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SUMMER TRAINING REPORT On STANDARD CHARTERED BANK

Comparative analysis of Standard chartered bank services and insurance productswith other MNC banks

Submitted in partial fulfillment of the requirements of Post Graduate Programmeby Anurag Jindal Batch PGP 2008-10 Roll No. PG 20082326

IILM Institute for Higher Education Gurgaon


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AcknowledgementI would like to express my deep sense of gratitude to Standard Charted Bank Management specially Mr. Dashrath Renwan( Area Sales Manager) who gave me this opportunity to work with this prestigious organization as a summer trainee. It has been pleasant and immensely valuable learning experience for me. This project would not have started and much less completed without the encouragement and supportof IILM institute for Higher Educations faculties and Staff for their continuousguidance. Special thanks to Prof. Sanjeev Sharma, without whose valuable insights the project would not have seen daylight. He was the faculty guide during myentire training period and during the making of this project. I also express mygratitude to my friends, colleagues and various other people who have been key to my project and without whose valuable insights the all the project wouldnt havebeen completed. The comments and suggestions by all the people mentioned abovehas helped me a lot to track through my project objective.

Regards Anurag Jindal


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PrefaceIn modern world of comfort, consumers no longer select their banks based on howconvenient the location of banks branches is to their homes or offices, with theadvent of new technologies in the business of banking, such as internet banking,phone banking, ATM etc., now customers can freely choose any bank for their transactions. The pressure of competitive and dynamic markets has contributed to the provision of these services. A booming financial market holds the interest ofmost of the Indians today. The banks are no longer the means of saving money andtaking loans but they have turned in to one stop for any financial need faced by a common man. Be it Home Loan, mutual Funds, Life Insurance, general insurance, NRI deposits, and micro finance etc, today a single bank covers everything. Standard Chartered Bank is the biggest and one of the most competitive MNC banks operating in India. One of the prime activities on which SCB capitalized in Retail Banking that have gained momentum with the growing income of the Indian Population specifically the High Net worth Individuals and People of the upper middleclass. Mass affluent customers are mobile, sophisticated, and extremely busy. Assuch, they demand financial advisors flexibly and easily, and they put a premiumon privacy. As one of several key findings of a Booz Allen Hamilton study of retail banking best practices across all channels to adapt to the preferences of this small but increasingly influential segment. For Banks seeking to enhance their performance, developing offerings to attract mass affluent customers may be the key to raising their profile and reducing their cost-to-income rations. There

is still room for them to jump in, but each institution must weight the economics of such a move and determine whether there is demand for such service in itsmarket. For example, the higher assets and average balances of this segment justify the study has noted that mass affluent customers are roughly 30 times more profitable than those of the mass market, and the global mass affluent segment isexpected to grow by 35 percent between 2005 and 2010. The Standard Chartered Bank offers a wide array of product and services to its individuals and corporatecustomer base. It has a large base of products and services like personal banking (saving account, current account, Term Deposit, corporate salary account, 2- in one account, Dmat account etc.) Small and Medium Enterprises, Banking and commercial Banking. This project deals with finding the level of competition betweenthe MNC banks and analyzing the feasibility of services and insurance productsoffered by Standard Chartered. A survey was conducted which included 100 respond

ents and conclusions were drawn from the survey undertaken.


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Table of ContentAcknowledgement 2


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1. Preface 2. Industry study

3 7 7 8 12 12 13 14 15 16 18 22 22 22 22 24 25 26 26 29 32

History History of Banking in India3. Organization Structure

Board Governance structure Company History Ownership patterns Mergers & Acquisitions Divisions & Departments People Our highlights and achievements in 2008 Ourpriorities in 2009 Positioning for the future Consolidated Balance sheet Consolidated Profit & loss Account

4. Financial profile

5. Products & Services

Saving accounts Current accounts Insurance & investment plans


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6. Competitors

38 Citi Bank 38 HSBC Bank 38 American Express 40 ABN AMRO 40 Deutsche Bank 41 Comparative analysis of standard chartered products with other multinational banks41 45 47 49 50 51 52 52 70 92 96

Operations Application of Chi-square 7. Introduction 8. Objectives 9. Methodology 10. Findings & Analysis Questionnaire on Banks Questionnaire on Insurance Companies 11. Conclusion & Recommendation 12. References


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Industry studyHistoryThe first banks were probably the religious temples of the ancient world, and were probably established sometime during the third millennium B.C. Banks probablypredated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually preciousmetals such as gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attendedand well built. As sacred places, temples presented an extra deterrent to would-be thieves. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests/monks to merchants. By the time of Hammurabis Code, banking was well enough developed to justify the promulgation of laws governing banking operations.


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Ancient Greece holds further evidence of banking. Greek temples, as well as private and civic entities, conducted financial transactions such as loans, deposits, currency exchange, and validation of coinage. There is evidence too of credit,whereby in return for a payment from a client, a moneylender in one Greek portwould write a credit note for the client who could "cash" the note in another city, saving the client the danger of carting coinage with him on his journey. Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of the 5th century B.C., is the first individual banker of whom we have records.Many of the early bankers in Greek city-states were metics or foreign residents. Around 371 B.C., Pasion, a slave, became the wealthiest and most famous Greek banker, gaining his freedom and Athenian citizenship in the process. The fourth century B.C. saw increased use of credit-based banking in the Mediterranean world.In Egypt, from early times, grain had been used as a form of money in addition to precious metals, and state granaries functioned as banks. When Egypt fell under the rule of a Greek dynasty, the Ptolemies (332-30 B.C.), the numerous scattered government granaries were transformed into a network of grain banks, centralized in Alexandria where the main accounts from all the state granary banks wererecorded. This banking network functioned as a trade credit system in which payments were effected by transfer from one account to another without money passing.. In the 1970s, a number of smaller crashes tied to the policies put in place following the depression, resulted in deregulation and privatization of government-owned enterprises in the 1980s, indicating that governments of industrial coun

tries around the world found private-sector solutions to problems of economic growth and development preferable to state-operated, semisocialist programs. Thisspurred a trend that was already prevalent in the business sector, large companies becoming global and dealing with customers, suppliers, manufacturing, and information centres all over the world. Global banking and capital market servicesproliferated during the 1980s and 1990s as a result of a great increase in demand from companies, governments, and financial institutions, but also because financial market conditions were buoyant and, on the whole, bullish. Interest ratesin the United States declined from about 15% for two-year U.S. Treasury notes toabout 5% during the 20-year period, and financial assets grew then at a rate approximately twice the rate of the world economy. Such growth rate would have been lower, in the last twenty years, were it not for the profound effects of the internationalization of financial markets especially U.S. Foreign investments, pa

rticularly from Japan, who not only provided the funds to corporations in the U.S., but also helped finance the federal government; thus, transforming the U.S.stock market by far into the largest in the world. Nevertheless, in recent years, the dominance of U.S. financial markets has been disappearing and there has been an increasing interest in foreign stocks. The extraordinary growth of foreign


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financial markets results from both large increases in the pool of savings in foreign countries, such as Japan, and, especially, the deregulation of foreign financial markets, which has enabled them to expand their activities. Thus, American corporations and banks have started seeking investment opportunities abroad, prompting the development in the U.S. of mutual funds specializing in trading inforeign stock markets. Such growing internationalization and opportunity in financial services has entirely changed the competitive landscape, as now many bankshave demonstrated a preference for the universal banking model so prevalent in Europe. Universal banks are free to engage in all forms of financial services, make investments in client companies, and function as much as possible as a one-stopsupplier of both retail and wholesale financial services.

History of Indian Banking IndustryHistory of banking in India is being divided into three phases:

Pre-Nationalization (Phase1)The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called itPresidency Banks. These three banks were amalgamated in 1920 and Imperial Bankof India was established which started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, theGovernment of India came up with The Banking Companies Act, 1949 which was laterchanged to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.


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During those days public has lesser confidence in the banks. As an aftermath deposit mobilisation was slow. Abreast of it the savings bank facility provided bythe Postal department was comparatively safer. Moreover, funds were largely given to traders.

Post-Nationalization (Phase II)Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas. It formed StateBank of india to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in thecountry was nationalised. Second phase of nationalisation Indian Banking SectorReform was carried out in 1980 with seven more banks. This step brought 80% ofthe banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:

1949 : Enactment of Banking Regulation Act. 1955 : Nationalisation of State Bank

of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 1969 : Nationalisation of 14 major banks. 1971 : Creation ofcredit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank Indiarose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faithand immense confidence about the sustainability of these institutions.

