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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

2 Acknowledgement I would like to express my deep sense of gratitude to Standard Charted Bank Mana gement specially Mr. Dashrath Renwan( Area Sales Manager) who gave me this oppor tunity to work with this prestigious organization as a summer trainee. It has be en pleasant and immensely valuable learning experience for me. This project woul d not have started and much less completed without the encouragement and support of IILM institute for Higher Educations faculties and Staff for their continuous guidance. Special thanks to Prof. Sanjeev Sharma, without whose valuable insigh ts 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 t o my project and without whose valuable insights the all the project wouldnt 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

3 Preface In modern world of comfort, consumers no longer select their banks based on how convenient the location of banks 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 tra nsactions. The pressure of competitive and dynamic markets has contributed to th e 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 b y 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. St andard Chartered Bank is the biggest and one of the most competitive MNC banks o perating in India. One of the prime activities on which SCB capitalized in Retai l Banking that have gained momentum with the growing income of the Indian Popula tion specifically the High Net worth Individuals and People of the upper middlec lass. 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 re tail banking best practices across all channels to adapt to the preferences of t his small but increasingly influential segment. For Banks seeking to enhance the ir performance, developing offerings to attract mass affluent customers may be t he 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 economi cs 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 just ify the study has noted that mass affluent customers are roughly 30 times more p rofitable 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 Ba nk 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 bankin g (saving account, current account, Term Deposit, corporate salary account, 2- i n one account, Dmat account etc.) Small and Medium Enterprises, Banking and comm ercial 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 respond ents and conclusions were drawn from the survey undertaken.

4 Table of Content Acknowledgement 2

5 1. Preface 2. Industry study 3 7 7 8 12 12 13 14 15 16 18 22 22 22 22 24 25 26 26 29 32 History History of Banking in India 3. Organization Structure Board Governance structure Company History Ownership patterns Mergers & Acquisit ions Divisions & Departments People Our highlights and achievements in 2008 Our priorities in 2009 Positioning for the future Consolidated Balance sheet Consoli dated Profit & loss Account 4. Financial profile 5. Products & Services Saving accounts Current accounts Insurance & investment plans

6 6. Competitors 38 Citi Bank 38 HSBC Bank 38 American Express 40 ABN AMRO 40 Deutsche Bank 41 Co mparative analysis of standard chartered products with other multinational banks 41 45 47 49 50 51 52 52 70 92 96 Operations Application of Chi-square 7. Introduction 8. Objectives 9. Methodolog y 10. Findings & Analysis Questionnaire on Banks Questionnaire on Insurance Comp anies 11. Conclusion & Recommendation 12. References

7 Industry study History The first banks were probably the religious temples of the ancient world, and we re probably established sometime during the third millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and late r other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. Temples an d 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 wouldbe thieves. There are extant records of loans from the 18th century BC in Babylo n 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 go verning banking operations.

8 Ancient Greece holds further evidence of banking. Greek temples, as well as priv ate 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 ci ty, saving the client the danger of carting coinage with him on his journey. Pyt hius, who operated as a merchant banker throughout Asia Minor at the beginning o f 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. A round 371 B.C., Pasion, a slave, became the wealthiest and most famous Greek ban ker, gaining his freedom and Athenian citizenship in the process. The fourth cen tury 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 t o precious metals, and state granaries functioned as banks. When Egypt fell unde r the rule of a Greek dynasty, the Ptolemies (332-30 B.C.), the numerous scatter ed government granaries were transformed into a network of grain banks, centrali zed 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 paym ents 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 f ollowing the depression, resulted in deregulation and privatization of governmen t-owned enterprises in the 1980s, indicating that governments of industrial coun tries around the world found private-sector solutions to problems of economic gr owth and development preferable to state-operated, semisocialist programs. This spurred a trend that was already prevalent in the business sector, large compani es becoming global and dealing with customers, suppliers, manufacturing, and inf ormation 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 deman d from companies, governments, and financial institutions, but also because fina ncial 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 ap proximately twice the rate of the world economy. Such growth rate would have bee n lower, in the last twenty years, were it not for the profound effects of the i nternationalization of financial markets especially U.S. Foreign investments, pa rticularly from Japan, who not only provided the funds to corporations in the U. S., but also helped finance the federal government; thus, transforming the U.S. stock market by far into the largest in the world. Nevertheless, in recent years , the dominance of U.S. financial markets has been disappearing and there has be en an increasing interest in foreign stocks. The extraordinary growth of foreign

9 financial markets results from both large increases in the pool of savings in fo reign countries, such as Japan, and, especially, the deregulation of foreign fin ancial markets, which has enabled them to expand their activities. Thus, America n corporations and banks have started seeking investment opportunities abroad, p rompting the development in the U.S. of mutual funds specializing in trading in foreign stock markets. Such growing internationalization and opportunity in fina ncial services has entirely changed the competitive landscape, as now many banks have demonstrated a preference for the universal banking model so prevalent in Eu rope. Universal banks are free to engage in all forms of financial services, mak e 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 Hindust an and Bengal Bank. The East India Company established Bank of Bengal (1809), Ba nk 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 Eur opeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Pu njab 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 193 5. During the first phase the growth was very slow and banks also experienced pe riodic failures between 1913 and 1948. There were approximately 1100 banks, most ly 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 supervi sion of banking in India as the Central Banking Authority.

10 During those days public has lesser confidence in the banks. As an aftermath dep osit mobilisation was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely give n to traders. Post-Nationalization (Phase II) Government took major steps in this Indian Banking Sector Reform after independe nce. In 1955, it nationalised Imperial Bank of India with extensive banking faci lities 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 transa ctions of the Union and State Governments all over the country. Seven banks form ing subsidiary of State Bank of India was nationalised in 1960 on 19th July, 196 9, major process of nationalisation was carried out. It was the effort of the th en 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 s teps taken by the Government of India to Regulate Banking Institutions in the Co untry: 1949 : Enactment of Banking Regulation Act. 1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover ex tended to deposits. 1969 : Nationalisation of 14 major banks. 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : N ationalisation 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)

11 This phase has introduced many more products and facilities in the banking secto r in its reforms measure. In 1991, under the chairmanship of M Narasimham, a com mittee was set up by his name which worked for the liberalisation of banking pra ctices. The country is flooded with foreign banks and their ATM stations. Effort s are being put to give a satisfactory service to customers. Phone banking and n et banking is introduced. The entire system became more convenient and swift. Ti me 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 ext ernal macroeconomics shock as other East Asian Countries suffered. This is all d ue to a flexible exchange rate regime, the foreign reserves are high, the capita l account is not yet fully convertible, and banks and their customers have limit ed 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 chall enge 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 transpa rent balance sheets relative to other banks in comparable economies in its regio n. The Reserve Bank of India is an autonomous body, with minimal pressure from t he government. The stated policy of the Bank on the Indian Rupee is to manage vo latility 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-espe cially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may a lso 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 pri vate 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 200 5 that any stake exceeding 5% in the private sector banks would need to be vette d 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 trad ed on stock exchanges) and 31 foreign banks. They have a combined network of ove r 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rati ng agency, the public sector banks hold over 75 percent of total assets of the b anking industry, with the private and foreign banks holding 18.2% and 6.5% respe ctively. As seen in the private sector much of the job cuts due to global slowdo wn, its the public sector undertaking (PSU) banks which gained much confidence d ue to job safety and security. More and more people are likely to turn towards g overnment institutions, particularly banks in the quest for safety and security. Similar is the case with Standard Chartered Bank.

