Chapter one Introductory

Introduction:
Standard Chartered Bank (SCB), Bangladesh (the bank) commenced its banking operations in Bangladesh in 1948 after obtaining banking license from the central bank. Standard Chartered Bank is incorporated in England by Royal Charter 1853, to be read in conjunction with Standard Chartered Bank Act 1984. The liability of its stockholder is limited. As per the asset purchase agreement (APA), between Standard Chartered Bank England and Standard Chartered Grindlays Bank (SCGB) Australia dated 23 December 2002, which has been duly approved by Bangladesh Bank, SCB took over all assets and liabilities of SCGB and commenced operations as a combined legal entity with effect from 1 January 2003. The principal activity of SCB Bangladesh is to provide a comprehensive Range of financial service, commercial banking tae services, cash management treasury and security and custody service

Origin of the report:

This report titled Standard Chartered Banks Credit Management & its Different Aspects is a thesis paper, which is the integral part of MBA program.

Scope of the Study:

The scope of the report is limited at drawing descriptive and analytical rather than critical presentation of SCB. The whole analysis reflects only from Bangladesh point of view.

Objective of the report:

# To familiarize with the techniques of selecting the borrowers, credit investigation, pre- sanction analysis of different types Advances and various operational procedures. # To acquaint with the technique of identification and rehabilitation of nonperforming Loans.
# #

To acquaint with the techniques of loan structuring and pricing. To develop knowledge about the mechanism of credit planing in the context of

Banks credit management.

#

To know what extra facilities its providing to local customers as a foreign bank. of theoretical knowledge in the practical field.

# Application

Research Methodology:
Some fundamental steps of research methodology have been adopted through my specialization field of study of MBA program and also from the fields of other areas. In my study I had to go for personal interaction with the organizational people of Standard Chartered Bank, Dhanmondi Road 2 Branch to conduct the research work.

Sources of information:
Both primary and secondary sources of information were being pursued with regards to the presentations of this study. The following procedure and sources I accessed: # Web page of SCB # Prior researches report on this topic. #Face to face interaction with PFC, Cash officers and Branch sales executive (BSE) to get depth information. #Annual reports of SCB

# Significant amount of information was gathered from secondary sources, such as banks brochures, relevant different printed formats, eBBS statements, Outserves Newsletter.

Limitation of the study:

I have tried my best to provide with all necessary information about SCB supplied by PFC STM and BSE. But due to exhaustive nature of this study most secret & strategic ethics could not be brought in this report. As having the status of the empirical study, this report is subject to following limitations: 1. SCB is fully a centralized bank and all information is available in head office. Branch gets information when special request is made. Branch employees only can know the information thats available in eBBS systems 2. Some of the data are self-generated by ratio analysis, so it was difficult to draw inference. 3. A worthwhile study requires the analysis of as much data as possible covering various aspects of the study. But I did not have access to the various types of information about Loans & advances. 4. To protect the organizational loss in regard of maintaining confidentiality some parts of the report are not in depth 5. I carried out such a study for the first time. So, in-experience is one of the main factors that constituted the limitation of the study.

Chapter Two
Snapshot of Standard chartered Bank

Standard Chartered Bank started its business in Bangladesh in 1948, opening its first branch in the port city of Chittagong. The bank increasingly invested in manpower, technology and premises as its business grew in relation to the country's thriving economy. At present the bank has 18 offices in Dhaka, Chittagong, Sylhet, Khulna, Bogra and Narayanganj including the country's only offshore banking unit inside the Dhaka Export Processing Zone at Savar. It also has several ATM booths and newly opened Auto Billspay services. Extensive knowledge of the market and essential expertise in a wide range of financial services indicate its strength to build business opportunities for corporate and institutional clients at home and abroad. It generates new products and services to match the specific requirements of customers. In Bangladesh Standard Chartered offers 24-hour service through its Moneylink ATMs. Continuous upgrading of technology (especially in IT sector) and control systems has enabled the bank to offer new services, which include unique ATMs, Call Centre and Auto Billspay service. Standard Chartered Banks services in Bangladesh, ranges from Personal & Corporate Banking to Institutional Banking, Treasury and Custodial services. With over 150 years of experience in trade finance and an extensive international branch network, Standard Chartered is committed to help customers succeed in every competitive environment. SCB applies state-of-the-art technology to automate daily operations and electronic delivery system has been put in place to ensure that transactions are handled swiftly and efficiently. It adopts a proactive approach in tailoring customized packages to meet customers' everchanging needs. 2/A 1853 Set up by James Wilson in 1853, at the request of Queen Victoria, the Standard Chartered Bank aimed to finance and manage trade between the British Empire and its colonies in India, Australia and China. It mainly operates in Asia-Pacific, Latin America, the Middle East and Africa. In all, it has 500 branches in 56 countries. 1858
6

Year wise progression of the Standard Chartered Bank

The overseas branch of the Chartered Bank open in Calcutta, Bombay and Shanghai followed by Hong Kong and Singapore in 1859. 1862 The Standard Bank is incorporated in England and under the new title of The Standard Bank of British South Africa Limited. 1957 The Chartered Bank and The Standard Bank incorporated as Standard and Chartered Banking Group Limited. 1969 Merger of The Standard Bank and The Chartered Bank by the incorporation of Standard and Chartered Banking Group Limited. 1973 Standard Chartered acquires the Hodge Group, whose operating company later becomes Chartered Trust Limited.

1985 Parent company of the group renames Standard Chartered PLC. Standard Chartered Bank becomes a clearing bank within the UK clearing system. 1993 Receive the very first Best Bank in Asia awards from Euromoney magazine.

2000

On 27 April, ANZ announced the sale of its Grindlays businesses in the Middle East and South Asia, and associated Grindlays Private Banking business, to Standard Chartered PLC. ANZ announces US$8 million strategic investment in Hong Kong, online stockbroker, BOOM.com. ANZ announces sales of Grindlays to Standard chartered for US$1.3 (A$2.2) billion in cash. 2004 Number of shares 1,174,520,020. Number of employees (31/12/2003) 30,000. It has 500 branches in 56 countries. At present the bank has 18 offices in Bangladesh.

2/B

Global Market

Standard Chartered Bank has its wide variety of products and services are available the following countries:

Africa

Tanzania,

Ghana,

Zimbabwe,

Gambia,

Morocco,

Tunisia,

Mauritius, Zambia, Nigeria, Ivory Coast, Kenya, Uganda, Botswana, Malawi, Seychelles, Mozambique, Ethiopia Latin America Middle East Asia Europe Argentina, Brazil, Chile, Colombia, Mexico, Venezuela, Peru Egypt, Lebanon, Oman, Bahrain, Jordan, Qatar, Kuwait, Saudi Arabia, UAE India, Korea, China, Taiwan, Philippines, Bangladesh, Cambodia, Pakistan, Sri Lanka, Vietnam, Myanmar, Fiji Czech Republic, Malta, Turkey, Cyprus, Poland

Chapter Three
I did the following jobs in SCB under consumer Banking:

10

3/A. Account opening: 3/A-1:

current, access, Foreign currency account (FC), Resident foreign currency accounts (RFCD). Requirement for personal account: current, savings and access (single) 1.AOF: Properly fills up the account opening form (AOF) 2.introduction: Duly introduced by an existing accounting holder having satisfactorily relationship with Standard Chartered Bank for at least six months Photograph; one copy of account holder photo graph duly signed by introducer 3.Nominee: signature of nominee on the AOF with fill up the given portion also with a photo duly attested by applicant. 4.Documents: valid passport/ driving license/, voter ID card,/ Holopnama from Notary public with photo signed by authority(affidavit is not acceptable), organizational photo ID.(commissioner certificate, certificate from Gazetted officer is not acceptable ) NB. Any kind of over writing must be signed by applicant in AOF Name, fathers name, mothers name, date of birth, address, have to match with supplied documents. Transaction profile is one of the integral parts of all account opening. Personal account: This account is eligible for individual for savings, It comprises of savings, transaction, investment, loans repayment, payroll purpose.

3/A-2 : Sole proprietor, trust, partnership, NGOs:

Requirement: Fill up AOF with sole proprietorship declaration Trade license Tin certificate Passport of proprietor/ main signatory One copy of photo graph. In addition to that Partnership deed in case of partnership Passport of all partner KYC (form -2) required for all partner

11

3/A-3: Foreign currency account (FC):

Usually it is introduce for the person of wage earners out side Bangladesh. It is also a foreign currency account. In addition to the normal requirement job contact letter, copy of utility bill to verify address if applicant write down foreign address are also necessary .Any Bangladeshi nationals who receive salary in non local currency s/he also can open this account. Requirement is almost same

3/A-4: Resident foreign currency account (RFCD):

This is a foreign currency account, usually dollar / GBP/Euro account. A person needs to visit outside Bangladesh and can open this account within 30 days of arrival. To get an international credit card it is mandatory. This account opening needs approval from head office. This account holders does not get any chequebook or ATM card, they only deposit and withdraw foreign currency over the counter showing passport. Minimum amount is $1000 or 500 pound. Code of this account is 01 Requirements: Fill up of AOF Passport copy with arrival date Approval from head office RFCD declaration

3/B: Statement and certificate preparation:

Statement is send to the correspondence address o f account holder according to instruction. Some time they need statement on urgent basic for visa purpose. At that time we receive a request in a prescribed form with verifying signature .we deliver it in the next working day. We charge 200 and 15% vat for statements for last one year over the counter. If he requires more than one-year statement then we send to account service and it takes 3 days to delivery. Certificate is a complicated one. It is normally for tax purpose. We give certificate concerning interest receive and tax deducted at sources on the account. We give

12

certificate-seeing account existing information or taking documents from customer. It is charged from his account. We dont mention the word guarding us. NB: no statement or certificate would be delivered If minimum balance of the account below 230 Solvent. It is completely restricted. We may add another statements according to customer instruction after safe

3/C: ATM card services:

Every ATM has expire date. It required replacing. I received the request of ATM with prior one and send it to account service. Customer collects I after 3 working days. ATM replacement / new issue charge is 345(300+ vat)

3/D: Account services: 3/D-1: Address change: customers some time want to change mailing and permanent
address. They fill up a form and give supporting documents for his address (in case of permanent address change). Supporting documents may be DESA, WASA, PHONE bill copy etc This is free of cost.