Liberalization (Phase III)


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This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has showna great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure..

Current SituationCurrently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets andcapital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With

the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retailbanking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank ofIndia allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed tohold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 28 publicsector banks (that is with the Government of India holding a stake), 29 privatebanks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rati

ng agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. As seen in the private sector much of the job cuts due to global slowdown, its the public sector undertaking (PSU) banks which gained much confidence due to job safety and security. More and more people are likely to turn towards government institutions, particularly banks in the quest for safety and security.Similar is the case with Standard Chartered Bank.


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Organization structure


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Company historyHistoryStandard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods between Europe, Asia and Africa. The Chartered Bank Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.

Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in1858, followed by Hong Kong and Singapore in 1859.


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Traditional trade was in cotton from Mumbai (Bombay), indigo and tea from Kolkata, rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila andsilk from Yokohama.

Played a major role in the development of trade with the East which followed theopening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871.

In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank s Cyprus Branches. This established a presence in the Gulf.

The Standard Bank Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, in January 1863.

Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.

Expanded in Southern, Central and Eastern Africa and, by 1953, had 600 offices.

In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone. From the early 1990s, StandardChartered has focused on developing its strong franchises in Asia, Africa and the Middle East. It has concentrated on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise. Since 2000 the Bank has achieved several milestones with a number of strategic alliances and acquisitions, which have extendedthe customer and geographic reach and broadened the product range that StandardChartered offers

Ownership patternsOur approachWe have operated for over 150 years in some of the worlds most dynamic markets, leading the way in Asia, Africa and the Middle East


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Our businessStandard Chartered PLC, listed on both the London and Hong Kong stock exchanges,ranks among the top 25 companies in the FTSE 100 by market capitalisation. TheBank has grown substantially in recent years, primarily as a result of organic growth, supplemented by acquisitions. Standard Chartered aspires to be the best international bank for its customers. The Bank derives more than 90 per cent of its operating income and profits from Asia, Africa and the Middle East, generatedfrom its Wholesale and Consumer Banking businesses. The Group has over 1,600 branches and outlets located in over 70 countries.

Our principlesLeading by example to be the right partner for its stakeholders, the Group is committed to building a sustainable business over the long term that is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. It employs over 70,000 people, nearly half of whom are women. The Groups employees are of 125 nationalities, of which 68 are represented among senior management.

Our business strategy Standard Chartered aims to be the worlds best international bank, providing Consumer and Wholesale Banking services in Asia, Africa and the Middle East We are very focused on the basics of banking: on liquidity, capital, risk management, ope

rational control and costs We do business in markets we understand intimately, with customers with whom we have longstanding relationships, selling products weunderstand fully We strive to be true to our values and culture, running the Group as one bank across geographies and businesses We are committed to building asustainable business, through our strategy, business models, products and involvement in our communities

Our priorities in 2009 Stick to our focused, clear and consistent strategy to lead the way in Asia, Africa and the Middle East Reinforce balance sheet strength and liquidity in the business and keep our focus on the basics of banking As we implement our strategywe will need to anticipate and respond to the extraordinary changes around us Weaim to make use of the emerging opportunities to deepen our relationship with c

ustomers, build market share and improve margins Our strategy must take into account the fundamental task of re-establishing confidence and trust in banks and the need to build a sustainable business

Mergers and AcquisitionsDate Location What has Done


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May 2008 Jan 2008 Oct 2007 Sep 2007 Sep 2007 Sep 2007 Aug 2007 End 2006 Sep 2006Sep 2006 Jun 2006 Dec 2005 Sep 2005 Aug 2005 Jun 2005 Apr 2005 Jan 2005 Dec 2004 Nov 2004 Sep 2000

Vietnam South Korea South Korea Global Global Global India Taiwan Pakistan Indonesia

Standard Chartered announces raising strategic stake in Vietnam s Asia Commercial Bank to 15% Standard Chartered to acquire South Korea s Yeahreum Mutual Savings Bank Standard Chartered First Bank Korea Ltd to acquire 80% stake in South Korea s A Brain, a funds administration company Signs agreement to buy American Express Bank, a wholly owned subsidiary of American Express Company, with operations in 47 countries Standard Chartered to acquire Pembroke, an aircraft leasing, financing and management firm Standard Chartered to acquire Harrison Lovegrove, aleading global oil and gas M&A advisory boutique Standard Chartered announces acquisition of 49% strategic stake in India s UTI Securities, a leading local broking firm. Launched tender offer for 100% in Hsinchu International Bank (USD1.2bn) Acquisition of 95.37% Union Bank (USD487m) Acquisition of 26% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk(USD193m). Total stake held in PermataBank by consortium today is 89%. Acquisition of 25% in First Africa Group Holdings Ltd Acquisition of 20% stake in FlemingFamily & Partners (USD78m) Acquisition of 19.99% of China Bohai Bank (USD123m)

Acquisition of Amex Bank s Bangladesh business (USD25m) Acquisition of 8.56% stake in Asia Commercial Bank (USD22m) Acquisition of a minority stake (6%) in Travelex as part of Apax led consortium Acquisition of Korea First Bank (USD3.3bn) Acquisition of ANZ s Project Finance business with assets (USD15m) Acquisition of63% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD355m) Acquisition of Chase Manhattan Card Company (USD1.32bn)

Africa N/A China Bangladesh Vietnam Global South Korea Global Indonesia Hong Kong


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Jul 2000 Jun 2004

Global Hong Kong

Acquisition of ANZ Grindlays (USD1.34bn) Acquisition of PrimeCredit

Divisions and DepartmentsThe whole working of Standard Chartered is being divided into four parts:

Personal Banking Private Banking SME Banking Wholesale Banking Personal BankingThis type of banking by Standard Chartered Bank covers the following: Accounts:Standard Chartered offers the Term deposits, depository services, corporate salary account and variety of Current accounts and Saving accounts. Credit Cards: Standard Chartered offers the various cards like: Emirates platinum card, PlatinumCard, Emirates Titanium Card, Super Value Titanium Card, Gold Card, EMI Card, Executive Card, Classic Card, Business Gold Card, Gold Rewards Card, Plus Extended Protection Plan, Your Rewards Plus Program, Special offers, Register for Verified by Visa, Register for MasterCard Secure Code, FAQs for VBV/MasterCard SecureCode

Debit and prepaid cards: Shop Smart Card, Platinum Debit Card, Plus Extended Protection Plan, Smart Travel card. Loans and mortgages: home loans, loans against

securities, home saver, loan against term deposit, loan against property. NRI banking: NRE Account, NRO Savings Account, FCNR Account,


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Exclusive Banking: Excel banking, Priority banking. Insurance and Investments: General insurance, life insurance and investment services.

Private BankingThis type of banking includes various aspects as: Managing your wealth, Investorslounge, learning centre, concierge and online services.

SME BankingSME Banking offers one of the widest range of banking products and services in the market today. Managing a growing business demands most of your time and energy. Our relationship managers understand your business requirement and help you manage your business better. This offers the following: Business Current Accounts: International trade Account, Business Essential account. Loans: Business installment loan, Loan/overdraft against property, Term loan. Trade and working capital products: Trade and working capital, Express trade. Forex services and others: Forex services, online payment, credit grading methodology, service charges and fees.

Wholesale BankingThis aspect offers the variety of services which helps in saving the and providing the convenience to the customers.

PeopleOur highlights and achievements in 2008 Successful integration and harmonization of the American Express Bank acquisition across 47 markets, 19 of which are new markets to the Groups footprint


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Strengthened our leadership capability through the Great Managers and LeadershipDevelopment programmes which covered 4,000 and 1,500 managers, respectively Launched a refresh of the Groups values and behaviors

Our priorities in 2009 Continue to drive performance through productivity and engagement Continue to recruit and develop strong and diverse leaders Further embed the Groups values to maintain our distinctive and unique culture Maintain sharp focus on recognizing and rewarding the appropriate behaviors for sustainable business performance In the current economic environment, it is more important than ever to focus on our people. The diversity of our employees provides us with our unique source of strength. We place particular importance on continuously improving the way we work and living the Groups values to embed our company culture. By focusing on buildinggreat leaders and engaging our employees, we continue to drive performance. Global representation of female Employees 46% Percentage of employees who receivedtraining 90%

Our people, our valuesWith 125 nationalities represented among over 70,000 employees, nearly half of whom are women, we have an international diverse workforce. We believe this enables us to better serve our customers and maintain competitive advantage.

