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Project Report

On

(Special emphasis on saving


accounts of Standard Chartered
Bank)
EXECUTIVE SUMMARY

In todays business scenario, it is very much imperative that a good


management professional must be well versed with practical
application of theories and principle of management, learned during
management course pursued by summer training.

The project gives the needed beneficial practical knowledge and


helped the management professional in understanding the nature of
markets, people and organizations.

This project report is made on the basis of research conducted


through questionnaire and personal interview method.

In the beginning of the project report, the introduction is given about


the STANDARD CHARTERED BANK. It is followed by the product
profile and then is followed by details of saving accounts . It is
followed by the research design, which was being adopted for
conducting the study. Summarized data is shown with the help of
well-labeled graphs and findings have been given.

Later part of the report contains SWOT analysis, followed by the


conclusion; which is made on the basis of the study carried out. A few
suggestions have been given fore effective marketing strategies.
TABLE OF CONTENTS

1. INTRODUCTION
a) INDIAN BANKING
b) STANDARD CHARTERD BANK

2. RESEARCH METHODOLOGY

3. FEATURES OF STANDARD CHARTERED BANK

4. SAVING ACCOUNTS OF STANDARD CHARTERD


BANK

a) AXCESS PLUS ACCOUNT


b) PARIVAR ACCOUNT
c) SMART FILL ACCOUNT

5. ANALYSIS OF QUESTIONARIES

6. SWOT ANALYSIS

7. CONCLUSSIONS
RESERVE BANK OF INDIA

Indias central bank the RBI was established on 1st April 1935
and was nationalized on 1st January 1949 . Reserve bank of India
occupies a special and a distinctive place in the Indian Banking
industry. It is the monetary authority and central bank of the country
and has been assigned wide powers and responsibilities.
The reserve bank of India Act says to regulate the issue of bank
notes and for keeping of reserves with a view to securing monetary
stability in India and generally to operate the currency and credit
system of the country to its advantage .

FUNCTIONS OF RESERVE BANK OF INDIA

Some of its main objectives are regulating the issue of bank notes ,
managing Indias foreign exchange reserves , operating Indias
currency and credit system with a view to securing monetary stability
and developing Indias financial structure in line with national socio-
economic objectives and policies.
The functions of Reserve Bank of India are as
follows:

1. To issue bank notes


.
2. To transact Government Business in India .

3. To manage public debt.

4. To undertake Transactions in foreign Exchange and to act as


Controller of Foreign exchange .
5. To keep cash reserves of scheduled Banks .

6. To grant loans to scheduled commercial banks and cooperative


banks .

7. To act as controller of credit .

8. To grant advances to government.


PRIVATE BANKS

Banking in todays time has surely changed. Gone are the days when
it took a lot of pain to open even a small savings account. With the
entry of more and more participants in this industry it has further
intensified the competition among the players . The government has
also benefited from this by allowing private players to the financial
markets and which has given the consumer lots of choices to opt for .
Reserve Bank of India being the central banking authority of the
country has been acting as a guide to look after the functioning of
these private banks.

THE RESERVE BANK OF INDIA HAS ISSUED GUIDELINES


REGARDING THE FORMATION AND FUNCTIONING OF PRIVATE
SECTOR BANKS.

1. The banks shall be governed by the provisions of The Reserve


Bank of India Act , 1934 , The Banking Regulation Act ,1949
other relevant statutaries

2. Private sector banks are required to be registered as public


limited companies in India.

3. The authority to grant a license lies with the RBI.


4. The shares of banks are required to be listed on stock
exchange.

5. Preference will be given to those banks whose headquarters


are proposed to be located in a center which does not have
headquarters of any other bank.

6. Maximum voting rights of an individual shareholder would be


limited to 1% of total voting rights.

7. The new bank would not be allowed to have as its director any
person who is already a director in a banking company.

8. The banks will be free to open branches anywhere once they


satisfy the capital adequacy and prudential accounting norms.

9. The banks would be required to use modern infrastructural


facilities in office equipment, computer ,telecommunication etc.

