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No doubt, ours is a developing economy. Apart from a few years e.g. 1954, 1991, etc.
the economy of Pakistan has been staggering all the time. Lack of proper planning,
corrupt leadership, political instability and inefficient utilization of the resources has
put the country in serious problems of heavy debt servicing, inflation, corruption,
injustice, poverty, unemployment and many more.

However, during the last one year, after the 11th September attack, there has been
some revival in the economic condition of the country as

• External reserves continue to increase and are currently at USD 6.2 billion
representing seven months import cover.
• GDP growth improved from 2.5% last year to 3.6%.
• The threat of war with India has subsidized, however clashes on the line of
control continues.
• Stock market has shown some signs of improvement and the currency has
stabled as the restoration of democracy in the country.


The pace of banking development in Pakistan has perhaps very few parallels in the
world. Starting virtually from scratch in 1947, the country today possesses a full range
of banking and financial institutions to cope with the multifarious needs of a growing
economy. At the time of partition, total number of commercial banks in Pakistan was
38. Out of these, the Pakistani banks were 2, Indian banks 29, and exchange bank 7.
The total deposits of Pakistani banks stood at Rs. 88.0 millions where as advances
were Rs. 198.0 millions.

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Since 1990 the Government of Pakistan (GOP) has introduced various reforms in the
financial services sector enhancing the level of autonomy enjoyed by the SBP. The
number of banks operating in Pakistan has increased, which in turn has resulted in
increased competition. The banking sector, in general, has shown good progress
during the last few years. During previous five years, the combined total assets of
domestic banks, showed an average annual increase of 22 percent, while combined
deposits have recorded an increase of 27 percent per annum.

Three major nationalized commercial banks (NCBs) are still the dominant players in
the market, controlling about fifty-one percent of the entire banking sector deposits
and fifty percent of advances.

Commercial banks play a key role in the regeneration of economic activity in the
country. As the country’s largest deposit institutions and the main source of short term
credit, they form, so to speak, the heart of the financial system.

The financial sector of Pakistan can be divided into three broad categories namely

• Banking Companies
• Non-Banking Financial Institutions

The Banking Companies can be further categorized as

• According to the nationality of the share holders

• According to the size of the bank


This includes the banking institutions

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 Nationalized Commercial Banks
 Denationalized Commercial Banks
 Domestic Private Commercial Banks
 Cooperative Banks



In case the basis of classification is size, then these are of two categories:

• Scheduled Banks
• Non-Scheduled Banks

The NBFIs are composed of

• Investment Banks,
• Leasing Companies,
• Mutual Funds,
• Modarabas,
• Development Financial Institutions (DFIs) and
• Housing Finance Companies.

The Commercial Banks along with all the NBFI's, except for Modarabas and Leasing
Companies are governed by the State Bank of Pakistan (SBP) through its Prudential
Regulations. Pakistan is in the process of adopting an Islamic (Shariah) financial
system, under which interest-based banking is not allowed. There are
• 13 private commercial banks,

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• 4 privatized commercial banks,
• 3 nationalized commercial banks and
• 21 foreign banks
• 16 Investment Banks
• 29 Leasing Companies
• 53 Modaraba Companies
The number of branches for Pakistani banks, stand at 8,597 and for foreign banks at
87. The combined total assets of domestic banks have increased from Rs. 771.3
billion in 1992 to 1,616.3 billion in 1997, showing an average increase of 22 percent
annually. Similarly, combined annual deposits have recorded an increase of 27
percent, from Rs. 318.9 billion in 1992 to 1,066 billion in 1996. Advances recorded
an annual growth of 27 percent from Rs. 192.8 billion in 1992 to Rs. 641 billion in
1997. Capital adequacy ratio is 8 percent for domestic private banks compared to less
than 5 percent for NCBs.

Foreign banks
The twenty one foreign banks operating in Pakistan are playing a significant role by
incorporating new technologies and providing better quality services. Policies of
privatization, foreign exchange reforms and structural adjustments, have increased the
inflow of foreign resources through direct and portfolio investment. Most foreign
banks in Pakistan have branches only in big commercial/industrial centres, unlike
local banks which also operate in small towns.

In trade financing, the role of foreign banks is even more significant, as approximately
30 percent of the total trade of the country is transacted through them. Major portion
of the trade financing is for importers to establish letters of credit.

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In 1991 when GOP allowed resident Pakistanis to open foreign currency accounts,
many banks directed their efforts towards the previously untapped consumer and retail
banking sector. New products such as credit cards, housing finance and automobile
finance were introduced. Foreign banks also play an important role in assisting local
corporations to access international capital markets. The total deposits of the foreign
banks increased from Rs. 74.4 billion in 1992 to Rs. 213.4 billion in 1997.
Furthermore, their advances increased from Rs. 34.2 billion in 1992 to Rs. 100 billion
in 1997 showing an annual increase of 37 percent.



• ABN Amro Bank Ltd.

• American Express Bank Ltd.
• Bank of America
• Standard Chartered Bank
• Chase Manhattan Overseas Corp.
• Deutsche Bank AG
• Credit Agricole Indosuez
• Habib Bank AG Zurich
• The French International Bank
• Al-Baraka Islamic Investment Bank
• Emirates Bank International Ltd.
• Mashreq Bank
• The Bank of Tokyo Mitsubishi Ltd.
• Hong Kong and Shanghai Bank
• Oman International Bank S.A.O.G.

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• Allied Bank of Pakistan Ltd.

• First Women Bank Ltd.
• Habib Bank Limited
• Muslim Commercial Bank
• National Bank of Pakistan
• Askari Commercial Bank Ltd.
• Platinum Commercial Bank Ltd.
• United Bank Limited
• Faysal Bank Ltd.
• Prime Commercial Bank Ltd.
• Union Bank Ltd.
• Bankers Equity Ltd.
• Bolan Bank Ltd.
• Prudential Commercial Bank Ltd.
• Bank Al-Falah Ltd.
• The Bank of Khyber
• Gulf Commercial Bank Limited
• Pakistan Industrial Credit & Investment Corporation Ltd.
• Citibank Housing Finance Co. Ltd.
• National Development Finance Corporation
• International Housing Finance Ltd.
• First Professional Modaraba
• Industrial Development Bank of Pakistan
• House Building Finance Corporation
• Investment Corporation of Pakistan

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RATE (Percentage)

Year Weighted average Weighted average Difference between

lending rate deposit rate lending & deposit
Nominal Real Nominal Real Nominal Real
June 1998 15..6 7.8 8.4 0.6 7.2 7.2
June 1999 14.6 8.9 8..0 2.3 6.6 6.6
June 2000 12.9 9.3 7.4 3.8 5.5 5.5
January 2001 14.2 9.3 6.4 1.5 7.8 7.8
February 2001 13.7 8.9 6.4 1.6 7.3 7.3



Year Domestic Banks Foreign Banks Total

June 98 8049 81 8,130
June 99 7973 85 8,058
June 2000 7877 78 7,955
March 2001 7638 78 7716

Source: State Bank of Pakistan

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Number of nationalized scheduled banks 4

Number of private scheduled banks 16
Number of specialized banks/development financial
Number of investment banks 12
Number of foreign banks 19
Number of bank branches 7,955
Number of leasing companies 29
Number of Stock exchanges 3
Total number of listed companies 1,679
Aggregate market capitalization Rs. 293bn

Banking and financial sector plays an important role in the economic development of
every country. So in order to develop our country, our banking sector need to be very
well organized, efficient and up-to-date. Economy of Pakistan is passing through a
difficult phase and these are the banks which can bring our country out of this
whirlpool victoriously. The financial services sector still offers good opportunities in
consumer banking, corporate bonds, underwriting of equity issues for privatisation,
refinancing of U.S. exports to Pakistan under letters of credit and advisory services
for due diligence and project feasibilities

I joined Standard Chartered Grindlays Bank (Tufail Road Branch) to get my

internship experience of six weeks which falls under the category of FOREIGN
BANK. While it is felt in certain quarters that the operations of the foreign banks tend
to inhibit the development of the Pakistani Banks, others feel that foreign banks must
be allowed to play their valuable role by setting up sound traditions which can help
the national banking system to develop on the healthy lines. A rather important
feature of foreign bank financing is the predominance of exports, imports, and stock
exchange securities financing in their operations. In the past few decades, the

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financing of the foreign banks in these agriculture, manufacturing, commerce, and
construction has been far greater than that of Pakistani Banks.

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The prelude:

Here is a brief introduction describing the incorporation, locations and performance of


• Standard Chartered is the world's leading emerging markets bank

headquartered in London. Its businesses however, have always been
overwhelmingly international.
• The Bank is currently operating in Africa, Asia Pacific, America, Middle
East & South Asia and Europe.
• Standard Chartered is employing nearly 30,000 people in over 750 offices
in more than 56 countries primarily in countries in the Asia Pacific
Region, South Asia, and the Middle East, Africa and the Americas and its
assets stand at approximately US$ 90 billion.
• The bank has the privilege of holding two of the largest acquisitions in the
history of the bank with the purchase of Grindlays Bank from the ANZ
Group and the acquisition of the Chase Consumer Banking operations in
Hong Kong in the year 2000.
• The Bank target market comprises of both Consumer and Wholesale
banking customers.
• The Consumer Bank provides credit cards, personal
loans, mortgages, priority banking, investment advisory
services, personal investment, insurance, rental services,
retail FX products deposit taking activity and wealth
management services to individuals and medium sized
• The Wholesale Bank provides services to multinational,
regional and domestic corporate and institutional clients
in trade finance, cash management, custody, lending,
foreign exchange, structured finance, electronic

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banking, interest rate management and debt capital
• In Pakistan, the Group comprises of Standard Chartered Bank and
Standard Chartered Grindlays Bank, the largest foreign banking group in
the country, with a collective experience of 270 years in Pakistan alone.
• The bank with its long heritage of nearly 150 years is capable to change
with time, offering quality products by means that are convenient to the
potential customers.
• The bank has currently 21 online branches across Pakistan in all the four
provinces and eight major cities which ensure that the services are being
performed quickly and efficiently.
• There are 6 branches (two of Standard Chartered Grindlays Bank and four
of Standard Chartered Bank) in Lahore, offering unmatched services to its
• The bank head office capital account stands at Rs. 2,521.236 millions
where as its reserves and unremitted profits aggregate at Rs. 618.691
millions as on 31st Dec. 2001.
• The bank recorded an increase of 20% in the deposit holdings in the
financial year 2001.
• First Grindlays Modarba, the pioneer and the largest leasing entity, has
been introduced by Standard Chartered Bank (a foreign bank) in the
industry and this is the only Modarba in Pakistan with an external credit
rating of A2.

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Courageous, International, Responsible, Creative…

Standard Chartered is the world's leading bank headquartered in London. However, it
has been operating all around the world. In fact it is more successful in the regions
other than Europe such as South Asia and Middle East. Here I am giving a brief
summary of the main events in the history of Standard Chartered and some of the
organizations with which it merged.




Of the two banks, the Chartered Bank is the older having been founded in
1853 following the grant of a Royal Charter from Queen Victoria. The moving
force behind the Chartered Bank was a Scot, James Wilson, who made his
fortune in London making hats. James Wilson went on to start “The
Economist”, still one of the world's preeminent publications.


The Chartered Bank

• opened its first branches in Chennai and Mumbai

• A branch opened in Shanghai that summer beginning Standard
Chartered's unbroken presence in China.


The following year the Chartered Bank

• opened a branch in Hong Kong

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• an agency was opened in Singapore.


The Singapore agency was upgraded to a branch which helped provide finance
for the rapidly developing rubber and tin industries in Malaysia.


The Chartered Bank was authorized

• To issue bank notes in Hong Kong.

• To issue bank notes in Singapore, a privilege it continued to exercise
up until the end of the 19th Century.

Over the following decades both the Standard Bank and the Chartered Bank printed
bank notes in a variety of countries including China, South Africa, Zimbabwe,
Malaysia and even during the siege of Marketing in South Africa. Today Standard
Chartered is still one of the three banks which print Hong Kong's bank notes.


The Chartered Bank expanded opening offices including Myanmar.


The Chartered Bank opened its branches in Pakistan and Indonesia.


The bank extended its banking network in Philippines.


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Malaysia was included in the global banking network of the bank.


The bank’s expansion plan continued as it opened its offices Japan in 1880.


Some 34 years after the Chartered Bank appointed an agent in Sri Lanka, it
opened a branch in 1892 to take advantage of business from the tea and rubber


The chain of expansion continued as the bank entered the soil of Thailand in


The Chartered Bank opened offices in New York and Hamburg in the early
1900s. The Chartered Bank gaining the first branch license to be issued to a
foreign bank in New York.


During 1904, a branch opened in Vietnam.



Nine years after the formation of The Chartered Bank, in 1862, the Standard
Bank was founded by a group of businessmen led by another Scot, John

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Paterson, who had immigrated to the Cape Province in South Africa and had
become a successful merchant.

Both banks were keen to capitalize on the huge expansion of trade between Europe,
Asia and Africa and to reap the handsome profits to be made from financing that


The Standard Bank opened for business in Port Elizabeth, South Africa, in
1863. It pursued a policy of expansion and soon amalgamated with several
other banks including the Commercial Bank of Port Elizabeth, the Colesberg
Bank, the British Kaffarian Bank and the Fauresmith Bank.


The Standard Bank was prominent in the financing and development of the
diamond fields of Kimberly in 1867.


The Standard Bank extended its network further north to the new town of
Johannesburg when gold was discovered there in 1885. Over time, half the
output of the second largest goldfield in the world passed through the Standard
Bank on its way to London.


The Standard Bank opened for business in Zimbabwe.


The Standard Bank expanded into Mozambique.

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The Standard Bank came to Botswana in 1897.


The Standard Bank opened offices in New York and Hamburg in the early


The bank extended its services in Malawi in 1901.


The bank entered the region of Zambia in 1906.


Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.) started

enjoying the privileged services of the bank in 1911.


Uganda was the one included in the global banking network of the bank in

Of these new businesses, Botswana, Zanzibar and the D.R.C. proved the most difficult
and the branches soon closed.


A branch in Botswana opened again in 1934 but lasted for only a year

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The Bank re-opened for business in Botswana in 1950.


The First World War:

Even the First World War offered opportunities for expansion when the Standard
Bank set up a branch in Tanzania shortly after British troops occupied the formerly
German administered Dar-es-Salaam in September 1916. Both banks survived the
inter-war years but the world trade slump led to the closure of operations in the
Canary Islands, Liberia, the Netherlands, and Equatorial Guinea. Disaster struck the
Chartered Bank's office in Yokohama, Japan, when it was destroyed by an earthquake
in 1923 killing a number of staff.

The Second World War:

The Chartered Bank was particularly affected by the Second World War when
numerous Asian countries were occupied by Japan.


After the Second World War many countries in Asia and Africa gained their
independence. This led to local incorporation in some countries, particularly in Africa.
Other operations such as those in Iraq, Angola, Myanmar and Libya were
nationalized, while in Indonesia the Jakarta office was destroyed in an attempted coup


In 1948 the Chartered Bank opened in Bangladesh.

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During 1957 it acquired the Eastern Bank. The Eastern Bank gave the
Chartered Bank a network of branches including Aden, Bahrain, Beirut,
Cyprus, Lebanon, Qatar and the United Arab Emirates.


The Chartered Bank also entered into a joint venture to form the Irano-British
Bank which opened for business in 1959. The bank grew rapidly and had 24
branches when it was nationalized in 1981. By the mid 1950s the Standard
Bank had around 600 offices in Southern, Central and Eastern Africa.


Its network grew substantially in 1965 when it merged with the former Bank
of British West Africa which had some 60 branches in Nigeria, 40 branches in
Ghana and eleven branches in Sierra Leone in addition to operations in
Cameroon and Gambia. Despite these acquisitions and expansion into new
countries such as Mexico, South Korea and Oman (1968), both the Standard
and Chartered Bank networks were comparatively small. Both viewed the
future with some trepidation as the need to protect themselves from
acquisition became ever more apparent.


Standard Chartered is named after two banks which merged in 1969. They were
originally known as the Standard Bank of British South Africa and the Chartered
Bank of India, Australia and China.

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The Merger between Standard & Chartered Banks:

In 1969 the decision was made by the Standard Bank and the Chartered Bank to
undergo a friendly merger thus forming Standard Chartered PLC. It was one year later
that the descendants of the "Chartered Bank of India, Australia and China" were
finally permitted to open a representative office in Sydney, Australia.


Standard Chartered subsequently acquired the UK based Hodge Group, in which it

already had a minority shareholding. The Hodge Group brought to Standard Chartered
an extensive network of UK offices specializing in installment credit and industrial
leasing, and after a period of rationalization its name was changed to Chartered Trust


Subsequently Standard Chartered acquired Wallace Brothers Group. Its operations in

Jersey emerged from the integration of other Hodge Group businesses with those of
Wallace Brothers Bank (Jersey), Limited.


Standard Chartered decided, after the merger, to expand the Group outside its
traditional markets.

In Europe

• A number of offices were opened including Austria, Belgium,

Denmark, and Ireland, Spain and Sweden as well as several major cities in
the UK.

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• Standard Chartered also opened offices in Argentina, Canada,
Colombia, the Falkland Islands, Panama and Nepal.


• A number of offices were opened and three banks were acquired. These
included the Union Bank of California which gave Standard Chartered a
presence in Brazil and Venezuela.
• The opening of a branch in Istanbul in 1986 was overshadowed by a far
more dramatic event when Lloyds Bank of the UK made a hostile take-
over bid for Standard Chartered. Standard Chartered won its right to
remain independent but entered into a period of considerable change.


By the late 1980s

• Standard Chartered already had considerable exposure to third world

• The bank had provisions against loans to corporations and
entrepreneurs who could not meet their commitments.
• The bank reviewed its operations and decided to focus on its core
strengths of Consumer Banking, Corporate & Institutional Banking and
Treasury in its well established operations in Asia, Africa and the Middle
• Prime focus in Asia, Africa, and Middle East led to a series of
divestments notably in Europe, the United States and Africa.
• Staff numbers were reduced; businesses not considered core were sold
or closed; associate holdings disposed of; unprofitable branches closed and
back office functions consolidated.

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• Expensive buildings were sold with the proceeds reinvested in the
business, and the senior management team was radically changed and


The main headlines included

• Even within this period of apparent retrenchment Standard Chartered

expanded its network, re-opening in Vietnam in 1990, Cambodia and Iran
in 1992, Tanzania in 1993 and Myanmar in 1995.
• With the opening of branches in Macau and Taiwan in 1983 and 1985
plus a representative office in Laos (1996), Standard Chartered now has an
office in every country in the Asia Pacific Region with the exception of
North Korea.
• In 1998 Standard Chartered concluded the purchase of a controlling
interest in Banco Exterior de Los Andes (Extebandes), an Andean Region
bank involved primarily in trade finance. With this purchase Standard
Chartered now offers full banking services in Colombia, Peru and
• In 1999, Standard Chartered acquired the global trade finance business
of Union Bank of Switzerland. This acquisition makes Standard Chartered
one of the leading clearers of dollar payments in the USA.
• Standard Chartered also opened a new subsidiary, Standard Chartered
Nigeria Limited in Lagos, acquired 75 per cent of the equity of
Nakornthon Bank, Thailand; and agreed terms to acquire 89 per cent of the
share capital of Metropolitan Bank of the Lebanon.


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Today Standard Chartered is the world's leading emerging markets bank employing
30,000 people in over 750 offices in more than 56 countries primarily in countries in
the Asia Pacific Region, South Asia, the Middle East, Africa and the Americas.

The Acquisition of ANZ GRINDLAYS BANK:

The new millennium has brought with it the largest acquisitions in the history of the
bank with the purchase of Grindlays Bank from the ANZ Group in the regions of
Middle East and South Asia for US$ 1.34 Billion.

The Acquisition of Chase Consumer Banking operations:

The acquisition of the Chase Consumer Banking operations in Hong Kong for US$
1.32 Billion in 2000 demonstrates Standard Chartered firm committed to the emerging
markets, where it has a strong and established presence and where it sees its future
growth. Deal Makes Standard Chartered Market Leader in Hong Kong Cards.

Standard Chartered PLC announces that it has signed an agreement with The Chase
Manhattan Bank to acquire the entire issued share capital of Chase Manhattan Card
Company Limited ("Chase Manhattan Card") and Chase’s Hong Kong-based retail
banking business for around US$1.32 billion. The total consideration, which includes
goodwill of US$1.02 billion, will be paid in cash and will be determined by reference
to completion accounts.


Standard Chartered sold Chartered Trust, the group’s UK and Channel Islands
consumer finance and contract hire businesses, to Lloyds UDT, a subsidiary of
Lloyds TSB Group, for £627 million in cash.


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Standard Chartered is a leading player in the world's major financial centers with clear
leadership in the emerging markets. Through their onshore presence in 57 countries,
they offer a one-stop risk management solution to our customers - the local corporate,
multinational companies, investment and financial institutions, and central banks.
At Standard Chartered, they understand your needs and they seek to deliver their
products and services to the customer without compromising on their standards of
service and delivery.

The Standard Chartered Bank is the first in the MESA (Middle East And South Asia)
region and the First in the local market to offer E-Statements to its customers. The
launch of this service further reinforces Standard Chartered’s commitment towards
providing prompt and hassle-free services to its customers. It allows its customers to
access to their statements anywhere in the world-A big SUCCESS.

The Bank serves

 Consumer banking customers

 Wholesale banking customers

Consumer Banking

Provides services to

1. individuals and
2. small/medium sized businesses.

And the facilities include:

 credit card
 personal loans,
 mortgages,
 deposit taking and
 wealth management services

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The Wholesale Bank

provides services to

1. multinational,
2. regional and domestic corporate
3. institutional clients

and the services include:

 trade finance,
 cash management,
 custody,
 lending,
 foreign exchange,
 interest rate management
 debt capital markets.

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Courageous, International, Responsible, Creative…


Organizational goal and strategy define the purpose and competitive techniques that
set it apart from others organizations. Goals are often written down as an enduring
statement of company intent.

A strategy is the plan of action that describes the resource allocation and activities for
dealing with the environment and for reaching the organizational goal. Goals and
strategies define the scope of operations and the relationship with employees, clients
and competitors.,

With over 140 years of experience in trade finance and an extensive international
branch network, Standard Chartered is committed to help the customer succeed in
every competitive environment. To keep pace with changing needs, SCB constantly
review its comprehensive cash, trade and treasury products and services, ensuring that
a full range of flexible and innovative services is always available for the customer
wherever they trade.


As it is said that an organization’s culture, products, services, employees, their

attitude, philosophy, self-concept, markets and environment throws light on the
corporate mission, so one of the business executives at the bank, based on his personal
observation and judgment, carved the following mission of The Standard Chartered
Bank as

“Be the emerging markets leading consumer bank and winning

equals doubling the economic profit in three to five years.”

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This is not only a mission of the bank but also an inspiration for the entire
management either at higher level or at bottom.


To put it simply
“Committed to making today’s more complex financial world easier for our


The main objective is

“To offer outstanding value to the customers by providing a
knowledgeable, efficient and reliable service in a personal, helpful
and responsive-manner.”
The objectives of the Standard Chartered Bank carving way towards the mission are
• To be fast, focused, and determined.
• Its tough out there- we face brutal challenge from both global competitors and
local banks.
• Like leopard- be more agile, move swiftly, respond faster, and work smarter.
• Creating values for the customers, shareholders and employees.
• Customer satisfaction and delight is given the top priority as we are for the
customers and not the customers for us.


Wealth management, secured loans, basic financial services, and shared
distribution are the ways we can create value for our customers as well as for

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shareholders and employees. 5 value centers have been created so as to show
to the customers that how much we value them.

Wealth management, secured} creating value

Loans, unsecured loans, BFS &} for customers, shareholders

Shared distribution} and employees

Keep focused on the new opportunities in order to capitalize on them timely,
profitably and efficiently.

{Focus our organization against the opportunities} 5 core Values centre


Ensuring the involvement through team work and participation.

Teamwork delighting customers


These objectives and guiding mission will be achieved through

• Focused objective
• Winning as a team
• Excellence in delivery
• Relentless quality
• Upward rising sales


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Being courageous is about confidently doing what’s right. Often the task may
seem insurmountable but with courage and tenacity the odds can be overcome.
A truly courageous act aspires and builds character.

How we respond to our customers will influence their belief in our
commitment to them. A productive response is often unexpected and more
effective for that. It clearly demonstrates our willingness to go beyond the

As a member of global village, we view the world from the widest
perspective. We are all global citizens and believe the world is full of new
opportunities and exciting possibilities. We also deliver world-class product
and services.

Creativity belongs those of us who are excited by challenges and engage them
with fresh thinking and an open mind. Creative thinkers are not limited by
convention but allow their minds to soar beyond practical solutions.

Trust is the foundation of every successful relationship. We trust, because, we
believe in the sincerity of the promise. Building trust can take forever. Losing
trust takes only moments.

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Standard Chartered is an international organization operating in over 50
countries. Standard Chartered has world-class managers and employees. Its
aim is to develop this talent even further. This will create greater customer
loyalty and greater benefit for all - staff, shareholders and the community.

The challenge for the bank is that, unlike organizations who may be working
in one country or countries with similar cultures and laws, the bank have to
achieve the best people policies it can while being mindful of the different
countries and cultures in which it operate. Differences in culture, social
structure and economic status mean that one size may not fit all. Each of the
countries in which it operates will potentially have different laws, regulations
and customs. It strives to balance the need for global policies and processes
without imposing rules that may conflict with the diverse local needs and ways
of working of different countries.


Standard Chartered reputation is critical to being the world's leading emerging

markets bank. The preservation and enhancement of that reputation depends
upon businesses operating to the highest standards of ethical conduct.

SCB faces a particular challenge to uphold consistent standards of conduct

while at the same time respecting the culture and varying business customs of
all the countries in which it operate.

The principles that govern the behaviour of its business and employees are
reflected in a Group Code of Conduct. The Group Code of Conduct is a

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practical working document which guides employees through the many
difficult conduct issues which confront them on a daily basis. Complying with
each element of the Code will not always be easy but the employees recognise
that they will be judged not just by what is set out in the Code but on how this
is reflected in their day to day activities and the behaviours.

There follows a summary of key elements in the Group Code of Conduct:

 Local Laws & Group Standards
 Confidentiality & Data Protection
 Suitable Products
 Money Laundering
 Insider Trading
 Bribery & Corruption
 Gifts & Entertainment
 Conflicts of Interest
 Dealing in Standard Chartered Shares
 Speaking Up

Standard chartered Bank is proud to showcase commitments to and awareness for the
environment and encouraged if motivated by the customers in making day to day

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Courageous, International, Responsible, Creative…



The Executive Directors:

• Sir Patrick Gillam

The Chairman
Age-68 years

Appointed to the board on 1st August, 1988 and became Chairman on 6th May,
1933. He is also chairman of Royal & Sun Insurance Group.
• Mervyn Davies CBE
Group Chief executive (CBE)
Age-49 years

Appointed GCE on November 29, 2001. Prior to this appointment, he was the
Group Chief Director with responsibility for Hong Kong, China, and North
East Asia and for Group-wide Technology and operations.
• Mike Denoma
Age-45 years

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Appointed to the board on 12th May, 2000. he is responsible for consumer
banking world wide and for corporate governance in Thailand, Indonesia,
Philippines, & Brunei. He is based in Singapore.
• Chris Keljlk

Appointed to the board on 7th May,1999. He is responsible for the Group’s

business in Africa, Middle East, & South Asia, Risk Management, Audit,
Special Asset Management, and external affairs.
• Kia Nargowala
Age-51 years

Appointed to the board on 7th May, 1999. He is responsible for the Whole Sale
Business world wide and for corporate governance in America, Singapore,
India, Malaysia, Australia, and Indo China. He is based in Singapore.
• Peter Sands
Age-40 years

Appointed as Finance Director with effect from May 14, 2002. Responsible
for Group Finance and Strategy.

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The Non-Executive Directors:

• Lord Stewartby RD
Deputy Chairman
Age-66 years

Appointed to the board on 1st January, 1990. he is the chairman of the

Throgmorton trust PLC, Deputy Chairman of Amlin PLC and a former
member of thr Financial Services Authority.
• Ronnie Chan
Age-53 years

Appointed to the board on 1st January, 1990. He is the Chairman of the Hang
Lung Group and a founding director of the Morning Side/ Spring Field Group.
He is based in Hong Kong.
• Sir Ck Chow
Age- 51 years

Appointed to the board on 24th February, 1997. He is Chief Executive of

Brambles Industries Ltd. He is the governor of the London Business School.
• Barry Clare

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Age-49 years

Appointed to the board on 31st July, 2000. He is an executive director of the

Boots Co. PLC.
Age- 55 years

Appointed to the board on February 19, 2001. He is finance director of

• David Moir
Age-62 years

Appointed on 1st January, 1993 as an executive director. He retired as an

Executive Director on 18th March, 2000 but remains as non-executive director.
He is a non-executive director of Finance Alliance International Pvt. Ltd.
• Ho Kwon Ping
Age- 65 years

Appointed to the board on 7th August, 1995. he is a non-executive director of

Inchcape Plc.
• Hugh Norton

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Age- 50 years

Appointed to the board on 22nd October, 1996. he is the president of the Wah-
Chang Group and the Chairman of Banyan Tree Totel and Resorts. He is
based in Singapore.
• Sir Ralph Robins
Age- 69 years

Appointed to the board on 1st October, 1998. he is executive chairman of

Rolls-Royce Plc and non-executive chairman of Cable & Wireless Plc. He is a
non-executive director of Schroders Plc and Marks & Spencen Plc.
• Anthony Stenham
Age-70 years

Appointed to the board on 1st October, 1991. he is the chairman of Tele West
Communications Plc, Whatsonwhen Plc and IF Online Group Plc and a non-
executive director of other companies.

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• Chief Executive Officers
UAE Andrew Duff
Bangladesh Rumee Ali
Jordan Zahid Rahim
Lebanon B Chandresekar
Bahrain Usman Morad
Qatar Arif Mansoor

• Regional Heads Of Corporate Affairs

UAE Alex Blake Milton
Africa Audrey Mpunawana
South East Asia Wong Ai Kwei
North East Asia Bethy Tam
America Rory Hayden
UK & Europe Sue Solomons
Kenya & East Africa Titus Mutiso
Ghana & West Africa Willing Vanderpuije

• Regional General Manager (MESA)

John Filmerids

• Country Heads of Corporate Banking (MESA Region)

Bahrain Abdul Rahman Buchiri
Bangladesh Bahul Ahsan
Gulf Andrew Duff
Jordan Sabry Ghouse
Lebanon Corine Sawaya
Pakistan Khadija Hashmi

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Srilanka Jayasundara
Oman Shelton Peiris
• Head of Emiritisation & Administration Abdulla Al Sayyah
• Executive Director of Centre for Policy Dialogue
Dr. Debopriyo Bhattacharrya
• Group Economist of SCB Gill James
• MESA Coordinator Rumee Ali
• Head of Media Relations Paul Marriage

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Cote d’ lvoire
South Asia
Asia Pacific:
Hong Kong

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South Korea
United States
Middle East & South Asia:

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UK & Europe:
The Falkland Islands
Off Shore Financial Services
Standard Chartered Network

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Name / Title Location Tel / Fax
Audrey Mpunzwana Africa Tel: (4420) 280 7163
Fax: (4420) 280 7156
Regional Head
Mbl: (263) 11 606 950
Corporate Affairs, Africa
Musonda) Trevor Botswana Tel: (267) 360 1688
(267) 360 1901

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Mwamba Fax: (267) 353 446
Mbl: (267) 7131 0910
Head of Legal &
Compliance, Corporate
Gladys Inoni Tel: (237) 230 335
Fax: (237) 221 501
Corporate Affairs Cameroon
(Philippe ) Serge Bailly Tel: (225) 20 30 32 63
Fax: (225) 20 30 32 61
Corporate Affairs Cote D'ivoire
Mbl: (225) 07 03 90 47
Fatou Mas Jobe, Tel: (220) 201 305
Fax: (220) 227 714
Head of Corporate Gambia
Mbl: (220) 961 577
Willing Vanderpuije Tel: (233) 21 669 688
Fax: (233) 21 661 676
Area Head of Corporate
Ghana & West Africa Mbl: (233) 24 327 527
Ghana & West Africa
Titus Mutiso Tel: (2542) 217 235
Fax: (2542) 214 086
Area Head of Corporate
Kenya Mbl: (254) 7282 9236
Kenya & East Africa
Fola Akande Tel: (234) 1 320 2000
Nigeria Fax: (234) 1 262 6801-5
Corporate Affairs Mbl: (234) 1 262 6814
Genevieve Kotta Tel: (255) 22 2139 825
Fax: (255) 22 2113 770
Corporate Affairs Tanzania
Mbl: (255) 744 311 455
Harriet Musoke Tel: (256) 41 250 034
Fax: (256) 41 231 473
Corpoarte Affairs Uganda
Mbl: (256) 77 221 045
M’kwinda Sakala Tel: (260) 1 225 244
Fax: (260) 1 223 633
Corporate Affairs Zambia
Mbl: (260) 772 069

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Fatima Antipas Zimbabwe Tel: (263) 4 752864
Ext. 240
Fax: (263) 4 758630


Name / Title Location Tel / Fax
Tel: (62 21)574 3492
(62 21)573 5555

Abdul Halim Mahfudz Ext 2685

Indonesia (62 21)251 3333
Head of Corporate Affairs
Ext 2685
Fax: (62 21)571 9625
Mbl: (62 816)190 3085
Zaiton Hj. Idurus Tel: (603) 2074 4178
Fax: (603) 2026 0251
Head Of Corporate Affairs, Malaysia
Mbl: (60) 12 399 2318
Malaysia & Brunei
Zeny MP Iglesias Tel: (632) 878 2815
Fax: (632) 886 7146
Head of Corporate Affairs Philippines
Mbl: (917) 839 2326

Wong, Ali Kwei Tel: (65) 6530 3450

Fax: (65) 6423 0965 / 7
Regional Head of
Singapore Mbl: (65) 9672 8289
Corporate Affairs, South
East Asia
Safina Komoltamaetee Tel: (662) 724 8010
Thailand Fax: (662) 724 8019
Head of Corporate Affairs Mbl: (661) 817 7776


Name / Title Location Tel / Fax
Tel: (86) 21 5887 1230
Crystal Jing Qian
Ext 7365
Corporate Affairs Manager China Fax:(86) 21 5876 8598
(86) 138 0166 5750
Bethy Tam Hong Kong & China & NE Tel: (852) 2820 3812

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Regional Head Corporate Fax: (852) 2537 3936
Mbl:(852) 9026 8638
Hong Kong, China & North
East Asia
Tel: (8862) 2514 6627
Cindy Tang Fax:(8862) 2545 1380
Taiwan Mbl
Head Corporate Affairs (8869) 3533 9743

Name / Title Location Tel / Fax
Abdul Rahman Buchiri Tel: (973) 209 677
Fax: (973) 209 639
Head of Corporate / Bahrain
Mbl:(973) 968 7779
Consumer Banking Product
Alex Blake- Milton Tel: (9714) 508 8150
Fax: (9714) 508 8241
Regional Head of Corporate
Mbl: (971 50) 552 4946
Affairs UAE
Middle East & South Asia
( excluding India)


Name / Title Location Tel / Fax

Tel: (201) 333 7092
Rory Hayden,
Fax: (201) 333 7095
Regional Head of Corporate Americas
Affairs (917) 678 6397

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SCB-A Global Company with a Personal Touch:

Standard Chartered bank has been present in the region that now constitutes Pakistan
for over 136 years. With 21 branches nationwide, it has as played a pivotal role in
establishing Pakistan as a key financial centre. SCB is Pakistan’s largest foreign
banking group and one of the world’s leading banks which offer a rear combination of
product and service benefits. Its commitment, friendly staff insists that customer
business is carried out quickly and efficiently.

Standard Chartered is an international bank, focused on the established and emerging

markets of Asia, Africa, the Middle East and Latin America with an extensive global
network of more than 750 offices in over 56 countries.

