1

CHAPTER 1- INTRODUTION
1.1 OVERVIEW OF BANKING INDUSTRY
1.2 FOREIGN BANKS IN INDIA

2

1.1 OVERVIEW OF BANKING INDUSTRY IN
INDIA

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector
banks (that is with the Government of India holding a stake), 31 private banks
(these do not have government stake; they may be publicly listed and traded on
stock exchanges) and 38 foreign banks. They have a combined network of over
53,000 branches and 49,000 ATMs. According to a report by ICRA
Limited(Information and Credit Rating Agency), a rating agency, the public sector
banks hold over 75 percent of total assets of the banking industry, with the
private and foreign banks holding 18.2% and 6.5% respectively.
The growth in the Indian Banking Industry has been more qualitative than
quantitative and it is expected to remain the same in the coming years. Based on
the projections made in the "India Vision 2020" prepared by the Planning
Commission and the Draft 10th Plan, the report forecasts that the pace of
expansion in the balance-sheets of banks is likely to decelerate. The total asset of
all scheduled commercial banks by end-March 2010 is estimated at Rs 40, 90,000
crores. That will comprise about 65 per cent of GDP at current market prices as
compared to 67 per cent in 2002-03. Bank assets are expected to grow at an
annual composite rate of 13.4 per cent during the rest of the decade as against
the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is
expected that there will be large additions to the capital base and reserves on the
liability side.
The Indian Banking Industry can be categorized into non-scheduled banks and
scheduled banks. Scheduled banks constitute of commercial banks and co-
operative banks. There are about 67,000 branches of Scheduled banks spread
across India. As far as the present scenario is concerned the Banking Industry in
India is going through a transitional phase.
The Public Sector Banks(PSBs), which are the base of the Banking sector in India
account for more than 78 per cent of the total banking industry assets.
3

Unfortunately they are burdened with excessive Non Performing assets (NPAs),
massive manpower and lack of modern technology. On the other hand the Private
Sector Banks are making tremendous progress. They are leaders in Internet
banking, mobile banking, phone banking, ATMs. As far as foreign banks are
concerned they are likely to succeed in the Indian Banking Industry.
In the Indian Banking Industry some of the Private Sector Banks operating are
Standard Chartered Bank, IDBI Bank, ING Vyasa Bank, SBI Commercial and
International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector
include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad
Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express
Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking
Industry.

4

o COMPOSITION
Banking in India originated in the last decades of the 18th century. The first
banks were The General Bank of India which started in 1786, and the Bank
of Hindustan, both of which are now defunct. The oldest bank in existence
in India is the State Bank of India, which originated in the Bank of Calcutta
in June 1806, which almost immediately became the Bank of Bengal.Around
the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the
Indian Mutiny, and the social, industrial and other infrastructure had
improved. Indians had established small banks, most of which served
particular ethnic and religious communities.
The period between 1906 and 1911, saw the establishment of banks
inspired by the Swadeshi movement. The Swadeshi movement inspired
local businessmen and political figures to found banks of and for the Indian
community. A number of banks established then have survived to the
present such as Bank of India, Corporation Bank, Indian Bank, Bank of
Baroda, Canara Bank and Central Bank of India.
The RBI was nationalized on January 1, 1949 in terms of the Reserve Bank
of India (Transfer to Public Ownership) Act, 1948.By the 1960s, the Indian
banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as a
large employer, and a debate had ensued about the possibility to
nationalise the banking industry.
In the early 1990s, the then NarsimhaRao government embarked on a
policy of liberalization, licensing a small number of private banks. The next
stage for the Indian banking has been setup with the proposed relaxation in
the norms for Foreign Direct Investment, where all Foreign Investors in
banks may be given voting rights which could exceed the present cap of
10%, at present it has gone up to 74% with some restrictions.
5

Currently the banks are classified according to 2 types. The firs type is
according to the shareholding pattern and second is on the terms of
balance sheet size. According to the terms of shareholding patterns there
are Public Sector Banks, Private Sector Banks, Co-operative Banks and
Financial Institutions. Public Sector Banks are those banks in which the
government holds 51% of the stake. Private Sector Banks are those banks in
which the government can control activities only through RBI and
government does not own any stake in these banks. A co-operative bank is
a financial entity which belongs to its members, who are at the same time
the owners and the customers of their bank. Financial Institution are those
which collects funds from the public and places them in financial assets,
uch as deposits, loans, and bonds, rather than tangible property.
On the other hand, according to the size of balance sheet there are large
banks, mid size banks and small sized banks. Large Banks are those banks
that have balance sheet of more than Rs. 24000 crore. Mid-size are those
banks having balance sheet less than Rs. 24000 crore and having more than
20 branches. Small sized banks are those banks having balance sheet less
than Rs. 3000 crore and less than 10 branches.
Today, also after the coming of foreign and private banks, public sector
banks own the most assets of the banking industry in India. Public Sector
Banks own 75% of the banking industry, Private Sector Banks own 18% and
Foreign Banks own 7%. Still public sector is the largest player in the Indian
Banking Sector.