12 Organization structure

13 Company history History Standard Chartered was formed in 1969 through a merger of two banks: The Standar d 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 o n the huge expansion of trade and to earn the handsome profits to be made from f inancing the movement of goods between Europe, Asia and Africa. The Chartered Ba nk Founded by James Wilson following the grant of a Royal Charter by Queen Victo ria in 1853. Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.

14 Traditional trade was in cotton from Mumbai (Bombay), indigo and tea from Kolkat a, 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 i n 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank s C yprus Branches. This established a presence in the Gulf. The Standard Bank Founded in the Cape Province of South Africa in 1862 by John P aterson. Commenced business in Port Elizabeth, in January 1863. Was prominent in financing the development of the diamond fields of Kimberley fr om 1867 and later extended its network further north to the new town of Johannes burg 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 C ameroon, Gambia, Ghana, Nigeria and Sierra Leone. From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, Africa and t he Middle East. It has concentrated on consumer, corporate and institutional ban king and on the provision of treasury services - areas in which the Group had pa rticular strength and expertise. Since 2000 the Bank has achieved several milest ones 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 worlds most dynamic markets, l eading the way in Asia, Africa and the Middle East

15 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 g rowth, supplemented by acquisitions. Standard Chartered aspires to be the best i nternational bank for its customers. The Bank derives more than 90 per cent of i ts 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 br anches and outlets located in over 70 countries. Our principles Leading by example to be the right partner for its stakeholders, the Group is co mmitted to building a sustainable business over the long term that is trusted wo rldwide for upholding high standards of corporate governance, social responsibil ity, environmental protection and employee diversity. It employs over 70,000 peo ple, nearly half of whom are women. The Groups employees are of 125 nationalities , of which 68 are represented among senior management. Our business strategy Standard Chartered aims to be the worlds best international bank, providing Consu mer and Wholesale Banking services in Asia, Africa and the Middle East We are ve ry focused on the basics of banking: on liquidity, capital, risk management, ope rational control and costs We do business in markets we understand intimately, w ith customers with whom we have longstanding relationships, selling products we understand fully We strive to be true to our values and culture, running the Gro up as one bank across geographies and businesses We are committed to building a sustainable business, through our strategy, business models, products and involv ement in our communities Our priorities in 2009 Stick to our focused, clear and consistent strategy to lead the way in Asia, Afr ica and the Middle East Reinforce balance sheet strength and liquidity in the bu siness 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 c ustomers, build market share and improve margins Our strategy must take into acc ount the fundamental task of re-establishing confidence and trust in banks and t he need to build a sustainable business Mergers and Acquisitions Date Location What has Done

16 May 2008 Jan 2008 Oct 2007 Sep 2007 Sep 2007 Sep 2007 Aug 2007 End 2006 Sep 2006 Sep 2006 Jun 2006 Dec 2005 Sep 2005 Aug 2005 Jun 2005 Apr 2005 Jan 2005 Dec 200 4 Nov 2004 Sep 2000 Vietnam South Korea South Korea Global Global Global India Taiwan Pakistan Indon esia Standard Chartered announces raising strategic stake in Vietnam s Asia Commercia l Bank to 15% Standard Chartered to acquire South Korea s Yeahreum Mutual Saving s Bank Standard Chartered First Bank Korea Ltd to acquire 80% stake in South Kor ea s A Brain, a funds administration company Signs agreement to buy American Exp ress Bank, a wholly owned subsidiary of American Express Company, with operation s in 47 countries Standard Chartered to acquire Pembroke, an aircraft leasing, f inancing and management firm Standard Chartered to acquire Harrison Lovegrove, a leading global oil and gas M&A advisory boutique Standard Chartered announces a cquisition of 49% strategic stake in India s UTI Securities, a leading local bro king firm. Launched tender offer for 100% in Hsinchu International Bank (USD1.2b n) Acquisition of 95.37% Union Bank (USD487m) Acquisition of 26% stake in Permat aBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD193m). Total stake held in PermataBank by consortium today is 89%. Acquisiti on of 25% in First Africa Group Holdings Ltd Acquisition of 20% stake in Fleming Family & Partners (USD78m) Acquisition of 19.99% of China Bohai Bank (USD123m) Acquisition of Amex Bank s Bangladesh business (USD25m) Acquisition of 8.56% sta ke in Asia Commercial Bank (USD22m) Acquisition of a minority stake (6%) in Trav elex as part of Apax led consortium Acquisition of Korea First Bank (USD3.3bn) A cquisition of ANZ s Project Finance business with assets (USD15m) Acquisition of 63% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astr a International Tbk (USD355m) Acquisition of Chase Manhattan Card Company (USD1. 32bn) Africa N/A China Bangladesh Vietnam Global South Korea Global Indonesia Hong Kon g

17 Jul 2000 Jun 2004 Global Hong Kong Acquisition of ANZ Grindlays (USD1.34bn) Acquisition of PrimeCredit 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 sala ry account and variety of Current accounts and Saving accounts. Credit Cards: St andard Chartered offers the various cards like: Emirates platinum card, Platinum Card, Emirates Titanium Card, Super Value Titanium Card, Gold Card, EMI Card, E xecutive Card, Classic Card, Business Gold Card, Gold Rewards Card, Plus Extende d Protection Plan, Your Rewards Plus Program, Special offers, Register for Verif ied 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 Pro tection Plan, Smart Travel card. Loans and mortgages: home loans, loans against securities, home saver, loan against term deposit, loan against property. NRI ba nking: NRE Account, NRO Savings Account, FCNR Account,

18 Exclusive Banking: Excel banking, Priority banking. Insurance and Investments: G eneral insurance, life insurance and investment services. Private Banking This type of banking includes various aspects as: Managing your wealth, Investors lounge, learning centre, concierge and online services. SME Banking SME Banking offers one of the widest range of banking products and services in t he market today. Managing a growing business demands most of your time and energ y. Our relationship managers understand your business requirement and help you m anage your business better. This offers the following: Business Current Accounts : International trade Account, Business Essential account. Loans: Business insta llment loan, Loan/overdraft against property, Term loan. Trade and working capit al products: Trade and working capital, Express trade. Forex services and others : Forex services, online payment, credit grading methodology, service charges an d fees. Wholesale Banking This aspect offers the variety of services which helps in saving the and providi ng the convenience to the customers. People Our highlights and achievements in 2008 Successful integration and harmonization of the American Express Bank acquisitio n across 47 markets, 19 of which are new markets to the Groups footprint

19 Strengthened our leadership capability through the Great Managers and Leadership Development programmes which covered 4,000 and 1,500 managers, respectively Lau nched a refresh of the Groups values and behaviors Our priorities in 2009 Continue to drive performance through productivity and engagement Continue to re cruit and develop strong and diverse leaders Further embed the Groups values to m aintain our distinctive and unique culture Maintain sharp focus on recognizing an d rewarding the appropriate behaviors for sustainable business performance In th e current economic environment, it is more important than ever to focus on our p eople. The diversity of our employees provides us with our unique source of stre ngth. We place particular importance on continuously improving the way we work a nd living the Groups values to embed our company culture. By focusing on building great leaders and engaging our employees, we continue to drive performance. Glo bal 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 w hom are women, we have an international diverse workforce. We believe this enabl es us to better serve our customers and maintain competitive advantage. Diversity and Inclusion With 125 nationalities represented among over 70,000 employees, our diversity pr ovides us with innovative ideas and in-depth local knowledge, enabling us to bet ter serve our customers and maintain our competitive advantage. Supporting emplo yees to meet their obligations outside of work is key to attracting and retainin g this diverse talent. In 2008 we continued to roll out a flexible working polic y in five new markets, taking the total to nine. We have piloted working from ho me across three functions in three markets. Over 180 employees from our Global S hared Service Centre in Chennai have enrolled in the Working Home initiative, co ntributing to a more healthy work-life balance. We have also expanded the covera ge of paternity policies to the US, Australia, Lebanon and Bangladesh and opened a number of day care centres in India and a crche in Sri Lanka. 2008 was a year of focusing on the key, unique elements that make the Group successful. By creat ing an engaging environment where our people and our culture can flourish, we en ter 2009 with clear targets for the year ahead.

