A-study-on-Retail-Credit-Risk-and-Fraud-Management-of-Standard-Chartered-Bank(1)

INDEPENDENT UNIVERSITY, BANGLADESH.
A study on Retail Credit Risk, Control Policies and Fraud Management of
Standard Chartered Bank
by
Shurid Zaman
ID 1210228
An Internship Report Presented in Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Business Administration
14th
January 2016

Topic: A study on Retail Credit Risk, Control and Fraud Management of
Standard Chartered Bank
By
Shurid Zaman
ID 1211160
Has been approved
By
Naheem Mahtab
Lecturer
School of Business
IndependentUniversity, Bangladesh

Retail Credit Risk andFraud Management ofStandardChartered Bank
Letter of transmittal
14th January 2016
To,
Naheem Mahtab
Lecturer
School of Business
Independent University, Bangladesh.
Subject: Submission of internship report
Dear Sir,
Enclosed is the report for the internship program. The report contains 2 parts the working report
and the research, the working report is on the credit risk and fraud management of Standard
Chartered Bank Bangladesh.
The findings on the research were satisfactory, it helped me realize how important it is for a
multinational corporation to improve their credit business operation to compete in the
international market. I have gained vast knowledge about the credit policy, by Working in the
Credit, Retail Banking department of Standard Chartered Bank.
Sincerely,
Shurid Zaman

TABLE OF CONTENTS
Acknowledgement ...................................................................................................................................................................1
Executive Summary..................................................................................................................................................................2
Objectives:.................................................................................................................................................................................2
Credit Risk Management Process of SCB in a diagram..............................................................................................................4
ORGANIZATIONAL PART..........................................................................................................................................................4
Mission, Vision and Values.............................................................................................................................................................5
Vision..............................................................................................................................................................................................5
Mission...........................................................................................................................................................................................5
Brand Promise...............................................................................................................................................................................5
Aspirations.....................................................................................................................................................................................5
Corporate Values..........................................................................................................................................................................5
Corporate Commitments ............................................................................................................................................................6
History................................................................................................................................................................................................6
Predecessors:................................................................................................................................................................................6
1969 to 2000.................................................................................................................................................................................7
2000 to 2010.................................................................................................................................................................................8
2010 to present.........................................................................................................................................................................10
Standard Chartered Bank Bangladesh.......................................................................................................................................11
Products...................................................................................................................................................................................12
Account Services ...........................................................................................................................................................................12
Savings Account.........................................................................................................................................................................12
VIP Savers Account....................................................................................................................................................................12
Mudaraba Savings account:...................................................................................................................................................12
Freedom account......................................................................................................................................................................13
Graduate Account.....................................................................................................................................................................13

Access Account..........................................................................................................................................................................13
Current Account ........................................................................................................................................................................13
Islamic current account............................................................................................................................................................13
VIP Current Account (VIPCA)...................................................................................................................................................13
Resident Foreign Currency Account.......................................................................................................................................13
Non-Resident Foreign Currency Deposit (NFCD) Account .................................................................................................14
Fixed Deposit..............................................................................................................................................................................14
Short Term Deposit (STD) Accounts or Call deposits:.........................................................................................................14
Loan Products ................................................................................................................................................................................14
Personal Loan.............................................................................................................................................................................14
Auto Loan....................................................................................................................................................................................14
Business Installment Loan (BIL):.............................................................................................................................................15
Mortgage loan:..........................................................................................................................................................................15
Other Services offered by SCB ....................................................................................................................................................15
Debit card...................................................................................................................................................................................15
Credit Card:................................................................................................................................................................................15
24-Hour Free Customer Service..............................................................................................................................................16
Call Center ..................................................................................................................................................................................16
Motto of Call Centre:................................................................................................................................................................16
Automated Teller Machine (ATM) .............................................................................................................................................16
Bills Pay Centre..........................................................................................................................................................................16
i- Banking....................................................................................................................................................................................17
SMS Banking...............................................................................................................................................................................17
Evening Banking ........................................................................................................................................................................17
Online Banking...........................................................................................................................................................................17
Government Bonds...................................................................................................................................................................17

Safe Deposit Locker Service.....................................................................................................................................................17
Auto Bills Pay..............................................................................................................................................................................18
Welcome Pack ...........................................................................................................................................................................18
Overview of Standard Chartered Bank (SCB) ....................................................................................................................20
Standard Chartered Bank in Bangladesh..................................................................................................................................20
CURRENT SITUATION.............................................................................................................................................................21
Organizational Structure (SCB) ...................................................................................................................................................22
Background of Standard Chartered Bank .................................................................................................................................24
Emergence of Standard Chartered Bank in Bangladesh.........................................................................................................25
Standard Chartered Bank’s Governing Body........................................................................................................................26
STandard Chartered Bank’s Organizational Structures...................................................................................................28
Mission of Standard Chartered Bank.........................................................................................................................................32
Vision of Standard Chartered Bank............................................................................................................................................32
Goals and Values of Standard Chartered Bank........................................................................................................................33
Strategies of Standard Chartered Bank.....................................................................................................................................34
STandard Chartered Bank Internal Analysis......................................................................................................................36
SWOT Analysis ...............................................................................................................................................................................36
W = Weakness ...........................................................................................................................................................................38
T = Threats..................................................................................................................................................................................41
SWOT Analysis of the Retail Clients Department................................................................................................................43
Standard Chartered Bank External Analysis ......................................................................................................................44
Industry Analysis............................................................................................................................................................................44
Porter’s 5 Forces Model...........................................................................................................................................................46
Barriers to entry: .......................................................................................................................................................................46
Rivalry among Established Firms............................................................................................................................................47
Bargaining Power of Buyers:...................................................................................................................................................48

Bargaining Power of Suppliers:...............................................................................................................................................50
Threats of Substitute Products/Services:..............................................................................................................................51
Implications to organization/company:....................................................................................................................................53
Implications to University’s Internship Program:................................................................................................................53
Others:.........................................................................................................................................................................................54
Recommendation:.........................................................................................................................................................................54
Problems and solutions for Standard Chartered Bank.......................................................................................................55
Recommendations .................................................................................................................................................................58
Challenges and recommendations for improvement.............................................................................................................58
Limitations of study ......................................................................................................................................................................59
Work-Related Activities:.......................................................................................................................................................60
Introduction to Credit Initiation.................................................................................................................................................60
Risk Management..........................................................................................................................................................................61
Credit Cycle.....................................................................................................................................................................................61
A diagram of Credit Risk Management: ................................................................................................................................61
Credit Risk.......................................................................................................................................................................................62
Credit policies ................................................................................................................................................................................62
Risk management framework.....................................................................................................................................................64
Credit ratingand measurement .................................................................................................................................................64
Credit approval..............................................................................................................................................................................66
Concentration risk.........................................................................................................................................................................66
Credit monitoring..........................................................................................................................................................................67
Credit mitigation............................................................................................................................................................................68
Traded products ............................................................................................................................................................................69
Securities ........................................................................................................................................................................................69
Maximum exposure to credit risk..............................................................................................................................................70

Collateral.........................................................................................................................................................................................70
Loans and advances......................................................................................................................................................................71
Traded products ............................................................................................................................................................................72
Collateral and other credit enhancements possessed or called upon ................................................................................72
Off-balancesheet exposures.......................................................................................................................................................73
Other risk mitigates ......................................................................................................................................................................74
Other Relevant Activities:.....................................................................................................................................................74
STAGE 1: REVIEW APPLICATION FOR COMPLETENESS ...........................................................................................................76
Application Data Capture and Validation.............................................................................................................................76
Source Codes..............................................................................................................................................................................76
Fraud and other Internal Checks:...........................................................................................................................................77
STAGE 2: CREDIT SCREENING CRITERIA.....................................................................................................................................78
STAGE 3: REVIEW DEBT BURDEN REQUIREMENT ...................................................................................................................80
Review Criteria...........................................................................................................................................................................80
STAGE 4: REVIEW CREDIT CHECKS .............................................................................................................................................81
Credit bureau Check .................................................................................................................................................................81
STAGE 5: VERIFY APPLICATION ...................................................................................................................................................82
Customer Verification and Other Investigation...................................................................................................................82
Final Credit Decision.................................................................................................................................................................82
Approvals....................................................................................................................................................................................83
CONSTRAINS/CHALLENGES:.................................................................................................................................................83
Identified/Observed in the Organization:.................................................................................................................................83
A MODEL OF SAS FUNCTION RUNNING ....................................................................................................................................85
ReSearch on SME BANKING..................................................................................................................................................86
Objective.........................................................................................................................................................................................88
Methodology..................................................................................................................................................................................88

