an investigation into consumer banking division of standard chartered bank, bangladesh

8/9/2019 An Investigation into consumer Banking Division of Standard Chartered Bank, Bangladesh

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Section –I

INTRODUCTION

1. Introduction

1.1 Origin of the Report:

An Investigation into the Consumer Banking Division of Standard Chartered Bank in Bangladesh

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This Internship Report has prepared as a requirement for the completion of the BBA

Program of School of Management and Business Administration, Shahlalal Universit of

Science ! Technolog"

Since the BBA program is an integrated, practical and theoretical method of learning, the

students of this program are required to have practical e#posure in an $ind of %usiness

organi&ation as last term of this course" The primar goal of internship is to provide an

on'the'(o% e#posure to the student and an opportunit for translation of their theoretical

conceptions in real life situation"

After the completion of BBA program, I )as placed in Standard *hartered Ban$, Slhet

%ranch )here m organi&ation supervisor )as Mr" Rahat Shams, Branch Sales ! Service

Manager, S*B Slhet Branch, and m institution supervisor )as Mr" +a&le lahi

Mohammad +aisal, -ecturer, .epartment of Business Administration, Shah' /alal

Universit of Science ! Technolog" The duration of m organi&ational attachment )as

three months, starting from /anuar 01, 002 to March 01, 002"

This report covers the topic 3An Investigation into consumer Baning Division of

!tandard Chartered Ban" Bang#adesh4"

1.$ O%&ective of the Report:

The report focuses on t)o parts" The are5



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'rimar( O%&ective

The main o%(ective of the report is to ma$e an investigation on the various

service dimensions provided % Standard *hartered Ban$6s *onsumer

Ban$ing .ivision in Bangladesh"

!econdar( O%&ective

Briefl o%serve the %an$ing environment of Bangladesh

Identif the ma(or strengths of the S*B6s customer service division"

#plore the tpes of product ! service provided % S*B

Provide pro%a%le solutions for the improvement of the customer service

1.) *ethodo#og( of the Report:


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All the information incorporated in this report has %een collected %oth from the primar

sources and as )ell as from the secondar sources" The details of these sources are

highlighted in the follo)ing"

1.).1 'rimar( !ource of Data:

*ollecting data directl from the practical field is called primar source of data" The

methods that )ere used to collect the primar data are as follo)s5

• .iscussion )ith officials of S*B

• +ace to face conversation )ith the clients"

1.).$ !econdar( !ources of Data:

The secondar data has %een collected from different pu%lication of Standard *hartered

Ban$" To clarif different conceptual matters, Internet and different articles pu%lished in

the (ournals ! maga&ines have %een used" The Secondar Sources are5

• Annual Reports of S*B

• 8ther pu%lished documents of S*B

• Internet

• 9e)sletter of S*B

• Periodic Bulletins pu%lished % the Bangladesh Ban$

• :arious %rochures on the products and services offered % the SCB

• Pu%lication of Bangladesh %an$


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1.+ !cope of the !tud(:

In this paper, I too$ Standard *hartered Ban$, as ground'field, the leading foreign %an$

in our countr" It has %een operating here since 1


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1., -imitations:

Data Confidentia#it(

Information in the %an$ is confidential ! critical" The main %arrier in preparing this

report )as data confidentialit" Though I sa) the Ban$6s internal procedure that is %eing

used in processing and evaluating an documentar operation, I )as advised not to

disclose that in m internship report"

Time -imitation

:er limited time )as one of the most faced o%stacles )hile preparing this report" The

duration of internship is onl three month, )hich is ver insufficient to understand a

%road sector li$e %an$ing" .ue to time shortage, details of man aspects of the services of

S*B have to ignore in this report"

'#ace -imitation

Since I )as placed as an intern of Slhet %ranch ?*onsumer Ban$ing .ivision@, I )as not

a%le to venture into man departments )hich are conducted centrall from .ha$a"

Information a#idit(

.ata )as collected through o%servation and discussion )ith %an$ personnel" Statistical

analsis of the data has not %een done" That6s )h the findings are not statisticall

validated" The report is %ased on data of the previous ear and the %eginning of the

current fiscal ear as the latest data )as not availa%le immediatel"



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Section –II

!TANDARD C/ART0R0D BAN: -0ADIN2 T/0 3A4 IN A!IA" A5RICA 6

*IDD-0 0A!T


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$.1 /istorica# Bacground of !CB:

The name Standard *hartered %asicall comes after t)o %an$s )hich merged in 17" The $e person %ehind the *hartered Ban$ )as a Scot, /ames Cilson"

De started 3The conomist4, )hich is still one of the )orldEs pre'eminent pu%lications

and during his earl das he also made his fortune in -ondon ma$ing hats" De visuali&ed

the advantages of financing the gro)ing trade lin$s )ith the areas in the east, )here none

of the other financial institutions )ere present at that time and as such the *hartered

Ban$ opened t)o %ranches in 1=>= in *hennai and Mum%ai" The same ear the %an$

opened another %ranch in Shanghai" The follo)ing ear the *hartered Ban$ opened a

%ranch in Dong Fong and an agenc in Singapore" In 1=1 the Singapore agenc )as

upgraded to a %ranch )hich in turn financed the rapidl developing ru%%er and tin

industries in Malasia" In 1= the *hartered Ban$ )as authori&ed to issue %an$ notes in

Dong Fong" Su%sequentl it )as also authori&ed to issue %an$ notes in Singapore, a

privilege it continued to e#ercise up until the end of the 1


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Fong for J 1"7 %illion" These acquisitions demonstrate Standard *hartered Ban$6s firm

commitment to the emerging mar$ets"

Standard *hartered emplos 77,000 people in over >>0 locations serving > countries

and territories across the Asia Pacific region, South Asia, the Middle ast, Africa, the

United Fingdom and the Americas" It is one of the )orld6s most international %an$s )ith

emploees representing =0 nationalities"

Standard *hartered serves %oth *onsumer and Cholesale Ban$ing customers, is )ell

esta%lished in gro)th mar$ets and aims to %e The Right Partner for its customers" The

Ban$ is trusted across its net)or$ for its standards of governance and its commitment to

ma$ing a difference in the communities in )hich it operates"

The group provides consumer'%an$ing services to individuals and small to medium si&e

%usinesses, and offers Cholesale Ban$ing capa%ilities to corporate and institutional

clients" Cith 1>0 ears in the emerging mar$ets the group has unmatched $no)ledge and

understanding of its customers in its mar$ets" Standard *hartered recogni&es its

responsi%ilities to its staff and to the communities in )hich it operates" Their 1>0 ears of

histor gives them a deep %etter understanding of their mar$ets, their customers, and the

local communities in )hich the operate" It is a strong platform for future gro)th"

Standard *hartered is holding leading positions in dnamic mar$ets" The are in some of

the )orld6s fastest gro)ing mar$ets including he United Ara% mirates, India, *hina, and

the mar$ets of South Asia" The are present in man of their mar$ets for several


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generations and have %ecame a trusted partner to %usinesses and individuals" In other

)ords, the are trusted and )ell respected provider of financial products and services"

The have %uilt up an envia%le $no)ledge of local mar$ets in Asia, Africa, the Americans

and the Middle ast" In man cases, the have had a presence for more than a centur"

Their first t)o %ranches )ere in *alcutta and Shanghai and )e have %een operating

continuousl in *hina for the last 1;; ears"

$.) 2#o%a# presence of !tandard Chartered Ban:

Standard *hartered Ban$ has its prominence presence in total of ;= countries5

Africa Asia 'acific -atinAmerica

*idd#e 0ast 6!outh Asia

U 6 U!A

Bots)ana

*ameroon

Gam%ia

Ghana

Fena

Sierra -eon

South Africa

Tan&ania

Uganda

am%ia

im%a%)e

Australia

Brunei .arussalam

*am%odia

*hina

Dong Fong

Indonesia

/apan

-aos

Macao

Malasia

Manmar

Philippines

Singapore

South Forea

Tai)an

Thailand

:ietnam

Argentina

Bra&il

*olom%ia

Me#ico

Peru

:ene&uela

Bahrain

Bangladesh

India

Iran

9epal

8man

Pa$istan

atar

Sri -an$a

UA

+al$land Islands

/erse

UF

USA

Table: Global presence of Standard Chartered Bank (Source: Internet)


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*A': 2#o%a# 'resence of !CB

$.+ 'resent !ituation of !CB:


1

United States of America (4)

Bahamas(1)

Brazil(1)

Falkland Islands(1)

Sierra Leone(1)

Gambia(5)

Ghana(!)

