macro report final

8/3/2019 Macro Report Final

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American International University-Bangladesh

PERFORMANCE EVALUATION OF STANDAREDCHARTERED BANK LTD.


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Dhaka, Bangladesh.

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Group: Beacon

Name IDTushar Md. Abrar Hossain 08-11521-2Mehedi Md. Arman 08-11519-2Paul Sorav KumarAlam Md. Didarul 08-11424-2

Submitted to:

DR. PRIYA BRATA PAULDepartment Of Arts and Social Science

American International University- Bangladesh

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Acknowledgement

We would like to give cordial thanks to them who helped us a lot in preparing this research

report on Performance Evaluation of Standard Chartered Bank Ltd. We are very muchgrateful to our course instructor DR. PRIYA BRATA PAUL for her valuable instructions,

helpful attitudes and guidance in making this report. We also want to give thanks to those

officials who helped us giving their bank. Our sincerely thanks go to our friends and class mates

for their support and help without which this report was not possible in such a short time.

Thank You.

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Table of Contents

Topic Page No.

Introduction 05Mission 06Data Analysis:

Personal Banking 07-15Priority Banking 16

SME Banking 17-25Statement 26-30

Limitations 31Major Findings 32-33Recommendation 34-35Conclusion 36

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Introduction

The Standard Chartered Bank (SCB) is an international banking group, which is incorporated inthe U. K., with its headquarters in London. The group focuses its activities in Asia, Africa andthe Middle East and its operation is segmented under six regions; UK & Europe, Middle East &South Asia, Africa, South East Asia, and The Americas

Standard Chartered Bank opened its branches in Nairobi in January 1911, with 2 branches; one atTreasury Square in Mombasa and the other on Kenyatta Avenue in Nairobi. Today, 97 yearslater, the Bank has an excellent franchise, with a network of 32 branches strategically locatedacross the country, 84 Automated Teller Machines (ATMs) and 1,040 employees. With 25%local shareholdings, Standard Chartered Bank has remained a public quoted company on theNairobi Stock Exchange since 1989.

As the oldest foreign bank in Bangladesh, we enjoy a market share of approximately 27%. TheBank has two core business divisions: Wholesale Banking and Personal Banking. These two businesses are supported by the functions of Operations & Technology, Finance, HumanResources and Corporate Affairs. The corporate and institutional business is mainly handled outof the four major cities in Bangladesh: Nairobi, Mombasa, Kisumu and in Eldoret Town.

Standard Chartered is an active member of the communities in which we operate. The Banksupports projects that focus on the socio-economic development of the youth with a heavyemphasis on health and education.

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Mission and Objectives

Leading by example to be the right partner for its stakeholders, the Group is committed tobuilding a sustainable business over the long term that is trusted worldwide for uploading highstandards of corporate governance, social responsibility, environmental protection and employee

diversity. It employs over 70,000 people, nearly half of whom are women; The Group'semployees are of 125 nationalities, of which 68 are represented among senior management.

SCB stands for:

To be the world's best international bank and Leading the way in Asia,

Africa and the Middle East .Their brand promise is leading by example to be theright partner. Their also have some important values these are Courageous Responsive,International, Creative andTrustworthy.

Data Analysis

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Personal Banking

Super Savers AccountYou want a Savings Account that understands your need better! The Standard Chartered SuperSavers brings you the ultimate trust, security and convenience in Savings Account. AnyBangladeshi national with an age of 18 years or above can open this account.

Special Features:

NO Interest Forfeiture Rules - Interest will be accrued on monthly

average balance and applied at each quarter-end. NO Counter Transaction FEE is needed. They take care of your bills throughmonthly auto-debit. NO other bank offers an Add-on Debit Card for yourloved ones. 24-hour Contact Center, Internet Banking, e-Statements,ATMs, Bills pay Centers & SMS banking is available. Anybody can getDebit Card for free with only 18 retail transactions in a year and canRequest Pay-orders over the phone.

Additional Features completely FREE!

25-leaves regular chequebook, SMS Banking 24 hour Phone Banking (TIN for IVR),Internet Banking e-Statements Utility Bill Payment through Auto Billspay and otherchannels, these are totally free for their client. Their Initial account opening amount isBDT 50,000 and Interest Rate up to 6% per annum.

eSavers AccounteSavers Account is the Savings Account with Remote Banking solutions bundled with exclusiveCustomer Value Propositions. Here the accountholders will be primarily using our world-classalternate channels for their transactions and other regular banking needs. Any Bangladeshi

national with an age of 18 years or above can open this account.