One-Sample z Test: ...................................................................................................................................................................88
Hypothesis tests and Findings..............................................................................................................................................89
Income VS Business Segment .....................................................................................................................................................90
One way ANOVAs (Geography Vs Days per due).....................................................................................................................97
One way ANOVAs (Geography Vs Loan Limit)..........................................................................................................................98
One way ANOVAs (Geography Vs Security)............................................................................................................................100
1.1 One way ANOVAs (Geography Vs Business Vintage).............................................................................................101
1.2 One way ANOVAs (Geography Vs DBR)....................................................................................................................102
One way ANOVAs (Geography Vs Interest Rate)...................................................................................................................104
One way ANOVAs (Business Segment Vs Days per due)......................................................................................................106
One way ANOVAs (Business Segment Vs Limit).....................................................................................................................108
One way ANOVAs (Business Segment Vs Security)...............................................................................................................110
One way ANOVAs (Business Segment Vs Business Vintage)...............................................................................................111
One way ANOVAs (Business Segment Vs DBR) ......................................................................................................................114
One way ANOVAs (Business Segment Vs Interest Rate) ......................................................................................................117
One way ANOVAs (Days per due Vs Limit) .............................................................................................................................119
One way ANOVAs (Days per due Vs Security)........................................................................................................................121
One way ANOVAs (Days per due Vs Business Vintage)........................................................................................................125
One way ANOVAs (Days per due Vs DBR)...............................................................................................................................127
One way ANOVAs (Days per due Vs Interest Rate) ...............................................................................................................128
One way ANOVAs (Days per due Vs Income).........................................................................................................................129
One way ANOVAs (Security Vs Limit) ......................................................................................................................................131
One way ANOVAs (Security Vs Business Vintage).................................................................................................................133
One way ANOVAs (Security Vs DBR)........................................................................................................................................134
One way ANOVAs (Security Vs Interest Rate) ........................................................................................................................135
One way ANOVAs (Security Vs Income)..................................................................................................................................136

Comparison between Lower Tenor loans (36 Months) and Higher Tenor loans (60 Months) .....................................138
Findings:........................................................................................................................................................................................151
Limitation......................................................................................................................................................................................151
LESSONS LEARNED FROM THE INTERNSHIP PROGRAM:...............................................................................................151
CONCLUDING STATEMENT:................................................................................................................................................153
Suggestions:.................................................................................................................................................................................155
References .............................................................................................................................................................................155
Appendix A: Data of SME customers of Standard Chartered Bank .............................................................................168

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ACKNOWLEDGEMENT
There is an English proverb “Two heads are better than one”. That is, no one can obtain a noble
objective alone. This internship report is an accumulation of many people’s endeavor. But at the
beginning I would like to convey my sincere appreciation to the almighty Allah for giving me the
strength & the ability to finish the task within the planned time. Then I like to express my sincere
gratitude to everyone who contributed towards preparing &making this study successfully.Major
contribution was received from the managers of Standard Chartered Bank as from the Portfolio
Monitoring and Forecasting Department. To prepare this internship report considerable thinking
& information input from various sources were involved.
I would like thank my academic supervisor Mr. Naheem Mahtab, Lecturer, School of Business,
Independent University, Bangladesh for showing me what it takes to deliver a good advanced
working report. The working report would have not been completed without the help of my
office supervisor Hasnain Waheed Khan- Head, Credit Portfolio Monitoring and Forecasting
Team, Retail Clients.
I would like to thank the managers at Standard Chartered Bank, Shabib Al Mamum and Rinco
Thomas Das for training me. Special thanks goes to my mentors Shakib Shams Huq-Senior
Manager and Naem Ahmed-Senior Manager for guiding me and be a part of their aspiring team.

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EXECUTIVE SUMMARY
I have undertaken this report that is ‘Credit Control & Credit Risk Management Process of Standard
Chartered Bank’ as this is a vital element of any banks both domestic and international. Otherwise
banks will loose its fund and will face financing crisis for not managing credit properly. In the BBA
program, the internship is one of the vital parts, which has to be done by every student. The
internship program provides an opportunity for the student to minimize the gap between
theoretical and practical knowledge and will help in real life. After completing my BBA program, it
is obligatory to complete my internship program and as I am a student of Accounting & Finance I
wanted to do my internship on a reputed bank for my future professional career. I got the privilege
to do my internship in Standard Chartered Bank Limited (SCB). I was selected in Retail Clients
department and was assigned with Portfolio and Forecasting team in the head office in Gulshan
Avenue. As a student of business and as I am willing to work in financial institutions like banks, I
have to learn the process of credit control and how it can be managed so that any partular financial
institutions can receive the provided loan money on time for further investment and also I can use
my working knowledge and experience in the job sector that I am about to enter. After analysing
my report, the university’s faculties and students can gather more knowledge on this following
topic. Last of all, the business and corporate people will have more transparent ideas of credit
control and risk management process of Standard Chartered Bank and also other international
banks.
OBJECTIVES:
Broad/General objective: Preparing an internship report on ‘Credit Control & Credit Risk
Management Process of Standard Chartered Bank Limited’ to completion of my BBA undergraduate
program.
Specific objective: To attain the broad objective the following specific objectives will be pursued:
 Identification of different wings and their sub units of Credit Control & Risk Management
Process (CCRM) of Standard Chartered Bank (SCB).

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 Identifying different types of credit facilities offered to different types of clients.
 Identifying the functions of different wings as well as the whole department of RetailClients
or Banking.
 Analyzing tools and techniques to evaluate a credit proposal.
 Identifying the collection process of default loans.
 Identifying steps taken to recover the bank’s bad portfolio.
 Analyzing performance of CCRMon the basis of amount of non-performing loans.
 Analyzing performance of CCRMon the basis of loan recovery performance.
Risk is the element of uncertainty or possibility of loss that prevail in any business transaction in
any place, in any mode and at any time. In the financial arena, enterprise risks can be broadly
categorized as Credit Risk, Operational Risk, Market Risk and Other Risk. Credit risk is the possibility
that a borrower or counter party will fail to meet agreed obligations. Globally, more than 50% of
total risk elements in Banks and FinancialInstitution (FI) s are credit riskalone. Thus managing credit
risk for efficient management of a FI has gradually become the most crucial task. Credit risk
management encompasses identification, measurement, matching mitigations, monitoring and
control of the credit risk exposures. As a leading bank of Bangladesh and all around the world,
Standard Chartered Bank Limited has a fully functioning department to perform the crucial task of
Credit Risk Management (CRM) and also to controlling and analyzing before lending.
According to my association with SCB from the beginning to ending, I have seen the process and
procedures of retail clients’ division that the way they work to control the credit and to minimize
the credits risk. It has Fraud Checking Unit (FCU) whose purpose is to check on daily basis whether
there is any defaulter or not. To update the loans like Personal Loan (PL), Mortgage Loan (ML), Auto
Loan (AL) etc., retail client teams created a report which is known as AFPQR (Actual Forecast
Portfolio Quality Review) on every month. The department alsokeeps records of the credit pending
application lastmonth, the amount of processed credit, numbers of approved credit, booked credit,
declined, cancelled and so on and this whole process is known as Credit Approval Process
Performance. As I have gone through all these reports and records, it helped to achieve my

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objective that is to know the working process of international banks and also learned the credit
control process and management process of SCB.
CREDIT RISK MANAGEMENT PROCESS OF SCB IN A DIAGRAM
ORGANIZATIONAL PART
Standard Chartered Bank is a more than 150-year-old British multinational banking and financial
services company headquartered in London. It operates a network of more than 1,200 branches
and outlets (including subsidiaries, associates and joint ventures) across more than 71 countries
and employs more than 90,000 people. It is a universal bank with operations in consumer,
corporate and institutional banking, and treasury services. Despite its UK base, it does not conduct
retail banking in the UK, and around 90% of its profits come from Asia, Africa and the Middle East.
The name Standard Chartered comes from the names of the two banks from which it was formed
by merger in 1969: The Chartered Bank of India, Australia and China, and Standard Bank of British
South Africa.
Standard Chartered has a primary listing on the London Stock Exchange and is a constituent of the
FTSE 100 Index. It had a market capitalization of approximately £33 billion as of 23 December 2011;
the 13th-largest of any company with a primary listing on the London Stock Exchange. It has
secondary listings on the Hong Kong Stock Exchange and the National Stock Exchange of India. Its

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largest shareholder is the Government of Singapore-owned Temasek Holdings (Standard Charted,
2015).
MISSION, VISION AND VALUES
VISION
To be the world’s best international bank.
MISSION
To bank the people and companies diving investment, trade and the creation of wealth Asia Africa
and the Middle East.
BRAND PROMISE
Here for good.
ASPIRATIONS
 Relationship: Build trusted relationships with the people, companies and institutions
shaping our markets' future.
 Investment: Play a leading role in facilitating investment and deepening financial market.
 Trade: Become the undisputed leader in commercial payments and financing for and in Asia,
Africa and the Middle East.
 Wealth: Be recognized as a leader in growing and protecting our clients' wealth.
 Relevant Scale: Establish sufficient scale and balance sheet and franchise strength to be
relevant and influential in our key markets.
CORPORATE VALUES
 Courageous: Take measured risks and stand up for what is right.

