DEDICATION

THIS HUMBLE EFFORT

IS DEDICATED TO
MY LOVING FATHER
WHOSE GUIDANCE HAS
MADE ME
WHAT I AM
&
MOTHER
WHO’S LOVE & AFFECTION INSPIRED ME
TO LOVE
MANKIND
&
TEACHERS
WHO DID THEIR BEST
TO BRING ME UP
AND
TAUGHT
THE LESSON OF HUMANITY…
 ACKNOWLEDGEMENT

First of all I am thankful to Almighty Allah for granting me the courage,

determination, will & resources to undertake this Internship report on
"STANDARDCHARTERED BANK".

I would also like to express my deepest & sincere gratitude to my internship guide
Prof. Dr. Mohammad Ayoob Shaikh Institute of Commerce, University of Sindh,
Jamshoro. Whose invaluable guidance, cooperation and constructive criticism helped me in
preparation of this Internship Report.

I am also sincerely Thankful to Mr. Ali Zaidi (Branch Manager), Syed Mudassar
Hussain Shah (Sr. Collection Officer) and all employees of organization, who cooperated
in well manner during the completion of this Business Internship Report.

Muhsin Ali Brohi

M.Com (P) Final
2K6/COM/31
 CONTENTS

CHAPTER#1 INTRODUCTION OF BANKING

 Origin of Banking
 History of Banking
 Banking sector in Pakistan
 Banking structure in Pakistan

Chapter#2: INTRODUCTION OF STANDARD CHARTERED BANK

 About Standard Chartered Bank
 Mission statement of Standard Chartered Bank
 Overview of Standard Chartered Bank
 Methodology
 Limitations

Chapter#3: BRANCH NETWORK AND ORGANIZATIONAL FRAME WORK

 Standard Chartered Bank Branches in Pakistan
 Organizational Structure of Standard Chartered Bank
 Our Operations
 Board of Directors
 Organizational Chart or Hierarchy

Chapter#4: GENERAL BANKING

 Liability Products
 General Services

Chapter#5: CONSUMER BANKING

 ATM Services
 Debit Card
 Credit Card Services
 Cash Deposit Machines
 Mobile Phone Banking
 Phone Banking Services
 Personal Loans
Chapter#6: FINANCIAL HIGHLIGHTS
 Balance Sheet
 Profit & Loss Account
 Cash Flow Statement
 Changes in Equity

Chapter#7: REPORTING
 Auditor's Report to the Directors
 Auditor's Report to the Members

Chapter#8: CONCLUSIONS AND SUGGESTIONS

 Conclusions
 Suggestions
 Reference
 INTRODUCTION OF BANKING

ORIGIN OF BANKING
Some authors opine that the word "BANK" is derived from the Italian word "Banque"
which means a bench. The other point of view is that it has been originated from German
word "Banc" which means a Joint stock firm.
Later on when German occupied major part of Italy, the word was Italianized into "Bank".
The explanation of this origin is attributed to the fact that Jews in Lombardy Transacted the
Business of money of exchange on benches in the market place and when the business failed,
the people destroyed the "Banc". Incidentally the "Bankrupt" is said to have been evolved
from this practice. (Siddique 1988)

It is therefore not possible to decide as to which of the opinion is correct, for no

record is available to ascertain the validity of any of the opinions.
Banking is in fact as a primitive human society, forever since man can realize the importance
of the money as a medium of exchange, and the necessity of a controlling or regulating
agency or Institution was naturally felt. (Siddique 1988)

HISTORY OF BANKING SYSTEM

The Babylonians were the first, who developed banking system in 2000 B.C. it is
evident that the temple of Babylon were used as "Banks" because of prevalent respect and
confidence in the clergy. King Hammurabi (1668-1728 B.C) founder of the Babylonian
Empire drew up a code, wherein he laid down standard rules of procedure for banking
operations by temples and great landowners. He got his code inscribed on a block of diorite
about 8 feet tall, containing about 150 paragraphs, which deal with nearly all respects of
loans, interest, pledges, guarantees, natural incidents, loss, theft etc.
Later on Sumerians, Babylonians, Hittites & Assyrians standardized the value of money into
gold, silver, copper, bronze or electrum. (Siddique 1988)
The history records that Gyges, King of Lydia, caste electrum (a natural alloy of gold &
silver) ingots of identical shape and uniform weigh with a triple emblem engraved on it as an
official guarantee of the value in 687 B.C
Also in the Greece, the temples of Ephesus and Delphi were the biggest Banks of
their time, where the people deposited their money and other valuables for the safe and
secured custody as the first acted financial agents.
 The Romans, though they did not organized banking, nevertheless regulated the
conduct of private banks in such a way that almost confidence of the people crated in them,
However with the 'Revival of civilization' in the middle of twentieth century, trade and
commerce started expanding and this development compelled the business community to
borrow money from the Hebrew money lenders on high rates on interest and usury. (Siddique
1988)
In 1404 a German Public Bank was formed comprising the operations of discounting,
deposit, and transferring of money. In order to streamline banking organization and
techniques, conferences were held in Nuremberg from 1548 to 1551 and it was agreed that
the commercial interest of the time needed a bank with facilities of growth and transfer.
Similarly in 1960, the Bank of Hamburg came into existence in Hamburg with
business of accepting deposits of fine Silver or of foreign moneys and to run accounts in
these deposits.
This bank rendered great service to merchants as well as the countries it dealt with
until 1873, when it was merged with the Reich bank. (Siddique 1988)

