1

SUMMER TRAINING REPORT

On
STANDARD CHARTERED BANK
Comparative analysis of Standard
chartered bank services and insurance
products with other MNC banks

Submitted in partial fulfillment of the requirements of

Post Graduate Programme
by
Anurag Jindal
Batch PGP 2008-10
Roll No. PG 20082326

IILM Institute for Higher Education

Gurgaon
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Acknowledgement
I 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
support of IILM institute for Higher Education’s faculties and Staff for their continuous
guidance. Special thanks to Prof. Sanjeev Sharma, without whose valuable insights the project
would not have seen daylight. He was the faculty guide during my entire training period and
during the making of this project.

I also express my gratitude to my friends, colleagues and various other people who have been
key to my project and without whose valuable insights the all the project wouldn’t have been
completed. The comments and suggestions by all the people mentioned above has helped me a
lot to track through my project objective.

Regards

Anurag Jindal
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Preface
In modern world of comfort, consumers no longer select their banks based on how convenient
the location of bank’s branches is to their homes or offices, with the advent 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 of most of the Indians today. The banks are no longer the means of saving money and
taking 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. As such, they demand
financial advisors flexibly and easily, and they put a premium on 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 its market. 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 is expected 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
corporate customer 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, D-
mat account etc.) Small and Medium Enterprises, Banking and commercial Banking.

This project deals with finding the level of competition between the MNC banks and analyzing
the feasibility of services and insurance products offered by Standard Chartered.

A survey was conducted which included 100 respondents and conclusions were drawn from the
survey undertaken.
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Table of Content
Acknowledgement 2
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1. Preface 3
2. Industry study 7
• History 7
• History of Banking in India 8
3. Organization Structure 12
• Board Governance structure 12
• Company History 13
• Ownership patterns 14
• Mergers & Acquisitions 15
• Divisions & Departments 16
• People 18
4. Financial profile 22
• Our highlights and achievements in 2008 22
• Our priorities in 2009 22
• Positioning for the future 22
• Consolidated Balance sheet 24
• Consolidated Profit & loss Account 25
5. Products & Services 26
• Saving accounts 26
• Current accounts 29
• Insurance & investment plans 32
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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 banks 41

• Operations 45
Application of Chi-square 47
7. Introduction 49
8. Objectives 50
9. Methodology 51
10. Findings & Analysis 52
• Questionnaire on Banks 52
• Questionnaire on Insurance Companies 70
11. Conclusion & Recommendation 92
12. References 96
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Industry study
History
The first banks were probably the religious temples of the ancient world, and were probably
established sometime during the third millennium B.C. Banks probably predated the invention of
money. Deposits initially consisted of grain and later other goods including cattle, agricultural
implements, and eventually precious metals 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 attended and 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 Hammurabi's 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 port would 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 were recorded. 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 countries around the world found private-sector
solutions to problems of economic growth and development preferable to state-operated, semi-
socialist programs. This spurred 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 services proliferated 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 rates in the
United States declined from about 15% for two-year U.S. Treasury notes to about 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, particularly 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 in foreign stock markets.

Such growing internationalization and opportunity in financial services has entirely changed the
competitive landscape, as now many banks have 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-stop” supplier of both retail and wholesale financial services.

History of Indian Banking Industry

History 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 it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of 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. Between 1906 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, the Government of India came up with The
Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No. 23 of 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 by the 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 State Bank 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 the country was
nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the 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 of credit 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 India rose 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 faith and 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 shown a 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 Situation

Currently (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 and capital 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 retail banking, 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 of India 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
to hold 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 public sector banks (that is
with the Government of India holding a stake), 29 private banks (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 rating 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 history
History
Standard 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 in 1858,
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 and silk from
Yokohama.

• Played a major role in the development of trade with the East which followed the opening
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, Standard Chartered 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 extended the customer and geographic reach and broadened the product
range that Standard Chartered offers

Ownership patterns
Our approach
We have operated for over 150 years in some of the world’s most dynamic markets, leading the
way in Asia, Africa and the Middle East
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Our business
Standard 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. The Bank 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, generated from its Wholesale and Consumer Banking businesses. The Group has
over 1,600 branches and outlets located in over 70 countries.

Our principles
Leading 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 Group’s
employees are of 125 nationalities, of which 68 are represented among senior management.

Our business strategy

• Standard Chartered aims to be the world’s 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,
operational control and costs
• We do business in markets we understand intimately, with customers with whom we have long-
standing relationships, selling products we understand 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 a sustainable 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 strategy we will need to anticipate and respond to the extraordinary
changes around us
• We aim to make use of the emerging opportunities to deepen our relationship with customers,
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 Acquisitions