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 Responsive: Deliver relevant, timely solutions for clients and customers.
 International: Value diversity and collaborate across the network.
 Creative: Innovate and adapt, continuously improving the way to work.
 Trustworthy: Reliable, open and honest.
CORPORATE COMMITMENTS
 Colleagues: A great place to work, enabling individuals to grow and teams to win.
 Society: A force for good, promoting sustainable economic and social development.
 Invertors: A distinctive investment, delivering consistently superior performance via
disciplined growth
 Regulators: A responsible partner with exemplary governance and ethics. (Standard
Chartered Bank, 2014)
HISTORY
PREDECESSORS:
Chartered Bank: The Chartered Bank began when Queen Victoria granted a Royal Charter
to Scotsman James Wilson in 1853. Chartered opened its first branches in Mumbai, Kolkata
and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. The Bank started
issuing banknotes of the Hong Kong dollar in 1862
Standard Bank: The Standard Bank was aBritish bank founded in the Cape Province of South
Africa in 1862 by Scot, John Paterson. Having established a considerable number of
branches, Standard was prominent in financing the development of the diamond fields of
Kimberley from 1867 and later extended its network further north to the new town of
Johannesburg when gold was discovered there in 1885. Halfthe output of the second largest
gold field in the world passed through The Standard Bank on its way to London. Standard
expanded widely in Africa over the years, but from 1883 to 1962 was formally known as the
Standard Bank of South Africa. In 1962 the bank changed its name to Standard Bank Limited,

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and the South African operations were formed into a separate subsidiary which took the
parent bank's previous name, Standard Bank of South Africa Ltd (Annual Report,2015).
1969 TO 2000
Both banks acquired other smaller banks along the way and spread their networks further. In 1969,
the banks decided to merge and to counterbalance their network by expanding in Europe and the
United States, while continuing expansion in their traditional markets in Asia and Africa. In 1986,
Lloyds made a hostile takeover bid for the Group. The bid was defeated; however, it spurred
Standard Chartered into a period of change, including a series of divestments notably in the US and
South Africa. Union Bank was sold to the Bank of Tokyo and United Bank of Arizona was sold to
Citicorp. In 1987, Standard Chartered sold its remaining interests in the South African bank; since
then the Standard Bank Group has been a separate entity. In 1992, scandal broke when banking
regulators charged several employees of Standard Chartered in Mumbai with illegally diverting
depositors' funds to speculate in the stock market. Fines by Indian regulators and provisions for
losses cost the bank almost ₤350 million, at that time fully a third of its capital. In 1994, London's
Sunday Times reported that an executive in the bank's metals division had bribed officials in
Malaysia and the Philippines to win business. The bank, in a statement on 18 July 1994,
acknowledged that there were "discrepancies in expense claims included gifts to individuals in
certain countries to facilitate business, a practice contrary to bank rules".
In 1994, the Hong Kong Securities and Futures Commission found Standard Chartered's Asian
investment bank to have illegally helped to artificially support the price of new shares they had
underwritten for six companies from July 1991 to March 1993. The bank admitted the offence,
apologized and reorganized its brokerage units. The commission banned the bank from
underwriting IPOs in Hong Kong for nine months. In 1997, Standard Chartered sold its metals
division to Toronto-based Scotiabank for US$26 million. Standard Chartered's Asian investment
banking operations never recovered. In 2000 the bank closed them down. In the late 1986, a
business consortium purchased a 35% stake to fend off Lloyds. A member of this consortium was

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Malaysian-born property tycoon Khoo Teck Puat, who purchased 5% of the bank's shares, which he
later increased to 13.4%.
2000 TO 2010
In 2000, Standard Chartered acquired Grindlays Bank from ANZ, increasing its presence in private
banking and further expanding its operations in India and Pakistan. Standard Chartered retained
Grindlays' private banking operations in London and Luxembourg, as well as the subsidiaryin Jersey,
all of which were integrated into its own private bank. This now serves high-net-worth customers
in Hong Kong, Dubai, and Johannesburg under the name Standard Chartered Grindlays Offshore
Financial Services.
Leading to the incorporation of Standard Chartered (Hong Kong) on 1 July 2004, the Legislative
Council of Hong Kong amended Legal Tender Notes Issue Ordinance. The amendment replaced
Standard Chartered Bank with its newly incorporated subsidiary - Standard Chartered Bank (Hong
Kong) Ltd - as one of the note-issuing banks in Hong Kong. The same year, Standard Chartered Bank
and Astra International (anIndonesian conglomerate, a subsidiaryof Jardine Matheson Group) took
over Permata Bank and in 2006, both shareholders increased their joint ownership to 89.01%. With
276 branches and 549 ATMs in 55 cities throughout Indonesia, Permata Bank has the second largest
branch network in Standard Chartered organization.
On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. The bank has since
rebranded the branches as SC First Bank. Standard Chartered completed the integration of its
Bangkok branch and Standard Chartered Nakornthon Bank in October 2005, renaming the new
entity Standard Chartered Bank (Thailand). Standard Chartered also formed strategic alliances with
Fleming Family & Partners to expand private wealth management in Asia and the Middle East, and
acquired stakes in ACB Vietnam, Travelex, American Express Bank (Bangladesh) and Bohai Bank
(China). The largest shareholder, Khoo Teck Puat, died in 2004; and two years later, on 28 March
2006, the Singapore state-owned private investment firm, Temasek, became the bank's largest
shareholder, when it bought the 11.55% stake held by the estate of billionaire Khoo Teck Puat.

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On 9 August 2006, Standard Chartered announced it had acquired an 81% shareholding in the Union
Bank of Pakistan in a deal ultimately worth $511 million. This deal represented the first acquisition
by a foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is
now Pakistan's sixth largest bank.
On 22 October 2006, Standard Chartered announced that it had received tenders for more than
51% of the issued share capital of Hsinchu International Bank (“Hsinchu”), established in 1948 in
Hsinchu, Taiwan.
Standard Chartered, which had first entered Taiwan in 1985, acquired majority ownership of the
bank. Prior to the merger, Hsinchu was Taiwan's seventh largest private sector bank by loans and
deposits as of 30 June 2006, but had suffered extensive losses on defaulted credit card debt.
Standard Chartered merged its existing three branches with Hsinchu's 83 branches, and delisted
Hsinchu International Bank, changing the bank's name to Standard Chartered Bank (Taiwan)
Limited; Standard Chartered is the largest foreign bank in Taiwan in terms of branch network. In
2007, Standard Chartered opened its Private Banking global headquarters in Singapore
On 23 August 2007, Standard Chartered entered into an agreement to buy a 49% share of an Indian
brokerage firm (UTI Securities) for $36 million in cash from Securities Trading Corporation of India
Ltd., with the option to raise its stake to 75% in 2008, and, if both partners were in agreement, to
100% by 2010. UTI Securities offers brokering, wealth management and investment banking
services across 60 Indian cities.
On 29 February 2008, Standard Chartered PLC announced it had received allthe required approvals
leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American
Express Company (AXP). The total cash consideration for the acquisition is US$823 million.
On 13 November 2008, Standard Chartered Bank (Hong Kong) Limited, entered into an agreement
to acquire 100% of Cazenove AsiaLimited, a leading Asian equity capitalmarkets, corporate finance
and institutional brokerage business, from JPMorgan Cazenove.