POLICY FOR INVESTMENTS MADE IN PRIVATE BANKS

New private sector banks have not been allowed to be set up in India
since 1969.With a view to increasing competition in the banking
industry and in line with the recommendations of the Narasimhan
committee, the government has now allowed entry of such banks.
CLOSE MONITORING BY RESERVE BANK OF INDIA

However, the freedom of the entry into the banking sector will be
carefully managed by the RBI. The RBI will grant approvals for entry
of private sector banks provided such banks offer competitive,
efficient and low cost financial intermediation services, result in up
gradation of technology in the banking sector, are financially viable
and do not resort to unfair means like preemption and concentration
of credit , monopolization of economic power ,cross holding with
industrial groups etc.

FOREIGN INVESTMENT IN THE BANKING SECTOR

Under the scheme, Non Resident Indians are allowed to have primary
equity in a new banking company to the extent of 40% . In the case of
a foreign banking company or a finance company acting as a
technical collaboration or a co-promoter, equity participation is
restricted to 20%.
INTRODUCTION

The Chartered Bank opened its first overseas branch in India, at


Kolkata, on 12 April 1858. Eight years later the Kolkata agent
described the Bank's credit locally as splendid and its business as
flourishing, particularly the substantial turnover in rice bills with the
leading Arab firms. When The Chartered Bank first established itself
in India, Kolkata was the most important commercial city, and was the
centre of the jute and indigo trades. With the growth of the cotton
trade and the opening of the Suez Canal in 1869, Bombay took over
from Kolkata as India's main trade centre. Today the Bank's
branches and sub-branches in India are directed and administered
from Mumbai (Bombay) with Kolkata remaining an important trading
and banking centre.

At Standard Chartered they are committed to the communities and


environments in which they operate. Their Operations are focused on
the emerging markets and they believe that with appropriate policies
and practices in place they can be a legitimate influence for good by
promoting the highest standards of responsible business.
HISTORY OF STANDARD CHARTERED

Standard Chartered is the world's leading emerging markets bank


headquartered in London. Its businesses however, have always been
overwhelmingly international. This is summary of the main events in
the history of Standard Chartered and some of the organisations with
which it merged

The early years


Standard Chartered is named after two banks, which merged in 1969.
They were originally known as the Standard Bank of British South
Africa and the Chartered Bank of India, Australia and China. Of the
two banks, the Chartered Bank is the older having been founded in
1853 following the grant of a Royal Charter from Queen Victoria. The
moving force behind the Chartered Bank was a Scot, James Wilson,
who made his fortune in London making hats. James Wilson went on
to start The Economist, still one of the world's pre-eminent
publications. Nine years later, in 1862, the Standard Bank was
founded by a group of businessmen led by another Scot, John
Paterson, who had immigrated to the Cape Province in South Africa
and had become a successful merchant. Both banks were keen to
capitalize on the huge expansion of trade between Europe, Asia and
Africa and to reap the handsome profits to be made from financing
that trade. The Chartered Bank opened its first branches in 1858 in
Chennai and Mumbai. A branch opened in Shanghai that summer
beginning Standard Chartered's unbroken presence in China. The
following year the Chartered Bank opened a branch in Hong Kong
and an agency was opened in Singapore. In 1861 the Singapore
agency was upgraded to a branch, which helped provide finance for
the rapidly developing rubber and tin industries in Malaysia. In 1862
the Chartered Bank was authorised to issue bank notes in Hong
Kong. Subsequently it was also authorised to issue bank notes in
Singapore, a privilege it continued to exercise up until the end of the
19th Century. Over the following decades both the Standard Bank
and the Chartered Bank printed bank notes in a variety of countries
including China, South Africa, Zimbabwe, Malaysia and even during
the siege of Makeking in South Africa. Today Standard Chartered is
still one of the three banks which prints Hong Kong's bank notes.

