Standard Chartered Bank in India Analysis

shopworn hire aver in India AnalysisExecutive SummaryThe competition in the m wizardy boxing orbit is increasing at a big enjoin.MNC cants in India atomic number 18 doing well in India and banal hire verify being oneness of them wants to emergence the consumer base. in that respectfore, it is trying to do this by dint of retail swearing. At this point of time the bank is expanding and is advent up with in the buff branches all over India. It has recently rough a fresh branch in that location and if yes then how it arse acquire new Customers.In cardinal months time I was supposed to recruit and consider their products (especially deposits) and to do a grocery study to know customers needs and invitements so that bank substructure extemporise on them if possible. This time period was not enough to do an intense study. Therefore, I could aggregate mode footstep data and kept my study limited to smallish a sampleINTRODUCTIONAn overview of SCB archetype hire is the globes stellar(a) emerging grocerys bank. It employs 29,000 passel in over 500 offices in more than 50 countries in the Asia Pacific Region, south Asia, the Middle East, Africa, United Kingdom and the Americas.The rely pay heeds some(prenominal) Consumer and in jumbo quantities banking customers. The Consumer imprecate provides source panels, personal loans, mortgages, deposit taking activity and wealth prudence inspection and repairs to individuals and medium size problemes. The sweeping beach provides service to multinational, regional and domestic inembodiedd and instaurational nodes in dole out finance, bullion management, custody, l halting, un ilk ex adjustment, interest rate management and debt enceinte merchandises.With 150 age in the emerging markets the believe has droll knowledge and understanding of its customers in its markets. precedent chartered recognizes its responsibilities to its staff and to the comm unit of measurement ies in which it t terminussA draft accounting of Standard contractStandard hire is the worlds track emerging markets bank headquartered in London. Its blood linees however, commit invariably been overwhelmingly transnational. This is summary of the main as yetts in the history of Standard Chartered and some of the organizations with which it merged.The proterozoic daysStandard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard banking company of British second Africa and the Chartered marge of India, Australia and China. Of the two banks, the Chartered desire is the honest-to-god having been founded in 1853 future(a) the grant of a magnificent Charter from Queen Victoria. The moving force stern the Chartered coin bank was a Scot, pack Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the worlds pre-eminent familiarations. Nine years later, in 1862, the Standard patois was founded by a group of commercemen led by an other(a) Scot, John Paterson, who had immigrated to the Cape Province in federation Africa and had become a successful merchant. Both banks were keen to capitalize on the huge amplification of clientele between Europe, Asia and Africa and to reap the handsome profits to be made from funding that trade. The Chartered shore undecided its starting time branches in 1858 in Chennai and Mumbai. A branch heart-to-heart in Shanghai that summer adaptoff Standard Chartered unbroken presence in China. The following year the Chartered Bank commodedid a branch in Hong Kong and an post was opened in Singapore. In 1861 the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly developing rubber and tin industries in Malaysia. In 1862 the Chartered Bank was authorized to issue bank notes in Hong Kong. Subsequently it was excessively authorized to issue bank notes in Singapore, a privi lege it continued to exercise up until the end of the 19th Century. Over the following decades both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, Malaysia and even during the siege of Marketing in South Africa. Today Standard Chartered is still one of the tierce banks, which prints Hong Kongs bank notes.Expansion in Africa and AsiaThe Standard Bank opened for blood line in port wine Elizabeth, South Africa, in 1863. It pursued a policy of expansion and soon amalgamated with several other banks including the commercialised Bank of Port Elizabeth, the Colesberg Bank, the British Kaffarian Bank and the Fauresmith Bank. The Standard Bank was prominent in the financing and ripening of the diamond fields of Kimberly in 1867 and later extended its lucre further north to the new townsfolk of Johannesburg when gold was discovered there in 1885. Over time, half the output of the second largest goldfield in the world passed by dint of the Standard Bank on its way to London. In 1892 the Standard Bank opened for moving in in Zimbabwe, and expanded into Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the Democratic Republic of congou (D.R.C.), in 1911 and Uganda in 1912. Of these new businesses, Botswana, Zanzibar and the D.R.C. proved the around difficult and the branches soon closed. A branch in Botswana opened again in 1934 but lasted for scarce a year and it was not until 1950 that the Bank re-opened for business in Botswana. In Asia the Chartered Bank expanded opening offices in, Myanmar in 1862, what is now Pakistan and In move oversia in 1863, the Philippines in 1872, Malaysia in 1875, Japan in 1880 and Thailand in 1894. Some 34 years after the Chartered Bank nominate an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the teatime and rubber industries. During 1904 a branch opened in Vietnam. Both the Chartered and the Standard Bank opened offices in sweet York and Hamburg in the early 1900s. The Chartered Bank gaining the first base branch demonstrate to be issued to a unusual bank in New York.The sham of warEven the premier(prenominal) dry land War offered opportunities for expansion when the Standard Bank set up a branch in Tanzania suddenly after British troops occupied the formerly German administered Dar es Salaam in kinfolk 1916. Both banks survived the inter-war years but the world trade slump led to the closure of ope symmetryns in the Canary Islands, Liberia, the Netherlands, and Equatorial Guinea. Disaster struck the Chartered Banks office in Yokohama, Japan, when an earthquake in 1923 violent death a number of staff destroyed it. The Second World War particularly seismic disturbance the Chartered Bank when many Asian countries were occupied by Japan.Standard Chartered in IndiaThe Chartered Bank opened its first overseas branch in India, at Calcutta, on 1 2 April 1858 8 years later the Calcutta agent described the Banks