Diversity and InclusionWith 125 nationalities represented among over 70,000 employees, our diversity provides us with innovative ideas and in-depth local knowledge, enabling us to better serve our customers and maintain our competitive advantage. Supporting employees to meet their obligations outside of work is key to attracting and retaining this diverse talent. In 2008 we continued to roll out a flexible working policy in five new markets, taking the total to nine. We have piloted working from home across three functions in three markets. Over 180 employees from our Global Shared Service Centre in Chennai have enrolled in the Working Home initiative, contributing to a more healthy work-life balance. We have also expanded the coverage of paternity policies to the US, Australia, Lebanon and Bangladesh and openeda number of day care centres in India and a crche in Sri Lanka. 2008 was a yearof focusing on the key, unique elements that make the Group successful. By creat

ing an engaging environment where our people and our culture can flourish, we enter 2009 with clear targets for the year ahead.


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Our board of directorsOur leaders reflect the diversity that drives Standard Chartered s success and makes us one of the world s most international banks.

Meet the board Acting Chairman

John Peace

Executive Directors

Peter SandsGroup Finance Director

Richard MeddingsGroup Chief Executive

Steve BertaminiGroup Executive Director, Consumer Banking

Gareth BullockGroup Executive Director, Africa, Middle East, Europe and the Americas

Non-Executive Directors


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Jamie DundasNon-Executive Director

Val GoodingNon-Executive Director

Rudy MarkhamNon-Executive Director

Ruth MarklandNon-Executive Director

Sunil MittalNon-Executive Director

John PaynterNon-Executive Director

Paul SkinnerNon-Executive Director

Oliver Stocken

Non-Executive Director

Our global teamOur employees have more than doubled in number over the past five years. Nearlyhalf the number of employees are women and 68 nationalities are reoresented among our senior management, reflecting the Bank s policy towards providing equal opportunity for all. We are committed to creating an engaging, inclusive work environment, where people can make a difference, as individuals and as part of a team. The Bank places great emphasis on continuous improvement to increase productivity, enhance customer service and reduce administrative tasks, so that employees can spend more time in rewarding activities that add value to the Group.


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Financial ProfileWe have delivered a solid operating performance in 2008 built on a liquid, diversified, de-risked balance sheet. We enter 2009 cautious but prepared both for thechallenges and opportunities that will come.Richard Meddings, Group finance director

Our highlights and achievements in 2008 Strong operating profit delivered against a backdrop of unprecedented economic turmoil We exited 2008 with a liquid, diversified balance sheet and remain open for business to our customers The geographic spread of our business and incomestreams helped insulate the Group from the worst of the economic events in 2008 A conservative approach to risk management has limited the impact of the sub-primecrisis on the Group We took advantage of our strength to add businesses and talent, wherever appropriate We continued with the integration of our investments inKorea, Taiwan, Pakistan and, on a global basis, American Express Bank (AEB) Wefurther strengthened our capital position with a rights issue in December 2008


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Our priorities in 2009 We expect 2009 to be a year of continued economic turbulence with global recessionary conditions. Against this backdrop we believe the maintenance of a liquid,conservative and well diversified balance sheet is the best way to sustain the Group and serve our customers. We will pace investments and discretionary expenditure through the year Wholesale Banking will continue with disciplined executionof the existing client-focused strategy with effective management of capital, liquidity and risk Consumer Banking will continue to undergo significant repositioning, diversifying income streams and accelerating the transition to an increasingly customer-centric model

Positioning for the futureDelivering strong results during a time of unprecedented turbulence. Continued focus on the fundamentals of banking will assure the future for our customers andour business.

Financial review


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Normalised earnings per shareThis KPI is calculated as profit attributable to ordinary shareholders of the Group as normalised for certain one-off or irregular items, divided by the weighted average of the number of shares in issue during the year.

Operating income

Tier 1 capital ratio

Normalised return on shareholders equityNormalised return on shareholders equity is calculated as the normalised profit attributable to ordinary shareholders as a percentage of average shareholders equity.

Operating income is calculated as the sum of the net interest income, net commission income, net trading income, and other operating income.

Tier 1 capital, the components of which are summarised on page 65, is measured by the ratio of Tier 1 capital to risk weighted assets.

Normalised earnings per share* 174.9cents

Operating income $13,968m

Tier 1 capital ratio** 10.1%

Normalised return on shareholders equity 15.2%

AimTo consistently deliver yearon-year growth in normalised earnings per share.

Aim AimTo sustain organic momentum To maintain Tier 1 capital ratio between seven and nine per cent

AimTo deliver superior returns on shareholders equity compared to the industry average.

AnalysisDuring 2008, normalised earnings per share grew one per cent, with strong growthin Wholesale Banking offset by a slowdown in Consumer Banking.

AnalysisDuring 2008, operating income grew 26 per cent, with seven of nine geographic segments each delivering over $1 billion of income.

Analysis

During 2008, the Group maintained a Tier 1 capital ratio of 10.1 per cent on a Basel II basis, an increase of 1.3 percentage points compared with 2007 (0.3 percentage points on a Basel I basis), comfortably above our stated target

AnalysisDuring 2008, the normalised return on shareholders equity declined against 2007 as normalized earnings, with growth of three percent, was affected by the slowingperformance in the second half of the year, whilst average equity grew Six percent.


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SourceHas been calculated from the consolidated balance sheet.

Source SourceHas been calculated from the consolidated balance sheet. Has been calculated from the consolidated balance sheet.

SourceHas been calculated from the consolidated balance sheet.


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Standard Chartered had another year of strong financial performance in 2008. Theperformance was particularly pleasing as it came in a year of global financialupheaval. The Group has not escaped unscathed from the biggest financial crisisof our times, but a firm grip on the basic foundations of banking liquidity, capital, risk and cost management enabled it to escape the worst of the turmoil andstand out in the global financial landscape. Last years performance can be summed up by the following achievements:

Standard Chartered PLC Consolidated balance sheet As at 31 December, 2008Assets Cash and balances at central banks Financial assets held at fair value through profit or loss Derivative financial instruments Loans and advances to banks Loans and advances to customers 154,266 Investment securities Interests in associates Goodwill and intangible assets Property, plant and equipment Current taxassets Deferred tax assets Other assets Prepayments and accrued income Total assets Liabilities Deposits by banks Customer accounts Financial liabilities heldat fair value through profit or loss Derivative financial instruments Debt securities in issue Current tax liabilities Deferred tax liabilities Other liabilities Accruals and deferred income Provisions for liabilities and charges Retirementbenefit obligations Subordinated liabilities and other borrowed funds Total liabilities 308,419 Equity Share capital Reserves Total parent company shareholdersequity Minority interests Total equity 22,695 2008 $ Million 24,161 15,425 69,657 46,583 69,342 511 6,361 3,586 764 660 20,374 3,466 435,068 593 11,011 3,857 32

9,871 26,204 35,365 174,178 55,274 269 6,374 2,892 633 2007 $ Million 10,175 22,958

31,909 234,008 15,478 67,775 23,447 512 176 17,363 4,132 140 447 16,986

25,880 179,760 14,250 26,270 27,137 818 33 14,742 3,429 38 322 15,740

412,373

948 21,192 22,140 555

705 20,146 20,851 601 21,452


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Total equity and liabilities

435,068

329,871

Standard Chartered PLC Consolidated Profit and loss Account For the year ended 31December, 20082008 $ Million Interest income Interest expense (9,911) Net interest income Feesand commission income Fees and commission expense Net trading income Other operating income Total non-interest income Operating income Staff costs Premises costs General administrative expenses Depreciation and amortisation Operating expenses Operating profit before impairment losses and taxation Impairment losses onloans and advances and other credit$ risk provisions Other impairment Profit from associates Operating profit Rights issue option Profit before taxation Taxation Profit for the year Profit attributable to: Minority interests Parent companyshareholders Profit for the year Earnings per share: Basic earnings per ordinaryshare (cents) Diluted earnings per ordinary share (cents) Dividends per ordinary share : Interim dividend paid (cents) Final proposed dividend* (cents) Total dividend: Interim dividend paid ($ million) Final proposed dividend* ($ million) 16,378 (8,991) 7,387 3,420 (479) 2,405 1,235 6,581 13,968 (4,737) (738) (1,711) (425) (7,611) 6,357 (1,321) (469) 1 4,568 233 4,801 (1,290) 3,511 103 3,408 3,511

