1. A
PROJECT REPORT
ON
COMPARITIVE ANALYSIS OF STANDARD
CHARATERED BANK WITH OTHER MNC’S
BANK
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR
BACHELOR IN BUSINESS
ADMINISTRATION(GEN)
(SESSION 2007-2010)
Submitted By:
SHWETA
BBA (GEN) IIIrdSEM
Enroll no 0082151707
Submitted To:
Mrs.Deepmala Jain
CHANDERPRABHU JAIN COLLEGE OF HIGHER STUDIES
(AFFILATED TO GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY)
2. ACKNOWLEDGEMENT
I take this opportunity to express my profound sense of gratitude and
respect to all those who helped me through out the duration of this
project.
It gives me immense pleasure to acknowledge my indebtedness and
sense of gratitude to Mrs.Deepmala Jain (Project guide) for the
project under taken.
I do owe a deep sense of gratitude to all the faculty members of the
institute who stood with me and for their continuous support and co–
operation during the project. They too have contributed in no mean
amount towards the success of my endeavors.
SHWETA
0082151707
2
3. CERTIFICATE
This is to certify that the project entitled “COMPARITIVE
ANALYSIS OF STANDARD CHARATERED BANK WITH OTHER
MNC’S BANK” submitted by SHWETA; Enroll no.0082151707 has
been done under my guidance and supervision in partial
fulfillment of Bachelor of Business Administration.
The working analysis mentioned in this report has been undertaken
by the candidate himself and necessary reference has been
recognized and acknowledged in the text of the report.
MRS.DEEPMALA JAIN
(Project guide)
CPJCHS
3
4. 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 1990’s
• Standard chartered Today
1.2 SWOT Analysis :
• Strengths
• Weaknesses
• Opportunities
• Threats
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5. 1.3 Analysis
• Questionnaire
• Sample size
• Analysis of information
Chapter 2
Services
2.1 services provided by standard chartered
2.2 Additional Services
Chapter 3
Account
3.1 Maintaining account with
Standard chartered
3.2 Comparison of saving accounts
With other banks of India
Conclusion
Recommendations
Bibliography
5
7. INTRODUCTION
Standard Chartered is the world’s leading emerging markets
bank. 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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8. INDUSTRY PROFILE
The Indian banking can be broadly categorized into nationalized
(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 have acquired 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 banking practices
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 countries i.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 focused primarily 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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9. 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 applicable like 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 the economy 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 continued to 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 private sector bank grid also includes 24
foreign banks that have started their operations here. Under the
ambit of nationalized banks come the specialized banking
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10. institutions. These co-operative, rural banks focus on the areas of
agriculture, rural development, etc. unlike commercial banks
these co-operative banks do not lend on the basis of prime
lending rates. They also 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-operative
banks 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.
NEW GENERATION BANKING
The liberalized policy of government of India permitted entry
to private sector in the banking; the industry has witnessed the
entry 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 and
services. 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
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11. 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 of the banks in this
category are concentrated in the high growth urban 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 integrates
strategy 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 has translated into lower
deposit mobilization cost and higher margins relative to public
sector banks.
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12. BUSINESS OF BANKING
Banking, in an additional sense is the business of accepting
deposit 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:
1. Issuing Demand Draft and Travelers Cheque
2. Collection of Cheque, Bills of Exchange
3. Safe Deposit Lockers
4. Issuing Letter of Credit & Letter of Guarantee
5. Sale and purchase of Foreign Exchange
Custodial services
6. Investment services
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13. 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 their
lending 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 their money by deploying some %age
of deposits in statutory reserve like SLR & CRR.
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15. VARIOUS TYPES OF DEPOSITS
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
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16. 10th
and the last day of the month. The interest 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 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 of
5years. 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
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17. 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
with the difference that the interest is payable every quarter is
compounded 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.
SCB’s Deposit Products
Standard chartered bank offers the following deposit products in
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 amount withdrawal.
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18. 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 a minimum 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
customer’s request the bank sends representative to the
residence or work place of the customer to complete the account
opening formalities. After opening the account, room service is
provided for picking up the cheque to be deposited in the
customer’s account from any place.
