Report On

TRANSACTION
BANKING
IN STANDARD CHARTERED
BANK BANGLADESH
A Descriptive Analysis
Table of Contents


CHAPTER-1
INTRODUCTION
1.1 ORIGIN OF THE REPORT
1.2 SCOPE
1.3 METHODOLOGY & SOURCE OF INFORMATION
1.4 LIMITATIONS
1.5 BANKING INDUSTRY OVRVI!
CHAPTER-2
STANDARD C"ARTRD BANK
2.1 ETHICS OF STANDARD CHARTERED BANK
2.2 STANDARD CHARTERED BANK IN BANGLADESH
2.3 PERFORMANCE AND GROWTH
2.4 ACTIVITIES OF STANDARD CHARTERED BANK
2.5 SWOT ANALYSIS OF STANDARD CHARTERED BANK
CHAPTER-3
C#INT R#ATIONS"I$S $RODUCTS
3.1 TRANSACTION BANKING
3.2 TRADE SERVICE
3.3 CUSTODY
3.4 LANDING

CHAPTER-4
A DSCRI$TIV ANA#YSIS O% TRANSACTION
BANKING
4.1 INTRODUCTION
4.2 CASH MANAGEMENT SERVICES
4.3 ACCOUNTS SERVICES
4.4 E-BANKING
4.5 NATIONAL COLLECTION SERVICES-NCS
4. OPSPAY

4.! PREMIUM SERVICE-BANKING
4." PAYMENTS PLUS
4.# TRADE REPORTS
4.1$ WEB BANK
4.11 CHE%WRITER
4.12 BILLSPAY
4.13 CONCLUSION & RECOMMENDATION
4.15 BIBILIOGRAPHY
________________________________________________________Acknowledgement
At the very outset, I would like to take this opportunity to express my gratitude to my
internship supervisor, Mirza Aminur Rahman for his continuous inspiration, supervision
and patience. Without his guidance and support it would not have been possible to come
this far.
I would also like to thank Nasreen Rehman for her continuous support, inspiration and
giving me the opportunity to deal with different corporate clients.

The managers of various companies have extended their kind cooperation by sharing
information much needed for this report - for this I am ever grateful.
My sincerest thanks go to the others who were involved and helped directly and
indirectly in preparing this report as well as Faculties of Business Studies University of
Dhaka for all the support as well as giving me the opportunity to prepare this report as a
part of my BBA program.
EXECUTIVE SUMMARY
anking service in Bangladesh is characterized as a highly competitive and highly
regulated sector. With a good number of banks already in operation and a few more in the
pipeline, the market is becoming increasingly competitive by the day.
With the global slowdown in the face of rising competition, the commercial banks are
constantly looking for ways to develop their market and product offers to remain ahead of
others. A significant amount of regulation by Bangladesh Bank prevents the scope of
introducing newer products into the market and thereby restricts a banks ability to
outperform others with a diversified product range.
However, recent trends have shown banks shifting away from vanilla products (basic
products) towards higher value added products that are highly structured, to meet the
needs of the clients.
Standard Chartered Bank is the oldest multinational bank operating in Bangladesh. It has,
over the years, created one of the largest networks among all the foreign banks in
Bangladesh. Although a trendsetter in offering a various range of products in the market,
the product offers of Standard Chartered Bank are quickly imitated by competitors.
Substitutes offered by other commercial banks make their way into the market and
thereby eat a portion of the margin.
B
This report takes a look at the current product offer of the Transaction Banking at
Standard Chartered Bank alongside with a look at the untapped opportunities that lie
ahead for the bank to take advantage of Know Your Customer (KYC) project.
An earnest attempt has been made to analyze the Transaction Banking products that drive
competitor banks.
An idea of the current portfolio structure of nationalized, private and other foreign
commercial banks has helped to generate ideas regarding the areas that Standard
Chartered itself can explore into.
Having established itself as the leading foreign commercial bank in Bangladesh is not by
itself sufficient unless a hearty attempt is made to sustain this position. Amidst an age of
regulation and intense competition, diversification of the corporate products in a way that
helps to increase the wallet share of the bank and thereby achieve growth is undoubtedly
very desirable.
Based on above, this report looks in depth towards the opportunity for Transaction
Banking.
PART-1
INTRODUCTION
1.1 Origin of the Paper
This report is an Internship Report prepared as a requirement for the
completion of the BBA Program of the Department of Finance & Banking,
Uniersit! of Dhaka" The primar! goal of internship is to proide an on the
#o$ e%posure to the student and an opportunit! for translation of theoretical
conceptions in real life situation" &tudents are placed in enterprises,
organi'ations, research institutions as (ell as deelopment pro#ects" The
program coers a period of ) months of organi'ational attachment"
After the completion of BBA program, I, *d" *ohin Uddinof BBA +
th
Batch,
(as placed in &tandard ,hartered Bank, Bangladesh for the internship
program under the guidance of m! facult! adisor A"-"*" .uma!un *orshed"
The duration of m! organi'ational attachment (as, $! polic!/ ) months,
starting from *a! 01, 0221 to 3ul! 01, 0221" As a requirement for the
completion of the program I needed to su$mit this report, (hich (ould
include an oerie( of the organi'ation I (as attached (ith and ela$oration
of the pro#ect I (as supposed to conduct during the internship period"
I (as placed in the Transaction Banking of the Bank, under the direct
superision of *ir'a Aminur Rahmah, the head Transaction Banking of
&tandard ,hartered Bank Bangladesh"
1.2 S&'()*
The scope of this report is limited to the oerall descriptions of the $ank, its
serices, its position in the industr!, and its competitie adantage" The
scope is also defined $! the organi'ational set4up, functions, and
performances"
1.3 M)+,'-'.'/0 & S'12&) '3 I43'256+7'4
In the organi'ation part, much information has $een collected from different
pu$lished articles, #ournals, $rochures, (e$ sites and preious internship
report" All the information incorporated in this report has $een collected $oth
from the primar! sources and as (ell as from the secondar! sources"
$r&'ar( So)r*e of Infor'at&on
Discussion (ith officials of &,B
Face to face and telephone conersations (ith customers
Data from the compan!5s documents and &,B5s computeri'ed
information s!stem
Se*on+ar( So)r*es of Data
Preious reports and #ournals releant to the $anking industr!
6ther pu$lished documents of Bangladesh Bank
Releant &,B paper and pu$lished documents
1.4 L757+6+7'48*
Past and present financial information that are confidential could not $e
accuratel! o$tained" Alike all other $anking institutions, &,B is also er!
conseratie and strict in proiding financial information" In such cases, I
hae relied upon certain assumptions, (hich are onl! amateur estimates" As
man! of the anal!sis on the o$tained data are $ased on m! sole
interpretation, there ma! $e some $iases, as lack of kno(ledge and depth of
understanding might hae hindered m! a$ilit! to produce an a$solutel!
authentic and meaningful report"
Time constraint (as another limitation restricting this report to $e a more
detailed and anal!tical one" *! superisors are $us! all the time and it (as
reall! difficult to get hold of some of their time"
1.5 Banking Industry-Overview
The Banking Industry is Bangladesh is one characterized by strict regulations and
monitoring from the central governing body, the Bangladesh Bank. The chief concern is
that currently there are far too many banks for the market to sustain. As a result, the
market will only accommodate only those banks that can transpire as the most
competitive and profitable ones in the future.
Currently, the major financial institutions under the banking system include:
Bangladesh Bank
Commercial Banks
Islamic Banks
Leasing Companies
Finance Companies
Of these, there are four nationalized commercial banks (NCB), 5 specialized banks, 11
foreign banks, 26 domestic private banks and 4 Islamic Banks currently operating in
Bangladesh.
Figure: 1
All local banks must maintain a 4% Cash Reserve Requirement (CRR), which is non-
interest bearing and a 16% Secondary Liquidity Requirement (SLR). With the
liberalization of markets, competition among the banking products and financial services
Scheduled Banks in Bangladesh
PCB
549
FCB
2$9
NCB
"9
I8. 657 &
"9
S()&7 6. 7 :)-
1$9
seems to be growing more intense each day. In addition, the banking products offered in
Bangladesh are fairly homogeneous in nature due to the tight regulations imposed by the
central bank.
Competing through differentiation is increasingly difficult and other banks quickly
duplicate any innovative banking service.
PART-2
STANDARD CHARTERED BANK
2.1 E+,7&8 O3 S+64-62- C,62+)2)- B64;
Standard Chartered reputation is critical to being the world's leading emerging markets
bank. The preservation and enhancement of that reputation depends upon our businesses
operating to the highest standards of ethical conduct.