assent locally as splendid and its business as comfortable particularly the substantial turnover in rice bills with the leading Arab firms. When the Chartered Bank first set up itself in India, Calcutta was the most important Commercial city and was the centre of the jute and indigo trades. With the harvest-festival of cotton fiber trade and the opening of the Suez Canal in 1869, Bombay took over from Calcutta as Indias main trade centre. Today the Banks branches and sub-branches in India argon directed and administered from Mumbai (Bombay) with Calcutta go alonging an important trading and banking centre.Standard Chartered is the largest international banking Group in India. let on businesses take on Consumer Banking-Primarily credit cards, mortgages, personal loans and wealth management and wholesale Banking, where the Bank specializes in the purvey of change management trade, finance, treasury and custod y services.It is the largest international banking group in India with an employee base of nearly 3500 pot across the country. It also boast the largest branch network amongst all international banks in India-with 61 branches in 15 cities. With over 2.3 million retail customers, and a credit entry Card base in overmuch of 1.3 million, it is the leading in the consumer banking business. The wholesale bank has over 1200 corporate customers with a 33% market sh be in value with over 270 top transnational companies in India.INDUSTRY PROFILEWhat is BankingBanking, in a handed-down sense is the business of filling deposits of property from public for the offer of lending and enthronization. These deposits can collapse a distinct feature of being withdrawable by cheques, which no other financial institution can offer.In addition, banks also offer respective(a) other financial services which take on.Issuing Demand Drafts Travellers ChequesCredit card gameCollection of Cheque s, Bills of exchangeSafe Deposit LockersIssuing Letters of Credit Letters of attempt sale and Purchase of strange transfigureCustodial ServicesInvestment Insurance servicesThe business of banking is passing regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the ancient responsibilities of any bank. That is why banks argon expected to be prudent in their lending and investment activities. every(prenominal) bank has a Compliance Department, which is creditworthy to ensure that all the services offered by the bank, and the processes followed argon in compliance with the local regulations and the Banks corporate policy.The major regulations and acts that govern the banking business arBanking Regulations act, 1949 unknown Exchange caution Act, 1999Indian Contract ActNegotiable Instruments Act, 1881Banks lend money either for productive purposes to individuals, firms, corporates etc, or for purchase ho impl ement property, cars and other consumer durable and for investment purposes to individuals and others. However, banks do not finance any bad activity. add is risk taking.Banking in the New MillenniumWere living in a world dominate by the new idea economy, ticking to the beat of Internet time, where customers be fictional character aw atomic number 18, time conscious and determine conscious. Technology is creating new agile players making the existing ones obsolete. In this scenario, the role of internet and its impact on banking still appears to be a puzzle. Banks around the world ar subject to the same base changes -new competition, technology, deregulation, and internationalization. still, eventually, the clear rules of business leave behind reassert themselves in this virtual environment and the succeeders will be the first and go around movers.The challenges in this millennium for the banking industry are eaverageous. The technology and Banking sphere reforms, to hurther are lifting the competitory forte of the Banking business. In Banking, embedding knowledge into products can enhance value, and connecting different knowledge sources can create modernistic products. The banks that are first to market with the right mix of technologies, strategies and partnerships would be the sure winners.The banking environment worldwide is undergoing massive transformation. disrespect the, not so favorable, market sentiments and an apparent backlash against dotcoms, serious players in established industries the ilk banking, remain convinced that the Internet will take on a profound impact on the banking arena.Mergers and acquisitions are ever-ever-changing the financial decorate, and cross-border linkages are drastically altering the business characters, in general and banking trading works, in particular. But muster firm conclusions can be dangerous, as mergers and consolidation take many another(prenominal) different forms and the impact c an give mixed results. But, there is growing concern as to whether mergers deliver the expected benefits and whether cross-border deals are feasible, particularly in Europe, where cultural considerations are seen as barriers to success. In Europe, players are beginning to assert themselves, as the Nat western United earths battle is resolved. Nat west, one of the UKs biggest banks, was forced to accept a hostile takeover pop the question from a littler rival, Royal Bank of Scotland in December 2000. Earlier in November 1999, Nat west rejected a confusable bid by another small bank, Bank of Scotland. This move left the scene set for Royal Bank of Scotland to submit its long anticipated bid for Nat West. It was followed by a flurry of bid and restitution bid by the two Scottish banks as Nat west fought to keep its independence. The Royal Bank of Scotland lastly won by convincing the Nat West plowshareholders to accept its 25 bn offer. This outcome has set the opinion for a long overdue round of consolidation in the European financial welkin.Coming home, Indian banking sphere of influence has come a long way from being a sleepy business institution to a highly proactive and dynamic entity. Indian banking system is in the midst of a technical revolution. It is impacting the Indian industry in three ways firstly, by providing efficient and effective deliveryChannels, secondly, it is dramatically influencing the client profile, which in turn leads to the third change i.e. the Human Resources way. As a service heavens, it calls for a change in the attitude of the personnel that would develop a salutary effect on customers.Indian Banking that was operating(a) in a highly comfortable and protected environment till the beginning of mid-nineties has been pushed into the foolish waters of intense competition. Mergers and acquisitions, have been heating up in the new esoteric