You are on page 1of 13

Letter of Transmittal

23rd October, 2017

Mr. Tajuddin Ahmed
Department of Management
North South University
Bashundhara, Dhaka.
Subject: Submission of Standard chartered Bank reports for the course of Human Resource

Most respectfully and as per your instructions, we have done our group reports on the
Standard chartered Bank for the course HRM 460 for the semester fall 2017 and the reports
was done by our group members. We are group K and the details of us given below:

Name ID Email Phone Signature

Iffath Ara Hoq 1420665030 01966277451

Jarin Anjum Chowdhury 1410508030 01686411333

Md. Taseen bin Alam 1311191030 01674111737

Mansura Afruj 1411078630 01679517522

Thanking you to give us the opportunity to work on such an interesting topic. We are hopeful
that you will like our reports and we will be very obliged if you do so.


Group K

Table Of content

Topic Page Numbers

Background and Global Factor 3

Local Factor 5

Tangible Assets 7

Existing HR 9

HRM Details 11

Standard Chartered Bank (SCB) PLC is an international bank group that is incorporated in the UK with its
Headquarters at 1 Alderman buries Square, London. The group operations are mainly concentrated in Asia,
Africa and the Middle East and its operation is segmented under six regions: LTK, Europe, Middle East, South
Asia, South East Asia and the USA. Globally, the SCB group owns an array of key resources that include:

The principles that govern the behavior of the 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 recognize the 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 behavior of all.

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 countrys
economy. In 1993, there was an organizational re-structuring, which led to a substantial expansion of the
Banks business. The change in strategy, performance and growth, adapted by Standard Chartered Bank is
clearly evident in the following comparison between its performances in 1995 to that in 2002. 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 from the above
figure we see that of the 9% held by foreign banks in total deposits, SCB alone commands 40% of the deposits.
In terms of advances made, Standard Chartered Bank holds the leading position among the foreign banks with a
market share of approximately 35%.

Global network:

There network of 600 offices in more than 50 countries. A staff of about 28000 people managing assets worth
47.65 billion. At the global level, SCB operates with some key strategies that are quite unique to other banks
such as: To build and grow strong businesses in Middle East, South Asia. Capitalize on the good track record

created by its more than 150 years of operations in these regions by building unique position and image among
the target customer segment and being responsive the needs and serve the needs better than the competitors.

Standard Chartered reputation is critical to being the worlds leading emerging markets bank. The preservation
and enhancement of that reputation depends upon our businesses operating to the highest standards of ethical

Standard Chartered bank has been established with the objective of developing the Banks business and interests
in the country. If the bank can run effectively, the development of SCB Bangladesh will be even greater. The
network of SCB bank engages itself for providing best quality banking service in retail, commercial and
corporate banking segments. The countries top enterprise; multinational, Local Corporation and financial
institutions are served by SCB. Standard Chartered is highly reputable in providing flexible and innovative
financial services solutions.

Activities of Standard Chartered Bank:

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 to 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.

Local Factors of Standard Chartered Bank in Bangladesh

Currently in Bangladesh, Standard Chartered Bank is the largest international bank. It has 26 Branches and
Booths and 87 ATMSs where it is employing over 2,000 people. They are the only foreign bank in our country
with presence in 6 cities which are Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj. They also
include offshore banking units inside Dhaka Export Processing Zone (DEPZ) at Savar and Chittagong Export
Processing Zone (CEPZ). Standard Chartered Bangladesh provides a wide range of products to its customers to
fulfill their every need life including different types of Personal Loans, Home Loan, Home Credit, Auto Loan.
They have a complete Employee Banking suite with exclusive offers and preferential features for the
employees of the organizations. Standard Chartered is also fueling the businesses in the economy by facilitating
the financing for the Business and Commercial clients. Standard Chartered Bangladesh has a glorious heritage
in introducing many first in Bangladeshi market starting from Auto Coupon Encashment Service of
Sanchaypatra to International Debit Card to Gold Deposit Transaction. On the consumer convenient side, they
have been continuously coming up with newer technology and platforms like introducing first ATM in
Bangladesh to state-of-the-art Online Banking Platform or even the Facebook platform to stay close to their
customers. Standard Chartered Bangladesh Banks extensive knowledge of the market and essential expertise in
wide range of financial services underline their strength to build business opportunities for retail, corporate and
institutional clients in Bangladesh. As the oldest international bank in Bangladesh they understand and value the
local culture and continuously seek to serve their customers with the best possible service maintaining all the
regulatory standards, ethics and best practices both at home and abroad.

