INTERNSHIP REPORT

CHAPTER ONE

P r o j e c t1.1 Preface1.2 Acknowledgement1.3 Origin of the report1.4 Objective of the report

1.5 Methodology of the report

1.6 Scope of the report

1.7 Limitations of the study

1.1 PrefaceBank is very old institution that is contributing toward the Development of any economy and is treated as an important Service industry in the modern world. Economic history shows that development has started everywhere with the banking system and its contribution towards financial development of a country is the highest in the initial stage. Modern banks play an important part in promoting economic development of a country. Bank provides necessary funds for executing various programs in the process of economic development. They collect savings from large masses of people scattered throughout the country, which in the absence of banks would have remained ideal and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the financial requirements.

Economy of Bangladesh is in the group of worlds most underdeveloped economies. One of the reasons behind this may be its underdeveloped banking system. Government as well as different international organizations have also identified that underdeveloped banking system causes some obstacles to the process of economic development. So they have highly recommended for reforming financial sector. Since 1990, Bangladesh Government has taken a lot of reform activities to ensure high economic growth. In 1996, World Bank published Bangladesh: Agenda for Action in which it has suggested lots of recommendations for economic development of our country. These recommendations include special presentation for reforming banking sector.

Bank plays a vital role in the economy by providing means of payment and in mobilizing resources. Bank is the most important financial institution in the economy. The economic development of a country depends on the development of banking sector. Todays modern banks are not only providing traditional banking but also expanding the many financial services. In todays world the life of the people directly or indirectly are within the arena of banking whether conventional or Islamic banking. Although Islamic banking is not a newer concept in Bangladesh as it has started its operation since 1983, very few people are aware about its operation. But things are changing. Islamic Banking is also getting popularity in the country.

Internship program is essential for every student, especially for the students of Business Administration, which helps them to know the real life situation. For this reason a student takes the internship program at the last stage of the bachelors degree, to launch a career with some practical experience. Against this backdrop, I have completed my three months internship in the Standard Bank Ltd at Head Office, Dhaka, which has helped me a lot to understand the real life situation of banking business HR practices in Banks.

1.2 Acknowledgement

At first, I would like to remember the name of the Almighty ALLAH who has created us and given us knowledge, time and energy for completing my internship program.

I eagerly and most genuinely would like to express my deepest sense of gratitude to respected Md. Nasim Anjum, Dean of Business Administration, for overall supervisor of this work, valuable suggestion, reviews and comments during the program.

I want to pay my sincere gratitude to our sir Dr. Farid uddin Ahmed, Head of business faculty for his all out support that he has extended to us.

I am also extremely grateful to the all officials of Standard Bank Limited, Motijheel, Head Office, Dhaka, who have sacrificed their valuable time in providing me necessary information and made detailed comments that have contributed to the planning of this report and internship program. In addition, I gladly acknowledge the valuable cooperation from the staffs of the Standard Bank Limited.

Finally, thanks go to supervisor Mr. Nasim Anjum, for his keen interest, intellectual guidance benevolent company, continuous encouragement, constructive instruction throughout the period, it would have been practical impossible for me to carry out this study as well as taking down the report to the present standard.

1.3 Origin of the report

IBAIS university one of the few private universities of Bangladesh, which had built its own premises at the time of receiving the charter from the government. It was born with a vision to inculcate ethical and moral dimension white offering a comprehensive professional training.

Internship is an integral part of the BBA program. The primary goal of the internship is to enhance a students theoretical understanding by transforming it in to real life practical situation of organizational attachments and the report preparation and submission under the auspices of a supervisor for earning 6 credit. Without practical exposure, theory can never be fruitful. For this reason, B.B.A program has been designed in such a way that a student can get practical knowledge. A student needs to go for practical orientation in some organization where his/her duty is to bear all the some things from operations and activities of that branch.

IBAIS University now posed to contribute to the human resource development by expending the scope of higher education in Bangladesh. The sprit of IBAIS is to foster congenial atmosphere for intellectual growth, moral uplift and professional excellence.

1.4 Objective of the report

The objective of the study may be viewed as:

General Objective

Specific Objective

General Objective:

This internship report is prepared primarily to fulfill the Bachelor of Business Administration (B.B.A) degree requirement under the Faculty of Business Administration, IBAIS University.

Specific Objective:

More specifically, this study entails the following aspects:

To have exposure to the HR Practice Standard Bank Limited.

To have a clear understanding of the business operation of Standard Bank Limited.

To discuss the services offered by Standard Bank Ltd.

To assess and evaluate the growth trends of Standard Bank Limited.

To understand human resource functions of the Standard Bank Limited. To understand employees daily activities in the working environment. To gain practical knowledge for building a strong career. 1.5 Methodology of the report:

The study requires a systematic procedure from selection of the topic to final report preparation. To perform the study the data sources are to be identified and collected, they are to be classified, analyze, interpreted and presented in a systematic manner and key points are to be found out. The overall process of methodology is given in the following page in a form of flowchart that has been followed in the study.A. Selection of the topic: The topic of the study was assigned by my supervisor. Before assigning the topic it was discussed with me so that, a well organized internship report can be prepared.

B. Identifying data sources: Essential data sources both primary and secondary are indentified which will be needed to complete and work out the study. To meet up the need of data, primary data are used and study also requires interviewing the official and staffs were necessary.Primary SourceSecondary Source

Face to face conversation with the employees

Practical desk work By interviewing clients of the Bank

Relevant files study as provided by the concerned officers.Internal Sources Bank's Annual Report

Different circulars, manuals and files of the bank.

Banks Service Rules

Banks HR Manual

External Sources Different books and periodicals related to the banking sector Bangladesh Bank Report Online resources

C. Collection of data: primary data are collected by using interviewing technique. The report is an exploratory research and for qualitative survey open ended question was ask to the Bank official.D. Classification, analysis, interpretations and presentation of data: Some arithmetic and graphical tools are used in this report for analyzing the collected financial data and to classifying those to interpret them clearly.E. Findings of the study: The collected data were scrutinized very well and were pointed out and shown as findings at the end. Few recommendations are also made for improvement of the current situation.F. Final report preparation: On the basis of the suggestions of our honorable faculty advisor some corrections were made to present the paper in this form.1.6 Scope of the report:

As I was sent to Standard Bank Limited, Head Office, Dhaka the scope of the study is only limited due to some restrictions. The report covers details about Human Resource Management of Standard Bank Limited. 1.7 Limitations of the study:

It was very difficult to collect the information from various personnel for their job constraint.

Because of the limitation of information, some assumptions were made. So there may be some personal mistake in the report

Omission and error may be there due to lack of my prior experience in preparing a professional report like this one; nevertheless, I have tried utmost to avoid mistakes.CHAPTER TWOSomething about the Organization Historical Background of Standard Bank Limited Merchant Banking Wing

Islami Banking

Corporate Information (As per Annual Report 2009) Vision of Standard Bank Limited Mission of Standard Bank Limited Objectives of Standard Bank Limited

Organogram of Standard Bank Limited Products of Standard Bank Limited Standard Bank Regular Deposit Program (SRDP) Standard Bank Regular Income Program (SRIP) Double Income Plus (D1+) Life Secured Double Income program (LSDIP) Capital Management Operating & Net Profit

Risk Management

Deposit Loans & Advances Retail Banking Investment International Banking Exchange House

Treasury

Syndication & Structured Finance

Strategic Business Outlook Branch Expansion

Internal Control & Compliance

SWOT Analysis Highlight of the over all activities of Standard Bank Limited Overview of Standard Bank Limited2.1 Historical Background of Standard Bank Limited:

Standard Bank Limited (SBL)was incorporated as a Public Limited Company on May 11, 1999 under the Companies Act, 1994 and the Bank achieved satisfactory progress from its commercial operations on June 03, 1999. SBL has introduced several new products on credit and deposit schemes. It also goes for Corporate and Retail Banking etc. The Bank also participated in fund Syndication with other Banks. Besides the Bank has already introduced real on-line Banking & it is now fully automated. Through all these myriad activities SBL has created a positive impact in the Market.

Standard Bank Limited was established under with the leadership of Mr. Kazi Akramuddin Ahmed, the founder chairman who had a long dream of floating a commercial bank which would contribute to the social-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship.