"ameroon(#)

Bots$ana(15)

So%th Africa(1) &imbab$e(44)

&ambia(14)

U'anda(1)

ena(#1)

United in'dom(*+)

,erse(1)

-atar(1)

Bahrain(5)

UA.(+)

/man(1)

"hina(15)

0aca%(1)

on' on' (*!)

2ai$an()

So%th orea(1)

,a3an(1)

hili33ines(4)

2hailand()

0alasia(#5)

Sin'a3ore()

Br%nei(15)

Indonesia(5)

A%stralia (1)

akistan(+)

Sri Lanka(#)

India(*)

e3al(1)Ban'ladesh(5)

6ietnam()

"ambodia(1)

Iran(1)

er% (+)2anzania(#)

() %mber of /7ces0anmar(1)

Laos (1)

"olombia(1#)

0e8ico()

Ar'entina(1)

18

6enez%ela(4)


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Glo%all, the $e resources of S*B include5

A net)or$ of over 00 offices in >0 countries"

A staff of a%out 77000 people managing assets of around ;2 %illion pounds

Standard *hartered Ban$6s international %usiness in Personal Ban$ing, *orporate

Ban$ing and Standard *hartered Mar$ets are its special strengths"

Standard *hartered Ban$ also maintains correspondent6s relationship )ith over

00 %an$s in 1>2 countries around the )orld"

$., 2#o%a# !trateg(:

The glo%al strategies of Standard *hartered Ban$ are5

To %uild and gro) strong %usinesses in ast and South ast Asia' the Asia Pacific

Region"

To enhance historical position in the Middle ast and South Asia region"

To concentrate operations in those activities that support Standard *hartered Ban$6s

remar$a%le franchise in ne)l industriali&ed and emerging mar$ets"

$.9 Operation of !tandard Chartered 2roup:

Standard *hartered is an emerging mar$et, %an$ )ith a strong presence in Asia, the su%'

continent, the Middle ast, Africa and in -atin America" The are a disciplined

commercial %an$ focused on their core %usinesses of *onsumer Ban$ing, *orporate and

Institutional Ban$ing and Treasur" Standard *hartered Ban$ is regulated % the Ban$ of

ngland and is a clearing %an$ in the United Fingdom" The head office of the group is


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located at Standard *hartered P-*, 1, Alderman%ur Square, -ondon, UF" The group

operates through more than 00 offices in over >countries and has over 77000 people

managing assets of over ;2 %illion pounds" In 1


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There are 7>0 %ranches under this division" This division provides services in ;

countries" The services provided % this division are International Trade Management,

Institutional %an$ing, Treasur, *ustod and *ash Management"

$..+ 2#o%a# Custodia# !ervice:

There are 12 offices under this division and a%out


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Throughout Standard *hartered Ban$6s net)or$ of more than 00 offices in over ;0

countries, it is ver )ell positioned to provide a )ide range of services to institutional

clients5 commercial, merchant ! central %an$sK %ro$ers and dealersK insurance

companiesK fund managers and others" 8ffices of emerging mar$ets of Asia, Su%'

Saharan, the Middle ast and -atin America are complemented % the %ranches in the

developed countries such as USA, UF and /apan and %an$6s mem%ership of the clearing

sstems in those countries" The Institutional %an$ing group has a net)or$ of offices in >

countries throughout Asia, 9orth America, urope, Africa and The Middle ast"

$. .; 2#o%a# 0#ectronic Baning:

lectronic Ban$ing Provides various tpes of support through a )ide range of operating

sstems, s)eeping transaction accessories )ith the provision of reporting features or

other special functions"

$.; 0 2rind#a(s %( !tandard Chartered:


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The acquisition of Grindlays Bank from the ANZ Banking Group by the

Standard Chartered Group on 1st ctober !""" #as opportunity

dri$en% &t has gi$en Standard Chartered an opportunity to e'pand into

ne# areas #here it #as not operating at all% (oreo$er) buying

Grindlays from ANZ no# propels it from number *$e to number one

among international banks in &ndia) #ith some e'tra footholds in the

(iddle +ast% &n addition to that) at 1%, bn -%S dollars) it is hard to

complain that Standard Chartered has o$erpaid% The *nancial ease is

less compelling for ANZ shareholders) as there are ad$antages to

getting out of a strategically peripheral business%

This acquisition of Grindlays Bank has added .""" employees and /

countries to Standard Chartered0s e'isting net#ork of !)"""

employees and ."" o2ices in 3" countries% The end result is that

Standard Chartered) #hich #ent into the 144 Asian Crisis #ith

strong business in 5ong 6ong) Singapore and (alaysia) emerges #ith

additional core markets in &ndia and Thailand% (oreo$er) the deal has

made Standard Chartered the largest foreign bank by assets in &ndia)

7akistan and Bangladesh and the second largest in Sri 8anka and the

-nited Arab +mirates% The bank had been seeking to e'pand in the

region since the end of the Asian economic crisis) and has *nally

become successful in its e'pansion%


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$.;.$ Ac=uisition of orea 5irst Ban:

S*B has most important strategic step this ear has %een the acquisition of Forea +irst

Ban$ ?F+B@" S*B has made a good start on integration % addressing follo)ing areas5

Aligning %oth management and governance

Integrating t)o cultures H and this includes %uilding productive )or$ing

relationships )ith $e sta$eholders

#panding the product range at F+B, and moving quic$l and effectivel to %ring

ne) products to the mar$et"

2!"!# Compan( Image and -ogo

Standard *hartered Ban$ is a solid, for)ard loo$ing, modem foreign %an$ )ith a long

record of sound performance" The effort that Standard *hartered Ban$ ma$es in order to

portra the Ban$ as a %rand image is ver strong and successful" The general image of

Standard *hartered Ban$ is that it is 3Trust)orth, efficient, helpful and committed"4 The

logo of the %an$ depicts the merger of t)o %an$s"


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Section –III

!TANDARD C/ART0R0D BAN IN BAN2-AD0!/


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).1 !tandard Chartered Ban in Bang#adesh:

The *hartered Ban$ opened in *hittagong in 1 Branches in *hittagong

• 1 Branch in Fhulna

• 1 Branch in Slhet"

• 1 Branch in Bogra


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Branches of S*B all over the countr5

The S*B )ith its 1 %ranches and = ATM %ooths across Bangladesh has emploed more

than 00 people" The acquisition has ena%led Standard *hartered Ban$ ?S*@ to access

>00,000 ne) customer and ;0 %ranches in India, and this made them one of the %iggest

%an$ in this region" After acquisition, Grindlas Ban$ is a part of Standard *hartered

Group" The Ban$ presentl has 1= outlets in > cities serving over 1,>000 customers"



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Com$arison in %erms of &e$osit

Amon' %he (orei'n Banks

Credit

Agricole

17%

SCB

34% AMEX23%

OTHERS

4%HSBC

22%

Credit Agricole

SCB

AMEX

HSBCOTHERS

Figure: Co!parison in ter!s of deposit a!ong the foreign banks"

Source: 888.standardchartered.com

).$ !tandard Chartered Ac=uires American 0, Standard *hartered formall announced that it has signed an agreement to

acquire the commercial %an$ing %usiness of American #press Ban$ -imited in

Bangladesh" +inall on 71 /ul 00>, 8sman Morad, *hief #ecutive 8fficer of Standard

*hartered Ban$ Bangladesh and amar Dussain, Senior *ountr #ecutive of American

#press Ban$ -td, signed the documents for their respective organi&ations on the

completion of the purchase process follo)ing relevant statutor approvals"


7

http://www.standardchartered.com/http://www.standardchartered.com/


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8ver a three'month transition period ending 71 8cto%er 00>, all the assets and lia%ilities

of American #press, including customer deposits and loans, )ill %e transferred to

