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SUMMER TRAINING REPORT

On

STANDARD CHARTERED BANK

Comparative analysis of Standard chartered bank services and insurance products with other MNC

banks

Submitted in partial fulfillment of the requirements of

Post Graduate Programmeby

Anurag Jindal

Batch PGP 2008-10

Roll No. PG 20082326

IILM Institute for Higher Education

Gurgaon

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Acknowledgement I would like to express my deep sense of gratitude to Standard Charted Bank Management specially Mr. Dashrath Renwan( Area Sales Manager) who gave me this opportunity to work with this prestigious organization as a summer trainee. It has been pleasant and immensely valuable learning experience for me.

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

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

Regards

Anurag Jindal

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PrefaceIn modern world of comfort, consumers no longer select their banks based on how convenient the location of bank’s branches is to their homes or offices, with the advent of new technologies in the business of banking, such as internet banking, phone banking, ATM etc., now customers can freely choose any bank for their transactions. The pressure of competitive and dynamic markets has contributed to the provision of these services. A booming financial market holds the interest of most of the Indians today. The banks are no longer the means of saving money and taking loans but they have turned in to one stop for any financial need faced by a common man. Be it Home Loan, mutual Funds, Life Insurance, general insurance, NRI deposits, and micro finance etc, today a single bank covers everything.

Standard Chartered Bank is the biggest and one of the most competitive MNC banks operating in India. One of the prime activities on which SCB capitalized in Retail Banking that have gained momentum with the growing income of the Indian Population specifically the High Net worth Individuals and People of the upper middleclass.

Mass affluent customers are mobile, sophisticated, and extremely busy. As such, they demand financial advisors flexibly and easily, and they put a premium on privacy. As one of several key findings of a Booz Allen Hamilton study of retail banking best practices across all channels to adapt to the preferences of this small but increasingly influential segment.

For Banks seeking to enhance their performance, developing offerings to attract mass affluent customers may be the key to raising their profile and reducing their cost-to-income rations. There is still room for them to jump in, but each institution must weight the economics of such a move and determine whether there is demand for such service in its market. For example, the higher assets and average balances of this segment justify the study has noted that mass affluent customers are roughly 30 times more profitable than those of the mass market, and the global mass affluent segment is expected to grow by 35 percent between 2005 and 2010.

The Standard Chartered Bank offers a wide array of product and services to its individuals and corporate customer base. It has a large base of products and services like personal banking (saving account, current account, Term Deposit, corporate salary account, 2- in one account, D-mat account etc.) Small and Medium Enterprises, Banking and commercial Banking.

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

A survey was conducted which included 100 respondents and conclusions were drawn from the survey undertaken.

Table of Content

1. Acknowledgement 2

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2. Preface 3

3. Industry study 7 History 7 History of Banking in India 8

4. Organization Structure 12 Board Governance structure 12 Company History 13 Ownership patterns 14 Mergers & Acquisitions 15 Divisions & Departments 16 People 18

5. Financial profile 22 Our highlights and achievements in 2008 22 Our priorities in 2009 22 Positioning for the future 22 Consolidated Balance sheet 24 Consolidated Profit & loss Account 25

6. Products & Services 26 Saving accounts 26 Current accounts 29 Insurance & investment plans 32

7. Competitors 38 Citi Bank 38 HSBC Bank 38 American Express 40 ABN AMRO 40 Deutsche Bank 41 Comparative analysis of standard chartered products with other

multinational banks 41

Operations 45

8. Application of Chi-square 479. Introduction 4910. Objectives 5011. Methodology 51

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12. Findings & Analysis 52 Questionnaire on Banks 52 Questionnaire on Insurance Companies 70

13. Conclusion & Recommendation 9214. References 96

Industry study

History

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

Ancient Greece holds further evidence of banking. Greek temples, as well as private and civic entities, conducted financial transactions such as loans, deposits, currency exchange, and validation of coinage. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could "cash" the note in another city, saving the client the danger of carting coinage with him on his journey. Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of the 5th century B.C., is the first individual banker of whom we have records. Many of the early bankers in Greek city-states were “metics” or foreign residents. Around 371 B.C., Pasion, a slave, became the wealthiest and most famous Greek banker, gaining his freedom and Athenian citizenship in the process.

The fourth century B.C. saw increased use of credit-based banking in the Mediterranean world. In Egypt, from early times, grain had been used as a form of money in addition to precious metals, and state granaries functioned as banks. When Egypt fell under the rule of a Greek dynasty, the Ptolemies (332-30 B.C.), the numerous scattered government granaries were transformed into a network of grain banks, centralized in Alexandria where the main accounts from all the state granary banks were recorded. This banking network functioned as a trade credit system in which payments were effected by transfer from one account to another without money passing..

In the 1970s, a number of smaller crashes tied to the policies put in place following the depression, resulted in deregulation and privatization of government-owned enterprises in the 1980s, indicating that governments of industrial countries around the world found private-sector solutions to problems of economic growth and development preferable to state-operated, semi-socialist programs. This spurred a trend that was already prevalent in the business sector, large companies becoming global and dealing with customers, suppliers, manufacturing, and information centres all over the world.

Global banking and capital market services proliferated during the 1980s and 1990s as a result of a great increase in demand from companies, governments, and financial institutions, but also because financial market conditions were buoyant and, on the whole, bullish. Interest rates in the United States declined from about 15% for two-year U.S. Treasury notes to about 5% during the

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20-year period, and financial assets grew then at a rate approximately twice the rate of the world economy. Such growth rate would have been lower, in the last twenty years, were it not for the profound effects of the internationalization of

financial markets especially U.S. Foreign investments, particularly from Japan, who not only provided the funds to corporations in the U.S., but also helped finance the federal government; thus, transforming the U.S. stock market by far into the largest in the world.

Nevertheless, in recent years, the dominance of U.S. financial markets has been disappearing and there has been an increasing interest in foreign stocks. The extraordinary growth of foreign financial markets results from both large increases in the pool of savings in foreign countries, such as Japan, and, especially, the deregulation of foreign financial markets, which has enabled them to expand their activities. Thus, American corporations and banks have started seeking investment opportunities abroad, prompting the development in the U.S. of mutual funds specializing in trading in foreign stock markets.

Such growing internationalization and opportunity in financial services has entirely changed the competitive landscape, as now many banks have demonstrated a preference for the “universal banking” model so prevalent in Europe. Universal banks are free to engage in all forms of financial services, make investments in client companies, and function as much as possible as a “one-stop” supplier of both retail and wholesale financial services.

History of Indian Banking Industry

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

Pre-Nationalization (Phase1)

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

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

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During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.

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

Post-Nationalization (Phase II)

Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas. It formed State Bank of india to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:

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

1959 : Nationalisation of SBI subsidiaries.

1961 : Insurance cover extended to deposits.

1969 : Nationalisation of 14 major banks.

1971 : Creation of credit guarantee corporation.

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1975 : Creation of regional rural banks.

1980 : Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.

Liberalization (Phase III)

This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure..

Current Situation

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

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

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Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

As seen in the private sector much of the job cuts due to global slowdown, its the public sector undertaking (PSU) banks which gained much confidence due to job safety and security. More and more people are likely to turn towards government institutions, particularly banks in the quest for safety and security. Similar is the case with Standard Chartered Bank.

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Organization structure

Company history

History

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of

British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China,

founded in 1853.

Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome

profits to be made from financing the movement of goods between Europe, Asia and Africa.

The Chartered Bank

Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in

1853.

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Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858,

followed by Hong Kong and Singapore in 1859.

Traditional trade was in cotton from Mumbai (Bombay), indigo and tea from Kolkata,

rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila and silk from

Yokohama.

Played a major role in the development of trade with the East which followed the opening

of the Suez Canal in 1869 and the extension of the telegraph to China in 1871.

In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus

Branches. This established a presence in the Gulf.

The Standard Bank

Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced

business in Port Elizabeth, in January 1863.

Was prominent in financing the development of the diamond fields of Kimberley from

1867 and later extended its network further north to the new town of Johannesburg when gold

was discovered there in 1885.

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

In 1965, it merged with the Bank of West Africa, expanding its operations into

Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

From the early 1990s, Standard Chartered has focused on developing its strong franchises in

Asia, Africa and the Middle East. It has concentrated on consumer, corporate and institutional

banking and on the provision of treasury services - areas in which the Group had particular

strength and expertise.

Since 2000 the Bank has achieved several milestones with a number of strategic alliances and

acquisitions, which have extended the customer and geographic reach and broadened the product

range that Standard Chartered offers

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Ownership patterns

Our approachWe have operated for over 150 years in some of the world’s most dynamic markets, leading the way in Asia, Africa and the Middle East

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

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

Our business strategy• Standard Chartered aims to be the world’s best international bank, providing Consumer and Wholesale Banking services in Asia, Africa and the Middle East• We are very focused on the basics of banking: on liquidity, capital, risk management, operational control and costs• We do business in markets we understand intimately, with customers with whom we have long-standing relationships, selling products we understand fully• We strive to be true to our values and culture, running the Group as one bank across geographies and businesses• We are committed to building a sustainable business, through our strategy, business models, products and involvement in our communities

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

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• Our strategy must take into account the fundamental task of re-establishing confidence and trust in banks and the need to build a sustainable business

Mergers and Acquisitions

Date Location  What has Done

May 2008

Vietnam Standard Chartered announces raising strategic stake in Vietnam's Asia Commercial Bank to 15%

Jan 2008

South Korea Standard Chartered to acquire South Korea's Yeahreum Mutual Savings Bank

Oct 2007

South Korea Standard Chartered First Bank Korea Ltd to acquire 80% stake in South Korea's A Brain, a funds administration company

Sep 2007

Global Signs agreement to buy American Express Bank, a wholly owned subsidiary of American Express Company, with operations in 47 countries

Sep 2007

Global Standard Chartered to acquire Pembroke, an aircraft leasing, financing and management firm

Sep 2007

Global Standard Chartered to acquire Harrison Lovegrove, a leading global oil and gas M&A advisory boutique

Aug 2007

India Standard Chartered announces acquisition of 49% strategic stake in India's UTI Securities, a leading local broking firm.

End 2006

Taiwan Launched tender offer for 100% in Hsinchu International Bank (USD1.2bn)

Sep 2006

Pakistan Acquisition of 95.37% Union Bank (USD487m)

Sep 2006

Indonesia Acquisition of 26% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD193m). Total stake held in PermataBank by consortium today is 89%.

Jun 2006

Africa Acquisition of 25% in First Africa Group Holdings Ltd

Dec 2005

N/A Acquisition of 20% stake in Fleming Family & Partners (USD78m)

Sep 2005

China Acquisition of 19.99% of China Bohai Bank (USD123m)

Aug 2005

Bangladesh Acquisition of Amex Bank's Bangladesh business (USD25m)

Jun 2005

Vietnam Acquisition of 8.56% stake in Asia Commercial Bank (USD22m)

Apr 2005

Global Acquisition of a minority stake (6%) in Travelex as part of Apax led consortium

Jan South Korea Acquisition of Korea First Bank (USD3.3bn)

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2005

Dec 2004

Global Acquisition of ANZ's Project Finance business with assets (USD15m)

Nov 2004

Indonesia Acquisition of 63% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD355m)

Sep 2000

Hong Kong Acquisition of Chase Manhattan Card Company (USD1.32bn)

Jul 2000

Global Acquisition of ANZ Grindlays (USD1.34bn)

Jun 2004

Hong Kong Acquisition of PrimeCredit

Divisions and Departments

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

Personal Banking

Private Banking

SME Banking

Wholesale Banking

Personal Banking

This type of banking by Standard Chartered Bank covers the following:

Accounts: Standard Chartered offers the Term deposits, depository services, corporate salary account and variety of Current accounts and Saving accounts.

Credit Cards: Standard Chartered offers the various cards like: Emirates platinum card, Platinum Card, Emirates Titanium Card, Super Value Titanium Card, Gold Card, EMI Card, Executive Card, Classic Card, Business Gold Card, Gold Rewards Card, Plus Extended Protection Plan, Your Rewards Plus Program, Special offers, Register for Verified by Visa, Register for MasterCard Secure Code, FAQs for VBV/MasterCard Secure Code

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Debit and prepaid cards: Shop Smart Card, Platinum Debit Card, Plus Extended Protection Plan, Smart Travel card.

Loans and mortgages: home loans, loans against securities, home saver, loan against term deposit, loan against property.

NRI banking: NRE Account, NRO Savings Account, FCNR Account,

Exclusive Banking: Excel banking, Priority banking.

Insurance and Investments: General insurance, life insurance and investment services.

Private Banking

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

SME Banking

SME Banking offers one of the widest range of banking products and services in the market today. Managing a growing business demands most of your time and energy. Our relationship managers understand your business requirement and help you manage your business better. This offers the following:

Business Current Accounts: International trade Account, Business Essential account.

Loans: Business installment loan, Loan/overdraft against property, Term loan.

Trade and working capital products: Trade and working capital, Express trade.

Forex services and others: Forex services, online payment, credit grading methodology, service charges and fees.

Wholesale Banking

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

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People

Our highlights and achievements in 2008

• Successful integration and harmonization of the American Express Bank acquisition across 47 markets, 19 of which are new markets to the Group’s footprint

• Strengthened our leadership capability through the Great Managers and Leadership Development programmes which covered 4,000 and 1,500 managers, respectively

• Launched a refresh of the Group’s values and behaviors

Our priorities in 2009

• Continue to drive performance through productivity and engagement

• Continue to recruit and develop strong and diverse leaders

• Further embed the Group’s values to maintain our distinctive and unique culture

•Maintain sharp focus on recognizing and rewarding the appropriate behaviors for sustainable business performanceIn the current economic environment, it is more important than ever to focus on our people. The diversity of our employees provides us with our unique source of strength. We place particular importance on continuously improving the way we work and living the Group’s values to embed our company culture. By focusing on building great leaders and engaging our employees, we continue to drive performance.Global representation of female Employees 46% Percentage of employees who received training 90%

Our people, our values

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

Diversity and InclusionWith 125 nationalities represented among over 70,000 employees, our diversity provides us with innovative ideas and in-depth local knowledge, enabling us to better serve our customers and maintain our competitive advantage. Supporting employees to meet their obligations outside of work is key to attracting and retaining this diverse talent. In 2008 we continued to roll out a flexible working policy in five new markets, taking the total to nine. We have piloted working

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from home across three functions in three markets. Over 180 employees from our Global Shared Service Centre in Chennai have enrolled in the Working Home initiative, contributing toa more healthy work-life balance. We have also expanded the coverage of paternity policies to the US, Australia, Lebanon and Bangladesh and opened a number of day care centres in India and a crèche in Sri Lanka. 2008 was a year of focusing on the key, unique elements that make the Group successful. By creating an engaging environment where our people and our culture can flourish, we enter 2009 with clear targets for the year ahead.

