Company Profile (Page - 5 To 20)

2.1.
Background
The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard
Bank of British South Africa founded in 1863 and the Chartered Bank of India, Australia and China,
founded in 1853. Both companies were keen to capitalize on the huge expansion of trade and to earn
the handsome profits to be made from financing the movement of goods from Europe to the East and
to Africa.
The Chartered Bank: The details about the Chartered Bank include:
• Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.
• Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858,
followed by Hong Kong and Singapore in 1859.
• Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice
in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama.
• Played a major role in the development of trade with the East which followed the opening of
the Suez Canal in 1869 and the extension of the telegraph to China in 1871.
• In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus
Branches. This established a presence in the Gulf.
The Standard Bank: The details about the Standard Bank include:
• Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced
business in Port Elizabeth, South Africa, in January 1863.
• Was prominent in financing the development of the diamond fields of Kimberley from 1867
and later extended its network further north to the new town of Johannesburg when gold was
discovered there in 1885.
• Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices.
• In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon,
Gambia, Ghana, Nigeria and Sierra Leone.
In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was
going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the
United Kingdom. When the bid was defeated, Standard Chartered entered a period of change.
Provisions had to be made against third world debt exposure and loans to corporations and
entrepreneurs who could not meet their commitments. Standard Chartered began a series of
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divestments notably in the United States and South Africa, and also entered into a number of asset
sales.
From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, the
Middle East and Africa using its operations in the United Kingdom and North America to provide
customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and
institutional banking and on the provision of treasury services - areas in which the Group had
particular strength and expertise.
In the new millennium SCB acquired Grindlays Bank from the ANZ Group and the Chase Consumer
Banking operations in Hong Kong in 2000.2005 and 2006 were historic years for as several
milestones with a number of strategic alliances and acquisitions that is expected to extend SCB’s
customer or geographic reach and broaden thier product range at the same time.
The bank rejuvenated its 150-year-old logo in 2003 by bringing in colors of green and blue. The logo
shows the letters ‘S’ in blue and ‘C’ in green, twisted and curled with one another. The logo of the
bank depicts the merger of two banks.
Standard Chartered today: Today Standard Chartered is the world's leading emerging markets
bank employing 30,000 people in over 500 offices in more than 50 countries primarily in countries in
the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas. The new millennium
has brought with it two of the largest acquisitions in the history of the bank with the purchase of
Grindlays Bank from the ANZ Group and the acquisition of the Chase Consumer Banking operations
in Hong Kong in 2000. These acquisitions demonstrate Standard Chartered firm committed to the
emerging markets, where we have a strong and established presence and where we see our future
growth.
2.1.1. Company Profile & Location

Name of the Organization : Standard Chartered Bank Bangladesh
Year of Establishment : 1948 (Chittagong)
Country Chief Executive Officer : Jim McCabe
Head Office : Gulshan
Nature of the organization : Multinational Company with subsidiary
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group in Bangladesh
Local Time : GMT + 7 Hours
Currency Name : Taka (BDT)
Population : 161.3 million (UN, 2008)
Number of Branches : 25
Number of ATM’s : 50
Technology : Offers full online banking from branch to

branch and also from Dhaka to
Chittagong.
Service Coverage & Customers : Serves individual and corporate customers

within Dhaka & Chittagong.
2.2. The main Objective of Standard Chartered Bank

Through an international network linked by advanced technology, including a rapidly growing e-
commerce capability, SCB provides a comprehensive range of financial services, personal financial
services, commercial banking, corporate, investment banking and markets, private banking and other
activities.
2.3. Principles of Standard Chartered Bank