3/D-2: Signatory change (delegation of authority): some time customer wants to add new
one as joint signatory. Customer fills up a form and a signatory card where new applicant signature duly attested by him/ her. A copy of passport or voter ID or driving license is required for new applicant

3/D-3: signature change: if customer want to change signature he have to provide his
any valid document (required for account opening) and a copy of photograph with form.

13

3/E: Account closing:

Customers have to surrender his chequebook and ATM card at the time of closing. Closing charge is 575+ excise duty (it is applicable if customer has more than 100000 bal. in last 6 month) + any DR balance.

3/F: Purchasing of Sanchaypatray

Bank purchase Sanchaypatray only on behalf of account holder:

3/F-1: 5 years Sanchaypatray:

Requirement: Filling up the prescribed form. Check the balance whether available or not. Match the signature and verify it. Prepare KYC and PFC sign Finally BSSM approval for send

3/F-2: 3monthly interest bearing Sanchaypatray

Requirement: Same as 5 years Sanchaypatray:

3/F- 3 :pensioner Sanchaypatray:

Requirement: 1. Retirement certificate from department Original copy o pension book Original copy of pension certificate Original copy of gratuity certificate Filling up purchase form NB: A person cannot purchase Sanchaypatray beyond the total amount he /she receive at the time of retirement.

14

3/F-4 : Wage earners bond (USD):

Bank purchases wage earners development bonds (WEDB) on behalf of customers. Customers who have foreign currency account can purchase the bond. The rate of interest is 12.5%.

3/G. Locker service: 3/G-1: Locker opening:

Bank provides safety locker service to it s customers. Any account holder can take it. Account holder need to fill up a form with specimen signatory card. Signatory may not be more than three. In the form locker holder must mention the account number from where locker charge will be debited. After clarify all things we allocate the applicant a locker and give him a key. Type Small Medium Large 4200 5400 Annual charge 3000 Size 4.5x 7x23.5 4.5x14x23.5 7x14x23.5

3/G-2: Locker visiting:

Locker holder can visit any time within 9 am to 5 p.m. from Saturday to Wednesday. But in Thursday visiting time is 9 am to 2 p.m. customer would sign the visiting record and locker custodian will verify it.

3/G-3: Locker charge:

Locker holder is charged BDT 115 for per visit within office hours (e.g.: 9 am to 3 p.m. from Saturday to Wednesday. Thursday 9 a.m. to 1 p.m.) No charge within the time 3p.m to 5 p.m. and 1pm to 2 p.m. customers are not allowed to visit if his account balance is sufficient to deduct charges (yearly & per visit charge).

15

3/G- 4: Locker closing:

If any one wants to surrender the locker, s/he needs to surrender the locker key and visit the locker finally with custodian. We keep the key in the volt and re allocates it.

3/H Call center:

Recently bank inaugurates a center from where customer can know all the account related & credit card information. He /she need to fill up a call center form and s/he will given a password (TIN). This password is his identity to give information. Call center facilities are: --- Information on account balance --- Information of the last 5 transactions ---Request a chequebook --- Request a bank statement --- Receive information on foreign currency exchange rate. --- Talk to a phone Banker regarding: Information regarding other products & services of standard chartered Bank. Changing of account address Information on remittance Informing bank about lost or captured ATM card Stop cheque instruction Receive instruction from customer to prepare pay order / demand draft to be collected at the branch. Other account opening assistance

16

3/I: Receive & delivery of UDC/PDC:

When the customers close his loan his UDC/PDC (previously given by him) come back to branches. We give entry in a registrar and locked it in a box. When customers come to receive it, we receive a acknowledgement from him and give him UDC/PDC after verify signature.

3/J: Welcome packs stock maintaining:

Welcome pack contains an ATM card and the chequebook. It is given at the time of account opening if customer want. We request around 30 welcome pack of current, savings and access account to account service according to muster number in a printed form. We receive welcome and our BSSM acknowledge it. We store these in volt. Every morning we bring out 5 welcome of each type. At the end of the day we balance the welcome in a prescribed form and return it to volt after signing the balance by cash manager and BSSM.

3/K: Customers Queries:

Over the counter I respond to customer queries. Common quires was account balance, money arrival, account opening, account closing, ATM replacement, chequebook stop, ATM stop, loan closing,

17

Time Study:
TYPES Average service time : Minimum Maximum Average waiting time: Minimum Maximum Average no: of customer serve TIME 1.72 minutes 1.45 minutes 2.04 minutes 9.79 minutes 7.21 minutes 11.43 minutes 792

I observe that around 12-15 minutes requires serving a loan customer. At that time PFC can not concentrate to others. Because customer want to know different loan interest, installment tenor process of sanction etc. some customer wait to talk the specific PFC. at that time he \she booked chairs thats makes other standing. More over a normal customer with general queries can solve the problem through call centre

Motion Study:
The layout of the bank can be changed to serve the customers in the best way. Customers sometimes found roaming here and there in the bank because they do not have the proper instruction as to where he/she shall be served and how he /she will be served. That is why a lot of time spends for a single customer by this time 2 or 3 customers could be served. So each and every employee of the bank should know their assigned task as well as they should know the overall banking solution so that they can serve / assist the customer in the spot. But the employee should bear in mind that he/she have to do his assigned job first. Figure shows quick customer service at the right way possible.

18

Chapter-Four
A Dianosis of Loans & Advances

4/A- Detailed Analysis of Loans & Advances:

19

Year Loans and Advances: Secured overdraft Staff loan Term loan Loan against import Bills discount and purchased Total

2003

2002

7,275,547,592 435,726,837 25,962,399,760 4,286,335,045 1,279,391,954 39,239,421,188

6,401,067,569 139,845,463 18,390,689,558 3,578,856,917 1,017,490,489 29,527,949,996

4/B --Maturity grouping of loans and advances: Types Payable on demand Less than three month More than three months but less than 1 year More than 1 year but less than 5years More than 5 year Total 2003 8,215,659,067 7777,372,125 8,336,397,248 11,934,791,868 1,695,808,926 37,960,029,234 2002 7,009,991,483 6,826,460,386 5,127,079,139 9,163,694,782 383,233,717 28,510,459,507

4/C --Loans advances insides and outside Bangladesh: Types Inside Bangladesh Outside Bangladesh Total 2003 37,960,029 ---37,960,029 2002 28,510,459 ---28,510,459

20

4/D --Loans and advances on the basis of significant concentration: Loans and advanced to the Chief Executive and Other executives (head) 4/E --Total number of customers having credit facilities of more than 15% of the banks capitals was 10 and outstanding amount was TK 5,780,603,378 as at 31December 2003.This does not include any adversely classified loans. 4/F---- Particulars of loans and advance: Description Debt considered good in respect of which the Bank is fully secured Debt considered good for which the Bank holds on other security than the debtors personal security Debts considered good and secured by the personal security of one or more parties in addition to the personal security of the debts. Debts considered doubtful or bad ,not provided for Debts taken by directors or executives or any of them taken jointly or separately with other persons. Debts due by directors or officer of the bank or any of them either severally or jointly with any other person and debts due by companies or firms in which the directors ,partners or managing agent or in the case of private companies are members Maximum total amount of advance, including temporary advances made at any time during the period to directors of the Bank are interested as directors, partners or managing agents or, in case of private companies, as a members. Due from other banking companies Loans against which legal action/ 433045008 proceedings are taken to recover . Loans written off during the year 349,441,104 2003 33,454,674,187 5,784,747,874 2002 9,070,633,415 2,023,594,167 154,731,492 62,065,384

645687000 2,532,430

21

4/G--Bill discounted and purchased: 1. Inside and out side Bangladesh: Inside Bangladesh Outside Bangladesh Total 2003 1,216,799,408 62,592,546 1,279,391,954 158,840,555 402,909,645 717,641,754 1,279,391,954 2002 1,001,080,038 16,410,451 1,017,490,489 124,305,701 315,309,688 577,875,100 1,017,490,489

2. Maturity wise
Less than 1 month More than 1month less than 3 months More than 3 months less than 6 months More than 6 month Total

4/H--Geographical location wise loans and advance (including bill discounted and purchased) Year Area Dhaka Area Chittagong Area Narayongonj Sylhet Bogra Total 2003 29,410,873,884 9,009,268,445 264,377,696 400,991,682 37,841,289 39,239,421,188 2000 22,330,834,765 6,891,283,292 305,831,939 29,527,949,996

22

Geographical Location Wise Loans

KHULNA Bogra Narayongonj Sylhet

Chittagong Area

Dhaka Area Chittagong Area Narayongonj KHULNA Sylhet Bogra

Dhaka Area

4/I --Unclassified, classified, doubtful and bad loans and advances:

(Including bill discounted and purchased) Year classification Unclassified Substandard Doubtful Bad\ loss Total 2003 38,158,891,188 119,322,000 222,794,000 738,414,000 39,239,421,188 2002 28,982,354,996 22,339,000 1,764,000 521,492,000 29,527,949,996

A graphical presentation of classification of Loan:

23

Classification of Loans

Doubtful 1%

Substandard 0%

Bad\ Loss 2%

Unclassified Substandard Doubtful Bad\ Loss

Unclassified 97%

Latest Loan information as at 30 June 2004 (according to types of Loans) Amount in Thousand Types of Loan Personal Flexi Auto BIL BFS Over Draft Cash Line Credit Card Received 659,417 1,826,599 849,034 3,,321,975 183706 15771 Approved 362,897 652,354 495,485 92,225 158706 1074679 10397 Target 462,475 1,053,605 486,004 882,403 141205 11568

24

Loans Application ,Approved And Target Relationship

3500000

3000000

2500000

2000000 Amount (000) 1500000 Received Approved Target

1000000

500000

0 Personal Flexi Auto BIL Types of Loans BFS Over Draft Cash Line

Sectors-wise classification of loans and advances (including bill discounted and purchased) Year Sectors
Personal Mortgage Personal Agriculture, hunting, forestry and fishing Manufacturing Electricity, gas and water Construction Real estate 360,899,142 15,994,053,896 779,586,000 14,024,558,169 1,802,268,000 91,061,000 1,315,000 108,442,138 11,775,723,755 291,702,390 11,513,181,156 1411316861 116994871 89,653
25