Standard *hartered" It is planned that American #press )ill cease to operate as a

commercial %an$ in Bangladesh )ith effect from 1st 9ovem%er 00> and all its %ranches

and cash %ooths )ill %e converted to the Standard *hartered %rand and operating

platforms on such date"

The net)or$ of S*B engages itself for providing %est qualit %an$ing service in retail,

commercial and corporate %an$ing segments" The countries top nterprisesK

Multinational, -ocal *orporation and +inancial institutions are served % S*B" Cith total

asset %ased of B.T 12"> %illion and annual turnover of B.T 1"2= %illion, S*B in

Bangladesh is among the top performing multinational %an$"

).) Achievements Of !tandard Chartered Ban in Bang#adesh:

Since its inception, Standard *hartered Ban$ created a )ell'earned reputation among the

%an$ing sector % providing e#cellent services to its customers" As a result )ithin these

fift ears it %ecomes the leader of foreign %an$ing institution across the countr" The

reason %ehind its success and popularit is the innovative techniques and the e#cellent

)or$ force" S*B is al)as front'runner adopting in an latest technolog in the )orld"

Because it %elieves that innovative technolog is a $e asset for the future of %an$ing"

8ur strateg is to invest in those sstems that )ill ena%le them to upgrade and enhance

financial services" Initiatives include the spreading of high qualit transaction processing

across the GroupK the use of )or$flo) technologies such as electronic imagingK the

introduction of state'of'art *ash Management and trade productsK and full automated

%ranch services" The are also harnessing technolog to improve our ris$ management

sstem and the internal process for sharing information, thus solving %usiness pro%lems

and meeting customer needs in the first moving mar$ets"


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Chile Standard *hartered Ban$ in Bangladesh is et to %e at forefront of man of these

developments the are alread recogni&ed as the technological leader in the %an$ing

sector of Bangladesh for their follo)ing achievements5

Standard *hartered Ban$ is the onl %an$ )ith ; hours automated Phone'

Ban$ing service"

State H of H art ATM net)or$ running on unique platform

Usage of optical storage for retrieval of records on customer6s request"

8n'line real'time connection among all %ranches"

+ull'fledged %ac$'up data center support"

8nl %an$ in the countr to use inter'cit :SAT lin$"

8nl Ban$ using automated mailing sstem"

SCI+T communication for pament transfer"

'mail service net)or$ amongst all the %ranches"

Standard *hartered Ban$ recogni&es their responsi%ilit to invest in communities6 )orld

)ide not (ust as a moral dut, %ut %ecause the $no) the are inter'dependent )ith the

communities in )hich the operate" The %elieve that investing in the )ell fare of the

communit is a )orth)hile cause for their shareholders"

The are active in their communit )or$, identifing the causes the )ish to support

toda" Standard *hartered Ban$ is the corporate sponsor of the oung -earner6s *enter,

initiated % the British *ouncil in .ha$a and *hittagong and the are involved in a fresh

Cater +or Slum Areas pro(ect )ith a ma(or a 9G8" These fit into the Group Sponsorship


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priorities of outh, health, and education" The also invest in their industr training local

%an$ers %oth in Bangladesh and a%road to encourage gro)th in services, product

development, and mar$et ields"



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Section –I"

!0RIC0 6 OR2ANI>ATIONA- !TUCTUR0 O5 !CB

+. !ervice 6 Organi7ationa# !tructure of !CB:

There are different divisions for targeting different tpe of customers" Mainl consist of

t)o divisions, that is *onsumer Ban$ing .ivision ?* B@ and other is *orporate Ban$ing

.ivision named *orporate and Institutional Ban$ing ?* ! I@"


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products are onl served to the corporate clients of the %an$, and those are mostl

local corporate, large and local corporations, multinational national companies"

Companies Banks and other

Financial Institutions

Figure #: The $elationship beteen $especti%e

Customers to ifferent e$artments of SCB

Source: SCB &fficial 'ocu!ent


<

Consumer BaningCorporate 6 Institutiona#

Baning

Treasur(


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This focus allo)s the %usiness to develop an in'depth understanding of the %an$s

customer6s evolving requirements" This in turn ena%les S*B to develop the products and

services that help them to stand out from the competition" Treasur provides support to

the customers of %oth these %usiness and develops customers ?%oth individual and

organi&ational@ of its o)n"

+.1 The Division of !CB Bang#adesh:

The %an$ is divided into several divisions and %usiness units, )hich are also further su%'

divided" The divisions are mainl %ased on some service lines designed for and provided

to targeted customers, other divisions and units are there to support the %usiness activities

of the ma(or service %ased divisions" The follo)ing is the list of the divisions of S*B in

Bangladesh" 9ote that the divisions are little different compared to the ma(or areas of the

Group"


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+.1.1 *a&or Business Units:

5

5igure: Ban$ing Services of STA9.AR. *DARTR. BA9F


71

Baning !ervices of !tandard Chartered

Ban

Corporate

Baning

Consumer

Baning

Corresponde

nt Baning

!ervices:

N Personal Ban$ingN *onsumer +inanceN *redit *ards

!ervices:

N 8peration of Accounts over Phone

Services5

N Merchant Ban$ingN *ommercial Ban$ingN Institutional Ban$ing

'hone

Baning

'roduct:

@ Trade +inance

N -etter of *reditN BidL

PerformanceBonds

N Cor$ing*apital -oans

'roduct:

N *heque PurchaseN GuaranteeN Ris$ #posure

!ervices:

N Inter Ban$ Transaction

'roduct:

@ Investment ManagementN Cage arner6s

SchemeN -oc$ersN .eposit Services

'roduct:

N Account BalanceN +und Transfer


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The trade finance of Standard *hartered Ban$ ta$es care of the commercial activit

related issues, particularl those related to import and e#port finance services" Some of

the services are5

Trade finance facilities including counseling, confirming e#port -L*s and issuing of

import -L*s, %ac$ed % its international %ranch and correspondent loan net)or$ Bond

and Guarantees Pro(ect finance opportunities for import su%stitution and e#port oriented

pro(ect

+.1.1.ii Treasur( Division:

The foreign e#change and mone mar$et operation of the Standard *hartered Ban$ in the

)orld is e#tensive" #otic currencies happen to %e one of its special areas of strength" A

; hour'service is provided to customers in Bangladesh through the Ban$Es net)or$ of

dealing centers placed in the principal of the )orld" The Ban$Es treasur speciali&es in

offering solutions to those )ho )ish to manage interest rate and currenc e#posures that

result from trade, investment and financing activities of other dnamic economies of the

region" Treasur operations are developed in line )ith changing mar$et conditions to

provide the %est services to its customers" According to BA+.A ?Bangladesh +oreign

#change .ealers Association@, Standard *hartered Ban$ presentl controls ;O of the

local foreign e#change mar$etEs traded volume"


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+.1.1.iii 5inancia# Institution Department:

+inancial Institution .epartment ?former Institutional Ban$ing@ is a speciali&ed %an$ing

unit of Standard *hartered, providing products and services to the specific needs of other

%an$s and financial institutions" It assists the local %an$s % ta$ing care of their cross'

%order %usiness through the )orld)ide Standard *hartered Ban$ net)or$ing over ;0

countries" It offers various services li$e -L* *onfirmation, 9egotiation, Inter and intra

Ban$ Guarantee, -ocal Bill .iscounting, -L* Advising, -L* Transfer, -L* amendment

advising, Reim%ursement Underta$ing and Authorities, +und Transfers, #port proceeds,

B.T .raft .ra)ing, International Paments ?T T6s@, Account Services ?:ostro Account

Management@

+.1.1.iv Consumer Baning Division:

Superior retail %an$ing services comprising a )ide range of deposit and loan products are

offered % the Standard *hartered Ban$ to its individual customers" The *onsumer

Ban$ing division constantl faces challenges and meets them % developing ne)

products and services to fulfill the specific requirements of local and foreign customers"

Ban$ offers a ;'hour service in Bangladesh through its Monelin$ ATM net)or$ and

Phone'lin$ Phone Ban$ing services"