20 Our board of directors Our leaders reflect the diversity that drives Standard Chartered s success and m akes us one of the world s most international banks. Meet the board Acting Chairman John Peace Executive Directors Peter Sands Group Finance Director Richard Meddings Group Chief Executive Steve Bertamini Group Executive Director, Consumer Banking Gareth Bullock Group Executive Director, Africa, Middle East, Europe and the Americas Non-Executive Directors

21 Jamie Dundas Non-Executive Director Val Gooding Non-Executive Director Rudy Markham Non-Executive Director Ruth Markland Non-Executive Director Sunil Mittal Non-Executive Director John Paynter Non-Executive Director Paul Skinner Non-Executive Director Oliver Stocken 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 amon g our senior management, reflecting the Bank s policy towards providing equal op portunity for all. We are committed to creating an engaging, inclusive work envi ronment, where people can make a difference, as individuals and as part of a tea m. The Bank places great emphasis on continuous improvement to increase producti vity, enhance customer service and reduce administrative tasks, so that employee s can spend more time in rewarding activities that add value to the Group.

22 Financial Profile We have delivered a solid operating performance in 2008 built on a liquid, divers ified, 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 t urmoil We exited 2008 with a liquid, diversified balance sheet and remain open f or business to our customers The geographic spread of our business and incomestr eams helped insulate the Group from the worst of the economic events in 2008 A c onservative 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 tale nt, 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

23 Our priorities in 2009 We expect 2009 to be a year of continued economic turbulence with global recessi onary conditions. Against this backdrop we believe the maintenance of a liquid, conservative and well diversified balance sheet is the best way to sustain the G roup and serve our customers. We will pace investments and discretionary expendi ture through the year Wholesale Banking will continue with disciplined execution of the existing client-focused strategy with effective management of capital, l iquidity and risk Consumer Banking will continue to undergo significant repositi oning, diversifying income streams and accelerating the transition to an increas ingly customer-centric model Positioning for the future Delivering strong results during a time of unprecedented turbulence. Continued f ocus on the fundamentals of banking will assure the future for our customers and our business. Financial review

24 Normalised earnings per share This KPI is calculated as profit attributable to ordinary shareholders of the Gr oup as normalised for certain one-off or irregular items, divided by the weighte d average of the number of shares in issue during the year. Operating income Tier 1 capital ratio Normalised return on shareholders equity Normalised return on shareholders equity is calculated as the normalised profit a ttributable to ordinary shareholders as a percentage of average shareholders equi ty. Operating income is calculated as the sum of the net interest income, net commis sion income, net trading income, and other operating income. Tier 1 capital, the components of which are summarised on page 65, is measured b y the ratio of Tier 1 capital to risk weighted assets. Normalised earnings per share* 174.9cents Operating income $13,968m Tier 1 capital ratio** 10.1% Normalised return on shareholders equity 15.2% Aim To consistently deliver yearon-year growth in normalised earnings per share. Aim Aim To sustain organic momentum To maintain Tier 1 capital ratio between seven and n ine per cent Aim To deliver superior returns on shareholders equity compared to the industry avera ge. Analysis During 2008, normalised earnings per share grew one per cent, with strong growth in Wholesale Banking offset by a slowdown in Consumer Banking. Analysis During 2008, operating income grew 26 per cent, with seven of nine geographic se gments each delivering over $1 billion of income. Analysis During 2008, the Group maintained a Tier 1 capital ratio of 10.1 per cent on a B asel II basis, an increase of 1.3 percentage points compared with 2007 (0.3 perc entage points on a Basel I basis), comfortably above our stated target Analysis During 2008, the normalised return on shareholders equity declined against 2007 a s 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. Source Source Has been calculated from the consolidated balance sheet. Has been calculated fro m the consolidated balance sheet. Source Has been calculated from the consolidated balance sheet.

25 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, cap ital, risk and cost management enabled it to escape the worst of the turmoil and stand out in the global financial landscape. Last years performance can be summe d up by the following achievements: Standard Chartered PLC Consolidated balance sheet As at 31 December, 2008 Assets Cash and balances at central banks Financial assets held at fair value th rough profit or loss Derivative financial instruments Loans and advances to bank s Loans and advances to customers 154,266 Investment securities Interests in ass ociates Goodwill and intangible assets Property, plant and equipment Current tax assets Deferred tax assets Other assets Prepayments and accrued income Total as sets Liabilities Deposits by banks Customer accounts Financial liabilities held at fair value through profit or loss Derivative financial instruments Debt secur ities in issue Current tax liabilities Deferred tax liabilities Other liabilitie s Accruals and deferred income Provisions for liabilities and charges Retirement benefit obligations Subordinated liabilities and other borrowed funds Total lia bilities 308,419 Equity Share capital Reserves Total parent company shareholders equity Minority interests Total equity 22,695 2008 $ Million 24,161 15,425 69,65 7 46,583 69,342 511 6,361 3,586 764 660 20,374 3,466 435,068 593 11,011 3,857 32 9,871 26,204 35,365 174,178 55,274 269 6,374 2,892 633 2007 $ Million 10,175 22, 958 31,909 234,008 15,478 67,775 23,447 512 176 17,363 4,132 140 447 16,986 25,880 179,760 14,250 26,270 27,137 818 33 14,742 3,429 38 322 15,740 412,373 948 21,192 22,140 555 705 20,146 20,851 601 21,452

26 Total equity and liabilities 435,068 329,871 Standard Chartered PLC Consolidated Profit and loss Account For the year ended 3 1December, 2008 2008 $ Million Interest income Interest expense (9,911) Net interest income Fees and commission income Fees and commission expense Net trading income Other oper ating income Total non-interest income Operating income Staff costs Premises cos ts General administrative expenses Depreciation and amortisation Operating expen ses Operating profit before impairment losses and taxation Impairment losses on loans and advances and other credit$ risk provisions Other impairment Profit fro m associates Operating profit Rights issue option Profit before taxation Taxatio n Profit for the year Profit attributable to: Minority interests Parent company shareholders Profit for the year Earnings per share: Basic earnings per ordinary share (cents) Diluted earnings per ordinary share (cents) Dividends per ordinar y share : Interim dividend paid (cents) Final proposed dividend* (cents) Total di vidend: Interim dividend paid ($ million) Final proposed dividend* ($ million) 1 6,378 (8,991) 7,387 3,420 (479) 2,405 1,235 6,581 13,968 (4,737) (738) (1,711) ( 425) (7,611) 6,357 (1,321) (469) 1 4,568 233 4,801 (1,290) 3,511 103 3,408 3,511 202.4 201.3 19.30 42.32 61.62 364 801 1,165 1,117 17.38 42.27 59.65 324 793 2,8 41 2,989 176.0 174.2 4,035 (1,046) 2,989 148 1 4,035 11,067 (3,949) (592) (1,329 ) (345) (6,215) 4,852 (761) (57) 6,265 3,189 (528) 1,261 880 4,802 2007 $ Millio n 16,176