Expansion in Africa and Asia


The Standard Bank opened for business in Port Elizabeth, South
Africa, in 1863. It pursued a policy of expansion and soon
amalgamated with several other banks including the Commercial
Bank of Port Elizabeth, the Colesberg Bank, the British Kaffarian
Bank and the Fauresmith Bank. The Standard Bank was prominent in
the financing and development of the diamond fields of Kimberly in
1867 and later extended its network further north to the new town of
Johannesburg when gold was discovered there in 1885. Over time,
half the output of the second largest goldfield in the world passed
through the Standard Bank on its way to London. In 1892 the
Standard Bank opened for business in Zimbabwe, and expanded into
Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in
1906, Kenya, Zanzibar and the Democratic Republic of Congo
(D.R.C.), in 1911 and Uganda in 1912. Of these new businesses,
Botswana, Zanzibar and the D.R.C. proved the most difficult and the
branches soon closed. A branch in Botswana opened again in 1934
but lasted for only a year and it was not until 1950 that the Bank re-
opened for business in Botswana. In Asia the Chartered Bank
expanded opening offices in, Myanmar in 1862, what is now Pakistan
and Indonesia in 1863, the Philippines in 1872, Malaysia in 1875,
Japan in 1880 and Thailand in 1894. Some 34 years after the
Chartered Bank appointed an agent in Sri Lanka it opened a branch
in 1892 to take advantage of business from the tea and rubber
industries. During 1904 a branch opened in Vietnam. Both the
Chartered and the Standard Bank opened offices in New York and
Hamburg in the early 1900s. The Chartered Bank gaining the first
branch licence to be issued to a foreign bank in New York.

Standard Chartered in the 1990s

Even within this period of apparent retrenchment Standard Chartered


expanded its network, re-opening in Vietnam in 1990, Cambodia and
Iran in 1992, Tanzania in 1993 and Myanmar in 1995. With the
opening of branches in Macau and Taiwan in 1983 and 1985 plus a
representative office in Laos (1996), Standard Chartered now has an
office in every country in the Asia Pacific Region with the exception of
North Korea. In 1998 Standard Chartered concluded the purchase of
a controlling interest in Banco Exterior de Los Andes (Extebandes),
an Andean Region bank involved primarily in trade finance. With this
purchase Standard Chartered now offers full banking services in
Colombia, Peru and Venezuela. In 1999, Standard Chartered
acquired the global trade finance business of Union Bank of
Switzerland. This acquisition makes Standard Chartered one of the
leading clearers of dollar payments in the USA. Standard Chartered
also opened a new subsidiary, Standard Chartered Nigeria Limited in
Lagos, acquired 75 per cent of the equity of Nakornthon Bank,
Thailand; and agreed terms to acquire 89 per cent of the share
capital of Metropolitan Bank of the Lebanon.

Standard Chartered today

Today Standard Chartered is the world's leading emerging markets


bank employing 30,000 people in over 500 offices in more than 50
countries primarily in countries in the Asia Pacific Region, South Asia,
the Middle East, Africa and the Americas.

The new millennium has brought with it two of the largest acquisitions
in the history of the bank with the purchase of Grindlays Bank from
the ANZ Group and the acquisition of the Chase Consumer Banking
operations in Hong Kong in 2000.

These acquisitions demonstrate Standard Chartered firm committed


to the emerging markets, where it have a strong and established
presence and where it see their future growth.
RESEARCH METHODOLOGY

Mode of data collection

Primary data: The data has been collected with the help of

questionnaire with a view of obtaining the information on all the

aspects relating to the banking industry in general and STANDARD

CHARTERED BANK specifically.

Secondary data: This data has collected through Internet analysis

tools: the major analysis tools used have been percentages and data is

interpreted with the help of bar graph and pie diagrams.

Sampling plan for survey:

Sample size = 100

Sampling area = New Delhi

Sampling time frame = 1 months


FEATURES OF STANDARD CHARTERED BANK

Some of the salient features of standard chartered banks saving


accounts are :

Multicity Cheque Books : You can issue cheques payable at par


in Mumbai, New Delhi, Calcutta, Chennai, Banglore, Pune and
Kanpur .

Multicity Banking : You can open and operate an account at any


of the sixteen branches in Mumbai, New Delhi, Calcutta, Chennai,
banglore, Pune and Kanpur. You can transfer funds
instantaneously at free of charge in your account in these cities.
This would give tremendous flexibility in operating the account and
also save substantial amount towards TT/DD Charges.