The Standard Chartered Bank in Bangladesh has its headquarters and sixteen branches in Dhaka, five in
Chittagong and one branch in Sylhet, Khulna, Narayanganj and Bogra. While the full range of services is
available at the headquarters other branches offer specific services appropriate for the location. At the
headquarter, the bank mainly consists of two divisions, one is Business and other is Support.

The business division has the following departments,

Corporate Banking Group (CBG)

Treasury (TSY)
Institutional Banking Group (IBG)
Consumer Banking (CB)
Custodial Services (CUS)

Standard Chartered Bangladesh is primarily corporate driven. More than the corporate banking generates 40%
of its revenue group while Treasury contributes more than 20% to the overall revenue. The rest is generated
from Personal Banking, Custodial Services and Institutional Banking. The Support division provides assistance
to the above business activities and consists of the following departments, Legal and compliance and Credit.

Banking Services of the SCB in Bangladesh: There are two types of services provided by the SCB,

Business or Corporate Financial Services.

Retail or Consumer Financial Services.

But these two services can be classified further by the following ways:

Standard Chartered Banks corporate clients mainly comprise the top local and multinational companies
operating in Bangladesh. The main objective of this department is to build and maintain positive relationships
with their clients. As a result, each and every company is assigned a Relationship Manager, who maintains
regular contacts with clients. Moreover, this department offers the following facilities to its clients.

Project Finance
Syndicated Loans.
Bonds and Guarantees.

Finally, to conclude in Bangladesh Standard Chartered Banks Chief Executive Officer is Abrar A. Anwar, and
it was established here in 1905 (including ANZ Grindlays experience; Standard Chartered Bank originally
established its first branch in Chittagong in 1948) and a Leader and pioneer in Retail Banking, A leading price
player in treasury instruments and foreign currencies, First international bank to extend credit lines to
Bangladesh and open the first external letter of credit (LC) in Bangladesh in 1972.

In addition to its business activities, it has benefitted our country through its wide range of sustainability and
community investment programs. The bank itself is the forerunner in CSR and sustainability initiatives in
Bangladesh. The major areas of focus for the Banks sustainability and community initiatives in Bangladesh are
Heath, Sports, Education, Arts and Culture, Environment and Climate Change. They continuously carry on
various meaningful activities that helps the community. With a presence in Bangladesh that spans over 110
years, Standard Chartered is proud to be the oldest bank in the country and an integral partner in progress for the
nation and its people.

Tangible Asset of Standard Chartered Bank

Standard Chartered Bank (SCB), Bangladesh, Islamic Banking Unit ("the Bank") commenced its banking
operations in Bangladesh on 26 February 2004 after obtaining the banking license on 18 November 2003 from
Bangladesh Bank, the Central Bank of Bangladesh. Standard Chartered Bank (SCB), Bangladesh Branches
commenced its banking operations in Dhaka in 1948 after obtaining license from the central bank. Standard
Chartered Bank is incorporated in England by Royal Charter 1853.

Standard Chartered Bank is the largest international bank in Bangladesh with 26 Branches & Booths and 83
ATMs. They have 6 major branches in 6 cities Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj;
including the country's only offshore banking units inside Dhaka Export Processing Zone (DEPZ) at Savar and
Chittagong Export Processing Zone (CEPZ).

In Dhaka City Standard chartered bank has 16 branches and those are Gulshan Branch, North Gulshan Branch,
Banani Branch, Satmasjid Road Branch, Dhanmondi Road# 5 Branch, Kakrail Branch, Kawran Bazar Branch,
Sonargaon Branch, Mirpur Branch, City Centre Branch, Motijheel Branch, Chawk Bazar Branch, Savar Branch,
Ruposhi Bangla Branch, Uttara Branch, Saadiq Centre. Alone in Dhaka they have 40 ATM booths. In
Chittagong City Standard chartered bank has 6 branches those are Main Branch, Agrabad Branch, Khatunganj
Branch, Nasirabad Branch, Station Road Branch, CEPZ Branch. In Chittagong they have 8 ATMs.