Our board of directors

Our leaders reflect the diversity that drives Standard Chartered's success and makes us one of the

world's most international banks.

Meet the board

Acting Chairman

John Peace

Executive Directors

Peter Sands Richard Meddings Steve Bertamini

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

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

Non-Executive Directors

Jamie Dundas Val Gooding Rudy Markham

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

Ruth Markland Sunil Mittal John Paynter

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

Paul Skinner Oliver Stocken

Non-Executive Director Non-Executive Director

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Our global team

Our employees have more than doubled in number over the past five years. Nearly half the

number of employees are women and 68 nationalities are reoresented among our senior

management, reflecting the Bank's policy towards providing equal opportunity for all.

We are committed to creating an engaging, inclusive work environment, where people can make

a difference, as individuals and as part of a team. The Bank places great emphasis on continuous

improvement to increase productivity, enhance customer service and reduce administrative tasks,

so that employees can spend more time in rewarding activities that add value to the Group.

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Financial Profile

“We have delivered a solid operating performance in 2008 built on a liquid, diversified, de-risked balance sheet. We enter 2009 cautious but prepared both for the challenges and opportunities that will come.”

Richard Meddings, Group finance director

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

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

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

This KPI is calculated as profitattributable to ordinaryshareholders of the Group asnormalised for certain one-offor irregular items, divided by the weighted average of the number of shares in issue during the year.

Operating income

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

Tier 1 capital ratio

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

Tier 1 capital ratio**

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

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Normalised earningsper share*174.9cents

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

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

SourceHas been calculated from the consolidated balance sheet.

Operating income$13,968m

AimTo sustain organic momentum

AnalysisDuring 2008, operating incomegrew 26 per cent, with sevenof nine geographic segments eachdelivering over $1 billion of income.

SourceHas been calculated from the consolidated balance sheet.

10.1%

AimTo maintain Tier 1 capital ratiobetween seven and nine per cent

AnalysisDuring 2008, the Group maintained a Tier 1 capital ratio of 10.1 per cent on a Basel II basis, an increase of 1.3 percentage points comparedwith 2007 (0.3 percentage pointson a Basel I basis), comfortablyabove our stated target

SourceHas been calculated from the consolidated balance sheet.

Normalised return on shareholders’ equity 15.2%

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

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

SourceHas been calculated from the consolidated balance sheet.

Standard Chartered had another year of strong financial performance in 2008. The performance was particularly pleasing as it came in a year of global financial upheaval.

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The Group has not escaped unscathed from the biggest financial crisis of our times, but a firm grip on the basic foundations of banking – liquidity, capital, risk and cost management – enabled it to escape the worst of the turmoil and stand out in the global financial landscape. Last year’s performance can be summed up by the following achievements:

Standard Chartered PLCConsolidated balance sheet As at 31 December, 2008

Assets 2008 2007$ Million $ Million

Cash and balances at central banks 24,161 10,175Financial assets held at fair value through profit or loss 15,425 22,958Derivative financial instruments 69,657 26,204Loans and advances to banks 46,583 35,365Loans and advances to customers 174,178

154,266Investment securities 69,342 55,274Interests in associates 511 269Goodwill and intangible assets 6,361 6,374Property, plant and equipment 3,586 2,892Current tax assets 764 633Deferred tax assets 660 593Other assets 20,374 11,011Prepayments and accrued income 3,466 3,857

Total assets 435,068 329,871

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

Total liabilities 412,373 308,419

EquityShare capital 948 705Reserves 21,192 20,146

Total parent company shareholders’ equity 22,140 20,851Minority interests 555 601

Total equity 22,695 21,452

Total equity and liabilities 435,068 329,871

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Standard Chartered PLCConsolidated Profit and loss AccountFor the year ended 31December, 2008

2008 2007$ Million $ Million

Interest income 16,378 16,176Interest expense (8,991)

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

61.62 59.65Total dividend:Interim dividend paid ($ million) 364 324Final proposed dividend* ($ million) 801 793

1,165 1,117

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Products and services

Savings accounts

aXcessPlus Account

Standard Chartered Bank's aXcessPlus is a revolutionary savings account that provides you with unstinted aXcess to your money.

Special Features

Exclusive benefits of an aXcessPlus savings account: FREE Unlimited Visa ATM transactions (Cash withdrawal) FREE Standard Chartered Bank branch access across the country

FREE Doorstep Banking

FREE Demand Drafts/Pay Orders (drawn at SCB locations)

FREE Payable at Par Chequebook

Additional Features

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

International Debit Card Phone Banking

Online Banking

Extended Banking Hours

SuperValue Account

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

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Special Features

Exclusive benefits of a SuperValue Account: Free globally valid Debit-cum-ATM card Free Access to at over 20,000 Visa ATMs in India

Free Doorstep Banking

Free Payable at Par cheque book/ account statements / DDs

Free Inter Bank Funds Transfer

Free Foreign Inward Remittance Certificates

Additional Features

With the SuperValue Account you also get: Multicity Banking - access your account even when you are out of town Enjoy extended Banking hours at all our branches, and Speed Cheque Clearing and Metro

Clearing facilities

24-hour branches, 365 day branches available at select locations

Phone banking - available to you 365 days a year on a 24-hour basis in the metros and everyday of the week at other centers

Online banking - access and transact on your accounts through the Internet from any part of the world

Free Investment Advisory Services to assist you in investing in a range of mutual funds

Full suite of complimentary banking services including credit cards, loan products and capital market services

Parivaar Account

Parivaar is a unique Wealth Management Solution from Standard Chartered Bank that offers your family flexibility, convenience and essential tools for wealth accumulation and preservation.

Special Features

Parivaar is much more than a regular Savings Account. It allows you maintain your individual identity while allowing you to tap your family's financial strength. Here are some of the features of the Parivaar savings account:

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Your family can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts.

Anytime, anywhere access to accounts through ATMs, Phone Banking and Online Banking.

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

No Frills Account

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

What’s more – you can avail of Anywhere Banking, by which you can access your account from any branch of Standard Chartered Bank in India.

Special Features

Here are some of the unique features available on No Frills Account: Low Average Quarterly Balance of Rs. 250 ATM card & Debit Card available

4 free transactions per month at any Standard Chartered Bank channel (Online Banking, Phone Banking, ATM & Branch)

Anywhere banking – Access your account from any branch of Standard Chartered Bank

Access to Phone Banking and Online Banking

Free Cheque deposit at any SCB Branch or ATM

Eligibility Criteria

This account is available to individual Resident Indian customers. The Standard Chartered Bank No Frills account can be opened after being properly introduced in a manner approved by the Bank.

