ACKNOWLEDGEMENT

IT WOULD BE A GREAT PLEASURE FOR US TO TAKE THIS OPPORTUNITY IN THANKING EVERYBODY WHO HAD BEEN OF GREAT HELP IN THE COMPLETION OF OUR PROJECT. OUR SINCERE GRATITUDE GOES TO MISS.DEEPA NAIR (EXIM PROFFESSOR) IT HAS BEEN A GREAT LEARING EXPERIENCE BY DOING THIS PROJECT SIMULTANEOUSLY, WHICH ENRICHED OUR KNOWLEDGE AND DEVELOPED OUR OUTLOOK FOR BECOMING A BETTER PROFESSIONAL ANTICIPATING WITH CONVICTION THAT I HAD BEEN OF SOME HELP TO THEM. I WOULD ALSO LIKE TO TAKE THIS OPPORTUNITY TO THANK ALL MY STAFF MEMBER AT Standard Chartered FOR COOPERATING WITH US THROUGHOUT THE TENURE OR OUR WORK THERE.

PREFACE THE COMPILATION OF THE PROJECT REPORT MEANT FOR SUBMITTING TO THE FACULITY OF N.M COLLEGE OF COMMERCE AND ECONOMICS FOR THE PURPOSE OF THE EVALUATION IN INTERNALS OF THE REQUIREMENT FOR THE BACHELORS OF MANAGEMENT STUDIES(B.M.S.) THE DISSERTATION IMPARTS A DEDICATION & PERSPECTIVE DISCUSSION ON THEFINANCIAL AND NON FINANCIAL SERVICES PROVIDED BY THE STANDARD CHARTERED BANK TO THE IMPORTERS AND THE EXPORTERS IN COMPREHENSIVE AND CONCISE WAY ON THE BASIS OF STUDY WHICH WAS DONE BY US IN STANDARD CHARTERED BANK. I HAD COLLECTED ALL THE NECESSARY PRIMARY DATA, WHICH HELPING ME TO FULFILL THE PROJECT OBJECTIVE.

INTRODUCTION Standard Chartered is the worlds leading emerging markets bank. It employs 32000 people in over 500 offices in more than 56 countries in the Asia Pacific region, South Asia, the Middle East, Africa, United Kingdom and Americas. The bank serves both consumer and wholesaler banking customers. The consumer bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The wholesale bank provide service to the multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending foreign exchange, interest rate management and debt capital markets. With nearly 150 in emerging markets the bank has unmatched knowledge and understanding of its customers in its markets. Standard Chartered recognizes its responsibilities lies to its staff and to the communities in which it operates.

INDUSTRY PROFILE The Indian banking can be broadly categorized into nationalized (govt. owned), private banks and specialized banking institutions. The reserve bank of India acts as a centralized body monitoring any discrepancies and short comings in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow moving public sector banks to adopt a fast track approach. The unleashing of product and services through the net has galvanized players at all levels of banking and financial institutions market grid to look a new at their existing portfolio offerings. Conservative banking practices allowed Indian banks to be insulated partially from the Asians currency crisis. Indian banks are now quoting higher valuations when compared to banks in other Asian countries i.e. Hong Kong, Singapore, Philippines, etc. that have major problems linked to huge non performing assets (NPA) and payment defaults. Cooperative banks are nimble footed in approach and armed with efficient branch network focused primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issue to take on the multifarious challenge of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customer base. Private bank have been fast on the uptake and are reorienting their strategies using the internet as their medium. The internet

has emerged as a new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been highly brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunity rather than generating revenues from conventional streams. The bank in Indian is highly fragmented with 30 banking units contributing to almost 50% of deposit and 60% of advances. Indian nationalized banks continue to be the major lenders in the economy due to their sheer size penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The reserve bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized bank continued to dominate the Indian banks arena. Industry estimate indicate that out of 274 commercial banks operating in India, 233 banks are in public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. Under the ambit of nationalized banks come the specialized banking

HISTORY OF STANDARD CHARTERED Standard Chartered is the worlds leading emerging markets bank Head quartered in London. Its businesses however, have always been overwhelmingly international. This is the summary of main events in the history of standard chartered and some of the organizations with which it merged. The early years 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. 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 was a Scott, James Wilson, who made his fortune in London making hats. James Wilson went on to start the economists, still one of the worlds pre-eminent publications. Nine years later, 1962, the standard bank was founded by a group of businessmen led by another Scott, John Paterson, who had immigrated to the Cape Province in South Africa and had become a successful merchant. Both banks were keen to capitalize on the huge expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from financing that trade. The chartered bank opened its first branch in 1858 in Chennai and Mumbai. A branch opened in shanghai that summer beginning standard chartereds unbroken presence in china. The following year the chartered bank opened a branch in Hong Kong and an agency was opened in Singapore, a privilege to continue 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 chin, south Africa, Zimbabwe, Malaysia and even during the siege of marketing in south Africa. Today

standard chartered is still one of the three banks, which prints Hong- Kongs bank notes.

