1

GUIDE CERTIFICATE

This is to certify that Mr. SHIV PRAKASH GAUTAM a student of Master of

business administration course with specialization in Marketing, for the session

August 2004- July 2006 prepared project report entitled Sales promotion and

customer awareness of the services

at Standard Chartered Finance Ltd. From

1st June to 15th July under my guidance and supervision.

I wish him all success in life.

Prof. Yuvraj lahoti

(Marketing)

2

CERTIFICATE OF SUMMER TRAINING COMPLETION

This is to certify that Project Report titled Sales promotion and customer awareness

of the services

has been completed satisfactorily in partial fulfillment of Master of

business administration course for the academic year 2004-2006 by Shiv Prakash

Gautam, Student of Vishwakarma institute of management pune-37.

Place: Pune Director,

Date Vim, pune-37

3

S/No. TOPIC PAGE NO.

1 INTRODUCTION 4

3 COMPANY PROFILE 6

4 PRODUCT PROFILE 13

5 SCHEMES 26

6 OBJECTIVE 39

7 RESEARCH METHODOLOGY 42

8 DATA ANALYSIS 49

9 LIMITATIONS 58

10 CONCLUSION 61

11 RECOMMENDATIONS

63

12 QUESTIONNAIRE

65

4

A

REPORT ON

SALES PROMOTION AND CUSTOMER AWARENESS OF THE SERVICES

(MILEAGE)

FOR STANDARD CHARTERED FINANCE LTD.

BY SHIV PRAKASH GAUTAM

In the partial fulfillment of

The requirement of Masters of Business Administration

AT VISHWAKARMA INSTITUTE OF MANAGEMENT

(VIM) PUNE

*2004 2006*

5

ACKNOWLEDGEMENT

A Project usually falls short of its expectation unless guided by the right

person at the right time. Success of a project is an outcome of sincere efforts,

channeled in the right direction, efficient supervision and the most valuable

professional guidance.

This project would not have been completed without the direct and indirect

help and guidance of such luminaries. They provide me with the necessary

recourses and atmosphere conductive for healthy learning and training.

At the outset I would like to take this opportunity to gratefully acknowledge

the very kind and patient guidance I have received from my project guide Mr.

Ram S Patil (Area Sales Manager) without his critical evaluation and

suggestion at every stage of the project, this report could not have reached its

present form. In addition, my internal guide Prof.Yuvraj Lahoti has critically

evaluated my each step in developing this project report.

I would like to extend my gratitude toward Dr. Sharad L Joshi, Director of

Vishwakarma Institute of Management, for his technical and moral support

required for the realization of this project report.

Lastly, I would like to thank all the members of STANDARD CHARTERED

and my colleagues who gave me fruitful information to finish my project.

Place: Pune Shiv Prakash Gautam.

6

7

Standard Charted Bank Vision and Strategy

Standard Charted Bank has been established for over 150 years. It spans the

developed and emerging economics of the world with a network of over 500 offices in

more than 50 countries.

With an objective to become a world-class bank, Standard Charted has adopted the

strategies of:

Building a world-class business: Focus on core business, provide superior

customer services, and generate maximum returns and benefits for

shareholders.

Staying lean and focused: Invest in core business, optimal usage of resource,

and manage performance by balancing cost and risks.

Recognized as a wining organization: Developing capability to the fullest,

instill global, inject pride into the minds of the people to get connected to

Standard Charted Bank.

Overall this introduction part has been discussed under three different heads viz.

Industry Profile, Company Profile, and Services and Products profile for the

better comprehension.

8

9

Company profile

Overview

Standard Chartered is the world s leading emerging markets bank. Its headquarter is

in London. Its business however has always been overwhelmingly international. It

employees 30,000 people in over 500 offices in more than 50 countries in the Asia

Pacific Region, South Asia, Middle East, Africa, United Kingdom and the Americas.

It is one of the world s most recognized banks, with a management team comprising

70 nationalities.

The bank serves both consumers and Wholesale 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 provides services to multinational, regional and domestic corporate

and institutional clients in trade finance, cash management, custody leading, foreign

exchange and interest rate management and debt capital markets.

With nearly 150 years in the emerging markets, the banks has unmatched knowledge

and understanding of its customers in its markets. The bank is trusted across network

for its standard of governance and its commitment to make a difference in the

community in which it operates.

A summary of the events in the history of Standard Chartered

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 one has been found in 1853 following the grant of a Royal Charter from Queen

10

Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson,

who made his fortune in London making hats. James Wilson went on to start The

Economist, still one of the world s pre-eminent publications. Nine years later, in

1862, the Standard Bank was founded by a group of businessmen led by another Scot,

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 expansion of trade between Europe, Asia, Africa and to reap the handsome profit

to be made from financing the trade. The Chartered bank open its first branch in 1858

in Chennai and Mumbai. A branch opened in Shanghai that summer beginning

Standard Chartered unbroken presence in China. The following year the Chartered

Bank opened a branch in Hong Kong and an agency was opened in Singapore. In

1861, the Singapore agency was upgraded to a branch, which helped provide finance

for the rapidly producing rubber and tin industries in Malaysia. In 1862, The

Chartered bank was authorized to issue bank notes in Hong Kong. Subsequently it

was also authorized to issue bank notes in Singapore, a privilege it continued to

exercise up until the end of the 19th century. Over the following decade both the

Standard Bank and the Chartered Bank printed bank notes in a variety of countries

including China, South Africa, Zimbabwe, and Malaysia. Today Standard Chartered

is still one of the three banks, which print Hong Kong s bank notes.