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

Free unlimited access to any SCB branch across the country for Customer-in-person

Unlimited Free access to Standard Chartered Bank ATM's

Up to 4 free cash withdrawal transactions per month at other domestic VISA ATMs*

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Nominal quarterly fee of Rs. 100 (reversed if the Average Balance in the quarter is Rs. 10,000 or more)

Complete control over your banking requirements:

o International Debit Card

o Phone Banking

o Online Banking

o Extended banking hours*

o Locker facility*

o Doorstep Banking

2 in 1 Account

Introducing a unique account that offers you a double advantage – it lets you earn the high interest rate of a fixed deposit while you enjoy the flexibility of a savings or current account.

Special Features

Exclusive benefits of a 2 in 1 account:

Effective 28th March 2009, the 2 in 1 limit on the operative account has been enhanced from the current 75% to 95% of the linked Term Deposit value

Earn fixed deposit interest rates Enjoy the flexibility of a Savings or a Current Account

Get a free personalized cheque book and Debit/ATM card

Withdraw money whenever you need it

Deposit more money in your account to earn a higher rate of interest by placing subsequent deposits

Get account related information at your fingertips with Phone Banking

Current Accounts

Business Plus Account

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

Special Features

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

FREE Drafts on our branch locations As a Business Plus customer, you can now avail of drafts & pay orders payable at any of our branches up to 75 a quarter.

FREE Payable at par cheques You can issue cheques payable at par at any of our branch locations, free of cost.

FREE National Electronic Fund Transfers Now, transfer funds seamlessly to accounts in over 63 banks and 26000 branches across India. The funds can be transferred within 24 hours*.

FREE Anywhere banking facility You can conduct your banking transactions from any of our branches spread across the country, irrespective of the branch where your account was opened.

Additional features

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

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

Drafts on correspondent bank locations You now have an opportunity to avail of drafts on over 470 locations, at most competitive rates

Quick transfer You can transfer funds between your accounts with our bank – almost instantaneously and free!

Doorstep Banking You can request for cash pick-up and delivery, cheque pick-up, draft/PO delivery, to/from your home or office. Just call / fax us your request.

FREE Internet Banking Access your account any time of the day from anywhere in the world through our Secured Internet Banking facility. And do routine banking transactions online.

FREE Phone Banking Access your account from the comfort of your home / office. You can get account information, request for drafts, give stop cheque instructions, transfer funds and do much more with just one phone call – any time of the day.

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Debit Card with aXcessPlus benefits You can now get FREE* access (4 free transactions per month) to your money through over 20000 VISA ATMs spread across the country. You'll also get all the special privileges and offers, made available to our

Eligibility

Eligibility criteria for a Business Plus Account: The Business Plus Account is only available to the following:

o Resident Indians

o Individuals / Sole Proprietorships / Partnerships / Associations / Companies-Private & Public Ltd. / Societies / Trusts / HUFs

This account can be opened Singly or Jointly and requires an initial deposit of Rs.50,000.

The minimum average quarterly balance requirement for your Business Plus Account is Rs.50, 000.

Enhanced Business Plus Account

You run your business efficiently, and effectively. That's why you need a current account that does the same. The Enhanced Business Plus Account from Standard Chartered is designed to make better business sense and make your money work most effectively.

It's all you have ever wanted from a current account and more.

Every business has different needs and complexities. That's why the Enhanced Business Plus Account has been developed to suit your business needs.

Special Features

Whatever the nature of your business, controlling costs is always a top priority. Enhanced Business Plus Account offers a range of unmatched opportunities for you to save money, which you can reinvest into your business.

FREE Drafts on our branch locations As a Business Plus customer, you can now avail of drafts & pay orders payable at any of our branches up to 75 a quarter.

FREE Drafts on correspondent bank locations You now have an opportunity to avail of free drafts drawn on over 470 locations, up to a limit of Rs. 75 lakhs per month*.

FREE Payable at par cheques You can issue cheques payable at par at any of our branch locations, free of cost.

FREE National Electronic Fund Transfers Now, transfer funds seamlessly to accounts in over 63 banks and 26000 branches across India. The funds can be transferred within 24 hours*.

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FREE Doorstep Banking You can request for cash pick-up and delivery, cheque pick-up, draft/PO delivery, to/from your home or office. Just call / fax us your request.

Additional features

Whatever your banking requirements our Enhanced Business Plus Account gives you a better mix of value and transactional convenience. We also recognize that your time is precious. Thus, we provide a host of services that will help you save the time spent on banking.

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

Quick transfer You can transfer funds between your accounts with our bank – almost instantaneously and free

FREE Internet Banking Access your account any time of the day from anywhere in the world through our Secured Internet Banking facility. And do routine banking transactions online.

FREE Phone Banking Access your account from the comfort of your home / office. You can get account information, request for drafts, give stop cheque instructions, transfer funds and do much more with just one phone call – any time of the day.

FREE Anywhere banking facility Conduct your banking transactions from any of our branches spread across the country, irrespective of the branch where your account was opened.

Debit Card with aXcessPlus benefits You can now get FREE* access (4 free transactions per month) to your money through over 20000 VISA ATMs spread across the country. You'll also get all the special privileges and offers, made available to our Debit Card customers.

We also believe you deserve a choice, that's why we give you the option of choosing the average quarterly balance you would like to maintain with the bank. Depending on the balance, you can avail of a wide range of services that this account offers.

Option Average Quarterly Balance

Enhanced Business Plus 100 Rs.100,000

Enhanced Business Plus1000 Rs.10,00,000

Eligibility

Eligibility criteria for a Enhanced Business Plus Account: The Enhanced Business Plus Account is only available to the following:

o Resident Indians.

o Individuals / Sole Proprietorships / Partnerships / Associations / Companies-Private & Public Ltd. / Societies / Trusts / HUFs.

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This account can be opened Singly or Jointly

Insurance & Investment plans

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

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

One-stop shopping for both life and general insurance protection Comprehensive range of products to suit every stage of your life... from childhood to

retirement

Dedicated insurance Financial Services Consultants from Bajaj Allianz Life Insurance Company provide FREE Consultations to create customized insurance plans for you

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

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

Planning for your financial goals

Standard Chartered Bank, using over 150 years of expertise, promises to guide you through the world of exciting new investment opportunities in India and overseas.

From shortest-term deployment of funds to planning your retirement, we pledge to go the extra mile to ensure that you reach your chosen financial goals.

General Insurance

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

Key Plans

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

Health shield: A comprehensive health insurance package designed to offer complete protection to the insured and his family.

Car shield: A comprehensive motorcar insurance package, designed to cover your car in most adverse situations.

Home shield: Provides complete coverage for damage to your building.

Accident shield: Designed to take care of you and your family in the unfortunate event of a fatal accident.

Double protect: “Double Protect” is a 2 years Health Insurance plan. The plan offers reimbursement of Hospitalisation expenses in the event of illness or accident

Hospital Cash: This Plan is de signed to pay daily Hospital Cash benefits in the event of an accident or illness and hence getting Hospitalised.

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

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

Wide range of specialised insurance covers in Property, Marine, Engineering, Liability and Business Interruption risks apart from specially designed packages for Small and Medium enterprises.