Date Location What has Done

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May Vietnam Standard Chartered announces raising strategic stake in Vietnam's Asia
2008 Commercial Bank to 15%
Jan South Korea Standard Chartered to acquire South Korea's Yeahreum Mutual Savings Bank
2008
Oct South Korea Standard Chartered First Bank Korea Ltd to acquire 80% stake in South Korea's
2007 A Brain, a funds administration company
Sep Global Signs agreement to buy American Express Bank, a wholly owned subsidiary of
2007 American Express Company, with operations in 47 countries
Sep Global Standard Chartered to acquire Pembroke, an aircraft leasing, financing and
2007 management firm
Sep Global Standard Chartered to acquire Harrison Lovegrove, a leading global oil and gas
2007 M&A advisory boutique
Aug India Standard Chartered announces acquisition of 49% strategic stake in India's UTI
2007 Securities, a leading local broking firm.
End Taiwan Launched tender offer for 100% in Hsinchu International Bank (USD1.2bn)
2006
Sep Pakistan Acquisition of 95.37% Union Bank (USD487m)
2006
Sep Indonesia Acquisition of 26% stake in PermataBank by the consortium of Standard
2006 Chartered Bank & PT Astra International Tbk (USD193m). Total stake held in
PermataBank by consortium today is 89%.
Jun Africa Acquisition of 25% in First Africa Group Holdings Ltd
2006
Dec N/A Acquisition of 20% stake in Fleming Family & Partners (USD78m)
2005
Sep China Acquisition of 19.99% of China Bohai Bank (USD123m)
2005
Aug Bangladesh Acquisition of Amex Bank's Bangladesh business (USD25m)
2005
Jun Vietnam Acquisition of 8.56% stake in Asia Commercial Bank (USD22m)
2005
Apr Global Acquisition of a minority stake (6%) in Travelex as part of Apax led consortium
2005
Jan South Korea Acquisition of Korea First Bank (USD3.3bn)
2005
Dec Global Acquisition of ANZ's Project Finance business with assets (USD15m)
2004
Nov Indonesia Acquisition of 63% stake in PermataBank by the consortium of Standard
2004 Chartered Bank & PT Astra International Tbk (USD355m)
Sep Hong Kong Acquisition of Chase Manhattan Card Company (USD1.32bn)
2000
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Jul Global Acquisition of ANZ Grindlays (USD1.34bn)

2000
Jun Hong Kong Acquisition of PrimeCredit
2004

Divisions and Departments

The whole working of Standard Chartered is being divided into four parts:

Personal Banking

Private Banking

SME Banking

Wholesale Banking

Personal Banking

This 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,
Platinum Card, 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 Secure Code

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 Banking

This type of banking includes various aspects as: Managing your wealth, Investor’s lounge,
learning centre, concierge and online services.

SME Banking

SME 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 Banking

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

People
Our 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 Group’s footprint
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• Strengthened our leadership capability through the Great Managers and Leadership
Development programmes which covered 4,000 and 1,500 managers, respectively

• Launched a refresh of the Group’s 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 Group’s 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 Group’s values to embed
our company culture. By focusing on building great leaders and engaging our employees, we
continue to drive performance.
Global representation of female Employees 46% Percentage of employees who received training
90%

Our people, our values

With 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 Inclusion

With 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 opened a number of day care centres in India
and a crèche in Sri Lanka. 2008 was a year of focusing on the key, unique elements that make
the Group successful. By creating 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 directors

Our 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 Sands Richard Meddings Steve Bertamini

Group Finance Director Group Chief Executive Group Executive Director, Consumer Banking

Gareth Bullock
Group Executive Director, Africa, Middle East, Europe and the Americas

Non-Executive Directors
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Jamie Dundas Val Gooding Rudy Markham

Non-Executive Director Non-Executive Director Non-Executive Director

Ruth Markland Sunil Mittal John Paynter

Non-Executive Director Non-Executive Director Non-Executive Director

Paul Skinner Oliver Stocken

Non-Executive Director Non-Executive Director

Our global team

Our employees have more than doubled in number over the past five years. Nearly half 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 Profile
“We 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
the challenges 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-prime crisis on
the Group
• We took advantage of our strength to add businesses and talent, wherever appropriate
• We continued with the integration of our investments in Korea, Taiwan, Pakistan and, on a
global basis, American Express Bank (AEB)
• We further 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 execution of 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 future

Delivering strong results during a time of unprecedented turbulence. Continued focus on the
fundamentals of banking will assure the future for our customers and our business.
Financial review

Normalised earnings
per share
This 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.
Normalised earnings
per share*
174.9cents
Aim
To consistently deliver year-
on-year growth in normalised
earnings per share.
Analysis
During 2008, normalised
earnings per share grew one
per cent, with strong growth
in Wholesale Banking offset
by a slowdown in Consumer
Banking.
Source
Has been calculated from the
consolidated balance sheet.
Operating income
Operating income is calculated as
the sum of the net interest income,
net commission income, net
trading income, and other
operating income.
Operating income
$13,968m
Aim
To sustain organic momentum
Analysis
During 2008, operating income
grew 26 per cent, with seven
of nine geographic segments each
delivering over $1 billion of
income.
Source
Has been calculated from the
consolidated balance sheet.
Tier 1 capital ratio
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.
Tier 1 capital ratio**
10.1%
Aim
To maintain Tier 1 capital ratio
between seven and nine per cent
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
Source
Has been calculated from the
consolidated balance sheet.
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Normalised return
on shareholders’
equity
Normalised return on
shareholders’ equity is
calculated as the normalised
profit attributable to
ordinary shareholders as a
percentage of average
shareholders’ equity.
Normalised return
on shareholders’
equity 15.2%
Aim
To deliver superior returns
on shareholders’ equity
compared to the industry
average.
Analysis
During 2008, the normalised
return on shareholders’
equity declined against 2007
as normalized earnings, with
growth of three percent, was
affected by the slowing
performance in the second
half of the year, whilst
average equity grew Six per
cent.
Source
Has been calculated from
the consolidated balance
sheet.
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Standard Chartered had another year of strong financial performance in 2008. The
performance was particularly pleasing as it came in a year of global financial upheaval.
The Group has not escaped unscathed from the biggest financial crisis of 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 and stand out in the global financial landscape. Last year’s
performance can be summed up by the following achievements:

Standard Chartered PLC

Consolidated balance sheet
As at 31 December, 2008

Assets 2008 2007

$ Million $ Million

Cash and balances at central banks 24,161 10,175

Financial assets held at fair value through profit or loss 15,425 22,958
Derivative financial instruments 69,657 26,204
Loans and advances to banks 46,583 35,365
Loans and advances to customers 174,178
154,266
Investment securities 69,342 55,274
Interests in associates 511 269
Goodwill and intangible assets 6,361 6,374
Property, plant and equipment 3,586 2,892
Current tax assets 764 633
Deferred tax assets 660 593
Other assets 20,374 11,011
Prepayments and accrued income 3,466 3,857