BANKING SECTOR IN PAKISTAN

In 1947, there were no industries and whatever raw material was produced being
exported from Pakistan; however commercial banking facilities were provided well here.
There were 487 of scheduled banks in the territories now constituting Pakistan, as a new
borne country it was difficult for Pakistan to run its own banking system immediately after
partition, Therefore, in accordance with the provision of Indian independence Act of 1947, an
Expert Committee was appointed to study the issue. The committee recommended that the
Reserve Bank of India should continue its functions in Pakistan until 30 th September 1948, so
that the problems of time & demand liability, coinage currencies, exchange etc, be settled
between India & Pakistan, also would take over the management of public debt control from
Reserve Bank of India on 1st April, 1948 and Indian notes were continue to be legal tender in
Pakistan till 30th September 1948.
There were 19 Non Indian foreign banks with the status of small branch offices,
which were engaged solely in export of crops from Pakistan, The panic of uncertain future
shook the confidence of the people; the Government therefore promulgated the Banking
Companies Ordinance 1947, to safeguard the interests of both the bankers and the customers.
The Imperial Bank of India, which had been acting as the agent of the Reserve Bank
of India, closed down most of its offices in Pakistan, and also was not willing to purchase
even token amounts of Government of Pakistan securities on the plea that these activities
were not marketable. Therefore it was agreed between both governments to advance the date
from 30th September 1947 to 30th June 1948, up to which dates the Reserve Bank of India,
could serve as the monetary authority in Pakistan.
On July 1st 1948, The Governor General of Pakistan Quaid-e-Azam Mohammad Ali
Jinnah inaugurated the "State Bank of Pakistan" The first important task which the (SBP) had
to meet with the issue of currency notes & withdrawal of Indian notes with over printing,
there of Government of Pakistsan, which had been in circulation in Pakistan so far, The first
notes were issued in October 1948 in denominations of 5, 10 and 100. (Siddique 1988)

BANKING STRUCTURE IN PAKISTAN

At present banking structure in Pakistan comprises of the following:
 STATE BANK OF PAKISTAN:
This bank is working as a central bank of the country with its offices at
Karachi, Lahore, Peshawar, Hyderabad, Sukkur, D.I Khan, Quetta, Faisalabad,
Rawalpindi, Islamabad, Multan, Gujranwala & Sialkot.
 COMMERCIAL BANKS:
Commercial banks have been the most effective mobilizes of savings and
have been providing short-term requirements of working capital to trade, commerce
and industry.
According to the provisions of the Banks Nationalization Act 1947, all the
commercial banks were recognized and merged into the following five banks:
1. Habib Bank Limited.
2. United Bank Limited.
3. National Bank of Pakistan Limited.
4. Muslim Commercial Bank Limited.
5. Allied Bank Limited of Pakistan.
 Exchange Banks:
Foreign banks other than Indian Banks have been commonly known as
"Exchange Bank" due to the fact that prior to Independence, foreign banks in the
Indo-Pak sub continent were engaged primarily in the finance of foreign trade. At
present following banks are operating in Pakistan. (Asrar.H.Siddique 1988)

1. ABN-AMRO Bank N.V

2. American Express International Banking Corporation.
3. Bank of America NT & SA.
4. Bank of Tokyo Ltd.
5. Bank of Oman Ltd.
 6. Chase Manhattan Bank Ltd.
7. Citibank N.A.
8. Deutsche Bank A.G.
9. Emirates Bank International Ltd.
10. Masraf Faysal al-Islamic of Bahrain.
11. ANZ Grand lays Bank Ltd.
12. Hong Kong Shangai Banking Corporation.
13. Indosuez French Bank.
14. International Finance Investment Bank Ltd.
15. Middle East Bank.
16. Rupali Bank Ltd.
17. The Standard Chartered Bank Ltd.
18. Union Bank of Middle East.
19. Doha Bank.
20. Pan African Bank Ltd.
21. Habib Bank A.G Zurich.
22. Societe General, the French International Bank.

 CO-OPERATIVE BANKS:
These Banks aims at the Promotion of thrift, self-helped and mutual aid
amongst agriculturists and others with common economic needs so as to bring about
better methods of promotion & production. (Siddique 1988)
 SAVING BANKS:
There is only one saving bank in Pakistan i.e. post office saving bank and the
government of Pakistan wholly control that.

 SPECIALIZED CREDIT INSTITUTIONS:

These institutions are generally government sponsored corporations and
provide medium and long term finance to various sectors.
 INTRODUCTION OF STANDARD CHARTERED BANK

ABOUT STANDARD CHARTERED BANK

[Standard Chartered-Leading the way in Asia, Africa and the Middle East]

Standard chartered bank in Pakistan enjoys a unique position as the oldest and the
largest international bank in the country, with a presence in this region of over 150 years.
Standard Chartered is proud to contribute towards the development of Pakistan's
economy.
Our commitment to this country is absolute, with a presence of over 150 years in the
industry; we are able to fully leverage our international capabilities and product expertise.
Our deep local knowledge and understanding are important enablers in the provision of
sophisticated solutions to our customers.(Badar Kazmi, Chief Executive Officer of Pakistan,
Standard Chartered)
 In Pakistan, Standard Chartered has a network comprising 20 branches and 29
automated teller machines (ATMs) of which six are situated at offsite locations. Present in all
the major cities of Pakistan, Standard Chartered is a leader in credit cards & personal loans,
Standard Chartered is also the leading provider of cash management, trade finance and
treasury products and services in Pakistan.
Standard Chartered has been providing banking services in the region for over 150
years, with an annual turn over of PKR4.51 Billion. The banks return on equity for the past 3
years is as follows:
2001: 15.02%
2002: 17.08%
2003: 26.50%
Focusing on both consumer & wholesale banking customers, the bank employs 600
people locally across 8 cities.

