SUMMER TRAINING PROJECT REPORT ON

STUDY OF LIABILITY PRODUCTS AND SERVICE QUALITY OF STANDARD CHARTERED BANK.

UNDERTAKEN AT STANDARD CHARTERED BANK SUBMITTED TO Apeejay Institute of Technology, School of Management IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN MANAGEMENT

2011-2013 Under the Guidance of Prof. SONIKA GARGI Apeejay Institute of Technology, School of Management Gr. Noida Submitted By: SONU GOYAL ROLL NO. M2011139 SESSION- 2011-2013

APEEJAY INSTITUTE OF TECHNOLOGY SCHOOL OF MANAGEMEN, UTTAR PRADESH

DECLARATION

I Sonu Goyal student of Apeejay Institute of Technology, School of management Greater Noida here by declare that Study of Liability Products and Service Quality at STANDARD CHARTERD BANK at GURGAON is my original piece of work for the award of PGDM degree. I have completed the project under the guidance of Prof. SONIKA GARGI of my institute.

SONU GOYAL

1.1

DIRECTOR CERTIFICATE

This is to certify that the project work carried out on the Study of Liability Product and Service Quality. Submitted to Apeejay Institute of Technology, School of Management, Gr. Noida. This study was conducted by Sonu Goyal in partial fulfillment of the requirement for the award of Post Graduate Diploma in Management, which is a bonafide work carried out by him under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma.
:

Dr (Prof) Mr. D.N.BAJPAI Apeejay School of Management Gr. Noida

1.2

SUPERVISOR CERTIFICATE

This is to certify that the project work done on Study of Liability Products and Service Quality Submitted to Apeejay School of Management, Gr. Noida by Sonu Goyal in partial fulfillment of the requirement for the award of Post Graduate Diploma in Management, is a bonafide work carried out by him under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma.

ACKNOWLEDGEMENT
Foremost, I am grateful to God for seeing me through my years of education. I dedicate this work to Almighty God. He has been the wind beneath my wings. His Grace and Mercy has brought me thus far and I am grateful.

My deepest appreciation and thanks go to my supervisor, Prof. SONIKA GARGI for his guidance and constructive learning that helped me stay focused from the beginning of this work to the end.

I am highly indebted to PROFESSOR D.N.BAJPAI, Director of APPEJAY INSTITUTE OF MANAGEMENT for his unwavering support and also for his support throughout my education and research work. Thank you all for believing in me.

I also want to thank the Management and staff of STANDARD CHARTED BANK. for their help and contribution in data collection, process designing which resulted into completion of this research.

CONTENTS
Executive summary 1. Introduction Company Profile A word about the competitors 2. 3. 4. 5. Review of literature Objectives Scope Methodology 5.1 Sample 5.2 Research instrument 6. Data collection & interpretation 6.1.1 Comparative analysis of corporate salary Accounts 6.1.2 Comparison of Standard Chartereds Saving Account 6.1.3 Comparison of Standard Chartereds Current account 6.2.1 SERVICE QUALITY Result 6.2.2 Formulation of Hypothesis 6.2.3 Graphical analysis of data & its representation. 6.3 SWOT Analysis. 7. 8. 9. Conclusion Recommandations Limitation Annexure

References

EXECUTIVE SUMMARY
It can be seen in the present scenario of bank Standard Chartered sector that strong market players are strive Standard Chartered to uncover markets and provide all services, combined Standard Chartered innovation, quality, personal touch and flexibility in delivery. The Standard Chartered competition within the national banks, private banks and the foreign players are increasing. Standard Chartered the expectations of the customers are increasing with time & works as a catalyst. In such a scenario the customer would continue to be the centre-point of the business strategy. Keeping Standard Chartered in view an stiff competition, its a miniscale effort from my side through this study under which I have tried to fulfill the following Standard Chartered objectives: A complete comparative analysis of the account of STANDARD CHARTERED bank. To compare the features offered by the saving-Standard Chartereds account of STANDARD CHARTERED bank with those offered by the others. To compare the features offered by the current account of STANDARD CHARTERED bank with those offered by the others. To study the service quality of STANDARD CHARTERED banks corporate salary account. To do a SWOT analysis of STANDARD CHARTERED bank. For the comparison I have visited some of the banks to collect data and also used the internet for additional data for more comprehensive result & comparision . To measure the service quality I conducted a survey for the customers of Standard Chartered and collected data from them.for which quesstionnare was designed. Based on this I have conducted the SWOT analysis.

1. INTRODUCTION
The name Standard Chartered comes from the two original banks from which it was founded and which merged in 1969 The Chartered Bank of India, Australia and China, and The Standard Bank of British South Africa. The Chartered Bank was founded by Scotsman James Wilson follow Standard Chartered the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by another Scotsman John Paterson. Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from finance Standard Chartered the movement of goods from the East to Europe. In those early years, both banks prospered. Standard Chartered Bank has a major branch in Kolkata. Chartered opened its first branches in Mumbai, Kolkata and Shanghai in 1858, followed by Hong Kong and Standard Chartered apore in 1859. With the open Standard Chartered of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered was well placed to expand and develop its business. In South Africa, Standard, have Standard Chartered established a considerable number of branches, was prominent in finance Standard Chartered the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London. Both banks at that time still quite separate companies survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches. There were also longer term effects for both banks as countries in Asia and Africa gained their independence in the 40s till 60s. Each had acquired other small banks along the way and spread their networks further. In 1969, the banks decided to merge, and to counterbalance their exist Standard Chartered network by expand Standard Chartered in Europe and the United States, while continue Standard Chartered their expansion in their traditional markets in Asia and Africa .In 1986 Lloyds Bank of the United Kingdom Standard Chartered made a hostile takeover bid for the Group.. The bid was defeated

however it spurred Standard Chartered into a period of change, include Standard Chartered a series of divestments notably in the United States and South Africa.

2 1.1. COMPANY PROFILE

Standard Chartered bank is a British financial services company headquartered in London, England with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (include Standard Chartered subsidiaries, associates and joint ventures) and employs 73,000 people. Despite its British base, it has few customers in the United Kingdom Standard Chartered and 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire, its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these develop Standard Chartered economies. It now focuses on consumer, corporate, and institutional bank Standard Chartered, and on the provision of treasury servicesareas in which the Group had particular strength and expertise. Standard Chartered have recently signed a sponsorship deal with the football club Liverpool F.C Standard Chartered is listed on the London Stock Exchange, Hong Kong Stock Exchange and the Indian Stock Exchanges and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Hold Standard Chartered.

1.2 A Word about the Competitors

ICICI BANK ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholder Standard Chartered in ICICI Bank was reduced to 46% through a public offer Standard Chartered of shares in India in fiscal 1998, an equity offer Standard Chartered in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for provide Standard Chartered medium-term and long-term project finance Standard Chartered to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offer Standard Chartered only project finance to a diversified financial services group offer Standard Chartered a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structure Standard Chartered alternatives in the context of the emerge Standard Chartered competitive scenario in the Indian bank Standard Chartered industry, and the move towards universal bank Standard Chartered, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal bank Standard Chartered

strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earn Standard Chartered feebased income and the ability to participate in the payments system and provide transaction-bank Standard Chartered services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly feebased services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's finance Standard Chartered and bank Standard Chartered operations, both wholesale and retail, have been integrated in as Standard Chartered entity. Today, ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58 billion (US$ 79 billion) at March 31, 2007 and profit after tax of Rs. 31.10 billion for fiscal 2007. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization*. The Bank has a network of about 950 branches and 3,300 ATMs in India and presence in 17 countries.

ABN AMRO On 29 March 1824 K Standard Chartered Willem-I issued a royal decree create Standard Chartered the Nederlandsche Handel- Maatschappij with the aim of revive Standard Chartered trade between the Netherlands and the Dutch East Indies. In 1964, NHM merged with De Twentsche Bank to form Algemene Bank Nederland (ABN), while

Amsterdam sche Bank and

Rotterdamsche Bank joined to become Amsterdam-

Rotterdam (Amro) Bank. In 1991, these two banks merged as ABN AMRO Bank. Today, ABN AMRO Bank has a powerful presence in world markets, build Standard Chartered on a tradition of stimulate Standard Chartered international trade. Today, with assets over US $504 billion and an AA credit rat Standard Chartered, ABN AMRO Bank ranks among the top 10 banks in the world in size and strength. Our international network comprises 3,568 branches and offices in over 320 cities and 76 countries and territories, with over 100,000 highly qualified staff. As a global bank, we can handle the most complicated cross-border transactions, yet we also understand the subtleties of local markets. HDFC BANK The House Standard Chartered Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Bank Standard Chartered Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC was incorporated in 1977 with the primary objective of meet Standard Chartered a social need that of promote Standard Chartered home ownership by provide Standard Chartered long-term finance to households for their house Standard Chartered needs. It was promoted with an initial share capital of Rs.100 million. HDFC is a professionally managed organization with a board of directors consist Standard Chartered of eminent persons who represent various fields include Standard Chartered finance, taxation, construction and urban policy & development. The primary objective of HDFC is to enhance residential house Standard Chartered stock in the country through the provision of house Standard Chartered finance in a systematic and professional manner, and to promote home ownership. HDFC is ranked 3rd amongst the Asian bank Standard Chartered and finance sector for highest return on equity by Asian money. Its main goal is to develop close relationships with individual households, maintain its position as the

premier house Standard Chartered finance institution in the country, transform ideas into viable and creative solutions, and provides consistently high returns to shareholders & to grow through diversification. Its most valuable assets are its Human Resources and it is its constant endeavor to continuously develop them by lay Standard Chartered strong emphasis on their Train Standard Chartered & Development. HDFC main focus is on their employees' career development so that their aspirations can meet companys goals.