The Standard Chartered Group is committed to five core business principles. These are –
• Outstanding customer service
• Effective and efficient operations
• Strong capital and liquidity
• Prudent lending policy
• Strict expense discipline
2.4. Values of Standard Chartered Bank
Standard Chartered also operates according to certain key business values. These are –
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• The highest personal standards of integrity at all levels
• Commitment to truth and fair dealing
• Hands-on management at all levels
• Commitment to quality and competence
• A minimum of bureaucracy
• Fast decisions and implementation
• Putting the team’s interests ahead of the individual’s
• The appropriate delegation of authority with accountability
• A commitment to complying with the spirit and letter of all laws and regulations wherever we
conduct our business.
SCB reputation is founded on adherence to these principles and values. All section taken by a
member of the SCB Group or staff member on behalf of a Group company should confirm to the
principles and values. Additionally they have code of conduct for staff in all operations.
2.5. Organogram:
Figure 1: Organogram
CEO : Chief Executive Officer

HOCB : Head of Consumer Banking
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HOWB : Head of wholesale Banking
HOHR : Head of Human Resource
HOFA : Head of Finance & Administration
CIO : Chief Information Officer
HOCA : Head of Corporate Affairs
Remarks: All Departmental Heads indirectly report to country CEO, and directly report to regional
heads.
2.6. Marketing Mix of SME Banking of SCB:

2.6.1. SME Product
SME Banking of Standard Chartered Bank offers an array of products for its customers. They are as
follows
2.6.2.1. Business Installment Loan

Do not let fund shortage hold back your business expansion. Fight back all fund related constrains
with Standard Chartered Bank’s Business Installment Loan. Inject up to BDT 7 Million to truly
make your business fly!
Features
This loan will help to meet financial needs for a business expansion. It can make long term
investments with this business loan and build up equity by repaying the loan in convenient equated
monthly installments (EMI). It can avail this loan through some simple documentation and against
competitive cash securities.
2.6.2.2. Orjon
In Bangladesh the number of women-owned company continues to grow, and Standard Chartered
Bank is dedicated in helping the women entrepreneurs to grow their business by offering competitive
Business Loans specially designed for women.
Standard Charterer’s Orjon provides the liquidity you need to grow your business or meet your cash
flow requirements. The loan enables you to obtain financing without any requirement of land or
property collateral.
Features:‘Orjon’ has been crafted to perfection to support the business needs of women
entrepreneurs. The following features depict the very reasons as to why ‘Orjon’ can be
instrumental in your business success:
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2.6.2.3. Loan Against Property
At Standard Chartered we strive to meet your needs in a competitive and dynamic business
environment. We understand that, as an SME, you require quick access to cash, and the flexibility to
leverage your assets to fuel your business growth.
Standard Chartered’s Loan Against Property provides the liquidity you need to grow your business or
meet cash flow requirements. The loan enables you to leverage your property to obtain financing.
Features
Loan against property is very flexible and is designed to meet the different financial needs of a
business. Want to expand the business leveraging on existing property? With Loan Against Property
can undertake long term investments for expansion. In the process Loan Against Property also enables
to build up business equity by repaying the loan in monthly installments.
2.6.3. Price
Business Installment Loan
• Maximum Loan : BDT 7,000,000 (Seventy Lacks) only
• Minimum Loan : BDT 1,000,000 (Ten Lacks) only
• Interest Rate : 19.5% per annum
• Tenor : 3 Years - 5 Years (i.e. 36 to 60 EMI payments)
• Cash Security : 30% to 50% of the loan amount
Charges
• Loan Processing Fee : 1% of the approved loan amount
• Early Settlement Charge : 5% on outstanding amount if repaid at any
given time before maturity of the loan
• VAT and Stamp Charge : All charges and fees are subject to 15% VAT, to be
paid by the customer. Stamp charge will be at actual to