In their Tangible asset they also have some deposit machine. Currently there are 22 deposit machines in Dhaka,
6 deeposit machine in Chittagong, one in Sylhet City and one in Bogra city total 30 deposit machines.

For better management of asset and liability risk, the Bank has an established Asset & Liability Committee
(ALCO) which meets at least once in a month. The role of ALCO is to maintain a strong balance sheet (Capital
& Liquidity) which supports business objectives and to comply with regulatory requirements and Group policy.
The members of ALCO as at year end were as follows: Chief Executive Officer (Chairman) Chief Financial
Officer (Secretary Country Chief Risk Officer Head of Corporate and Institutional Clients Head of
Financial Markets Head of Retail Customers Head of Commercial Banking Chief Information Officer The
ALCO's primary function is to ensure the efficient implementation of balance sheet management policies as
directed by Bangladesh Bank, Group ALCO and its sub committees and also to review reports on liquidity,
interest rate risk and capital management and ensure adherence to applicable limits, policies and regulatory
requirements. ALCO regularly reviews the Banks overall asset and liability position, forward looking asset and
liability pipeline, overall economic position, the Banks liquidity position, capital adequacy, balance sheet risk,
interest rate risk and makes necessary changes in its mix as and when required. The Bank has a Group specified
liquidity and funding ratio to be maintained to ensure financial flexibility to cope with unexpected future cash
demands. ALCO monitors the liquidity and funding ratio on an ongoing basis and ascertains liquidity
requirements under various stress situations. In order to ensure liquidity against all commitments, the Bank
reviews the behavioral patterns of liquidity requirements. The Bank has an approved Liquidity Contingency
Plan (LCP) which is reviewed and updated on an annual basis by the ALCO. All regulatory requirements
including CRR, SLR and capital adequacy are reviewed by ALCO.

According to their schedule of fixed asset, in 1st Jan 2014 their fixed equipment balance was 982,459,579 Taka.

During the year they added 96,988,627 Taka worth of fixed equipment and the amount of depreciation was
824,056,062 Taka. Net value at 31st December 2014 was 255,392,144 Taka.

Computer and office equipment balance in 1st Jan 2014 was 982,930,052 Taka. During the year they added
202,386,624 Taka worth of Computer and office equipment and the amount of depreciation was 963,019,361
Taka. Net value at 31st December 2014 was 222,297,315 Taka. Furniture and fittings balance in 1st Jan 2014 was
289,009,438 Taka. During the year they added 191,548,351 Taka worth of Furniture and fittings and the amount
of depreciation was 242,750,792 Taka. Net value at 31 st December 2014 was 237,806,997 Taka. Motor vehicle
balance in 1st Jan 2014 was 14,808,151 Taka. During the year they added 25,982,862 Taka worth of Motor
vehicle and the amount of depreciation was 11,257,444 Taka. Net value at 31 st December 2014 was 24,233,589

Standardized Approach is followed for computation of capital charge for credit risk, market risk and Basic
Indictor Approach for operational risk. The Bank's approach to capital management is driven by its desire to
maintain a strong capital base to support the development of its business, to meet regulatory capital
requirements at all times and to maintain good credit ratings. When Standard Chartered joined the UK Value
Investor model portfolio it was one of the only UK-listed banks to have survived the initial phase of the global
financial crisis completely unharmed. That was mostly down to the fact that the majority of its business was and
is conducted in Asia, Africa and the Middle East, rather than in the West where most of the causes and effects of
the crisis were centered. In fact, Standard Chartered didnt just survive the financial crisis; it sailed through it
almost without blinking. It quickly settled back into its previous pattern of almost monotonously regular double-
digit growth, but that happy picture was not to last.

Things started to go wrong in 2013 when growth in the emerging markets where Standard Chartered operates
began to slow down, partly as a long-delayed reaction to the financial crisis. This reduced corporate finance
activity which hurt the companys wholesale banking business, and there were more headwinds to come.
Increasing regulatory costs, persistent low interest rates and collapsing commodity prices all combined to create
a perfect storm that stopped Standard Chartereds growth in its tracks and sent the company into reverse.
Eventually the dividend was cut and then suspended and a 3 billion rights issue was needed in order to
strengthen the balance sheet.

Existing HR of Standard Chartered Bank

HR Department is one of the most important success factors for Standard Chartered. Managing their human
resources took a lot of patience and skills. This job needs to be done very carefully because it is not easy
managing a companys workforce so that they will work to their full potential. But it is detrimental for Standard
Chartered Bank. 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.