The three principal business groups are

• Global Markets,
• Consumer Banking
• Corporate and Institutional Banking.

In Pakistan, SCB is one of the leading banks offering an extensive range of products
and services for
• Personal customers,
• Corporate customers and
• Financial institutions.

The Corporate Banking Division covers all corporate segments of the local market. In
Treasury, Standard Chartered Pakistan has put great emphasis on tailoring and

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marketing customer focused Treasury related products and services.

Personal Financial Consultancy Facility:

Central to this service philosophy is its professional consultative approach it takes

with each customer. By getting to know its customers better, SCB can identify with
their needs and match them with tailor-made quality products and service solutions.
The helpful personal financial consultant will look after all customer needs from a
single desk.

Priority Banking:

Their priority banking centers offer an unmatched private banking service where
customers receive a higher quality of service and personal attention in an exclusive
and elegant environment. So let green and blue set the standard for you. Standard
Chartered bank has five branches in Lahore in different areas the main branch of
Lahore is at Tufail road Cantt; other branches are in Defense, Gulberg, Mall and
Garden town (NGT).

Adopting a pro-active approach, SCB is able to offer a flexible and comprehensive

range of financial services, in particular transactional banking products. Standard
Chartered have also invested in their branches to ensure that their business is
supported by high-tech operations using state-of-the-art technology. Standard
Chartered have dedicated Customer Service Centers with solution-oriented cash
product specialists to provide customers with cost-effective solutions. Electronic
delivery system has been put in place to give customers maximum control of their
transactions. Pakistan's currency is the Rupee (SWIFT code: PKR).

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Standard Chartered fully understands the importance of time, convenience and
efficiency to the success of customer business. They make easy the complex financial
world for its customer and help them maximize every opportunity.

The Acquisition of ANZ Grindlays:

Before 31st July, 2000 ANZ Grindlays and Standard Chartered bank were two separate
entities. Standard Chartered PLC announced on 31st July 2000 the completion of the
US$1.34 billion acquisition of Grindlays Bank and the associated Grindlays Private
Banking business from Australia and New Zealand Banking Group Limited after
obtaining necessary regulatory approvals for completion.

On 31st July 2000 ANZ sold its 51% shares to Standard Chartered bank in MESA
(Middle East South Asia) MESA consisting of 16 countries. So it became Standard
Chartered Grindlays bank. The acquisition was to be completed within three years and
now all the Grindlays Bank’s account holders have been transferred to the Standard
Chartered Grindlays Bank-Gulberg Branch (ALM-Assets Liabilities Migration
Process) and once again it has become Standard Chartered Bank.

A declaration in this regard was published in the daily “The News” dated December
01, 2002 that Standard Chartered Bank has successfully completed the acquisition
process of Grindlays Limited on Dec. 01, 2002. As a result of the amalgamation, both
banks have begun to operate as a single legal entity under a corporate identity with no
change in banking services.


This move positions Standard Chartered as the leading international banking business
in India, Pakistan, Bangladesh and Sri Lanka, and gives a much stronger position in

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the Middle East where it is now challenging for market leadership. The move has
brought great benefits to international customers and customers in the region.

The move also significantly strengthens Standard Chartered’s position as the world’s
leading emerging markets bank, adding India to rank alongside Hong Kong, Malaysia
and Singapore as significant profit contribution.

In Pakistan, the strength of staff for SCB is 325. Last year it was 502 declining as a
result of the merger.

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Regional Credit &
Risk Management
Head of
Consumer Banking
Abid Sattar
Tehmina S.
Petigara Marketing
Shared Secured Credit &
Unsecured Support
Distribution Loans Collections
Loans & Wealth
Aasim Haroon Mehreen
S. Mujtaba Management
Akhtar Mahmood Ahmed
Abbas Mohammad
Credit Cards Auto Loans Ali HabibMarketing
Hubs Support Credit Policy

Network Merchant Service

Mortgages NBU
Branches Acq Quality

Sales & Data Ware-

Personal Collections
Service Sales housing
Centres BIU

Sales Marketing Brand

Manageme Legal
Direct Sales -
nt Media/Age
Marketing Alternative ncy
Channels Manageme Recovery




Standard Chartered Bank- Consumer Banking In Pakistan

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Group Representative

Country Manager (Two)

Area Managers

Branch Managers


Floor Managers Govt. Sec. Lockers Cash BSU

PFCs Chief Head Teller

CROs Tellers


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Branch Manager
Alishan Zaidi
Direct Sales Deptt.

Teller Services
Khurram Butt Manager (TSM) Asif A. Habib
Head Sarfaraz Hussain Team Leader

Shehraz Amir M.Hanif Sadia

Asmara Hafeez DSO Credit Clerk Contractual
Coordinator Rana Contractual
DSO Shahzad Raees
Contractual Contractual Ahmed
Rabia Credit
Faisal Qasim Khan DSO Officer
DSO DSO Contractual
Contractual Contractual Floor Manager (FM)
Fariha Ramzan


Sheher Bano Shakeel

Contractual Contractual Farooq Faisal Arshad
Mujahid Arshad Iqbal

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Teller Services
Manager (TSM)
Sarfaraz Hussain

Govt. Cash Teller

BSU Teller

Team Leader
Farzana Shah Shahab

Head Teller
Sabtain Syed Hassan
Mustafa R.Kirmini Sohail

Ahmed Bilal Ghias Waseeem Jaffar
Hassan Malik Butt Raza

Credit Cards Corporate

Department Center

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These two departments directly reports to Karachi head office.



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A small comment on organization design (OD) has been included for complete
understanding of the term “resourcing”.
In brief ,organization design (or organization development ) is a process or tool
whereby an organization , or a section of an organization , can step back and do an
inventory of itself in relation to the business it is doing or, more usually, the business
it intend to do.
From the H R perceptions, the most common application is effectively a skills
inventory. The process would involve an assessment of the skills\competencies
required to conduct the business, now or in the future, followed by an audit of the
current existence and level of that skill within the organization, and then decisions on
how to bridge the gap between the required competencies and the existing pool. It is a
process that is often used by organization that intend to either fundamentally
transform themselves, or organizations that intend to move into wholly new areas of
business (perhaps through vertical or horizontal integration).
A small practical example of the process at work was seen in Dubai (though it wasn’t
called organization development\deign at the time). In 1995, the Consumer Baking
business underwent a significant transformation, moving away from ‘traditional’
branches to the concept of a branch as “sales & service platform”, and the attendant
centralization of virtually all CB operations.
During this process it became evident that new skill sets would be required,
particularly in the sales and service area, and it also became clear that SCB did not
have an adequate supply of those skills amongst existing staff. Therefore, a decision
was made to combine a redundancy program with a recruitment program in order to

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provide the necessary skills (along with some re-skilling of existing staff where that
was possible).
OD is a useful technique, and although SCB now has the fundamental building block
for an OD process, with the competency model, it does not have the in-house
capability for major OD work, and any business contemplating a major change should
seek outside expertise.


Manpower planning is a technique usually associate with employers who employ

large numbers of the same sort of people in one location or country. In essence it
attempts to map supply and demands of skills as a basis for making strategic decisions
on how to influence the supply side of the equation, and on whether and where to
establish businesses. Typical users would be central and local government (e.g. supply
and demand of teachers), large manufacturing organizations, and service
organizations having a dominant employment position in a particular area.

Though SCB worldwide is a significant employer in terms of numbers, those numbers

are spread over many geographies and business, such that it rarely has such a
dominance of the market for particular skills which would require it to do formal
manpower planning.
The only instance in which it might be applicable in the SCB context would be in
countries where it is trying to build significant numbers of local national employees
from a low base. And with limited supply (e.g. U.A.E.). However, even in such cases,
it would be likely to depend on manpower planning work done by the central


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Manpower budgeting refers to the annual process of establishing the manpower
requirement to conduct the business for the forthcoming year. It is one of the key
processes in the overall resourcing process. It is at this stage that get to the detail of
identifying immediate (one year horizon) manpower requirements. It is key because
decisions on manpower budgets have a direct impact on total headcount and a
significant impact on total cost. A properly constructed manpower plan also allows
some planning in the recruitment process.

The manpower budget for each business, and for the support functions, must
flow/derive from the business plan for the forthcoming year. Clearly the prime
responsibility for the manpower budget lies with each business/function head. The
‘easiest’ way in which to prepare a manpower plan is, from a review of the business
plan, to simply add and subtract positions from the current organization. This however
assumes that the current structure and numbers are appropriate, an assumption which
may be incorrect.

Standard Chartered Grindlays has a number of tools which can help build a more
accurate manpower budget, and H R can play a challenging/facilitating role in the
process. The following are some suggestions on how that might be done.

First, for each business, based on the business plan, and using capacity information,
standard structure and job family information where available, build structure and
number for the ‘front’ office.

Then again based on capacity information and estimates of transactions from the
business plan, build appropriate back-office structures and numbers.

Finally, based on business requirements and the support function plans (derived from
the business plans), build the support department structure required.

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Once agreed organization structure and charts produced then, and in advance
preparation for recruitment/resourcing activity. Line management must ensure that for
each position on the organization charts, an up-to-date and signed-off job description
exists. This must include new positions that are vacant at that point in time. This has
two main benefits – first, for new positions, the job can be in preparation for
recruitment, and second the job description from the basis for the recruitment and
selection process, including advertising and selection.
For managerial level jobs (only, at present) each job must also have a competency
profit from the standard set of competency profiles.


The final product of the manpower budgeting process should be a recruitment plan.
This plan should be prepared by the H R function, based on the agreed requirements
for the business and functions as expressed in the organization charts, and the timing
of those requirements. This in turn allows advance planning of recruitment so that
timetables are met.


Your Gross Salary (Basic + Housing Rent Allowance + Utility Allowance) is paid
monthly in arrears, normally by the 25th of each month. The pay period runs from the
first to the last day of the month inclusive. Where the 25th falls on a non-working day,
payment is made on the last preceding working day.

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If you join the Bank other than on the first day of the calendar month, your salary and
allowances for that month will be prorated.


Standard Chartered operates a discretionary bonus scheme. Bonus payments are

subject to determination of the bonus pool based on business, unit or country
performance as applicable. Individual bonuses are based on individual performance as
assessed by the immediate manager against performance factor – including
achievement of business objectives.
Bonus payments are normally made in February for the previous performance year
[January to December]. To be eligible you must have joined the Bank on before 1 st
October in the year for which the bonus is payable and still be employed and not
under notice of resignation at the normal date payment. Staff joining after 1 st October
will not be entitled to receive a bonus for that year. Staff joining before 1st October
will receive a pro-rated bonus payment for that year.
If you do not have a document Performance Assessment by the end of February,
neither you nor your manager will be eligible for consideration for a bonus payment.


Our policy is to recognize and reward an individual’s contribution which goes beyond
normal expectations but which may not be adequately covered through salary or
bonus. Examples of rewards are:
• Spot awards to recognize significant contributions to revenues &profits;
• Spot awards to recognize significant contribution to cost-reduction;
• Chairman’s award scheme.


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The chairman’s award scheme is designed to recognize outstanding achievements of
employees Group-wide and to encourage the pursuit of excellence. Award are to
recognize the full range of employees achievements whether revenue generation, cost
savings and improvements or environmental and community work.

Five awards are made annually which recognize individual or team achievements,
each with a cash prize. Individual winners or a representative of the winning team, are
invited to visit a Standard Chartered Regional office outside their home country.


Plan for People Performance

Standard Chartered recognizes that motivating people to achieve high levels of

performance in alignment with business goals is essential to gaining competitive
The Group has outlined this approach to performance planning and assessment in Plan
for People Performance. People ask your manager or HR Department for a copy of his
booklet if you don’t already have it.
The information is designed to ensure that people identify and focus on those
activities that are really important for the success of the Group. It also provides
individuals with opportunities for personal challenge growth and recognition by
ensuring that everyone contributes to their highest level and to the best of their

Performance Management Cycle

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There are three key activities in Plan for People Performance:
• objective setting
• Performance planning and tracking
• Performance Assessment

Objective Setting
Business and performance objectives are set annually and ensure that:
• Employees’ efforts are focused on key priorities:
• The work is co-coordinated with that of others:
• The employees understand exactly what is expected of them.
The employees are required to prepare and draft the annual performance objectives
for discussion and agreement with the manager. A standard form has been designed
for this purpose. Every employee should have a set of annual objectives that have
been agreed with their line manager.

Performance Planning & Tracking

Staff members and their managers meet to informally view progress against objectives
a at least once every quarter. These are called interim performance assessments. Their
purpose is to check that the objectives are still valid, to give the opportunity to revise
them if appropriate and to agree on how well staff is doing.
The employees need to access their performance against their objectives regularly, to
decide what action to take to ensure their achievement.

Performance Assessment

The performance against agreed objectives is formally assessed at the end of the
performance year during a Performance Assessment Interview with the manager. A

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performance rating is given to each employee that reflects his/her performance against
the objectives allocated.


Most people in banking service are interested in ways to advance in their present field
of work. SCB and SCG offer ways through which its employees can advance by
transfers, promotions, and reclassifications within a particular job family. This process
of advancement is called "advancing on a career ladder."

What is a Career Ladder?

A Career Ladder is a planned progression to a new job and provides another way for
employees to advance in their careers. Since the employee and the manager negotiate
the advancement to the next higher level position, there does not have to be a position
vacancy. Career Ladder progression is a two-fold process. The department must need
the higher level position, and the employee must be both interested in the higher level
job as well as demonstrate the potential to attain the skills needed to perform it
successfully. This program can provide a valuable opportunity for both employee and
organization development.


Who is Eligible?

Employee is eligible if he is a regular full or part time employee who is not on

probation. The overall rating on his most recent performance review must reflect
overall performance that "Meets Expectations" or better.

What Positions are Eligible?

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The primary criterion for advancement through a Career Ladder is whether or not
bank’s department needs someone to perform the more complex duties and
responsibilities stated in the job description for the higher classification. However,
individual Career Ladders can be developed for most jobs

Why Participate in Career Ladders?


• They can learn new skills and duties at their own pace while performing their
current duties.

• They can advance in their current position without competition.

• They can demonstrate initiative and a willingness to consider department and

organization’s goals.

• They can assume more responsibility and advance their career without moving
to a different department.


• They retain valued employees who are motivated to advance their careers.

• They can attract high quality employees.

• They maintain a work force of well-trained employees who have high morale.

• They provide more high quality products and services to their customers.

How to Initiate a Career Ladder Progression

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There are two types of Career Ladders are followed at SCB and SCG: Pre-Approved
and Individual. The Pre-Approved Career Ladders have been developed by Human
Resources. The Individual Career Ladder is used for progressions where no pre-
approved ladder exists and for unique progressions.

After the employee and his manager have agreed that a Career Ladder is appropriate,
the process is initiated by the manager. A completed Pre-Approved or Individual
Career Ladder form, containing the education, experience, distinguishing
characteristics and job responsibilities required for progression to the higher
classification is required. The manager completes and signs this form. It includes a
proposed time-line for completing the acquisition of the necessary skills or knowledge
and the proposed salary increase. The salary increase will be based on his additional
qualifications using the same criteria that would be used if the next level position had
been filled through recruitment. Pre-approved Career Ladders are developed by
Human Resources while Individual Career Ladders are developed by the manager,
and then approved by Human Resources.

A copy of the signed Career Ladder form is sent to Human Resources for approval
before the employee start the tasks listed on the form.

Pre-Approved Career Ladders

For a Pre-Approved Career Ladder, the distinguishing characteristics of the proposed

higher level classification have been analyzed, and the progression between the
existing and the proposed classifications has been approved in advance..

Individual Career Ladders

For a Career Ladder move between positions that have not been pre-approved, your
manager analyzes the progression and the distinguishing characteristics of both the
current and proposed higher classification and inserts them into a blank Individual
Career Ladder form. This form is submitted to Human Resources for approval.

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The length of time needed to complete the plan depends on:

• The time it takes the employee to attain the qualifications, knowledge, skills
and abilities required by the higher level classification. All distinguishing
characteristics must be attained before the ladder can be completed.

• The time it takes for the employee to demonstrate effectiveness in the higher
level classification.

• The time it takes the department to develop the need for the responsibilities of
the higher level classification. Generally, a Career Ladder can be expected to
take at least six months to complete.

Getting started

• First, the employees meet with the manager to discuss their interest in a Career

The Manager

• Discusses the employee's proposed Career Ladder plan in light of

departmental plans and goals.

• If the employee is eligible for a Career Ladder, and is interested in progressing

to a position on the eligible list, he completes the Pre-Approved Career Ladder
form and submit it to Human Resources.

• If there is not a Pre-Approved Career Ladder available, he considers using the

Individual Career Ladder option.

Estimating pay rate upon completion

• The salary increase is given when the Career Ladder is completed.

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• The employee's base pay is at least the minimum of the range of the higher
level classification.

• The employee pay rate increases is reviewed based on qualifications that are
related to duties and skills of the new position.

• A reasonable promotional increase is usually 10%.

• Finally review the increase in the context of other employees in similar

positions in the department.



Name Of the Employee Designations Qualification

Aalishan Zaidi Branch Manager Master in Finance
Fariha Ramadan Floor Manager MBA
Sarfaraz Hussain TSM MBA
Faisal Arshad PFC MBA
Farooq Mujahid PFC MBA
Sammar Rasool Lockers Custodian M.A.Economics
Sher Bano CRO B.A.
Shakeel CRO MBA
Farzana Shah Head Of Govt. Sec. MPA
Sajjad Bhatti Team Member (Govt. MBA
Sabtain Mustafa Team Member (Govt. M.A. English, M.A.
Sec.) Economics
Asif Habib Head of Lending Dept. MBA
Saadia Azhar Team Member MBA
(Lending Dept.)

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Shahzad Asif Team Member MCS/MCSE
Lending Dept.
Raees Ahmed Team Member M.A. Economics
(lending Dept.)
Shahab Hussain Head of BSU MCS
Sohail Nadeem BSU B.A. + Banking Courses
Agha Jaffar BSU B.A. + Oracle Certification
Bilal Ghais Malik Cashier MBA
Khurrum Butt Head of Direct Sales MBA
Sheraz Hafeez Rana Direct Sales ( team MBA
Leader )
Asmara Sarfaraz Direct Sales MBA
Qasim Khan Direct Sales MBA
Rabia Direct Sales MBA
Aamir Direct Sales MBA




2 Name
3 Reporting Job Title

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3.1 Reports Direct To Branch Sales & Service Manager
3.2 Reports Indirectly To None
3.3 Direct Reports None
3.4 Indirect Reports None
• To provide the highest level of
4 Job Purpose personalized service to the Bank's Customers.
• To maximize the sale of Personal Banking
products & services to help towards making SCB
the bank of choice for PB customers in Pakistan

• To ensure that the highest level of

customer service is provided at all times and the
customers personal banking needs are fully met in
5 Key Responsibilities a professional and competent manner.
• To maximize the sale of Bank's retail
products/services and meet specific sales targets,
agreed from time to time.
• To generate business through local sales
promotion; outdoor marketing calls on existing as
well as potential individual customers and target
groups through seminars.
• To ensure that whatever cross sell
opportunities are fully exploited in dealings with
existing and new customers.
• To maintain a high standard of appearance
of the sales location and of the sales staff.
• To fully conversant up-to-date in the PB
products and market knowledge and to have the
knowledge of the various products offered by
other divisions.
• To co-ordinate the sales efforts of other
sales staff.

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• To ensure the bank's exposure under the
PB credits portfolio assigned, remains fully
secured and meets all requirements at all times:
and proper, up-to-date, complete records and
documentations are maintained in line with the
credit policy.
• To open and update customers' accounts,
as part of service within time frames agreed from
time to time.

Key Relationships
6 (Internal & External) INTERNAL
1. Branch Sales & Service Manager
2. Manager Operations
3. Treasury Dealers
4. Retail Credit Control
5. Asset & Liability Product Managers

1. Existing and potential customers
2. Commercial Customers of the bank
3. Counterparts at other banks
4. Key officials at Local Regulatory Bodies

• Achievement of sales targets as

7 Contributes To determined in the sales plan.
• Maintenance of minimum service quality
standards at all levels.
• Close co-ordination with all other
departments to facilitate customer
transaction processing.
• Development of Marketing/Sales Plan and
Distribution Strategy.

8 Judgment/Complexit • The jobholder has to constantly apply his

y judgment negotiation skills and decision-

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making ability.
• Reviewing and approval of lending
proposals within delegated authority.
• Planning and execution of sales promotion
plans towards meeting own sales targets.
• Deciding on the right type of products to
meet the needs of individual customers.
• Providing financial/ investment advice to

Know How & • University degree preferably with a

9 Experience Banking Diploma/MBA
• Good interpersonal /communication skills.
• Knowledge and familiarity of banking
laws and exchange control regulations.
• Decision making and analytical skills.
• Strong leadership qualities.
• Strong customer service orientation.
• Sound knowledge of bank's retail
product/service and pricing strategies as
well as those of major competitors.

10 Dimensions • Varies from branch to branch

• Authority delegated by way of separate

11 Authorities delegation of authority.


On the basis of my observation at SCG, Tufail Road Branch, I have found the
employees at low level of job satisfaction.

SCB is a foreign based bank with great repute and prestige nationally as well as
internationally. Many people dream to be a part of this emerging esteem by becoming
either its customer or employee. High repute, beautiful layouts, auspicious financial

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positions and foreign label draw many potential employees with high job
expectations. But once they start their careers, some how or the other, majority of
them seem not to be satisfied with their jobs. An obvious indicator of this fact is the
tenure enjoyed by its employees. Majority of employees at SCG, Tufail Road joined
the bank one or less year ago. They are always in search of a better opportunity and
do capitalize on it as and when it arises. Three employees left the bank during my
internship training (a small period of just six weeks) as they got better offers from
other competing banks.

Contractual Hiring:

SCB follows the policy of hiring on contractual basis. Generally all the employees at
lower ranks such as CROs are appointed on one year contract and these contracts are
renewable at the expiry of the contractual period. Which means the banks can retain
the same employee without giving him the status of a permanent employee and thus
benefiting from the lower salary package. This is what the bank is actually following
and I have seen the employees working there for more than 2 years but still enjoying
the benefits a contractual hiring only. This is the area where the job dissatisfying
element creeps into the employees.

Low Job Security:

Based on my observation, one reason for this low job satisfaction was no job security
on account of recruitment on contractual basis. There seems to be no job security in
contractual recruitments as the employees are laid off at any time on short notice. Two
employees have been laid off before my eyes by serving a short notice of less than
one day. It not only discouraged the current employees but also the potential ones like
us. It created chaos and a very uncertain climate for all the employees.

Salary Package:

Contractual recruitment is also discouraging the employees as they don’t enjoy the
benefits of the permanent employees (such as high salary, allowances, perquisites,
facilities, etc. etc.).

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Strict Performance Evaluation Criteria:

Another reason seems to be the very strict procedure followed in the performance
evaluation, allocation of grades and promotions. The manager is very mean in
appreciating, encouraging and upgrading the employees. It is considered to a
tremendous achievement to achieve a grade point of “2 and above” out of total grade
score of “4”. Despite continuous and breath taking efforts the employees fail to get a
good evaluation of their performances.

Frequent Changes in Policies:

Although change is the essence of success in the modern world and an organization
that fails to implement the change at the right time loses the race of success. But we
should also not forget that excess of every thing is bad. Too frequently change in
policies leads to unrest, mental disturbance, & wastage of time and resources in
adopting the new policies. This is one of the reasons for low level of job satisfaction
observed at SCB, Tufail Road branch.

Job Timings:

Employees at SCB have a long working day which does starts at 9:00 a.m. but there is
not end limit to it. They stay at bank late at night depending on the work load and
nature of the job. Although these element exist in all other jobs, but they are paid
accordingly. At the banks, the employees have the feelings that they are paid less for
more work done by them.

Transport Facilities:

No transportation facilities have been provided by the bank and the employees face
problems in getting to the bank (as it is situated at quite a distant place from the centre
of the city).

Sales Targets:

Whether an employee is working as a teller, CRO, a locker custodian, or a lending

officer, each one has to meet specific sales targets assigned to him/her. Which means

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an element of sales personnel is present in all the jobs. One needs to have lots of
personal contacts and social sense in order to be successful in his job.

Strict Action against Mistakes:

Finally strict actions are taken against even small mistakes. The manager seems to
have forgotten that “to err is human.”

There is a saying by Crothe

“Correction does good but encouragement do more.

The most important factor in the success of an organization is its employees. It’s the
employees who make up an organization. So its very important for the management of
SCB to raise the morale and job satisfaction of its employees otherwise its financial
success may prove to be short

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Policies are needed to make a strategy work. Policies refer to specific guide lines,
methods, procedures, rules, forms, and administrative practices established to support
and encourage the work towards the stated mission. Like every organization,
SCB/SCG also follows a number of policies in order to ensure strategy
implementation with success. However before discussing these policies, I would like
to discuss the policy formulation process followed at the bank.


“Operating our businesses to the highest standards of ethical conduct is crucial to

the preservation and enhancement of bank’s reputation. Individually, and as a
Group, we must earn that reputation every day by consistently demonstrating
unquestionable integrity and good judgment in the conduct of our banking

Our Group faces a particular challenge - to uphold consistent standards of conduct

while at the same time respecting the culture and varying business customs of all
the countries in which we do business.

For these reasons, we have taken various steps over the years to develop our
compliance standards, such as issuing the Group Code of Conduct and growing a
network of compliance officers to help businesses operate to the required standards.
We now have to achieve a more fundamental goal.
The goal is to fully integrate compliance into our day to day operations, so as to
develop and enhance the culture of compliance in the Group. This is particularly
achieved by continually evaluating the compliance risk areas and successfully
managing them through comprehensive compliance training programs,

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implementation of policies and procedures and ongoing awareness program within

Demonstrating a high level of compliance will provide the necessary reassurance to

the Board, our stockholders and to our regulators. It therefore follows that
responsibility for compliance lies with every individual in each area of operation. It
is essential to our continued success that we all accept this personal responsibility
and treat compliance as a priority. This will help us to achieve our goal of a

July 2001


In the ordinary course of business the Standard Chartered Group (the Group) collects,
holds, processes and transfers personal data of its employees (current, past,
prospective and temporary employees, and their dependants).

As a first class international banking group it is vital that the Group establishes and
operates to a very high standard of data protection for personal data and for
commercial data. Failure to do so can have serious commercial and legal implications
for the Group. Clearly personal data in some contexts means personal data about
customers, but this Policy is designed for employee personal data.

This Data Protection & Privacy Policy relates to the handling and processing of all
Group employee personal data, whether held manually or electronically. It forms
an important part of the overall Group data protection environment, the other key
parts of which are

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• The Transborder Data Protection Agreement for Human Resources, by which
all entities in the Group are committed to comply where necessary with the
Group global standard of personal data protection, and

• Data Protection & Privacy Statements for Group Employees, Temporary

Employees and Job Applicants, by which the Group states to its employees the
purposes for which data will be used and the circumstances in which data will
be disclosed.

This Policy sets out the minimum global standards of conduct and procedure the
Group expects from data users in HR and other functions for the handling of
personal data wherever the Group operates.

If country HR heads consider that it is necessary to provide staff with translations of

this Policy, or of other associated documents, they may do so provided that the
translations accurately reflect the requirements of the original.

If local legislative requirements or local procedures are more stringent they must also
be complied with. Local legislation must be complied with at all times.


Who does this Policy apply to?

• All users of personal data, that is

• All entities within the Group, including all country offices and branches,
• All managers, i.e. line and business managers (and their delegates) who
use personal data,

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• Everyone in HR, and
• All employees who use personal data, whether permanent, temporary or

Failure by any of these parties to adhere to this Policy may result in civil or criminal
legal action being taken against the Group, or against individual managers or other
employees, by data protection authorities or by the individuals to whom the personal
data relates.

It is the responsibility of managers to ensure that their staff are aware of and comply
with this Policy, and willful or negligent non-adherence to this Policy by any
manager or employee is a serious disciplinary matter which could result in

If the employees have any questions about this Policy, or about data protection, they
should consult their local HR department or their Legal & Compliance department
who will provide clarification, liaising with Group specialists as necessary.

What does the Policy relate to?

The processing of employee personal data.

Processing means collecting, recording, holding, or carrying out any operation or set
of operations on the data. In fact doing anything at all with the data, including
transferring, amending, consulting, disclosing, sharing, archiving, and even destroying

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Employee means prospective, current and former employees of the Group and their
dependants, subcontracted employees, secondees, temporary and contract employees,
and voluntary workers.

Personal Data means any information at all related to employees, including their
contact details, details of their family, employment and remuneration records, medical
and absence records, expressions of opinion, appraisals, career plans, etc.

It makes no difference whether the data is in a computer database, on e-mails, or on

paper in files and desk drawers.


1. Respect for the Privacy of Employees

2. Data Protection and Privacy Laws
3. Collection and Use of Personal Data
4. Rights of the Individual
5. Sensitive Personal Data
6. Disclosure of Personal Data
7. Data Security
8. Cross Border Transfer of Personal Data
9. Automated Decisions
10. Appointment of Delegates


Although the Standard Chartered is a centralized bank but still every region follows
the policies appropriate to the culture in which it is operating. There are a few ones
followed in all the banks unanimously but most of these are area specific. At SCG,

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Tufail Road Branch, the branch meetings are held twice a month where different
policies are discussed, reviewed, introduced, reinforced and abolished. All the
employees, top level or bottom level alike, have to attend the meeting in order to have
their voice in the decisions taken at the meeting.


The Standard Chartered Bank has a strong management, which formulates
implements and evaluates different policies. Through this process they are able to
determine the most effective goal seeking objectives. These policies act as a path,
which focus the bank in the required direction. The bank is able to cope with
imbalances in the banking procedures due to these policies.

The main policies followed at Standard Chartered and Standard Chartered Grindlays
Bank is namely:

1. Financial Policies
2. Lending Policies
3. Procurement Policies
4. Service Policies
5. Human Resource Polices
6. Research & Development Policies
7. Audit Policies
8. Investment Policies
9. Money Laundering Policies
10. Security Policies
11. Social & Environmental Policies

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Financial Policies:

The financial policies of any bank are the most important policies through which
the whole banking activity is conducted. These policies are primarily conducted
• Source of funds
• Use of funds
Sources of funds:

One part of bank’s finance policy is acquiring funds from the following sources such
• Deposits received from the various account holders.
• Different type of accounts designed to meet the customers’ requirements.
• Interest income and commission by providing the services to its customer.
• Mark up/interest earned on advances and loans granted to the debtors.
• Fees, brokerage and commission from the various services provided by the
• Discount earned on specific facilities provided.
• Dividend earned from investments in other securities (shares of listed and
unlisted co.)

Uses of funds:

After the acquisition of the funds, comes the next stage i.e. the utilization of these
funds in an efficient way.

• The bank has an investment portfolio according to which it allocate its funds

 to different classes of debtors,

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 to different sectors of the economy

 investment in the securities,

 Investment in the real estate property and so and so.

Note that the banks don’t invest the whole funds raised by them as they have to
comply with certain restrictions imposed by the State Bank of Pakistan such as
• The bank has to maintain 25% of its time and demand liabilities with the SBP.
• A further 5% of its time and demand liabilities are deposited with the SBP in
order to be a member of clearing house.

1) Lending Policies:

Lending policies of the bank are composition of two different heads

• Firstly, there are some regulations to be followed by the commercial banks
while disbursing funds to various borrowers named Prudential Regulations by
State Bank of Pakistan.

• Secondly, the policies formed by the top level management regarding the
disbursement of funds in the form of loans.

The Prudential Regulations are discussed while discussing the Lending Department of
the bank in the Departments Section in detail.

The bank’s lending policy depends on the interest rates it offers, balances maintained
and repayments. The Bank follows some rules as far as lending is concerned, which
are as follows:
1. the bank conducts a complete analysis of the borrower before sanctioning
any amount.
2. The bank only invests in those sounds viable projects, which have good
rate of return.

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3. Loan is sanctioned against Govt. Securities and Bank Deposits (maintained
at any bank), Property and stores (stocks & raw materials) are not financed
4. Bank prefers to advance loan to their account holders as the bank already
knows his/her credit worthiness.
5. No political loan is sanctioned by bank.
6. The manger appraises the past record of account holder and his credit
worthiness in order to clear his apprehensions and in case any thing wrong
he can refuse to sanction the amount.
7. CBI report from SBP is the main document determining the sanction of
loan to a great extent.
8. The bank while taking security prefers Govt. securities over shares.
9. Lending against cash is done after marking lien on the amount to be lent
out (75% lending is allowed and 25% is the margin maintained by the
10. Lending against Government Securities is allowed up to 75% of the
security and 25% margin is to be maintained by the bank.

The rate that the Bank charges on loans mainly depends on the following factors:

a) Global economic prosperity

b) General conditions of the economy
c) Competition in the market.
d) The rates prevailing in the local market.
e) Taxes levied on the Bank’s products.
f) The demand and supply of funds in the market
g) Government regulations on interest rates.
h) Compensating balances or minimum balance requirements that are maintained
by the account holders in their accounts.

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i) The credit managers get a guideline as to how to proceed in identifying
profitable projects which have good creditworthiness so that more loans could
be extended to them and interest earnings could be increased.

4) Procurement policies:

Procurement policies are more relevant to a manufacturing concern. Although the

banking companies area a service organization, but they do follow some procurement

In bank industry, procurement means the procurement of funds from various sources
such as deposits. It involves attracting and holding the funds of the depositors. The
deposits, no doubt, are inputs / raw material in the banking operations. After the
acquisition of funds, the bank has to made decision regarding their usage.
Deposits Process Lending
As already mentioned in the above paragraph the major sources of funds for a bank
are the deposit and the other sources of income include interest or markup charges
received for various services offered by the bank to its clients.

A bank tries to attract maximum no. of accounts so that it can increase its deposits and
its lending ability. In order to get maximum no. of accounts the staff of the bank must
be efficient as compared to the other banks and the manager of the branches must take
personal interest in attracting deposits.

Standard Chartered spends around USD 1.0 billion annually on the procurement of
goods and services. The bank’s management recognizes that they need to manage this
expenditure from a social, ethical and environmental perspective by ensuring that
their suppliers meet their high standards for responsible behavior. To achieve this aim
social, ethical and environmental considerations have become an integral part of how
the bank evaluates and selects its suppliers.

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There are three key areas of focus for the procurement activity:


The bank expects its suppliers to have adopted and be able to demonstrate human
rights policies and records that reflect international legislation such as the UDHR
(Universal Declaration of Human Rights) and which are consistent with Standard
Chartered’s own standards. In the procurement processes, SCB aims to screen for
abuses with the intention that suppliers who perform poorly in relation to Human
Rights be excluded from doing business with the bank.


SCB claims to be a highly ethical company. So it expects its suppliers to be ethical

too. The procurement processes of the bank aim to surface ethical issues. Where
serious ethical issues are identified suppliers will be excluded from doing business
with the bank.


The procurement process of the bank is designed in such a way that it ensures all
possible steps have been taken to believe that the suppliers do not unnecessarily
impact the environment in the way they produce, consume and dispose of materials.
Where practicable the bank will favour suppliers who recycle and reuse products and
will encourage priority suppliers to improve their environmental performance. The
bank aims actively to ensure that due regard is given to each of these issues in every
managed procurement by Standard Chartered. This will be achieved by taking account
of each issue throughout the sourcing process ensuring each issue is a factor in the
supplier selection process. This should lead (wherever possible) to Standard Chartered
favouring the use of suppliers whose policies and actions demonstrate, at a minimum,

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compliance with Standard Chartered's own social, ethical and environmental
standards and policies.