202.4 201.3 19.30 42.32 61.62 364 801 1,165 1,117 17.38 42.27 59.65 324 793 2,841 2,989 176.0 174.2 4,035 (1,046) 2,989 148 1 4,035 11,067 (3,949) (592) (1,329) (345) (6,215) 4,852 (761) (57) 6,265 3,189 (528) 1,261 880 4,802 2007 $ Million 16,176


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Products and servicesSavings accountsaXcessPlus AccountStandard Chartered Bank s aXcessPlus is a revolutionary savings account that provides you with unstinted aXcess to your money. Special Features Exclusive benefits of an aXcessPlus savings account:

FREE Unlimited Visa ATM transactions (Cash withdrawal) FREE Standard Chartered Bank branch access across the country FREE Doorstep Banking FREE Demand Drafts/Pay Orders (drawn at SCB locations) FREE Payable at Par Chequebook

Additional Features Get instant cash at over 20,000 ATMs across India and over 10,00,000 ATMs across the world through the Visa network. And get a globally valid Debit Card that lets you shop at over 3,26,000 outlets in India and at over 14million outlets across the world. And thats not all, with the aXcessPlus accountyou also get:

International Debit Card Phone Banking Online Banking Extended Banking Hours

SuperValue Account

The unique SuperValue savings account from Standard Chartered is proof that thebest things in life come free. With an average quarterly balance of just Rs. 50,000, you get a host of services from Standard Chartered absolutely free.


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Special Features Exclusive benefits of a SuperValue Account:

Free globally valid Debit-cum-ATM card Free Access to at over 20,000 Visa ATMs in India Free Doorstep Banking Free Payable at Par cheque book/ account statements / DDs Free Inter Bank Funds Transfer Free Foreign Inward Remittance Certificates

Additional Features With the SuperValue Account you also get:

Multicity Banking - access your account even when you are out of town Enjoy extended Banking hours at all our branches, and Speed Cheque Clearing and Metro Clearing facilities 24-hour branches, 365 day branches available at select locationsPhone banking - available to you 365 days a year on a 24-hour basis in the metros and everyday of the week at other centers Online banking - access and transact on your accounts through the Internet from any part of the world Free Investment Advisory Services to assist you in investing in a range of mutual funds Fullsuite of complimentary banking services including credit cards, loan products and capital market services

Parivaar Account

Parivaar is a unique Wealth Management Solution from Standard Chartered Bank that offers your family flexibility, convenience and essential tools for wealth accumulation and preservation. Special Features Parivaar is much more than a regular Savings Account. It allows you maintain your individual identity while allowing you to tap your family s financial strength. Here are some of the features ofthe Parivaar savings account:

Your family can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts. Anytime, anywhere access to accounts through ATMs, Phone Banking and Online Banking.


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Globally valid ATM-cum-debit card can be used at 3,26,000 merchant outlets in India and 14 million outlets worldwide.

No Frills AccountIf you want banking made easy, we give simple solutions. The Standard CharteredBank No Frills Account is designed to meet your basic banking requirements. Youneed to maintain an average quarterly balance of just Rs. 250 with this account.Whats more you can avail of Anywhere Banking, by which you can access your account from any branch of Standard Chartered Bank in India. Special Features Here are some of the unique features available on No Frills Account:

Low Average Quarterly Balance of Rs. 250 ATM card & Debit Card available 4 freetransactions per month at any Standard Chartered Bank channel (Online Banking, Phone Banking, ATM & Branch) Anywhere banking Access your account from any branchof Standard Chartered Bank Access to Phone Banking and Online Banking Free Cheque deposit at any SCB Branch or ATM

Eligibility Criteria This account is available to individual Resident Indian customers. The Standard Chartered Bank No Frills account can be opened after being

properly introduced in a manner approved by the Bank.

aaSaan AccountIntroducing the Standard Chartered Bank s aaSaan savings account. It is no maintenance, hassle free and easy solution to all your banking needs. Special Features Exclusive benefits of an aaSaan savings account:

No Minimum Balance requirement Free unlimited access to any SCB branch across the country for Customer-in-person


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Unlimited Free access to Standard Chartered Bank ATM s Up to 4 free cash withdrawal transactions per month at other domestic VISA ATMs* Nominal quarterly fee ofRs. 100 (reversed if the Average Balance in the quarter is Rs. 10,000 or more)Complete control over your banking requirements: o International Debit Card o Phone Banking o Online Banking o Extended banking hours* o Locker facility* o Doorstep Banking

2 in 1 AccountIntroducing a unique account that offers you a double advantage it lets you earnthe high interest rate of a fixed deposit while you enjoy the flexibility of asavings or current account. Special Features Exclusive benefits of a 2 in 1 account: Effective 28th March 2009, the 2 in 1 limit on the operative account has been enhanced from the current 75% to 95% of the linked Term Deposit value

Earn fixed deposit interest rates Enjoy the flexibility of a Savings or a Current Account Get a free personalized cheque book and Debit/ATM card Withdraw moneywhenever you need it Deposit more money in your account to earn a higher rate ofinterest by placing subsequent deposits Get account related information at yourfingertips with Phone Banking

Current AccountsBusiness Plus AccountStandard Chartered Bank presents the Business Plus Account. A current account that helps you get more out of your business. Special Features


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At Standard Chartered, we ensure that your banking is most economical with our Business Plus Account so that you may reinvest the money saved in your business.Take a look at the unique benefits of having a Business Plus Account:

FREE Drafts on our branch locations As a Business Plus customer, you can now avail of drafts & pay orders payable at any of our branches up to 75 a quarter. FREE Payable at par cheques You can issue cheques payable at par at any of our branch locations, free of cost. FREE National Electronic Fund Transfers Now, transfer funds seamlessly to accounts in over 63 banks and 26000 branches across India.The funds can be transferred within 24 hours*. FREE Anywhere banking facility You can conduct your banking transactions from any of our branches spread acrossthe country, irrespective of the branch where your account was opened.

Additional features Whatever your banking requirements our Business Plus Accountwill give you a mix of value and transactional convenience that is unsurpassed.We also recognize that your time is precious. Thus, we provide a host of services that will help you save the time spent on banking.

Get your funds faster without any additional cost Cheques drawn on any bank at our branch locations are cleared in just 7 days, Moreover, this service is available to you free of charge. Drafts on correspondent bank locations You now have an opportunity to avail of drafts on over 470 locations, at most competitive rates Quick transfer You can transfer funds between your accounts with our bank almost instantaneously and free! Doorstep Banking You can request for cash pick-up and delivery, cheque pick-up, draft/PO delivery, to/from your home or office. Jus

t call / fax us your request. FREE Internet Banking Access your account any timeof the day from anywhere in the world through our Secured Internet Banking facility. And do routine banking transactions online. FREE Phone Banking Access youraccount from the comfort of your home / office. You can get account information, request for drafts, give stop cheque instructions, transfer funds and do muchmore with just one phone call any time of the day. Debit Card with aXcessPlus benefits You can now get FREE* access (4 free transactions per month) to your money through over 20000 VISA ATMs spread across the country. You ll also get all the special privileges and offers, made available to our

Eligibility Eligibility criteria for a Business Plus Account:

The Business Plus Account is only available to the following: o Resident Indians


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Individuals / Sole Proprietorships / Partnerships / Associations / CompaniesPrivate & Public Ltd. / Societies / Trusts / HUFs This account can be opened Singlyor Jointly and requires an initial deposit of Rs.50,000. The minimum average quarterly balance requirement for your Business Plus Account is Rs.50, 000.o

Enhanced Business Plus AccountYou run your business efficiently, and effectively. That s why you need a current account that does the same. The Enhanced Business Plus Account from Standard Chartered is designed to make better business sense and make your money work mosteffectively. It s all you have ever wanted from a current account and more. Every business has different needs and complexities. That s why the Enhanced Business Plus Account has been developed to suit your business needs. Special FeaturesWhatever the nature of your business, controlling costs is always a top priority. Enhanced Business Plus Account offers a range of unmatched opportunities foryou to save money, which you can reinvest into your business.

