18 if income is not being clubbed.
2- HOME CREDIT Your home is undoubtedly your most treasured asset. That is why its maintenance and upkeep is of utmost importance. So while you invest in its renovation / extension, let us take care of all your expenses. This facility not only limits to home renovation / extension but also suffices for medical and educational needs. Features of Home Credit:
Loan amount of up to PKR 10,000,000 to fulfill your requirements
The bank always cover the backup of, money before giving the loan.
Check the reputation of the person who is taking the loan.
INTEREST RATES Through our network of product specialists, Standard Chartered provides global coverage of the full spectrum of interest rate and bond products to meet each of our clients’ needs. Interest Rates Risk: Standard Chartered offers a full range of interest rate derivatives products to meet your specific risk management needs, ranging from plain vanilla to exotic. Applications include solutions for interest rate and currency hedging and risk management, as well as strategies for yield enhancement. Product coverage extends to emerging markets, with trading in more than 30 currencies in 12 countries worldwide.
The Standard Chartered bank is charging very high interest rates. There should be reduction in the interest rates.
Like many other banks, Standard Chartered should also offer Student Account.
The account opening conditions are tough e.g., Standard Chartered opens saving account with the amount of 100,000. The conditions should be little polite.
On profit & loss account, Standard Chartered do not give loss.
CONCLUSION: We are thankful to our teacher for assigning us this project. It has helped us in understanding the banking concepts. By completing this project, we now know about all the contents of the assignment much more than before.
REFERENCES Standard Chartered, (2009) ‘History’ http://www.standardchartered.com/about-us/history/en/, 05 May 2009.
Standard Chartered, (2009) ‘Standard Chartered in Pakistan’ http://www.standardchartered.com/pk/personal/about-us/en/about-us.html, 05 May 2009.
Standard Chartered, (2009) ‘Credits’ https://www-uk.computershare.com/investor/formscatalogue.asp?bhjs=1&fla=0&cc=UK&lang=en&fla=1&issuerid=scukstc&theme=scukstc&bypass=true, 06 May 2009.
Mr. Shoaib Salahu Din (Manager - Standard Chartered Bank, Gulberg Branch).