27 Products and services Savings accounts aXcessPlus Account Standard Chartered Bank s aXcessPlus is a revolutionary savings account that pro vides you with unstinted aXcess to your money. Special Features Exclusive benefi ts of an aXcessPlus savings account: FREE Unlimited Visa ATM transactions (Cash withdrawal) FREE Standard Chartered B ank branch access across the country FREE Doorstep Banking FREE Demand Drafts/Pa y Orders (drawn at SCB locations) FREE Payable at Par Chequebook Additional Features Get instant cash at over 20,000 ATMs across India and over 1 0,00,000 ATMs across the world through the Visa network. And get a globally vali d Debit Card that lets you shop at over 3,26,000 outlets in India and at over 14 million outlets across the world. And thats 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 i n India Free Doorstep Banking Free Payable at Par cheque book/ account statement s / DDs Free Inter Bank Funds Transfer Free Foreign Inward Remittance Certificat es Additional Features With the SuperValue Account you also get: Multicity Banking - access your account even when you are out of town Enjoy exte nded Banking hours at all our branches, and Speed Cheque Clearing and Metro Clea ring 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 metr os and everyday of the week at other centers Online banking - access and transac t on your accounts through the Internet from any part of the world Free Investme nt Advisory Services to assist you in investing in a range of mutual funds Full suite of complimentary banking services including credit cards, loan products an d capital market services Parivaar Account Parivaar is a unique Wealth Management Solution from Standard Chartered Bank tha t offers your family flexibility, convenience and essential tools for wealth acc umulation and preservation. Special Features Parivaar is much more than a regula r Savings Account. It allows you maintain your individual identity while allowin g 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 clubbin g balances in grouped accounts. Anytime, anywhere access to accounts through ATM s, Phone Banking and Online Banking.

29 Globally valid ATM-cum-debit card can be used at 3,26,000 merchant outlets in In dia 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. Whats more you can avail of Anywhere Banking, by which you can access your accou nt from any branch of Standard Chartered Bank in India. Special Features Here ar e 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, P hone Banking, ATM & Branch) Anywhere banking Access your account from any branch of Standard Chartered Bank Access to Phone Banking and Online Banking Free Cheq ue deposit at any SCB Branch or ATM Eligibility Criteria This account is available to individual Resident Indian cus tomers. 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 maint enance, hassle free and easy solution to all your banking needs. Special Feature s Exclusive benefits of an aaSaan savings account: No Minimum Balance requirement Free unlimited access to any SCB branch across th e country for Customer-in-person

30 Unlimited Free access to Standard Chartered Bank ATM s Up to 4 free cash withdra wal 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 Ph one Banking o Online Banking o Extended banking hours* o Locker facility* o Door step 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 acco unt: Effective 28th March 2009, the 2 in 1 limit on the operative account has be en 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 Curren t 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 th at helps you get more out of your business. Special Features

31 At Standard Chartered, we ensure that your banking is most economical with our B usiness 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 ava il of drafts & pay orders payable at any of our branches up to 75 a quarter. FRE E Payable at par cheques You can issue cheques payable at par at any of our bran ch locations, free of cost. FREE National Electronic Fund Transfers Now, transfe r 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 Y ou 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 servic es that will help you save the time spent on banking. Get your funds faster without any additional cost Cheques drawn on any bank at o ur branch locations are cleared in just 7 days, Moreover, this service is availa ble to you free of charge. Drafts on correspondent bank locations You now have a n opportunity to avail of drafts on over 470 locations, at most competitive rate s Quick transfer You can transfer funds between your accounts with our bank almo st instantaneously and free! Doorstep Banking You can request for cash pick-up a nd delivery, cheque pick-up, draft/PO delivery, to/from your home or office. Jus t call / fax us your request. FREE Internet Banking Access your account any time of the day from anywhere in the world through our Secured Internet Banking faci lity. 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 be nefits You can now get FREE* access (4 free transactions per month) to your mone y through over 20000 VISA ATMs spread across the country. You ll also get all th e 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 Individuals / Sole Proprietorships / Partnerships / Associations / CompaniesPriv ate & 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 qua rterly balance requirement for your Business Plus Account is Rs.50, 000. o Enhanced Business Plus Account You run your business efficiently, and effectively. That s why you need a curren t account that does the same. The Enhanced Business Plus Account from Standard C hartered 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. Eve ry business has different needs and complexities. That s why the Enhanced Busine ss Plus Account has been developed to suit your business needs. Special Features Whatever the nature of your business, controlling costs is always a top priorit y. 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 ava il of drafts & pay orders payable at any of our branches up to 75 a quarter. FRE E 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 mont h*. FREE Payable at par cheques You can issue cheques payable at par at any of o ur 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 pickup, draft/PO delivery, to /from your home or office. Just call / fax us your request. Additional features Whatever your banking requirements our Enhanced Business Plu s 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 o ur branch locations are cleared in just 7 days, Moreover, this service is availa ble 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 acc ount from the comfort of your home / office. You can get account information, re quest 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 Co nduct your banking transactions from any of our branches spread across the count ry, irrespective of the branch where your account was opened. Debit Card with aX cessPlus benefits You can now get FREE* access (4 free transactions per month) t o 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 cus tomers. We also believe you deserve a choice, that s why we give you the option of choos ing the average quarterly balance you would like to maintain with the bank. Depe nding on the balance, you can avail of a wide range of services that this accoun t offers. Option Enhanced Business Plus 100 Enhanced Business Plus1000 Eligibili ty Eligibility criteria for a Enhanced Business Plus Account: Average Quarterly Balance Rs.100,000 Rs.10,00,000 The Enhanced Business Plus Account is only available to the following: o Residen t Indians. o Individuals / Sole Proprietorships / Partnerships / Associations / CompaniesPrivate & 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 & Roya l Sundaram General Insurance Limited. We offer:

34 One-stop shopping for both life and general insurance protection Comprehensive r ange of products to suit every stage of your life... from childhood to retiremen t Dedicated insurance Financial Services Consultants from Bajaj Allianz Life Ins urance Company provide FREE Consultations to create customized insurance plans f or 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 Pers onal Accident Planning for your financial goals Standard Chartered Bank, using over 150 years of expertise, promises to guide yo u through the world of exciting new investment opportunities in India and overse as. From shortest-term deployment of funds to planning your retirement, we pledg e 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 product s* available conveniently at Standard Chartered Bank. Key Plans Some of the key General Insurance products available at Standard Chartered: Health shield: A com prehensive 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 co mplete coverage for damage to your building. Accident shield: Designed to take c are 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 reimbu rsement 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 o f an accident or illness and hence getting Hospitalised.