be paid by the customer.
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Orjon
• Maximum Loan : BDT 7,000,000 (Seventy Lacs) only
• Minimum Loan : BDT 1,000,000 (Ten Lacs) only
• Interest Rate : 18.5% per annum
• Tenor : 3 Years - 5 Years (i.e. 36 to 60 EMI payments)
• Cash Security : 30% to 50% of the loan amount
Charges
• Loan Processing Fee : 1% of the approved loan amount
• Early Settlement Charge : 5% on outstanding amount if repaid at any given
time before maturity of the loan
• VAT and Stamp Charge : All charges and fees are subject to 15% VAT, to
be paid by the customer. Stamp charge will be at actual
be paid by the customer.
Loan Against Property
• Maximum Loan : BDT 28,000,000 (taka two crore eighty lac) only
• Minimum Loan : BDT 1,400,000 (taka fourteen lac) only
• Interest Rate : 16% per annum
• Tenor : 3 Years - 10 Years (i.e. 36 to 120 EMIs payments)
• Maximum % of loan amount against market value of the property:

For Commercial Property 60% of property’s current market value
For Residential Property 70% of property’s current market value
Charges
• Loan Processing Fee : 1.5% of the approved amount
• Valuation Fee : BDT 5000 per property
• Legal fee : BDT 7000 property
• Early Settlement Fee : 5% on outstanding amount if repaid at any given
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time before maturity of the loan
• VAT and Stamp Charges : All charges and fees are subject to 15% VAT, to
Be paid by the customer. Stamp charge will be at

actual to be paid by the customer.
Please note both valuation and legal fees are non-refundable and inclusive of processing fee of 1.5%
+VAT of the loan. Both fees will be discounted from the said processing fee at the time of loan
disbursement if the loan is approved by the bank, the facility is availed by the customer and the
property(s) are mortgaged in favor of the Bank.
2.6.4. Promotion
In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal of
generating a positive customer response. Marketing communication decisions include:
Advertising platforms:
• Print & broadcast ads
• Brochures & booklets
• Directories
• Symbols & Logos
• Billboards
Sales promotion:
• Premiums & gifts
• Fairs & trade shows
• Rebates
• Low-interest financing
• Trade in allowances
Publicity & Public relation:
• Press kits
• Seminars
• Annual reports
• Charitable donations
• Company magazine
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• Publications
However, the strategies for the four P’s require some modifications when applied to services. For
example, traditionally promotion is thought of as involving decisions related to sales, advertising,
sales promotions and publicity. In services these factors are also important, but because services are
produced and consumed simultaneously, service delivery people are involved in real-time promotion
of the service even if their jobs are typically defined in terms of the operational function they perform.
2.6.5. Place
The place is where you can expect to find your customer and consequently, where the sale is realized.
Knowing this place, you have to look for a distribution channel in order to reach your customer.
The place is not where is located your business but where our customers are. For a retailer it is the
same but for a boat producer located in Philippines the real place is the entire world. Do not confuse
positioning and place. Here place means the real physical position of the customer in a geographic
area or along a distribution channel. Distribution is about getting the products to the customer. Some
examples of distribution decisions include:
• Distribution channels
• Market coverage (inclusive, selective, or exclusive distribution)
• Specific channel members
• Inventory management
• Intermediaries
• Distribution centers
• Order processing
• Transactions
• Reverse logistics
In consumer marketing channels, we have to consider three main distribution channels:
• Selling to the customer
• Selling to the retailer
• Selling to the wholesalers
City Branch Name & Address
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Dhaka Gulshan Branch
67 Gulshan Avenue
Banking Hours (Sun - Thu): 10:00 am to 4:00 pm
Evening Banking (Sun - Thu): 6:00 pm to 8:00 pm
Saturday Banking: 10:00 am to 1:00 pm
North Gulshan Branch

Block-NW(A), 189 Gulshan Avenue (North), Gulshan 2
Banani Branch
14 Kemal Ataturk Avenue, Banani
Dhanmondi Road# 2 Branch

House 37, Road 2, Dhanmondi R/A
Dhanmondi Road# 5 Branch

House 6, Road 5, Dhanmondi R/A
Kakrail Branch
Karnaphuli Garden City, 109 Kakrail Road
Kawran Bazar Branch