2. REVIEW OF LITERATURE
Measure Standard Chartered Service Quality in Banks: An Assessment of Service Quality Dimensions Service quality has been viewed as a multi-dimensional construct in market Standard Chartered literature. Parasuraman, Zenithal, and Berry (1988) have conceptualized a five dimensional model. The five dimensions are reliability, responsiveness, empathy, assurance and tangibility. Their measurement instrument SERVQUAL is based on the five dimensional model. Gronroos (1982) had identified two service quality dimensions functional quality and technical quality. Functional quality represents the perception of the manner in which the service is delivered. Technical quality on the other hand represents the outcome of the service act or what the customer receive Qs in the end. Brady and Cronin (2001) term it as outcome quality. The five dimensional model of Parasuraman et al. which has become almost the standard way of measure Standard Chartered service quality, essentially captures the functional quality. There is more attention on the functional service quality, particularly in the more developed economies. But many products and services in the emerge Standard Chartered markets compete at their expected product levels (Kotler, 2003). In some industries, the competition is at the basic product levels or core benefits. Market differentiation can be achieved through the way products and services are delivered; create Standard Chartered satisfy Standard Chartered customer experiences about the company, employees and the delivery process; but this may not create the necessary competitive advantage for growth. Even in the business environments where the competition is at the augmented product level, it would be pertinent to know the relative strengths of industry specific aspects of what is offered versus how it is offered. Whether a below expectations service outcome is considered more important by customers or if an improper service delivery process and employee interaction is viewed more serious. Focus only on functional quality

dimensions of service quality, therefore appears to be misplaced. Only a few studies have recently tried to empirically explore the outcome dimension of service quality (Kang and James 2004; Jain 2005). The present study fills the gap and looks at the relative importance of service quality dimensions in the Indian bank Standard Chartered sector. The study that was conducted had final sample consist Standard Chartered of 131 usable questionnaires. The primary data was collected by personally administer Standard Chartered the questionnaire. Mean age, household income and education level of the sample is 29 years, Rs 21,000.00 and some college education respectively. Government service, private service and own business is represented by 25, 25 and 26.5 percent of the participants. The sample had 91% male respondents. Nationalized banks represent 97% of the banks patronized by the participants. Data was collected in the month of February 2005. Evidence of convergent validity was examined through simple correlation with the independently measured overall quality score. Correspond Standard Chartered correlations with independently measured overall value score were used for observe Standard Chartered discriminate validity. It was found that the service quality dimensions had internal consistency; however outcome quality could not establish convergent validity and discriminate validity conclusively. The results buttress the multidimensional structure of service quality. Though some service quality dimensions are found to be similar to the ones posited in five dimensional model, the model as such is not supported in bank Standard Chartered services. As expected, in the study, the functional quality dimensions of responsiveness, assurance, empathy and tangibles do not have much significance for customers. Results however do not support the proposition that outcome quality dimension would emerge to be the important dimension. Reliability is found to be the vital dimension in customers perception of service quality. The find Standard Chartered of this study have important managerial implications. Customers regard reliability to be the most important dimension of services in banks. Reliability dimension is the descriptor of the functional quality and outcome quality (Brady and Cronin, 2001). This implies that the banks should be able to perform what they purport to perform whether it is the functional quality aspect or the outcome quality aspect. Ignored in widely used measurement instruments, outcome quality

features such as there should not be queues for withdrawals, make Standard Chartered demand drafts etc have been found to be lag Standard Chartered behind the customers expectations and therefore warrant improvement. A moderate sample and a non parsimonious scale are some of the limitations of the study. The operationalization of outcome quality needs improvement through further exploratory work.

3. OBJECTIVE OF THE STUDY:

. The objectives of the project are: To conduct comparative analysis of the salary account of STANDARD CHARTERED bank. To compare the features offered by the saving account of STANDARD CHARTERED bank with those offered by the others. To compare the features offered by the current account of STANDARD CHARTERED bank with those offered by the others. To study the service quality of STANDARD CHARTERED banks corporate salary account. To conduct a SWOT analysis of STANDARD CHARTERED bank

4. SCOPE
The project is mainly concentrated on the corporate sales of the bank i.e. on the MPOWER account, which is the salary account of the bank, its comparative analysis and SWOT analysis. It also include the service quality delivered to and perceived by its customers us Standard Chartered the serve-qual tool and comparison of rest of the liability products with similar products of other banks namely ICICI Bank, HDFC Bank, ABN AMRO Bank, and YES Bank. This would help the bank to measure its stand Standard Chartered as compared to its competitors and find out where it lacks and needs improvement. The survey conducted on its customers of salary accounts provided valuable information as, what features are liked by them and which are not, and what are the areas where they feel Standard Chartered needs improvement. This exercise also made its customers feel that Standard Chartered wants to improve and is look Standard Chartered forward to their feedback so in a way it helped in improve Standard Chartered its relationship with its customers.

5. METHODOLOGY

1. For the comparative analysis of a. Salary account b. Saving Standard Chartered account c. Current account I visited the banks to meet bank personnel who could guide me about the various features offered by them as part of their liability products.

2. A well documented service quality model of Parasuram et.al.(1985) was used as a conceptual framework for measure Standard Chartered service quality in Standard Chartered Bank. Here the model has helped us to analyze the gap between the service quality expected by the management and its actual perception by the customer. 3. With the help of data so collected a SWOT analysis was done after visit Standard Chartered various banks, talk Standard Chartered to various people through personal interviews. 5.1 SAMPLE The sample Standard Chartered frame was provided by the bank from its data base out of which 30 companies were surveyed consist Standard Chartered of approximately 10 employees each. The study was conducted with the cooperation of the management and Standard Chartereds customers who took the valuable time out of their schedules to fill my questionnaire and give their feedback about Standard Chartereds services.

5.2 THE RESEARCH INSTRUMENT The questionnaire used in this study followed the five basic dimensions of SERVEQUAL instrument developed by Parasuram. The instrument includes 7 items on special instruction from my industry guide because he wanted the questionnaire to be as short as possible so that the customers are not bothered much and they dont feel irritated while answer Standard Chartered them. The customers and management were asked to mark their levels of perception and expectation respectively on a five-pointer scale. The gap hence found between the perception and expectation was administered consistently to find out the mean Standard Chartered full results. The questionnaire is given in the annexure.

6. DATA COLLECTION AND INTERPRETATION

For the first part which is the comparative analysis of liability products, data was collected by visit Standard Chartered the banks and find Standard Chartered on their respective websites. For the second part i.e. SERVE QUAL, primary data from 300 respondents was collected in 30 companies to measure the service quality gap. The number of respondents from the management side was 12, which were the part of corporate salary team. Personal interviews with some employees were also conducted to know the problems they encountered in detail. The response rate both at the companies I visited and at the bank was 100%.Reliability was tested us Standard Chartered one way ANOVA to test whether any significant difference exist in the perceptions and expectations of customers and management respectively for all the parameters of SERVE QUAL model and are shown separately. And finally on the basis of the find Standard Chartered of the study a SWOT analysis was conducted. The names of the companies from which the data was collected are given in appendix. 1. Given below are the features of different liability products offered by Standard Chartered bank and after ward their comparison with similar products of other banks namely ICICI Bank, HDFC Bank, ABN AMRO Bank, and YES Bank. a) CORPORATE SALARY ACCOUNT This basically refers to open Standard Chartered of different companies employees account by provide Standard Chartered them facilities, benefits & attractive schemes and various bank Standard Chartered services, for open Standard Chartered of such account certain criteria must be fulfilled such as in

case of Standard Chartered Bank is concerned the follow Standard Chartered rules applies. The minimum number of employees of the corporate, whose salary accounts are to be opened, should be 20. The average salary credit in to the employees orange salary account should be equal to or higher than Rs 20,000/- per month. Where there is a joint account holder, the normal KYC norms need to be adhered to for the joint account holder. Preferably corporate to have a current account with Standard Chartered Bank.