35 Secure All: Its a 3 in 1 plan , where the customer gets coverage for Hospitalisat ion expenses, Daily cash benefit in addition to the reimbursement of actual expe nses and Lumpsum Accidental Death & Disability (PTD) benefit. Royal Sundaram Royal Sundaram Alliance Insurance Company Limited is a joint venture between Sun daram Finance and Royal & SunAlliance plc, UK, where the former holds 74% and th e latter holds 26% of the equity of the venture. Royal Sundaram currently has ov er 2.1 million customers in its fold. Its products are distributed in over 150 c ities 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 Insuranc e for individual customers Wide range of specialised insurance covers in Propert y, Marine, Engineering, Liability and Business Interruption risks apart from spe cially 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 Stan dard Chartered Bank branch today! *The General Insurance products listed above a re underwritten by Royal Sundaram Insurance Company Limited. Insurance is the su bject matter of the solicitation. Please read the disclaimer Disclaimer General Insurance Disclaimer Insurance Plans for Standard Chartered Bank customers is is sued by Royal Sundaram Alliance Insurance Company Limited. Claims will be settle d by Royal Sundaram Alliance Insurance Company Limited as per the terms and cond itions of the policy. These details are not a contract of Insurance. Please refe r policy document for exact terms and conditions and specific details applicable to this Insurance. This plan is underwritten by Royal Sundaram Alliance Insuran ce Company Limited. Standard Chartered Bank does not accept any responsibility n or gives any warranty, express or implied, as to the accuracy, reliability and c ompleteness of any statement made in or the omission of any provisions of the co ntract of Insurance from this brochure and the Bank does not accept any liabilit y for loss or damage of whatsoever nature, which may be attributable your applic ation, its receipt, payment of claims under it or the contract of Insurance. You r participation in this insurance product is purely on a voluntary basis. We adv ise 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 profess ional consultants from Bajaj Allianz Insurance company, who can guide you in asc ertaining 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 Years Regular Premium is allocated to funds in the following manner Of the first years Regular Premium, 45% is allocated to Fund(s) immediately 5.1% of the First Years Regular 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 be en paid o A new Asset Allocation Fund A good option to invest in that shifts you r funds as per the opportunities available & attractiveness of the sector Youngcare & Youngcare plus: It is a unit linked regular premium plan specially d esigned to secure your childs future o It has an in built WOP (Waiver of premium) rider. i.e on death of Life assured, the policy continues with premiums paid in to the policy by the insurance company till the end of term o Sum Assured is pai d on Death and WOP is triggered. Nominee receives the fund value at the end of t he 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 pl an with 2 options - with a life cover & without a life cover o It has a double D eath Benefit which is Sum Assured + Fund value o The allocation to funds starts from 80% and keeps reducing depending on the premium size

37 o o Future Secure has an Unlimited Top-up facility where the Sum assured may not inc rease with infusing additional premium as Top up 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 availabl e 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 youre your family home r emains with your family for life. o The loan protector plan from Bajaj Allianz L ife Insurance is mortgage reducing term assurance plan, which at low premiums he lps you to secure your family against home loan. o It is an economical way to pr otect 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 co ver 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: Purchas e immediate annuity from Bajaj Allianz Life Insurance or any other life insurer. o Choice of 5 investment funds. o 3 free switches allowed every year. Child Gain: Insure today and secure your childs education and ambitions. This pol icy is available in 4 Options o ChildGain 21 and ChildGain 21 Plus Child s educa tion Plan upto Graduation

38 o o o 105% Guaranteed Payouts + Bonuses ChildGain 24 and ChildGain 24 Plus Child s edu cation Plan upto Post Graduation 115% Guaranteed Payouts + Bonuses 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 Start o f Life Benefit: Enables a smooth start to your childs professional life, incase o f an unfortunate death or disability of the insured parent during the policy ter m. Invest Gain: Invest Gain is a specially designed plan that offers a unique combi nation of benefits that help you develop a sound financial portfolio for your fa mily. o 4 Times Life Cover at a little extra cost. o Limited premium payment opt ion 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 provi ding life cover, this plan also ensures the return of all premiums at the time o f 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 Baja j Auto, trusted for over 55 years in the Indian market, together are committed t o offering you Insurance solutions that provide all the security you need for yo ur 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 Di sclaimer Life Insurance Disclaimer Insurance is the subject matter of the solici tation. Bajaj Allianz Life Insurance Plans for Standard Chartered Bank customers are underwritten by Bajaj Allianz Life Insurance Company Limited. Claims will b e settled by Bajaj Allianz Life Insurance Company Limited as per the terms and c onditions of the policy. This brochure is not a contract of insurance. Please re fer policy document for exact terms and conditions and specific details

39 applicable to this Insurance. Standard Chartered Bank does not accept any respon sibility nor gives any warranty, express or implied, as to the accuracy, reliabi lity and completeness of any statement made in or the commission of any provisio ns 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 voluntar y basis. We advise you to take your own professional advise before participate. This content should be read in conjunction with the Benefit Illustration and Pol icy Exclusions. Please ask for the same along with the quotation. Competitors As Standard Chartered is a multinational bank and only multinational banks are i n the capacity to compete with the Standard Chartered and the multinational bank s 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 b anking arm of financial services giant Citigroup, one of the largest companies i n the world. As of March 2007, it is the largest bank in the United States by ho ldings. Citibank has operations in more than 100 countries and territories aroun d the world. More than half of its 1,400 offices are in the United States, mostl y 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, cre dit card and investment products. Their online services division is among the mo st 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 as sets, Citibank was rescued by the U.S. government under plans agreed for Citigro up. 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 as sets 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 worl d s largest banking group and the world s 6th largest company according to a com posite measure by Forbes magazine. The group was founded from The Hongkong and S hanghai 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 ea rnings, Hong Kong still continues to be a significant source of its income. Rece nt acquisitions and expansion in China are returning HSBC to part of its roots. HSBC has an enormous operational base in Asia and significant lending, investmen t, 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 Exc hanges, and is a constituent of the FTSE 100 Index and the Hang Seng Index. In F ebruary 2008, HSBC was named the world s most valuable banking brand by The Bank er magazine. Not known for marked fluctuations in securities exchanges around th e 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 tr adition going back to the 19th century. In its technical management, however, HS BC has recently suffered a series of headline-making incidents in which some cus tomer data were allegedly leaked or simply went missing. Although the consequenc es 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 fo urth largest bank in the world in terms of assets ($2,348.98 billion), the secon d largest in terms of sales ($146.50 billion), the largest in terms of market va lue ($180.81 billion). It was also the most profitable bank in the world with $1 9.13 billion in net income in 2007 (compared to Citigroup s $3.62 billion and Ba nk of America s $14.98 billion in the same period). HSBC is by far the largest b ank 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 Am ericas, Asia Pacific and Europe each representing around one third of the busine ss. With 9,500 offices in 86 countries, 210,000 shareholders, 330,000 staff and 128 million customers worldwide, HSBC arguably has the most international presen ce 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 g lobal financial services company that is headquartered in New York City, New Yor k. Founded in 1850, the company also has major offices in Fort Lauderdale, Flori da; Salt Lake City, Utah; Greensboro, North Carolina; Phoenix, Arizona; Sydney, New South Wales, Australia; Markham, Ontario, Canada; London and Brighton, Unite d Kingdom. The company is best known for its credit card, charge card, and trave ler 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 D ow Jones Industrial Average. In 2007, BusinessWeek and Interbrand ranked America n Express as the fourteenth most valuable brand in the world, estimating it to b e worth US$20.87 billion. On November 10, 2008, during the financial crisis of 2 008, the company won Federal Reserve System approval to convert to a bank holdin g company, making it eligible for government help under the Troubled Assets Reli ef Program. At that time, American Express had total consolidated assets of abou t $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 Santa nder. The bank

42 was created as the result of the 1990-91 merger between Amsterdam-Rotterdam (AMR O) Bank and ABN, whose history dated back to the founding of the Nederlandsche H andel-Maatschappij in 1824. Between 1991 and 2007, ABN AMRO was one of the large st 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, a nd 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 go vernment 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 Ap ril 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 wit h its headquarters in Frankfurt, Germany. The bank employs more than 81,000 peop le in 76 countries, and has a large presence in Europe, the Americas, Asia Pacif ic and the emerging markets. Deutsche Bank has offices in major financial center s, such as London, Moscow, New York, Singapore, Sydney, Hong Kong and Tokyo. Fur thermore, the bank is investing in expanding markets, such as the Middle East, L atin America, Central & Eastern Europe and Asia Pacific. The bank offers financi al products and services for corporate and institutional clients along with priv ate and business clients. Services include sales, trading, and origination of de bt and equity; mergers and acquisitions ((M&A); risk management products, such a s derivatives, corporate finance, wealth management, retail banking, fund manage ment, and transaction banking. Deutsche Banks Chief Executive Officer and Chairma n of the Group Executive Committee, since 2002, is Josef Ackermann. Deutsche Ban k is listed on both the Frankfurt (FWB) and New York stock exchanges (NYSE). Deu tsche Banks mission statement is: We compete to be the leading global provider of financial solutions for demanding clients creating exceptional value for our sha reholders and people. The banks business model rests on two pillars: the Corporate & Investment Bank (CIB) and Private Clients & Asset Management. Comparative analysis of standard chartered products with other multinational ban ks

