Summer Training Report On Standard Chartered Bank

SUMMER TRAINING REPORT
On
STANDARD CHARTERED BANK
Standard Chartered Bank Saving Account Comparison, Insurance and

Mutual Fund
Submitted in partial fulfillment of the requirements of the two year

Post Graduate Program (PGP).
Submitted by
Brijesh Kumar Singh
……………………………………………………………………………….
Roll No: PGP20095884
Batch: 2009-2011
IILM Institute for Higher Education

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ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude to all

those who have contributed significantly by sharing their knowledge and
experience in the completion of this project work.
I am greatly obliged to Miss Anna Lungany, Placements, IILM,

Gurgaon for providing me the right kind of opportunity and facilities to
complete this venture.
My first word of gratitude is due to Mr. Ashish Agarwal, Trainee at

Standard Chartered Bank, Office – Gurgaon, my corporate guide, for his kind help
and support and for his valuable guidance throughout the project. I am thankful to
him for providing me with necessary insights and helping me out at every single
step.
My heartfelt thanks to my respected Faculty Guide namely Miss. Shweta

Mehta Without her continuous help the project would not have been materialized
in the present form. Her valuable suggestions helped me at every step.
Finally, I would also like to thank all my dear friends for their kind
cooperation, advice and encouragement during the long and arduous task of
preparing this report and carrying out the project.
At last but not the least, who are always at the top of my heart, my
dear family members whose blessings, inspiration and encouragement have
resulted in the successful completion of this project.
Brijesh Kumar Singh

MBA Marketing & Banking
IILM Institute For Higher Education

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DECLARATION FORM
I hereby declare that the Project work entitled, Standard Chartered Bank Saving Account
Comparison, Insurance and Mutual Fund submitted by me for the partial fulfillment of the Post
Graduate Program (PGP) to IILM Institute for Higher Education, is my own original work and
has not been submitted earlier either to IILM or to any other Institution for the fulfillment of
the requirement for any course of study. I also declare that no chapter of this manuscript in
whole or in part is lifted and incorporated in this report from any earlier / other work done by
me or others.
Place : Gurgaon
Date : 28 June 2010
Signature of Student
Name of Student : Brijesh Kumar Singh
Address: _____________________________
_____________________________
_____________________________

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PREFACE
India is a developing country and we all know that banking sector plays a very
important role. In development with the increasing use of banking and finance
in every field, new trends in their technology and modern use are being
evolved day to day to meet the requirements. In fact “BANKING” has become
the need of today.
The purpose of PROJECT REPORT is to expose the students in the market and
in the field of banking, finance and investments and to develop the ability in
the students to deal with all types of customers.
Preparing project report in the summer vacations and undergoing the

summer training is the indispensable part of the college period. It provides the
opportunity to review what we have gained in the training period and also
provides the way to convey the knowledge and ideas to others.
The present project provides the information on the “STANDARD

CHARTERED BANK”.
Learning is not possible in solitude and has to have the support and able
guidance of some people around us in various roles and capacities. The
satisfaction and euphoria that accompanies the successful completion of any
task would be incomplete without the mention of the people who made it
possible because success is the epitome of hard work, undeterred missionary
zeal, fast determination, and consideration.
Therefore, we consider it a pleasant duty to express our heartiest

appreciation, gratitude, and indebtedness to our project guide Mr. Mr. Ashish
Agarwal for his keen interest, sincere extortion, invaluable and pain taking
excellent guidance, continuous calm endurance, inspiration and
encouragement during each phase of the present project.

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Contents
Overview of the Banking System..............................................................6
History of Standard Chartered................................................................16
Standard Chartered Bank in India...........................................................17
Saving account........................................................................................37
Saving Account in Standard Chartered Bank..........................................37
Comparison of various bank’s Service and Charges with Standard
Chartered Bank.......................................................................................41
Conclusion...............................................................................................53
Insurance................................................................................................54
Unit Linked Insurance Plan.....................................................................56
ULIP in Standard Chartered Bank...........................................................58
CONCLUSION ABOUT MARKET POTENTIAL OF ULIPS.............................62
Mutual funds...........................................................................................63
ULIP Vs. Mutual Funds............................................................................78
SWOT Analysis OF Standard Chartered Bank.........................................85
CONCLUSIONS.........................................................................................86
RECOMMENDATIONS FOR INCREASING MARKET SHARE OF STANDARD
CHARTERED BANK...................................................................................87
RECOMMENDATIONS FOR ULIPS............................................................91
LIMITATIONS...........................................................................................93
REFRENCES..............................................................................................94

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Overview of the Banking System
Until the 1950s, banking in India was carried on by a large number of banks,
many of them quite small. India is still primarily an agricultural country, with
an economic and social structure based largely on the village. The integration
of banking has been impeded by poor communications, by illiteracy, and by
the barriers of language and caste.
Modern banking in India is said to be developed during the British era. In the
first half of the 19th century, the British East India Company established three
banks – the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank
of Madras in 1843. But in the course of time these three banks were
amalgamated to a new bank called Imperial Bank and later it was taken over
by the State Bank of India in 1955. Allahabad Bank was the first fully Indian
owned bank. The Reserve Bank of India was established in 1935 followed by
other banks like Punjab National Bank, Bank of India, Canara Bank and Indian
Bank.
In 1969, 14 major banks were nationalized and in 1980, 6 major private

sector banks were taken over by the government. Today, commercial banking
system in India is divided into following categories.

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Central Bank
The Reserve Bank of India is the central Bank that is fully owned by the
Government. It is governed by a central board (headed by a Governor)
appointed by the Central Government. It issues guidelines for the functioning
of all banks operating within the country.
Public Sector Banks
a. State Bank of India and its associate banks called the State Bank Group
b. 19 nationalized banks
c. Regional rural banks mainly sponsored by public sector banks
Private Sector Banks
a. Old generation private banks

b. New generation private banks
c. Foreign banks operating in India
d. Scheduled co-operative banks
e. Non-scheduled banks
Co-operative Sector
The co-operative sector is very much useful for rural people. The co-operative
banking sector is divided into the following categories.
a. State co-operative Banks

b. Central co-operative banks
c. Primary Agriculture Credit Societies

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Development Banks/Financial Institutions
 IFCI
 IDBI
 ICICI
 IIBI
 NABARD
 Export-Import Bank of India
 National Housing Bank
 Small Industries Development Bank of India
 North Eastern Development Finance Corporation
Banking in India is so convenient and hassle free that one (individual, groups
or whatever the case may be) can easily process transactions as and when
required. The most common services offered by banks in India are as follow:
 Bank accounts: It is the most common service of the banking sector. An

individual can open a bank account which can be either savings, current
or term deposits.
 Loans: You can approach all banks for different kinds of loans. It can be
a home loan, car loan, personal loan, loan against shares and
educational loans.

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 Money Transfer: Banks can transfer money from one corner of the globe
to the other by issuing demand drafts, money orders or cheques.
 Credit and debit cards: Most banks offer credit cards to their customers
which can be used to purchase products and services, or borrow money.
 Lockers: Most banks have safe deposit lockers which can be used by the
customers for storing valuables, like important documents or jewellery.

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Structure of the Organized Banking Sector in India

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Banking service for NRIs:
Non Resident Indians or NRIs can open accounts in almost all Indian banks.
The three types of accounts that NRIs can open are:
o Non-Resident (Ordinary) Account - NRO A/c

o Non-Resident (External) Rupee Account - NRE A/c
o Non-Resident (Foreign Currency) Account - FCNR A/c
Reserve Bank of India (RBI)
The central bank of the country is the Reserve Bank of India (RBI). Reserve
Bank of India was nationalized in the year 1949. The body of the central bank
consists of the Governor and four Deputy Governors, one Government official
from the Ministry of Finance, ten nominated Directors by the Government to
give representation to important elements in the economic life of the country,
and four nominated Directors by the Central Government to represent the
four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New
Delhi. Local Boards consist of five members each Central Government
appointed for a term of four years to represent territorial and economic
interests and the interests of co-operative and indigenous banks. The need for
bank is:
 To regulate the issue of banknotes

 To maintain reserves with a view to securing monetary stability and

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 To operate the credit and currency system of the country to its

advantage.
Functions of Reserve Bank of India
The Reserve Bank of India performs all the important functions of a central
bank.
Bank of Issue
The Bank has the sole right to issue bank notes of all denominations. The
distribution of rupee notes and coins and small coins all over the country is
undertaken by it as agent of the Government. The Reserve Bank has a separate
Issue Department which is concerned with the issue of currency notes. The
Reserve Bank of India is required to maintain gold and foreign exchange
reserves of Ra. 200 crores, of which at least Rs. 115 crores should be in gold.
The system as it exists today is known as the minimum reserve system.
Banker to Government
The second important function of the Reserve Bank of India is to act as

Government banker, agent and adviser. The Reserve Bank is agent of Central
Government and of all State Governments in India excepting that of Jammu
and Kashmir on all monetary and banking matters. The Reserve Bank has the
obligation to transact Government business, via. to keep the cash balances as
deposits free of interest, to receive and to make payments on behalf of the

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Government and to carry out their exchange remittances and other banking
operations. It makes loans and advances to the States and local authorities
Bankers' Bank and Lender of the Last Resort
The Reserve Bank of India acts as the bankers' bank. According to the
provisions of the Banking Companies Act of 1949, every scheduled bank was
required to maintain with the Reserve Bank a cash balance equivalent to 5%
of its demand liabilities and 2 per cent of its time liabilities in India. By an
amendment of 1962, the distinction between demand and time liabilities was
abolished and banks have been asked to keep cash reserves equal to 8.25%
per cent of their aggregate deposit liabilities. The minimum cash
requirements can be changed by the Reserve Bank of India.
The scheduled banks can borrow from the Reserve Bank of India on the basis
of eligible securities or get financial accommodation in times of need or
stringency by rediscounting bills of exchange. Since commercial banks can
always expect the Reserve Bank of India to come to their help in times of
banking crisis the Reserve Bank becomes not only the banker's bank but also
the lender of the last resort.