banking sector since the HDFC-Times Bank merger came by means of in November 1999 . The deal shook an otherwise placid Indian banking world and generated a kind of pressure on banks to shake hands with their peers to cope up with the competition.Going forward, the bounteousness valuations of snobby banks compared to public sector banks depend on their ability to maintain high earnings growth and quality of assets. The current downturn in the economic activity could result in the increase of non-performing assets for most of the banks. The winner in the market would be the one who can sustain the high growth in business without compromising the asset quality.In this millennium, banks should strive to achieve significant increases in their productivity, efficiency, and profitability. The areas of challenges that lie earlier for the Indian banking sector would be Restructuring and Reorganizing banks setup, leaner offices, merging and forging of strategic alliances to take advantage of the geographical deal out of branch network of banks, develop new products an d services that would meet the emerging needs of customers and paid focussing structures that would be responsive to the changes in the business environment.The book Banking In The New Millennium examines this changing landscape for the banking services. The purpose of this book is to present the current trends, the emerging scenario and the building blocks in banking sector. A skeleton portion is also dedicated to retail banking that is growing in a big way. The book is dual-lane into quad sections analyzing the various aspects of the banking scenario. Packed with the right mix of articles on e-banking, retail banking, and mergers and acquisitions, this book is intended to serve as an executive reference book on Banking.Challenges And Future In Banking SectorMergers in the Banking, NPA, New Technology, electronic immediate payment TransferAfter the nationalization of Banks, increasing adoption of technology, continual mergers in the banking, modernizing backroom operation in the banks and competition pave the path of growth of Indian banking. By the mid-1990, the near monopoly of public sector banks face the competition by the more customer-foc intentd common soldier sector entrants. This competition forced older and nationalized banks to meliorate their operations. yr 1992 was the golden period of Indian Banking system due to the scam-tainted stock market. Large proportion of phratry saving(a) moved into the banking system, which recorded an annual growth of 20 percentage in deposit.But along with the continuous growth and modernization, there are several challenges confronting the banking sector. The main challenges facing the banking sector are the deployment of property in quality assets and the management of revenues and costs. The problem of NPA (non- performing assets), overall credit recovery systems still exist. There is a continuous reforms and modernization is in process. A number of recon mediations of two Narasimham committees have b een implemented.Foreign Banks nidus on corporate and on the middle class consumer and providing then better service. Nationalized Banks are also attempting to get on the path of automation. Strong Banks will acquire the weaker banks. The member of extraneous banks operating in India has change magnitude importantly and their share of lend assets has also increased. In the year 2001 estimated extraneous bank account for 14.7 percent of the total net profit of commercial banking sector in India.In spite tangible bring forward and the function of Narasimham I and Narasimham committee reports the banking sector in India suffering from systemic and structural problem.OBJECTIVESThe main design of this digest report is to make an analytical study of Standard Chartered BankIt includes History of the Bank intersection point Analysis ServiceBanks Accounts Comparison of the saving accounts with other leading Banks of IndiaREASEARCH METHODOLOGYData accretion has been done from both so urces primary as well as secondary.Primary data by encounter various managers of the Standard Chartered Bank, Citibank, ABN-AMRO Bank, ICICI, HDFC, HSBC, GTB, UTI and IDBI.Secondary data From newspaper, magazines, Libraries.CONCEPTUAL FRAMEWORKInvestment in India Banking Banking ashes accessThe Reserve Bank of India (RBI) is Indias central bank. Though public sector banks currently dominate the banking industry, numerous clannish and impertinent banks exist. Indias government- owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will cringe its ownership. Private and contrasted banksThe RBI has granted operating approval to a few in clubby owned domestic banks of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of exotic banks is base on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion. Capital adequacy normForeign banks were compulsory to achieve an 8 percent capital adequacy norm by show 1993, magic spell Indian banks with overseas branches had until walk 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of Indias indemnity sector to private domestic and foreign participants, while keeping the national insurance companies in operation. Banking India has an commodious banking network, in both urban and verdant areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector. RBI banking The Reserve Bank of India is the central banking institution. It is the sole bureau for proceeds bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, a nd administers the governments monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign banks operate in India with full banking licenses. Several licenses for private banks have been approved. Despite fairly broad banking insurance coverage nationwide, the financial system remains inaccessible to the poorest people in India. Indian banking system The banking system has three tiers. These are the scheduled commercial banks the regional coarse banks that operate in rural areas not covered by the scheduled banks and the cooperative and special purpose rural banks. Scheduled and non-scheduled banks There are approximately 80 scheduled commercial banks, Indian and foreign close 200 regional rural banks more than 350 central cooperative banks, 20 land training banks and a number of primary agricultural credit societies. In terms of business, the public sector banks, videlicet the State Bank of India and the nationalized banks, dominate the ba nking sector. Local financing All sources of local financing are available to foreign-participation companies incarnate in India, regardless of the extent of foreign participation. Under foreign exchange