 CONSUMER BANKING:
Consumer Banking serves more than 14 million customers across Asia, Africa and
the Middle East where we have the competitive advantage to build significant market
positions while delivering strong financial performance. Consumer banking provides
credit cards, personal and auto loans, deposit taking, wealth management and 24 hour
phone banking services to individuals and small/medium sized businesses.
 WHOLESALE BANKING:
Wholesale Banking supports corporate and institutional clients with services
in trade finance, cash management, lending, securities, foreign exchange, debt capital
markets and corporate finance.
Wholesale banking comprises two areas:
Client Relationships and Global Markets.
Client Relationship provides trade finance, cash management and lending services,
whereas, Global Markets provides foreign exchange, debt capital markets services
and financial risk management and interest rate management products.
The bank also provides Islamic financing & leasing facilities through the
Banks Modarabas. Standard Chartered Modarabas enjoys the highest rating assigned
to any Modarabas in Pakistan, A2, by Pakistan credit Agency (PACRA) indicating
outstanding financial condition with a consistent record of above average
performance.
During 2003, the bank experienced major expansions, some of which are:
  Launch of Standard Chartered PIA co-brand cards, card members are now able to
enjoy both, the excellent services & privileges of Standard Chartered Visa card as
well as a wide array of travel privileges and benefits from the PIA's frequent flyer
program called the awards plus. This new product is available to both existing and
new card members.
 Standard Chartered bank re-vamped its Clifton branch in Karachi, which reflects
Standard Chartered's latest "Financial Spa" concept.
 Launch of Iraq-Standard Chartered's first Banc assurance initiative was launched in
May.
 Launch of Easy Credit, Easy Credit is a credit card with the convenience of cheque
book.
 An agreement was signed between Standard Chartered and Union Bank to facilitate
all customers to pay their utility and mobile phone bills through Standard Chartered's
bill pay centers.
 Sui Southern Gas Company limited (SSGC) awarded stub collection and data
processing mandate to Standard Chartered for covering Sindh and Balochistan.

Standard Chartered employs more than 30,000 people in over 500 locations in more than
50 countries in the Asia Pacific region, South Asia, the Middle East, Africa, and the United
Kingdom & United States.
It is the one of World’s most international banks, with a management team comprising 70
nationalities.
Standard Chartered is listed on both the London Stock Exchange and the Stock
Exchange of Hong Kong and is top 25 FTSE-100 companies, by market capitalization.
It serves both Consumer and Wholesale banking customers, Consumer Banking
provides credit cards, personal loans, mortgages, deposit taking and wealth management
services to individuals and small to medium sized enterprises. Wholesale Banking provides
corporate and institutional clients with services in trade finance, cash management, lending,
securities services, foreign exchange, debt capital markets and corporate finance.
Standard Chartered Bank is well-established in growth markets and aims to be the right
partner for its customers. The Bank combines deep local knowledge with global capability.
The Bank is trusted across its network for its standard of governance and its
commitment to making a difference in the communities in which it operates.

MISSION STATEMENT OF STANDARD CHARTERED BANK:

“To be the best International Bank”
OVERVIEW OF STANDARD CHARTERED BANK:

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 capitalise 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

 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

 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.
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 the two original banks from which it was
founded.
The Chartered bank of India, Australia and China and the Standard Bank of British South
Africa.
The Chartered bank was founded by "James Wilson" following the grant of a Royal
Charter by Queen Victoria in 1853, while the Standard bank was founded in the cape
province of South Africa in 1863 by John Paterson, 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 East and to Africa.
In those early years, both banks prosper Chartered opened its first branches in
Bombay, Calcutta and Shangai in 1860, followed by the Hong Kong and Singapore in 1861.
With the opening of Suez canal in 1869 and the extension of the telegraph to China in 1871,
chartered was well placed to expand & develop its business.
Traditional business was in cotton from Bombay, indigo and Tea from Calcutta, rice
in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk in Yokohama.
In South Africa, Standard, having established a considerable number of branches 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.
Half of the out put of the second largest gold field in the world passed through the
Standard Bank on its way to London.
Both bank at that time still quit separate companies survived the first World War and
the depression, but were directly affected by the wider conflict of the second World War in
terms of loss of business and closure of branches, there were also longer term effects for both
banks as countries in Asia and Africa gained their independence in '50 and '60s.

Each had acquired other small banks along the way and spread their networks further
in 1969, the decision was made by Chartered and by Standard to under go a friendly merger,
they decided to counter balance their network with expansion to in Europe and the United
States, further expansions also took place in Standard Chartered traditional markets in Asia
and Africa, all appeared to be going well; when a hostile takeover bid was made for the
group by Lloyds bank of the United Kingdom in 1986.
 When the bid was defected, Standard Chartered Bank entered into a period of change,
like many British banks, provisions had to be made against third world debt exposure and
against loans to corporations and entrepreneurs, who could not meet their commitments.
Standard Chartered began a series of divestment notably in the United States and South
Africa and also entered into a number of assets sales.
In mid 1993, Sir Patrick Gillam became chairman, he made it clear that Standard
Chartered would grow and develop its strong franchises in Asia, Middle East and Africa
using its operations in United Kingdom and North America, 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 in areas, in which the group had particular strength and
expertise.
In August 2000, the US$ 1.34 billion acquisition of Grand lays bank was completed,
this made Standard Chartered the leading International Bank in India and other countries of
South Asia, Strengthened the group's competitive position in the Middle East and brought to
the group a respected private banking business.
In September 2000, the group agreed to acquire chase's Hong Kong consumer
banking business for US$ 1.32 billion, which makes Standard Chartered the leader in Hong
Kong cards, at that time it was also announced that Chartered Trust had been sold to Lloyd
TSB for 627 million.
METHODOLOGY:
While preparing this business internship program, the internees have used following
method of study, the method of study involved the use of primary and secondary data, which
were drawn from the Banking documents, various circulars and library sources. Among other
sources of information, primary data are important, which were collected from the officials
of Standard Chartered Bank during the tenure of internship.
Documentary sources include audited annual report of the bank, during this period,
interviews with seasoned executives of the bank were conducted and their valuable
suggestions and responses have also been incorporated during writing of this report.