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Controller of Credit
The Reserve Bank of India is the controller of credit i.e. it has the power to
influence the volume of credit created by banks in India. It can do so through
changing the Bank rate or through open market operations. It can ask any
particular bank or the whole banking system not to lend to particular groups
or persons on the basis of certain types of securities.
The Reserve Bank of India is armed with many more powers to control the
Indian money market. Each scheduled bank must send a weekly return to the
Reserve Bank showing, in detail, its assets and liabilities. This power of the
Bank to call for information is also intended to give it effective control of the
credit system. The Reserve Bank has also the power to inspect the accounts of
any commercial bank.
The Reserve Bank of India, therefore, has the following powers:
(a) It holds the cash reserves of all the scheduled banks.
(b) It controls the credit operations of banks through quantitative and

qualitative controls.
(c) It controls the banking system through the system of licensing, inspection
and calling for information.
(d) It acts as the lender of the last resort by providing rediscount facilities to
scheduled banks.

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Supervisory functions
In addition to its traditional central banking functions, the Reserve bank has
certain non-monetary functions of the nature of supervision of banks and
promotion of sound banking in India. RBI has wide powers of supervision and
control over commercial and co-operative banks, relating to licensing and
establishments, branch expansion, liquidity of their assets, management and
methods of working, amalgamation, reconstruction, and liquidation. The RBI
is authorised to carry out periodical inspections of the banks and to call for
returns and necessary information from them. The supervisory functions of
the RBI have helped a great deal in improving the standard of banking in India
to develop on sound lines and to improve the methods of their operation
Promotional functions
The Bank performs a variety of developmental and promotional functions,

which, at one time, were regarded as outside the normal scope of central
banking. The Reserve Bank was asked to promote banking habit, extend
banking facilities to rural and semi-urban areas, and establish and promote
new specialised financing agencies. Accordingly, the Reserve Bank has helped
in the setting up of the IFCI and the SFC; it set up the Deposit Insurance
Corporation in 1962, the Unit Trust of India in 1964, the Industrial
Development Bank of India also in 1964, the Agricultural Refinance
Corporation of India in 1963 and the Industrial Reconstruction Corporation of
India in 1972. These institutions were set up directly or indirectly by the
Reserve Bank to promote saving habit and to mobilise savings, and to provide
industrial finance as well as agricultural finance. The RBI has set up the
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Agricultural Refinance and Development Corporation to provide long-term

finance to farmers.

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History of Standard Chartered
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.
The Standard Bank was founded in the Cape Province of South Africa in 1862
by John Paterson. Commenced business in Port Elizabeth, South Africa, in
January 1863.
The Chartered Bank was 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.
This friendly merger allowed both banks to capitalise on the expansion of

trade caused by the increased movement of goods from Europe to the East
and Africa.
In 1986 a hostile takeover bid was made for the Group by Lloyds Bank of the
United Kingdom. When the bid was defeated, Standard Chartered entered a
period of change. Provisions had to be made against third world debt
exposure and loans to corporations and entrepreneurs who could not meet
their commitments. Standard Chartered began a series of divestments notably
in the United States and South Africa, and also entered into a number of asset
sales.

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Since the early 90s, Standard Chartered has focused on developing its strong
franchises in Asia, the Middle East and Africa, using its operations in the
United Kingdom and North America to provide customers with a bridge
between these markets. Bank also focused on consumer, corporate and
institutional banking, as well as the provision of treasury services – areas in
which the Group has particular strength and expertise.
In the new millennium we acquired Grindlays Bank from the ANZ Group and
the Chase Consumer Banking operations in Hong Kong in 2000.
Standard Chartered Bank in India

Standard Chartered is a London based international bank with significant
operations in Asia, Africa, the Middle East and Latin America. 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.
Chartered Bank opened its first overseas branch in India, at Kolkata, on 12

April 1858. During that time Kolkata was the most important commercial city
and was the hub of jute and indigo trades. With the opening of the Suez Canal
in 1869 and the growth of cotton trade, Bombay replaced Kolkata as the main
commercial center. Hence Standard Chartered shifted its main operations to
Bombay. Today the Bank's branches and sub-branches in India are directed
and administered from Bombay with Kolkata remaining an important trading
and banking centre.

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To cater to diverse financial needs, Standard Chartered offers a wide range of

state-of-the-art banking products and services through its network of 90
branches in 31 cities across the country.
Some other fact about SCB
 Over 50 nationalities are represented among our top 500 senior

executives.
 SCB is the only international bank with over 90% profits from Asia,
Africa, and the Middle-East.
 SCB is the only international bank with a long unbroken banking history
in India and China.
 SCB is the largest international bank in India in terms of branch
network and profits
 SCB is the only bank in the Falkland Islands.
 SCB is one of three note issuing banks in Hong Kong.
Principles and Value
 At Standard Chartered our success is built on teamwork, partnership

and the diversity of our people.
 At the heart of our values lie diversity and inclusion. They are a
fundamental part of our culture, and constitute a long-term priority in
our aim to become the world's best international bank.

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 Today we employ 73,000 people, representing 115 nationalities, and

you'll find 61 nationalities among our 500 most senior leaders.
 We believe this diversity helps to fuel creativity and innovation,

supporting the development of exciting new products and services for
our customers worldwide.
SCB Stand for
Strategic intent
 The world's best international bank

 Leading the way in Asia, Africa and the Middle East
Brand promise
 Leading by Example to be The Right Partner
Values
 Responsive
 Trustworthy
 International
 Creative
 Courageous
Approach
 Participation - Focusing on attractive, growing markets where we can

leverage our relationships and expertise

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 Competitive positioning - Combining global capability, deep local

knowledge and creativity to outperform our competitors
 Management Discipline - Continuously improving the way we work,
balancing the pursuit of growth with firm control of costs and risks
Commitment to stakeholders
 Customers
Passionate about our customers' success, delighting them with the

quality of our service
 Our People
Helping our people to grow, enabling individuals to make a difference

and teams to win
 Communities
Trusted and caring, dedicated to making a difference
 Investors
A distinctive investment delivering outstanding performance and

superior returns.
 Regulators
Exemplary governance and ethics wherever we are.
Products and Services

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Personal Banking:-
Through our global network of over 1,700 branches and outlets, we offer
personal financial solutions to meet the needs of more than 14 million
customers across Asia, Africa and the Middle East.
 Personal Banking Plans

 Accounts
 Debit Cards
 Prepaid Cards
 Credit Cards
 Loans
 Investment Services
 Insurance
 Online Services
 Special Offers
 NRI Accounts
Private Banking:-
Our Private Bank advisors and investment specialists provide customised

solutions to meet the unique needs and aspirations of high net worth clients.
Wholesale Banking:-
Headquartered in Singapore and London, with on-the-ground expertise that

spans our global network, our Wholesale Banking division provides corporate
and institutional clients with innovative solutions in trade finance, cash

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management, securities services, foreign exchange and risk management,

capital raising, and corporate finance.
SME Banking:-
SME Banking division offers a wide range of products and services to help
small and medium-sized enterprises manage the demands of a growing
business.
 Term Loan
 Express Trade
 Trade Services & Working Capital
 Business Installment Loan
 International Trade Account
 Loan/Overdraft Against Property
Islamic Banking:-
Standard Chartered Saadiq's dedicated Islamic Banking team provides

comprehensive international banking services and a wide range of Shariah
compliant financial products that are based on Islamic values.
Online Banking:-
Standard Chartered Online is an innovative Online Banking service that you

can tailor to suit your precise banking needs. It gives you convenient, round-
the-clock banking services ranging from day-to-day account transfer
transactions to real-time valuable financial information. Now you can manage
your finances anytime, anywhere.

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Mobile Banking:-
Standard Chartered Bank offer mobile banking to access your bank account
anytime and from anywhere in the world.
Features of mobile banking:-
 Balance Information –View balances of your linked savings and current

accounts
 Mini Statement – Get details on the last 3 transactions carried out on
your bank account
 Cheque Book Request – You can now order for a cheque book from your
Mobile Phone!
 Bank Statement Request – Bank Statement requests can be placed
through your Mobile phone
Different Types of Saving Account in Standard Chartered Bank
Standard chartered Bank offers basically 6 different type of saving account.

According to consumer needs it functioned and very useful.
 aXcess plus account

 Super value account
 Parivaar account
 No frills account
 aaSaan account
 2-in-1 account

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Actually my survey has done in Metro city where only 4 types of saving
account runs. “No frills” and “aaSaan account” are not for Metro cities.
Establishment of Standard Chartered Bank around the world
Country Year Country Year Established

Established
United Kingdom 1853 Australia 1964
China, India, Sri Lanka 1858 Mexico, Oman 1968
Hong Kong, Singapore 1859 Peru 1973
Indonesia, Pakistan 1863 Jersey 1978
Philippines 1872 Brazil 1979
Malaysia 1875 Venezuela 1980
Falkland Islands,
Japan 1880 1983
Macau
Zimbabwe 1892 Taiwan 1985
The Gambia, Sierra
1894 Cameroon 1986
Leone, Thailand
Ghana 1896 Nepal 1987
Botswana 1897 Vietnam 1990
Cambodia, South
USA 1902 1992
Africa
Bangladesh 1905 Iran 1993
Zambia 1906 Colombia 1995
Kenya 1911 Laos, Argentina 1996
Uganda 1912 Nigeria 1999
Tanzania 1917 Lebanon 2000
Bahrain 1920 Cote d’Ivoire 2001
Jordan 1925 Mauritius 2002
Korea 1929 Turkey 2003
Qatar 1950 Afghanistan 2004

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Recent strategic alliances and acquisitions
2005 and 2006 were historic years as Bank achieved several milestones with
a number of strategic alliances and acquisitions that will extend our customer
or geographic reach and broaden our product range.
 We completed, rebranded and successfully integrated SC First Bank in

Korea, which to date is the biggest acquisition in our history.
 We completed full integration between Standard Chartered Bank
Thailand and Standard Chartered Nakornthon Bank in October.
 We formed strategic alliances with Fleming Family & Partners to expand
private wealth management in Asia and the Middle East.
 We acquired stakes in ACB Vietnam and Travelex.
 We acquired the business operations of American Express Bank in
Bangladesh.
 We acquired a stake in Bohai Bank in Tianjin, China, making us the first
foreign bank to be allowed a stake in a local bank in China.
 We acquired an additional 26% stake in Permata Bank through our
consortium with PT Astra International, thus giving the consortium a
total stake of 89%.
 1957 – Eastern bank take over by Standard Chartered,
 1965 – Bank of West Africa acquired
 1973 – The Hodge Group was acquired in the Uk
 1979 – Union Bank of California Acquired

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 1983 - Standard Chartered Merchant bank Acquired Midland &

International Banks Limited
 1993 – SCB acquires the First interstate bank of California
 1996 – SCB Cameroon becomes 100% subsidiary.
 1999 – SCB agrees to Acquire 89% of share Capital of Metropolitan Bank
of Lebanon
 2000 – Grind lays bank acquired form ANZ bank
 2000 – Chase Manhattan Card Acquired in Hong Kong
 2004 – 63 % Stake Acquired in Pemata bank
 2005 – Acquisition of Korea first bank in South Korea.
 2006 – Hsinchu International Bank Acquired
 We acquired a 25% stake in First Africa Group Holdings in June 2006.
 2007 – American Express Bank Acquired
 2007 – Acquisition of 74.9% Strategic Stake in India’s UTI Securities.
 2007 – Union Bank of Pakistan Acquired
 2009 - SCB Kolkata’s heritage building on Indian 5 Rupees Postal Stamp
and England Letter Envelop
 2010 -
Standard Chartered – leading the way
Standard Chartered PLC is listed on both the London Stock Exchange and the
Hong Kong Stock Exchange and is consistently ranked in the top 25 among
FTSE-100 companies by market capitalization.