The bank emphasizes on providing personalized services. The bank’s efficient and
competent staff is there to provide top class services to its customers. The service
policies followed by the bank are
• This includes 9a.m. –5p.m. nonstop banking so that the customer can come to the
bank any time it is convenient for him.
• ATM facility allows the customer to access his account after banking hours and on
holidays from any Branch of the bank.
• Evenings banking for those people whose busy schedule don’t permit them to visit
the bank in the morning.
• Phone banking allowing banking on phone anytime, anywhere.
• Online banking according to which the customer can operates his account from
any Branch of the bank in Pakistan.
• Solving the problems of the clients on the phone lines and thus saving their
precious time.
• Having the Bank Statements e-mailed ensuring privacy.
• ATM cards let availing exiting discounts across outlets forming part of Bargains
• Priority banking facility for its privileged customers (maintaining large accounts)
to provide them the best service.



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Karachi Clifton, Karachi Hill Park and Lahore New Garden Town Branches of the
bank are the Priority Banking Centres across the country. The idea behind these
Priority Centres is to make them a Model Branch for the whole banking enterprises
throughout the world.
A Customer Relationship Manager (CRM), an officer with a lot of banking
knowledge and experience (is actually a senior PFC-Personal Financial Consultant) is
there to serve the priority customers and provide them customized services.
A priority customer is that customer who opens the account
• Avg. balance of Rs. 1 million & above in their Rupee Current Account
• Avg. balance of Rs. 2 million & above in their PLS accounts
• Avg. balances of US $ 50,000 (or equivalent, in other FCY)
at the Priority Centre and gets it operated at the same branch in order to enjoy priority

The following personalized services are provided to the priority customers free of
• Issuance of Pay Orders, Drafts and T.Ts
• Issuance of Travellers Cheques
• Standing Instructions
• Stop payments of cheques
• Cancellation of DDs/Pay Orders
• Issuance of balance Confirmation Cerificate/PRCs
• Collection of cheques (LCY/FCY)
• Return of unpaid cheques
• Delivery of cheque books by courier
• Inward Remittances
• Issuance of counter cheques

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• Issuance of cheque books
• On-line banking
• Waiver of lock purchase fee on lockers issued w.e.f. 01-07-2002 to 31-12-

Call centers will be established in the future to cater for customer’s individual
Officers from other Branches also visit the priority centre so that similar services can
also be provided there. Hence the priority centres are provided services of dual nature
• General one for the general customers
• Customized one for the priority customers

6) Human Resource Policies:

These policies are concerned with the recruitment and training of staff in order to
maintain the same standards of banking services.

Standard Chartered supports the rights of the individual as expressed in the 1948
United Nations Universal Declaration of Human Rights (UDHR).
The UDHR contains a number of fundamental rights, which it aims to uphold in all
circumstances, including:
• The right to life
• The right to legal recognition as a person Freedom of thought, conscience and
• Freedom of opinion and expression
• Freedom from torture
• Freedom from cruel, inhumane or degrading treatment
• Freedom from slavery and servitude

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• Freedom from retroactive penal legislation

Standard Chartered meets all relevant international legal obligations and all relevant
local legal obligations in the countries in which it operates.

The bank is strictly apolitical and does not engage in political activity, support
political parties or have any political affiliations worldwide. It recognizes that it has
direct responsibility for the impact of its activities on its employees, suppliers,
customers and the communities in which it operates. The bank’s management works
to protect human rights in their own operations through its internal policies and
procedures. Its policies also ensure that human rights are taken into account in
procurement and lending decisions.

Human Resource Department of the bank is situated in the Head Office Karachi. The
HR policies are also formulated there. Some recruitments are directly through head
office but in some cases the relevant branch/ department has the authority to make the
selections. The policies of the Bank regarding HR are:

• Hiring fresh graduates /MBAs of prestigious institutions generally from

• Most of the recruitments are on contractual basis.
• Selection of energetic and capable employees.
• Attractive salary package for motivation of employees.
• Vacation package (of 30 days) is offered to the high grade employees once in
a year.
• Selection of PFCs on the basis of their knowledge, experience etc.
• Continuous changes are introduced in the salary package from time to time
• Recruiting experienced people for higher positions from other organizations.
• Golden Handshake for senior employees.

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• Job promotion based on bank product promotion.
• Regular training sessions conducted in and outside the country.

The Bank prefers to hire new employees on contractual basis because they perform
the same functions as the permanent employees do but at a lower pay. This is
beneficial for the Bank because less investment is made on its employees.
The bank also hires experienced employees from other organizations. By recruiting
experienced personnel the Bank is able to introduce new ideas, procedures and
methods of performing its banking functions.

The Bank offered Golden Handshake to its employees at the time of merger. The idea
behind this was that only those persons should be employed who are capable,
competent and challenging. The existing employees were interviewed at the time of
merger. The management quantified each designation and rated each employee, those
who didn’t meet the set standards were offered a golden handshake.

Now promotion is based on the employee’s ability to perform sales of the assets and
liabilities offered by the Bank. The management conducts a quarterly appraisal to
evaluate the performance of the employees. This is done to keep a regular check on
their performance and to give a healthy feedback to them. This is beneficial because if
any shortcomings in performance arise they can be removed immediately.

Some allowances that were previously offered to the employees have been
withdrawn. This was done in order to properly manage the Bank’s finances.

The Bank conducts training sessions at its main Branches. This is done so that the
employees of different branches get a chance to interact with each other. These
sessions are focused on improving employee’s service quality standards. Employees
are also given a chance to highlight any problem they are facing and raise any issues

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concerning them. The Bank employees are required to have complete knowledge of
the Prudential Regulations in order to work according to the terms and conditions of
the State Bank of Pakistan.

7) Research & Development Policies:

This policy is essential because it gives vision, insight and creativity to the Bank. We
can discuss its two aspects.
• Research and development as far as the technological progress of the bank is
concerned is conducted at its Head office, which is situated at Dubai. All the
soft wares, which are used by the Bank, are created here. This department is
concerned with updating I.T. procedures and it tries to incorporate the latest
techniques as well. Supervision of the computers, software, servers, teller
systems & signature systems all is done there.
• The Marketing Department also conducts research and develops new products.
This department conducts surveys to determine the needs and requirements of
the customers so that new products can be launched accordingly.

8) Audit Policies:

An Audit is very important since it helps to regulate the operations of the bank. The
bank conducts three audits:
(a) Regulatory Audit
(b) Group Audit
(c) Internal Audit


The State Bank of Pakistan performs the regulatory audit. This audit starts in the
month of January and it is usually conducted in the main branches of all the banks.

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The SBP checks the performance of the banks on all issues. The SBP has given
license protection to the banks and they are supposed to follow its regulations. The
auditors inspect the functions performed by the banks to check whether the policies
enforced by SBP and the procedures which have an impact on government revenue
collection, are being followed or not, such as collection of withholding tax. The
regulatory audit is applicable to all the banks.


The Standard Chartered Bank’s auditors perform the group audit. The auditors come
from the Regional Head office in United Arab Emirates or the Group’s Head Office in
London to audit the MESA region (Middle East and South Asia). The group rating
depends on the level of abidance of the group policy. The auditors rate the
performance of the different branches in the countries. The country with the best
performance is rated at the top. This audit is conducted rarely, only when the need


This audit is conducted at the National level. One representative of the management
committee is appointed to perform the audit. He further appoints a Hub Manager to
conduct the audit in his region. The Hub Manager assigns the job to a particular
Branch Manager in his region. Presently Mr. Abad Ullah (the BSSM of the Mall Road
Branch) is in change of conducting the audit in the Lahore Region. A group of
employees are selected from the different branches as auditors. Those people are
selected who have an enriched experience of the Bank’s operations. The auditor
checks the procedure of documentation and related records. This is an ongoing
process as records are scrutinized every month. At the branch level the branch
manager is held responsible for the performance of his employees. The employees are

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supposed to follow the key control standards (KCS). These standards specifically
mention the duties to be performed by them in their own capacity. The BSSM
monitors their working according to the KCS.

9) Investment Policies:

The Bank’s Treasury invests its deposits in profitable ventures. The funds, which are
not required for lending in the foreseeable future, prove to be a source of the Bank’s
investment portfolio. The Bank aims at obtaining the maximum income with the
minimum exposure to risk. The Treasury usually deals in stocks at the national and
the international level. The Treasury deals with international trading. At the national
level it invests in federal investment bonds, treasury bills, national investment units
(NIT) and Federal and Provincial loans. The whole amount of funds generated from
various sources is not invested because it is a requirement of the State Bank of
Pakistan to keep a certain percentage of funds with it as assigned capital. The
Treasury also deals in the sale and purchase of different currencies.

10) Money Laundering Policies:

Money laundering is the process by which criminals attempt to hide and disguise the
true origin and ownership of the proceeds of their criminal activities. The term
“Money Laundering” is also used in relation to the financing of terrorist activity
(where the funds may or may not originate from crime). This is a step taken to
legitimize the black money through banking channels. The Standard Chartered Group
has a policy based on dealing with this issue. The group policy states:

a) It is essential, in order to protect its reputation and to meet its legal and
regulatory obligations that the Group minimizes the risks of being used
by money launderers.

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b) The Group’s policy on the prevention of money laundering applies to
all countries in which the Group operates and to all business activities
within those countries.
c) As an organization committed to the prevention of money laundering,
they will establish clear lines of internal accountability, responsibility
and reporting. Primary responsibility for the prevention of money
laundering rests with the business, which must ensure that appropriate
internal controls are in place and operating affectively and that staff are
adequately trained.
d) The documents implement and maintain local procedures and controls,
which interpret Group Policy and the Group Standards for each
business in the context of local law and regulations.
e) Reasonable steps will be taken to verify the identity of the customers,
including the beneficial owners of corporate entities and the principals
behind customers who are acting as agents.
f) The policy should aim at establishing procedures to retain adequate
records of identification, account opening and transactions for a
minimum of five years.
g) Any transaction, whose source of funds is doubtful, should not be
h) Money laundering issues should be reported to local senior
management and Group senior management on a regular basis.
i) Create awareness on money laundering prevention and train staff

12) Security Policies:

Cameras are installed in all the Branches of the Bank covering the entire key areas
e.g. cash management, lockers and ATM. Thus in this way the activities of the Bank

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are monitored throughout the day. Guards are posted all around the clock in order to
provide security to the bank officials and for the safety of the transactions taking place
within the Bank. The use of floppies is not allowed so that no vital information of the
Bank can be leaked outside through the computer.
These steps are taken to ensure maximum possible safety and to minimize the
possibility of mishaps.

12) Social & Environmental Policies:

The Bank lays emphasis on environmental issues. It is playing its part in increasing
awareness about environmental hazards. It wants to minimize any adverse impact on
the conduct of business on the environment. Therefore, it aims at the following:
(a) Disposing off waste properly.
(b) Creating awareness amongst its customers.
(c) Conducting its business with minimum use of energy and other resources.
(d) Supporting environmental friendly organizations.

The Gulberg Branch celebrated a “Clean and Green” week in October this year. The
Bank was decorated with sceneries and plants. Customers were given seedlings to
plant in their gardens. This was done in order to create an interest for the safeguard of
the environment amongst the customers. Some of the newly established Branches of
the Bank have also taken a solid step in this direction e.g. the Defence Branch has
spent Rs. 10 lakhs to purchase and maintain a garden in the vicinity of its Branch

The above-mentioned policies highlight how much emphasis the Bank gives to the
different aspects of its operations. These policies are very important because they help
to direct the procedures and the processes followed by the Bank. The policies are the
guidelines, which are to be referred to all the time.

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Social and Environmental Risk

At Standard Chartered understanding the customers' business and responding to their

financial needs is fundamental to the way it conducts its business. As social and
environmental issues gain higher profile, the bank needs to understand how its
customers meet these challenges and the impact this has on the way they do business.

As the world's leading emerging markets bank headquartered in the UK SCB is

acutely aware of the pressure on both multinational enterprises and local emerging
markets businesses to conform to the highest international standards. It recognises its
responsibility to manage the risk associated with its lending. Many of these risks are
indirect and arise from social, ethical or environmental standards imposed on the
customers by importers of their goods. These risks have always been implicitly
recognised in reaching lending decisions but are now being explicitly identified.

The bank has revised its lending policy to ensure that it identifies its customers' social
issues and any impact they may have on the natural environment. The bank

• takes account of internationally acceptable environmental and social

standards in all applicable lending proposals, and
• includes consideration of social and environmental issues resulting
from the lending proposal in its decision making where appropriate.

This means that the will be more conscious of the way all its customers operate, their
attitude to social standards such as child labor and the impact their activities have on
the environment.

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Structural dimension provides label to describe the internal characteristics of an



There is a “pooled interdependence” in which each department is the part of the

organization and contributes to the common good of the organization but works
independently. The connection between branches is that they share financial resources
from a common pool and success of each branch contributes to the success of the

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In Standard Chartered Grindlays, division of labor is characterized by small and

specified tasks and there is written rules and procedure approved by Karachi head


Specialization is low in STGB so that the employee performs a wide range of tasks in
their jobs.


Centralization refers to the hierarchical level that has the authority to make a decision.
There is centralization in Standard Chartered Grindlays Bank almost all departments
are centralized i.e. most of the activities is centralized to management.


Work staff is highly educated and experience according to their post or job title. Staff
has both formal education and job experience. For multi skill development
management rotate the employees after time to time. Standard Chartered Grindlays
bank have larger professional staff ratio.


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Span of control is the number of employees who report to single manager or
supervisor. In Standard Chartered Grindlays bank, span of control differ from
department to department according to task and requirement.


Communication activity and frequency increases as task Varity increases. Frequent

problems require more information sharing to solve problems and ensure proper
completion of activities. The direction of communication in Standard Chartered
Grindlays bank is both horizontal and vertical. If task is highly analyzable, statically
and written forms of communication is used such as reports, memos and rules. If the
task is less analyzable information is conveyed through mails, telephone or in small


Personnel ratio in this organization is according to requirement that includes

administrative ratio, clerical ratio, and professional staff. Beside this deployment of
employees to various functions and departments takes place.


Contextual dimension characterize the whole organization.

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Size can be counted as number of employees in the organization or through total

assets or total sales. There are 21 branches of Standard Chartered Grindlays
Bank in which a large number of employees, administrative staff, clerical staff
and others are performing different functions accordingly.


It includes all the elements present outside the boundary like customer, government
suppliers and financial community. They all have a clear influence on SCGB and act
to satisfy all of them.


Standard Chartered Grindlays Bank has clear cuts goals and strategies to have an edge
on its competitors and to be a market leader and always at the top to serve.


A culture is the underlying set of key values, beliefs, understandings and norms
shared by the employees. Standard Chartered Grindlays Bank has a good corporate
culture having a touch of clan culture. It has a good family friendly environment that
pertains to ethical behavior, commitment to employees, efficiency or customer
services and they provide the glue to hold organizational members together.


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One of the principal and key output from the manpower budgeting process must be
agreed, signed-off organization charts. Not only are signed off organization charts
required by the audit technical guidelines, they also ensure that we can control the
headcount for the country (which will have been committed to through the budget
process), and also provide a basis for recruitment planning.
Line management will take responsibility for generating the organization charts.
Organization charts must:
• agree precisely with headcount figures approved in the budget;
• clearly show reporting lines, whether single or multiple;
• for each position, identify the position title, grade, name of incumbent (where
this is the case) or a vacancy and, ideally, a reference number for each position
for clarity of future discussions; - be signed off by the function head and H R
• be produced as soon as the budget (and therefore the manpower budget) is

Organization charts are not, and are not intended to be, milestones; rather they are
useful tools to allow the management to plan and control the headcount of business,
and to allow the planning of recruitment. They must be working documents, and as
and when changes to the structure are agreed, and/ort changes to headcount are
approved, they should be updated accordingly.


We are all aware that the Group pays attention to overall headcount, and this
translates into a requirement for a workable headcount control process for each
country/business. Indeed, headcount budget are one of the targets against which
country and business managers are measured. As stated above, agreed organization
charts, which reflect accurately what has gone into the budget, are the single best
methods of headcount control, and should be viewed as such.

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A bank is actually called a product and services firm that are labor intensive, with
many employees needed to meet the needs of the customer. The inputs to the banking
sectors are the consumers themselves. The productive process that transforms the
inputs into outputs consists of labor, technology, information, and the like. The output
of such system is the altered state of the consumer. So the technology plays a key role
in producing quality services to its customers. Advanced technologies have been
applied with great intensity in the SCG’s routine operations in order to ensure
efficiency and quality in the services offered.

At Standard Chartered Bank Major technologies used are

• Basic Banking System (BBS)

• Internet and Intranet (Emails)
• Telecommunication
• Faxes
• Face to face medium
• Written addressed documents (memos, notes, mails)

There is information richness in this organization i.e. information capacity of data to

ensure, reinforces or alters understanding while data is the input of communication

Basic Banking System:

All the 21 branches of Standard Chartered Grindlays are on line through BBS by
which they can access any type of required data when needed and of any branch of
Pakistan. This system is very much helpful and advanced. They can access the

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required information when needed. So the technology is not craft but organic in

Internet & Intranet:

More over the information flow is also through e-mails and mails. Intranet, internal
communication system, accessible by the employees only, is not only an effective
way to share information; it is also proving to be a convenient way for the employees
of SCG to collaborate on documents and projects from different locations. Its further
benefits will be shown while discussing account opening, closing, transfer of funds,

Telecommunications & Faxes:

Telephones and fax machine is also used for urgent communication through out the
World. Fax machines are available in almost all the important departments of the bank
allowing transmission of the documents containing both text and graphics.

Face to face meeting and group meeting are held whenever required for better

The whole system is almost computerized all sort of data regarding accounts and
others documentations is also computerized.

Due to this advancement in technologies the bank structure is highly affected in a

positive way. Their productivity increases, they have an edge on its competitors, their
customers are satisfied and they can survive in this highly competitive era.

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Standard Chartered Grindlays bank tries to make advancement in its IT department
whenever needed. They try to make their system advance and up to date for the true
flow of data and information through out the branches of Pakistan. All the employees
are assigned their passwords to be online through out the working hours. It’s a sort of
internal networking. Moreover, extranet is also provided to be up to date and
informative. This all types of technologies gave the latest and modern touch to its
structure in terms of technology, departments and even to the employees.


The management style observed at the Standard Chartered Grindlays is more like an
autocratic one. Although in some departments it does give a glimpse of a democratic
style to some extent.
Autocratic Style:
The management of Standard Chartered Group believes in the centralization of
authority and unilateralism of decision making. All the work methods are dictated to
the employees limiting their participation in majority of the matters. Almost all the
decisions are taken at the head office located in Karachi and the instructions follow to
all the branches which are to work accordingly. I have observed that, at times, even
for a very trivial matter they have to wait hours for the instructions and operations of
Karachi Head Office which creates chaos and demoralizes the employees. It does give
the feeling of working in an environment with both hands tied and limited circle to
move and operate.

Democratic Style:
At SCG, there are a few departments in which democratic style of management is
being followed. The departments work in the form of teams with a team leader who
delegated authority with limitations. Any operation exceeding those limits is to be
referred back to Karachi Head Office and is to be finally executed by them. However
the team leaders are free to take decisions within the limit sanctioned to them.

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In some departments, the subordinates’ participation and involvement is encouraged
but this is not true for all the departments. For example, in the Direct Sales
Department, Khurrum Butt, the head of the department, encourages and appreciates
team participation and involvement and decisions are taken based on collective
thinking. But I didn’t get the same feeling while working in Lending Department.
Asif Habeeb, the team leader, assumes the role of more like an autocratic leader and
believes less in employee/sub-ordinate orientation. He shows more concern for the
tasks and less for the employees performing the tasks.

In short, we can say that Standard Chartered Group is highly centralized in decision
making with the limited delegation and employee participation.


There is no place without power and politics but in certain places it is in the form of
authority (legal) which dominates and rules others so is the case with Standard
Chartered Grindlays Bank, authority is more dominant rather than politics.

Power is potential ability of a single person or department to influence other person or

department to carry out orders or to do something they would not otherwise have
done. In certain cases politics became illegal while authority is due to positions .In
Standard Chartered Grindlays Bank managers have authority due to their positions or
title of the job. The subordinates have to carry out orders because they believe that
positions holders have a legitimate right to exercise authority.

In Standard Chartered Grindlays Bank authority exists along the formal chain of
command, and positions at the top of the hierarchy are vested with more formal
authority than are positions at the bottom.

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Certain rights, responsibilities and prerogatives accrue to top positions in SCGB the
subordinates through out the bank accept the legitimate right of the top managers to
set goals, make decisions and direct activities. The highest form of authority or power
is in the hands of head quarter Karachi from where final decisions are made and
obeyed by every employee of SCB no matter whatever the branch and where ever the
branch of SCB is through out the Pakistan. All types of decisions regarding any
criteria, any problem or any matter are considered by Karachi branch and the
decisions made by Karachi branch are final. More over, country manager have a clear
view and hand in every major decisions made by the authority.

Some of the legitimate power is given to the middle managers so that they can be
highly productive and initiative and it can enhance empowerment among workers. But
empowerment is very little in SCB i.e. power sharing. Power is authorized according
to positions and rank of the job.

However the political free environment of Standard Chartered Grindlays Bank

emphasizes teamwork, mutual support, freedom, motivation, independent effort and
commitment to the total organization rather than to narrow jobs or departments.

Hence, the power and politics in Standard Chartered Grindlays Bank is of

“Legitimate” type. And is use to influence subordinates to desire solutions.


The higher authority in Karachi branch does decision-making of all sorts. Decisions
making in Standard Chartered Grindlays Bank is of programmed type i e. repetitive
and well defined and Conflicts are resolved through negotiation and group meetings.

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In case on small problems the higher authorities in Karachi office solve through group
meetings and negotiation while in case of huge problems search has been made to
confirm that who is responsible for that, who is affected, when, who and how is
involved. After the identification of the problem different alternatives solutions are
invited and the higher authorities try to seek solutions and suggestions from the
subordinates. Different alternatives are evaluated and judged and they choose the best
alternative in that.

The decision making in Standard Chartered bank is highly logical and rational. Due to
centralization higher authorities make most of the decisions but in case of unclear
problems decision-making is shared to some extend with other managers.

During my internship I never observe any huge conflict in the bank but small conflicts
do occurs. Conflicts are there whenever there is more than one person so if a large
number of people are working under a single roof conflicts are there.

In case of small conflicts like difference in opinion the employees of Standard

Chartered bank try to solve them by them selves, if the situation is little worse the take
their conflict to their immediate boss and most of the conflicts solve then. But if the
situation becomes worse the case is sent to Karachi head office and action is taken
there (but this happens rare). Most of the conflicts are solved through negotiation.

The environment of the Standard Chartered bank is not always stable it changes
according to the environment out side the domain chances. So the uncertainty arises
and disputes may occur. But it will solve immediately to make the environment
certain and stable.

Moreover to avoid conflicts face-to-face meeting are held after time to time with other
departments heads and list what he or she expects from the other departments.

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Standard Chartered bank have shared mission and goals to make this bank an ideal
one, this shared goals mission and goals require cooperation among departments.

In Standard Chartered Grindlays bank there is family friendly atmosphere and all
work as a member of a single family so they have no psychological distances with in
them and conflicts are there.

They are able to customize a suite of risk management products and services as well
as package debt financing solutions to meet the unique needs of each of their
customers. Through more than 150 years of emerging market experience, their in-
depth understanding of the local market is unrivaled by most other financial
institutions, especially in the currencies of Asia, the Middle East and Africa.


• Structured risk management products to match customers' risk appetite and

• Solutions for currency, interest rate and corporate finance exposures:
- Foreign Exchange: Transaction, translation, economic exposure
- Interest Rates: Funding enhanced deposits, hedging
- Corporate Finance: arising from acquisitions disposals, CAPEX and
• Access to more than 100 onshore and offshore illiquid and restricted
• Asian Currency and G3 Currency Debt Financing capabilities
• Syndicated Loan financing
• Treasury and Fixed Income research
• On-Line Treasury trading capabilities

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Task environment of Standard Chartered Grindlays bank includes market sector,

Human resources, international sector and customers (both priority or general) they
have direct influence on the bank and that have a direct impact on the bank’s ability to
achieve its goals.

Market sector have a direct influence on the bank as the market criteria changes so is
the bank’s environment, human resources have also affect the environment domain
the bank tries to attract the highly skill and qualified personnel .The customer have its
own importance to the bank, the bank is due to its customer and is for its customer.
The international sector has also a direct influence on the bank. Like advance
technology, communications, ideas and capital investment, business strategies,
products and services flow freely and rapidly around the world. Standard Chartered
Grindlays bank has to update it self according to the environment. The customer
invests its money in the bank and the bank flourished and provides products and
services to its customer.


The general environment of the Standard Chartered Grindlays bank includes the
government, socio cultural, economic conditions, technology and financial resources

The bank regulates according to government rules and regulation and the criteria
changes whenever the government regulation or criteria changes. The economic

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conditions have a very immediate and direct influence on the bank. In inflation the
bank behaves in a different manner so is the case with deflation. Socio cultural
conditions also binds the bank to some extends the bank has to behave in a specific
manner according to the country culture and socio economic conditions.

As mention earlier technology affects an organization in many ways it may promote

an organization to superior or wrong usage may cause heavy losses to it. Whenever
the technology advancement take place the bank has to up date its technology too, to
pace with the current environment. All has to concern to financial resources so is the
Standard Chartered Grindlays bank.

Beside all this the environment of the Standard Chartered Grindlays bank is unstable
and organic in nature. They changes occurs more frequently than any other competitor

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Standard Chartered PLC follows an Adapted Marketing Mix as the marketing mix
elements are adjusted to each target market.
Marketing mix covers
1. Product & Service Mix
2. Place
3. Price
4. Promotion

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SCB follows a planned strategy in launching as well as diffusion of the products and
services. Product mix is the set of all products offered by SCB. Product mix structure
of SCB has both breadth and depth. Breadth in the sense that a no. of customized
products has been offered by the bank and depth in the sense that there is wide range
of variety & flexibility within each product offered.

• Managing Personal Needs
• Deposits
• PKR Deposits
• Current
• Saving
• Fixed
• Foreign Currency Deposits
• FE12
• FE 25
• FE 31
• Loans
• Over Draft
• Personal Loans
• Auto Loans
• Lifestyle Loans
• Personal Banking Plans
• Priority Banking
• Services

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• Phone banking
• Evening banking
• Cheque Books home delivery
• E statements
• Bargain Network
• Money link (ATM)
• Free online services
• Remittances


• Cash Management
For corporate affairs
 Account Services
 Payment Services
For financial Institutions
 Collection Services
 Asian Gateway
 Clearing Services
 Continuous Linked Settlement
• Trade Services
• Custodian Services
• Lending Services
• Structured Finance
• Electronic Banking

Managing Personal Needs

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There are three main types of accounts:
1. Saving Account
2. Current Account
3. Fixed Account
4. Foreign Currency Account

Saving Accounts
Supersave Account 01
Privilege Account 26
High Yield Account 18
Flex Account 08
Current Account
Tijarat Account 10

There are five types of saving account offered at SCB/SCG namely:
• Super save
• Flex
• High yield
• Privilege


“As Your Balance Climb, So Does Your Rate Of Return”

Standard Chartered Pak rupee saving account, Super saves, offers the dual advantages
of earning profit without sacrificing liquidity.

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A tiered rate structure automatically adjusts return relative to the balance, resulting in
higher absolute returns. This simply means, the higher the balance, the more profit
one will earn.


The profit on super save Account is calculated on the minimum balance held in the
account each month, every month for six-month periods. Which means, even if the
balance drops below the minimum requirement of PKR 25,000, it will continue to
earn profit at the lowest tier .On the other hand, the more the balance grows, the
higher he rate of return.


Based on calculations, the profit will be credited to the account on a six monthly basis
in January and July.


Anyone above 18years old with an identity card or a passport can apply with a
minimum opening deposit of PKR 25,000.

2. FLEX (The Most Used Scheme)

“Build your salary with flexibility and profits”

Flex account is the most flexible account ever for individuals who want more value
from their salaries. There is no minimum balance requirements and no penalties.

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With no transaction fees and no penalties for low balances, one can open a flex
account for as little as one wish.


Put the salary to work from the day it credited. Profit on flex will be calculated on a
daily balance basis. This means, one benefit on his/her closing balance every day of
the month and not the minimum monthly balance typical of other accounts.


Based on daily calculations, the profit one earns on his/her daily balance will be
credited to the account at the end of each month. One doesn’t have to wait for a series
of months to earn the profit.


By using ATM and phone banking facility, avoid the over-the-counter fee of Rs.50/-
per transaction (for withdrawals only).


Flex offers a first chequebook free of charge. How ever, subsequent chequebooks will
be charged Rs.10/-per leaf


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You qualify if you’re 18 years old with an identity card or a passport.

“Reap the dual advantage from a current account that works like a saving
This account is ideal for businesses and offers a dual advantage of earning profit
without sacrificing liquidity as one has full access to his/her savings at all times. A
high-yield account holder also qualifies for 24 hours banking giving day and night
access to his/her savings throughout the year-even on holidays.


A tiered rate structure automatically adjusts return relative to the balance, resulting in
higher absolute returns. Which simply means, the higher the balance, the more will be
the profit.


The profit on high yield account will be calculated on a daily basis. Which means,
benefit on the closing balance every day of the month for as, long as the account is


Based on daily calculations, the profit one earns on the daily balance will be credited
to ones account at the end of each month.


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High yield offer an unlimited transaction facility without any charges. So there is no
limit on the number of transactions one make. And no charges will be levied even if
the balance falls bellow PKR 500,000.


Anyone above 18years old with an identity card or a passport can apply with a
minimum opening deposit of PKR 500,000.

“The king of accounts offers you liquidity and growth at the highest rank”.
Ideal for the individuals, Standard Chartered Privilege Account offers the dual
advantage of earning profits without sacrificing liquidity. It’s an account tailored to
the customer’s status and financial position. In other words, it matches with the
financial status of the customer.


A tiered rate structure automatically adjusts the return relative to the balance, resulting
in higher absolute returns. Which simply means, the higher the balance, the more will
be the profit.


The profit on Privilege Account will be calculated on the minimum balance held in
the account each month. Which means, even if one balance goes below 500,000.the
profit will be calculated at the lowest tier rate for that month.


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Based on daily calculations, the profit one earn on his/her daily balance will be
credited to the account at the end of each month.


Privilege Account offers an unlimited transaction facility without any charges. So

there is no limit on the number of transactions one make. And no charges will be
levied even if the balance falls bellow PKR 500,000.


Anyone above 18years old with an identity card or a passport can apply with a
minimum opening deposit of PKR 500,000.

There is presently only one current account named
• Tijarat

“Access your business and trade account from 21 online branches, countrywide.”

Variety in the product line provides surety of the success of the enterprise. Standard
Chartered new current account, Tijarat, a customized product, is ideal way to support
the business. With so many services especially packaged for convenience, security
and flexibility of businessmen, Tijarat ensures that the success of their businesses is
its business.


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Understanding the value of the time, Tijarat is the only account that’s operational at
the time of account opening. So one can literally begin transacting right away.

To ensure immediate usage, the “welcome Pack” contains a cheque book, ATM card
and PIN (Personal Identification Number), TIN (Telephone Identification number),
cash and cheque deposits slips at the time of account opening. So one doesn’t need for
days to receive the financial collateral.


Tijarat is ideal for people engaged in business including sole proprietors, retailers,
wholesalers, distributors who qualify if they are 18 years old or above with an ID card
or a Passport.


Tijarat is opened and ready for business with a minimum balance requirements of
PKR 200,000/- on a current account basis.


As an incentive, Tijarat also waives the processing fee for auto loan.

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Tijarat automatically issues a free ATM card (with no annual fees and the highest
withdrawal limit of PKR50, 000) to access funds 24 hours a day, 7 days a week, 365
days a year.



All the accounts, current and saving alike, qualify foe\r a free a free ATM card
allowing access to funds round the clock through its nationwide ATM network.

MNET-a collaboration with MCB has opened new avenues of greater convenience
and accessibility for its customers. Now the customers can have access over 100
additional 24 hour ATMs, 356 days a year, around Pakistan. MCB ATMs bearing the
MNET, has made it easier, convenient, and simpler to withdraw cash and check the
account balances.

A free ATM card also lets to avail exciting discounts across the favorite outlets in
Karachi, Lahore and Islamabad as part of its bargains network.


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Online connectivity ensures access to the accounts from across Pakistan. 21 online
branches from the largest foreign banking network in Pakistan gives access to its
world class product and service portfolio which includes checking accounts and term
deposits, lockers facilities, credit facilities, auto and personal loans. One can enjoy
online transactions of up to RS.1 million without any charges.


One doesn’t have to wait to visit the branch or stand inline. With most banking
services at fingertips, the bank is only one call away.

• Taxes and Zakat are applicable according to the government of Pakistan’s
• Bank charges and fees are levied according to the bank’s schedule of charges.
• Out of pocket expenses are collected for all banking services and otherwise
covered by the schedule.
• Charges may be collected in Pak Rupee or Foreign Currency in all categories.
• Courier charges and postage charges are also recovered.
• Correspondent bank charges are recovered at actual.
• Charges relating to corporate customers may differ as a result of an agreement
between the concerned customer and the bank.

Currently SCB is offering only one account under this head
• Term Deposits

“Take home attractive returns short term, long term, all terms, your terms”

Courageous, International, Responsible, Creative…

SCB’s term deposit ensures flexibility and suitable profit payment plan.

With a perfect match of regular income and attractive returns, Standard Chartered Pak
rupee term deposits are 7 days, 14 days, 1 month, 3 months, 6 months (conventional),
and 1,2, 3 years conventional tenors.

Tiered rates have been structured in such a way that higher balances offer higher
expected profits carving its way to a perfect balance.


Anyone above 18 years old with an identity card or passport and a minimum opening
deposit of PKR 200,000 for all tenors, can open a rupee term and high return on such
low balances.

Funds can be deposited by cheques, cash notes, remittances and/or transfers from
other accounts.

There is an option of earning profit monthly, quarterly, six monthly, annually or to
simply receive a lump sum amount at maturity and can be paid out in PKR
transactional account for easy access.


An Automatic Roller Option is provided by the bank where the balance of the rupee
term deposit is automatically renewed ensuring continual hold of deposit with the
bank as long as one wants without the hassle of renewals or notifications to the bank.

Courageous, International, Responsible, Creative…


These are of three types:

 FE 12
 FE 25
 FE 31

FE 12
These are the foreign currency accounts which have been marked frozen from 28th
May, 1998 by Nawaz Sharif Govt. under circular No. 12.
After the Nuclear Test experiment conducted by Pakistan, Nawaz Sharif Government
on 30th June, 1998, the operation of all the foreign currency accounts were freezed in
anticipation of strict response from the outside world and resultant tremendous
increase in the demand of foreign reserves.

FE 25
Under FE Circular No. 13 dated June 2, 1999 Nawaz Govt. allowed the public to open
foreign currency accounts and facilitate to operate them whenever they want.

FE 31
These are the customer extension accounts. Afterwards Banks’ customers were given
permission to extend their account. The permission was given under circular 31 to
operate frozen circular accounts.


Courageous, International, Responsible, Creative…

Standard Chartered Bank Pakistan also offers current and savings accounts in US


• Unlimited chequing facility

• Funds from new foreign currency accounts freely remittable
• No Zakat or withholding tax deductions
• PKR overdraft facility available

SCG, Tufail Road branch deals in three types of loans namely
• Auto loans ( detail given while discussing departments)
• Personal loans
• Lifestyle loans
• Over drafts ( detail given while discussing departments)

“Time to bounce back and Spring onto life’s opportunities.”
Standard Chartered’s Personal loan provides the opportunity to cash in on boosting
the purchasing power.

The Benefits:
We know that the needs and the wants of all the people are not unanimous. SCB’s
Personal Loan, the easiest and cost effective financing, has been specially designed to
meet the individual requirements and circumstances.

Who is eligible?

Courageous, International, Responsible, Creative…

 Any one between the age of 23 and 60 years is eligible
 If salaried individual, net salary of Rs. 12000 or above
 Must have full time work experience
 Residence in Karachi, Lahore and Islamabad
 If self-employed, must have business or practice of 3 years.