The bank starts its functioning from 3rd June 1999 with Mr Farid Uddin Ahmed as the Managing Director. He had long experience in the financial sector of our country. By his pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management. The authorized capital and paid up capital of the bank are TK. 880.00 Crore and TK. 264.41 Crore respectively.

2.2 MERCHANT BANKING WING

In order to broaden the base of service Standard Bank obtained a full fledged merchant banking license from the Securities and Exchange Commission (SEC) on April 2009. A dedicated wing named, Merchant Banking Wing (MBW) was established for this purpose. After completion of all formalities including staffing, infrastructural facilities, renovation etc. MBW of the bank started operation from August 2009.

The year 2009 being the first year of operation, the main objective of MBW was to attain a sound footing through providing quality service and offering portfolio schemes having attractive feature. As such, clientele base grew fast. MBW of SBL has already achieved a considerable reputation in the area of, 1) Portfolio Management and also 2) Underwriting business. Besides, MBW has also started building a portfolio of its own.

The clients of SBL may obtain margin loan facility as per the SEC guidelines through opening Portfolio Accounts at MBW. SBL offers IDA portfolio Scheme where the clients manage their own portfolios. The clientele base as well as volume of business of MBW rose gradually with the passage of time. At the end of 2009 MBW contributed substantially towards the profitability of the bank.

Standard Bank has initiated steps to expand the activities of merchant banking operations as stated below:

Merchant Banking Subsidiary Company: The formation of a Merchant Banking Subsidiary named SBL Capital Management Limited is underway. It is expected that this subsidiary will commence operation from June 2010.

Opening Of New Branches: SBL has plans to open a few branches of Merchant Banking subsidiary will at different areas of Dhaka City phase by during 2010.

Introduction Of New Products: The Bank is also working to launch a few products under the Merchant Banking Regulation.

2.3 ISLAMI BANKING

One of the most important objectives of Standard Bank is to fulfill the desires of the clients. A great number of them demanded banking with Islamic Principles vis-a`-vis the sponsors of Standard Bank also felt the necessity for introduction of Islamic Banking for quite some time. As such the bank applied to Bangladesh Bank for obtaining their permission for Islami Banking. Bangladesh Bank accorded approval for opening two Islami Banking Windows at Topkhana Road Branch, Dhaka & Agrabad Branch, Chittagong. Accordingly SBL has opened 02 (two) Islami Banking Windows at Dhaka & Chittagong during the end year 2009. SBL is following and maintaining properly the Guidelines for Islamic Banking issued by Bangladesh Bank. In this regard Standard Bank has installed separate high profile Islamic Banking Software which is known as HIKMA Software. This HIKMA Software is completely separate from the conventional software where method of profit calculation is as per Islamic Shariah.

SBL is offering the following Deposit & Investment products to our clients under Islamic Banking:

DEPOSITS PRODUCTS:1. Al-Wadiah Current Account

2. Mudaraba Savings Account (MSA)3. Mudaraba Special Notice Deposit Account(MSND) 4. Foreign Currency Accounts5. NFCD Accounts6. RFCD Accounts7. Mudaraba Term Deposit Receipt Account (MTDR)8. Mudaraba Monthly Savings Scheme (MMSS)9. Mudaraba Hajj Savings Scheme (MHSS) INVESTMENT PRODUCTS:

1. Bai- Mudaraba

2. Bai- Muajjal3. Bai- Salam 4. Hire Purchase under Shirkatul Melk Foreign Trade & Foreign are also in Islami Banking activities.In our Islami Banking Windows, we are providing all the above products, services and facilities to our clients and we are receiving very good response from them.

The vision of Islami banking is to open more Islami Banking Windows / Branches soon and also to full conversion of the Bank into Islami Banking subject to obtaining permission from Bangladesh Bank succeed very soon.2.4 Corporate Information (As per Annual Report 2009):Name of the Bank

: Standard Bank LimitedStatus

: Private Limited Company

Date of Incorporation

: May 11, 1999

Inauguration of First Branch:June 03, 1999

Authorized Capital

: TK. 880.00 Crore

Paid-up Capital

: TK. 264.41 Crore

Number of Branches

: 42 (Forty Two)

Proposed Branches

: 10 (Ten)

Chairman

: Mr. Kazi Akramuddin AhmedCompany Secretary

: Mr. AFM Nizamul Islam ChowdhuryManaging Director

: Mr. S A FarooquiNumber of Employees: 860Credit Rating

: Long Term: A2- (High Quality)

Short Term: ST-2 (Very Strong)

Registered Office : Metropolitan Chamber Buiding Building (3rd Floor)

122-124 Motijheel C/A, Dhaka-100, Bangladesh

Phone:-7175698, 7169134, 9560299, 9558375

Tele Fax:- 7176367, 7169078

E-mail-sblho@bankgla.net Website:- WWW.Stadardbankbd.com SWIFT:-SDBLBDDH

2.5 Vision of Standard Bank Limited :The vision of Standard bank Limited is be a modern Bank having the object of building a sound national economy & to contribute significantly to the public Exchequer. The gist of Bank vision is Setting a New Standard in Banking. To achieve the desired goal, there will be pursuit of excellence at all stages with a climate of continuous improvement, because, Standard Bank believes the line of excellence is never ending. Banks strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive environment. Its personalized quality service to the customers with the trend of constant improvement will be cornerstone to achieve our operational success.

2.6 Mission of Standard Bank Limited:The Bank has chalked out the following corporate objectives in order to ensure smooth achievement of its goals:

To be the most caring, customer friendly and service oriented bank.

To create a technology based most efficient banking environment for its customers.

To ensure ethics and transparency in all levels.

To ensure sustainable growth and establish full value of the shareholders.

Above all, to add effective contribution to the national economy.

Eventually the Bank emphasizes on:

Providing high quality financial services in export and import trade

Providing efficient customer service

Maintaining corporate and business ethics

Being trusted repository of customers money and their financial adviser

Making its products superior and rewarding to the customers

Display team spirit and professionalism

Sound Capital Base

Enhancement of shareholders wealth

Fulfilling its social commitments by expanding its charitable and humanitarian activities.

2.7 Objectives of Standard Bank Limited:

The motto of Standard Bank Limited Is to explore new innovative banking in an automated & computerized environment. It aims at providing one stop service & prepare itself to face the new challenges of globalization and 21st century. One of the main objectives of the bank is to be provider of quality products and services at a competitive price. The bank also centers to the needs of its corporate clients and provides a comprehensive range of financial services to national and multinational companies. The dimension of responsible corporate behavior of the Bank is the maintenance of ethical standard in its functioning. 2.8 Organogram of Standard Bank Limited:

2.9 Products of Standard Bank Ltd :

Investment / Finance: Corporate Finance

Industrial Finance

Project Finance

Syndicate Investment

Lease Finance

Small & Medium Enterprise Financing

House Building Finance Car Loan

Consumer Loan

Personal Loan

OTHERS LOAN

Real Time Online Banking

Merchant Banking

A. T. M Service

Locker Facilities

Foreign Exchange:

Non Resident Foreign Currency Deposit Account (NFCD) Foreign Currency Deposit Account2.10 CAPITAL MANAGEMENT:Capital Management of the Bank is based on the objective to maintain an adequate capital base to support the projected business and regulatory requirement as well as to establish a modern, progressive, sound Bank having excellent asset quality.

a) Authorized capital of the Bank was TK. 880.00 crore. The paid- up capital of the Bank stood at 264041 crore in 2009.The statutory reserve enhanced by TK. 25.68 crore in 2009 and stood at TK. 103.37 crore. The total equity of the shareholders of the Bank at the end of the 2009 stood at TK. 422.17 crore. Standard Bank has a plan to enhance both the authorized capital and paid up capital of the Bank adequately in the current year.

b) As per directives of Bangladesh Bank., the Banks are required to maintain capital at 10% of Risk Weighted Assets (RWA) from 31 December 2007. Tier-1 capital should be minimum 5% of total capital. Teir-1, includes the equity such as, paid- up capital, reserve and retained earnings. Teir-11, another part of the capital fund, includes General Provision on unclassified loans and advances and exchange equalization account. Total capital fund increased by TK. 91.62 crore during 2009. Tier-1 capital grew by TK. 78.42 crore and stood at TK. 420.76 crore.

