Working report of standard charterd bank bd ltd.

A WORKING REPORT ON STANDARD CHARTERED BANK By Nafis Ahmed ID: 0720129 An Internship Report Presented in Partial Fulfillment of the Requirements for the Degree Bachelor of Business Administration (BBA) INDEPENDENT UNIVERSITY, BANGLADESH December 5th 2010 A WORKING REPORT ON STANDARD CHARTERED BANK By Nafis Ahmed ID: 0720129 Has Been Approved November 2010 _____________________ Mr. Chowdhury Rajkin Mohsin Lecturer, Finance School of Business Independent University, Bangladesh. LETTER OF TRANSMITTAL December 5, 2010 To Mr. Chowdhury Rajkin Mohsin Lecturer of Finance, Independent University, Bangladesh Sub: Submission of Internship Working Report. Dear Sir, Here is my internship working report on “ Standard Chartered Bank (SCB).

” I am submitting this report as the part of my internship (BBA-499A) in Standard Chartered Bank (SCB). While preparing this report, I tried my level best to follow your instructions and the instructions that have given to me by my organization supervisor. The entire report is based on my practical experience in the Bank’s Head Office, SCB house Gulshan-1. I have tried my level best to provide what I have learned during the internship program at Standard Chartered Bank, SCB house, Dhaka. I shall be highly encouraged if you are kind enough to receive this report.

3 Consumer Banking 2. 4 Operational Structure of Transaction Banking Chapter 3: Financial Analysis 3. 0 Operating Profit of SCB 3. 1 Operating revenue of SCB 3. 2 Deposits of SCB 3.

3 Loan and Advances of SCB 3. 4 Comparison between SCB and other FCBs in terms of Deposits 3. Comparison between SCB and top four PCBs in terms of EBT Chapter-4: My Work Experiences at SCB Chapter 5: Problem Identified 5. 1 Recommendation Chapter 6: Conclusion References 1 1 2 2 3 3 4 6 6 7 7 8 8 11 11 11 12 12 13 13 14 16 17 19 20 List of Figures Fig 1: Strategy of SCB Fig 2: Chain of command of SCB Fig 3: SCB functional areas of Bangladesh Fig 4: Transaction Banking of SCB Fig 5: Operating Profit of SCB Fig 6: Operating revenue of SCB Fig 7: Deposits of SCB Fig 8: Loan and Advances of SCB 2 6 7 8 11 11 12 12 CHAPTER-1: COMPANY INFORMATION 1. Background of the Company The Standard Chartered Bank PLC is an international banking group that is incorporated in the UK, with headquarters in London. The group focuses its activities in Asia, Africa and the Middle East and its operation is segmented under six regions: LTK and Europe, Middle East and South Asia (MESA), South East Asia, and the Americas.

Standard Chartered Bank’s worldwide network facilitates convenient connections with foreign trade and remittance business. Standard Chartered Bank’s branch banking license in Bangladesh allows it to offer a full range of banking services. The Bank presently has 18 outlets in 5 cities serving over 1, 25, 000 customers in the country. The network of SCB Bank in Bangladesh includes: ? 10 Branches in Dhaka city ? 1 Branch in Savar EPZ (recently started with full banking operations) ? 1 Branch in Narayanganj ? 3 Branches in Chittagong ? 1 Branch in Khulna ? 1 Branch in Sylhet. ? 1 Branch in BograCore Business in Bangladesh Wholesale Banking (WB) and Consumer Banking (CB) 1. 4 Key Success Factor of Standard Chartered Bank in Bangladesh ? ? It has the widest distribution network among foreign banks through its own branches and correspondent banks.

Provider of the highest range of products and strategic points of delivery ? ? Its portfolio includes the biggest names. Long standing presence in the Asia, Africa and the Middle East and therefore longest standing relationships. 1. 5 Product / Services Consumer and Corporate Banking Services The bank serves both Consumer and Wholesale Banking for customers or corporate clients. A list of Consumer and Corporate Banking is given below: Serial no. 1.

by this module using SMART card an authorized user can transfer the payment or issuing draft from any time and any corner of the world via Internet. 5. Cheque WriterMaking sure that all the cheaque is being preformed and serially numbered, a corporate customer now having a better security checking in terms of issuing cheaques. Chapter 2: Organizational Part 2. 0 Organ gram of SCB CEO Head of IT Head of Consumer CFO COO Head of HR Head of CR Head of Service Delivery Head of Credit Head of GSM Head of Global Market Head of Corporate Affairs Multinationals MNE (ASSETS) Head of Transaction Banking Large Local (Assets) Local (Assets) Head of Products Head of Supply Chain Head of solution Delivery Direct Report BDMBusiness development Mgt Assistant Manager of Supply ChainAssistant Manager of Solution Delivery Fig 2: Chain of command of SCB 2. 1 Organization Structure at Bangladesh The Standard Chartered Bank in Bangladesh has its headquarters in Dhaka.