LIMITATIONS:
While undergoing this internship program standard Chartered Bank, following difficulties
and problems were experienced by the internees.
1. This report has been prepared in the light of available data whatever could be made
available in a limited time as well as personal discussion with executives, working in
Standard Chartered Bank Ltd.
 2. Shortage of time.
3. Lack of access of data at S due to secrecy of Bank.
4. Maximum efforts have been put in exercise of originating, collection, completion of
precise data.

BRANCH NETWORK & ORGANIZATION

Head Office
Standard Chartered Bank
I.I Chundrigar Road, P.O.Box 5556, Karachi-74000,
Tel: +92 21 2450000

Beside the Main head office in Karachi, Standard Chartered Bank has its branches in various
cities of country like:
 Abbotabad
 Azad Kashmir
 Faisalabad
 Gujranwala
 Gujrat
 Hyderabad
 Islamabad
 Jhelum
 Karachi
 Kasur
 Lahore
 Mardan
 Multan
 Peshawer
 Quetta
 Rahimyar Khan
 Raiwand
 Rawalpindi
 Sahiwal
 Sargodha
 Sheikhupura
  Sialkot
 Swat
 Vehari
 Wah Cantt.
ORGANIZATIONAL STRUCTURE
OF STANDARD CHARTERED BANK

The management team comprises experienced banking professionals well positioned

to meet Metropolitan's business objective, senior bankers have been inducted to head various
divisions organized around core business, such as foreign trade. Credit, structured finance
and treasury activities, the bank has also hired several qualified middle and lower
management personnel to create a team of professionals at all levels.

OUR OPERATIONS
 Standard Chartered operates in every Asia Pacific market with the exception of North
Korea and some other 60% of the group's profit comes from the Asia Pacific Region.
 Hong Kong continues to be of major importance to the group and contributes over
30% of total profit, with around 80 branches in Hong Kong and strong representation
in China.
 Standard Chartered- a note issuing bank in Hong Kong, is well placed to continue
playing an important prating greater China's development.
 The group's business there is managed by resident group Executive Director.
 Consumer banking, corporate and Institutional banking are managed out by
Singapore office, a group of Executive Director resident in the Island state, other East
Asian countries note for the group are Malaysia, Thailand where, in 1999, the bank
acquired a 7% interest and management control of bank Nakornthon and Taiwan.
 Standard Chartered is the leading international banking sub-Saharan Africa, operating
in several countries, the most prominent bank in Kenya, Zambia, Zimbabwe,
Botswana and Ghana.
 The group's operation in the Gulf and South Asia are managed from Dubai.
 Consumer banking, which has some 5 million customers significantly in recent years
and contributors about 50% of total profits. Major initiatives supporting the rapid
development of the credit card business in the exciting markets of India, Indonesia,
Taiwan and Pakistan. Corporate and Institutional banking, its principal strengths are
in supporting regional and International cross border and investments. Product and
services are focused primarily on these areas, notably trade banking, cash
management and custody.
  Institutional banking manages the group's relationships with bank, Investment
companies and other financial institutions.
 It aims to be the "banker's bank" operating in customer's time zone and providing
network linkage between international markets. This business has continued to
expand rapidly in Asia, the Middle East, and Africa and in Latin America; it was
strengthened in March 1999 by the acquisition of the trade finance operation of USB.
 Treasury operations area particular group strength with a network of 20 dealing
rooms world wide, offering customers round the clock service, the bank is
particularly well known for its expertise in exotic currencies and has reinforced its
position as a lade in many Asian and African markets.

BOARD OF DIRECTORS:

1. BAYAN KAYE SANDERSON

(CHAIRMAN)

2. EVAN MERVYN DAVIES

(GROUP CHIEF EXECUTIVE)

3. MICHAEL BERNARD DENOMA

(GROUP EXECUTIVE DIRECTOR)

4. CHRISTOPHER AVEDIS KELJK

(GROUP EXECUTIVE DIRECTOR)

5. KAIKHUSHRU SHIAVAX NARGOLWALA

(GROUP EXECUTIVE DIRECTOR)

6. PETER SANDS
(GROUP EXECUTIVE DIRECTOR)

7. RICHARD MEDDINGS
(GROUP EXECUTIVE DIRECTOR)

ORGANIZATIONAL CHART:

The organizational chart is defined as," a clear set of relationship among the members of an
organization". This relationship is the management hierarchy, this chart shows that who is
responsible for what, and who has to report whom. The organization chart also describes the
major division of work it means how the company is organized into sections and sub
sections, it sets the routs along which information flows.
 GENERAL BANKING

LIABILITY PRODUCTS:
1. Rupee Current Account.
2. Super Save Account.
3. Rupee Term Deposits.
4. Foreign Currency Accounts.
5. Privilege Accounts.
6. High Yield.
7. Flexi Accounts.
8. Tijarat Accounts.

GENERAL SERVICES:
1. Receiving Deposits.
2. Payments of Funds.
3. Demand Drafts.
4. Clearing.
5. Online Banking.
6. Foreign Currencies.
7. Transfers.

LIABILITY PRODUCTS
Rupee Current Accounts
The quick and easy way to pay by unlimited cheques.
Why carry large sums of money, open a Pak Rupee current and enjoy the
convenience of being able to pay your bills and make purchases quickly and simply-
whenever you want,
If you are an Individual Pak Rupee account holder, you will also have access to 24
hour banking through our ATM's and phone banking.

At a glance
 Non interest bearing checking account.
 Minimum account opening requirement PKR 50,000.
 Over draft facility.
  ATM card provides access to funds 24 hours a day and can be used on all
MNET and 1-Link ATM's across Pakistan.
 ATM Card can be used as a Debit Card to make purchases at thousands of
outlets across Pakistan.
 24 hour phone banking.
 Account accessible from 20 online branches across Pakistan.

Super Save Accounts

As your balances climb, so does your rate of return.
Standard Chartered's PKR saving account, super save, gives you full access to
your savings at any time, and thanks to a tiered rate structure, you earn higher returns
on higher balances. What could be more rewarding? Furthermore, you also qualify
for a host of other services.