Total assets 435,068 329,871

Liabilities
Deposits by banks 31,909 25,880
Customer accounts 234,008 179,760
Financial liabilities held at fair value through profit or loss 15,478 14,250
Derivative financial instruments 67,775 26,270
Debt securities in issue 23,447 27,137
Current tax liabilities 512 818
Deferred tax liabilities 176 33
Other liabilities 17,363 14,742
Accruals and deferred income 4,132 3,429
Provisions for liabilities and charges 140 38
Retirement benefit obligations 447 322
Subordinated liabilities and other borrowed funds 16,986 15,740

Total liabilities 412,373

308,419

Equity
Share capital 948 705
Reserves 21,192 20,146

Total parent company shareholders’ equity 22,140 20,851

Minority interests 555 601

Total equity 22,695 21,452

 26

Total equity and liabilities 435,068 329,871

Standard Chartered PLC

Consolidated Profit and loss Account
For the year ended 31December, 2008
2008 2007
$ Million $ Million

Interest income 16,378 16,176

Interest expense (8,991)
(9,911)
Net interest income 7,387 6,265
Fees and commission income 3,420 3,189
Fees and commission expense (479) (528)
Net trading income 2,405 1,261
Other operating income 1,235 880
Total non-interest income 6,581 4,802
Operating income 13,968 11,067
Staff costs (4,737) (3,949)
Premises costs (738) (592)
General administrative expenses (1,711) (1,329)
Depreciation and amortisation (425) (345)
Operating expenses (7,611) (6,215)
Operating profit before impairment losses and taxation 6,357 4,852
Impairment losses on loans and advances and other credit$
risk provisions (1,321) (761)
Other impairment (469) (57)
Profit from associates 1 1
Operating profit 4,568 4,035
Rights issue option 233 -
Profit before taxation 4,801 4,035
Taxation (1,290) (1,046)
Profit for the year 3,511 2,989
Profit attributable to:
Minority interests 103 148
Parent company shareholders 3,408 2,841
Profit for the year 3,511 2,989
Earnings per share:
Basic earnings per ordinary share (cents) † 202.4 176.0
Diluted earnings per ordinary share (cents) † 201.3 174.2
Dividends per ordinary share †† :
Interim dividend paid (cents) 19.30 17.38
Final proposed dividend* (cents) 42.32 42.27
61.62 59.65
Total dividend:
Interim dividend paid ($ million) 364 324
Final proposed dividend* ($ million) 801 793

1,165 1,117
 27

Products and services

Savings accounts
aXcessPlus Account

Standard 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 14 million outlets across the world.
And that’s not all, with the aXcessPlus account you 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 the best 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.
 28

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 locations
• Phone 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
• Full suite 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 of the 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.
 29

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

No Frills Account

If you want banking made easy, we give simple solutions. The Standard Chartered Bank No
Frills Account is designed to meet your basic banking requirements. You need to maintain an
average quarterly balance of just Rs. 250 with this account.

What’s 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 free transactions per month at any Standard Chartered Bank channel (Online Banking,
Phone Banking, ATM & Branch)
• Anywhere banking – Access your account from any branch of 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 Account

Introducing 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
 30

• 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 of Rs. 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 Account

Introducing a unique account that offers you a double advantage – it lets you earn the high
interest rate of a fixed deposit while you enjoy the flexibility of a savings 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 money whenever you need it
• Deposit more money in your account to earn a higher rate of interest by placing
subsequent deposits
• Get account related information at your fingertips with Phone Banking

Current Accounts
Business Plus Account

Standard Chartered Bank presents the Business Plus Account. A current account that helps you
get more out of your business.

Special Features
 31

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 across the country, irrespective of the branch where your account
was opened.

Additional features

Whatever your banking requirements our Business Plus Account will 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. Just call / fax us your request.
• FREE Internet Banking Access your account any time of the 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 more 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
 32

o Individuals / Sole Proprietorships / Partnerships / Associations / Companies-

Private & Public Ltd. / Societies / Trusts / HUFs
• This account can be opened Singly or 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.

Enhanced Business Plus Account

You 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 most effectively.

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 Features

Whatever the nature of your business, controlling costs is always a top priority. Enhanced
Business Plus Account offers a range of unmatched opportunities for you 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
of free 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 across India. The funds can be transferred within 24
hours*.
• FREE Doorstep Banking You can request for cash pick-up and delivery, cheque pick-
up, 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 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.
 33

• Quick transfer You can transfer funds between your accounts with our bank – almost
instantaneously and free
• FREE Internet Banking Access your account any time of the 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 more with 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 also get 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 Average Quarterly Balance

Enhanced Business Plus 100 Rs.100,000
Enhanced Business Plus1000 Rs.10,00,000

Eligibility

Eligibility criteria for a Enhanced Business Plus Account:

• The Enhanced Business Plus Account is only available to the following:

o Resident Indians.
o Individuals / Sole Proprietorships / Partnerships / Associations / Companies-
Private & Public Ltd. / Societies / Trusts / HUFs.
• This account can be opened Singly or Jointly

Insurance & Investment plans

Protecting your future
We are dedicated to protecting you and your family, as well as your hard earned assets and future
earnings.

To take care of all your insurance requirements, we bring you a variety of products from Bajaj
Allianz Life Insurance Company & Royal Sundaram General Insurance Limited. We offer:
 34

• 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 & services to protect
your world

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

Planning for your financial goals

Standard 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 Insurance
You can ensure your peace of mind with a wide range of General Insurance products* available
conveniently at Standard Chartered Bank.