+.1.1.v Card Division:


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+.1.$ !upporting Departments:

+.1.$.i Information and Techno#og( Department:

This department is instrumental in the running of all the computeri&ed operations of the

%an$" The help in the implementation and generation of computeri&ed reports" Another

ma(or dut of the department is to maintain communication )ith the rest of the )orld"

4.1.2.ii Operation:

8peration is part of the support division, )hich helps to run the %usinesses of the %an$ in

a smooth and controlled manner" Since it helps mainl in processing the )or$s of the

%usiness units, an mista$es made can %e easil detected and on time"

+ollo)ing are the main functions of the operations department5

• *entral operations deals )ith the closing and opening of accounts and other pament

and account related processing of the Personal Ban$ing division

• Treasur operations help to deal )ith the processing )or$s of the treasur division"

-oan Administration Unit ?-AU@ deals )ith the processing of the *orporate Ban$ing

division"

• 8perations also have a department that deals )ith internal pro(ects that arises from

the need to deal )ith certain pro%lems or to ma$e certain changes"


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+.1.$.iii -ega# and Comp#iance:

In the UF, Standard *hartered Ban$ is regulated % the Ban$ of ngland, )hile in

Bangladesh local %an$ing la)s regulate it and rules set % the Ministr of +inance and

Bangladesh Ban$" It also encourages its staff to conform to an internal culture of ethical

%ehavior and sensitivities to the culture and religion of the countr"

Some of the $e areas that the -egal ! *ompliance department has to ta$e care of are5

an $ind of legal issues, to advise the *8 regarding all matters and the management on

legal and regulator issues, correspond regulator compliance issues to MSA Regional

Dead of *ompliance, and supervise internal control ?e"g" internal audit@"

+.1.$.iv 0


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Section –"

/U*AN R0!OURC0 DII!ION O5 !TANDARD C/ART0R0D BAN


7=


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,. /uman Resources Division of !CB

This department manages recruitment, training and career progression plan" Standard

*hartered Ban$ highlights the importance of developing its people to create a culture of

customer service, innovation, team)or$ and professional e#cellence" S*B recruits people

% t)o )as" 8ne is a 3Management Trainee4 that has a pro%ation period of si# months

and after the pro%ation period the trainees )ill %e counted as an officer and the )ill do

the different $inds of managerial )or$s and another is 39on Management Trainee4 )hichdoes not have an fi#ed pro%ation period" Time required for training is department on the

recruited person6s performance" In case of non'management trainee, t)o )as of

recruitment is ta$en place" The are ?a@ ta$en % signing a contract )ith some outside

organi&ation for three months and after three months the contract ma %e rene)ed or not

depending upon the emploee6s performance" These people coming through outside

contract are called 38ut Source4" ?%@ Ta$en % signing a contract )ith the %an$ for the

three months and after three months the contract ma %e rene)ed or not depending on

hisLher performance" These people coming through %an$ contract are called 3In source4"

,.1 Contro##ing !tructure at !CB

Ali$e all other %ig multi'national companies, management in S*B consists of planning

organi&ing, directing, controlling all of the resources of an organi&ation" The goal of

Standard *hartered Ban$ is to %e the Ban$ers of +irst *hoice" To)ards that goal, the

overall planning in the 8rgani&ation is done at the headquarters level in .ha$a % a

Management *ommittee ?MA9*8@, headed % the *8 and consisting of the %usiness

heads li$e *orporate Ban$ing, *onsumer Ban$ing, Treasur, Glo%al Mar$ets, and from

the support divisions the heads of Duman Resource, 8perations and +inance

.epartments" The meet once a month, or )hen special situations arise, to plan the


7


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41/144

The top do)n planning approach is mostl follo)ed at Standard *hartered Ban$" The top

managers have the authorit to decide ho) the )ill achieve their goal %ecause S*B

group )orld)ide decides the goal" The Business Ban$ mainl does planning and Retail

Ban$ .ivision, IT .epartment provides all the assistance and information that is required

to create and e#ecute long term and short term planning" Planning and IR .epartment

provides all the assistance and IT and other infrastructure in order to reduce the

paper)or$ IT has ta$en a plan to achieve the long tern plan" 8ne %ranch manager in each

of it is managing S*B6s all %ranches" The performance of each %ranch is solel dependent

on the %ranch manager" Management is partl authoritative and participant at the top level

of S*B But ever one has some assigned )or$ to do for the da and the cannot den

this" Sitting arrangement is created in such a )a that co')or$ers can sit close to each

other and have sharing of their )or$ and at the same time can have eas contact )ith

each department coordinatorL Dead" The )or$ environment is ver friendl" The room

contains sufficient amount of light and is al)as cooled % high capacit air conditioners"


;1


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,., 5ive a#ues of !tandard Chartered Ban

Standard *hartered Ban$ has five values and these values are $e to their success" These

value determine ho) the emploees achieve their goals, the )a the )or$ together and

ho) it feels to %e a part of Standard *hartered Ban$" In %rief these values are5

1" Courageous: Being courageous is a%out confidentl doing )hat6s right" 8ften the

tas$ ma seem insurmounta%le %ut )ith courage and tenacit, the odds can %e

overcome" A trul courageous act %oth inspires and %uilds character"

" Responsive: Do) )e response to our customer )ill influence their %elief in our

commitment to them" A proactive response is often une#pected and more effective for

that" It clearl demonstrates our )illingness to go %eond the une#pected"

7" International: As a mem%er of glo%al village )e vie) the )orld from the )idest

perspective" Ce are all glo%al citi&ens and the )orld is full of ne) opportunities and

e#citing possi%ilities" Ce also deliver )orld class products and services"

;" Creative: *reativit %elongs to those of us )ho are e#cited % challenges and

engage them in fresh thin$ing and an open mind" *reative thin$ers are not limited %

convention %ut allo) their minds to soar %eond predicta%le solutions"

>" Trustworthy: Trust is the foundation of ever successful relationship" Ce trust

%ecause )e %elieve in the sincerit of our promise" Building trust can ta$e forever"

-osing ta$es onl moments"


;


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,.9 Chain of Command:

Standard *hartered Ban$ in Bangladesh follo)s a hierarch pattern of command" The

chief #ecutive 8fficer ?*8@ for the countr reports to the Regional Manager, MSA

?Middle ast South Asia@ in .u%ai" All other departmental Deads at the headquarters

report to the *8" A manager or Senior Manager reports to the divisional heads" The

respective Branch Managers or Branch Sales and Service Managers ?BSSM@ are

responsi%le for the performance of their unit" ach %ranch is organi&ed functionall along

line divisions )ith some support facilities and the manager assigns tas$s to his L her

su%ordinate personnel and supervises their performance"

8rganograms of different division of the %an$ is given in the ne#t fe) pages separatel"


;7


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"hain of "ommand


Chief 0


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1ead of "ons%mer Bankin'

Product Secured, Unsecured, -ia%ilities Branches .irect Sales *redit.evelopment Product sales in all channels Phone %an$ing Product development *ollectionProduct -aunch Product Mar$eting ! ATMs Marchant Acquiring

Mar$eting campaign for all channels Priorit Ban$ing *ustomer ServiceMar$et Intelligence .S Management Relationship Management Tele Sales Tele Sales Branches S ProductL+ee Pricing


/ead of Consumer Baning

Manager Service ualit?S@ Manager Business +inance

8fficer *ompliance ! *ontrolSupport #ecutive

Dead of Product .evelopment! Mar$eting Services

Dead of Ban$ingProducts

Dead of .istri%ution!Priorit Ban$

Dead of *ards Dead of *redit !*ollection

8fficer

;>


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Finance and Administration 9i:ision


/ead of 5inance and Administration

Manager +inance 8perationManager Business +inance Dead of Administration

+inance 8fficer +inance 8fficer H Business Support Senior Admin 8fficer

8fficer

;


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1%man ;eso%rces 9i:ision


/ead of /uman Resources

/ead of /uman Resources Operation

8fficer H DR 8peration8fficer H DR Admin

;2


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Le'al and "om3liance 9i:ision