At glance
 Minimum opening balance requirements as low as PKR 50,000.
 Higher returns on higher balances.
 ATM card provides access to funds 24 hours a day and can be used on all
MNET & 1-Link ATM's across Pakistan.
 Round the Clock phone Banking.
 Account accessible from 20 online branches across Pakistan.

Rupee Term Deposits

Flexibility that's made to measure.
You'll find our rupee term deposits so flexible, you'll think they were made to
measure- just for you. With a perfect match of regular income and attractive returns,
Standard Chartered Bank's rupee term deposits are available in 1,3,6 months and 1,2
and 3 years tenors.

At glance
 Attractive returns.
 Flexible deposit periods.
 Choice of monthly, quarterly, semi-annual or annual profit payments.
 Automatic renewal of deposit.
 Free 24-hour phone banking.
 Minimum requirement for placement of term deposits is PKR 200,000.
Foreign Currency Accounts
In addition to PKR deposits, Standard Chartered also offers current, savings
and term deposit accounts in foreign currency.
Accounts can be opened with a minimum of US$10,000 or equivalent in US$, Pound
Sterling, Euro.

Privilege Accounts
The king of accounts offers you liquidity and growth at the highest rank ideal
for individuals, Standard Chartered's Privilege Account offers you the dual
advantages of earning profit without sacrificing liquidity.
Now you have full access to your savings at all times, and thanks to a tiered
rate structure, you earn higher returns on higher balances.

At glance
 Minimum account opening requirement PKR 500,000.
 Higher returns on higher balances.
 Profit paid monthly.
 Profit calculated on minimum monthly balance.
 ATM card provide access to funds 24-hours a day and can be used on all
MNET & 1-Link ATM's across Pakistan.
 ATM card can be used as a Debit card to make purchases at thousands of
outlets across Pakistan.
 Access to over 100 ATM's across Pakistan through MNET 24-hour phone
banking.
 Account accessible from 20 online branches across Pakistan.

High Yield Accounts:

Enjoy the dual advantage of a current and savings account, Ideal for
businesses that have high transaction volumes, the high yield account offers liquidity
and returns for those who need flexibility.

At glance
 Minimum account opening requirement PKR 500,000.
 Higher returns on higher balances.
 Profit calculated on daily balances.
 Profit paid monthly.
 ATM card provides access to funds 24-hours a day and can be used on all MNET
& 1-Link ATM's across Pakistan.
 24-hours phone banking.
 Account accessible from 20 online branches across Pakistan.

Flexi Accounts
The flexible way to build your salary with more savings, more gains. The
most flexible account ever for individuals, who want more value from their salaries.
Flexi has no minimum balance requirement, plus a host of other advantages to suit
your needs.

At glance
 No minimum balance requirement.
 Profit calculated daily and credited monthly.
 ATM card provides access to fund 24-hours a day and can be used on all MNET
& 1-Link ATM's across Pakistan.
 ATM card can be used as a Debit card to make purchases at thousands of outlets
across Pakistan.
 24-hour phone banking.
 Account accessible from 20 online branches across Pakistan.
 Monthly charge of Rs.150/-

Tijarat Accounts
The current account that's especially designed for business, access your
account from 20 online branches nationwide. Standard Chartered's Tijarat account, is
the ideal way to support your business with so many services especially packaged for
your convenience, security and flexibility.
Tijarat ensures that the success of your business is our business.

At glance
 Tijarat account can be opened with a minimum balance of PKR 100,000.
 Online banking with bonus waivers- thanks to our online connectivity you can
access your account from any of our 20 branches free of cost (up to a specified
limit)
  ATM card provides access to funds 24 hours a day and can be used on all MNET
& 1-Link ATM's across Pakistan.
 24-hour phone banking plus Enjoy cash pick-up facility (fee based)

GENERAL SERVICES

Receiving Deposits:
Standard Chartered Bank receives deposits in cash or cheque on long term,
medium term and short term basis and pays some rate of interest.

Payments of Funds:
Standard Chartered Bank makes payment of funds as per customer demand.

Demand Draft:
Standard Chartered Bank provides demands draft facility to its customers.

Clearing:
IBC:
Stands for "Inward Bills Collection" those cheques which we received other
bank to other city, when our branch which collect the cheque then sent to
Branch where cheque drawn, to sent when the Branch cheque received that's
called Inward bills Collection and then branch send to the same in local
clearing for clearance the same.

OBC:
Stands for "Out word Bills Collection" those cheques which are of other banks
of Hyderabad branch are received by Standard Chartered Bank's branches of
other cities then branch send them to Hyderabad branch, then branch send
them to State Bank through NIFT (National Institute of Facilitation Trust) and
clear them.

Online Banking:
Through Standard Chartered Bank, customers can transfer their funds from
one Account to another within the same city branches or country wide.

Foreign Currency:
 Standard Chartered Bank receives deposits and makes payments in Pakistani
Rupee as well as in foreign currency and provides foreign exchange.

Transfers:
Standard Chartered Bank provides facility of transfer of amounts from one's
account to another's.

CONSUMER BANKING

 ATM Services.
 Debit Card Services.
 Credit Card Services.
 Mobile Phone Banking.
 Phone Banking Service.
 Personal Loans.
 Cash Deposit Machines.

ATM SERVICE
Enjoy fast and convenient banking round the clock.
Here's your chance to enjoy super convenient banking 24 hours a day, 7 days a week. With a
network of over 200 ATM's country wide, Standard Chartered provides you with the highest
standards of banking service round the clock.
Cash Withdrawal:
You can withdraw cash 24 hours a day, 7 days a week.
Apply for your daily cash withdrawal limit from your branch depending on your
requirements.
Cash or Cheques Deposits:
You can now deposit cheques at selected Standard Chartered ATM's, simply use the
securely designed deposit envelopes.
You can also use the deposit envelopes to rely written instructions to the bank regarding
any one of your accounts.
Mini-Statement:
Our ATM's will provide you an instant mini-statement of your last 10 transactions; you
can know recent credits and debits in your accounts.
Cheque Book Request:
Your request for a cheque book is processed at the push of a button, which you can
collect from your branch within 3 working days.
Statement Request:
You can also request your statements from any of our ATM's.