Key Plans

Some of the key General Insurance products available at Standard Chartered:

• Health shield: A comprehensive health insurance package designed to offer complete

protection to the insured 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.
• Double protect: “Double Protect” is a 2 years Health Insurance plan. The plan offers
reimbursement of Hospitalisation expenses in the event of illness or accident
• Hospital Cash: This Plan is de signed to pay daily Hospital Cash benefits in the event of
an accident or illness and hence getting Hospitalised.
 35

• Secure All: It’s 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 Sundaram
Royal 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 products in 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 of the same,
please contact your Customer Relationship Manager at your nearest Standard Chartered Bank
branch today!
*The General Insurance products listed above are underwritten by Royal Sundaram Insurance
Company Limited. Insurance is the subject matter of the solicitation. Please read the disclaimer

Disclaimer

General Insurance 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
applicable to 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 application, 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.
 36

Life Insurance
Standard Chartered offers you a wide range of Life Insurance Products from Bajaj Allianz Life
Insurance Company, one of India's leading Insurance companies.

At Standard 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 that is just right for you.

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

• New Unit Gain: An investment plan that creates value for every rupee you invest
o It is a unit linked regular premium plan.
o 96% of First Year’s Regular Premium is allocated to funds in the following
manner
 Of the first year’s Regular Premium, 45% is allocated to Fund(s)
immediately
 5.1% of the First Year’s Regular Premium will be allocated to funds every
year starting from 4th policy year till the end of 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 child’s 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 as a % 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 Death Benefit which is Sum Assured + Fund value
o The allocation to funds starts from 80% and keeps reducing depending on the
premium size
 37

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

• Bajaj Allianz Care First: A medical insurance plan that allows you to renew till the
age of 65 years. Premium guaranteed for the length of the each policy term of 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 Specific Day Care treatments requiring less than 24 hrs. Hospitalization is also
covered under this plan.

• Protector: A Mortgage Reducing Term Insurance Plan. Make you’re 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 Life availability - 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 to take 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 child’s education and ambitions. This
policy is available in 4 Options
o ChildGain 21 and ChildGain 21 Plus
 Child's education Plan upto Graduation
 38

 105% Guaranteed Payouts + Bonuses

o ChildGain 24 and ChildGain 24 Plus
 Child's education Plan upto Post Graduation
 115% Guaranteed Payouts + Bonuses
o Family Income Benefit: 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
o Start of Life Benefit: Enables a smooth start to your child’s 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: Family Income 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 at the end of the
term.
o Single premium payment option available.
o The only pure term plan in the market to provide Hospital Cash Benefit.

Bajaj Allianz
Bajaj 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 your family and yourself.
Bajaj Allianz Life Insurance offers customized insurance coverage plans. To avail of the same,
please contact your Customer Relationship Manager 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 customers are 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
 39

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 accept any liability for loss or damage of whatsoever nature,
which may be attributable to your application, its receipt, payment of claims under it or the
contract of insurance. 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.

Competitors
As 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 Bank

Citibank is a major international bank, founded in 1812 as the City Bank of New York, 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 around 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.
 40

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 the global 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 Wales in 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 the current 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 and financial
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 February 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 its conservative 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 not go
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 Bank 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
 41

Hong Kong's local currency in its own name. Since the end
of 2005, HSBC has been the largest banking group in the
world by Tier 1 capital.

The HSBC Group has a significant 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 and 128 million customers worldwide, HSBC arguably has the most international
presence among the world's multinational banking giants.

The HSBC Group operates as a number of local banks around the world, which explains its
advertising tagline "The World's Local Bank." Outlined below are countries which, in 2007,
generated the top 20 profit before tax figures, with the addition of the United States as specific
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 Stock

Exchange 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 be
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 of Royal
Bank of Scotland Group, the Government of the Netherlands, and Banco Santander. The bank
 42

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.

In the 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 to its financial bail-out of the Scottish bank. The process of integrating some of ABN
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 as derivatives, corporate
finance, wealth management, retail banking, fund management, and transaction banking.

Deutsche Bank’s 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 Bank’s mission statement is: “We compete to be the leading global provider of
financial solutions for demanding clients creating exceptional value for our shareholders and
people.” The bank’s 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
 43

Comparison on the basis of Savings Account

Factors Stan Chart Citi Bank HSBC Bank Deutsche ABN AMRO
Bank Bank
Avg.
Access Citi Bank Savings Normal Rs.25000 Normal Rs.1Lac Flex Privilege
Quarterly PlusR
Balance in s.250 Rs.25000 Rs.50000
Saving A/C 00 Power Vantage Plus Rs. 3Lac
Citi Bank Gold Rs.1Lac Flex Plus
Super
Rs.50000 Premium Rs.15000
value
Rs.20Lac
Rs.50 Premium Rs.25Lac
000
Flex Adv
Rs.10000
NEFT Free Free Free Free
Free
RTGS Free Free Free Free
Free
Relationship Yes(AQB more Yes(AQB more than Yes (AQB more No
No than 1lakh) 1lakh) than 3lakh)
Manger
Credit Card No No Yes (AQB more No
No than 3lakh)
Door step Free (AQB more Free (AQB more Yes (AQB more Free (AQB more
Free (AQB than Rs.1lakh) than Rs. 1lakh) than Rs.3lakh) than Rs.50000)
banking more
than
Rs.50
000)
Financial Yes Yes Yes No
No
Consultant
Online Yes Yes Yes Yes
Yes
Banking