We face a particular challenge to uphold consistent standards of conduct while at the
same time respecting the culture and varying business customs of all the countries in
which we operate.
The principles that govern the behaviour of our business and employees are reflected in a
Group Code of Conduct. The Group Code of Conduct is a practical working document
which guides employees through the many difficult conduct issues which confront them
on a daily basis. Complying with each element of the Code will not always be easy but
we recognise that we will be judged not just by what is set out in the Code but on how
this is reflected in our day to day activities and the behaviour of all of you.
2.2 S+64-62- C,62+)2)- B64; 74 B64/.6-)8,
The Chartered Bank started operating in Bangladesh in 1948, opening a branch in
Chittagong. The branch was opened mainly to facilitate the post-war reestablishment and
expansion of South and Southeast Asia. The Chartered Bank opened another branch in
Dhaka in 1966, where it is still headquartered. After the merger of the Chartered Bank
with the Standard Bank in 1969, the Standard Chartered Bank took up a program of
expansion. It increasingly invested in people; technology and premises as its business
grew in relation to the country's economy. In 1993, there was an organizational re-
structuring, which led to a substantial expansion of the Bank's business.
BANGLADESH (BD)
Currency Bangladesh Taa (BDT)
Main offices/branches Address! 1
st
"loor # $%& Transa'tional Baning#
Hadi (ansion# )# Dil*sha $+A#
Dhaa
(ain tele! (,--. ) ) /00.1-1
Total n*12er of 2ran'hes! 1-
In Country Partner Banks 3ttara Ban Ltd.# National Ban Ltd.# &"&$ Ban Ltd.#
Sonali Ban % Agrani Ban
Country business coverage Standard $hartered Bangladesh 'o4ers 2*siness
thro*gho*t si5 1a6or 'ities in'l*ding (a6or
Presen'e in $apital Dhaa % Port $it7 $hittagong.
Contact numbers Standard $hartered Sales!Tele! (,--. )) /089/.:#
/08.19) "a5! (,--. ))
/08)9)/ # /0:1/:0
Prod*'t ! Tele! (,--. )) /089/11# :18/10:
"a5! (,--. )) /08)9)/ # /0:1/:0
Sol*tions Deli4er7! Tele! (,--. )) :18/10:
"a5! (,--. )) /08)9)/ # /0:1/:0
0") Performance and -ro(th
The change in strategy, performance and growth, adapted by Standard Chartered Bank is
clearly evident in the following comparison between its performance in 1995 to that in
2002.
Figure 2
Revenue Mix in 1995
1,,5
Lack of revenue momentum
Over layered organization
Weak risk control environment
Basic product ofering- vanilla
product
High cost structure
-..-
Revenue driven target/goal
Revenue diversication !
sustaina"ility
#trong risk management culture
in place
Higher value-added $
customized product
%ost eficiency
Revenue Mix in 2002
Str*'t*re
Prod*'ts
);
D$(
);
Sales
18;
B+S
(anage
1ent
));
Trading
<;
$ash
1<; Lending
18;
Trade
)<;
Sales
8;
B+S
(anage 1ent 0;
Trading
:;
$ash
19;
Lending
90;
Trade
9<;
All the foreign banks combined hold 9% in deposits as compared to 29% by private
commercial banks and 62% by nationalized commercial banks.
The comparative performance (holding market share) of Standard Chartered Bank in
terms of deposit and advance are presented separately in the following figures:
Figure 3- Source: Scheduled Bank Statistics, Bangladesh Bank, Oct-Dec 2002
From the above figure we see that of the 9% held by foreign banks in total deposits, SCB
alone commands 40% of the deposits.
Figure 4- Source: Scheduled Bank Statistics, Bangladesh Bank, Oct- Dec 2002
In terms of advances made, Standard Chartered Bank holds the leading position among
the foreign banks with a market share of approximately 35%.
Ttal Depsits in !"Bs
S$B
<.;
$A&
19;
HSB$
1);
A(E=
).;
$&T&BAN>
1.;
Others
0;
Advances #ade $y !"Bs
S$B
90;
$A&
10;
HSB$
19;
A(E=
11;
$&T&BAN>
).;
OTHE?S
8;
.! "ctivities of Standard Chartered #ank
Corporate Ban/&n0 Gro)p
Standard Chartered Bank offers it local customers wide variety of financial services. All
the accounts of corporate clients, which mainly comprises the top local and multinational
companies operating in Bangladesh, are assigned to Relationship managers who maintain
regular and close contact to cater top their needs.
The objective of this department is to maintain a thorough knowledge of the clients
business and to develop positive relations with them. This is maintained through
interactions to offer timely advice in a n increasingly competitive business environment.
The expertise of the Institutional Banking and Treasury groups is also available whenever
required. The unique Offshore Banking Unit (OBU) in Savar provides a full range of
facilities to overseas investors. The Corporate Banking Group in Bangladesh has
displayed a spirit of community involvement by working with NGOs to underwrite soft
loans. Standard Chartered offers its corporate customers a wide variety of lending needs
that are catered with skilled and responsive attention. They provide project finance and
investment consultancy, syndicated loans, bonds and guarantees and local and
international treasury products.
Trade finance
The trade finance of standard Chartered bank takes care of the commercial activity
related issues, particularly those related to import and export finance services. Some of
the services are:
Trade finance facilities including counseling, confirming export L/C and issuing of
import L/Cs, backed by its international branch and correspondent loan network.
Bond and Guarantees
Project finance opportunities for import substitution and export oriented projects
Treasury
The foreign exchange and money market operation of the Standard Chartered Bank in the
world is extensive. Exotic currencies happen to be one of its special areas of strength. A
24-hr service is provided to customers in Bangladesh through the Banks network of
dealing centers placed in the principal areas of the world. The Banks treasury specializes
in offering solutions to those who wish to manage interest rate and currency exposure s
that result from trade, investment and financing activities of other dynamic economies of
the region.
Institutional Banking Group
The IBG of Standard Chartered Bank offers a wide variety of products and services to
banks and financial institutions. It has global links with leading bank institutions and
agency arrangements through its network of offices in 40 countries. The Bank offers a
full range of clearing, payment collection and import-export handling services. The bank
offers foreign missions, voluntary organizations, consultants, airlines, shipping lines and
their personnel, the following services:
Current accounts in both Taka and other major foreign currencies and Convertible Taka
accounts.
Consumer Banking
Superior retail banking services comprising of a wide range of deposit and loan products
are offered by Standard Chartered Bank to its individual customers. The consumer
banking division constantly faces challenges and meets them by developing new products
and services to fulfill the specific requirements of local TU. The Bank offers a 24-hour
service in Bangladesh through its Money-link ATM Network and Phone-link Phone
banking Services.
Custodial services: The Equitor
Headquartered in Singapore, Standard Chartered equitor fulfils the groups strategic
commitment to the provision of custodial service in Asia. The equitors customers are
primarily foreign global custodians and broker/dealers requiring cross-border information
as well as sub-custodian services. Standard Chartered Bank, Bangladesh is responsible
for the planning in Bangladesh, but the overall management of the custody business is
based in Equitors international business strategy.
SUPPORT SERVICES
Operations
Operations are the part of the support division that helps to run the businesses of the bank
in a smooth and controlled manner. Since it helps mainly in processing the works of the
business units, any mistakes made can be easily detected and on time. Following are the
main functions of the operations department:
Central operations deals with the closing and opening of accounts and other payment and
account related processing of the Personal Banking division. Treasury operations help to
deal with the processing works of the treasury division. Loan Administration Unit (LAU)
deals with the processing of the Corporate Banking division.
Operations also have a department that deals with internal projects that arises from the
need to deal with certain problems or to make certain changes. Following are some
examples of projects being dealt with presently:
Finance, Administration and Risk Management
The support department performs the following activities:
Administration, audit and back office operation
Taking care of taxation and financial control of the Bank
Keeping track of overall credit operation
Information Technology Center
This department is instrumental in the running of all the computerized operations of the
bank. They help in the implementation and generation of computerized reports. Another
duty of the department is to maintain communication with the rest of the world.
Human Resource Department
This department manages recruitment, training and career progression plan. Standard
Chartered Bank highlights the importance of developing its people to create a culture of
customer service, innovation, teamwork and professional excellence.
