Internship Report on

Standard Chartered Bank

Submitted to:

Mr.G.M. Javed Anwar Course Teacher Department of Finance and Banking University of Dhaka

Submitted by:

Syed Mohammod Mostofa Shams

Roll # 6-143 BBA 6th Batch Section- A Department of Finance and Banking University of Dhaka

Date of Submission: Aug 7, 2005

A REPORT ON STANDARD CHARTERED BANK AND ITS PRODUCTS OVERVIEW

SUBMITTED TO

G M Javed Anwar
COURSE TEACHER DEPARTMENT OF FINANCE & BANKING UNIVERSITY OF DHAKA

SUBMITTED BY
SYED MOHAMMOD MOSTOFA SHAMS

Id no-6-143 Section-A Department of Finance And Banking University of Dhaka

Outline of the Report

TOPIC Letter of Transmittal Executive Summary

ACKNOWLEDGEMENT

Preface of the Report Economic Prospect of the country Objective of the Study Scope of the Report Methodology of the Report Limitations of the Report Products overview of SCB

PAGE 4 5 6 7 8 8 8 9 10

Assets Products of Consumer Banking 1 Cash Line 2 Flexi Loan 3 Personal Loan

Auto Loan
Credit Card Features at a Glance of Different Types of Loan 1 Cash Line 2 Flexi/ Installment Loan 3 Personal Loan 4 Auto Loan 5 Credit Card

Comparison of products with other Bank 35 Conclusion 40

August 7, 2005 The Manager Human Resource Department, Standard Chartered Bank Through: Mujtaba Mozumder MB & BSSM

Standard Chartered Bank, Gulshan Branch Dear Sir,

Subject: Submission of Internship Report I am submitting you my Internship Report on Standard Chartered Bank. The report has been prepared based on the various products features and its comparative analysis with other similar bank products. This report also covers the standard Chartered Banks operation in Bangladesh. I appreciate having this assignment. I prepared this report with sincerity and serious effort. I am really grateful to you for giving me the scope to prepare this report. I have enjoyed preparing this report and presented it for your judgment. It was undoubtedly a splendid opportunity to work on this report in order to use my theoretical knowledge in the practical arena to the utmost extent. The project generated a lot of information about Financial Industries products and services. This is for the first time that I have gained experience in a real life situation. I have observed the real life organizational problems by being there instead of visiting, which was in the case of course projects. The 12-weeks internship has helped me a lot in getting exposed to the practical field. I have tried my best to put in efforts for the preparation of this report. I shall appreciate your kind acceptance of my report.

Yours Faithfully Syed Mohammod Mostofa Shams

EXECUTIVE SUMMARY

Banks are the key financial institution for the economic development of a country. The progress and prosperity of an economy mainly depends on the efficiency and effectiveness of banks. Therefore internship in a bank is

highly effective for me as a finance graduate. Thus banks services towards its customer should be focused and highlights. Based on this belief I decide to prepare my report on various service oriented products banks offer to its customer and the comparative analysis of these products with others banks products. This report also highlights the following areas of banks: Standard Chartered Banks operation in Bangladesh. structure and

The main products preview of the bank. The comparative analysis of banks products among other banks. Findings of the report. Conclusion.

New Challenges of bank.

I hope that the above compilation would full fill the objective and requirement of the report.

ACKNOWLEDGEMENT

I would like to show my humble gratitude to all the individuals who have helped me to prepare this report during the last three months. As being a mere mortal, it is natural to forget a few names and those not mentioned by me, please accept my sincerest deeply apologies. I express my special gratitude to my honorable teacher, G M Javed Anwar for his supervision in preparing the report. He has guided me in coordinating the whole report. I take the opportunity to express my sincere gratitude and respect to Mr Mujtaba Mozumder, Manager Branches & Branch Sales & Services,, Gulshan Branch of Standard Charterted Bank accepting me to work in this renowned foreign bank and also for guiding me throughout my tenor. My heartiest gratitude go to Mr. Raihan Alauddin and Khan Mohammod Ishrat, Personnel Financial Consultant of Consumer Banking Division of Standard Chartered Bank for his constant support, guidance and supervision for my preparing the report for my Internship on my work in SCB. I gratefully acknowledge the help and guidance of Customer Relationship Manager, Sales Team Manager, Personal Financial Consultant of Gulshan Branch of Consumer, Priority, Corporate and Islami Banking Division of Standard Chartered Bank. Finally, my heartfelt thanks and gratitude for all of those instructors of Dhaka University with whom I did courses and who have given me the valuable education to help me in the practical working life.