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Standard Chartered has a history of over 150 years in banking and operates in
many of the world's fastest-growing markets with an extensive global
network of over 1,400 branches (including subsidiaries, associates and joint
ventures) in over 50 countries in the Asia Pacific Region, South Asia, the
Middle East, Africa, the United Kingdom and the Americas.
As one of the world's most international banks, Standard Chartered employs

almost 60,000 people, representing over 100 nationalities, worldwide. This
diversity lies at the heart of the Bank's values and supports the Bank's growth
as the world increasingly becomes one market.
With strong organic growth supported by strategic alliances and acquisitions

and driven by its strengths in the balance and diversity of its business,
products, geography and people, Standard Chartered is well positioned in the
emerging trade corridors of Asia, Africa and the Middle East.
Standard Chartered derives over 90 per cent of profits from Asia, Africa and
the Middle East. Serving both Consumer and Wholesale Banking customers
worldwide, the Bank combines deep local knowledge with global capability to
offer a wide range of innovative products and services as well as award-
winning solutions.
Trusted across its network for its standard of governance and corporate
responsibility, Standard Chartered takes a long term view of the consequences
of its actions to ensure that the Bank builds a sustainable business through
social inclusion, environmental protection and good governance.

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Standard Chartered is also committed to all its stakeholders by living its

values in its approach towards managing its people, exceeding expectations of
its customers, making a difference in communities and working with
regulators.
Great Place to Work
Standard Chartered employs almost 60,000 people in 56 countries and

territories, representing over 100 nationalities. Demographic changes,
competition in our markets and our own rapid growth provide a bigger
challenge than ever to attract, develop and engage our employees to continue
to deliver strong results.
As we grow, we believe our diverse and inclusive approach provides engaging

opportunities for our employees to develop, both as individuals and as part of
a team. We are committed to creating a healthy, safe and fulfilling work
environment in which people can grow, individuals can make a difference and
teams can win.
Our approach to managing people is underpinned by four principles:
 A focus on managing talent to identify, reward and retain talented

employees
 Building a strengths-based approach by providing the skills to develop

individuals and teams by focusing on people's personal strengths
 A commitment to drive employee engagement through the development

of exceptional managers with the skills to identify and build talent

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 Creating a diverse and inclusive workplace that encourages our

employees to achieve their potential and support our growth
Priorities at Standard Chartered
At Standard Chartered, we believe that our future success depends on our

ability to deliver a sustainable business. Our 'building a sustainable business'
strategy will help us take a long-term view of the implications of everything
we do. This means taking responsible decisions that benefit our business, the
economy, society and the environment – and build the trust of all our
stakeholders.
Our 'building a sustainable business' strategy explicitly recognizes seven

areas where we and our stakeholders believe we are most likely to make the
greatest contribution to sustainability.
They are:
 Sustainable lending – making sure when we lend money we are aware

of the environmental, social and governance risks attached to such
decisions and that we take steps to address them
 Tackling financial crime – making sure that we have the right systems
in place to detect such things as fraud and money laundering and
exceed, rather than simply meet, increasingly stringent legal
requirements in this field
 Access to financial services – making sure we develop new ways for

those deprived of banking services to get proper access to finance so

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that they can improve their standard of living and economic

independence
 Responsible selling & marketing – making sure we treat customers

fairly and set the highest standards in service and transparency
 Protecting the environment – making sure we not only minimize our

own direct impact on the environment but support others, such as
customers, to do the same. We also want to support the development
and commercialization of technologies and schemes that tackle
environmental threats like climate change
 Great place to work – making sure that with our people, who represent
over 100 nationalities from over 50 countries, feel valued, included and
engaged. We're determined to attract, develop and retain the best
people and to leverage the strength the diversity of our people brings,
which is an incomparable advantage
 Community investment – making sure we involve our employees and

utilise our core expertise, networks and resources to help communities
develop and economies to grow

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Governance
The governance structure we have set up for Sustainability provides strategic

direction for the Bank and ensures we continue to make progress with our
approach to sustainable development.
The Corporate Responsibility and Community Committee sit at the top of this
structure alongside the Remuneration, Audit and Risk, and Nomination
Committees of our Board. It is supported by a Group Sustainability team,
steering groups for specific programmes and our branches and offices in each
country we operate in.
The Committee is chaired by Mervyn Davies, the Group Chairman, and meets
quarterly. It drives the Sustainability agenda at Standard Chartered and is
responsible for responding to issues coming out of new Sustainability
legislation, regulation, stakeholder guidance and reporting and for making
sure our activities are aligned with our overall business strategy. It also
ensures we publish a Sustainability report, supported by accurate data, each
year, in line with best practice.
A dedicated Sustainability team, based in the London office, supports the

Committee, the Business and other Group functions. The role of the team is to
talk with stakeholders, monitor good practice and flag up potential trends and
emerging issues. It co-ordinates the collection of data and is responsible for
our annual Sustainability Review and web site, participating in thought
leadership events and raising our Sustainability profile outside the Bank.

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Nine Steering Groups or Committees put the Bank's strategy into action, co-
ordinate Group-wide initiatives and provide policy recommendations to the
Board, its various committees or the Corporate Responsibility and Community
Committee. They are:
 Strategic Sourcing and Vendor Management Committee
 Diversity Council
 Environmental Steering Group
 Health and Safety Steering Group
 Group Risk Committee
 Reputation Risk Committees
 Seeing is Believing Committee
 Living with HIV Advisory Committee
 Community Partnership Boards
Because our business is spread across the globe in very different market
places, each Country Head is responsible for identifying and responding to
local Sustainability issues. It is the responsibility of each business unit to
adhere to policies that have been set on a global basis. Where local standards
exceed group set policies, the higher standard is adopted.
Engagement

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Helping stakeholders understand the way we operate and the challenges we

face is fundamental to making progress with our 'building a sustainable
business' strategy.
Engagement is a word used by many organizations, but it means something

very specific to Standard Chartered. It is the way we go about communicating
with three distinct but interconnected audiences:
 Our own employees – we want them to really understand what

"Building a sustainable business" means
 People and organizations that use or influence our products and

services – we want to work closely with them to develop and promote
sustainable services
 People and organizations that have the power to make a wider

difference – we want to use our geographic reach to promote the need
for sustainable development
We have been working on our stakeholder engagement programme for some

years. Work in this area has recently increased as continue to build a clearer
picture of our global stakeholder audience including government departments
and agencies, socially responsible investors, academic institutions, business
associations and non-governmental organisations. In 2006 we invited 60 of
our key stakeholders to help us develop our 'building a sustainable business'
strategy. Their contributions – many of which are included in our 2006
Sustainability Review – helped us decide what our sustainable development
priorities should be.

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Building a truly relevant stakeholder network is challenging, however, it is

extremely important that we continue to build our network in the years
ahead.
One-Stop Range of Products and Services

We have a full range of foreign exchange and risk management solutions to
meet the needs of clients across the world.
Standard Chartered Alternate Investment Group
Standard Chartered Bank's Alternate Investment Group focuses on distressed

and high-yield opportunities by investing in senior debt, mezzanine or equity
instruments. In addition, it provide asset management services to investment
banks, financial institutions and value investors as well as advisory services to
companies in financial distress or requiring assistance with their capital
structure.
Our Business
Investments. Our investment program is aimed at both the primary and

secondary markets. We provide liquidity to the distressed and high yield
market through the following:
 Acquisition of distressed asset portfolios

 Investments in loans and bonds

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 Offering priority loans (DIP), subordinated or mezzanine debt

 Offering structured investments
 Investments in equity
 Investments in hybrid structures
Asset Management. We offer a range of services under asset management

including origination of investment opportunities, due diligence, loan
servicing (monitoring and recovery) for single assets and portfolio
investments. The Bank has a successful track record of managing and
resolving non-performing loans.
Corporate Advisory. We offer corporate advisory services to companies

requiring capital structuring and to companies in financial distress. Our range
of services includes:
 Assessment of strategic issues, ranging from corporate and capital

structures to potential mergers and sale of businesses
 Development and implementation of creative and comprehensive
solutions to address clients' various complex issues such as capital
restructuring exercise
 Assistance in implementing the appropriate debt and equity financing
structure
Our Strengths
Professional Team. We have a large experienced team of skilled individuals

who have developed a reputation for competency in valuation, due diligence,

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acquisition and asset management in the distressed and high yield market.
Our local market knowledge and workout skills offer value to our clients.
Network. We leverage Standard Chartered Bank's network in our core

markets to provide us on-the-ground knowledge and early access to
situations. The Bank's client franchise offers investment opportunities while
Alternate Investment Group's strong relationships with investment banks,
financial institutions, brokers and value investors provides a valuable source
of investors. We utilise superior information to maximise value for our clients.
Positioning. The distressed and high-yield markets in Asia,Africa and the

Middle East offer attractive revenue generating opportunities. The Bank is
well positioned in these markets to enable Alternate Investment Group to
deliver value to the Bank and our clients.

