general banking hsbc
TRANSCRIPT
R E P O R T
OO NN
BBANKINGANKING A ANDND B BANKANK AACCOUNTSCCOUNTS
Prepared for,M. Amirus Salat
Lecturer
Department of AIS
University of Dhaka
Prepared by,
Group Ten
10th Batch [Section-A]
BBA Program
Department of AIS
University of Dhaka
Date of Submission: March 3, 2007
GENERAL BANKINGGENERAL BANKING
ININ
HSBC BANGLADESHHSBC BANGLADESH
CCOURSEOURSE N NUMBERUMBER: 3101: 3101
CCOURSEOURSE: T: THEORYHEORY & P & PRACTICESRACTICES OFOF
BBANKINGANKING & B & BANKANK A ACCOUNTSCCOUNTS
DDEPARTMENTEPARTMENT O OFF AIS AIS
UUNIVERSITYNIVERSITY OFOF D DHAKAHAKA
GROUP TEN:MEMBERS
Mohammad Samsul Alam [10025]
Farhana Sultana [10035]
Kazi Rahala Jahan Noor [10037]
Md. Saidul Kabir Khan [10053]
Md. Abu Isha Bhuiyan [10055]
Mohammad Al Amin [10070]
Farhana Amin Tonny [10084]
Leena Afroz Mostofa [10085]
March 3, 2007
M. Amirus Salat
Department of AIS
University of Dhaka
Dear Sir,
We have the honor to present the report on General Banking
in HSBC that you asked us to submit on March 3, 2007.
This report is concerned with the major functions of general
banking and its practical implementation in HSBC Bangladesh.
HSBC Bangladesh has numerous areas of operation of the bank,
i.e. general banking, credit sanction and foreign exchange
operation. This report focuses on the study of general banking
operation of the bank.
It was our pleasure to complete this report. Our heartiest
gratitude goes to you for your kind support and encouragement.
We have prepared this report with utmost sincerity and earnest
effort. Please let us know if you have any query regarding the
report.
With regards,
Yours sincerely,
The members of Group Ten
10th Batch, Section-A
BBA Program
Department of AIS
University of Dhaka
PREFACEPREFACEBank is the largest mobilizer of surplus
domestic savings. It is one of the vital financial institutions for
a country. It constitutes a major force in the financial system.
Bangladesh is no exception in this case. In Bangladesh the
financial institutions include various banks and Non-banking
financial institutions i.e. ICB, insurance and leasing
companies. Here banking sector comprises of central banking
i.e. the Bangladesh Bank, commercial banking i.e.
nationalized, private and foreign sector banks; and
specialized banking like BSB, BSRS, BKB, RAKUB etc.
Banks help capital formations and the capital formations help
investments in the country. The investment in its turn helps
industrialization leading towards creation of wealth of the
country. And the wealth finally takes the country on road to
progress and prosperity.
This report analyzes the commercial sector banking through a
study on HSBC Bangladesh, one of the leading foreign
commercial banks in Bangladesh. It emphasizes on significant
aspects of general commercial banking of HSBC Bangladesh
i.e. Personal Financial Service, Special Savings Plan: My
Future, Corporate Banking, HSBC premier Banking and Local
Banking: Amanah.
- iii -
AcknowledgementsWe gratefully acknowledge the assistance of
Mr. M. Aminus Salat of Department of AIS, University of
Dhaka; without whom this report would have been
incomplete. His continuing generous encouragement and
moral support have motivated us to do better presentation.
We earnestly thank him for this special endeavor to enhance
business communication skill and report writing. This attempt
also helped us to do comprehensive study on commercial
banking and boost our knowledge.
A special recognition goes to Monjor Hossain Dipto, Senior
System Supervisor, HSBC Bangladesh for his cooperation in
preparing the report.
We would like to recognize the contributions of Saiful Islam,
Branch Manager, HSBC Bangladesh.
- iv -
Preface V
Acknowledgements VI
Executive Summary IX
1.0 Introduction 01
2.0 Research Methodology 01
3.0 Company Overview: HSBC Bangladesh 02
4.0 Areas of Operation 03
5.0 Personal Financial Assistance 03
5.1 Managing Money 04
5.1.1
Savings Account 04
5.1.2 Savings Plus Account 05
5.1.3 Current Account 06
5.1.4 Daily Money Management 07
5.1.5 ATM Cards 07
5.1.6 Phone Banking 09
5.1.7 PowerVantage 09
5.1.8 CEPS 10
5.1.9 Online Branch Banking 11
5.1.10 Credit Card 13
5.2 Savings and Investment 14
5.2.1 Monthly interest bearing time deposit 15
5.2.2 Investment Watch 15- v -
5.2.3 Term Deposit 16
5.3 Traveler’s Cheque 17
6.0 Special Savings Plan: My Future 18
6.1 Children Savings Plan 18
6.2 Education Saving Plan 20
6.3 Family Protection Plan 21
6.4 Holiday Savings Plan 22
6.5 Peace of Mind Savings Plan 23
6.6 Retirement Savings Plan 24
7.0 Corporate Banking 25
7.1 Import Service 25
7.1.1 Import Collection 26
7.1.2 Shipping Guarantee 26
7.2 Export Service 27
7.3 Trade Express 27
7.4 Payment and Collection 28
7.5 Hexagon Cheque Writer 39
7.6 Electronic Banking 30
8.0 HSBC Premier Banking 31
9.0 Local Banking: Amanah 32
9.1 Amanah Current Account 33
9.2 Amanah Import Finance 34
8.0 Conclusion 35
References 37
- vi -
EXECUTIVE SUMMARYEXECUTIVE SUMMARYThe authors of
this report have tried to figure out the general banking
services provided by HSBC Bangladesh. HSBC has positioned
itself as the world’s local bank. It started operation in 1996 in
Bangladesh and currently has a network of 5 branches as the
2nd largest foreign commercial bank in the country. HSBC
Bangladesh provides a variety of services in different
categories, like Personal Financial Assistance, Special Savings
Plan: My Future, Corporate Banking, HSBC Premier Banking
and Local Banking: Amanah.
Personal Financial Assistance have been categorized as:
Managing Money Service i.e. savings account, savings plus
account, current account, ATM cards, phone banking, daily
money management, credit card service, Online Branch
Banking, PowerVantage and Corporate Employees Privilege
Scheme; Borrowing Money Service [part of credit sanction
function], i.e. personal secured loan and personal secured
credit; Savings and Investing Service i.e. monthly interest
bearing time deposit, Investment Watch and term deposit;
and Traveler's Cheque Service.
- vii -
Special Savings Plan or My Future comprises of the
Education Savings Plan, Family Protection Plan, Children
Savings Plan, Holiday Savings Plan, Retirement Savings Plan
and Peace of Mind Savings Plan.
Corporate Banking offers facilities like Import Assistance,
DP/DA Purchase, Guarantee & Bonds, Business Banking,
Export Assistance, Payment Collection, Trade Express,
Hexagon Cheque Writer Service and several other services.