PREFACE OF THE REPORT

This report is prepared based on my experience in Standard Chartered Bank during my internship programme. Since I have worked closely with personal financial consultants of banks, I choose my topic as The products analysis of Standard Chartered Bank and a comparison of banks products among the other banks operating in private sector. This will certainly provide a clear picture about the different products futures of Standard Chartered Bank and a comparative picture of those products with other banks. I have attached with Standard Chartered Bank from April 28 to July 28, 2005. My supervisor in Bank Mohammad Shafiqur Rahman (Sales Team Manager, Consumer Banking Division, Gulshan Branch, SCB) assigned me the topic of the term paper & my institution supervisor at University of Dhaka, Bangladesh Mr. G M Javed Anwar, duly approved it. The report will definitely identify how the banking products develop and reaches to customers with ease. The economic aspects of these products also highlights in this report. It also helps how corporate world really works and will help to apply theoretical knowledge in the practical life. ECONOMIC PROSPECTS OF OUR COUNTRY Standard Chartered Bank has been established with the objective of developing the Banks business and interests in the country. If the bank can run effectively, the development of SCB Bangladesh will be even greater. In our country capital formation is almost absent. In this country most of the people live below the poverty level. To improve their life standard and the economic infrastructure Standard Chartered Bank provides different types of loan facility to the people. The loan is granted to the applicants after completing the credit analysis factor

but most of the time it is found that the banks are suffering from bad debt. The present study has been planned to evaluate the loan policy of Standard Chartered Bank in Bangladesh, present tendency of the borrower is not to repay the loan and for that reason the present study is devoted to investigate the process, procedure and present position of Loan management of Standard Chartered Bank.

OBJECTIVE OF THE REPORT

The internships objective is to gather practical knowledge and experience in the corporate working environment with the close association to the business firm and the experts who are leading and making strategic decisions to enhance the growth of a financial institution. This report is contemplating the knowledge and experience accumulated from internship program. With the set guidelines and proposal provided by University of Dhaka, Bangladesh and with the kind advice of both the Organization and Internship Supervisor, this report comprise of an organization part and a report part. The prime objective of organization part is to present an overview and brief introduction of Standard Chartered Bank.
The prime objectives of project part are:

1. To learn about the various products offered by Standard Chartered Bank. 2. To provide an idea about the features of products of SCB 3. To present a comparative picture of SCBs products with other private commercial banks products.

SCOPE OF THE STUDY

The scope of this report is limited to the overall description of the company, its services, its functions and its financial performance analysis. Since SCB has started Priority Banking recently in Bangladesh; it has still to go a long way to achieve its destination. To achieve the long-term goal it must take each step very carefully. The report will mainly focus on how SCB

Bangladesh evolve new products and increase the customer base of banks in compare with other private commercial banks.

METHODOLOGY
Both the primary as well as the secondary form of information was used to prepare the report. The details of these sources are highlighted in the following.

1. Primary Sources

Primary data are collected through face to face interview with the bank personnels who are engaged with customer service, collection and sales department.