Special Features

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NO Interest Forfeiture Rules - Interest will be accrued on monthlyaverage balance and applied at each quarter-end, NO other bank offersan Add-on Debit Card for your loved ones, 24-hour Contact Center,Internet Banking, e-Statements, ATMs, Bills pay Centers & SMSBanking is available, Get your Debit Card for free with only 18 retail

transactions in a year, Request your Pay-orders over the phone.

Additional Features completely FREE!

25-leaves regular chequebook (Account-payee only),SMS Banking ,24 hour PhoneBanking (TIN for IVR) Internet Banking, e-Statements Utility Bill Payment through AutoBillspay and other channels Initial opening amount is BDT and20,000 and the interestRate is up to 7% per annum.

Services

Auto Billspay Standard Chartered Bank offers you an exclusive service of paying utility billsdirectly from your Account or Credit Card without waiting in long queues. Enroll into autoBillspay services for FREE, and the Bank will setup a Standing Instruction, and will arrange thepayment of the following bills from your Account or Credit Card each month:Mobile Phone:Aktel, Banglalink, Citycell, Grameenphone, Warid Electricity: DPDC, DESCO Internet:Accesstel, Agni, BOL, ZipInsurance premium: ALICO insurance premium Tuition Fee:Scholastica, South Breeze Club: Dhaka Club, Chittagong Club.

Dial-a-Draft Dial-a-Draft is a unique solution whereby a Savings or a CurrentAccountholder can request for a Pay-Order simply by calling our 24-hour Contact Centre andtake delivery from any of the Standard Chartered Branches.

Locker Services Our safe deposit locker service offered from select branches gives you acompletely secured facility for safekeeping of precious items, confidential documents andother valuables.

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Special Features

Personalized service from a dedicated locker officer and Facilities to

access outside scheduled time, parcel handling, safe custody of goodsand bonds/shares

Student Files

Standard Chartered Banks student file is widely recognized and preferred among the academicinstitutions worldwide. Student File is a complete fund transfer solution for you that covers botheducational and living expensed. We offer a variety of fund transfer alternatives like DemandDraft, SWIFT transfer, Travellers Cheuqe etc.

Fixed Deposit

Our Fixed Deposits make your money work for you. With the advantage of Standard Chartered'sexpertise, resources and experience, you can assure of maximizing the growth potential of yoursavings safely.

Perfect combination of liquidity and returns

Our wide range of fixed deposit products are the perfect combination of liquidity and returns.You have the freedom to choose from the desired period from one month to Five years. If youneed cash before the end of your fixed deposit term, Overdraft/Loan facilities are availableagainst security of the deposit without losing the interest earning.

Affordable Opening Balance

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The minimum opening balance and to earn interest on Fixed Deposit account is only BDT50,000.

NFCD Account

It is an Interest bearing Foreign Currency (FCY) Term Deposit account.

Special Features

No fees and charges, Dual-Nationals can open this account, Funds along withinterest in these accounts can be freely repatriated abroad, No tax on

interest, FCY can also be converted into Taka and the fund must be present inthe account for at least 1 month to earn interest

Those who can open this account.

Non Resident Bangladeshis ,Local Companies register in Bangladeshbut operation in abroad and Foreign nationals, companies, firms, banks,financial institutions and EPZ units

Some funds can be used to open this account.

Funds transferred from Wage Earners FCY A/C, Remittances in otherconvertible account in other convertible currencies can be convertedinto USD, GBP and other currencies.

Minimum opening amount.

Minimum USD 1000 or GBP 500 (for individual Bangladeshis) ,Minimum of USD25,000 or equivalent GBP (for others)

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Interest structure available in this account:

Tenor: Fund has to be present for Minimum 1 month ,Rate: Rates arebased on international market rates and Bangladesh Bank guidelines,Interest Forfeiture: As NFCD is a type of term deposit, hence Interest

forfeited if deposit withdrawn

Monthly Savings SchemesWe offer Monthly Saving Schemes to any Standard Chartered accountholder who is aBangladeshi national, where the accountholders minimum age must be 18 years and maximumage at the end of the scheme is 60 years.