regulations, foreigners and non-residents, including foreign companies, require the licence of the Reserve Bank of India to borrow from a person or company resident in India .Regulations on foreign banks Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their spherical networks. RBI restrictions The Reserve Bank of India lays down restrictions on bank lending and other activities with large companies. These restrictions, popularly known as consortium guidelines seem to have outlived their usefulness, because they hinder the availability of credit to the non-food sector and at the same time do not foster competition between banks. Indian vs foreign banks some Indian banks are well behind foreign banks in the areas of customer funds change and change systems. They are hugely over-staffed and are unlikely to be able to compete with the new private banks that are now entering the market. While these new banks and foreign banks still face restrictions in their activities, they are well-capitalized, use modern equipment and attract high-caliber employees. political relation and RBI regulationsAll commercial banks face stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to priority sectors and the high liquid ratio and capital reserve requirements severely limit the availability of deposits for lending.The RBI requires that domestic Indian banks make 40 percent of their loans at concessional rates to priority sectors selected by the governme nt. These sectors consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32 percent of their loans to these priority sector. Within the target of 32 percent, two sub-targets for loans to the small scale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed. Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector. Commercial banks lent dols 8 million in the Indian financial year (IFY, April-March) 1997/98, up sharply from dols 4.4 billion in the previous year.The deployment of plebeian loans was as follows FINDINGS AND ANALYSISBUSINESSConsumer BankConsumer Banking Offers a wide range of premium banking products and services through the network of 90 branches in 19 cities across the country to cater to customers diverse financial needs.wealth management offers a complete and comprehensive range of products to fulfill a gamut of customer investment and financial needs. These include domestic and NRI transaction accounts (with several value-add products and services like ATM and globally valid calculate Card, remember banking, extended banking, any branch banking, door step banking and investment advisory services), distribution of capital market and insurance products and dematerialization services and finances against shares. Standard Chartered also offers Priority Banking that is personalized banking for the intimate few.Standard Chartered Group is a leading credit card issuer in India and has several firsts to its credit. These include military issue of the first globular Credit Card in India, thefirst Photo card, the first depict Card. Our card portion under Unsecured Payments is also the first in South Asia to be accorded an ISO 9002 certification. The credit card and Personal Loans Offer include co-branded cards with unique value propositions and cards like Sapnay for the middle-market seg ment. The division offers a range of personal loan products and also a personal line of credit through products such(prenominal) as Smart Credit.Our Secured Loan Division offers mortgage auto loans and also unique overdraft products like fuel consumption rate that offer revolving credit adroitness against the security of a used or new car.Standard Chartered Finance (SCF), an NBFC is our Centre for Excellence in Service and product distribution arm. Products include loans/leases for new rider cars, used cars commercial vehicles and medical equipment. Standard Chartered Finance has an extensive network of branches in India.Wholesale BankCorporate and institutional BankStandard Chartered is particularly strong in Institutional relationships and is the preferred correspondent bank for over 300 domestic and international bank, the largest such private sector network in India. The Bank focuses on service quality and all its operational units in trade, cash management, treasury and custo dy are ISO certified.Standard Chartered is Indias largest foreign trade finance bank and offers a full complement of trade finance products, including export credit in foreign currency, export earn of credit confirmations, merchanting trade and buyer credits. It is one of the few banks in India to offer services like send financing forfeiting, without recourse export finance, project export and service export approvals and sponsorships.As a leading cash management supplier across emerging markets, Standard Chartered Offers Complete end to end cash management solutions for corporate and institutions. The Greenwich survey for 2001 nominated Standard Chartered the Best Cash Management Service Quality Bank in India Range of Products include vostro accounts, draft drawing, telegraphic transfers and an international payments facility that allows foreign currency payments without a separate account.Standard Chartereds custody and clearing service unit has served Foreign Institutional Inv estors in India with Superior client servicing, supported bySophisticated and flexible computerized systems. It is the only steward in India to earn the ISO 90012000 standards certification. Standard Chartered has received top ratings in Industrys benchmark surveys the Global shop steward survey 2000 and the Global Investor Survey 2000.Global MarketsStandard Charted provides a complete 24 minute coverage of the worlds foreign exchange markets.It provides a broad range of products like Exotic currencies, Derivatives, Debt Capital markets, cash Options and electronic trading.Standard Chartered was the first bank in India to introduce its on-Line Treasury, a web browser enabled transaction system that enables real-time transactions. Standard Chartered is also recognized as a leading market for the Indian Rupee.The Banks Treasury-the No.1 Treasury in India-is amongst the most active treasuries in the country, being a market master in local currency and money markets. While we seek to provide advice, treasury products and services to our global clients in the Indian market, we also have active relationships with some of the biggest and most diversified Indian companies and many medium sized companies.With a large specialized sales force, we cater to all foreign exchange, money market and risk management needs of our corporate clients.Treasury has an active inter bank desk