2003

2002

Commerce Transport &communication Community ,social and personal services Financing ,insurance and business services Banks

1,659,994,000 1,587,901,000 916,218,000 1,284,378,000 737,188,981

1,278,956,664 822,745,404 615,885,342 920,476,311 672,435,451

Total

39,239,421,188

29,527,949,996

Sectors Wise Loan & Advances(2003)

18000000000 16000000000 14000000000 BDT Amount 12000000000 10000000000 8000000000 6000000000 4000000000 2000000000 0
or tg ag e hi ng at er g rs on al ur in w f is

15994053896 14024558169

1802268000 360899142 779586000 91061000 1315000

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1659994000 587901000 1 1284378000 916218000 737188981

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26

Standard chartered bank Bangladesh branches Financial highlights As at 31st December 2003 St 1 2 3 4 5 6 7 8 9 10 11 Particulars
capital- fund deposit with Bangladesh bank total capital including retained earnings Surplus/ shortage of capital Total of assets total deposit total loans and advances Total contingent liabilities Profit after tax and provision Amount of loans classified during the year Amount of provision against classified loans Provision surplus/ shortage

2003
845900504 4957008961 2439732001 57376039295 45467743899 39239421188 43031852153 1953674738 487554147 (4637999) 157878000

2002
830519447 4174076000 2330177000 51934162827 39692634989 34507799291 40796872573 1142571767 42445794 446641770 239531000

27

12 13

Interest expenses Non interest bearing assets interest bearing assets

1801679531 5608423823 51767615472

1507916632 8771011849 43163150978

Standard chartered bank Bangladesh Interest rate matrix (effective-01 may 2004)
A. deposit rates 1. current account(LCY & FCY): minimum balance required interest rate 2. savings account (LCY) Minimum balance required BDT 100000 BDT 50000 or equivalent no interest is paid

monthly average balance Interest rate Below BDT 100000 0.00% BDT 100000 up to BDT 500000 4.00% BDT 500000 up to BDT 1000000 4.25% BDT 1000000 and above 4.25% Note: other condition apply (e.g. maximum number/ amount withdrawal) 3.super saving account (LCY- ) client relationship Account Operating saving account(OSA) balance Interest rate Up to BDT250000 0.00% Above BDT 250000 3.50% I f balance falls below 250000 on any day during a month, interest will be forfeited for Monthly average balance Up to BDT 5 million Above BDT 5 million to BDT 10 million
28

that full month Account Investment savings account(ISA) Interest rate 5.00% 5.50%

Above BDT 10 million to BDT 15 million Above BDT 15 million to BDT 20 million Above BDT 20 million 4. Resident foreign currency deposit account (RFCD)

6.00% 6.25% 6.75%

Minimum balance required USD 1000 or GBP 500 or equivalent. No interest to be accrued if the balance falls below the minimum amount. Interest rate based on international market rate and Bangladesh bank guidelines to be advised by global market to all branches from time to time.

5. STD Account- consumer banking: Minimum balance required BDT 250000. if the balance falls below 250000, no interest will be accrued interest rate 3.00% to 5.00% .6. STD Account- client relationship Minimum balance required BDT 250000. If the balance falls below 250000, no interest will be accrued Interest rate 3.00% to 7.50% 7. fixed deposit (LCY) - consumer banking: Minimum amount required: BDT 100000 tenor 1 month 3 month 6 month 1 year BDT 2m& below 5.00% 6.00% 6.4% 6.5% Above 2 m & up to BDT 10 M 5.50% 6.2% 6.5% 6.75 Above BDT10m 5.5% 6.3% 6.75% 7.00%

29

Chapter Five
Details of Loans & Advances

Cash Line

30

Cash Line is a fully secured lending facility. It is intended to meet the emergency cash needs of the customer. The customers money is tied-up in investments but he needs cash now. Rather than pulling out his investment, he can take a Cash Line and meet his immediate need. To this end, there are 2 basic types of Cash Line: a) Overdraft b) Fixed Loan Meaning of fully cash-secured Fully cash secured means that customers can get this facility by pledging/ liening a security that is either cash or can be very easily converted to cash. The amount of the loan is at best, can be equal to the value of the security. securities that can be easily converted to cash The securities that SCB considers can be easily encased are Government issued security bonds, ICB units, Fixed Deposit Accounts of SCB. How much cash security is required to get this Loan? Since this is a fully cash secured facility, security is more that the loan amounts. Generally, 80% to 90% of the security present value is approved as loan. Loan amount determined by the present value of the security, not face value.

Meaning & differences of present value & face value

Face value means the amount of money that none would get if he en cashed the security today. Sometimes, present value of a security is more than the face value because of interest that has accrued on that security. The difference between the two is that, present value is always higher that the face value of the security. Present value contains interest receivable amount, if any. The calculation for cash line loan amount is determined by present value

LTV Ratio LTV means Loan-to-Value. Value. Other words the ratio between the loan amount and the value of the security deposited. The value here is the present value. Generally, LTV ratio is
31

in the range of. 8 to. 9 or 80% to 90% of the present value of security. Rarely, LTV ratio of more than 90% is given as loan. For that, Head of Credit & Collections and Head of Consumer Bankings approval is required.

LTV ratios for various forms of Security

No, not all types of security will get the customer a loan amount that is 90% of their securitys present value. Listed below are the different maximum LTV ratios for different types of security: Up to 90% of the face value of Fixed Deposits of our Bank Up to 90% of the encasement value of Government Savings Certificates issued by our Bank. Up to 80% of the encasement value of Investment Corporation of Bangladesh (ICB) Unit certificates. Up to 80% of the encasement value of Government Savings Certificates issued by other Bank. The issuing branch must be in a city where SCB has a branch. Deposits of transaction A/c like STD A/c, Savings A/c, Current A/c, even if it is with SCB are not accepted as security by CCU. Overdraft in CASHLINE? Cash Line Overdraft is an overdraft facility. The limit of the facility is 90% of the security value pledged to SCB. Fixed Loan in Cash Line? Cash Line Fixed Loan is an installment loan payable in either monthly or quarterly installments. The amount that the customer has top pay each month is called EMI-Equated Monthly Installments. who can get Cash Line Both Salaried executives and self-employed/businessmen can get Cash Line. purposes for which customers can get Cash Line Customers can get Cash Line for any of the following reasons:

32

House renovations Purchase of Personal Computers Marriages in the family Purchase of refrigerators Advance rental payments Purchase of furniture Trips abroad Office renovations Hospitalization or other emergency medical needs Higher professional or tertiary education/ professional training Purchase of office equipment/ accessories Purchase of miscellaneous household appliances Note: Cash line can be taken for reasons that are not mentioned above, as long as it is not an illegal activity.

Minimum and Maximum Loan available under Cash Line

Minimum Loan Amount: Tk.80, 000 Maximum Loan Amount: TK.5, 000,000 interest rates in Cash line? Overdrafts Installment loans Builet Payment loans 13% Interest Rate PA 11% Interest Rate PA 11% Interest Rate PA Bullet Payment Loan? Bullet Payment Loan is a fixed loan to be repaid at the end of the loan period. The difference is that customers can pay their interest installments quarterly rather that monthly. Customers also have the option of paying down the principle amount any time they feel like.

Minimum and Maximum Tenors of Cash Line

Minimum Loan Tenor: 12 months Maximum Loan Tenor: 60 months For Cash Line OD, the facility has to be renewed annually.
33

Procedure of Loan disbursement

The loan will be disbursed by crediting the account of the client. The customer mentions the account where the loan will disburse or the account that an overdraft limit will be attached to. If the applicant does not have an account with us an account is opened with zero balance for the loan purpose.

Fees & charges of Cash Line

Processing Fee: 1% of approved loan amount or BDT 2000, whichever is higher. Other Charges: BDT 1000 for overdraft renewal charge at annual interval. Early settlement Fee: BDT 1000 Principal reduction fee for bullet Payments: BDT 500 every time

Third Party Security Third Party security is security in a persons name that is not the applicant. Third party securities are acceptable to the bank. Formalities in case of 3-rd party security Third party s signature against the specimen attached to the original instrument is to verified Third party instrument to be sent to the issuing office for verification and written confirmation on lien marking and encashment of instrument. Third party s confirmation to be obtained with regard to lien marking and authority for encashment of securities. Loans repayment procedure Cash line Fixed Loan: EMI & Bullet Payments Customers will repay the loan by Monthly Installments for Cash Line Fixed Loan. For Bullet Payment arrangements, customers a/c holders and SCB non-a/c holders. Customers with A/c with SCB: They can put a standing order in their a/c that will automatically take the EMI every month. The benefit of Standing order is, that it can be set for any date of the month.

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Customers with no prior A/c with SCB: They can give Post Dated Cheques (PDC)s for the entire loan tenure. The PDC s will be dated 1st, 8th 15th or 26th of each month Customer will have to choose one date among the four for all ODC s How will the Customers repay the Loans? Cash Line OD: Cash Line OD is a utilization-based product. Interest is based on utilization. Interest is charged daily on the utilization. At the end of the quarter the accred interest will hit the collection account. Since all Cash Line OD customers are SCB account holders, a standing order will be in place on the transaction a/c, which will automatically transfer the interest amount to collection account. penalties for missing an installment The penalty for missing an installment is that an additional 24% penal interest will be charged on the outstanding amount. This interest will be charged daily on the outstanding amount till the customer pays the outstanding. Cash Line ODs limit can be enhanced/ decreased Yes, Cash Line OD limit can be enhanced or decreased. Limit can be enhanced Either by submitting more security. Applying to the Bank saying that the present value of security has increased, therefore his limit can be enhanced. Limit can be decreased by: By withdrawing or en cashing security. Documents required at the time of loan approval During loan approval the documents required are 6-months latest account statement. The security to be pledged must also be with the application papers. In case the loan is over TK. 5lac, a valid identification is required.

