To Mrs.Amala Annie Mohammed Bussiness Studies Teacher


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showered on me in completing the project successfully. Lastly. I would also like to express my special thanks of gratitude to our principal Dr. I offer my regards and blessings to all of those who supported me in any respect during the completion of the project. 3 . guidance and support from the initial to the final level enabled me to develop an understanding of the subject. I am heartily thankful to my Business Studies teacher Mrs.ACKNOWLEDGEMENT First and foremost I thank the god for his blessings. I would also like to thank my parents and friends who helped me a lot in finishing this project within the limited time. Moh'd Tayyab who gave me the golden opportunity to do this wonderful project on the topic "POPULARITY OF CREDIT CARDS ISSUED BY DIFFERENT BANKS". Amala Annie Mohammed whose encouragement. which also helped me in doing a lot of Research and i came to know about so many new things. Secondly.



credit cards allow the consumers a continuing balance of debt. Most credit cards are issued by banks or credit unions. A credit card is different from a charge card: a charge card requires the balance to be paid in full each month.370 × 2. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.125 in) (33/8 × 21/8 in) in size. In contrast. and are the shape and size specified by the ISO/IEC 7810 standard as ID-1. 6 . It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. subject to interest being charged.60 × 53. This is defined as 85.INTRODUCTION A credit card is a small plastic card issued to users as a system of payment.98 mm (3.

2. To find the popularity of credit cards in Bahrain. 7 . To know about the functions of different Banks. To know the history of credit cards. 3. 4. To know about different types of credit cards.Objectives: 1.

Collection of Primary and Secondary data’s. 2. 8 . charts and pie diagrams. a) The data will be coded and tabulated. a) Primary data will be collected from different people with the help of a structured questionnaire. Methods for analysis of data. b) Secondary data will be collected from the internet. b) The result will be represented in bar diagrams.Methodology: 1.

They were called ―tallymen‖ because they kept a record or tally of what people had bought on a wooden stick. It could only be used in the shops which issued it. Paper money followed only in the 17th century. From the 18th century until the early part of the 20th. In 1951. The first credit card: In 1950. The bill of exchange – the forerunner of banknotes – was established in the 14th century. tallymen sold clothes in return for small weekly payments.Background Information: History of credit cards: Credit was first used in Assyria. One side of the stick was marked with notches to represent the amount of debt and the other side was a record of payments. The first advertisement for credit was placed in 1730 by Christopher Thornton. Diners Club and American Express launched their charge cards in the USA. who offered furniture that could be paid off weekly. In the 1920s. San Francisco Bay Area Rapid Transit installed a paper 9 . Debts were settled by one-third cash and two-thirds bill of exchange. The first use of magnetic stripes on cards was in the early 1960′s. But it was only until the establishment of standards for the magnetic strip in 1970 that the credit card became part of the information age. Babylon and Egypt 3000 years ago. Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. when the London Transit Authority installed a magnetic stripe system. a shopper’s plate – a ―buy now. the first ―plastic money‖. pay later‖ system – was introduced in the USA.

Examples of premium credit cards are Gold and Platinum cards that offer cash back. Charge cards typically do not have a finance charge or minimum payment since the balance is to be paid in full. Late payments are subject to a fee.based ticket the same size as the credit cards in the late 1960′s. Charge Cards: Charge cards do not have a credit limit. Before you apply for a credit card. it makes sense that there are different types of credit cards. Credit is used up when you make a purchase and made available again once you've made a payment. Store credit cards and gas credit cards 10 . Student credit cards. travel upgrades. or card cancellation depending on your card agreement. Premium Credit Cards: These cards offer incentives and benefits beyond that of a regular credit card. Premium cards can have higher fees and usually have minimum income and credit score requirements. charge restrictions. 2. Standard Credit Cards: The most common type of credit card allows you to have a revolving balance up to a certain credit limit. Types of credit cards: Since each consumer's financial needs are different. and other rewards to cardholders. 4. reward points. and travel cards are just a few types available. A finance charge is applied to outstanding balances at the end of each month. 1. The balance on a charge card must be paid in full at the end of each month. Credit cards have a minimum payment that must be paid by a certain due date to avoid late-payment penalties. Limited Purpose Cards: Limited purpose credit cards can only be used at specific locations. become familiar with the various kinds of credit cards to make sure you're choosing the best credit card for you. zero percent interest cards. Both standard credit cards and premium credit cards have specific types of credit cards. 3. Limited purpose cards are used like credit cards with a minimum payment and finance charge.