A loan upto PKR 300,000 can be obtained from the bank depending upon the work
experience and the present net monthly salary.

To get a personal loan one has to simply
 submit the completed loan application
 submit the necessary documents


The loan amount sanctioned can be used for any legal purpose such as
 child’s wedding
 higher education
 home reimbursement
 the purchase of computer
In short, the borrower has complete freedom regarding the decision on how to use the

A processing fee of
 1 % of the loan amount or
 Rs. 1500

Courageous, International, Responsible, Creative…

Which ever is higher is required to be deposited once the loan application is approved
prior to the loan disbursement for covering the documentation and operational

SCB’s team takes all the efforts to reduce the time taken in loan approval and
processing so that the funds are available at the right time.

In order to make the loan repayment an easy and hassle free activity, the same account
in which the loan amount was deposited, is used to pay back in equal, monthly
installments through standing instructions.

SCB’s personal plans provide flexibility to choose a repayment period between 12
and 36 months depending on the individual earning capacity and circumstances.

Loan Amount Monthly Repayment Amount

Year 1st 2nd 3rd
50,000 4,728 2,644 1,962
100,000 9,456 5,287 3,923
150,000 14,184 7,931 5,885
200,000 18,912 10,574 7,874
250,000 23,640 13,218 9,808
300,000 28,368 15,861 11,770

Note that all these monthly repayment plans are subject to change.


Courageous, International, Responsible, Creative…

SCB’s life style loans have been specially designed to meet the standard of living
requirements of each individual. It’s the loan that ensures that the dream of a
luxurious and comfortable life is not far from being converted into the reality. With
zero percent mark up and zero percent down payments, it’s easier to enjoy the life
style of your likings.


• Master card
• Visa card (Gold & Silver)
• Photo cards


“the one to choose”
Credit cards are defined as
“An interest free loan for a specific time period with revolving facility”
There are mainly two types of credit cards which Standard Chartered bank offers,
these are
Master card
Visa classic
 Visa (Gold /Silver)
 Visa Classic
One can also avail “Photo Cards”.

Standard Chartered credit cards combine the international acceptability of VISA/

Master card with the worldwide reliability and excellent service that Standard
Chartered represents. One can use credit cards more than just making purchases. The

Courageous, International, Responsible, Creative…

Standard Chartered credit cards provide travel benefits, added securities features,
access to other Standard Chartered banking services and a Varity of entertainment

Standard Chartered credit cards are globally accepted:
Over 16.8 million establishments in 160 countries (including 10,000 in
Pakistan) around the world displaying the Master Card logo accept it.
Acceptable at 18 million establishments worldwide with 10,000 in Pakistan.

Standard Chartered Credit cards allows to with draw any mount up to 75 % of
the available credit limit assigned.
For Master Cards 456,000 ATMs with 16 ATMs in Pakistan
For VISA Cards 562,000 ATMs with 16 ATMs in Pakistan


Cash can also be withdrawn by requesting a cash advance “over-the-counter” at
• 360,000 financial institutions world wide (VISA CARD),
• 23,000 financial institutions world wide (Master Card),
including 21 Standard Chartered branches in Pakistan, or other VISA/MASTER Card
member banks in Pakistan.


Courageous, International, Responsible, Creative…

One can also avail the opportunity of Standard Chartered Visa and Master
supplementary cards .One can get up to three supplementary cards for his /her family
members above the age limit of 18 years.

Processing of the application and delivery of the credit cards generally takes 3 to 4
weeks to complete.


A well trained Customer Service team is available 24 hours a day, 365 days a year to
• Answer the queries
• Register and resolve the complaints
• Report a lost/stolen card


In case of lost of a card, all fraudulent charges are covered as soon as the reported
lost to the bank. SCB’s Credit Cards ensure complete security from loss, theft and
even bad luck.


Standard Chartered Credit cards provide the facility of switching any other credit
card’s outstanding balance to Standard Chartered credit card at the lowest market rate
of 2 % for Master Card and 2.75% per month on VISA card.

By paying a nominal amount of only 5% of the amount due or Rs. 500, whichever is
greater by the payment date, the balance can be revolved for further financing
• For Master Card, 10 days
• For Visa Card, 21 days

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• Copy of NIC
• Computerized bank statement for the last 6 months.
• If partnership firm, attach Partnership Deed/Bank Letter.
• If proprietorship, attach Bank Letter.
• If private ltd, attach Memorandum/Articles of Association/ Form A and
Financial Statements.
• If Professional, attach recognized Professional Degree/ Membership
Certificate to Professional Associations..


• Copy of NIC.
• For govt. employees, Salary Slip/proof of BPS.
• For Armed Forces, Proof of Ranks and bank statement on original bank
letter head for the last six months.
• For other salaried individuals, Salary Slip.

Note that if the Bank Statement is Typed/ Handwritten/ Photocopied, they should
1. Bank Stamp
2. Signature of the Authorised Signatory
3. Code of Authorised Signatory


• a copy of NIC is required.


Courageous, International, Responsible, Creative…

By holding the both cards at the same time, one is perfectly positioned to take monitor
and control its finances as
• Standard Chartered Visa can be used for travel, entertainment and for
those spur-of-the-moment opportunities that can add so much pleasure.
• Standard Chartered Master can be used for those pragmatic, long term
purchases giving the families the things that really brighten up the lives.


Standard Chartered Grindlays Bank
1.1. Chundigar Road
Standard Chartered Grindlays Bank
Tufail Road Branch, Cantt.
Standard Chartered Grindlays Bank
1 Diplomatic Enclave


“a better way to plan your major purchases.”


Standard Chartered master card features a low financial charge of only 2.33% per
month. A free credit up to 40 days is also available in case of retail transactions
provided that the billed amount in the monthly statement of the account is fully paid.

This card also offers a complimentary travel accident cover up to Rs.3.5 million.

Courageous, International, Responsible, Creative…

CHARGES AMOUNT Financial Charges per
Annual Fee Rs. Rs.
Basic Annual 2000 2.33%
Supplementary 750 -

Annual fee of Rs. 1000 is charged for Standard chartered and Standard Chartered
Grindlays account holders.
Standard Chartered master card is delivered through carrier service.


Putting more within reach, Standard Chartered Visa cards promises global
acceptability and empowerment of lifestyle.
Standard Chartered Visa Card has two sub cards i.e.
Visa Gold
Visa Classic

Dial ‘a’ draft:
One can also place an order for draft or other payment instructions over the
Auto Debit:
It provides the option of making the minimum or 100% payment outstanding,
as specified on the monthly bank statement, through Standard Chartered
Grindlays account
Complimentary Travel Inconvenience:

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• Coverage of Rs. 10,000 for delayed flights
• Coverage of Rs. 20,000 for lost baggage
Complimentary Travel Accident Insurance:
• For Classic Card holders, coverage of Rs. 3.5 million
• For Gold card holders, coverage of Rs. 7 million


One can get a comprehensive cover up to Rs.3.5 million on Standard Chartered master
card/ Standard Chartered visa card and Rs.7 million on Standard Chartered visa gold
card in case of an accident while traveling on any common carrier.


This plan is tailored for Standard Chartered Visa Credit card members who can enroll
and receive cash income of up to Rs.6000 for each day spent at the hospital, with out
having a medical check up at the timing of enrolling.



If the ticket is purchased on Standard Chartered Visa credit card, the inconvenience
caused by flight delays and lost baggage is reduced.
• If the flight and baggage is delayed more than 6 hours you can have
refreshments, meals etc., and charge it on the card. Charges up to Rs.10,000
can be claimed for reimbursement.
• In the event of lost of the baggage, the card can be used to buy the necessary
items in the baggage and reimbursement claim can be made up to Rs. 20,000.

Courageous, International, Responsible, Creative…

Visa cards of Standard Chartered offers great discounts through out the country. The
discounts categories are
• Jewellery
• Clothing
• Shoes & Bags
• Optical
• Restaurants
• Miscellaneous
• Gift items

Discounts are given in percents at every item accordingly.

Standard Chartered Credit cards simply travel and eliminate the need to carry cash.

As a Standard Chartered card member one can enjoy a complete range of benefits in
many prestigious hotels like


• Accommodation: 50 % discount
• Dining: 15 % discount at any restaurant
• Gourmet Shop: 10 % discount
• Health Club membership: 20 % discount
• Laundry & Dry Cleaning: 15% discount

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• Accommodation: 50 % discount
• Dining, Laundry, Cake Shop, Health Club, Rent-a-car and Beauty Parlor: 20
% discount


 Khalldia Palace Hotel (Abu Dhabi)

• Accommodation: 40% discount

• Food & Beverage: 10% discount
• Health Club: 20% discount
• Laundry: 10% discount

 Regent Four Seasons Hotel (Singapore)

o Accommodation: 50% discount


 Renaissance Hotel (Dubai)

• 50% accommodation discount (limited time span)

• Complimentary newspaper, breakfast, transfers, fruit basket on arrival

 Ramada (Dubai)

• Accommodation: 62% discount

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• Break fast: 62 % discount
• Upgrading to Deluxe room upon availability
• Complimentary transfers and welcome fruit basket
• 20% off on food & Beverage within hotel premises

 Marriot Resort & Spa (Bangkok)

• Accommodation: 40% discount

• Complimentary American Buffet breakfast, welcome drink and fruit
• Upgrade to Junior Suite on availability

Credit cards offer an exclusive 25% discount on car rental services of Europe cars in
Pakistan and abroad.


Collaboration with the Akbar Group of Companies has brought the following
privileges for the card holders namely;

A SCB’s credit card holder also has the privilege to the exclusive travel
packages offered by Akbar Group of Companies (representing more than 18
major international airlines as Swissair, Singapore Airlines, Japan Airlines,
Aitalia, Royal Jordanian, and Srilankan Airlines and so on) from time to time
and has the world largest reservation system.


Courageous, International, Responsible, Creative…

Joint venture with McDonalds in North Pakistan (Lahore).

Sole distributorship of Nike in Karachi and Lahore.

For international travelers, SCB offers Commercially Important Person (CIP) Lounge
at Karachi International Airport with
• Free Secretarial services
• Free buffet
• Internet connection
• Reading materials
• 24 hours patronage


Joining Fee Rs.500 Rs.1000
Annual Fee Rs.2000 Rs.4000
Annual Fee Rs.750 Rs.2000
Per Month 2.75% 2.75%

Joining fee for the Visa Card (gold and Classic) has been waived for Standard
Chartered and Standard Chartered Grindlays account holders.


“Enjoy Instant Recognition Where Ever You Are”

Courageous, International, Responsible, Creative…

One can have the option of covering credit card into a photo card. The color photo
digitally embedded can secure the identification.

A no. of valuable services are offered at SCG such as

“Bank on your phone anytime, anywhere.”
One doesn’t have to wait to visit the branch or stand inline. With most banking
services at fingertips, the bank is only one call away.
A TIN (Telephone Identification Number) is assigned to each account holder in order
to ensure confidentiality.

• Phone banking ensures getting to the bank without leaving for the bank.
• It allows an easy, hassle free access to the account without wasting the
valuable time and energy of the customer.
• All the simple account inquiries are handled by the trained and efficient staff
on the phone.
• Currently available in three major cities of Pakistan: Lahore, Karachi and
• The following services are available on the phone:
 Checking the latest account balance
 Getting an update of the last 5 transactions
 Placing a request for a cheque book
 Requesting the mail or fax of a statement
 Transferring funds from one account to another provided the
master number is the same

Courageous, International, Responsible, Creative…

 Changing TIN (Telephone Identification Number)

Standard Chartered banking has broken the orthodox nutshells and now the branches
are open for customer dealings from 9 A.M. till 5 P.M. Evening banking has brought
convenience for those who find it difficult to get free time in the morning to visit the


In the modern era when every one is in haste and busy, Standard Chartered‘s home
delivery of cheque books is the right facility at the right time. One doesn’t need to
visit the bank personally in order to collect the cheque book.

“Have your bank statement mailed to you-anywhere and everywhere.”
• Any person having an e-mail address can have his e-statement mailed by the
bank resulting in minimum paper work and maximum convenience.
• No charges are debited by the bank for this service.
• One can have the privilege of getting e-statements delivered at as many e-mail
addresses as one likes.
• It ensures confidentiality and security as the others will not be having any
access to the bank statement which seems to be a major concern for certain
account holders.
• Frequency of the e-statements depends on the instructions given by the
customer in the application form.

“Get discount with your atm card as you shop throughout Pakistan.”

Courageous, International, Responsible, Creative…

• ATM card also lets to avail exciting discounts across the favorite outlets in
Karachi, Lahore and Islamabad as part of its bargains network.
• As a Standard Chartered Customer, a maximum discount of 25% is available
on the selected outlets.
• Discount is available on all types of products ranging from boutiques to
hospitals and so on.
• To avail the unfair advantage, one has to just present his/her Priority or
Moneylink Card as a proof of being a SCB’s customer.
• SCB continues to upgrade the list of approved outlets from time to time
• Any favorite outlet of the customer can also be included in the bargain
network upon recommendation by him.

“Get super-convenient complete banking in the time it takes a red light to turn
Standard Chartered’s ATM’s network, with over 150, 24 hours ATMs, provide super
convenient banking to its account holders.
Standard Chartered Group ATM bearing the MNET sign provide the following
facilities to its account holders:

Cash can be withdrawn from both the Standard Chartered and the MNET ATM
Network in the country, 24 hours a day, 365 days a year subject to the maximum
withdrawal limit. However this limit can be extended depending on individual


Cash and cheque deposits can be made at any Standard Chartered 24 hours ATM
across the country.

Courageous, International, Responsible, Creative…

A mini-statement showing the last 10 transactions is also available at the Standard
Chartered ATMs.


A cheque book request can be placed by pushing just button and the bank will provide
it within 3 working days.

Use the deposit envelops as an electronic mailbox to issue written instructions to the
bank regarding any of accounts.

Funds transfer is also available from one account to another account in the same
branch with the full control of cash flows.

The PIN assigned for each current and saving account can be changed at any time if
the holder feels that it is no more secure.

MNET-collaboration with MCB has opened new avenues of greater convenience and
accessibility for its customers. Now the customers can have the access to over 150
additional 24 hour ATMs, 356 days a year, around Pakistan. MCB ATMs bearing the
MNET has made it easier, convenient, and simpler to withdraw cash and check the
account balances.

Courageous, International, Responsible, Creative…

Online connectivity ensures access to the accounts from across Pakistan. 21 online
branches from the largest foreign banking network in Pakistan gives access to its
world class product and service portfolio which includes checking accounts and term
deposits, lockers facilities, credit facilities, auto and personal loans. One can enjoy
online transactions of up to RS.1 million without any charges.

From 1st July 2002 to 31st December 2002


Tiers 6 monthly APR
0-24,999 0.01 0.01
25K-99,999 0.03 0.0302

100K-499,999 0.04 0.0404

500K-4,999,999 0.045 0.0455
5,000k+ 0.055 0.0558
Account opening requirement Rs. 25,000
Profit calculated on minimum Monthly Balance
No upper limit for profit calculation

Tiers monthly APR

0-4999,999 0.01 0.01

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500K-999,999 0.045 0.0459
1,000K+ 0.055 0.0564
Account opening requirement Rs. 500,000
Profit calculated on minimum Monthly Balance
No upper limit for profit calculation

High Yield Savings

Tiers monthly APR

0-499,999 0.50% 0.005

500K-999,999 3.50% 0.0356

1000K-2,999,999 4.50% 0.0459

3000K+ 5.00% 0.0512

Account opening requirement Rs. 500,000

Profit calculated on Daily Balance
No upper limit for profit calculation

Staff Account
No minimum balance requirement
Profit calculated on Daily Balance

Flex Account
Rate Monthly 2.0%
No minimum balance requirement
Profit calculated on Daily Balance
No product for salaried persons


Courageous, International, Responsible, Creative…

7 days
Tiers Rates APR

200K-<2000K 2.50% 2.53%
2000K-25000K 3.00% 3.04%
14 Days
Tiers Maturity APR

200K-<2000K 3.0% 3.04%

2000K-25000K 3.5% 3.56%

Tiers Maturity APR
200K-<2000K 4.0% 4.07%
2000K-25000K 4.50% 4.59%

3 Months
Tiers Maturity APR

monthly quarterly

200K-<5000K 5.15% 5.30% 5.41%

5000K-10000K 5.25% 5.40% 5.51%

10,000K-25,000K 5.30% 5.50% 5.61%

Special 3 Months TD
Tiers Maturity APR

200K-<5000K 5.30% 5.41%

5000K-<10000K 5.40% 5.51%

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10,000K-25,000K 5.50% 5.61%

6 Months (conventional)
Tiers Maturity APR

monthly quarterly 6 monthly

200K-<2000K 5.40% 5.45% 5.55% 5.63%

2000K-25000K 5.45% 5.50% 5.60% 5.68%

1 Year (conventional)
Tiers monthly quarterly 6 monthly annually

200K-<2000K 5.55% 5.60% 5.65% 5.75%

2000K-25000K 6.05% 6.10% 6.15% 6.25%

2 Year (conventional)
Tiers monthly quarterly 6 monthly annually maturity

200K-<2000K 6.15% 6.20% 6.25% 6.30% 6.50%

2000K-25000K 6.60% 6.65% 6.70% 6.75% 7.00%

3 Years (conventional)
Tiers monthly quarterly 6 monthly annually maturity

200K-<2000K 6.55% 6.60% 6.65% 6.78% 7.25%

2000K-25000K 7.00% 7.05% 7.10% 7.22% 7.25%


1. System support not available for 7 days TDs
2. System support not available for 14 days TDs
3. Bank does not offers Call/Notice Deposits
4. Minimum Threshold for opening a term deposit with the bank is PKR 200,000

Courageous, International, Responsible, Creative…

5. As apparent from the above tables, specific rates have been generated for the
amounts below or equal to PKR 25 million. For amounts above this limit,
Treasury determines the applicable rates.
6. Penalty for premature withdrawal is computed as
For Conventional Deposits:
completed tenor rate – 2% for the number of days completed
For Cluster Deposits:
completed tenor rate – 3% for the number of days completed
7. Term Deposits of less than PKR 200,000 are rolled over from 5/7/2001
onwards over at the lower tier (200K to <2000K) rates.
8. Fresh bookings in clusters are not allowed but the Existing Clusters are rolled
over after the prior approval of Country Distribution Manager.


Tier FE25 Frozen
10,000+ 0.50% 0.00%
Minimum balance requirement: USD 10,000
Term Deposit
Term 1 Month 3 Months
Nature FE25 FE25
10,000+ 0.50% 0.50%
Minimum balance requirement: USD 10,000
Savings FE25 Frozen
10,000+ 0.00% 0.00%
Minimum balance requirement: GPB 10,000
Term deposits are not offered in GBP

Courageous, International, Responsible, Creative…

Savings FE25
10,000+ 0.00%
Minimum balance requirement: Euro 10,000
Term deposits are not offered in Euro
Savings/Current Frozen/Extension
All balances -3.00%


 The bank offers FE25 in currencies like USD, GBP and EURO only.
 No mark up is offered on all FE25 deposits except for USD deposits.
 No markup is offered o all Frozen FCY deposits.
 A negative sign with the interest rate in case of frozen end extension EUR &
JPY Deposits is indicative of the administrative cost charged for their


Standard Chartered Bank, a local international bank gives the peace of mind
that only comes when you're at one of the world's leading banks. You can
avail Standard Chartered Bank's value-added, award winning services across
21 branches in Pakistan's 8 major cities.

1. Karachi
2. Lahore
3. Faisalabad
4. Ialamabad
5. Rawalpindi
6. Sialkot
7. Peshawar

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8. Quetta

The branches marked with an asterisk (*) offer exclusive Priority Banking
Centres. Branches marked with ** show 24-hour banking with ATMs.



Karachi's Clifton* Branch
10 Khayaban-e-Roomi, Clifton
PO Box 3888, Karachi-75600
Tel 21-5867777
Fax 21-5873642

Karachi's Main Branch**

I.I. Chundrigar Road, PO Box 4896
Tel 21-2425000
Fax 21-2425772

Karachi's Hill Park* Branch

SNPA 16-A/1, Shaheed-e-Millat Road,
PO Box 20087, Karachi
Tel 21-4544900-7
Fax 21-4544187

Karachi Rashid Minhas Road**

Off-site ATM t Shell Select

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Lahore's Mall Branch
Shahrah-e-Quaid-e-Azam, The Mall,
PO Box 6, Lahore
Tel 42-7351921
Fax 42-7237407

Lahore's New Garden Town* Branch

Awami Complex, New Garden
Tel 42-5885830-7
Fax 42-5833578

Lahore Defence**
Tel. 589907-77
Fax: 5899126

Lahore Shami Road**

Off-site ATM at Shell Select

Faisalabad's Railway Road Branch
Railway Road, PO Box 20
Tel 41-619056
Fax 41-642012


Courageous, International, Responsible, Creative…

Islamabad :Saudi Pak Tower
Tel. 2876742
Fax: 2876756
UAN in Karachi, Lahore and Islamabad : 111-400-400


(Now Standard Chartered Bank from Dec. 01,2002)
Karachi Chundrigar Road**
Tel. 2412671-6
Fax: 2414944

Karachi Allama Iqbal Road

Tel. 4529193-5
Fax: 4556678

Karachi Centenary**
Tel. 4538044-5
Fax: 4538043

Karachi Clifton**
Tel. 5871891-2
Fax: 5831798

Karachi Garden Road

Tel. 7210539
Fax: 7212519

Karachi Gulshan
Tel. 4980906

Courageous, International, Responsible, Creative…

Fax: 4982239

Karachi Metropole Hotel**

Tel. 5660432
Fax: 5685403

Karachi North Nazimabad**

Off-site ATM at McDonald’s

Karachi Sheraton**
Off-site ATM located in the main body

Lahore Gulberg**
Tel. 5763453
Fax: 5877004

Lahore Tufail Road**

Tel. 6660746-8
Fax: 6660744
Tel. 261477
Fax: 260866
Tel. 2875035-9
Fax: 2824128

Courageous, International, Responsible, Creative…

Tel. 5513594
Fax: 5566703
Tel. 275665
Fax. 275367
Tel. 820911-2
Fax: 822106
UAN in Karachi, Lahore and Islamabad: 111-001-001


Authorised Dealers :

Honda Drive-in 118-C/1, Rashid Minhas Road, Karachi Tel: 21-4992832-7

Allibhai Motors 233-A, Block-2, PECHS Main Shahrah-e-Quaideen, Karachi Tel:

21-4556510-2 and 4556073

Toyota Western Motors C-38, Estate Avenue, S.I.T.E, Karachi Tel: 21-2564531-4

Honda Sharah-e-Faisal 13, Bangalore Town, Sharah-e-Faisal, Karachi Tel: 21-

4547113 and4527070-5

Toyota Southern Motors Head Ofiice: Plot No. 13, Sectoir 23 Korangi Industrial
Area, Karachi Branch Office: 118, Defence Housing Authority, Phase 1 Main

Courageous, International, Responsible, Creative…

Korangi Road, Karachi 75500 Tel: 21-5053181-6 and 4535246-9

Toyota Central Motors 3, Main Shahrah-e-Faisal, Karachi-8 Tel: 21-4532246-50

Anjum Motors 151-B, Block-2, PECHS Khaild Bin Waleed Road, Karachi Tel: 21-

Macca Motors SL 0809 Main Rashid Minhas Road Gulshan-e-Iqbal, Karachi Tel:

World Automobiles 3-A, Main Shahrah-e-Faisal Opp. Awami Markaz, Karachi Tel:

Toyota Eastern Motors 118-Rashid Minhas Road Gulshan-e-Iqbal, Karachi Tel: 21-
8114077 and 8114177

Riaz Motors 233-A, Block-2, Alibhai Center, PECHS Main Shahrah-e-Quaideen,

Karachi Tel: 21-4556132-3 and 4540018

ATM Bargain Network

1. Ahmed Medical Store 10%
2. Al Syed Creating service 20%
3. Burger Time 10%
4. Calcutta Jeweler 25%
5. Cinderella 10%
6. Classic packers 10%
7. Crescent sweets 10%

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8. Daily toys 10%
9. Eye Master 15%
10. Gift City 10%
11. Gotcha 10%
12. H.M. Ismail Jewellers 50%
13. Household Gifts 10%
14. Hunarmand 10%
15. Image Optics 10%
16. Karachi Optic 10%
17. Lights 2000 10%
18. Madras Jewel Point
19. Madras Jewelers 15 %
20. Menhas Cloth Gallery 15%
21. Modula Furniture 15%
22. Moonisali 15%
23. Nabila 10%
24. New Madras Jewellers 25%
25. Optic International 15 %
26. Prime Jewellers 15%
27. Prisma Furniture 15%
28. Rags & Riches 15%
29. Sach Creation 10%
30. Sentiments Gift Shop 10%
31. Snobiz 10%
32. Snoopy Ice Cream 10%
33. Something Fishy 15%
34. Subway 15%
35. Super Garment Store 10%
36. Tulip Beauty Parlour 25%
37. UK Chhotai 25%

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38. Vincraft 15%
39. Vouge Optic 10%
40. Walkeaza 15%
41. X Y Zit 10%


1. Al Baist Garments 20%

2. Art Craft 20%
3. Better Eyes Optics 20%
4. Classic Books 10-25%
5. Cnn Garments 20%
6. Curtain Centre 20%
7. Dulha Mahal 20%
8. Fire Collection 20%
9. Great Designer 20%
10. Huner 20%
11. Karigarth Collection 20%
12. Lahore Leather Club 20%
13. Look N Took 20%
14. Mak Shoes 20%
15. Men’s World 15%
16. Miss New 20%
17. Mumtaz Jewellers 20% (making & stones)
18. Nabila 10%
19. Pakistan Leather House 20%
20. Pilot Hotel And Catering 20%
21. Poshak Mahal 20%
22. Shoes N Boot 20%

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23. Silver Fabrics & Tailors 20%
24. Silver Dolly 20%
25. Stylish Fabrics & Tailors 20%
26. Tayyaba Cloth House 20%
27. TR Garments 20%
28. Valentine’s Shop 20%
1. Chateau Royal 20%
2. Cross Streak Clothing 10%
3. D & L Fashion Mall 15%
4. Dental Clinic 40%
5. Dragon Clinic 15%
6. Fedral Motors 15%
7. Foot Locker 20%
8. Ferozesons 10%
9. Furniture Hut 20%
10. Guess Store 20%
11. Jiqson Showroom 10%
12. Kids & Mummies 15%
13. Masood Optics 15%
14. Missoni Boutique 10%
15. Movie 2000 15%
16. Occasions 20%
17. Pak Persian Carpets 20%
18. Progressive Photographics 15%
19. Raja Silk 15%
20. Reach Garments 20%
21. Red Onion 20%
22. Sam Computers 20%

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23. Scandals 15%
24. Subway 10%
25. Tanweer Optical 20%
26. Vision Optik 20%
27. Wazir Tailors 20%
28. Shalimar Hotel 50%
29. Wee Care Interiors 15%
30. Xingzhu Restaurant 15%

Standard Chartered Bank promote its products through various medias, different ads
are made to promote new products and to introduce different packages offered on
different occasions Moreover billboards on public places are upright, in newspapers
different printed ads were published from time to time and the same case with the
electronic media, ads are given on highly favorite and. famous channels of the media
to attract the customer through out the world.

Standard Chartered Bank has many ways to promote its product and services. Some of
the common promotional strategies are:
 Sales Promotion
 Public Relations
 Personal Selling
 Direct Marketing

Advertisement is used by the bank to build up a long term image and to trigger quick
sales of the products and services it offers and the Media used includes both

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o Print Media
o Electronic Media

The Bank follows the policy of aggressive marketing of its products in order to
convert the potential customer into the loyal customers of the bank and advertisement
is the one which is the most effective as it efficiently reaches geographically dispersed
customers. The management takes all possible steps to keep its customers in touch
with the developments taking place in & outside the branches in the form of new
products, innovative services, and attractive offerings. The Bank resorts to various
means of promotion of its products and services such as:
(a) Website
(b) Advertorials ( Print Adds)
(c) Television
 Infomercials
 sponsorship
i. Young Entrepreneurs of the world telecasted by BBC World
ii. Documentaries sponsored on the National Geographic Channel
(d) Newspapers
 Hajj & Umrah Scheme
(e) Magazines
(f) Billboards & Hoardings
 Placed at the major commercial areas of the city such as Defence, Jail
Road, Upper Mall etc.

Sales promotion tools showing the incentive and benefits for the customers are also
used by the bank on timely basis. The schemes such as
 Free services such as phone banking, e-statements etc.
 Discounts offered at the qualified outlets for being a part of SCB

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 Special service offered at Shell Petrol Pumps (Outlet Boxes to pay off
the utilities bills of SCB’s customers..)

 SCB believes in maintaining good public relations and positive
publicity as it helps in reaching out for the prospects who prefer to
avoid sales people and advertisement.
 Publications, events, news, speeches and public-service activities are
use from time to time.
Sponsorships such as organizing a walk in support of pure and clean
environment are the tactics which help in building up strong public
 Children’s day at Wonderland on 19th May, 2002 sponsored by SCB

SCB adopts the personal selling tools for building up the buyer preferences,
conviction and action (generally the last stage of the buying process).
 Sales representatives are trained in developing personal relations with
the prospects and ultimately converting them into the loyal customers.
They have customers’ best interests at heart. Some other tactics are
 Brochures are presented to various visitors to the bank
 Call Centers have been established to provide information and satisfy

 Promotional Letters mailed to potential and existing customers the
Bank’s products.
 Telemarketing to potential and existing customers.

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 Internet marketing

Besides this the Marketing Department of the Bank performs a very vital job. It
dispatches its sales representatives in the market to promote itself and introduce a new
clientage to the Bank. These sales representatives are given targets to meet over a
specified time period. An added advantage of this process is that the bank gets direct
feedback from its customers as well since these sales personnel also contact existing
Apart from the sales representatives, the bank’s internees also play a major role in
promoting the bank’s credibility. The internees placed in the Direct Sale Department
of the bank are kept busy in conducting surveys and preparing their research report on
the basis of their integrated survey results. They visit major commercial areas across
the city getting the views of the people regarding the products it is launching, the
services it is providing, the facilities it is offering and the contribution it is paying in
the uplift of the economy and common man as well. Not only they get feed back about
its current performance but also what the general public aspires to be in the future.
The information such as
 the product lacking in the current product mix offered by the bank
 the updation required in the existing products/services
 the defects found in the services and how to eliminate them
 the standard of customer dealing and so on.
are generated through these surveys which help in further generation, modification
and elimination of a product or service.

Thus by following these methods the Bank is able to keep the public as well as its
customers informed about its new innovations and product offerings. Since the Bank
targets the upper middle and the rich class so it has to offer such products, which are
useful to them.

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To be successful, Standard Chartered Bank follows carefully planned strategies for
managing its product & service mix.


SCB’s management pays full attention in differentiating its products in a favorable
way as it goes a long way in determining the product’s revenues.
Positioning strategy followed by SCB is always target market oriented. A number of
diverse products such as Tijarat, Supersave, Highyield, Privilege, and Flex have been
offered keeping in mind the requirements and the specifications of the potential
• Positioning In Relation to Competitors:
Differentiation is made in relation to competitors products and to the bank’s
other products. The bank keeps a close watch on the activities of the
competitors and adapts its strategies accordingly.
• Positioning by Price & Quality:
SCB is known for its high quality products and high prices. Despite placing its
products on the extreme end of Quality-Price Quantum, the revenues of the
banks have continued to increase over the years.


SCB keeps on adding similar items to an existing product line with the view of
expanding its mix. Similarly expansion is seen in the service mix. An example is of
ATM service. SCB has collaborated with MCB in the ATM service named MNET.
Similarly ATM card also lets the holder availing discounts across outlets which form
part of bargain network.


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SCB, from time to time, does follow a contraction strategy. It follows a contraction
strategy if
• This action weeds out low profits and unprofitable products.
• The bank wants to position itself on one or few core products.
SCB recently followed a product-mix contraction as it has postponed fresh bookings
in Cluster Deposits. Its most used product, FLEX, has been banned for the time being
as it became unprofitable for the bank. The reason is that the bank has got a large
number of flex deposits with smaller amounts resulting in more administration costs
as it carries no minimum balance requirement with it. In other words, Flex is no more
cost effective for the bank.


Trading up
means adding a higher-price product to the product line in order to attract a
broader market. “Prestige” offered by SCB is a good example of trading up.
Its launch has boosted up the sale of its lower-price products as well.
Trading down
means adding a lower-price product to a company’s product line. In this
regard “Flex” offers good example.

Competition is very dominant now a days and every firm is trying to have an edge on
others. Standard Chartered is aware of its competitors its competitors include CITY
BANK, ABN AMRO and others.

Standard Chartered Bank tries to satisfy its customer and keep an eye open for
improvements and innovations. The head office in Karachi makes these strategies to
compete the growing environment. It is not necessary that Standard Chartered Bank

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follow all the strategies prevailing and used by its competitors but it try to have an
innovation when there is no rustle in the competitive environment.

What the competitors try to implement Standard Chartered bank tries to implement it
in a more innovative and advanced form. All sort of competitive strategies are made
by higher authorities.


Standard Chartered Bank is both the service and product firm .Its major revenue
collection is through accounts; Loans and interest rates gain from different products.

In sales collection strategies, direct sales department is performing best to sales it

product efficiently (open accounts efficiently) which have a big part in revenue
collection. The employees of direct sales department offer visits to different
companies, businessman, wormers to have an account in this bank, mean while PFCs
(personal financial consultant) try to get revenue for this bank in the same manner but
they have an authority to open an account of a customer who even walks in for some
other purpose.


Is to develop long-term relations with their clients/customers, based on understanding
their business, selecting the most appropriate and cost effective methodologies,
accepting challenges and exceeding expectations

As with any professional service, the primary resource they offer is the experience of
their staff brings to research. Their research process utilizes a ‘participative approach’
- and work in close conjunction with Customer representatives.

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Extensive field network all across Pakistan, Integrated word and data processing.

They design research instruments, which ask the right questions using the best
methodology, such as,
 In-depth Interviews,
 One-on-One interviews,
 Telephone Interviews,
 Central Location Tests,
 Mall Intercepts,
 Mail Surveys,&
 Observation Formats.

Attitude Research --------Customer Satisfaction
Advertising Pre-&-Post Evaluation ---Corporate image studies
Concept and Product Development ---Pricing
Creative Solution Finding----------------Social marketing research
 Media Research------------------------------ Audit

Reporting of study results culminates in the development of specific marketing
recommendations. Their aim is to provide workable solutions to marketing problems
based on sound research.

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Different products are offered like auto loan, over draft, running finance, personal
loan, corporate financing and others and in this return bank charges some percent of
mark up/interest is charged which contribute to the revenue collection of this bank.

According to Berry
“The most important contribution the marketing department can make is to be
exceptionally clever in getting everyone in the organization to practice marketing.”

Policies Regarding Marketing Mix include

i. Product
ii. Pricing
iii. Place
iv. Promotion

Banks are non-manufacturing concerns which deal in those products that are highly
intangible, perishable, inseparable, variable and client based. Their products meet
• a personal need ( a saving account like High Yield)and
• a business need ( a current account like the one offered at SCB named Tijarat,
or the overdraft facility to finance the working capital requirements a

The various product policies followed at the Standard Chartered Grindlays are:
• The policy is to constantly figure out how to give the customers more for less.
• The emphasis is on the development of new, innovative and creative product
for its present as well as potential customers on timely basis.