Documents required at the time of loan disbursement The documents that must bear customers signature are: Demand Promissory Note
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Letter of Continuation Undated Letter(authorizing the bank to encash security at its discretion) A dated letter authorizing the bank to put date on the undated letter. Letter of Lien & Set-off over Deposit a/c (in case security is FDR). Original receipt of FDR signed & surrendered by customer. Letter of Guarantee (in case security is in 3 rd partys name) Filled in Banking Arrangement Letter. Cross Collectivization

Cross Collectivization means using the same security for tow or more lending facility. Suppose some one has lac worth of 3 MSP. He takes Flexi Loan pledging 3lac of that 3 MSP as collateral. With the remaining 7 lac he took a Cash Line of TK 6.3 lac o. So, this security of 10 lac is used for a Cash Line and a Flexi Loan. Thus the security Is said to be cross collaterized or simple said Crossed In a more complex scenario, a year later, the present value of the security has increased (interest) and by paying his installments he has reduced the outstanding of both facilities. This security required to cover this reduced outstanding is less than what it was a year ago. So now, the customer can apply for another facility with the freed-up security.

Example of charge documents? Demand Promissory Note, Letter of Continuation Letter of Lien and Set-Over Deposit, Letter of Hypothecation these documents are called charge documents. Why are these documents important? Incase the customer defaults on his installment payments, and then these documents will help us establish our right in court to liquidate his loan by encashing customers security. Only the customer can sign on these documents. Bank employees or representatives must not sign or stamp a seal on these pages Methods of verifying signature of applicant

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The best way to verify signature is to stamp a Signature Verification seal on the customers signature on the inside front cover of the booklet. The Person doing the verification must also give his full signature and stamp his/her official seal. In this way, the signature there becomes verified and could be used as reference for all other customer signatures throughout the application form.

If the signature on the security differ from the signature on the application form
If this happens then the loan can still be disbursed, but what is done here is that a Personal guarantee is taken. In that guarantee the applicant signing with the signature on the security is virtually guaranteeing the application form signature. The two Signatures are tow separate entities, one standing in guarantee for the other.

personal loan
It is a loan offered to individuals for some given purposes and is to be repaid by equal monthly installments. No security is needed for this loan. The monthly installment is called EMI.

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Meaning of EMI

EMI or Equated Monthly Installment is the amount a customer has to pay every month to pay back that loan. (Click the underlined words for details of Personal Loan EMI) Persons eligible to get personal Loan

Salaried employees of MNCs, Large local corporate bodies, NGOs, International aid agencies, UN bodies, Airlines. Government employees, businessmen and selfemployed professionals can also get this loan. Since no security is taken, the income of the applicant is given prime consideration. Therefore, based on employment applicants are divided into segments. Different type of segments

Segment 1: Executives of listed local corporate bodies and multinationals which have a corporate relationship with us, have been maintaining their salary A/C with us and have a history of EOSB (End-of-Service-Benefit) payment of their employees through SCB accounts. Example: Executives of Lever Brothers, British American Tobacco Company, Novartis etc. Segments 2: Executives of Supra Nationals sector who have their salary A/C with us. Example: Executives of ILO, World Bank, ADB and other UN agencies. Segment 3: this segment is further divided into 3 categories. Category 1: Employees of corporate bodies, Educational Institutes, NGO who have salary A/C with us only. Category 2: Employees of corporate bodies, Educational Institutes, NGO who are paid salary through A/C with other banks. Category 3: Employees of corporate bodies, Educational Institutes, NGO who are paid salary in cash. Category 4: Self-employed professionals and businessmen.

Reasons for segmentation

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Remember, no security is taken for this loan. The bank considers the salary of the applicants as security. So we segregate the applicants based on their salary and Benefit relationship with us. That is why those whose employers have a corporate relationship with us, they get their salary through SCB and their employer keeps their pension and other staff benefit fund with us are in one segment. We feel that we can assess their income correctly and in case of default are in a good place to collect the remaining amount. UN agencies, ILO, ADB World Bank staffs are considered safe and reliable so they are in another segment. All other are in segment-3. Segment-3 is considered more risky since it contains businessmen and executives who do not get their salary through us or in cash. As you will read through this module, you will learn that since we do not take any security, monthly income becomes very important in giving this loan. Segmentation is done based on their salary and pension with or without us and who their employer is. SCB reluctant to give Personal Loan to the followings. People working in garments, restaurants, car showrooms, trading/ indenting firms, lawyer. Defense Officials. purposes of getting a Personal Loan The purposes for which Flexi Loan can be availed are: House renovation Purchase of miscellaneous household appliances. Marriages in the family. Advance rental payments. Hospitalization or other emergency medical needs. Trips abroad. Higher professional or tertiary education/professional training. Owners of sole proprietorships can apply in their personal name not in their company name. They can take the loan to buy office furniture and machinery but not for working capital and heavy industrial machinery.

Remember: Purpose of the loan must be clearly written in the specified space Most Important: The DB ratio of the applicant must support the loan amount. Differences in loan for the different segments
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The difference is in the maximum loan amount and documentation required. Eligibility criteria for Segment-1 applicants

Nationality: Bangladeshi Salary: Minimum Net monthly Salary BDT 10,000. Work Experience: Minimum 6 months of continuous employment with present employer. Minimum Age: 23yrs Maximum Age: Either 65 years or the loan tenor must end before retirement. The options that will give a lesser number will be taken. Security: No security or Personal guarantee is required for this segment. Interest Rate: 19.5% Minimum Loan Amount: BDT 60,000 Maximum Loan Amount: BDT 1 Million or 15 times of Net Salary, whichever is lower. This segment can get loans of more than BDT 1 Million but the applicants End-OfService-Benefits must also be more than BDT 1 Million. This amount will have to be declared be the employer of the applicant. The loan amount will be equal to the declared amount. This is segment-1s biggest benefit.

Documents required

Salary Payment voucher/pay slip Letter of introduction from HR or Finance or Line manager. Salary assignment from HR/Personal department. Assignment of EOSB (End-of Service-Benefit). Last 6 months a/c statement. Signed Demand Promissory Note. If the applicant wants to repay the loan in more than 3 years then he/she will have to sign the letter of continuation. 1 undated cheque for the entire amount. (To be given only after loan is approved). One Photograph No Personal Guarantee is required for this Segment.

Eligibility criteria for Segment-2

Category 2.3 & 4:

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Nationality: Bangladeshi Salary: Minimum Net monthly Salary BDT 12,000. Work Experience: Minimum 6 months of continuous employment with present employer. For Self-employed & Businessmen: Minimum 3 years in business or selfemployment. Minimum Age: 23yrs Maximum Age: Either 65 years or the loan tenor must end before retirement. The options that will give a lesser number will be taken. For Self-employed & Businessmen: 55 years Security: Only Personal guarantee is required for this segment. Interest Rate: 19.5% Minimum Loan Amount: BDT 60,000 Maximum Loan Amount: For Salary A/C With Other Banks: BDT 1 Million or 8 times of Net Salary, whichever is lower. For Self-employed, Businessmen & those who get salary in cash: BDT 1 Million or 6 times of Net income, which is lower.

Following documents Segment-3 customers will give at the time of application

Category 1,2 & 3 (Salaried Individual):

Salary Payment voucher/pay slip Letter of introduction from HR or Finance or Line manager. Last 6 months a/c statement. Personal Guarantee. Salary certificate from HR/Personal department. Assignment of EOSB (End-of Service-Benefit). Signed Demand Promissory Note. If the applicant wants to repay the loan in more than 3 years then he/she will have to sign the letter of continuation. 1 undated cheque for the entire amount. (To be given only after loan is approved). Post-dated cheques. (if salary a/c is not with SCB) One Photograph

Eligibility criteria for Segment-3 applicants

Category-1: Salary Account with SCB

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Nationality: Bangladeshi Salary: Minimum Net monthly Salary BDT 10,000. Work Experience: Minimum 6 months of continuous employment with present employer. Minimum Age: 23yrs Maximum Age: Either 65 years or the loan tenor must end before retirement. The options that will give a lesser number will be taken. Security: Only Personal guarantee is required for this segment. Interest Rate: 19.5% Minimum Loan Amount: BDT 60,000 Maximum Loan Amount: BDT 1 Million or 10 times of Net Salary, whichever is lower.

Following documents Segment-3 customers give at the time of application Category-4 (Businessmen & Self-employed)

Valid trade License. Certified true copy of Memorandum and Articles of Association of the Limited Co with Form X, Form XII and Form XVII. Partnership Deed for partnership business Personal Guarantee. Bank statements of the last 12 months One undated cheques (UDC) for total payment amount (Installments times the EMI), is required during disbursement of loan. Post dated cheques (PDC) for each EMI (if A/C is not maintaining with us), is required during disbursement of loan. One Photograph

Process of Loan disbursment

The loan will be disbursed by crediting the account of the customer. If the applicant does not have an account with us an account is opened with Zero balance for the loan purpose.

Process of loan repayment

Customers will repay the loan by Monthly Installments.

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Customers with A/C with SCB: They can set a standing order in their a/c that will automatically take the EMI every month. The benefit of Standing order is, that it can be set for any date of the month.

Customers with no prior A/c with SCB: They can give Post Dated Cheques (PDC) s for the entire loan tenure. The PDC s will be dated 1st, 8th, 15th or 26th of each month. Customer will have to choose one date among the four for all PDC s. Time of 1st installment due First payment will be within 59 days after loan disbursement.

Installment payment periods

For Segment 1, 2 & Category 1 of Segment 3: The loan can be paid back in a minimum of 12 installments and a maximum of 60 installments. For Segments 3 (Category 2 & 3): The loan can be paid back in a minimum of s12 installments and a maximum of 48 installments.

Penalties for missing an installment

The penalty for missing an installment is that an additional 24% penal interest will be charged on the outstanding amount. This interest will be charged daily in the outstanding amount till the customer pays the outstanding.