7. At the end of 2008. The credit limit on a secured credit card is equal to the amount of the deposit made. The authorized capital is BD 100 million and paid up capital is BD 66. Prepaid cards do not have finance charges or minimum payments since the balance is withdrawn from the deposit. They provide business owners with an easy method of keeping business and personal transactions separate. The Bank had recently launched its new identity with the core objective of radiating its new and fresh mandate of exceeding expectations. Purchases are withdrawn from the card's balance. The credit limit does not renew until more money is loaded onto the card. with assets in excess of BD 874 million. The Bank has been maintaining its leading position in the Islamic banking sector through adopting innovative Islamic investment and 11 . 5. ABOUT BANKS: 1.235 million. the shareholders’ funds reached nearly BD 166 million Bahraini Dinars. BisB has recorded a steady growth. BISB Bahrain Islamic Bank (BisB) was established in 1979 as the first Islamic commercial bank in the Kingdom of Bahrain. Business Credit Cards: Business credit cards are designed specifically for business use. both from an aspirational and a functional perspective. Prepaid cards are similar to debit cards. Secured Credit Cards: Secured credit cards are an option for those without a credit history or those with blemished credit. Since its inception.are examples of limited purpose credit cards. Prepaid Credit Cards: Prepaid credit cards require the cardholder to load money onto the card before the card can be used. Secured credit cards have revolving balances depending on the purchases and payments made. but are not tied to a checking account. There are standard business credit and charge cards available. Secured cards require a security deposit to be placed on the card. 6.

These branches offer quality banking services.financing products. financing and investment opportunities compliant with Sharia’a requirement for individual and corporate customers. with 13 local branches. an advisory branch in Dubai. life and non-life insurance. NSE.016 branches (as on 31 March 2010) and about 5.219 ATMs in India and presence in 18 countries. The Bank operates under supervision and the regulatory framework of the Central Bank of Bahrain. the United Arab Emirates and USA. ICICI ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major banking and financial services organization in India. including an offshore unit in Mumbai. The Bank. and representative offices in Bangladesh. (These data are dynamic. the Bank is targeting the NRI (Non-Resident Indian) 12 . Thailand. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialization subsidiaries and affiliates in the areas of investment banking. This includes wholly owned subsidiaries in Canada. ICICI Bank nowhas wholly-owned subsidiaries. branches in Belgium. supported by superior retail and corporate banking services. 2. Malaysia.) ICICI Bank is also the largest issuer of credit cards in India. as well as some 24 million customers (at the end of July 2007). The Bank is listed on the Bahrain Stock Exchange. The major shareholders are leading local and regional financial institutions. South Africa. The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. Overseas.ICICI Bank's shares are listed on the stock exchanges at BSE. Russia and the UK(the subsidiary through which the HiSAVE savings brand is operated). has established the largest network among Islamic banks in the Kingdom. offshore banking units in Bahrain and Singapore. The bank also has a network of 2. Kolkata and Vadodara . China. It is the second largest bank in India and the largest private sector bank in India by market capitalization. its ADRs trade on the New York Stock Exchange (NYSE). Hong Kong and Sri Lanka. Indonesia. venture capital and asset management. branches and representatives offices in 19 countries.

along with State Bank of India. a wholly owned subsidiary in the UK and associates in Kuwait. AUB. its associate banks and other Gulf financial institutions together hold an 85.1% stake in Ahli United Bank SAE. ICICI Bank is one of the Big Four Banks of India. AUB has a nominal stake of 75% in KMEFIC.21 crore on a 1. NBK Bahrain offers full commercial banking services across a broad spectrum of areas including trade. In 2003. treasury. 3. It has fully dedicated relationship managers trained to tailor solutions that meet customers’ needs. The Group's businesses consist of the operations in Bahrain. AUB has a 36.population in particular.014. treasury and retail. the bank obtained a commercial banking license to widen its offering and customer base. asset management and corporate finance company based in Kuwait with operations around the Arabian Gulf. Egypt.15% rise in net profit to Rs. Today. In Oman. Qatar. AUB has a 35% stake in Ahli Bank SAOG while in Iraq AUB has a 54. The bank's CASA ratio increased to 30% in 2008 from 25% in 2007. 9.712.8% stake in the Commercial Bank of Iraq and 40% in United Bank for Commerce and Investment in Libya. 1. retail. NBK Bahrain works as well closely with its counterparts within NBK’s network of branches and subsidiaries to support customers with their cross-border transactions and global investment needs. Al ahli united bank Ahli United Bank BSC (AUB) is a full fledged commercial and investment banking group providing wealth management. Iraq and Libya.29% increase in total income to Rs.4% stake in Ahli Bank QSC. corporate. AUB has an effective holding of 74. In Egypt. AUB also has 50% stake in a joint venture with Legal & General 13 . Axis Bank and HDFC Bank — its main competitors. offshore and private banking services. ICICI reported a 1.9% in Ahli United Bank Kuwait while in Qatar. NBK NBK set up in Bahrain in 1987 as an offshore bank to provide treasury and wholesale banking services to customers. Oman. a brokerage. Apart from these banks.31 crore in Q2 September 2008 over Q2 September 2007. contractor and corporate financing. In Kuwait. 4.