While the full range of services is available at the headquarters, other branches offer specific services appropriate for the location. SCB’s functional areas in Bangladesh are shown below: SCB Bangladesh Business Division Support Division Operations Wholesale Banking (WB) Consumer Banking (CB) Finance It service Corporate Banking Treasury Financial Institutions Human Resource Legal and Compliance Credit Global Local Fig 3: SCB functional areas of Bangladesh . 2 Wholesale Banking Its principal strengths are in supporting regional and international cross-border trade and investments. Products and services are focused primarily on these areas, notably trade banking, cash management and custody. Institutional Banking manages the Group’s relationships with banks, investment companies and other financial institutions. It aims to be the ‘ Banker’s Bank’ operating in customers’ time zones and providing network linkage between international markets.

Bangladesh Transaction Banking Team successfully manages a large relationship team and it is one of the major relationship revenue contributors. Their core knowledge and expertise helps them to understand customer’s needs and problems and the quick resolution formula enable them to become the ‘ Right Partner’ to their valued clients. TB is the core banker and market leader in managing business with Development Organizations (DOs), Airline Relationships, Shipping Industry. They enjoy 82% of DO business amongst the Foreign Bank and 92% market share in the Airlines Industry. Currently they are holding 72% market share amongst foreign shipping lines. Chapter 3: Financial Highlights 3.

Operating Profit of SCB From the graph we can see that every year Operating Profit of SCB is increasing. In 2005 the Operating Profit of SCB was BDT 4155 Million and in 2009 it was 7877 Million. That is within 4 year it increased by 89. 5 %. 8000 7000 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 Operating Profit (BDT Million) Fig 5: Operating Profit of SCB 3.

Brief descriptions of my duties are given below: TB financial Reporting: From the Wholesale Banking Balance sheet I used to repare the TB financial update report every day. In Transaction banking (TB) department, individual employee deals with individual corporate customer. Some customer use over draft, trade loan, fixed loan, revolving loan or go for different kinds of deposits like saving account, custody call or fixed deposit, so for this reason TB department assigned me to prepare report on Daily Assets, Contingent and Liability Balance. I used to prepare it on excel sheets and all the instructions were provided by them. After that I used to prepare a summary report.

E-procurement Reporting: SCB Transaction Banking department buy different types of hardware, software and stationary from various vendors. Sometime they buy it on credit. So when any claim used to come for the payment I had to upload that claim into the MIS of SCB by mentioning the name of vendor, vendor code, number of items, item id, price, purchasing date, payment date so that the accounts department can see that and make necessary steps to pay the due. Visa Fees Collection: Standard Chartered Bank is the only bank in Bangladesh that collects DV visa fees. I had an experience to work at SCB DV immigration Visa Fee Collection centre for 7 days when I was shifted to Gulshan North branch. There I had to instruct customers, how to fill up the deposit forms and keep a record of it.

? Another important issue for Standard Chartered Bank is their lower interest rate for all depository account compare with all local banks. This creates a negative image for customers for opening an account for higher income. ? SCB is heavily dependent on Head Office for decision making. I think they should decentralize their decision making process by giving more decision making power to other branches operating in Bangladesh. ? SCB has fewer branches than its domestic competitors do.

For instance, SCB has only 26 branches in Bangladesh whereas Islami Bank Bangladesh Limited has 176 branches in Bangladesh. ? Not enough promotional activities. SCB should promote their product and services more so that individual and corporate customer can know more about it. ? Most of the Branches are situated are urban areas. As a result SCB has not that much good market share like other local banks.

They can use it for correspondence purpose but for normal transaction purpose they can use the brown envelope. For internal office purpose they can use normal paper instead of offset paper. Reduction of charges Single most important thing to attract the customer for Standard Chartered Bank is to reduce the charges. There is an existing perception prevails in the customers’ mind that this bank charges illogically higher service charges. For e. g.

if a customer wants to issue a credit card he might choose Prime Bank’s credit card because the charges for a silver Master card is Tk500 per year whereas at Standard Chartered Bank the charge for same is Tk1, 000. Lease financing They can start lease financing since it is now one of the profitable financial services. There are customers who prefer lease to avoid taxes. Prime, DBBL, Premier has lease financing scheme which is a very profitable one. Standard Chartered Bank can invest in transport sector or they can provide lease for capital machinery’s to their corporate clients.

com/en/about/Pages/aboutus. aspx 3. http://wholesalebanking. standardchartered. com/en/capabilities/transactionbanking/cashmana gement/Pages/default. aspx 4.

http://www. bangladesh-bank. org/ 5. http://www. bangladesh-bank. org/pub/annual/anreport/ar0405/chap5 6.