The world’s local bank

Business Report on Hong Kong Shanghai Banking Corporation

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Course : BUS 101

Section : 12

Group member :

Members Name Department Id 01 Md. Arfan Sanjide BBA 1220041030 02 Mohammad Sazzad Hassan BBA 1220042030

03 H.M.Yeasin BBA 1220445030 04 Md Pamirul Islam BBA 1220442030

North south university School of Business

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1.Acknowladgement :

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Table of content :

No. Topics Page

01. Introduction

02. Literature

Review

A.Company information

B.Vision and Mission

C.HSBC organization chart

03. How the company form

A.How the company form Corporation articleB.Advantages and disadvantages

04. HSBC banks goods and services

05. Company Analysis

A.Sowt analysis

B.Major competition of HSBC

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Introduction: Hong Kong Shanghai Banking Corporation to act as a new group holding company and to enable the acquisition of UK-based Midland Bank. The origins of the bank lie in Hong Kong and Shanghai, where branches were first opened in 1865. Today, HSBC remains the largest bank in Hong Kong, and recent expansion in mainland China, where it is now the largest international bank, has returned it to that part of its roots HSBC .The Hong Kong and Shanghai Banking Corporation Limited is a prominent bank established and based in Hong Kong since 1865 when Hong Kong was a colony of the British Empire. It is the founding member of the HSBC Group and since 1990 is now a wholly owned subsidiary of HSBC Holdings plc. The company's business ranges from the traditional High Street roles of personal finance and commercial banking to corporate and investment banking, private banking and global banking. It is the largest bank in Hong Kong with branches and offices throughout the Asia Pacific region including other countries around the world.

3.Literature Review:

A.Company Information : HSBC Holdings plc (commonly known as HSBC) is a British multinational banking and financial services company headquartered in London, United Kingdom. As of 2011 it was the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine.

HSBC is a universal bank and is organized within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Retail Banking and Wealth Management (retail banking and consumer finance); and Global Private Banking. It has around 7,200 offices in 85 countries and territories across Africa, Asia, Europe , North America and South America and around 89 million customers. As of 31 March 2012, it had total assets of $2.637 trillion, of which roughly half were in Europe, a quarter in the Americas and a quarter in Asia.

HSBC is one of the oldest banking groups in the modern world. The bank is known locally simply as "The Bank", "Hong Kong Bank", "Hong Kong Bank" and "Lion Bank". started operations in 1996. The bank primarily focuses on urban

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areas and has branches in most areas of the capital city of Dhaka, It also has branches in the cities of Chittagong and Sylhet . The bank also has a good number of ATM booths in the cities present , it also has booths in most five star hotels.

HSBC Bangladesh is rated ‘AAA’ in the Long-term and ST-1 rating in the Short-term, which are the highest level of ratings for any bank or financial institution in Bangladesh.[10]

HSBC Bangladesh offers a comprehensive range of financial services such as commercial banking, consumer banking, payments and cash management, trade services, treasury, and custody and clearing. The bank also offers offshore banking in the Export Processing Zones, this is only limited to investors in the EPZs. A special service called NRB Services is also available for non resident Bangladeshis, this service allows consumers to maintain accounts in US Dollars, Pound Sterling and Euros. People using this service can freely remit money from Bangladesh to any part of the world and can access their money from any HSBC booth around the world . HSBC Bangladesh has a help center which operates on a daily basics. It is one of the very few banks in the country to offer day night banking.

B. Vision and mission :

Vision : Bringing Together People That Make A Difference .

Mission : 1. To be the Leader in our chosen markets. 2. To Deliver an outstanding client experience based on excellence in sales, service and solution. 3. To Achieve a superior, ethically based, long-term return for shareholders. 4. To build highly motivated, high-performance team. 5. To Create a challenging, rewarding and fun work environment.

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C. HSBC Organization chart -

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4.How the company form :

A.How the company form corporation artical :

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B.HSBC Bank’s advantages and disadvantages :

Advantages : 1. No.1 Financial brand.

2. Flavour of global banking. 3. Outstanding services 4. ATM facilities. 5. No.1 bank in the world.

Disadvantages : 1. Limited branches.

2. Limited segmentation. 3. High charges. 4. Maintenance complexity. 5. Lot of documentation. 6. Less profit.

5. HSBC goods and services :

HSBC Goods : HSBC Provide Mainly two types of product - 1. Asset product .(loan product)

2. Liabilities product.(deposit product)

Lone product – 1. Home Loan. 2. Home Equity Loan. 3. Personal Loan. 4. Car Loan.

Deposit product – 1. Smart Servers Plan.

2. Current Account. 3. Savings Account.

4. Term Deposit.

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Loan product -

1.Home loan - The decision to buy or renovate a home is one of the most important investment decision you will ever make.

Features - 1. Loan amount of BDT 750,000 - BDT 10,000,000 2 . Maximum loan amount of 70% of the property valuation, inclusive of registration cost . 3. Financing for the registration cost 4. Clubbing of income amongst spouse, father and son/daughter, mother and son/daughter is possible. 5. Competitive interest rates on a monthly reducing balance 6. Loan tenure of 5 - 25 years (prior to borrowers age reaching 60 Years). 7. No personal guarantee or cash security .