HSBC Premier Banking is a global service proposition
reserved for clients who maintain an average monthly credit
balance of Tk. 4 million in Current, Savings or Fixed Deposit
accounts.
HSBC Amanah Banking is a part of Local Banking in full
compliance with the Shariah principles with interest free
deposit and loan.
- viii -
General Banking in HSBC Bangladesh
1.0 INTRODUCTION
In today’s aggressive economic system there has been a call for
mobilizing surplus fund to deficit business unit. A bank is a
business organization that accepts money and collects and
honors cheques for its clients, keeps current account and does
all sorts of banking functions i.e. transferring, paying, lending,
investing, dealing, exchanging and servicing to mobilize idle
fund in the economy to achieve growth and stability. As a
commercial bank HSBC Bangladesh is no different. To build the
right relationship with the clients of the diversified taste it is
indispensable for the banks to offer lucrative and unique
commercial services and schemes. This report focuses on the
general banking provided by HSBC Bangladesh - a leading
multinational banking organization in Bangladesh. HSBC
Bangladesh, after commencement of its operation in
Bangladesh in 1996, has been till date the second largest
foreign bank in Bangladesh. HSBC Bangladesh has a network of
5 branches with 11 ATMs and 5 sales and service centers in the
country with services ranging from current account to fixed
deposit account, from credit card, ATM & Easy Pay service to
phone & online banking, from investment & corporate banking
to a variety of credit and savings schemes to meet the demand
from clients of all walks of life.
2.0 RESEARCH METHODOLOGY
This report is concerned with both the theoretical and empirical
study on HSBC Bangladesh’s commercial banking. For the
theoretical review various journals have been taken under
consideration. For practical case study on HSBC, both primary
and secondary data have been used. For primary source, the
interviews with the HSBC Bangladesh personnel and
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General Banking in HSBC Bangladesh
questionnaire among bankers have been used. Articles on
various journals and newspaper reviews and advertisements are
taken as secondary sources of data. Websites on related
banking issues have served as reference to some data.
3.0 COMPANY OVERVIEW: HSBC
HSBC claims to be the world's local bank. Headquartered in
London, HSBC is one of the largest banking and financial
services organizations in the world. HSBC's international
network comprises over 9,500 offices in 76 countries and
territories in Europe, the Asia-Pacific region, the Americas, the
Middle East and Africa. It is a part of HSBC Group.
With listings on the London, Hong Kong, New York, Paris and
Bermuda stock exchanges, shares in HSBC Holdings plc are held
by nearly 200,000 shareholders in some 100 countries and
territories. The shares are traded on the New York Stock
Exchange in the form of American Depositary Receipts.
Through an international network linked by advanced
technology, including a rapidly growing e-commerce capability,
HSBC provides a comprehensive range of financial services:
personal financial services; commercial banking; corporate,
investment banking and markets; private banking; and other
activities.
The HSBC Group has an international pedigree which is unique.
Many of its principal companies opened for business over a
century ago and they have a history which is rich in variety and
achievement. The HSBC Group is named after its founding
member, The Hong Kong and Shanghai Banking Corporation
Limited, which was established in 1865 to finance the growing
trade between China and Europe. The HSBC corporate character
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General Banking in HSBC Bangladesh
defines the values and principles inherent in all everyday
dealings.
HSBC has been named as the "Best consumer bank" by Global
Finance magazine at its annual awards for the world's best
banks. Global Finance magazine chose the World's Best Banks
based on performance over the past year and other subjective
criteria including reputation and management excellence. The
editors of Global Finance made all the selections after extensive
consultation with bankers, corporate financial executives and
analysis throughout the world.
HSBC commenced its business in Bangladesh as HSBC
Bangladesh in 1996. It operates from 9.00 a.m. to 3.00 p.m.
from Sunday to Thursday. Having head office in Anchor Tower,
Dhaka HSBC Bangladesh has 5 branch offices including Amanah
Service Office in Dhaka and one branch in Chittagong.
4.0 AREAS OF OPERATION
HSBC Bangladesh is committed to offer an entire variety of
financial services: from personal financial services to corporate
banking; from investment banking and markets to foreign
exchange; and other activities. This report emphasizes on
general banking area of HSBC Bangladesh.
These activities can be classified as the following groups:
Personal Financial Assistance
Special Savings Plan: My Future
Corporate Banking
HSBC Premier Banking
Local Banking: Amanah
Other Services:
Investment Banking
Bill Purchase and Discounting
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General Banking in HSBC Bangladesh
Locker Service
Underwriting
5.0 PERSONAL FINANCIAL ASSISTANCE
HSBC’s Personal Financial Assistance is targeted to the mass
clients for their general needs.
This service comes under four categories:
Managing Money
Borrowing Money
Savings and Investing
Traveler's Cheque
Borrowing money service is the part of credit sanction function.
Thus it is not discussed here in the report.
5.1 MANAGING MONEY
Managing Money Service comprises of:
Savings Account
Savings Plus Account
Current Account
Daily Money Management
ATM Cards
Phone Banking
PowerVantage
Corporate Employees’ Privilege Scheme [CEPS]
Online Branch Banking
Credit Card
5.1.1 SAVINGS ACCOUNT
Savings Account is a secure, rewarding and accessible way to
manage routine money matters effectively. HSBC Savings
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General Banking in HSBC Bangladesh
Account allows its clients to complete any number of
transactions without charge, penalties or a reduction in credit
interest.
SALIENT FEATURES:a. No Ledger Fees
b. No limit on number of transaction:
No matter how many transactions the clients make in
savings account, there is no charge involved and no loss
on interest earned.
c. ATM Service:
The clients have the facility of being able to access the
account through an ATM card, without having to visit a
branch24-hours a day, 7 days a week.
d. Phone Banking:
HSBC believes wherever the clients are in the world, they
are just a phone call away. HSBC PhoneBanking Service
lets them conduct their banking transactions - 24-hours a
day, seven days a week, 365 days a year.
e. Interest on daily balance:
HSBC’s interest rate structure encourages saving. Interest
is calculated daily and credited to the client’s account
every 6 months.
f. Personalized Cheque Book:
The clients also receive a free personalized cheque book
when they open a savings account with HSBC.
g. Minimum Balance:
The clients should maintain a balance of TK.50,000 to
receive daily interest.
INTEREST RATE:Interest Rate for savings account is 3.75% for savings of 1 lac to
10 lac and 4% for savings above 10 lacs.
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General Banking in HSBC Bangladesh
DOCUMENTS REQUIRED:a. Completed account opening form.
b. Passport size photograph for each account holder.
c. Proof of identification such as passport, driving license or
voter's ID.
5.1.2 SAVINGS PLUS ACCOUNT
With HSBC's Savings Plus Account, the clients can earn their
interest from their account on a monthly basis rather than at
the end of six months.