"/;4/;A2. AFFAI;S

8fficer


Head of Le al & Com liance

*ompliance Advisor 8fficer HAudit and *ompliance Manager H -egal Support

/ead of Corporate Affaires

;=


49/144

2reas%r 9i:ision

*orporate .ealer

.ealer H Mone Mar$et

+oreign #change .ealer


Dead of Glo%al Mar$et

Dead of Mone Mar$etand A-M

Dead of +oreign #changeTrading

Dead of Sales

;


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Information 2echnolo' ( I 2 )9i:ision

Product Specialist Technical Analst Sstem Securit Administration Senior Technical Analst Product Specialist Sstem *ontroller

Shift -eader


Head of I.T

Manager IT Product Support Manager Manager *ommunication !Infrastructure Support

>0


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"or3orate and Instit%tional Bankin'

Sr" Relationship Manager Sr" Relationship Manager Relationship Manager Sr" Relationship Manager Relationship Manager Relationship Manager Relationship Manager Sr" *redit Analst *redit Ris$ Manager *redit Ris$ Manager Sr" Sales Supporting *redit Ris$ 8fficer *redit Ris$ 8fficer

Sr" Business .ev" Manager Sr" Relationship ManagerBusiness .ev" Manager Relationship Manager ?Trade, Pro(ects, *ash, Trade, Manager ''+I, Sales Support

Sales@ Manager H +I, *hittagong


Dead of *orporate and Institutional Ban$ing

#ecutive Assistant

Dead of -ocal *orporate Dead of 9et)or$ Ban$ing Dead of Structured +inance Dead of *hittagong*orporate

Dead of +inancial InstitutionsDead of *ash ! Trade Dead of *ustod and*learing Service

>1


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Service .eliver

Account Service Trade Ris$ *ontrol ! ReconATM *ards *ash +oreign #changeItem Processing *redit Mone Mar$etAsset 8perations and .ocs .ocumentationSecurit Bonds Admin*hittagong Service .eliver

8fficers 8fficers 8fficers


Cief Operating

Dead of *onsumer Service .eliver Dead of *orporate Service .eliver

Manager Manager

Dead of Glo%al Mar$et Service.eliver

Manager

>


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The Branch Organogram

Acronms5

BSSM Q Branch Sales ! Service Manager

STM Q Sales Team Manager

*SM Q *ustomer Service Manager

BRM Q Branch Ris$ Manager

P+* Q Personal +inancial *onsultant

*S8 Q *ustomer Service 8fficer

PS8 Q Product Support 8fficer

SA Q Service Am%assador

BS QBranch Sales #ecutive

n In%estigation into the Consu!er Banking 'i%ision of Standard Chartered Bank in Bangladesh

BSSM

SA STM *SM BRM

P+*s *S8sBSs

>7


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Section –"I

CON!U*0R BANIN2 !0RIC0! O5 !TANDARD C/ART0R0D BAN


>;


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9. 'RODUCT! O550R0D B4 !CB

9.1.1 'roducts

Personal Ban$ing

*ommercial Ban$ing

Trade Service

9.1.$ 'ersona# Baning

A. Deposits

• Savings Account

• Access Account

• +reedom Account

• *urrent Account

• :IP *urrent Account

• +i#ed .eposit

• +oreign *urrenc *urrent Account

• Graduate Account

• Millionaire Scheme

• Monthl Savings Scheme

• ducation Savings Scheme

• 9on'Resident +oreign *urrenc .eposit

• Resident +oreign *urrenc .eposit ?R+*.@

• ST. Account

B. -oans

• Personal -oan

• Auto -oan

• +le#i -oan

• Mortgage -oan

• SM Ban$ing

• *ash line


>>


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9.$. Deposits

!avings Account

!avings account is suita%#e for:

Individuals, clu%s, associations, societies, Trusts and others of similar stature" Particularl suited for individuals )ho have regular and fi#ed sources of income andfi#ed e#penses" +or e#ample5 house)ives, salaried professionals, %usinessmen and other self'emploed professionals"It is essential for anone )ho saves and et does not )ish to %loc$ his mone"

0#igi%i#it( to open a !avings Account

A Savings Account can %e opened % individuals, associations, trusts, clu%s, charities,societies and other non'trading associations"

A Savings Account cannot %e opened %Partnerships ?registered ! non'registered@, ,Sole proprietorships, Pu%lic -imited, *ompanies,Private -imited *ompanies, +oreign 9ationals"

5eatures

arn Interest

Ban$ing through ATM

An Branch Ban$ing

;'hour Ban$ing *onvenience

State'of'the'art ;'Dour *all *entre

SMS Ban$ing and e'Statements

Regular additional %enefits

Third part can %e authori&ed to operate the account

Initia# deposit

*ould %e cash, cheque or transfer from an S*B account" Initial .eposit should %e at least T$" 00,000"


>


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Interest Rate

Interest on Savings Account is paid on the minimum %alance of a particular month" Interest isapplied to the account t)ice a ear on /une and .ecem%er" The interest rate in the savingsaccount is as follo)s5

Ba#ance Amount Interest Rate

Balance %elo) 00,000 .

Balance %et)een 00,000'1,000,000 $.,

Balance A%ove B.T 1,000,000 ).

Ta< on interest

There is a 10O ta# on interest earned in Savings Account" This ta# is deducted at source, meaningthe %an$ deducts the ta# %efore giving it to the customer"

5ees and Charges

*aintenance 5ee B.T >2>"0 ?Actual fee B.T >00 1> O:AT@

De%it Card Annua# 5ee B.T O:AT@

!top pa(ment Instruction

5ee

B.T =2"> ?Actual fee B.T >0 1>O :AT@

Charge for Bouncing a

Che=ue

B.T 11>0"0 ?Actual fee B.T 1000 1>O :AT@

Account C#osure Charge B.T >2>"0 ?Actual fee B.T >00 1> O:AT@

/o#d !tatements B.T 1,000 per annum per account

If account is c#osed 8ithin 9

months of opening

B.T >2>"0 ?Actual fee B.T >00 1> O:AT@


>2


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Access Account

Access Account is a variant of the Savings Account" Standard *hartered Ban$ in its continuous

effort to %ring more convenience to its customers started this account targeting salariedemploees, students and house)ives"

5eatures

Access is an account that does not give interest on the deposit $ept in it This account is for individuals onl 8ne can put his mone in this account and earn interest on the idle funds and also use the funds)hen he needs itThis account is for individual onl" 8rgani&ations cannot open this account

/o8 is Access different from !avingsE

Access is different from Savings in the follo)ing aspects

There is no cheque %oo$ in this account" Therefore no cheque %oo$ related facilities areavaila%le here" There is no minimum %alance requirement for this account" Therefore, no relationship fee andother minimum %alance related charges"

Initia# Deposit

B.T'0,000 is required to open access account"

2overnment 0 O:AT@

De%it Card Rep#acement 5ee B.T 7;>" ?Actual fee B.T 700 1> O:AT@

Account C#osure Charge B.T >2>" ?Actual fee B.T >00 1> O:AT@

If account is c#osed 8ithin 9months of opening:

B.T >2>" ?B.T >00 1> O:AT@


>=


59/144

5reedom account

Individuals %et)een 1= to 7> ears of age can start +A"

This account is for individual onl" 8rgani&ations cannot open +A"

5eatures:

It is a safe et easil accessi%le form of saving *ustomers earn interest up to >O .e%it card gives access to cash ;'hours a da *heque%oo$ provides for secure transactions +reedom of ma$ing unlimited transactions +reedom not paing fees for the average %alance from TF >,000

*ustomers can transact an)here )here S*B has a %ranch or ATM machine State'of'the'art ;'Dour *all *entre and SMS %an$ing

Initia# deposit"

*ould %e either cash, cheque or transfer from an S*B account" Initial .eposit should %e at least T$" ,000"

Interest Rate

Interest on Savings Account is paid on the minimum %alance of a particular month" Interest isapplied to the account t)ice a ear on /une and .ecem%er" The interest rate in the savingsaccount is as follo)s5


Balance %elo) B.T >,000 .

Balance %et)een B.T >,000'>0,000 +.