Comparison on the basis of Current Account and other factors

Factors Stan Chart Citi Bank HSBC Bank Deutsche ABN AMRO
Bank Bank
Avg. Citi business less Business Vantage Rs. Value+Silver40
BP50 than Rs.1lakh 1lakh or more db more than
Quarterly Rs.50000 S(Silver)75 Rs.40000
Balance in Rs.75000or
Citi business Business Select
Current Rs.1lakh or more Rs.5lakh or more more Value+Gold100
EBP100
A/C Rs.1lakh Rs.1lakh or more
Citi gold business db
Rs.15 lakh or more P(Platinum) Value+Gold500
EBP1000 250 Rs.5 lakh or more
Rs.10 lakh Rs.2.5lakh
 44

or more

db
G(Gold)500
Rs. 5lakh or
more
At par Yes Yes Yes Yes
Yes
cheque
book
ATMs & Yes Yes Yes Yes
Yes
Debit Card

D/D at Free upto Rs.5lakh Unlimited free in Unlimited Free only in

Free upto p.m. AQB less than every account free in every Value+Gold500
their Banks Rs.25000 1lakh account A/c
p.m.in
BP50 A/c Free upto Rs.50lakh
p.m. AQB more than
Unlimited 1lakh
Free AQB
A/c more Unlimited free with
than Rs. AQB more than 15
1lakh lakh

D/D at Free upto Rs. 25 lakh 0.25%(Min Rs.100, Totally free Free upto
Free upto where AQB is more Max Rs.5000) in at SBI Rs.50000 in every
other Rs.50lakh than 1lakh every A/c locations in A/c
locations p.m. in every A/c
EBP100 Free unlimited where but there are
AQB is more than Charges if it
Free upto 15lakh is not SBI.
Rs.75lakh
p.m. in
EBP 1000

Branches 25 metros 30 metros 20 metros 17 metros

68 metros 35 India 39 India 35 India 19 India

83India

ATMs 376 158 126 78

165

Charges for Rs.100 p.a. Rs.150 p.a. Rs. 200p.a. Rs.200 p.a.
Rs. 200p.a.
ATM

Charges Rs.50 per trans Rs.50 per trans 2 2 transactions free

4transacti transactions per month and
per ons free free per then rs.40 per
transaction
 45

from month transaction

per month
ATMs of and then
other banks Rs.50per
transactio
n

Locker No Yes No No
Yes Rs
facility 2000 p.a.

Avg. 10 am – 2pm 9am – 4pm 10am – 7pm 10 am – 7pm

10 am –
Banking 7pm
hrs.
24c hrs No No No No
Yes
branch

Min 10000 10000 10000 10000

10000
balance
saving
Charges for 250per month 300per quarter 350 per 200 – 1800 per
750 per quarter month
not quarter
maintainin
g min
balance
Flexibility No Yes No No
Yes
of interest
rates

Comparison on the basis of insurance products

Term insurance

Factors Bajaj Allianz HDFC Birla Sun Life

Entry age 18-50 years 18-60 years 18-55 years
Minimum sum 100000 100000 250000
assured
Minimum term 5years 5years 5years
Max. term 40years 30years 25years
 46

Child Care plan

Factors Bajaj Allianz HDFC Birla Sun Life

Entry age 18-60years(Parent) 18-60years(Parent) 18-60years(Parent)
0to13years(child) 0to13years(child) 30daysto13years(child)
Min. term 5years 10years 5years
Max. term 21years 25years 23years

Comparison on the basis of Financial Ratios

Factors Standard HSBC Citi ABN AMRO

Chartered
ROE 15.47 6.48 -0.003 -10.64
ROA 0.9 0.3 -0.002 -0.35
Expense Ratio 6.92 6.06 5.14 1.46
Asset utilization 6.12 6.09 5.13 1.11
Net Interest 4.28 3.74 5.16 1.54
Margin

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.

Operations

The bank is a leading player throughout the developing world.

Standard Chartered Bank 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.
 47

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 presence

Asia Pacific
I P
ndia akistan
A I P
fghanistan ndonesia hilippines
A J S
ustralia apan ingapore
B L S
angladesh aos outh Korea
B M S
runei Darussalam acau ri Lanka
C M T
ambodia alaysia aiwan
C M T
hina auritius hailand
H N V
ong Kong epal ietnam

Africa The Middle East

S B
ierra Leone ahrain
B S E
otswana outh Africa gypt
C T J
ameroon anzania ordan
C T L
ote d'lvoire he Gambia ebanon
G U O
hana ganda man
K Z Q
enya ambia atar
N Z U
igeria imbabwe AE
 48

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

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

Application of Chi-square for checking the relationship

between age and types of accounts offered
A random poll of 309 customers is taken resulting in the following table.

Types of Accounts offered

Age Current A/c Savings A/c Fixed deposit A/c Total

 49

0-20 26 95 18 139
20-40 41 40 20 101
>40 24 13 32 69
91 148 70 309
HYPOTHESIZE

Step1: The hypothesis as follows

Ho: Type of Accounts offered is independent of age

Ha: Type of Accounts offered is not independent of age

Step2: Contingency table for observed frequency:

Age Current A/c Savings A/c Fixed deposit A/c Total

0-20 26 95 18 139
20-40 41 40 20 101
>40 24 13 32 69
91 148 70 309

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 Current A/c Savings A/c Fixed deposit A/c Total

0-20 40.9 66.58 31.49 139
20-40 29.74 48.38 22.88 101
>40 20.32 33.05 15.63 69
91 148 70 309

e11 = 139*91/309=40.9 e12= 139*148/309= 66.58 e13= 139*70/309= 31.49

e21= 101*91/309= 29.74 e22=101*148/309= 48.38 e23=101*70/309= 22.88

e31= 69*91/309= 20.32 e32= 69*148/309= 33.05 e33=69*70/309= 15.63

Step5: Table for the calculation of observed X2 is:

O E (O-E)2 (O-E)2/E
26 40.94 223.20 5.45
95 66.58 807.70 12.13
18 31.49 181.98 5.78
41 29.74 126.79 4.26
40 48.38 70.22 1.45
 50

20 22.88 8.2944 0.36

24 20.32 13.54 0.67
13 33.05 402 12.16
32 15.63 267.98 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.