Customer can repay the loan before maturity

Customers can settle the loans before maturity. For that there is an early settlement fee for

Meaning of Top Up
Top-Up: Simply said, Top-Up means additional loan under the same facility. Eligibility for Top-UP

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FIRST, the loan must be at least 1 year old. Existing customers who have never missed 2 installments, consecutively or separately. In other words, only those who have regular repayment record can get top-up of their loan. Remember: One customer can have maximum of 2 top-ups for 1 facility. There will be no 3rd top-up. The customer then will have to apply for a new loan. Additional Loan thing Additional loan is nothing but a new loan given to the same customer. All documentation and eligibility criteria are the same. Additional or subsequent loans are given only when the applicants DB ratio meets our disbursement criteria.

Example of the charge documents Demand Promissory Note, Letter of Continuation, and Letter of Lien and Self-off over Deposit, Letter of Hypothecation these documents are called charge documents. Importance of these documents Incase the customer defaults on his installment payments, and then these documents will help us establish our right in court to liquidate his loan by en cashing customers security. Only the customer can sign on these documents. Bank employees or representatives must not sign or stamp a seal on these pages.

Auto loan
Distinguishing feature;
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Loan amount unto 75% of car value Payable in a maximum of 60 monthly installments Lowest interest rate in the market. Custom designed With standard chartered auto loan it is easier than ever to buy the car you always wanted because only standard chartered offer one the option of buying brand new car, reconditioned car or used car. Auto loan offers complete flexibility in structuring your loan. You can choose your loan tenure, cash security requirement, loan amount and even the interest rate on your facility. Auto loan also offers you an option of early settlement or partials payment of your loan if the need arises. Trouble free There is no requirement to provide personal guarantee or cash security to qualify for an auto loan. If you choose to provide 30% or more of the loan amount as cash security you will enjoy a higher loan amount and discounted interest rate Simple Auto loan is designed to make life easier for you. We offer you easy repayment options and the freedom to choose your repayment period from 1 year to 5 years depending on your car. For your better understanding installment amounts for different tenors for 100000 are shown in the followings

Installment amount for BDT 100000 loan Interest rate 12 months 24 months 36 months 48 months 60 months

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13% 8932 4755 3370 2683 2276 13.5% 8956 4778 3394 2708 2301 13.75% 8967 4790 3406 2721 2314 14% 8979 4802 3418 2733 2327 Please note that interest rate will depend on the security amount you will provide

INCOME ASSESSMENT MODULE FOR AUTO LOAN

Methods for Statement Analysis of Self Employed Professional or Businessmen Background: As of now there has been no formalized income assessment module for calculate income of applicants for auto lone. We have been using modules used for Flexi Loan to calculate incomes. While using these modules we have identified many loopholes and drawbacks, which we have addressed now. In the proposed modules used for different product are described below. Type of Accounts taken into consideration: 1. 2. 3. 4. Note: I. II. For personal accounts, a/c must be in single name of joint names with spouse. Loan Eligibility calculation from Partnership and Limited Company accounts. Personal a/c Proprietorship a/c Partnership a/c Limited Company a/c

To derive an individuals income from company accounts with credit facilities (cc or project loan), firstly the companys liabilities are deducted from the gross monthly credit turnover or average balance to derive the net credit turnover or average balance, respectively. Then the net figure is apportioned to the applicant as per his/her share in the business. Methods Used for Applicant with Repayment History with SCB: Since the risk profit of an existing customer is different from a new customer, methods used to determine income of an existing a/c holder is somewhat relaxed. Following are the methods used for an existing a/c holder.

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Method 1- Consistent Average Balance in a/c: FF This method is used for customers who maintain a steady and consistent balance in their account. We extract the average balance figure from the system and allow a loan amount with PROPOSED EMI if less than or equal to 25% of the average balance. EMI = Average Balance / 4 Conditions Apply: 1. 2. 3. Minimum Balance of the account at any period in the last 12-months must be equal to the EMI amount. Must have at least 1 year of account relationship. Account must be operative/transactional and must match with business nature.

Method 2- Inconsistent Average Balance: FF This method is basically used for customers who do not have required balance in their account, but has a good repayment history. They are eligible to get a loan with EMI equivalent to the EMI of the previous loan they have satisfactory repaid in full within the last 6 months. Conditions Apply: 1. 2. 3. 4. Minimum 1-year repayment history of an EMI based loan. Previous loan was settled not before 6 months of the new application. Previous loan never went to 60+DPD. Previous loan never went to 30+DPD more than twice during the loan tenor.

1.4 Methods Used for Customers with no Previous Borrowing History of a/c Relationship with SCB: Regular a/c with Satisfactory Average Balance: FT The following method is used for customers of this category. Income = Monthly Average Balance * 10%-30% Monthly Average Balance = (Opening Balance + Mid-month balance + Closing Balance)/3; if the customer does not qualify this method, then the following method can be used: Monthly average balances: 30 days actual average balance

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Note: Income has been considered maximum up to 30% of average balance since the average balance is the net figure derived after considering all debits and credits from the account. This is the figure, which can be disposed for any further commitment. Note: % has been increased since average balance is the net figure after considering all debits and credits from the amount. Conditions Apply: 1. 2. 3. 4. For business a/c, transaction in the a/c must match with the nature of business. An a/c with sufficient average balance may not be considered if the a/c transaction does not match with nature of business. Latest 12 months average balance will be taken into consideration. However, latest 6 months average balance will be taken for a/c with declining trend of average balance. When a business a/c statement with over aft facility is provided, average credit turnover of OD a/c is considered to derive income. Trend of monthly average balance will be considered and any extra ordinary average balance of a particular month will not be considered that may have arisen out of a non business transaction like sale of property, liquidation of security or transfer from another a/c etc. A maximum of one inward clearing cheque returned for insufficient fund is allowed over a one-month period.

5.

Overdraft Account with Valid CC Limit: FE This method is basically used for assessing a/c with OD facility. Since the average balance of a/c with OD facility give us a negative figure (Dr Balance), this method is used derive the income. Income = Average Monthly Credit Turnover*2% - 50% Monthly Credit Turnover = Summation of total monthly credits. Conditions Apply: i. The percentage factor of the credit turnover will depend on the of business. ii. Account swing of the overdrawn balance is to be observed. iii. Account discipline of the overdraft a/c is to be observed. A proposal may be declined if overdrawn balance frequently goes over approved limit. iv. Extra ordinary credit that may have arisen out of a non-business transaction like sale of property, liquidation of security of transfer from another a/c etc will not be taken into consideration.

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v. vi. vii. viii.

Trend of average monthly credit turnover and natural of transaction is matched with nature of business. In case of mismatch, the application may be declined. A maximum of one inward clearing cheque returned for insufficient fund is allowed over a 3-month period. A maximum of 15-day grace period is allowed for regularization of excess, only at quarter ends. Credit may decline applications if the excess seems to be inauthentic or exaggerated.

Average Credit Turnover in Regular Account (New approach) FR This method is used for accounts with strong credit swing but weak EOD balance. Under this method Limited Company account, proprietorship account, partnership account and personal account can be considered. Income = Average Monthly Credit Turnover*2% - 50% Monthly Credit Turnover Summation of total monthly credits. Condition: PROPOSED EMI must be less than or equal to 25% of the average balance of the account (company or personal) based on which the loan is assessed. Conditions Apply: i. For business a/c, transaction in the a/c must match with the nature of business. An a/c with, sufficient average balance may not be considered if the a/c transaction does not match with nature of business. ii. Latest 12 months Credit Turnover will be taken into consideration. However, latest 6 months average credit turnover will be taken for a/c with declining trend of credit. iii. Trend of monthly current transactional account will be considered and any extra ordinary credit volume of a particular month will not be considered that may have arisen out of a non business transaction like sale of property, liquidation of security or transfer from another a/c etc. iv. A maximum of one inward clearing cheque returned for insufficient fund is allowed over a 3-month period. v. The percentage factor of the credit turnover will depend on the nature of business. vi. Account swing is to be observed. vii. The average balance of the said account must be equal to 4 times of the proposed loan EMI. viii. The balance in the said account at any given point of time remains sufficient to cover 1 loan EMI. Income Assessment Method for Self-Employed Professionals and Landlords:

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Conditions Apply: i. ii. iii. Only personal a/c in single name or in joint name with spouse is taken into consideration. The credit in the a/c has to be regular as per the nature of the income. The lump sum credits that may have arisen out of sale of property, security or any other extra ordinary credits that does not match with the nature of the income will not be taken into consideration.

Income Assessment Method for Self-Employed Doctors: FD There are a lots self employed professionals (like doctors) who deals in cash and thus their financial worth is not truly reflected in their bank statement, but they are socially renowned & earn a handsome amount from consulting practices. They also have demonstrated satisfactory repayment behavior earlier. Net Income Credit Turnover = Up to 50% of Average Credit Turnover in the personal a/c = Summation of all monthly credits

Income Assessment Method for Landlord: FL There are a lots self employed personnels (like Landlord/Landlady) who deals in cash and thus their financial worth is not truly reflected in their bank statement, but they are solvent & have credit worthiness. They also have demonstrated satisfactory repayment behavior in different times. The basic quest of credit is to find out the ability and willingness of a customer to reply the loan. Net Income = Declared rental income supported by the rental agreement & verified by third party agency. Conditions Apply:

At least 25% of declared rental income should be reflected in the a/c. Valid rental agreement should be provided with cash vouchers along with related title deed.

Income Assessment Method for Self Employed Professionals (Accountants/ Consultants, Engineers, Architects): FP
It has been observed that particular classes of self employed professionals like Engineers, Accountants; Consultants hold a very respectable position in the society having strong peer influence. These professionals tend to be committed to their profession during their entire career. Overall repayment history of this segment is also satisfactory as their cash inflow

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deemed to be regular due to their profession and their career are also extended beyond the normal retirement age. These professions can continue and flourish in their career as freelancers without depending on others.

Net Income

= 25% of Average Credit Turnover in the personal a/c = 10% - 25% of average Credit Turnover in the company account (Provided account is a sole proprietorship account) = Summation of all monthly credit

Credit Turnover

Income Assessment for Customers with Multiple Bank Statements:

It has been observed that due to the volatile financial environment & shifting of office of the businessmen, these customers tend to shift their account one bank to the other and hence fails to meet the 1-year relationship with other bank as per the PDD criteria. As per the standard module, fractional bank statements (5 months from one bank and the rest from other to make a complete one-year of transaction) are not considered. Through these statements contain continuity of substantial transaction.