Balance %et)een B.T >0,000'100,000 ,.

Balance A%ove B.T 1,00,000 ).


>


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Ta< on interest

There is a 10O ta# on interest earned in +A" This ta# is deducted at source, meaning the %an$

deducts the ta# %efore giving it to the customer"

5ees and Charges

/a#f 4ear#( Av. Ba#ance

5ee Dalf earl

avg" %al"

A%ove

>000

1>000'

>000

Belo)

1>000+ee 98 fee B.T >00 B.T1000



5ee



Che=ue




If account is c#osed 8ithin 9months of opening


!ign Up 5ee B.T 00

Counter Transaction 5ee Monthl Avg"Balance

Up to TF >,000

Belo) TF >,000

*ounter Tr#n+ee

98 +ee TF 10 per Tr#n


0


61/144

2raduate Account F*( 5irst Account

Graduate Account is an interest %earing Savings Account for ongoing graduate and post'graduateuniversit L college students, )ho are at least 1= ears old" The account )ill have .e%it *ard %utno cheque%oo$ facilit"

The funds in the account can %e )ithdra)n via .e%it *ard or out)ard remittance restricted toeducational fees L su%scription, etc" It is e#pected that the fund )ill %asicall originate from the parents or legal guardian or part'time (o% of the universit L college students in order to allo)them maintain a %an$ account )ith Savings opportunit, and also ma$e them organi&e their monthl along )ith semester e#penditures throughout the ear" Initial deposit for GraduateAccount is B.T 10,000 per account and it must %e in the local currenc"

5e( 5eatures

Graduate Account6 is interest %earing Savings Account Initial .eposit B.T 10000" A half'earl statement frequenc )ill %e in place for this product unless requested other)ise" Minimum %alance5 The minimum average %alance of B.T 10F should %e maintained evermonth in order to earn interest" Interest Rate5 O interest rate per annum )ill %e calculated on dail %asis %ut to %e credited half earl" Ma#imum .e%it *ard )ithdra)al limit is B.T >$ per da

'roduct Documentation

Same Standard Account 8pening Procedure6 )ill %e maintained :alid Student Identification *ard )ill %e required in order to su%stantiate the current studentstatus"

Added a#ue 'roposition

Special .iscount +acilities ! -ifestle Benefits at selected partner outlets )hile using GraduateAccount .e%it *ard"


1


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02>"0 ?Actual fee B.T >00 1> O:AT@

De%it Card Annua# 5ee : B.T O:AT@

!top pa(ment Instruction 5ee : B.T =2"> ?Actual fee B.T >0 1>O :AT@

Charge for Bouncing a Che=ue : B.T 11>0"0 ?Actual fee B.T 1000 1>O :AT@

Account C#osure Charge : B.T >2>"0 ?Actual fee B.T >00 1> O:AT@

Current Account



63/144

*urrent account is an account on )hich cheques are dra)n and to )hich credits are paid" It is anon interest %earing aLc, it is also called chec$ing account"

0#igi%i#it( to open a CA

This account is appropriate for %oth organi&ation and person, )ho e#pects ver frequenttransactions )ith funds coming in and going out dail"*urrent account is suita%le for5Individua#s5 Resident Bangladeshis, 9on'resident Bangladeshis, +oreign 9ationals residing inBangladesh"Organi7ations: Sole Proprietorships, Registered Partnerships, Unregistered Partnerships, Pu%lic-imited *ompanies, Private -imited *ompanies, *lu%s, Associations, Societies, *harities, 9ationali&ed 8rgani&ations, Autonomous Bodies, 9G8s"ssentiall, it is for anone )ho engages in frequent transactions

5eatures

.eposited amount is readil availa%le for )ithdra)al +ree )ithdra)al of mone from an %ranch in the countr *ustomers can get 8ver .raft facilities in these accounts" .e%it card gives customers access to cash ;'hours a da" 3Standing Instruction4 can ta$e care of routine paments Stop Pament6 saves ou from loss due to theft of cheque Third part can %e authori&ed to operate the account for customer %enefit It6s non'interest %earing deposit

Difference %et8een !avings 6 Current account

Current Account !avings Account

An organi&ation or person?s@ can open acurrent account"

8nl person?s@ and not'for'profitorgani&ations can open savings account

*urrent account gives no interest" Savings account gives interest

9o prior 9otice is required for )ithdra)als from *urrent Account"

Savings Accounts require prior 9otice for )ithdra)al, if interest is not to %e forfeited"

*ustomers can get 8verdraft facilit incurrent account"

Savings account has no 8verdraft facilit"

Interest *atri<

*urrent Account is a non'interest %earing account" There is no interest in this account"


7


64/144

Ta< on Current Account

There are no ta#es on current account" Because current account does not pa an interest" But anaccount holder of a current account needs to pa the Govt" #cise ! .ut

5ees and Charges

Account *aintenance

5ee5B.T >2> ?Actual fee B.T >00 1> O:AT@

De%it Card Annua# 5ee : B.T O:AT@?for individua#s@

De%it Card Rep#acement

5ee:

B.T 7;>" ?Actual fee B.T 700 1> O:AT@?for individua#s@

Transaction Charges5 B.T 11">0 ? to %e charged L consolidated on Monthl Basisif average %alance falls %elo) Minimum Average Balanceof B.T >0,000LQ an month @"


5ee: B.T =2">0 ?Actual fee B.T >0 1>O :AT@


Che=ue: B.T 11>0 ?Actual fee B.T 1000 1>O :AT@

Account C#osure Charge: B.T >2> ?Actual fee B.T >00 1>O:AT@

If account is c#osed 8ithin9 months of opening5 B.T >2> ?Actual fee T$" >00 1>O :AT@

I' Current Account I'CA


;


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The :IP*A is the mechanism to earn interest on idle funds for customers that cannot commitfunds for longer periods of time in +.L Term deposits" This account is lin$ed )ith a ST. accountand customer )ill earn interest on a dail %asis"

I'CA is suita%#e for:

Digh net )orth individuals )ho need to transact ver frequentl" 0#igi%i#it( to open a I'CA

A :IP*A can %e opened % individuals, associations, trusts, clu%s, charities, societies and other non'trading associations"

5eatures:

*ustomers earn interest on dail availa%le %alance

; hour ATM net)or$ ! *all *enter 8nline ! vening %an$ing is availa%le Account statement provides a sstematic record of savings +ull )aivers on online intercit transaction *ash line overdraft facilit is availa%le Digher de%it card limit ?>0,000 per da@ .ail P8S limit B.T >0000 +ree issuance of Pa order ! .emand draft

Initia# deposit"

*ould %e either cash, cheque or transfer from an S*B account" Initial .eposit should %e at least B.T >0,000"

Interest *atri<


>


66/144

The interest rate in the :IP*A is as follo)s5


Balance %elo) >0,000 .

Balance a%ove >0,000 $G)

Interest accrued dail, applied half earl

5ees and Charges

/a#f 4ear#( Av. Ba#ance

5ee Dalf earlavg" %al"

A%ove 100,000 Belo) 100,000

+ee 98 fee B.T >00



5ee



Che=ue




If account is c#osed 8ithin 9months of opening


Counter Transaction 5ee Monthl Avg"Balance

A%ove TF 100,000

Belo) TF 100,000

*ounter Tr#n+ee

98 +ee TF 10 per Tr#n

5i


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68/144


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*onth#( !aving !chemes

There are currentl 7 monthl savings schemes" The are5

Marriage savings scheme ducation savings scheme Rain da savings scheme

!avings !chemes process

*ustomers )ill %u units of these schemes" +irst the )ill ma$e an initial deposit after that the)ill deposit a fi#ed sum ever month %ased on the units the %u" ou can sa that the )ill

deposit a monthl installment" Interest on all deposits )ill %e calculated dail and )ill %e addedto the deposit at the end of the month" The scheme is for a fi#ed period" At the end of the periodcustomers )ill get a fi#ed amount %ac$"

0#igi%i#it( to open a *onth#( !avings !cheme

8nl e#isting customers can open Monthl Savings Schemes ?MSS@"

In order to open a MSS a customer has to fill 'in an MSS 8pening +orm"