Legal and compliance
In the UK, Standard Chartered Bank is regulated by the Bank of England, while in
Bangladesh local banking laws regulate it and rules set by the Ministry of Finance and
Bangladesh Bank. The local restriction involves a licence from Bangladesh Bank to
operate banking business in Bangladesh. Standard Chartered Bank complies by the rules
and regulations seriously. It also encourages its staff to conform to an internal culture of
ethical behavior and sensitivities to the culture and religion of the country. There is a
mandatory training on Company Code of Conduct for all staff members.
Some of the key areas that the Legal & Compliance department has to take care of are:
any kind of legal issues, to advise the CEO regarding all matters and the management on
legal and regulatory issues, correspond regulatory compliance issues to MESA Regional
Head of Compliance, and supervise internal control (e.g. internal audit).
External Affairs
This department deals with advertising, public relations, promotions, partial marketing
which involves disseminating new products and services to customers and above all
ensuring service quality.
Credit
The credit department approves the loans of Corporate Banking division. The approval is
mainly based on the risk analysis of the corporate clients done by the Corporate Banking
division.
PART-3
CLIENT RELATIONSHIPS PRODUCTS
Client relationships provides transaction banking, cash management, custody and trade
finance services through their strong market networks in Asia, Africa, the Middle East
and Latin America. They provide a bridge to these markets for clients from the U.S and
Europe. The services provided are integrated, superior cross-border and local services
that enable efficient transaction processing, with reliable financial information.
3.1 Transaction Banking
Cash Management Service
The cash management service provides total solutions to improve cash flows. Standard
Chartered is highly recognized as a leading cash management supplier across the
emerging markets. Cash Management Services cover local and cross border payments,
collections, information management, account services and liquidity management for
both corporate and institutional customers.
With Standard Chartered's Cash Management Services, customers always know where
their money is. Customers can manage their company's total financial position right from
their desktop computer. They will also be able to take advantage of SCBs outstanding
range of payment, collection, liquidity and investment services and receive reports
detailing when and where cash has been moving.
Clearing Services
With increasing business globalization, your banking network may not have sufficient
reach. You may not want to put in the extra infrastructure or resources to expand your
network but still want to ensure your clients transactions are serviced efficiently.
Clearing is one of the important services in which your bank would need support to
facilitate your clients smooth international trade and cross-border transactions.
3.2 T
Standard Chartered possesses 140 years of experience in Trade Finance. SCBs broad
international customer base, professional insight and knowledge of the risks and rewards
of international trade earned the bank a unique position in the industry. The bank offers
world-class support across the worldwide buyer chain to minimize overall cost, maximize
buyer base, and shorten administrative processes.
To enable customers to capture global opportunities, it has a presence in over 40
countries, in addition to the extensive network of overseas banking partners and
correspondents.
Standard Chartered has a wide array of financing tools to ease your cash flow burden and
help you grow your business.
Receivables Services
It gives you the financial security to explore new markets overseas or grow your business
locally, reducing your risk and cost.
Import Services
Instead of paying for your imports immediately, Standard Chartered is able to offer you
import financing, to finance a drawing under an Import Letter of Credit or Import Bill for
Collection, giving you time for the goods to be cleared and resold.
Export Services
Do you need extra cash for manufacturing or purchasing the goods to fulfill your export
order? Do you want to turn the goods into cash as soon as you have them shipped out?
Standard Chartered offers you the opportunity to obtain pre-shipment and post-shipment
financing. You can now trade with the added confidence of our financial help.
)") CUSTODY
Standard Chartered Custody and Clearing Services' combination of local market
expertise, with the security offered by being an integral part of one of the world's leading
international banks has garnered an impressive client base which includes leading North
American, European and Asian institutions.
Standard Chartered keeps its custody and clearing clients regularly informed of
developments relating to securities market infrastructure and custody in Asia through a
market information website. This information is available to clients with a registered
login name and password. Clients are offered a customized and comprehensive range of
products and services, which include:
- Custodial services
- Brokerage, clearing and settlement services
- Securities lending
- Foreign Exchange
- Transfer agent for institutionsal debt and equity offerings
- Delivery, receipt, settlement, registration and physical safe custody of securities
9.< LENDING
To support the local and international business, Standard Chartered offers various
services to help with:
- Loan Structure and Syndication
- Loan facilities.
Loan Structure and Syndication
Our leadership in loan syndication stems from ability to forge strong relationships not
only with borrowers but also with bank investors. Because we understand our syndicate
partners' asset criteria, we help borrowers meet substantial financing needs by enabling
them to reach the banks most interested in lending to their particular industry, geographic
location and structure through syndicated debt offerings. Our syndication capabilities are
complemented by our own capital strength and by industry teams who bring specialized
knowledge to the structure of a transaction.
Loan facilities
To enhance the ability to meet financial obligations and operate effectively, SCB offers
assistance in the form of working capital loans, overdrafts, term loans (including real
estate loans and other secured debt), backstops and revolvers. SCB works closely with
clients to understand the dynamics of the business so that the bank can anticipate and
serve short-term and long-term funding needs in the most efficient manner, drawing from
the full range of global resources and capabilities.
Modern banking operations touch almost every sphere of economic activity. Bank credit
is a catalyst for bringing about economic development. Without adequate finance there
can be no growth or maintenance of a stable output.
There are some standard loan facilities provided by the corporate division of Standard
Chartered. These are:
- Seasonal Loan
- Term Loan
- Permanent Working Capital Loan (Asset-based Lending)
SEASONAL LOAN-
A seasonal loan is generally defined as a short term, self-liquidating loan. Which means
that the funds advanced on a short-term basis are repaid in full when the assets
purchased by the funds are converted to cash. Overdraft, Import Loan, !port Loan, L"#
$%achinery&, L"# $'aw %aterials& , (uarantees etc. are seasonal loans provided by the
local corporate division to different customers.
O@E?D?A"TS
An overdraft facility is a revolving borrowing facility repayable on demand, made
available concerning a current account. Where permitted by law, a customer can
overdraw his current account when any entry is debited to the account for more than the
available credit balance on overdraw. Once the limit is utilized, interest will be charged
on outstanding utilization on a daily basis.
Overdrafts are flexible for borrowing intended to finance day to day cash flow
requirements generated to normal business activity. They are not intended for the
financing of long term borrowing requirements for which more appropriate credit lines
are available.
Overdraft facilities are uncommitted. The bank has the right to cancel the facility and
demand repayment without prior written notice to the customer.
The typical tenor of an overdraft is one day. However, the Bank may agree to make
overdraft facilities available for longer periods (maximum one year), with annual
review/renewal and subject to the Banks discretion to suspend/cancel the facility.
Letter of Credit (LC)
When any company needs to import raw materials from abroad then L/C is required.
Because they are unknown to foreign supplier. The Importer Company must open L/C in
any bank. Then the bank will contact with other bank, which is situated in supplier
country. When the bank give financial guarantees to foreign bank through L/C
application the foreign bank supplier will send raw material within a time period. Our
bank will charge a specific amount for L/C, which is non-funded financing.
L/C is not only for import but also for local transaction. When any company collect raw
material from local supplier on credit then L/C is required.
Revolving Loan (RL)
Revolving Loan is a contract between a borrower and Standard Chartered Bank (SCB)
whereby SCB provides the borrower with a certain amount of currency, for a period more
than one year and up to 5 years.
SCB gives the facility of loan to buy the raw material or other trade related products at a
specific interest rate. When a manufacturing company does not have the working capital
to bear the operating cost, they can collect this money from SCB at a specific interest rate
to be repaid after 90/120/150 days. And it will be treated as Revolving Loan.
Loan Against Trust Receipt (LATR)
Advances allowed for retirement of shipping documents and release of goods imported
through L/C falls under this head. The goods are handed over to the importer under trust
with the arrangement that sale proceeds should be deposited to liquidate the advances
within import and known as post- import finance and falls under the category
Commercial Lending.
Guarantee
According to the contract act 1872, Guarantee can be defined as a contract to perform the
promise or discharge of liability of a third person in case of his default. The person in
respite, of whose default the guarantee is given is called principal debtor and the person
to whom the guarantee is given is called the creditor. It is an irrevocable undertaking to
pay in case of a certain eventually/contingency.
2.5 )WO* Analysis of )tandard #hartered +an,
*he )WO* analysis comprises of the organi-ation.s internal strength and
wea,nesses and e!ternal opportunities and threats. )WO* analysis gives an
organi-ation an insight of what they can do in future and how they can compete
with their e!isting competitors.
Strengths!