Net Income = as per calculation guideline given earlier for Average balance and Credit turnover.
Condition Apply: i. ii. iii. All conditions will remain in force as advised under average balance and credit turnover methods. However proper justification has to be given to retrieve the true reason for a/c hopping within 1 year. Maximum 2 fractional statements must make up the basic requirement of 1 year. Only one switch in the last 1 year is accepted. Main a/c has to be maintained for a minimum of 1 year and the support a/c for at least 6 months to be acceptable for income assessment.

iv.

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Flow chart of Flexi Loan process

DSE/PFC/STM Consumer Credit Unit (Approval) Contact Point Verification (CPV) Statement Verification 52

Approved Loans

Declined Return to Source

Asset Ops Disbursement

Meaning of Flexi Loan Flexi Loan a partially secured loan facility given for any legitimate purpose. The loan can be either partially secured of fully secured. The security for the loan should be in a readily encashable form.
This loan is repayable in Equated Monthly Installments _EMI Flexi Loan cannot be taken as working capital or any business purpose Maximum Loan Installment is 60 installments Minimum Loan Amount: BDT 100,000 Maximum Loan Amount: BDT 5,000,000

Persons eligible for Flexi Loan Flexi loan targeted for

Employees of reputed Loan Corporate, Multinationals, NGOS, private universities, International Aid Agencies, UN bodies and Airlines. Government Employees Self-employed professionals (Doctors, Engineers, Chartered Accountants and Architects) Businessman

Persons not eligible for Flexi Loan

People working in any sole-proprietorship / partnership firm(garments, restaurants, car showrooms, trading/ indenting firms) Defense officials. Business experience less than 3 years.

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purposes for which Flexi Loan sanction The purposes for which Flexi Loan can be availed are very particular. They are:
House renovation Marriages in the family. Advance rental payments. Higher professional or tertiary education/ professional training. Purchase of Miscellaneous household appliances

purpose for which Flexi loan cannot be taken Flexi Loan cannot be used for business purposes like working capital and buying industrial machinery. But doctors, architects, Cash, engineers who have private practices can use this loan to buy their office machines, office equipments/ accessories or office renovation. Interest rate of Flexi Loan Interest Rate: Interest rates depend on readily encashable/ cash securities are provided by the clients. Rates are:
14% annually If security value = 100% of loan amount 16% annually If security value = 50% to 99% of loan amount 18%annually If security value = 30%to49% of loan amount processing Fee: 1% of approved loan amount or BDT 200, whichever is higher

Note : Readily encashable/ cash securities need to be acceptable to bank.

Tax Total Deduction Other Allowance House rent allowance Total other Allowance Net Salary Tk (11,000) Tk (22,000) Tk 10,000 Tk. 10,000 Tk. 73,000

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He has a Personal Loan of SCB with an EMI of TK. 3,362 He has credit card with the limit BDT 100,000

Now, he wants Flexi Loan of Tk. 8.25 lac for 4 years. His DB ratio will be: (All EMIs +3% of credit card limit) / Net Monthly income His EMI for new Flexi loan will be: 29.24 x 825 = 24,123 per DB ratio = (3,362 + 24,123 + 3,000 + 6000) / (73,000 + 6,000) = (36,485 / 79,000) = 0.46 or 46% is within his DB ratio. So he will get the Loan.

Meaning of EMI
EMI or Equated Monthly Installment is the equal amount a customer has to pay every month to set off that loan. Interest rate 14% 15% 16% 18% 12 Months 89.79 90.18 90.73 91.68 EMI table for Flexi-loan 24 Months 36 Months 48.01 34.10 48.40 34.58 48.96 35.06 49.93 36.02 48 Months 27.25 27.24 28.24 29.24 60 Months 23.19 23.70 24.21 25.25

How will you get the actual EMI amount from this table: Select the tenor (months) and the interest rate. Then multiply the loan amount in thousands with the corresponding factor and you will have the EMI for that tenor and that interest rate. For example: Mr, Rizvi, a businessman, wants to take a Flexi loan of Tk. 20 lac by providing 35% readily encashable / cash security. He wants to repay the loan in 3 years. So his tenor will be 36 months, interest rate will be 18%and the corresponding factor will be 36.02.That will be multiplied by 2000, since 20 lac means 2000 thousand. Therefore, his EMI will be: 36.02 x 2000 = 72,040. Similarly, someone wanting a 12 lac Taka loan by providing 50% readily encashable / cash security for 2 years would have an EMI of: 1200 x 48.96 = 58,752 Note: EMI must be within the Debt- Burden Ratio. You have the option to advice the customer to take a lower amount of loan if the EMI does not support his DB ratio.

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Example of DB Ration Calculation: Mr. Junayed is a salaried Executive of a Large Local Corporate. Monthly Gross-Income Deductions Provident fund (5000) comntribution Internal Loan (6000) Payment
Tk. 85,000

Meaning of Debt-Burden Ratio Debt-Burden Ratio (DBR) is the ratio between applicantss proven monthly income and his / her total monthly repayment commitments towards all loans and credit card. So, DB Ratio = (All EMI s +3% of Credit Card limit)/ Net Monthly Income Net monthly income = Gross salary (provident fund + taxes + Leave Fair Allowance +Bonus; yearly, quarterly, if shown in the monthly break down) It represents the portion of his / her monthly income which can be used to service the loan installment or EMI. The monthly EMI of the proposed loan facility also need to be included while calculating the DB ratio. Acceptable DB ratio is different for different income levels. For Flexi loan they are: Income Ratio 25,000-34,999 35% 35,000-49,999 40% 50,000 + 50% Eligibility criteria for Self- employed professionals and Businessmen to get Flexi loan Minimum Age Maximum Age Minimum Total Monthly Income Location Telephone Nationality 23 yrs 55 yrs but the duration of the loan must end before age 60 12,000 Taka Must live in a city where SCB has a branch Must have either a personal mobile phone or a phone in residence Bangladeshi

Income is assessed through tax returns and bank statement.

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SCB A/ C holders have to provide latest 6-monts statement Other Bank A/C holders have to provide latest 12 months statement.

Procedure of Loan disbursement

Existing account holder

The loan will be disbursed by crediting his / her account

Non- Account Holder The loan will be opening a new account with zero balance for the loan purpose.

Minimum or Maximum Loan amount available under Flexi Loan

Minimum Loan Amount: BDT 100,000 Maximum Loan Amount: BDT 5,000,000

Following Factors are considerable for loan amount

Applicants monthly income Monthly expenses Other monthly commitments Credit card balance Security detail Customer type and as prescribed by Credit & Collection Unit.

Minimum or maximum loan installment for different cases No, the number of maximum installments is not the same for all cases. It depends on the loan amount. Maximum Installments:
Loan amount Tk.1 Lac- Tk. 5 lac Tk. 5 Lac- Tk. 10 lac Tk. 10 lac- Tk. 50 lac Loan amount 36 Installments 48 Installments 60 Installments

Types of security that are accepted for Flexi Loan

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For Flexi Loan the acceptable securities are:

Fixed Deposit (FD) of bank Govt. security bond Wage Earner Dev. Bond (WEDB)issued by Standard Chartered or other banks from branches in cities where SCB also has branches ICB unit certificates

Process of loan repayment

Customers will repay the loan by Equal Monthly Installments (EMI). The repayment method is different for SCB A/C holders and SCB non A/C holders. Customers A/C with SCB: They can put a standing order in their A/C that will automatically take the EMI every month. Customers no prior A/C with SCB: They can give Post Dated Cheques (PDC) s for the of each month.

Time to pay the installments

First payment will be within 30 days after loan disbursement

Following documents should be given at the time of application For Businessmen &Self- Employed professionals

Application form filled in

Latest Bank Statement: 6-12 months Proprietorship Business A/C: Valid Trade License Partnership Business A/C: Certified true copy of Memorandum & Articles of Association with Form XII and Form XVII For OD A/C: Copy of the offer letter of the facility is to be submitted with the statement Details of security to be submitted Copy of valid Trade License & TIN cerificate must be attest by Branch official / Sales Manager as O /S Original seen

Note: In case the loan is Tk.5 Lac or over Tax Identification Number (TIN) & CIB clearance from Bangladesh Bank are required Charge documents and these documents importance

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A Demand Promissory Note, Letter of Continuation, Letter of Lien and Set-off over Deposit, Letter of Hypothecation these documents are called charge documents. Incase the customer defaults on his installment payments, then these documents will help us establish our right in court to liquidate his loan by encashing customer s security. Only the or representatives must not sign or stamp a seal on these pages. Top-Up: Simply said, Top-Up means additional loan under the same Facility.

Eligibility for Top-Up

The loan must be at least 1 year old Existing customers who have never missed 2 installments, consecutively or separately In other words, other words, only those who have regular repayment record can get top-up of their loan. .One customer can have maximum of 2 top-ups for 1 facility. There will be no 3 rd topup. Then customer then will have to apply for a new loan.

Introduction of additional loan

Additional loan is nothing but a new loan given to the same all documentation and eligibility criteria are same. Addition or subsequent loans are given only when the applicants DB Ratio meets our disbursement criteria.

Methods of verifying signature of applicant

The best way to verify signature is to stamp a Signature Verification seal on the customers signature on the Inside front cover of the booklet. The person doing the verification must also give his full signature and stamp his/ her official seal. In this way The signature there becomes verified and could be used as reference for all other customer signatures throughout the application form.

If the signature on the security is different from the signature on the application form
If this happens then the loan can still be disbursed, but what is done here is that a personal guarantee is taken. In that guarantee form the applicant use the same signature, which signature(s) is (are) used on the security. These two signatures are two separate entities, one standing in guarantee for the other.

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What are the penalties for missing an installment?

The penalty for missing an installment is that an additional penal interest @ 24% annually will be charged on the missing installment amount. This interest will be Charged daily on the missing installment till the customer pays the outstanding Installment.