11

Expansion in Africa and Asia

The Standard Chartered Bank opened for business in Port Elizabeth, South Africa in

1863. It pursued a policy of expansion and soon amalgamated with several other

banks including the Commercial Banks of Port Elizabeth, the Colesberg Bank, the

British Kaffarian Bank and the Fauresmith bank. The Standard bank was prominent in

the financing and development of the diamond fields of Kimberly in 1867 and later

extended its network further north to the new town of Johannesburg when gold was

discovered there in 1885. Over time, half the output of the second largest goldfield in

the world passed through the Standard Bank on its way to London. In 1892, the

Standard Bank opened for business in Zimbabwe and expanded into Mozambique in

1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the

Democratic Republic of Congo (D.R.C.) in 1911 and Uganda in 1912. Of these new

businesses, Botswana, Zanzibar and the D.R.C proved the most difficult and the

branches soon closed. A branch in Botswana opened again in 1934 but lasted for only

a year and it was not until 1950 that the Bank re-opened for business in Botswana. In

Asia the Chartered Bank expanded opening offices. Including Myanmar in 1862,

Pakistan and Indonesia in 1863, the Philippines in 1872, Malaysia in 1875, Japan in

1880 and Thailand in 1894. Some 34 years after the Chartered Bank appointed an

agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the

tea and the rubber industries. During 1904, a branch opened in Vietnam. Both the

Chartered and the Standard bank opened offices in New York and Hamburg in the

early 1900s. The charted Bank gained the first branch license to be issued to a foreign

bank in New York.

12

Standard Chartered PLC

In 1969 the decision was made by the Standard Bank and the Chartered Bank to

undergo a friendly merger thus forming standard Chartered PLC. It was one year later

that the descendants of the Chartered Bank of India, Australia and China were

finally permitted to open a representative office in Sydney, Australia. Standard

chartered subsequently acquired the UK based Hodge Group, in which it already had

a minority shareholding, and the Wallace Brothers Group. The Hodge Group brought

to Standard Chartered an extensive network of UK offices specializing in installment

credit and industrial leasing and after a period of rationalization its name was changed

to Chartered Trust limited. Standard Chartered operations in Jersey emerged from the

integration of other Hodge Group Business with those of Wallace Brothers Bank

(Jersey), Limited.

Standard Chartered decided, after a merger, to expand the Group outside its traditional

markets. In Europe a number of offices were opened including Austria, Belgium,

Denmark, and Ireland, Spain and Sweden as well as several major cities in the UK.

Standard Chartered also opened offices in Argentina, Canada, Colombia, the Falkland

Islands, Panama and Nepal. In the USA, a number of offices were opened and three

banks were acquired. These included the Union Bank of California, which gave

Standard a Chartered a presence in Brazil and Venezuela. The opening of a branch in

Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyds bank

of the UK made a hostile take-over bid for Standard chartered. Standard Chartered

won its right to remain independent but entered i8nto a period of considerable change.

By the late 1980s Standard Chartered already had considerable exposure to third

world debt. To this were added provisions against loans to corporations and

entrepreneurs who could not meet their commitments. Standard Chartered reviewed

its operations and decided to focus on its core strengths of Consumer Banking,

Corporate & Institutional Banking and Treasury in its well-established operations in

13

Asia, Africa and the Middle East. This led to a series of divestments notably in

Europe, the United States and Africa. During this time staff numbers were reduced,

businesses not considered core, were sold or closed, associate holding disposed of,

unprofitable branches closed and back office functions consolidated. In addition

expensive buildings were sold with the proceeds reinvested in the business, and the

senior, management team was radically changed and strengthened.

Standard Chartered in the 1990s

Even within this period of apparent retrenchment Standard Chartered expanded its

network, re-opening in Vietnam in 1990, Cambodia and Iran in 1992, Tanzania in

1993 and Myanmar in 1995. With the opening of branches in Macao and Taiwan in

1983 and 1985 plus a representative office in Laos (1996) Standard Chartered now

has an office in every country in the Asia Pacific Region with the exception of North

Korea. In 1998 Standard Chartered concluded the4 purchase of a controlling interest

in Blanco Exterior de los Andes extebandes) an Andean region bank involved

primarily in trade finance. With this purchase Standard Chartered now offers full

banking services in Colombia, Peru and Venezuela.

In1999, Standard Chartered acquired the global trade finance business of Union Bank

of Switzerland. This acquisition makes Standard Chartered one of the leading

clearers. There is, of dollar payments in the USA. Standard Chartered also opened a

new Subsidiary, Standard Chartered Nigeria Limited in Lagos, acquired 75 per cent of

the share capital of Metropolitan Bank of the Lebanon.

14

Standard Chartered current scenario

Today Standard Chartered is the world s leading emerging markets bank employing

30,000 people in over 500 offices in more than 50 countries primarily in countries in

the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas.

The new millennium has brought with it two of the largest acquisition in the history of

the bank with the purchase of Grind lays Bank from the ANZ Group and the

acquisition of the Chase Consumer banking operation 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 it sees its future

growth.