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On 27 November 2009, Dow Jones Financial News reported that Dubai will restructure its largest
corporate entity. Among international banks, Standard Chartered has one of the largest loan
portfolios in the Dubai market and the UAE as a whole, estimated to be $7.77 billion in total. This
amounts to 4.2% of Standard Chartered's total loans outstanding. Other impacted banks included
HSBC, Barclays,and RBS. The bank stated that any impairment arising from this exposure would not
be material.
2010 TO PRESENT
Standard Chartered announced an agreement on 27 April 2010 to buy the African custody business
from Barclays PLC. On 13 May 2010, Standard Chartered PLC launched the first-ever Indian
Depository Receipt “IDR” offer.
On 17 June 2010, Standard Chartered Bank and the Agricultural Bank of China (ABC) strengthened
their strategic partnership. Hong Kong has been identified as a potential pilot region for the two
banks' co-operation journey. The two banks' declared aim is to co-operate to provide their
corporate and individual customers with world class financial markets products. A joint co-
operation committee will be formed by both banks to drive the strategic direction of the
partnership. The committee was to be co-chaired by Peter Sands, CEO of Standard Chartered, and
Zhang Yun, President of ABC. In December 2010, Standard Chartered was recognized as the Global
Bank of the Year inThe Banker 's Bank of the Year 2010 awards. Standard Chartered alsowas named
The Banker's inaugural winners of the Global and European Transaction Bank of the Year awards in
September 2014, largely "on the basis of its work in emerging markets, particularly Asia".
In January 2015, the company announced that it was exiting the money-losing "equity capital
markets business completely", "becoming one of the first global banks" to do so. In 2015, Standard
Chartered Bank announced a massive restructuring project, to reinitiate its growth and adapt with
the contentiously changing environment. The current structure has created silos and increased in
bureaucracy, which resulted in lackof interdepartmental cooperation and dampen efficiencyof the
bank. With implementation of the new structure the bank is expected to be more focused, and
reduce bureaucracy, break down departmental silos to increasecooperation between departments

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and prepare the organization to face with ever-changing market environment (SCB Annual report,
2014).
STANDARD CHARTERED BANK BANGLADESH
In Bangladesh, initially it was established as part of ANZ Grindlays in the year 1905. Later on, it was
established independently in the year 1948 by opening a branch in Chittagong. The bank opened
its first branch in Dhaka in the year 1966 and shifted its headquarter from Chittagong to Dhaka in
the year 1972, after the end of liberation war. Currently Standard Chartered Bank in Bangladesh
employees over 1,700 employees and is led by CEO, Abrar Anwar.
Standard Chartered Bank is a pioneer in the banking industry in Bangladesh, bringing about new
ideas and helping the banking industry in Bangladesh to grow. Amongst its various initiatives a few
are listed below.
• In Bangladesh, Standard Chartered Bank first international bank to extend credit lines to
Bangladesh and open the first external letter of credit (LC) in Bangladesh in 1972.
• It is the pioneer in Retail Banking in Bangladesh.
It is the first bank in Bangladesh to
• Start from Auto Coupon Encashment Service of Sanchaypatra to International Debit Card to Gold
Deposit Transaction.
• Introduce first ATM in Bangladesh to state-of-the-art Online Banking Platform or even the
Facebook platform to stay close to our customers, always.
• Introduce the VISA and MasterCard; the two internationally accepted debit cards in the year
1988.
• Offer Shariah-compliant Credit Card to our customers and with the launch of Saadiq Platinum
Credit Card in 2012.
Standard Chartered Bank has its business incorporate, retail, Islamicbanking and SME sectors.With
a vast experience in the banking field combined with extensive knowledge about the market and
different financial services, Standard Chartered Bank has become able to place itself in a distinctive

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position in the marketplace. Today the bank is one of the prominent banking institutions in the
country having a wide array of products to meet the customer demand. It has 26 branches, 19
Kiosk and 97 ATMs allover Bangladesh.In Bangladesh, is operation is mainly concentrated on Dhaka
and Chittagong. Standard Chartered Bank Launched its Saadiq Division in 2009.
PRODUCTS
Standard Chartered Bank provides a wide assortment of product and service of both depository
and lending nature. Below listed are some of its product and services.
ACCOUNT SERVICES
SAVINGS ACCOUNT
Saving account is design for the customers who want to save money in order to get interest. This
account is for individuals and non-trading entities. Minimum account opening amount is BDT
200,000.00.
VIP SAVERS ACCOUNT
This account is introduced recently in SCB. This account targets people with a high income. Its
interest rate is also high. Interest is given on month end balance. Minimum account opening
amount is BDT 500000.
MUDARABA SAVINGS ACCOUNT:
The Standard Chartered Group has an international team of professionals with Islamic financial
expertise dedicated to developing Shariah-approved financial solutions. The process of product
development and Shariah review ensures that its Shariah Compliant Products are within the
guidelines for finance that are prescribed by the Islamic Law. The account gives profit. Minimum
opening balance required BDT 100000.

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FREEDOM ACCOUNT
Freedom account is a new account for young generation. Minimum opening balance required BDT
26000.
GRADUATE ACCOUNT
It is mainly provided to undergraduate students and is given a 2% interest only if the minimum
average balance BDT 10,000 is maintained.
ACCESS ACCOUNT
Access account is an account in which only ATM Card is issued and using only ATM card the
transaction is continued. Minimum account opening amount BDT 20,000.00.
CURRENT ACCOUNT
Current account is an account (a/c) on which cheque are drawn and to which credits are paid. It is
a non-interest bearing a/c, which is also called checking a/c. Minimum account opening amount
BDT 50,000.00.
ISLAMIC CURRENT ACCOUNT
There are no interest related charges on Islamic Current Account. Minimum account opening
amount is BDT 50,000.00.
VIP CURRENT ACCOUNT (VIPCA)
This account is recently introduced in SCB. It is an interest bearing account. Minimum account
opening amount is BDT .250000.00.
RESIDENT FOREIGN CURRENCY ACCOUNT
Personal ordinarily resident in Bangladeshmay open and maintain RFCDA/C, even foreign nationals
who residing in Bangladesh for more than six months. Minimum opening balance required – USD
1,000 or GBP 500 equivalent currency.

14
NON-RESIDENT FOREIGN CURRENCY DEPOSIT (NFCD) ACCOUNT
NFCD account is a short-term foreign currency deposit amount suitable for Bangladeshis living
abroad, offering most competitive interest rates available in both local and international markets.
FIXED DEPOSIT
When money deposited by a customer is not repayable on demand and is payable only after the
expiry of a specified period form the date of deposit or after a specified period of notice, such
deposit is called a Fixed Deposit.
SHORT TERM DEPOSIT (STD) ACCOUNTS OR CALL DEPOSITS:
Big clients maintain this type of account becauseinterest is given on adaily basis.Account Opening
Amount is BDT 2.5 lac.
Others accounts are:
 Sole Proprietorship Account.
 Partnership account.
 Limited Company Account.
 Priority Banking.
LOAN PRODUCTS
PERSONAL LOAN
As the name indicates, a personal loan is a lump sum advance to a borrower to meet his personal
requirements. The debt is repayable in installments spread over a period of time. Operations are
not permitted on the loan account, as in the case of a cash credit or an overdraft account. The loan
amount may range from BDT. 60,000.00 to BDT. 1,200, 000.00. The customer can choose to repay
the loan in 12 to 60 equal monthly installments depending on the loan amount.
AUTO LOAN
Auto loan is a fixed loan facility given for the purpose of purchasing an automobile. The loan is
secured by the automobile/vehicle. This loan lets the customer drive their dream car while

15
providing the customer the convenience of repaying the loan over a maximum period of 48 months
for reconditioned vehicles and 60 months for new vehicles.
BUSINESS INSTALLMENT LOAN (BIL):
BIL is a partially secured loan facility given to any business concern for any legitimate purpose. The
security for the loan must be in a readily encashable form. It is one of the oldest forms of banking
products, where the bank lends the customer a principal fund and the customer pays off the loan
(Principal + Interest) periodically (i.e. monthly). Minimum Loan amount is BDT 12 lac and Maximum
is BDT 50 lac.
MORTGAGE LOAN:
Everyone has dreams of a sweet home. SCB helps make this dream come true by introducing
Mortgage-the best home loan. Minimum loan amount is BDT 5 Lac and maximum is BDT 60 Lac.
OTHER SERVICES OFFERED BY SCB
DEBIT CARD
Standard Chartered Bank is well known globally for the value of customer’s safety and convenience
the most. To add more to it, SCB introduce Debit Card shortly. The amount customers pay while
shopping, dining or traveling will be debited from the customer’s account. This Debit Card replaces
the customer’s existing ATMCard and can pay utility bills and withdraw cash from any of the SCB’s
24 ATM booths across. The yearly charge for this card is BDT 690.
CREDIT CARD:
In Bangladesh, Standard Chartered Bank was the first Bank to commence the VISA and MasterCard
in 1988. At presents, Standard Chartered Bank with above 51% Market share has a very strong
leadership position in the credit card market. The bank has Visa Silver, MasterCard Silver and
MasterCard Gold credit card. MasterCard Gold is targeted to high-end customer base that have a
higher income.