Funds Transfer:
You can transfer funds from one account to another, within the same relationship; Up to
3 accounts can be linked with your ATM card.
Pin Changing Facility:
Your ATM lets you change Personal Identification Number (PIN) at anytime if you
believe your PIN is known by someone else. This facility ensures complete secrecy of
your PIN at all times. An ATM card is yours if you maintain a Standard Chartered Pak
Rupee Current or Savings account and meet the bank's minimum balance requirements.
Joint account holders can also have ATM cards provided to them with signatory
authorized to operate the account, further supplementary card can also be issued for the
second account holders.
MNET: (The new way to greater convenience and accessibility)
 You can now access over 200 additional ATMs across Pakistan to withdraw cash and
inquire about you balances. Just look for any ATM bearing the MNET sign for 24 hours
accessibility and super convenience.
Terms & Conditions:
All ATM cards are issued subject to the terms and conditions of the bank from time to
time, for details, please refer to the ATM application form, which is available at our
branch.

DEBIT CARD SERVICES

Now use your existing Standard Chartered ATM card to withdraw cash or make
purchases anywhere in Pakistan!

Standard Chartered ATM Card means a lot more than just ATM access. The next you Shop,
dine or fill your car with fuel, you can use your existing Standard Chartered ATM Card as a
Debit Card to make purchases at thousands of outlets across Pakistan, thus eliminating the
hassle of carrying cash. So take advantage, make the most of your ATM Card.
Make a purchase:
Just look for the Standard Chartered or ORIX logo, to find a merchant outlet that
welcomes your card.
Daily purchase limit:
Your daily purchase limit is Rs.100, 000 (Subject to availability of funds in your account)
Your daily purchase limit can be enhanced to Rs.1, 000,000.

Make a withdrawal at an ATM:

You can access any Standard Chartered ATM or any other ATM displaying the 'MNET'
or '1-link' sign, to withdraw cash and to avail many services 24 hours a day, 7 days a
week.
Daily Withdrawal limit:
Your daily cash withdrawal limit may vary from Rs.15, 000 to Rs.50, 000 depending on
the limit assigned to you by the bank.

CREDIT CARD SERVICES

o Standard Chartered VISA/SCB PIA Co brand Credit Cards.

o Standard Chartered Master Card.
o Standard Chartered Easy Credit.
 o Standard Chartered perks and pay.

MOBILE PHONE BANKING.

Banking at your fingertips…
You can now enjoy all the ease, convenience, privacy and security of banking through your
mobile phone, just register your mobile phone number with Standard Chartered and receive
updated information through text messages on your cell phone.
To use this service, Ufone and Mobilink registered customers simply have to send their
request to~
Bringing convenience ever closer- now in the palm of your hands, you can enjoy these
services at any time, any where.

Credit cards:
 Check your available credit limit.
 Find out your outstanding balance.
 Inquire about the payment due date and amount payable.
 View last 5 transactions.
 Request a statement through (FAX) or e-mail.

Branch Banking:
 Inquire about your account balance.
 Easy access to your mini-statement of the last 5 transactions made.
 Request a statement through (FAX) or e-mail.

Others:
Services include requesting change of personal Identification number (PIN) for security
reasons.

Help:
24-hours help line for information on how to utilize these services.

PHONE BANKING SERVICES.

Enjoy financial flexibility that enables you to manage your wealth conveniently…
As a leading foreign bank in Pakistan, we always strive to upgrade and diversify our services,
to help your wealth grow in a convenient and flexible way.
Opening a new chapter of convenience and care, now you have 24-hours, 7 days a week
access to our phone banking services.
You can directly talk to our customer service representatives any time, anywhere, as if you
are having a face to face consultation at our branches, or have access to our self- service
banking. You will find a friend to help you regarding banking information, the way you
want.

Providing you more access and convenience:

You can now enjoy the following services any time, anywhere via our Phone Banking
Services.
 Account Related:
 Balance enquiries.
 Transaction details.
 Profit, Interest and exchange enquiries.
 Transfer of funds.
 Pay order/ demand draft issuance.
 Term deposit booking/ encashment.
 ATM card re-generation, damaged card replacement.
 Cheque book request.
 Duplicate statement.
 Link account opening.
 Cheque stop payments.

 Personal Loans Related:

 Outstanding loan amount.
 Top up enquiry.
 Product information.
 Application status.
 Copy of repayment schedule.

 Auto Loans Related:

 Outstanding loan amount.
 Early settlement enquiry.
 Interest rate enquiry.
  Insurance procedure/ rate.
 Application status.
 Balance certificate.
 Copy of amortization table.
 Registration book enquiry.
 Tax certificate required.

 Credit Cards Related:

 Application status.
 Credit limit enquiry.
 Limit enhancement.
 Transaction enquiry.
 Payment enquiry.
 Balance transfers/ dial a draft.
 Card activation.
 Card re-generation/ damaged card replacements.
 Disputed transactions.
 Statement generation.
 Access a host of other facilities and enjoy these convenient services.

PERSONAL LOANS.
Age:
Minimum Age - Self Employed -23
Minimum Age – Salaried -21

Tenor:
MINIMUM INCOME
SEGMENT REQUIREMENT
Salary Net Average Balance
A & B Co. 10,000
Prime Customers 150 K (Gross) 200 K SCB
400K Non.
A & B Cont. 15,000
C Listed Co. 12,000
Unapproved 12,000
Govt. 15,000
Armed Forces 15,000
Self Employed 20,000
SCB Salary 10,000
 Salary to include Basic, House Rent Allowance, Utility Allowance, Conveyance
Allowance and Cola.