The bank is listed on both the London stock exchange and the stock exchange of

Hong Kong and is in the top 25 FTSE-100 companies, by market capitalization.

15

16

WHAT IS MILEAGE?

It is an overdraft facility for the car owner in which the car is evaluated and an

amount is estimated for the car. An account is opened in the name of the owner in

the standard chartered bank and the amount is than transferred to the account.

1. You can withdraw funds from your mileage account up to the sanctioned limit,

by cheque or Debit card.

2. The amount withdrawn each time reduces available limit.

3. Limit available increases on payments into the account, and or payment of the

minimum amount due each month.

4. Therefore, Credit Line revolves according to withdrawals and payments.

WHAT IS REVOLVING CREDIT?

1. You can withdraw funds from your mileage account up to the sanctioned

limit, by cheque or Debit card.

2. The amount withdrawn each time reduces available limit.

3. Limit available increases on payments into the account, and or payment of

the minimum amount due each month.

4. Therefore, Credit Line revolves according to withdrawals and payments.

PRODUCT FEATURES:

Cash Overdraft from 60% to 80% of assessed value of car less than 8

years old.

Interest outflow only on utilization, no fixed monthly installment, no

postdated cheques.

Free end use of facility, limit can be reused basis repayment made, Part

payment at will.

17

A Zero balance current or saving account in Standard Chartered Bank,

get multi city chequebook and Debit card.

Repayment: Customer will have the flexibility of paying the entire

Outstanding lump sum or repaying the minimum 5% outstanding billed

each month.

Cheque Drop Box: Cheque Drop Boxes are placed at convenient

location; customers can use those Drop Boxes to drop their repayment

cheque.

HOW CAN WE USE MILEAGE?

Get revolving credit to meet any need, with your car as security.

Use The Funds For:

1. Working capital requirements.

2. As a personal loan without the post dated cheques.

3. For unforeseen exigencies.

4. For a holiday

5. For renovation of the house.

6. For your child s education.

7. To buy a consumer durable

8. For any other purpose of your choice

18

WHAT ARE THE BENEFITS OF MILEAGE?

Revolving credit facility, with repeated usage of money.

The entire credit limit can be withdrawn in cash.

Multi-city cheque books on request at no extra cost.

Monthly statement of account on credit limits utilization.

1. Account statements with minimum amount due and due date

details.

2. Interest calculation sheet with details of dateless balances, interest-

bearing balances, debit interest, and credit interest. Sent monthly,

this helps you check how the interest was calculated.

No charges if the auto overdraft facility is not used.

Repayment flexibility, of minimum 5%of entire outstanding amounts

every month.

Interest charged only on debit outstanding, calculated on daily basis

but charged on monthly basis.

No charges if mileage facility for repayment cheques.

24 hour phone banking including queries on the mileage account.

(Available in select cities)

End use: can be used for multiple purposes.

Flexibility of use: withdrawal and repayment.

Interest charged: only on amount loan utilized.

Post dated cheques: None

Repayment amount: Flexible, minimum 5% of due every month.

Pre-closure Charges: 5.51% of Sanctioned limit

Rate of interest: 18% - 19.5%

Cash limit: 100% of limit sanctioned

19

WHAT ARE THE ADVANTAGES OF MILEAGE OVER CAR

LOANS

Feature Mileage Car Loan

End User Can be used for multiple purposes

Loan only for purchase of a car

Flexibility of use You and withdraw fund as and when required and repay as and when you want, subject to minimum payment of 5% of the amount outstanding.

You can withdraw only once at the start of the loan and have to pay fixed EMI each month

Interest Charged Interest outflow only on utilization

Fixed interest outflow commitments

Post dated cheque No post dated cheques to be given by the customer towards repayment

Repayment has to be done through post dated cheques given upfront

Repayment amount Based on ability each month (subject to minimum of 5% due every month)

Fixed installment

Part payment Possible (subject to a minimum of 5% due every month)

No part payment is allowed

Cash limit 100% of the credit limit can be withdrawn as cash

Only for a car loan. No cash limit

Other facility

ATM card and multicity chequebook.

Deposit free funds in the account and reduce interest outflow for even one day

Can reuse the limit after repayment

No such facility

No such facility to park free funds temporarily

Cannot reuse the limit after repayment

20

WHAT ARE THE BENEFITS OF MILEAGE OVER CREDIT

CARDS AND PERSONAL LOANS?

Feature Mileage Car Loan Personal Loan

End User Can be used for multiple purposes

Can be used for multiple purposes

Can be used for multiple purposes

Flexibility of use You and withdraw fund as and when required and repay as and when you want, subject to minimum payment of 5% of the amount outstanding.

You and can use credit limit as and when required and repay as and when you want, subject to a minimum amount due each month (5% of limit used and interest accrued).

You and withdraw only once at the start of the loan, and have to pay fixed EMI each month.

Interest Charged Interest outflow only on utilization

Interest outflow only on utilization

Fixed Interest outflow, commitment

Post dated cheque No post dated cheques to be given by the customer towards repayment

No post dated cheques to be given by the customer towards repayment

Repayment has to be done through post dated cheques given upfront

Repayment amount Based on ability each month (subject to minimum of 5% due every month)

Based on ability each month (subject to minimum of 5% due every month)

Fixed installment

Part payment Possible (subject to a minimum of 5% due every month)

Possible No part payment is allowed

Cash limit 100% of the credit limit can be withdrawn as cash

30-40% of the credit limit is cash limit. Use cash limit leads to transaction fees being imposed.