Organizational Hierarchy and Culture:

Standard Chartered in every country follows a hierarchy pattern of command. The Chief Executive Officer
(CEO) for the country reports to the Regional CEO, South Asia in Mumbai. All other departmental heads at the
headquarters report to the country CEO. The entire department heads at the headquarters report to the CEO and
also their respective regional bosses. Managers or Senior Managers report to the divisional heads. The
respective branch managers are responsible for the performance of their units. Each branch is organized
functionally along line divisions with some support facilities and the manager assigns tasks to his/her
subordinate personnel and supervises their performance.

There are 90,000 employees; representing 133 nationalities across 71 countries are working in the Standard
Chartered Bank and they are proud of being a truly diverse organization, combining an international footprint
with in-depth local understanding. They also look for certain other attributes including teamwork, the desire to
do good, and the ability to perform to a consistently high standard. This unique culture, built upon strong values
and a foundation of teamwork, commitment and performance is a strong competitive advantage for the Bank.

Succession Planning: Standard Chartered recommend all clients give consideration to what might happen to
their assets in the event of their death. Appreciating the consequences of intestacy (and the desirability of
succession planning, will assist those charged with responsibility for the administration of an estate, especially
when foreign sites assets are present. Standard Chartered cannot advise individual clients on matters of

succession or estate planning. Clients are urged to seek the counsel of their own lawyers on such matters or to
take advice from lawyers qualified in Jersey law jurisdictions.

Challenges faced by HR Manager:

HR managers faced some problems which are given below:

Working with people of different cultures

Managing workforce diversity
Helping employees balanced work life conflict
Up gradation of employees according to the environment
Cost cutting

Communication Process: Standard Chartered Bank has the competitive advantage against other banks
because it has one of the most comprehensive communication networks. Their electronic mail facility provides
them with a very important channel for communication which does not require much documentation. The
company undertakes training and development programs inside and outside the organization for the
development of communication skills of its employees. The company also has some set of rules for
communication, like all external communication to clientele should be initialed by a senior authority along with
the responsible person. Internal communication at Standard Chartered Bank is equally addressed in all three
directions i.e. upward, downward and horizontal. Equal emphasis is given do these three directions and they
have even appointed a communication manager, although such designation still does not formally exist. At
Standard Chartered Bank, upward communication has become increasingly more significant since the
implementation of their new personnel performance appraisal program.

Compensation and Benefits: At Standard Chartered Bank, compensation packages provided to the
employees can be divided into two categories. One comprises of the sales/ temporary personnel who are
compensated on their ability to meet their targets. Second are the executives/officers who are responsible for the
overall functions of the bank.

Compensation for the sales force/temporary employees: The key to a successful sales / temporary
compensation program is achieved in 3 steps:

1. Clearly define goals that are realistic but challenging.

2. Measuring performance against goals
3. Rewarding achievement with competitive and motivational compensation packages.

Executives and officers compensation: Compensation packages for executive officers are:

1. Basic salary
2. Annual incentives.
3. Bonus and benefits.

10 | P a g e
Strategic Human Resource Management of Standard Chartered Bank
Human Resource 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. Concerned with the Human Resource System, SCB has five key
performance indicators which enable the management to congregate information required to determine and
assess about the progress of the company.

Structure of SCB:

Global and Local Employees of SCB: Standard Chartered has a history of over 150 years in banking and is
in many of the worlds fastest growing markets. As one of the worlds most international banks, Standard Chartered
employs almost 44,000 people, represents 89 nationalities, worldwide. The strength of Standard Chartered Bank lie in its breadth,
diversity and balance and is trusted across its network for its standard of governance and corporate responsibility.

HR Functions of SCB: HRM functions are carried out by the HR managers to fulfill goals and objectives of
the organization. HR Managers focus on two sets of function. The HR department of SCB carries out
managerial functions which comprise of planning, recruiting, training, rewarding, researching and compensating
for the future. HR developments at Standard Chartered Bank embrace training, learning and mentoring. The
operative functions on the other hand, are specialized activities performed exclusively by the HR managers
usually for all departments. These operational functions include development, compensation, maintenance and
motivation, integration and industrial relations.