Introduction
At IILM Business School, the PGP programme has been designed keeping in mind the
requirement 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.
 51

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 the reader the outlines of my Management
Research Project. I have completed my Summer Internship from Standard Chartered Bank,
Gurgaon branch.

My summer internship was 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.

Objectives
There 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

 52

• To identify the areas where SCB could improve

• To find out the satisfaction level of customers.

• To know about the various services provided by MNC banks

Methodology
Since 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
 53

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 Sampling
Sample 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 was entered into
Microsoft Excel and was prepared for analysis.

5. Data Analysis: The data so collected was analyzed in Microsoft Excel with the help 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 the organization and thereby devise strategies to
generate new business from that potential segment

Findings and Analysis

The findings and analysis has been done through the questionnaire which is as follows:
 54

Questionnaire of Banks
Note: Please fill this questionnaire carefully as we will be using this for a project

Demographics

1. Name __________________________________________________

2. Age

a) Below 20 years b) 20 – 40 years

c). 40 – 60 years d) Above 60 years

3. Sex

a) Male b) Female

4. Marital Status
a) Married
b) Single

5. Occupation
a) Student b) Service
c) Business d) Others ______________________

6. Annual Income
a) Below Rs 2, 00,000 p.a.
b) Between Rs 2, 00,000 & 5, 00,000
c) 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
 55

1. Location

2. Ambience

3. Timings

4. Products
Offered

5. Clarity of
Information

6. Service

9. Rate the following banks on a scale of 1 to 5 of satisfaction level.

(Please tick the appropriate box, 1 being the lowest and 5 the highest)

Rating Scale

Bank 1 2 3 4 5

1.Standard
Chartered

2. Citibank

3. ABN Amro

4. HSBC

10. Type of services availed in the above mentioned bank.

Bank SCB ABN AMRO HSBC Citibank

Services
 56

1.Saving A/c

2.Current A/c

3.Term Deposit

4.Credit cards

Findings
Age
 57

Age

Cumulative
Frequency Percent Valid Percent Percent
Valid Below 20 years 15 15.0 15.0 15.0
Between 20 and 40 years 26 26.0 26.0 41.0
Between 40 and 60 years 40 40.0 40.0 81.0
Above 60 years 19 19.0 19.0 100.0
Total 100 100.0 100.0

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
 58

Occupation

Cumulative
Frequency Percent Valid Percent Percent
Valid Student 13 13.0 13.0 13.0
Service 47 47.0 47.0 60.0
Business 36 36.0 36.0 96.0
Others 4 4.0 4.0 100.0
Total 100 100.0 100.0

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

Annual Income
 59

Annual Income

Cumulative
Frequency Percent Valid Percent Percent
Valid Dependant 13 13.0 13.0 13.0
Below 2 Lakh 11 11.0 11.0 24.0
Between 2-5 Lakh 44 44.0 44.0 68.0
Above 5 Lakh 32 32.0 32.0 100.0
Total 100 100.0 100.0

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
 60

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 scale of five factors namely lowest,
low, average, high and highest. The following results were obtained for each of these factors:

1. Location

Location

Cumulative
Frequency Percent Valid Percent Percent
Valid Average 11 11.0 11.0 11.0
High 50 50.0 50.0 61.0
Highest 39 39.0 39.0 100.0
Total 100 100.0 100.0

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
 61

Ambience

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

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

3. Timings
 62

Timings

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

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

4. Products Offered
 63

Product Offered

Cumulative
Frequency Percent Valid Percent Percent
Valid Low 17 17.0 17.0 17.0
Average 64 64.0 64.0 81.0
High 17 17.0 17.0 98.0
Highest 2 2.0 2.0 100.0
Total 100 100.0 100.0

From the above chart I could say the products offered by the banks averagely
affect the customers of multinational banks.

5. Information
 64

Information

Cumulative
Frequency Percent Valid Percent Percent
Valid Average 15 15.0 15.0 15.0
High 74 74.0 74.0 89.0
Highest 11 11.0 11.0 100.0
Total 100 100.0 100.0

From the above chart I could say that Information available to the customers
affects their decisions about the multinational banks.

6. Service
 65

Service

Cumulative
Frequency Percent Valid Percent Percent
Valid Average 1 1.0 1.0 1.0
High 40 40.0 40.0 41.0
Highest 59 59.0 59.0 100.0
Total 100 100.0 100.0

From the above chart I could say that the services offered by the multinational
banks are the major factor which affects the customer’s decisions.

Rating of Banks
 66

1.Standard Chartered Bank

Standard Chartered

Cumulative
Frequency Percent Valid Percent Percent
Valid Low 3 3.0 3.0 3.0
Average 32 32.0 32.0 35.0
High 50 50.0 50.0 85.0
Highest 15 15.0 15.0 100.0
Total 100 100.0 100.0

From the chart I could say that Standard chartered is the “high” rated bank
according to the people

2.ABN Amro
 67

ABN Amro

Cumulative
Frequency Percent Valid Percent Percent
Valid Average 38 38.0 38.0 38.0
High 60 60.0 60.0 98.0
Highest 2 2.0 2.0 100.0
Total 100 100.0 100.0

From the above data I could say that ABN AMRO is also having a good reputation
in the market.

3.Citibank
 68

Citibank

Cumulative
Frequency Percent Valid Percent Percent
Valid Average 30 30.0 30.0 30.0
High 66 66.0 66.0 96.0
Highest 4 4.0 4.0 100.0
Total 100 100.0 100.0

From the above figure I could say that Citi Bank is also a good bank due to its
products and services.