SALIENT FEATURES: Interest will be paid at the end of each month instead of six
months
Free ATM card with daily withdrawal limit of TK.50,000
Free phone banking facilities
Free personalized cheque-book
Monthly statements
The scheme is designed for the benefit of the persons who
intend to meet the monthly budget of their families from
the income out of their deposit.
Also suitable for investment of fund of Trusts and
Foundations, which award monthly scholarships/ stipends
to students, etc.
In case of death of a depositor, the account shall cease to
be operative and the amount deposited so far shall be paid
to the nominee, and in the absence of nominee, to the legal
heirs of deceased as per rules in force.
Payment will be made after deduction of taxes as fixed by
the Govt. from time to time
ELIGIBILITY: Any resident Bangladeshi above 18 years of age is eligible to
open a Savings Plus Account.
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General Banking in HSBC Bangladesh
TERMS AND CONDITIONS: Minimum opening balance is Tk. 500,000
Interest payable only for balance of Tk. 500,000 or above.
5.1.3 CURRENT ACCOUNT
It's easy to manage daily finances with an HSBC current
account. Making payments has never been so simple. With a
current account, the client does not need to rush around to pay
his bills. He simply has to write out a cheque and mail it at his
convenience. There is also ATM Card facility available so that he
has access to his account and a wide range of banking
transactions, 24x7.
SALIENT FEATURES:a. Easy Pay Machines:
Easy Pay machines offer clients and non-clients an easy,
convenient and quick way to make deposits, payments
and instructions. The Easy Pay provides services 24-hours
a day, seven days a week.
b. ATM Facility:
A current account holder is empowered to access his
account through an ATM card, without having to visit a
branch. He can access his current account via ATM 24-
hours a day, seven days a week.
c. Phone Banking
d. Personalized Cheque-book
e. No restriction for number of transaction and
balance in the account
f. Overdraft facility for clients in some cases
INTEREST RATE:
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General Banking in HSBC Bangladesh
No interest would be given for current account balance
DOCUMENTS REQUIRED:a. Completed account opening form.
b. Passport size photograph for each account holder.
c. Proof of identification such as passport, driving license or
voter's ID.
5.1.4 DAILY MONEY MANAGEMENT
At HSBC the bankers realize how busy the clients are in today's
fast-paced world. To make their life simpler, they have created
different channels to bring banking closer to the clients. Now
the clients no longer have to visit their branches to complete
their daily banking transactions. Rather they can access a host
of services 24-hours a day from wherever they are. HSBC offers
easy pay machines, ATM banking, phone banking for normal
clients and online banking for valued clients. Easy Pay is a
sophisticated bill payment machine developed with a touch
screen formula enabling both HSBC and Non-HSBC customers to
pay their utility bills, deposits, HSBC Credit Card payment etc.
5.1.5 ATM SERVICE
ATM Card is simple to use, convenient, versatile and totally
reliable. Using ATM Card the clients can perform a wide range of
transactions like:
Withdrawing cash and deposit cash:
The clients can withdraw or deposit cash in their accounts,
at any time of the day and night.
ATM Withdrawal to some limit:
Maximum withdrawal limit is TK. 50,000 per day per card.
Minimum limit of TK. 500 must be withdrawn.
Transferring of Funds:
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General Banking in HSBC Bangladesh
The clients are empowered to transfer funds between their
own accounts. For example money can be shifted from their
current account to their savings account or vice-versa.
Checking Balance:
The clients can check the balance on their current account
or savings accounts.
Changing ATM PIN:
The clients can change ATM PIN to a six-digit number of
their choice.
Viewing details of their last eight transactions:
ATM facilitates viewing last eight transactions.
Ordering statements / new cheque books:
Through ATM ordering a copy of bank statement or a new
chequebook is easy and convenient. The clients’ request will
be processed within a few working days.
Making payments to other HSBC clients:
HSBC also offers ATM card against foreign currency
accounts.
With this card, they can withdraw cash from their
accounts, at any time of the day or night in 800,000
ATMs worldwide.
Available for foreign currency current accounts
(Bangladesh International) both for resident and non-
resident Bangladeshis.
Complies with Bangladesh Foreign Exchange
Regulations.
5.1.6 PHONE BANKING
Phone Banking is designed for total privacy. To ensure the
confidentiality of transactions, accounts can be activated only
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General Banking in HSBC Bangladesh
by keying in both Phone Banking Number (PBN) and Personal
Identification Number (PIN). The clients can also change his PIN
as often as they like for added security. Simple-to-follow
instructions will guide them all the way through multiple
transactions. For added convenience HSBC has developed a
Quick Search function to speed various transactions.
Phone banking service allows the clients to perform a variety of
transactions, from fund transfers to term deposit placements:
Checking their account balance
Transferring funds between their accounts
Ordering statements or new cheque books
Reporting a lost or stolen card
Opening or renew a time deposit
Enquiring about foreign exchange rates
Making third party payments
5.1.7 POWERVANTAGE
HSBC recognizes the numerous demands on lifestyle and have
developed a banking package that saves both time and energy.
With PowerVantage the clients receive special and immediate
assistance at HSBC’s Bank branches, while a host of services
ensures that they control their finances easily and efficiently.
PowerVantage makes banking effortless, allowing them to get
on with their busy day.
SALIENT FEATURES:a. Free Personal Accident Insurance Cover:
As a PowerVantage client, the clients will receive accident
insurance cover for the amount of TK. 100,000. The
Premium will be covered by the Bank.
b. Endorsement of Foreign Currency:
He can endorse foreign currency in his passport against
the travel quota absolutely free of charge.
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General Banking in HSBC Bangladesh
c. Special Loan Rates:
He is entitled to special reduced rates on a Personal
Installment Loan, and a discount on the processing fee for
a Car Loan.
d. Auto sweep of Funds:
To benefit from a higher rate of interest, he can issue
standing instructions to have funds transferred between
his current and savings accounts and time deposits.
e. Standing Instructions:
He can set up standing instructions of any fixed amount to
be paid to selected parties' accounts with HSBC, free of
charge.
f. Special ATM Cards:
PowerVantage ATM Card gives the client a high cash
withdrawal limit of up to TK. 50,000 at any of HSBC's ATMs
across Bangladesh.
g. Monthly Composite Statements:
A monthly PowerVantage statement helps the client keep
track of all his accounts with HSBC.
ELIGIBILITY:To be eligible for a PowerVantage account, one needs to maintain an average deposit
balance of TK. 200,000.
FEES AND CHARGES
A service charge of TK. 500 will be levied if the average deposit
falls below the stipulated limit for a six-month period. Annual
fee is TK.500 only.
5.1.8 CEPS
The Corporate Employees Privilege Scheme [CEPS] is a unique
and exclusive package of personal banking products and
services offered to the employees of selected companies. CEPS
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General Banking in HSBC Bangladesh
provide employees with easy and quick access to HSBC’s wide
range of personal loan products at specially discounted rates.