2. Secondary Sources 2.Secondary

Sources of secondary data can be defined as:

Internal Sources

Bank's Policy Manual Group Business Principal Manual Brochures Prior research report and any information and literature regarding the banking sector

External Sources

Different books and periodicals related to the banking Bangladesh Bank Report Newspapers Website information

sector

LIMITATIONS OF THE STUDY An Intern has to complete the internship and prepare an internship report within a semester. I got adequate support from my supervisor. Although as an intern, I did face some limitations to prepare the report because not all information is available to access for intern. The majors are:

Since I was a restricted to being an intern of Consumer Banking of SCB Gulshan, I was not able to venture into other departments for an extended period of time. Consequently I had great difficulty in preparing an internship report on the products features and new products information coming to the market. I had to visit the banks HQ frequently to collect data requisite to complete this report.

Due to time shortage, details of many aspects of the services of SCB Bangladesh have been ignored in this report.

Another main barrier in writing the report was data confidentiality. Though I saw the Banks internal procedure that is being used in processing and evaluating any documentary credit, I was advised not to disclose that in my internship report.

Standard Chartered Bank in Bangladesh

Standard Chartered is a British bank with its Headquarter situated in London. It is one of the leading international commercial banks in Asia, the top provider of correspondence banking and trade services in this region and the largest international banking group in Bangladesh.

History and background of Standard Chartered Bank

The Chartered Bank opened in Chittagong in 1948 in the eastern region of the newly created Pakistan. The branch was opened mainly to facilities the post-war reestablishment and expansion of South and South East Asia. The Bank opened its first branch in Dhaka in 1966. It shifted its headquarter from Chittagong to Dhaka after the birth of the Republic of Bangladesh in 1971. At present the Bank has 18 branches all over the country. The countrys only offshore banking unit inside the Dhaka Export Processing Zone at Savar. In the 1999 Standard Chartered has acquired the operation of Grindlays Bank in the Middle East and South East Asian countries. Grindlays (SCG) Bank started its journey in Bangladesh in 1905 under the name of Grindlays Bank (when it forbears the National

Bank of India opened in Chittagong). Second part of this year, Standard Chartered Bank took-over the operation of ANZ Grindlays Bank in Bangladesh as a part of acquisition of the South East Asian and Middle East operation of the Australia and New Zealand Banking Group. Standard Chartered Bank (SCB) become the highest bidder quoting about AU$2.5 billion (US$1.5 billion) after ANZ Banking group decided to sell its subsidiary, the ANZ Grindlays Bank operating mostly in the Middle east and South East Asian countries. The SCG with its 15 branches and booths across Bangladesh has employed more than 400 people while Standard Chartered Bank with its 6 branches has employed more than 200 people. The acquisition will enable Standard Chartered Bank (SCB) to access 500,000 new customer and 40 branches in India, which will make them one of the biggest bank in this region. At the beginning of this century Grindlays bank started its operation in Bangladesh. Until recently its was a wholly owned member of ANZ Banking group and recognize as one of the largest foreign bank operating in Bangladesh. After the acquisition, Grindlays Bank is a part of Standard Chartered Group. The Bank presently has 18 outlets in 6 cities serving over 65,000 customers. The network of Standard Chartered Bank in Bangladesh includes:

10 Branches in Dhaka 1 Branch in Savar 1 Branch in Narayanganj 3 Branches in Chittagong 1 Branch in Khulna 1 Branch in Sylhet. 1 Branch in Bogra

The network of SCB Bank engages itself for providing best quality banking service in retail, commercial and corporate banking segments. The countries top enterprise; multinational, Local Corporation and financial institutions are served by SCB. With total asset of BDT 41.48 billion and annual turnover of BDT 1.03 billion, SCB in Bangladesh is among the top performing multinational bank.

Standard Chartered is highly reputable in providing flexible and innovative financial services solutions. Their expertise is in corporate and institutional banking including cash management, trade finance and custodial services, consumer banking and treasury operations. SCB adopt a proactive approach in tailoring customized packages to meet our customers' ever-changing needs. SCB apply state-of-the-art technology to automate their daily operations and electronic delivery system has been put in place to ensure that transactions are handled swiftly and efficiently. Their dedicated Customer Service Centers are staffed with experienced Cash Products Specialists to ensure that all customers are well served. Standard Chartered fully understands the importance of time, convenience and efficiency to the success of business. They make easy the complex financial world for you and help you maximize every opportunity. With over 140 years of experience in trade finance and an extensive international branch network, Standard Chartered is committed to help you succeed in every competitive environment. To keep pace with the customers changing needs, SCB will constantly review their comprehensive cash, trade and treasury products and services, ensuring that a full range of flexible and innovative services is always available for any kind of trade.