There are two types of salary account offered by Standard Chartered Bank. i) Advantage salary account. (Avg salary less than 20,000) Zero balance account. Free unlimited ATM transactions on the Standard Chartered Bank ATM network and corporation bank ATM network. 6 free ATM transactions per month at 20,000 (cirrus)ATMs Free Standard Chartered international debit card. Re-issue charged at Rs.200/- per request. Shop Standard Chartered convenience at over 200,000 merchant locations. Free issue of personalized cheque books. Free transfer of funds across all the branches of Standard Chartered bank. Free customer service line Internet bank Standard Chartered facility. Free bill pay service at select centers. Overdraft facilities to an extent of 50% of the last salary credit charged at 18% for number of days overdrawn & service charge of Rs.100/- for every month that the account is overdrawn. Internet bank Standard Chartered facility (Mi- bank) Free customer service

ii) Orange salary account (Average salary more than 20,000) Zero balance account. Free unlimited ATM transactions on all Standard Chartered ATMS. Free issue of multi city personalized payable at par cheques . Free of charges for pap payments. Free transfer of funds between accounts across all 421 networked branches. (AAA bank Standard Chartered.) Free for life credit card based on the applicants eligibility. AAA cash deposits are restricted to two transactions with a value not exceed Standard Chartered RS. 50,000/- per month. Service charge of RS 100/- for every month that the account is overdrawn.

b) STANDARD CHARTEREDS SAVING ACCOUNT

Standard Chartered Bank has a portfolio of bank Standard Chartered solutions and a range of offer Standard Chartered for people from all walks of life, with a view to make Standard Chartered bank Standard Chartered an effortless task. Whether you require a simple save Standard Chartered account or a sound bank Standard Chartered partner, Standard Chartered Bank has the perfect solutions and products to ensure a wealthy future. It has two types of save Standard Chartered account Orange save Standard Chartered account Freedom save Standard Chartered account

Features of these save Standard Chartered accounts are as follows: i) Orange save Standard Chartered account: Quarterly Average Balance of Rs.5000/- to be maintained in the account. Unlimited ATM transactions on all Standard Chartered ATMs. Free Unlimited ATM transactions in over 25,000 (Cirrus) ATMs in India. Shop Standard Chartered convenience at over 200,000 merchant locations, with the Standard Chartered International Debit card. Free and unlimited issue and usage of Payable at Par (PAP) Cheques. Free Electronic Bill Payment service at select centers. Free Transfer of funds across all networked branches. Free Personal Assistance Service Smart serv at select centers* Free Statement of Account through E-mail at no charge. Customer RTGS (Real Time Gross Settlement) transactions at concessional rates. Free issue of Personalized cheque books. Mini-bank - Internet bank Standard Chartered facility Customer Service Line facility Free for life Credit Card based on the applicants eligibility. Penalty for non-maintenance of the quarterly average balance is Rs.600 + taxes per quarter. Up gradation from any other save Standard Chartered account of the Bank to the Orange Save Standard Chartered account at no additional cost.

ii) Freedom Account Quarterly Average Balance to be maintained in the account reduced to zero. (Zero Balance Account). Unlimited ATM transactions on all Standard Chartered ATM's. Free four ATM transactions per month in over 25,000 other Bank ATM's in India.

Shop Standard Chartered convenience at over 200,000 merchant locations, with the Standard Chartered International Debit card. Free issue of personalized cheque books. Free Electronic Bill Payment service -at select centers. Free Transfer of funds across all networked branches. Free Statement of Account through E-mail at no charge. Mini Bank - Internet bank Standard Chartered facility Customer Service Line facility Conversion from other type of accounts to the Freedom Saving Standard Chartered Account is not allowed. Annual Maintenance Charge of Rs.1000/- + taxes to be collected in advance, upfront from the Customer every year.

C) STANDARD CHARTEREDS CURRENT ACCOUNT

In today's fast-paced world, business regularly requires one to receive and send funds to various cities in the country. Standard Chartered Bank Orange Current Account gives one the power of inter-city bank Standard Chartered with as Standard Chartered account and access to more than 200 cities. From personalized cheques that get treated at par with local ones in any city where we have a branch, to Free collection (if instruments are lodged directly) of outstation cheques (payable at branch locations), to free inter-city funds transfers of up to 200 lakhs per month, the banks priority services have become the benchmark for bank Standard Chartered industry. There are three products under Standard Chartereds current account, they are: General current account Advantage current account

Orange current account

Features of Standard Chartereds current account are: i) General account Access your account from any of the networked branches across India Deposit cash at any of the branches (networked) across India International debit card cum ATM card to access your account from the wide network of Standard Chartered bank ATMs and self bank Standard Chartered across the country Enjoy FREE 24- hour Phone Bank Standard Chartered and Net Bank Standard Chartered facilities that helps you check your balance and other details Attractive rates for inter-city/inter-branch transactions (Please refer Service Charges chart for details) Utilize a safe deposit locker (available at selected branches) for your valuables and important documents Personalized cheque book for enhanced security Cash pick up and delivery services at selected centers ( subject to approval of RBI) ii) Advantage current account

Free remittance limit (DD/ PO/ PAP/ RTGS/ EFT/ NEFT) of Rs. 50 lakhs p.m.; power packed features with potential to save up to Rs.1.20 lakhs p.a. Free collection of outstation cheques at all branches of the Bank on local collection basis. # Free unlimited transfer of funds within the Bank Easy anywhere cash deposit and withdrawal (up to specified limit for self only) Personalized cheque books and personalized payable at par cheques Free SMS alerts * Free stand Standard Chartered instructions facility * for regular payments Free ATM cum debit card with access to any ATM, of any bank ^

Avail safe deposit locker facility (where available) on a preferential basis Free 24 hours Customer Service Line (toll free) Multiple channels to access your account and many more

Features indicated above are available against stipulated Quarterly Average Balance. Non-maintenance attracts penalty besides charges will be levied for facilities. Please check for details. # Customers to lodge the cheques directly with Standard Chartered Bank at the location at which the cheque is payable. * Conditions apply. Bank reserves the right to change, modify or delete some of the features, without notice. Save Standard Chartered of Rs. 1.2 lakhs p.a. is calculated at 20ps % and is subject to usage of full limit of free remittance of Rs.50 lakhs p.m. ^ On the cirrus network

iii) Orange current account

Free remittance limit (DD /PO /PAP /RTGS /EFT / NEFT) of Rs.2 crores per month; power packed feature with potential to save upto Rs.4.8 lakhs per annum.*

Free collection of outstation cheques at all branches of the Bank on local collection basis # Free mini Bank Internet Bank Standard Chartered facility* Free unlimited transfer of funds within the bank Easy anywhere cash deposit and withdrawal (up to specified limit for self only Free personalized cheque book (include Standard Chartered PAP cheques) Avail safe deposit locker facility (where available) on a preferential basis

Free ATM cum debit card with free access to any ATM of any bank ^ Free 24 hours Customer Service Line (toll free) Multiple channels to access your account. Free stand Standard Chartered instructions facility for regular payments and many more

* Features indicated above are available against stipulated Quarterly Average Balance of Rs 1 lakh. Non - maintenance attracts penalty besides charges will be levied for usage of facilities. Please check for details #Customers to lodge the cheques directly with Standard Chartered Bank at the location at which the cheque is payable. * Conditions apply. Bank reserves the right to change, modify or delete some of the features, without notice. * Saving Standard Chartered of Rs.4.8 lakhs per annum is calculated at 20 ps. percent and is subject to usage of full limit of free remittance package of Rs.200 lakhs per month ^ On the Cirrus network.

COMPETITIVE ANALYSIS
1.1 Comparative analysis of STANDARD CHARTERED Banks salary account features with other banks.
I) STANDARD CHARTERED V/S ICICI

FEATURES Min balance to be maintained ATM card Internet Chartered Mobile Chartered Online transfer of funds Phone Chartered Reimbursement account Not available bank Available bank Standard Available bank CHARTERED Zero

STANDARD Zero

ICICI

Free of cost to every account Free holder Standard Available

of

cost

to

every

account holder Available Available Available Available Available

Standard Available

OD facility

Available, at 18% for no. of Not available days overdrawn Available

Cash delivery and cheque pick Not Available up facility

Cash withdrawal charges from First 6 withdrawals free of cost First withdrawal is free rest ATM from any cirrus network ATM are charged at Rs.5 per 1000 subject to min. of Debit card fees for joint Free Rs.150 Rs.99 per annum Free

account holder Issue of personalized cheque Free books Issue of PAP cheque books Free for orange salary account Rs.2 per leaf for every holders and Rs.2 per leaf for account holder advantage salary acc.

*Reimbursement account: If you opt to disburse/reimburse the travel, food etc. expenses via reimbursement accounts, a reimbursement account can be opened simultaneously along with the Salary Account save Standard Chartered bank account, which would be linked together with the debit card already held by your employee.