For more than 11 !ears in Bangladesh, &,B is kno(n to $ear the
Banking 7%perience that proides it the strength of $eing the market
leader in the foreign $anking sector" Unlike an! other multinational
$ank in Bangladesh, the long4term success of &,B is attri$uted to this
strength of &,B (hereas the long4term success of a $ank heail!
depends on its reputation (hile dealing (ith er! sensitie commodit!
like mone!"
The first $ank in Bangladesh to issue *one! link 8AT*9 card is &,B" B!
gra$$ing the opportunit! that e%ists in the market &,B, as the market
leader, sho(ed the most su$stantial corporate strength among the
foreign $anks"
&,B has a $ulk of qualified, e%perienced and dedicated human
resources"
&,B is the onl! one among the foreign $anks that has $een a$le to
utili'e its e%tensie marketing efforts in order to capture a (ide
customer $ase at a er! short time"
&,B5s dedication is supreme in proiding the $est phone $anking
serices in to(n" It is also keen to proide unmatched and instant 0:
hour $anking serice and has recentl! opened the ,all ,entre at ;otus
<amal To(er in =ikun#o, Dhaka"
In order to e%ude innoatieness and creatieness, &,B tries its $est
to come up (ith customers5 $anking pro$lems and sole them"
Another recent step taken $! them is starting the 7ening Banking
serice, (hich (ill $e open from + pm to > pm in the eening" The
customer, (ho has to keep his transactions stopped for ?> hours until
the ne%t $anking hour arries, (ill $e $enefited, as this (ill reduce the
lag and hassle associated (ith it"
Aeanesses!
Banks, (ho are offering $etter prospects, no( en#o!s customers
s(itching to them as &,B offers lo( deposit rates and has set the
minimum $alances too high" Furthermore, long (aiting cues, moderate
customer serice, non4functioning AT* machines and outrageousl!
high charges lead to &,B $eing noted for these (eaknesses as (ell" As
a result, a large amount of customers hae ceased transactions (ith
the $ank" *an! customers5 accounts hae $ecome oerdra(n due to
fees that hae $een charged $! the $ank5s computer s!stem for as
long as three !ears $ecause the! hae either simpl! not cared to close
their accounts, or thought that the! hae $een closed automaticall!"
The $anking industr! is no( e%periencing the contractual emplo!ment
feer that has started up and &,B has also fallen pre! to it" &elf4
interest of the emplo!ees are actuall! hindering their performance
$ecause &,B is emplo!ing indiiduals from other agencies and giing
them tough targets to reach and there$! not giing them the full
$enefits of a permanent emplo!ee" For e%ample, man! accounts are
opened $! Direct &ales 7%ecuties $! luring customers (ith loans,
(hich the! ultimatel! do not receie, and also opening accounts for
customers (ho can hardl! maintain the account and do not een pa!
the minimum opening amount" 7en though &,B is getting $enefited
in the short run, the implications are long run losses"
During the last ?2 !ears the $anking industr! has $ecome considera$l!
monopolistic and hence &,B is starting to lose its market share to its
rials due to lo( $arriers to entr!, and the local $anks5 increasing
aggressieness
&,B is also facing pro$lem in its s!stem of collection and dis$ursement
of cash" *an! customers do not $ear the proper kno(ledge as to the
process of depositing and (ithdra(ing mone!" The $ank does not take
man! steps to assist them either" The s!stem of (ithdra(al and
deposit ma! $e ne( and different from the s!stem the customers hae
come across at local $ank" *an! of these customers or people the!
send to the $ank on their $ehalf, are not educated and hence the! face
difficult! in the s!stem of deposit or (ithdra(al" For instance, since the
s!stem of deposit is not that iid, customer often drop the counterfoil
of the deposit slip (ith the main cop! into the slip $o%" ,onsequentl!,
in man! such cases it happened that a smart clerk picked up $oth the
papers and took the mone!" Then there (ere no documents left for the
$ank or the customer to proe that he@she deposited the mone!"
Because the (a! &,B makes charges to accounts cannot $e properl!
e%plained, man! customers $eliee and complain a$out the unethical
$anking of &,B"
Ahile dealing (ith its customers4 especiall! in ,onsumer Banking, &,B
emphasi'es more on short4term profits than focusing on the
maintenance of a long4term health! relationship (ith them" This
suffering of &,B from m!opia4 i"e" shortsightedness leads it to pursue
strategies in such a m!opic manner, and so in the long run, it ma!
undergo seere losses" Another (eakness of the $ank that can $e
sighted as (ell is Poor coordination and communication $et(een the
head office and $ranches" As the head office undertakes man!
pro#ects, the actiities are hampered due to some actiities of the
$ranches" 7en after the head office5s carefull! thought out action plan
for a pro#ect, the! still face pro$lems in e%ecuting $ecause the
$ranches are not (ell a(are of such a pro#ect and therefore, their
actions do not compl! (ith (hat is required for the ultimate success of
the pro#ect"
Opport*nities!
&tandard ,hartered Bank (as approed of the permission to start
Islami Banking from The -oernment of Bangladesh" The $ank no(
has a (hole ne( prospect opening up and also the opportunit! to
introduce a (ide arra! of Islami Banking products" It also has the
prospect of e%panding its customer $ase" The countr!5s gro(ing
population is graduall! and increasingl! learning to adapt to and use
the $anking serice" As the $ulk of our population is middle class, and
*uslim, different t!pes of Islami Banking products (ill hae a er!
large and easil! pregna$le market"
&,B has rigorous credit screening polic! and it is oer conseratie" B!
freeing their credit screening polic! a little, the! ma! $e a$le to pursue
man! opportunist $usiness entures" &,B also has a good consumer
$ase that maintains seeral accounts at once" &,B has the opportunit!
to keep these customers $! reducing its current fees and charges and
positioning attractiel! in middle class segment"
*ore Branches around Dhaka speciall! and all oer Bangladesh (ill
ena$le &,B to capture more market share, and hold a stronger
competition against local $anks"
B! offering more attractie interest rates, and lo(ering the minimum
$alances eligi$le for interest, the $ank can attract a lot of the old
customers (ho hae stre(n a(a! to other $anks as (ell as ne(
customers"
Threats!
Increased competition $! other foreign $anks is a threat to &,B" At
present .&B, and ,ITI ,orp are posing significant threats to &,B
regarding retail and $usiness $anking respectiel!" Furthermore, the
ne( comers in priate sector such as Prime Bank, Dutch Bangla Bank,
7BI* Bank, BRA, Bank, &outheast Bank, *ercantile Bank, &ocial
Inestment Bank, Islami Bank and Bank Asia are also coming up (ith
er! competitie products" Aith customers shifting to these $anks,
&,B5s profits, as (ell as market share is falling, and it faces the threat
of $eing (iped out $! competition"
In toda!5s econom!, su$stantial amount of saings is remaining idle"
,urrentl! foreign direct inestment in the countr! is er! lo(" These
economic situations of the countr! indicate political threats"
A DESCRIPTIVE ANALYSIS
OF TRANSACTION
BANKING
4.1 Introduction
As part of &tandard ,harteredCs glo$al transaction solutions to ,orporates
and Institutions, (e proide ,ash *anagement, &ecurities &erices and Trade
&erices through our strong market net(orks in Asia, Africa, the *iddle 7ast
and ;atin America" Ae also proide a $ridge to these markets for clients from
the U"& and 7urope"
The! are committed to proiding !ou (ith
Integrated, superior cross4$order and local serices
7fficient transaction processing
Relia$le financial information
Innoatie products
Aorld4class clearing serices
thus ensuring a full suite of transactional products for !our needs"
It5s ,ash *anagement &erices coer local and cross $order Pa!ments,
,ollections, Information *anagement, Account &erices and ;iquidit!