53 Kawran Bazar
Sonargaon Branch
L101 Pan Pacific Sonargaon Hotel, 107 Kazi Nazrul Islam Avenue
Mirpur Branch
Dynasty Tower, Plot 01, Road 12, Block G, Section 6, Pallabi, Mirpur
City Centre Branch

City Centre, Plot 5/A, Motijheel C/A
Motijheel Branch
Alico Building, 18-20 Motijheel C/A
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Chawk Bazar Branch

12 Water Works Road, Dalpatty, Chawkbazar
Savar Branch
Dhaka Export Processing Zone, Zone Service Complex
Sheraton Branch
Dhaka Sheraton Annex Building, 1 Minto Road, Ramna
Uttara Branch
House 81, Road 7, Sector 4, Uttara
Saadiq Centre
102 Gulshan Avenue
Chittagong Main Branch

Sheikh Mujib Road, Agrabad
Agrabad Branch
PHP House, 31 Agrabad C/A
Khatunganj Branch
Asma Chamber, 1649 (New) Ramjoy Mohajon Lane, Khatungonj
Nasirabad Branch
Bulbul Centre, 486/B, O R Nizam Road, CDA Avenue, East Nasirabad
Station Road Branch

Jibon Bima Corp Shopping Center, 22/23 Station Road
Bogra Bogra Branch

Shatani House, Sherpur Road
15
Khulna Khulna Branch

Jibon Bima Bhaban, KDA Avenue
Narayanganj Narayanganj Branch

26 Shaista Khan Road (near Narayanganj Club)
Sylhet Sylhet Branch

7 Noya Sharak, Jail Road, Ward # 16
2.6.6. People
All human action that plays a part in reference and information services delivery namely the librating
personnel.
2.6.6.1. Board of Directors
• Mr. John Peace Chairman
• Mr. Hossain Mehmood Vice Chairman
• Mr. Jon Macmain Managing Director and CEO
• Mr. Rubel Aziz Director
• Evana Fahmida Mohammad Director
• Mr. Hossain Khaled Saifullah Director
• Rajibul Haque Chowdhury Director
• Mr. Mobarak Ali Director
• Ms. Tabassum Kaiser Director
• Mr. Rafiqul Islam Khan Director
• Ms. Meherun Haque Director
• Ahmed Rajib Samdani Director
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2.6.6.2. Board of Members
• Mr. Peter Sands Group CEO
• Mr. Rudy Markham Senior Independent Non Executive

Director
• Mr. Richard Meddings Group Finance Director
• Mr. Steve Bertamini Group Executive Director
• Mr. Jaspal Bindra Group Executive Director
• Mr. Gareth Bullock Group Executive Director
• Mr. Richard Delbridge Non Executive Director
• Ms. Jamie Dundas Non Executive Director
• Dr. Han Seung –Soo, KBE Non Executive Director
• Ms. Val Gooding, CBE Non Executive Director
• Mr. Simon Lowth Non Executive Director
• Mr. Ruth Markland Non Executive Director
• Mr. John Paynter Non Executive Director
• Mr. Mike Rees Non Executive Director
• Mr. Paul Skinner Non Executive Director
• Mr. Oliver Stocken Non Executive Director
• Mr. Annemarie Durbin Non Executive Director
2.6.7. Physical Evidence

The environment in which the reference and information service are delivered that performance and
communication of the service,
The appearance of building, landscaping, vehicles, interior furnishing, equipment, staff

members, signs, printed materials, and other than visible cues all provide tangible evidence of
the banks service quality. Standard Chartered Bank manages its physical evidence very
carefully, as it can have a profound impact on customers’ impression.
They have:
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• Well decorated office space
• Prayer time & space
• Necessary furniture & electric equipment
• Seating arrangement for customers
• Car parking facility
• Printed materials
• Skilled manpower etc.
2.6.8. Process:
• Standard Chartered Bank creates and delivers product elements based on customer
requirement.
• They design and implementation by effective process.
• Standard Chartered Bank designs its process in such a way that lead to fast, dynamic and
very effective service delivery and result in satisfied customers.
• As the process of the bank is very well designed, it helps a lot to the front line staffs to do
their jobs well, resulting in high productivity and decrease likelihood of service failure.
• In the bank most of the directions comes from head office but there are different culture in
different branch based on location but everywhere a specific process is highly maintained.
2.7. SWOT Analysis of SME Banking of SCB Bangladesh