No cash limit

Other facility

ATM card and multicity chequebook.

Park free funds in the account and reduce interest outflow for even one day

Can reuse the limit

Credit Card.

Park free funds in the account and reduce interest outflow for even one day

Can reuse the limit after repayment

No such facility

No such facility to park free funds temporarily

Cannot reuse the limit after repayment

21

WHAT IS THE TENURE FOR THE OVERDRAFT FACILITY?

The overdraft facility is given for a period of one year and can be renamed for two

more years. The renewal is at the sole discretion of the bank.

WHO IS THE TARGETED CUSTOMER?

Salaried and self employed individuals include sole proprietors,

partners in partnership firm

Customers with repayment track record from approved financiers

serving as a surrogate of ability to pay

22

CAR TARGET

Car eligible for mileage Maruti 800, Omni, Zen, Alto, Wagon R,

Esteem, Santro, Tata Indica, Tata Sumo, Tata Indigo, Opel Corsa

(Only privileges @ 50%), Ford Icon, Maruti Baleno, Accent,

Mitsubishi Lancer, Honda City, Toyota Qualis, Fiat Palio, Scorpio,

Toyota Camry, Toyota Corolla etc.

Cars which cannot be financed in mileage

Fiat Uno, Opel Astra,

Matiz, Cielo, Tata Safari, Ambassador, Sienna, Sumo, Tata Spacio,

Mercedes etc.

Travel profiles, tourist board Registration vehicle cannot be financed.

Used cars we fund up to fourth owner of a car subject to 5% less than

normal funding.

Age norms:

Salaried=>21 to 60 yrs

Self Employed=>21 to 68 yrs (Customers age not to exceed 72

yrs after taking 3 year Mileage Tenor into account).

23

MILEAGE

The documentation for the Mileage proposal is divided into 3 parts .

1. KYC (Account Opening) Document.

2. RTO Documents.

3. Scheme Documents.

1. KYC (ACCOUNT OPENING) DOCUMENTS

Here we needs IAS (Identity, Address & Signature verification) Documents

For IDENTITY

1. Permanent Account Number (PAN) Card.

2. Driving License.

3. Passport

4. Voters ID Card

5. Any Govt. Dept ID Proof

For RESIDENTIAL ADDRESS

1. Electricity Bill

2. Telephone. Mobile, WLL Bill

3. Ration Card

4. Passport

5. Driving license

6. Life/Medical Insurance Policy

7. Voters Identity Card

8. Municipal Tax/Water Tax Bill

24

FOR SIGNATURE VERIFICATION

1. Permanent Account Number (PAN) Card.

2. Driving License.

3. Passport

4. Signature Verification from the Bank where applicant is holding saving,

current or cash credit account.

FOR ACCOUNT TO BE OPEN IN THE NAME OF FIRM

We can open account on the proprietorship, and partnership and Private Limited

Companies names.

FOR PROPRIETORSHIP FIRM

1. Shops and Establishment Certificate

2. Sales Tax Registration Certificate

3. Bank Statement of Firm account for the last 6 months and Business

Verification

4. SEBI Registration Certificate

5. Importer-Exporter Code Certificate + PAN proof OF proprietor

FOR PARTNERSHIP FIRM

1. Registered Partnership Deed

2. Sales Tax Registration Certificate

3. Bank Statement of Firms account + Banker Verification of signature

4. Importer-Exporter Code Certificate

5. Shops and Establishment Certificate

6. A Utility Bill in the name of firm with name and address match with AOF

25

FOR RESIDENT (PVT.LTD.) COMPANIES

1. MOA & AOA & True copy of Certificate of Registration

2. True Copy and Extract of Board Resolution

3. List of Shareholders who hold more over 20%

4. Bank Statement of Firm account for the last 6 months + Banker

Verification of signature

5. SEBI Registration Certificate

6. Sales Tax Registration Certificate & Shops & Establishment Certificate

26

27

1. VANILLA

Income based Program .

Funding: 60% for premium (C) segment.

65% for A & B segment.

Rate of interest: 18 %

Eligibility: Number of year at work should be 2 year.

Annual income must be more than Rs.60, 000/-

For salaried minimum exposure is Rs.50, 000/-

For salaried maximum exposure is Rs. 5 lac.

For self-employed maximum exposure is Rs.7 lac.

For self-employed minimum exposure is Rs. 50.000/-

Maximum number of cars for salaried 2. (No change in total loan eligible)

Maximum numbers of cars for self employed 3

Limit multiple: For salaried annual income into 1.

For self employed annual income into 2.

Co-applicant: For salaried & self-employed customers co applicant can be

taken to increase the income eligibility or to meet the income eligibility.

If the co applicant is taken to increase the income eligibility then one of the

two-borrower income should be 60,000/- or sum of both the income should be

more than or equal to Rs 1,00000/-

The Co-applicant can be blood relative or spouse.

Debit card will be issue only to the applicant.

A Salaried Employed of top 1500 companies.

Loan to value 75% @ 16% p.a.

Funding minimum 50,000and maximum 7 lacs.

MUV all variants of Opel, Lancer not eligible.

28

2. PRIVILEGES

Loan is given basis of customers auto repayment track with approved

financiers.