STANDARD CHARTERED BANK TODAY Today Standard Chartered Bank is the worlds leading emerging market bank employing 30,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, Middle East and Africa. It is the only International Bank with a presence in Afghanistan. Bangladesh is under the Middle East and South Asia (MESA) region. In order to provide superior service and provide customer delight, Standard Chartered has more than 600 dedicated employees with 18 branches and 23 ATMs all over Bangladesh. The Bank offers various products like Credit Card, Loan products and other services including being the first to launch Priority Banking in Bangladesh.

STANDARD CHARTERED BANKS MISSION

Standard Chartered Bank has a mission to be the best international bank in the Middle East, Asia and Africa by 2010.

THE ORGANIZATION STRUCTURE The Standard Chartered Bank (SCB) in Bangladesh has its headquarters in Dilkusha and has eighteen branches across the country. While the full range of services is available at the headquarters, other branches offer specific services which are appropriate for the location. At the headquarters the bank mainly consists of two divisions:

Business Support The Business Division has the following department: Corporate Banking Group Global Markets Institutional Banking Consumer Banking Custodial services
The support division provides assistance to the above business activities and consists following departments:

 Operations Finance, Administration and Risk Management Information Technology Center Human Resource Department Legal and Compliance External affairs Credit All staff members of Standard Chartered Bank recognize their responsibility to their country and the community in which they operate. They are committed to excellence in customer service, to delivering consistently superior performance and to building shareholder value. The employees values are based on trust, teamwork, commitment and pride of the organization.

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a o n C f c h C i a i re l e f d O i t p C e ar ar

Figure 1.0 Organogram of Standard Chartered Bank

Chain of command of selected department is given below: Consumer Banking

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Figure 1.1 Structure of consumer banking department of SCB. MANAGEMENT The goal of Standard Chartered Bank is to be the Bankers of First Choice. Towards that goal, a Management Committee (MANCOM) does the overall planning in the organization in the headquarters level in Dhaka, headed by CEO and consisting of the business heads of Corporate Banking, Consumer Banking, Treasury, and from the support division, the heads of Human Resource, Operations, Finance and Legal & compliances. They meet once a month, or when special issues arise, to plan the strategic decisions.

PERFORMANCE AT A GLANCE

Balance Sheet
With a total asset size of BDT 57.37 Billion and a Net Income after tax of BDT 1.95 Billion at the end of the year December 31 2003, makes it the largest foreign bank currently operating in Bangladesh. The presence of the bank in most districts of the country helps it to generate all the revenue by giving maximum convenience to the customer. Growth in Total Assets for the year ending 2003 was a 39.02 % as compared to the growth in total assets for the year end 2002 of 88.8 %. The growth in the year 2002 was high, as

Standard Chartered Bank had taken over ANZ GRINDLAYS BANK in 2001. Before the acquisition, Standard Chartered Bank had a mere growth of 18 % in the year 2000.

Cash (In Hand in Bangladesh)

The growth of Cash (In Hand and With Bangladesh Bank) for the year-end 2003 had increased from BDT 3.42 billion in 2002 to BDT 4.35 Billion in 2003 - an increase of 27.19 %. This is due to the increase in deposits of nearly a 100%. The same figure - Cash (In Hand and With Bangladesh Bank) had increased by 18.75 % from year 2001 to year 2002. Standard Chartered Banks Investment in government treasury Bills and securities have gone up from BDT 4.63 Billion in 2002 to BDT 8.72 Billion in 2003, It was BDT 4.63 Billion in 2002. The same figure investments in both government and other securities was BDT 2.01 Billion in 2000.