Features

This is non-transactional account where interest accrues on a daily basis and is creditedon a monthly basis ,Tax applicable under the scheme, will be deducted from the amountpayable to the account holder ,Nominee will receive the Target Savings Amount in theevent of untimely death of the primary account holder, i.e. death before maturity of theselected Monthly Savings Scheme

Calculation of one unit of Monthly Savings Scheme:

TenorInitial DepositMonthly DepositTotal paymentMaturity ValueProfit36 10,000 1,000 46,000 53,018 7,018

1. These are indicative figures only ,Tax is payable as per government rules and Terms andconditions apply

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Loans

Auto LoanWith Standard Chartered Auto Loan, it is easier than ever to buy the car of your dreams. OurAuto Loan Scheme offers you a flexible and affordable loan with easy repayment options, allwrapped in a very convenient package. You can purchase new, reconditioned, or second-handcars with Standard Chartered Auto Loan.

Features:

Loan amount up to 90% of vehicle value ,Maximum loan amount up to BDT 2 million,Longest loan tenor up to 60 months ,Competitive interest rates and absolutely transparentfees & charges ,Fast Loan approval process ,Options for early settlement and partial pre-payment of the loan ,Loan available for reconditioned / second-hand vehicles up to 6years old from the year of manufacture ,Maximum allowable age of the vehicle at the endof the loan tenor is 10 years in case of Toyota-manufactured vehicles, and 8 years in caseof other brands ,Who can apply?: Salaried professionals / Businesspersons / Landlord orlandlady / Self-employed Individuals ,Minimum age of applicant: 23 years ,Maximumage of applicant: 65 years ,Work Experience: Minimum 1-year service experience forsalaried executives & 3 years experience for businesspersons or self-employedindividuals ,Nationality: Bangladeshi ,Minimum net income: BDT 32,500 per month

Convenient

At Standard Chartered, we believe in delivering our services to customers doorsteps. Just call usat the 24-hour Contact Centre and our trained sales representatives will visit you at your

convenience to brief you on Auto Loan. They will help you understand the loan features and thedetailed application process, and can even help you choose your dream car from some of themost reputed car dealers in the city. You can also visit any of our branches for moreinformation.

Personal Loan & Flexi Loan

We all need a helping hand to be able to live our life to the fullest. And in this regard, we believethat we can be your right partner by providing you with our Personal Loan products that willhelp you meet your needs so that you never have to compromise with all that life has to offer!

Personal Loan: Personal Loans are fully unsecured loan facility offered to individuals,with the amount ranges from BDT 60,000 to BDT 1,000,000.

Flexi Loan: These loans are partially secured upto BDT 1,000,000, and fully secured forloan amounts in excess of BDT 1 million and up to BDT 1 crore. ,Saadiq PersonalFinance: This is our offering to those customers who would like to avail consumer

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financing in a completely Shariah Compliant way. Finance limits here range from BDT50,000 to BDT 1,000,000.

The interest rates (including profit rate for Saadiq Personal Finance) offered for all our productsare competitive, and we believe that together with our high level of overall customer service,

whatever your needs may be, we can help you get the most out of life!To find out which product is right for you, please contact us at our 24-hour Contact Centre.

Those who can avail these loans:

These loans may be availed by both businessmen and salaried individuals, regardless of whetherthey are an existing Standard Chartered bank customer or not. For a more detailed analysis ofyour eligibility, please contact us at our call center, or fill out our referral form.

Mortgage Loan

Standard Chartered Home Loan provides attractive financing for a new house or an apartment.You can also avail our Home Loan for renovation, facelift, extension and furnishing work inyour existing house or apartment.

Special benefits

Lowest interest rate in the market ,No personal guarantee or cash security required ,Noprior account relationship required with Standard Chartered ,Fast loan approval process,Early settlement and partial prepayment options, Loans against land value if building plan is approved by Rajuk or similar authorities ,Option to avail home loan ininstallments, based on the amount of down payment arranged at every step ,Option to payonly interest during construction period

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Exclusive features

Step by Step Financing: You can avail the home loan in steps, depending on how muchdown-payment you can arrange at every step. This greatly reduces the burden of havingto pay the whole down payment at once ,Plinth Level financing: You can avail home loan

for purchasing an apartment that is still in the construction stage, provided that thefoundation and the basic structure of the building have been completed. To avail ourHome Loan, you will no longer have to wait till the construction is over. This will helpyou choose your preferred apartment before others do.