Eligibility - 1. Age: At least 23 years. 2. Professional Experience: - Salaried: Employed for at least 2 years by a well-reputed organization - Self employed: Professional experience or business establishment for at least 2 years (with adequate proof) . 3. Minimum Monthly Income: - Salaried: BDT 40,000 - Self Employed: BDT 50,000

Requirements - 1. Mortgage and original title deed. 2. Property insurance covering fire, earthquake, flood, and cyclone . 3. Irrevocable General Power of Attorney (IGPA).

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2.Home Equity Loan - Home Equity Loan from HSBC is an opportunity for you to release some of the value tied up with your home. Whether you want to renovate your home or expand your own business, you can potentially receive cash against the equity in your home.

Features - 1. No personal guarantee or cash security . 2. Loan amount of BDT 500,000 - BDT 10 million (for Select, PVA and CEPS) BDT 500,000 - BDT 7.5 million (for General Customers). 3. Maximum loan amount of 70%* of the property valuation. 4. Loan facility against your residential house or apartment Competitive interest rates. 5. Interest is calculated on a monthly reducing balance. 6. A wide range of loan purposes - purchase of land, apartments, office space, renovation, extension or construction of houses, shops etc, educational expenses for children and many more. 7. Clubbing of income is allowed for immediate family members i.e. Husband, Wife, Father-Child, Mother-Child etc. 8. More flexibility with a loan tenure of maximum 15 years(for Select, PVA and CEPS) and 10 years for General. 9. Partial or early settlement facilities.

Eligibility - 1. Age: At least 23 years 2. Professional Experience: - Salaried: Employed for at least 2 years by a well-reputed organization - Self employed: Professional experience or business establishment for at least 2 years (with adequate proof) 3. Minimum monthly income of BDT 50,000

Requirement - 1. The concerned apartment must be occupied by the owner. 2. Age of the property must not be more than 20 years. 3. Registered mortgage in favour of HSBC and original title deed. 4. Irrevocable General Power of Attorney (IGPA). 5. Property insurance covering fire, earthquake, flood, and cyclone. 6. All documents stated in the application form and as required by the Bank must be submitted.

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3.Personal Lone – Wish you had enough money to take an overseas vacation? Maybe buy a computer or furniture? Now you can do all these and more, with a Personal Instalment Loan from HSBC.

Features - 1. Any Purpose Loan. 2. No Personal Security or cash security. 3. Simple Documentation. 4. The loan amount ranges from BDT50,000 to BDT1,000,000 However, in all cases the total approved amount will be within 30% of the total value of the goods / services availed through this financing. 5. Flexibility of choosing the repayment period (12, 24, 36, 48 or 60 instalments).

Requirement - 1. At least 23 years. 2. Employed by well established company. 3. Minimum monthly income BDT 15,000.

4. Car Loan - So you have found your dream car that you have always wanted. Now comes the difficult part - arranging for the funding. You approach banks and financial companies who want guarantees and securities against loans and you feel your dream slipping away. Now with a car loan from HSBC, you can make your dream come true.

Features - 1. No personal guarantee or cash security . 2. Wide range of loan amounts – - Minimum: BDT100,000 - Maximum: 30% of car value (as per Central Bank guidelines) up to a- Maximum of BDT 2,000,000* 3. Competitive interest rates 4. Interest is calculated on monthly reducing balance 5. Low processing fees 6. Flexible repayment schedule of 12, 24, 36, 48 or 60 months.

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Eligibility - 1. Age: At least 23 years 2. Professional Experience: - Salaried: Employed for at least two years by a well reputed company - Self-employed: Business establishment for at least two years (with adequate proof) 3. Minimum Monthly Income: - Salaried: BDT 20,000 - Self Employed: BDT 50,000

Requirement -1. Manufacturing year of the car must be within 5 years of application date2. The car must be covered under a comprehensive car

insurance policy 3. Documents stated in the Application Form

Deposit Product -

1. Smart Server Plan - Our Smart Savers Plan ensures that you have a secured future, so that you can enjoy today, plan for tomorrow, and be prepared for any unforeseen challenges. With Smart Savers Plan, you can bring in assurance to the lives of the people you adore.

Feature - 1. No sign-up fee 2. Attractive savings interest rates and competitive rates on Overdraft facilities 3. You can purchase as many units as you desire 4. The tenure of the plan is 3 years 5. Ideal units of BDT5,000; BDT50,000; BDT100,000 & BDT500,000. 6. Convenient monthly instalments of BDT1,000; BDT2,400; BDT4,700 & BDT23,062. 7. Overdraft facilities upto 90% against your deposit with a minimum amount of BDT90,000

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Terms and Conditions :1.To earn the maturity value, all the instalments must be paid

regularly 2.Final maturity value is subject to tax and excise duty as per local regulations.