Any recurring allowances will be added to salary income – minimum- two salary slips are
required (provided that the amount is consistent)

If YTD salary details are being reflected on salary slip, other allowances must be considered
as well.

Salary credits without specific narration in the bank statements can also be considered
provided 6 months bank statements are provided and the credits are regular paid on or close
to same dates of every month.

Maximum Loan Amount:

 PKR 500 across all segments.
 Prime Customers.
 Salaried employees in grade A & B companies Rs.1.5 million.
 Self Employed Rs.1 million.
 Govt. & Armed Forces maximum financing to be based on Income documentation.
 Salary slip to be not more than 2 months old and the salary certificate to be current,
bank statement of 6 months required.
 Customer should not be on probationary period at time of loan application.
 Company bank statement-3 months.
 Partnership bank statement-3 months.

CASH DEPOSIT MACHINES

The Cash Deposit Machine (CDM) is a self service terminal that lets you make deposits and
payment transactions by cash.
All successful transactions are immediately credited and customers will be issued an advice
slip confirming the transaction, to use the CDM, customers need to have either his/her
Standard Chartered Bank card (ATM or Credit card) or know his/her card number (ATM,
Credit Card)
Services available:
 Cash Deposit.
 Cash Deposit to Account.
  Credit card payment.
 Cheque Deposit to account*

Acceptable Denominations:
Standard Chartered CDM accepts Rs.50, Rs.100, Rs.500 and Rs.1000 notes. All local
currency cheques are accepted.

ATM Card:
 To proceed with any transaction you must remove your card from the slot, when
requested.
 Card Retained.
 Your card will be retained if you have failed to remove your card within 30
seconds after its ejection.
 Cut-off timing 4:00pm.
 Press any button to start.
 Select the service you want to avail.
 Insert your Standard Chartered card (ATM, Credit Card) or manually input the
card number (ATM, Credit Card)

Cash Deposit to Account:

 Insert Cash in Cash slot (30 notes max.)
 Your deposited amount would be shown on the screen, press "Procced" to
continue.
 Collect your receipt.

Credit Card Payments:

 Insert cash in cash slot (maximum 30 notes)
 Your deposited amount will be shown on the screen, press "Proceed" to continue.
 Collect your receipt.
 FINANCIAL HIGHLIGHTS

"Statement on corporate framework"

The statements prepared by the Bank, present fairly its state of affairs, the result of its
operations, cash flow and changes in equity.
Proper books of accounts have been maintained by the bank.
Appropriate accounting policies have been consistently applied in preparation of financial
statements.
International Accounting Standards, a applicable in Pakistan, have been followed in
preparation of financial statements and departure there from, if any, has been adequately
disclosed.
The system of internal control is sound in design and has been effectively implemented and
monitored.
There are no significant doubts upon the Bank's ability to continue as a going concern.
There has been no departure from the best practices of the corporate governance.
In the end, International Bank would like to take this opportunity to place on record our
sincere gratitude to Ministry of Finance, State Bank of Pakistan and Securities and Exchange
Commission of Pakistan for their support and continued guidance and also to our valued
customers for their trust and support.
I also wish to thank the staff members for their devotion, diligence and commendable
performance.

Income (US $ Millions)

  H1 H2 Full Year
2007 $5,263    
2006 $4,112 $4,508 $8,620
2005 $3,236 $3,625 $6,861
2004 $2,725 $2,657 $5,382
2003 $2,340 $2,400 $4,740
2002 $2,285 $2,254 $4,539
2001 $2,164 $2,241 $4,405
2000 $1,968 $2,093 $4,061
 *1999 $1,908 $1,940 $3,848
1998 $1,988 $1,937 $3,925

REPORTING
Directors’ Report
On behalf of The Board of Directors of Standard Chartered Bank (Pakistan)
Limited (SCBP) it gives me great pleasure to present the interim financial statements of the
bank for the half year ended June 30, 2007.

Economy
Pakistan maintained above trend growth momentum in the fiscal year 07 (Jul-Jun) on the
back of heightened investment spending, robust consumption growth and a supportive global
environment. The economy has now grown at an average 7.5% p.a. for the last 4 years.
However, political uncertainty due to presidential and parliamentary elections and tighter
monetary policy augur that a slowdown in growth might be around the corner. The economy
will probably grow at or near its potential level at 6.7%-6.8% p.a. Post elections, the
increased democracy quotient might herald a dividend that might boost growth momentum.
Fiscal year 07 was a momentous year overall on several counts. The country received record
foreign investment of USD8.4bn or 5.7% of GDP. In turn, not only was the current account
deficit adequately funded keeping the USD/PKR exchange rate strong but the country’s
foreign exchange reserves swelled from USD13bn to USD15.6bn. The really good news here
is that much of this investment is in the form of long term foreign direct investment.
Overseas investors are beginning to recognize the structural opportunities presented by
Pakistan. High inflation also showed some signs of abetting and at the end of the fiscal year,
headline CPI measured at 7.78% p.a. against 7.9% p.a. in last fiscal year. However, since the
weaknesses in inflation is not perceived to be decisive, the State Bank of Pakistan felt
compelled to take out extra insurance against any forward inflation risks. Consequently,
monetary policy has been further tightened in July 2007.