EXPANSION IN AFRICA AND ASIA 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 diamond fields of Kimberly in 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Over time half the output of the second largest gold field in the world passed through the standard bank on its way to London. In 1892 the standard bank opened for business in Zimbabwe and expanded into Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the democratic republic in Congo in 1911 and Uganda in 1912. Of these new businesses, Botswana, Zanzibar and the D.R.C. proved the most difficult and the branches soon closed. A branch in Botswana opened again in 1934 but lasted only for a year and it was not until 1950 that the bank reopened for business in Botswana. In Asia the chartered bank expanded opening offices including Myanmar in 1862, Pakistan and Indonesia in 1863, they Philippines in 1872, Malaysia in 1875, Japan in 1880 and Thailand in 1894. Some 34 years after the chartered bank appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of businesses from the tea and rubber industries. During 1904 a branch opened in Vietnam. Both the chartered and the standard bank opened offices in New York and Hamburger in the early 1900s. The chartered bank gaining the first branch license to be issued to a foreign bank in New York.

SWOT ANANLYSIS

BUSINESS OF BANKING Banking, in an additional sense is the business of accepting deposit of money from public for the purpose of lending and investment. These deposits can have a distinct feature of being withdraw able by cheque, which no other financial institution can offer. In additional to this banks offer various other financial services also which include: Issuing Demand Draft and Travelers Cheque Collection of Cheque, Bills of Exchange Safe Deposit Lockers Issuing Letter of Credit & Letter of Guarantee Sale and purchase of Foreign Exchange Custodial services Investment services

CORPORATE BANKING: We provide Corporate Banking Services to the Cameroonian business community based on a deep understanding of the needs of the various sectors. Our Corporate Banking Services include:

Overdrafts and Current Lines, Term Loans, Equipment leasing Guarantees and Indemnities. Project Finance (Small and Medium Size Industries) etc

EXPORT FINANCING Apart from providing financial and other support services to existing export customers, the Bank also encourages prospective exporters and nurtures them to maturity in the export business. Our export financing services include:

Short, Medium and Long Term Credit Facilities. Acceptance of Export Letters of Credit. Refinancing and Rediscounting Facilities. Handling of Documentary Export Collections. We also provide our clientele professional advisory services to facilitate smooth and prosperous export business, by:

Providing Trade and Economic Information. Linking exporters with reputable foreign buyers. Advising clients on export documentation. Providing exporters with information and guidance procedures.

TREASURY & FINANCIAL SERVICES: Purchase and sales of foreign Currency following regulatory requirement. Providing Letters of Credit, Bills for collection and other innovative Trade finance services.

Financial services Economic functions

1.Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claimson banks can act as money because they are negotiable and/orrepayable on demand, and hence valued at par. They are effectivelytransferable by mere delivery, in the case of banknotes, or bydrawing a cheque that the payee may bank or cash. 2.Netting and settlement of payments banks act as both collection and paying agents for customers, participating ininterbank clearing and settlement systems to collect, present, bepresented with, and pay payment instruments. This enables banksto economies on reserves held for settlement of payments, sinceinward and outward payments offset each other. It also enables theoffsetting of payment flows between geographical areas, reducingthe cost of settlement between them. 3.Credit intermediation banks borrow and lend back-to-back on their own account as middle men 4.Credit quality improvement banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), butare high quality borrowers. The improvement comes fromdiversification of the bank's assets and capital which provides

abuffer to absorb losses without defaulting on its obligations.However, banknotes and deposits are generally unsecured; if thebank gets into difficulty and pledges assets as security, to raise thefunding it needs to continue to operate, this puts the note holdersand depositors in an economically subordinated position. 5.Maturity Transformation banks borrow more on demand debt and short term debt, but provide more long term loans. In otherwords, they borrow short and lend long. With a stronger creditquality than most other borrowers, banks can do this byaggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes),maintaining reserves of cash, investing in marketable securities thatcan be readily converted to cash if needed, and raising replacementfunding as needed from various sources (e.g. wholesale cashmarkets and securities markets). Services provided by standard chartered Through the network of over 500 offices in more than 50 countries, standard chartered offers personal financial solution relevant to you as an individual, standard chartered treasure building a relationship with the customer, developing an understanding of customers changing financial needs at different stages of your life. Their long heritage of nearly 150 years has enabled them to change with time, offering quality products by means that are convenient to customer. Standard chartered offer includes: Personal finance. Credit cards. Priority banking. Investment advisory services.