Extended Banking Hour & 24 Hour Banking : The main


branches are open on week days from 9:00 am to 6:00 pm and on
Saturdays from 9:00 am to 1:00pm to give you more timing to do
banking. You can also do most of your banking over the phone,
thereby making banking easy and convenient.

National Clearing Speed Service : Outstation Metro (Mumbai,


New Delhi, Calcutta, Chennai, Banglore, Pune and Kanpur)
cheques received by 4 pm for national clearing will be credited
within 4 working days as to a minimum of 7 days in the normal
course, thus making your money available to you at the earliest.
Express Cheque Collection : This feature is available at selected
locations. You can have outstation cheques collected in just 7
working days at very nominal charges.

Cheque Deposit Boxes : You can deposit cheques at any of the


conveniently located centers in the city. Cheques deposited before
12:00 noon will be sent for clearing within 2 working days free of
charge.

Phone Banking : You can check your balance, ask for a draft ,
stop a cheque, transfer funds and do much more with just 1 phone
call. This feature is available anytime of the day from just about
anywhere.

ATMs : You can access your account whenever you need to from

any of the conveniently located ATMs . This means no more


queuing up at counters, no more bank opening and closing hours
and above all no more inconveniences on holidays .
LOOKING AT NEEDS OF CUSTOMER STANDARD
CHARTERED BANK PROVIDES DIFFERENT TYPES OF
SAVING ACCOUNTS WHICH ARE BENEFICIAL TO
CUSTOMERS IN ONE WAY OR ANOTHER.

TYPES OF SAVINGS ACCOUNTS OFFERED BY BANK

1. STANDARD CHARTERED AXCESSPLUS


ACCOUNT

2. STANDARD CHARTERED PARIVAR ACCOUNT

3. STANDARD CHARTERED SMARTFILL


ACCOUNT
Standard Chartered aXcessPlus

Standard Chartered introduces aXcessPlus - a revolutionary savings


account that provides you with unparalleled aXcess to your money.

With the aXcessPlus account you can now aXcess cash at over 1800
ATMs in India for FREE and at over 650,000 ATMs worldwide
through the Visa network. Besides, you can use your account to shop
for goods and services at over 25,000 outlets in India and at 10
million outlets worldwide, without ever having to carry cash!

The aXcessPlus account provides you with a globally valid debit card
that provides you these and a host of other exciting benefits:

Unique Features
There are several unique features about the Standard Chartered
Bank's aXcessPlus account, each designed to provide you the most
convenient banking experience you can ever get!

Free aXcess to cash at over 1800 ATMs in 35 cities in India

Globally valid debit card

The debit can be used to make purchases at over 25,000


merchant outlets in India and at over 10 million outlets
worldwide.
Phone banking, Internet banking, Multi-city banking, 365
days branches, extended banking hours, lockers facility
and doorstep banking.

Unique free insurance benefits - lost card insurance,


purchase protection and personal accident cover.

Exciting usage benefits such as Travel Cash Back -


discounts on airfare, Rasoi - ongoing privileges in restaurants,
Fab Deals - special privileges for shopping at select merchant
outlets, discounts at all BPCL IN & Out stores and special

rates on BPL electronic items plus a host of other discounts


vouchers.

You can allow a family member to avail these benefits through


the add-on card available with the joint account facility.

The aXcessPlus savings account is currently available in


Ahemdabad, Bangalore, Chennai, Delhi, Kanpur, Kolkata, Mumbai
and Pune.
One-stop solution for your entire family's banking needs

A unique Wealth Management Solution that offers your family


flexibility and tools for wealth accumulation and preservation
Unique features

A family can maintain individual savings accounts with the


benefit of clubbing balances in grouped accounts

Attractively priced health insurance options to protect against


unforeseen events

Free accident hospitalisation cover of Rs. 50,000 for the


primary account holder (for the first year)

FREE* access to accounts through 5500 ATMs in the country,


at all branches of the Bank and through Phonebanking and
Internet Banking

Option of Systematic Investment Plan (SIP), the best known


long term wealth building tool, that allows customers to invest a

fixed amount of money every month in specific mutual funds.