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Saving account
A savings account typically refers to an account in which one places money to

earn a small amount of interest. The savings account funds are usually easily
accessible, though some banks do charge for withdrawing money early. In
most cases, people can withdraw money from a savings account at any time, at
least at any time the bank is open, or one has access to the bank’s ATM.
Saving Account in Standard Chartered Bank
5.1 aXcess plus account:-
The Standard Chartered aXcess Plus Account comes with a globally valid debit
- cum - ATM card which allows customers to aXcess all Standard Chartered
Bank ATMs and provides instant cash at all Visa Network ATMs in India and
abroad. This account provides unparalleled access to your money through a
variety of channels.
Highlights:-
Category Regular
Minimum AQB Rs. 60,000 if balance in linked saving
a/c is atleast Rs 10,000
Interest Rate 3.5%
Card offered ATM cum Debit Card
ATM Cards
Replacement of Pin Rs 50
Lost card re-issuance Rs 100
Some features:-

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 FREE Unlimited Visa ATM transactions* (Cash withdrawal and balance

enquiry)
 FREE Standard Chartered Bank branch access across the county
 FREE Doorstep Banking
 FREE Demand Drafts/Pay Orders (drawn at SCB locations)
 FREE Payable at Par Chequebook
 International Debit Card
 Extended Banking Hours
 Phone banking, Net banking, Multi-city banking, 365 days branches
 Unique free insurance benefits- lost card, purchase protection.
* Available on maintenance of average quarterly balance of Rs 15,000/-
5.2 SuperValue Saving Account:-
The unique SuperValue savings account from Standard Chartered is proof that
the best things in life come free. With an average quarterly balance of just Rs.
50,000, you get a host of services from Standard Chartered absolutely free.
Some features:-
 Free globally valid Debit-cum-ATM card.

 Free Access to 6500 ATMs in India.
 Free Doorstep Banking.
 Free Payable at Par cheque book/ account statements / DDs
 Free Bill Pay.
 Free Inter Bank Funds Transfer.
 Free Foreign Inward Remittance Certificates.
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 Other benefits of the SuperValue account:

 Full suite of complimentary banking services including credit cards,
loan products and capital market services.
 Globally valid debit card: Make purchases at over 12 million merchant
outlets and withdraw cash at over 810,000 ATMs worldwide using
funds from your account
 Enjoy extended Banking hours at all our branches, and Speed Cheque
Clearing and Metro Clearing facilities.
 Multicity Banking: Access your account even when you are out of town
 24-hour branches, 365 day branches available at select locations
 Phone banking
 Internet banking
 Free Investment Advisory Services to assist you in investing in a range
of mutual funds
5.3 Parivaar Account:-
This family account allows you to maintain your individual identity while
allowing you to tap your family's financial strength. Parivaar is a unique
Wealth Management Solution from Standard Chartered Bank that offers your
family flexibility, convenience and essential tools for wealth accumulation and
preservation.
Some features:-
 Your family can maintain individual savings accounts with the benefit of
clubbing balances in grouped accounts.

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 Anytime, anywhere access to accounts through ATMs, Phone Banking

and Online Banking.
 Globally valid ATM-cum-debit card can be used at 3,26,000 merchant
outlets in India and 14 million outlets worldwide.
5.4 2-in-1 Account:-
The 2-in-1 account gives you the facility of linking your fixed deposits with a
savings or current account. In case of any shortfall in the savings or current
account, funds will be automatically swept in from the linked fixed deposits,
thus giving you a combination of both liquidity and higher returns.
And that’s not all either. In case you need to withdraw amounts in excess of
what is available in your savings or current account, we will break your
deposit for the exact amount you require. The rest of the deposit continues
earning the original high interest.
Some features:-
 Earn fixed deposit interest rates

 Enjoy the flexibility of a Savings or a Current Account
 Get a free personalized cheque book and Debit/ATM card
 Withdraw money whenever you need it
 Deposit more money in your account to earn a higher rate of
 interest by placing subsequent deposits

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Comparison of various bank’s Service and Charges with Standard

Chartered Bank.
Standard
S.no Features Chartered Yes Bank Barclays HDFC
1 Avg.Quaterly Bal. 25,000 25,000 1,000 20,000
2 Rate of Interest 3.50% 3.50% 3.50% 3.50%
25(Per
3 Internet Banking Free Free month) Free
4 Doorstep Banking Free Free Free
5 Phone Banking Free Free 100 50
5 DDs in Yes
Bank Location
Free DD
&
up to 1
2 DDs in Lac Rs
Correspondin Per day
g bank in Bank
7 DDs n payorders Free Location --- Location
Quarterly
9 Statement Free Free Free Free
10 Monthly Statement Free Free Free Free
12 Pass Book Free Free Free
13 Duplicate Pass book 100
25 Txns PM
14 At Par Cheque Free Free 1 Lac PM 2 Lac PM
Gold
International Debit
Platinum International Card
15 Debit card Debit Car Silver Debit Card

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1% Cash
1 % Cash back on
Back on all Shopping
17 Cash Back Txns --- --- Txns
2 Lacs ATM 50,000 1 Lac
& 2 lakh ATM & ATM & !
Debit Card Txns Shopping 50,000 Lac
21 Limit 25 Shopping Shopping
22 Account closure 500 50 500 100
23 Stop Payment
(a) Single cheque 100 100 100 50
(b) range of
cheques 200 100 100 100
1. Saving Account Potential Survey

A survey was being conducted as a part of project in Delhi NCR region to
analyze the market potential of saving account specially SBC’s saving account
in comparison to other banks. The total sample size of the survey is 60.
16.1 Objective:-
 To know the customers interests in saving account
 To know the present scenario of saving account
 To know what’s the service facility customer want.
 To know the how much customers want to more facilities in using bank
account
45 | P a g e
 To understand, are they wanted to open a saving account in another

bank, if yes then what is the reason behind it.
16.2 Research Methodology
The research methodology consisted of two phases. Phase one consisted of

data collection. It included primary data collection as well as secondary data
collection. Primary data collection consisted of the survey process. People of
different age group as well as income category were asked to fill a common
questionnaire. Secondary data collection consisted of data collection from
internet and books.
The second phase consisted of analyzing the primary data. The analysis
consisted of graphs and inferring results or trends from those graphs. Some
general conclusions could be drawn from the primary data.

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Survey Analysis
1. Male Vs Female
Female
Percentage
No. of People
Male
2. No. of people participated in survey on the basis of different

age group.
No. of People Different Age Group

50-60; 3; 5%
40-50; 14; 23%

20-30; 26; 43%
30-40; 17; 28%

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In this survey total 60 persons participated. Out of 60, 54 are male and 6 are
female. If we take the people age group wise then 20-30(44%), 30-40(28%),
40-50(23%) and 50-60(5%). This shows that younger generation more attract
towards privatisation means private sector.
3. No. of people participated in survey from different

occupation.
Others
Businessman
Percentage
Private No. of People
Government

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4. No. of people from different income group.
According to Income Group No. of People

Above 5.5; 8; 13%
2.5 - 3.5; 12; 20%
4.5 - 5.5; 22; 37%

3.5 - 4.5; 18; 30%
Here we easily see that the 55% people are businessman and 40% are from
private jobs. And in income group 37% people are from income group 4.5 -5.5
lakh and the 30% are 3.5-4.5 lakh. So conclusion that here the majority of
businessman and private job person are interested in saving account.

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5. Bank which people have saving account
No. of People
Standard
Chartered; 1
Other; 13
HDFC; 13
ABN-AMRO; 2
ICICI; 31
Here we find that the market potential of HDFC Bank is high because out of 60
people 31(51%) peoples have HDFC Saving Account. HDFC & Other are
equivalent. Where Standard chartered Bank has only 7.8% people.
6. Age Group Vs Features
Age Group 20-30 Vs Liking features

27%
42%
ATM Network
Service
24/7 Internet Banking
Others
8%
23%

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Age Group 30-40 vs Liking Feature

ATM Network Service 24/7 Internet Banking Others
24%
41%
12%
24%

Others
29%
ATM Network
43%
Service
29%
ATM Network
Service
Others

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As far as the using features are concerned the people are more aggressive
towards the ATM Network then after they said about the Service and after the
service they looking for other. Other included new era service like Doorstep
Banking, Mobile Banking, and Online Banking. In survey I found that a person
usage ATM thrice and more times in a week. Its shows that how people
devoted about ATM Network and also for other
Services like Mobile banking, Doorstep Banking, Online Banking and etc.
7. Features which people like in using bank
Others
Services
Percentage
24/7 internet Banking No. of People
Largest ATM Network

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The overall analysis said that feature which people like in using bank is ATM
Network and after that other services like Door Banking, Internet Banking,
Online Banking, Mobile Banking and etc. Every person wants to each thing at
his Door because nobody wants to expense time.
8. People preferred bank (If switches)
Here overall percentage of preferring bank (if people want to open a new
saving account) is HDFC, 39% and Standard Chartered is 25%. It show the
how people go for using new feature and better Service. In this also people
want to go for a brand name which Standard chartered bank has.

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9. Age Group Vs Preferred Bank (If Switches)
Age Group (20-30) Vs Preferred Bank Age Group (30-40) Vs Preferred

Bank
Barclays HDFC
Standard Chartered Yes Bank
Others Others
19%
Standard Chartered 15%
ABN-AMRO 38% 31%
8%
HDFC ICICI
15% 19%
23%
8% 23%
Age Group (40-50) Vs Preferred Bank Age Group (50-60) Vs Preferred

Bank
Others Standard Chartered

25% 14% Others Standard Chartered
18% 27%
Yes Bnak
HDFC 18%
Barclays 36%
7%
Yes Bank HDFC
18% 36%
Here I find that the age group of 20-30 preferred Brand Name like Standard
Chartered Bank which is 39%. Except the age group 40-50 all are prefer SCB.
The Second position occupied by HDFC Bank. The reason of why people prefer
Standard Chartered Bank and HDFC bank more. I am discussing in next chart.

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10. Banks Vs Reason for Preferring
10
6
ATM Network
5 Service
4 Others
3
0
SCB HDFC Yes Bank Barclays Others
In this competitive world people do not want waste his time. So he/she is
more conscious about time and money saving. I found that in the above chart
people pay more attention on banking core services in the other hand they
also want everything at his/her home. They also want to utilise new banking
services like mobile alert, fund transfer through mobile, online banking, and
doorstep banking etc.