Eligibility

Professional Experience: At least three years of service/ professional/ business trackRecords, Income: Minimum monthly income of BDT 25,000, Minimum Age: 25 Years,Maximum Age: 65 years at the end of the loan tenure or retirement age for serviceholders (whichever is earlier). For fully cash secured home loans, maximum allowable

age of the applicant at the time of financing is 60 years ,Proposed Property: Any propertyon leasehold / freehold / private land in Dhaka & Chittagong metropolitan areas

Flexible Loan features

Loan tenure of up to 20 years ,Loan amount up to BDT 7,500,000 ,Financing availablefor up to 80% of property value and Refinancing / loan takeover facility available

Repayment

Repayment by Equated Monthly Installments (EMI) and Interest calculated on monthlyreducing-balance basis

Security

Registered mortgage of the property or any other equivalent property in favor of StandardChartered Bank

Interest rates

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Standard Chartered now offers the best interest rates in the market for home loans. The interestrates are variable, and will be reviewed on a 6 monthly basis (after loan disbursement), based on182-Day Government Treasury Bill rates. The interest rates will depend on the loan amount asfollows:

Loan Amount Interest Rate(p.a.)

Up to BDT 15 Lacs 12.50%

Above BDT 15 Lacs & up to BDT20 Lacs

13.75%

Above BDT 20 Lacs 14.25%

Above interest rates are as on 31st March 2009; interest rates are subject to change without priornotice.

Processing Fees

Loan Processing Fee: 1.5% of the loan amount + 15% VAT on processing fee

Takeover Loan

You can transfer your existing home loan at other banks or financial institutions to StandardChartered Bank at attractive interest rates and make significant savings. Just visit any of ourbranches or call our call centre to know how much you can save. No processing fee is chargedfor Takeover Loans.

Accessible

At Standard Chartered, we believe in delivering our services to our customers doorsteps. Justcall our 24-hour call centre at (02) 8961151 or 01819-399999 anytime, any day, and our trainedsales representatives will visit you at your convenience to brief you on our Home Loan. Theywill help you understand the loan features and the detailed application process, and can even helpyou choose your dream home from among the most reputed real estate developers in the country.

You can also visit any of our branches for more information.

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Priority Banking

Priority Privileges

A universe of exclusive banking services Welcome to the world of Priority Banking - a world ofpreferential treatment for the chosen few like yourself. Priority banking Membership comes witha whole range of benefits specially designed to make your banking relationship more rewarding,both locally and throughout our Global Priority Network

Banking privileges...

Platinum card benefits ,Preferential pricing on deposits ,Preferential rates on Foreign

Exchange and Loans ,Free use of Call Centre services ,24 Hour access to cash at any timecarrying the Visa sign ,Free over the counter cash withdrawals ,Personal FinancialPlanning: Dedicated Relationship Managers and Customer Service Managers. ,A privateenvironment: access our Priority Banking Centre located at Moi Avenue and Yaya Centre,Flexible banking hours from 8.30am to 4.00pm on weekdays and up to 12.00pm onSaturdays. ,Free purchase of Travelers Cheques and Preferential rates and higher returnsas your deposit balance grows

To become a Standard Chartered Priority Banking customer, please call 329 3900 or visit one ofthe Priority Banking branches.

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E Banking

The constant economic growth in Bangladesh means ample opportunities for you to grow yourdream business. However, countless obstacles, intense business environment and steepcompetition require you to have the very best banking partner. This is where Standard CharteredBank's SME Banking comes into play with its wide range of business responsive products,services and superior customer service.

Business Installment Loan

Do not let fund shortage hold back your business expansion. Fight back all fund relatedconstrains with Standard Chartered Banks Business Installment Loan. Inject up to BDT 7Million to truly make your business fly!

Features

This loan will help you meet your financial needs for your business expansion. You can makelong term investments with this business loan and build up your equity by repaying the loan inconvenient equated monthly installments (EMI). You can avail this loan through some simpledocumentation and against competitive cash securities.