Opening Deposit

The opening deposit of 1 unit is B.T 10,000" This is the same for all the schemes"

!ignGup 5ee

The sign'up fee is T$" >0 per unit )ith a minimum of B.T >00 and a ma#imum of B.T 10,000"



70/144


71/144

*i##ionaire !cheme

The Millionaire Scheme is a deposit scheme targeted for people )ith high disposa%le income and)ith a propensit to save that income"

The millionaire scheme promises the customer that the %alance of their account )ill %e a millionTa$a at the end of > ears < months and after 10 ears the )ill receive more than B.T 1,00 )ill %e charged"

• If an customer desires to discontinue the scheme prior to maturit, a penal fee B.T

>000 )ill %e deducted from his account"

'rofit Ta%#e: *i##ionaire !cheme

TenorInitia#

Deposit

*onth#(

!avings

Tota# Customer

Contri%ution

'rofit Interest

from %an*aturit( a#ue

> ears <months

100,000 10,000 2= 1,010,>=

10 ears 100,000 10,000 1,700,000 2,272 1,


72/144

Resident 5oreign Currenc( Deposit R5CD Account

R+*. is an interest %earing foreign currenc account" The funds in this account are $ept as timedeposit"

0#igi%i#it( to open a R5CD Account

People )ho are residents of Bangladesh can open this account upon their return from a%road"Since it is an interest %earing account, then non'Bangladeshis cannot open this account" 9ote5 This account can not %e opened in (oint name

Opening %a#ance for an R5CD Account

The Minimum 8pening Balance is US. 1000 or GBP >00 equivalent currenc"

e( 5eatures

Interest %earing foreign currenc account

Multi'currenc deposit facilit5 US., UR, GBP

International *redit *ard issuance facilit against R+*. account

The transactiona# %enefits of R5CD Account

Unutili&ed +oreign *urrenc endorsed for traveling can %e deposited into this account Balances in these accounts can %e freel transferred a%road +unds in these accounts can %e used for endorsement of +*, Issuing TL* for travel purposes

International *redit *ards can %e issued against the %alances of R+*.

The restrictions for operating a R5CD account

+unds %rought in from travel a%road can onl %e credited to these accounts" #port proceeds and funds from %usiness deals generating from )ithin Bangladesh cannot %e put into these accounts" .eposits over US. >000 or equivalent +oreign *urrenc have to have +orm +M/ )hencrediting to the account" Chen +oreign e#changes are credited into these accounts, the depositor must su%mit adeclaration saing )hen he returned from a%road and that the fund )as not a result of an

%usiness deal generated in Bangladesh or from e#port proceeds" 9ote5 If the depositor6s passport and declaration are not in order then the %an$ can refuse creditthe account"


2


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NonGResident 5oreign Currenc( Deposit N5CD

A short'term foreign currenc deposit account suita%le for Bangladeshis living a%road, offering

competitive interest rates availa%le in %oth local and international mar$ets"

5oreign Currenc( Current Account

Applica%le to Bangladeshis )or$ing a%road, it can %e opened in US., GBP and en

)ithout restriction on transaction frequenc" It can %e operated through nominees in

a%sence of the accountholder" +und remains in foreign currenc and is freel remitta%le"

!TD Account

Standard chartered *all account offers ou the convenient )a to save for the future, as

)ell as en(oing eas access to our mone"

arn Interest on .ail Basis

Afforda%le Minimum Balance

An Branch Ban$ing

;'hour Ban$ing *onvenience

SMS Ban$ing and e'Statements

State'of'the'art ;'Dour *all *entre

.e%it *ard


27


74/144

9.). Asset 'roduct:


2;

Asset 'roduct

Credit Card -oan

Conventiona#

-oan

Is#amic -oan

Is#amic 'ersona#

5inance

Is#amic Auto

5inance

*ortgage Auto #oan

5#e


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SCB *rst introduced consumer *nance in Bangladesh and till today)

they are the market leader% &t has $erities in *nancing its retail

customers #ith inno$ati$e products% The earnings from interest and

ser$ice charges contribute to ,!%9: o$erall income generated from

the consumer *nance di$ision%

9.).1 Conventiona# -oan:

9.).1.1 'ersona# -oans:

9.).1.1.i. 0fficient:

mploee of Standard *hartered )or$ hard to ma$e its name snonmous )ith qualit

mone management )hich means that the are in a position to offer customers a )ide

range of %an$ing products, designed to most of their needs"

9.).1.1.ii. 5#e


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Purchase of furniture

Dospitali&ation or other emergenc medical needs

Douse renovation

Purchase of office equipmentL accessories

8ffice renovation

Marriages in the famil

Advance rent paments

8verseas trips

ducationL professional training

9.).1.1.iii. /e#pfu#:

9o cash securit required "The loan amount ma range from B.T 0"000 to B.T

10"00,000 and the %est ne)s is that no cash collateral is required to o%tain the loan"

This means customers don6t have to su%mit our fi#ed deposits to the Ban$ for the

period of the loan as securit" Some documents from emploer or the guarantee of a

reputed person ?as defined % the Ban$@ )ill suffice"

9.).1.1.iv. Convenient:

Monthl installments can %e tailored to meet customer convenience and %udget"

*ustomers can choose to repa the loan in 1 to 0 equal monthl installments

depending on the loan amount"


2


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)#"!)*%

2+!+*%

2+!6"%"!+%+)!""%

+))!))%

Se'ment Salar, AC with .S

Salar, AC /ith 0ther Bank Salar, 1n Cash

SCB AC older 0ther Bank AC older

otal

Figure *: Seg!ent +ise ,ortfolio

Source: SCB &fficial 'ocu!ent

9.).1.$.Business Insta##ment -oan:

9.).1.$.i. Target *aret:

Small and Medium nterprises in an sector other than the restrictions and

e#clusions outlined in the Product .evelopment .ocument, and qualified %

customer selection criteria"

Professionals, for e#ample, doctors, la)ers, teachers, etc"

9.).1.$.ii. Customer 0#igi%i#it(:

Age of %usiness has to %e 7 ears or more"

Business must have o)n L rented operating premises for alt least ears"

Annual sales turnover has to %e %et)een B.T 0 la$h and B.T 0 crore"

*onsequentl, annual pre'ta# income has to %e +BT la$h"


22


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An facilit )ould require a clean *IB report of the customer"

BI- is a partiall secured loan facilit given to an %usiness concern for an legitimate

purpose" The loan can %e either partiall secured or full secured" The securit for the

loan must %e in a readil encasha%le form" It is one of the oldest forms of %an$ing

products, )here the %an$ lends the customer a principal fund and the customer pas off

the loan ?Principal Interest@ periodicall ?i"e" monthl@"

9.).1.$.iii. 'roducts? 5aci#it(:

BI- can %e offered to the customers for the follo)ing purposes5

-ong term )or$ing capital finance

Asset finance ?plant ! machiner@

Business e#pansion

8ffice premises renovation

8ther similar %usiness needs

9.).1.$.iv: 5aci#it( Amount and Tenor:

Minimum -oan5 B.T 1 la$h

Ma#imum -oan5 B.T >0 la$h

The customer can repa the loan in the follo)ing ma#imum tenors depending on the

amount"


1 la$h H 0 la$h Upto 7 ears

V0 la$h H >0 la$h Upto > ears

2=


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9.).1.).i.%. 5#e00"000 to loss than B.T 1,000"000 can %e repaid in a

ma#imum of ;= monthl installments"

-oans greater than B.T 1"000"000 can %e repaid in a ma#imum of 0 monthl

installments"

Monthl paments )ill %e automaticall deducted from customers Savings or *urrent

account )ith Standard *hartered Ban$"

9.).1.).i.d. 5#e


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17O per annum )hen 100O or more secured % readil encasha%le securities

accepta%le to the Ban$"

1;O per annum )hen >0O to


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• Partial or full prepament options"

• -oan approval )ithin the shortest possi%le time"

Target Custo!ers:

• Profession5 Applicant should have at least three ears of serviceL

professionalL %usiness trac$ records"

• Minimum age5 70 ears"