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Conclusion
We all are well know that how much time is precious for everyone. Everyone
do not want waste his/her time single minute. In this competitive era world
are globalised. Due to globalisation every person want to be fastest. Standard
Chartered Bank also want to be no. 1 through the offer more and more
services.
I found that the potential of saving account is more than current account. As
we know that a saving account can be sole name or joint name. So, most
probably people have a saving account. People like saving account because its
service are beneficiary and due to competition more services offered by the
banks.
I found that in my survey people more eager about banking service whatever
bank charges for services. As i already said that people have not much time.
Show they utilise latest service which provided by the banks. In mean while
people also go for the brand name because thay want to show their standard.
Last but not least I found that age group 20-30 & 30-40years people more
conscious about ATM Network, Banking Services and Brand name.

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Insurance
Life is a roller coaster ride and is full of twists and turns. We cannot take
anything for granted in life. Insurance policies are a safeguard against the
uncertainties of life.
Insurance is system by which the losses suffered by a few are spread over
many, exposed to similar risks. Insurance is a protection against financial loss
arising on the happening of an unexpected event. Insurance policy helps in not
only mitigating risks but also provides a financial cushion against adverse
financial burdens suffered.
Insurance policies cover the risk of life as well as other assets and valuables
such as home, automobiles, jewelry et al. On the basis of the risk they cover,
insurance policies can be classified into two categories:
6.1 Life Insurance Policies:-

Life is very fragile and death is a certainty. We cannot control the
uncertainties of life. But, we can cover the risks surrounding us. Life
insurance, simply put, is the cover for the risks that we run during our lives. It
protects us from the contingencies that could affect us. Life insurance is not
for the person who passes away, it for those who survive. It is the
responsibility of every bread earner to guard against the events that could
affect the family in the unfortunate circumstance of his / her demise. Thus,
having a life insurance policy is very vital. Before going for a life insurance
policy it is imperative that you know about various types of life insurance
policies. Major among them are:
 Endowment Policy

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 Whole Life Policy

 Term Life Policy
 Money-back Policy
 Joint Life Policy
 Group Insurance Policy
 Loan Cover Term Assurance Policy
 Pension Plan or Annuities
 Unit Linked Insurance Plan
6.2 General Insurance Policies:-

General Insurance provides much-needed protection against unforeseen
events such as accidents, illness, fire, burglary et al. Unlike Life Insurance,
General Insurance is not meant to offer returns but is a protection against
contingencies. Almost everything that has a financial value in life and has a
probability of getting lost, stolen or damaged can be covered through General
Insurance policy.
Property (both movable and immovable), vehicle, cash, household goods,
health, dishonesty and also one's liability towards others can be covered
under general insurance policy. Under certain Acts of Parliament, some types
of insurance like Motor Insurance and Public Liability Insurance have been
made compulsory. Major insurance policies that are covered under General
Insurance are:
 Home Insurance
 Health Insurance
 Motor Insurance

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 Travel Insurance
Unit Linked Insurance Plan
Unit linked insurance plan (ULIP) is life insurance solution that provides for
the benefits of protection and flexibility in investment. The investment is
denoted as units and is represented by the value that it has attained called as
Net Asset Value (NAV). The policy value at any time varies according to the
value of the underlying assets at the time.
ULIP provides multiple benefits to the consumer. The benefits include:
 Life protection
 Investment and Savings
 Flexibility
 Adjustable Life Cover
 Investment Options
 Transparency
 Options to take additional cover against
 Death due to accident
 Disability
 Critical Illness
 Surgeries
 Liquidity
 Tax planning

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Features of Unit Linked Insurance Plan:-
 Premiums paid can be single, regular or variable. The payment period

too can be regular or variable. The risk cover can be increased or
decreased.
 The costs in ULIP are higher because there is a life insurance component
in it as well, in addition to the investment component.
 Investments can be made in gilt funds, balanced funds, money market

funds, growth funds or bonds.
 The policyholder can switch between schemes, for instance, balanced to

debt or gilt to equity, etc.
 As in all insurance policies, the risk charge (mortality rate) varies with
age.
 The maturity benefit is not typically a fixed amount and the maturity
period can be advanced or extended.
 The maturity benefit is the net asset value of the units.
 Insurance companies have the discretion to decide on their investment

portfolios.
 They are simple, clear, and easy to understand.
 Being transparent the policyholder gets the entire episode on the

performance of his fund.
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 Provides capital appreciation.
 Investor gets an option to choose among debt, balanced and equity

funds.
 Lead to an efficient utilization of capital.
 ULIP products are exempted from tax and they provide life insurance.
ULIP in Standard Chartered Bank
Standard Chartered offers a wide range of Life Insurance Products from Bajaj
Allianz Life Insurance Company, one of India's leading Insurance companies.
The flexible Unit linked life insurance plans at Standard Chartered bank
provides the opportunity to participate in market-linked returns while
enjoying the valuable benefits of life insurance
1. Bajaj Allianz Life Insurance Co. Ltd.
Bajaj Allianz is a joint venture between Allianz AG one of the world's largest
insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler
manufacturers in the world. Bajaj Allianz is into both life insurance and
general insurance.
Allianz Group is one of the world's leading insurers and financial services
providers. Founded in 1890 in Berlin, Allianz is now present in over 70
countries with almost 174,000 employees.
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Bajaj group is the largest manufacturer of two-wheelers and three-wheelers

in India and one of the largest in the world.
ULIP – New Unit Gain

Bajaj Allianz “New Unit Gain” offers the unique option of combining the
protection of life insurance with the attractive prospect of investing in
securities. The investor has the freedom to choose the funds he wishes to
invest his money in, providing him the opportunity to have a direct stake in
the performance of the financial markets. One can also benefit from tax
advantages while protecting his loved ones against unfortunate events.
Key highlight of Bajaj Allianz New Unit Gain:-
 Your investment, apart from normal allocation, receives Loyalty Units

equivalent to 51% of First Year’s Annualized Premium over a period of
10 years.
 Seven investment funds to choose from with unmatched flexibility to

manage your investments better.
 You policy continues to participate in investment performance of the

fund(s). Even if you are not able to pay 3 full years premium
 Maximum flexibility and Option to increase premium
 Partial withdrawals any time after three years from the commencement
of policy provided three full years’ premiums are paid.

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 Three free switches every year.

 Option to pay unlimited top up premiums anytime during the tenure of
your policy to further enhance your savings.
 You have three simple terms to choose from – 15, 20 and 25 yrs.
 A host of optional additional rider benefits to provide you additional

protection
 Guaranteed Life Cover, with a flexibility to choose insurance cover

according to your changing needs.
 Tax Save
 Partial Withdrawals, Surrender Value, Death Benefit and Maturity

Benefit are eligible for tax benefits as per Section 10(10D) of the Income
Tax Act.
 The charges paid for UL Critical Illness and UL Hospital Cash Benefit are
eligible for tax benefits as per Section 80(D) of the Income Tax Act.
How does the plan work?

Premiums paid by you, net of premium allocation charge, are invested in
fund(s) of your choice and units are allocated depending on the unit price of
the fund(s). The value of your policy is the total value of units that you hold in
the fund(s). The insurance cover charges, policy administration charges and

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the additional rider benefit charges (if any) are deducted through monthly
cancellation of units. Fund Management Charge is priced in the unit value.
Important Details of the ‘Bajaj Allianz New UnitGain’ Plan
Parameter Details
Minimum Age at Entry 0 years, risk commences at age 7.
(18 years in case of all Additional Rider
Benefits
Maximum Age at Entry 60 years (50 years in case of all Additional
Rider Benefits)
Minimum Maturity Age 18 years
Maximum Maturity Age 75 years
Additional Rider Benefit 65 years for all riders except UL WOP
Ceasing Age
Minimum Premium Rs. 10,000 per yearly instalment,
(for Male lives) Rs. 5,000 per half-yearly instalment,
Rs. 1,000 per monthly mode
Minimum Top Up Premium is Rs. 5,000
Minimum Premium Rs. 7,500 per yearly instalment,
(for Female lives) Rs. 3,750 per half-yearly instalment,
Rs. 750 per monthly mode
Minimum Top Up Premium is Rs. 5,000.
(Monthly mode for both male and female
lives is available through ECS and Salary
Saving Scheme only).
Minimum Sum Assured 0.5 * Policy Term * Annualized Premium
Maximum Sum Assured Multiplier * Annualized Premium
(Multiplier would depend on the age at entry

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and
any riders chosen)
CONCLUSION ABOUT MARKET POTENTIAL OF ULIPS
1. Trust needs to be developed among the customers both as far as the

ULIP as a product is concerned and also regarding private players
(Standard Chartered) particularly in our study.
2. Some respondents despite of knowing about ULIP were hesitant to talk
on it because they were not too confident about their knowledge. This
very fact completely declines the concept of providing switches as a
lucrative feature in ULIP (which is done by most of the companies). The
reason is that very rarely people have the ability or time to use these
features.
3. The important facts which we could conclude from our data regarding
the buying behavior of individuals are that people give maximum
importance to the tax benefit that they receive after investing in the unit
linked insurance plan .Further the next most attractive benefit that
people look forward to most as per our sample is that of income growth.
In fact most of the unmarried chunk of our population who has no
liabilities like child education or marriage goes in for a ULIP product
just to multiply the money in a couple of years. Other benefits are
important as well but these two take away most of the attention.
4. Regarding the acceptance of ULIP as a product over other investments it

is analyzed that though a lot of our sample population was aware about
it and had invested in it but still a lot of them (including Females)

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wanted to invest in it but were confused regarding other options like

mutual funds. So a lack of public awareness was encountered.
5. Another important finding was that time horizon was one of the factors
of concern while investing in ULIP and as per the analysis of the
questionnaire we found that a large proportion of our sample was
convenient with the time period of 4-7 years and then others were in
favor of a period not beyond 3 years. This implies that very less number
of people were comfortable with long time horizons.
6. Another very interesting finding from our data is that when we talk
about risk as an investment criterion then the female population which
already has or is interested in investing would favor either no risk at all
or low risk and low gain. Whereas the customers’ businessmen by
occupation and specifically from age group 21- 30 would favor either
moderate risk and moderate gain or rather go for a high risk and high
gain strategy. This result came completely in line with our expectations.
7. Considering the market share of the leading players it was found that
LIC rules when it comes to an age group of 50 plus due to the credibility
and trust it has gained in all past years. Where the other age groups
prefer to explore the leading private players where in our sample
Standard Chartered (Bajaj Allianz) and ICICI prudential make a clean
sweep. Other banks like HDFC were found with a limited proportion
only according to our findings.
8. Our analysis shows that though the product has been able to cater to a
number of benefits but still a lot of brand awareness is lacking and LIC is
posing the biggest threat followed by SBI life to the private players.