2.6.3 Loan and Advances Loans and Advances was BDT 39.23 billion in 2003. For the year end 2002 had gone up by 87.70 % - from BDT 15.73 billion in 2001 to BDT 29.53 Billion in 2002. This is due the radical increase in deposits in the current, savings, and term deposits accounts of the bank by nearly a 100%.

2003 Total loan/Total deposit Total loan/Total asset ST loan / Total loan LT loan /Total loan 86.28% 68.37%

2002 90.65% 71.20% 75.26% 24.74% 96.25% 1.49% 2.26%

2001 96.24% 71.60% 78.65% 21.35%

2000 89.77% 62.19%

Unclassified

loans/Total

96.09% 1.44% 2.46%

95.38% 2.03% 2.59%

loan Doubtful loan/Total loan Bad or loss/Total loan Source: Annual report Table 1.0 Loans and advances

2.6.4 Premises and Fixed Assets Premises and other Fixed Assets for the bank is BDT 451 million in 2003. It had gone up by a 23 times after the acquisition of ANZ Grindlays by Standard Chartered Bank in 2001. The growth was double between 2001 and 2002. It was BDT 383.28 million in 2002 and BDT 187.96 million in 2001. 2.6.5 Liabilities Total liability for the year 2003 was BDT 52.79 billion. In the Liability side of the balance sheet one can say that the increase in the business size of Standard Chartered Bank in 2002 is due to the increase in its Deposits fixed deposits, current accounts, savings account and bills payable of a 100 %. The growth was around 60 % between 2000 and 2001 2.6.6 Total Share Holders Equity The Total Share Holders Equity has gone up from BDT 1.37 Billion in 2001 to BDT 2.49 Billion in 2002 and it was BDT 4.58 billion in 2003. This is due to a large amount of fund transferred from the Profit and Loss Account as retained earnings. The figure was BDT 1.1 billion in 2000. 2.6.7 Income Statement The Net Interest Income for the year 2003 was BDT 4.373 billion and it was BDT 1.65 billion in 2002. It was BDT .621 Billion in 2000 and it increased by 50 % to BDT.90 billion when Standard Chartered Bank Took over ANZ Grindlays Bank in 2001. Operating Income of the bank has also gone up from BDT 3.36 billion in 2002 to BDT 1.89 billion in 2001. If we compare the year 2002 and 2001 we can easily say that everything has doubled. Total operating expenses has nearly doubled, so has profit before provision. The Efficiency rate of the bank is as follows: YEAR 2003 2002 2001 2000

Efficiency

27.81

30.86

29.93

28.29

Ratio Source: Annual report Table 1.1 Efficiency ratios of different years The Efficiency ration is calculated by dividing Total Operating Expenses by Total Operating Income. The lower the ratio is, the better it is as this gives a picture of whether the revenue is efficiently used or not. 2.6.8 Profitability Ratios The two most common profitability ratios are the Return on Assets (ROA) and Return on Equity (ROE). YEAR 2003 2002 2001 ROE 42.62% 40.74 % 46.77 % ROA 03.40% 02.44 % 02.88 % Source: Annual report Table 1.2 Return on equity and asset of different years 2000 42.20 % 03.19 %

The Return on Asset for the Year 2002 has decreased from that of 2001 as there has been a higher percentage of growth in Total Assets as compared to growth in net profit after tax. The Return on Equity shows a similar picture as return on total Equity has fallen as the size of the Total Shareholders Equity has gone up due to retain earnings. 2.6.9 Contingent Liabilities The ratio by dividing total Contingent Liabilities (CL) by Total Shareholders Equity gives us a picture whether the bank can survive if there is any loss or if the bank closes down. YEAR 2003 CL / Equity 10.13 times
Source: Annual report