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• Offering a rare combination of unique products and convenient services so that
a large number of potential customers could be converted into the loyalty
• Launching different product for different classes of the target market such as
business men, salaried class, corporations, widowers, pensioners and even the
government organizations.
• Capitalizing on the new opportunities emerging in the existing and emerging
• The emphasis is on the benefit the service offers rather than on the service
itself. For example the “e-statement” service emphasis is on the customer’s
convenience and easiness and not on the service itself.
• For product promotion the use of visualization technique, association, physical
presentation and documentation are used. On every brochure of Standard
Chartered Grindlays product one sees an image. For example the “High Yield”
saving account brochure shows an image of wheat plant. What does it reflects
or communicates with the customer? It instantly gives the idea that something
very rewarding, giving higher returns, a worthy investment etc. so the
customer mind instantly visualizes, associates the service with something
• In relation to product feature the bank’s emphasis is on building up an
effective brand image. In includes the whole theme more than just the brand
name. Uses of distinctive colour schemes, tangible objects, slogans etc are
being used.
• Due to intangibility of products and in the absence of physical features the
bank has to emphasize on differentiation of their offering.
• The name used by the bank also connotes the level of services it is offering to
its customers.


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• At Standard Chartered Grindlays the pricing strategies applicable are:
 One price strategy
 Flexible price strategy
• Many of the charges have been waived for Priority Customers in order to
benefit them for building up loyalty with the bank and provide them with top-
class services.
• The bank staffs at top levels have the authority to waive some charges in order
to oblige their customers.
• The banks’ employees are also offered some concession in the listed prices of
the products and services.
• Prices offered are variable and flexible depending upon the type of the


The concept of distribution channels is not limited to the distribution of physical

goods. The service organization, SCB also formulate the policies to

• Make its ideas and services available and accessible to target population.
• To establish new branches in order to reach out for the population spread out
over far distance places.
• Providing a Banking Network that provides access to world-class products
and service portfolio across Pakistan.
• To help people enjoy its services without expending unreasonable amount of
time, effort and/or money.


Promotional policies go a long way in determining the success of any organization

including the banks. As far as promotional activities are concerned, the main objective

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of the bank is to inform the existing clients and the potential customers about its new
products or modifications in the existing products and introduction of new and
innovative services.
The SCB group has adopted the Dual Adaptation (both in terms of product and
communication) promotional policy as it uses the same theme globally but adapts it
slightly to different local markets.
The Bank emphasizes on product promotion if it wants to progress in the highly
competitive market. The employees are required to promote the assets (i.e. credit
cards, personal loans etc) and liabilities (i.e. savings accounts or current accounts) of
the Bank. Each employee has a sales target to meet, which is supposed to be
accomplished in a specified time period.

The bank frequently conducts surveys in the market to know the following:
(a) What are its competitors offering?
(b) What are the requirements of target market?
(c) How are its current products performing in terms of customers’ satisfaction?

Keeping these factors in mind, the Bank launches new products in accordance with
the dynamic nature of the markets. The Bank reviews its interest rates from time to
time so that it offers the best deal to the customers. The concept behind this is to
introduce new customers and generate more deposits so that the Bank gets more
funds. More funds ultimately means more lending which is the ultimate goal behind
raising deposits and this leads to more revenues in return.
The Bank needs to continue these practices in order to increase its business circle and
to progress in the aggressive marketing environment of the banking sector.

• A huge amount of funds are allocated each year for the advertisement and
promotional activities.

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• Aggressive marketing policies are followed so as to bring more and more
people under the customers head.
• Advertising plays a vital role in retaining and strengthening the customers’
• National and religious events are also sponsored from time to time in order to
build up public relations and general image.
• New and newer ideas are generated each day by the Direct Sales department to
attract the potential customers.
• Various events such as organizing a walk in the support of clean environment
are held in creating positive thinking regarding the bank’s services in the local
• All the promotional policies are focused on maintaining good relations with
the customers, government, investor, local bodies, environmentalists, trade
unions and media.
• Direct contact with customers, relation with business organizations, and
community relations.
• The Bank has introduced many products for the convenience of its customers
in order to facilitate banking for them. These products include internet
banking, such as:

(i) Online banking,

(ii) e –statements

These policies can be implemented by providing the right product and service to the
customer at the right place, at the right time, at the right price. It is necessary for the
managers to keep in touch with consumers, observe their needs and develop products,
which meet their needs

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Consumer Banking Sales & Services

This department provides all sorts of products and services discussed in the Product &
Service Mix (Section of Marketing Mix). Further details are given ahead.


This department is located in Karachi Head office for the collection of outstation
cheques. The whole collection process is performed by there. Details given ahead
( while discussing BSU).


This department is located at the Mall Branch, Lahore. The main work vested into this
department is to conduct physical verification of the loans, specially the clean loans
against which there is no security/collateral received by the bank. Since special care is
required in disbursing clean facility, this department has been designed to deal with
this sole responsibility.

The main functions performed by this department are as follow:

• Conducts all the correspondence with the potential borrower
• Get their addresses, telephone numbers and checks their genuineness.
• Receives information about the client from outside sources.

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• Finally, make recommendation whether the loan facility should be sanctioned
or not.

Personal Loan

Personal loans have also been discussed in detail in the Product Mix (Marketing Mix
Section) of the report.


Telemarketing, as the word signifies refers to the process of marketing the products
and services on telephones. The department vested with this responsibility has been
placed at SCB, Mall Branch, Lahore. The department is responsible to call various
target customers, generally the well known businessmen and industrialists and to
convince them to take the benefits of the world class portfolio of products and
services offered at SCB.

IBG (Institutional Banking Group)

This department deals in the accounts of the banks and various financial institutions.
The whole services relating to the account opening to the operation of various
accounts of the banking and non-banking financial institutions are conducted by this


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The administration department of the bank is placed at SCB, Tufail Road branch,
Lahore assigned with the responsibility of the general administration of the bank’s

PSB (Premier Service Banking)

PSB is a specialized department of the bank located at SCB, Mall Branch, Lahore. It
has been authorized in dealing with the priority customers in the corporate sectors.
The national and multi-national corporations, with high prestige are required to be
given specialized services and this department is there to fulfill this requirement.
Special privileges and services are provided to a few priority corporations matching
with their status.

Consumer Service Unit

Consumer Service Unit is the department placed in the Head office Karachi assigned
the responsibility of all the back office operations such as
• Govt. securities,
• Credit Cards
• Operations etc.

C & IB Trade Service

Consumer and Institutional Banking Trade service deals in the services to the general
consumer and institutions such as
Export L/Cs
Export Collection/ Bills
Credit Bills Negotiated

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Import L/Cs
Trust Receipts
Shipping guarantee
In short, all the services with regard to import and exports are performed by this
department located at SCB, Mall branch, Lahore.

Consumer Banking Auto Loan

This department is located at the CB, Tufail Road, Lahore. This department provides
the loan for owing the car of ones liking by selecting the monthly payment plan
suitable for the current earing patterns of the borrower.
The further details have been provided in the section of “Departments at SCB, Tufail
Road Branch”

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The following departments are operating at Standard Chartered Bank, Tufail Road
branch, Lahore.
• Sales & Service Department
• Lending Department
• Government Securities
• Auto Loans


The Sales & Service department of the bank performs the following functions
categorized in the following heads;
• Account Opening Process
• Banking Service Unit
• Cash Department
• Lockers
• Direct Sales


This department located at Head Office Karachi performs all the work necessary for
opening of accounts. All the account opening forms, scanned or unscanned are mailed
to this department from all 21 online branches for opening of various accounts for
different categories of the customers such as individual, sole proprietorships,
partnerships and Joint stock companies. All the accounts are opened and maintained at
head office Karachi. All the information has to send to Karachi on daily basis.

Account opening documents are further classified into two categories

1. Account Opening Documents-Urgent

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are scanned by making files and then mailed before 4:00 p.m. to
Karachi where the new account is activated in less than 24 hours.
2. Account Opening Document-Normal
are sent unscanned by TCS and it generally takes 24 hours or more in
activating the new account.
Till the opening and activation of the new account, the amount deposited, if any, in
the account is kept in the suspense account.
For opening an account, it’s beneficial for the customer to open the account on the 1st
of the month. If he opens the account at any time after the start of the month, no profit
will be credited to him for the time period the amount deposited till the start of next


The following forms are necessary to be filled up while opening a new account
1. Account opening Form
i. For Individual Account
ii. For Sole Proprietor Account
iii. For Partnership Account
iv. For Company Account
2. Account Opening checklist
3. Cheque Book Request
4. Know Your Customer Form
5. Specimen Signature Card
6. Phone Banking (if required)
7. Letter of indemnity from the customer who signs in language other than
English with infirm/shaky handwriting.
8. ATM Card Request (if required)


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The following conditions are necessary for opening an account at any branch of SCB;


The following information is required for opening account of any individual.
 Full name
 Joint name in case of joint account
 Telephone number/Fax number
 Occupation/employer
 Complete address
 Account opening date
 Type of account
 Currency name
 Attested copy of CZ-50 attached if Zakat not applicable
 Non-Muslim declaration submitted
 Cheque Book Required
 Clear Operating Instructions (signing authority specified in case of Joint
 PFC/ Segment/ P. Mail Codes mentioned
 Statement Frequency
 Other services /terms and Conditions signed by all the parties (Hold
 Link Account to be signed by all the account holders and signature verified
 I.D. copy /passport copy attached
 Copy of birth certificate/ B form for minor accounts

 NIC copies

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 Request letter
 NTN certificate
 (Reg.) Partner deed


 Request Letter
 NTN Certificate
 Certificate of Commencement (Public company only)
 NIC copies of all signatories
 Audited Balance Sheet of the company (for listed company only)
 List of directors
 Names of the secretary and other officers of the company
 Board resolution
 Certificate of incorporation
 Memorandum & Article of Association
The company is required to communicate in writing any change that may take place in
any or all of the information given above. These resolutions are required to be
communicated to the bank and shall constitute the Company’s Mandate to remain in
force till revoked by notice in writing to the bank signed by
o the Chairman or
o any director or
o the Secretary acting or purporting to act on the behalf of the Company


 NIC copies
 Letter of introduction
 Power of attorney

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 NTN certificate
 Proprietor declaration

 NIC copy
 Request letter
 Legal opinion
 Trust deed (reg.)
 Resolution from of Trustee / Authorized Personnel

The names and signatures of any of the following authorities must be present on the
account opening forms alongwith the signature of the branch manager:
o Personal Financial Consultants (PFC)
o Customer Relationship Manager (CRM)
o Direct Sales Assistant (DSA)
o Area Relationship Manager (ARM)


According to Pakistani law

“A person is regarded as minor who has not attained the age of 18 years.
Under section 3 of majority act, 1875, if a competent court of law appoints a guardian
of his person or property or both before age of 18 years, the majority extends to the
age of 21 years.”


The natural guardian who signs both account opening form and S.S card can open
account in the name of the minor.

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The title of the account should clearly indicate the name of the minor and guardian in
the following manner:

Special Instructions:
The guardian will continue to operate the account even if minor attains the age of

• National identity card of guardian
• Form “B” OF MINOR
• In case the guardian is appointed by the court of law then attested copy of
guardianship certificate be obtained on record.

Special care
• The age of minor should not be recorded either in account opening form or
any other document.
• In case the account has been opened under the directives of court, operations
should strictly be allowed in accordance with the clauses of guardianship
• No overdraft is allo0wed I minor’s account.


Before opening such account such persons should be informed that he/she cannot
issue cheques in favour of any other person


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Title of account
Name of account holder should be written in blocked form.

Special instructions:
Personal withdrawal

Two attested photograph to be obtained one for pasting on AOF form and other on
S.S card.

Thumb impression:
Male left hand thumb impression
Female right hand thumb impression

Special care:
• Before opening such account illiterate person should be informed that he /she
cannot issue cheques in favor of any other persons.
• It should be ensured that that illiterate person should not be allowed to operate
the account unless he/she personally comes to the branch and put his /her
thumb impression in the presence of bank officials.
• Accounts of persons signing in raw hand must also be treated as accounts of
illiterate persons.
• Accounts of illiterate “Pardah Nisheen” ladies not willing to give photograph
should not be opened.

As soon as a person opens an account with the bank, the banker customer relationship
is established. In such situation this is advisable the banker should not open new

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accounts of unknown persons unless references regarding the integrity and
responsibility of the purposed persons are obtained from respectable parties. Failure to
exercise this care may result in serious consequences not only for the banker
concerned but also for the other bankers and general public.

It is not sufficient to obtain the reference but its genuineness must also be verified.
Omission of this may have serious consequences. In practice the bank see that there is
tough competition among bankers for procurement of deposits, so to press a
prospective new customer to find the desired reference may offend him, yet he is to be
welcomed by the banker as a source of fresh deposits. But these practical difficulties
have to be handled tactfully because the risk involved carrying out this requirement
partially or wholly may lead to undesirable results.


If preliminary necessary steps mentioned above are not taken and account is opened,
it is possible that an undesirable person is provided with a cheque book to defraud
innocent people or the person being an undercharged bankrupt may put the banker in
difficult situation.


Sometimes due to misreading of the balance an account may be inadvertently
overdrawn or the credit entry of customer is placed into the account of another person
by mistake who happens to have withdrawn that all such cases the amount
can only be realized if the person is man of integrity.


The bank should conduct inquiries about the financial positions of a new customer
and the information generated as the result of these inquiries are beneficial not only
for the same bank but for any other bank who has asked the former bank about the
financial opinion regarding the same customer.

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Section 131 of negotiable instrument act, 1881 provides protection to a collecting
banker provided he collects the cheques of his customers in good faith and without
negligence. But if the banker fails to make preliminary inquiries he may be deprived
of statutory protection, being guilty of negligence.


The objective of knowing a customer is to have a fair idea about the identity, financial
resources, and general information about the customer at the time when the
relationship is established. A banker must have following information about the

Customer Name :
The documents should contain complete name as mentioned in original ID card /other
business documents.

Nature of business /profession:

In case the customer is of salaried person, enter his/her employer’s name. If the
customer is a businessman, enter the business name.

Enter the complete business/residential address. Prominent address identification
marks can also be used for ease of physically locating the address.

Contact Numbers:
Enter home, official, mobile, fax number and e-mail address (if available). Bank can
verify the number by giving the customer a courtesy call or by sending him a e-mail.

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Other/ secondary/ mailing address:
Some customer may volunteer their parents or siblings’ addressor second home
address or a mailing address other than a permanent address.

Special instructions:
Clear-cut special instructions must be obtained from customers. If the customer has
not given any special instruction specified column must be cancelled by drawing a
line, as this column must not be left blank in any circumstances.

Existing/other bankers:
Almost most all the bankers usually have a banking relationship with another bank. In
case of customer who does not have an existing banking relationship, or does not want
to disclose the existing relationship, then it is strongly recommended that at least for
some time this particular account must be kept under observation.

Refer reject:
Customer’s instruction Neither a debit nor a credit.

Convertible Account:
Those accounts held in PKR currency from which demand drafts or pay orders can be
issued in dollars are called convertible accounts.

For having this facility, a requirement of minimum PKR 20 million in the current
account so that the bank can also take the benefit of larger deposits and further
lending. Usually this facility is provided to NGOs as they enjoy special rights.

Other functions performed by this department are
• Provision of Bank Statement

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• Provision of Balance Certificates
• Closure of the accounts
• Amendments in the existing accounts
• Processing Transfer of Funds from one account to the other
• Preparation of reports for the management
• Providing guidance for the customer
• Processing stop payment instructions
• Solving various queries of the customer


They most common functions of BSU are

 Collection
 Clearing
 Internal Transfers (Inputs & Outputs)
 Draft (Printing)
 Pay Orders
 Scanning
 Cheque Books Issuances
 Stop Payments Instructions
 Standing Order Instructions
 Traveler Cheque Issuance

These are the cheques that are drawn on the branches of other banks outside Lahore.
These cheques are sent for collection.

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Following procedure must be adopted for collecting these outstation cheques::
• Collection stamp
• Crossing stamp to make the cheque property of SCB.
• Stamp of “Payee account will be credited” on the backside of the cheques
• Received stamp on the Deposit Slip

For collection we should consider some points i.e.

• Cheque should not be postdated
• Account number and title of account should match
• Amount in figures and words should match

While collecting a cheque for its customers, the bank may come across two different
situations. First situation is that in which there is cheque drawn on a branch of some
other bank located in the cities where there is no branch of SCB while second
situation is of cheque of the cities where there is a branch of SCB.


This is the first situation that might arise in case of collection cheques.

Step # 1
All the collection cheques are properly stamped and verified as discussed above.
Step # 2:
The collection cheques are mailed to CMO (Cash Management Operations)
department located at Head Office, Karachi.

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Collection Cheques Sent to
Tufail Head office, Karachi Karachi
Road Branch

NBP Branch located in Sent to

the area specified in
the cheque where it is
presented in local

If the Cheque is dishonoured If the cheque is


Returned Back to Credit SCB and

SCB Debit the respected
Karachi Branch Bank on which the
cheque is drawn

Returned Back to Credit the

SCB depositor’s account
Tufail Road

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Step # 3:
From there all the collection cheques are sent to National Bank of Pakistan
(NBP) in that certain city. NBP acts as a correspondent bank on the behalf of
SCB. The bank is required to pay certain commission to NBP.i.e.0.30% of the
amount of the cheques collected on behalf of SCB.
Step # 4:
NBP performs the same function as is required to be performed in case of
clearing of the cheques. Clearing process is discussed ahead.
Step # 5:
If the cheque deposited for collection is honored, NBP will credit SCB with
the same amount after deducting its commission charges. In case of
dishonouring of the cheque, NBP will sent the cheque back to SCB for further
Step # 6:
In case of honoring of the cheque, SCB will credit the amount in the favour of
the depositor. If the cheque is returned dishonor then no credit entry is passed
in the favour of the customer. Customer account will be credited after
confirmation of clearing.


This is the second situation that might arise in case of collection of cheques.

Step # 1:
All the collection cheques are properly stamped and verified as discussed
Step # 2:

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The collection cheques are mailed to COU (Cash Operations Unit) department
located at Head Office, Karachi.
Step # 3:
This is the final step in which SCB, Head office, Karachi performs the work of
clearing discussed ahead

Collection Cheques sent

Tufail To Head office, Karachi Karachi
Road Branch

SCB branch located in Sent to

the area specified in
the cheque where it
presents the cheque in
local clearing

If the Cheque is dishonoured If the cheque is


Returned Back to
SCB Credit the
Karachi Branch depositor’s account

Returned Back to
Tufail Road
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Step # 4:
In case of honoring of the cheque, SCB will credit the amount in the favour of
the depositor. If the cheque is returned dishonor then no credit entry is passed
in the favour of the customer. Customer account will be credited after
confirmation of clearing


Cheque should not be post dated or out dared in any transaction. Cheque is valid only
for six months. Bank should not honor post dated due to certain reasons i.e.
• There may be possibility that balance become nil on that date
• May be customer stops the cheque
• May be the customer become deceased and the account of deceased person
cannot be operated without instructions from the court.

“ A system by which banks exchange cheques and other negotiable instruments drawn
on each other within a specific area and thereby secure payment for their clients
through the Clearing House at specified time” in an efficient way.

Inward Clearing
The cheques received from the representatives of other banks for payment are called
inward clearing.

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Outward Clearing
The cheques delivered to the representatives of other banks for clearing are outward


SCB, Tufail Road sends those cheques for clearing, which are drawn on the branches
located in Lahore and are to be presented for the local clearing.


Certain points are checked in clearing. These are as under:

• Check the account number and title of account in which the account is to be
• Make sure that the amount in figures and words are same.
• Cheque is not post dated
• Signature of the drawer appears on the face of the instrument.
• Instrument is not mutilated.
• There should not be any material alteration, if so, it should be properly
• If order instrument suitably indorsed and the last endorsee’s account being
• Endorsement is in accordance with the crossing if any.
• The amount of the instrument is same as mentioned on the paying-in-slip and
• The title of the account on the paying-in-slip is that of payee or endorsee (with
the exception of bearer cheque).

An instrument is in order if;

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• Clearing stamp is affixed on the face of the instruments and should be clear.
• Pay-in-slip and counterfoil (The receiving stamp is affixed in such a manner
that half appears on counterfoil and paying-in-slip).
• Pay-in-slip should be properly stamped
• The instrument is stamped “Payees A/C only” at the back.
• Payee’s account credited on the back side of the cheque.
• The instrument along with pay-in-slip is retained by the bank.
• The counterfoil is given to the customer duly signed.

A list of the cheques presented for clearing is presented and all the cheques launched
in the clearing are sent to SCB, Mall Branch on the same date. On the very next day
these cheques are sent to State bank’s department called NIFT. NIFT make the
clearance of cheque. The whole clearing process is performed there.

In case the cheque is honoured, the Mall branch credits the customer’s account. In
case of return of the cheque due to any reason the cheque is returned to SCB, Tufail
Road branch. The entry of the instrument returned unpaid is made in Cheques
returned Register. If the instrument is not to be presented again in clearing then a
covering memo is prepared. The covering memo along with returned instrument and
objection memo is sent to the customer who sent the same to his account.

A bearer cheque does not require any discharge. Similarly an instrument in favor SCB
need not be launched in the local clearing.


The inward clearing process of the cheques is performed by the Mall branch only and
the drawer’s account is credited by the same branch. SCB, tufail road branch has
nothing to do with the inward clearing of the cheques.

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Outward cheques returned unpaid:
These are the cheque returned unpaid by us in inward clearing due to some objections.

Inward cheques retained unpaid:

These are the cheques retained unpaid which were lodged by SCB in Outward

Return of cheques after clearing house:

Suppose all cheques received in the inward clearing are passed and later on it is found
that a cheque should have been returned, in such cases, we contact the collecting
branch and request them not to make payment against the proceeds of the cheque
which was not returned unpaid by us in due time. The cheque with objection memo
along with a covering letter is sent to the collecting branch, making request to issue a
payment order in SCB favour.

It is a place where representatives of all banks sit together and interchange their
claims against each other with the help of controlling staff of State Bank of Pakistan.
Where there is no branch of State Bank of Pakistan, the designated branch of National
Bank of Pakistan act as controlling member instead of State Bank of Pakistan

Rules and regulations of Clearing House:

• Timing: Monday through Saturday
i. 1st Clearing at 10:00 a.m.
ii. 2nd Clearing at 2.30 p.m.

• Each bank will send competent representative to exchange the cheques.

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• Each bank is required to insure that all cheques and other negotiable
instruments are properly stamped and suitably discharged
• An objection memo must accompany each and every cheque when return
unpaid duly initialed.
• Each bank is required to maintain sufficient funds in the principal account
with SBP to meet the payment obligations.
• The State Bank of Pakistan debit the account of each member of the clearing
house with the proportionate working expenses incurred on the operation of
clearing house. These expenses are very nominal.

Working of Clearing House:

All the banks, which are the members of the Clearing House, maintain an account
with the State Bank of Pakistan by debit and credit to which the clearing
statements are made. If on a particular day a bank delivers cheques and other
negotiable instruments worth more than the total amount of cheques received by it
that banks account with State Bank of Pakistan will be credited with the
differential amount. If on the other hand the totals amount of cheques and other
negotiable instruments drawn on a certain bank by other banks is more than the
total amount receivable by it from other banks, then this bank’s account will be
debited on the day.

The State Bank of Pakistan maintains two major books for clearing house purpose.

House Register
In which the amount and number of cheques received and delivered by each bank is
noted down.

House Balance Book:

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In which the amount and number of cheques received and delivered by each bank as
well as the amounts which are to be received and paid to respective banks through
their accounts by State Bank of Pakistan is written down.


The clearing house works in the following manner:
1. The instruments are delivered to the respective banks.
2. The instruments drawn on our bank are received from other banks.
3. The amount and number of received of instruments are entered in the House
Book from the main schedule of respective banks.
4. The amount of instruments delivered, received and the difference is written on
a figure slip provided in the clearing house and the slip is returned to the
5. The instruments are arranged branch-wise.
6. Schedules are detached and kept safely.

In addition to the normal clearing function at Clearing house it is mutually
agreed to hold an extra clearing at the clearing house on the particular day and
time which is known as “special clearing” It is arranged due to the rush of
work arising out of say ,more Holidays declared by the Central Govt. at a time
, but normally special clearing is held on last working day of half yearly and
yearly closing i.e. 30th June and 31st Dec. every year.


Internal transfers are used to transfer funds from one branch to the other branch of the
same bank. These are the cheque of standard Chartered Bank (of which branch it does
not make any difference). All we have to do is to

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• Cheque the account number
• Verify the signature
• Title of account and pass the entry for i.e. Debit the customer account
(drawer) and credit the customer account (drawer) according to case.

Codes are assigned to debit (Dr) and credit (Cr) i.e.

602 to Dr.
515 to Cr.



It is an instrument payable on demand for which value has been received, issued by
the branch of the bank drawn i.e. payable at some other place (branch ) of the same
bank. In case of agency arrangements, Demand draft can also be issued by one branch
of the bank payable to other branch of the other bank.


It is the order of the bank to pay rupees on the demand of the customer presented in
someother city of Pakistan.. For printing drafts and pay orders we will first check the
balance of that person who has requested for demand draft or pay order i.e. it is
covering the charges or not.

• Fill in the application form for Demand Draft.

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• Fill in all information such as name of the beneficiary, place where the DD is
drawn, amount, mode of payment ,cash / cheque / debit authority ,signature
with name and address.
• Check the application form .
• Charge commission as per schedule of charges.
• Recover excise duty and withholding tax as per application rates.
• Get the exemption form filled in if the customer has NTN number.
• Get voucher from cash department after the customer has made payment by
cash /cheque.
• Prepare the demand draft (security stationery).
• The issuance of DD is computerised and the amount is automatically protect
graphed during printing, for avoidance of forgery.

The procedure for drafting leads to three situations.

 Drafts for cities where SCB branch exists
 Drafts for cities where SCB branch does not exists
1. Drafts out side the country

First situation: Where SCB branch exists

Lahore where there is a branch of SCB

If a customer wanted to draw draft from MCB Sialkot and has asked for a DD at SCB,
tufail road branch. Tufail road Dr. the customer account and credit to MCB while
MCB Sialkot Cr. customer account and debit SCB.

SCB, Lahore MCB,

Tufail road Sialkot

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Dr. Customer a/c Cr. Customer a/c

Second situation- where there is no SCB branch

Draft on Multan where there is no branch of SCB

SCB has to deal in a large number of transactions for Multan but it has no branch
there. So National Bank of Pakistan (NBP) works as correspondence bank for SCB
and certain charges are deducted by MBP for providing this facility.
In this case draft can be draw from Soneri bank.

SCB, Lahore Branch Dr. Customer account and


NBP, Multan Branch Dr. SCB and

Cr. Soneri bank

Soneri Bank Dr. NBP and

Cr. Customer Account.

Lahore SCB Multan

Dr.Customer a/c Soneri
Cr. Customer a/c

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Draft NBP Draft
Cr .Soneri

SCB has a large number of DDs drawn on the banks located in Multan but not is the
same case in Mian Chunnu. So if there is any DD for Mian Chunnu , then NBP first
confirms either by fax or phone the genuineness of the transaction and then makes the
payment on behalf of SCB.

Third situation-SWIFT/TELEX

An organization located in Belgium has originated the system of Swift. This

organization is responsible for the organization of international transactions in which
foreign currency is involved.

Suppose a customer has asked for draft of x amount from ACB bank, situated in
China. The process is done through swift. It is an advance form of telex.
USA (New York) Have file for Pakistan SCB.

In Pakistan,
SCB, Lahore Branch
Dr. Customer Account
Cr. SCB, New York

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Where as in China
ABC Bank
Cr. Customer Account and

Dr. SCB New York

USA (New York)


Pakistan SCB
Dr.Customer a/c
Cr. SCB New York
China XYZ bank
Cr.customer a/c
Dr. New York SCB


SWIFT (as foreign

currency is involved)


USA (New York)

Dr. SCB Through Signals
Cr .ABC China

Swift has assigned codes to all the banks that deal in foreign currency.

Beside this they have set certain rules:

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• Dollar Transactions will be reported in USA New York
• GBP Transactions will be reported in UK London
• Euro Transactions will be reported in Frankford Germany
Swift takes minimum 36 hours to complete processing and transfer the funds at the
desired location outside the country. The whole business runs smoothly as there is
high level of security and the banks don’t consider checking the genuineness of the
transaction. That is why; the processing time has been decreased to a great extent.

Pay order issued from one branch only be payable from the same branch. It is
normally issued for payment in the same city. It is normally referred as Banker's
cheque. It is the order of the bank to pay to specific person in whose favors Pay order
is issued. Pay order has no expiry date. In pay orders, the amount is credited first and
then processed, opposite to what happens in cheques.
• Get the application form.
• Issue pay order after recovering cheques.
• Do necessary vouchering.
• Make entry in PO issue register.
• All pay order shall be crossed "Payees account only".

Issuance of Pay Orders, Drafts & T.Ts.

T.Ts Customer Rs. 500 + telex Charges
T.Ts non-Customer Rs. 1500 + telex charges
Drafts Customer Rs. 500
Drafts non-Customer 0.2% min. Rs. 1000
Drafts & T.Ts drawn on NBP (customer) 0.3% min. Rs. 1000
Drafts & T.Ts drawn on NBP (non- 0.3% min. Rs. 2000
Cancellation Of Draft Rs. 500
Telex/Telephone Charges Rs. 500 per telex, telephone call
Pay Orders Cutomer Rs. 300
Pay Orders Non-Customer Rs. 1200
Cancellation of Pay Orders Rs. 500

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As discussed earlier, the primary process for account opening is performed at the
branch itself, but after completing the whole documents, these are mailed to head
office Karachi where the back office operations are completed and a new account is
activated in less than 24 hours.
• The DSAs, PFCs, ARMs, or CRMs, after completing the whole
documentations hand these over to BSU.
• These accounts are already assigned an account number from the Master File.
• The accounts which are urgent, in case huge amount been deposited in the
new one are scanned.
• All the scanned documents are put in files and mailed to Head Office Karachi
before 4:00 P.M. daily.
• The department located at SCB, Karachi operates the account within a few
hours time.
• A list of all the scanned and mailed documents is prepared at the end of the
• Another list is prepared for all the unscanned documents and is attached to the
folder of unattached documents
• A copy of the scanned and mailed files is kept by the branch itself.
• All the documents whether scanned or unscanned are sent by courier to Head
office Karachi.
• Both the branches have continuous contact by way of mails, telephone calls
and faxes.
• This system ensures that the customers’ accounts are opened efficiently
enhancing customers’ satisfaction.
• Apart from account opening documents, other requests such as
• Cheque book request,
• Funds Transfers Request from one account to the other,

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• Change in Address, telephone, e-mail address,
• Change in specimen signatures, etc all follow the same pattern.


All the cheque books are issued by head quarter Karachi. The following procedure is
followed while issuing new cheque books for the customers:
• Customers bring in their cheque book request on the form provided by the
• A list of all the requests is prepared by the branch.
• These requests are sent to Karachi by courier on daily basis.
• In case the request is urgent, the request form is scanned and mailed to Head
office Karachi.
• Head Office Karachi prepares the required cheque book and sends them
through courier on daily basis.
• All the cheque books received are entered into the cheque book register.
• These are also tallied with the sheet prepared for the requests.
• Acknowledgements are received before delivering the cheque books to the
• Cheque books are delivered after the verification of signatures.
• Head office issues cheque books of 25 & 50 leaves.
• 10 leaves of cheque books and single cheque are issued by the branch it self.

Cheque Book Issuance Charges

1. Rs. 5 per leaf
2. Rs. 10 per leaf for Flex account
3. (First 25 leaf cheque book is free)
4. Rs. 500 per cheque book for customers not maintaining minimum
balance requirement.

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5. Charges are waived up to 50% if requested through ATM or Phone

It is the order of the customer to the bank to stop certain cheque, all the cheque or
even all the transactions of his account. Only if he verifies the transaction then his
account would be operated. Generally these types of instructions are given by the
customers when they have lost a bearer instrument.

The bank deducts the following charges for stop payments;

• Stop payment of cheques Rs. 500 per cheque
• Stop payment of blank cheque book lost Rs. 1000 per cheque book
• Stop payment of FCY draft US $ 25 or equivalent
per draft plus
bank charges
• Stop payment of LCY draft Rs. 500 per draft


It is the order of the customer to make certain payments (monthly, yearly, quarterly or
on certain dates) out of his account.
The bank charges for standing instructions are;
1. Charge per transaction Rs. 500 per transaction + usual charges
2. Amendment Rs. 100 per amendment
3. Default due to lack of funds Rs. 500

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If any cheque is returned back, the bank makes an entry in “Cheque Return Register”
Cheque may be returned due to many reasons :

• Due to banks fault

o Absence of proper stamping
o The stamps may not be clear
o The branch may not be the one specified in the cheque.
o A collection cheque may have been launched in local clearing.
• Due to customer’s fault
o Insufficient Funds: Sometimes a cheque is returned due to the fact
that there are insufficient funds in the account of the drawer
o Refer the Drawer: At times the bank doesn’t disclose the reason for
return as it wants to keep the trust and credibility of the drawer or the
drawer himself has placed the instructions in this regard. The drawee is
advised to refer to the drawer and get the reason for return.
• Due to other reasons
o Present It Again: If a person wants to withdraw a big amount from the
bank without giving a prior notice, the bank specifies this reason for
return. Generally bank does so when it doesn’t have liquid funds to
honour the cheque when it is presented. Sometimes due to crossed
cheque transactions, the account of a person is yet to be credited, so the
bank asks the presentor to present it again.
o Effects Not Clear: In case a person deposits a cheque drawn on a bank
locate at some far off place and issues a cheque for the same or less
amount at the same date and that cheque is presented for payment
before the bank the same day or the very next day, the bank places this
reason for return. The reason is that collection takes 3 to 5 days to

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complete and his account might not be having the amount for further
o Multilated, Torn & Damaged Cheques: in case of a mulilated, torn or
damaged cheques, the bank does not honour the cheques and return
them back with this reason.
o Cheque Issued In The Name Of A Company: A cheque issued in the
name of the company cannot be cashed on the counter but is to be
deposited in the bank account of the company. No matter the cheque is
crossed or not.
o Instructions Not Complied With: If the specific instructions regarding
the operation of the account have not been complied with, the bank
will return the cheques. Such instructions are provided in case of a
joint account, a partnership account, a company account etc.
o When the Drawer Has Deceased: if the cheque is presented after the
death of the drawer, the bank will not make any payment. The bank
will make the payment from the account of the deceased without any
Succession Certificate or when the bank has received an indemnity
from a person who ha an amount more than that of deceased in the
deposit with the bank.

If it is banks fault so it is banks responsibility to sent it again for clearance



If any customer wants to convert his/her dollar account in to rupee account he has to
fill a request form specifying the purpose behind his action. He has to mention the
• Source of income

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• Purpose of conversion
• Amount
• Account number
For the conversion of Dollar accounts into PKR accounts, anyone of the following
forms (varying from situation to situation) are used:
o R Form
o M Form
o T-1 Form

It is the fee charged by the bank for maintenance of account of customer .If the
account of the customer falls below the minimum requirement then bank charges a
nominal amount as ledger fee for administration and paper work.
The bank deducts the following amounts as ledger fee
FCY accounts $ 15 or equivalent in other foreign currency per month
Fee is levied separately on frozen and extension accounts.

Balance requirements:
USD 10,000
GBP 10,000
EURO 10,000
JPY 1,000,000

These cheque are issued according to the instructions of the customer e.g
If he forgot his cheque book at home then counter cheque are issued @ Rs.200/- per
leave but this can be issued up to only the amount of Rs 50000/-

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In case of loss of the cheque book, a new account of that customer will be opened. All
the documentation will have to be transferred in to his new account.

During my six week internship program, I did not work in the Lockers. So I am giving
a brief overview of this department.

For having the facility of lockers one should have an account in this bank. Beside this
he/she has to fill a “locker rental application form”. A customer has to deposit an
annual rental fee. Annual fee will double if customers are not maintaining a minimum
balance of Rs.25000.