Capital Adequacy ratio is measured by the ratio of a Banks capital to risk weighted asset. Capital adequacy ratio was equivalent to 13.56% of risk Weighted Assets in 2009 against minimum requirement of 10%.2.11 OPERATING & NET PROFIT:Standard Bank Limited generation an operating profit of TK. 152.98 crore in 2009 compared to TK. 146.85 crore in 2008 making a growth of 4.17%. After all provisions including general provisions on unclassified loans, profit before tax stood at TK. 128.43 crore compared to previous years TK. 108.40 crore registering a growth of 33.13%. Earning per share (EPS) is TK. 28.90 in 2009 compared to TK. 24.83 in 2008.

2.12 RISK MANAGEMENT:SBL Risk Management Strategy:Standard Bank Limited (SBL) has been managing and controlling risks as the Bank feels the issued of Risk Management is vitally important to the organization s success and sustainability. As a consequence, it has developed and implemented a comprehensive risk management infrastructure including policies and procedures that follow Bangladesh Banks guidelines.

The Banks major risk management objectives include understanding and recognizing risks, assigning responsibility for risk and ensuring the development of the organizations risk management capabilities. Operationally the Banks mission is to realize the highest possible risk- based return while at the same time effectively and efficiently achieving its overall objectives.

Risk Management Unit.

A high profiled Risk Management Unit is in force in the Bank with an endeavor towards efficient and more improved risk management regime. SBL is keen on assessing the capacity to assume risk in several ways, which are described in more detail of the consolidated financial statements.

Categorization of Risk:

Risk management processes distinguish among three kinds of specific banking risk:

Credit Risk

Market Risk

Operational Risk

Credit Risk Management:

Credit Risk arises from all transaction that give rise to actual, contingent or potential claims against any counterparty, borrower or obligor. This is the largest single risk in credit risk management and is called default risk when counterparties fail to meet contractual payment obligations.

Credit risk makes up the largest part of our risk exposures. Standard Bank measures and manages its credit risk following the under mentioned principles:

1. In its entire business unit and the branches follow consistent Standard policies of credit decision processes.

2. The approval of credit limits for counterparties and the management of its individual credit exposures fit within credit guidelines and strategies.

3. Every extension of credit or material change to facility to any counterparty requires credit approval at the appropriate authority level.

4. The Bank measures and consolidates all its credit exposures to each borrower on a standard consolidated basis that applies across our Branches.

Credit Risk Rating:

A primary element of the credit approval process is a detailed risk assessment of every credit exposure associated with counterparty which is called as Credit Risk Grading (CRG). The Banks risk assessment procedures consider both the creditworthiness of the counterparty. This risk assessment not only affects the structuring of the transaction and the outcome of the credit decision, but also influences the level of decision- making authority required to extend or materially change the credit and the monitoring procedures we apply to the ongoing exposure. Besides, The bank has been putting weight on Borrower Rating by External Credit Rating Agency to minimize the risk exposure under Standardized approach of Basel 11 regime.

SBL generally rates all its corporate credit exposures over Take 0.50 crore individually. When the bank assigns its internal risk ratings, it compares them with external risk rating assigned to its counterparties by the rating agencies, where possible.

Market Risk:

Market risk arises from the uncertainty concerning changes in market prices and rates (including interest rates, equity prices, foreign exchange rates and commodity prices), the correlations among them and their levels of volatility. The Bank is using Standardized (rule based) approach for addressing market risk.

Substantially all of Bank businesses are subject to the risk that market prices and rates will move and result in profits or losses for the bank. SBL distinguishes among four types of market risk:

*Interest Rate Risk;

*Equity Price Risk;

*Foreign Exchange Risk; and

* Commodity Price Risk;

The interest rate and equity price risks consist of two components each. The general risk describes value changes due to general market movements, while the specific risk has issuer-related causes (including credit spread risk).

Business Risk describe the risk the bank assumes due to potential changes in general business conditions, such as market environment, client behavior and technological progress. This can affect earning if Bank failed to adjust quickly to these changing conditions.

Liquidity Risk is the risk arising from our potential inability to meet all payment obligations when they come due or only being able to meet these obligations at excessive costs.

Reputation Risk within risk management processes, it is reputation risk as the risk that publicity concerning a transaction, counterparty or business practice involving a client will negatively impact the publics trust in organization.

Operational Risk:

Operational Risk Management is an independent risk management function within the Bank. Operational risks identifies through effective analysis which are managed via mitigation strategies such as the Disaster Handling and back- up systems for Information Technology related risk and emergency plans for Business Continuity. Where appropriate, we purchase insurance against operational risks.

The Bank uses basic Indicator Approach to addressing Operational Risk. Operational Risk is the potential for incurring losses in relation to

Employees Performance

Documentation & Record Keeping

Information Technology

Infrastructure failure

Disasters

External events

Customer Relationship

Legal/ Regulatory Compliance Risk

The strong Supervisory Review Process & effective Internal Control & Compliance Culture of Standard Bank Limited helps to mitigate operational Risk. SBL manages operational risk based on consistent framework that enables SBL to determine its risk profile in comparison to its risk appetite to define risk mitigating measures and priorities.

2.13 DEPOSITS:

SBL always tried to give the highest return on the deposits from the customers. The deposits of SBL reached the level of TK. 4255.55 crore during 2009 from TK. 2930.47 crore of previous year. The growth rate is 45% Cost of deposit for the year stood at 9.33% compared to the previous years cost of 9.29%. The increase in deposit was possible due to superior customer service delivery at the branch level. SBL is offering different types of deposit products for the customers. Among the products, Fixed Deposits, Scheme Deposits of different types, savings deposits, short-term deposits remained the core deposits of the Bank. SBL Regular Income program (SRIP), Double Income Plus (DI+), SBL Regular Deposit Program (SRDP), Life Secured Double Income Program (LSDIP) etc. are some attractive products, which contributed to the growth of deposit.

2.14 LOAN AND ADVANCES: Total loans and advances stood at TK.380.56 million as on December 30, 2009,in comparison to TK.27,190.94 million as on December 30, 2008, which indicates an increase by 40%. During this time the Bank has concentrated to explore new and diversified avenues for investment with the objective of developing and maintaining a sound portfolio ensuring profitability and risk mitigation. In recent time the Bank has given emphasis on service sector like telecommunication, tourism, hotel, motel, housing and ship breaking and other emerging sectors like pharmaceuticals, power, steel, re-rolling and ceramic etc. The Bank is also looking for financing in the rising sectors like ship-building, aviation and information technology. The Bank is also giving emphasize on Agriculture sector and allocated fund of TK. 10.00 million for requirement in future. Banks careful and continuous effort in operation of credit has resulted in a very negligible percentage of nonperforming loan which is 1.83%i.e.TK.696.50 million as on December 31, 2009 out of total loan of TK.380.55 million. Last year this percentage was 1.87% . Thus it is showing a decreasing of NPL and due provision has been made as per norms of Bangladesh Bank. The Bank is also aware of the on going world economic recession, accordingly careful and due steps are being taken to maintain asset quality.

2.15 RETAIL BANKING:Small Enterprise Financing

Keeping in view of policy of Bangladesh Bank directives and diversification of risk, Branch incumbents are advised to diversity their loan profile and enrich SME sector. It is now in close monitoring by Head Office SME department. During 2009 the Bank sanctioned TK.878 million in SME sector through its Branches and SME Centers which indicate growth of 96.36% over 2008.

Now to exploit rapidly increasing opportunities in the fast expanding SME sector, the Bank opened 03(three) SME Service Centers at 1) Bishwanath, Sylhet . 2) Osmani Nagar, Sylhet. 3) Langolmora High School Market, Hathazari, Chittagong in December 2009.

Besides the Bank has undertaken a program for opening for 2 (two) more SME-Agriculture Branches in the year 2010.

Agriculture& Rural Credit Department:

Agriculture sector plays important role in our national economy. As developing country till now 80% of total population is directly engaged Agricultural activities. For food security govt. has taken new policy initiatives to increase agricultural productivity. Bangladesh Bank has taken credit program of TK. 11,500 crore for fiscal year 2009-2010 and directed all private commercial banks to finance in the Agricultural sector. Standard Bank Ltd. has taken a target of TK. 100.00 crore for disbursement in agriculture during fiscal year 2009-2010.

Activities of Agriculture and Rural Credit Department:

A. To achieve the disbursement target of Tk. 100.00crore,the Bank launched Agriculture and Rural Credit products as under:

1) Standard Sonali Fasal (Crop Loan).