2002 14.78 times

2001 28.50 times

2000 21.80 Times

Table 1.3 Contingent liability/Equity of different years

OVERVIEW OF SHARED DISTRIBUTION DEPARTMENT

Consumer Banking
Superior retail banking services comprising a wide range of deposit and loan products are offered by the SCB to its individual customers. The employee of this division believes in Relationship Banking. This division constantly faces challenges and meets them by developing new products and services to fulfill the specific requirements. SCB offers 24 hour service through the wide range of ATM network all over the country as well as Internet Banking and Phone Banking through a 24 hour Call Centre.
ASSETS PRODUCTS OF CONSUMER BANKING

Consumer asset products include: Cash Line The motto of cash line is Have your cake and eat it too. Cash line gives the flexibility to meet the urgent need of cash. It lets one to manage his finances the way he likes it, offering the best of both Features: (a) Convenient: Cash line is a secured credit facility against fixed deposits, ICB unit certificates or Sanchay Patras. One can borrow up to 90% of the security Ready access to cash High return on long term investment

value and enjoy the benefits of readily available funds even as investment continues to earn interest. (b) Flexible: a. Payment can be made in monthly installments of 12, 24, 36, 48 or 60 months. b. Interest are due on quarterly basis, principal amount can be paid back at the end of the loan period. c. An overdraft limit of 90% of the security value will be set in current account. One will have the option of withdrawing as much money as one requires within the limit, anytime he is in need of cash. Interest will be charged on the amount he actually draws and only for the period he utilizes it. d. One can withdraw fund from the overdraft account or make deposits to cover the loan repayments through the ATM machine at any time of the day or night, 365 a year. Flexi Loan Flexi loan from Standard Chartered is a loan facility that has been custom designed to fit individuals needs. It lets one enjoy a higher standard of living while providing the convenience of repaying the loan over a maximum period of 6 months. The loan amount varies between a minimum of Tk.50,000 and a maximum of Tk.5,000,000. Requirements: A Bangladeshi citizen of age more than 20 A salaried/self employed individual earning Tk.12,000 or more per month. Maintaining a savings or current account in SCB for at least six months or a minimum of one year with any other bank. A resident of Dhaka, Narayanganj, Chittagong, Sylhet, Bogra or Khulna.

Features: (a) Flexi security: Flexi loan offers the option of choosing the amount of security as collateral for the loan. The security account may range from 30% to 100% of the amount. Common types of securities required are saving certificate (Sanchay Patra), fixed deposit, and ICB unit certificate. (b) Flexi repayment: Flexi loan allows to pay back the loan in monthly installments. The number of installments varies according to the amount of the loan. Loans from Tk.50,000 to Tk.500,000 can be repaid in 12, 24, 36 Loans from Tk.500,000 to Tk.1000,000 can be repaid in a maximum Loans greater than Tk.1000,000 can be repaid in a maximum of 60 monthly installments. of 48 monthly installments. monthly installments. (c) Flexi cost: If one has a borrowing relationship with SCB for at least 1 year, he will only need to offer 30% of the loan amount as cash security. If he provides more as cash security the interest rate will be correspondingly lower. In a nutshell, the applicable interest rates are: 13% per annum when 100% or more secured by readily encashable 15% per annum when 50% to 99% or more secured by readily 17% when 30% to 49% or more secured by readily encashable securities acceptable to the bank. encashable securities acceptable to the bank. securities acceptable to the bank. Personal Loan
An easy and fast loan product, that requires minimum documentation no cash security, no down payment and minimum processing time.