CEPS offers preferential terms and pricing on the following
products and services:
Savings Account
Personal Installment Loan
Car Loan
PowerVantage Account
Home Loan
KEY FEATURES:Product
Accounts
Personal Installment Loan
Relationship Fee
ELIGIBILITY: Anyone can enjoy the benefits of CEPS if his company has
an AutoPay salary disbursement arrangement with HSBC,
which can be easily arranged and is free.
To join the CEPS scheme, he should have a minimum
monthly salary of TK.15,000
5.1.9 ONLINE BRANCH BANKING
The Bank has set up a Wide Area Network [WAN] across the
country to provide online branch banking facility to its valued
clients. Under the Scheme, clients of any branch shall be able to
do banking transaction at other branches of the bank.
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General Banking in HSBC Bangladesh
Under this system a client will to be able to do following types of
transactions:
Cash withdrawal from his/her account at any branch of the
Bank irrespective of location.
Cash deposit in his/her account at any branch of the Bank
irrespective of location.
Cash deposit in other's account at any branch of the Bank
irrespective of location.
Transfer of money from his/her account with any branch of
the Bank.
Any amount can be deposited or transferred. In the
system, however, at present there is a limit for cash
withdrawal through bearer or by account holder himself.
TERMS & CONDITIONS OF ONLINE BRANCH BANKING
SERVICE
It is designed to serve its valued clients. Under this system, the
clients shall be able to do the following type of transactions:
Cash withdrawal from their accounts at any branch of the
Bank.
Deposit in their accounts at any Branch of the Bank.
Transfer of money from their accounts to any other
account with any Branch of the Bank.
TRANSACTION LIMIT
Maximum ceiling of cash withdrawal by self is Tk. 1000000
only per transaction.
Maximum ceiling of cash withdrawal by third party
[bearer] per transaction is below the amount fixed by the
client
Cash deposit/transfer by online transaction is unlimited.
ONLINE TRANSACTION MEMBERSHIP FEE
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General Banking in HSBC Bangladesh
Membership fee is Tk. 50/- per month for the Online Branch
Banking Service.
CHARGES FOR ONLINE TRANSACTION There will be no charge for transaction within the city
where the account is domiciled.
Fee Tk. 50/- will be realized from the client’s account for
each remote transaction [inter-city] for amount upto Tk. 1,
00,000.
Fee at the rate of 0.075% will be realized from the client’s
account for each remote transaction of amount more than
Tk. 1, 00,000.
5.1.10 CREDIT CARD
HSBC's co-branded credit card with Prime Bank gives the client
the freedom to pay for goods and services without the hassle of
carrying cash. The card is accepted at shops, restaurants,
hotels, airlines and travel agents, departmental stores, hospitals
and diagnostic centers, practically anywhere in Bangladesh
displaying the MasterCard logo. Local cards can be used in
Bangladesh only.
Prime Bank Limited obtained Principal Membership of Master-
Card International in the month of May 1999. Within a period of
6 months, HSBC successfully launched Master Card-Credit Card
which created a new dimension in its client service and
consumer financing.
The Special feature of the HSBC Master Card is that its bears
the card holder’s photo on the card, which is the first of its kind
in Bangladesh and adds security against misuse.
HSBC Bangladesh issues 4 types of cards:
Gold Local
Gold International
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General Banking in HSBC Bangladesh
Silver Local
Silver International
FEATURES: The card holder can enjoy between 20 to 50 days of
interest free credit from the date of each transaction;
After receiving monthly statement, he can either choose to
pay full or a minimum of 8% of the current balance shown
in the statement or TK. 500 whichever is higher;
Interest is 2.5% per month and will be calculated on a
daily basis;
Credit limit range from TK. 50, 000 to TK. 200, 000;
Annual fee is TK. 2, 000;
HSBC Bangladesh ensures high level of security by
inserting the client’s Photograph on the Card.
He can get additional first supplementary card for free,
with a shared credit limit;
No joining/administrative fees;
Cash advance facilities;
1, 39, 00,000 locations accept MasterCard worldwide.
ELIGIBILITY: He should be between 21 and 65 years of age.
He should have a minimum monthly income of TK. 25,000.
He needs to be an account holder of HSBC.
PROCEDURE OF APPLICATION:To apply for a Credit Card the applicant can visit any HSBC
branch in Dhaka or Chittagong or call HSBC Call Centre for more
information. HSBC will be obliged to help him with his
application procedure. Applications should be sent through
HSBC branches
5.2 SAVING AND INVESTING
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General Banking in HSBC Bangladesh
The savings rate in Bangladesh is one of the lowest in the world.
In order to improve the savings rate, Financial Institutions
responsible for mobilization of savings should offer attractive
Savings Account Schemes so that the marginal propensity to
save increases. The savings do not, of course, depend only on
the quantum of income but largely depend on the habit of
savings of the people. Keeping this in mind HSBC offers the
following services:
Monthly Interest Bearing Time Deposits
Term Deposits
Investment Watch
5.2.1 MONTHLY INTEREST BEARING TIME
DEPOSIT
It is a simple, safe and convenient way to make the client’s
money grow, providing his with the benefits of attractive
interest rates, security, convenience and flexibility.
KEY FEATURES: Interest on a monthly basis with the security of a fixed
deposit account;
Option of keeping the Time Deposit for a maximum period
of 2 years, which will be renewed automatically every
year;
A minimum deposit balance of TK. 500,000 (Taka five lacs)
to open the account
Monthly interest earned can be transferred to another
nominated account
Better rates than normal savings account
Higher rate than 1- month time deposit account's rate
Free ATM Card for new accounts
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General Banking in HSBC Bangladesh
The interest earned will be forfeited if the account is
prematurely encashed and Savings Accounts interest rate
will be applied.
The interest earned will be forfeited if the account is
closed before the completion of one month.
Application can be made by visiting one of HSBC branches
in Dhaka or Chittagong to open the account or calling
HSBC Call Centre for their assistance.
5.2.2 TERM DEPOSIT
Term Deposits from HSBC provide attractive rates, security,
convenience and flexibility.
KEY FEATURES: Minimum balance TK.100,000;
Flexible deposit periods to suit the customer’s needs
The client can place Term Deposits with HSBC, for varying
periods of time, 1, 3, 6 or 12 months as per his needs.
High interest with deposits
The client can earn higher interest on term deposits with
HSBC’s attractive rates. Interest is calculated from the
date of the deposit until maturity, at the rate applicable
when the deposit is first placed or renewed, and is paid
when the deposit matures. Larger amounts attract extra
interest, so the more the client deposits, the more he
earns.
Renewal, transfer or withdrawal facilities
On maturity of Term Deposit, HSBC will automatically
renew it with the interest earned. Alternatively, the client
can transfer it to any of his accounts with HSBC, or
withdraw the Term Deposit and interest.
DOCUMENTS REQUIRED:
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General Banking in HSBC Bangladesh
Completed account opening form.