• Ma#imum age5 Retirement age or 0 ears less loan term,

)hichever is earlier"

• Proposed Propert5 An leasehold residential propert including

purchase of second hand propert"

Fle.ible /oan !ount:

• Ma#imum loan5 B.T 2,>00,000

• Minimum loan5 B.T 1,000,000

• Ma#imum 2>O of the propert value ?including registration cost@"

0as1 Ter!s 2 $epa1!ent &ption:

• Ma#imum loan term up to 1> ears"

• Repament5 -oan )ill %e repaid % equated monthl installment

?MI@ and the installment is calculated on monthl reducing

method )ith no additional hidden interest or charges"


=


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Con%enient Securit1:

• Registered mortgage of the propert or an other equivalent

propert in favour of Standard *hartered Ban$"

9.).1.,. Cash -ine:

*ash -ine has the right solution to customer6s pro%lem" It lets customer manage his

finances the )a he li$e it, offering him the %est of %oth5

Read access to cash

Digh return on long term investment

9.).1.,. i. 5eatures:

9.).1.,. i.a. Convenient:

*ash -ine is a secured credit facilit against customer6s fi#ed deposits, I*B Unit

*ertificates or Savings *ertificates ?Sancha Patras@" *ustomers can %orro) up to


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principal and the )ill %e automaticall de%ited for his deposit account each

month for the term of the loan"


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personal guarantee or cash securit to qualif for an auto loan" If customers choose to

provide 70O or more of the loan amount as cash securit the )ill en(o a higher loan

amount and a discounted interest rate" Auto -oan is designed to ma$e life easier for

customers" S* offers customers eas repament options and the freedom to choose their

repament period H from 1 ear to > ears depending on car"

9.).1..Used Car 'urchase -oan:

Standard *harteredEs Used *ar Purchase -oan ma$es it easier than ever to %u the car

customers have al)as )anted"

9.).1..i. 5eatures:

9.).1..i.a. 0as( conditions:

A real different proposition can %ring change in life" To appl for an Auto -oan to %u a

used car, customers6 need is to %e5

A Bangladeshi citi&en %et)een 7 to 0 ears of age

A salaried or self'emploed person earning a minimum of B.T >,000 per month

Maintaining a Savings or *urrent Account )ith Standard *hartered Ban$ for at

least si# months or )ith an scheduled %an$ in Bangladesh for at least a ear

9.).1..i.%. Uni=ue opportunit(:

Standard *hartered Ban$ has launched Used *ar Purchase -oan" Under this scheme a

registered car, )hich has changed o)nership for a ma#imum of t)o times since its import

to Bangladesh can %e financed" Presentl Standard *hartered are financing for Toota car


=>


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onl )ith the condition that the age of the car at the end of loan period must not e#ceed

10 ears" +or instance, a 1


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9.).$.1.i. 5eatures:

9.).$.1.i.a. Comp#iant 8ith !hariah:

S*B has an international team of professionals )ith Islamic financial e#pertise dedicated

to developing Shariah approved financial solutions for the S*B Group" Islamic Personal

+inance has also %een developed in consultation )ith ! approved % the S*B Islamic

Shariah Supervisor *ommittee" The process of product development ! Shariah revie)

ensures that S*B6s Shariah compliant Products are free of interest ! )ith the guidelines

for commerce, finance ! investment that are prescri%ed % the Shariah ?Islamic -a)@"

9.).$.1.i.%. Is#amic 'ersona# 5inance under *ura%aha mode:

Islamic Personal +inance is designed according to the rules of Mura%aha financing, an

Islamic financial tool, )hich allo)s part A to purchase assetsLgoods from part B, pa

for the goods in deferred paments" The condition is that part A should o)n the goods at

the time of sale" The price of the assetsLgoods should %e fi#ed at the time of sale ! should

not change su%sequentl"

*ustomers can purchase dura%les ! services from S*B at a fi#ed price" The customer can

pa for the price of the dura%les ! services in equal monthl installments" S*B )ill first

purchase ! services itself ! then sell it to customers at a price, )hich includes a profit"

9.).$.1.i.c. 5#e


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S*B6s Shariah *ompliant Personal +inance is the most fle#i%le of its $ind in the mar$et"

Cith minimum documentation ! securit requirements, the product offers customer the

choice of finance for an of the follo)ing purposes5

• Purchase of miscellaneous household appliances

• Purchase of personal computer

• Purchase of refrigerator

• Purchase of audio'video equipment

• Purchase of furniture

• Dospitali&ation or other medical need ?actual pament to %e made directl

to the hospital@

• Douse innovation

• Marriage in famil ?actual purchase of goods@

• Advance rent paments ?actual pament to %e made directl to the

landlord@

• 8verseas trips ?actual purchase of pac$ages@

• ducation L professional training ?actual pament to %e made directl to

the institution@

9.).$.1.i.d. No cash securit( re=uired:

The amount of the Islamic Personal +inance ma range from B.T 0,000 to B.T

1,000,000" Moreover, there is no cash collateral requirement to o%tain this finance" It

means there is no requirement for su%mitting fi#ed deposit to Ban$ as securit" +e)


==


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documents from emploer or guarantee from a reputed person ?as defined % the %an$@

)ould suffice" Tailored repament period at customer6s monthl installments can %e

tailored to meet customer6s convenience ! %udget" *ustomer can choose to pa 1 to 0

equal monthl installments depending on the finance amount"

9.).$.$. Is#amic Auto 5inance:

The Shariah Supervisor *ommittee ?*ommittee@ has revie)ed the follo)ing

agreements ?Auto +inance Agreements@ relating to the S*B6s Islamic Auto +inance5

1" .iminishing Mushara$a Agreement

" Underta$ing to Purchase

The idea %ehind the Auto +inance Program is to facilitate Muslims to have access to auto

financing facilities designed in accordance )ith the principles of Shariah"

The product has %een structured in the follo)ing manner5'

1" The %an$ )ill enter in to a (oint participation arrangement to invest in the vehicle

on the %asis of .iminishing Mushara$a"

" The %an$ )ill provide the larger share of the purchase price of the vehicle"

7" The %an$ )ill rent out L allo) usage of its share of the vehicle to the customer"

The customer )ill agree to ma$e monthl paments for the use of the vehicle"


=


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;" The customers )ill also ma$e regular scheduled paments in the participation to

increase their equit in the vehicle" Thus )ith each pament the o)nership of the

customers in the partnership gro)s increasing their share of the vehicle"

>" 8nce the customer has paid in full, the customer )ill have free and clear title to

the vehicle"

Under S*B6s Islamic Auto +inance product, customers do not repa an interest'%earing

loan" Instead, customer ! S*B (ointl participate in the vehicle o)nership" *ustomers

enter into a .iminishing Mushara$a Agreement that esta%lishes (oint participation of

S*B ! concerned customer ! the agreement spells out each part6s right and

responsi%ilities" As a part of the contract, customers agree to purchase S*B6s share in the

vehicle through afforda%le monthl paments over a specific period" Dis incremental

acquisition of S*B share )ill ultimatel lead to full o)nership of the house % him" Dis

monthl paments )ill also include a rent for his e#clusive en(oment and use of the

)hole vehicle" In total, these paments )ill constitute a fi#ed monthl amount that is

competitive )ith )hat he )ould pa under a conventional auto loan"

A conventional auto loan is a de%t )here% the %orro)er is %ound to pa interest on the

mone o)ed, )hile the Islamic Auto +inance is a shared participation in the vehicle" This

program is not a loan"

The S*B Islamic Shariah Advisor *ommittee that is an independent committee of

qualified scholars of international repute approves this product" S*B has an international



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04 B0N05IT! O5 !TANDARD C/ART0R0D CR0DIT CARD

3ide Acceptance

Standard *hartered Ban$ ?S*B@ issues %oth :ISA and Master*ard *redit *ards", the t)o

reno)ned *redit *ard %rands" Standard *hartered Ta$a *redit cards are accepted at more

than , out#ets across Bangladesh"

0as( Repa(ment 5aci#it(

Standard *hartered *redit *ardholder

an investigation into consumer banking division of standard chartered bank, bangladesh

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