 Personal investments. Insurance. Deposits and Retail services Retail FX products. INTERNATIONAL BANKING Standard chatered offers International Banking Services to Resident / Non-Resident Indians customers, Foreign Entities and Banks. Services offered by us include export finance by way of pre-shipment and post-shipment credit both in Indian Rupee and in foreign currency, financing of import, other consultancy services to exporters and importers and services to resident customers, overseas tourists and travelers by way of remittance facility, encashment and sale of foreign currency notes and travellers' cheques, collection of cheques / drafts, other instruments. All authorized branches are connected with our 2 dedicated dealing rooms with the SWIFT connectivity and state of art communication facilities. Our Forex Network Banks Dealing Rooms at Mumbai and Kolkata are fully equipped with latest communication tools and our team of seasoned, skilled and professional dealers can customize solutions that meet your specific requirements and extract maximum value out of each market situation. o Provide competitive exchange rate to the exporters/importers. o Provide advisory services to exporters/importers for hedging their foreign exchange risk. o Deal in all major currencies with facilities to handle transactions in all time zones. o Maintain 20 Nostro accounts in all major currencies

and o BKE arrangement with more than 1200 foreign bank branches spread all over the world to cater to the needs of exporters/importers, corporate, non-corporate of all sectors and individual customers. Apart from our presence at all major commercial centres / cities, to serve exporters, importers and individuals we have large network of 'B' and 'C' category authorized branches even in small remote places. Our all 'B' category branches are connected with SWIFT terminals for fast communication and money transfer in all time zones. Specilised Trade Finance Central Processing Cells (TFCPC) at prominent centers for speedy processing of import / export transactions.

Trade Finance We at SBBJ understand that your much stake is involved in Export Import business. We offer trusted financial solution to all your complex trade finance related fund needs (both in Indian Rupee and foreign currencies). (i)Pre-shipment Export Credit (ii) Post-shipment Export Credit (iii) Services of Guarantee (iv) Other Services (v) Documentary Credit (vi)Prompt Remittances (vii)SBBJ Expo Gold Card Scheme (viii)Some distinct features of our Services for Exporters / Importers

Pre-shipment Export Credit :1. In Rupee: Pre-shipment credit in Rupees against L/C/firm order etc at competitive rate of interest for purchasing / manufacturing / processing / packing / transportation of goods meant for export. 2. In Foreign Currency: To enable our exporters to avail benefit of international interest rates, Pre-shipment credit in Foreign Currency is also made available at LIBOR linked rates. Post-shipment Export Credit :

Post-shipment credit in Rupees by way of: i)Negotiation of documents under letter of credit. ii)Purchase/discount of bills. iii)Advance against bills sent for collection at concessive rate of interest. iv)Advance against goods sent on consignment basis where documents are delievered under trust receipt. To compete in international markets, we also provide postshipment credit in foreign currency at LIBOR linked rates under Export Bills Re-discounted Scheme (EBR).

Services of Guarantee

In our endeavour to provide all trade related services under one umbrella, we arrange for issuance of Guarantee to exporters for participating in Bid Bonds, quoting in global tenders and advance payment guarantees for exporters towards advance payment received from the buyers. Other Services Documentary Collection i.e sending your export documents for collection as per your instructions. Documentary Collection service offers exporter greater security than selling on open account, but not as much as a documentary credit. The Banks liability is limited to the forwarding and release of documents against payment, acceptance or promise of payment (letter of undertaking) by the importer. SBBJ Expo Gold Card Scheme for eligible exporters. Opening of EEFC accounts at our designated branches. Opening of Diamond dollar Accountsof the eligible exporters at our designated branches. Rupee finance to importers for payment of goods & services imported from abroad under our various Rupee credit facilities on satisfying credit exposure norms of the bank. SBBJ is all along with you in meeting your Term Loan requirements for expansion of capacity, modernization of machinery and up-gradation of technology. We are fully aware of risks involved in foreign exchange transactions. Our team of seasoned dealers will be happy to help in booking of forward contracts to hedge foreign currency exposure as well as long-term rollover covers. We at SBBJ also help in arranging foreign currency loans

for our importer customers under Buyer's Credit or shortterm External Commercial Borrowings from our overseas correspondents at competitive rates. Documentary Credit Documentary Credits have assumed great importance in facilitating international trade. It helps both importers and exporters host of benefit in addition to securing and processing their transactions. Modern world trade operations cant be possible without the documentary credit. These transactions are presently governed by rules framed under ICC publication no.600, usually known as Uniform Customs and Practice for Documentary Credit-600' (UCPDC-600). Types of Credit