43 Comparison on the basis of Savings Account Factors Stan Chart Bank Citi Bank HSBC Bank Deutsche Bank ABN AMRO Flex Privilege Avg. Access Citi Bank Savings Normal Rs.25000 Normal Rs.1Lac Quarterly PlusR Bal ance in s.250 Rs.25000 Power Vantage Plus Rs. 3Lac Saving A/C 00 Super value Rs.50 000 Citi Bank Rs.50000 Gold Rs.1Lac Premium Rs.25Lac Premium R s.20Lac Rs.50000 Flex Rs.15000 Flex Rs.10000 Free Free No No Free (AQB more than Rs.5000 0) Adv Plus NEFT RTGS Free Free Free Free Yes(AQB than 1lakh) No Free (AQB more than Rs.1lakh) more Free Free Yes(AQB more than 1lakh) No Free (AQB more than Rs. 1lakh) Free Free Yes (AQB more than 3lakh) Yes (AQB more than 3lakh) Yes (AQB more than Rs.3lakh) Relationship No Manger Credit Card No Door step Free (AQB banking more than Rs.50 000) Yes Yes Yes Yes Yes Yes No Yes Financial Consultant Online Banking No Yes Comparison on the basis of Current Account and other factors Factors Avg. Quarterly Balance in Current A/C Stan Bank Chart Citi Bank Citi business than Rs.1lakh less HSBC Bank Business Vantage Rs. 1lakh or more Business Select Rs.5lakh or more Deutsche Bank db S(Silver)75 Rs.75000or more db P(Platinum) 250 Rs.2.5lakh ABN AMRO Value+Silver40 more than Rs.40000 Value+Gold100 Rs.1lakh or more Value+Gold500 R s.5 lakh or more BP50 Rs.50000 EBP100 Rs.1lakh EBP1000 Rs.10 lakh Citi business Rs.1lakh or more Citi gold business Rs.15 lakh or more

44 or more db G(Gold)500 Rs. 5lakh or more Yes At par cheque book ATMs & Debit Card D/D at their Banks Yes Yes Yes Yes Yes Yes Yes Yes Yes Free upto Rs.25000 BP50 A/c Unlimited Free AQB A/c more than Rs. 1lakh Free upto Rs.5lakh p.m. AQB less than 1lakh Free upto Rs.50lakh p.m. AQB more th an 1lakh Unlimited free with AQB more than 15 lakh Free upto Rs. 25 lakh where A QB is more than 1lakh Free unlimited where AQB is more than 15lakh Unlimited free every account in Unlimited free in every account Free only in Value+Gold500 A/c D/D at other locations Free upto Rs.50lakh p.m. in EBP100 Free upto Rs.75lakh p.m. in EBP 1000 0.25%(Min Rs.100, Max Rs.5000) in every A/c Totally free at SBI locations in every A/c but there are Charges if it is not SB I. Free upto Rs.50000 in every A/c Branches 68 metros 83India 25 metros 35 India 30 metros 39 India 20 metros 35 India 17 metros 19 India

ATMs Charges for ATM Charges per transaction 165 376 158 126 78 Rs. 200p.a. Rs.100 p.a. Rs.150 p.a. Rs. 200p.a. Rs.200 p.a. 4transacti ons free Rs.50 per trans Rs.50 per trans 2 transactions free per 2 transactions free per month and then rs.40 per

45 from ATMs of other banks per month and then Rs.50per transactio n No Yes month transaction Locker facility Avg. Banking hrs. 24c hrs branch Min balance saving Charges for not maintainin g min balance Flexibility of interest rates Yes Rs 2000 p.a. No No 10 am 7pm 10 am 2pm 9am 4pm 10am 7pm 10 am 7pm Yes No No No No 10000 10000 10000 10000 10000 750 per quarter 250per month 300per quarter 350 quarter per 200 1800 per month

Yes No Yes No No Comparison on the basis of insurance products Term insurance Factors Bajaj Allianz Entry age 18-50 years Minimum sum 100000 as sured Minimum term 5years Max. term 40years HDFC 18-60 years 100000 5years 30yea rs Birla Sun Life 18-55 years 250000 5years 25years

46 Child Care plan Factors Entry age Min. term Max. term Bajaj Allianz 18-60years(P arent) 0to13years(child) 5years 21years HDFC 18-60years(Parent) 0to13years(child ) 10years 25years Birla Sun Life 18-60years(Parent) 30daysto13years(child) 5year s 23years Comparison on the basis of Financial Factors Standard Chartered ROE 15.47 n 6.12 Net Interest 4.28 Margin HSBC 5.14 5.13 5.16 ABN AMRO -10.64 -0.35 Ratios ROA 0.9 Expense Ratio 6.92 Asset utilizatio 6.48 0.3 6.06 6.09 3.74 Citi -0.003 -0.002 1.46 1.11 1.54

From the above table it is clear that Standard Chartered Bank is earning the hig hest Return on Equity and Return on assets but on the other hand Standard Charte red has to do something with their Expenses because the expense ratio of Standar d 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 (Stand ard Chartered Bank (Hong Kong) Limited became a note-issuing bank from 2004), th e other two being the Bank of China (Hong Kong) and The Hong Kong and Shanghai B anking Corporation.

47 The bank supports marathons in many cities, including London (The City Run), Jer sey, Singapore, Dubai, Lahore, Mumbai, Hong Kong, and Nairobi. The first Standar d Chartered marathon in Kuala Lumpur will be launching this year. Standard Chart ered global presence Asia Pacific I ndia A fghanistan A ustralia B angladesh B runei Darussalam C amb odia C hina H ong Kong epal auritius N ietnam alaysia M hailand V acau M aiwan T aos M ri Lanka T apan L outh Korea S ndonesia J ingapore S I hilippines S akist an P P Africa S ierra Leone B otswana C ameroon C ote d lvoire G hana K enya N igeria i mbabwe ambia Z ganda Z he Gambia U anzania T outh Africa T S The Middle East B ahrain E gypt J ordan L ebanon O man Q atar U AE

48 UK/Europe A ustria F rance G ermany G uernsey $ Italy J ersey ussia omania R nit ed Kingdom oland R kraine U onaco P urkey U uxembourg M witzerland T azakhstan L weden S K pain S S The Americas A rgentina B ahamas B razil C anada C ayman Islands eru exico P alk land Islands M olombia F enezuela hile C SA V C ruguay U U Application of Chi-square for checking the relationship between age and types 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 20-40 >40 HYPOTHESIZE 26 41 24 91 95 40 13 148 18 20 32 70 139 101 69 309 Step1: The hypothesis as follows Ho: Type of Accounts offered is independent of age Ha: Type of Accounts offered is not independent of age Step2: Contingency ta ble for observed frequency: Age 0-20 20-40 >40 Current A/c 26 41 24 91 Savings A /c 95 40 13 148 Fixed deposit A/c 18 20 32 70 Total 139 101 69 309 Step3: Alpha is 0.01 Step4: Here there are three rows(r =3) and three columns(c =4).The degree of freedom is (3-1)(3-1)=4, and the critical value is X2.01,4 =13 .2777.the decision is to reject the null hypothesis if the observed value of chi -square is greater than 13.2277. Step4: Contingency table for Expected frequency : Age 0-20 20-40 >40 Current A/c 40.9 29.74 20.32 91 Savings A/c 66.58 48.38 33. 05 148 Fixed deposit A/c 31.49 22.88 15.63 70 Total 139 101 69 309 e11 = 139*91/309=40.9 e21= 101*91/309= 29.74 e31= 69*91/309= 20.32 e12= 139*148/309= 66.58 e22=101*148/309= 48.38 e32= 69*148/309= 33.05 e13= 139*70/309= 31.49 e23=101*70/309= 22.88 e33=69*70/309= 15.63 Step5: Table for the calculation of observed X2 is: O 26 95 18 41 40 E 40.94 66. 58 31.49 29.74 48.38 (O-E)2 223.20 807.70 181.98 126.79 70.22 (O-E)2/E 5.45 12.1 3 5.78 4.26 1.45