16
24-HOUR FREE CUSTOMER SERVICE
Following services are provided under the 24-hour customer service of SCB.
 Call Centre
 Automated Teller Machine (ATM)
 Bills Pay Centre
 i-Banking
CALL CENTER
Call Centre is the one-stop services for the customer’s banking solution that includes balance
inquiry, transaction details, fund transfer and many more option for both bank account and credit
card services. In Bangladesh Standard Chartered Bank is the first one to introduce such State-of-
the-art technology. It provides services 24 hours a day, 7 days a week!
MOTTO OF CALL CENTRE:
“Anytime, Any day”-We believe in being just a call away anytime, any day.
AUTOMATED TELLER MACHINE (ATM)
Automated teller machine (ATM) is a machine capable of dispensing cash, taking deposits and
providing other services to customers. The ATM is a fast, easy and convenient way for customers
to withdraw, deposit cashand availother services without having to step into a branch for 24 hours.
At present Standard Chartered Bank has 35 ATMs in Bangladesh.
BILLS PAY CENTRE
Bills Pay Centre is SCB’s one-stop bill payment solution. It is an automated service that is designed
to ease the customer’s bill payment problems. Customers can stop by these centers and use the
machines at any time of the day or night.

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I- BANKING
i-Banking is simple, hassle-free and secure internet banking service available to all SCB customers
in Bangladesh. It is a fast and easy answer to all the customer’s financial management needs,
allowing the customers to bank from wherever they are, whenever they desire, in total security and
confidentiality(SCB.bd, 2015).
SMS BANKING
It is the simplest way of finding out your accounts daily /month-end balance or your credit card’s
daily outstanding balance and available limit; statement balance, minimum due amount and
payment due date.
EVENING BANKING
Standard Chartered Bank has introduced Evening Banking facilities. This is particularly for that
group of customers who remain busy throughout the day and do not have the time to visit the
bank. They can availthe banking service from 6pm to 8pm in the Gulshan South Branch, Dhanmondi
2 & 5.
ONLINE BANKING
SCB offers its customers with the facility of operating their bank accounts from any of its sales and
service centers across the country.
GOVERNMENT BONDS
Like all other banks, SCB provides its customers with bond services. Various types of government
bonds (like BSP, 3MSP) are available with the bank.
SAFE DEPOSIT LOCKER SERVICE

18
Standard Chartered offers customers a modern locker system for safekeeping of their valuable
articles and confidential documents. SCB ensures utmost confidentiality & personalized service for
customers’ locker operations.
AUTO BILLS PAY
Auto Bills Pay is the simplest and most convenient way of paying customer’s Monthly Bills of mobile
phone, electricity, Internet, cable TV, etc. With a SCB Card/ Account, customers can put an end to
the hassle and frustration involved in paying their bills the traditional way.
WELCOME PACK
The welcome pack is by far the fastest and easiest way of opening accounts in the country, which
is first introduced by SCB in October 2001 (so it is called the 21st century account by SCB).
 Savings Accounts  Islamic Banking
 Super Savers Premium  Saadiq Deposit Accounts
 Super Savers Account  Saadiq Current Account
 eSavers Account  Saadiq Savings Account
 School Banking Account  Saadiq eSavers Account
 Current Accounts  Saadiq Term Deposit
 Current Account  Saadiq Super Saver Premium Account
 Fast Current Account  Saadiq Financing Products
 Foreign Currency Current Account  Saadiq Auto Finance
 RFCD Account  Saadiq Home Finance
 Convertible & Non-Convertible  Saadiq Cards

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 Cards  Saadiq Credit Card
 Credit Card  Saadiq Debit Card
 Debit Card  Saadiq SME
 Loans  Saadiq Business Current Account
 Auto Loan  Saadiq Business Instalment Finance
 Personal Loan  Saadiq Finance against Properties
 Home Loan  Employee Banking
 Home Credit  EB Value Pack
 Fixed Deposits  EB Salary Account
 Fixed Deposits  Credit Card
 NFCD Account  Personal Loan
 Auto Billspay  Auto Loan and Mortgage
 Locker Services  Business Installment Loan
 Saturday & Evening Banking  Loan Against Property
 Student Files  Orjon - BIL for Women
 Branch Sales & Services  Overdraft
 ATM & Branch Locations  Business Special Notice Deposit (SND)
 Remote Banking  Fixed Deposit

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OVERVIEW OF STANDARD CHARTERED BANK (SCB)
Standard Chartered is a leading international banking group committed to building a sustainable
business over the long-term. They operate in some of the world's most dynamic markets and
have been for over 150 years. They mainly provide a wide-range of products and services for
personal and business customers across 70 markets. More than 90 per cent of our income and
profits are derived from Asia,Africaand the Middle East.In the lastnine years Standard Chartered
Bank has reported record income and profits. Twenty-four of our markets now deliver over
US$100 million of income, fourteen over US$100 million in profit. Listed on
the London, Hong Kong and Mumbai stock exchanges, we rank among the top 20 companies in
the FTSE-100 by market capitalization.
STANDARD CHARTERED BANK IN BANGLADESH
The first branch of the Chartered Bank was established in Chittagong in 1948, followed by
another branch in Dhaka in 1966. Since the formation of Standard Chartered Bank in 1969, the
bank has gone for expansion in the country. According to SCB’s Bangladesh website, in 2000,
SCB acquired Grindlays Bank’s business in Bangladesh and in 2006 it acquired American Express
Bank’s commercial banking business, which has allowed the bank to become the biggest foreign
bank operating in Bangladesh (bankinfo,2015).
SCB has invested heavily in people, technology and infrastructure to sustain the growth of the
bank. The bank provides both consumer banking and wholesale banking services in Bangladesh
and uses market knowledge and experience to serve institutional and corporate clients in the
best way possible. SCB focuses on improving technology and this has allowed the bank to offer
customer services such as Phone Banking, i-Banking and e-Lending.

21
CURRENT SITUATION
Presently SCB is doing excellent business in Bangladesh. It is arguably the leader in providing
banking services to global corporate clients but facing some competition from the likes of HSBC
and Citibank. Although HSBC and Citibank are globally much bigger banks, SCB’s history,
experience and relationships in Bangladesh will help retain leadership position in this segment
in the future as well. When it comes to serving local corporate clients, SCB is still one of the top
banks in
Bangladesh. However, it is facing much stiffer competition in this regard not only from foreign
banks but also from local private banks. Indeed, there is a trend among local corporate clients
to switch to local banks as they are being offered more personal attention, higher flexibility and
better services at lower rates and charges from local banks. SCB will have to focus more on this
segment in order to hold on to its market position by coming up with more competitive products
and services and building up healthier relationships with customers. When it comes to consumer
banking, SCB is leader among foreign banks but lagging far behind local banks. SCB has to set up
much more branches, cut down charges and fees and provide more competitive products to gain
a stronger foothold in this segment. Overall it is observed, that SCB will continue to focus on
corporate banking in the future just as other foreign banks, it will simultaneously invest hugely
in consumer banking and go for expansion through branch openings and mergers to create a
strong market position in that segment as well.