Sight Letter of Credit:The issuing bank is under the irrevocable obligation, to effect immediate payment (at sight) to the beneficiary on presentation of the stipulated documents fulfilling all the terms and conditions of the credit, within a prescribed period of time. Acceptance Letter of Credit:Under an acceptance credit, on presentation of the stipulated documents exporter also presents a bill of exchange giving designated due date (e.g. 90 days after sight / the date of shipment). On receipt of complying presentation the drawee bank accepts the time draft and guarantees payment on the stipulated due date. Negotiation Letter of Credit:Under this credit, negotiating bank makes an advance or agrees to make an advance to the exporter on presentation of the stipulated documents. If negotiating bank has not confirmed the credit, it has the right to seek recourse from the exporter if cover /reimbursement / payment are not forthcoming.

Deferred payment Letter of Credit: Under this credit, the issuing bank and any confirming bank undertake to effect payment at a specified later date (e.g. 90 days after the date of shipment / acceptance) subject to the presentation of the stipulated documents within the expiry date of the documentary credit. Under this type of credit bill of exchange is not drawn. As such, the maturity date is ascertained in accordance with the tenor stated in the credit. The exporter thus grants the importer time to pay. Confirmed Letter of Credit:Under this credit the confirming bank as well as the issuing bank assume to effect payment on presentation of the stipulated documents. The obligation of the confirming bank exists independently of that of the issuing bank. Standby Letter of Credit:US Laws prohibits US credit institutions from assuming guarantee obligations vis--vis third parties, therefore, standby letter of credit comes from the banking legislation of the United States Revolving Letter of Credit: Revolving credits cover consignments in a number of installments up to a maximum amount. On utilization, the credit is automatically selfrenewing by the same amount for a pre-determined period.

Documentary Credit for Exporters :Documentary Credits offer an exporter host of benefits. They provide exporters with the security required while undertaking exports. To reap full benefits, documentary credit must be issued on a sound contractual basis and with the terms and conditions possible to comply. As an exporter you must ensure that all the relevant terms and conditions of the credit are strictly met. Discrepancies in the documentation results into absolving credit issuing bank and credit confirming bank (if any) of their liability under the credit. Thus, payment altogether may not come, delayed or you are

forced to offer discount to get payment realized. It is always advisable to get credit amended in case of onerous terms and conditions in the L/C which cannot be complied with and ensure that erroneous documents are corrected or replaced. For your possible questions /doubts our team of officers will be happy to assist you. Advantages of Documentary Credits for an exporter: Once complying documents have been presented, payment is effected (in case of sight payment) or the bank specifies a fixed payment date (acceptance, negotiation, deferred payment). The credit-issuing bank is bound to make payment in the form stipulated in the credit irrespective of the buyers willingness to pay. Thus payment is secured. The buyer cannot withhold payment of bills drawn under the credit on any pretext. Payment is generally effected more rapidly under a documentary credit. In cases of acceptance, deferred payment credits, the proceeds of a credit, which matures after sight can be discounted. Thus, the exporter can obtain credit on favourable terms. Documentary Credit for Importers :A documentary credit offers the importer, an effective means of securing performance. It is important that the credit is issued on a sound contractual basis free of onerous conditions enabling the exporter to comply with the terms and conditions and that the documents are correctly defined. As an importer, make sure that all the relevant terms and conditions are incorporated in the credit at the time of its

issuance. Conditions must be documentary and documents must be stipulated to ensure compliance of the credit conditions. As far as possible, onerous clauses should be avoided. Advantages of Documentary Credits for an importer : Backed by State Bank groups' strong reputation, our import letters of credit facilitates importers to arrange supply from overseas sellers from any part of the world at competitive terms. SBBJ's Deferred Payment Guarantee/Stand by L/C facility also provides the importer an opportunity to avail credit from their supplier/supplier's bank. Are not required to pay until the goods have been shipped. Are required to pay only on presentation of the documents stipulated in the credit. Can rest assured that the exporter will endeavor to comply with the terms of the credit, failing which his payment will be in danger. The Uniform Customs and Practice for Documentary Credits (UCP 600) guarantee a uniform international standard for documentary credit transactions.