Loan to value: For A, B &C segments . 80%

Qualis 75%

Lancer & Corsa 50%

Rate of interest: Up to 65% funding: 18%

More than 65%: 19.5%

Lancer & Corsa: 19.5%

Eligibility:

Loan should be 12 months on book or one advance EMI+12 Monts

-For Qualis 50% tenure should be completed

-Not More than 2 cheques bounce in last 12 months.

Minimum for salaried: 50,000/- Maximum: 5 Lac.

Minimum for self-employed: 50,000/- Maximum: 10 Lac.

Maximum numbers of cars: Salaried-2.

Self employed-3.

Co-applicant for privilege has to be joint account holder with applicant/

For terminated loans: Loan completed less than 24 months, then last 12

months track is required.

-Loan completed before 24 months, and then last 12 months track with latest

Income proof will be considerable.

29

Privileges - 100% loan to value for salaried.

Target segment - salaried employee of top 1500 companies.

100% loan to value.

SCB / Non SCB approved financier track record with >= 12 MOB or 50%

tenor whichever is higher require for eligibility.

Normal pricing will be applied for such loans.

Valuation compulsory for cars.

Applicants to be never 30 dpd in the last 12 months to avail the privileges

offer.

MUVs / all Opel cars (opetra allowed) / Lancer to be excluded from the

program.

Segment D&E cars to include - Opel Opetra / Corolla / Skoda / Honda Accord

/ Honda CRV / Sonata.

Negative areas and / or negative profiles / caution profiles excluded from the

program.

Under privileges Pre approved program repayment track record to be on file-

without exception.

KYC documentation is mandatory.

Verification as per current applicable.

30

3. PERSONAL LOAN TRACK RECORD PROGRAM.

Repayments track on personal loan from any of the approved financier for the

program list as attached below.

Loan to value of 70%.

Repayment track of >=18% MOB with zero dpd (no single cheque bounce) in

last 12 months and zero 90 dpd in last 18 months

Last 12 month repayment track record or payment proofs I.e. cash receipts

with last 6 months bank statement with original repayment schedule for EMI

clearance validations

Applicable for A & B segments car only.

Maximum number of car under the program 1 car.

Valuation compulsory for all cars.

Minimum/ Maximum loan of INR 50K to INR 700K.

Verification RV/OV/CPV to be done.

Age of car at the time of application not to exceed 6 yrs.

Other criteria as per applicable as per MILEAGE PDD.

31

Approved

Financiers

2 WHEELERS

TRACK

PERSONAL

LOANS

Consumer Durable 2 Wheeler Home Loans Personal Loan

ICICI

GE Country

wide

Associates

City Crop

ICICI

GE Country

wide

Associates

City Crop

Bajaj Auto

Financ

Centurion Bank

HDFC Bank

Chola

Mandalam

ICICI

GE Country

wide

Citi Bank

Kotak

Mahindra Bank

SCB

ABN Amro

Bank

IDBI Bank

Chola

Mandalam

Indusind Bank

Bank of Baroda

Bank Of

Punjab

State Bank of

India

ICICI

GE Country

wide

Associates

City finan

Bajaj Auto Finc

Centurion bank

HDFC Bank

Sundram Finc

Chola

Mandalam

ABN Amro

IDBI Bank

Punjab National

Bank

Bank of Baroda

Bank of punjab

32

4. TWO WHEELER TRACK RECORD PROGRAM

Two wheeler track records from any approved financier as per the list

attached.

Loan to value 75%.

Minimum monthly EMI amount of Rs. 1000/- paid for minimum of (12 MOB

or 50% loan tenure whichever is higher) with zero dpd in last 12 months.

Original repayment track record or bank statement with original repayment

scheduled for validations require.

Applicable for A&B segment cars only.

Maximum number of car under the program -1car.

Valuation compulsory for all cars.

Minimum / maximum loan of Rs. 50K / Rs. 700K.

Age of the car at the time of application not to exceed 6 years.

Other criteria as per MILEAGE PDD.

33

5. HOME LOAN TRACK RECORD PROGRAM

Repayment tracks on home loan from any of the approved financier for the

program list as attached below.

Loan to value of 70%.

Minimum monthly EMI amount of Rs. 6000/- for metro locations and Rs.

4000/- for non-metro locations.

Repayment track of = 24 MOB with zero dpd in last 12 months and no dpd in

the last 18 months.

Last 24 months repayment track record of payment proofs with last 6 months

bank statement with original repayment schedule for EMI clearance

validations.

Eligible for all car models as per loan to value grid except for MUVs / all

variance of Opel / lancer.

Maximum number of cars under the program 1 car.

Valuation compulsory for all the cars.

Verifications RV /OV / CV to be done.

Age of the cars at the time of application should not exceed 6 years.

Other criteria as per MILEAGE PDD.

34

6. CONSUMER DURABLE TRACK RECORD PROGRAM

Consumer durable loan from any of the financiers mentioned in the list below:

loan to value of 75%.

Minimum monthly EMI amount of INR 1000 for minimum 8 MOB with zero

dpd in the last 8 months. Original repayment track recorded or payment proofs

or bank statement with original repayment scheduled for validations required.

Applicable for A&B segment cars only.

Maximum number of car under the program -1car.

Valuation compulsory for all cars.