50 20 24 13 32 22.88 20.32 33.05 15.63 8.2944 13.54 402 267.98 0.36 0.67 12.16 17.15 59.41 DECISION Step6: The observed value of Chi-square, 59.41, is greater than the cri tical value, 13.277, so the null hypothesis is rejected. BUSINESS IMPLICATION: S tep7: The two variables Accounts offered and age are not independent. Examinatio n of the categories reveals that younger people tend to prefer savings account a nd older people prefer fixed deposit account. This information helps the manager s 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 re quired to undergo two months company project study after completing the third tr imester.

51 The objective of the training module is to help the students to understand the b usiness environment well and equip themselves with the work culture of the compa nies 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 Summ er 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 Sta ndard Chartered products- Current Account, Savings Account and Insurance Plans. In the second half, I had to analyze consumer behaviour towards Standard Charter ed products as compared to other multi-national banks. This comparison is follow ed by a survey and its analysis and at the end the recommendations that could ma ke 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 lev el 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 se lling of financial products, various market research methods were used to accomp lish its goals. I conducted a

53 market survey to know about the various players and their performance in the ind ustry taking into consideration the various products and the product related ser vices provided by them. The stepwise methodology that was used is: 1. Secondary Research: Company description was obtained through websites, busine ss magazines, and journals and from the organization itself. Information like curre nt market share was extracted from net. 2. Sampling: Selecting the sample: Population that was taken as a sample included randomly se lected customers of some multinational banks like Standard Chartered Bank, ABN-A MRO, 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. Int eraction with customers at Malls and other market places. Questionnaires were de signed 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 surve y was used to discover the potential segment for generating new business for the organization and thereby devise strategies to generate new business from that p otential segment Findings and Analysis The findings and analysis has been done through the questionnaire which is as fo llows:

54 Questionnaire of Banks Note: Please fill this questionnaire carefully as we will be using this for a pr oject Demographics 1. Name __________________________________________________ 2. Age a) Below 20 years c). 40 60 years 3. Sex a) Male 4. Marital Status a) Marri ed b) Single 5. Occupation a) Student c) Business b) Female b) 20 40 years d) Ab ove 60 years b) Service d) Others ______________________ 6. Annual Income a) Below Rs 2, 00,000 p.a. b) Between Rs 2, 00,000 & 5, 00,000 c) Above 5, 00,000 7. Contact Number/Email _______________________ 8. Your criteria for choosing a particular bank: (Please tick the appropriate bo x, 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 Ban k 1.Standard Chartered 2. Citibank 3. ABN Amro 4. HSBC 1 2 3 4 5 10. Bank Type of services availed in the above mentioned bank. SCB ABN AMRO HSBC Citibank Services

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

57 Age Frequency 15 26 40 19 100 Percent 15.0 26.0 40.0 19.0 100.0 Valid Percent 15 .0 26.0 40.0 19.0 100.0 Cumulative Percent 15.0 41.0 81.0 100.0 Valid Below 20 years Between 20 and 40 years Between 40 and 60 years Above 60 years To tal From the above analysis I could conclude that the people of 20-60 years are tran sacting with the multinational banks and majority is of people between 40-60 yea rs. Occupation

58 Occupation Frequency 13 47 36 4 100 Percent 13.0 47.0 36.0 4.0 100.0 Valid Perce nt 13.0 47.0 36.0 4.0 100.0 Cumulative Percent 13.0 60.0 96.0 100.0 Valid Student Service Business Others Total From the above figure I can conclude that service people are mainly dealing with the multinational banks. Annual Income

59 Annual Income Frequency 13 11 44 32 100 Percent 13.0 11.0 44.0 32.0 100.0 Valid Percent 13.0 11.0 44.0 32.0 100.0 Cumulative Percent 13.0 24.0 68.0 100.0 Valid Dependant Below 2 Lakh Between 2-5 Lakh Above 5 Lakh Total From the above data I could say that people having income between 2-5lakhs and a bove 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 que stionnaire. 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 re sults were obtained for each of these factors: 1. Location Location Frequency 11 50 39 100 Percent 11.0 50.0 39.0 100.0 Valid Percent 11.0 50.0 39.0 100.0 Cumulative Percent 11.0 61.0 100.0 Valid Average High Highest Total From the above chart I could say that location is one is of the main factor to a ffect the dealings with the multinational banks. 2. Ambience

61 Am bience Frequency Valid Lowest Low Average High Highest Total 3 8 51 34 4 100 Percent 3.0 8.0 51.0 34.0 4.0 100.0 Valid Percent 3.0 8.0 51.0 34.0 4.0 100.0 Cu mulative Percent 3.0 11.0 62.0 96.0 100.0 From the above I could say that on an average ambience affect the people decisio ns about the dealing with the multinational banks. 3. Timings

62 Tim ings Frequency Valid Lowest Low Average High Highest Total 1 4 58 36 1 100 P ercent 1.0 4.0 58.0 36.0 1.0 100.0 Valid Percent 1.0 4.0 58.0 36.0 1.0 100.0 Cum ulative Percent 1.0 5.0 63.0 99.0 100.0 From the above figure I could say that timings is averagely affected the custome rs of multinational banks 4. Products Offered

63 Product Offered Frequency 17 64 17 2 100 Percent 17.0 64.0 17.0 2.0 100.0 Valid Percent 17.0 64.0 17.0 2.0 100.0 Cumulative Percent 17.0 81.0 98.0 100.0 Valid Low Average High Highest Total From the above chart I could say the products offered by the banks averagely aff ect the customers of multinational banks. 5. Information

64 Information Frequency 15 74 11 100 Percent 15.0 74.0 11.0 100.0 Valid Percent 15 .0 74.0 11.0 100.0 Cumulative Percent 15.0 89.0 100.0 Valid Average High Highest Total From the above chart I could say that Information available to the customers aff ects their decisions about the multinational banks. 6. Service

65 Service Frequency Valid Average High Highest Total 1 40 59 100 Percent 1.0 40.0 59.0 100.0 Valid Percent 1.0 40.0 59.0 100.0 Cumulative Percent 1.0 41.0 100.0 From the above chart I could say that the services offered by the multinational banks are the major factor which affects the customers decisions. Rating of Banks

66 1.Standard Chartered Bank Standard Chartered Frequency 3 32 50 15 100 Percent 3.0 32.0 50.0 15.0 100.0 Val id Percent 3.0 32.0 50.0 15.0 100.0 Cumulative Percent 3.0 35.0 85.0 100.0 Valid Low Average High Highest Total From the chart I could say that Standard chartered is the high rated bank accordin g to the people 2.ABN Amro

67 ABN Am ro Frequency 38 60 2 100 Percent 38.0 60.0 2.0 100.0 Valid Percent 38.0 6 0.0 2.0 100.0 Cumulative Percent 38.0 98.0 100.0 Valid Average High Highest Total From the above data I could say that ABN AMRO is also having a good reputation i n the market. 3.Citibank