*anagement for $oth corporate and institutional customers"
1.- Cas2 3ana0e'ent Ser4&*es5
Cas2 3ana0e'ent for Corporat&ons5
Colle*t&ons Ser4&*es
,omprehensie receia$les management solution4
&tandard ,hartered understands that operating and sustaining a profita$le $usiness
these da!s is e%tremel! tough" In an enironment of constant changes and
uncertainties, most $usinesses face challenges of costs and efficienc!" <e! concerns
include/
Receia$les *anagement D ensuring receia$les are collected in an efficient and
timel! manner to optimise utilisation of funds"
Risk *anagement D ensuring effectie management of de$tors to eliminate risk of
returns and losses caused $! defaulters and dela!ed pa!ments"
Inentor! *anagement 4 ensuring efficient and quick turnaround of inentor! to
ma%imise returns"
,ost *anagement D reducing interest costs through optimal utilisation of funds"
6ur &olution
The &tandard ,hartered ,ollections &olution leerages the Bank5s e%tensie regional
kno(ledge and (idespread $ranch net(ork across our ke! markets to speciall! tailor
solutions for !our regional and local collection needs"
This ,ollections &olution, deliered through a standardised international platform,
has the fle%i$ilit! to cater to !our local needs, thus ena$ling !ou to meet !our
o$#ecties of reducing costs and increasing efficienc! and profita$ilit! through $etter
receia$les and risk management" The ke! components of our solution include the
follo(ing/
7%tensie ,learing =et(ork
-uaranteed ,redit
,omprehensie *I&
&!stem Integration
6utsourcing of ,ollection
#&6)&+&t( 3ana0e'ent
&olutions for efficient management of !our funds
A corporate treasurer5s main challenge often reoles round ensuring that the
compan!5s cash resources are utilised to its ma%imum adantage" Eou need a partner
$ank that can help !ou/
*a%imise interest income on surplus $alancesF minimise interest e%pense on deficit
$alances for domestic, regional and glo$al accounts
*inimise FB conersion for cross4currenc! cash concentration
,ustomise liquidit! management solutions for different entities in different countries
,entralise information management of consolidated account $alances
6ur &olution
Aith our glo$al e%perience and on4the4ground market kno(ledge, &tandard
,hartered (ill help !ou define an oerall cash management strateg! (hich
incorporates a liquidit! management solution that $est meets !our needs" ,lick here
for an illustration of our propositions"
Ke( %eat)res
Based on !our needs and the regulator! enironment that !ou are in, !ou can choose
an! of the follo(ing features/
Ph!sical &(eeping
=otional Pooling
Interest Reallocation
Inestment
$a('ents Ser4&*es
-lo$al pa!ments solution for efficient transaction processing
;ooking to outsource !our pa!ments to ena$le/
: 7fficient processing of all !our pa!a$les in the most cost effectie (a!
1 &traight through processing $oth at !our end as (ell as !our $ankCs $ack4end
+ 7fficient pa!a$les reconciliation (ith minimal effort and dela!
G Huick approal of pa!ments from an! location
> *inimum hindrance to automation due to local language difficulties
,entralised management of pa!a$les across departments, su$sidiaries and countries
6ur &olution
&tandard ,harteredCs &traight Through &erices 8&T&9 Pa!ments &olution can $e
tailored to the different pa!ment needs of companies, (hateer industr!, si'e or
countr! !ou ma! $e in" Aith a comprehensie 7nd4to4end Pa!ment Processing ,!cle,
&T& allo(s companies to process a ariet! of pa!ment t!pes, (hether the! $e
domestic or international, local or central in different countries, all in a single s!stem
file" To realise the $enefits of &T&, please contact !our local Relationship *anager or
,ash *anagement representatie"
Cas2 3ana0e'ent for %&nan*&al Inst&t)t&on5
Clear&n0 Ser4&*es
*aking the right connections for financial institutions4
Aith increasing $usiness glo$alisation, !our $anking net(ork ma! not hae sufficient
reach" Eou ma! not (ant to put in the e%tra infrastructure or resources to e%pand
!our net(ork $ut still (ant to ensure !our clients5 transactions are sericed
efficientl!" ,learing is one of the important serices in (hich !our $ank (ould need
support to facilitate !our clients5 smooth international trade and cross4$order
transactions"
It5s &olution
&tandard ,hartered5s international net(ork and multi4currenc! capa$ilities are (ell
placed to proide !ou (ith a seamless serice for all !our clearing requirements
(orld(ide" 6ur net(ork e%tends across Africa, the *iddle 7ast, &outh Asia, ;atin
America, the U&A and the U<" Eou can count on our oer ?12 !ears of on4the4ground
e%perience to tailor a clearing solution that meets !our needs" &tandard ,hartered is
a correspondent $anking partner !ou can trust to make this potentiall! complicated
process much easier for !ou" ,lick here to ie( our international net(ork"
&tandard ,hartered offers IBest in ,lassJ technolog! and processes in our clearing
serices (hereer !ou are, in (hicheer countr! !ou do $usiness and in (hateer
currenc!/
7merging *arkets 4 Asia4Pacific, &outh Asia, the *iddle 7ast and Africa
U&D
7uro 4 includes &terling
Ae tailor clearing solutions to address !our specific needs (hether in one or multiple
countries, or to complement our other serices"
Cont&n)o)s #&n/e+ Settle'ent
,ontinuous ;inked &ettlement 8,;&9 is the ne( priate sector response to increasing
regulator! pressure to reduce foreign e%change settlement risk e%posures" The
initiatie has $een lie since the end of 0220 and is endorsed $! the -?2 central
$anks and lead regulators" The primar! o$#ecties of ,;& are to eliminate the
inherent settlement risk from the current foreign currenc! settlement processes and
to proide a mechanism for containing an! s!stemic risk arising from the failure of a
ma#or market participant"
&tandard ,hartered at the forefront4
&tandard ,hartered Bank has $een deepl! committed to this industr! initiatie since
its inception in ?KKG and holds full shareholder status in the ne( Bank" &tandard
,hartered operates as a full &ettlement *em$er (ithin ,;&B and e%tends
comprehensie Third Part! serices to our customers, ena$ling them to take full
adantage of the settlement risk $enefits associated (ith FB settlement through ,;&"
Aith &tandard ,hartered5s ,ash *anagement serices, !ou5ll al(a!s kno(
!our e%act financial position" Eou hae the fle%i$ilit! to manage !our
compan!5s complete financial position directl! from !our computer
(orkstation" Eou (ill also $e a$le to take adantage of our outstanding range
of Pa!ments, ,ollections, ;iquidit! and Inestment &erices and receie
comprehensie reports detailing !our transactions" Aith &tandard ,hartered,
!ou hae eer!thing it takes to manage !our cash flo( more accuratel!"
&tandard ,hartered, esta$lished since ?K:>, is highl! reputa$le in proiding
fle%i$le and innoatie financial serices solutions" Ae adopt a proactie
approach in tailoring customised packages to meet our customersC eer4
changing needs" Ae appl! state4of4the4art technolog! to automate our dail!
operations and electronic delier! s!stem has $een put in place to ensure
that transactions are handled s(iftl! and efficientl!" 6ur dedicated ,ustomer
&erice ,entres are staffed (ith e%perienced ,ash Products &pecialists to
ensure that all our customers are (ell sered"
&tandard ,hartered full! understands the importance of time, conenience
and efficienc! to the success of !our $usiness" Ae make eas! the comple%
financial (orld for !ou and help !ou ma%imise eer! opportunit!"
Aith oer ?:2 !ears of e%perience in trade finance and an e%tensie
international $ranch net(ork, &tandard ,hartered is committed to help !ou
succeed in eer! competitie enironment" To keep pace (ith !our changing
needs, (e constantl! reie( our comprehensie products and serices,
ensuring that a full range of fle%i$le and innoatie serices is al(a!s
aaila$le for !ou (hereer !ou trade"
&tandard ,hartered is highl! recognised as a leading cash management
supplier across the emerging markets" 6ur ,ash *anagement &erices coer
local and cross $order pa!ments, collections, information management,
account serices and liquidit! management for $oth corporate and
institutional customers"
T2e( *an 2elp (o)5
manage the aaila$ilit! of !our funds efficientl!
monitor and control the moement of funds
settle pa!ments to !our suppliers in a timel! and cost4effectie
manner"
capture eer! inestment opportunit! to increase !our income
<.9 A''o*nts Ser4i'es
In Bangladesh, &tandard ,hartered customers hae access to a ?>4$ranch,
+4cit!, -57AT3 $anking net(ork" ,ustomers can operate their accounts
through an! of our full! automated offices in Dhaka, ,hittagong, &!lhet,
Bogra, <hulna and =ara!angan#" The! can perform ,ash deposits and
(ithdra(als, ,heque Deposits, Fund Transfers, make transactional queries,
gie cheque $ook requisitions, ask for account statement and pa! utilit! $ills"
At &tandard ,hartered, (e proide a (ide range of account serices for our
,orporate ,ustomers" 6ur ,orporate Accounts are managed $! dedicated
A**o)nt Relat&ons2&p 3ana0ers8 (ho maintain regular and close contact
(ith our clients in order to understand their requirements and serice them
$etter"
!e offer t2e follo9&n0 t(pes of a**o)nts to o)r *orporate
*l&ents5
C)rrent A**o)nts:These are checking Taka accounts through (hich
funds can $e freel! deposited and (ithdra(n" ,orporates t!picall! use
them for most of their transactional requirements (hich includes
collections as (ell as pa!ments" ,ollections ma! $e in the form of cash,
cheques, pa!4orders@demand drafts and een in(ard remittances from
a$road" &imilarl!, pa!ments ma! $e in the form of cash, cheques and
other aaila$le mechanisms"
S2ort Ter' Depos&ts ;STD<:These are similar to current accounts in
operation accept that the! do not hae checking facilities and the! earn
interest, (hich is calculated on a dail! $alance $asis and credited at
periodic interals" The &TD account is a useful mechanism to earn interest
on idle funds for companies that can not commit fund for longer period of
times in Fi%ed Deposits"
%&=e+ Depos&t A**o)nts: Fi%ed Deposits are for ar!ing tenorsF current
offerings range from ? month to 1 !ears and the interest rate also ar!