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ORGANIZATIONAL STRUCTURE (SCB)
SCB Bangladesh
Business Division Support Division
Operation
Finance
IT service
Human Resource
Legal & Compliance
Credit
Consumer BankingWholesale Banking
Financial InstitutionTreasuryCorporate Banking
Global Local

23
The figure below shows SCB operations in 70
Countries: Figure: Asia
Figure: Africa
Figure: Europe and America

24
Figure: SCB outlets in Bangladesh: - Branches and Kiosks in Bangladesh
Standard Chartered currently has 26 branches, 57 ATMs and 7 financial kiosks and
employs over 1300 people. The bank has branches in six Cities-Dhaka, Chittagong, Khulna,
Sylhet, Bogra and Narayanganj as well as branches in Dhaka EPZ and Chittagong EPZ.
BACKGROUND OF STANDARD CHARTERED BANK
Standard Chartered Bank was formed in 1969 through the merger of two separate banks,
the Standard Bank of British South Africa and the Chartered Bank of India, Australia
and China. These banks had capitalized on the expansion of trade between Europe, Asia
and Africa.
Chartered Bank
The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by
Queen Victoria in 1853. The bank opened in Mumbai (Bombay), Kolkata and Shanghai in
1858, followed by Hong Kong and Singapore in 1859. The traditional trade was in cotton

25
from Mumbai, indigo and tea from Kolkata, rice from Burma, sugar from Java, tobacco from
Sumatra, hemp from Manila and silk from Yokohama. The bank played a major role in the
development of trade with the East following the opening of the Suez Canal in 1869 and
the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern
Bank, together with the Ionian Bank's Cyprus Branches and established a presence in the
Gulf.
Standard Bank
The Standard Bank was founded in the Cape Province of South Africa in 1862 by John
Paterson, and started business in Port Elizabeth in the following year. The bank was
prominent in financing the development of the diamond fields of Kimberley from 1867. It
later extended its network further north to the new town of Johannesburg when gold
was discovered there in
1885. The bank expanded in Southern, Central and Eastern Africa and had 600 offices by
1953. In 1965, it merged with the Bank of West Africa, expanding its operations into
Cameroon, Gambia, Ghana, Nigeriaand Sierra Leone. In 1987 Standard Chartered Bank sold
its stake in the Standard Bank, which now operates as a separate entity.
EMERGENCE OF STANDARD CHARTERED BANK IN BANGLADESH
The Chartered Bank started operating in Bangladesh in 1948, opening a branch in
Chittagong. The branch was opened mainly to facilitate the post-war reestablishment and
expansion of South and Southeast Asia. The Chartered Bank opened another branch in
Dhaka in 1966, where it is still headquartered
Bangladesh is under the Middle East and South Asia (MESA) region, with the controlling
office in Dubai. Its correspondent relationship with Sonali Bank, the largest bank in
Bangladesh, gives its customers access to all major centers in the country. Standard

26
Chartered Bank's worldwide network facilitates convenient connections with foreign trade
and remittance business. Standard Chartered Bank's branch banking license in Bangladesh
allows it to offer a full range of banking services.
Standard Chartered currently has 26 branches, 57 ATMs and 7 financial kiosks and
employs over 1300 people. The bank has branches in six Cities-Dhaka, Chittagong, Khulna,
Sylhet, Bogra and Narayanganj as well as branches in Dhaka EPZ and Chittagong EPZ.
In the year 1999, Standard Chartered has acquired the operation of Grindlays Bank in
the Middle East and South East Asian countries. Former Grindlays Bank started its journey in
Bangladesh in 1905 under the name of Grindlays Bank. Standard Chartered Bank took-over
the operation of ANZ Grindlays Bank in Bangladesh as a part of acquisition of the South East
Asian and Middle East operation of the Australia and New Zealand Banking Group. SCB with
its 18 branches and booths across Bangladesh had employed more than 600 people. The
acquisition of ANZ has enabled Standard Chartered Bank (SCB) to access 500,000 new
customers and 40 branches in India, and this made them one of the biggest banks in this
region and in Bangladesh it is the largest foreign bank.
After acquisition, Grindlays Bank is a part of Standard Chartered Group. The Bank presently
has 26 outlets in 6 cities in the country. SCB engages itself for providing best quality
banking service in retail, commercial and corporate banking segments. The countries top
enterprises, multinational, largelocalcorporations and many financialinstitutions are served
by SCB. With total asset based of BDT 17.5 billion and annual turnover of BDT 1.78 billion,
SCB in Bangladesh is amongst the top performing multinational bank.
STANDARD CHARTERED BANK’S GOVERNING BODY
The SCB group board of directors has 17 members, consisting of one chairman, 5
executive directors, 10 non-executive directors and a company secretary. Sir John Peace is

27
the chairman of the board, while Bill Winters is the group CEO. SCB has six board level
committees, each with a specific role and responsibilities (Hoboken, NJ: Wiley, 2004). The
committees and their purposes are:
Audits:
The Committee shall review, on behalf of the Board, the company’s internal financial
controls to identify, assess, manage and monitor financial risks and to act as the Audit
Committee of the Company, Standard Chartered Bank and any other subsidiary, as
appropriate
• Board Risks:The Committee shall exercise oversight on behalf of the Board of the
key risks faced by the Group and shall make recommendations to the Board on the
Group’s overall risk appetite. Key risks subject to the Committee’s oversight are
those listed in the Appendix to these terms of reference.
• Brand and Values: The Brand and Values Committee shall oversee the brand, values
and good reputation of the Group, ensuring that reputational risk is consistent with
the risk appetite approved by the Board and the creation of long term shareholder
value. In particular, the Committee’s role will cover: brand positioning, culture and
values, reputational risk management and all aspects falling within the Group’s
sustainabilityagenda. This includes the Group’s social,economic and environmental
contribution. The Committee will also ensure the Group appropriately manages its
delivery of our brand and values’ commitments, including our client/customer
focus, to employees, external stakeholders and society at large.
• Remunerations: The Committee shall review, on behalf of the Board and be
responsible for setting the principles parameters and governance framework of

28
Standard Chartered PLC and its subsidiaries (the “Group”) remuneration policy and
more specifically for managing executive remuneration.
• Nominations: The Committee is authorized to obtain, at the Company’s expense,
outside legal or other professional advice on any matters within its terms of
reference
• Governances: To maintain oversight of existing and emerging corporate
governance principles, practices and processes with a view to maintaining a culture within
the Company and is subsidiaries whereby high standards of corporate governance are
embraced holistically
STANDARD CHARTERED BANK’S ORGANIZATIONAL STRUCTURES
Bank is conservative by nature and activities. Since it is financial institution,
conservativeness is important here. Standard Chartered Bank follows top down approach
in communication. The hierarchical ladder of the chain of command of Standard Chartered
Bank is shown below:
Figure: Chain of
Command
Chief Executive Officer
Head of Consumer
Banking
Head of Finance & Head of Corporate & Head of Legal &
Administration External Affairs Compliance
Head of Corporate & Head of Human Head of Global Head of Information
Institutional Banking Resources Mark
et
Technology
Head of Credit Head of Financial Head of Credit Cards Chief Operating
OfficerDepartment Institution

29
Standard Chartered Bank Business
SCB Bangladesh has two main functional areas
which are:
• Business
• Support
SCB Bangladesh can be divided into the following business
areas:
• Consumer Banking
• Wholesale Banking
• Treasury
• Institutional Banking
• Custodial Services
In Bangladesh, corporate banking division has historically contributed more to revenue
and profits compared to the consumer banking division.
The support division of the bank contains following
departments:
• Operations
• Finance, Administration and Risk Management
• Information Technology
• Human Resources

30
• Legal and Compliance
• External Affairs
• Management
Branch managers of SCB Bangladesh mutually agree to targets with the Head of
Consumer
Banking and they are responsible for the performance of their specific
units(PMI,2015).
Details of functions of business areas are as follows:
Consumer Banking: SCB Bangladesh offers a wide range of retail banking services comprising
of loans, deposits and other services. The consumer banking division consistently develops
new products and services so that it is able to meet the needs of each individual
domestic and foreign customer. SCB Bangladesh offers deposit products such as savings
accounts, current accounts, fixed deposits and savings schemes. SCB Bangladesh also
offers a wide range of credit, debit and prepaid cards for the convenience of customers.
Auto Loan, Personal Loan and Home Loan are also offered by the bank. Islamic variants of
these products and services exist under the brand name Saadiq. Special privilege is provided
by the bank to priority banking customers who are selectedbased on net worth SME Banking
products and services such as Loan against Property (LAP), Business Installment Loan (BIL),
Trade and Working Capital (TWC) products and transaction services are also implemented
by the consumer banking division. Details of SME Banking of SCB Bangladeshwillbe provided
later.
Retail or Wholesale Banking: SCB Bangladesh offers its corporate clients (top local
companies and MNCs) a wide range of financial services. All corporate clients are