FREE Drafts on our branch locations As a Business Plus customer, you can now avail of drafts & pay orders payable at any of our branches up to 75 a quarter. FREE Drafts on correspondent bank locations You now have an opportunity to avail offree drafts drawn on over 470 locations, up to a limit of Rs. 75 lakhs per month*. FREE Payable at par cheques You can issue cheques payable at par at any of our branch locations, free of cost. FREE National Electronic Fund Transfers Now,transfer funds seamlessly to accounts in over 63 banks and 26000 branches acrossIndia. The funds can be transferred within 24 hours*. FREE Doorstep Banking Youcan request for cash pick-up and delivery, cheque pickup, draft/PO delivery, to/from your home or office. Just call / fax us your request.

Additional features Whatever your banking requirements our Enhanced Business Plus Account gives you a better mix of value and transactional convenience. We also

recognize that your time is precious. Thus, we provide a host of services thatwill help you save the time spent on banking.

Get your funds faster without any additional cost Cheques drawn on any bank at our branch locations are cleared in just 7 days, Moreover, this service is available to you free of charge.


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Quick transfer You can transfer funds between your accounts with our bank almostinstantaneously and free FREE Internet Banking Access your account any time ofthe day from anywhere in the world through our Secured Internet Banking facility. And do routine banking transactions online. FREE Phone Banking Access your account from the comfort of your home / office. You can get account information, request for drafts, give stop cheque instructions, transfer funds and do much morewith just one phone call any time of the day. FREE Anywhere banking facility Conduct your banking transactions from any of our branches spread across the country, irrespective of the branch where your account was opened. Debit Card with aXcessPlus benefits You can now get FREE* access (4 free transactions per month) to your money through over 20000 VISA ATMs spread across the country. You ll alsoget all the special privileges and offers, made available to our Debit Card customers.

We also believe you deserve a choice, that s why we give you the option of choosing the average quarterly balance you would like to maintain with the bank. Depending on the balance, you can avail of a wide range of services that this account offers. Option Enhanced Business Plus 100 Enhanced Business Plus1000 Eligibility Eligibility criteria for a Enhanced Business Plus Account:

Average Quarterly Balance Rs.100,000 Rs.10,00,000

The Enhanced Business Plus Account is only available to the following: o Resident Indians. o Individuals / Sole Proprietorships / Partnerships / Associations /

CompaniesPrivate & Public Ltd. / Societies / Trusts / HUFs. This account can beopened Singly or Jointly

Insurance & Investment plansProtecting your futureWe are dedicated to protecting you and your family, as well as your hard earnedassets and future earnings. To take care of all your insurance requirements, webring you a variety of products from Bajaj Allianz Life Insurance Company & Royal Sundaram General Insurance Limited. We offer:


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One-stop shopping for both life and general insurance protection Comprehensive range of products to suit every stage of your life... from childhood to retirement Dedicated insurance Financial Services Consultants from Bajaj Allianz Life Insurance Company provide FREE Consultations to create customized insurance plans for you

At Standard Chartered Bank we have a comprehensive range of products & servicesto protect your world

Life Insurance General Insurance - Health, Motor vehicle, Home Contents and Personal Accident

Planning for your financial goalsStandard Chartered Bank, using over 150 years of expertise, promises to guide you through the world of exciting new investment opportunities in India and overseas. From shortest-term deployment of funds to planning your retirement, we pledge to go the extra mile to ensure that you reach your chosen financial goals.

General InsuranceYou can ensure your peace of mind with a wide range of General Insurance product

s* available conveniently at Standard Chartered Bank. Key Plans Some of the keyGeneral Insurance products available at Standard Chartered: Health shield: A comprehensive health insurance package designed to offer complete protection to theinsured and his family. Car shield: A comprehensive motorcar insurance package,designed to cover your car in most adverse situations. Home shield: Provides complete coverage for damage to your building. Accident shield: Designed to take care of you and your family in the unfortunate event of a fatal accident. Doubleprotect: Double Protect is a 2 years Health Insurance plan. The plan offers reimbursement of Hospitalisation expenses in the event of illness or accident HospitalCash: This Plan is de signed to pay daily Hospital Cash benefits in the event of an accident or illness and hence getting Hospitalised.


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Secure All: Its a 3 in 1 plan , where the customer gets coverage for Hospitalisation expenses, Daily cash benefit in addition to the reimbursement of actual expenses and Lumpsum Accidental Death & Disability (PTD) benefit.

Royal SundaramRoyal Sundaram Alliance Insurance Company Limited is a joint venture between Sundaram Finance and Royal & SunAlliance plc, UK, where the former holds 74% and the latter holds 26% of the equity of the venture. Royal Sundaram currently has over 2.1 million customers in its fold. Its products are distributed in over 150 cities across India. We offer the range of innovative general Insurance productsin association with Royal Sundaram to our customers.

Motor Insurance, Health & Accident insurance, Home Insurance and Travel Insurance for individual customers Wide range of specialised insurance covers in Property, Marine, Engineering, Liability and Business Interruption risks apart from specially designed packages for Small and Medium enterprises.

Royal Sundaram Insurance offers customized insurance coverage plans.To avail ofthe same, please contact your Customer Relationship Manager at your nearest Standard Chartered Bank branch today! *The General Insurance products listed above a

re underwritten by Royal Sundaram Insurance Company Limited. Insurance is the subject matter of the solicitation. Please read the disclaimer Disclaimer GeneralInsurance Disclaimer Insurance Plans for Standard Chartered Bank customers is issued by Royal Sundaram Alliance Insurance Company Limited. Claims will be settled by Royal Sundaram Alliance Insurance Company Limited as per the terms and conditions of the policy. These details are not a contract of Insurance. Please refer policy document for exact terms and conditions and specific details applicableto this Insurance. This plan is underwritten by Royal Sundaram Alliance Insurance Company Limited. Standard Chartered Bank does not accept any responsibility nor gives any warranty, express or implied, as to the accuracy, reliability and completeness of any statement made in or the omission of any provisions of the contract of Insurance from this brochure and the Bank does not accept any liability for loss or damage of whatsoever nature, which may be attributable your applic

ation, its receipt, payment of claims under it or the contract of Insurance. Your participation in this insurance product is purely on a voluntary basis. We advise you to take your own professional advice before you participate.


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Life InsuranceStandard Chartered offers you a wide range of Life Insurance Products from BajajAllianz Life Insurance Company, one of India s leading Insurance companies. AtStandard Chartered, you can avail of the services of trained & certified professional consultants from Bajaj Allianz Insurance company, who can guide you in ascertaining your insurance needs, and assist you in making an insurance plan thatis just right for you.

Key Plans Some of the key Life Insurance plans* available at Standard CharteredBank:

New Unit Gain: An investment plan that creates value for every rupee you investo It is a unit linked regular premium plan. o 96% of First Years Regular Premiumis allocated to funds in the following manner Of the first years Regular Premium,45% is allocated to Fund(s) immediately 5.1% of the First Years Regular Premiumwill be allocated to funds every year starting from 4th policy year till the endof 13th policy year (making it 51%) , provided all due Regular Premiums have been paid o A new Asset Allocation Fund A good option to invest in that shifts your funds as per the opportunities available & attractiveness of the sector

Youngcare & Youngcare plus: It is a unit linked regular premium plan specially designed to secure your childs future o It has an in built WOP (Waiver of premium)rider. i.e on death of Life assured, the policy continues with premiums paid into the policy by the insurance company till the end of term o Sum Assured is paid on Death and WOP is triggered. Nominee receives the fund value at the end of the term o Loyalty units are infused into the policy from the 6th Year onwards asa % of the fund value

Future Secure: Enjoy your retirement years with this pension plan o A pension plan with 2 options - with a life cover & without a life cover o It has a double D

eath Benefit which is Sum Assured + Fund value o The allocation to funds startsfrom 80% and keeps reducing depending on the premium size


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o o

Future Secure has an Unlimited Top-up facility where the Sum assured may not increase with infusing additional premium as Top up Loyalty Units get infused fromYear 6 onwards as a % of fund value

Bajaj Allianz Care First: A medical insurance plan that allows you to renew tillthe age of 65 years. Premium guaranteed for the length of the each policy termof 3 years o Generous hospital cover up to 7 Lacs. o Cashless Treatment available across over 2000 leading hospitals in over 200 towns across India. o SpecificDay Care treatments requiring less than 24 hrs. Hospitalization is also coveredunder this plan.