correspondingl!" Fi%ed deposit accounts can not $e used for transactional
purposes and interest can onl! $e earned upon the maturit! of the
deposit"
Sa4&n0s A**o)nts: These accounts are mainl! aimed at the indiidual
and are usuall! offered for ,orporate emplo!ees" .o(eer, ,orporate
Proident Fund accounts, -ratuit! Funds, etc" can also use such accounts,
proiding statutor! appropriate approals are held"
Con4ert&ble A**o)nts: The ,onerti$le Account is a checking current
account (ith $alances denominated in Taka" Pa!ments or (ithdra(als
from this account can $e made in $oth Taka and Foreign ,urrenciesF
ho(eer funds deposited must hae a foreign currenc! source" &trict
7%change ,ontrol Regulations goern the opening and operation of
,onerti$le Accounts and it is adisa$le to discuss these in detail (ith the
Bank $efore opening such accounts"
%ore&0n C)rren*( A**o)nts: In addition to the arious local currenc!
accounts, there are t(o t!pes of Foreign ,urrenc! accounts aaila$le/ a
U&D@-BP checking ,urrent Account or a U&D@-BP Fi%ed Deposit (hich is
also called a =on4resident Foreign ,urrenc! Deposit 8 =F,D9 and (hich
earn attractie interest rates" &trict 7%change ,ontrol Regulations goern
the opening and operation of Foreign ,urrenc! Accounts and it is
adisa$le to discuss these in detail (ith the Bank $efore opening such
accounts"
1.1 e7Ban/&n0

e4Banking proides !ou (ith a full range of reporting capa$ilities, and a
comprehensie range of transaction initiation options" Ahether it is cash or
trade related, the user4friendl! e4Banking customer (orkstation (ill proide
!ou (ith a secure, relia$le and effectie link $et(een !ou and !our accounts
an!(here across the &tandard ,hartered net(ork (ith more than 122 offices
in more than 12 countries"
6nce !ou hae defined !our required reporting data into the s!stem, !ou can
displa! it on the e4Banking (orkstation or print it" The em$edded report
generator ena$les !ou to customise report formats to suit !our particular
requirements" e4Banking also incorporates an Ieents schedulerJ (hich
automaticall! e%ecutes tasks for !ou" *oreoer, e4Banking offers Data
7%port@Import capa$ilit! to@from other (idel! used Aindo(s4$ased soft(are
8e"g" te%t, *& 7%cel, *& Access etc"9"
T2e follo9&n0 are t2e /e( feat)res of e7Ban/&n05
Cas2 Report&n0>
Aith e4Banking, !ou not onl! receie access to !our accounts throughout the
Bank5s net(ork, !ou also receie information a$out moements through !our
accounts (ith other $anks ia the &AIFT multi4$ank reporting capa$ilit!" The
user friendl! design of e4Banking ena$les !ou to ie( !our account details
quickl! and easil! D account $alance details, statements, and histor!
information are all aaila$le at the touch of a $utton"
Cas2 In&t&at&on>
Eou receie a full range of domestic and cross4$order transaction initiation
capa$ilities through e4Banking, including electronic funds transfer as (ell as
paper $ased pa!ment options such as drafts" e4Banking simplifies the cash
input initiation process $! proiding !ou (ith features that improe accurac!
and efficienc!" These include templates for commonl! used transactionsF
Ilook4upJ ta$les for frequentl! used information such as $ank, $eneficiar!
and account detailsF and a Icreate from preiousJ capa$ilit! that allo(s !ou
to select one of !our earlier instructions as a template for !our current input"
Tra+e In&t&at&on>
e4Banking proides !ou (ith a full range of trade transaction capa$ilities
including, ;, applications, issue, amendments, funds (ithdra(als, import
collections and reim$ursement authori'ations"
Se*)r&t( ? Control>
Ahen making financial transactions electronicall!, strict securit! is of the
utmost importance, !ou need to hae the right safeguards in place to preent
people (ithout access rights from tampering (ith the s!stem" &tandard
,hartered5s e4Banking includes a series of features such as User
A)t2or&@at&on8 $ass9or+ $rote*t&on8 A)t2ent&*at&on ? n*r(pt&on an+
Tra*/&n0 transa*t&ons t2ro)02 an A)+&t Tra&l to ensure data integrit!
and meet !our securit! needs D all in line (ith industr!4recogni'ed
standards"
4.5 N6+7'46. C'..)&+7'4 S)2<7&)8-NCS
In toda!5s $usiness climate, it is more important than eer to turn !our
receia$les into funds !ou can actuall! use" &tandard ,hartered5s Nat&onal
Colle*t&on Ser4&*es ;NCS< is designed to help corporates (ith receia$le
collection requirements across Bangladesh" It proides faster funds
aaila$ilit! in a cost4effectie manner and improe the compan!5s liquidit!"
=,& offers a centralised s!stem (here !ou can maintain a single
concentration account (ith &tandard ,hartered for all !our countr!(ide
collections"
Co'pre2ens&4e *o4era0e>
Eou ma! deposit cheques at our ,orrespondent Bank $ranches 8currentl! +)
locations9 in addition to the eighteen 8?>9 &tandard ,hartered $ranches in
Dhaka, ,hittagong, &!lhet, =ara!angan#, <hulna, and Bogra"
C2e6)e $&*/ )p>
Alternatiel!, (e can arrange for a courier to collect the cheques from !our
offices at pre4agreed times" Ae hae dedicated support at each location (ho
(ill maintain close contact (ith !our offices, dealers and distri$utors" The!
(ill collect cheques from these places and deposit them at our correspondent
$ank $ranches"
I'pro4e (o)r *as2 flo9>
Eour single concentration account in &tandard ,hartered is credited on a pre4
agreed alue date for locations (here local clearing e%ists" &o there is no
more guessing (hen funds (ill $ecome aaila$le for !our use" *oreoer, for
non4clearing locations, (e ensure funds are realised in the shortest possi$le
time" &ince =,& quickens the speed of collections compared to the normal
clearing@collection process, !ou can take the adantage of inestment
opportunities D or reduce !our $orro(ing costs D instead of (aiting"
S&'pl&f( re*on*&l&at&on an+ re+)*e &+le balan*es>
=ational ,ollection &erices is designed in such a (a! that all funds for
collection flo( into !our concentration account" There is no need for multiple
local accounts (ith idle $alances, and there is no need to handle multiple,
time4consuming reconciliation tasks"
Re*e&4e better &nfor'at&on>
Eour a$ilit! to manage !our $usiness effectiel! is dependent on the qualit!
and timeliness of the information !ou receie" Eou (ill promptl! receie
deposit ackno(ledgements and !our &tandard ,hartered ,oncentration
Account (ill $e credited on the pre4agreed date 8$ased on the cheque t!pe
!ou hae deposited at the designated $ranches9" Eou can also receie a
comprehensie statement, detailing the deposits made at each of the
designated $ranches and the funds due from them"
=ational ,ollection &erices proides a ariet! of informatie and timel!
reports to make sure !ou kno( (hat funds are $eing collected, (hen, and
ho( D to help !ou make the most effectie decisions regarding !our
compan!5s finances" 6ur informatie reports (ill
.elp !ou $etter plan !our cash flo(s
&upport !our customer credit control process
.elp !ou to reconcile !our receia$les quickl! and efficientl!