Royal Sundaram Insurance offers customized insurance coverage plans.To avail of the same, please contact your Customer Relationship Manager at your nearest Standard Chartered Bank branch today!*The General Insurance products listed above are underwritten by Royal Sundaram Insurance Company Limited. Insurance is the subject matter of the solicitation. Please read the disclaimer

Disclaimer

General Insurance Disclaimer Insurance Plans for Standard Chartered Bank customers is issued by Royal Sundaram Alliance Insurance Company Limited. Claims will be settled by Royal Sundaram Alliance Insurance Company Limited as per the terms and conditions of the policy. These details are not a contract

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of Insurance. Please refer policy document for exact terms and conditions and specific details applicable to this Insurance. This plan is underwritten by Royal Sundaram Alliance Insurance Company Limited. Standard Chartered Bank does not accept any responsibility nor gives any warranty, express or implied, as to the accuracy, reliability and completeness of any statement made in or the omission of any provisions of the contract of Insurance from this brochure and the Bank does not accept any liability for loss or damage of whatsoever nature, which may be attributable your application, its receipt, payment of claims under it or the contract of Insurance. Your participation in this insurance product is purely on a voluntary basis. We advise you to take your own professional advice before you participate.

Life Insurance

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

At Standard Chartered, you can avail of the services of trained & certified professional consultants from Bajaj Allianz Insurance company, who can guide you in ascertaining your insurance needs, and assist you in making an insurance plan that is just right for you.

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

New Unit Gain: An investment plan that creates value for every rupee you invest o It is a unit linked regular premium plan.

o 96% of First Year’s Regular Premium is allocated to funds in the following manner

Of the first year’s Regular Premium, 45% is allocated to Fund(s) immediately

5.1% of the First Year’s Regular Premium will be allocated to funds every year starting from 4th policy year till the end of 13th policy year (making it 51%) , provided all due Regular Premiums have been paid

o A new Asset Allocation Fund – A good option to invest in that shifts your funds as per the opportunities available & attractiveness of the sector

Youngcare & Youngcare plus: It is a unit linked regular premium plan specially designed to secure your child’s future

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o It has an in built WOP (Waiver of premium) rider. i.e on death of Life assured, the policy continues with premiums paid into the policy by the insurance company till the end of term

o Sum Assured is paid on Death and WOP is triggered. Nominee receives the fund value at the end of the term

o Loyalty units are infused into the policy from the 6th Year onwards as a % of the fund value

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

o It has a double Death Benefit which is Sum Assured + Fund value

o The allocation to funds starts from 80% and keeps reducing depending on the premium size

o Future Secure has an Unlimited Top-up facility where the Sum assured may not increase with infusing additional premium as Top up

o Loyalty Units get infused from Year 6 onwards as a % of fund value

Bajaj Allianz Care First: A medical insurance plan that allows you to renew till the age of 65 years. Premium guaranteed for the length of the each policy term of 3 years

o Generous hospital cover up to 7 Lacs.

o Cashless Treatment available across over 2000 leading hospitals in over 200 towns across India.

o Specific Day Care treatments requiring less than 24 hrs. Hospitalization is also covered under this plan.

Protector: A Mortgage Reducing Term Insurance Plan. Make you’re your family home remains with your family for life.

o The loan protector plan from Bajaj Allianz Life Insurance is mortgage reducing term assurance plan, which at low premiums helps you to secure your family against home loan.

o It is an economical way to protect the family from the burden of repayment of the loan.

o Convenient premium payment options - Regular Premium Payment & Single Premium Payment.

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o Joint Life availability - the option to cover the co-applicant of the loan under this plan.

New Unit Gain Easy Pension Plus: Unique unit-linked pension plan without life cover

o Available in Single Premium and regular Premium payment mode.

o Option to take a tax-free lump sum up to 33% of Sum Assured.

o Open Market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.

o Choice of 5 investment funds.

o 3 free switches allowed every year.

Child Gain: Insure today and secure your child’s education and ambitions. This policy is available in 4 Options

o ChildGain 21 and ChildGain 21 Plus

Child's education Plan upto Graduation

105% Guaranteed Payouts + Bonuses

o ChildGain 24 and ChildGain 24 Plus

Child's education Plan upto Post Graduation

115% Guaranteed Payouts + Bonuses

o Family Income Benefit: In case of death or accidental total permanent disability of insured, all future premiums are waived and 1% of the sum assured is paid monthly

o Start of Life Benefit: Enables a smooth start to your child’s professional life, incase of an unfortunate death or disability of the insured parent during the policy term.

Invest Gain: Invest Gain is a specially designed plan that offers a unique combination of benefits that help you develop a sound financial portfolio for your family.

o 4 Times Life Cover at a little extra cost.

o Limited premium payment option available.

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o Available with a host of additional benefits including: Family Income and Waiver of Premium Benefit

Term Care: Term Assurance plan with return of premium o An economic way of providing life cover, this plan also ensures the return of all

premiums at the time of maturity.

o Dual benefit - Life cover + Return of premiums paid on survival at the end of the term.

o Single premium payment option available.

o The only pure term plan in the market to provide Hospital Cash Benefit.

Bajaj AllianzBajaj Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering you Insurance solutions that provide all the security you need for your family and yourself.Bajaj Allianz Life Insurance offers customized insurance coverage plans. To avail of the same, please contact your Customer Relationship Manager at your nearest Standard Chartered Bank branch today!

Life Insurance DisclaimerLife Insurance Disclaimer Insurance is the subject matter of the solicitation. Bajaj Allianz Life Insurance Plans for Standard Chartered Bank customers are underwritten by Bajaj Allianz Life Insurance Company Limited. Claims will be settled by Bajaj Allianz Life Insurance Company Limited as per the terms and conditions of the policy. This brochure is not a contract of insurance. Please refer policy document for exact terms and conditions and specific details applicable to this Insurance. Standard Chartered Bank does not accept any responsibility nor gives any warranty, express or implied, as to the accuracy, reliability and completeness of any statement made in or the commission of any provisions of the contract of insurance from this brochure and the bank does not accept any liability for loss or damage of whatsoever nature, which may be attributable to your application, its receipt, payment of claims under it or the contract of insurance. Your participation in this insurance product in purely on a voluntary basis. We advise you to take your own professional advise before participate. This content should be read in conjunction with the Benefit Illustration and Policy Exclusions. Please ask for the same along with the quotation.

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

• Citi Bank

• HSBC

• American Express

• ABN AMRO

• Deutsche Bank

Citibank is a major international bank, founded in 1812 as the City Bank of New York, later First National City Bank of New York. Citibank is now the consumer banking arm of financial services giant Citigroup, one

of the largest companies in the world. As of March 2007, it is the largest bank in the United States by holdings.

Citibank has operations in more than 100 countries and territories around the world. More than half of its 1,400 offices are in the United States, mostly in the New York City, Chicago, Miami, and Washington, D.C. metropolitan areas, as well as in California.

In addition to the standard banking transactions, Citibank offers insurance, credit card and investment products. Their online services division is among the most successful in the field, claiming about 15 million users.

As a result of the global financial crisis and huge losses in the value of its subprime mortgage assets, Citibank was rescued by the U.S. government under plans agreed for Citigroup. On November 23, 2008, in addition to initial aid of $25 billion, a further $25 billion was invested in the corporation together with guarantees for risky assets amounting to $306 billion.

HSBC Holdings plc is a public limited company incorporated in England and Wales in 1990, and headquartered in London since 1993. As of 2009, it is both the world's largest banking group and the

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world's 6th largest company according to a composite measure by Forbes magazine. The group was founded from The Hongkong and Shanghai Banking Corporation based in Hong Kong, the acronym of which led to the current name. Today, whilst no single geographical area dominates the group's earnings, Hong Kong still continues to be a significant source of its income. Recent acquisitions and expansion in China are returning HSBC to part of its roots. HSBC has an enormous operational base in Asia and significant lending, investment, and insurance activities around the world. The company has a global reach and financial fundamentals matched by few other banking or financial multinationals.