Though features of both the banks are almost similar but the repute enjoyed by ICICI is commendable. The reason for this could be the time span by which ICICI came earlier and cashed on the opportunity of establish Standard Chartered it self in all the spheres. Other reasons could be: 1. Wide network of its branches and ATMs all over India, which makes it reliable. 2. Strong brand recognition in the minds of people. 3. Its facility of let Standard Chartered the customer transfer its fund online instantaneously where as in case of Standard Chartered it takes one whole day to

make it effective, though both the banks provide this facility of net bankStandard Chartered. 4. A positive point with Standard Chartered is that it offers free PAP cheque books to all of its orange salary account holders where as it is chargeable in case of other banks. 5. While talk Standard Chartered to some customers of ICICI they complained about some hidden charges, which they said they never mentioned in the begin Standard Chartered (though they refused to disclose what these charges were.)

II) STANDARD CHARTERED V/S HDFC

HDFC, one of the very popular brands in terms of corporate sales as well as other products, has features more or less same as Standard Chartered but enjoys a very reputable stature. Like Standard Chartered it also has two products in case of salary accounts, classic and regular. Under classic, employees have Standard Chartered monthly income Rs.7500 to Rs.14999 open their accounts while in regular; employees have Standard Chartered their monthly income above Rs.15000 have their accounts. Its comparison can be done on follow Standard Chartered grounds:

FEATURES Minimum maintained Statement of accounts balance to be CHARTERED Zero

STANDARD

HDFC Zero

Quarterly free of cost to every Six monthly to classic salary employee account holders and quarterly to regular salary account holders

Cash

withdrawal

charges First 6 withdrawals free of cost First 4 withdrawals free of from any cirrus network ATM cost from any cirrus network ATM Free for orange salary account Chargeable for every body holders and Rs.2 per leaf for

from ATM PAP cheque books

advantage salary acc Cash delivery and cheque Not available pick up facility Free phone bank Standard Available Chartered Free net bank Standard Available

Available at selected centers Available Available Only for regular salary

Chartered Issue of international debit Free for every body card Safe deposit lockers Not Available account holders Subject to availability at 1.5%+ 12%

Available, at 18% for no. of Available OD facility days overdrawn

(service charge) for no. of days overdrawn

HDFC again is one of the most renowned and respected banks in our country and has the advantage of com Standard Chartered in to existence earlier, over Standard Chartered. The brand value that it enjoys is commendable and it seems that it is one of the reasons why people prefer HDFC over Standard Chartered. Apart from this other reasons contribute Standard Chartered to it could be: 1. Wide network of its branches and ATMs all over India, which makes it reliable. 2. Strong brand recognition through advertisements and other sources. 3. RBI guide lines doesnt allow STANDARD CHARTERED which is an MNC bank to open their ATMs in company premises which is not the case with banks like HDFC and ICICI hence companies which are already with these banks and enjoy this facility cant switch over even if they want to.

III) STANDARD CHARTERED V/S YES BANK

FEATURES Minimum maintained ATM card balance to be CHARTERED Zero

STANDARD

YES BANK Zero

Free of cost to every account Free of cost to every account holder holder free of cost from any masters network.

ATM transactions from other First 6 withdrawals free of cost N number of withdrawals banks Reimbursement save Available from any cirrus network ATM

Standard Chartered account Not available for expense-reimbursement PAP cheque books

Free for orange salary account Not available holders and Rs.2 per leaf for advantage salary acc Not available

Cash delivery Internet Chartered Phone Chartered Mobile Chartered Financial plan bank bank bank

Available Available, chargeable Available, chargeable

Standard Available Standard Available

Standard Available Standard Not Available

Available, chargeable Available

Chartered for all employees once a quarter Free e-mail alerts Available Available

Issue of international debit Free for every employee card

Free for selected employees

Available, at 18% for no. of Not available OD facility days overdrawn

YES bank like Standard Chartered is new on the ground and is similarly strivStandard Chartered for existence. Though within a short span, it has gained a strong foothold but still it has a long way to go. One of the main differences between their features is the eligibility criterion. YES bank doesnt open the corporate salary account of a company if its average salary (total salary be Standard Chartered uploaded divided by no. of employees) is less than Rs.15000. which is not the case with Standard Chartered. Due to the availability of separate product, which is advantage salary account, Standard Chartered entertains even those. On the other hand YES Bank gives unlimited ATM transactions with its associated banks to its customers as it knows that it doesnt have sufficient number of ATM outlets, where as STANDARD CHARTERED allows only 6 ATM transactions to be free of cost.

V) STANDARD CHARTERED V/S ABN AMRO BANK

FEATURES Minimum balance to be maintained ATM card ATM transactions CHARTERED zero

STANDARD ABN AMRO BANK Zero

Free of cost to every account Free for every body holder from First 6 withdrawals free of cost Free with UTI Bank ATMs, from any cirrus network ATM from others it charges Rs.26 per transaction

other banks PAP cheque books

Free for orange salary account Not available holders and Rs.2 per leaf for

advantage salary acc Issue of free Personalized Available cheque books Free phone bank Standard Available Chartered Free net bank Standard Available Chartered Statement of accounts Free, quarterly Available, at 18% for no. of days OD facility D.Ds/P.Os overdrawn

Available, Rs.20 for issue of next cheque book Available Available Free, quarterly Not available

2, free of charge for an amount Available, but not free not exceed Standard Chartered Rs.10, 000

As we can see that features of Standard Chartered and ABN Amro bank are almost same but both the banks are new and have a long way to go. i. One major difference between them is their ATM facility, Standard Chartered gives minimum 6 free cash withdrawal from cirrus network whereas ABN Amro gives free cash withdrawal only from UTI besides itself. Since the bank is new

and doesnt have a good ATM network it should work on establish Standard Chartered its own network. ii. iii. Standard Chartered bank gives the OD facility where as ABN Amro doesnt. Standard Chartered offers 2 D.Ds/P.O.s free of cost where as ABN Amro doesnt.

6.1.2. Comparison of Standard Charterers saving Standard Chartered account with the saving Standard Chartered account of other banks

ii) STANDARD CHARTERED V/S YES BANK

FEATURES NO. OF PRODUCTS

STANDARD CHARTERED Two: account orange sav

YES BANK

Standard Two: sav Standard Chartered Chartered account.

Chartered account and freedom account, gold sav Standard

Average balance

quarterly

account Rs.5,000 on orange, and nil for Rs.10,000 for sav Standard freedom Chartered Rs.100000 account for gold and sav

Fee for non maintenance of Rs.600 per quarter quarterly average balance

Standard Chartered account. Rs.300 for sav Standard Chartered account and Rs.600 for gold sav Standard

Statement of account ATM usage

Chartered account. Quarterly free, and monthly e- Quarterly free for both. statement free (if asked for). 4 free for freedom account, Unlimited free on all the unlimited free on cirrus for banks in India. orange account holders ;un limited from Standard for sav Standard Chartered Free for first year, then Rs.150 Rs.149 there after.

Regular debit card

Chartered account, free for gold sav Standard Chartered account. Rs.799

Gold debit card D.D.

Rs.799 Rs.50 for amt up

to Min Rs.50 then Rs.2.5 per for 1000 sav for Standard gold sav

Rs.10,000;Rs.2.50 per 1000 for 1000 for amt greater than 50,000 per

amt up to 50,000;Rs 2 per 1000 Chartered account and Rs.1.5

Standard Chartered account. Pay order (P.O.) Same as above. 5 for Branch transaction free for sav sav Standard Standard

Chartered account and 10 free gold Chartered account, per year Free for both the account 5 transactions for sav holders Standard Chartered account and 10 transactions for gold sav Personalized cheque books Balance enquiry Free Free Standard Chartered account are free per year Free Free

iii) STANDARD CHARTERED V/S ABN AMRO

FEATURES NO. OF PRODUCTS

STANDARD CHARTERED Two: orange sav Standard Chartered account and freedom

ABN AMRO BANK Two: flex plus and flex advantage account Rs.10000 for flex plus and nil for flex advantage. Rs.300 if its greater than 7500/-, Rs.400 if its greater than 5000 and Rs.500 if its less than 5000. Quarterly free, monthly estatement free. Free on ABN AMRO and UTI withdrawal,

Average quarterly account balance Fee for non maintenance of

account Rs.5,000 on orange, and nil for freedom Rs.600 per quarter

quarterly average balance Statement of account ATM usage Quarterly free, and monthly estatement free (if asked for). 4 free for freedom account, unlimited free on cirrus for orange account holders ;un limited from Regular debit card Standard Chartered Free for first year then Rs.150 per annum.

Rs.180

D.D.

Rs.50

for

amt

up

to

Rs.50 on own branches 0.25% on others branches.

Rs.10,000;Rs.2.50 per 1000 for amt up to 50,000;Rs 2 per 1000 for Pay order (P.O.) Branch transaction Personalized cheque books Balance enquiry amt greater than 50,000 Same as above. Free for both Free Free

Free Free Rs.5 on master card ATMs.

iv) STANDARD CHARTERED V/S ICICI BANK

FEATURES NO. OF PRODUCTS

STANDARD CHARTERED Two: orange sav

ICICI BANK

Standard Three: category A, B and C.