There are four types of lockers available in Tufail road branch of Standard Chartered
Grindlays Bank. These are

TYPE Cubic Feet Annual Rent

Small lockers > 0.25 Rs. 1000/-
Upper row medium lockers 0.75-0.90 Rs. 3500/-
Medium lockers 1.0-2.0 Rs. 4200/-
Large lockers > 2.00 Rs. 5000/-

Locker purchase fee is Rs. 2000 per locker waived for Priority
Customers on lockers issued 01-07-02 till
Breaking charges Actual or minimum Rs. 5000 per locker
Late payment fees 25% of the applicable annual locker rent per


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• Name
• NIC copy
• Address
• Occupation
• Telephone no.
• Account number

A bank is a profit seeking institution. It attracts surplus balances from the customers at
low rates of interest and makes advances at a higher rate of interest to the individual
and business firms.
Advance made by commercial banks are mainly of three types;
• Overdrafts
• Cash Credit
• Advances against moveable properties such as
 Pledge
 Hypothecation

A loan is an advance made by a bank to the borrower in a lump for a period exceeding
one year from the date and the credit extended is for meeting the long term capital
requirements of the borrower. Loans made by the banks are generally against
immovable property such as
 Mortgage
Advances and loans granted by the bank are the most important assets for the bank as
these accounts for a large fraction of the bank’s earnings.

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Guiding Principal Of Lending
Lending forms a very important portfolio for the commercial banks. The deposits are
mobilized for the purpose of making advance. Deposits are said to be the lifeblood of
commercial banks but if there is no lending, then it would be n expense and very risky
for the banks to survive.


Lending Department at SCB, tufail road is termed as Credit Unit North. Asif Habeeb
(Team Leader) and his team in CUN have been delegated the authority to deal in the
lending operations of all the ten north branches of Standard Chartered Bank.
The branches include
• Lahore Mall Branch
• Lahore Tufail Road
• Lahore Gulberg
• Lahore Defence
• Lahore New Garden Town
• Sialkot
• Faisalabad
• Peshawar
• Islamabd
• Rawalpindi

Standard Chartered Bank provided the following credit facilities to its customers;
Fund based
 Overdrafts
Non-Fund Based
 Letter of Credit
 Financial Guarantees

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Provided to the banks in the foreign countries such as Dubai,
United Kingdom, etc. such as HSBC, SCB

Lending department at SCB, tufail road branch deals in the fund based facility only
I.e. Overdrafts. I pent last week of my internship program in this department. So I am
going to give a glimpse of what happens while preparing a Credit Proposal Line for
the customer.

Overdraft is the right given by SCB to his customer to draw in excess of his current
account upto a fixed limit. The facility to overdraw by cheques is allowed only in
current account. The customer is given by the option to overdrawn his current
balances either in installments or in lump sum upto the limit fixed by the bank. The
interest is charged only on the negative balance in the customer’s account.

The bank does not provide the facility of overdraw on checking accounts to all of its
customers. The bank
 scrutinizes the applications,
 examines the credit worthiness of each borrower and
 then approves the upper limit to overdraw the current account with security.

The granting of overdrafts to the customers is advantageous to both the parties, the
bank and the customer:
The bank
Earns income by making advances which are mostly secured against.
The Customer
Gets the temporary amount in lump sum or in installments and
also has the facility of repayment in installments. The interest is
charged only on the debit balances.

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How To Judge The Safety Of Advances
Before advancing the credit facility, the bank conducts a 7 C’s analysis proposed by
Clemens, of the customer willing to enjoy the facility.
This 7 C’s analysis consists of
1. Character
2. Capital
3. Capacity
4. Cover
5. Collateral
6. Country Risk
7. Currency Risk

1. Character
Character refers to the general reputation enjoyed by the borrower judged on the basis
of the past records of the borrowings by the customer.

Every customer has two types of characters

 Moral Character
Moral character throws light on the ethical aspects of the
borrower’s personality. These moral values have an indirect
impact on the sanctioning of the funds.
 Business Character
refers to the financial credit ratings of the customer and has a
direct impact while deciding upon the credit proposal.
2. Capital
Capacity refers to the financial resources which the borrower is willing to invest
into the new project. In case no capital is brought in by the borrower, it would
undermine his capacity to borrow funds.

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3. Capacity
Capacity of the borrower has two aspects.
a. Managerial capacity
Whether the borrower has the ability to utilize the funds
disbursed efficiently and effectively.
b. Repayment Capacity
Whether the borrower has so much of potential pay back the
principal amount alongwith the mark ups as and when they are
4. Cover
Cover refers to accessing the financial risk coverage in disbursing the funds to
the customer.

5. Collateral
In the employment of his funds a bank generally attaches great significance to
the consideration of security. Banker largely discounts on borrowed funds i.e
deposits; therefore, he cannot afford to take undue risks. He guards his
interests by taking securities.

6. Country Risk
The bank accesses the national conditions of the country before advancing any
amount to the client. He considers the various aspects such as
 Economic conditions
 Political conditions
 Social Factors
 Legal Aspects
 Technological Advancements
 Governmental Regulations

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After a depth analysis of the above given factors, the bank is in a position to
decide upon the credit proposal.

7. Currency Risk
It refers to the impact on the repaying capacity of the borrower owing to the
fluctuations in the foreign exchange rates. This factor is considered in case the
borrower is engaged in export and import of raw materials or finished goods.

This & C’s analysis of the customer helps the bank in forming decision as whether to
finance the short term financing requirements of the borrower or not.

Acceptable Securities
The bank grants overdraft to a few selected customers having high credit worthiness.
Bank gives loans on the basis of securities such as:
• Government securities (whether issued by SCB or any other bank)
 Defence saving Certificates (DSCs)
 Special Saving Certificates (SSCs)
 Special US$ Bonds
• Deposits
 Foreign Currency Deposits
 Local Currency Deposits

The corporate sector gives loan on the basis of inventories, (pledged in some others
bank) and so on. It advances loans against the securities in the form of inventories
such as cotton bales. These cotton bales are also pledged at some other place.


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Facility Approval Limits
The lending officer has been authorized to approve the facilities upto a certain limit. If
the facility demanded exceeds that limit, the case is referred to the higher authorities.
 Asif Habib, the team leader at the lending department can approve the facility
upto Rs. 1 million .
 The facilities falling between PKR 1 million to PKR 2 million are approved by
the area manager, Aalesheen Zaidi.
 The facilities above PKR 2 millons are referred to the head office Karachi for

Safety Margin/Cushion for the bank

The bank advances the overdraft facility against the government securities or the
deposits maintained with any bank. While advancing the funds, the bank retains a
certain percentage of the realizable value of the security as safety margin or cushion.
Loans are not justified on the basis of the securities but these are the last recourse for
the bank in case of default by the client.
• As per regulation imposed by the State Bank of Pakistan, the banks are
required to advance funds up to 75% of the realizable value of the securities
thus retaining a safety margin of 25%.
• The bank lending policy allows the lending officer to lend up to 90% of the
value of the securities.
• The facility of 15 %, exceeding the allowed limit is secured against the
hypothecation of households and stocks of the customer resulting in
compliance with the SBP’s regulation as well as greater benefits for the client.
• However this advantage is available to only those customers who have good
credit standings and strong banking relationship. The credit officer has been
vested discretionary powers in this regard.
• The limit for the OD facility is revival on the request by the customer during
the credit term.

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• During the term period, the bank has the discretion to reduce or increase the
limit once assigned.

CIB Report
On the receipt of the loan application, the first source of getting information regarding
the credibility of the customer is CIB (Credit information Bureau) report from SBP.
This is credit information and a default showing report issued by the SBP about any
customer who is already engaged in the credit taking activities with the banking

All the banks are required to obtain CIB report while disbursing a credit facility of Rs.
500,000 or more thus safeguarding the rights of the bank in case of the default of the
customer. However if the limit is below Rs. 500,000, the lending officer has the
discretion to go for the report.

Particulars of CIB report

1. Full name of the borrower with complete address and NTN number
2. Full name of the proprietors/ partners/ directors with father or husband names
3. NIC number of the proprietors/ partners/ directors
4. Nature of the business
5. Amount of the facility outstanding
6. New facility applied for
If the CIB report shows satisfactory results about the client, only then the bank can
lend the funds to the customer.

Markup Charges
The rate of mark up charged by the bank depends on two things;
• Nature of the securities
• Size of the securities

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Generally the bank charges a rate between 13% and 15 % but in some cases it can go
upto 70% even. The newer the customer is the greater will be the rate of return and
the older the banking relationship, the lower are the charges. However, the bank is not
rigid in its credit policy as these rates are negotiable. If the credit facility is of Rs.1
crore or more, the lending charges may go down to 11%. However if the facility is of
a relatively small amount, and the customer is new, the bank may charge a mark up
rate of 17%. The reason is that the bank does not have any information regarding the
business character of a new client as he has just entered the borrowing arena. To cover
the risk of negotiating with a new client, the bank charges a high return for the funds

Marking of Lien
Lien is the right of the bank to retain the securities of the borrower till the debt due
from that person is recovered in full.
The bank marks the securities under lien as it safeguards the bank’s right against the
default by the customer. The customer cannot encash the securities unless these are
marked “Lien Removed” by the same bank.
• The customer must properly endorse the securities provided as it gives the
right to the bank to liquidate them in case of nonperformance by the customer.
The bank doesn’t accept any security provided it is properly endorsed by the
• If the securities provided are the government securities issued by SCB, the
Government Securities Officer puts a triangular stamp of “Securities Under
lien” on these securities.
• However in case the securities are issued by some other bank, the customer
writes an authority letter requesting that particular bank to mark lien on the
said securities in favour of Standard Chartered Bank. This letter which is
known as “Lien Notation Consent Letter” is then handed over to the lending

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officer who makes the arrangement of sending this letter along with the
relevant securities to the issuing bank for the marking of lien.
• At the maturity of the facility, the customer is authorized to get back the
possession of the securities provided he has paid back the facility attained
along with the mark up charges. The bank removes the lien and returns the
securities to the customer.

Mark Up Payment
Like the revival of the limit, the rate of mark up once decided by the credit officers
can be revived before the expiry of the credit term. This means that normally, mark-
up will be charged at the same rate till the date of expiry unless otherwise changed by
the bank. While reviving the facility, the lending officer may continue with the same
rate unless otherwise provided by the terms of the review.

The mark up is charged on the utilized part of the assigned limit calculated on daily
basis but is collected by the bank after three months. A separate account is opened for
the markup expense and the amount is debited to that account. This is done to avoid
compounding of markup.

At the end of each quarter, a reminder notice is served to the customer stating the
amount of mark-up to be paid for that particular quarter. If within 10 days of serving
the notice, the customer does not pay the outstanding amount due, the Bank reserve
the right to adjust the outstanding amount by liquidation of adequate amount of the
underlying securities, without giving any notice to the customer.

The banks deal in the documents. Each and everything must be communicated in the
written form and properly approved by the customer and the bank as the case may be.
The lending officer prepares a file of those documents, which act as a communicator

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between the bank and the client. This file contains all the communication between the
customer before and after the disbursement of the facility. If a customer wants to
instruct a bank about anything, he can do so through letters and bank keeps all these
records in the customers’ files in order to avoid unfavorable circumstances in the

While preparing for providing the required facility, the lending officer prepares two
different types of documents.

Transaction Documents
These are the written evidences of the transactions between the bank and the
customer relating to the matters such as Offer Letter, mark up agreement,
Quarterly mark up payment authority, and o on.

Security Documents
These are documentary evidences of the type and value of the securities
submitted with the bank against the overdraft facility. The documents such as
Letter of Lien, Letter of Hypothecation, etc. come under this head.

The following documents are prepared by the lending officer while providing an
overdraft facility to the customers;
• OD Facility Checklist
• SBP Regulations
• Demand Promissory Note with Rs. 100 stamp
• KYC (Know your customer)
• Facility Advice Letter (FAL) or Offer Letter
• Loan Application

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• Basic Fact Sheet
• Asset Liabilities Statement
• Income Tax Return
• Quarterly Markup Payment Authority
• Letter of Lien
• Letter of Hypothecation
• Markup Agreement
• Copies of Securities

The credit officer, after proper verifications and checking, approves the overdraft
facility to the customer. In case the facility is beyond the powers designated, all the
above given documents are forwarded to the head office Karachi for approval.
Now let’s discuss briefly each and every document and the very specific purpose they
are used for.

OD Facility Checklist
OD Checklist acts as a precautionary measure or reminder to the lending officer that
all the necessary information regarding the customer have been taken before
disbursing the loan. It checks whether all the steps have been performed while
deciding upon the credit disbursement.

Prudential Regulations by SBP

There are some regulations o be followed while disbursing funds to various borrowers
named Prudential Regulations by State Bank of Pakistan.

 A bank has to maintain liquidity with central bank, i.e. 25 %of

its total deposits.
 Total financing facilities by a bank to any single person shall
not at any point of time exceed 30% of the bank’s assigned

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capital maintained under Section 13 (3) of the Banking
Companies Ordinance, 1962.
 The maximum outstanding against fund base financing
facilities can’t exceed 20% of the bank’s assigned capital or
Rs. 12 million, whichever is higher.
 No financing facility, fund based or non-fund based alike, shall
be made for a sum exceeding Rs. 100,000 to any individual
person without obtaining realizable securities of the value not
below the outstanding amount.
 While granting any facility, the bank shall ensure that the total
facility availed by the borrower from banks/financial
institutions does not exceed 10 times of the capital and
reserves of the borrower as disclosed in the Audited Accounts.
 Debt and Equity ratio must be kept at 60:40
A bank can not invest all of its funds otherwise it will be difficult to meet urgent
needs. Before sanctioning the loan, the bank has to follow firstly the various
regulations given above, secondly the policies formed by the top management and
finally a complete analysis of the borrower resulting in the Credit Line Proposal to
be offered.

Demand Promissory Note

It is a legal document with a Rs. 100 stamp containing a promise on the part of the
customer to return the amount withdrawn on the demand of the bank. This is a safety
measure adopted by the bank at times of low liquidity.

Know Your Customer

KYC form performs more or less the same purpose as in case of account opening. It
contains all the information about the customer such as name, addresses, occupation,
purpose of the facility and so on.

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Loan Application
 The person willing to avail the credit facility is required to fill in the Loan
Application specifying the value of the facility required to obtain.
 On the receipt of the application, the lending officer performs the 7C’s
analysis of the customer as mentioned already.
 It must be approved by the lending officer, or the area manager as the case
may be.
 It is prepared at the time of the approval of the facility.
 It contains the points such as
• Name of the client
• Father/Husband name
• Occupation
• Mark up rate
• Proposed limit for OD
• Existing limit if any
• Maturity Date
• The nature of the securities
The loan application must be signed by the customer.

Facility Acceptance Letter (FAL):

FAL, also called offer letter is prepared by the lending officer and must be signed by
the customer .After the CM is approved, the next step in the lending process is that of
preparation of an acceptance letter by a bank.

An offer letter/FAL contains the details such as

• Facility Limit

• Review/Repayment Date

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• Mark up rate

• Nature of securities

The customer, by signing the offer letter undertakes to comply with all the terms and
conditions written on it such as;

• The facility has been granted at the sole discretion of the bank and is subject
to such credit restrictions as may be laid down from time to time by the State
Bank pf Pakistan.

• The bank reserves the right to alter the terms and conditions, rates of mark up,
commission, fees, and charges or cancel the facility at any time. In such a
case the borrower will be required to discharge the total outstanding amount
alongwith the mark up due .

• The bank will be reimbursed all the costs incurred (such as litigation charges,
legal fees) in recovering any amount from the borrower through litigation or

• The bank charges will be levied in accordance with the schedule of bank
charges applicable at that time.

• Government levy, if any imposed from time to time will be recovered from
the customer.

Basic Facts Sheet

The core objective of this document is to obtain references from the customer
while approving the facility. No facility is approved without obtaining references
from the client.

Assets Liabilities Statement

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In case the facility proposed is greater than Rs. 500,000, the customer must submit
his Assets and Liabilities statement throwing light on his financial worth at that
point of time.

Income Tax Return

A copy of income tax return is also attached with the documents as required by the
State Bank of Pakistan.

Quarterly Mark up Payment Authority

As already mentioned, the mark up is calculated on daily basis but the payment is
made on quarterly basis. This document specifies the mode of mark up payment
desired by the bank. Generally the customers make the payment themselves but in
case they don’t make the payment the bank has the authority to deduct the mark
up due from his account.

Letter of Lien
Letter of lien is a legal document obtained for the purpose of marking lien on the
securities from the owner of the securities.
• In case the securities offered against the facility are owned by the person
actually utilizing the facility, he must sign the document.
• Where the owner of the securities is someone different from the one who
has applied for the facility, the owner must sign the legal document.
• In case of joint ownership of the securities, all the parties to the securities
must sign the letter of lien otherwise it would not be enforceable.
• This letter shows the approval of the owner in providing the securities
against the facility.
• A stamp paper of Rs. 25 is used for this purpose.

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Letter of Hypothecation
As mentioned above, the bank can provide a limit up to 75% of the value of the
securities. In case the customer wants to obtain a facility beyond this limit, he has to
bring in additional security in the form of hypothecation of stocks and households.

Hypothecation is defined as a legal transaction whereby goods may be made available

as security for debt without transferring property or possession to the lender. The
advance of loans against goods without taking any possession is very risky on two
main grounds. One, as the goods are in the possession of the owner, the borrower may
take out the goods without informing the bank. Secondly, the bank does not have a
legal claim as it does not have a valid charge over the goods. That is why the bank
offer this facility to those customers only who have good track record and strong
business relationship with the bank.

F-229/2-In case OD facility granted against deposits

As discussed above, the customers can obtain the overdraft facility against two type of
securities; one is Govt. Securities. And the other one is Deposits in local or foreign
currency. This document is used if the customer, instead of providing securities or
goods for hypothecation, offers his fixed currency deposit on which the Bank marks
its lien. A different form of this document is used for local and foreign currency
deposit offered as security. However, this document is not frequently used as in 90%
of the cases; customers offer government securities and/or household goods.
Once the customer has signed all the above-mentioned documents, then till the time
the limit assigned to the customer remains the same or in case it decreases, these
documents will remain valid. This document becomes useless at the time when the
limit assigned is increased.

Mark Up Agreement

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It is the fourth and final legal document specifying the rate of mark up charged by the
bank on the facility actually availed by the customer not the one assigned. It must be
duly signed stamped and signed by the customer.

Copies Of Securities
In case the credit facility has been provided by the bank against the government
securities, a copy of all the securities duly signed and attested by the retail lending
officer must be kept alongwith the other documents.

The reason is that all the original securities are kept in the respective branches from
where these were issued and the lending officer retains a copy of these only. Secondly
in case the approval is to be granted from the head office consumer banking, Karachi,
only a copy of the securities is to be forwarded and no need to send the original


The last step in the OD granting procedure is the lodgment of all the above mentioned
documents and the securities.
Once the lending officer accepts the loan application, three different files are
maintained for the facility provided to the customer
1. Credit File
2. Loan documents
3. Securities
And all the documents regarding the new facility are placed in these three files.

Credit File
This file contains all the documents such as
• Offer Letter (containing the terms and conditions),
• CIB Report

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• Quarterly Mark up Payment Authority and so on.

Loan Document
The documents placed in this file are
• Loan Application
• Asset Liabilities Statement
• Income Tax Return and so on

Securities File
It contains the securities provided by the customer against the facility of overdraft.

All these three files kept in safe custody, as these are the valuables against which
customer has availed financing from the Bank and in most of the cases the value of
the securities amount to Rs. 1 million and more. So it is necessary that proper
lodgment of the securities and the documents is done.


A part from granting the loan, the following functions are also performed by the
Credit Unit North;



Let us now discuss each and every function briefly.

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A credit monitoring report is prepared by the CUN branch wise containing the
particulkars such as
1. Name of the Customer
2. Account No.
3. Title of the Account
4. Limit Assigned
5. Limit Utilized
6. Mark Up Rate
7. Mark Up Due
8. Expiry Date

This report is prepared with the objective of keeping an eye on the performance of the
customer regarding the discharge of his liability.

Access Follow Up
At times, the amount withdrawn by the customer is in excess of the limit assigned by
the bank. This situation can arise due to the following two reason;
1. On the request of the customer, the bank allows to withdraw in excess of
the limit assigned uptil a certain extent. But this favour is given to only a
selective number of customers.
2. Due to the collection of the mark up from the loan account.
However, this facility is provided for a certain number of days and at the expiry of
these grace period, the excess amount must be submitted by the customer in the
relevant account.

Extension and Reduction in the Limit

The lending police of the bank is quite flexible as the limit assigned by the lending
officer is negotiable.

Payment on Demand

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The department ac send a notice to the customer for the payment of the utilized funds
if the bank is faced with strict liquidity position. Demand Promissory Note provides
this authority to the bank.

Security Replacement
CUN also performs the function of replacement of the securities if the new securities
have a realizable value equal to or more than the previous ones.

Profit Transfer of the Securities

During the credit term the customer may authorize CUN to transfer all the profits
(whether o government securities or deposits) in his/her account.

Review/Renewal of the Limit

The OD facility is provided by the bank for one year starting from the date written on
the Loan Application .But this facility is renewable at the expiry of the term. The
renewal of the facility depends on the lending officer, the performance of the
borrower while discharging his liability and the banker customer relationship.

The limit for OD facility remains the same until the customer gives a request to
enhance or reduce it. Generally a higher limit is assigned to the customer while
renewing the older facility as the lending officer has build up his confidence in the
customer’s creditworthiness. In case the customer has not given any request for
changing the limit, the facility will automatically get renewed with the existing limit.

Review of the Mark Up Rate

The department has sole discretion in reviewing, increasing or decreasing the mark up
rate either at its own or at the request of the customer.

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Risk Monitoring

CUN keeps on monitoring the loan facility sanctioned. The mark up is considered
over due after 180 days from the withdrawal of the funds. The bank marks
the customer default after the expiry of 365 days.


1) New Lending of Rs.500, 000/- and above.

2) Preferably, customer will be required to visit the lending officer, who would
reduce the customer’s turnaround time and the lending officer will follow the
existing procedure.

3) All Bearer securities to be sent through Brinks and charges to be recovered

from the customer. Otherwise, customer is required to deliver these securities
directly to lending officer.

4) All renewals/encasements/closure for facilities below Rs.500, 000/- to

invariable is through visit to the lending officer and in no case the branch
should send those documents.

Turnaround time to inform the customer:

Government security backed facility -5 days

Cash backed facility -3days
This is subject to availability of C.I.B. report with in this time period.

Documents to be referred/ taken from the customer by the Branch.

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• Pricing grid
• Basic fact sheet
• Copy of income tax return in case of facilities of individuals
• Copy of financials/Board resolution/List of directors
• Lending Application
• Government securities duly discharged by the customer (Registered securities)
• Account opening forms (in case of new customer) and related documents. To
be verify through B.S.U. to C.S.D.

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PFC will prepare PC based LA at customer request

for credit facility after referring the existing Branch activity
pricing grid.

PFC to forward the LA to BSSM. BSSM will

forward the LA through e-mail with
recommendations to lending officer. The basic fact Branch activity
sheet filled and securities to be taken and
discharged by customer.

Basic fact sheet and (registered) securities to be

sent to through branch mail. The confirmation of Branch activity
receipt of securities by lending officer should be
taken to branch.

Documents/securities to be checked and securities

lodged by lending officer, CIB request &lien Lending office
marking request to be sent. LA to be approved or Activity
forwarded to consumer credit, if not within lending
officer DOA.

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After approval by consumer credit, documents to Lending office
be filled and sent to the branch to be signed by the Activity

Branch will get verified customer and pledgors’

signature on each page of all documents along with Branch activity
legitimate witness and send them back to lending

Upon receiving CIB report, lien marketing on sec.

and enclosing internal documents, copies of all Lending office
doc. And securities to be send by lending officer to Activity
consumer credit for review and approval of limit.

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Credit Monitoring report to be checked every month.

C.I.B. request for Customers & Branch

the LENDING OFFICER ACTIVITY to be informed, one
facilities>500,000/ month in advance for
-sent. renewal.

After approval for renewal by

consumer credit, Lending officer will
fill the documents and call customer
to visit and sign all documents.

Upon receiving C.I.B. report, lien

marking on securities and enclosing
internal documents, copies of all
documents and securities to be sent by
lending officer to consumer credit for
review and approval of limit.

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PFC forwards to lending officer a verified customer

request for closure of facility.

After checking appropriate balance in BBS the

lending officer will forward the copy of customer
request to consumer credit for limit cancellation.

Lending officer will hand over the securities to

customer after limit cancellation and lien

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Customer gives two instruction to the PFC for

closure of facility & encashment of securities
or deposit. PFC sent them to lending officer.

Lending officer will send

deposit request to liability
Lending officer will
operations. A copy of facility send encashment
request to securities
cancellation to be sent to
deptt. for credit to the
Consumer Credit. Lending account. Facility
LENDING OFFICER cancellation request
officer to co-ordinate with
will be provided and
operations and Consumer Credit ACTIVITY markup will be
for synchronization of

Consumer credit will cancel the limit upon

proceeds are credited I facility account.

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ALM (Assets Liabilities Migration) Process refers to the bank’s specific

operation of transferring all the assets (such as Overdraft Accounts) and the
related liabilities (such as Deposits) amounting to PKR 2 million and above
held in a PLS account at any branch of Standard Chartered Grindlays or
Grindlays Bank to the SCB branch.




Overdraft ALM process is one component of the ALM process. All the
overdraft accounts equal to or above PKR 2 million or above secured against
the deposits or securities are migrated to SCB branch alongwith the deposit
accounts pledged as security.

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Lending Officer (LO) will prepare list of OD a/cs equal to or above PKR 2 million limit
alongwith PRPPA a/cs & deposit a/c numbers if secured by deposit. This list should only
contain OD a/cs secured by deposit or securities. Securing deposit a/cs will also be migrated
therefore pledgor will also need to sign borrowing documents as in normal facility renewal.

2. 3.
LO will sent OD migration LO will prepare and obtain
letter, signed by Distribution If limit is expired or renewal documents
Manager, to see customers from bycustomer on SCB
to be expired
(Issued in duplicate – 1 copy documents since facility will
for customer and 1 copy signed 30-02-2002 be migrated to a SCB branch
by the customer to be retained within the Hub. (If securities
by the bank.) are issued by other than SCG
branch, Grindlays Indemnity
should also be in place.)
4. If Facility is current

LO will obtain following ALM documents from customer whose

OD limit is current beyond 01-05-2002. These doxs will be on
PKR 100/- stamp paper.
a. Sup. Ltr of Set-off (secured by deposit)
b. Sup. Ltr of Lien (for securities- 1st party and 3rd party)
c. Novation Agreement
d. Grindlays Indemnity
e. Board Resolution –if a company

If above documents have been obtained LO will inform BSSM via email
with copy to Consumer Credit that account may be migrated. Email must
contain associated Masters (PRPPA & securing deposit master if any).

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Upon LO’s email BSSM to proceed

with migration of listed accounts as
per regular liability migration

New signed SCB AOF’s are not required for the migration of current OD
facility accounts. However, they are required for the migration of all expired
OD facility accounts (where the Novation Agreement is not obtained) and for
the migration of all liability accounts that are under the same master as the OD
facility account.

Courageous, International, Responsible, Creative…


There is a Government office in Standard Chartered Bank where sale and purchase of
government securities takes place. I spent one and a half week in this
department learning about the various procedure followed for issuance,
cancellation and reinvestment of various securities as well as payment of
profit coupons as and when they are due.

There are two types of securities dealt in by the bank

 Special Saving Certificates (SSCs)
 Defense Saving Certificates (DSCs)

SSCs carry a maturity period of 3 years where as DSCs are issued for a long term of
10 years. However it does not mean that the investor needs to hold these securities till
their maturity. He can encash these securities at any time before the maturity but in
that case he will not be entitled to any profit due if it is for less than six months.

After every six month profit is due and credited to the customer either by transferring
that amount to his/her account or in cash in case of no account with SCB. After
maturity date one can enchased his securities and can reinvest them.

The following procedure is followed for the purchase, encashment and reinvestment
of securities as well as for the encashment of profit coupons.


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• For the purchase of securities, an application form “Purchase of Government
Securities” has to be filled up by the customer willing to make investment in
the government securities.
• The physical presence of the investor is necessary as he is required to sign the
form which would be taken as specimen signature while verifying future
• The investment can be made in the name of Single person or Joint persons.
• A copy of NIC/passport is required.
• Taxes and Zakat will be applicable according to the government of Pakistan’s
• In case of non-deduction of Zakat, one has to submit an affidavit and a letter
for non-deduction of Zakat. (In case of Fiqa Hanfia).
• Zakat is not applicable on Fiqa Jafaria and non-muslims.
• The purchase form contains the information such as
 The type of security whether DSCs, SSCs, or others
 The worth of the security to be purchased
 The account no. with SCB(any branch)
 The title of account
 Date of application
 Name or Names in case of Joint Persons
 Addresses
 Telephone numbers /Mobile No.
 Signatures
 Nominations (maximum three and minimum one) in case of the
death of the investor and their respective shares.
 Declaration of Zakat whether applicable or not must be
acoompanied by the signatures of the purchaser.

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 The denominations of the securities intended to be purchased.
Securities with the face value of Rs.500, Rs. 1000, Rs. 10,000,
Rs. 50,000, Rs. 100,000 and Rs. 500,000 are issued by SBP. If
the investor does not specify the denomination, the bank has
the discretion to issue the securities with any denomination.
Generally the customers prefer the securities with the face
value of Rs.10,000 to Rs. 100,000. Holding the securities with
a value less than Rs. 10,000 will become cumbersome for both
the customer as well as the bank. Where as the securities of
more than Rs.100,000 means the customer will have to encash
the whole instrument in case of need of even a few amount.
• After checking the form, the bank employee stamps each leaf of the form and
the acknowledgement slip is handed over to the purchaser specifying the date
on which the securities will be ready for delivery. Generally a date of three
days after is given.
• The bank does not sell the securities for cash. The purchaser must have an
account with the bank. In case he is not a depositor of the bank, he is required
to open a new deposit with the bank. The amount deposited in the new account
should not be less than the value of the securities intended to be purchased
plus the minimum balance requirement.
• In case amount left in the account is less, the customer will be charged for not
maintaining the min. balance requirement.
• However the bank does not always follow the same rigid policy. If the
customer intends to purchase the securities of huge amount, the bank might
accept the cash as consideration. The reason is that the bank gets a very
nominal commission from the government for providing these services i.e.
0.5% of the amount of the securities purchased and re-invested. If the amount
of the security purchased is less, it means more administration expenses and
fewer earnings (commission) for the bank. So it would not be profitable for the

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bank to deal with the customers willing to make payment in cash. However if
the customer purchases securities of huge amount, it would result in more
earnings (commission) and less expenses for the bank. That is why the bank is
willing to accept cash payment in case of big purchases.
• The Securities officer completes formalities like stamping and signature, keeps
the original copy for record keeping, and sends the rest of the application
forms to Mall branch.
• The Mall branch completes the required formalities and sends the demands to
State Bank of Pakistan from where these securities are to be issued.
• SBP issues the new securities and sends to SCB, Tufail Road branch.
• These certificates contain the name of the purchaser, the registration number
of the securities, the Certificates numbers and the date of issuance. This date is
the same as written on the application form.
• On the receipt of the demanded securities, the Securities Officer makes entries
in the books such as Registration numbers, Securities numbers, and puts their
• On the presentation of the acknowledgement slip, the bank gets the signatures
of the purchaser on the form and delivers the securities.
• At times, the customer signs this form at the time of filling the purchase form.
In such a case anyone with the acknowledgement slip in his hands can get the
delivery of the securities.


SSCs yield a six monthly profit. Six profit coupons are affixed with the SSCs
Certificates. These profit coupons carries
1. Numbers from1-6; 1 for the first six months profit, 2 for
the next six months profit and so on.
2. The amount of profit due

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3. Due date of profit coupons
SBP keeps on revising the profit rates from time to time. Then the profit is calculated
on the basis of the revised rates issued by the bank. The profit coupons are reprinted
with the new amount calculated on the basis of the revised rates.
• A form for the “Encashment of the profit coupons” is required to be filled in
by the customer who has come up to receive the yield of his investment.
• The customer must bring the certificates or the profit coupon it wants to
• The securities officer first checks the maturity date of the profit coupon. If the
date of the maturity has not arrived yet, the payment cannot be made. The
encashment of the profit coupons cannot be done before even a single day.
• In case the customer comes after one year or more, profits coupons will be
encashed on the compound rate.
• The encashment from contains the following information;
 The name of the purchaser
 Contact Number
 Date of encashment
 Amount of the profit due
 Face value of the security
 Account Number (in case the amount of profit is to be
transferred to the account kept at SCB)
 Registration number
 Certificate Number
 Signatures of the purchaser (in case of the joint holders, anyone
of the two can sign)
• Once the form is completed by the customer, the securities offices checks the
form, attaches the profit coupon due with the form, puts the received stamp on
the form and hands over the duplicate copy to the customer.

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• The next step is to make entries in the books kept for this purpose. All the
purchase forms contain a column at the back for marking the payment of profit
coupons. These forms are traced back on the basis of the R No. (registration
• While making the entries in the registers, make sure that the signatures on the
encashment form tally with the ones taken on the purchase form. This step
ensures that the payment is being made to the right person. In case there is
some doubt, the bank will postpone the further processing till the verification
of the signature.
• It is not necessary to make the payment in the same account from whom the
amount was withdrawn at the time of the purchase. The customer can transfer
the profit in any account provided it is held at SCB branch.
• In case the customer wants the profit in cash form, the whole verification
process is to be done on the spot. It is essential as in case of payment to wrong
person and of wrong amount, the recovery will be very difficult.
• While making the payment of the profit in cash form, the securities officer
after proper verifications prepares a voucher for the customer encashable at the
bank’s counter.
• A list of all the applications for the encashment of the profit coupons is
prepared and is send to Mall branch where the further processing is done.

All the applications are send to Mall branch twice in a day; firstly near 1:00 p.m. and
then again near 4:00 p.m. All the encashment applications are processed at Mall
branch and it takes hardly 2 to 3 hours in transferring the amounts in the accounts of
the customers.


SSCs and DSCs are issued for 3 and 10 years respectively. However the purchaser can
encash these even before the expiry of the term if he is in need of funds.

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In case of SSCs,
The customer is entitled to the principal amount of the certificate plus
the profit due provided it is not for less than ix months.

In case of DSCs,
The customer is entitled to the maturity value specified at the
certificate at that particular time period.

The whole procedure for the encashment of securities is the same as given above.


SSCs and DSCs can be reinvested at the maturity of the term.

 For reinvestment an application for reinvestment of Govt. securities has to be
filled by the customer.
 This form contains the same information as is needed in case of the purchase
of the securities.
 The previous matured certificates are attached with the reinvestment form.
 The rest of the procedure is the same as in case of purchase of the securities.

Not only the securities but also their profit can be reinvested in the new securities.


Apart from SSCs and DSCs, this department also deals in Special US$ Bonds. These
bonds are issued by the Government of Pakistan for various terms such as 3 years, 5
years and 7 years. Dollar bonds are completely exempt from tax for a period of six

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Formerly, there were FCBC (Foreign Exchange Bearer Certificate) issued for a term
of 5 years. The profit on FEBC was exempt from tax provide encashed before 15th
June, 1995 and after that date their yield was subject to a nominal tax rate of 1% only.
Now all the FCBC has elapsed and Dollar Bonds have taken their place.

After the atomic explosion in 1998, all the foreign currency accounts were freezed.
After one week of this operation, the government makes an announcement that all the
frozen accounts can be converted into PKR accounts. One month after, the
government came up with another proposal that dollar bonds can be issued out of
these frozen foreign currency accounts with a six monthly profit in dollars. The
government announced a bonus of 5% if the encashment of the profit coupons during
September 2001 to December 2001 is made into Pak rupee and not in dollars. After a
few days another amendment came which extended the limit till the end of March,
2002. After March, 2002, no bonus was to be given on the encashment of the profit
coupons in PKR instead of cash.