2) Standard Amish (Live Stock and Poultry Loan).3) Standard Rupali Mach (Fishery Loan).4) Standard Krishi Jantra Prokolpa (Agricultural Machinery and Equipment Loan).5) Standard Sachal Prokolpa (Poverty Elevation Scheme).6) Standard Sudin (Crop Mortgage Loan). B. Agricultural and Rural Credit Department has selected 2 (Two) villages namely Kurpara Village under Kotalipara Upzila and Tungipara Village under Tungipara Upzila as a Adarsha Village under integrated village development credit program for disbursement of Agriculture and Rural Credit.

2.16 INVESTMENT

Treasury Investment is mainly done for maintaining the Statutory Liquidity Ratio (SLR). SBL Treasury usually maintains its Investment portfolio for maintaining SLR and to some extent for the prudent fund management. SBL Treasury portfolio mostly contains of 91 Day, 182 Day and 364 Day Government Treasury Bills. Also there are a couple of 5 years at per Bangladesh Government Treasury Bonds in our holding. Diversified Investment portfolio also reflects distribution of liquidity performance. In the year 2009, the size of Investment portfolio raised to Tk. 471.41 Crore against Tk. 284.03 Crore in the year 2008 showing an increase of 65.92%. Within the portfolio of 2009, 87% are in the HFT (Held for Trading) mode and the rest 13% are in the HTM (Held to Maturity mode).

2.17 INTERNATIONAL BANKING

Corresponding Banking

The objective of Standard Bank Limited is to increase its Forex business and for that end in views, the bank has kept its continued efforts to establish corresponding banking relationship with internationally reputed banks all over the world. Now the bank has strong correspondent banking network with 94 renowned banks around the globe along with RMA (Relationship Management Application) under SWIFT covering all their branches. The number of correspondent banks was 83 in the year ended 2008. Establishment of Correspondent Banking Relation in the year 2009 with Bank of China is mentionable one. During the year 2009, the bank made new relationship with 12 banks including their 24 branches under SWIFT arrangement.

The Bank is also enjoying substantial credit line from most of the world renowned banks where standard Chartered Bank, Citibank N.A, Mashreqbank psc, HSBC Bank, The Bank of Nova Scotia, Commerzbank AG, Nordea Bank (Finland, Denmark, Singapore), Wachovia Bank, AB Bank Mumbai, AB International Finance Hong Kong are mentionable. This helps the bank to honour our LCs and to fulfill its payment commitment abroad. In addition, The bank has signed an agreement with Asian Development Bank (ADB) in December 2009. Under the arrangement, they will confirm its LCs for big amount through itscorrespondent banks abroad.

International Trade:

Standard Bank Limited has been playing a significant role in the overall foreign exchange business of the bank and in the Forex since inception of the bank. The bank is contributing in the countrys national economy after successfully handling forex transactions offering a abroad spectrum of Trade Finance Product through its 15 A.D. Branches.

Import:

During the year 2009, the import volume of the Standard Bank Ltd was USD 564.33 million equivalent to BDT 40,411.16 million. Import volume increase with a growth rate of 13.23% than the previous year 2008 with import volume of USD 504.56 million equivalent to BDT 35,689.24 million.

Export:

During the year 2009, total export volume of Standard Bank Ltd stood at USD 428.51 million equivalent to BDT 29,177.10 million which compares to previous year 2008 of USD 378.72 million equivalent to BDT 25,072.07 million. This reflects a sound growth of 16.37%. The Bank has given emphasis on export of traditional items like Tiles, Bi-Cycle, Shrimp, Handicraft, Betel- nut, Coriander seed etc.

Foreign Remittance:The Bank has remittance arrangement with Wall Street Finance USA. Under the arrangement, Bangladeshi expatriates from USA, Canada and UK. Can remit their earnings easily.

In July 2008, the bank has started operation by signing agreement with MoneyGram Inc. USA to facilitate the WES earners to remit their money from all over the world by using the Global Network of MoneyGram. In addition, the bank has signed agreement with Economic Exchange Center and Universal Exchange center in USE. Operation will start immediately after completion of all formalities and Central Banks compliance.

In order to explore more remittance possibilities, the Bank continues its efforts to make remittance arrangement with different Exchange House in U.A.E., Qatar, Italy, U.K., U.S.A, Canada, Malaysia, Singapore, Omen, and Spain.

Foreign Remittance Business through Exchange House stood at USD 5.10 million equivalent to BDT 347.98 million during the year 2009 against USD1.35million equivalent of BDT 93.09 million in 2008.

2.18 Exchange House:The Bank opened Standard Exchanged Co. (U.K.) Ltd on 20th August 2009 at 101 Whitechapel Road, London E1 1DT, U.K.; 100% owned subsidiary company of Standard Bank Limited. In the year 2009 (20.08.09- 30.12.2009), SBL received BDT 263.11 million remittance from U K through its Standard Exchange Co. Meantime, It has already obtained permission from Bangladesh Bank to open another subsidiary exchange company of the bank in U S A. The bank has a plan to open Exchange House in Canada, Malaysia and Italy in near future subject to obtaining Bangladesh Banks approval. As a result, Bangladeshi expatriates will be able to remit their earning easily and with ease and comfort.

2.19 Treasury:

SBL treasury is an important and unique banking unite and it is one of he best earning sources of the Bank at the Head Office level. The Treasury Division comprises with two wings. One is Money Market dealing with the Local Currency for managing and utilizing fund and the other is Foreign Exchange dealing with the Foreign Currency. The bank has a skilled Treasury Team working for prudent fund management. During the year 2009 total income for the Treasury was Tk. 55.89 Crore from which Tk. 26.31 Crore earned from the Foreign Exchange Transactions and Tk. 29.58 crore earned from the Local Currency Transaction in the money market.

2.20 Syndication and Structured Finance: Syndication Finance has become a popular mode of financing from the viewpoint of both the sides i.e. borrower and lender especially for setting up a big size project/venture. There has been a surge in the number of syndication deals closed in the last year. Total participation in the Syndicate Loan at the end of December 31, 2009 stand at about Tk. 230.00 crore where it was Tk. 187.00 crore at the end of December 31, 2008 which is an increase of23%. The major focal area of investment is Telecommunications, Aviation, Pharmaceuticals, Steel Re-rolling, Ceramic, Hotel & Textile sectors. For the up coming year it is expecting some potential investment under the Syndication Finance where Standard Bank will be the Lead Arranger.

2.21 Strategic Business Outlook:Standard Bank Ltd. has put in strong endeavor to involve in banking sectors of country with the vision to grow with the economy of the country. It considers the entire spectrum of businesses activities irrespective of size, not only for the better service to its clients, but for all stake holders and people and people as a whole.

The changing scenario at Banking sector is experiencing different attention on deferent perspective. The priorities are also taking new style in recent development of Regulatory structure and market condition in Bangladesh. Thus Standard Bank Ltd. has taken numbers of steps to diversity its business avenue. Special attention is being given to finance in Infrastructure, Power Generation, Pharmaceutical, Ship- Building, Iron & Steel industries. Due attention is now being given to Agri & Agri based sector. SME and other micro credit operation are new areas for us for uplifting national economy at large.

Besides, business concentration is being addressed in many ways like opening of one exchange house in the UK and similar other exchange houses to be opened in the USA, Italy and Canada within the shortest possible time.

At home some more Branches are being opened considering potentialities and demand of the economy needs of the concerned areas. Its ultimate goal is to cover more areas with technology based delivery channels.

Dynamic decision making process, Moderate Risk based Management, Diversified and peoples friendly business model, Dedicated IT infrastructure, Technology based product, Strong Internal Control System and Efficient Performance of the Management team are most effective tools in attaining better outcome at Standard Bank Ltd.

The strategic management of SBL is a process that evaluation and controls our business in the total Banking industries, in which it is exactly involved. The Bank also assesses the market environment to set goals and strategies by taking in to consideration of all potential competitors.

2.22 Branch Expansion:During the year 2009 the bank opened 09 (Nine) new branches at the commercially important places located throughout the country i.e. Dhaka, Chittagong, Bogra, Kotalipara- Gopalgonj, Coxx Bazar, Rangpur, Beani Bazar- Sylhet & Moulvi Bazar and 03 SME Service Centres at Bishwnath & Goalabazar, Sylhet and Nagnalmora- Hathazari, Chittagong. At present its total number of branches stood at 41 (Forty One). Out of which 14 (Fourteen) branches are Authorized Dealers (AD). The Bank plans to open 12 (Twelve) new branches during the year 2010 at Dhaka, Chittagong and other commercially important places located throughout the country including rural areas. The Bank also decided to convert 06 SME Service Centers into full- fledged SME & Krishi Branch, in order to reach the general masses and make banking facilities available to every sectors/ areas of the country.