Chartered account and freedom Average balance quarterly average balance Statement of account statement free (if asked for). quarterly account account Rs.5,000 on orange, and nil for Rs.5000 for A, Rs.2000 for B, freedom and Rs.1000 for C. Rs.750 per qtr for A & B and Rs.100 per qtr for C. Quarterly free and monthly e- Free physical statement per qtr otherwise Rs.200 per month for physical form. Free ATM usage e-statement per month. 4 free for freedom account, Rs.20/month for cash

Fee for non maintenance of Rs.600 per quarter

unlimited free on cirrus for withdrawal & and Rs.60 for orange account holders ;un same with non partner banks. limited Chartered from Standard

Regular debit card D.D.

Free for first year then Rs.150 Rs.99 per annum for all the per annum. Rs.50 for amt up products. to Rs.2 per thousand rupees or

Rs.10,000;Rs.2.50 per 1000 for part thereof, subject to a amt up to 50,000;Rs 2 per 1000 minimum of Rs.50 Branch transaction for amt greater than 50,000 Free for both Rs.2.50/ thousand, min Personalized cheque books Free of subject Rs.30 to

and max of Rs.10000 2 payable at par cheque books of 25 leaves each free in a quarter, Rs.50/- for additional cheque book of 25 leaves. Rs.10 with partner banks & Rs.25 with non partner banks.

Balance enquiry

Free

v) STANDARD CHARTERED V/S HDFC BANK

FEATURES NO. OF PRODUCTS

STANDARD CHARTERED Two: orange sav account

HDFC BANK

Standard Three products: regular, sav Standard Chartered max; each of which are further divided into option 1 and 2.(I have

Chartered account and freedom Standard Chartered plus & sav

taken comparative product that is option 1 of regular sav Average balance quarterly average balance Statement of account Quarterly free and monthly e- Monthly statement free (if asked for). Collected statements from to be branch. quarterly Standard Chartered acc.) account Rs.5,000 on orange, and nil for Rs.5000 freedom Rs.750 per qtr.

Fee for non maintenance of Rs.600 per quarter

Quarterly statements sent by ATM usage post 4 free for freedom account, First 4 withdrawals free of cost unlimited free on cirrus for from any cirrus network ATM orange account holders ;un limited Regular debit card D.D. from Standard Chartered Free for first year then Rs.150 Rs.100 plus taxes per annum. Rs.50 for amt up to Rs.50 for amt up to 10000, Rs.10,000;Rs.2.50 per 1000 for Rs.75 for amt greater than amt up to 50,000;Rs 2 per 1000 10000 and up to up 50000, Rs. for amt greater than 50,000 2.50 per 1000 or part thereof (Min Rs.150) for amt greater Pay order (P.O.) Branch transaction Same as above. Free for both than 50000 Same as above. Free 3 free in the qtr & Rs. 60 per additional transaction on non-maintenance balance Personalized cheque books Balance enquiry Free Free of Min (cash

deposit/withdrawal) Free, Rs.5 per leaf on non maintenance of Min balance Free

6.1.3. The comparison of Standard Chartereds current account with similar product of other banks is given below:

I) STANDARD CHARTERED V/S HDFC BANK

FEATURES Number of products Average quarterly balance

STANDARD

HDFC

CHARTERED Three: general, advantage and Four: plus, trade, premium, and orange Rs.10000 for general regular CA, Rs.100000 for plus, Rs.40000 trade, & Rs.25000 Rs.10000 for for premium,

Rs.50000 for advantage CA, & for Rs.100000 for orange CA

regular Fee for non maintenance of Rs.750 pq for GCA, Rs.1500 pq Rs.6000 for plus, Rs.1200 for AQB Statement of account Issue of cheque book for ACA, & Rs.4000 pq for trade, Rs.900 for premium and OCA. Rs.750 for regular. Free once in a month (physical Free once in a month or e-mail) Rs.2.5 per cheque leaf for GCA PAP cheque books; 300 leaves and free for others free pm for plus, 200 leaves free pm for trade, 100 leaves free pm for premium and Rs.2 per ATM usage Free usage of leaf for regular Standard Free usage of HDFC bank

Chartered, Rs.45 on withdrawal ATMs. from other banks Issue of international debit Free for 1st year, Rs.150 there Free for first year card after

Transfer from one account to Free for all other (intercity) D.D/P.O. Free as per schedule for GCA, free up to 50 lkhs per month

Free for all Free up to 50 DDs per month. Above 50 transactions, charges

then charges as per schedule for @ Rs. 25/- per DD for plus, rest, in case of ACA and for Free up to 30 DDs per month. OCA free up to 200 lkhs then Above 30 transactions, charges charges as per schedule on the @ Rs. 25/- per DD for trade; greater amount. DD Amount Up to Rs. 50,000 charges Rs. 40/- per DD, Above Rs. 50,000 and up to Rs. 100,000- Rs. 25/-, Above Rs. 100,000- Free for premium and DD Amount Up to Rs.50,000 charges Rs.40/- per DD, Above Rs.50,000 Rs.100,000Charges payments for PAP and Rs.25/-, up to Above

Rs.100,000- Free for regular. cheque Rs.0.50/1000 with a min of Free in the manner as stated Rs.5 per payment in case of above. GCA, free up to cumulative value of 50 lakhs pm then same is followed as in GCA, for OCA free up to a cumulative value of 200 lakhs pm then same is followed as in GCA. Rs.15 for all

Balance enquiry

Rs.25 for all

II) STANDARD CHARTERED V/S ABN AMRO BANK

FEATURES Number of products

STANDARD

ABN AMRO

CHARTERED Three: general, advantage and Three: value + silver 40, value orange + gold 100, and value + gold for general 500. , Rs.40000 for value + silver 40, for and Rs.500000 for value + gold

Average balance

Rs.10000 Rs.100000

Rs.50000 for advantage ,& Rs.100000 for value + gold 100 orange(quarterly) 500(daily) Fee for non maintenance of Rs.750 pq for GCA, Rs.1500 pq Rs.250-Rs.750 pm for value AQB for ACA, & Rs.4000 pq for +silver, Rs.500-Rs.1200 pm for OCA. Statement of account Issue of cheque book ATM usage value+gold100, Rs.1000Rs.3000 for value + gold 500. Free once in a month(physical Free once in a month. or e-mail) Rs.2.5 per cheque leaf for GCA Only payable at par cheque and free for others Free usage of books( charges given below) Standard Free usage at ABN AMRO and

Chartered, Rs.45 on withdrawal Rs.5 at UTI banks and Rs.20 at from other banks cirrus network. st Issue of international debit Free for 1 year, Rs.150 there Not available card other (with in own bank, intercity) D.D/P.O. Free as per schedule for GCA, Rs.200000 pm at 0.20% with of Rs.50 for after Free, unlimited Transfer from one account to Free for all

free up to 50 lakhs per month min

then charges as per schedule for value+silver40; Rs.2000000 pm rest, in case of ACA and for at 0.15% with min of Rs.50 for OCA free up to 200 lakhs then value + gold 100; Rs.4000000 charges as per schedule on the pm at 0.15% with min of Rs.50. Charges payments for PAP greater amount. cheque Rs.0.50/1000 with a min of Rs.225 for 25 leaved cheque Rs.5 per payment in case of book for value+ silver 40, same GCA, free up to cumulative cheque book free for the rest.

value of 50 lakhs pm then same is followed as in GCA, for OCA free up to a cumulative value of 200 lakhs pm then Balance enquiry same is followed as in GCA. Rs.15 for all Rs.5 at UTI and Rs.20 at cirrus network.

IV) STANDARD CHARTERED V/S YES BANK

FEATURES Number of products Average quarterly balance

STANDARD

YES BANK

CHARTERED Three: general, advantage and Four: CA 25, CA 75, CA 200 orange Rs.10000 for general and CA 500. CA, Rs.25000, Rs.75000, Rs.200000

Rs.50000 for advantage CA, & and Rs.500000 respectively for Rs.100000 for orange CA the above products. Fee for non maintenance of Rs.750 pq for GCA, Rs.1500 pq Rs.1000, Rs.1500, Rs.2000, and AQB Statement of account Issue of cheque book ATM usage for ACA, & Rs.4000 pq for Rs.4000 respectively for the OCA. above products Free once in a month(physical Free once in a month. or e-mail) Rs.2.5 per cheque leaf for GCA Rs.2 per leaf for CA 25 and and free for others Free usage of Chartered, Rs.45 on withdrawal from other banks Issue of international debit Free for 1st year, Rs.150 there Information not available. card after unlimited free for the rest. Standard Information not available.

Transfer from one account to Free for all other (intercity)

Rs.25

lakhs

per

month

subsequent 0.50 per Rs.1000 for CA 25, Rs.50 lakhs per month subsequent 0.50 per Rs.1000 for CA 75, and unlimited for the rest. DD:2

D.D/P.O.