HSBC is listed on the London, New York, Hong Kong, Paris and Bermuda Stock Exchanges, and is a constituent of the FTSE 100 Index and the Hang Seng Index.

In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine. Not known for marked fluctuations in securities exchanges around the world relative to its rivals, HSBC is a better known in banking circle for its conservative and risk-averse approach in its business operations - a company tradition going back to the 19th century. In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group's image did not go unnoticed.

As of April 2, 2008, according to Forbes magazine, HSBC was the fourth largest bank in the world in terms of assets ($2,348.98 billion), the second largest in terms of sales ($146.50 billion), the largest in terms of market value ($180.81 billion). It was also the most profitable bank in the world with $19.13 billion in net income in 2007 (compared to Citigroup's $3.62 billion and Bank of America's $14.98 billion in the same period).

HSBC is by far the largest bank both in the United Kingdom and in Hong Kong and prints most of Hong Kong's local currency in its own name. Since the end of 2005, HSBC has been the largest banking group in the world by Tier 1 capital.

The HSBC Group has a significant presence in each of the world's major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of the business. With 9,500 offices in 86 countries, 210,000 shareholders, 330,000 staff and 128 million customers worldwide, HSBC arguably has the most international presence among the world's multinational banking giants.

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

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American Express Company sometimes known as "AmEx" or "Amex", is a diversified global financial services company that is headquartered in New York City, New York. Founded in 1850, the company also has major offices

in Fort Lauderdale, Florida; Salt Lake City, Utah; Greensboro, North Carolina; Phoenix, Arizona; Sydney, New South Wales, Australia; Markham, Ontario, Canada; London and Brighton, United Kingdom. The company is best known for its credit card, charge card, and traveler's cheque businesses.

The company's common stock trades on the New York Stock Exchange under the ticker symbol "AXP." It is one of the 30 components of the Dow Jones Industrial Average. In 2007, BusinessWeek and Interbrand ranked American Express as the fourteenth most valuable brand in the world, estimating it to be worth US$20.87 billion.

On November 10, 2008, during the financial crisis of 2008, the company won Federal Reserve System approval to convert to a bank holding company, making it eligible for government help under the Troubled Assets Relief Program. At that time, American Express had total consolidated assets of about $127 billion.

American Express's chief executive officer is Kenneth Chenault, who took over in 2001.

ABN AMRO is a Dutch bank, currently owned by RFS Holdings B.V., a consortium of Royal Bank of Scotland Group, the Government of the Netherlands, and Banco Santander. The bank was created as the result of the 1990-91 merger between

Amsterdam-Rotterdam (AMRO) Bank and ABN, whose history dated back to the founding of the Nederlandsche Handel-Maatschappij in 1824.

Between 1991 and 2007, ABN AMRO was one of the largest banks in Europe and had operations in about 63 countries around the world.

In the biggest banking takeover in history, a consortium comprising RBS, Fortis, and Banco Santander acquired ABN AMRO in 2007.

Due to the 2008 financial crisis, the Dutch government nationalised the divisions owned by Fortis, while the UK government is now in effective control over the divisions allocated to RBS due to its financial bail-out of the Scottish bank. The process of integrating some of ABN AMRO's divisions into the new owners, and divesting others, continues. On April 7, 2009 the UK state-owned RBS unveiled plans to fire upwards of 9000 staff.

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Deutsche Bank AG (literally "German Bank" is an international Universal bank with its headquarters in Frankfurt, Germany. The bank employs more than 81,000 people in 76 countries, and has a large presence

in Europe, the Americas, Asia Pacific and the emerging markets.

Deutsche Bank has offices in major financial centers, such as London, Moscow, New York, Singapore, Sydney, Hong Kong and Tokyo. Furthermore, the bank is investing in expanding markets, such as the Middle East, Latin America, Central & Eastern Europe and Asia Pacific.

The bank offers financial products and services for corporate and institutional clients along with private and business clients. Services include sales, trading, and origination of debt and equity; mergers and acquisitions ((M&A); risk management products, such as derivatives, corporate finance, wealth management, retail banking, fund management, and transaction banking.

Deutsche Bank’s Chief Executive Officer and Chairman of the Group Executive Committee, since 2002, is Josef Ackermann. Deutsche Bank is listed on both the Frankfurt (FWB) and New York stock exchanges (NYSE).

Deutsche Bank’s mission statement is: “We compete to be the leading global provider of financial solutions for demanding clients creating exceptional value for our shareholders and people.” The bank’s business model rests on two pillars: the Corporate & Investment Bank (CIB) and Private Clients & Asset Management.

Comparative analysis of standard chartered products with other multinational banks

Comparison on the basis of Savings Account

Factors Stan Chart Bank

Citi Bank HSBC Bank Deutsche Bank

ABN AMRO

Avg. Quarterly Balance in Saving A/C

Access PlusRs.25000

Super valueRs.50000

Citi Bank Savings

Rs.25000

Citi Bank Gold Rs.50000

Normal Rs.25000

Power Vantage

Rs.1Lac

Premium Rs.25Lac

Normal Rs.1Lac

Plus Rs. 3Lac

Premium Rs.20Lac

Flex Privilege

Rs.50000

Flex Plus

Rs.15000

Flex Adv Rs.10000

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NEFT Free Free Free Free Free

RTGS Free Free Free Free Free

Relationship Manger

No Yes(AQB more than 1lakh)

Yes(AQB more than 1lakh)

Yes (AQB more than 3lakh)

No

Credit Card No No No Yes (AQB more than 3lakh)

No

Door step banking

Free (AQB more than Rs.50000)

Free (AQB more than Rs.1lakh)

Free (AQB more than Rs. 1lakh)

Yes (AQB more than Rs.3lakh)

Free (AQB more than Rs.50000)

Financial Consultant

No Yes Yes Yes No

Online Banking

Yes Yes Yes Yes Yes

Comparison on the basis of Current Account and other factors

Factors Stan Chart Bank

Citi Bank HSBC Bank Deutsche Bank

ABN AMRO

Avg. Quarterly Balance in Current A/C

BP50 Rs.50000

EBP100 Rs.1lakh

EBP1000 Rs.10 lakh

Citi business less than Rs.1lakh

Citi business Rs.1lakh or more

Citi gold business Rs.15 lakh or more

Business Vantage Rs. 1lakh or more

Business Select Rs.5lakh or more

db S(Silver)75 Rs.75000or more

db P(Platinum)250 Rs.2.5lakh or more

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

Value+Silver40 more than Rs.40000

Value+Gold100 Rs.1lakh or more

Value+Gold500 Rs.5 lakh or more

At par cheque book

Yes Yes Yes Yes Yes

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ATMs & Debit Card

Yes Yes Yes Yes Yes

D/D at their Banks

Free upto Rs.25000 p.m.in BP50 A/c

Unlimited Free AQB A/c more than Rs. 1lakh

Free upto Rs.5lakh p.m. AQB less than 1lakh

Free upto Rs.50lakh p.m. AQB more than 1lakh

Unlimited free with AQB more than 15 lakh

Unlimited free in every account

Unlimited free in every account

Free only in Value+Gold500 A/c

D/D at other locations

Free upto Rs.50lakh p.m. in EBP100

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

Free upto Rs. 25 lakh where AQB is more than 1lakh

Free unlimited where AQB is more than 15lakh

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

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

Free upto Rs.50000 in every A/c

Branches68 metros

83India

25 metros35 India

30 metros39 India

20 metros35 India

17 metros19 India

ATMs165

376 158 126 78

Charges for ATM Rs. 200p.a.