31
assigned relationship managers (RM)s so that the bank can better understand and satisfy
their financial needs and build up better relationships with them. The division takes help
and advice from Financial Institutions and Treasury Services division as and when required.
SCB Bangladesh provides project financing, investment consultancy, syndicated loans,
bonds and guarantees and local and international treasury products to corporate clients.
Export and import financing services are also provided to corporate clients by trade finance
department.
Treasury Division: SCB is famous all over the world for its operations in foreign exchange
and money market. The bank has dealing centers placed all over the world and is thus able
to facilitate 24 hour services to clients in Bangladesh. The department offers solutions to
customers who manage to control interest rate and currency exposures that arise from
trade, investment and financing activities in other parts of the world. According to BAFEDA,
SCB Bangladesh controls around one third of volume of country’s foreign exchange market.
Institutional Banking: The institutional banking division of SCB Bangladesh provides a wide
range products and services to other banks and financial institutions including a wide
variety of clearing, payment collection and import-export handling services. The bank
offers current accounts in taka and other foreign currencies and convertible accounts in
taka to foreign missions, voluntary organizations, consultants, airlines, shipping lines, and
their personnel.
CustodialServices: SCB’s custodialservicecustomers are mainly globalbrokers/dealers who
require cross-border information and sub-custodian services.SCBBangladeshis responsible
for the planning process but the overall management of the business takes place from
Singapore.

32
Details of functions of some of the support areas are as
follows:
HR Division:HR department manages recruitment, training and career progression plan and
develops organizational culture within the bank.
IT Department: IT department handles all computerized operations of the bank and makes
sure all hardware and software are up-to-date and working properly.
Central Operations: The operations unit processes work of the business units, and detects
mistakes or problems and provides reports. The unit ensures that the bank runs smoothly
and in a controlled manner.
Legal and Compliance: SCB Bangladesh is governed by laws and regulations set by the
Ministry of Finance and Bangladesh Bank. The legal and compliance department deals with
any legalissues,advises the CEO and management regarding any legal and regulatory issue,
corresponds regulatory issues regularly to group and carries out internal audit.
External Affairs: The external affairs department looks after advertisements, promotions,
public relations, partial marketing for disseminating new products and services to
customers and ensuring service quality.
MISSION OF STANDARD CHARTERED BANK
Leading the way (Being proactive). Standard Chartered Bank wants to be proactive in the
sense that they want to exceed customers’ expectations, that is they want to come up with
products and services having such features, before customers can start expecting them
from SCB (Standard Charted, 2015).
VISION OF STANDARD CHARTERED BANK

33
The vision of Standard Chartered Bank is TO BUILD A WORLD CLASS
BANK. Beside this they also have the following vision:
• To be trusted and respected around the
world.
• To deliver services that will continuously delight our
customers.
• To treat every customer with respect and
integrity.
• To share a vision of the future and work together to
realize it.
GOALS AND VALUES OF STANDARD CHARTERED BANK
Goals of Standard Chartered Bank
Goals are numerical targets, which are financial
goals.
• Translate financial goals into activity
goals.
• Ensure the ownership of your
goals.
• Set daily and weekly
goals.
• How much, what and
when.

34
• Manage goals
daily
Values of Standard Chartered Bank
Standard Chartered Bank has five values and these values are key to their success. These
values determine how the employees achieve their goals, the way they work together and
how it feels to be a part of Standard Chartered Bank. In brief these values are:
• Courageous: Being courageous is about confidently doing what’s right. Often the
task truly courageous act both inspires and builds character.
• Responsive: How we res pons e to our cus tomer will influence their
belief in our commitment to them. A proactive response is often unexpected and
more effective for that. It clearly demonstrates our willingness to go beyond the
unexpected.
• International: As a member of global village we view the world from the widest
perspective. We are all global citizens and the world is full of new opportunities and
exciting possibilities. We also deliver world-class products and services.
• Creative: Creativity belongs to those of us who are excited by challenges and
engage them in fresh thinking and an open mind. Creative thinkers are not limited
by convention but allow their minds to soar beyond predictable solutions.
• Trustworthy: Trust is the foundation of every successful relationship. We trust
because we believe in the sincerity of our promise. Building trust can take forever.
Losing takes only moments.
STRATEGIES OF STANDARD CHARTERED BANK

35
To achieve the objectives, Standard Chartered has underlined some strategic pillars in
their annual report 2010, which are as follows:
• Geographic focus on Asia, Middle East and Africa- SCB is trying to focus on these
fast growing markets by creating and utilizing existing completive advantage built
up through superior insight and deep, direct local relationships.
• One bank with two strong businesses supporting each other- SCB’s consumer
banking and wholesale banking divisions are both strong businesses in their own
right and work together to complement and support each other
• Client-focused rather than a product-focused approach- SCB focuses activities and
creates capabilities focusing on clients rather than seeking rapid returns on products
or creating unnecessary products
• Distinctive culture and values- The bank’s unique culture and values provide it
with a distinct advantage, as it has allowed to build brand value among customers,
and to attract talented employees and to create good relationship with
governments and regulators.
• Conservative and disciplined on risk, capital and liquidity- SCB puts more
importance on its balance sheet quality than its income statement and is willing to
sacrifice profits to ensure quality of the balance sheet.
• Scale positions in significant local markets- SCB wants to become an important
part of the banking system in whichever country they operate.
• Organic growth: the primary driver for strategy and value creation- SCB believes
that organic growth creates greatest value for shareholders and only explores

36
acquisitions if organic growth does not happen within reasonable time (organization
behavior, 2013).
STANDARD CHARTERED BANK INTERNAL ANALYSIS
SWOT ANALYSIS
The SWOT analysis comprises of the organization’s internal strength and weakness and
external opportunity and threats (Graham, 1978). SWOT analysis gives an insight of what
they can do in future and how they can compete with their existing competitors. This tool
is very important to identify the current position of the organization to others, who are
playing in the same field and also used in the strategic analysis of the organization.
Let’s see the SWOT of Standard Chartered Bank in
Bangladesh:
S = STRENGTH
SCB is the largest MNC Bank operating in Bangladesh. It has a very strong wide range
of client base and is operating efficiently in this country.
SCB enjoys the first mover advantage because of its entrance in Bangladesh for over
50 years. SCB has already established a satisfactory financial standing and is far
ahead from the new and existing entrants in the banking industry of Bangladesh.
Their growth rate was quite impressive in the recent past which was due to the
increase in number of deposits and the loans and advances.
Another important strength of the bank is its global connectivity. It has its business
in Asia, Africa and Middle East. The Bank capitalizes on its onshore presence across
Asia, Africa and the Middle East to offer customers convenient and reliable access

37
to the widest range of currency markets, to date local market information, country-
specific global risk management strategies, and customized capital raising and
liquidity management solutions (financial times,2015).
The bank offers online banking, which is relatively a new concept in Bangladesh.
Only
few banks are providing this service. They also used advanced technology in
every sector to maximize the customers benefit. The bank has established a call
center in order to make the customers’ instant banking needs.
The bank’s internet banking is the fastest possible service allows their customers
to bank from wherever they desire, in total security and confidentiality. Services
available through I-Banking are account services, credit card payments, credit card
services, fund transfers, standing orders and market watch.
SCB has the reputation of being the provider of good quality services to its
potential
Customers. This has been possible due to the dedication of the work
force.
Employees are smartly groomed and their communication skill is appealing enough
that today’s banking industry demands (Storley, 1992).
SCB’s banking experience for more than 60 years provides SCB the strength of being
the market leader in the foreign banking sector. This strength of SCB is totally
unmatched by any other multinational bank in Bangladesh, as the long term success of
a bank heavily depends on its reputation while dealing with every sensitive commodity
like money.