which, isolated from being a market maker in the Indian Rupee spot and the onward market, actively quotes for other currencies.The money Market Desk is a leading player in the Rupee markets and in Government and corporate debt trading.The derivative Desk is a market maker in the Rupee Interest rate swop market. We also run one of Indias largest derivative books and offer products up to 7 years tenor.The corporate desk is amongst the largest among the foreign banks in India. With a presence in 5 major cities with state of the art traffic populate and a corporate sales force of over 20 de alers, we have an unmatched generate and service capability across India. In addition to servicing currency market and investment needs of corporate clients, our corporate desk is active in advisory services pertaining to structuring and risk management.Standard Chartered correlative ancestry is one of the largest and fastest growing debt funds in the market. Standard Chartered Mutual stock certificate is the only fund that focuses only on the debt segment and prides itself on having developed one of the finest interest rate bring in models.Consumer Bank-ProductsTypes of DepositsBank DepositsBStandard Chartered Bank in India AnalysisStandard Chartered Bank in India AnalysisExecutive SummaryThe competition in the banking sector is increasing at a tremendous rate.MNC banks in India are doing well in India and Standard Chartered Bank being one of them wants to increase the consumer base. Therefore, it is trying to do this through retail banking. At this point of time the bank is e xpanding and is coming up with new branches all over India. It has recently opened a new branch there and if yes then how it can acquire new Customers.In two months time I was supposed to promote and sell their products (especially deposits) and to do a market study to know customers needs and requirements so that bank can improvise on them if possible. This time period was not enough to do an intense study. Therefore, I could collect limited data and kept my study limited to small a sampleINTRODUCTIONAn overview of SCBStandard Chartered is the worlds leading emerging markets bank. It employs 29,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom and the Americas.The Bank serves both Consumer and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The Wholes ale Bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending, foreign exchange, interest rate management and debt capital markets.With 150 years in the emerging markets the Bank has unmatched knowledge and understanding of its customers in its markets.Standard Chartered recognizes its responsibilities to its staff and to the communities in which it operatesA brief history of Standard CharteredStandard Chartered is the worlds leading emerging markets bank headquartered in London. Its businesses however, have always been overwhelmingly international. This is summary of the main events in the history of Standard Chartered and some of the organizations with which it merged.The early yearsStandard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. Of the two banks, the Chartered Bank is the older having been founded in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the worlds pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in South Africa and had become a successful merchant. Both banks were keen to capitalize on the huge expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from financing that trade. The Chartered Bank opened its first branches in 1858 in Chennai and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861 the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly developing rubber and tin industries in Malaysia. In 1862 the Chartered Bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th Century. Over the following decades both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China, South Africa, Zimbabwe, Malaysia and even during the siege of Marketing in South Africa. Today Standard Chartered is still one of the three banks, which prints Hong Kongs bank notes.Expansion in Africa and AsiaThe Standard Bank opened for business in Port Elizabeth, South Africa, in 1863. It pursued a policy of expansion and soon amalgamated with several other banks including the Commercial Bank of Port Elizabeth, the Colesberg Bank, the British Kaffarian Bank and the Fauresmith Bank. The Stan dard Bank was prominent in the financing and development of the diamond fields of Kimberly in 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Over time, half the output of the second largest goldfield in the world passed through the Standard Bank on its way to London. In 1892 the Standard Bank opened for business in Zimbabwe, and expanded into Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.), in 1911 and Uganda in 1912. Of these new businesses, Botswana, Zanzibar and the D.R.C. proved the most difficult and the branches soon closed. A branch in Botswana opened again in 1934 but lasted for only a year and it was not until 1950 that the Bank re-opened for business in Botswana. In Asia the Chartered Bank expanded opening offices in, Myanmar in 1862, what is now Pakistan and Indonesia in 1863, the Philippines in 1872, Malaysia in 18 75, Japan in 1880 and Thailand in 1894. Some 34 years after the Chartered Bank appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the tea and rubber industries. During 1904 a branch opened in Vietnam. Both the Chartered and the Standard Bank opened offices in New York and Hamburg in the early 1900s. The Chartered Bank gaining the first branch licence to be issued to a foreign bank in New York.The impact of warEven the First World War offered opportunities for expansion when the Standard Bank set up a branch in Tanzania shortly after British troops occupied the formerly German administered Dar es Salaam in September 1916. Both banks survived the inter-war years but the world trade slump led to the closure of operations in the Canary Islands, Liberia, the Netherlands, and Equatorial Guinea. Disaster struck the Chartered Banks office in Yokohama, Japan, when an earthquake in 1923 killing a number of staff destroyed it. The Second World War par ticularly affected the Chartered Bank when numerous Asian countries were occupied by Japan.Standard Chartered in IndiaThe Chartered Bank opened its first overseas branch in India, at Calcutta, on 12 April 1858 Eight years later the Calcutta agent described the Banks credit locally as splendid and its business as flourishing particularly the substantial turnover in rice bills with the leading Arab firms. When the Chartered Bank first established itself in India, Calcutta