Based on the discussion and analysis above a SWOT Analysis of the SME Banking division of
Standard Chartered Bank has been given below:
2.7.1. Strength
• Very few private commercial banks have taken special initiative for SME Banking. They are
guided by Bangladesh Bank prudential guideline for small businesses. The products are
generally Overdraft and Term loan with an average ticket size of Tk 30 lakh. There is no
scheme for financing medium enterprise. But SCB is the only exception to offer full range of
product suits for both small and medium enterprises
• For small business they offer Business installment loan with a ticket size of BDT 12
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lakh to 70 lakhs.
• For medium enterprises they offer all sorts of Trade and working capital product like
Overdraft, term loan, Revolving loan, Letter of credit and loan against Trust receipt
etc with a ticket size of BDT 20 million to 200 million.
• Promotional Activities: TBWA is one of the most creative ad agency networks in the
world. Benchmark Limited, a leading ad agency in Bangladesh teamed up with TBWA
Worldwide on May 6, 2008 in a grand re-launching ceremony at Pan Pacific Sonargaon,
Dhaka. TBWA Benchmark works for SME in Standard Chartered Bank for advertising their
products. Through press release of SME Banking of Standard Chartered Bank we have come
to know that Standard Chartered Bank sanctioned its first SME Loan Against Property (LAP)
to R.S. Enterprise, one of the SME customers of the bank. SME of Standard Chartered Bank
also arrange SME fair for promoting their products to the customers.
• There is direct interaction between RM and client along with factory visits
• Having a low cost fund and Standard Chartered Bank being an international bank, it is able to
provide large credit facilities compared to PCB (Maximum Credit Facility per Single
Customer BDT 120 million, Minimum Credit Facility per customer BDT 7.15 million,
Maximum Credit Facility for Group Customer BDT 150 million) and hence attract more
customers
• Standard Chartered Bank has low cost of fund since the rates of interest for FDR and Savings
A/C is much lower than other banks operating in Bangladesh which lowers their expenses.
Hence it can provide competitive rates of interest on its products which include Overdraft,
Loan against Trust Receipts, Term Loan, Revolving Loan and Local Bill Discounting
• SME banking of Standard Chartered Bank offers larger numbers of products for their
customers.
• SME banking of Standard Chartered bank considers their promotion for the product Business
Loan and Over Draft to be adequate in light engineering sector.
• SME banking of Standard Chartered Bank considers their promotion for the product Business
Loan and Product Overdraft to be adequate in plastic sector
• The distinction between SME financing in SCB and others commercial banks is, SCB initiate
a cash flow based financing policy which is in line the government prudential guideline. On
the other hand, local private commercial banks are pursuing traditional collateral based
financing.
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2.7.2. Weakness
• From the information provided by the Relationship Managers the pari passu agreements
needed to prevent inferior security positions can be a lengthy process and presents a common
difficulty
• The definition of SME is different for SCB Group and other PCB. SCB provides to the
Medium Enterprises and has a smaller branch network.
• SME banking of Standard Chartered Bank in Bangladesh provides Loan Against Property
(LAP) in the metropolitan area in Dhaka and Chittagong only.
• SME banking of Standard Chartered Bank provides Loan Against Property (LAP) to those
with a minimum income BDT 70,000/- per month.
• SME banking of Standard Chartered Bank in Bangladesh charges high interest rate for
Business Installment Loan. (19.5%)
• Although the interest rate of Standard Chartered is favorable than other
commercial banks but tariff and charges on other trade services like shipping
guarantee, SWIFT charges, LC advising and amendment fees, export bill
negotiations are bit higher than the competitors
2.7.3. Opportunities
• Bangladesh has been well established in the international market as a source for cheap
garments, with unit costs being the lowest in South Asia.
• US and EU have levied quotas on Chinese exports till 2008
• Small and Medium Enterprises is an important and fast growing business in Bangladesh. As
of 2006, RMG Sector comprised 76% of country’s total export earnings. It is clear that
economic development of the country is highly dependent on the development of the SME.
Therefore SCB can find many prospective customers who can contribute and help raise their
revenue.
2.7.4. Threats
Competition from other PCB. From the above table, it is seen that HSBC has launched a new segment
under Business Banking called ‘Trade line’ which caters to medium enterprises, (under the same
definition as SCB) and the range for annual turnover is nearly the same. Standard Chartered Bank
which provides services to Medium Enterprises under Corporate Banking is also a competitor of SCB.
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• Political Instability
• Submission of inaccurate financial statements from businesses
• Natural Disaster (impact greater for agriculture industry)
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2.1.