Rs.100 p.a. Rs.150 p.a. Rs. 200p.a. Rs.200 p.a.

Charges per transaction from ATMs of other banks

4transactions free per month and then Rs.50per transaction

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

2 transactions free per month and then rs.40 per transaction

Locker facility Yes Rs 2000

p.a.

No Yes No No

Avg. 10 am – 7pm

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

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Banking hrs.

24c hrs branch Yes

No No No No

Min balance saving

1000010000 10000 10000 10000

Charges for not maintaining min balance

750 per quarter

250per month 300per quarter 350 per quarter

200 – 1800 per month

Flexibility of interest rates

YesNo Yes No No

Comparison on the basis of insurance products

Term insurance

Factors Bajaj Allianz HDFC Birla Sun LifeEntry age 18-50 years 18-60 years 18-55 yearsMinimum sum assured

100000 100000 250000

Minimum term 5years 5years 5yearsMax. term 40years 30years 25years

Child Care plan

Factors Bajaj Allianz HDFC Birla Sun LifeEntry age 18-60years(Parent)

0to13years(child)18-60years(Parent) 0to13years(child)

18-60years(Parent) 30daysto13years(child)

Min. term 5years 10years 5yearsMax. term 21years 25years 23years

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Comparison on the basis of Financial Ratios

Factors Standard Chartered

HSBC Citi ABN AMRO

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

4.28 3.74 5.16 1.54

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

Operations

The bank is a leading player throughout the developing world.

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

The bank supports marathons in many cities, including London (The City Run), Jersey, Singapore, Dubai, Lahore, Mumbai, Hong Kong, and Nairobi. The first Standard Chartered marathon in Kuala Lumpur will be launching this year.

Standard Chartered global presence

Asia Pacific

India

Pakistan

Afghanistan

Indonesia

Philippines

A J S

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ustralia apan ingapore B

angladesh L

aos S

outh Korea B

runei Darussalam M

acau S

ri Lanka C

ambodia M

alaysia T

aiwan C

hina M

auritius T

hailand H

ong Kong N

epal V

ietnam

Africa The Middle EastS

ierra Leone B

ahrain B

otswana S

outh Africa E

gypt C

ameroon T

anzania J

ordan C

ote d'lvoire T

he Gambia L

ebanon G

hana U

ganda O

man K

enya Z

ambia Q

atar N

igeria Z

imbabweU

AE

UK/Europe

Austria

Kazakhstan

Spain

France

Luxembourg

Sweden

Germany

Monaco

Switzerland

Guernsey

Poland

Turkey

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$Italy

Romania

Ukraine

Jersey

Russia

United Kingdom

The Americas

Argentina

Chile

Uruguay

Bahamas

Colombia

USA

Brazil

Falkland Islands

Venezuela

Canada

Mexico

Cayman Islands

Peru

Application of Chi-square for checking the relationship between age and types of accounts offered

A random poll of 309 customers is taken resulting in the following table.

Types of Accounts offered

Age Current A/c Savings A/c Fixed deposit A/c Total0-20 26 95 18 13920-40 41 40 20 101>40 24 13 32 69

91 148 70 309HYPOTHESIZE

Step1: The hypothesis as follows

Ho: Type of Accounts offered is independent of age

Ha: Type of Accounts offered is not independent of age

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Step2: Contingency table for observed frequency:

Age Current A/c Savings A/c Fixed deposit A/c Total0-20 26 95 18 13920-40 41 40 20 101>40 24 13 32 69

91 148 70 309

Step3: Alpha is 0.01

Step4: Here there are three rows(r =3) and three columns(c =4).The degree of freedom is (3-1)(3-1)=4, and the critical value is X2

.01,4 =13.2777.the decision is to reject the null hypothesis if the observed value of chi-square is greater than 13.2277.

Step4: Contingency table for Expected frequency:

Age Current A/c Savings A/c Fixed deposit A/c Total0-20 40.9 66.58 31.49 13920-40 29.74 48.38 22.88 101>40 20.32 33.05 15.63 69

91 148 70 309

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

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

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

Step5: Table for the calculation of observed X2 is:

O E (O-E)2 (O-E)2/E26 40.94 223.20 5.4595 66.58 807.70 12.1318 31.49 181.98 5.7841 29.74 126.79 4.2640 48.38 70.22 1.4520 22.88 8.2944 0.3624 20.32 13.54 0.6713 33.05 402 12.1632 15.63 267.98 17.15

59.41

DECISION

Step6: The observed value of Chi-square, 59.41, is greater than the critical value, 13.277, so the null hypothesis is rejected.

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BUSINESS IMPLICATION:

Step7: The two variables – Accounts offered and age – are not independent. Examination of the categories reveals that younger people tend to prefer savings account and older people prefer fixed deposit account. This information helps the managers of various banks while offering and targeting the customers.

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

The objective of the training module is to help the students to understand the business environment well and equip themselves with the work culture of the companies in the present era.

I, Anurag Jindal, take the opportunity to introduce the reader the outlines of my Management Research Project. I have completed my Summer Internship from Standard Chartered Bank, Gurgaon branch.

My summer internship was divided into two halves: In the first half, I was engaged in selling of Standard Chartered products- Current Account, Savings Account and Insurance Plans. In the

51

second half, I had to analyze consumer behaviour towards Standard Chartered products as compared to other multi-national banks. This comparison is followed by a survey and its analysis and at the end the recommendations that could make Standard Chartered more effective in the banking sector.

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

To know about the status of SCB in comparison to other banks To identify the level of competition among MNC banks To identify the areas where SCB could improve To find out the satisfaction level of customers. To know about the various services provided by MNC banks

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MethodologySince it is basically a market research project along with some marketing and selling of financial products, various market research methods were used to accomplish its goals. I conducted a market survey to know about the various players and their performance in the industry taking into consideration the various products and the product related services provided by them.

The stepwise methodology that was used is:

1. Secondary Research: Company description was obtained through websites, business magazines, and journals and from the organization itself. Information like current market share was extracted from net.

2. Sampling: Selecting the sample: Population that was taken as a sample included randomly selected customers of some multinational banks like Standard Chartered Bank, ABN-AMRO, HSBC, Deutsche Bank, Citibank .Sampling Technique: Simple Random Sampling

Sample Size: 100 respondents (total)

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3. Primary Research: Primary research was conducted through surveys via:a. Personal Interviewsb. Interactions with consumers of different banks.c. Interaction with customers at Malls and other market places.

Questionnaires were designed to conduct interviews.

4. Preparation and tabulation of data: After the data has been collected, it was entered into Microsoft Excel and was prepared for analysis.