Similarly, customer can request to deliver cash to self up to
20,000 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
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19. 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 the
customer 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 Delhi branches.
This virtually facilitates the customer to conduct banking at any
of these cities.
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20. ♦ 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 draft and 20 pay orders per quarter.
♦ Other Free Services : Cheque book, Certificate
of Balance, 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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21. OBJECTIVES
The main objective of this project report is to make an analytical
study of Standard Chartered Bank.
It includes the following:
♦SWOT Analysis
♦Services
♦Bank’s Savings Account
♦Comparison of the savings account with other
leading bank’s of
India.
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23. 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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25. HISTORY OF STANDARD CHARTERED
Standard Chartered is the worlds leading emerging markets bank
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, Australia and china.
Of the two banks, the chartered bank is the older having 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 world’s 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, Asia and Africa and to reap the handsome
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26. 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 chartered’s
unbroken presence in china. The following year the chartered
bank opened a branch in Hong Kong and an agency was opened
in Singapore, a privilege to continue to exercise up until the end
of the 19th
century. Over the following decades both the standard
bank and the 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- Kong’s bank notes.
26
27. STANDARD CHARTERED IN THE
1990’s
Even within this period of apparent retrenchment the standard
chartered expanded its network, re-opening in Vietnam in 1990,
Cambodia and Iran in 1992, Tanzania in 1993 and Myanmar in
1995. 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 now offers
full banking services in Colombia, Peru and Venezuela. In 1999,
standard chartered acquire the global trade finance businesses of
union bank of Switzerland. This acquisition makes 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 and agreed terms to acquire 89% of
the share capital of metropolitan bank of Lebanon.
27
28. STANDARD CHARTERED TODAY
Today standard chartered is the world’s leading emerging
market’s 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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29. 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 – SCB’s 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
to good managers
29
30. 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
30
31. ♦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
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
31
34. Services provided by
standard chartered
Through the network of over 500 offices in more than 50
countries, standard chartered offers personal financial solution
relevant 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 150 years 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.
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35. ♦Insurance.
♦Deposits and Retail services
♦Retail FX products.
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-free
experience, 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
interest rates.
♦Low EMI (equated monthly installments).
35
36. ♦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.
Personal loans
Standard Chartered bank helps the customer to de in control of his/her
own finances. Personal loans, without any guarantees or collaterals, are
available 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 child’s college education, or simply wish
to have a standby line of credit for unforeseen expenses, Standard
Chartered Bank’s 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, and without any
collateral or mortgages.
Unique features:
36
37. ♦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 cards
Standard Chartered credit cards provide financial flexibility,
worldwide acceptance, and round- the- clock convenience.
Benefits:
♦Welcomed at the largest number of
merchant outlets across the world.
♦Revolving credit facility, allowing repaying
card outstanding over time, at a
convenience.
37
38. ♦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
and security.
♦Attractive rewards programs.
♦Affinity and co branded credit cards that give
additional benefits from our partners.
♦World-class service assistance and 24-hour
customer help line.
3. PRIORITY BANKING
Experience new Standards in banking. And lead a life of privilege
and preferred financial solutions tailored perfectly for you – with
priority banking from Standard Chartered.
38
39. 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 wealth by
offering individual attention as well as international and
investment opportunities to meet current and future needs.
Standard Chartered bank priority banking is created specifically
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.
39
40. ♦Preferential pricing on our various products.
♦Entitled to exclusive benefits.
♦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 allocation
plan to realize financial aspirations.
40
41. 5. PERSONAL INVESTMENTS
Standard Chartered is the leading independent distributor of unit
trusts and mutual funds in Asia. Because they don’t actually
manage their own investment funds, they are absolutely objective
in fund evaluation process. Bringing unmatched 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 countries
around the globe, they can help to make the right investment
decisions. Using a unique risk evaluation to gauge the level of
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.
41
42. ♦Trained investment services counselors.
♦Sophisticated research franchise.
♦Impartial and unbiased analysis on options
best suited.
♦Tailor made investment plans suited to risk
taking ability.
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 puts
us 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
42
43. Deposits
Standard Chartered offers a wide array of deposit products in both
local and foreign currencies to help to earn competitive interest
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.