Maximum Loan can be BDT 7,000,000 (Seventy Lacs) only and minimum loan can be

BDT 1,000,000 (Ten Lacs) only. The interest rate is 19.5% per annum, Tenor: 3 Years -5 Years (i.e. 36 to 60 EMI payments) and Cash Security: 30% to 50% of the loan amount

Following table indicates the monthly repayment amount or EMIs against different loanamounts and tenors:

Loan Amount 36 months 48 months 60 months

1,000,000 36,750 30,000 26,0502,000,000 73,500 60,000 52,1003,000,000 110,250 90,000 78,150

4,000,000 147,000 120,000 104,2005,000,000 183,750 150,000 130,2506,000,000 220,500 180,000 156,300

7,000,000 257,250 210,000 182,350

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Please note that the above figures are only indicative and subject to change at the solediscretion of Standard Chartered Bank without any prior notice.

Eligibility

Any Business fulfilling the following criteria can apply for this loan:

o At least 3 years or more experience in the samebusiness ,Minimum annual turnover of BDT 12,000,000 (Onecrore twenty lacs) only

Documents

The following denotes the documents required for any business to apply for this loan:

Documents ProprietorshipConcern

Partnership Firm

PrivateLimitedCompany

1 Valid Trade License

2 3 Year Old Trade License

3 Latest 12 Month BankStatement

4 National ID of BusinessOwners

5 Utility Bill of Business 6 TIN Certificate

7 Photograph of the Owners

8 Registered Partnership Deed N/A N/A

9 Memorandum & Article ofIncorporation, Form X andXII

N/A N/A

10Certificate of Incorporation N/A N/A

11Board/ PartnershipResolution

N/A

12All Facility Related OfferLetters

Please note that the above requirements are not exhaustive and the bank may requirefurther documentation for credit assessment on a case to case basis.

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Charges

o Loan Processing Fee: 1% of the approved loan amount ,Early Settlement Charge:5% on outstanding amount if repaid at any given time before maturity of the loanand VAT and Stamp Charge: All charges and fees are subject to 15% VAT, to bepaid by the customer. Stamp charge will be at actual to be paid by the customer.

Orjon

In Bangladesh the number of women-owned company continues to grow, and StandardChartered Bank is dedicated in helping the women entrepreneurs to grow their business byoffering competitive Business Loans specially designed for women.

Standard Chartereds Orjon provides the liquidity you need to grow your business or meet yourcash flow requirements. The loan enables you to obtain financing without any requirement ofland or property collateral.

Features:

Orjon has been crafted to perfection to support the business needs of women entrepreneurs.

The following features depict the very reasons as to why Orjon can be instrumental in yourbusiness success:

Maximum Loan: BDT 7,000,000 (Seventy Lacs) only ,Minimum Loan:BDT 1,000,000 (Ten Lacs) only ,Interest Rate: 18.5% per annum ,Tenor:3 Years - 5 Years (i.e. 36 to 60 EMI payments) and Cash Security: 30%to 50% of the loan amount

Following table indicates the monthly repayment amount or EMIs against different loan amountsand tenors:

Loan Amount 36 months 48 months 60 months1,000,000 36,260 29,490 25,520

2,000,000 72,520 58,980 51,040

3,000,000 108,780 88,470 76,560

4,000,000 145,040 117,960 102,080

5,000,000 181,300 147,450 127,600

6,000,000 217,560 176,940 153,120

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7,000,000 253,820 206,430 178,640

Please note that the above figures are only indicative and subject to change at the sole discretionof Standard Chartered Bank without any prior notice.

Eligibility

Any Business fulfilling the following criteria can apply for this loan:

At least 3 years or more experience in the same business and Minimum annual turnoverof BDT 12,000,000 (One crore twenty lacs) only

Documents


Documents Proprietorship

Concern

Partnership

Firm

Private Limited

Company

1 Valid Trade License 2 3 Year Old Trade License 3 Latest 12 Month Bank Statement 4 National ID of Business Owners

5 Utility Bill of Business 6 TIN Certificate 7 Photograph of the Owners 8 Registered Partnership Deed N/A N/A9 Memorandum & Article of

Incorporation, Form X and XIIN/A N/A

10 Certificate of Incorporation N/A N/A 11 Board/ Partnership Resolution N/A 12 All Facility Related Offer Letters

Please note that the above requirements are not exhaustive and the bank may require furtherdocumentation for credit assessment on a case to case basis.

Charges

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Loan Processing Fee: 1% of the approved loan amount ,Early Settlement Charge: 5% onoutstanding amount if repaid at any given time before maturity of the loan and VAT andStamp Charge: All charges and fees are subject to 15% VAT, to be paid by the customer.Stamp charge will be at actual to be paid by the customer.