Rupees “Million”
Balance Sheet As at June 30, 2007 As at December 31, 2006
Paid up Capital 38,716 38,716
Equity 42,959 40,230
Deposits 178,600 156,878
Advances 124,603 129,004
Investments 42,730 34,629
Total Assets 281,621 246,318
 Period Ended Period Ended
Profit & Loss
June 30, 2007 June 30, 2006
Net Interest Income 7,975 3,708
Non-Funded Income 2,855 1,376
Administrative Expenses 5,132 1,529
Operating Profit ( before 5,698 3,555
provisions and tax)
Provisions (net) 1,846 147
Profit before tax 3,852 3,408
Profit after tax 2,569 2,469

Your Bank has recorded a growth of 60% in its operating profit of PKR 5.6 billion for the
half year ended June 30, 2007 compared to PKR 3.5 billion during the corresponding period
last year. However, Profit before tax of PKR 3.8 billion for the first half of 2007 represents
growth of 13% over the corresponding period last year mainly due to increase of PKR 1.7
billion in provision for doubtful debts during the period under review as compared to the
same period in 2006.
The notable rising trend in provision for doubtful debts is mainly from the unsecured
segment of consumer finance. Besides rising interest rates, increasing inflationary pressure,
and introduction of positive credit bureau, limiting the availability of additional financing to
high leverage borrowers the increase is also due to application of Standard Chartered Bank
Pakistan provisioning policies on the combined portfolio of Standard Chartered Bank –
Branches in Pakistan and Union Bank. Pro active measures are being undertaken to arrest the
trend by reinforcing the recovery and collection processes and also realigning credit policies
in line with the changing market dynamics.
3/4
The administrative expenses for the half-year ended June 30, 2007 compared to the
corresponding period last year has increased from PKR 1.5 billion to PKR
5.1 billion Mainly on account of the following:
1. Prior year number of PKR 1.5 billion reflects administrative expenses of
Standard Chartered Bank –Branches in Pakistan and does not include administrative
expenses of ex-Union Bank to the tune of PKR 1.9 billion.
2. Executive and general administrative cost of approximately PKR 1 billion payable to
Standard Chartered Bank, UK for the half-year ended June 30,
2007, which as a practice was not incorporated in the financial statements of Standard
Chartered Bank – Branches in Pakistan. These costs primarily include technology, business
development, risk management etc. These expenses have historically been recognized by the
tax authorities as deductible for income tax purposes.
3. Integration cost and amortization of intangibles of PKR 0.6 billion.
We have undertaken specific initiatives which have already started to create traction in both
cost efficiencies and increased productivity. Proactive cost management will continue to be
one of the priorities as we grow the franchise.
The financial statements reflect PKR 0.66 basic / diluted EPS which translates into an
annualized EPS of PKR 1.32.
Total assets as at June 30, 2007 stood at PKR 281.6 billion as against PKR
246.3 billion as at December 31, 2006. Deposits for the period under review grew by PKR
21.7 billion representing an increase of 14% compared to December 31,
2006. Net Advances reduced by PKR 4.4 billion as compared to December 31,
2006 mainly due to fluctuations in running finance balances, certain money market term
loans and provision for doubtful debts.
Integration
We are happy to inform you that we are tracking as per plan. Two major areas where work is
in progress is in its final stages relate to Premises and Technology & Operations (T&O). On
premises we are at an advanced stage of co-locating our staff. On T&O we expect to
complete the integration of the two operating platforms by end of September 2007, as
planned.
Future Prospects
We intend to continue expansion of the branch network in the coming months and years. In
order to take advantage of our expanded footprint in 22 cities we will continue to focus on
delivering quality products and services to our valued Customers.
Going forward we foresee continuation of pressure on margins and increased risk of
delinquencies. Our emphasis will be to leverage our operating platform by focusing on
wealth management products and expanding our customer base. We are confident that with
our robust risk management systems and practices we are well positioned to overcome the
challenges arising out of a deteriorating risk environment. The seamless integration coupled
with positive buildup in business momentum gives us the confidence to continue on our
growth trajectory, while also achieving the cost and revenue synergies envisaged during the
due diligence process.
Credit Rating
Pakistan Credit Rating Agency (PACRA) has assigned long-term rating of “AAA”
(Triple A) and a short-term rating of “A1+” (A One Plus) to the Bank. The banks three listed,
subordinated TFCs are also assigned “AAA” rating. These ratings denote the lowest
expectation of credit risk emanating from an exceptionally strong capacity for timely
payment of financial commitments. These ratings are the highest ratings assigned by PACRA
to any other commercial bank in the private sector.
Performance of the Group
In compliance of section 236(5) of the Companies Ordinance, 1984 attached with this report
are the consolidated financial statements of SCBP and its subsidiaries (the Group) namely –
Union Leasing Limited, Standard Chartered Services of
Pakistan (Private) Limited and Standard Chartered Modaraba for the half-year ended June
30, 2007.
Appreciation and Acknowledgment
We take this opportunity to express our gratitude to our customers and business partners for
their continued support and trust. We appreciate the co-operation and guidance extended by
the State Bank of Pakistan. Finally, we are also thankful to our associates, staff and
colleagues for their unstinted commitment to the Bank.
On behalf of the Board
Badar Kazmi
Chief Executive

CONCLUSSIONS AND SUGGESTIONS

CONCLUSION
In concluding I would like to point out those problems, which I found during my Internship,
which are given as below:

1. Procedure of Account Opening is time consuming.

 2. Procedure of Collection cheque books is also time consuming.
3. Procedures of clearing remittances, Demand draft are done at a single counter.
4. Q-matic machine is not available in branch.

SUGGESTIONS
The given conclusion in my point of view has following suggestions:

1. Procedure of Account Opening and collection of cheque books should not be time
taking.
2. Procedure of clearing remittances, Demand draft should be done to separate counters,
so the customer could not suffer.
3. Q-matic machine should be available by which work can be done calmly and
customer could not suffer.

REFERENCES

1. Asrar H. Siddique, Practice & Banking Law in Pakistan.

2. Annual report of Standard Chartered Bank Ltd.
3. Office records of Standard Chartered Bank Ltd.
4. The Journals of the Institute of Banker's in Pakistan.
5. Management by Stephen P. Robbins & Mary Coulter (8th Edition)
6. Prospectus of Standard Chartered Bank Ltd.
7. Pakistan Economists Magazine.
8. www.standardchartered.com.pk
9. Personal meetings with Manager & employees.