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Business Financial Services:

A new era of consumer banking dawned on the 1st of march ,2004 when Bangladesh become the first country in the middle east and south Asia region of standard chartered bank to offer banking facility for the small and medium enterprise segment with BFS. Currently it is offering of Letter of Credit (L/C), guarantee, overdraft and Business loan. For an emerging economy like Bangladesh, the small and medium enterprise (SME) segment is the engine of growth .BFS is a prime manifestation of the banks focus on the market and introducing products and services that address the need of its chosen segment. Business Loan has been a Hit in the market with total outstanding already reaching BDT 890 million at July end. SCB is the first foreign Bank to offer such packaged services in Bangladesh. This loan is given as: # Bank over draft # Installment loan # Revolving loan #Letter of credit #Guarantee

TERMS AND CONDITION

In consideration of Standard Chartered bank (together with its successors and assigns hereinafter called ;the Bank)agreeing to grant me \us (together with its successors and assigns hereinafter referred to as ;the customer )loan facility the facility under Flexi Loan applied for by me \us, herein ,I\ we agree that by signing the declaration below we shall be bound by the following terms and condition; 1. The facility shall be made available for the customer form date of the Banks acceptance of this application until such time as stipulated in any latter and this facility shall be a continuing one until full adjustment with interest and other change.

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The Bank is authorized to open and maintain for the purposes of the facility in addition to any current \ overdraft accounts (s) utilized in respect of the facility ,such other or further account (s)as in necessary for the purpose of administering and recording payments by the Customer in respect of the facility. 3.a) Interest rate is floating and can be re-fixed at the Banks sole discretion. 3.b) Interest on the facility shall accrue at the rate as mentioned in banking Arrangement Letter or at such other rate to be re-fixed form time to time at the Banks sole discretion .Any repayment ,whether in part or full ,or facility will be attributable fist to interest which has accrued on the facility and than to principal . The rate of interest determined by Standard Chartered Bank form time to time shall remain in full force and effect a if the facilities granted to the borrower were still in force, even tough the account \accounts in the customerss name with the Bank are closed, become dormant or are subject to litigation,until settlement of all the customers liabilities to the Bank . 3. Prepayment penalty will be charged on the outstanding amount as and when decided by the Bank. 4. All payments required to be made respect of the facility shall be made by the customer on the respective due date and the customer hereby irrevocably authorizes the Bank to debit any of the customers with the bank with all amounts owing in respect of the facility ,including interest ,charges and expenses (together the indebtedness)at such time as the same shall become or be due and payable and transfer such sum to the Loan account for adjustment , but in any case the customer shall always remain liable and agrees to make payment in full of all such to the bank . 5. The Bank is further authorized to enforce all or any of the securities executed \kept by the customer in favor of the Bank, which may include, but is not restricted to, any or all of the following; 1. Demand promissory note 2. Deposit A\c held with the Bank or any other Bank 3. Monthy\3 Monthly \ 6 Monthly sanchaya 4. Pratirakkha sanchaya patra

2.

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5. Bangladesh sanchaya Patra 6. ICB Unit Certificate 9. Undated Chaque 7. WEBD 10.Other 8. Post dated Cheques

1. The Customer irrevocably authorizes the bank to encase the securities duly discharged and kept with the Bank as securities as security at its absolute discretion in the event the loan account become irregular and small apply the proceeds towards adjustment of the outstanding loan liabilities along with all legal fees . The Customer further agrees (s0 that the Bank shall have irrevocable lien on any fixed depositor any account maintained by the Customer with the Bank. 8. In the event of normal death of the Customer, the Bank shall be entitled to en cash the securities and adjust the dues first before any refund is made to the heirs \ nominees. 9. Save and except in the case of manifest error, the banks statements and records shall be binding on the Customer and constitute conclusive evidence of debt for all purposes. 10. If at any time, any provision of hereof becomes illegal, invalid or unenforceable in any respect .the legality, validity and the enforceability of the remaining provisions shall neither be affected nor impaired thereby. 11. The bank reserves the right to alter these terms and conditions at any time on notification to the Customer. 12. Any notice made by the Bank in respect of the facility shall be in writing and made to the address given by the customers to the Bank and shall be deemed to have been served on the Customer 3 business days form the date of posting. 13. If the declaration below is signed by more than one person as Customer, the liability of each such person is thereunder, and those terms and conditions shall be joint and several. These terms and conditions shall be governed by and construed in accordance with the laws of Bangladesh and the Customer and the parties hereby irrevocably submit to the nonexclusive jurisdiction of the courts of Bangladesh.

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Loan documents required: To deals with a loan customer PFC tell about different documents. There are no printed copies of the requirements. Followings are the requirements at a glance

Personal loan:
Type of customer Service holder 1.Bank statement (one year) 2.Gruanter one person with photo & visiting card AVP,VP,Manager, Astt. Manager) 3-salary statement approved by HRD 4, one copy of photo 5 passport /voter ID/notary public Businessman

Sole proprietor 1. Trade license .2.Bank statement (one year) 3 One copy of photo 4 passport/ driving license/ voter ID/ notary public Article of association Memorandum of association Schedule 10 Board resolution Incorporation license

Limited 1.Trade license

company

2.Bank statement (one year) one copy of photo 4 passport/ driving license/ voter ID/ notary public

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Rate of interest is: 18%. Its going to be 17%. Rate of interest vary with negotiation

Auto loan:
Type of customer

Service holder 1.Bank statement (one year) 3-salary statement approved by HRD 4, one copy of photo 6 7 8 passport /voter ID/notary public Quatation from showroom Tin certificate

Businessman

Sole proprietor 1. Trade license .2.Bank statement (one year) One copy of photo 4 passport/ driving license/ voter ID/ notary public 5. Quotation from car showroom Article of association Memorandum of association Schedule 10 Board resolution Incorporation license

Limited company 1.Trade license 2.Bank statement (one year) one copy of photo 4 passport/ driving license/ voter ID/ notary public

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Rate of interest is 13%. Maximum amount of loan is 40 Lac. Bank will provide 75%of Price or 40 Lac which ever is lower. Maximum tenor is 48. Flexi loan: Sole proprietor; 1. Trade license .2.Bank statement (one year) 3 Tin certificate 4. One copy of photo 5 passport/ driving license/ voter ID/ notary public limited/partnership Trade license Bank statement (one year) Tin certificate Article of association Memorandum of association Schedule 10 Maximum loans amount 12 Lac. Tenor 5 yr. 50 % of sanctioned amount must deposit as fixed. Rate of interest is 14%.

Business financial services:

Sole proprietor Bank statement of all banks customer maintain Tin certificate Trade license 3 years Incorporation certificate Limited/ partnership Bank statement of all banks customer maintain Tin certificate Trade license 3 years Incorporation certificate Board resolution Memorandum & article of association Maximum amount is 60 Lac. Rate of interest is 14%. 50% of loan amount need to deposit as fixed.

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Case line: A product that offers you the best of both worlds, permitting ready access to cash without disrupting interest-earnings on fixed investments. It provides ready access to cash against quasi-cash investment papers like Terms deposits (Lcy / Fcy) Savings Certificates, Wage Earners' Development bonds, ICB units certificates etc.). Other features: Both Revolving & terminating options. High utilization Limit (based on security value). Quarterly payment of Interest (only on the outstanding amount). No commitment fee (on unused limit).

This loan is sanctioned against FDR. It is 100% secured. Two types are here. One is Over draft and another is every month installment (EMI). Rate of interest in case of OD 10%, in case of and EMI 10.5%. Tenor 5 years

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Credit Cards
Standard Chartered Credit Card comes with a winning combination of value packed features and benefits. Types of credit cards
1. Gold Master Card 2. Silver Master Card 3. VISA Silver Card

Month Jan Feb March April May June

Closed card reinstate 27 134 68 87 78

closed card reinstate 150 100 50 March June Jan Feb April May 0 closed card reinstate

Month Jan Feb March April

Activate 1904 1517 2276 1754

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May June

2468 2408

activate 2500 2000 1500 1000 500 0

activate March April May Feb Jan June

Requirements to get a credit card (LCY): Service holder Filling up a credit card application form Tax identification certificate One year bank statement Passport One copy of passport size photograph Businessmen Filling up a credit card application form Tax identification certificate Trade license One year bank statement Passport One copy of passport size photograph

4.1.5.2Benefits Wide Acceptance

Standard Chartered Credit Card is accepted at over 3500 merchant outlets around the country. Wide range of merchants include hotels, restaurants, airline and travel agents, shopping malls and departmental stores, hospitals and diagnostic centers, jewelry and

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shops, electronics and computer shops, leather goods, mobile and internet service providers, petrol pumps and many more! This number is increasing everyday to cater to customers needs.

Easy Credit

With Standard Chartered Credit Card customers have the convenience to pay as little as 5% of their outstanding on the card account every month. Instant Cash Advance

Customers do not have to carry cash anymore if they have a Standard Chartered Credit Card. customers can withdraw cash up to 50% of credit limit from any of the branches or ATMs across the country. Rewards Program

Standard Chartered Credit Cards offer a reward program. Rewards catalog is packed with a variety of products and gift. Rewards can be selected based on the number of points the customer has earned. For every TK 50 spent on credit card, customer will earn 1 treasure point.

SafetyNet Insurance

SafetyNet insurance comprehensively covers the entire dues on the Credit Card in the unfortunate event of death or permanent disability of the primary Cardholder. Every Standard Chartered Credit Cardholder is automatically enrolled in SafetyNet with a 2 months free trial period.

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All Accidental Death Insurance

The Standard Chartered Credit Card gives you an All Accident Insurance coverage up to TK 100000 (for silver card) or TK 500000 (for Gold Card) in case of accidental death. This coverage is also applicable for supplementary Cardholders.

Standard Chartered International VISA Credit Card Standard Chartered International VISA Credit Card simplifies customers travel and eliminates the need to carry cash. Benefits Worldwide recognition and acceptance. Standard Chartered International VISA Credit Card is welcomed and Customer can pay as little as 5% of the amount due every month. Standard Chartered International VISA Card allows cash advances from Customer can avail cash advances from 398,000 VISA member offices Customer can avail cash up to 50% credit limit.

honored at over 18 million establishments in more than 160 countries.