4.HSBC
 69

HSBC

Cumulative
Frequency Percent Valid Percent Percent
Valid Average 6 6.0 6.0 6.0
High 71 71.0 71.0 77.0
Highest 23 23.0 23.0 100.0
Total 100 100.0 100.0

From the above chart I could say that people are also satisfied with HSBC among
the multinational banks.

Services availed
 70

1. Standard Chartered

From the above data I could say that Savings Account constitute the major
proportion among all the products and services offered.

2. ABN AMRO
 71

From the above I could say that both Current Account and Savings Account
contributing to ABN AMRO.

3. HSBC
 72

From the above I could say that Savings Account contribute majorly to HSBC.

4. Citi Bank
 73

From the above I could say that Citi Bank is mainly having the savings account
and current account customers.

Questionnaire of Insurance
 74

Note: Please fill this questionnaire carefully as we will be using this for a project

Demographics

1. Name __________________________________________________

2. Age

a) Below 20 years b) 20 – 40 years

c). 40 – 60 years d) Above 60 years

3. Sex

a) Male b) Female

4. Marital Status
a) Married
b) Single

5. Occupation
a) Student b) Service
c) Business d) Others ______________________

6. Annual Income
c) Below Rs 2, 00,000 p.a.
d) Between Rs 2, 00,000 & 5, 00,000
e) Above 5, 00,000

7. Contact Number/Email ______________________

 75

8. Your criteria for choosing a particular Insurance Company:

(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

1. Location

2. Ambience

3. Timings

4. Variety Offered

5. Clarity of
Information

6. Service

9. Rate the following banks on a scale of 1 to 5 of satisfaction level.

(Please tick the appropriate box, 1 being the lowest and 5 the highest)

Rating Scale

Insurance 1 2 3 4 5
Companies

1. Bajaj Allianz

2. ICICI

3. HDFC

4. Birla Sun life

10. Type of services availed in the above mentioned Insurance company:

 76

Insurance Company Bajaj ICICI HDFC Birla Sun life

Allianz

Services

1.Term Insurance

2. Cash back plan

3.ULIPs

4.Child Care plan

Age
 77

Age

Cumulative
Frequency Percent Valid Percent Percent
Valid Below 20 years 15 15.0 15.0 15.0
Between 20 and 40 years 26 26.0 26.0 41.0
Between 40 and 60 years 40 40.0 40.0 81.0
Above 60 years 19 19.0 19.0 100.0
Total 100 100.0 100.0

From the above chart I could say that the data has been taken mostly from the
people of 40-60 years.

Occupation
 78

Occupation

Cumulative
Frequency Percent Valid Percent Percent
Valid Student 13 13.0 13.0 13.0
Service 47 47.0 47.0 60.0
Business 36 36.0 36.0 96.0
Others 4 4.0 4.0 100.0
Total 100 100.0 100.0

From the above chart I could say that the most of the respondents are service
people.

Annual Income
 79

Annual Income

Cumulative
Frequency Percent Valid Percent Percent
Valid Dependant 13 13.0 13.0 13.0
Below 2 Lakh 11 11.0 11.0 24.0
Between 2-5 Lakh 44 44.0 44.0 68.0
Above 5 Lakh 32 32.0 32.0 100.0
Total 100 100.0 100.0

From the above data I could say that people whose annual income is between 2-5
lakh are taken as respondents.

Factors affecting the habits of people

 80

The insurance 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 scale
of five factors namely lowest, low, average, high and highest. The following
results were obtained for each of these factors:

1. Location

From the above chart I could say that location does have an impact on the
customers of insurance but this impact is very less.
 81

2. Ambience

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

3. Timings
 82

From the above figure I could say that timings is averagely and highly affected the
customers of multinational banks.
 83

4. Variety Offered

From the above chart I could say the products offered by the banks averagely
affect the customers of multinational banks.
 84

5. Information

From the above chart I could say that Information available to the customers
affects their decisions about the Insurance Companies but on a highest level.
Because information about the Insurance services affects their buying decisions.

6. Service
 85

From the above chart I could say that the services offered by the Insurance
Companies are the major factor which affects the customer’s decisions.

Rating of Insurance company

1. Bajaj Allianz
 86

From the chart I could say that Bajaj Allianz is the “high” rated bank according to
the people

2. ICICI
 87

From the above data I could say that ICICI is also having a good reputation in the
market.

3. HDFC
 88

From the above figure I could say that HDFC is also a good bank due to its
services.

4. Birla Sun Life

 89

From the above chart I could say that people are also satisfied with Birla Sun Life
among the multinational banks.

Services availed
1. Bajaj Allianz
 90

From the above data I could say that ULIPS constitute the major proportion among
all the Insurance Plans offered by Bajaj Allianz. Moreover Child Care and Cash
Back plan also contributing some portion to the Bajaj Allianz.

2. ICICI
 91

From the above I could say that ULIPS contributing maximum to the ICICI Life
Insurance Company.

3. HDFC
 92

From the above I could say that Child Care contributes maximum to HDFC.

4. Birla Sun Life

 93

From the above I could say that Birla Sun Life is mainly having the ULIPs
customers.
 94

Conclusion & Recommendation

Service with a smile: today’s finicky banking customer will settle for nothing less. He’s come to
realize, somewhat belatedly, that he is king. He demands that banks roll out not just world-class
products and services, but a red carpet as well. His choice of one entity over another as his
principal bank is determined by considerations of service quality rather than any other factor. He
wants competitive loan rates, yes, but he also wants his loan or credit card application processed
in double-quick time. He insists that he be promptly informed of changes in deposit rates and
service charges, and he bristles with ‘customery’ rage if his bank is slow to redress any grievance
he may have. He cherishes the convenience of impersonal Net banking, yes, but during his
occasional visits to the branch, he also wants the comfort of personalized, human interactions
and facilities that make his banking experience pleasurable. In short, he wants a financial house
that will more than just clear his cheques and update his passbook: he wants a bank that cares–
and for more than just his custom. He wants a customer-friendly bank.