Features: (a) Flexible: with minimum documentation and security requirements, the product offers the choice of loan for any of the following purposes: (b) Helpful: The loan amount may range from Tk.75,000 to Tk.1000,000 and there is no cash collateral. Only document from employer or guarantee of a reputed person is sufficient. (c) Convenient: Monthly installments can be tailored to meet the convenience and budget. One can repay in 12 to 60 equal monthly installments depending on the loan amount. Purchase of miscellaneous household appliances Purchase of personal computers Purchase of refrigerators Purchase of audio-video equipment Purchase of furniture Purchase of office equipment Hospitalization or any other emergency medical needs. House renovation Office renovation Marriage in the family Advance rent payment Education training Holiday expense

Auto Loan

These kinds of loans are given to people who want to buy Brand New Cars or Reconditioned Cars. The maximum amount one can take as loan is 75% of the value of the car. To be eligible for the loan one has to be between 23 60 years of age, earning at least BDT 25,000 a month, a bank account statement for a year and has to be a resident of Dhaka or Chittagong. For Brand New Cars one gets a competitive interest rate, easy repayment option, and a host of other value-added banking services will be available. For Reconditioned Cars one has to choose a car less than 4 years old from the date of manufacturing. One can get loan up to 75% and loan tenure can be extended up to 48 months. The Rate of Interest depends on the creditworthiness of the buyers and it ranges from 13% to 16.50%.

Credit Card Standard Chartered credit card comes with a winning combination of value-packed features and benefits. Some are as follows:
(a) Wide acceptance:
Standard Chartered credit card is accepted at more than 3000 outlets around the country. One can use card for everyday purchases as well as high value purchases. SCBs wide range of merchants include hotels, restaurants, airlines and travel agencies, departmental stores, hospitals and diagnostic centers, jewelry shops, electronics and computer shops, leather goods, mobiles and internet service providers and many more. The number is increasing everyday to cater growing needs.

(b) Easy credit:

With Standard Chartered credit card, clients has the convenience to pay as little as 5% of their outstanding on credit account every month, thus having the power and flexibility to plan for the payments.

(c) Instant cash advances:

Standard Chartered credit card gives access to cash upto 50% of the credit limit. Cardholder can withdraw cash advances from all Standard Chartered ATMs around the country, thus having access to cash 24 hours a day. Besides cash advances can also be taken from any of the branches.

(d) Safe & secure:

If a client carries a credit card he doesnt need to carry cash. Moreover if he loses the card he will be protected from any financial charges he reports to the bank.

(e) Air accident insurance:

The Standard Chartered credit card gives free air accident insurance coverage unto Tk.100,000 (for Silver Card) and Tk.500.000 (or Gold Card). This coverage is also applicable to supplementary cardholders.

(f) Supplementary card: Cardholder may apply for Supplementary cards for spouse, parents, and children over 18, sisters, brothers or friends. All charges incurred on the Supplementary cards will be reported on the monthly statement. For the peace of mind original cardholder can assign monthly spending limit on each Supplementary card. Requirements:
This bank issues credit on two ways: 1. With collateral

2. Without collateral When bank issues card against collateral it usually prefers fixed deposit or securities (Sanchay Patras). In this case the ration is 1.3:1, means if client wants Tk.10,000

as a limit, he should have at least Tk.13,000 in his account. In addition to that he has to submit his salary certificate and the salary must be at least Tk.10,000 per month for a Silver card and Tk.55,000 for a Gold card. If self employed, copy of trade license and personal/ company statement for last six months in necessary. One can also have a card without collateral. In that case he has to submit his bank statement and transaction in addition to the salary certificate. If the customer has an account at Standard Chartered 3 months is well enough but for an account of other bank 6 months transaction is necessary. Standard Chartered Bank issues four types of credit cards:

Local Currency Credit Card: A. Master Card:

i. ii. iii.
B. Visa Card:

Master Gold Card: Limit - Tk.100K to Tk400K. Annual

fee Tk.3500. Master Platinum Card: Limit Tk 400K to Tk 800K.

Annual fee Tk 8000. Master Silver Card: Limit - Tk.10K to Tk.90K. Annual

fee Tk.1750.

i.

Visa Silver Card: Limit - Tk.10K to Tk.90K. Annual fee

Tk.1750. International Credit Card:

i. ii.

Visa Gold Card: Limit USD 5,000 to USD 20,000. Annual fee USD 120 Visa Classic Card: Limit USD 500 to USD 4,500. Annual fee USD 70.