Free as per schedule for GCA,

Free

Per

Month for

free up to 50 lakhs per month Min-Rs.100 Max-Rs.5000

then charges as per schedule for CA 25, 5 Free Per Month rest, in case of ACA and for subsequent Rs.1.75 per rs.1000 OCA free up to 200 lakhs then or part there of Min- Rs.100 charges as per schedule on the Max-Rs.5000 for CA 75, 5 Free greater amount. Per Month subsequent Rs.1.50 per rs.1000 or part there of Min- Rs.100 Max-Rs.5000 for CA 200 and free for CA 500. PO: 2 Free Per Month Subsequent 0.75 per Rs.1000. Min- Rs.75 Max- Rs.5000 for CA 25, 5 Free Per Month. Subsequent 0.75 per Rs.1000. Min- Rs.75 Max- Rs.5000 for Charges payments for PAP CA 75 and free for the rest. cheque Rs.0.50/1000 with a min of Free unlimited Rs.5 per payment in case of GCA, free up to cumulative value of 50 lakhs pm then same is followed as in GCA, for OCA free up to a cumulative value of 200 lakhs pm then Balance enquiry same is followed as in GCA. Rs.15 for all Information not available.

FINANCIAL ANALYSIS
LIQUIDITY RATIOS A liquidity ratio measures the ability of the firm to meet its current obligations (liabilities). The most common ratios that indicate the extent of liquidity or lack of it are 1) CURRENT RATIOS 2) QUICK RATIOS 3) CASH RATIOS CURRENT RATIOS Current ratio is calculated by divide Standard Chartered current asset by current liabilities. Current ratio = Current asset/Current liabilities. Current Ratio = 27.62 PROFITABILITY RATIOS Profitability ratios are used to asses a business ability to generate earn Standard Chartered as compared to expenses over a period over a time. The various profitability ratios that we will use are 1) Return on net worth 2) Interest spread 3) Earn Standard Chartered per share 4) Net profit margin NET PROFIT MARGIN

Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the net profit margin is, the more effective the company is at convert Standard Chartered revenue into actual profit. The net profit margin is a good way of compare Standard Chartered companies in the same industry, since such companies are generally subject to similar business conditions. However, the net profit margins are also a good way to to compare companies in different industries in order to gauge which industries are relatively more profitable. The profit margin is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operate Standard Chartered and finance Standard Chartered arrangements vary so much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little mean Standard Chartered. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss

=78%
As can be seen that from the data, in 2005-06 the Net profit margin of Standard Chartered was just 8.7% but in 2006-07 and 2007-08( 67% and 78%) the NPM has constantly been increase Standard Chartered. This shows that the bank is convert Standard Chartered its revenues into profit. This shows that the bank is safe and there is lower risk. RETURN ON NET WORTH/RETURN ON EQUITY Return on net worth is used as a measure of a financial institutions profitability. It reveals how much profit a company generates with the money a equity shareholders have invested. It is also called return on equity. ROE/RONW = Net income 100 =

0.3

Shareholders equity

INTEREST SPREAD

Interest spread is the difference between the average lend Standard Chartered rate and the average borrow Standard Chartered rate for a bank or other financial institution. It is: (Interest income /interest earn Standard Chartered assets) (interest expense/interest bear Standard Chartered liabilities) This is very similar to interest margin. If a bank's lend Standard Chartered was exactly equal to its borrow Standard Chartered (i.e. deposits plus other borrow Standard Chartered) the two numbers would be identical. In reality, bank also has its shareholder's funds available to lend, but at the same time its lend Standard Chartered is constrained by reserve requirements. Changes in the spread are an indicator of profitability as the spread is where a bank makes its money

BALANCE SHEET RATIOS In bank Standard Chartered the two most important ratios that are looked very closely are 1) Capital adequacy ratio 2) Return on assets 3) Loan/advances funds% CAPITAL ADEQUACY RATIO CAR is a ratio of banks capital to its risk. National regulators tracks banks CAR to ensure that it can absorb reasonable amount of loss and are comply Standard Chartered with the bank Standard Chartered statutory capital requirements. Capital adequacy ratio is the ratio which determines the capacity of the bank in terms of meet Standard Chartered the time liabilities and other risk such as credit risk, operational risk, etc. In the simplest formulation, a bank's capital is the "cushion" for potential losses, which protect the bank's depositors or other lenders. Bank Standard Chartered regulators in most countries define and monitor CAR to protect depositors, thereby maintain Standard Chartered confidence in the bank Standard Chartered system

=0.5
RETURN ON ASSETS

An indicator of how profitable a bank is relative to its total assets. ROA gives an idea as to how efficient management is at us Standard Chartered its assets to generate earn Standard Chartered. Calculated by divide Standard Chartered a company's annual earn Standard Chartered by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment". The formula for return on assets is:

= 4%
As can be seen from the table that the return on assets has been increase Standard Chartered as the years have gone by. The ratio is significantly low as compared to other private banks, but it is catch Standard Chartered up on it.

LOAN / ADVANCES FUNDS Loans/advances constitute a major chunk of a banks assets. These also yield returns by way of interest income which contributes the largest percentage of banks profits. Lend Standard Chartered of funds to traders, business, enterprises constitutes the main business of bank Standard Chartered. Banks are financial intermediaries and lend the funds of depositors who themselves do not want to lend in the business directly. DEBT COVERAGE RATIOS Also known as the Debt Service Coverage Ratio (DSCR), the debt coverage ratio measures your ability to pay the property's monthly mortgage payments from the cash generated from rent Standard Chartered the property. Bankers and lenders use this ratio as a guide to help them understand whether the property will generate enough cash to pay rental expenses and whether you will have enough left over to pay them back on the money you borrowed. The DCR is calculated by divide Standard Chartered the property's annual net operate Standard Chartered income (NOI) by a property's annual debt service. Annual debt service is annual total of your mortgage payments (i.e. the principal and accrued interest, but not your escrow payments) The various debt coverage ratios are 1) Credit deposit ratio 2) Investment deposit ratio 3) Cash deposit ratio

CREDIT DEPOSIT RATIO It is the proportion of loan-assets created by banks from the deposits received. The higher the ratio, the higher the loan-assets created from deposits. Some experts contend that a high credit-deposit ratio could lead to a rise in interest rates. Consider Bank X which has deposits worth Rs. 100 crores and a credit-deposit ratio of 60 per cent. That means Bank X has used deposits worth Rs. 60 crores to create loan-assets. Only Rs. 40 crores is available for other investments. Now, the Indian government is the largest borrower in the domestic credit market. The government borrows by issue Standard Chartered securities (G-secs) through auctions held by the RBI. Banks, thus, lend to the government by invest Standard Chartered in these G-secs. And Bank X has only Rs. 40 crores to invest in G-secs. If more banks like X have lesser money to invest in G-secs, what will the government do? After all, it needs to raise money to meet its expenditure. The government has two options. One, it can raise yields to make investment by banks in G-secs attractive. Or two, force the RBI to take the securities into its books. Both the options have a tendency to push up interest rates in the economy. Yields on G-secs serve as a benchmark for interest rates on other debt instruments. A rise in the former, thus, pushes up interest rates on the latter. But why should interest rates rise if RBI takes G-secs into its books? Because, by do Standard Chartered so, the RBI releases fresh money into the system. If the money so released is large, ``too much money will chase too few goods'' in the economy result Standard Chartered in higher inflation levels. This would prompt investors to demand higher returns on debt instruments. In other words, higher interest rates. CASH DEPOSIT RATIO Historically, and in bank Standard Chartered theory, the cash-deposit ratio is a measure of the liquidity of banks' assets. Cash consists of cash in the vaults of banks, and balances with the Reserve Bank of India. The regulatory authorities of central banks would like to fix minimal cash ratios and to vary it accord Standard Chartered to macro policy requirements. In India, there is a minimal requirement of 3 per cent for the cash-deposit ratio. Banks like to keep the cash ratio higher than the minimum for various understandable reasons. In theory, cash does not earn banks any interest but when the RBI moves up the ratio, it often tends to pay some interest on the excess cash maintained with it. This is with a view not to hurt the earn Standard Chartered of banks too much in the context of regulatory requirement.

Earning Per Share : 3% Price Earning Ratio : 23% Debt Equity Ratio: 5.97 %

PROJECT SERVEQUAL ANALYSIS

(Service Quality Analysis)
6.2.1 The major findings of the study include analysis of the perception and the
expectation gap between the customers and the management respectively. Table # 1 the average perception scores of the service quality experienced by the customers across all the companies is shown. Table # 2 shows the average expectation scores as per the management about their services. Table # 3 shows the overall gap between the perception and the expectation.

TABLE # 1

SERVEQUAL DIMENSIONS AND THEIR ITEMS Tangibles

P score

Extent to which you are satisfied with the services provided by your 6.66 bank, like ATM, cheque drop facility, nearness to the branch, doorstep facilities, and branch facilities. Quality of layout and physical conditions of the premises of the branches.

3.1 Assurance ( customer counseling for better satisfaction)

Extent to which you are well informed and aware about all products and facilities, which are provided by banks literature and as oriented by the bank staff.