FINANCIAL SERVICES TO IMPORTERS / EXPORTERS Imports

Letter of credit A Standard Chartered letter of credit gives you the assurance from a world class bank when dealing with unfamiliar suppliers, you can be confident that payment will not be made until the documents are received and verified to be in order. Import bills for collection By informing your supplier to send their shipping documents to Standard Chartered, you will enjoy prompt advice upon our receipt of documents and efficient payment according to your instructions. Shipping guarantee To operate your business efficiently, it is vital your goods be cleared expeditiously. By issuing a shipping guarantee in the shippers favour, Standard Chartered facilitates prompt clearance of goods until bills or lading are received. Import financing Standard Chartered will be able to provide financing solutions to pay for the suppliers documents under letter of credit or import collections. open account invoice financing is also available. Performance bonds and other guarantees Standard Chartered offers tailored solutions to meet all your performance bond and guarantee needs.

Exports If you are in the export business, we can help you with Export L/C advising, L/C Safekeeping, L/C Confirmation, L/C Checking and Negotiation. For financing solutions, tap on to Pre-shipment Export Finance, Export Bills for Collections, Invoice Financing. Outsource your administrative functions to SCBs document preparation service.

Export letter of credit advising Benefit from prompt advising of export letter of credit from a wide international network through Standard Chartered. Export letter of credit safekeeping Rather than be inconvenienced by having to come to the bank to collect your export letter of credit, Standard Chartered will safe keep your original and send you a working copy to facilitate the preparation of documents. Export letter of credit confirmation Exporters may deal not only with unknown foreign buyers, but also with their banks which are less well known institutions and whose letter of credit (LC) may not be sufficient comfort. By requesting Standard Chartered to confirm your export LCs, you obtain our guarantee of payment for document presented in compliance with the credit. Pre-shipment export financing We provide pre-shipment finance against irrevocable letters of credit from or purchase orders in a number of currencies to allow you to trade with confidence. If you need to fulfil a sales contract but need funds to purchase raw materials or process goods for export, Standard Chartered offers you pre-shipment export financing in a variety of currencies.

Letter of credit checking and negotiation Standard Chartered's thorough checking standards will reassure you that your documents will not be rejected. Strict service standards are applied to ensure that your documents are negotiated and despatched quickly. Export bills for collection Simplify dispatch tracking of payment and reconciliation of your export collections when you choose Standard Chartered's documents against acceptance, documents against payment or clean collections. Discounting of export collections is also available. Export invoice financing To tide over any cash flow problems arising from credit terms to the buyers, the exporter may obtain invoice financing pending buyers payment. Document preparation Benefit from lower costs, faster processing and fewer errors outsource to Standard Chartered the paperwork and administrative functions related to your export activities based on your letter of credit or purchase order. Non finance

Customer service in Banking Operations Cheque Drop Box Facility RBI's Committee on Procedures and Performance Audit on Public Services has recommended that both the drop box facility and the facility for acknowledgement of the cheques at the regular collection counters should be available to customers and no branch should refuse to give an acknowledgement if the customer tenders the cheques at the counters.

Issue of Cheque Books: The Committee has observed that some banks do not allow depositors to collect their cheque book at the branch but insist on dispatching the cheque book by courier to thedepositor. Further, it is stated by the Committee that the depositoris forced to sign a declaration that a dispatch by the courier is at the depositor's risk and consequence and that the depositor shall not hold the bank liable in any manner whatsoever in respect of such dispatch of cheque book. Committee has observed this as an unfair practice and advised banks to refrain from obtaining such undertakings from depositors. Banks should also ensure that cheque books are delivered over the counters on request to the depositors, Or authorized representative.Statement of Accounts / Pass Books: The Committee has noted that banks invariably show the entries in depositors passbooks /statement of accounts as "By Clearing" or "By Cheque". Further, in the case of Electronic Clearing System (ECS) and RBI Electronic Funds Transfer (RBIEFTR) banks invariably do not provide any details even though brief particulars of the remittance are provided to the receiving bank. In some cases computerized entries use sophisticated codes which just cannot be deciphered. With a view to avoiding inconvenience to depositors, banks are advised to avoid such inscrutable entries in passbooks statements of account and ensure that brief, intelligible particulars are invariably entered in passbooks / statements of account. Banks may also ensure that they adhere to the monthly periodicity prescribed by us while sending statement of accounts