2. Current Account - It's easy to manage your daily finances with an HSBC current account. Making payments has never been so simple. With a current account, you won't need to rush around to pay your bills. Simply write out a cheque and mail it at your convenience. What's more, with our ATM Card, you'll have access to your account and a wide range of banking transactions, 24-hours a day, seven days a week.

Easy Pay - Easy Pay machines offer customers and non-customers an easy, convenient and quick way to make deposits, payments and instructions. The Easy Pay machines provide services 24-hours a day, seven days a week.

ATM - Imagine being able to access your account through an ATM card, without having to visit a branch! You can access your current account via ATM 24-hours a day, seven days a week.

Phone Banking Service - Wherever you are in the world, you're just a phone-call away. Our Phonebanking Service lets you conduct your banking transactions - 24-hours a day, seven days a week, 365 days a year.

Personalised Chequebook - You also receive a free personalized Chequebook when you opencurrent account with us.

3. Savings Acoount - Savings Account is a secure, rewarding and accessible way to manage your routine money matters effectively. Its Savings Account allows you to complete any number of transactions without charge, penalties or a reduction in credit interest.

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Features –1. In your savings account there is no charge involved and no loss on

interest earned.2. You can access your savings account via ATM 24-hours a day,

seven days a week.3. PhoneBanking Service lets you conduct your banking transactions

24 hours a day, seven days a week, 365 days a year.4. Interest is calculated daily and credited to your account every 6

months.5. You should maintain a balance of BDT100,000 to receive daily

interest.

4. Term Deposit - If you are looking for a simple, safe and convenient way to makeyour money grow, look no further. Term Deposits from HSBC provide attractive rates,security, convenience and flexibility.

Features - 1. Minimum Deposit BDT 1,00,000 2. Flexible deposit periods to suit your needs. 3. Periods of time 1,3,6,12 or 24. 4. High interest with your deposit. 5. Renewal, transfer, or withdrawal facilities.

HSBC also provide another good which is maintained by ISLAMIC SHARIAH

is called - AMANAH Banking.

HSBC AMANAH banking provide two types of goods - A. AMANAH deposit schemes B. AMANAH financing schemes

A.AMANAH deposit schemes : At HSBC AMANAH , we constantly strive to offer SHARIAH compliant account services tailored to your business requirements. Our personal banking accounts combine the global expertise and excellent service quality of HSBC with the guidelines set by our SHARIAH committee . AMANAH deposit schemes provide - 1. AMANAH current account 2. AMANAH savings account 3. AMANAH term investment.

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B. AMANAH financing schemes : You can always depend on HSBC AMANAH Personal Finance for some quick relief with money. Get attractive profit rates as well as a wide range of repayment periods on your HSBC AMANAH Personal Finance helping you ease your financial burden. AMANAH financing schemes provide - 1. AMANAH personal finance. 2. AMANAH home finance. 3. AMANAH vehicle finance.

HSBC services - A. HSBC select B. Power vantage account.

A. HSBC Select - HSBC is pleased to offer you HSBC Select - a customised banking proposition offering exclusive privileges and unrivalled personal attention.HSBC Select is designed to provide you with a superior service offering, access to exclusive facilities, preferential pricing, convenient services and personal attention, allowing you greater personal and financial freedom.

Exclusive privileges - HSBC Select brings you exclusive travel, lifestyle, shopping and dining privileges at various high end outlets in Bangladesh.

Dedicated relationship manager - Receive one-on-one assistance from a personal relationship manager to manage all your financial requirements.

Privileged access - Exclusive HSBC Select centres offer a private lounge, reserved car parking for your convenience and priority service.

HSBC select also provide some other facilities such as - 1. Visa gold international credit card. 2. HSBC global select ATM card 3. Greater credit limit. 4. Emergency cash distribution. 5. Waiver and fees.

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B. Power vantage account - Power Vantage Account (PVA) is a unique customer proposition that is designed to meet your financial needs with a range of exclusive services.

Power vantage account provides - 1. Preferential service 2. Deposit service 3. Credit facilities

4. Insurance coverage 5. Funds management.

Internet Banking - 1. Phone Banking 2. Credit card. 3. Travellers cheques.

Other services - 1. Preferential service 2. Deposit service 3. Credit facilities

4. Insurance coverage 5. Funds management.

6.Company analysis :

A. SOWT analysis :

Strength -1. Global Banking.2. ATM Services.3. Outstanding Service.4. No 1 Financial Brand.

Weakness -1. Limited Branches.2. Limited Segmentation.3. Lot Of Documentation.

4. Maintenance Complexity.

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Opportunity - 1. Expanding Their Branches. 2. Evading The Account Maintenance. 3. Trying To Mass marketing. 4. Flexibility In Case Of Account Open.

Threats - 1. Lot Of Branches Of Local Branches. 2. Copying The Services Of HSBC. 3. Less Maintenance Cost Of Local Bank. 4. Less Deposit Rate.

B. Major competitor of HSBC -

Major competitors of HSBC in Bangladesh are - 1. Standard chartered.

2. City NA

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