Minimum / maximum loan of Rs. 50K / Rs. 700K.

Age of the car at the time of application not to exceed 6 years.

Other criteria as per MILEAGE PDD.

35

7. S C B CREDIT CARD SURROGATE.

Card member for minimum 1 year.

Card limit: A&B Rs. 20000/-

C - Rs. 25000/-

Card risk score 335.

LTV is 80%.

Rate of interest 19.5%.

No. of cars under the program 1.

Limit multiple: 6 time of card limit or LTV 80% Whichever is less.

36

8. OTHER BANK CREDIT CARD

Card member for 1 year.

Card limit 25000/.

Utilization to be lower than 75% of limit

Repayment ratios to be at least 10% of outstanding for last three months.

Cash spends not to exceed more than 20% of limit in last three months.

No 30 dpd in any the three statement.

3 Months statement required if card is 12 months old.

Only 1 statement is required if card is 2 year old.

Maximum Funding-70%

Applicable Banks: American Express.

HSBC

A B N Ambro

S B I, GE

ICICI Bank

HDFC Bank

37

9. BANK STATEMENT SURROGATE

Saving / current account with private / Nationalized or Multi Nationalized

Bank.

65% funding for all cars.

Rate of interest 18%

12 months old account required.

Average balance requires as follows in 4 months out of last 6 months

B. Segment- Rs 5000/-

C. Segment- Rs 7500/-

D. Segment- Rs 25000/-

No inward cheque bounces in last 6 months.

Minimum 15 transactions in last 6 months.

How to calculate the average Balance

Take Average balance from Day 1 to 3-higher balance A

Day 12 to 16-higher balance B

Day 27 to 30-higher balance C

Average Balance=A+B+C/3

38

10. INSURANCE SURROGATE

2 years old policy.

65% funding.

18% rate of interest.

Only for self employed professions.

Maximum cars 1.

Annual premium required

A segment 7500

B segment - 10000

C segment 15000

.Latest premium should be paid.

LIC policies can be clubbed.

Joint policies can be accepted subject to the applicant being a payer in the

policy.

Eligible insurance companies are

Royal Sundaram

Aviva Insurance.

Bajaj Allianz.

Metlife.

Om Kotak.

Prudential ICICI.

LIC.

39

40

OBJECTIVE OF THE STUDY

The study was designed and conducted to accomplish the following

objectives:

1. To create market awareness.

2. To know about decision makers.

3. To analyse the market potential of the product Mileage .

4. To judge the level of awareness for product Mileage

5. To check the satisfaction level of existing customers.

6. To know about customer preference.

7. To identify the criterion on the basis of which customer selects a particular

bank.

41

42

RESEARCH METHODOLOGY

Meaning of Research:

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific

topic. In fact, research is an act of scientific investigation. The advanced learner s

Dictionary of Current English lays down the meaning of research as a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge. Redman and Mory define research as a systematized effort to gain new

knowledge.

Research is an academic activity and as such the term should be used in a technical

sense. According to Clifford Woody research comprises defining and redefining

problems, formulating hypothesis or suggested solution; collecting, organizing and

evaluating data; making deductions and reaching conclusions; and at last carefully

testing the conclusion to determine whether they fit the formulating hypothesis. It is

the pursuit of truth with the help of study, observation, comparison and experiment. In

short, the search for knowledge through objective and systematic method finding

solution to problem is research.

43

Objectives of research:

The purpose of research is to discover answer to questions through the application of

scientific procedures. Through each research study has its own specific purpose, we

may think of research objectives as falling into a number of following groups: -

To gain familiarity with a phenomenon or archive new insights into it.

To portray accurately the characteristics of a particular individual, situation or

a group.

To determine the frequency with which something occurs or with which it is

associated with something else.

To test a hypothesis of a casual relationship between variables.

Meaning of research methodology:

Research methodology is a way to systematically solve the research problem. It may

be understood as science of studying how research is done scientifically. In it we

study various steps that are generally adopted by a researcher in studying his research

problem along with logic behind them. It is necessary for researcher to know not only

the research methods/ techniques but also the methodology. Research methodology

has many dimensions and research methods do constitutes a part of the research

methodology. Thus when we talk of research methodology we not only talk of

research methods but also consider logic behind the methods we use in context of our

research study and explain why we are using a particular method or technique and

why we are not using others so that research result is capable of being evaluated either

by the researcher himself or by others.

44

Research process:

Before embarking on the details of research methodology and techniques, it seems

appropriate to present a brief overview of research process. Research process consists

of a series of action or steps necessary to effectively carry out research and the desires

sequencing of these steps. The following order concerning various steps provides a

useful procedural guideline regarding the research process:

Formulating the research problem.

Extensive literature survey.

Development of working hypothesis.

Preparing the research design.

Determining sample size.

Deliberate sampling.

Simple random sampling.

Systematic sampling.

Stratified sampling.

Quota sampling.

Cluster sampling and area sampling.

Multi stage sampling.

Sequential sampling.

Collecting the data.

By observation.

Through personal interview.

Through telephone interview.

By mailing of questionnaires.

Through schedules.

45

Execution of the project.

Analysis of data.

Hypothesis testing.

Generalization and interpretation.

Preparation of the re port or the thesis.

Types of Research:

Descriptive research.

Analytical research.

Applied research.

Fundamental research.

Quantitative research.

Qualitative research.