Loan Against Property

At Standard Chartered we strive to meet your needs in a competitive and dynamic businessenvironment. We understand that, as an SME, you require quick access to cash, and theflexibility to leverage your assets to fuel your business growth.

Standard Chartereds Loan Against Property provides the liquidity you need to grow yourbusiness or meet cash flow requirements. The loan enables you to leverage your property toobtain financing.

Features

Loan against property is very flexible and is designed to meet the different financial needs ofyour business. Want to expand your business leveraging on your existing property? With LoanAgainst Property you can undertake long term investments for expansion. In the process LoanAgainst Property also enables you to build up business equity by repaying the loan in monthlyinstallments.

Maximum Loan: BDT 28,000,000 (taka two crore eighty lac) only ,Minimum Loan: BDT1,400,000 (taka fourteen lac) only ,Interest Rate: 16% per annum ,Maximum % of loanamount against market value of the property:For Commercial Property 60% of propertys current market valueFor Residential Property 70% of propertys current market value

Following table indicates the monthly repayment amount or the equal monthly installments(EMI) is given below:

LoanAmount

60months

72months

84months

96months

108months

120months

2,500,000 60,800 54,250 49,675 46,325 43,825 41,900

7,500,000 182,400 162,750 149,025 138,975 131,475 125,70012,500,000

304,000 271,250 248,375 231,625 219,125 209,500

17,500,000

425,600 379,750 347,725 324,275 306,775 293,300

22,500,000

547,200 488,250 447,075 416,925 394,425 377,100

25,000,00 608,000 542,500 496,750 463,250 438,250 419,000

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0

28,000,000

680,960 607,600 556,360 518,840 490,840 469,280

Please note that the above figures are only indicative and subject to change at the sole discretion

of Standard Chartered Bank without any prior notice.

Eligibility

To be eligible to apply for this loan, the applicant must fulfill the following criteria:

At least 3 years of experience in same business and A minimum annualturnover of BDT 7,000,000 (Taka Seventy Lac) only

Documents


Documents Proprietorship Concern

Partnership Firm

PrivateLimitedCompany

1 Valid Trade License

2 3 Year Old Trade License 3 Latest 12 Month Bank

Statement

4 National ID of BusinessOwners

5 Utility Bill of Business

6 TIN Certificate

7 Photograph of theOwners

8 Registered Partnership

Deed

N/A N/A

9 Memorandum & Article ofIncorporation, Form Xand XII

N/A N/A

10Certificate ofIncorporation

N/A N/A

11Board/ PartnershipResolution

N/A

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12All Facility Related OfferLetters

Property Documentation Requirement:

1. For Government/Leasehold Land:1. Lease Deed/ Ownership Deed (photocopy) ,Baya Deed for at least 25 years, if any

(photocopy) ,Development Agreement/ Joint Venture Agreement with the landowner/ developer ,Power of Attorney (if any) ,Power of Attorney AcceptanceLetter from lessor of the property ,Mutation (any one)

2. For Private/Freehold Land:1. Ownership Deed (photocopy) ,Baya Deed for atleast 25 years, if any

(photocopy) ,Development Agreement/ Joint Venture Agreement with the landowner/ developer ,Power of attorney (if any) ,Recent Survey Report (i.e. MathParcha Duly attested) ,CS, SA, RS Parcha (PS, BS, RS Parcha- only applicablefor Chittagong) and Mutation Parcha and Mutation Proposal Sheet

Please note that the above requirements are not exhaustive and the bank may require furtherdocumentation for credit assessment on a case to case basis.

Charges

Loan Processing Fee: 1.5% of the approved amount ,Valuation Fee: BDT5000 per property ,Legal fee: BDT 7000 property ,Early Settlement Fee:5% on outstanding amount if repaid at any given time before maturityof the loan and VAT and Stamp Charges: All charges and fees aresubject to 15% VAT, to be paid by the customer. Stamp charge will beat actual to be paid by the customer.

Please note both valuation and legal fees are non-refundable and inclusive of processingfee of 1.5%+VAT of the loan. Both fees will be discounted from the said processing feeat the time of loan disbursement if the loan.

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Trade and Working Capital Financing

Here at Standard Chartered Bank your needs and our offers go hand in hand. If your businessrequires various combinations of banking facilities then our Trade and Working CapitalFinancing is here to provide you the perfect blend.