6.50

3.2 Responsiveness (after effect of assurance)

Extent to which you are satisfied with the staff of the bank and their support for proper help and guidance by Standard Chartered bank with the help customer to solve diverse problems faced by them.

7.90

3.3 Reliability (a bond of belief created in the customer)

You feel secure about your possessions and benefits provided by the

bank through various products and schemes The banks services are as per the norms and reliable in all respects 8.92 3.4 Empathy

Extent to which you feel that your bank understands your needs and gives solutions for it. Extent to which you feel banks services are made for you and staff also try to help you in all situations

8.77 (Source : primary data)

TABLE # 2

SERVEQUAL DIMENSIONS AND THEIR ITEMS

E score

3.5

Tangibles

Services provided by Standard Chartered, like ATM, cheque drop facility, nearness to the branch, doorstep facilities, branch facilities, salary transfer e.t.c.

7.33

3.6 Assurance( customer counseling for better satisfaction)

Extent to which your customers are well informed and aware about all products and facilities, which are provided by banks literature and staff 6.25 guidance

3.7 Responsiveness (after effect of assurance)

The staff of the bank helps customers in solving their diverse problems and give them prompt solution. 6.91

3.8 Reliability (a bond of belief created in the customer)

Customers feel secure about their possessions and benefits provided by the bank through various products and schemes. The banks services are as per the norms and reliable in all respects 7.33

3.9

Empathy 9.25

The bank understands their customers needs and gives solutions as per your needs. Banks services are made as per the customer needs and staff also try to help them in all situations 7.16

6.91 (source: primary data)

Table # 3: Aggregated dimensional scores

SERVE QUAL Dimensions

P score

E score

Difference (P-E)

Tangibles Reliability Responsiveness Assurance

6.66 6.5 7.9 8.92

7.33 6.25 6.91 8.29

-1.33 0.25 0.99 0.63

Empathy (Source: primary data)

8.77

7.04

1.73

To study the service quality of Standard Chartered bank, all those companies which were surveyed were categorized in to three categories/groups on the basis of their average salary uploaded and type of current account, they have in the bank. Group 1 had those companies whose average salary was up to Rs.10, 000 and no current account. Group 2 had those companies whose average salarypayment to staff was either above Rs.10, 000 or was below Rs.20, 000 but had normal current account also.

Group 3 had those companies whose average salary was either above Rs.20, 000 or was below Rs.10, 000 but had orange current account also.

So once the data was collected related to perception and expectation scores and their gap, hypothesis were made on each parameter to find if there exists any difference between these groups us Standard Chartered one way ANOVA, as far as these five parameters of service quality are concerned.

7.2.2 FORMULATION OF HYPOTHESIS

1. Ho: There is no significant difference among the groups of companies with regards to tangibles factor offered by the bank. Ha: The groups of companies do differ with regards to tangibles factor offered by the bank
ANOVA: Standard (TANGIBLES)

Chartered Factor SUMMARY Groups (P-E)GROUP1 (P-E)GROUP2 (P-E)GROUP3

Count 10 10 10

Sum -7.8 -6.68462 -3.7

Average -0.78 -0.66846 -0.37

Variance 0.494136 0.104142 0.273778

ANOVA Source of Variation Between Groups Within Groups Total

SS 0.898734 7.8485 8.747234

df 2 27 29

MS 0.449367 0.290685

F 1.545888

P-value 0.231401

F crit 3.354131

Here we can see that F value is less than the F crit hence we accept the null hypothesis that there is no difference between the groups as far as tangibles are concerned. The reasons for such indifference could be: a) The bank is new, though it is try Standard Chartered to give best of its services but still facilities can be provided in a better manner when there is a strong network of branches. In NOIDA there is just one branch of Standard Chartered bank which is not sufficient to serve the customers in a better manner. So in this case even the bank knows that it lacks and needs improvement and has fewer expectations which match the perception so there is no much difference between the groups. b) Same is the case with no. of ATMs which even the bank knows so it has rated itself lower in tangibles. So in short the main reason for indifference is the familiarity of the employees of the bank with the problems that bank is faced Standard Chartered which has lowered its expectations.

2. Ho: There is no significant difference among the groups of companies with regards to assurance factor offered by the bank. Ha: The groups of companies do differ with regards to assurance factor offered by the bank

ANOVA:

Standard (ASSURANCE)

Chartered Factor

SUMMARY Groups (P-E)GROUP1 (P-E)GROUP2 (P-E)GROUP3

Count 10 10 10

Sum -1.58333 3.807692 8.7

Average -0.15833 0.380769 0.87

Variance 0.030015 0.044444 0.232889

ANOVA Source of Variation Between Groups Within Groups Total

SS 5.291493 2.766139 8.057631

Df 2 27 29

MS 2.645746 0.10245

F 25.82486

P-value 5.39E-07

F crit 3.354131

Here it can be seen that F value is greater than F critical hence we reject the null hypothesis and so there exist some difference between the groups regard Standard Chartered assurance of the bank. Under reliability it was asked to people if they are informed about various products and schemes that are launched by the bank through any means and to this we received different answers and it proved to be a weak area for the bank in terms this difference. Accord Standard Chartered to me reasons for this could be: a) Group 1 companies are generally the export houses, or small companies whose average salary is not much and the level of education among the employees there, is not equivalent hence most of them dont even know how to use internet, which is a common source of inform Standard Chartered people b) It was noticed that most of the companies in group 1 and 2 are from locations which are quite far from the NOIDA branch of Standard Chartered so they wanted some body to visit them often so that they can get these information easily so they were not satisfied with the bank in this regard on the other hand group three companies are generally the call centers whose employees are tech- savvy and hence get the relevant information on their e-mails. The banks average expectations are com Standard Chartered to be around 6.25 and the groups perception were generally lower in case of group 1 and almost the similar and higher respectively for group 2 and 3 than the same number.

3. Ho: There is no significant difference among the groups of companies with regards to responsiveness factor offered by the bank. Ha: The groups of companies do differ with regards to responsiveness factor offered by the bank
ANOVA: Factor SUMMARY Groups (P-E)GROUP1 (P-E)GROUP2 (P-E)GROUP3 Standard Chartered (RESPONSIVENESS)

Count 10 10 10

Sum 7.3 10.64615 13.8

Average 0.73 1.064615 1.38

Variance 0.109259 0.051019 0.233333

ANOVA Source Variation Between Groups Within Groups Total

of SS 2.113116 3.542505 5.655621 Df 2 27 29 MS 1.056558 0.131204 F 8.052796 P-value 0.001808 F crit 3.354131

7.2.3 GRAPHICAL REPRESENTATION OF THE DATA

Follow Standard Chartered is the graphical representation of average perception scores given by the 30 companies for various parameters of SERVE QUAL model. Where X-axis represents the range of scores and Y-axis represents the frequency.

1. Tangibles:

Services provided by Standard Chartered, like ATM, cheque drop facility, nearness to the branch, doorstep facilities, branch facilities, salary transfer e.t.c.

RANGE OF SCORES GIVEN BY THE COMPANIES FOR TANGIBLES

20 15 10 5 0 0 2.0-4.0 4.1-6.0 6.1-8.0 8.1-10.0 Series1 4 19

The graph represents the frequency of companies ly Standard Chartered in the given categories of scores as per their response to the tangibles.

2. Assurance
Extent to which customers are well informed and aware about all products and facilities, which are provided by banks literature and staff.

RANGE OF SCORES GIVEN BY THE COMPANIES FOR ASSURANCE

25 20 15 10 5 0 1 2.0-4.0 4.1-6.0 6.1-8.0 8 Series1

21

0 8.1-10.0

The graph represents the frequency of companies ly Standard Chartered in the given categories of scores as per their response to the reliability of the bank.

3. Responsiveness
The staff of the bank helps customers in solve Standard Chartered their diverse problems and give Standard Chartered them prompt solution.

RANGE OF SCORES GIVEN BY COMPANIES FOR RESPONSIVENESS

14 12 10 8 6 4 2 0 0 5.0-6.0 6.1-7.0 7.1-8.0 8.1-9.0 1 9.1-10.0 6 13 10

Series1

The graph above represents the frequency of companies ly Standard Chartered in the given categories of scores as per their response to the responsiveness of the bank.

4. Reliability:
It represents the average range of scores for the follow Standard Chartered two questionsCustomers feel secure about their possessions and benefits provided by the bank through various products and schemes. The banks services are as per the norms and reliable in all respects

RANGE OF SCORES GIVEN BY COMPANIES FOR RELIABILITY

20 15 10 5 0 2

17 11 Series1

7.1-8.0

8.1-9.0

9.1-10.0

The graph represents the frequency of companies ly Standard Chartered in the given categories of scores as per their response to the reliability of the bank.