Recruitment process of SCB: Recruitment is defined any practice or activity carried on by the organization
with the primary purpose of identifying and attracting potential employees. The goal of an organizational
recruitment program is to ensure that the organization has a number of reasonably qualified applicants to choose
from when a vacancy occurs. It is the process of location, identifying and attracting capable applications for jobs
available in an organization. Accordingly the recruitment process comprises the following five steps:

Recruitment planning: The first involved in the recruitment process is planning. Hire, planning involves to
draft a comprehensive job specification for the vacant position, outline its major & minor responsibilities, the

11 | P a g e
skills, experience and qualifications needed grade & level of pay, starting date ,whether temporary or
permanent,& mention of special condition, if any attached to the job to be filled.

Strategy development: Once it is known how many with what qualification of candidates are required, the next
step involved in this regard is to device a suitable strategy for recruitment the candidates in the organization. the
strategic considerations to be considered many include issues like whether to prepared the required candidates
themselves or hire it from outside, what type of recruitment method is to be used, what geographical area be
considered, for searching the candidates, which source of recruitment to be practiced, and what sequence of
activities to be followed in recruiting candidates in the bank.

Searching: These steps involved attracting job seeders to the bank. There are broadly two sources used to
attract candidates. These are internal sources and external sources.

Screening: Through some view screening as the starting point of selection, we have considered it as an integral
part of recruitment. The reasons begin the selection process starts only after the application have been screened
and short listed. Applications are screened against the qualifications, knowledge, skills, abilities, interest and
experience mentioned in the job specification. Those who qualify are straight way eliminated from the selection
process. The techniques used for screening candidates are very depending on the source of supply and method
used for recruiting. Preliminary applications, de-selections test and screening interviews are common techniques
used for screening the candidates.

Evaluation & control: Given the considerable involved in the recruitment process, its evaluation and control is,
therefore, imperative. The cost generally incurred in a recruitment process include:

Salary of recruiters
Cost of time spent for preparing job analysis, advertisement, etc,
Administrative expenses
Cost of outsourcing or overtime while vacancies remain unfilled.
Cost incurred in recruiting a suitable candidate.

Selection process of SCB: The Selection process is based on technical knowledge of the candidate. Main things
taken into consideration while selecting the candidate are- national qualification, technical qualification, job
experience and specialized working area. The process of selection is given below

Initial screening
Completing the application form
Employment test
Comprehensive interview
Background investigation
Decision making

12 | P a g e
Training and Development: SCB believes their primary competitive advantage comes from their employees. It
is their ability to provide a superior customer experience to its customers that sets it apart from other financial
services companies. In the ever-changing financial services industry, all of them must continuously upgrade
their skills and knowledge in order to maintain this competitive advantage. SCBs goal is to attract, retain and
motivate the very best, and to do that it supports training, development, and business education. Internal
Training Programmed such as Seminars, workshops and locally tailor-made training on a variety of topics are
offered directly by SCB. The process of training and development are given below:

Conducting training need assessment

Ensuring employees readiness for training
Creating learning environment
Ensuring transfer of training
Evaluation plan
Training method
Monitor and evaluation

Compensation and Salaries: Deals with what things the company has to the employees in order to get the
most return out of them- rewarding employees with things that create value for them and thus in turn motivates
them. In compensation included are salary, incentives, commission and bonus.

Salaries of SCB in (BDT)

Intern - Monthly Manager - Monthly

2 salaries 1 employee salary or estimate

About BDT 5k - BDT 5k monthly About BDT 74k - BDT 80k monthly

Assistant Manager - Monthly Assistant Manager

2 salaries 1 employee salary or estimate

About BDT 25k - BDT 46k monthly About BDT 419k - BDT 453k

Relationship Manager - Monthly Customer Service Representative - Monthly

1 employee salary or estimate
1 employee salary or estimate
About BDT 43k - BDT 46k monthly
About BDT 18k - BDT 20k monthly
Relationship Manager
Associate, FX Trading - Monthly
1 employee salary or estimate
1 employee salary or estimate
About BDT 471k - BDT 514k
About BDT 116k - BDT 126k monthly
Analyst - Monthly Contractor
Personal Financial Consultant (Service)
1 employee salary or estimate
1 employee salary or estimate
About BDT 14k - BDT 15k monthly
About BDT 340k - BDT 365k

13 | P a g e