Conceptual research.

Empirical research.

The above-mentioned are the various type of research, which a researcher can apply

in order to achieve one s desired objective. Therefore to achieve the objectives of my

research I have used descriptive research.

This will be based on proper Research design to meet the objectives of the project /

study.

46

Sampling

It involves procedures that use a small part of population to make conclusion

regarding the whole population.

Sampling plan for the project.

Geographical / sample area: All peth area, Wanewari, Hadapsar, M.G.Road

kondhwa, Bibewadi, Dhankawdi, Lulla Nagar, Sahakar Nagar, Swar Gate.

Sampling unit: Corporate offices and local residential areas.

Sample size: 400

Sample procedure: Random

Target Customer: Old customer of the Standard Chartered Bank who had

car loan in the past.

47

DATA COLLECTION

The project was to check feasibility of the services offered by Standard Chartered

using both primary and secondary data. The primary data was obtained through

observation, direct communication with the people and filling up of questionnaires,

also enormous help was obtained from Standard Chartered, branch seniors and

colleagues working there.

The secondary data was collected through the

Internet

Journals, newspapers & Magazines

FIELD WORK PLAN

The fieldwork was carried according to the sampling plan formed, by visiting the

offices and small business enterprises/firms under some limitations and time

constraints.

The main motive for these visits was to identify the potential customers or the

potential market. A two-way discussion was done which the customers were made

aware of the services of Standard Chartered. The questionnaires are either directly

filled up or indirectly filed up by the people and through this the prospect of the areas

where these campaigns were put up.

48

PROMOTIONAL ACTIVITIES

The promotion of the LIABILITIES PRODUCTS of STANDARD CHARTERED is

being done by

1) Setting up promotional Stalls in the premises of some Corporate

Companies

2) Promoting the product through Direct Communication.

FINDINGS

Most of the services provided by Standard Chartered Bank is almost the

same as any other private or multinational banks statement charges, phone

banking automatic cheque book recorder, multi branch banking, investment

advisory services, net banking, de-mat, overdraft, corporate salary accounts,

priority banking, doorstep banking.

However, Standard Chartered Bank gives 100% withdrawal in all the saving

account.

Study shows that customers feel a status symbol by banking with Standard

Chartered Bank.

49

50

1. AWARENESS ABOUT MILEAGE

The study suggests that awareness level about mileage among the car owners is

very low.

TABLE-1

AWARENESS ABOUT MILEAGE

0%

38%

62%

AWAREABOUT ABOUT

MILEAGE

Yes

No

Interpretation

62% people do not know about Mileage and its features, most of the people who

know about mileage know it, as they are existing customers of Standard Chartered. If

awareness level increases market share is likely to increase.

AWARE ABOUT

MILEAGE

No. Of

People

Yes 38%

No 62%

51

2. Outcome of the survey to find out the break down of existing customers

According to Profession

Table-2

% BREAK DOWN OF EXSISTING CUSTOMERS

0%5%

10%15%20%25%30%35%40%

SH

OP

OW

NE

R

BU

SIN

ES

SM

AN

(OW

NE

R O

FS

SI,

s)

EM

PLO

YE

ED

(PV

T.

SE

CT

OR

)

GO

VT

.E

MP

LOY

EE

S

PR

OF

FE

SIO

NA

LS(D

octo

rs,

Law

yers

,C

As

etc)

SHOP OWNER 36%

BUSINESSMAN (OWNER OF SSI, s) 24%

EMPLOYEED (PVT. SECTOR) 20%

GOVT. EMPLOYEES 12%

PROFFESIONALS (Doctors, Lawyers, CAs etc) 8%

52

Interpretation

The above analysis reveals the fact that out of maximum of the masses Shop owners

and owners of small-scale industries are mostly interested, as they require money for

short term. Salaried people are also very interested as it gives them an immediate

source of money at the time of urgency.

3. Satisfaction Level of the existing Mileage customers

TABLE-3

0%

10%

20%

30%

40%

50%

60%

70%

80%

VERYSATISFIED SATISFIED DISSATISFIED

Response No. Of People

VERYSATISFIED 16%

SATISFIED 65%

DISSATISFIED 19%

53

Interpretation

65% of the sample from existing customer is satisfied, where as 16% customers are

very satisfied while 19% people are dissatisfied. Majority of dissatisfied customers

are from the business class, they want prompt service. Interaction with employees is a

major reason behind the large number of satisfied customers.

4. Percentage break down of people who are interested in subscribing for an

O.D. product like Mileage.

TABLE-4

67%

33%

Yes

No

INTERESTED No. Of People

Yes 67%

No 33%

54

Interpretation

Mostly people get attracted to the product but are not aware about the utility and the

features. Increase in awareness level about the product will result in increased

customer base. The people who show no interest are because they are suspicious

about the product and company. Most people are not interested in dealing with a new

bank that too private sector.

5. Market share for Car based O.D. product in the sample

TABLE-5

Name of Product No. Of People

Mileage 69%

ICICI Car O.D. 23%

HDFC 8%

55

No. Of People

69%

23%

8%

Mileage

ICICI Car O.D.

HDFC

Interpretation

Mileage is the market leader with 69% market share, though the share of ICICI is

increasing fast.

56

SWOT ANALYSIS

STRENGTH

Limited competition.

Good reputation of the bank.