This comes with a direct debit facility and avoids the need to
remember dates and write cheques every month
Smart fill account is an account which has same features as
aXcess plus account but it has one additional feature of
SMART FILL DEBIT CARD

Smartfill Debit Card, launched in association with Bharat Petroleum,


will help you save on fuel purchases and even gets you free fuel.
Unique Features

Earn reward points every time you use the card to make
purchases ANYWHERE, which you can then redeem for fuel at
select Bharat Petroleum outlets
When you use the card to make purchases at select Bharat
Petroleum outlets, you don't have to pay the 2.5% surcharge
levied on most credit or debit cards

Smartfill Debit Card is globally valid. It gives you access to 12


million merchant establishments worldwide and over 55,000 in
India

You can access over 3500 ATMs in India for FREE and over
750,000 ATMs worldwide through the Visa ATM network

The card gets you an exclusive discount of 5% at select In &


Out stores at Bharat Petroleum outlets, besides benefits at
leading retail outlets and restaurant.
Q1. Do you know about Standard Chartered Bank ?

ANS. YES : 98

NO : 02
2%

yes
no

98%

Number of people knowing about Standard Chartered Bank .

The study shows that out of 100 people, 98 people know about
Standard Chartered Bank and 2 dont. The above analysis proves
that Standard Chartered Bank as a brand had established itself
among the common man.

Q2. If yes, then how?


ANS.
Through an association with the Bank 13
Through friends/relatives 24
Through advertisements 54
Through any other sources 9
9% 13%

24%
association with the bank
54% friends/relatives
advertisements
other sourses

Source of information about bank

The pie diagram at the preceding page shows that maximum


no. Of people know about STANDARD CHARTERED BANK
through its advertisements followed by friends / relatives,
than about 13% people knows about it through an
association with bank and rest from other sources. So this
study shows that most effective way to approach its
customer is the advertisements.

Q3. Do you have a Bank Account?

ANS.
YES 12%
88
NO yes
no
12
88%
People having bank A/C

It can be observed from the above pie diagram that a


considerable no. Of people are having bank account; this
shows that having a bank A/c is becoming necessity these
days. Those people not having bank a/c are mostly minors.

Q4. Which categories of bank you prefer.


ANS.
NATIONALISED BANKS 54
PRIVATE BANKS 40
MULTINATIONAL BANKS 06
6%

40% 54%
Nationalized banks
private banks
multinational banks

Share of different categories of banks


It can be inferred that still Nationalized banks are peoples favorite.
Private banks have also been able to get a good market share. But
the position of multinational banks is not satisfactory. They have to
work constantly very hard for establishing themselves among the
common man.

Q5. Presently, which of the following facilities


you are Availing?

Phone Petro Debit Credit Internet


Banking card card card Banking

41 2 15 17 3
ATM All None Any
other

57 0 32 1
60
50 no. of people
40
30
20
10
0

debit

credit
petro

any other
banking

banking

ATM

all
internet

none
card
card

card
phone

Graph showing number of people availing different facilities


This study shows that the maximum no. of people are using ATM
facility followed by phone banking. But still many people are not using
any of the facilities. Debit card and credit card are still holding a place
among the people. But facilities like petrocard and Internet banking
are not much popular among the common man.

Q6. What is your perception about Standard


Chartered Bank?

Very Good Good

17 48
Average Below Average

38 4
50 very good

40 good

30 average

20 below
average
10

0
very good good average below average

PERCEPTION OF PEOPLE FOR


STANDARD CHARTERED
BANK
The diagram shows that generally people have good perception
about STANDARD CHARTERED BANK where as a considerable
number of people have average perception, followed by very good
perception and a very few number of people have below average
perception.
Q7 Do you know about following products of Standard
Chartered Bank?

ANS.
SAVING ACCOUNT 65
CURRENT ACCOUNT 28
CREDIT CARDS 34
LOANS 29
INSURANCE 11
RBI RELIEF BONDS 03
ALL OF THE ABOVE 04
NONE OF THE ABOVE 14

70
60 no. of people
50
40
30
20
10
0
credit card

RBI relief
saving a/c

all of the

none
current a/c

loans

insuarence

above
bonds

People knowing about STANDARD CHARTERED BANK products

The graph shows that the saving a/cs are most popular among the
people followed by credit cards of STANDARD CHARTERED BANK.
Customers are also aware of its loans schemes and current a/c. but
still there is certain number of people who dont know about any of its
product. People also know about its insurance plans but only a few
people know about RBI relief bond offer by STANDARD
CHARTERED BANK, also there is hand full number of people who
know about all the products of STANDARD CHARTERED BANK.
Q8. Have you seen/ heard any of the Standard Chartered Banks
advertisements?