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Mutual funds
Mutual Fund is an instrument of investing money. Nowadays, bank rates have

fallen down and are generally below the inflation rate. Therefore, keeping
large amounts of money in bank is not a wise option, as in real terms the value
of money decreases over a period of time.
One of the options is to invest the money in stock market. But a common
investor is not informed and competent enough to understand the intricacies
of stock market. This is where mutual funds come to the rescue.
A mutual fund is a group of investors operating through a fund manager to

purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost
efficient and very easy to invest in. By pooling money together in a mutual
fund, investors can purchase stocks or bonds with much lower trading costs
than if they tried to do it on their own. Also, one doesn't have to figure out
which stocks or bonds to buy. But the biggest advantage of mutual funds is
diversification.
Diversification means spreading out money across many different types of

investments. When one investment is down another might be up.
Diversification of investment holdings reduces the risk tremendously.
The origin of the Indian mutual funds industry dates back to 1963 when the
Unit Trust of India (UTI) came into existence at the initiative of the
Government of India and the Reserve Bank of India. Since then the mutual

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funds sector remained the sole fiefdom of UTI till 1987 when a slew of non-
UTI, public sector mutual funds were set up by nationalized banks and life
insurance companies.
The year 1993 saw sweeping changes being introduced in the mutual fund
industry with private sector fund houses making their debut and the laying
down of comprehensive mutual fund regulations. Over the years, the Indian
mutual funds industry has witnessed an exponential growth riding piggyback
on a booming economy and the arrival of a horde of international fund houses.

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First Phase – 1964-87 Growth of Unit Trust of India
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It

was set up by the Reserve Bank of India and functioned under the Regulatory
and administrative control of the Reserve Bank of India. In 1978 UTI was de-
linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. The first
scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6, 700 crores of assets under management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by
public sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec
87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990. At the end of 1993, the mutual fund industry had assets
under management of Rs.47,004 crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)

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With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993
was the year in which the first Mutual Fund Regulations came into being,
under which all mutual funds, except UTI were to be registered and governed.
The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was
the first private sector
Mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund)
Regulations were substituted by a more comprehensive and revised Mutual
Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign
mutual funds setting up funds in India and also the industry has witnessed
several mergers and acquisitions. As at the end of January 2003, there were
33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of
India with Rs.44,541 crores of assets under management was way ahead of
other mutual funds.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of
the Unit Trust of India with assets under management of Rs.29,835 crores as
at the end of January 2003, representing broadly, the assets of US 64 scheme,

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assured return and certain other schemes. The Specified Undertaking of Unit
Trust of India, functioning under an administrator and under the rules framed
by Government of India and does not come under the purview of the Mutual
Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC.
It is registered with SEBI and functions under the Mutual Fund Regulations.
With the bifurcation of the erstwhile UTI which had in March 2000 more than
Rs.76,000 crores of assets under management and with the setting up of a UTI
Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with
recent mergers taking place among different private sector funds, the mutual
fund industry has entered its current phase of consolidation and growth. As at
the end of September, 2004, there were 29 funds, which manage assets of
Rs.153108 crores under 421 schemes.

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The graph indicates the growth of assets over the years.
9.1 Professional Management
Mutual Funds employ the services of skilled professionals who have years of
experience to back them up. They use intensive research techniques to
analyze each investment option for the potential of returns along with their
risk levels to come up with the figures for performance that determine the
suitability of any potential investment.
9.2 Potential of Returns
Returns in the mutual funds are generally better than any other option in any
other avenue over a reasonable period of time. People can pick their
investment horizon and stay put in the chosen fund for the duration. Equity
funds can outperform most other investments over long periods by placing

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long-term calls on fundamentally good stocks. The debt funds too will
outperform other options such as banks. Though they are affected by the
interest rate risk in general, the returns generated are more as they pick
securities with different duration that have different yields and so are able to
increase the overall returns from the portfolio.
9.3 Liquidity
Fixed deposits with companies or in banks are usually not withdrawn

premature because there is a penal clause attached to it. The investors can
withdraw or redeem money at the Net Asset Value related prices in the open-
end schemes. In closed-end schemes, the units can be transacted at the
prevailing market price on a stock exchange. Mutual funds also provide the
facility of direct repurchase at NAV related prices. The market prices of these
schemes are dependent on the NAVs of funds and may trade at more than NAV
(known as Premium) or less than NAV (known as Discount) depending on the
expected future trend of NAV, which in turn is linked to general market
conditions. Bullish market may result in schemes trading at Premium while in
bearish markets the funds usually trade at Discount. This means that the
money can be withdrawn anytime, without much reduction in yield. Some
mutual funds however, charge exit loads for withdrawal within a specified
period.
9.4 Effective Regulation
Unlike the company fixed deposits, where there is little control with the
investment being considered as unsecured debt from the legal point of view,
the Mutual Fund industry is very well regulated. All investments have to be

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accounted for, decisions judiciously taken. SEBI acts as a true watchdog in this
case and can impose penalties on the AMCs at fault. The regulations, designed
to protect the investors’ interests are also implemented effectively.
9.5 Transparency
Being under a regulatory framework, mutual funds have to disclose their

holdings, investment pattern and all the information that can be considered as
material, before all investors. This means that the investment strategy,
outlooks of the market and scheme related details are disclosed with
reasonable frequency to ensure that transparency exists in the system. This is
unlike any other investment option in India where the investor knows nothing
as nothing is disclosed.
9.6 Flexible and Affordable
Mutual Funds offer a relatively less expensive way to invest when compared
to other avenues such as capital market operations. The fee in terms of
brokerages, custodial fees and other management fees are substantially lower
than other options and are directly linked to the performance of the scheme.
Investment in mutual funds also offers a lot of flexibility with features such as
regular investment plans, regular withdrawal plans and dividend
reinvestment plans enabling systematic investment or withdrawal of funds.
Even the investors, who could otherwise not enter stock markets with low
investible funds, can benefit from a portfolio comprising of high-priced stocks
because they are purchased from pooled funds.

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9.6 Charges
The Asset Management Companies (AMCs) managing the Mutual Funds levy a
load as a percentage of NAV at the time of entry into the Schemes or at the
time of exiting from the Schemes.
 Entry Load - It is the load charged by the fund when an investor invests
into the fund. It increases the price of the units to more than the NAV
and is expressed as a percentage of NAV.
 Exit Load - It is the load charged by the fund when an investor redeems
the units from the fund. It reduces the price of the units to less than the
NAV and is expressed as a percentage of NAV.
 Cost of Churning/Turnover cost - It refers to the costs associated with
the churning (or changes made to the holdings) of the portfolio.
Portfolio changes have associated costs of brokerage, custody fees,
transaction fees and registration fees, which lower the returns. The
quantum depends on the management style of the fund manager.
 Expense Ratio - The Expenses of a mutual fund include management
fees and all the fees associated with the fund's daily operations. Expense
Ratio refers to the annual percentage of fund's assets that is paid out in
expenses.
9.7 Tax
 Capital Gains Tax- The profit realizations on sale of securities and

certain other capital assets (including units of mutual funds) are called
capital gains. The gains can be classified into long-term or short-term

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depending on the period of holding of the asset and are charged to tax at
different rates. Gains on mutual fund units held for a period of 12
months or more are long-term gains. These gains are taxable.
 Dividend Distribution Tax – The Mutual Fund schemes distributing
dividends on their units to the investors attract a distribution tax as per
tax laws.
 Securities Transaction Tax – AMCs managing the portfolio have to pay
STT on transaction (buying/selling) of different securities in the stock
market. Presently the tax rate is 0.025%.
9.8 Pointers to Mutual Fund Performance
Mutual Fund industry today, with about 34 players and more than five
hundred schemes, is one of the most preferred investment avenues in India.
However, with a plethora of schemes to choose from, the retail investor faces
problems in selecting funds. Factors such as investment strategy and
management style are qualitative, but the funds record is an important
indicator too. Though past performance alone cannot be indicative of future
performance, it is the only quantitative way to judge how good a fund is at
present. Therefore, there is a need to correctly assess the past performance of
different mutual funds. Quite simply then a fund generating more returns than
the other is considered better than the other. But this is just half the story.
Return alone should not be considered as the basis of measurement of the

performance of a mutual fund scheme, it should also include the risk taken by
the fund manager because different funds will have different levels of risk
attached to them.

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Risk associated with a fund can be defined as fluctuations in the returns

generated by it. The higher the fluctuations in the returns of a fund during a
given period, higher will be the risk associated with it. These fluctuations in
the returns generated by a fund are resultant of two guiding forces. First,
general market fluctuations affecting all the securities present in the market
are called market risk or systematic risk and second, fluctuations due to
specific securities present in the portfolio of the fund, called unsystematic
risk. The Total Risk of a given fund is sum of these two and is measured in
terms of standard deviation of returns of the fund.
Systematic risk is measured in terms of Beta, which represents fluctuations in

the NAV of the fund vis-à -vis market. The more responsive the NAV of a
mutual fund is to the changes in the market; higher will be its beta. Beta is
calculated by relating the returns on a mutual fund with the returns in the
market. While unsystematic risk can be diversified through investments in a
number of instruments, systematic risk cannot. By using the risk return
relationship, we try to assess the competitive strength of the mutual funds vis-
à -vis one another in a better way. It should be appreciated that there is a level
of risk that a fund has taken to generate this return. So what is really relevant
is not just performance or returns. What matters therefore are Risk Adjusted
Returns (RAR).
The only caveat whilst using any risk-adjusted performance is the fact that
their clairvoyance is decided by the past. Each of these measures uses past
performance data and to that extent are not accurate indicators of the future.