was the most important Commercial city and was the centre of the jute and indigo trades. With the growth of cotton trade and the opening of the Suez Canal in 1869, Bombay took over from Calcutta as Indias main trade centre. Today the Banks branches and sub-branches in India are directed and administered from Mumbai (Bombay) with Calcutta remaining an important trading and banking centre.Standard Chartered is the largest international banking Group in India. Key businesses include Consumer Banking-Primarily credit car ds, mortgages, personal loans and wealth management and wholesale Banking, where the Bank specializes in the provision of cash management trade, finance, treasury and custody services.It is the largest international banking group in India with an employee base of nearly 3500 people across the country. It also boast the largest branch network amongst all international banks in India-with 61 branches in 15 cities. With over 2.3 million retail customers, and a Credit Card base in excess of 1.3 million, it is the leaders in the consumer banking business. The wholesale bank has over 1200 corporate customers with a 33% market share in value with over 270 top transnational companies in India.INDUSTRY PROFILEWhat is BankingBanking, in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investment. These deposits can have a distinct feature of being withdrawable by cheques, which no other financial institution can offer.In addition, b anks also offer various other financial services which include.Issuing Demand Drafts Travellers ChequesCredit CardsCollection of Cheques, Bills of exchangeSafe Deposit LockersIssuing Letters of Credit Letters of GuaranteeSale and Purchase of Foreign ExchangeCustodial ServicesInvestment Insurance servicesThe business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their lending and investment activities. Every bank has a Compliance Department, which is responsible to ensure that all the services offered by the bank, and the processes followed are in compliance with the local regulations and the Banks corporate policy.The major regulations and acts that govern the banking business areBanking Regulations act, 1949Foreign Exchange Management Act, 1999Indian Contract ActNegotiable Instruments Act, 1881Ba nks lend money either for productive purposes to individuals, firms, corporates etc, or for buying house property, cars and other consumer durable and for investment purposes to individuals and others. However, banks do not finance any speculative activity. Lending is risk taking.Banking in the New MillenniumWere living in a world dominated by the new idea economy, ticking to the beat of Internet time, where customers are quality conscious, time conscious and price conscious. Technology is creating new agile players making the existing ones obsolete. In this scenario, the role of internet and its impact on banking still appears to be a puzzle. Banks around the world are subject to the same radical changes -new competition, technology, deregulation, and globalization. But, eventually, the classic rules of business will reassert themselves in this virtual environment and the winners will be the first and best movers.The challenges in this millennium for the banking industry are enormo us. The technology and Banking sector reforms, together are lifting the competitive intensity of the Banking business. In Banking, embedding knowledge into products can enhance value, and connecting different knowledge sources can create innovative products. The banks that are first to market with the right mix of technologies, strategies and partnerships would be the sure winners.The banking environment worldwide is undergoing massive transformation. Despite the, not so favorable, market sentiments and an apparent backlash against dotcoms, serious players in established industries like banking, remain convinced that the Internet will have a profound impact on the banking sector.Mergers and acquisitions are changing the financial landscape, and cross-border linkages are drastically altering the business characters, in general and banking operations, in particular. But drawing firm conclusions can be dangerous, as mergers and consolidation take many different forms and the impact can give mixed results. But, there is growing concern as to whether mergers deliver the expected benefits and whether cross-border deals are feasible, particularly in Europe, where cultural considerations are seen as barriers to success. In Europe, players are beginning to assert themselves, as the Nat West battle is resolved. Nat west, one of the UKs biggest banks, was forced to accept a hostile takeover bid from a smaller rival, Royal Bank of Scotland in December 2000. Earlier in November 1999, Nat west rejected a similar bid by another small bank, Bank of Scotland. This move left the scene set for Royal Bank of Scotland to submit its long anticipated bid for Nat West. It was followed by a flurry of bid and counter bid by the two Scottish banks as Nat west fought to keep its independence. The Royal Bank of Scotland finally won by convincing the Nat West shareholders to accept its 25 bn offer. This outcome has set the tone for a long overdue round of consolidation in the European fina ncial sector.Coming home, Indian banking sector has come a long way from being a sleepy business institution to a highly proactive and dynamic entity. Indian banking system is in the midst of a technological revolution. It is impacting the Indian industry in three ways firstly, by providing efficient and effective deliveryChannels, secondly, it is dramatically influencing the client profile, which in turn leads to the third change i.e. the Human Resources Management. As a service sector, it calls for a change in the attitude of the personnel that would have a salutary effect on customers.Indian Banking that was operating in a highly comfortable and protected environment till the beginning of 1990s has been pushed into the choppy waters of intense competition. Mergers and acquisitions, have been heating up in the new private banking sector since the HDFC-Times Bank merger came through in November 1999. The deal shook an otherwise placid Indian banking world and generated a kind of p ressure on banks to shake hands with their peers to cope up with the competition.Going forward, the premium valuations of private banks compared to public sector banks depend on their ability to maintain high earnings growth and quality of assets. The current downturn in the economic activity could result in the increase of non-performing assets for most of the banks. The winner in the market would be the