Passport size photograph for each account holder.
Proof of identification such as passport, driving license or
voter's I.D.
5.2.3 INVESTMENT WATCH
HSBC helps to invest in world money and capital market
through internet. It provides with the online assistance in
gathering information about money transaction in share market.
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reliable, but is not guaranteed as to completeness or accuracy.
Stockpoint, its providers, and hsbc.com, inc. cannot be held
responsible for errors or omissions.
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General Banking in HSBC Bangladesh
WARRANTY AND DISCLAIMER OF LIABILITY
The contents of the Investment Watch services pages on
website are distributed to the interested parties without any
warranty of any kind. Use of the Investment Watch service
pages of website and its contents are at the clients’ risk.
Stockpoint, its content providers, and hsbc.com, inc., are not
liable for any damages the clients may incur from their use of
the site. Although Stockpoint makes every reasonable effort to
do so, Stockpoint, its content providers, and hsbc.com, inc.,
make no representations that the information presented is
accurate, complete or timely.
5.3 TRAVELER’S CHEQUE
Traveler’s Cheques are available in all major currencies and
eliminate the need to carry cash while traveling overseas.
Unlike cash, Traveler’s Cheques are safe and will be
immediately replaced if lost or stolen. Traveler’s Cheques
issued by HSBC are accepted worldwide, giving the clients
spending power wherever the clients are.
KEY FEATURES: Secure and convenient, as they can be encashed at banks
and at most hotels and shops in any country or city
Handy to carry
Accepted globally
Easy-to-use
Ideal to budget
Available in most major currencies in denominations of 50
and 100
FEES: 1% commission of the total amount endorsed.
Passport endorsement fee is TK.250.
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General Banking in HSBC Bangladesh
DOCUMENTS REQUIRED: An HSBC account in Bangladesh
Passport and valid visa
Confirmed return air tickets
6.0 SPECIAL SAVINGS PLAN: MY
FUTURE
My future is the unique savings plan in some distinguished
areas. Proper planning today holds the key to a better
tomorrow. Anyone can make a difference in his life by rewriting
future with My future savings plans. It is like a fixed deposit.
Therefore it yields higher interest rate. The interest as well as
the balance can be recovered fully only after the maturity
period.
HSBC Bangladesh offers six prominent savings plans:
Children Saving Plan
Education Savings Plan
Family Protection Plan
Holiday Savings Plan
Peace of Mind Savings Plan
Retirement Savings Plan
6.1 CHILDREN SAVINGS PLAN
Children are very important to anyone. However, there may be
times when the parents are not able to fulfill their requirements.
Now, with a Children's Savings Plan from HSBC, they can save
for their child's future. Offering exclusive benefits catered
towards their child, the savings plan is the perfect fit to their
lifestyle.
KEY FEATURES:
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General Banking in HSBC Bangladesh
Attractive interest rates
No sign-up fee
No penalty for missed installments
The Plan Holder can purchase as many units as he desires
Initial deposit of TK. 10,000 with monthly deposits of TK.
5,000 [1 unit]
Any tenure up to the child being 18 years of age
FREE GIFTS Stuffed toys for children less than 3 years.
Small HSBC school bags for children between 3-8 years.
Big HSBC school bags for children above 8 years.
ADDITIONAL BENEFITS TK.500 gift voucher/unit each year if all 12 monthly
installments are deposited on time in that year.
TK.400 gift voucher/unit each year if at least 10 monthly
installments are deposited on time in that year.
ELIGIBILITY Parents with children below 18 years who are Bangladeshi
can open children's savings plan.
TERMS AND CONDITIONS Bank reserves the right to close the plan if the client
misses 3 consecutive installments.
If the plan is closed within one year, clients will get the
deposited amount only and no interest will be paid for the
plan. If the plan is closed after one year, clients will get
the deposited amount along with the accrued interest up
to the time of closure.
Discontinuation fee will be charged if the plan is closed
before two years.
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General Banking in HSBC Bangladesh
6.2 EDUCATION SAVINGS PLAN
People can now take advantage of the Education Savings Plan
from HSBC and plan for their children’s future accordingly. They
can also save for their own future educational plans.
BENEFITS Attractive interest rates.
No sign-up fee.
No penalty for missed installments.
The client can purchase as many units as he desires.
Initial deposit of TK. 10,000 with monthly deposits of TK.
5,000 [1 unit].
He can choose from flexible tenures of 1, 2 or 3 years.
He will receive a free gift voucher of ETC for every plan.
ADDITIONAL BENEFITS For a 1-year scheme TK.100 bonus/unit will be paid at the
end of the tenure if any 10 installments are deposited on
time.
For a 2-year scheme TK.250 bonus/unit will be paid at the
end of the tenure if any 21 installments are deposited on
time.
For a 3-year scheme TK.550 bonus/unit will be paid at the
end of the tenure if any 32 installments are deposited on
time.
ELIGIBILITY Any Bangladeshi between 18-60 years of age is eligible to
open Education Savings Plan.
TERMS AND CONDITIONS Bank reserves the right to close the plan if the client
misses 3 consecutive installments.
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General Banking in HSBC Bangladesh
If the plan is closed within one year, clients will get the
deposited amount only and no interest will be paid for the
plan. If the plan is closed after one year, clients will get
the deposited amount along with the interest at the
prevailing savings rate during the time of closure.
Discontinuation fee will be charged if the plan is closed
before the end of the tenure.
6.3 FAMILY PROTECTION PLAN
With life's uncertainties, it is comforting to know that family's
financial future is in the hands of a global institution that people
can trust. They can choose Family Protection Plan from HSBC's
My Future products suite and protect the future of their families.
Family Protection Plan is a monthly savings scheme that the
plan holder can sign up for with an initial deposit of TK. 10,000
or TK. 50,000 and monthly installments of TK. 5,000 or TK.
10,000 respectively. The maturity value of the 3-year plan is
protected with a life insurance.
FEATURES AND BENEFITS No sign up fee
Striking interest rates
One can purchase as many units as one desires.
Ideal tenure of three years
Ideal units of TK. 10,000 & 50,000
Convenient installments of TK. 5,000 & 10,000
respectively
Attractive bonus up on smooth payment of all the
installments
ELIGIBILITY Any Bangladeshi between 18-57 years of age is eligible to
apply for a Family Protection Plan.
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General Banking in HSBC Bangladesh
TERMS AND CONDITIONS To earn the maturity value all the installments must be
paid regularly.
Final maturity value is subject to tax & excise duty as per
local regulations.
Plan holder must fulfill all health criteria set by Alico to be
eligible for the guaranteed maturity value.
6.4 HOLIDAY SAVINGS PLAN
With a Holiday Savings Plan from HSBC anyone can save for
exotic holiday and also earn discounts on travel packages.
BENEFITS Smart interest rates.