Protector: A Mortgage Reducing Term Insurance Plan. Make youre your family home remains with your family for life. o The loan protector plan from Bajaj Allianz Life Insurance is mortgage reducing term assurance plan, which at low premiums helps you to secure your family against home loan. o It is an economical way to protect the family from the burden of repayment of the loan. o Convenient premium

payment options - Regular Premium Payment & Single Premium Payment. o Joint Lifeavailability - the option to cover the co-applicant of the loan under this plan.

New Unit Gain Easy Pension Plus: Unique unit-linked pension plan without life cover o Available in Single Premium and regular Premium payment mode. o Option totake a tax-free lump sum up to 33% of Sum Assured. o Open Market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.o Choice of 5 investment funds. o 3 free switches allowed every year.

Child Gain: Insure today and secure your childs education and ambitions. This policy is available in 4 Options o ChildGain 21 and ChildGain 21 Plus Child s education Plan upto Graduation


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o

o

o

105% Guaranteed Payouts + Bonuses ChildGain 24 and ChildGain 24 Plus Child s education Plan upto Post Graduation 115% Guaranteed Payouts + Bonuses Family IncomeBenefit: In case of death or accidental total permanent disability of insured,all future premiums are waived and 1% of the sum assured is paid monthly Start of Life Benefit: Enables a smooth start to your childs professional life, incase of an unfortunate death or disability of the insured parent during the policy term.

Invest Gain: Invest Gain is a specially designed plan that offers a unique combination of benefits that help you develop a sound financial portfolio for your family. o 4 Times Life Cover at a little extra cost. o Limited premium payment option available. o Available with a host of additional benefits including: FamilyIncome and Waiver of Premium Benefit

Term Care: Term Assurance plan with return of premium o An economic way of providing life cover, this plan also ensures the return of all premiums at the time of maturity. o Dual benefit - Life cover + Return of premiums paid on survival atthe end of the term. o Single premium payment option available. o The only pureterm plan in the market to provide Hospital Cash Benefit.

Bajaj AllianzBajaj Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering you Insurance solutions that provide all the security you need for yo

ur family and yourself. Bajaj Allianz Life Insurance offers customized insurancecoverage plans. To avail of the same, please contact your Customer RelationshipManager at your nearest Standard Chartered Bank branch today! Life Insurance Disclaimer Life Insurance Disclaimer Insurance is the subject matter of the solicitation. Bajaj Allianz Life Insurance Plans for Standard Chartered Bank customersare underwritten by Bajaj Allianz Life Insurance Company Limited. Claims will be settled by Bajaj Allianz Life Insurance Company Limited as per the terms and conditions of the policy. This brochure is not a contract of insurance. Please refer policy document for exact terms and conditions and specific details


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applicable to this Insurance. Standard Chartered Bank does not accept any responsibility nor gives any warranty, express or implied, as to the accuracy, reliability and completeness of any statement made in or the commission of any provisions of the contract of insurance from this brochure and the bank does not acceptany liability for loss or damage of whatsoever nature, which may be attributableto your application, its receipt, payment of claims under it or the contract ofinsurance. Your participation in this insurance product in purely on a voluntary basis. We advise you to take your own professional advise before participate.This content should be read in conjunction with the Benefit Illustration and Policy Exclusions. Please ask for the same along with the quotation.

CompetitorsAs Standard Chartered is a multinational bank and only multinational banks are in the capacity to compete with the Standard Chartered and the multinational banks are:

Citi Bank HSBC American Express ABN AMRO Deutsche BankCitibank is a major international bank, founded in 1812 as the City Bank of NewYork, later First National City Bank of New York. Citibank is now the consumer banking arm of financial services giant Citigroup, one of the largest companies in the world. As of March 2007, it is the largest bank in the United States by holdings. Citibank has operations in more than 100 countries and territories aroun

d the world. More than half of its 1,400 offices are in the United States, mostly in the New York City, Chicago, Miami, and Washington, D.C. metropolitan areas,as well as in California.


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In addition to the standard banking transactions, Citibank offers insurance, credit card and investment products. Their online services division is among the most successful in the field, claiming about 15 million users. As a result of theglobal financial crisis and huge losses in the value of its subprime mortgage assets, Citibank was rescued by the U.S. government under plans agreed for Citigroup. On November 23, 2008, in addition to initial aid of $25 billion, a further $25 billion was invested in the corporation together with guarantees for risky assets amounting to $306 billion.

HSBC Holdings plc is a public limited company incorporated in England and Walesin 1990, and headquartered in London since 1993. As of 2009, it is both the world s largest banking group and the world s 6th largest company according to a composite measure by Forbes magazine. The group was founded from The Hongkong and Shanghai Banking Corporation based in Hong Kong, the acronym of which led to thecurrent name. Today, whilst no single geographical area dominates the group s earnings, Hong Kong still continues to be a significant source of its income. Recent acquisitions and expansion in China are returning HSBC to part of its roots.HSBC has an enormous operational base in Asia and significant lending, investment, and insurance activities around the world. The company has a global reach andfinancial fundamentals matched by few other banking or financial multinationals. HSBC is listed on the London, New York, Hong Kong, Paris and Bermuda Stock Exchanges, and is a constituent of the FTSE 100 Index and the Hang Seng Index. In F

ebruary 2008, HSBC was named the world s most valuable banking brand by The Banker magazine. Not known for marked fluctuations in securities exchanges around the world relative to its rivals, HSBC is a better known in banking circle for itsconservative and risk-averse approach in its business operations - a company tradition going back to the 19th century. In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group s image did notgo unnoticed. As of April 2, 2008, according to Forbes magazine, HSBC was the fourth largest bank in the world in terms of assets ($2,348.98 billion), the second largest in terms of sales ($146.50 billion), the largest in terms of market value ($180.81 billion). It was also the most profitable bank in the world with $19.13 billion in net income in 2007 (compared to Citigroup s $3.62 billion and Ba

nk of America s $14.98 billion in the same period). HSBC is by far the largest bank both in the United Kingdom and in Hong Kong and prints most of


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Hong Kong s local currency in its own name. Since the end of 2005, HSBC has beenthe largest banking group in the world by Tier 1 capital. The HSBC Group has asignificant presence in each of the world s major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of the business. With 9,500 offices in 86 countries, 210,000 shareholders, 330,000 staff and128 million customers worldwide, HSBC arguably has the most international presence among the world s multinational banking giants. The HSBC Group operates as anumber of local banks around the world, which explains its advertising tagline "The World s Local Bank." Outlined below are countries which, in 2007, generatedthe top 20 profit before tax figures, with the addition of the United States asspecific issues exclude that country from the top 20 for 2007.

American Express Company sometimes known as "AmEx" or "Amex", is a diversified global financial services company that is headquartered in New York City, New York. Founded in 1850, the company also has major offices in Fort Lauderdale, Florida; Salt Lake City, Utah; Greensboro, North Carolina; Phoenix, Arizona; Sydney,New South Wales, Australia; Markham, Ontario, Canada; London and Brighton, United Kingdom. The company is best known for its credit card, charge card, and traveler s cheque businesses. The company s common stock trades on the New York StockExchange under the ticker symbol "AXP." It is one of the 30 components of the Dow Jones Industrial Average. In 2007, BusinessWeek and Interbrand ranked American Express as the fourteenth most valuable brand in the world, estimating it to b

e worth US$20.87 billion. On November 10, 2008, during the financial crisis of 2008, the company won Federal Reserve System approval to convert to a bank holding company, making it eligible for government help under the Troubled Assets Relief Program. At that time, American Express had total consolidated assets of about $127 billion. American Express s chief executive officer is Kenneth Chenault,who took over in 2001.

ABN AMRO is a Dutch bank, currently owned by RFS Holdings B.V., a consortium ofRoyal Bank of Scotland Group, the Government of the Netherlands, and Banco Santander. The bank


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was created as the result of the 1990-91 merger between Amsterdam-Rotterdam (AMRO) Bank and ABN, whose history dated back to the founding of the Nederlandsche Handel-Maatschappij in 1824. Between 1991 and 2007, ABN AMRO was one of the largest banks in Europe and had operations in about 63 countries around the world. Inthe biggest banking takeover in history, a consortium comprising RBS, Fortis, and Banco Santander acquired ABN AMRO in 2007. Due to the 2008 financial crisis,the Dutch government nationalised the divisions owned by Fortis, while the UK government is now in effective control over the divisions allocated to RBS due toits financial bail-out of the Scottish bank. The process of integrating some ofABN AMRO s divisions into the new owners, and divesting others, continues. On April 7, 2009 the UK state-owned RBS unveiled plans to fire upwards of 9000 staff.