2.1.1. Company Profile & Location

Year of Establishment : 1948 (Chittagong)

Country Chief Executive Officer : Jim McCabe

Head Office : Gulshan

Nature of the organization : Multinational Company with subsidiary

Local Time : GMT + 7 Hours

Currency Name : Taka (BDT)

Population : 161.3 million (UN, 2008)

Technology : Offers full online banking from branch to

Service Coverage & Customers : Serves individual and corporate customers

2.2. The main Objective of Standard Chartered Bank

2.3. Principles of Standard Chartered Bank

• Outstanding customer service

• Effective and efficient operations

• Strong capital and liquidity

• Prudent lending policy

• Strict expense discipline

2.4. Values of Standard Chartered Bank

• Commitment to truth and fair dealing

• Hands-on management at all levels

• Commitment to quality and competence

• Fast decisions and implementation

• Putting the team’s interests ahead of the individual’s

• The appropriate delegation of authority with accountability

CEO : Chief Executive Officer

2.6. Marketing Mix of SME Banking of SCB:

2.6.2.1. Business Installment Loan

• Minimum Loan : BDT 1,000,000 (Ten Lacks) only

• Interest Rate : 19.5% per annum

• Tenor : 3 Years - 5 Years (i.e. 36 to 60 EMI payments)

• Cash Security : 30% to 50% of the loan amount

• Loan Processing Fee : 1% of the approved loan amount

• Early Settlement Charge : 5% on outstanding amount if repaid at any

given time before maturity of the loan

paid by the customer. Stamp charge will be at actual to

• Maximum Loan : BDT 7,000,000 (Seventy Lacs) only

• Minimum Loan : BDT 1,000,000 (Ten Lacs) only

• Interest Rate : 18.5% per annum

• Tenor : 3 Years - 5 Years (i.e. 36 to 60 EMI payments)

• Cash Security : 30% to 50% of the loan amount

• Loan Processing Fee : 1% of the approved loan amount

• Early Settlement Charge : 5% on outstanding amount if repaid at any given

time before maturity of the loan

be paid by the customer. Stamp charge will be at actual

be paid by the customer.

Loan Against Property

• Minimum Loan : BDT 1,400,000 (taka fourteen lac) only

• Interest Rate : 16% per annum

• Tenor : 3 Years - 10 Years (i.e. 36 to 120 EMIs payments)

• Maximum % of loan amount against market value of the property:

• Loan Processing Fee : 1.5% of the approved amount

• Valuation Fee : BDT 5000 per property

• Legal fee : BDT 7000 property

• Early Settlement Fee : 5% on outstanding amount if repaid at any given

Be paid by the customer. Stamp charge will be at

• Market coverage (inclusive, selective, or exclusive distribution)

• Specific channel members

• Selling to the customer

• Selling to the retailer

• Selling to the wholesalers

City Branch Name & Address