FEATURES AT A GLANCE OF DIFFERENT TYPES OF LOAN

Cash Line

The prime features of this loan are

Minimum Loan Amount Maximum Loan Amount Repayment Tenure Months Interest Rate

: BDT 80,000 : BDT 5,000,000 : Minimum 12 Months and Maximum 60 : For Overdraft 13% with Security : For Bullet payment (Quarterly) 11% with

Security

Minimum Age

: 23 Years

Flexi/ Installment Loan

The prime features of this loan are

Minimum Loan Amount Maximum Loan Amount Repayment Tenure

: BDT 100,000 : BDT 5,000,000 : 36 Months (BDT 100,000-BDT 500,000) : 48 Months (BDT 500,000 -BDT 1,000,00 : 60 Months (BDT 1,000,000- BDT 5,000,000)

Interest Rate

: 14% for 100% Cash Covered Security 16% for 50%-90% Cash Covered Security 18% for 30%-49% Cash Covered Security

Monthly Income (Gross) Minimum Age

: For Salaried and Businessman BDT 12,000 : 23 Years

PERSONAL LOAN

The prime features of this loan are

Minimum Loan Amount Maximum Loan Amount Repayment Tenure Months Interest Rate Monthly Income Minimum Age

: BDT 75,000 : BDT 1,000,000 : Minimum 12 Months and Maximum 60 : 18%-19.5% (No Security) : minimum BDT 12,000(Net) : 23 Years

AUTO LOAN

The prime features of this loan are

Minimum Loan Amount Maximum Loan Amount Repayment Tenure Interest Rate Monthly Income Minimum Age

: BDT 200,000 : BDT 4,000,000 : 48 Months to 60 Months : For 15% Security 14% Without Security 16.5% : Minimum BDT 25,000(Net) : 25 Years

CREDIT CARD

The prime features of this loan are

Minimum Credit Amount : BDT 12000 [Up to BDT 99,000 Silver Card] BDT 12000 [Up to BDT 100,000- 499,000

Gold Card]

Maximum Loan Amount Monthly Income Minimum Age

: BDT 4,99,000 : Minimum BDT 12,000 (Net) : 23 Years

SECURED LOAN AND UNSECURED LOAN

The assets products can be divided mainly into two parts: 1. Secured Loan 2. Unsecured Loan Secured Loan This Loan is approved for the customer through credit department of SCB against security. In the past years customer could avail a loan against Sanchay Patra. However from January 04 Bangladesh Bank has ceased to allow any advances against Sanchay Patra. Consequently customers are allowed to take loan

against Fixed Deposit only. Cash Line, Flexi loan and Auto Loan are secured loan of Standard Chartered Bank. Unsecured Loan
This Loan is approved for the customer through Credit Department without any Security based on his Monthly income and last one year bank statement. Auto Loan, Personal Loan and Credit Card are unsecured product of Consumer Banking Division.
INDICATION OF A DEFAULTER AND ACTION
When a customer fails to repay the installment amount and schedule date over for a month this tenor called X days. After one month from schedule date 1 st reminder letter issued, again after 30 days 2 nd reminder letter issued, when 90 days will be over that time final letter issued to the customer. After 120 days and between 149 days the loan facility canceled by the collection department. Then on that specific borrower will be deemed as a defaulter. If the loan is secured then the collection units liquidate the security to recover the loan If this loan is unsecured then the Collection Unit does the followings to recover the loan The letter issued same as secured Loan Then the department called the guarantor If the person is salaried then the collection department called the employer. Then the department bounce PDC/UDC Last of all they issued Lawyers Letter.

REFERENCES

Saunders

Anthony,

Management

of

Financial

Institutions,

2nd

edition,

Irwin/McGraw Hill Publications, New York.

Donald R. Fraser, Benton E. Gup , James W. Kolari, Commercial Banking-

Management of Risk, Irwin/McGrawHill, New York

Gupta S.P. and Gupta M.P, Business Statistics, Sultan Chand & Sons Delhi.

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