Deutsche Bank AG (literally "German Bank" is an international Universal bank with its headquarters in Frankfurt, Germany. The bank employs more than 81,000 people in 76 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets. Deutsche Bank has offices in major financial centers, such as London, Moscow, New York, Singapore, Sydney, Hong Kong and Tokyo. Furthermore, the bank is investing in expanding markets, such as the Middle East, Latin America, Central & Eastern Europe and Asia Pacific. The bank offers financial products and services for corporate and institutional clients along with private and business clients. Services include sales, trading, and origination of debt and equity; mergers and acquisitions ((M&A); risk management products, such a

s derivatives, corporate finance, wealth management, retail banking, fund management, and transaction banking. Deutsche Banks Chief Executive Officer and Chairman of the Group Executive Committee, since 2002, is Josef Ackermann. Deutsche Bank is listed on both the Frankfurt (FWB) and New York stock exchanges (NYSE). Deutsche Banks mission statement is: We compete to be the leading global provider offinancial solutions for demanding clients creating exceptional value for our shareholders and people. The banks business model rests on two pillars: the Corporate& Investment Bank (CIB) and Private Clients & Asset Management.

Comparative analysis of standard chartered products with other multinational banks


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Comparison on the basis of Savings AccountFactors Stan Chart Bank Citi Bank HSBC Bank Deutsche Bank ABN AMROFlex Privilege

Avg. Access Citi Bank Savings Normal Rs.25000 Normal Rs.1Lac Quarterly PlusR Balance in s.250 Rs.25000 Power Vantage Plus Rs. 3Lac Saving A/C 00Super value Rs.50 000 Citi Bank Rs.50000 Gold Rs.1Lac Premium Rs.25Lac Premium Rs.20Lac

Rs.50000 Flex Rs.15000 Flex Rs.10000 Free Free No No Free (AQB more than Rs.50000) Adv Plus

NEFT RTGS

Free Free

Free Free Yes(AQB than 1lakh) No Free (AQB more than Rs.1lakh) more

Free Free Yes(AQB more than 1lakh) No Free (AQB more than Rs. 1lakh)

Free Free Yes (AQB more than 3lakh) Yes (AQB more than 3lakh) Yes (AQB more thanRs.3lakh)

Relationship No Manger Credit CardNo

Door step Free (AQB banking more

than Rs.50 000) Yes Yes Yes Yes Yes Yes No Yes

Financial Consultant Online Banking

No Yes

Comparison on the basis of Current Account and other factors

Factors Avg. Quarterly Balance in Current A/C Stan Bank Chart Citi BankCiti business than Rs.1lakh less

HSBC BankBusiness Vantage Rs. 1lakh or more Business Select Rs.5lakh or more

Deutsche Bankdb S(Silver)75 Rs.75000or more db P(Platinum) 250 Rs.2.5lakh

ABN AMROValue+Silver40 more than Rs.40000 Value+Gold100 Rs.1lakh or more Value+Gold500 Rs.5 lakh or more

BP50 Rs.50000 EBP100 Rs.1lakh EBP1000 Rs.10 lakh

Citi business Rs.1lakh or more Citi gold business Rs.15 lakh or more


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or more db G(Gold)500 Rs. 5lakh or more Yes

At par cheque book ATMs & Debit Card D/D at their Banks

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Free upto Rs.25000 p.m.in BP50 A/c Unlimited Free AQB A/c more than Rs. 1lakh

Free upto Rs.5lakh p.m. AQB less than 1lakh Free upto Rs.50lakh p.m. AQB more than 1lakh Unlimited free with AQB more than 15 lakh Free upto Rs. 25 lakh where AQB is more than 1lakh Free unlimited where AQB is more than 15lakh

Unlimited free every account

in

Unlimited free in every account

Free only in Value+Gold500 A/c

D/D at other locations

Free upto Rs.50lakh p.m. in EBP100 Free upto Rs.75lakh p.m. in EBP 1000

0.25%(Min Rs.100, Max Rs.5000) in every A/c

Totally free at SBI locations in every A/c but there are Charges if it is not SBI.

Free upto Rs.50000 in every A/c

Branches

68 metros 83India

25 metros 35 India

30 metros 39 India

20 metros 35 India

17 metros 19 India


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ATMs Charges for ATM Charges per transaction

165

376

158

126

78

Rs. 200p.a.

Rs.100 p.a.

Rs.150 p.a.

Rs. 200p.a.

Rs.200 p.a.

4transacti ons free

Rs.50 per trans

Rs.50 per trans

2 transactions free per

2 transactions free per month and then rs.40 per


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from ATMs of other banks

per month and then Rs.50per transactio n No Yes

month

transaction

Locker facility Avg. Banking hrs. 24c hrs branch Min balance saving Charges fornot maintainin g min balance Flexibility of interest rates

Yes Rs 2000 p.a.

No

No

10 am 7pm

10 am 2pm

9am 4pm

10am 7pm

10 am 7pm

Yes

No

No

No

No

10000

10000

10000

10000

10000

750 per quarter

250per month

300per quarter

350 quarter

per

200 1800 per month


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Yes

No

Yes

No

No

Comparison on the basis of insurance products

Term insurance Factors Bajaj Allianz Entry age 18-50 years Minimum sum 100000 assured Minimum term 5years Max. term 40years HDFC 18-60 years 100000 5years 30years Birla Sun Life 18-55 years 250000 5years 25years


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Child Care plan Factors Entry age Min. term Max. term Bajaj Allianz 18-60years(Parent) 0to13years(child) 5years 21years HDFC 18-60years(Parent) 0to13years(child) 10years 25years Birla Sun Life 18-60years(Parent) 30daysto13years(child) 5years 23years

Comparison on the basis of Financial RatiosFactors Standard Chartered ROE 15.47 ROA 0.9 Expense Ratio 6.92 Asset utilization 6.12 Net Interest 4.28 Margin HSBC 6.48 0.3 6.06 6.09 3.74 Citi -0.003 -0.0025.14 5.13 5.16 ABN AMRO -10.64 -0.35 1.46 1.11 1.54

From the above table it is clear that Standard Chartered Bank is earning the highest Return on Equity and Return on assets but on the other hand Standard Chartered has to do something with their Expenses because the expense ratio of Standard Chartered is more than its asset utilization ratio.

OperationsThe bank is a leading player throughout the developing world. Standard CharteredBank is one of the three banks licensed to issue banknotes for Hong Kong (Standard Chartered Bank (Hong Kong) Limited became a note-issuing bank from 2004), the other two being the Bank of China (Hong Kong) and The Hong Kong and Shanghai Banking Corporation.


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The bank supports marathons in many cities, including London (The City Run), Jersey, Singapore, Dubai, Lahore, Mumbai, Hong Kong, and Nairobi. The first Standard Chartered marathon in Kuala Lumpur will be launching this year. Standard Chartered global presenceAsia Pacific I ndia A fghanistan A ustralia B angladesh B runei Darussalam C ambodia C hina H ong Kong epal auritius N ietnam alaysia M hailand V acau M aiwan Taos M ri Lanka T apan L outh Korea S ndonesia J ingapore S I hilippines S akistan P P

Africa S ierra Leone B otswana C ameroon C ote d lvoire G hana K enya N igeria imbabwe ambia Z ganda Z he Gambia U anzania T outh Africa T S

The Middle East B ahrain E gypt J ordan L ebanon O man Q atar U AE


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UK/Europe A ustria F rance G ermany G uernsey $ Italy J ersey ussia omania R nited Kingdom oland R kraine U onaco P urkey U uxembourg M witzerland T azakhstan Lweden S K pain S S

The Americas A rgentina B ahamas B razil C anada C ayman Islands eru exico P alkland Islands M olombia F enezuela hile C SA V C ruguay U U

Application of Chi-square for checking the relationship between age and types ofaccounts offeredA random poll of 309 customers is taken resulting in the following table. Typesof Accounts offered Age Current A/c Savings A/c Fixed deposit A/c Total