Besides, the Bank started its Merchant Banking wing at the ground floor of Head Office Premises and also started two Islami Banking Windows one in Topkhana Road Branch, Dhaka and another in Agrabad Branch, Chittagong. In additional to that the Bank opened an overseas Exchange House titled Standard Exchange House (UK) Ltd. in united Kingdom which is a fully owned subsidiary company of the Bank. The Bank plans to expand its Merchant Banking activities into the other branches of the Bank during the year 2010 and to open another Exchange House in United States of America.

2.23 Internal Control And Compliance (ICCD):Internal Control is the process, initiated by a companys Board of Directors, the Management and other personnel, and it is designed to provide reasonable assurance regarding the achievement of objectives, the reliability of financial reporting and compliance with applicable laws, regulations and internal policies.

The bank has designed its internal control system based on the guidelines framed by Bangladesh Bank in managing Core Risk in Banking. In order to have effective, efficient and complaint internal control system the bank has segregated its Internal Control & Compliance Division in to three separate departments namely:

1. Audit & Inspection Department

2. Monitoring Department

3. Compliance Department

1.14 SWOT Analysis:

SWOT analysis is the detailed study of an organizations exposure and potential in perspective of its strength, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As through this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

Strengths:

Standard Bank Limited has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector.

Standard Bank has provided its banking service with a top leadership and management position. The Board of Directors headed by its Chairman Mr. Kazi Akramuddin Ahmed is a skilled person in business world. Standard Bank Limited has already achieved a high growth rate. The number of deposits and the loans and advances are also increasing rapidly.

Standard Bank has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees.

Standard Bank has the reputation of being the provider of good quality services to its customers.

Weakness:

The main important thing is that the bank has no clear mission statement and strategic plan. The banks not have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank. The path of the future should be determined now with a strong feasible strategic plan.

The bank failed to provide a strong quality-recruitment policy in the lower and some mid-level position. As a result the services of the bank seem to be Deus in the present days.

The service quality is poor with regard to Multinational Banks located here.

Some of the job in Standard Bank has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of Standard Bank that it is having a group of unsatisfied employees.

In terms of promotional sector, Standard Bank has to more emphasize on that. They have to follow aggressive marketing campaign.

Opportunity:

The activity in the secondary financial market has direct impact on the primary financial market. Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank.

Opportunity in retail banking lies in the fact that the countrys increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market.

A large number of private banks coming into the market in the recent time. In this competitive environment Standard Bank must expand its product line to enhance its sustainable competitive advantage. They can introduce credit card and debit card system for their potential customer.

In addition of those things, Standard Bank can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders. And the scheme should be separate according to the professions, such as engineers, lawyers, doctors etc.

Threats:

All sustain and upcoming multinational, foreign and private banks pose enormous threats to Standard Bank Limited.

The default risks of all terms of loan have to be minimizing in order to sustain in the financial market. Because of the default risks lead the organization toward bankruptcy. Standard Bank has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem.

The low compensation package of the employees from mid level to lower level position threats the employee motivation. As a result, good quality employees leave the organization and it effects the organization as a whole.Conclusion:

Standard Bank Limited has achieved a satisfactory level of progress in all the areas of its operating during the year 2009. The members of the Board of Directors of Standard Bank Limited take this opportunity to offer their sincere thanks to the Government of the Peoples Republic of Bangladesh, different Ministries, Bangladesh Bank and other regulatory bodies for their guidance, support, Help and co-operations towards the overall growth and development of the bank during the year 2009. The directors have expressed their deepest sense of gratitude and thanks to the valued clients, patrons and well- wishers for the support and cooperation extended to the Bank. Finally, we cordially thank and appreciate the Executives, Officers and members of the Staff for their commitment, devotion, dedication, loyalty and hard work that they have rendered towards overall growth, development and progress of the Bank.

.

CHAPTER THREEMajor keys about HRM of Standard Bank Limited Introduction The HR Function

Human Resource Division in Standard Bank Executive Summary Purpose of HR

Goal & Objective of HR

Policy Structure of HRM

Organizational Structure

Manpower Planning & Analysis

Staffing

Employee Code of Conduct

Segregation of Duties & Authority Distribution

Team Building

Employees Classification Definition

Personal Information Privacy Policy Attendance

Disciplinary Guidelines Recruitment Policy

Team Building

Background Investigation Procedure Disciplinary Action procedure

Cost Control & Compensation policy Salary Structure

Performance Management

Promotion

Reward & Recognition

Guidance & Supervision

Addressing Poor performance

Leave Policy

Staff Development & Training

Retirement

Retirement Benefits

Termination & Resignation

Conclusion

3.1 Introduction

How does a bank or the as usual organizations manage their people? Both executives and academics believe that human capital management and investment is essential to the competitiveness of firms, but there is a wide variation of opinion about how best these complex organizational activities are implemented in practice. This can be a raft of leading or best practices that are common across many companies, and certain practices that are unique. The HR FunctionThe Standard bank have adopted similar forms of administrative HR provision such as shared services, HR intranets, self service HR and to a lesser extent, outsourced HR, all enabled by significant advances in administrative process and information-capture technology. These moves have been made in the interests of efficiency gains and also for the purpose of enabling a smaller core of HR staff to pursue sore strategic activity. For this strategic work, there are a number of examines of HR as internal consultants, aiming to add value through thought leadership, particularly around issues of change and also process expertise. The HR director is a member of the executive committee of the organization, which is an important structural signifier for the value of HR. There is recognition in the organizations that change readiness in employees is important for the revitalization of the firm. Therefore the centrality of the HR function is crucial. Talent management as an overarching concern, ensuring the linkages between component parts of staffing, performance of management and development are aligned, shoes the importance of managing the system of practices. The understanding of employees power demographics and the implications for the talent pool is held to be crucial for long term and long term trends in usually downstream from the business strategy, and one issue that consistently emerges is the lack of real depth in viewing the long term, particularly in terms of job market scanning. Human Resource Division in Standard BankThis department manages recruitment, training and career progression plan. Standard Bank highlights the importance of developing its people to create a culture of customer service, innovation teamwork and professional excellence. EXECUTIVE SUMMERY

Standard Bank Ltd aims to solidify the banks position as one of the leaders in the Bangladesh banking and financial markets by being a highly efficient work force, technologically advanced, modern financial instrument and by effectively Latinizing the professionalism and commitment of its employees.

Typically, companies reorganize their structures to free managers and executives from bureaucracy and drive for more entrepreneurial elegance. As a sign of the new emphasis on the human resource function, an individual human resources policy is needed for an organization like a Bank to address, design and implement challenges in this area.

It is highly significant in the history, that the higher Management recognized that an individual Division was experienced necessary to look after the matter. The Human Resources Division has to address a comprehensive view of the employment practices and procedures of the bank Success can only be achieved, if the members of staff feel they are being treated correctly by the Bank and fully understand the Banks objectives and rationale for their achievement. It is essential, therefore, that Bank develop an employee relations climate which facilitates these attitudes without reducing managements ability to manage the business.

Although, Standard Bank Ltd has a Service Rule containing empirical guidelines of Standard Bank Ltd service, the Bank also needs an explicit document of Human Resources Manual.

3.2. PURPOSE

In every Human Resources Management (HRM) practice, there are some strategic aspects. While formulating Human Resources (HR) strategies, management need to consider these strategic aspects associated with HR practices which will result in strategic HRM. Because, human resource strategy is now considered to be closely allied or linked to overall corporate and business strategy; the two go handing hand.

TO MAKE DOCUMENT OF RELATIONSHIP

The Human Resources Policy Manual is the Banks policy guidelines written into a usable guidebook for its all employees. This manual not only outlines the Bank policy toward the various phases of the employer-employee relationship, hut it also indicates how policy is to be administered. Consequently, all official should be able to use this manual as a guidebook when he or she needs to apply Bank policy in a given situation. Every employee should feel free to consult this manual to assist in the interpretation of this Human Resources Manual.