one who can sustain the high growth in business without compromising the asset quality.In this millennium, banks should strive to achieve significant increases in their productivity, efficiency, and profitability. The areas of challenges that lie ahead for the Indian banking sector would be Restructuring and Reorganizing banks setup, leaner offices, merging and forging of strategic alliances to take advantage of the geographic spread of branch network of banks, develop new products and services that would meet the emerging needs of customers and professionalManagement structures th at would be responsive to the changes in the business environment.The book Banking In The New Millennium examines this changing landscape for the banking services. The purpose of this book is to present the current trends, the emerging scenario and the building blocks in banking sector. A brief section is also dedicated to retail banking that is growing in a big way. The book is divided into four sections analyzing the various aspects of the banking scenario. Packed with the right mix of articles on e-banking, retail banking, and mergers and acquisitions, this book is intended to serve as an executive reference book on Banking.Challenges And Future In Banking SectorMergers in the Banking, NPA, New Technology, Electronic Cash TransferAfter the nationalization of Banks, increasing adoption of technology, continuous mergers in the banking, modernizing backroom operation in the banks and competition pave the path of growth of Indian banking. By the mid-1990, the near monopoly of public sector banks faced the competition by the more customer-focused private sector entrants. This competition forced older and nationalized banks to revitalize their operations.Year 1992 was the golden period of Indian Banking system due to the scam-tainted stock market. Large proportion of household saving moved into the banking system, which recorded an annual growth of 20 percent in deposit.But along with the continuous growth and modernization, there are several challenges confronting the banking sector. The main challenges facing the banking sector are the deployment of funds in quality assets and the management of revenues and costs. The problem of NPA (non- performing assets), overall credit recovery systems still exist. There is a continuous reforms and modernization is in process. A number of recon mediations of two Narasimham committees have been implemented.Foreign Banks focusing on corporate and on the middle class consumer and providing then better service. Nationalized Ban ks are also attempting to get on the path of automation. Strong Banks will acquire the weaker banks. The member of foreign banks operating in India has increased significantly and their share of total assets has also increased. In the year 2001 estimated foreign bank account for 14.7 percent of the total net profit of commercial banking sector in India.In spite tangible progress and the contribution of Narasimham I and Narasimham committee reports the banking sector in India suffering from systemic and structural problem.OBJECTIVESThe main objective of this project report is to make an analytical study of Standard Chartered BankIt includes History of the Bank Product Analysis ServiceBanks Accounts Comparison of the saving accounts with other leading Banks of IndiaREASEARCH METHODOLOGYData collection has been done from both sources primary as well as secondary.Primary data by meeting various managers of the Standard Chartered Bank, Citibank, ABN-AMRO Bank, ICICI, HDFC, HSBC, GTB, UT I and IDBI.Secondary data From newspaper, magazines, Libraries.CONCEPTUAL FRAMEWORKInvestment in India Banking Banking SystemIntroductionThe Reserve Bank of India (RBI) is Indias central bank. Though public sector banks currently dominate the banking industry, numerous private and foreign banks exist. Indias government-owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership. Private and foreign banksThe RBI has granted operating approval to a few privately owned domestic banks of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion. Capital adequacy normForeign banks were required to achieve an 8 percent capital adequacy norm by March 1993, while Indian banks with overseas branches had until March 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of Indias insurance sector to private domestic and foreign participants, while keeping the national insurance companies in operation. Banking India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector. RBI banking The Reserve Bank of India is the central banking institution. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the governments monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign banks operate in India with full banking licenses. Several li censes for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. Indian banking system The banking system has three tiers. These are the scheduled commercial banks the regional rural banks that operate in rural areas not covered by the scheduled banks and the cooperative and special purpose rural banks. Scheduled and non-scheduled banks There are approximately 80 scheduled commercial banks, Indian and foreign almost 200 regional rural banks more than 350 central cooperative banks, 20 land development banks and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector. Local financing All sources of local financing are available to foreign-participation companies incorporated in India, regardless of the extent of foreign participation. Under foreign exch ange regulations, foreigners and non-residents, including foreign companies, require the permission of the Reserve Bank of India to borrow from a person or company resident in India .Regulations on foreign banks Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks. RBI restrictions The Reserve Bank of India lays down restrictions on bank lending and other activities with large companies. These restrictions, popularly known as consortium guidelines seem to have outlived their usefulness, because they hinder the availability of credit to the non-food sector and at the same time do not foster competition between banks. Indian vs foreign banks Most Indian banks are well behind foreign banks in the areas of cu stomer funds transfer and clearing systems. They are hugely over-staffed and are unlikely to be able to compete with the new private banks that are now entering the market. While these new banks and foreign banks still face restrictions in their activities, they are well-capitalized, use modern equipment and attract high-caliber employees. Government and RBI regulationsAll commercial banks face stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to priority sectors and the high liquidity ratio and cash reserve requirements severely limit the availability of deposits for lending.The RBI requires that domestic Indian banks make 40 percent of their loans at concessional rates to priority sectors selected by the government. These sectors consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32 percent of their loans to these priority sector. Within the target of 32 percent, two sub-targets for loans to the small scale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed. Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector. Commercial banks lent dols 8 billion in the Indian financial year (IFY, April-March) 1997/98, up sharply from dols 4.4 billion in the previous year.The deployment of gross loans was as follows FINDINGS AND ANALYSISBUSINESSConsumer BankConsumer Banking Offers a wide range of premium banking products and services through the network of 90 branches in 19 cities across the country to cater to customers diverse financial needs.Wealth management offers a complete and comprehensive range of products to fulfill a gamut of customer investment and financial needs. These include domestic and NRI transaction accounts (with several value-add products and services like ATM and globally valid Debit Card, phone banking, extended banking, any branch banking, door step banking and investment advisory services), distribution of capital market and insurance products and dematerialization services and finances against shares. Standard Chartered also offers Priority Banking that is personalized banking for the privileged few.Standard Chartered Group is a leading credit card issuer in India and has several firsts to its credit. These include issuance of the first Global Credit Card in India, thefirst Photo card, the first Picture Card. Our card division under Unsecured Payments is also the first in South Asia to be accorded an ISO 9002 certification. The credit Cards and Personal Loans Offer include co-branded cards with unique value propositions and cards like Sapnay for the middle-market segment. The division offers a range of personal loan products and also a personal line of credit through products such as Smart Credit.Our Secured Loan Division offers mortgage auto loans and also unique overdraft products like Mileage that offer revolving credit facility against the security of a used or new car.Standard Chartered Finance (SCF), an NBFC is our Centre for Excellence in Service and product distribution arm. Products include loans/leases for new passenger cars, used cars commercial vehicles and medical equipment. Standard Chartered Finance has an extensive network of branches in India.Wholesale BankCorporate and Institutional BankStandard Chartered is particularly strong in Institutional relationships and is the preferred correspondent bank for over 300 domestic and international bank, the largest such private sector network in India. The Bank focuses on service quality and all its operational units in trade, cash management, treasury and custody are ISO certified.Standard Chartered is Indias largest foreign trade finance bank and offers a full complement of trade finance products, including export credit in foreign currency, export letters of credit confirmations, merchanting trade and buyer credits. I t is one of the few banks in India to offer services like channel financing forfeiting, without recourse export finance, project export and service export approvals and sponsorships.As a leading cash management supplier across emerging markets, Standard Chartered Offers Complete end to end cash management solutions for corporate and institutions. The Greenwich survey for 2001 nominated Standard Chartered the Best Cash Management Service Quality Bank in India Range of Products include vostro accounts, draft drawing, telegraphic transfers and an international payments facility that allows foreign currency payments without a separate account.Standard Chartereds custody and clearing service unit has served Foreign Institutional Investors in India with Superior client servicing, supported bySophisticated and flexible computerized systems. It is the only custodian in India to earn the ISO 90012000 standards certification. Standard Chartered has received top ratings in Industrys benchmark surveys the Global custodian survey 2000 and the Global Investor Survey 2000.Global MarketsStandard Charted provides a complete 24 hour coverage of the worlds foreign exchange markets.It provides a broad range of products like Exotic currencies, Derivatives, Debt Capital markets, Currency Options and Electronic trading.Standard Chartered was the first bank in India to introduce its on-Line Treasury, a browser enabled dealing system that enables real-time transactions. Standard Chartered is also recognized as a leading market for the Indian Rupee.The Banks Treasury-the No.1 Treasury in India-is amongst the most active treasuries in the country, being a market maker in local currency and money markets. While we seek to provide advice, treasury products and services to our global clients in the Indian market, we also have active relationships with some of the biggest and most diversified Indian companies and many medium sized companies.With a large specialized sales force, we cater to all foreign exchange, money market and risk management needs of our corporate clients.Treasury has an active inter bank desk which, apart from being a market maker in the Indian Rupee spot and the forwards market, actively quotes for other currencies.The money Market Desk is a leading player in the Rupee markets and in Government and corporate debt trading.The derivative Desk is a market maker in the Rupee Interest rate swap market. We also run one of Indias largest derivative books and offer products up to 7 years tenor.The corporate desk is amongst the largest among the foreign banks in India. With a presence in 5 major cities with state of the art dealing rooms and a corporate sales force of over 20 dealers, we have an unmatched reach and service capability across India. In addition to servicing currency market and investment needs of corporate clients, our corporate desk is active in advisory services pertaining to structuring and risk management.Standard Chartered Mutual Fund i s one of the largest and fastest growing debt funds in the market. Standard Chartered Mutual Fund is the only fund that focuses only on the debt segment and prides itself on having developed one of the finest interest rate tracking models.Consumer Bank-ProductsTypes of DepositsBank DepositsB