68 Citibank Frequency 30 66 4 100 Percent 30.0 66.0 4.0 100.0 Valid Percent 30.0 66 .0 4.0 100.0 Cumulative Percent 30.0 96.0 100.0 Valid Average High Highest Total 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 Frequency Valid Average High Highest Total 6 71 23 100 Percent 6.0 71.0 23. 0 100.0 Valid Percent 6.0 71.0 23.0 100.0 Cumulative Percent 6.0 77.0 100.0 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 propor tion among all the products and services offered. 2. ABN AMRO

71 From the above I could say that both Current Account and Savings Account contrib uting 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 a nd current account customers. Questionnaire of Insurance

74 Note: Please fill this questionnaire carefully as we will be using this for a pr oject Demographics 1. 2. Name __________________________________________________ Age a) Below 20 years c). 40 60 years b) 20 40 years d) Above 60 years 3. Sex a) Male b) Female 4. Marital Status a) Married b) Single Occupation a) Student c) Business 5. b) Service 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. Location 2. Ambience 3. Timings 4. Variety Offered 5. C larity of Information 6. Service 1 2 3 4 5 9. Rate the following banks on a scale of 1 to 5 of satisfaction level. (Please tic k the appropriate box, 1 being the lowest and 5 the highest) Rating Scale Insura nce Companies 1. Bajaj Allianz 2. ICICI 3. HDFC 4. Birla Sun life 1 2 3 4 5 10. Type of services availed in the above mentioned Insurance company:

76 Insurance Company Bajaj Allianz ICICI HDFC Birla Sun life Services 1.Term Insurance 2. Cash back plan 3.ULIPs 4.Child Care plan Age

77 Age Frequency 15 26 40 19 100 Percent 15.0 26.0 40.0 19.0 100.0 Valid Percent 15 .0 26.0 40.0 19.0 100.0 Cumulative Percent 15.0 41.0 81.0 100.0 Valid Below 20 years Between 20 and 40 years Between 40 and 60 years Above 60 years To tal From the above chart I could say that the data has been taken mostly from the pe ople of 40-60 years. Occupation

78 Occupation Frequency 13 47 36 4 100 Percent 13.0 47.0 36.0 4.0 100.0 Valid Perce nt 13.0 47.0 36.0 4.0 100.0 Cumulative Percent 13.0 60.0 96.0 100.0 Valid Student Service Business Others Total From the above chart I could say that the most of the respondents are service pe ople. Annual Income

79 Annual Income Frequency 13 11 44 32 100 Percent 13.0 11.0 44.0 32.0 100.0 Valid Percent 13.0 11.0 44.0 32.0 100.0 Cumulative Percent 13.0 24.0 68.0 100.0 Valid Dependant Below 2 Lakh Between 2-5 Lakh Above 5 Lakh Total From the above data I could say that people whose annual income is between 2-5 l akh 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 q uestionnaire. The respondents were asked to rate each of these features on a sca le 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 custom ers 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 decisio ns 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 aff ect the customers of multinational banks.

84 5. Information From the above chart I could say that Information available to the customers aff ects their decisions about the Insurance Companies but on a highest level. Becau se 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 Comp anies are the major factor which affects the customers 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 t he market. 3. HDFC

88 From the above figure I could say that HDFC is also a good bank due to its servi ces. 4. Birla Sun Life

89 From the above chart I could say that people are also satisfied with Birla Sun L ife 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 Ins urance 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 custom ers.

94 Conclusion & Recommendation Service with a smile: todays finicky banking customer will settle for nothing les s. Hes come to realize, somewhat belatedly, that he is king. He demands that bank s 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 co nsiderations of service quality rather than any other factor. He wants competiti ve loan rates, yes, but he also wants his loan or credit card application proces sed 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 i mpersonal Net banking, yes, but during his occasional visits to the branch, he a lso wants the comfort of personalized, human interactions and facilities that ma ke 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-frien dly: its overall service standards, rated for ease of opening an account; how co urteous, accessible and knowledgeable its staff are; transaction time for servic es; how innovative the bank is in introducing products and services; how proacti vely 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 h ow probable it is that its customers will recommend the bank to others. Branch Facilities Walk into any branch of a multinational or leading Indian priv ate bank, and youll believe youre in a plush country club. Many other banks, of co urse, have miles to go in this sphere, but theres a growing realizations among th em that offering a pleasant banking ambiencewith comfortable seating, air-conditi oning, restroom and drinking water facilitiesand easy, uncluttered access to bank stationery makes for good business. ATM Service By automating the most common day-to-day banking transactionscash wit hdrawal, cheques deposits and statement generationATMs have, in a sense, liberate d customers from timewasting branch visits and surly staff.

95 Increasingly, however, banks are waking up to the merits of an expansive, glitch -free ATM network. Theyre investing in technology (read newer machines), so theyll be fewer card rejects. And theyre entering into tie-ups with one another to shar e their ATM network (for a nominal fee, to be paid by customers); which means yo u no longer have to bear the agony of having to stand in overlong queues at your banks ATMs and gape at a state-of-the-art SBI ATM nearby that forever seems empt y. 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 wh at does it mean for the customer? More products, more services and more confusio n? 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 ba nking. For instance, banks will likely move to differential interest rates on cr edit cards based on customer history. You are likely to see greater focus on cus tomer satisfaction and relationship banking. Banks will offer a host of value-ad ded products and services to ensure long-term relationships with their customers . Many new-age banks, hungry for growth, have ignored customer service like quic k feedback to complaints and intelligent call centre responses. Customers will i ncreasingly 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 sm all and medium sector, a move thats just been flagged off by most banks. Unlike t raditional corporate lending, this comes with new parameters like lower collater al limits and innovative lending norms. Then theres technology. It will become po ssible 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 rat es 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 inter est. Market Potential With a burgeoning national economy, financial-sector reforms an d a growing middle class, the Indian market offers huge potential for Standard C hartered Bank to grow. The large and growing middle class population and increas e in disposable incomes have created booming markets in housing, motor, televisi ons, computers, mobile phones and other products, most of which require

96 financing. SCB has been effective in leveraging this opportunity with its produc t and service offerings. The Road Ahead After 150 years of service to India, Standard Chartered Bank conti nues 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 bu siness in the country and to further expand operations across the country. Recommendations: Doing business in India requires an understanding of the country environment, in cluding factors influencing consumer lifestyle choices. Therefore it becomes ver y important for the multinational banks to have a good understanding of its pote ntial consumers which can be helpful for Standard Chartered in increasing its co nsumer base in India thereby increasing its business. These are few recommendati ons which can help Standard Chartered Bank to stay ahead in the competition. Str ong need of brand building: Standard Chartered needs to build a good brand image by providing innovative products ad providing top class services accordingly wi th their products. Improve its Services: A lot of people were not too much satis fied with the services provided by Standard Chartered Bank. The services provide d by the other multinational ban in India are better as compared with Standard C hartered; 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 pr esence felt in area where it has low or no presentation. Understand challenges t hat Standard Chartered Bank is facing from the competition and also analyze and understand the future prospects and use it to understand the opportunities and t hreats facing the business and the factors driving success. Get insight into tre nds in market performance Pinpoint growth sectors and identify factors driving c hange.

97 Identify market and brand leaders and understand the competitive environment. Id entify 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 pickup and delivery of even small-value cheques. A businessman would like a ban k 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 penetra tion. The residents of such cities are affluent and they are good markets for mu ltinational 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 wi th high-unrealized potential. References

98 1. Internet Sites w 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