5. Data Analysis: The data so collected was analyzed in Microsoft Excel with the help of bar diagrams, pie charts, etc.

Finally, the information thus obtained from the survey was used to discover the potential segment for generating new business for the organization and thereby devise strategies to generate new business from that potential segment

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

Questionnaire of Banks

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

Demographics

1. Name __________________________________________________

2. Age

a) Below 20 years b) 20 – 40 years c). 40 – 60 years d) Above 60 years

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3. Sex

a) Male b) Female

4. Marital Status a) Marriedb) Single

5. Occupationa) Student b) Service

c) Business d) Others ______________________

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

7. Contact Number/Email _______________________

8. Your criteria for choosing a particular bank:

(Please tick the appropriate box, 1- lowest 2 -low 3- average 4 – high and 5- the highest)

Rating Scale

Features 1 2 3 4 5

1. Location

2. Ambience

3. Timings

4. Products Offered

5. Clarity of Information

6. Service

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

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

Rating Scale

Bank 1 2 3 4 5

1.Standard Chartered

2. Citibank

3. ABN Amro

4. HSBC

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

Bank

Services

SCB ABN AMRO HSBC Citibank

1.Saving A/c

2.Current A/c

3.Term Deposit

4.Credit cards

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Findings

Age

Age

15 15.0 15.0 15.0

26 26.0 26.0 41.0

40 40.0 40.0 81.0

19 19.0 19.0 100.0

100 100.0 100.0

Below 20 years

Between 20 and 40 years

Between 40 and 60 years

Above 60 years

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

Occupation

Occupation

13 13.0 13.0 13.0

47 47.0 47.0 60.0

36 36.0 36.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

Student

Service

Business

Others

Total

ValidFrequency Percent Valid Percent

CumulativePercent

58

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

Annual Income

Annual Income

13 13.0 13.0 13.0

11 11.0 11.0 24.0

44 44.0 44.0 68.0

32 32.0 32.0 100.0

100 100.0 100.0

Dependant

Below 2 Lakh

Between 2-5 Lakh

Above 5 Lakh

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

Factors affecting the banking habits of people

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

1. Location

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Location

11 11.0 11.0 11.0

50 50.0 50.0 61.0

39 39.0 39.0 100.0

100 100.0 100.0

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

2. Ambience

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Ambience

3 3.0 3.0 3.0

8 8.0 8.0 11.0

51 51.0 51.0 62.0

34 34.0 34.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

Lowest

Low

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

3. Timings

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Timings

1 1.0 1.0 1.0

4 4.0 4.0 5.0

58 58.0 58.0 63.0

36 36.0 36.0 99.0

1 1.0 1.0 100.0

100 100.0 100.0

Lowest

Low

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

4. Products Offered

63

Product Offered

17 17.0 17.0 17.0

64 64.0 64.0 81.0

17 17.0 17.0 98.0

2 2.0 2.0 100.0

100 100.0 100.0

Low

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

5. Information

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Information

15 15.0 15.0 15.0

74 74.0 74.0 89.0

11 11.0 11.0 100.0

100 100.0 100.0

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

6. Service

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Service

1 1.0 1.0 1.0

40 40.0 40.0 41.0

59 59.0 59.0 100.0

100 100.0 100.0

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

Rating of Banks

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1. Standard Chartered Bank

Standard Chartered

3 3.0 3.0 3.0

32 32.0 32.0 35.0

50 50.0 50.0 85.0

15 15.0 15.0 100.0

100 100.0 100.0

Low

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

2. ABN Amro

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ABN Amro

38 38.0 38.0 38.0

60 60.0 60.0 98.0

2 2.0 2.0 100.0

100 100.0 100.0

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

3. Citibank

68

Citibank

30 30.0 30.0 30.0

66 66.0 66.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

4. HSBC

69

HSBC

6 6.0 6.0 6.0

71 71.0 71.0 77.0

23 23.0 23.0 100.0

100 100.0 100.0

Average

High

Highest

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

Services availed

70

1. Standard Chartered

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

2. ABN AMRO

71

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

3. HSBC

72

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

4. Citi Bank

73

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

Questionnaire of Insurance

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

Demographics

1. Name __________________________________________________

2. Age

a) Below 20 years b) 20 – 40 years c). 40 – 60 years d) Above 60 years

3. Sex

a) Male b) Female

4. Marital Status

a) Marriedb) Single

5. Occupation

a) Student b) Service c) Business d) Others ______________________

6. Annual Income

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

7. Contact Number/Email ______________________

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8. Your criteria for choosing a particular Insurance Company:

(Please tick the appropriate box, 1- lowest 2 -low 3- average 4 – high and 5- the highest)

Rating Scale

Features 1 2 3 4 5

1. Location

2. Ambience

3. Timings

4. Variety Offered

5. Clarity of Information

6. Service

9. Rate the following banks on a scale of 1 to 5 of satisfaction level. (Please tick the appropriate box, 1 being the lowest and 5 the highest)

Rating Scale

Insurance Companies

1 2 3 4 5

1. Bajaj Allianz

2. ICICI

3. HDFC

4. Birla Sun life

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

Insurance Company

Services

Bajaj Allianz

ICICI HDFC Birla Sun life

1.Term Insurance

2. Cash back plan

3.ULIPs

4.Child Care plan

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Age

Age

15 15.0 15.0 15.0

26 26.0 26.0 41.0

40 40.0 40.0 81.0

19 19.0 19.0 100.0

100 100.0 100.0

Below 20 years

Between 20 and 40 years

Between 40 and 60 years

Above 60 years

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

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Occupation

Occupation

13 13.0 13.0 13.0

47 47.0 47.0 60.0

36 36.0 36.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

Student

Service

Business

Others

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

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Annual Income

Annual Income

13 13.0 13.0 13.0

11 11.0 11.0 24.0

44 44.0 44.0 68.0

32 32.0 32.0 100.0

100 100.0 100.0

Dependant

Below 2 Lakh

Between 2-5 Lakh

Above 5 Lakh

Total

ValidFrequency Percent Valid Percent

CumulativePercent

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

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Factors affecting the habits of people

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

1. Location

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

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2. Ambience

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

82

3. Timings

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

83

4. Variety Offered

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

84

5. Information

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

85

6. Service

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

86

Rating of Insurance company

1. Bajaj Allianz

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

87

2. ICICI

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

88

3. HDFC

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

89

4. Birla Sun Life

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

90

Services availed

1. Bajaj Allianz

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

91

2. ICICI

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

92

3. HDFC

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

93

4. Birla Sun Life

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

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

Service Quality

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

Branch Facilities

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

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ATM Service

By automating the most common day-to-day banking transactions–cash withdrawal, cheques deposits and statement generation–ATMs have, in a sense, liberated customers from time-wasting branch visits and surly staff.

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

The Future

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

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

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

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

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

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

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Market Potential

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

The Road Ahead…

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

Recommendations:

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

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

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

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

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

Get insight into trends in market performance

Pinpoint growth sectors and identify factors driving change.

Identify market and brand leaders and understand the competitive environment.

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

Segments with high unrealized potential

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

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

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

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References

1. Internet Sites

www.standardchartered.co.in

www.economictimes.com

www.hsbc.com

www.abnamro.com

www.icici.com

www.citibank.com

www.americanexpress.com

www.deutche.com

2. Magazines and Newspapers.

Economic Times

Business India

Business Standard

The Times Of India

3. Books

Marketing Management By Philip Kotler

Marketing Research

4. Product Manuals, Standard Chartered Bank

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