In short, =ational ,ollection &erices is a simple and relia$le solution to !our
countr!(ide receia$le collection requirements"
ADLA=TA-7 6F =,&
Sl
No
T2r) NCS !&t2o)t NCS
? The! are charging "?2M (ith a
minimum processing fee of BDT ?22 for
processing an! deposit 8including cash,
cheques, DDs,P6s9 through =,&
"01M (ith minimum BDT )22 and
ma%imum BDT ?,122 charges for
processing an! collection cheques"
0 =o return charges in =,& Return charges of BDT ?22 for an!
dishonored collection cheque"
) A fle%i$ilit! of haing the net(ork
,oerage at 12 ,orr$ank ;ocations and
+ &,B locations" ,ustomer can deposit
,ash, an! kind of instrument in these
$ranches" -uaranteed credit if the
cheque is dra(n on clearing area and
faster collection 8ma%imum ? (eek9 if
the cheque is dra(n on non4clearing
locations"
There is no such arrangement
e%ists, an! cheques dra(n on
outside &,B $ranches sent for
collection and usuall! it takes 0@)
(eeks to realise the cheque"
: A pre4agreed credit4structure is gien in
=,&" For cheques deposited in an!
clearing location (e are crediting the
=N*; (ith a pre4agreed turnaround
time" For &,B it is ne%t da! and , in
,orr $ank clearing locations it is Da! )"
If the cheques sent for collection
normall! there is a$solutel! no
guaranteed turnaround time" It
ma! een take months to realise
the cheque"
1 A comprehensie *I& proided for all
the transactions through =,&" Ae do
hae separate reports for ,heques &
,ash sho(ing respectie deposit
locations, consolidated total for a
particular location and also depositor5s
name"
=o such *I& aaila$le in normal
procedure"
+ Ae do hae return reports sho(ing all
the details including Return Reason,
Return Date, indiidual ,heque
Amount, ,heque num$er, ,heque
Date, Dra(ee $ank5s name so that the
cheque can $e easil! marked and
=o such *I& is aaila$le"
reconciled"
G Ae do hae a separate report called list
of Relaised transaction sho(ing details
of honored@dishonored collection
cheques"
=o such *I& is aaila$le"
> Ae do hae comprehensie charges
report sho(ing complete $reak4up
including indiidual deposit5s $reak4up
of charges leied in a particular month"
=o such *I& is aaila$le"
K ,ash flo( forecast & Reconciliation
report for easier reconciliation purpose"
=o such *I& is aaila$le"
?2 Dedicated customer serice support" =o such dedicated serice"
??" All in all a single point collection
solution for =e( Nealand *ilk products
8BD9 ;td"
There is not customi'ed dedicated
serice for an! specific customer"
4. O(8(60
&tandard ,hartered is proud to present O$S$AY, a serice for our ,orporate
,ustomers (hich offers automated $ulk transfer 8e"g" salar!9 processing
from their corporate accounts" This (ill result in reduced errors and an
oerall improement in !our salar! pa!ment processing"
O$S$AY processes !our &taff &alar! Pa!ment $! do(nloading !our pa!ment
instructions in the form of a Flopp! Diskette" The serice ensures that
appropriate narration is proided for all indiidual account credits 8i"e" salar!
for the month of %%%%%9 in account statements"
This serice has the follo(ing $enefits,
T&'e7eff&*&ent5 Ae can act on !our instructions on the same (orking da!
if the Diskette containing the information reaches our concerned
department $efore ??"22 a"m"
rror7%ree5 As the instructions (ill $e do(nloaded directl! from the
Flopp! Diskette, O$S$AY eliminates manual entries and minimi'es the
possi$ilities of an! errors"
Val)e7+ate5 Funds transferred through this serice are immediatel!
aaila$le at all our $ranches and AT*s
All !ou need to do is send us the salar! transfer instruction in an 7%cel File
that should contain the follo(ing information/
Full Account =o" Account =ame & &alar! Amount
The diskette should $e accompanied $! a (ritten authori'ation, (hich (ill $e
used to alidate the soft4cop! details"
The com$ined net(ork of &tandard ,hartered Bank 8?> $ranches, 01 AT*s9
and a hundred4!ear old heritage in Bangladesh places us in a unique position
to support !our $anking needs" 6ur $ranch net(ork no( coers Dhaka,
=ara!angan#, ,hittagong, &!lhet, Bogra, and <hulna, (hich are linked
through on4line4Banking serices ena$ling !ou to operate !our account of
from an! one of our $ranches or 0:4hour AT*s"
6ur offer includes a ast range of financial products and serices
complemented $! a designated Relationship *anager to manage !our
requirements (ith personali'ed care"
4.! P2)5715 S)2<7&)-B64;74/
$re'&)' Ser4&*e7Ban/&n0 offers !ou a choice of serice improements
(hich can $e tailored to !our indiidual $usiness needs" These serice
enhancements collectiel! allo( !ou to manage !our $usiness finances and
cash resources more effectiel! and conenientl!" It comprises of the
follo(ing si% modulesO
Co)r&er
The Bank (ill proide !ou (ith the conenience and securit! of a dail! courier
pick4up and delier! serice at !our premises for !our routine4Banking
transactions" The serice is aaila$le for non4cash transactions like cheque
deposits, trade finance documents, pa!ment instructions, statements and
cheque $ook requests"
A)to7%a= Reports
A comprehensie Dail! Account &tatement coering detailed transaction
information (ill $e made aaila$le to customers ia fa% eer! morning" It (ill
contain complete transaction details up to the close of $usiness of the
preious da! to facilitate $etter financial management of !our precious cash
resources"
"otl&ne ;A S&n0le $o&nt of Conta*t<
This facilit! proides !ou (ith a single (indo( into the $ank for all !our
transactional $anking enquir!" Premium &erice4Banking customers (ill hae
access $! fa% or $! phone to an e%clusie ,orporate &erice Unit 8,&U9 in
the Bank5s 6ffice at Dhaka, Bangladesh" Dedicated personnel are aaila$le to
handle a full range of transactional $anking enquir! relating to $alances,
account statements, cheque pa!ment status and other transactions"
In9ar+ Re'&ttan*e Infor'at&on Ser4&*e
The $ank (ill pro4actiel! proide !ou (ith a fa% report detailing all In(ard
&AIFT pa!ment messages receied $! the Bank for !our accounts (ith us"
For the first time !ou (ill get to kno( a$out the receipt of such remittances
een $efore the! are processed in the $ank" These messages (ill proide !ou
(ith complete remittance details including amount and remitter information"
=press $a('ents
In case !ou miss our dail! courier or urgentl! need to send a tele% or draft,
(e offer !ou an alternatieF initiate !our request for a pa!ment ia !our fa%
machine" Ahat is more, for Premium &erice4Banking customers, the Bank
commits to initiate remittance transactions for tele%@&AIFT transfer
instructions receied $! ?/22 p"m" For pa! orders, the cut off time for
Premium &erice4Banking customers has $een e%tended to )/)2 p"m"

%ore&0n =*2an0e ? 3one( 3ar/et Infor'at&on
The Bank (ill arrange to proide information on Foreign 7%change and *one!
*arket rates on a dail! $asis $! fa%" 6ur Dail! Treasur! =e(s proides
information on Foreign 7%change rates, ke! stock, $ond, and interest rate
indices, highlights from international financial markets and information on
technical chart points"
In addition, the Bank (ill proide (ith a clear and concise market
commentar!, in the form of a Aeekl! Treasur! =e(sletter, (hich coers the
ma#or financial eents of the (eek and proides information on moements
in ma#or currencies, stock indices, commodities and U&D *one! *arket
rates"
4." P605)4+8 P.18
!2at &s $a('ents $l)sA
Pa!ments Plus is a user friendl! soft(are (hich is offered to corporate
customers of &tandard ,hartered Bank to facilitate the pa!ments that the!
(ish to make through its electronic platform, e4Banking"
Ahat Pa!ments Plus essentiall! does is create a $ridge $et(een the
customer5s o(n accounts pa!a$le s!stem and &tandard ,hartered5s e4
Banking" T!picall! the customer has to maintain a data$ase from (hich
pa!ments are periodicall! made"
For customers (ho are alread! used to the conenience of sending
instructions electronicall! through &tandard ,hartered5s e4Banking, t!ping in
the required information into the e4Banking template creates an additional
leel of (ork"
This is (here Pa!ments Plus comes in" $! utili'ing this soft(are the process
of t!ping in all the requited information $ecomes #ust a single click of the
mouse $utton" If the accounts pa!a$le s!stem is maintained in a simple pre4
determined format 8t!picall! in *& 7%cel file9, then Pa!ments Plus uploads
the information from the file to e4Banking"
Thus sending pa!ment instructions to &tandard ,hartered Bank $ecomes a
one4step process
!2at $a('ents $l)s 'eans for (o)A
6utsourcing of domestic account pa!a$les to the $ank
Integration of e4Banking (ith account pa!a$le s!stems
A$ilit! to process $ulk transactions
&upports internal transfers, pa! orders and demand drafts dra(n on
other $anks
Tan0&ble benef&ts (o) 0et b( )s&n0 $a('ents $l)s
Increased efficienc!