Service Quality

This is an index of the core of what makes a bank customer-friendly: its overall service
standards, rated for ease of opening an account; how courteous, accessible and knowledgeable its
staff are; transaction time for services; how innovative the bank is in introducing products and
services; how proactively the bank informs customers of changes in deposit rates or service
charges; how quickly it redresses grievances; how likely it is to retain customers; and how
probable it is that its customers will recommend the bank to others.

Branch Facilities

Walk into any branch of a multinational or leading Indian private bank, and you’ll believe you’re
in a plush country club. Many other banks, of course, have miles to go in this sphere, but there’s
a growing realizations among them that offering a pleasant banking ambience–with comfortable
seating, air-conditioning, restroom and drinking water facilities–and easy, uncluttered access to
bank stationery makes for good business.

ATM Service

By automating the most common day-to-day banking transactions–cash withdrawal, cheques

deposits and statement generation–ATMs have, in a sense, liberated customers from time-
wasting branch visits and surly staff.
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Increasingly, however, banks are waking up to the merits of an expansive, glitch-free ATM
network. They’re investing in technology (read newer machines), so they’ll be fewer card rejects.
And they’re entering into tie-ups with one another to share their ATM network (for a nominal
fee, to be paid by customers); which means you no longer have to bear the agony of having to
stand in overlong queues at your bank’s ATMs and gape at a state-of-the-art SBI ATM nearby
that forever seems empty.

The Future

The buzzword in banking circles today is ‘90 days’: the time it will take banks to move from
product conception to delivery.

That sounds excellent but what does it mean for the customer? More products, more services and
more confusion? No! Choice and information can only be good. Consumers will get a plethora of
products, customized to every financial need. Competition will maintain pricing at reasonable
levels and improve service. So one can look forward to cheaper banking. For instance, banks will
likely move to differential interest rates on credit cards based on customer history.

You are likely to see greater focus on customer satisfaction and relationship banking. Banks will
offer a host of value-added products and services to ensure long-term relationships with their
customers.

Many new-age banks, hungry for growth, have ignored customer service like quick feedback to
complaints and intelligent call centre responses. Customers will increasingly assert their rights
and demand service for the price they pay.

Other things, too, are in the offing. For one, an increased credit off take to the small and medium
sector, a move that’s just been flagged off by most banks. Unlike traditional corporate lending,
this comes with new parameters like lower collateral limits and innovative lending norms.

Then there’s technology. It will become possible for you to compare products across banks at the
click of a button. Credit bureaus will allow banks to check your credit past, and you could get
lower rates for a good repayment history. Data mining will lead to product customization but
also bring up privacy issues. This will see fierce protest from public interest.

Market Potential

With a burgeoning national economy, financial-sector reforms and a growing middle class, the
Indian market offers huge potential for Standard Chartered Bank to grow. The large and growing
middle class population and increase in disposable incomes have created booming markets in
housing, motor, televisions, computers, mobile phones and other products, most of which require
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financing. SCB has been effective in leveraging this opportunity with its product and service
offerings.

The Road Ahead…

After 150 years of service to India, Standard Chartered Bank continues to be committed to the
country and optimistic of positively contributing to the Indian Financial Sector. The Standard
Chartered Group considers India to be one of the greatest economic opportunities of the 21st
century and is proud to be so strongly positioned here. The Bank has ambitious plans to
transform its business in the country and to further expand operations across the country.

Recommendations:
Doing business in India requires an understanding of the country environment, including factors
influencing consumer lifestyle choices. Therefore it becomes very important for the
multinational banks to have a good understanding of its potential consumers which can be
helpful for Standard Chartered in increasing its consumer base in India thereby increasing its
business. These are few recommendations which can help Standard Chartered Bank to stay ahead
in the competition.

• Strong need of brand building: Standard Chartered needs to build a good brand image
by providing innovative products ad providing top class services accordingly with their
products.

• Improve its Services: A lot of people were not too much satisfied with the services
provided by Standard Chartered Bank. The services provided by the other multinational
ban in India are better as compared with Standard Chartered; therefore Standard
Chartered strongly needs to improve its services in order to compete with the other
multinational and private sector banks in India.

• Standard Chartered Bank should install a number of offsite ATMs to make its presence
felt in area where it has low or no presentation.

• Understand challenges that Standard Chartered Bank is facing from the competition and
also analyze and understand the future prospects and use it to understand the
opportunities and threats facing the business and the factors driving success.

• Get insight into trends in market performance

• Pinpoint growth sectors and identify factors driving change.

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• Identify market and brand leaders and understand the competitive environment.

• Identify the needs of the various segments of its consumers: For example, a senior
citizen might opt for a higher-cost MNC bank simply because it offers free home pick-
up and delivery of even small-value cheques. A businessman would like a bank that
offers a sweep facility.

Segments with high unrealized potential

Mid-Size cities in India are developing at a fast rate and the multinational banks in these cities
have very low penetration. The residents of such cities are affluent and they are good markets for
multinational banks.

Rich farmers who live in the rural belt but also spend quite some time in the nearby towns can be
tapped. Products can be introduced to serve their specialized needs.

The growing number of netizens represents a segment with high-unrealized potential.

References
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1. Internet Sites
• www.standardchartered.co.in

• www.economictimes.com

• www.hsbc.com

• www.abnamro.com

• www.icici.com

• www.citibank.com

• www.americanexpress.com

• www.deutche.com

2. Magazines and Newspapers.

• Economic Times

• Business India

• Business Standard

• The Times Of India

3. Books
• Marketing Management By Philip Kotler

• Marketing Research

4. Product Manuals, Standard Chartered Bank