the Bank enjoys the position of having the most extensive branch network among foreign international banks in Bahrain with 5 branches and 1 sales center. Paris and Bermuda stock exchanges. Standard Chartered Bank is the first bank in Bahrain. the Americas. multinational corporate and financial institutions. HSBC's international network comprises around 8. 6. Africa and the Middle East. shares in HSBC Holdings plc are held by around 220. operates through a network of 130 branch offices and employs over 3. local companies.200 people. and other activities.000 offices in 87 countries and territories in Europe. New York. efficient and reliable service in a 14 . HSBC is one of the largest banking and financial services organizations in the world. commercial banking.000 shareholders in 119 countries and territories. In Bahrain. Hong Kong. Overall. With listings on the London. we are one of the leading banks. the Asia-Pacific region. including a rapidly growing e-commerce capability. HSBC provides a comprehensive range of financial services: personal financial services. 5. through its subsidiaries and associates. offering an extensive range of products and services for personal customers. Through an international network linked by advanced technology. corporate. Standard Chartered bank Standard Chartered – leading the way in Asia. having started in 1920 and played a pivotal role in establishing Bahrain as a key financial centre. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. private banking. investment banking and markets.incorporated in 2009 to form Legal and General Gulf. the Middle East and Africa. Our main objective is to offer outstanding value to our customers by providing a knowledgeable. HSBC Headquartered in London. the AUB Group. In its 88th year.

leading the way in Asia. Shamil Bank is a wholly owned subsidiary of Ithmaar Bank BSC. ranks among the top 25 companies in the FTSE-100 by market capitalization.000 people. a full service investment bank. The group is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards. By getting to know them better. associated and affiliated companies. with commercial and investment banking activities. Africa and the Middle East. Shamil bank of Bahrain Shamil Bank is a Bahrain-based Islamic retail bank licensed and regulated by the Central Bank of Bahrain. helpful and responsive manner. The London head quartered group has operated for over 150 years in some of the world’s most dynamic markets. in more than 1. with balanced income derived from both Wholesale and Consumer Banking.700 branches and outlets located in over 70 countries. Africa and the Middle East. representing 115 nationalities. we can identify their needs and match them with quality products which suit them best. Shamil Bank provides a diverse range of products and services that cater to the financing and investment needs of individuals and institutions. 15 . Standard Chartered aspires to be the best international bank in its markets through leading by example to be the right partner for its stakeholders. Standard Chartered PLC.personal. Central to this service philosophy is the professional consultative approach we take with each customer. Conducting its business in compliance with the principles of Sharia’a. The group now employs 73. The bank derives more than 90 per cent of its operating income and profits from Asia. 7. Its income and the number of employees have more than doubled over the last five years primarily as a result of organic growth and supplemented by acquisitions. listed on both the London Stock Exchange and the Hong Kong Stock Exchange. it operates a network of local branches and maintains a presence in overseas markets through its subsidiaries. It has grown steadily to become one of Bahrain’s leading financial institutions.

SURVEY The survey for this project has been conducted among 20 sample persons to analyze the popularity of credit cards issued by different banks of Bahrain.The questionnaire for this survey is given below: QUESTIONNAIRE: 1. What can you say about the credit card Interest rates? 16 . b) 2. c) 3. d) More than 3. 2. How many credit cards do you have? a) 1.

b) No. After taking a credit card is there any increase in your expenditure? a) Yes. but one that I can control. c) Often it is more. b) Yes. 4. c) No way! d) Not sure. b) Don’t know.platinum. 17 . What type of credit card do you use?(gold. Would you give your teenage child their own credit card? a) Yes. Which company’s credit card do you mostly use? 6. d) Often it is less.a) Same as usual. What is the name of the bank that issued your credit card ? 5. 3.silver or classic) 7.

