Company Profile

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INTRODUCTION

The Standard Chartered Group is an unusual banking business. Although its roots are clearly British, its area of operations, its network, and indeed its profit stream are overwhelmingly international. The name Standard Chartered comes from two original banks from which it was founded. One of the banks is the Chartered Bank of India, Australia and China and the other bank is the Standard Bank of British South Africa. In Bangladesh, Standard Chartered Bank is one of the leading multinational banks. To maintain its leading position in the Bangladesh, SCB has always been keen to develop longterm beneficial relationship with trustworthy clients. To achieve this end, they have always upgraded their approaches to achieve top-level performance. This up gradation is especially apparent in its HR activities. There are numerous human resource management principles (or HRMP) that seek to rectify and streamline the HR activities of an organization. Standard Chartered Bank’s HR processes, quality-wise, are one of the top-grades in the country. Among these HRM practices, training, employee participation and employee selection processes are instrumental in aiding a business thrive in its area. This research paper seeks to establish whether these three HRM practices have managed to augment the perceived organizational performance of Standard Chartered Bank (Bangladesh).

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South East Asia.ORGANIZATIONAL OVERVIEW The Standard Chartered Bank PLC is an international banking group that is incorporated in the UK. Globally. with its headquarters in London. and the Americas. Africa and the Middle East and its operation is segmented under six regions: LTK & Europe. headed by Sir Patrick Gillam as Chairman. The group focuses its activities in Asia. Corporate Banking and Standard Chartered Markets are its special strengths The global strategies of Standard Chartered Bank are: • • • To build and grow strong businesses in East and South East Asia . Board of Directors: There is a nineteen-member board. Half of the directors are non-executives. British Gas PLC.the Asia Pacific Region To enhance historical position in the MESA region To concentrate operations in the OECD in those activities that support Standard Chartered Bank's remarkable franchise in newly industrialized and emerging markets. Middle East and South Asia (MESA). Most of the board members are very eminent persons drawn from the boards of world-renowned multinationals such as Rolls Royce. etc. the key resources of SCB include: • • • A network of over 600 offices in 48 countries A staff of about 25.000 people managing assets of around 47 billion pounds Standard Chartered Bank's international businesses in Personal Banking. Page 2 of 8 .

The name Standard Chartered comes from two original banks from which it was founded.BACKGROUND OF STANDARD CHARTERED BANK The Standard Chartered Group is an unusual banking business. The bank was prominent in financing the development of the diamond fields of Kimberly from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. but were directly affected by the wider conflict of the Second World War in Page 3 of 8 . Although its roots are clearly British. tobacco in Sumatra. while the Standard Bank was founded in the Cape Province of South Africa in 1862 by John Paterson. Half of the output of the second largest gold field in the world passed through the Standard Bank on its way to London. the Standard Bank established a considerable number of branches. One of the banks is the Chartered Bank of India. followed by Hong Kong and Singapore in 1859. The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. hemp in Manila and silk in Yokohama. Both the banks. Traditional business was in cotton in Bombay. Both banks were prosperous in those early years. although they were separate entities. In South Africa. Australia and China and the other bank is the Standard Bank of British South Africa. Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome amount of profits from financing the movement of goods from Europe to the East and to Africa. its network and indeed its profit stream are overwhelmingly international. sugar in Java. With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. The Chartered Bank opened its first branches in Bombay (Mumbai). Calcutta (Kolkata) and Shanghai in 1858. its area of operations. indigo and tea in Kolkata. rice in Burma. the Chartered Bank was determined to expand and develop its business. survived the First World War and the Depression.

Sir Patrick Gillam became Chairman and he made two points clear. They were acquired by National Provincial bank Limited in 1924.terms of loss of business and closure of branches. it would focus on customer.areas in which the Group had particular strength and expertise. Further expansion also took place in Standard Chartered bank’s traditional markets in Asia and Africa. Firstly. Standard Chartered Bank begun a series of divestments notably in the US and South Africa and entered into a number of asset sales. There were also long-term effects for both banks as countries in Asia and Africa gained their independence in the 50s and 60s. National bank of India acquired Grindlays and Company in 1858 and begun to operate as National and Grindlays Limited. and on the provision of treasury services. Each bank acquired other small banks along the way and spread their networks further. The first branch was opened in India at Church Lane. Page 4 of 8 . the decision was made by both the banks to undergo a friendly merger. In 1969. History of Grindlays Bank Captain Grindlays established Grindlays and Company with partner in 1928. but a hostile takeover bid was made for the Group by Lloyds Bank of UK in 1986. All appeared to be going well. provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. In mid 1993. Standard Chartered Bank would grow and develop its strong franchises in Asia. Kolkata in 1854 and the other Indian branches autonomous from London were opened by Grindlays and Company in 1864. which again changed to Grindlays and company in 1853. The name was changed to Grindlays Christian and Mathew’s in 1839. Secondly. the Middle East and Africa using its operations in the UK and North America to provide customers with a bridge between these markets. When the bid was defeated. They decided to counterbalance their network with expansion in Europe and US. Standard Chartered Bank entered into a period of change. Like many British banks. corporate and institutional banking.