TO ENSURE OVERALL INTEREST OF THE BANK

The purpose of having a human resources guidelines is to establish, develop, maintain, and communicate office policies throughout the entire Bank and to represent, help, advise, and consult with the employees, while simultaneously keeping the overall best interests of the Bank in mind. A human resource guideline develops hiring plans and recruiting policies, as well ~s handles compensation and salary administration. It also works for affirmative action and handles employee relations, separations, contracts, performance reviews, benefits and pension plans.

TO BUILD TEAM FOR ACHIEVEMENT OF BUSINESS OBJECTIVES

Banks human resource strategies are seen as the key to the achievement of business objectives: By mobilizing the human resource in pursuit of strategic goals, human resource management contributes directly to business success. Therefore, a string fit is required between individual HR strategies and business level strategies. A particular tipsiness strategy carries clear implications for HR strategy.

TO MAKE TOOL FOR SUPERVISION

However, the Policy Manual is an important tool for supervision. It is the philosophy of the Banks Department of Human Resources that officials work better when they know what is expected of them. They feel more secure, confident, and more at on~-with the Bank when policies are made clear for them. Policies promote a movement toward responsibility rather than away from responsibility. The ever-present tendency to pass-the-buck (shift the blame) is reduced to a great extent.

TO CREATE ENVIRONMENT FOR WORKING TOGETHER

Handling people are always difficult and difficult people are always hard to handle, however with the help of a human resource guideline, employees can work together as a cohesive unit to not only solidify the organization but to take in the profits as well. Management has to understand the psyche of a person so that they can motivate and stimulate employees to work not only more efficiently but more effectively as well.

TO CREATE FRIENDLY ATMOSPHERE

Thus ultimately the purpose of having a human resource policy comes down to wanting a cordial and friendly atmosphere where employees can work side by side with their peers to create an effective business mechanism.

TO ACHIEVE ECONOMIC SUCCESS

A human resource guideline is a key to ensuring economic success of a Bank. This is because a good human resource mechanism not only helps to boost the morale and efficiency of employees, but also restricts and limits job turnovers as well. The purpose of human resource Manual is thus to basically utilize an employees abilities effectively by coaching them to maximize those abilities, while simultaneously improving their working environment so that they are assured job satisfaction.

TO BRING MANAGEMENT ADVANTAGES

Specifically, this Policy Manual is designed to provide management with the following advantages:

TRANSPARENT -- Written Manual is one of the best remedies in the Human Resources puzzle for the troubles an organizational gossip can cause. Even though everything is subject to interpretation, the odds overwhelmingly favor the written words compared with the oral.

LINE OF MANAGEMENT -- Top management cannot make all the decisions that need to be made within the Bank community. Often times they feel the need because they are afraid to release that authority to subordinates. Naturally, it follows that if top management felt that mid management I front office personnel could make decisions like top management would, the reluctance would be relieved. The Policy Manual achieves this desired relationship. It thus reflected in a smooth interpersonal relationship chain and delegation of authority.

CONSISTENCY -- Consistent application of Bank policies is constructive because it means employees will be treated equally. It prevents, to a great extent, the seepage (leakage) of prejudice and bias in the decisions of supervision. The achievement of this one virtue takes a colossal step toward the maintenance of satisfactory employer-employee harmony. The need for a Policy Manual is essential. In short, no organization is invulnerable to the fallacies (myth) of human nature. These written policies should increase understanding of Bank-wide policy.

ENSURE REGULATORY COMPLIANCE -- Every government has numerous legal and regulatory requirements regarding personnel management and Industrial relation. Besides, there are many constraints of maintaining international standards and practices. This policy will accommodate all the legal and regulatory guidelines enforced in Bangladesh and requirement international standards and practices in the field of HRM as well.

3.3. GOAL AND OBJECTIVES

The basic aim of human resources management of Standard bank Ltd., is always to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business by addressing the three challenges of staffing, employees compensation/benefits, and defining/designing work.

Nowadays the HR department in most organization is more involved and has more hands on, active role in an organization. Current human resource departments now balance more responsibilities as they also discuss the strategic planning of a business with top executives. HR managers in todays time and age lead the way in not only making recommendations, but also initiate policy changes.

GOAL

The human resource strategy of the Bank is to ensure the optimum use of Banks work forces by means of:

Staying Together

Developing Together

Performing Together

Working Together

Sharing Together

Communicating Together

Appreciating Together

Healthy Together

Benefits Together

KEY OBJECTIVES

However, the key human resources objectives as follows: Bank will motivate and aware its staff geared to performance.

Control and authority of staff by line management with Personnel support. The endeavor is to begin to explore how a considered and planned approach to people management can improve business performance, to the benefit of all.

To initiate & institutionalize globally competitive HR practices in the Bank in a pursuit to become a leading Bank and to become an employer of preferred choice;

To put in place relevant HRD strategies and use modern methodologies to undertake organizational renewal; identify and nurture talent, bring about marked changes in the mindset of employees at all levels so as to enhance HR Quality;

To create a performance-driven culture and an exciting workplace for the employees

To create a pool of entrepreneurial managers and business leaders for future;

To inculcate a strong and effective sales and service culture across levels in the organization in order to generate strong stakeholder affiliation;

To create a learning organization for employees intellectual growth and creativity; and to deskill the workforce to operate in digitally enabled modern core banking environment.

3.4. POLICY STRUCTURE OF HUMAN RESOURCE MANAGEMENTHRM structures vary widely from business to business, shaped by the type, size, and governing philosophies of the organization that they serve.

Human resource management functions are ideally positioned near the theoretic center of the organization, with access to all areas of the business.

STRUCTURE

Since the Banks top management together with HRM department is charged with managing the productivity and development of work force at all levels, human resource personnel should have access toand the support ofkey decision makers. In addition, the HRM department should be situated in such a way that it is able to communicate effectively with all areas of the Bank.

However, HR structural dimensions will be subdivided into three areas:

INDIVIDUALIndividual management entails (involves) helping employees identify their strengths and weaknesses; correct their shortcomings; and make their best contribution to the enterprise. These duties are carried out through a variety of activities such as performance reviews, training, and testing.

ORGANIZATIONALOrganizational development, meanwhile, focuses on fostering (encouraging) a successful system that maximizes human (and other) resources as part of Jaeger business strategies. This important duty also includes the creation and maintenance of a change program, which allows the organization to respond to evolving outside and internal influences.

CAREER

Finally, there is the responsibility of managing career development. This entails matching individuals with the most suitable jobs and career paths within the organization.

DYNAMISM & ACCOMMODATING CHANGING SCENARIO

In a changing management atmosphere the trend toward fundamental reassessment needed of human resources structures and positions for new leadership. A cascade (flow) of changing business conditions, changing organizational structures, and changing leadership has needed to alter the HR structure in perspectives on goal, role and function.

HR BUSINESS MODEL

The Model is adequately supported by a suitable Learning Platform, which imparts proper real life knowledge and enhances Learning among people so that their Competence increases and their potential could be properly leveraged for greater Individual and Organizational Effectiveness.

These create proper Employee Motivation, which ultimately facilitates Goal Achievement.

ORGANIZATION PHILOSOPHY & GOALS

LEADERSHIP

HR planning & Management sub-system

competency Based HRD sub-systems

Communication

Attitude & Culture

Competencies

Performance Driven Environment

Learning platform

Employee Motivation

Goal Achievement

EMPLOYER OF CHOICEStandard Bank Ltd is striving to become an employer of choice for high performing official and believes that every employee has the right to fair and equitable treatment and opportunity. Employees also have the right to know what the Bank expects of them and what they can expect from the Bank.

The Banks commitment to fairness, equity and integrity is reflected in its human resources policies and procedures.

BASIS OF STRATEGIC HR POLICY

The Strategic HR Business Model adopted by Standard bank Ltd., incorporates its HR Mission and

Philosophy and is focused towards attainment of long-term organizational goals.

ORGANIZATIONAL LEADERSHIPA very strong Organizational Leadership at different levels forms the key link in the Model. These are;

Strategic Leadership - Corporate level

Business Leadership Divisional/Zonal/Branch level

Operational Leadership - Business unit level! Branch level

DEVELOPMENT OF CAPABILITIES

The two vital Human Resource sub-systems i.e. HRM Planning & Competency Based HR are shape the very crucial Performance Environment within the Bank which facilitates development of enabling capabilities of people.

.Through proper developmental inputs, Positive Attitude & Right Mindset is created among people.