No sign-up fee
No penalty for missed installments
One can purchase as many units as one desires
Initial deposit of TK.10,000 with monthly deposits of
TK.5,000 [1 unit]
The plan holder can choose from flexible tenures of 6 or
12 months.
The plan holder will get discounts on travel packages from
selected travel agencies.
ADDITIONAL BENEFITS Bonuses will be paid at end of the tenure if all installments
are deposited on time
TK.100 bonus/unit for 6 months scheme.
TK.200 bonus/unit for 12 months scheme.
ELIGIBILITY Any Bangladeshi between 18-60 years of age is eligible to
apply for a Holiday Savings Plan.
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General Banking in HSBC Bangladesh
TERMS AND CONDITIONS Bank reserves the right to close the plan if the client
misses 3 consecutive installments.
If the plan is closed within one year, clients will get the
deposited amount only and no interest will be paid for the
plan.
Discontinuation fee will be charged if the plan is closed
before the end of the tenure.
6.5 PEACE OF MIND SAVINGS PLAN
HSBC believes that emergencies can occur at any time. With a
Peace of Mind Savings Plan from HSBC, anyone can enable
oneself to handle those unforeseen events.
BENEFITS Attractive interest rates.
No sign-up fee.
No penalty for missed installments.
The client can purchase as many units as he desires.
Initial deposit of TK. 10,000 or TK. 50,000 with monthly
deposits of TK. 5,000 [1 unit] or TK. 10,000 [1 unit]
respectively.
Tenure of the plan is 3 years only.
DISCOUNTS The plan holder gets exclusive discounts on various
medical tests at selected diagnostic centers in Dhaka and
Chittagong.
ADDITIONAL BENEFITS Bonuses will be paid at end of the tenure if all installments
are deposited on time
TK. 600 bonus for every initial deposit of TK. 10,000.
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General Banking in HSBC Bangladesh
TK. 3,000 bonus for every initial deposit of TK.
50,000.
Personal accidental insurance coverage up to TK. 100,000
for initial deposit of TK. 10,000 and up to TK. 150,000 for
initial deposit of TK. 50,000 [Premium will be borne by the
Bank].
Overdraft facility up to 90% against his deposit with a
minimum loan amount of TK. 90,000.
ELIGIBILITY Any Bangladeshi between 18-60 years of age is eligible to
apply for a Peace of Mind Savings Plan.
TERMS AND CONDITIONS Bank reserves the right to close the plan if the client
misses 3 consecutive installments.
If the plan is closed within one year, clients will get the
deposited amount only and no interest will be paid for the
plan. If the plan is closed after one year, clients will get
the deposited amount along with the interest at the
prevailing savings rate during the time of closure.
Discontinuation fee will be charged if the plan is closed
before the end of the tenure.
6.6 RETIREMENT SAVINGS PLAN
HSBC values the clients who wish to retire someday and live a
peaceful and happy life. However, circumstances may prevent
them from getting their wish fulfilled. They can plan their future
now with the Retirement Savings Plan from HSBC and support
themselves during old age.
BENEFITS Same as the previous plan
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General Banking in HSBC Bangladesh
Bonuses will be paid at end of the tenure if all installments
are deposited on time
Bonus of TK. 700 for every initial deposit of TK.
10,000.
Bonus of TK. 3,500 for every initial deposit of TK.
50,000.
TK.500 gift voucher/unit each year if all 12 monthly
installments are deposited on time in that year.
TK.400 gift voucher/unit each year if at least 10 monthly
installments are deposited on time in that year.
ELIGIBILITY Any Bangladeshi between 18-60 years of age is eligible to
apply for a Retirement Savings Plan.
TERMS AND CONDITIONS Bank reserves the right to close the plan if the client
misses 3 consecutive installments.
If the plan is closed within one year, clients will get the
deposited amount only and no interest will be paid for the
plan. If the plan is closed after one year, clients will get
the deposited amount along with the interest at the
prevailing savings rate during the time of closure.
Discontinuation fee will be charged if the plan is closed
before the end of the tenure.
7.0 CORPORATE BANKING
At HSBC, the bankers constantly strive to develop new products
to meet the changing needs of a dynamic and growing business.
In the spirit of encouraging business to flourish, Corporate
Banking offers a range of flexible solutions, exclusively
packaged to meet the needs of growing business.
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General Banking in HSBC Bangladesh
Choice and control - these two are fundamentals in running
finances. HSBC gives its clients both: a choice of ways they can
access their money, and then control when they get there. They
can choose from HSBC Client Service Centers, ATM, Telephone
and Internet Banking solutions and use the information and
expertise at their fingertips or at the other end of the line -
anytime they like.
HSBC's Corporate Banking services are designed to help its
clients operate efficiently and profitably. Using HSBC’s local
expertise and the unrivalled global resources of the HSBC
Group, HSBC offers a comprehensive financial solution that aims
to meet business needs, both locally and globally.
7.1 IMPORT SERVICE
With over 130 years of experience supporting importers
globally, HSBC is well positioned to fulfill trading needs. A full
range of import services handled by experienced staff is
available, ensuring that import documents are processed
without delay.
The interested parties can simply apply to HSBC for import
facilities, and HSBC begins handling their imports immediately.
The availability of credit facilities is subject to HSBC's Internal
Credit guidelines and approval process.
The services offered by HSBC Bangladesh are given below:
Documentary Credits: Part of credit sanction function
Import Collections
Import Finance: Part of credit sanction function
Shipping Guarantee
7.1.1 IMPORT COLLECTION
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General Banking in HSBC Bangladesh
Collections offer a cost-effective but secure means of trading
internationally. Using these instruments, the importer only
effects payment in exchange for the documents of title for the
goods shipped. If these are found to be unacceptable, payment
can be refused, giving the buyer peace of mind. However, the
above is subject to Central Bank rules; therefore the client is
advised to consult with HSBC before considering import
collections.
7.1.2 SHIPPING GUARANTEE
In certain situations goods may arrive in port before the
shipping documents have been processed through the banking
system. In these circumstances, HSBC can issue a shipping
guarantee, allowing the importer to take control of the goods
from the shipping company without the bill of lading. The
advantages of using HSBC for this are as follows:
RAPID ISSUANCE Shipping guarantees are only of value if they are issued
immediately. HSBC can issue shipping guarantees as soon as
the application is made, meaning the importer can release his
goods from the carrier immediately.
FINANCIAL STRENGTH HSBC issued shipping guarantees are universally accepted by
shipping companies. This means the importer can always be
assured that he will get his goods on time.
7.2 EXPORT SERVICE
With over 9,500 offices in 79 countries and territories, the client
can be rest assured that an HSBC office is close to him,
wherever he is exporting to. HSBC is available to provide him
with advice on any aspect of his trade document preparation
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General Banking in HSBC Bangladesh
and can also provide him with working capital finance to assist
him to source his raw materials
To benefit from HSBC's export services, he does not need to
have special facilities or even an account with HSBC. All he has
to do is to request his buyers to advise his documentary credits
through HSBC and benefit immediately from HSBC’s
international network.