ANS.
Yes 74

No 26
26%

yes
no

74%

People seen/ heard Standard Chartered Banks advertisements?

The pie diagram Shows that a good percentage of people have seen
or heard STANDARD CHARTERED BANK advertisements, but still
there are hand full of people who havent seen or heard STANDARD
CHARTERED BANK advertisement. This shows that a large number
of people know Standard Chartered Bank through its advertisements.

Q9. Which Bank you like the most and why?

HDFC 30
UTI 4
STANDARD CHARTERED 13
ICICI 40
HSBC 3
ANY OTHER 26
40
35 no. of people
30
25
20
15
10
5
0

HSBC
HDFC

SCB

OTHER
UTI

ICICI

ANY
Graph showing preference of different banks

The study shows that performance of Standard Chartered Bank is


quite good except in regard to ICICI Bank and HDFC Bank. It can
even evade them through constantly providing good services and low
prices to people.

Q 10. Where do you think a Standard Chartered Bank/ATM


should come up?

Rajouri Garden Janak Rohini


64 Puri 1
11 4
Vikas Puri Pitam Ashok
24 Pura Vihar
7 0
Kamla Nagar 12 Moti Others
Bagh 1
6 6
10
20
30
40
50
60
70

0
Rajouri
Garden

Vikas Puri

Kamla
nagar
Janak
Puri

PitamPura

Moti Bagh

Rohini

Ashok
Vihar
other
no. of people

areas
STRENGTHS

(1) Standard Chartered is celebrating its 150 years of existence. This is

because it is getting tremendous support of its customers in India

and abroad.

(2) Standard Chartered operates in Asia, Africa, and South America,

which means it covers a considerable part of the globe.


(3) In India STANDARD CHARTERED BANK has been marked as the

second most profitable multinational company after HLL.

(4) The first four cash withdrawals per month from a non standard

chartered bank ATM are free of cost.

(5) The Connaught Place branch of STANDARD CHARTERED


BANK

its opened 365 days 24 hours.


LIMITATION OF STUDY:

Due to the following unavoidable and uncontrollable factors the


results might not be accurate. Some of the problems might faced
while conducting the survey are as follows:

1. Certain open-ended questions have been put in the


questionnaire to give respondents freedom to express
their perception.
2. Time and cost constraints were also there
3. Chances of some biasness couldnt be eliminated.
4. A sample size of 100 has been used due to time
limitations.

RECOMMENDATIONS:

The average quarterly balance to be maintained is too

high. It should be brought down.

It should improve upon the quality of service provided.

It should advertise more.


It should try to create a favorable image of itself in the

eyes of the people

It should promptly inform its customer regarding there

below minimum AQB, regarding the maturity dates of their

FDS and remainders regarding any sought of payment to

be made.

It should rework its infrastructure.

The terms and conditions through which an a/c can be

opened with the bank are too complicated and time-

consuming. The bank is a part of service industry and

instead of making its norm more difficult to understand

and to follow, it should try to be consumer friendly.

Instead of having an AQB of Rs 10,000/- it should have a

minimum balance of Rs 5000/-

It should have salary and student a/c

It should improve the quality of its staff.

It should have flexi timings of 8am to 8 pm.

It should have Sunday open facility.

The bank must have branches at places like Rajouri Garden and
Pitampura as these areas can bring huge revenues in terms of both
current A/c and saving A/c. the bank should also have branches at
Dwarka and Highways.
BIBLIOGRAPHY

(1) Site of Standard Chartered Bank:


www.standardchartered.co.in

(2) Journal of Reserve Bank of India

(3) Personal Interview with Mr. Jatin Jogi ,


(Asst. sales manager, Standard
Chartered Bank, Karol Bagh)

(4) Mithai, D. M., "Indian Banking", First


edition, Himalaya publications.

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