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9.9 Benefits of Mutual Funds
Investor is benefited by investing in Mutual Funds because
 Diversification: - Diversified portfolio is balanced in varying economic

conditions. When there is rise in interest rate, some securities decrease
and some increase in value. Gradually the value of overall portfolio
increases over time even if some securities lose value
 Professional Management - Top managers are paid by Mutual funds to
manage their investments. They decide what securities the fund will buy
and sell
 Liquidity - Money can be taken out of mutual fund anytime easily
 Convenient - Mutual fund shares can be bought by email, phone or over
internet.
 Regulatory Oversight - Investors are protected from fraud as mutual
funds are subject to government regulations
 Low Cost - Expenses of Mutual Fund is 1.5% of the investment.
 Tax Benefits - Investors gets tax benefits over the money invested in
Mutual Fund
 Transparent and Flexible
 Choice of Schemes - Investor can choose between many schemes
 Well regulated
9.10 Disadvantages of Mutual Funds
 No Guarantee - When the entire stock market goes down, the Mutual
Fund shares will also go down even if the portfolio is balanced though
the risk is low
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 Administrative fees or sales commissions is charged by all the funds to

compensate brokers and financial planners
 Taxes have to be paid on the income the investors make even if you
reinvest the profit
 Management Risk is always there as the funds manager takes the
decision for you regarding funds portfolio
9.11 Types of Mutual Funds
 Open-end fund
 Exchange-traded funds
 Equity funds
o Capitalization
o Growth vs. value
o Index funds versus active management
 Bond funds
 Money market funds
 Funds of funds
 Hedge funds
9.12 Performance Comparison of Mutual Funds
 Equity Linked Savings Scheme - A special product offered by mutual

funds. These schemes invest in equity i.e shares and generally have a
lock-in period of three years.
 Balanced Funds – These funds invest part of their corpus into Debt
Instruments which give a fixed rate of return and the remaining part of
the corpus into Equity giving a high rate of return. Thus, overall the
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balanced funds give a moderate rate of return with lower risk as

compared to the pure equity funds.
9.13 Criticism of managed mutual funds:-
 Historically, only a small percentage of actively managed mutual funds,

over long periods of time, have returned as much, or more than
comparable index mutual funds.
 Critics point out that high sales commission can sometimes represent a
conflict of interest, as high commissions benefit the sales people but
hurt the investors. Although in reality, "A shares", which appear to have
the highest up front load, (around 5%) are the "cheapest" for the
investor, if the investor is planning on 1) keeping the fund for more than
5 years, 2) investing more than 100,000 in one fund family, which likely
will qualify them for "breakpoints", which is a form of discount, or 3)
staying with that "fund family" for more than 5 years, but switching
"funds" within the same fund company
 Mutual fund managers and companies need to disclose by law, if they

have a conflict of interest due to the way they are paid. In particular
fund managers may be encouraged to take more risks with investors’
money than they ought to: Fund flows (and therefore compensation)
towards successful, market beating funds are much larger than outflows
from funds that lose to the market. Fund managers may therefore have
an incentive to purchase high risk investments in the hopes of
increasing their odds of beating the market and receiving the high

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inflows, with relatively less fear of the consequences of losing to the

market.
 Difficulty to effectively manage large pool of money
 some funds illegally are gulity of market timing and that some fund
managers, also illegal, accept extravagant gifts in exchange for trading
stocks through certain investment banks, which presumably charge the
fund more for transactions than would non-gifting investment bank.
This practice, although done, is completely illegal.
ULIP Vs. Mutual Funds
 Unit Linked Insurance Policies (ULIPs) as an investment avenue are

closest to mutual funds in terms of their structure and functioning. As is
the case with mutual funds, investors in ULIPs are allotted units by the
insurance company and a net asset value (NAV) is declared for the same
on a daily basis.
 Similarly ULIP investors have the option of investing across various

schemes similar to the ones found in the mutual funds domain, i.e.
diversified equity funds, balanced funds and debt funds to name a few.
Generally speaking, ULIPs can be termed as mutual fund schemes with
an insurance component.
 However it should not be construed that barring the insurance element

there is nothing differentiating mutual funds from ULIPs.

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The various factors where the ULIPs and Mutual Funds differ are as follows:
ULIPs Mutual Funds

Investment Determined by Minimum investment amounts are
amounts the investor and determined by the fund house
can be modified
as well
Expenses No upper limits, Upper limits for expenses chargeable to
expenses investors have been set by the regulator
determined by
the insurance
company
Portfolio Not mandatory Quarterly disclosures are mandatory
disclosure
Modifying Generally Entry/exit loads have to be borne by the
asset permitted for investor
allocation free or at a
nominal cost
Tax benefits Section 80C Section 80C benefits are available only on
benefits are investments in tax-saving funds
available on all
ULIP
investments

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With these comparable there are certain factors where in these two differ.
Mutual funds are essentially short to medium term products. The liquidity
that these products offer is valuable for investors. ULIPs, in contrast, are
positioned as long-term products and going ahead, there will be separate
playing fields for ULIPS and MFs, with the product differentiation between
them becoming more pronounced. ULIPs do not seek to replace mutual funds,
they offer protection against the risk of dying too early, and also help people
save for retirement. Insurance has to be an integral part of one's wealth
management portfolio. Further, exposure of Indian households to capital
markets is limited.
2. Taxation
India has a well-developed tax structure with a three-tier federal structure,

comprising the Union Government, the State Governments and the
Urban/Rural Local Bodies. The power to levy taxes and duties is distributed
among the three tiers of Governments, in accordance with the provisions of
the Indian Constitution. The main taxes/duties that the Union Government is
empowered to levy are Income Tax (except tax on agricultural income, which
the State Governments can levy), Customs duties, Central Excise and Sales Tax
and Service Tax. The principal taxes levied by the State Governments are Sales
Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of
property), State Excise (duty on manufacture of alcohol), Land Revenue (levy
on land used for agricultural/non-agricultural purposes), Duty on
Entertainment and Tax on Professions & Callings. The Local Bodies are

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empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of

goods for use/consumption within areas of the Local Bodies), Tax on Markets
and Tax/User Charges for utilities like water supply, drainage, etc.
Since 1991 tax system in India has under gone a radical change, in line with
liberal economic policy and WTO commitments of the country. Some of the
changes are:
 Reduction in customs and excise duties
 Lowering corporate Tax
 Widening of the tax base and toning up the tax administration
The fifth consecutive budget presented by the FM, Mr. P. Chidambaram ,was
also a dream one for the salaried class……..With the higher tax limits on the
income tax slabs ,the increased basic exemption limit for senior citizens
z,women and individuals in general, etc. the budget gives much relief to the
middle class as it aims at reducing their overall tax liability by a good
measure. Here we can take a look at the direct tax proposals and the impact
they will have on our finances.
Income tax slabs
The exemption limit for personal income tax has been enhanced to Rs. 1.80
lakh from the present Rs. 1.45 lakh for women (below the age of 65 years),Rs.
2.25 lakh from the present Rs.1.95 lakh for senior citizens and Rs.1.5 lakh
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from the present Rs.1.1 lakh for others. The revised tax slabs are as tabulated
on the next page.
Proposed tax slab for FY 2008-09(Assessment Year 2009-10)

For Men below 65 For Women below 65 For Senior Citizens
years of age Years of age
Income Tax Income Tax Income Tax rate
level rate level rate level
Up to Nil Up to Nil Up to Nil

Rs.1,50,00 Rs.1,80,000 Rs.2,25,000
0
Rs. 10% Rs.1,80,001- 10% Rs.2,25,001 10%
1,50,001- Rs.3,00,000 -
Rs. Rs.3,00,000
3,00,000
Rs. 20% Rs.3,00,001- 20% Rs.3,00,001 20%
3,00,001- Rs.5,00,000 -
Rs. Rs.5,00,000
5,00,000
Above 30% Above 30% Above 30%
Rs.5,00,00 Rs.5,00,000 Rs.5,00,000
0

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The revision of the income slabs and the applicable rates of tax will result in
substantial savings for individuals across all income ranges. The following
table gives a comparative analysis of the post budget savings that will accrue:
Comparative analysis of post-budget Tax Savings
Male Tax payers Female Tax payers

(below the age of 65 years) (below the age of 65 years)
Income Existing Tax Savings Existing Tax Saving
(Rs.) tax liability as (Rs.) tax liability as s
liability per liability per (Rs.)
(Rs.) Budget (Rs.) Budget
2008(Rs.) 2008(Rs.)
1 lakh Nil Nil Nil Nil Nil Nil
2 lakh 14,420 5,150 9,270 10,815 2,060 8,755

3 lakh 40,170 15,450 24,720 36,565 12,360 24,20
5
4 lakh 71,070 36,050 35,020 67,465 32,960 34,50
5
5 lakh 1,01,970 56,650 45,320 98,365 53,560 44,80
5
7 lakh 1,63,770 1,18,450 45,320 1,60,165 1,05,060 55,10
5
10 lakh 2,56,470 2,11,150 45,320 2,52,865 1,97,760 55,10
5
15 lakh 4,52,067 4,02,215 49,852 4,48,102 3,87,486 60,61
6
20 lakh 6,22,017 5,72,165 49,852 6,18,052 5,57,436 60,61
6
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Senior Citizens(65 Years & above)
Income (Rs.) Existing tax Tax liability as Savings (Rs.)

liability (Rs.) per budget 2008
(Rs.)
1 lakh Nil Nil Nil
2 lakh 1,030 Nil Nil
3 lakh 26,780 7,725 19,055
4 lakh 57,680 28,325 29,355
5 lakh 88,580 48,925 39,655
7 lakh 1,50,380 1,10,725 39,655
10 lakh 2,43,080 2,03,425 39,655
15 lakh 4,37,338 3,93,718 43,620
20 lakh 6,07,288 5,63,668 43,620
After a glimpse at the above tables we can conclude that there is immense
saving potential for individual tax payers across all categories. The reduction
in tax liabilities aims at making lives easier for the middle class. It also tries to
enhance their purchasing power and, in the process gives impetus to demand
and growth of the industry
SWOT Analysis OF Standard Chartered Bank

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STRENGTHS WEAKNESSES
 Strong Brand Image  Rigid Eligibility Criteria
 Dedicated sales team  Weak Customer
 Value added services. Relations Management
 Centralized Structure
 High Average Quarterly
Balance
 Limited number of ATM’s
and Branches. Poor
network.
OPPORTUNITIES THREATS
 Presence of very strong
competitors.
 Large Untapped Market.
 Aggressive marketing by
 Distinguishable product (like
competitors.
Parivar Account).
 Various investment Schemes
with high returns.