The lists of benefits that Standard Chartered Bank offers to face your needs are:

Letter of Credit ,Loan Against Trust Receipt (LATR) ,Revolving Loan

(RL) ,Local Bill Discounting (LBD) , Term Loans ,BankGuarantee ,Shipping Guarantee ,Foreign Exchange Forward andOverdraft Facilities

Features

The beneficial features of Standard Chartereds Trade and Working Capital are:

Facilities of up to BDT 120,000,000 (taka twelve crore) only for single customers and upto BDT 150,000,000 (taka fifteen crore) only for groups ,Fast access to trade lines andtransactions ,Dedicated experts to support with all your banking needs ,Easy access tooperational accounts ,Competitive rates for foreign exchange services and Wide optionsof instruments to serve as security or collateral

Eligibility

To avail these benefits a business must fulfill the following criteria:

Minimum Annual turnover of BDT 200,000,000 (Taka twenty crore)only and 3 years of business experience

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OTHER FACILITIES OFFERED FOR CUSTOMER OF SCBPhone Banking Service:

Standard Chartered Bank is the first bank in the country to offer automated 24-hour Phonebanking service. SCB phone banking services include balance inquiry, fund transfer, change ofTIN, chequebook request, statement request, foreign currency exchange rate etc. Phone linkservice is offered to all customers free of charge.

Money link Card:

Standard Chartered Bank launched Money link ATM in 1994, the first bank to offer this servicein Bangladesh. Money link ATM service is free of charge, offering the following features:

Cash Withdrawal & deposit ,Cheque deposit ,Cheque book request ,Change of PIN,Printing of mini-statement and Payment of utility bills.

Safe deposit locker:

Safe deposit locker offers the following facilities:

Personalized service from a dedicated locker officer ,Available to any customers (for anannual fee which depends on locker size) ,Accessibility anytime during the banking hoursand No additional charge for locker visit

Bank can lend money to the customer when they have enough deposit in their banks. So itsnecessary to please customer and give good service and let people know about their deposit and

the interest that the customer will get, by which they get delighted.

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Limitations

Human resource is limited to accomplish their expected services. Thats why theycant provide services properly. The numbers of ATM booths are very limited ofSCBs. Thats why; their client cant get their money wherever they want.

Another main problem is the limited number of branches. They have only 52 branchesand all of them around the big cities. Management Information System MISdepartment is not well organized. Public cant access their information or data if theywant.

Online banking is not available on the holyday which is not good for the bank. Theircustomers remain unsatisfied for this problem. Because if any necessary they cant doanything via online banking in holyday.

CSGs are not well trained which is another problem in their sales sector. CSGs areunable to give the proper information about the product or solution about customersproblems. Sometimes it seems that CSGs making their personal conversation withother on the official time period.

In case of taking load, customer use to fulfill banks requirement. They have to submitlots of papers as well there are many conditions, which makes the customer not to takeloan from SCB.

SCB has a higher rate of cash security and interest rate in case of SME banking. Its

also requires 3 years experience, which is not better for their customers.

In case of some loan and accounts opening SCB charges processing fee and settlementfee. Have to has 3 years experience, this condition may discourage their client to takeloan

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Major Findings

Ouroverall observation about SCB is based on this report. Now our observation about SEB isgiven bellow-

(a) Personal Banking: In personal banking sector SCB has different of accounts and loanswith different features. They have super savers account esavers account and its interestrate is up to 6% to 7%. Its additional services are totally free.SEB has different types of service like auto bills pay, dial-a draft, locker services,student files etc. Theirfixed deposit account has an affordable opening balance and theminimum balance is 50000 BDT, which is batter for the general people.It has a FCD (Foreign Currency Deposit Account) which has some special feature likeno extra fee is required. It is easy to convert FCD into Taka. There is no tax on interestetc.

SCB use to give auto loan which is up to 90% of vehicle value. It is maximum 2million. It has another four types of loan. These are Personal loan, Flexi load, Mortgageloan and Takeover loan. In case ofpersonal and flexi loan, the rang is BDT 60000- 1million up to 1 crore. Low interest rate, no personal security, fast loan approval process,option to pay- are some of the special feature about Mortgage loan. This features helps people to take loan from SCB. Though individual has to have maintained somerequirement but it is mostly available for all. Its interest rate is 12.50% to 14.25% basedon load amount.SCB offers to their customers to transfer their existing home loan to another bank orfinancial institution and there is no extra charge is needed.