Apart from the above mentioned services, this department also performs the functions
such as
 Marking Under Lien
 Stop Payment
 Marking Certificates Lost
 Encashment of Wapda Bonds and Profit coupons
 Certificate regarding encashment of government securities
 Certificate regarding collection of profit coupons
 Certificates regarding encashment of Special US$ Bonds
 Certificate regarding Zakat deduction

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 Certificate regarding Tax Deduction

In case of issuance of duplicate securities SSCs, DSCs, NITs & NDCs etc.Rs.2000per
registration is required. The bank charges Rs. 500 per scrip for marking stop payment
and Rs. 2,000 per registration for amendment cases. The bank charges Rs. 500 for
issuance of various certificates.

This department of the bank can be considered to be the most efficient one in terms of
customers’ satisfaction and efficiency. National Savings Centres are the core places
for the purchase and sales of various government securities but still one month sales
of this department are nine times higher than NSCs or any other bank providing these
services. This fact shows the standard and quality of the services provided by this
department. The securities officers work non-stop from 9:00 a.m. till 6:00 p.m. I had
my personal experience of working there and I enjoyed working there more than in
anyother department.


“Across Pakistan, owing the car of your dream is as easy as 123.”

Standards Chartered Grindlays auto loans make a car ownership as easy as 123. At a
time when car prices have shot up, they have further reduced rates, documentation and
processing fees so owing the car to one dream is now affordable, simple and easy.
However this facility is available to the employees of approved companies only. List
of the approved companies is given at the end of this section.


Courageous, International, Responsible, Creative…

Standards Chartered Grindlays auto loans offers a low down payment of only 10%.
One can borrow any amount up to maximum of PKR 1,500,000 for a new car with a
minimum loan amount of Rs. 150,000.


Step # 1

• Select the car one wants to buy

• Call auto loan hotline
• Fill out the application form and
• Provide all the necessary documentation.

Step # 2

• Make the down payment of only 20%

• Sign the offer letter and legal documents.

Step # 3

• Take the purchase order to any of the authorized dealers.

For the customer applying for auto loan:

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• The age must be ranging between 23 to 62 years.
• Should have a minimum of one-year full time working experience and
• In case of salaried person, must have a net monthly salary of Rs.12000 or
• In case of self-employed, one must have a minimum age of business or
practice of one year, and reside in Pakistan.


• One can finance his/her dream car for upto seven years depending on the
engine size of the new car.
• Select a monthly payments plan that allows continuing with the life style and
puts no additional burden on the customer.
• One just has to calculate the minimum PKR amount one can put aside every
month without disturbing his/her cash flows and selects the repayment plan
• Repayment of the loan can be made either through post-dated cheque (PDS) or
automatically through standing instructions in an account with the bank


Standards Chartered Grindlays bank’s Auto Loans automatically qualify for

preferential rates for insurance coverage.
The insurance premium
• for the first year is taken upfront along with the down payments, and
• for the subsequent years the amount is added to the monthly contributions.

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Total monthly installment equals:

TMI = Monthly Contribution + Insurance payments.
Note that the last year of financing doesn’t include insurance payments.


One time processing fee of Rs 4000 is charged to cover operational and

documentation expenses.

For salaried individuals
 a copy of NIC
 a letter of confirmed employment
 salary slip
For self-employed individuals
 a bank statement for the past six months
 a copy of NIC


List of Approved Multinational Companies

S.No. Name of Company
1 3M Pakistan Pvt. Limited
2 A.D.Marker (Pvt.) Limited
3 A.F.Ferguson
4 Abbott Laboratories (Pak) Limited

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5 ABN Amro Bank
6 AEG Pakistan Limited
7 Aga Khan Hospital & Medical College
8 Alcatel Pakistan Limited
9 Alstom Pakistan PVT Ltd.
10 American Express Bank
11 Anglo French Drug Co.
12 Anjum Asim Shahid & Co.
13 ANZ Grindlays Bank PLC
14 APL Agencies (Pvt.) Limited
15 AT&T
16 Atlas Honda Motorcycle
17 Bank Al-Falah Limited
18 Bank of America
19 Bank of Tokyo Mitsubishi Limited
20 Barret Hodgson
22 Pharma (Pvt) Ltd.
23 BOC Pakistan Limited
24 Bristol Myers Squibb
25 Burshane Pakistan Limited
26 Caltex Oil (Pakistan) Limited
27 Chemdyes Pakistan Ltd.
28 Citibank
29 Coca Cola
30 Colgate Palmolive Ltd.
31 Credit Agricole Indosuez
32 Cynamids Pakistan Ltd.
33 Descon Engineering
34 Deutsche Bank
35 Eli Lilly
36 Emirates Airlines
37 Emirates Bank International
38 Ericson Telecom
39 Faysal Investment Bank Limited
40 Faysal Islamic Bank Limited
41 Ghandhara Nissan Diesel Ltd.
42 Gillette Pakistan Ltd.
43 Glaxo Welcome Laboratories (Pakistan) Limited
44 Gulf Air

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45 Hoechst Pakistan Limited
46 Honda Motor Cars
47 Hongkong & Shanghai Banking Corporation
49 ICI Pakistan Limited
50 Indus Motors Ltd.
51 Interpak Shaving Products Ltd.
53 J & P Coats Pakistan Pvt.
54 Johnson & Johnson Pakistan (Pvt.) Limited
55 Johnson & Philips
56 KLM Airlines
58 Lasmo Oil Pakistan Ltd.
59 Lever Brothers (Pakistan) Ltd.
60 Lufthansa Airlines
61 Mackinnon Mackenzie & Co. of Pakistan (Pvt.) Ltd.
62 Marubeni Corporation
63 Merck Sharp and Dohme of Pakistan Limited
64 Mitsubishi Corporation
65 Muller & Phipps Pakistan (Pvt.) Limited
66 Nestle Milk Limited
67 Novartis (Pvt) Ltd. Formerly Ciba-Geigy
68 Occidental of Pakistan Inc. Ltd.
69 Orthopaedic Medical Institue (OMI)
70 Packages Limited
71 Pakistan Cables
72 Pakistan Petroleum Limited
73 Pakistan Services Limited
74 Pakistan Tobacco Company Limited
75 Parke Davis
76 Pepsi Cola International (Pvt.) Limited
77 Pfizer Laboratories Limited
78 Philips Electrical Industries of Pakistan Ltd.
79 Proctor & Gamble Pak.(Pvt.) Ltd.
80 Rafhan Best Foods
81 Reckitt & Coleman Pakistan Limited
82 Rhone Poulene (Pvt.) Ltd.
83 Roche Pakistan Ltd.
84 Sandoz (Pakistan) Ltd.

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85 Schlumberger
86 Sealand Shipping Agency
87 Shell Pak. Ltd.
88 Siemens Pakistan Engineering Co. Ltd.
89 Smith Kline & Beecham of Pakistan Ltd. (SK&B)
90 Societe Generale
92 Union Texas Pakistan Inc.
93 Upjohn Pakistan (Pvt.) Limited
94 Volkart Pakistan (Pvt) Ltd.


1 Adamjee Insurance Co. Limited
2 DHL Pakistan
3 Indus Motors Company Limited
4 Jahangir Siddiqui & Co Limited
5 Karachi Sheraton Hotel
6 Khadim Ali Shah Bukhari & Co. Limited
7 OTSUKA Paksitan Limited
8 Pak Suzuki Motors Company Limited

Monthly Repayment Amount

Loan 1 Year 2 Years 3 Years
50,000 4,632 2,545 1,858
100,000 9,263 5,090 3,716
150,000 13,895 7,634 5,575
200,000 18,527 10,179 7,433
250,000 23,159 12,724 9,291
300,000 27,790 15,269 11,149

2 Monthly Instalments Plan for Local Company Employees

Monthly Repayment Amount

Loan 1 Year 2 Years 3 Years

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50,000 4,680 2,594 1,910
100,000 9,359 5,188 3,819
150,000 14,039 7,782 5,729
200,000 18,719 10,376 7,638
250,000 23,399 12,970 9,548

The Instalment amount will change if payment will be made though Post Dated
Cheques instead of Salary Transfers.

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Courageous, International, Responsible, Creative…

(Rupees in 000)
Rs Rs
2000 2001
Cash and balances with treasury bank 3,376,100 6,980,293
Balances with other banks 1,974,241 5,653,482
Investments 2,724,265 5,172,377
Lending to financial institutions Investments 2,616,623 1,149,492
Advances 22,557,236 16,598,631
Other assets 2,149,411 2,300,029
Operating fixed assets 199,229 317,359
Total Assets 35,597,105 38,171,663
Bills payable 160,024 123,690
Borrowing from financial institution 3,938,337 1,351,887
Deposits and other accounts 27,337,250 32,809,299
Liabilities against assets subject to finance lease
Other liabilities 569,238 568,811
Total Liabilities 32,004,849 34,995,381
Net Assets Represented by: 3,092,256 3,176,282
Head office capital accounts 2,426,013 2,521,236
Capital reserve 15,018 15,018
Unremitted profits 635,139 603,673
3,076,170 3,139,927
Surplus on revaluation of fixed assets 9,456 9,456
Surplus on revaluation of securities 6,630 26,899
3,092,256 3,176,282
Contingencies and commitments

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Courageous, International, Responsible, Creative…
FOR THE YEAR ENDED DEC. 31, 1998-2001
Figures in '000'
1998 1999 2000 2001
4,974,81 3,394,09
Mark Up/Return/Interest Earned 7 3,861,437 8 3,520,724
3,427,95 2,005,64
Mark Up/Return/Interest Expensed 8 2,626,787 4 2,292,074
1,546,85 1,388,45
Net Mark Up/Interest Income 9 1,234,650 4 1,228,650
Provision against non-performing Loans &
Advances 156,454 103,149 501,977 152,974
Net Mark Up/Interest Income after provisions 5 1,131,501 886,477 1,075,676
Non-Mark Up Interest Income
Fee, Commission and Brokerage Income 517,103 528,075 71,787 525,148
Dividend Income 20,823 22,506 25,387 48,591
Income from dealings in foreign currencies - - 159,730 167,839
Other Income 257,342 183,548 92,536 20,360
Total Non-Mark Up/Interest Income 795,268 734,129 849,440 761,938
2,185,67 1,735,91
3 1,865,630 7 1,837,614
Non-Mark Up/Interest Expenses
Administrative Expenses 808,517 833,172 942,085 923,821
Other Provisions 17,379 1,493 1,997 -
Other Charges 2,190 143,972 16,917 128
Total Non-Mark Up/Interest Expenses 828,086 978,637 960,999 923,949
7 886,993 774,918 913,665
Integration Cost 407,061
Profit Before Taxation 7 886,993 774,918 506,604
Taxation Current 820,500 512,846 -549,377 465,377
Profit After Taxation 537,087 374,147 225,541 41,227
Unremitted Profit brought forward as 1,198,01
previously reported 919,101 1,106,188 3 751,959
Reversal of Indemnity from ANZ Group 116,820
Restated Unremitted Profit 919,101 1,106,188 3 635,139
1,456,18 1,423,55
Profit Available for Remittance 8 1,480,335 4 676,366
Reversal of provision for diminution in the
value of investment 15,816
1,456,18 1,439,37
8 1,480,335 0 676,366
Profit Remitted 350,000 282,322 -804,231
Courageous, International, Responsible, Creative… -72,693
Unremitted Profit carried forward 1,106,18
274 8 1,198,013 635,139 603,673

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Finance can be defined as the science and art of managing resources especially
money. Virtually all the organizations earn or raise money and spend or invest money.
But this area is extremely important in context of the banking concerns.

Body of information describing even the smallest firm is enormous, spanning the
company’s internal operations and its relations with the outside world. Financial
statement analysis is very helpful in this respect because it highlights company’s
strengths and weaknesses.

Compliance With The Laws Applicable

All the financial statements have been prepared in accordance with the laws
applicable in Pakistan;
• Companies Ordinances 1984
• International Accounting Standards

As per circular No. 36, dated October 1, 2001 by BSD, State Bank Of Pakistan, all the
financial statements have been reclassified.
All the figures presented in the financial statements are comparable.
I am presenting trend analysis of a few selected items from balance sheet on account
of non-availability of the required financial information.

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Courageous, International, Responsible, Creative…

Trend Analysis, also called Horizontal Analysis of the financial statements is one
directional- upward or downward analysis and involves the computation of the
percentage relationship that each statement item bears to the same item in the base


AS AT DEC, 31, 1998-2001
Rs. in ‘000’
1998 1999 200 2001
Deposits 28,495,209 22,074,053 27,337,250 32,809,299
Cash & Balances with treasury 5,291,458 6,088,201 3,376,100 6,980,293
Balances with other banks 87,812 1,029,469 1,974,421 5,653,482
Advances 15,568,271 18,135,804 22,557,236 16,598,631
Operating Fixed Assets 203,973 176,597 199,209 317,359
Bills payables 211,488 200,874 160,024 123,690
Deposits and other accounts 28,495,209 22,074,053 27,337,250 32,809,299


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Using 1998 as Base Year
Figures in %

Year 1999 2000 2001

Deposits 77.46 123.84 120.02
Cash & Balances with treasury 115.06 55.45 206.76
Balances with other banks 1172.38 191.77 268.36
Advances 116.49 124.38 73.58
Operating Fixed Assets 86.58 112.80 159.30
Bills payables 94.98 79.66 77.29
Deposits and other accounts 77.47 123.84 110.02

Using Moving Base Year
Figures in %

Year 1999 2000 2001

Deposits 77.46 95.94 115.14
Cash & Balances with treasury 115.06 63.38 131.92
Balances with other banks 1172.36 2248.26 6438.17
Advances 116.49 144.89 106.62
Operating Fixed Assets 86.58 96.76 155.59
Bills payables 94.98 75.67 58.49
Deposits and other accounts 77.47 95.94 115.14

FOR THE YEAR ENDED DEC. 31, 1999-2001
Using 1998 as Base Year
figures in %
1999 2000 2001
Mark Up/Return/Interest Earned 77.6197 68.2256 70.77092

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Mark Up/Return/Interest Expensed 76.6283 58.5084 66.86412
Net Mark Up/Interest Income 79.8166 89.7596 79.4287
Provision against non-performing Loans and
Advances 65.9293 320.846 97.7757
Net Mark Up/Interest Income after provisions 81.3792 63.7567 77.36422
Non-Mark Up Interest Income
Fee, Commission and Brokerage Income 102.122 110.575 101.5558
Dividend Income 108.082 121.918 233.3525
Income from dealings in foreign currencies -
Other Income 71.3245 35.9584 7.911651
Total Non-Mark Up/Interest Income 92.3122 106.812 95.80896
85.3572 79.4225 84.07543
Non-Mark Up/Interest Expenses
Administrative Expenses 103.049 116.52 114.2612
Other Provisions 8.59083 11.4909
Other Charges 6574.06 772.466 5.844749
Total Non-Mark Up/Interest Expenses 118.181 116.051 111.5765
65.336 57.0805 67.30066
Inergration Cost
Profit Before Taxation 65.336 57.0805 37.3165
Taxation Current 62.5041 66.9564 56.71871
Profit After Taxation 69.6623 41.9934 7.676038
Unremitted Profit brought forward as previously
reported 120.355 130.346 81.81462
Reversal of Indemnity from ANZ Banking Group
Restated Unremitted Profit 120.355 130.346 69.10437
Profit Available for Remittance 101.658 97.7589 46.44771
Reversal of provision for diminuition in the value
of investment
101.658 98.8451 46.44771
Profit Remitted 80.6634 229.78 20.76943
Unremitted Profit carried forward 108.301 57.4169 54.57237

FOR THE YEAR ENDED DEC. 31, 1999-2001
Using Moving Base Year
figures in %
Mark Up/Return/Interest Earned 77.6197 87.8973 103.731
Mark Up/Return/Interest Expensed 76.6283 76.3535 114.281

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Net Mark Up/Interest Income 79.8166 112.457 88.49057
Provision against non-performing Loans and
Advances 65.9293 486.652 30.4743
Net Mark Up/Interest Income after provisions 81.3792 78.3452 121.343
Non-Mark Up Interest Income
Fee, Commission and Brokerage Income 102.122 108.278 91.8433
Dividend Income 108.082 112.801 191.401
Income from dealings in foreign currencies - 105.077
Other Income 71.3245 50.4152 22.0022
Total Non-Mark Up/Interest Income 92.3122 115.707 89.6989
85.3572 93.0472 105.858
Non-Mark Up/Interest Expenses
Administrative Expenses 103.049 113.072 98.0613
Other Provisions 8.59083 133.758
Other Charges 6574.06 11.7502 0.75664
Total Non-Mark Up/Interest Expenses 118.181 98.1977 96.1446
65.336 87.3646 117.905
Integration Cost
Profit Before Taxation 65.336 87.3646 65.3752
Taxation Current 62.5041 -107.12 84.71
Profit After Taxation 69.6623 60.2814 18.2792
Unremitted Profit brought forward as previously
reported 120.355 108.301 62.7672
Reversal of Indemnity from ANZ Banking Group
Restated Unremitted Profit 120.355 108.301 53.016
Profit Available for Remittance 101.658 96.1643 47.5125
Reversal of provision for diminution in the value of
101.658 97.2327 46.9904
Profit Remitted 80.6634 284.863 9.03882

Unremitted Profit carried forward 108.301 53.016 95.0458

Interpretation of Trends:

Trend percentage analysis is most valuable when various related trends for a number
of year are compared and interpreted.
The following favorable and unfavorable tendencies may be noted in SCB’s financial
growth over the last four years.

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The liquidity position is essentially important for the bank as it must have all the time
sufficient funds to meet the demands for the money that may be made on it. It is the
protection against the risk that losses may develop if banks are forced to sell or
liquidate creditworthy assets in an adverse market. ). The current liquidity position of
the bank has improved as indicated by the percentages shown in the above table.

The improvement in the liquidity position is also indicated by the fact that the
deposits, both short as well as long term, have increased, but at a slightly lower rate in
comparison with the current assets (cash and balances with the treasury. As the
liquidity position of a commercial bank must be related to the demands made upon
them for funds over the period of time. An overview of the deposits portfolio of the
bank indicates that the bank is having almost 75% of its total deposits creation in
current or PLS accounts which means requires more liquid funds at hand and this is
what the bank has done over the last year. It reveals a growing financial strength and a
greater safety for the depositors.

A very important factor in analyzing the liquidity position of SCB is the extent to
which it has advanced loans against the deposits raised. The holder of sizable deposits
balances and the customers who borrow in substantial amounts influence the liquidity
needs of the bank to a degree that is directly related to their size. Trend observed in
the loans and deposits reveals that at times when the deposits of the bank have
increased by 15 to 20 % in the current year, the loans and advances made by the bank
have decreased by 26% as compared to the previous year. A great decline has been
observed in the credit sanctioning in comparison with the year 2000 when the loans
and advances increased by almost 25% (45% if compared with the base year.) The
main reason for this tremendous decline appears to be

• the economic crisis our country is faced with,

• absence of democracy,

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• insecure economy for the investors,
• unprofitable businesses.

The internal factors resulting in the decline in the advances by the bank are
• high rates of mark up charged by the bank,
• strict lending policies,
• and grant of the advances to selected customers with good track record.

Owing to such uncertain circumstances, any bank in the world would be reluctant to
advance credit as there is doubt about the future recovery of the funds disbursed.

The foregoing data shows that Bills Payable by the bank is on a continuous decline.
They have decreased to half the amount if we consider the figures in 1998. It is a good
sign as there would be less pressure on the current assets of the bank which is very
important to stay in the banking business.

Operating fixed assets have increased from Rs. 203,973,000 to Rs. 317,359,000 at a
rate of 156% and during the same time, the deposits of the bank have increased by
107%. The bank acquired fixed assets in the current year. The source of capital used
for the expansion of the assets during the period under review included a finances
lease with a down payment of nearly 12%.

Now comes the income statement positions during the last four years.

First and far most important item in the income statement of a bank is the mark up
earned by the bank. Presently it is showing a declining trend. It is supported by the
fact that the loan disbursements by the bank have also declined in relation to previous
years’ performances. There is a direct relationship between mark up earned and the
loans advanced by the bank. However despite the decrease in the advances, the mark

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up earned is showing a slight improvement in the current year. This improvement may
be due to the fact that the bank raised its mark up charges resulting in rupee increase
in the mark up earned.

But this increase in mark up income when compared with the mark up expenses and
the operating fixed assets of the bank, don’t indicate favorable condition. Although
the mark up earned by the bank has increased slightly over the last year but the
increase in mark up expenses is more abrupt. As the mark up income has increased
from 88% to 104%, the mark up expenses incurred by the bank has decreased at a
higher rate i.e. from 76% to 114 % in the current year. The bank is unable to maintain
the mark up expenses at the same level while providing the financing facilities.

An upward trend in deposits accompanied by a downward trend in advances and mark

up revenues means in effective credit policies, inefficient credit collection resulting in
unhealthy financial development. But there are two points satisfying this adverse
trend; one is the increase in the liquidity position which is extremely important for
any commercial bank and second is the fact that the bank has increased its lending to
the financial institutions in the recent years which are more secured disbursements in
the face of financial crisis of the economy.

The trend in the provision for non performing loans is highly satisfactory. It shows the
efficiency of the credit department to have reduced the amount of provisions by 70%
in the current year. The reasons for this improvement may be
• Careful scrutinizing of all the documents
• Intelligent corresponding with the customer
• True 7 C’s analysis of the customer such as his business and moral character
• Granting facility to selected customers who rate well on the selected criteria
for loan disbursement.

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This improvement is extremely large if we compare it with the figures of 1999. The
amount of provisioning was 487% of the figure of 1998 and this might be the reason
for the substantial decline in the amount of advances over the years.

The foregoing data reveal that the non mark up earnings of the bank has decreased by
10% in the current year. The main factor attributable to this decline is decline in the
others incomes in the form of bad debts recovered, frauds recovered etc. In view of
this trend, the bank has become more selective in disbursing the funds.

In contrast to the trend observed in the mark up expenses, the performance of the bank
in controlling its non mark up charges is quite satisfactory. These charges have
decreased by nearly 10 % in the current year. The bank is able to keep its non mark up
expenses at almost the same level. One obvious factor is the substantial decline in the
other charges such as penalties. SCB was imposed penalty by State Bank of Pakistan
as a result of late submission of returns and short fall in maintaining statutory liquidity
result. It seems that the bank has learned from the last years experience as this figure
has been reduced to a very low amount this year. This argument is further
strengthened by the improvement in the liquid assets of the bank.

Taxation charges imposed on the banks have decreased from 67% to 57% owing to
the decrease in the overall taxation rates imposed by the government on the banking

Last comment is on the profit for taxation trend. This figure stands at just 18% of the
last year’s figure. But it does not mean that the bank is not performing well. If we at
profit and loss account items, we find out that the bank has to incur huge integration
costs as a result of the acquisition of ANZ Grindlays in the 2001. Although presently
these costs are distracting the net profit figure but the bank will definitely reap the
benefits in the future.

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FOR THE YEAR ENDED DEC. 31, 1998-2001
Figures in %
1998 1999 2000 2001
Mark Up/Return/Interest Earned 100 100 100 100
Mark Up/Return/Interest Expensed 68.91 68.03 59.09 65.1
Net Mark Up/Interest Income 31.09 31.97 40.91 34.9

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Provision against non-performing Loans and
Advances 3.14 2.67 14.79 4.34
Net Mark Up/Interest Income after provisions 27.95 29.3 26.12 30.55
Non-Mark Up Interest Income
Fee, Commission and Brokerage Income 10.4 13.68 16.85 14.92
Dividend Income 0.42 0.58 0.75 1.38
Income from dealings in foreign currencies - - 4.7 4.77
Other Income 5.17 4.75 2.73 0.58
Total Non-Mark Up/Interest Income 15.99 19.01 25.03 21.64
43.93 48.31 51.15 52.19
Non-Mark Up/Interest Expenses
Administrative Expenses 16.25 21.58 27.76 26.24
Other Provisions 0.35 0.039 0.059 -
Other Charges 0.044 3.73 0.5 0.004
Total Non-Mark Up/Interest Expenses 16.65 25.34 28.31 26.24
27.29 22.97 22.83 25.95
Inergration Cost - - - 11.56
Profit Before Taxation 27.29 22.97 22.83 14.39
Taxation Current 16.49 13.28 16.19 13.22
Profit After Taxation 10.8 9.69 6.65 1.17
Unremitted Profit brought forward as previously
reported 18.47 28.65 35.3 21.36
Reversal of Indemnity from ANZ Banking Group 3.32
Restated Unremitted Profit 18.47 28.65 35.3 18.04
Profit Available for Remittance 29.27 38.34 41.94 19.21
Reversal of provision for diminution in the value of
investment 0.47
29.27 38.34 42.41 19.21
Profit Remitted 7.04 7.31 8 2.0647174
Unremitted Profit carried forward 22.24 31.03 18.71 17.15

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(Rupees in 000)
Rs Rs
2000 2001
Cash and balances with treasury bank 9.62 18.29
Balances with other banks 5.62 14.81
Investments 6.63 13.55
Lending to financial institutions Investments 7.45 3.01
Advances 61.2 43.48
Other assets 0.57 6.03
Operating fixed assets - 0.83
Total Assets 1 1
Bills payable 0.45 0.32
Borrowing from financial institution 11.22 4.54
Deposits and other accounts 0.78 85.95
Liabilities against assets subject to finance lease
- 0.37
Other liabilities 1.62 1.49
Total Liabilities 91.19 91.68
Net Assets Represented by: 8.81 8.32
Head office capital accounts 6.91 6.60
Capital reserve 0.042 0.039
Unremitted profits 1.81 1.58
8.74 8.23
Surplus on revaluation of fixed assets 0.026 0.025
Surplus on revaluation of securities 0.019 0.070
8.81 8.32
Contingencies and commitmen

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Common –size Analysis, also called Vertical Analysis, or Component Percentage, or
100 percent Statements as each statement is reduced to the total of 100 and each
individual item is stated as a percentage of the total of 100.

Common size Analysis of Standard chartered Grindlays Banks, shown above reveal
the relationship of each item to its perspective total.


The assets side of the common size analysis is revealing the relationship of each item
to the total assets.

The foregoing data shows that 33% (more than double) of the bank’s total assets have
been invested in cash and marketable securities as compared with the previous year’s
figure of 16%. At the same time the lending to the financial institution has increased
from 6% in the previous year to 14% in the current year. All these measures have
strengthened the bank’s position to discharge foreseeable and unforeseeable liabilities
as they come due.

On one hand the lending to the financial institutions has increased and on the other
hand, the investment made by the bank has decreased from 7.4% to 3%. Advances
have also increased from 43% in the previous year to 64% in the current year which
means the bank is utilizing the funds raised in the other activities primarily lending to
the financial institutions as it is the most secure source of financing available in the
economy. A favorable indication is the increase in the operating fixed assets of the
bank under a finance lease agreement.

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Liabilities side of the common size analysis reveals the following facts about banks’
financial position.

Bills payables are showing a decline in proportion to the total liabilities. There
contribution in the total liabilities of the bank has decreased from 0.45% to 0.3% in
the current year. However its impact on the overall gearing position of the bank is
very insignificant.

If we look at the borrowing to the financial institutions, we find that it has decreased
to a greater extent i.e. to 4% from 11.2% in the previous year. On the other hands, the
borrowing to the financial institutions is on a continuous increase resulting in more
borrowing potential for the bank. So the bank has changed the structure of resource
allocation from advances to the lending to the financial institutions.

The bank’s management seems to have adopted a very effective marketing policy as
the deposits of the bank constitute 86% of the total capital employed by the bank. In
the last year, this figure stood at 78% of the total resource. This shows the high level
of products and associated services provided by the bank.

Now comes the capital employed by the bank. Presently the proportion of the assets
funded by the bank’s capital is sufficient. It contributes to nearly 9 % of the total
resources held by the bank.

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It shows the percentage of the revenue absorbed by each individual cost or expense
item and other incomes earned by the bank.

The most important component of any profit and loss account of a banking concern is
its mark up expenses it has to pay for servicing the depositors. The foregoing data
shows that the mark-up expenses absorbs 59% of the revenues (a favourable position)
as a successively smaller amount of the mark up earned was absorbed. This
favourable operating position is also reflected by the net mark up percentage of 41%
as compared with the last year’s figure of 35%. It shows that the bank has been
successful in

• Selling larger volumes of higher profit items.

• Increasing economy in procurement
• Adopting other effective and more profitable deposit raising policies at a lower

The most favourable item in the profit and loss account is the decrease in the
provision for non-performing loans and advances. It has got down to just 4% in the
current year from 15% in the last year. Although it shows the better asset management
by the bank but we should not ignore the fact that the decrease in the loans and
advances might be a contributing factor in decreasing the provisioning required
against the default of the advances.

Non mark up income previously stood at 25% in relation to the total revenue
generated by the bank in the form of mark up. However in the current year, this figure
has decreased slightly and has reached at 22. It shows that the bank is focused more in

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generating revenues from it score operations and relies less on other sources of

The bank seems to have increased control over its operating expenses, i.e. non-mark
up expenses as these now absorb 26% of total revenues. Previously the non mark up
expenses absorbed 28 paisa for each rupee of mark up earned.

In the net shell, it would not be wrong to say that the bank has improved its financial
position and operating efficiency over the last years.

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The liquidity position of a bank is like a reservoir. It may be adequate, although
nearly depleted, just before the start of the rainy season. Or it may be inadequate,
although three quarters full just before the summer drought.

Liquidity can be defined as the bank’s ability not only to meet possible deposit
withdrawals but also to provide for the legitimate needs of the economy as well.


Formula = Current Assets

Current liabilities

2001 = 35,891,555 = 1.36


2000 = 27,555,173 = 1.15


Current Assets 2001 2000
Rs. in ‘000’
Cash and balances with treasury banks 6,980,2939 3,376,100
Balances with other banks 5,653,482 2,974,241
Lending to financial institutions 5,172,377 2,224,265
Investments 1,149,492 2,616,623
Short term advances 14,635,882 15,214,533
Other Assets 2,300,029 2,149,411
Total Current Assets 35,891,555 27,555,173

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Current Liabilities 2001 2000
Rs. in ‘000’
Bills payable 123,690 160,024
Burrowing from financial institutions 1,351,887 3,938,337
Deposits and other accounts (short term) 24,861,868 19,776,351
Total Current Liabilities 26,337,445 23,874,712

In case of Standard Chartered bank, we witness quite a strong current ratio in 2000
and 2001. It indicates that the bank has substantial capacity to solicit more deposits.

There is an increase in almost all the current assets of the bank except for investments.
On the other hand, the bills payables and borrowing from the financial institutions
have decreased resulting in a strong current ratio. Although deposit have increased as
compared with the previous year’s figure, but the increase in the current assets of the
bank is more than the increase in the deposits creation.

As a result, we observe more liquidity which means greater ability to meet the credit
demands that may be made on the bank from time to time. If we go through the notes,
we find out that the bank was charged penalty for not meeting the liquidity statutory
requirement. These charges have decreased to a greater extent in the current year
indicating the focus of management activeness, attention and concern for
improvement in the liquidity position of the bank. That is why the bank’s liquidity
position has increased in the current year.


Formula = Advances
Total Deposits

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2001 = 16,598,631 = 50.56%

2000 = 22,557,236 = 82.51%


It demonstrate the degree to which bank has already used up its available resources to
accommodate the credit needs of its customers.

This ratio, a comparison of funds generation and its funds mobilization, indicates the
total loans sanctioned by the bank in relation to total amount of money deposited with
the bank stands at 50.56% as compared with the last year figure of 82.51%. This
shows that the bank has greater potential to advance additional loans. Total loanable
funds roughly measured by the deposits are sufficient to enable the bank to make
additional loans without recourse to more or less continuous borrowing. At present,
the bank has got a relatively small amount of advances as compared with its deposits
raised. One reason for fewer advances is the cautious and selective approach on the
part of the management while deciding upon credit proposals.


Formula = Quick Assets

Total Deposits

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2001 = 13,736,736 = 41.87 %

2000 = 7,920,433 = 28.97 %


Quick Assets 2001 2000
Rs. in ‘000’
Cash and balances with the treasury 6,980,2939 3,376,100
Balances with other banks 5,653,482 2,974,241
Federal Govt. Securities
Federal Investment Bond 956,630 2,242,852
Federal Govt. Loan 46,042 247,220
Listed securities
First Grindlays Modarba 79,800 55,763
National Investment Unit 20,489 24,257
Total Quick Assets 13,736,736 7,920,433

The ratio of advances to total deposits reveals little, however the bank’s other assets
available for conversion into the funds with which to meet withdrawals or make
additional loans. The ratio of quick assets to deposits is more significant for this

The bank’s quick assets constitute 42% of its deposits, which means the bank has the
ability to accommodate the withdrawals of deposits up to 42% of its total deposits (a
situation which hardly happens). It also indicates that the bank has great potential to
meet the demand for new credit approvals. The liquidity position is quite sound in

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view of not only the deposit withdrawal possibility but also unforeseen cash/funds
demands faced by the bank in the future.


Formula = Total Financing

Total Deposits

2001 = 21,771,008 = 66.36 %


2000 = 24,781,501 = 90.65 %

Financing 2001 2000
Rs. in ‘000’
Lending to Financial Institutions 5,172,377 2,224,265
Advances 16,598,631 22,557,236
Total Financing 21,771,008 24,781,501

This ratio highlights the relationship between the deposits raised by the bank and their
obligations in the form of advances and loans to financial institutions.

As indicated above, this ratio for the bank has decreased from 91% to 66% in the
current year. Again the reason is the same; the desire of the bank’s management to
attain high/good liquidity to safeguard the interest of the depositors. It also indicates
low level of advancements being made by the bank in the current year. Although it
sounds ineffective to held cash today the funds needed to make loans two years from

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now. But this is the demand of the economy today. As our economy is passing
through rough patches, the advancements made by the banks are less, as these are
insecure. However the bank has adopted a more secure means of utilizing the funds
raised through deposits and this source is heavy lending to the financial institutions
with less chance of becoming bad. Although the financial institutions pay less rate of
mark up as compared to the ordinary borrower, but for a bank, liquidity is overrides
the profitability aspects.


Formula = Total Financing

Deposits & Borrowed Funds

2001 = 21,771,008 = 63.73 %


2000 = 24,781,501 = 79.24 %


Deposits & Borrowed Funds 2001 2000

Rs. in ‘000’
Deposits 32,809,299 27,337,250
Borrowed Funds 1,351,887 3,938,337
Total Deposits + Borrowed funds 34,161,186 31,275,587

This ratio takes into consideration not only the deposits liabilities but other liabilities
as well i.e. borrowed funds.

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If we look at SCB, its assets to deposits ratio is 61% and financing to deposits and
borrowed funds ratio is 63% showing a decline from 79% in the previous year. This
shows the ability of the bank to meet other liabilities such as borrowed funds along
with the deposits withdrawals. The bank’s management is efficient as it has taken
significant measures to safeguard against not only the withdrawals but also the
repayments of the borrowed funds.


Formula = Demand Deposits

Total Deposits

2001 = 24,861,868 = 75.78 %


2000 = 19,776,351 = 72.34 %

Demand Deposits 2001 2000
Rs. in ‘000’
Saving 18,055,308 15,259,792
Current 6,634,564 15,259,203
Margin 47,981 148,202
Financial Institutions
Non-remunerative 124,015 122,154
Total Demand Deposits 24,861,868 19,776,351


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All the deposits raised by the banks require some level of liquidity. However this level
varies from deposit to deposit depending on its type and purpose. The bank requires
more level of liquidity for the demand deposits and less for the fixed deposits. This
ratio indicates the required level of liquidity for the bank.

This ratio for SCB is nearly 76% of the total deposits held by the bank. It highlights
the fact of why the bank is having a large degree of current assets in its assets
structure. The deposits held by the bank are very volatile. The management is quite
effective as it has already taken actions to successfully meet any deposit withdrawal.