Through proper Communication Medium and an Organizational Culture of sharing, sincerity, collaborator & confrontation, autonomy etc. people in the organization are facilitated to give their best output (performance).

SKILL MANAGEMENTThe skills usually defined in terms of a framework which also known as a competency framework. This consists of a list of skills, and a grading system, with a definition of what it means to be at particular level for a given skill. Detailed of skill and efficiency evaluation are being made through a format of Annual Confidential Report (ACR).

Banks skills management systems record the results of this ACR records in a database, and analyze the data regularly. In order to perform the functions of management and to assume multiple roles, Executives and Officers must be skilled up to the mark.

Three managerial skills that are essential to successful management: technical, human, and conceptual.

TECHNICAL SKILL involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area.

HUMAN SKILL involves the ability to interact effectively with people. Management interacts and cooperates with employees.

CONCEPTUAL SKILL involves the formulation of ideas. Management understands abstract relationships, develop ideas, and solve problems creatively.

Thus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas.

3.5. ORGANIZATIONAL STRUCTURE:Historically organizations structured themselves on a centralized and compartmentalized basisHead office, Zonal Office, Regional Office, Branches etc. However, now leaders seek to decentralize and to integrate their operations, developing cross-functional teams.

Standard Bank Ltd currently operates its Head Office at 122, 124 Motijeel C/A Dhaka, through numbers of divisions and numbers of branches throughout the country.

At present (2009) the Branches are directly connected and controlled by the Head office, and all the logistic support, back office support, centralized core Banking database, enterprise database . and centralized decision support systems are conveniently provided from Head Office end.

Today, Bank expects HR to move beyond its traditional, compartmentalized bunker approach to a more integrated, decentralized support function. Technology allows the Management work centrally and operation take place from Point of Delivery from Branch as quickly as possible.

This is exactly an increasingly common trend in human resources to decentralize the business operation and function which make it accountable to specific line management. This increases the likelihood that HR is viewed and included as an integral part of the business process, similar to its business competitor, stakeholders, and operations counterparts. However HR shall retain a centralized functional relationship within the organization at large.

Organogram of Standard Bank Ltd as under.

3.6. MANPOWER PLANNING AND ANALYSIS:HR planning requires that an assessment of present and future needs of the organization be compared with present resources and future predicted resources. Appropriate steps then be planned to bring demand and supply into balance. Bank will assess the requirement before hiring extra employee considering its strategic policy and corporate objectives.

Job analysis data contributes to virtually all Human Resource Management functions; recruitment and selection, performance evaluation, training and development, compensation management, job design, work force projections, and work force reduction or expansion decisions.

Job analysis is the process of defining the work, activities, tasks, products, services, or processes performed by or produced by the employees of a Bank.

Human resource principle fall into three major areas: staffing, employee compensation and benefits, and defining/designing work. Thus planning of a comprehensive HR Manual shall be taken into consideration of these areas of concentration.

PLANNING ISSUE

Man power planning in Human Resource Management is a core factor for a Bank. Here the penalties for not being correctly staffed are costly. The HRD will conduct study for understaffing loses of the business regarding economies of scale and specialization, customers and profits of a Banking organization on HR perspective.

The detail areas of concentrations to planning of human resource include to:

Train the workforce to maintain competitiveness of the organization

Develop and communicate industrial relations policies and procedures to conform to

legal and regulatory requirement and international labor standards.

Involvement in grievance and disciplinary hearings

Lead negotiations as needed

Implement termination and hiring procedures

Liaison with legitimate interest, pressure group or stakeholders.

Develop compensation strategies and policies in compliance with legislation, market

forces, and the organizations business strategy.

Manage overall labor costs.

Update employee information

Advise supervisor/ regulator regarding trends emerging from the data.

Conduct HRM research with the aim of solving problems in the organization. SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITY AND THREAT) ANALYSIS

Bank Human Resources should focus on the internal strengths and weaknesses of the people side of the business. Vigorous study on the external business and market environment needed to highlight the opportunities and threats relating to the people side of the business.

With the beginning of a new year the HRD will complete a SWOT analysis of the HR - consider in details the departments current areas of operation, the service levels and competences of Bank personnel staff. And place a report before the Management for further course of action.

COPS (CULTURE, ORGANIZATION, PEOPLE, SYSTEMS) ANALYSIS

The Human Resources Division will conduct the C~F~ analysis and maintain a checklist thereon as under:

CULTURE

Bank staffs identify with the organization and the success of the organization as being of direct benefit to themselves.

Bank staffs see themselves as having common interests with their work colleagues and group. They must work with a strong team spirit.

Work allocated on the basis of individual expertise rather than position in the organization.

There are appropriate leadership skills within the organization.

Bank staff members are encouraged to say what they think about the organization.

Bank will encourage innovation and creativity amongst staff.

Bank staff members feel a sense of personal responsibility for their work.

Quality will emphasize in all aspects of the organization.

ORGANIZATION

The structure of Bank encourages effective performance.

The organization structure will flexible enough in the face of changing demands.

The complex areas of structure will be well addressed.

Bank staff has clear roles and responsibilities.

Bank organization structure tend to push problems up rather than resolve them at the point where they occur.

Bank procedures and management practices facilitate the accomplishment of tasks.

Bank constantly identify challenges in Bank organization structure.

PEOPLE

Bank staff has the necessary skills and knowledge to perform their jobs in the most effective manner.

Bank staff understands their jobs and how they contribute to overall business performance i.e. have clear goals and objectives.

Bank staff has a customer service orientation.

People with potential spotted and developed for the future.

Bank staff will encourage for performing well through the giving of recognition, feedback, etc.

Bank people know what their expected performance standards are.

SYSTEMS

Bank organizations systems (e.g. employee selection and recruitment, promotion, planning, management, information and control) will fit to encourage effective performance among Bank staff.

These systems consistent across the organization.

There are clear rewards for effective performance within Bank work group.

The Bank reviews its systems frequently and ensures they mutually support each other.

Address the critical people issues facing Bank business.

Bank has plans to address these issues.

DEVELOP CONSEQUENCES AND SOLUTIONS

For each critical issue highlight the options for managerial action generate, elaborate and create. This is an important step as frequently people jump for the known rather than challenge existing assumptions about the way things have been done in the past. Bank will think about the consequences of taking various courses of action.

Bank will consider the mix of HR systems needed to address the issues. Bank will assess the need to improve communications, training or pay whatsoever.

Once Bank has worked through the process it should then be possible to translate the action plan into broad objectives. These will need to be broken down into the specialist HR Systems areas of:

Employee Training & Development

Management Development

Organization Development

Performance Appraisal

Employee Reward

Employee Selection & Recruitment

Communication

Bank need to develop action plan around the critical issues. Set targets and dates for the accomplishment of the key objectives.

PLANNING ADEQUACY & FUTURE PLAN

The future demands will be is only influenced in part by the forecast of the HR Division, whose main task may well be to scrutinize and modify the crude predictions of other Bankers.

Thus the first step of the Bank is to take a clear and average view of the existing workforce profile such as numbers, skills, ages, flexibility, gender, experience, forecast capabilities, character, potential, etc. of existing employees and then to adjust this for one or three and ten years ahead by amendments for normal turnover, planned staff movements, retirements, etc, in line with the business plan for the corresponding time frames.

THE CHANGING FIELD OF HRM

In recent years, several business trends have had a significant impact on the broad field of HRM WHICH ARE AS FOLLOWS: INFORMATION AND COMMUNICATION TECHNOLOGY

The changes of business trends one is new technologies. These new technologies, particularly in the areas of electronic communication and information dissemination and retrieval, have dramatically altered the business landscape. Satellite communications, computers and networking systems, fax machines, and other devices have all facilitated change in the ways in which Licenses interact with each other and their workers. Telecommunication, for instance, has become a very popular option for many workers, and HRM professionals have to develop new guidelines for this emerging scenario.

CHANGES IN TRADITIONAL STRUCTURE

Changes in organizational structure have also influenced the changing face of human resource management. Many companies have scrapped or adjusted their traditional, hierarchical organizational structures in favor of flatter management structures. It is significant, that shift in responsibility brought with it a need to reassess job descriptions, appraisal systems, and other elements of HR management.

MARKET GLOBALIZATION

A third change factor has been accelerating market globalization. This phenomenon has served to increase competition for both customers and jobs. The ratter development enabled some businesses to demand higher performances from their employees while holding the line on compensation. Other factors that have changed the nature of HRM in recent years include new management and operational theories like Total Quality Management (TQM).