5. Empathy:

It represents the average range of scores for the follow Standard

Chartered two questions-

The bank understands their customers needs and gives solutions as per your needs. Banks services are made as per the customer needs and staff also try to help them in all situations

RANGE OF SCORES GIVEN BY COMPANIES FOR EMPATHY

25 20 15 Series1 10 5 0 0 7.1-8.0 8.1-9.0 9.1-10.0 6 24

The graph represents the frequency of companies ly Standard Chartered in the given categories of scores as per their response to the empathy shown by the bank. 6. Besides the research, part of my job was also the corporate sales i.e. I was suppose to sell the salary account of the bank. So for that I use to first make a cold call in the companies, find out which bank are they with for salary account purpose and how would they like to switch to Standard Chartered. Some companies open such accounts in 2-3 banks also so I used to convince them to make Standard Chartered at least their second choice. While make Standard Chartered the sales call for pursue Standard Chartered companies to open the salary accounts of their employees in Standard Chartered bank, there emerged a picture of how popular different banks are. Given below is a graph based on that picture of approximate market share hold by the banks. On an average out of 100 calls made 26 said they are with ICICI and doesnt want to change, 23 said they are with HDFC and are satisfied, 5 said they are with ABN Amro

and want to continue, 10 said they are with Standard Chartered bank and are satisfied with their services, 3 were with YES bank and have tied up recently so cant change.

Pie-Chart # 1: share of banks found, when sales call was made

market share
ICICI HDFC ABN AMRO STANDARD CHARTERED YES BANK OTHERS

6.3 SWOT ANALYSIS

STRENGTHS: 1. Strong brand association The bank has got the biggest asset in the form of its association with the STANDARD CHARTERED Group of Netherlands, which is a well-known financial house world over. The brand is considered to be a high quality service provider. 2. Market Standard Chartered strategy. The bank has very well targeted the market and is focus Standard Chartered on high net worth clientele. It gives a lot of stress in strategy make Standard Chartered to take an edge over other bank.

3. Sales promotion techniques Though the bank is new on the ground but still it has endeavored to make its mark in the minds of people through various sales promotion techniques like call Standard Chartered celebrities like Amrita Arora for inaugurate Standard Chartered an ATM outlet and Ricky Pont Standard Chartered to give a speech on team work. 4. Wide network in southern India. The bank is a well-known name in southern part of India which makes its roots much stronger there than many of its competitors.

WEAKNESS: 1. Lack of network in small cities and towns The bank still needs to work on expand Standard Chartered its area of operation by open Standard Chartered more no. of branches. For example if we take NCR 1 branch in NOIDA, 1 in Greater NOIDA, 1 In Ghaziabad dont do. Since the NOIDA branch gets a lot of business from NOIDA and greater NOIDA it needs to have more branches there.

2. Lack of brand awareness Since the bank is new as compared to its competitors it needs to work on promote Standard Chartered its brand name so that it remains there on the peoples mind and they dont confuse it with ICICI when they hear about it as it happens now. 3. Lack of no. of ATM outlets all over. Though the bank has a tie up with no. of banks which let its customers withdraw money from there at least 6 times a month but still to make its presence feel have Standard Chartered a strong ATM network is very much necessary.

OPPORTUNITY 1. Indian multinational Many Indian companies are now in the race of overtake Standard Chartered multinationals; its a great opportunity for a Bank to provide their service to these multinationals, it will help bank in build Standard Chartered their strong position in global market. 2. Globalization Lots of multinationals are com Standard Chartered over, so have Standard Chartered a global brand association it can cash on it and provide its services to them.

THREATS: 1. Competitors (exist Standard Chartered as well as new to enter) This is one of the biggest threats that it has in front of itself. The bank Standard Chartered sector is witness Standard Chartered and is expected to witness more players in future. Many of the FIs are think Standard Chartered of convert Standard Chartered into banks corporate houses are plan Standard Chartered to launch their banks. 2. Bargain Standard Chartered power of buyers Bargain Standard Chartered power of the buyers will be high, as they will be have Standard Chartered lot of service providers to choose from. This will force bank to improve their service and emphasize upon the customer relationship management for their survival.

7. CONCLUSION
1. Standard Chartered has a strong brand association with an international fame group. But so far the bank has not been able to establish it self so well here, in the minds of people in India, unlike its competitors. 2. Due to RBI guide lines which have been some what restrictive for foreign players, Standard Chartered cannot be blamed solely for be Standard Chartered popularity. It is expected that in the time to come when these guide lines would be relaxed Standard Chartered would be able to utilize more resources and would be able to establish itself more efficiently. 3. The Standard Chartered bank is facing the problem of being less popular due to limited branches and ATMs in sufficient number geographically spread all over India . 4. Even in the comparative analysis it was found that most of the product features are almost the same, rather in some instances Standard Chartered is better for example a. It offers PAP cheque books to its customers where as other banks dont. b. It offers 2 free DD/PO to its customers where as other banks dont follow. c. It opens the salary accounts even at lower averages where as other banks follow strict policies in this regard. It serves smaller firms with GIRO facilities which others do not except happily. 5. Similarly in some cases some features of other banks are better, for ex a. YES bank gives unlimited ATM transactions with its partner banks to all of its customers where as it offers only to orange customers b. ICICI facilitates immediate transfer of funds.

8. RECOMMENDATIONS
1. The bank should first of all try to increase its network by opening additional Standard Chartered branches and ATM outlets in order to expand and gain popularity and image building in the minds of the people like ICICI and HDFC. 2. It should also use more and more media affectiveness in order to create images in the mind of larger population. A good attempt has been made in these lines like call Standard Chartered Ricky Ponting Standard Chartered, Amrita Arora for different purposes. 3. It should indulge deeply in to customer feedback system. CRM practices should adopted scientifically so that it can also act as unpaid ambassadors of the bank and spread good word of mouth messages about its services. 4. The survey was conducted there were some complaints of its customers related to tangibles which need to be addressed like: a. ATM blockage/hang Standard Chartered, mainly with lower class employees b. Delay in transfer of salaries c. Delay in transfer of online funds. d. Problems with the statement of accounts that many of them havent received it. e. These are some problems which are related to operations and management needs to device some technique to speed up the whole process. 5. To solve the problem of ATM blockage which apparently is due to the fact that uneducated employees are not able to use it properly, the bank if thinks it reasonable enough can go for organizing Standard Chartered some work shops

for such people and teach them how to use it, besides solve Standard Chartered the problem it can also attract media attention. Here it is recommended that a short customer training and learning exercise should be conducted to tackle some operational problems. it is suggested that a customer service manager should be posted to guide the customer including filling of the forms and even drawing of the cheques. 6. It is seen that the bank has no branch in Greater Noida so the customers that are there are also served by the Noida branch, so in order to ensure the satisfaction of those customers bank needs to send some executive regularly over there who could go and visit those places regularly which would further enrich a good relationship between them.

9. LIMITATIONS
1. There were some problems to communicate Standard Chartered with some of the people from the lower strata of the organization because they were not able to make any sense out of this exercise, so it took time to explain them the whole situation. 2. While collecting the information about the liability products from the banks there were some problems came because the employees didnt want to disclose their features to summer trainees but the potential customers. 3. The management of the bank was reluctant initially to share the data with me but after full assurance from my side of not misuse Standard Chartered the data and long discussion among themselves they finally agreed to it. 4. There were financial constraints as well, otherwise the data could have been collected from more companies and from even more number of employees from each company. 5. The time constraint cannot be ignored because if it had been more the I may have been exposed to more number of problems which didnt come in to picture due to time limitation. 6. Since the project was to be completed within a time frame, the study was kept limited. Also the bank employees were fully loaded with work during the customers transaction period, they were not readily available to provide data and information and it was major constraints faced by me.

APPENDIX
Questionnaire

Name: Age Bank that carries your salary account: Annual Salary: up to Rs.1,00,000 Rs.2,00,000 to 4,00,000 Rs.6,00,000 and above

Company name: Designation:

Rs.1,00,000 to Rs.2,00,000 Rs.4,00,000 to 6,00,000

1. Extent to which you are satisfied with the services provided by your bank, like ATM, cheque drop facility, nearness to the branch, doorstep facilities, and branch facilities.

Highly satisfied at all satisfied

satisfied

moderate

not satisfied

not

2. Extent to which you are well informed and aware about all products and facilities, which are provided by banks literature and staff.

Highly satisfied at all satisfied

satisfied

moderate

not satisfied

not

3. Extent to which you are satisfied with the staff of the bank and their act of help Standard Chartered you in solve Standard Chartered your diverse problems and give Standard Chartered you prompt solution.

Highly satisfied at all satisfied

satisfied

moderate

not satisfied

not

4. You feel secure about your possessions and benefits provided by the bank through various products and schemes.

Highly satisfied at all satisfied

satisfied

moderate

not satisfied

not

5. The banks services are as per the norms and reliable in all respects

Highly satisfied not at all satisfied

satisfied

moderate

not satisfied

6. Extent to which you feel that your bank understands your needs and gives solutions as per your needs.

Highly satisfied at all satisfied

satisfied

moderate

not satisfied

not

7. Extent to which you feel banks services are made for you and staff also try to help you in all situations

Highly satisfied at all satisfied

satisfied

moderate

not satisfied

not