38
SCB is the first bank in Bangladesh to issue Money link (ATM) card. As the market
leader, they showed the most substantial corporate strength among the foreign
banks by grabbing the opportunity that exists in the market.
Standard Chartered Bank has a bulk of qualified, experienced and dedicated human
resources.
SCB’s dedication is supreme in providing the best phone banking services in town. It
is also keen to provide unmatched and instant 24-hour banking service and has
opened the Call Centre at Lotus Kamal Tower in Nikunjo, Dhaka. The call center
provides services which the clients can enjoy sitting at home, e.g., balance enquiry,
Pay-Order requests, statement request etc.
New ATM booths are to be in place by the end of next year all over the country. This
will
give SCB customer an easier and ready access to cash even in locations where the
branches are far away.
SCB uses the ‘ebbs’ at all its branches and head offices. The software is capable of
producing various reports for reporting to Central Bank as well as to Head Office
and provides online display of specimen signature cards. It also is used for cheque
book request, statement prints and general enquiry about client accounts. The
software has reduced duplication of works as wellas manual works at various levels.
W = WEAKNESS
After the acquisition of Grindlays and American Express the customer of these three
banks become the customers of just one bank and that is Standard Chartered Bank.

39
The numbers of employees are not enough to give proper services to this huge
number of customers.
Standard Chartered Bank use technology in every sector more than any bank. In
this
way they established anauto-bills pay machine to pay the credit card bills.It actually
saves customers’ valuable time. But most of the people of our country do not feel
comfortable to use this high technology and the bank does not take any initiative
to teach the people how to use it. Because of this customer face a lot of problems
when they want to pay their bills.
SCB has few branches than that of their local competitors. Serving such a huge
customer base will definitely require branches to be opened up in the long run.
Otherwise customer will have to wait in long queues in other branches which will
hamper their service quality.
The banking industry is now experiencing the contractual employment fever that has
started up and SCB has also fallen prey to it. Self-interest of the employees are
actually hindering their performance because SCB is employing individuals from
other agencies and giving them tough targets to reach and thereby not giving them
the full benefits of a permanent employee.
SCB is also facing problem in its system of collection and disbursement of cash.
Many
customers do not bear the proper knowledge as to the process of depositing and
withdrawing money. The bank does not take many steps to assist them either.

40
Another weakness of the bank that can be sighted is poor coordination and
communication between the head office and branches. As the head office
undertakes many projects, the activities are hampered due to some activities of the
branches.
SCB at present is one of the few banks that offer a very low rate on deposits. Banks,
who is offering better prospects, now enjoys customers switching to them as SCB
offers low deposit rates and has set the minimum balances too high.
Standard Chartered Bank has more and high fees and charges compared to its rivals.
Less promotional activities for both new and existing products.
O = Opportunity
The banking sector in Bangladesh is growing very fast, which is a big opportunity for
Standard Chartered Bank to expand their business. More Branches around Dhaka
specially and all over Bangladesh will enable SCB to capture more market share,
and hold a stronger competition against local banks.
The bank can use market segmentation strategy in order to give the right services to
the
right people at the right time.
Standard Chartered Bank can expand their product line to meet broader range of
customer needs.
The bank increases their number of employees to give prompt services to the
customers and can improve the service quality of Consumer Banking service.

41
The Bank can arrange some training sessions to teach their employees about
the services of Standard Chartered Bank can increase the number of their offset
ATMs in Khulna, Bogra, Sylhet, Narayanganj and Chittagong to make their services
available to most their customers.
Standard Chartered Bank was approved of the permission to start Islamic Banking
from
The Government of Bangladesh. The bank now has a whole new prospect opening
up and also the opportunity to introduce a wide array of Islamic Banking products.
It also has the prospect of expanding its customer base.
By offering more attractive interest rates, and lowering the minimum balances
eligible for interest, the bank can attract a lot of the old customers who have strewn
away to other banks as well as new customers.
More Branches around Dhaka specially and all over Bangladesh will enable SCB to
capture more market share, and hold a stronger competition against local banks.
The activity in the secondary financial market has direct impact on the primary
financial market. Investment is a national socio economic activity and activity in the
national economy controls the bank
T = THREATS
Because of the restriction imposed by government on expansion of the bank despite
of their keenness SCB cannot increase their number of branches.
Opening of new bank, without implementation of the needed reforms, are lead
the

42
unethical competition and horse-trading in the country’s Banking
sector.
The greater threats of the banks come from the competitors. As the competition
increase Standard Chartered Bank has a chance to lose its market share to the
competitors like Citi.N.A. Bank, BRAC Bank, HSBC, Prime Bank, Eastern Bank etc. if it
does not take necessary.
Other banks (i.e. Jamuna Bank Limited, Southeast Bank Limited etc.) are offering
higher
interest rate on fixed deposit then SCB (10%-12%), which is a great threat for SCB.
This can cause them to lose their customers. If people do not make deposit than
the source of fund will become higher for this bank.
The interest rate on a loan is much higher than other banks (i.e.Eastern Bank Limited,
Dhaka Bank etc.). As a result, people are reluctant to take loan from Standard
Chartered Bank, which can be a great threat for this bank.
People do not feel comfortable with the high charges of SCB. The service charges of
this bank are much higher than other banks and this can cause them to lose their
valuable customers.
National and global political unrest can be another threat for the bank. In today’s
economy, substantial amount of savings is remaining idle. Currently foreign
direct
investment in the country is very low. These economic situations of the country
indicate political threats.

43
During the last 10 years the banking industry has become considerably monopolistic
and hence SCB is starting to lose its market share to its rivals due to low barriers
to entry, and the local banks’ increasing aggressiveness.
SWOT ANALYSIS OF THE RETAIL CLIENTS DEPARTMENT
The overall analysis of a company's strength, weaknesses, opportunities and threats is
called SWOT analysis. Strengths and weaknesses falls under company's internal
environment and opportunities and threats are company's external environment. These
two categories are essentialfor a company to figure out where it stands,strategic planning,
potential market (opportunities) and overall to maintain its financial position (Johnston, R
2007).
The SWOT analysis of Retail Client Department of Standard Chartered Bank
is:
Strength
Experience and hardworking labor force.
Brand name of the company.
Sustaining growth and performance.
World class service.
Own software.
Technology support.
Weakness
Massive gap between good policies and weak implementation by Bangladesh Bank

44
Technology gap between SCB and Bangladesh Bank
Geographic distance between Head office and its branches.
Opportunity
Expand the business
If Government will increase the commission rate, sales will be increase.
If interest rate increases, people will be attracted more and more and sales will
be higher.
Threats
Rivals.
Sudden tax/interest rate related circular from Bangladesh Bank.
Political instability.
STANDARD CHARTERED BANK EXTERNAL ANALYSIS
INDUSTRY ANALYSIS
There are four types of banks in Bangladesh- public banks (i.e. state owned banks), private
commercial banks (privately owned banks), foreign commercial banks (subsidiaries of
multinational banks) and specialized banks. According to Bangladesh bank, there are 53
banks in the country with funds under management of $ 32 billion.

45
Out of the banks, 4 are public banks, 32 are local private banks, 9 foreign banks, and 8 are
specialized banks. SCB currently holds a 4% market share in the industry based on funds
under management.
Sonali Bank is the largest public commercial bank while Pubali Bank is the largest private
bank and Standard Chartered is the largest amongst the foreign banks. As of June 2000,
there were almost 6,038 branches of commercial banks all over the country with around
40% situated in urban areas and 60% situated in rural areas. All scheduled banks of the
country are regulated by Bangladesh Bank(Bangladesh bank, 2015).
Currently the market is deemed to be oversaturated with banks according to many experts,
and this they feel had a large impact on high inflation in the country through their effect
on money supply. BangladeshBankhas not provided permission for setting up of new banks
since 2001 to tackle this problem, but recently many new applications have been made
to Bangladesh Bank for permission to set up new banks (banks of Bangladesh, 2014).
Because of the high number of banks, competition is rather fierce in the industry. Although
all banks provide a wide range of services to a wide range of clients, within the industry,
different classes of banks have tried to create niches for themselves. For example, the
public banks have significantly more branches than other banks and therefore have a
stronghold in providing banking services in rural areas. On the other hand, local
businessmen and local corporate clients prefer banking with local private banks and thus
local private banks have emphasized on serving such clientele as well as professionals.
Most of the multinationals in Bangladesh carry out their banking relationship solely with
foreign banks. Thus serving global corporate has been the stronghold for foreign banks
operating in Bangladesh.
Standard Chartered has emphasized on providing corporate banking services, enjoying a
great reputation among both local and foreign corporate clients and is one of the leading

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