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Conclusion
Competitor’s Analysis
1. Almost all the Banks offer similar features and facilities with their
Savings accounts, therefore for existing customers of Savings Account of
any Bank to shift to another Bank; this is very rarely the criteria or
reason.
2. The level of service in terms of delivering whatever is promised, fast

response in case of problems, is the most important benefit that the
customers seek, from the Bank they have a Savings Account with.
3. Network reach and visibility of a Bank is a very important criterion for

the customer while opening a Savings account. We can also conclude
from our analysis that network reach in terms of Branches and ATMs is
directly proportional to the market share in case of Private Players.
4. In case of a new customer, if a bank approaches it first for opening a

Savings account with them, then there is a good chance for the bank of
getting many future businesses from the deal.

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Aggressive Marketing is the key to increasing the market share in this area,
since the market has a lot of potential both in terms of untapped market
Recommendations for Increasing Market Share of

Standard Chartered Bank
1. The bank should try to improve the ATM Services, as it is one of the
major reasons for dissatisfaction among the customers as majority of
those who were dissatisfied where on account of non-availability of
cash in ATM,s and limited number of ATM’s.
2. The bank should also target the females for its saving Account especially
parivar accounts.
3. The bank should increase the number of ATM’s in the country as people
feel that the bank has very few ATM’s in the country.
4. The bank needs to make people aware about these products and the
basic benefits they can derive out of it. And also the differential features
of its savings account as compared to other banks.70% of the people did
not even know about the concept, benefits and features of its saving
accounts.

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5. Also it was found in our analysis that the customers don’t really mind
keeping a high balance in their savings account and the bank should tap
this fact by keeping a higher AQB and reduce the charges of different
services which customers have a problem paying for. Only around 10%
of the customers considered it to be an important issue for deciding on
their banking preferences.
6. It was also found in our analysis that ATM is the most preferred
method of banking of most customers and the preference for credit
cards is low thus the bank should use this fact by giving free ATM cards
with its savings account instead of the not used credit card which
customers consider to be unwanted. More than 50% of the customers
banked through the ATM’s.
7. The bank should target individuals in the age group of 25+ for whom
maintenance of the AQB is not a problem and further increase the
number of free inter bank ATM transactions from 4 to 6 as the
customer rate this highly important a factor while opening a savings
account.
8. The customer satisfaction levels are the lowest in Standard

chartered(only around 25%of its existing customers were satisfied)
among all banks so the bank needs to work on its general image as such
by promoting itself as a bank which puts “customers first” and not as
the highest profit making bank.

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9. When we talk about the banking preferences of businessmen then they

are looking for nation wide service and wide network of ATMs because
of the nature of there work thus the bank should work on this fact by
making its presence felt on a national level.
10. One very shocking result which has come out of our analysis is
that as the income of the customer rises his preference for our bank
falls, which is contrary to the bank’s objective thus the bank needs to
check on this result and work on factors responsible for the same which
could range from lack of concern shown by the bank to the fact that
people do not like the breech of privacy which private banks do my
making calls for other products of the bank on repetitive basis. Thus the
bank needs to respect this right of the customer and not make
unsolicited calls to them and also remember that they can no longer
survive by taking customers for a ride.
11. Though the bank offers free doorstep banking once a day this
fact is also not known to many customers or they still do not trust this
service what ever the reason the bank can popularize this service to
gain an edge over nationalized banks.

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12. One complain which really came up during the course of our
market research was that most of the customers felt that the sales
agents who approach them on behalf of the bank our not qualified
enough to perform the task for this esteemed bank and thus we
recommend that college students or fresh graduates from reputed
colleges can be hired on part time basis for this job.
13. Our market research shows that women are a big target for the
bank as not only is there role in influencing investment decision in the
family increasing also there own potential has increased as a lot of them
are working these days. Also it has been seen that business men prefer
to open the savings account is his spouse’s name with the business
account in his name. The bank needs to capitalize on this by offering
schemes which are women friendly and also directing the
promotion towards them.
14. Quality of service has been rated highly important by all

demofigureic factors as a reason for banking with a particular bank,
Standard Chartered needs to improve the services provided to its
existing customers before attracting more in the future and use word of
mouth as a promotional tool to increase the sales potential of its savings
account.

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Recommendations for ULIPS
1. Building trust by providing the customers with adequate knowledge

about the company and then the product.
2. Enhancing the level of awareness in terms of the company, their

Partners and the product and special emphasis among the female chunk
of the population.
3. Using the Brand equity of Standard Chartered to promote Bajaj Allianz

(Business assurance model) rather than doing it other way since brands
like Bajaj are not enjoying the same image today what they did years
back.
4. The private players should try to establish Brand awareness and

credibility especially among the senior customers so as to divert their
interest from the clean sweep made by LIC and UTI.
5. The companies should target more of female consumers as they have
money to invest but are completely unaware about the options available
to them and ULIP should be made to look more attractive to them.
6. Adequate advertisement via appropriate media should be done by the
various companies as is done in the case of mutual Funds.
7. Customers are not aware about the ULIP being offered by their own
banks. Specifically it was seen in case of Standard Chartered Bank as
those with BAJAJ ALLIANZ were not able to relate it to the bank. So,
proper counters should be there to facilitate customer awareness.

94 | P a g e
8. Certain discount charges should be made available because of the

severe competition within the private players as well as the biggest
threat posed by LIC and SBI.
9. Various branches of Standard Chartered should try to tap their own
customers first depending on the various profiles they have, rather than
the other set of customers which they primarily focus upon.
10. ULIP is a highly untapped market and here the right strategies
and hitting the bulls eye by propagating the most sought after benefit
among the customers will attract most of the customers.
11. Most of the customers as per our sample are inclined towards
ICICI Pru because of the strong policy base and easy accessibility. So
other competitors really need to make a new brand awareness policy.
But on the other hand some of them are really unhappy with the service
provisions done by ICICI Pru after acquiring the customers. In their
view it deteriorates. So it should be taken care of.
One of the most important steps to be taken by standard Chartered bank to be

successful with ULIPs (Bajaj Allainz) is to promote these by using the brand
awareness and brand equity of Standard Chartered and not Bajaj Allainz for
which it is acting as a distributor.

95 | P a g e
Limitations
Some of the limitations of the project are listed as below:
1. The time period of just 2 months was the major limitation.
2. Due to the financial and time constraints a cluster analysis of the

population so as to get better results was not feasible.
3. It was difficult to break the ice with the common people initially. It was
a daunting task to convince them to fill in the personal details of the
questionnaire where they have to mention the monthly income,
occupation etc.
4. To convince the people for a proper interviewing process is also

difficult.
5. The competitor analysis in the manual could only be compiled for a

rough idea to the nature of the product. The product features and NAVs
keep on changing on a daily basis.
6. Compilation of data on competitor analysis was difficult due to non-

availability of correct information.
7. The figures have been taken as approximations.

96 | P a g e
References
Books:
1. Churchill & Brown; Basic Marketing Research ;Thomas Publications,5 th

edition
2. Paul Hague, Nick Hague and Carol-Ann Morgan; Market Research in
Practice; Kogan Page limited,1st South Asian edition 2004.
3. Harper W.Boyd, Jr. Ralph Westfall, Stanley F. G Stasch; Marketing
Research; All India Traveller Book Seller, 7th edition.
4. William O. Bearden, Richard G. Netemeyer, Mary F. Mobley; Handbook
of Marketing Skills; SAGE Publications.
5. “Malhotra Naresh , Marketing Research”, Prentice Hall of India.
6. “Kotler Philip,Marketing Management”
7. “Business Research Methods”(2004), Tata McGraw Hill Edition
8. Business Statistics,Levin,Krehbiel,Berenson
Websites:
 www.standardchartered.in
 www.hoovers.com
 http://www.thehindubusinessline.com/2005/07/04/stories/2005070
401261200.htm
 www.wikipedia.org
 www.mouthshut.com
 www.financeindiamart.com
 www.howstuffworks.com
97 | P a g e
 www.standardchartered.com
 www.google.com
 www.yesbank.com
 www.hdfcbank.com
 www.barclays.com
Personnel:
1 Mr. Ashish Agarwal

2 Anna Lungany
3 Shweta Mehata

Summer Training Report On Standard Chartered Bank

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SUMMER TRAINING REPORT

Standard Chartered Bank Saving Account Comparison, Insurance and

Submitted in partial fulfillment of the requirements of the two year

Roll No: PGP20095884

IILM Institute for Higher Education

I take this opportunity to express my deep sense of gratitude to all

I am greatly obliged to Miss Anna Lungany, Placements, IILM,

My first word of gratitude is due to Mr. Ashish Agarwal, Trainee at

My heartfelt thanks to my respected Faculty Guide namely Miss. Shweta

Brijesh Kumar Singh

IILM Institute For Higher Education

IILM Institute For Higher Education

Date : 28 June 2010

Name of Student : Brijesh Kumar Singh

IILM Institute For Higher Education

Preparing project report in the summer vacations and undergoing the

The present project provides the information on the “STANDARD

Therefore, we consider it a pleasant duty to express our heartiest

IILM Institute For Higher Education

IILM Institute For Higher Education

Overview of the Banking System

In 1969, 14 major banks were nationalized and in 1980, 6 major private

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Public Sector Banks

Private Sector Banks

a. Old generation private banks

a. State co-operative Banks

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Development Banks/Financial Institutions

 Export-Import Bank of India

 National Housing Bank

 Small Industries Development Bank of India

 North Eastern Development Finance Corporation

 Bank accounts: It is the most common service of the banking sector. An

IILM Institute For Higher Education

IILM Institute For Higher Education

Structure of the Organized Banking Sector in India

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Banking service for NRIs:

o Non-Resident (Ordinary) Account - NRO A/c

Reserve Bank of India (RBI)

 To regulate the issue of banknotes

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 To operate the credit and currency system of the country to its

Functions of Reserve Bank of India

The second important function of the Reserve Bank of India is to act as

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Bankers' Bank and Lender of the Last Resort

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The Reserve Bank of India, therefore, has the following powers:

(a) It holds the cash reserves of all the scheduled banks.

(b) It controls the credit operations of banks through quantitative and

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The Bank performs a variety of developmental and promotional functions,

Agricultural Refinance and Development Corporation to provide long-term

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History of Standard Chartered

This friendly merger allowed both banks to capitalise on the expansion of

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Standard Chartered Bank in India

Chartered Bank opened its first overseas branch in India, at Kolkata, on 12

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To cater to diverse financial needs, Standard Chartered offers a wide range of