7.3 TRADE EXPRESS
Trade features as an integral part of the Bangladesh economy
and this trend is set to continue. Competition in trade, however,
continues to grow stiffer for HSBC’s local clients [both
domestically and internationally]. In order to facilitate their
competitiveness, HSBC provides its priority clients the ability to
handle their transactions more quickly, easily, and efficiently.
Trade Express is an umbrella service, which combines
traditional trade products, document delivery services,
reinforced by HSBC's proprietary state of the art e-banking
[Hexagon and Electronic DC Advising] designed to provide
tailored solutions for HSBC’s priority clients from the
convenience of their own office remote banking.
With this product the client can now execute all his trade
transactions faster, cheaper, and with more accuracy than ever
before and most importantly, from the convenience of his own
office.
BENEFITS
Real-time intimation of Export Documentary Credit [DC]
delivered to the client’s email account or fax number,
along with a copy of the documentary credit enabling
faster and more accurate handling of exports.
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General Banking in HSBC Bangladesh
Export transaction advices delivered to his desk through
email or fax and import transaction advices through
Hexagon.
Online issuance and amendment of Import DCs from his
office, reducing cost and process time for him.
Online access to his Import and Export facility positions.
Real-time correspondence with the bank through Hexagon
enabling him to electronically present his requests and
instructions in a secure and fast manner.
Extended counter hours and HSBC’s commitment to
quicker turnaround of transactions.
Document pick up and delivery services.
Minimal documentation / sign up formality.
7.4 PAYMENT AND COLLECTION
COUNTRY WIDE PAYMENT
Most corporate treasurers cannot afford to spend time worrying
about routine payments. HSBC in Bangladesh has the
technology to put the corporate people in better control of
routine operations and has been successfully handling payment
requirements throughout the nation for its corporate clients.
HSBC provides them with benefits, which include:
Reduction in payment time.
Availability of payment details through Hexagon.
Easy reconciliation of payments/receipts through Hexagon
statement.
Centralization of control of payments.
Network coverage of almost 200 locations nation-wide.
COUNTRY WIDE COLLECTION:As receivable management is crucial to their financial cycle,
HSBC has developed products for them to efficiently manage
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General Banking in HSBC Bangladesh
their requirements and reduce cost. The services and benefits
include:
Cost reduction through efficient fund management.
Detailed MIS on cash collection, resulting in better
management.
Account reconciliation done through Hexagon.
Centralization of control of all his cash and instruments.
Network coverage of almost 200 locations nation-wide.
Quicker cash collection into a central account, resulting in
greater earnings.
7.5 HEXAGON CHEQUE WRITER
HSBC’s latest addition in the Payments and Cash Management
services is Hexagon Cheque Writer. It is a cheque writer product
which is also a built-in module of Hexagon, global electronic
banking. It is designed to facilitate HSBC’s corporate customers
for preparing, printing and updating the PC ledger.
Services and benefits include:
Preparation of cheques through Hexagon Cheque Writer.
Reconciliation of cheques at the Hexagon ledger.
Advice along with cheque leaves.
No further installation required since it is built in Hexagon
module.
Recurrent payments can be stored and printed.
Convenience of in-house cheque printing
7.6 ELECTRONIC BANKING
It enables the corporate client’s access their account from their
PC 24-hours a day, 365 days a year from anywhere in the world
with Hexagon, HSBC’s global electronic banking system.
CASH MANAGEMENT SERVICE:
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General Banking in HSBC Bangladesh
Hexagon offers comprehensive cash management services in an
easy-to-use and highly secure system. This provides the clients
timely and accurate account information and gives them total
control over finances. They can pay to third parties at ease and
can effect instant fund transfer between their own accounts.
TRADE SERVICE:Hexagon significantly reduces the documentation and physical
delivery required for trade finance, resulting in both faster and
more accurate processing and administration. It will reduce data
entry and related errors and the client can store frequently used
documentary credit in templates and recall them as needed to
speed in their processing.
SALARY PAYMENT:Salary payment to staff is at fingertips by using HSBC MT_ 100
module through Hexagon. The client can import salary from his
existing payroll system and send it to bank through Hexagon.
From these HSBC can credit accounts of the staff immediately
and error-free.
INFORMATION SERVICES:Hexagon is essential if the client wishes to survive in today’s
competitive markets. Hexagon provides a wide range of market
information prepared by experts around the world, enhancing
his opportunities for profit. He can get precious metal prices,
spot rates, stock prices, index values and foreign exchange
commentary everyday.
REPORT WRITER:Hexagon report writer is a powerful and easy-to-use tool for
accessing and managing accounts, trade finance and security
information. Report writer allows organizing the client’s
accounts in a variety of ways of convenient and customized
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General Banking in HSBC Bangladesh
reporting. It is easy to integrate with his current accounting
package.
OFFLINE MODE:Hexagon can be used offline to prepare payment instructions,
documentary credit application; the client can trace and send
them at convenient time, cutting phone costs. Offline mode also
reduces clerical work and speeds up office.
8.0 HSBC PREMIER BANKING
HSBC Premier is a global service proposition reserved for
HSBC’s most valued customers. It has been designed to suit
their personal, financial and unique lifestyle needs - providing
with the flexibility and recognition they deserve while at home
and abroad. HSBS Premier Banking stands for "A premium
global banking service for an exalted few". Relationship,
Recognition and Reward - HSBC Premier delivers the ultimate in
personalized banking.
With HSBC Premier, the customer will enjoy an extensive range
of exceptional privileges and exclusive benefits to complement
his life style. These include:
Dedicated Relationship Managers: One-on-one assistance
from a personal relationship manager to manage all
financial requirements
The prestige of the customer’s very own HSBC Premier
Centre that offers a private lounge, reserved car parking
for his convenience and priority service. Additionally he
has access to all HSBC Premier centres and counters
around the world as a preferred HSBC customer
Preferential pricing on loan products and credit facilities,
remittance and payment services
Fax Banking
Waived or reduced service fees
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General Banking in HSBC Bangladesh
A total integrated account that reflects the customer’s
total financial position - consolidated monthly statement
that summarizes his total banking portfolio
Commission free encashment of HSBC issued Traveler’s
cheques world wide
Commission free foreign currency exchange services world
wide
Commission free endorsement of foreign currency for self
and spouse
A free HSBC Premier ATM card that allows the customer
access to over 800,000 ATMs around the world, 24 hours a
day [Foreign Exchange regulations apply]
Higher ATM limits, up to TK. 100,000.
No transaction fee at HSBC ATMs worldwide.