3.7. STAFFING

STAFFING STRATEGY

Bank recruits people at entry level and also at managerial, mid management and other expertise experience level. Entry level employees are known as Probationary Officer, Assistant Officer and others are regular Officers! Executives in different rank.

Adequately staffing is a most important issue of a Bank. Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate, overstaffing reduces the competitive efficiency of the business.

The bank will be guided in its staffing policy by the following principles:

The organizational structure of a successful Bank is built in accordance with the best industry standards

The Bank uses a unique employee selection system

The Bank is introducing interactive orientation training for new employees

The Bank uses an annual employee performance appraisal program to evaluate performance and personal achievements

The Bank supports employees personal development (staff positions /specialists management)

The Bank encourages career advancement of employees

The Bank forms a cohesive team through organizing corporate team building activities and events

WORKFORCE UTILIZATION

Bank involves the further planning of recruitment, training, retraining, labour reductions such as early retirement/redundancy or changes in workforce utilization, as will bring supply and demand into equilibrium. Bank consider the matter not just as a one-off but as a continuing workforce planning exercise the inputs. It will need constant varying to reflect actual as against predicted experience. Particularly on the supply side and changes in business actually achieved the Target forecasted on the required surface, which will consider the following matters:

Variations in the efficiency, productivity, flexibility of labour as a result of training, work study, organizational change, new motivations, etc.

Changes in employment practices

Banks Business volume forecasts

Variations, which respond to new legislation, new regulatory requirements

The effects of technological change on Banking task needs

Changes in Government policies.

3.8. EMPLOYEE CODE OF CONDUCT

NEED FOR A CODE OF CONDUCT

Employees are expected to conduct themselves in a manner which reflects credit both on the Bank and the personnel as well. Employment is at the will of the Bank. Performance, work habits, conduct, or demean (below the average level) or that fail to maintain standards applicable to an employee of the Bank will subject the employee to disciplinary action up to and including dismissal, as determined appropriate by the Service Rule.

STANDARDS OF BEHAVIOUR

It is important that individuals read and understand them in order to appreciate the general standard of conduct which is required.

If an individual takes any action which is not consistent with the standard behaviour of the Bank as defined in the Service Rule, The Management has the responsibility to act to correct the matter.

RESPONSIBILITY

All the persons referred to within the scope of this policy are required to adhere to its terms and conditions. They must understand that this policy is also incorporated into their contract of employment.

Individual managers are responsible for ensuring that this policy is applied within their own area. Any queries on the application or interpretation of this policy must be discussed with HRD prior to any action being taken.

PROFESSIONALISM

The purpose of this Manual is to inform all employees that they are to project a clean and professional personal appearance. The Bank may recognize that different applications of this policy may be necessary depending on the degree of customer contact, nature of work and loyalty issues.

PERSONAL APPEARANCE AND DRESS CODE

The Bank, as a matter of policy, does maintain a particular dress code. Employees are expected to practice good personal hygiene and use good judgment in their choice of clothing and personal grooming. Departments may specify additional reasonable requirements appropriate for their operation. HRD will inform employees of any uniform dress code that may be required of the position. In addition, a personal interest should be taken to ensure that work areas are kept neat and orderly.

Executives: Besides the Executives above Assistant Vice President & Branch In-Charges (male) should be dressed with full sleeve plain shirt, tie, suit, with matching shoe. For female executives formal official dress is applicable.

Officers: All other officers other than sub-staff should be dressed with full sleeve plain shirt, tie, with matching shoe while suit is optional. For female official formal official dress is applicable.

Sub Staff, Driver & Security Staff: All sub staff, driver and security guards have their specific dress / uniform provided by the Bank. They should maintain those while in duty.

PROFESSIONAL STANDARD

Employees should be mindful that the Bank is a service industry, everyone should maintain a good salesmanship attitude and that personal and work area appearance is a reflection on the Banks business objectives.

The need for a Banks professional standards as:

INTEGRITY To practice the profession with high levels of loyalty, integrity and fairness

LEGALITY To respect individual rights and obey all laws

PROFICIENCY To maintain and improve professional competence

PROFESSIONAL LOYALTY To support the profession and not misuse professional affiliations for personal business gains

CONFIDENTIALITY To respect the confidentiality of privileged information

CONFIDENTIAL BUSINESS INFORMATION

All confidential affairs of BANK are to remain strictly confidential. Confidential information includes:

matters of a technical nature, such as strategies and policy matter; matters of a business nature, such a information about Asset, Deposit, Profit/Loss, lists of clients; plans for future development; and all other information and documents not readily available to the public. Banks financial and personnel matters are also confidential.

Any official will not to disclose any confidential information to anyone outside of BANK, nor use and confidential information for any ones own personal gain during or after his employment without the express written consent of Bank. Breach of confidentiality is an extremely serious matter; it may result in immediate discharge and could result in legal action.

CLIENT INFORMATION

Maintaining the confidentiality of all information pertaining to Bank clients and their families is of critical importance. Clients provide Bank with highly personal information which must not be shared. For many, even the fact that they are participating in a Bank program or benefiting from Bank services is extremely sensitive information. To maintain relationship with Bank, client often provide information regarding the financial facts and figures.

The obligation of confidentiality applies both during and after employment, unless any one has specific, proper authorization in advance. All employees must follow Banks confidentiality policies concerning information about organization, clients and even about other staff members.

MEDIA CONTACTS

All media related functions shall be done by Public Relation Deptt., (PRD) which is directly controlled by the Managing Director. Besides, Information Technology Division shall maintain Banks Website provide information online as terms of reference defined by top Management and ensure compliance the regulatory guidelines of public disclosures.

However all employees are involved, to some extent, in promoting good public and client relations. However, it is important that information given for the purpose of public disclosure constraint shall be accurate and reflects the official position of Bank on any subject. Also, the privacy of Bank information must be preserved. Moreover, if the inquiry is in response to an unfortunate event, the release of information could have a negative impact should always keep in mind by all concerned.

Accordingly, if any one are contacted, approached, or asked to make a statement by any media or public relations representative, all are must respectfully decline and refer them directly to the Head Office without further comment. No employee may release any information, including casual comments or opinions, on or off the record, without obtain authorization from the Head Office.

USE OF BANK PROPERTY AND RESOURCES

The equipment, vehicles and computer systems used by employees represents a major investment by the Bank. It is important that each employee exercise due care and common sense when using such equipment. If any one has any questions regarding the proper use of any equipment, he /she may ask his /her supervisor.

USE OF INFORMATION TECHNOLOGY RESOURCES

Documents, data and other material stored on any computer drive are also Bank property. Sending such materials outside of Bank electronically or taking them off Bank premises on disks without authorization is strictly prohibited.

USE OF OTHER RESOURCES

Desks, file cabinets, and other hardwires are provided solely for the work efficiency of the employee which are also Bank property. Employees may also be given access to certain systems using codes or passwords, such as e-mail and/or computers. Employees may be given individual access codes for the purpose of controlling authorized access to such systems; such codes are not meant to imply any privacy in the employees use.

3.9. SEGRIGATION OF DUTIES & AUTHORITY DISTRIBUTION

An effective organizational culture requires that there is appropriate segregation of duties and those personnel are not assigned conflicting responsibilities. Areas of potential conflicts of interest should be identified, minimized, and subject to careful, independent monitoring.

SEGREGATION OF DUTIES

Duties and responsibilities should be specified explicitly. All officials are assigned his I her job in documented form, so that personnel can perform his / her duties with high integrity and efficiently.

These should include:

Top level supervision;

Appropriate activity controls for different departments or divisions;

Physical controls;

Checking for compliance with exposure and teller limits and follow-up on non-compliance;

A system of approvals and authorizations;

A system of verification and reconciliation.

JOB DESCRIPTION & DUTY ALLOCATION

Although, in the Service Rule a detailed particulars are given in the section Assignment of Duty, The job description should contain:

A factual summary of the job

The purpose of the job and its main duties

The date the job description was updated

A description of the key responsibilities and tasks involved in the role.

JOB ROTATION

Job rotation is an approach to management development where an individual is moved through a schedule of assignments designed to give him / her extent of exposure to the entire operation.

Job rotation is also practiced to allow qualified employees to gain more insights into the processes of an organ