550,000 VISA ATMs worldwide. around the world.

Supplementary Card Standard Chartered International VISA Credit card holders can enjoy the convenience of supplementary card for their spouse, children over 18 years of age or any family member or friend. Benefits
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To avoid overspending customer can also set a spending limit of his/her

choice, which will be the maximum amount that the supplementary card holder can spend in a month. If the customer loses his/her card, he/she has nothing to worry about. Customer is covered for all fraudulent charges as soon as it is reported. Customer needs to make sure that he/she reports the loss immediately on discovery. The Call Center is open 24 hours a day and 365 days a year for assisting customers. Service & price charge Guide for Local Cards Mater card gold General Payment due date from 15 Days 15 days 15 days Visa Silver Master card Silver

statement date Minimum amount due Cash advance limit Maximum interest free days available Fees Annual fee(BDT) Annual fee for first

5% or BDT 500 whichever is Higher 50% of credit limit 45 Days 45 Days 45 Days

3000 and 2000

1500 1000

1500 1000

additional Supplementary card Cash advance fee Tk.100 or 2% which ever is higher Cash replacement fee 500 200 200 Other fees and charges(all cards) Finance charge ( daily average 2.5% per month balance method) Over limit charge Late payment charge Duplicate statement Returned cheque Copy of sales voucher Certificate charge Out station cheque processing 500 500 50 500 100 100 100 200 200 50 500 100 100 100 200 200 50 500 100 100 100

Service & price charge Guide for international Cards

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International visa gold General Payment due date from 15 Days

International Visa classic 15 days

statement date Minimum amount due Cash advance limit Maximum interest free days available Fees Annual fee(BDT) Annual fee Supplementary card Cash advance fee Cash replacement fee Other fees and charges(all cards) Finance charge ( daily average balance method) Over limit charge Late payment charge Duplicate statement Returned cheque Copy of sales voucher Certificate charge Out station cheque processing

5% or $10 whichever is Higher 50% of credit limit 45 Days 45 Days

USD 120 60 2.5% 15

USD 70 35 2.5% 15 2.5% per month 15 15 5 15 10 15 15 15 15 5 15 10 15 15

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Different ratio analysis:

. Ratio Deposit Loan ratio Classified to total Loan ratio Loan Asset ratio Bad debt ratio Interest income to loan ratio Interest expense to deposit & borrowings ratio Provision for loan ratio Net Profit to interest income ratio Return on Asset Return on investment Year 2003 86.3% 2.75% 68.385% 1.88% 11.28% 4.00% .26% 44.6% 3.41% 42.63% Year 2002 86.94% 2.66% 71.18% 1.76% 8.23% 3.28% .27% 37.18% 2.20% 29.69%

Some eye catcher ratio: From the above analysis it is praiseworthy that ROI has increased by about 13% and also ROA by 1.21%. Collection dept performance is not good enough because bad debt ratio has increased. As bad debt is higher than last year why does provision for loan is little bit less than previous year, is not understandable. Contribution of interest to net income has increased by around 5%. Average interest on loan as well as interest expense has also increased.

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Recommendations and Conclusion:

The following recommendations are made based on responses from questionnaire and over the counter claim at the time of customer service. Recommendations for customer service: 1 Call center need to popularize. It will reduce customer queue and bothering. Customers account related queries except closing and claim can solve through call center at any time. 2. In case of locker visiting, option of cash payment for visiting need to introduce. Because locker-visit record keeping, vouchers preparing is time consuming relating to BDT 100. More over some customer have not available balance. 3. Customers want statement and certificates immediately. Day to day request can be delivered with cash payment because voucher preparing, Checking then entry is a length process and time consuming for a PFC. 4. Complaint manager system is good. But complaint mail is not good enough. Bank can set up a complaint box and customer will put the complain liter into the box. at the day end PFC open the box ,screening the letter ,try to solve it or send to cmanager.

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5. Customers are not so much aware about different charges. They claim to the bank after debiting their account. SCB can inform them before imposition of new charges. 6. DSE need adequate training and information about day to day change in different requirements. 7. It is recommended that branch performance should not hit by DSE account opening return Recommendations for Loans services: 1. A good linkage is essential between front office & back office. Because if a Loan application decline PFC faces customer queries and dissatisfaction. 2. To encourage loan repayment, Loan closing fee and Early settlement fee need to reconstruct. Because customer claim against these. 3. Inspect the reasons of great variation between Loan application and approved that shown in the graphical presentation on page . Also instruct the person how to clarify a loan application. 4 Verification process needs to improve. Because customer are not willing to give confidential information to unknown. In this situation back office can contact to PFC or BSE/DSE to give more information not declining the application immediately. 5. SCB can offer different incentives to reach loan target such as a. Concession interest rate. b. Offer to adjust interest & principal money for classified loan if a lump sum amount is paid. c. Can arrange SCB Loan week d. Relaxing some requirements of loan that is far from target.

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Conclusion: the main purpose of the report was to focus on the lending services to its valuable customers and the credit management provided by Standard chartered bank as comprehensively as possible. Although I did not have much time to learn the whole procedures but it was supportive to understand and gather an initial banking management experience. As the long-term performance of any organization is depend on its intake of qualified people and developing them to perform their best as a team, as well as individually. To cope with the recent challenges of banking sector SCB is creating an environment where employees are happy to build their career and customers feel good doing business with them

Annexure-A
Consumer banking schedule of charges Item Current accounts
Minimum account opening amount Ledge fees BDT account Ledger fees FCY accounts of both Bangladeshi and foreign nationals Average balance fees BDT account BDT 50000 Nil Nil BDT 500 half yearly (if monthly average balance falls below BDT 50000 , in any Transaction fees Monthly minimum balance fees Savings account and extra value savings accounts(Evsa) BDT 100000 Minimum account opening amount Ledger fees / monthly minimum balance fees Average balance fees BDT 300000 EVSA Nil BDT 500 half yearly (if monthly average balance falls below BDT 100000 for month during the period) BDT 12.50 per entry from 8th transaction (7 free entries) Nil

Charge

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savings and BDT 300000 for EVSA, in any month during the period) Access account Minimum account opening amount Ledger fees / monthly minimum balance fees Over the counter cash withdrawal Average balance fees Cash/ travelers cheque Issue of FCY cash & TC customer Issue of FCY cash & TC non customer/ or against cash payment in LCY Travelers chques enactment- customer BDT20000 Nil BDT 50 per withdrawal Nil 1%+BDT 200 Not allowed Our TC free Other TC-.25% Travelers chques enactment- non customer Minimum BDT 500 Our TC free Other TC-.25% Minimum BDT 1000 Intercity transactions BDT 1 to BDT 100000 Deposit to any account- free Withdrawal from savings account- BDT 100 charge to account holder BDT 100001 to BDT 500000 Withdrawal from other accounts- free Deposit to savings account- free Deposit to current- BDT 150, charged to the account holder Withdrawal from account- BDT 150 charged to account holder BDT 500001 to BDT 1000000(deposit & withdrawal both) BDT 1000001 to BDT 5000000(deposit & withdrawal both) Over BDT 5000000(deposit & withdrawal both) Fund transfer Cheque on selves/ pay order issue-(customer BDT 250 charged to the account holder BDT 500 charged to the account holder BDT 1000 charged to the account holder

.10% (minimum BDT 100, maximum 500)

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only) Cancellation of LCY draft pay order Issuance of FCY Draft Others charges Fees for personal cheque book from the 2nd item onward Fees on destruction of uncollected cheque book and ATM cards Instant in house account to account fund transfer( on an urgent basis) Dishonored cheque-due to insufficient funds ATM card annual fees ATM cards replacement fees

BDT 250 USD 10 BDT 200(applicable for account not maintaining required monthly average balance) BDT 200 per item ( at the end of 2nd month from the date of issuance) BDT 100 BDT 500 per cheque BDT 150 BDT 300

NB 1.vat is applicable @ 15%on all fees and charges 1. The bank reserve the right to assess charges on transaction which are not covered by this schedule and to amend without prior notice the terms, condition or rate, stated in this schedule

Questionnaire
I am a student of Dhaka University MBA program (major in AIS). This questionnaire is developed solely with the purpose serve the customer satisfaction on consumer banking of standard chartered bans. All the data provided here by the respondent will be only used for this purpose and will be kept confidential to any other parties. I will be grateful, if you kindly spare some of your valuable time to fill out the questionnaire.

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Thank you Name: Address: Age: Occupation: Income: Questions: 10000-20000 20001-30000 30001-40000 above 40001 20-30 30-40 40-50 above 50

1.Maintaining account with: 2. What is the driving factors to open an account in SCB?
Social status Technology driven Exclusive product & service Easy to operate from anywhere Multinational Bank

3.Who influence to open an account?

Self sales executive advertisement any existing account holder

4. Types of account
Savings account FC account current account RFCD account access account

5.what problem have you faced in account opening?

1. Manifold requirement compared to other bank 2. 3 working days to open an account

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others what did you face

6. Do you use ATM card?

Yes

No

7. What are the reasons for not using the ATM?

Operating procedure Risky capture problem other

8. Which site you, use more? 9. Do you use Auto bills pay? 10.Have you a call center password?
11 What you prefer most? Call center Yes No

Yes

No

Over the counter solution

12.What are the problems you facing over the counter service? Long queue point solution Space problem person are not giving you to the

13. Why do you not deposit money through ATM?

Acknowledgement problem Process is unknown others not use so I also

14.Have you any complain to charges? Which one?

Relationship fee visiting fees statement & certificate fee ATM fee Locker

15.How long have you been maintaining an account?

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16.which part do you think SCB need to improve?

Comment about service Satisfied Not at all Dissatisfied Moderate

17. Your valuable suggestion.

Bibliography
1.Face to face interaction with PFC and other credit personnel to get in depth information. 2. Primary information sources, such as questionnaire, information gathered at the time of customer service.

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3 Secondary information sources, such as product brochures, different printed format, manual and guidelines for PFC, Booklet of Loan application.

4. Outserve Newsletter Bangladesh (2004) volume1, issue 2

5. Prior research work and reading material on this topic 6. Annual Report of SCB, 2003. 7. Web site of SCB

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