Formula = Borrowed Funds

Total Financing

2001 = 1,351,887 = 6.21 %


2000 = 3,938,337 = 15.89 %

It shows the extent to which borrowed funds have been utilized in advancing loans

The ratio for SCB is 6.21 % showing that the management relies less on the borrowed
funds for advancing credit facility to the customers. Most of the advances are granted
against the deposits and the capital funds. Since these funds add up the pressure on the
bank’s current resources, a decline in the ratio from 16% to 6.21% is quite

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Formula = Due to banks

Total Deposits

2001 = 1,351,887 = 4.12 %


2000 = 3,938,337 = 14.406 %

This ratio is an indicative of the proportion of the lending from the financial
institutions in relation to the total funds raised by the bank in the form of deposits.

This ratio for SCB is 4% in the year 2001. There has been a significant decline in this
ratio as previously the bank depended slightly more on the borrowings from financial
institutions. It shows that the bank is concentrating on raising funds from depositors
and relies less on the borrowed funds.
• It is a favorable indication in the sense that the bank has large potential to ask
for borrowed funds in the phase of tight liquidity position.
• Further more, it shows the efficiency of the marketing department to have
created so much of deposits that the bank does not need to look at the financial
institutions for help in improving its liquid position.
• There is another favorable aspect of this declining tendency. The rate of
interest offered to the depositors is very low in comparison with the interest to
be paid to the financial institutions for their funds. A decline in this ratio
means less mark up burden on the bank resulting in less financial risk for the

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Formula = Due from banks

Due to Banks

2001 = 5,172,377 = 382.6 %


2000 = 2,224,265 = 56.48 %

It shows the relationship between what the bank owes from other banks and what is
due to it. A tremendous improvement has been observed in this ratio in the current
year showing the fact that the bank has to seek fewer funds from the financial
institutions owing to the strong liquid financial position. On the other side of the
picture, the bank is continuously increasing funds allocation in this sector causing
further rise in the ratio. This ratio is favorable from another perspective. In the phase
of economic instability, the bank’s management is efficient to access the risk involved
in lending and that is why it has chosen to provide support to the banking and
financial institutions more in the year 2001.


Formula = Due from banks

Total Assets

2001 = 5,172,377 = 13.55 %


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2000 = 2,224,265 = 6.34 %

It is an indication of SCB’s funds management policies. The funds allocation to the
financial institutions has increased to a great extent despite the fact that still it holds a
small proportion relevant to the total resources raised by the bank. It is a positive
indicator in the sense that the financing to the banks are the most secure ways of
lending. Considering the economic conditions of the country, it seems to be the best
alternative available to the bank.

Gearing ratios show the extent of debt in the bank’s resources.

Debt to Total Assets Ratio

Formula = Total Debt

Total Assets

2001 34,995,381 = 91.67 %


2000 = 32,004,849 = 91.19 %



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This ratio indicates the bank’s strategic risk of financial failure i.e. how much
company owes in relation to its size. The above given ratio indicates that SCB is
utilizing nearly 92% of the external funds in its business operations. For a banking
concern, this ratio is quite acceptable as the whole structure of banking is based on the
funds provided by the depositors.

If we consider the bank’s liabilities excluding the depositors funds, the situation
would be like this;
2001 2,186,082 = 5.72 %

2000 = 4,667,599 = 13.30 %


It shows the true picture of the gearing. Excluding the bank’s core function i.e.
Deposits Creation, the bank seems to be relying less on the borrowings to support its
operations. In the year 2000, this figure stood at 13.30% but the bank has further
decreased this ratio to just 5.72% in the year 2001. This shows the efficiency of the
bank’s management. There is another positive aspect of this ratio; the banks and other
potential lenders will be willing to advance further funds

This decrease in gearing can be attributed to a no. of factors. Firstly, the acquisition of
ANZ Grindlays in the year 2001 has resulted in a large no. of deposits for the bank.
Due to this fact, the bank does not have to resort to outside funds causing decline in
the ratio. Secondly, the marketing and sales department of the bank is so efficient to
raise so much of deposits that the bank is self-sufficient to discharge its obligations at
the right time without getting the support of lending institutions.

Provision For loans to Total Loans Ratio

Formula = Provision for loans

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Total Loans

2001 = 152,974 = 0.92 %


2000 501,977 = 2.27 %


This ratio has decreased in the year 2001 as compared to year 2000 resulting in a
more favorable picture.

Coverage ratio measure the capacity of the bank to cover its interest charges, which
are the main obligations on the bank.

Interest Coverage Ratio

Formula = Earning before int. & Tax

Interest Exp.

2001 = 2,798,678 = 1.2 times


2000 = 2,780,562 = 1.39 times



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It shows whether the bank is earning enough profit before mark up charges to be paid
to the financiers and the taxation obligations due to the government in order to remain

The above figure shows the less capacity on the part of the bank to cover its interest
payments. It has declined as compared with the last year. The bank cannot afford it to
decline further as it would mean no benefit for the capital providers. But this is a short
term perspective of the bank’s financial position. In view of the long run financial
perspective, this ratio is good for the bank. The reason is the huge integration costs
incurred by the bank on the acquisition of ANZ Grindlays going to yield tremendous
benefits for the bank in the future.

Profitability ratios are a measure of reasonable rate of return and adequate profits

Return on Capital Funds

Formula = Net mark up Received

Capital Funds

2001 = 41,227 = 1.313 %


2000 = 225,541 = 7.33 %



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This ratio relates the net profits to the amount of capital funds that have been
employed in making that profit.

The above given ratios suggest that the profitability of the bank has decreased very
sharply in the year 2001 indicating less profitable operations of the bank. While
discussing the trend analysis, I mentioned that the mark up charges have increased in
a large proportion that the mark up earned by the bank resulting in decline in the
profit available on the capital funds employed. However, the situation is not as intense
as revealed by the above given ratios. Since the bank has incurred huge cost in the
acquisition of ANZ Grindlays resulting in less profit margin on the capital funds.

Return on Investment

Formula = Net income after taxes

Total Assets

2001 41,227 = 0.108 %


2000 = 225,541 = 0.6426 %


This ratio indicates the profit earned by the bank on the resources employed.
As far as SCB is concerned, we observe a decline in the efficient utilization of the
resources. It has decreased to 0.108 % in the year 2001 from 0.6426 % in the year
2000. The reason for this low profitability is the same given above; the increase in the

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mark up expenses relative to mark up earned and incurrence of huge integration costs
which is good in view of long term profitability.

Return on Risk Assets

Formula = Net income after taxes

Total Risk Assets

2001 41,227 = 0.248 %


2000 = 225,541 = 1.0 %


This ratio, with a minor fluctuation in 2000 came down from 1.0% in 2000 to 0.248 %
in the year 2001. It is indicating less active utilization in the form of advances. The
bank is finding it difficult to keep the level of its expenses less in proportion to the
advances it has disbursed. Lending, no doubt is the core function of a banking
concern. But the bank should find out effective ways of credit provisions affecting
less on profitability of the operations. Non mark up revenues should also be increased
in the face of lower credit disbursements resulting in more returns for the bank.

Return on Deposits

Formula = Net income before taxes

Total Deposits

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2001 506,604 = 1.54 %

2000 = 774,918 = 2.8 %


This ratio indicates to what extent deposits which represent funds mobilization on the
part of the bank contribute towards income generation. Apparently, this ratio is giving
negative remarks on the part of the bank’s profitability and efficient utilization of the
deposits. But a review of the profit and loss account indicates that the bank has
performed well in keeping its overall expenses low. As the above calculations include
the integration expenses incurred in the year 2001 by the bank which was not present
in the last year.

Operating Expenses to Net Revenue

Formula = Operating Expenses (excluding integration cost)

Net Revenue

2001 = 923,949 = 85.89 %


2000 = 942,085 = 106.27 %


This ratio signifies the proportion of the revenues that is used to cover the operating
expenses of the bank. The ratios calculated above gives a poor picture of the bank’s

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operations. Although this ratio has decreased in the year 2001 from 106 % to 86% but
still it is giving a dismal picture of the profits for the bank. The reason for this low
profitability is high level of liquidity attained by the bank as there is trade off between
these two concepts. The bank has increased its liquidity at the expense of its

In short, the bank in an attempt to maintain at a good level of liquidity, has a low level
of profitability but there is a continuous push in the profits and there are chances that
the bank will reach at a point of high liquidity and profitability in the near futures.


Capital Adequacy/Leverage ratios indicate bank’s capacity to meet its short and long
term obligations.
Capital adequacy is very important as the bank’s depositors as well as the supervisors
as his representative, favor maximum amount of capital as protection against the risk
inherent in the banking operations.

Capital Funds to Deposits Ratio

Formula = Capital Funds

Total Deposits

2001 = 3,139,927 = 9.57 %


2000 = 3,076,170 = 11.25%


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This is the first and widely used ratio to measure the capital adequacy of a bank.
Ideally this ratio should fall near 10 %. So the bank is quite up to the mark as far as
the protection of the depositors is concerned. However the bank has decreased it from
11.25% in the year 2000 to 9.57% in the year 2001 keeping in view the short range
profit maximization to operate with as much of capital funds as is sufficient in order
to gain average leverage in earnings from the employment of the depositors’ funds but
still it is not in conflict with the interest of the depositors. The bank’s management is
quite concerned about its public images i.e. the capital providers to assume more risk.
In this regard the bank’s management is efficient in combining the profitability and
safety because in the longer run, their investment will become more profitable only if
the bank stays in business. In order to maintain the confidence of the public
(depositors current and potential), the bank has tried to hang around 10% as public
trust and confidence is vital ingredient in the success of a bank.

Capital Funds to Total Assets Ratio

Formula = Capital Funds

Total Assets

2001 = 3,139,927 = 8.23 %


2000 = 3,076,170 = 8.76 %


This ratio indicates the extent of the funds employed by the bank in the total resources
as shown in the balance sheet. It shows that for ever rupee invested in the assets, 82

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paisa is attributable to the owners. Although this ratio has decreased in the current
year, but still it is good enough to satisfy the general public.

Capital Funds to Risk Assets Ratio

Formula = Capital Funds

Risk Assets

2001 = 3,139,927 = 18.92 %


2000 = 3,076,170 = 13.64 %


This ratio takes into account the difference between cash and marketable securities
and other kind of assets. Cash and marketable securities, which are riskless items, are
excluded to find out the true picture of the capital adequacy. A ratio of one rupee of
capital to five rupees of quick assets is considered sufficient. In case of SCB, this ratio
is near 20 % which is sufficient to ensure the public that the bank is in a position to
withstand what ever strains may be placed on it. As the bank has decreased the
advances in the year 2001, the result is the improvement in the risk coverage from the
perspective of the depositors. Previously it was quite low i.e. 13.64%. It shows that
the bank is concerned about its public image regarding risk absorbance.

Capital Funds to Total Financing Ratio

Formula = Capital Funds

Total Financing

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2001 = 3,139,927 = 14.42 %

2000 = 3,076,170 = 12.41 %


This ratio gives more or less the same picture as given by the above one. It calculates
the risk absorbed by the owner in both types of financing; borrowing to the financial
institutions and debtors. Although the lending to the financial institutions does not
involves the same level of risk, so this ratio is calculated from a conservative
perspective. An increase in this ratio from 12.41% in the year 2000 to 14.42% in the
year 2001 favors both
• the depositors as their money is safe and
• the potential borrowers as they have the confidence that the bank is in a
position to give genuine considerations to their credit needs.


Internal analytical tools are used by the management of the organization to have a
look at the performance of the bank from various perspectives which ultimately leads
towards the development of effective strategies and policies.

Two widely used techniques for internal analysis of an organization are

• External Factors Evaluation Matrix

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• Competitive Profile Matrix

Now after giving the external analysis of SCB, let us have a quick look at the internal
analysis of the bank against one of the leading banks in the market; Bank Alfalah.

External Factors Evaluation (EFE)

The external factor evaluation is the process that allows strategists

to summarize and evaluate economic, social, cultural, demographic,
environmental, political, governmental, legal technological and
competitive information.


The External Factors Weight Rating Weighted score
Uplift in exports 0.075 4 0.3
Increase in GDP growth 0.05 3 0.15
De-escalation 0.025 3 0.075
Technological advancement 0.025 4 0.01

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Change in taxation rates 0.045 2 0.09
Co-operation among competitors 0.05 4 0.2
Market development 0.05 3 0.15
Flexible product mix 0.05 3 0.15
Global reach 0.1 3 0.3
Revival of Lending rates 0.03 3 0.09
Alliance of religious-political
0.15 2 0.3
Rise in stock market operations 0.09 2 0.18
Level of domestic tranquillity 0.025 3 0.075
Location &severity of terrorist activities 0.03 2 0.06
Technology management (BBS) 0.09 3 0.27
Riba free banking 0.025 2 0.05
Slow industrialization 0.025 3 0.075
Privatized banking operations 0.025 4 0.10
Bush Administration 0.015 2 0.03
Bad media impression 0.025 2 0.05
Total 1.00 2.705



Presently, a revival has been observed in the economy of Pakistan. A significant

indication is the uplift in the export volume of the country. This represents an
opportunity for Standard Chartered bank (SCB) as it will be negotiating more letter of
credit and earning more commission fee. Rating 4 has been given to this opportunity
as the bank’s L/C department is well efficient and trained to capitalize on this.


GDP growth rate has improved from 2.5 % last year to 3.5 %. This is a significant
size as the result of which people will be having more savings with them. To
capitalize on this opportunity, a no. of different schemes like Super Save, Flex

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Privilege has been introduced by SCB. A rating of 3 shows that SCB is utilizing
proper strategies to reap this opportunity.


The de-escalation of army troops from the international border of

Pakistan and India has removed the threats of expected war. People
within the country and from abroad are expected to respond toward
this action by stating new projects. The financial requirements of
these projects will be definitely be fulfilled by the banks, so this
section will have a significant effect on the business of the banks.


Effective use of advance technology represents a major opportunity to an organization

to achieve a corporative edge over its rival. It has been a policy of SCB to adopt up-
to-date technology in all its operations, which have helped in efficient servicing,
erased limitations of traditional geographical markets, and has saved time and energy.
Use of telecommunication, computers, data access and storage devices, fax machines,
on line data base and software show that SCB capitalizing properly on this


The federal govt. has revised the taxation rates from the year 2002-2003. the banking
companies will be required to pay at the rate of 50 % instead of 58% which has
encourage the banking sectors a lot. As the result of this amendment, the bank has
become more focused and committed in its services (being a moral boast).

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Now days a trend has generated among the competitors to join hands in order to reap
large profits. Strategies that stress co-operation among the competitors are used
frequently. SCB’s acquisition of Grindlays Bank on 16th July 2000 is a right step in
this direction which has made the bank oldest one in this region.


An organization offering its products in large number of markets is in a better position

to ensure the better inflow of the economic benefits. Our economy shows huge
opportunities in different territories of the country. SCB has 21 branches in 8 different
cities of the country and is continuing open new branches not only in big cities like
Lahore & Karachi but also in small cities like Faisalabad, Sialkot. MNET a
collaboration with MCB, has enabled the customers of SCB to us its ATM cards on
MCB,s ATM’s machine as well.


Our society comprises of different classes of the people. Each clan of people need
specific product according to their specific life style. In order to satisfy each clan of
the society, SCB is offering the flexible product mix. Different products like current
A/c, super save A/C, high yield saving A/c, and privilege account are suitable for
different classes of the society.


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No doubt, world today has become a global village. So a bank having global reach
and recognition will have an edge on competitive advantage. SCB, through its round
the clock online banking provide global reach to its customers. They can operates
their accounts from 750 offices in 56 different countries of the world without any


The state bank of Pakistan has declared to reduce the lending rates
of the banks after the complaints from the borrowers of charging high
interest rates. Due to high interest rates they were reluctant to
borrow money on such high charges, but after the declaration the
borrowers inclination towards the taking of loans has been increased
which ultimately will upgrade the business of the banking companies
including Standard Chartered Bank.


The present govt. of religious-political parties is considered by the investors as having

rigid principles perhaps, which would not be feasible for them, and probably they
would think that they will have the same kind of strategies as the Taleban had. So they
will be reluctant to invest in such environment. Actually they are more centered
towards Islam. The foreign investors unfortunately, have some misunderstanding
about them, which will lead to low foreign investments in the country having a
negative effect on the business of the banks.

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Pakistan’s markets are very small so is the investing climate. The same few people are
seen investing in banks and in stock exchanges. Presently the banks are paying low
mark up that’s is why the investors have shifted to stock exchange market, which has
resulted in boast in stock exchange market but representing threat for the banks.


Pakistan during the last few decades is facing poor level of tranquility. People are not
taking bold steps to start new projects which have been resulted in fewer advances by
the banks.


Terrorist activities, a major issue September 11, 2001, has bring the bad media
impression for Pakistan as neighbouring country has always been trying to prove
Pakistan as a terrorist country. Scared due to the terrorist attacks, foreigners are not
willing to come to Pakistan and make investments which are having bad impacts on
our economy.


Not only adopting the technology is crucial but also technology management can be
testing one. SCB is currently using computer based BBS (basic banking system) to
conduct its day to day operations which is very slow in processing and often gets

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stuck resulting in wastage of precious time of employees as well as customers. It
needs to be improved.


This issue of riba free banking has become more severe after the tremendous success
of religious parties in election 2002. Riba free banking represents a threat for banks
but bank can avoid this threat by modelling their products in Islamic forms.


Poor industry financial position has darkened the future of huge advances by the
banks. In view large sick units, the banks don’t risk extending loans to the existing as
well as new projects which would result in inefficient utilization of its deposits.


The govt. is privatizing all its holdings and the privatization of UBL is a past of this
process. This has resulted in increased competition among the banks. The banks have
to exert more efforts to maintain their current positions.


The happiness and unhappiness of the supreme power is very crucial

for sub-powers. As the elected govt. in Pakistan is more Islamic
which is unbearable for Bush administration because of their thinking
that this govt. will be similar to the Taleban, therefore, Bush
administration will try to impose such restrictions, which will
decelerate the economy. As a result in order to keep our economy on

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the track we will accept the ideas of this administration, which will
be definitely not public friendly.


After the incident of 11th September, the Muslim community of the

entire world is considered as terrorist. Even though Pakistan has
played a front line role for the elimination of the terrorism by
cooperating with USA but we are indulged in the bad media impression
of terrorists, because of being Muslim. That is the reason that the
investment activities in the region are very slow as people are
afraid of investing such country.

SCB’s total weighted score comes out to be 2.705 which is the little above the average
score of 2.5. It shows that the Bank’s strategies are in line with the existing
opportunities and threats. Bank is responding to the external factors but still there are
better strategies to be followed in order to exploit the opportunities more efficiently.


The competitive profile matrix identifies the firm’s major competitors and their
particular strengths and weakness in relation to sample firms’ strategic position. In
CPM both internal and external issues are included the success factor in CPM are not
grouped onto opportunities and threats. It provides important internal strategic

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This analysis gives the picture of the market standing of two competitor banks in the
banking sector i.e. Standard Chartered Bank vis-à-vis Bank Alfalah.

Critical success STANDARD

Rating Score Rating Score

Market development 0.1 4 0.4 4 0.40

Product mix 0.1 4 0.4 4 0.40
Service mix 0.17 4 0.68 4 0.68
Advertising 0.09 2 0.18 2 0.18
Customer mix 0.05 3 0.15 2 0.10
Market share 0.1 3 0.3 3 0.30
Global reach 0.09 3 0.27 3 0.27
Technology 4 0.20
management 0.1 0.4 2
Priority centres 0.03 4 0.12 3 0.09
Social responsibility 0.05 2 0.10 2 0.10
Call Centres 0.05 2 0.10 3 0.15
Professional 0.05 3 0.15 3 0.15
ATM facility 0.05 3 0.15 4 0.20
Market Response 0.05 3 0.15 3 0.15
Total 1.00 3.55 3.37

The score of both the banks are near to 4.which shows that market standing for both
the banks is pretty good. While comparing both the figures of 3.55 and 3.37 we
cannot say that Bank Alfalah is 0.18% better than the Standard Chartered Bank. These
are just the assumed figures and don’t give us the exact difference but only shows the
comparative upper hand.

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An analysis indicating towards the organizations strengths, weaknesses, opportunities

and threat is termed as SWOT Analysis. Such an analysis is very important for the
management in retaining the strength, overcoming the weaknesses, capitalizing over
the emerging market opportunities, and carving ways to successfully tackle with the
threats and ultimately converting them in the strengths for the organization.

During six weeks of my stay at SCB, quail road, I have come across the following
SWOT analysis of the bank.


Largest Foreign Banking Network:

The Standard Chartered Bank is the largest foreign banking network in Pakistan with
21 online branches in eight major cities of the country. The acquisition of ANZ Grind
lays in the last year has given added further to the reputation enjoyed by the bank and
the positive results have started to appear.

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Comprehensive Range of Money Transfer Options:
Through Standard Chartered Bank, one has at his disposal, a comprehensive range of
money transfer options including cashier's orders, drafts and telegraphic transfers. The
bank ensures its customers that whether it's local or foreign currency transfer to local
or overseas destinations, their money will reach its destination safely and quickly.

USD Clearing
The U.S. Dollar facilitates international trade. With the continued growth of inter- and
intra-regional trade, when the customers need someone responsive to their growing
needs and who can execute their transactions quickly and effectively, Standard
Chartered give the support needed for the growth of their business. SCB understand
the clearing process clearly and have the infrastructure and expertise to help in U.S.
Dollar clearing requirements around the world.

Automatic Operations:
The operations performed by the bank are highly automated that result in assurance
for the customers that their transactions are completed reliably, efficiently and

9 to 5 Non-stop Banking
One can avail the benefit of the services provided at the bank till 5:00 P.m. which is
highly useful for those customers who find it difficult to leave their officers in the

ATM Network

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The bank, in collaboration with the Muslim Commercial bank, has the largest ATM
Network cross the country. The customers of SCB can withdraw access their funds
any time at more than 150 Sites with MNET Logo.

Customized Solutions
The management of the bank believes in customer focussed banking rather than the
product oriented banking. The products and services designed by the bank are
specifically tailored to the individual needs of its customers.

Priority Banking
The priority banking centres of the bank offer an unmatched where the customer
receives highly privileged services in a highly elegant environment. It gives the
chance of experiencing new standards in banking. Designed specially for those who
appreciate only the finest things in life, Priority Banking offers the very highest levels
of personalised banking to match customer’s unique status.

Electronic Banking
The revolution in the banking in the form of electronic banking operations have
opened avenues of excellent, efficient and quick services saving the time and costs of
the customers and fortunately SCB is among those few banks who are already reaping
the benefits of electronic transactions.

Technological Advancements
SCB’s management is quite prepared to adopt the latest advancements in technology
resulting in revolution in the banking operations such as check clearing process,
computer based teller equipment, automatic teller machines, and electronic funds
transfers among the others.

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Phone Banking
Phone banking service is very attractive for those classes of customers who don’t have
time to personally come to the bank i.e. banking on the phone line thus saving the
precious time of the customers.

Attractive Facility Layouts

The layouts of the service sector are very important for achieving the client customer
goal of fats service. The fast service is supported by the automatic operations,
scanners etc. which are widely used by SCB. The use of ATM for banking operations
has ensured reduced costs and convenience for the customers as well as for the
management. SCB’s facility layouts are the physical expression of the technological
choices, the capacity utilization and the communication systems that interconnect the

Ethical concerns and Public Image:

The organizations showing concern for the people, ethics, and environment enjoy
good public reputation and are able to reap the benefits in the long run. SCB’s
management is quite sensitive to this issue. Recently, the bank conducted a walk in
the favour of clean environment that is why the name of this bank is continuously
going up day by day. People feel proud having attached to this organization in one
way or the other.


In my opinions these are the points that might be detrimental to the efficiency and
profitability of the bank.

Low Job Satisfaction

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Understanding and the effective management of the human resources is the most
difficult challenge faced not only by the bank but by all the organizations. Even
though the people have been sacrificed in the new organizational developments, it is
becoming clear that the true lasting competitive advantage comes through humn
resources and how they are managed. SCB seems to not focussing on this highly
critical issue as the job satisfaction level of the employees working at SCB, tufail road
was quite low. These are some of the possible reasons of this low morale based on my
personal judgement.
• Contractual Hiring
• Low Salary Package
• Job In security
• Sales Pressures
• No additional perquisites, facilities, allowances
• Management performance oriented and not employee oriented
• Centralized decision making and low empowerments
• Strict rules & regulations
• Delayed Promotions
• Lack of recreational facilities

Lack of specialisation
This famous and useful concept given by Adam Smith in 1776 seems to be missing in
the bank. The employees are constantly rotated from one job to another job of totally
different characteristic in the view of giving them the know-how of the working in all
the departments. But I think this is not a very good tactics used by the management.
Otherwise the situation might be like this ‘Jack of all and master of none.’

Basic Banking Service

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The BBS software used by the bank in preparing pay orders and drafts is not as
efficient as it often gets low or stuck even resulting in arrogance and delay for the
customer. The job also becomes hectic for the employee.

There is a high degree of centralisation in the bank. Almost all the decision-making is
in the hands of the upper management located in Karachi. But centralisation is
effective upto a certain level otherwise it becomes inefficient and at times costly too. I
personally observed that delay occurred in the operations of the employees only due
to the fact that they had not got any instructions from the head office.

Lack of training facilities

Presently there is no specific training program arranged for the new recruiters. They
have to learn based on their observations and also their mistakes. It takes a bit time for
the fresh one to learn the banking the result is huge amount of blunders, mistakes etc.
resulting in monetary and non-monetary losses for the bank. There is pressure not
only on the new learner but also on the person placed upon with this responsibility.

Ambiguity in Job Design

There is not a clearly defined set of activities for the employees of the bank apart from
a few. Generally the same Person is find working in Cash department and at some
other time in the Govt. Sec.


Apart from the ones discussed in External Factors Evaluation Matrix, the following
threats and opportunities are being faced by the bank currently:

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Wholesale/Corporate banking
The corporate bond market is still in its infancy in Pakistan. Few companies such as
Pakistan Telecommunications Ltd. (PTCL) and Water and Power Development
Authority (WAPDA) introduced corporate bonds for general public and received good
response but no similar initiative was taken by other companies. Market for corporate
bonds needs to be developed as it will offer greater opportunities to the bank.

Joint Ventures
In order to capitalize on the emerging market opportunities, joint ventures offer the
best strategy. Standard Chartered so far has just three joint ventures, one with MCB,
the other one with McDonalds and the last one with the Akbar Group of Companies.
But if we look at some of it competitors, we find out that they have formed a no. of
joint ventures such as Alfalah Bank with 42 and Prime Commercial Bank with 33. So
the bank should also undertake joint ventures in order to be successful opportunist.


High Employees Turnover

As discussed above, the job satisfaction level of the employee is very low resulting in
high turnover which is bad for any organization as there are huge monetary and non-
monetary costs involved in the fresh recruitments.

High charges
The schedules of charges indicate that the fees charged by the bank on the various
services it provides are extremely high. It may result in decrease in the number of its
exiting customers. Further more, this could be very alarming situation for the bank in
case some of the competitors grasped the opportunity and lowered its rates. The result

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would be either the lost of market share or decrease in the charges resulting in
lowering the bank’s income.

Less attractive rate of return

Commercial banks face considerable competition in attracting deposits from
individuals or small investors. In contrast, the Govt. of Pakistan national saving
scheme offers attractive rates of return (approx. 16 to 18 percent annually) on 10-15
year fixed accounts, which banks find difficult to match.

Stiff Competition
SCB is currently facing strict competition from the foreign banks especially the
American who banks enjoy a good market position. Collectively U.S. banks hold
approximately 9 percent of all commercial banks' assets. At present, three American
banks are operating in Pakistan: American Express Bank; Bank of America and

Less Experienced Staff

Owing to huge turnover of the employees, the no. of experienced and well trained
staff is very low. Majority of the staff working in the bank branches is quite young
and inexperienced. If the bank failed to bring down its high employees turnover, then
it would be lacking the most important resources of any organization i.e. the
experienced staff.

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After spending six weeks at different departments of the bank, interacting with the
employees, getting their views, observing the organizational structure and design, I
have come up with the following suggestions that in my view, will definitely improve
a few weaknesses observed in the bank by me.

Flexible Policies
The bank should be adopt flexible policies, specially in the areas of the recruitment,
promotions, evaluation of the employees otherwise the high turnover observed in the
bank will continue to create problems for the bank now and in the future.

Job security
The employees in the organization should be insured job security so that there is no
pressure on the employees while performing their tasks.

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Permanent Hiring
The fresh hiring should be made permanent so that they are secured of their future.
Further the allowances and perquisites attached with the permanent jobs will also
increase the motivation level of the employees.

Job Training Programs

The bank should place emphasis on the organization of effective training and
development programs for its new as well as existing employees so that these are
gradually updated regarding the recent developments in the field of banking.

Perquisites and Allowances

The number of allowances and perquisites for the employees should be increased to
ensure that they put their body and soul in the jobs assigned to them.

Revival of the Charges

The rates for the various charges provided by the bank should be brought down a bit
as it would result in increase in the number of customers of the bank.

Adoption of Effective technology

The current BBS system used by the bank is very slow in processing so my view is
that the bank should try to adopt some other but more effective form of technology in
order to provide comfort to the customers as well as the staff.

The higher authorities should form team-based management rather than centralized
management. It would result in improvement in uplifting the morale of the employees.

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They will be more motivated and involved in all their operations resulting in overall
effectiveness of the organization.

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My Internship Experience
One of the most important aims of the student life is to express himself / herself
correctly and adequately. This was the believe in my mind when I first decided to go
to Standard Chartered Bank to complete my internship program.

Determined, Confident and Persistent in the pursuit of knowledge and learning, I was
on my way to Standard Chartered Bank , Tufail Road Branch in the early morning of
June 17, 2002. Just a day before, I had taken my last paper of final term 3rd semester.
Normally I wanted rest and recreation after the tiring exams but this time I was
anxiously waiting for the start of my internship.

I stepped up the branch with the passion for learning and full commitment. The first
thing that impressed me was the layout of the branch. . Apart from me, a no. of other

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interns have also joined the bank for internship .I had my first introduction with the
floor manager. She assigned me and one of my juniors, who also joined the same
prestigious institution a tough assignment. We had to leave the bank as the work was
to be done in the Mall branch. Full of avidity and conviction, my colleague, Sunaina
Iqbal and me were on our way to the Mall branch. We were asked to meet Miss
Marraim Berq, a Govt. Sec. officer. Her politeness and humbleness inspired us a lot.
After a small discussion, she gave us the details of the work to be done by us. It was a
project based on the data of Government securities for the last two years starting from
July 1st, 2000 to February 2002. Apparently, we felt that it was a small assignment but
when we entered the vaults where the registers of all the SSCs and DSCs were placed,
all our assumptions proved to be wrong. However we were quite determined to
complete the project with in one week as both of us were keen to get back to the main
branch i.e. quail road. We worked there non stop from 9:00 a.m. to 5:00 p.m. After
completing the project in 7 days , we again joined the quail road branch.

After the completion of the first project quite efficiently, the floor manager Fareha
Ramadan, assigned us another project which was even larger than the first one.
However one more intern was included in our team. The job was to update the
previous account no. of 8000 deposits previously kept at ANZ Grind lays bank.

Then I joined sales and service department. Here I got the opportunity of working and
learning from personal financial consultant, Arshad Iqbal.

The first tasked assigned to me by him was the preparation of detailed schedules of
the PKR interest rates offered by different local as well as foreign banks operating in
the country. I was to obtain the information by calling in the banks and asking for the
required information pretending to be a potential customer for those banks. The banks
included the MCB, City Bank, ABM Amro, Agricole Credit, Faisal Bank, Prime
Commercauil bank and Union Bank. It served the purpose of keeping a close watch

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on the offerings of the competitors and whether the bank was in line with those

The second task he assigned to me was a study of all the products and services offered
by the bank and based on that study, the preparation of a comprehensive promotional
letter for the Standard Chartered Bank showing the world class portfolio and services
offered by the bank. The letter prepared by me has been attached at the end of this
term paper. After the preparation of this letter, the next step was to mail merge it to
800 or more advertising concerns in Lahore and outside Lahore.

I performed a no. of different tasks there as Account opening process, Know your
customers, issuance of bank statements, and so.

After working with the personal financial consultant, the next department I moved in
was the Govt. sec. Firstly I was not so eager to work there but now after having done
my internship there, near me it is the department I have enjoyed working a lot. I was
fortune enough to have learned from highly experienced and qualified people.

After spending one and a half week in the Govt. Securities Department, I joined the
BSU (Banking Service Unit). There I spend one week learning about the various
funds transfer processes such as demand drafts, pay orders etc.

The last week of my internship was spent in the lending department. I performed a no.
of tasks. I also prepared the Profile of Niaz Company, which has been given at the end
of the report.

Today when almost five months have passed since the completion of my internship,
when I look back at those days, I find each and every instance as fresh in my mind as
it has happened only a few days before. This tremendous experience composed of six
weeks has further elevated my desire of working in a bank I really enjoyed working in

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such a dynamic environment and will always cherish those moments spend in the
bank through out my life.


Now at the end., when I am almost done with my internship report, I am going to tell
about the problems I encountered during my internship as well as while preparing my
internship report.

The first problem I encountered with was getting the annual financial statements of
the bank. Since a foreign bank, its annual report was not available with the branch I
was working in. For this, I am thankful to the Floor Manager of the bank, who
provided us with a copy of the financial statements of the bank.

Getting the report prepared was the hardest thing I have done in my life. When I have
almost completed my internship report just a few days before the dead line, the hard
disk me computer went corrupt resulting in a dismal situation for me. Fortunately, I
had sent almost 80% of the report in my e-mail accounts as a security measure. I am
thankful to my friends who gave this brilliant idea of saving the material in the e-mail
account. Now it was the most embarrassing moment for me, as I never checked my
mailing account that it contains the data sent by me. Fortunately every thing was
secure in my account. I have to complete the rest of the report in just two days. And I
know what I have to do in giving this final touch to the report.

Anyhow, it was a very learning experience for me that I will never in my entire life.

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NPL is engaged in the business of manufacture and sales of savory snacks foods. It is
a major nationwide player in the corn-based segment of the industry as it accounts for
more than 50% of the market share. Its key objective is the development of its market
share in the corn-based segment of the snack food industry.

Ownership structure comprises of

Mr. Shahid Niaz
Mrs. Lubna Shahid

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Ms. Swaleha Niaz

NPL’s banking group includes three local banks MCB, HBL, and Prime Commercial
Bank. NPL is currently producing “TOP POPS” (launched ten years back) where as it
is planning to introduce a new product “PARTY PUFFS” in the near future. It
depends on the imported raw material mainly from Europe and Far East. Its target
market comprises of primary and secondary school children.



Respected Sir:

After 140 years of unmatched worldwide services, Standard Chartered Bank is proud
to be ranked among the best banks of the world. Our 21 branches from the largest
foreign banking network enable you to access your account from across the country.
The core reason behind our success is no doubt the trust you have placed in us by
giving us the opportunity to serve you. Our competent and friendly working staff
working in 21 branches in Pakistan, is committed to upkeep your trust. Our prime
goal is to serve you better than anyone else as we value your money, time and efforts.

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Our World class portfolio of product and services is especially designed to cater your
needs and offer maximum benefit and convenience. Following is a synopsis of
exciting services that will be of particular interest to your organization;

• Earn high profits, without sacrificing liquidity through “HIGHYIELD” and

“PRIVILEGE” which offer you an unlimited transactions facility absolutely
free of any charges.
• “TIGARAT” especially designed for the business class, offers free Auto
Loans, Cash Pick Up service and Special Bonus Waivers.
• Free ATM card for all the account holders so that you may access your funds
at any time you wish to.
• Your ATM card will bring you exciting discounts across outlets included in
the bargain network.
• Auto Loan offers the lower mark up rate, enabling you to get your dream car
by selecting the payment plan that suits your earnings.

Just give us an opportunity to prove that we do what we claim. You will be pleased
with the dealing of our staff as our long life valued customer. If you have any query,
please feel free to contact the undersigned.

Looking forward to serve you and deliver complete satisfaction.

Yours Sincerely,
MohammadArshad Iqbal
Personal Financial Consultant
Standard Chartered bank

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Bank Magazine; MESA

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Information provided by the employees

My observation

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