-reater control
7nhanced securit!
Improed endor relations
;o(er all4in4all cos
4.# T26-) R)('2+8
At &tandard ,hartered, (e understand ho( important it is to sta! informed
of !our trade commitment at all times" 6ur innoatie information serice
no( ena$les !ou to get an up4to date and eas! Dto read summar! of !our
outstandings for !our Import, 7%port and &hipping -uarantee positions"
Eou get the follo(ing $enefits from our Trade Reports
*onitor !our outstandings at a glance
Take control of !our $ills status and cash flo(
6ptimall! utili'e !our trade credit facilities
Proactiel! act on pro$lems relating to unaccepted or unpaid $ills
,ontrol oer the e%pir! dates for import and e%port ;etters of ,redit
Its range of Trade Reports
Trade Reports puts !ou in control of !our trade outstandings D and gies !ou
all the information !ou need to effectiel! manage !our compan!5s trade
$usiness" Eou can choose the leel of reporting that $est meets !our
compan! needs, and !ou can change this selection as !our $usiness gro(s"
Ae offer si% t!pes of report categories
1. Tra+e O)tstan+&n0s Report summari'ing all !our trade finance
outstandings in the report"
-. =port Tra+e 3at)r&t( Report includes the follo(ing information/
=port #etters of Cre+&t Report details une%pired e%port letters of
credit transactions
=port Dra9&n0sBB&lls Report details !our outstanding e%port
dra(ings@$ills transactions
C. I'port Tra+e 3at)r&t( Report includes the follo(ing information/
I'port #etters of Cre+&ts Report details !our outstanding import
letters of credit transactions
Tr)st Re*e&pts 3at)r&t( Report details !our outstanding trust
receipt transactions
A**eptan*es Report details !our outstanding acceptances and their
maturities
1. G)arantee Report details !our outstanding from cop! document
endorsement for air, sea and road, Bid Bond and Performance Bond
issuance"
All reports can $e deliered $! fa%, mail, or held for collection" The! can $e
deliered on a dail!, (eekl!, fortnightl!, monthl! $asis or on demand"
1.1. !eb Ban/
Intro+)*t&on>
Ae$ Bank can significantl! enhance the $ank5s serice to !ou and (ill pla! a
piotal role in the future of !our $usiness" 6ur ,orporate and Institutional
(e$4site offers !ou comprehensie information on !our accounts and a
num$er of alue4added features"
The onl! thing that !ou need is an access to the internet and !ou (ill $e a$le
to use Ae$ Bank from an!(here in the (orld" As a Ae$ Bank customer !ou
(ill $e gien a specific user ID and a confidential pass(ord" Eou can then
ie( the follo(ing information online/
Cash Account Statement
Cash Account Balances
Cash Balance History
Eou can also sae these information as .T*;, PDF or te%t format and take
printout"
In addition !ou (ill $e a$le to find a comprehensie range of information a$out &tandard ,hartered Bank,
its serices and (orld4(ide net(ork" A ma#or adantage of Ae$ Bank is the user can access this (e$4site
from an! location through an internet connection onl!"
Balan*es an+
3essa0e
Center on
!eb ban/
Se*)r&t(>
In order to meet the rigorous industr! standard of transactional securit!, (e hae
adopted the operational and technolog! frame(ork of Identrus -lo$al Pu$lic <e!
Infrastructure" Ae hae achieed the status of Identrus -lo$al ,ertified Authorit! in
022?"
4.11 C,)=>27+)2
!2at &s C2e6!r&terA
,heqAriter is an user4friendl! soft(are deeloped and o(ned $! &tandard
,hartered -roup, (hich is offered to corporate customers to facilitate the
preparation, printing, and recording of &tandard ,hartered cheques"
,heqAriter also proides different t!pes of *I& for a $etter control on !our
cheque pa!ments"
The Bank (ill suppl! the cheque printing stationar! as and (hen requested
$! the customer" This is a pre4printed A:4si'e cheque form (ith t(o sections
separated $! a perforation" The top part is the counter foil of the cheque that
can $e used as a paper4record of the transaction and can also eidence the
pa!ee5s receipt" The $ottom part is the cheque that contains all regular input
fields of a conentional cheque leaf" An optional IAccount Pa!ee 6nl!J
marking for crossed cheques can $e printed on the cheque leaf $!
,heqAriter"
!2at are &ts feat)resA
,ustomisation of cheque leaes (ith customer logosF
Data storage for a complete histor! of all cheque pa!mentsF
,ontrols against t!ping errorsF
Ro$ust oerall securit!F and
Professional counterfoils, (hich can $e used $oth for recording
purposes as (ell as receipts"
!2at are t2e 2ar+9are re6)&re'ents for C2e6!r&terA
,heqAriter can $e operated from either a single personal computer or from a
net(ork of multiple computers" .ard(are requirements for installation of
,heqAriter are/
?22M IB* compati$le personal computer operating under *& Aindo(s
K1 and a$oeF
:>+ processor 8minimum9F
?+ *B RA*F
?":: *B )"1J Disk Drie
.ard Disk drie (ith 01*B free space"
"o9 *an (o) benef&t fro' C2e6!r&terA
,heqAriter
allo(s !ou to customise !our cheques (ith compan! details, logo and
counterfoilF
saes time $! automating the cheque preparationF
maintains a histor! of all cheque pa!ments and can proide a (ide
range of information e%traction capa$ilities through arious reportsF
has the a$ilit! to interface (ith other applicationsF
proides full audit trail of all transactions"
Se*)r&t(>
Access to #heqWriter can be parameteri-ed through user I/s and passwords. 0sers can also be
assigned with different access levels to avoid unauthori-ed use of #heqWriter.
4.12 B7..8(60
Ae are pleased to introduce Billspa!, the most conenient (a! to settle !our
monthl! utilit! $ills" Billspa! (ill not onl! proide conenience $ut also allo(
fle%i$ilit! to pa! !our $ills as and (hen !ou choose" 6nce !ou sign up for our
serices !ou (ill no longer hae to go out of !our (a! to pa! $ills for
electricit!, mo$ile phones, internet, etc", eer! month" Billspa! proides one4
stop pa!ment solution (here (e (ill de$it !our account to pa! !our $ills"
,hoose A)to B&llspa( to outsource !our utilit! pa!ments to the $ank" The
$ank (ill collect !our $ills directl! from the $illing compan! and de$it !our
account to pa! them according to their $illing c!cle" All !ou hae to do is sign
up once and completel! forget a$out !our $illsP (e (ill take care of them"
And if !ou5re not comforta$le (ith pa!ing in a date deter&mined $! the $illing
compan!, (e hae B&llspa( Re0)lar for !ou" Eou can send !our $ills to our
$ank at an! da! of the month $! a messenger and (e (ill pa! off !our $ills
and stamp IPAIDJ on !our receipts"
6r simpl! choose B&llspa( =press to en#o! the $enefits of $oth the serices
mentioned a$oe" Eou decide (hen to pa! and (e5ll send in our people to
collect !our $ills from !our premise8s9" Ae (ill pa! off these $ills, stamp
IPAIDJ and send them $ack to !our office"
To sign up for Auto Billspa! !ou hae to gie us detailed $illing information"
Information like meter num$er 8for pa!ment of electricit! $ills9, $illing
compan!5s name, $illing date 8for pa!ment of mo$ile phone $ills9, customer5s
name and signature should $e gien at the time of sign up" Eou should also
proide a cop! of the releant $ill statement8s9"
To en#o! Billspa! Regular or Billspa! 7%press all !ou need to do is accept our
$anking serice proposal customi'ed to(ards !our requirement
Interns2&p Report on
TRANSACTION BANKING
IN STANDARD CHARTERED BANK
BANGLADESH
A Descriptive Analysis
S)b'&tte+ to
* Aminul .uque
.ead of .uman Resources
&tandard ,hartered Bank
0 Dilkusha ,@A, Dhaka4?222
S)b'&tte+ b(
*d" *ohin Uddin
Department of Finance & Banking
ID4+4?)0, &ec"4B
Facult! of Business &tudies
Uniersit! of Dhaka