1 NO. 18 . OF CREDIT CARDS OPTIONS 1 2 3 more than 3 NO.11.OF RESPONDENTS 15 3 2 0 PERCENTAGE% 75% 15% 10% 0% FIG.11.OF CREDIT CARDS 10% 15% 75% 1 2 3 This show that about 75% of people use 1 credit card.1 NO.Analysis 1. How many credit cards do you have? TABLE NO. OF CREDIT CARDS NO.

11. 19 .What can you say about the credit card Interest rates? TABLE NO. OF RESPONDENTS 30% 10% 60% same as usual often more often less This shows that about 60% of the people think that the interest rates are same as usual.2 ARE INTEREST RATES REASONABLE? NO. NO.2.2 ARE INTEREST RATES REASONABLE? OPTIONS same as usual often more often less don’t know NO. OF RESPONDENTS 12 2 6 0 PERCENTAGE% 60% 10% 30% 0% FIG. about 30% say that it is often less and about 10% say that it is often more.11.

3 CREDIT CARD USAGE BY TEENS CREDIT CARD USAGE BY TEENS YES 10% 15% 45% NO 30% YES.11.3.11. NO.3 CREDIT CARD USAGE BY TEENS OPTIONS YES NO YES. OF RESPONDENTS 9 6 3 2 PERCENTAGE% 45% 30% 15% 10% FIG.Would you give your teenage child their own credit card? TABLE NO. BUT ONE THAT I CAN CONTROL MAYBE NO. 20 . BUT ONE THAT I CAN CONTROL MAYBE This shows that about 45% of the parents agree to give their credit cards to their teen child.

11. OF RESPONDENTS 8% 8% 25% 7% 10% 20% 17% 5% HSBC ICICI STANDARD CHARTERED BANK BISB OTHER NBK SHAMIL BANK OF BAHRAIN AL AHLI UNITED BANK HSBC bank stands as the highest credit card issuer.11.4. 21 .What is the name of the bank that issued your credit card? TABLE NO.4 BANKS NO. OF RESPONDENTS 10 8 7 4 PERCENTAGE% 25% 20% 18% 10% 3 3 3 2 8% 8% 8% 5% FIG.4 BANKS BANK HSBC OTHER ICICI NBK STANDARD CHARTERED BANK SHAMIL BANK OF BAHRAIN BISB AL AHLI UNITED BANK NO.

Which companies credit cards do you mostly use? TABLE NO.11.5 CREDIT CARD COMPANIES CREDIT CARD VISA MASTERCARD OTHER NO.11. OF RESPONDENTS 17 3 0 PERCENTAGE% 85% 15% 0% FIG.5 CREDIT CARD COMPANIES CREDIT CARD COMPANIES 15% VISA MASTERCARD 85% This shows that about 85% of the people in Bahrain use VISA card. 22 .5.

What credit card types do you use? (gold.11.6.classic) TABLE NO. OF RESPONDENTS 1 4 6 9 PERCENTAGE% 5% 20% 30% 45% FIG.silver. 23 .11.6 CREDIT CARD TYPES CREDIT CARD TYPES 5% 20% 45% PLATINUM GOLD SILVER CLASSIC 30% This shows that majority of the people use platinum credit cards.platinum.6 CREDIT CARD TYPES TYPE OF CREDIT CARDS PLATINUM GOLD SILVER CLASSIC NO.

11.After taking credit cards is there any increase in your expenditure? TABLE NO.11.5 INCREASE IN EXPENDITURES INCREASE IN EXPENDITURES 40% YES NO 60% This shows that about 60% of the people say that their expenditures has increased after taking credit cards while 40% disagree.7. 24 .7 INCREASE EXPENDITURE OPTIONS YES NO NO.OF RESPONDENTS 12 8 PERCENTAGE% 60% 40% FIG NO.

 About 60% of the people agree that there is an increase in their expenditures after issuing the credit card while 40% of them disagree.  About 60% of the people agree that the interest rates put on credit cards is same as usual.30% think that it is often less while 10% say that it is often more.CONCLUSION  After analyzing the surveys we find that most of the people (i. Some say that they are willing to give but 1 that is under their control.  About 45% of the people use classic credit card types and 30% of the people use silver classic card types which are among the major credit card types use by the people.  About 45% of the parents say that they will be willing to give their teen child their own credit card. 25 .  HSBC bank is the major credit card issuer in Bahrain according to the survey. while 30% disagree about that. 75%) have only 1 credit card.e.

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