both Standard Chartered and Standard Chartered Grindlays operated under the same management but as separate entities. Until September 2002.32 billion. Standard chartered Bank has taken the advantage of the expansion opportunities. there was not any Grindlays . and has finally become successful in its expansion. Singapore and Malaysia. At that time it was also announced that the chartered Trust had been sold to Lloyds TSB for 627 million pounds. The bank has been seeking to expand in the region since the end of the Asian economic crisis. as there are advantages of getting out of a strategically peripheral business. which makes Standard Chartered Bank the leader in Hong Kong cards. emerges with additional core markets in India and Thailand. The end result is that Standard Chartered Bank. The deal has made Standard Chartered Bank the largest foreign bank by assets in India. This acquisition of Grindlays Bank has added 6000 employees and 4 countries to Standard Chartered Bank’s existing network of 7000 employees and 570 offices in 50 countries.34 billion acquisition of Grindlays Bank was completed. This made the Standard Chartered Bank the leading international bank in India and the other countries of South Asia. and put right people in right jobs on the basis of fairness and equitability. with some choice extra footholds in the Middle East. Page 5 of 8 . At 1. which went into the 1997 Asian crisis with strong business in Hong Kong. The acquisition strengthened the Group’s competitive position in Middle East and brought to the group a respected private banking business. The primary goal of the integration is to combine the best of both the banks.only Standard Chartered Bank. the US$1. With effect from September 2002.Acquisition of ANZ Grindlays Bank by Standard Chartered Bank In August 2000. the group agreed to acquire Chase’s Hong Kong consumer banking business for US$1. In September 2000. Pakistan and Bangladesh and the second largest in Sri Lanka and the United Arab Emirates. Buying Grindlays from ANZ now propels it from number five to number one among international banks in India. it is hard to complain that Standard Chartered Bank has overpaid.34 billion US dollars. The financial ease is less compelling for ANZ shareholders.

there was an organizational re-structuring. There is an overall increasing trend of Standard Chartered Bank's market share in terms of deposits and advances. opening a branch in Chittagong. where it is still headquartered. the market share in terms of advances was 20%. with the controlling office in Dubai. The largest increase of 438% took place in 1991. Standard Chartered Bank's worldwide network facilitates convenient connections with foreign trade and remittance business. which led to a substantial expansion of the Bank's business. It increasingly invested in people. the market share of Standard Chartered Bank increase 16% in 1995 to 18% in 1996. Standard Chartered Bank's branch banking license in Bangladesh allows it to offer a full range of banking services. After the merger of the Chartered Bank with the Standard Bank in 1969. the largest bank in Bangladesh. gives its customers access to all major centers in the country. The Chartered Bank opened another branch in Dhaka in 1966. In 1993. In terms of profit before taxes. Today the bank has in total four branches in Dhaka apart from the Chittagong branch. Standard Chartered Bank's growth in terms of profit and market share depicts an overall positive trend. there is a rise from eight million BDT in 1990 to its highest amount of 750 million BDT in 1998. Since the organizational restructuring in 1993. which peaked to 29% in 1996 and fell by 3% in 1997. Although the growth rate began to decline gradually from 1993 (from a 170% to 5% in 1998) the overall increase reflects a substantial positive trend. In the case of deposits. Its correspondent relationship with Sonali Bank. and increased by another 2% in1997. technology and premises as its business grew in relation to the country's economy. Bangladesh is under the MESA region. Page 6 of 8 . the amount of deposits and loans in 1997 has increased by more than five times. including an offshore branch at the Savar Export Processing Zone. In 1995.STANDARD CHARTERED BANK IN BANGLADESH The Chartered Bank started operating in Bangladesh in 1948. the Standard Chartered Bank took up a program of expansion. The branch was opened mainly to facilitate the post-war reestablishment and expansion of South and Southeast Asia.

An integration team from Standard Chartered Bank in London is to come time to time in Dhaka to settle the process of the acquisition of the ANZ Grindlays Bank. The team comprising of officials from both Standard Chartered and Grindlays are working on staff and branch rationalization.After Acquisition: This acquisition has made Standard Chartered/Standard Chartered Grindlays bank the largest foreign bank in this country. corporate advisory services and personal banking. there may be some changes and redundancies in the higher level. There are places where both SCB and SCGB have branches and there are other places with perceived demand for branches. But those who will have to leave will get a handsome compensation package. telebanking. Grindlays is the market leader in credit cards. But the whole process will take about one and a half years and meanwhile both the banks will continue to work as legal entities. Though there may not be many changes at the lower and mid-levels of the banks. Page 7 of 8 . but the Bangladesh Bank does not want to give permission for opening any new ones. Standard Chartered Bank after acquiring Grindlays expects to relocate its own and acquired branches upon regulatory consent. the business is kept going to provide uninterrupted customer service and to deliver the desired results. SCB. The integration was comprehensive and is being managed as a distinct process. known for its technological edge is the forerunner in automated teller machines. Meanwhile. treasury and lately corporate banking solutions.

the bank has a formidable efficiency in the operational areas in which it operates.“We want to make money in ethical way but we also want to address the very fact that there are people who are less fortunate than us and needs help. Chris Keljik during his Dhaka entourage in August 2003. Mr.MISSION SCB Bangladesh operates with the same mission as the group SCB subscribes to worldwide.” Since SCB as a bank caters to the higher echelon of the society. The bank in Bangladesh has the best and dedicated human resources in the privet sector banking. With an experience of 150 years. Quoting him in verbatim. The underlying factor on its business mission is manifested by its five values: “Responsive. International. Responsive and Courageous. Trust Worthy. This credo of the bank is categorically expressed by the Group Executive Director. Page 8 of 8 . It has the dedicated attitude toward the community in which it operates and it wants to grow and flourish along with its customers and community. its operational strategies relies on trust and confidence building with the customers and offer them the highest sense of security and confidentiality. The bank has a mission to build and grow on its 150 years of experience and the positive image that it has earned over the years. So we have a mission to ensure good corporate governance with sound development of human resources to build a solid workforce to attain our objectives and give back to society by involving ourselves with them”.

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