(b) Priority Banking: Under priority banking customers get more and betterservices. It is a membership of some special benefits like platinum card benefits, 24hours access to cash by VISA sign, flexible banking hour (8.30am to 4.00pm and up to12.00 pm at Saturday). Members get 24 hours call center service. So priority banking is

a special part of SCB.

(c) SME Banking: This term SME is applicable only for small and mediumenterprise. SCB has some very special feature for SME banking. Business Installmentloan, Orjon, Loan against Property and Trade and Working Capital Finance are the mainpart. In case BIL, SCB use to give loan up to 7 million BDT which have very easycondition like minimum loan is only a million BDT, Cash security is 30% -50%. Forwomens enterprise, SCB has a loan named Orjon. It offers maximum 7,000,000 BDT

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and the interest rate is lower than the others, about 18.5%. But the cash security is notappropriate for this feature. LAPs feature is as same as BIL. But Trade and WorkingCapital Financing is really a special type of loan for business. It offers variouscombinations of loans at a time like LC, LATR, RL, Term Loan etc. People easilyaccess this loan and the amount is 120 million BDT to 150 million BDT. But to get this

applier has to has a minimum amount of turnover and experience of business.(d) Other Facilities: SCB offers some other facilities like safe deposit locker servicewhich is better than any other bank. Money link card like ATM, which is confirm yourmoneys mobility. It has excellent Phone Banking services which offers to their 24hours banking like chequebook request, foreign currency exchange rate etc.

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Recommendation

Considering the customer queries the following recommendations are made, which will benefitboth SCB and its customers.

As we have seen that 3pm to 5pm are the main rush hours, so necessary CSAs should beallocated in that time. Again, the holiday rush hour is slightly different from workingdays. So proper allocation of manpower can improve the service quality.

As the authorization is the most frequent problem, so the CSAs should be trained in sucha way so that they can solve all sorts of authorization related problem quickly.

It is a noticeable problem that the online remains down especially in holidays. So,necessary steps should be taken for smooth service.

The frequency of personal calls that falls under others category has a remarkablefigure. Now if service remains busy with the personal affairs the proper service cannot begiven.

Lost card report is a very irregular problem that can occur anytime. So the C/H should be

informed about the problem and its solution. Due to the wrong information provided by the direct sales executives, many unnecessary

calls come in the online service. So proper product information can be a better solution inthis situation.

In case of SME banking, cash security could be lower which will be better for thecustomers.

Another very important thing from my personal observation is that one person calls forseveral times for the same problem, which increases the call frequency. Proper assuranceand solution over phone can a better alternative to reduce extra calls.

Among all the CSAs some could very expert in some area, so in taking the considerationof the calling variation and frequency some adjustments could be made to improve theservice and reduce calls.

Maintaining MIS and a tabulation work can be maintained for better call handling.

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Proper division of call variation can reduce the load of one CSA to handle differentqueries.

Proper monitoring the activities of the call center could be better solution for handlingqueries.

In some cases, interest rate is higher or lower, it should adjust with that.

Minimum experience requirement condition in case of SME should exclude.

Priority banking should be expended to get better feedback from customers.

It is necessary to elaborate SCBs activities in more places, so they should open somemore branches in different places.

So, if this recommended part is maintained by the SCBs there service will be the best in thecountry as well as internationally.

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Conclusion

SCB is still regarded as a reliable bank and the growing number of its customers indicates itsacceptance among clients. It is very common statistical saying that it is 5 times costly to get anew customer than retaining the customer. It is also noted that getting a credit card and closing itis expensive. In both cases, a number of time consuming steps have to be taken from the bankand the customer. Since SCB has been able to increase the number of cardholders, it now shouldtake care the matter of customer satisfaction and quality of service.

It is very true that the most of the customers do not hesitate to term SCB as a better than otherbank. But it should be considered that the customers have very few choices of banks with whichthey can actually compare the online service of SCB. The nationalized banks of Bangladeshalready have earned a bad reputation in serving customers. Again among the foreign privatebanks like HSBC, AMEX are the banks that have widened operation like SCB. Other privatebanks have limited operation in limited locations. The local banks have recently focused theirattention to customer service, satisfaction and also credit card service. Moreover there are a goodnumber of private banks that are coming into the competition soon. Therefore it is better for SCBnot to let the situation be worst and should emphasize on serving customers effectively and

efficiently to ensure better service.