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.
♦Traveler’s cheques.
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44. 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 on
opportunities in the currency markets.
Some of the Retail FX products include:
♦FX Margin Trading.
♦Currency Trading.
♦Premium Currency Deposit.
♦Principle Protected Currency Deposit.
ADDITIONAL SERVICES
1. INTERNET BANKING
You’re 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.
44
45. 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.
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.
45
46. ♦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. ‘Mobile and
E-mail Alerts’ service is designed just for that.
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 don’t have
to pay the 2.5% surcharge levied on most credit or
debit cards.
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47. ♦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 ATM network.
♦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.
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.
What’s more, use ATM card at any of the 70 ATM centers across
the country.
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48. 6. CREDIT CARD HELP-LINE
As part of commitment to meeting all needs, Standard Chartered
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 doesn’t have to worry about last minute
payment rush, since this entire process happens through the
Reserve Bank of India electronic clearing mechanism, customer
can enjoy the advantages of ECS.
8. FAX BANKING
It’s 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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52. DEMAND DEPOSITS
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 ATM’s 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 debit card
that provides these and a host of other exciting benefits.
Unique features
There are several unique features about the standard chartered
bank’s aXcess Plus account, each designed to provide the most
convenient banking experience can ever get!
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53. ♦Free aXcess to cash at over 1800 ATM’s 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 select merchant
outlets etc.
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54. 2 –in -1 Account
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.
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55. 2-in-1 Account interest rates
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%
3 months – less than 6 months 4.00%
6 months – less than 9 months 4.25%
9 months – less than 12 months 4.25%
12 months – less than 18 months 4.25%
18 months – less than 24 months 4.25%
24 months – less than 36 months 4.25%
36 months – less than 48 months 4.50%
48 months – less than 60 months 4.50%
60 months 4.50%
Above interest rates are offered by standard chartered bank and
are subject to change without prior notice. Deposits of Rs. 15 lakh
and above may be opened for tenors starting 7 days.
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56. Procedure:
On opening a 2-in-1 account two accounts are opened – an FD
and a transaction account .The FD earns the high interest rates
and 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 rate you 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:
♦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
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57. ♦Free accident hospitalization cover of Rs. 50,000
for the primary account holder
♦Free access to accounts through 5500 ATMs in the
country at all 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 every
month
♦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 bank’s ATMs in India through the
visa ATM network. Unlimited free transaction at all
SCB’s ATM.
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58. CURRENT ACCOUNT
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.
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59. Term deposit rates:
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%
3 months – less than 6 months 4.00%
6 months – less than 9 months 4.25%
9 months – less than 12 months 4.25%
12 months – less than 18 months 4.25%
18 months – less than 24 months 4.25%
24 months – less than 36 months 4.25%
36 months – less than 48 months 4.50%
48 months – less than 60 months 4.50%
60 months 4.50%
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61. CONCLUSIO
N
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 of
banking products and services in the market today. Managing a
growing business demands most of your time and energy. That is
why working with the right bank can help one’s business sail
more smoothly and Standard Chartered Bank helps in doing that
as it understands today’s business requirements.
The bank provides the right kind of services and accounts at the
right 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 countries making
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
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62. funds and a portfolio management account that matches your risk
profile and investment goals.
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 licensed to
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 in rural
areas, or to make loans to the agricultural sector.
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64. 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 made
whenever 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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65. 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
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66. ♦Local channel advertisements (cable TV
scrolls)
♦Advertisements in news and business
channels
Face to face
♦Through personal interaction of marketing
executives.
♦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
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67. 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
Educational bodies
♦ Sponsoring events in schools and
colleges
♦ Meeting the top management for
opening salary account and fee
payment system of the students
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68. 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
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
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69. deposits. The rates of interest, which they provide on fixed
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 lower the 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 as comfortable
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 new services
to attract more and more consumers should carry on this tradition
further.
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70. 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 segment need 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 consumer’s 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 the other hand the second type of
relationship is stronger, this is the corporate client that requires
different setup all together.
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 beautiful
manner and hanged on the walls of the branch where customer
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71. 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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