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0-20 20-40 >40 HYPOTHESIZE

26 41 24 91

95 40 13 148

18 20 32 70

139 101 69 309

Step1: The hypothesis as follows Ho: Type of Accounts offered is independent ofage Ha: Type of Accounts offered is not independent of age Step2: Contingency table for observed frequency: Age 0-20 20-40 >40 Current A/c 26 41 24 91 Savings A/c 95 40 13 148 Fixed deposit A/c 18 20 32 70 Total 139 101 69 309

Step3: Alpha is 0.01 Step4: Here there are three rows(r =3) and three columns(c=4).The degree of freedom is (3-1)(3-1)=4, and the critical value is X2.01,4 =13.2777.the decision is to reject the null hypothesis if the observed value of chi-square is greater than 13.2277. Step4: Contingency table for Expected frequency: Age 0-20 20-40 >40 Current A/c 40.9 29.74 20.32 91 Savings A/c 66.58 48.38 33.05 148 Fixed deposit A/c 31.49 22.88 15.63 70 Total 139 101 69 309

e11 = 139*91/309=40.9 e21= 101*91/309= 29.74 e31= 69*91/309= 20.32

e12= 139*148/309= 66.58 e22=101*148/309= 48.38 e32= 69*148/309= 33.05

e13= 139*70/309= 31.49 e23=101*70/309= 22.88 e33=69*70/309= 15.63

Step5: Table for the calculation of observed X2 is: O 26 95 18 41 40 E 40.94 66.58 31.49 29.74 48.38 (O-E)2 223.20 807.70 181.98 126.79 70.22 (O-E)2/E 5.45 12.13 5.78 4.26 1.45


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20 24 13 32

22.88 20.32 33.05 15.63

8.2944 13.54 402 267.98

0.36 0.67 12.16 17.15 59.41

DECISION Step6: The observed value of Chi-square, 59.41, is greater than the critical value, 13.277, so the null hypothesis is rejected. BUSINESS IMPLICATION: Step7: The two variables Accounts offered and age are not independent. Examination of the categories reveals that younger people tend to prefer savings account and older people prefer fixed deposit account. This information helps the managers of various banks while offering and targeting the customers.

IntroductionAt IILM Business School, the PGP programme has been designed keeping in mind therequirement of a company in the World at large. We, as students of IILM, are required to undergo two months company project study after completing the third trimester.


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The objective of the training module is to help the students to understand the business environment well and equip themselves with the work culture of the companies in the present era. I, Anurag Jindal, take the opportunity to introduce thereader the outlines of my Management Research Project. I have completed my Summer Internship from Standard Chartered Bank, Gurgaon branch. My summer internshipwas divided into two halves: In the first half, I was engaged in selling of Standard Chartered products- Current Account, Savings Account and Insurance Plans.In the second half, I had to analyze consumer behaviour towards Standard Chartered products as compared to other multi-national banks. This comparison is followed by a survey and its analysis and at the end the recommendations that could make Standard Chartered more effective in the banking sector.

ObjectivesThere are certain objectives for this objective which are as follows:

To know about the status of SCB in comparison to other banks To identify the level of competition among MNC banks


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To identify the areas where SCB could improve To find out the satisfaction levelof customers. To know about the various services provided by MNC banks

MethodologySince it is basically a market research project along with some marketing and selling of financial products, various market research methods were used to accomplish its goals. I conducted a


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market survey to know about the various players and their performance in the industry taking into consideration the various products and the product related services provided by them. The stepwise methodology that was used is:1. Secondary Research: Company description was obtained through websites, business

magazines, and journals and from the organization itself. Information like current market share was extracted from net.2. Sampling:

Selecting the sample: Population that was taken as a sample included randomly selected customers of some multinational banks like Standard Chartered Bank, ABN-AMRO, HSBC, Deutsche Bank, Citibank . Sampling Technique: Simple Random SamplingSample Size: 100 respondents (total)3. Primary Research: Primary research was conducted through surveys via:

a. Personal Interviews b. Interactions with consumers of different banks. c. Interaction with customers at Malls and other market places. Questionnaires were designed to conduct interviews.

4. Preparation and tabulation of data: After the data has been collected, it wasentered into

Microsoft Excel and was prepared for analysis.5. Data Analysis: The data so collected was analyzed in Microsoft Excel with thehelp of bar

diagrams, pie charts, etc. Finally, the information thus obtained from the survey was used to discover the potential segment for generating new business for theorganization and thereby devise strategies to generate new business from that potential segment

Findings and AnalysisThe findings and analysis has been done through the questionnaire which is as follows:


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Questionnaire of BanksNote: Please fill this questionnaire carefully as we will be using this for a project Demographics 1. Name __________________________________________________ 2.Age a) Below 20 years c). 40 60 years 3. Sex a) Male 4. Marital Status a) Married b) Single 5. Occupation a) Student c) Business b) Female b) 20 40 years d) Above 60 years

b) Service d) Others ______________________

6. Annual Income a) Below Rs 2, 00,000 p.a. b) Between Rs 2, 00,000 & 5, 00,000c) Above 5, 00,000 7. Contact Number/Email _______________________

8. Your criteria for choosing a particular bank: (Please tick the appropriate box, 1- lowest 2 -low 3- average 4 high and 5- the highest)Rating Scale Features 1 2 3 4 5


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1. Location 2. Ambience 3. Timings 4. Products Offered 5. Clarity of Information6. Service

9. Rate the following banks on a scale of 1 to 5 of satisfaction level. (Pleasetick the appropriate box, 1 being the lowest and 5 the highest) Rating Scale Bank 1.Standard Chartered 2. Citibank 3. ABN Amro 4. HSBC 1 2 3 4 5

10.Bank

Type of services availed in the above mentioned bank.SCB ABN AMRO HSBC Citibank

Services


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1.Saving A/c 2.Current A/c 3.Term Deposit 4.Credit cards

FindingsAge


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Age Frequency 15 26 40 19 100 Percent 15.0 26.0 40.0 19.0 100.0 Valid Percent 15.0 26.0 40.0 19.0 100.0 Cumulative Percent 15.0 41.0 81.0 100.0

Valid

Below 20 years Between 20 and 40 years Between 40 and 60 years Above 60 years Total

From the above analysis I could conclude that the people of 20-60 years are transacting with the multinational banks and majority is of people between 40-60 years.

Occupation


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Occupation Frequency 13 47 36 4 100 Percent 13.0 47.0 36.0 4.0 100.0 Valid Percent 13.0 47.0 36.0 4.0 100.0 Cumulative Percent 13.0 60.0 96.0 100.0

Valid

Student Service Business Others Total

From the above figure I can conclude that service people are mainly dealing withthe multinational banks.

Annual Income


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Annual Income Frequency 13 11 44 32 100 Percent 13.0 11.0 44.0 32.0 100.0 ValidPercent 13.0 11.0 44.0 32.0 100.0 Cumulative Percent 13.0 24.0 68.0 100.0

Valid

Dependant Below 2 Lakh Between 2-5 Lakh Above 5 Lakh Total

From the above data I could say that people having income between 2-5lakhs and above 5lakhs mainly dealing with multinational banks.

Factors affecting the banking habits of people


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The banking habits were studied on the basis of six features included in the questionnaire. The respondents were asked to rate each of these features on a scaleof five factors namely lowest, low, average, high and highest. The following results were obtained for each of these factors:

1. LocationLocation Frequency 11 50 39 100 Percent 11.0 50.0 39.0 100.0 Valid Percent 11.050.0 39.0 100.0 Cumulative Percent 11.0 61.0 100.0

Valid

Average High Highest Total

From the above chart I could say that location is one is of the main factor to affect the dealings with the multinational banks.

2. Ambience


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Am bience Frequency Valid Lowest Low Average High Highest Total 3 8 51 34 4 100Percent 3.0 8.0 51.0 34.0 4.0 100.0 Valid Percent 3.0 8.0 51.0 34.0 4.0 100.0 Cumulative Percent 3.0 11.0 62.0 96.0 100.0

From the above I could say that on an average ambience affect the people decisions about the dealing with the multinational banks.

3. Timings


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Tim ings Frequency Valid Lowest Low Average High Highest Total 1 4 58 36 1 100 Percent 1.0 4.0 58.0 36.0 1.0 100.0 Valid Percent 1.0 4.0 58.0 36.0 1.0 100.0 Cumulative Percent 1.0 5.0 63.0 99.0 100.0

From the above figure I could say that timings is averagely affected the customers of multinational banks

4. Products Offered


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Product Offered Frequency 17 64 17 2 100 Percent

just project

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