Quality of service.

Highly cooperative and efficient DST.

Experience of 150 years.

Exclusive Products.

Use of modern technology like Tele Banking, ATMs etc, which makes service

delivery faster.

Wide range of services and product to suit all customer segments.

Operational efficiency

WEAKNESS

Target customer base very small.

No presence in semi urban sector.

Promotional campaigns are nearly absent.

Poor advertising.

Less number of ATM s and Branches (In PCMC area).

High interest rates.

57

OPPORTUNITIES

Can build a strong distribution network in semi urban cities to trap the

untouched market.

Customer education will improve the customer base.

Increasing awareness will result in increase in customer base.

None of the players in the market is concentrating on this category of the

product.

Numbers of car drivers are increasing very fast, especially with IT boom Pune

has high potential.

THREATS

Competition with big giants like ICICI and HDFC.

Spread of risk.

Challenges posed by other companies in the market.

Overdraft rates have gone high.

Lower customer base may hinder prompt service.

58

59

LIMITATIONS

Public happens to be a little hesitant in disclosing their financial dealings with

everyone.

Moreover, people are much more conscious and are of view that they have enough

knowledge of the products and services provided by the various banks.

On the other hand, people banking with their own banks for 15 to 20 years are more

loyal and are less susceptible to switch over to Standard Chartered. Here they are

being provided with all the facilities. They do not try to break up their long lasting

relationship. Thus, to change mindset of the customer requires a lot of time and

cannot be done easily.

The other major drawback is that the accounts personnel are not ready to give much

information about customers banking with them. They would not talk about

investments made by the CEOs, MDs etc. As far as the corporate level is concerned,

they are still more comfortable to share information.

The aim of the research was to check the feasibility of the services provided by

Standard Chartered Bank on the basis of primary and secondary data and also to

check the awareness of the services offered by the same and analyze the data available

with the help of various statistical methods.

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61

CONCLUSION

The Standard Chartered Bank has a global presence. It has acquired good recognition

in India also. This can be attributed to the fact that the services being offered by the

bank has been carefully developed, over the years, after studying the subtleties of

Indian market.

The bank offers a wide range of products and services to meet the requirements of

varied customers, as customers satisfaction is their prime concern. They aim at

making banking convenient for their customers by offering services like Internet

banking, phone banking, doorstep banking, ATM Services and so on. Each

service/product, offered by the bank is designed for a particular market segment.

Moreover, maintaining a relationship along with standard Chartered is a status symbol

for people and they really feel proud to be with Standard Chartered.

The adage customer is the king is at last becoming a reality with nifty banks making

effort to upgrade and differentiate their services to widen their customer base.

Bank has only 3 ATMS in Pune. And thus are more then 2500 satisfied customers of

then special service MILEAGE of Standard Chartered.

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63

RECOMMENDATIONS

As far as the findings are concerned, the service at the standard Chartered bank is

satisfactory. From the study I have conducted and knowledge i have acquired from it,

I recommend following improvements:

Setting of more branches in the in pune region as there is only one branch

where as the closest rival ICICI bank has eight branches. Thus covering more

area and in the reach of more customer.

Opening more ATM centers as it has only three, where as ICICI has thirty-five

ATMs. Thus ICICI is the biggest rival of the bank and it become necessary to

compete with ICICI to remain as market leader. Creating awareness among the

customer and by promotion and advertisement can do it.

More importance should be given to increase customer base that is the most

important thing to bring business and this can be done by

1. Surveys.

2. Putting stalls.

3. Participating in trade fairs.

4. Advertising in leading News Paper regularly.

5. Targeting the old customer.

6. Collecting Data from.

- RTO

- Leading financier

Speed to deliver service should be increased. It can be increased by.

1. Having a good and very active sales force.

2. Making a separate department for service delivery.

3. Creating awareness among the customer about the services offered.

64

More efforts should be made to retain the customer. Retaining customer is one

of the important things that the bank should concentrate on because it is

cheaper to retain a customer so as to find a new customer and an old customer

does not need too much only just recognition. This can be done by following

ways

1. Sending letters about the new offers.

2. Making new scheme for the old customer.

3. Giving concession for continuous loan.

4. Greeting on every occasion/Festival with new proposal.

5. Making phone calls.

Customer who has car loan in the past can be good scope.

65

QUESTIONAIRE

NAME: _________________________________

PROFESSION _________________________________

INCOME GROUP ________________________________

CAR ________________________________

Have you taken loan to purchase the car? Yes No

If Yes. Is it lying or terminated

Lying Terminated

Have you subscribed for any over draft facility against you car?

Yes No

If Yes, which one

Mileage ICICI Car O.D.

HDFC Car O.D.

Have you heard of Mileage before

Yes No

If yes, from where did you know about it

Sales Executive Tele Calling

E mail Bank Employees

Advertising Other Source

____________________________

If you are an existing customer. How satisfied you are

Very Satisfied Satisfied

Dissatisfied

66

Have you dealt with Standard Chartered before?

Yes No

How will you rate the service level?

Good Average Bad

How will you rate the interaction with employees?

Good Average Bad

When you require money in emergency what sources do you rely?

Friends/ Relatives O.D.

Personal loan Borrow money from Market

Other ____________________________________

Would you like to subscribe for an O.D. instrument like Mileage ? Yes No

If No Why? ______________________________________________________

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