Global Services: A range of Global Concierge, Travel and
Emergency services
A variety of exclusive offers from top quality restaurants,
boutiques and other acclaimed establishments
ELIGIBILITY: To join the exclusive world of HSBC Premier, the interested
customer needs to maintain a total relationship balance
[average monthly credit balance] of TK. 4 million or equivalent
foreign currency [USD/GBP/EURO], or a combination of both
foreign and local currency to the value of TK.4 million in
Current, Savings or Fixed Deposit accounts [or any other criteria
as HSBC may determine at its discretion from time to time].
9.0 HSBC LOCAL BANKING: AMANAH
Amanah Banking establishes HSBC’s claim to be a local bank. It
is a part of HSBC’s Local Banking Service.
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General Banking in HSBC Bangladesh
At HSBC Amanah, HSBC’s unique combination of local
experience and global resources enable it to understand the
client’s needs and concerns and this is precisely why HSBC has
designed current account, in full compliance with the Shariah
principles, for the devoted Muslim customers.
Amanah Banking operates two services:
Amanh Current Account
Amanah Import Finance
9.1 AMANAH CURRENT ACCOUNT
The HSBC Amanah Current Account is a relationship checking
account, designed to comply with Shariah (Islamic Law)
guidelines while also providing the regular convenience and
security of a current account. The HSBC Amanah Current
Account offers the customers:
An interest free deposit, where no interest is paid or
received for their funds. Separate books of accounts are
kept for all current account Amanah Deposits, this is to
ensure that these deposits are used only in a Shariah
compliant manner.
HSBC’s on-line, real-time branch banking service allows
them to use any of the five branches in Bangladesh to
conduct full branch banking transactions.
While a HSBC Amanah Current Account will be resident in
the HSBC Amanah Branch, the customers can use any of
HSBC’s other HSBC branches in Dhaka and Chittagong.
Easy pay Machines offer customers and non-customers an
easy, convenient and quick way to make deposits,
payments and instructions. The Easy Pay provide services
24-hours a day, seven days a week
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General Banking in HSBC Bangladesh
They can access their current account via ATM 24-hours a
day, seven days a week.
Phone-banking Service lets them conduct their banking
transactions - 24-hours a day, seven days a week, 365
days a year.
They receive a free personalized cheque book when they
open a current account.
DOCUMENTS REQUIRED: Completed account opening form.
Passport size photograph for each account holder.
Proof of identification such as passport, driving license or
voter's ID
9.2 AMANAH IMPORT FINANCE
HSBC Amanah Import Finance is based on Murabaha, a type of
mechanism that is fully compliant with the Shariah. In
Murabaha, goods are sold at stated cost plus a profit, with the
crucial element being the trade of an underlying Halal asset.
The payment for the goods can be immediate or on deferred
basis. Although Murabaha transactions have been used in
Middle Eastern and Asian countries for many years, HSBC is
proud to be the first global bank to introduce them on a truly
international scale.
The process is as follows:
The interested party apply for a Murabaha facility from
HSBC
He identifies Halal goods that he wishes to import.
The Halal goods will be bought by HSBC and sold to him
under the Murabaha facility.
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General Banking in HSBC Bangladesh
No interest is charged. Depending on the requests
submitted by him, payment for the goods can be
immediate or on deferred basis.
KEY FEATURES: The HSBC Group has over 9,500 offices in 79 countries and
territories all around the world. Therefore it has extensive
experience in offering customers trade-related services
which respect local beliefs and customs.
An interest free financing mechanism, under which they
can acquire the required Halal goods under the Murabaha
principle.
Competitive pricing to help them maintain their business
edge.
Efficiency in processing all their documents
To cater to the needs of HSBC Amanah Finance, HSBC’s
global Islamic finance division employs a team of
professionals with experience in both Islamic finance and
the conventional financial services industry.
With professionals based in Dubai, New York, London,
Riyadh, Jakarta and Kuala Lumpur, it uses local knowledge
to identify solutions for customers who are looking for
Shariah compliant financial services from a respected
international organization.
Through HSBC’s world famous Hexagon, an electronic
banking platform, the customer can conduct full-fledged
banking through a dialup intranet in a very secure
manner. Hexagon provides him with a highly informative
database on all transactions, complete cash management
services,
Batch payment services for large volume regular payment
like salary, full range of trade services including letter of
credit opening, information services, excellent report
38
General Banking in HSBC Bangladesh
writer services which communicates and reconciles
seamlessly with his other system [SAP Compliant] under
unbroken track record of data security- and all from the
comfort of his office.
If the customer is in the exports as well as imports, HSBC’s
Electronic DC advising service will allow him to be
informed in real time about arrival of export DCs through E
mail or Fax.
HSBC’s own courier will be able to pick up and deliver
documents to and from the customer’s office on
arrangement.
To ensure strict compliance with the Shariah, HSBC
Amanah Import Finance has been designed with support
and guidance from the HSBC Shariah Supervisory
Committee to ensure strict compliance with the Shariah.
10.0 CONCLUSION
One of the prime functions of banks is general banking. HSBC
provides world class services in this area. HSBC is one of the
largest banking and financial services organizations in the
world, with a market capitalization of US$182 billion at 31
December 2005. HSBC operates through long-established
businesses and has an international network of over 9,800
properties in 76 countries and territories in five geographical
regions: Europe; Hong Kong; Rest of Asia-Pacific, including the
Middle East and Africa; North America and South America.
Within these regions, a comprehensive range of financial
services is offered to personal, commercial, corporate,
institutional, investment and private banking clients. Services
are delivered primarily by domestic banks, typically with large
retail deposit bases, and consumer finance operations. HSBC
manages its business in general banking through four customer
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General Banking in HSBC Bangladesh
groups: Personal Financial Services; Commercial Banking;
Corporate, Investment Banking and Markets; and Private
Banking. Personal Financial Services incorporates the Group’s
consumer finance businesses, reflecting their increasing
integration within mainstream financial services around the
world. Although its interest rate is comparatively low than local
private banks in Bangladesh HSBC has found a niche for itself in
case of foreign currency accounts and corporate banking. In this
globalized environment HSBC, with its unique international
footprint, is determined to continue to deliver profitable growth
and value to its various constituencies. Success ensures that
the Group can offer good employment prospects to an ever
more diverse workforce. It means that HSBC can afford to
continue to invest in expanding the platforms by which it
delivers services to its customers. It enables the Group to
contribute to the savings and retirement needs of those who
invest in HSBC directly or indirectly through pension plans and
investment funds. Building on its achievements, HSBC’s priority
for the rest of 2006 is to continue to implement its Managing for
Growth strategy. It will achieve this by being distinctive,
reinforcing its brand values of trust and integrity in all its
dealings with customers. The Group will make itself even more
relevant by broadening the product, channel and geographical
coverage it offers. Furthermore, HSBC will ensure that the scale
and complexity needed to compete successfully will be
seamless from the perspective of its customers and
manageable from that of its employees.
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General Banking in HSBC Bangladesh
REFERENCES
1. Website. <www.hsbc.com>2. Website. <www.hsbcbd.com>3. Annual Report and Accounts, HSBC Holding Plc., 2005-06.
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