6



Public Sector Banks
75%
Private Sector Banks
18%
Foreign
Sector Banks
7%
Asset Share
7

1.2 Foreign Banks in India
Foreign banks have brought latest technology and latest banking practices in
India. They have helped made Indian Banking system more competitive and
efficient. Few years back, Government came up with a road map for expansion of
foreign banks in India.The road map had two phases. During the first phase
between March 2005 and March 2009, foreign banks had to establish a presence
by way of setting up a wholly owned subsidiary (WOS) or conversion of existing
branches into a WOS. The second phase that commenced in April 2009 after a
review of the experience gained after due consultation with all the stake holders
in the banking sector. The review examined issues concerning extension of
national treatment to WOS, dilution of stake and permitting mergers/acquisitions
of any private sector banks in India by a foreign bank.
Major Foreign Banks in India is:-
y Stundurd Churtered Bunk
Standard Chartered Bank is a London based bank, currently operational
within over 70 nations with more than 1,700 branches and 73,000 strong
workforces as of April 2009. Although the bank is located in Britain, still a
huge chunk of its revenues originate from the continents of Asia, Africa and
Middle East.
y Cltlbunk
Citibank is one of the largest banks in the U.S., and is a part of the financial
services company Citigroup. Citibank had been founded in the year 1812.
Initially its name was City Bank of New York, which was later changed to
First National City Bank of New York.

y +SBC Ltd

HSBC Bank is a subsidiary of HSBC Holdings plc, a London based banking
giant which, according to the Forbes magazine, is the largest banking group
in the world, and the 6th largest company in the world as of April 2009.
8

y $Perlcun Express Bunk Ltd

With its headquarters located in New York, U.S., American Express
Company is a global financial services provider, also known as AmEx in
short. American Express had been established in the year 1850, and is well
known all around the world for its dedicated Credit Card, Travelers Cheque
and Charge Card services.
y Burcluys Bunk

Barclays GRCB India is led by Samir Bhatia as its Managing Director. In a
short period of just two and a half years, Barclays GRCB India has placed
itself amongst the most respected foreign banks in the country that is
serving more than 830,000 clients.
y 'eutsche Bunk

Deutsche Bank, headquartered at Frankfurt in Germany, ranks among the
global leaders in corporate banking and securities, transaction banking,
asset management, and private wealth management. It is one the world's
leading international financial service providers with roughly EURO 2.2
trillion in assets and approximately 80,000 employees.
y 5Ryul Bunk RI ScRtlund
The Royal Bank of Scotland plcis one of the retail banking subsidiaries of
the Royal Bank of Scotland Group plc, and together
with NatWest and Ulster Bank, provides branch banking facilities
throughout the British Isles and is headquartered in Edinburgh, Scotland. It
operates in all the main business and financial centers across India with
around 28 branches supporting more than 1.3 million customers. Their
support division has global hubs, based in Chennai and Delhi, providing
technology and other back office services.
ABN Amro Bank has now been renamed as RBS.

9






CHAPTER 2- LITERATURE REVIEW
2.1 LITERATURE REVIEW

10

2.1 LITERATURE REVIEW
A Role of Foreign Banks in India
By M. Thyagarajan (Sr. Lecturer in Commerce); J. Udhayakumar (Lecturer in
Commerce) and Dr. S.N.S. College of Arts and Science (Saravanampatti,
Coimbatore-641006)
INTRODUCTION
A large number of foreign banks are now keen on opening shop in India to gain a
critical mass by April 2009, when private banking space is expected to open up for
foreign players. Foreign Banks in India always brought an explanation about the
prompt services to customers. After the set up foreign banks in India, the banking
sector in India also become competitive and accurative. The share of foreign
banks in the business done in the country (deposits and advances) has been
hovering between 5 and 7 per cent during the past decade.

A new rule announced by the Reserve Bank of India for the foreign banks in India
in this budget has put up great hopes among foreign banks which allow them to
grow unfettered. Now foreign banks in India are permitted to set up local
subsidiaries. The policy conveys that foreign banks in India may not acquire Indian
ones (except for weak banks identified by the RBI, on its terms) and their Indian
subsidiaries will not be able to open branches freely.
There are twenty-nine foreign banks are present in India through 273 branches
and 871 offsite ATMs. Besides, there are 34 foreign banks operating through
representative offices. Four have set up shop in the past one year. They are Banco
Bilbao VizcayaArgentaria, Spain's second largest bank; Italy's Banca di Roma; the
Dublin-based Depfa Bank Plc.; and National Australia Bank Ltd. Given a chance, all
banks would like to convert their representative offices into branches.
Standard Chartered Bank, the oldest foreign bank that came to India 150 years
ago, now operates the maximum number of branches, 83. It is followed by HSBC,
which entered India in 1867, with 47 branches. Citibank has 39 branches and ABN
Amro, 28 branches. The only other bank that has a double digit branch presence
is Deutsche, 11.
11

List of major Foreign Banks in India

ABN-AMRO Bank
Abu Dhabi Commercial Bank
Bank of Ceylon
BNP Paribas Bank
Citi Bank
China Trust Commercial Bank
Deutsche Bank
HSBC
JPMorgan Chase Bank
Standard Chartered Bank
Scotia Bank
Taib Bank
By the year 2009, the list of foreign banks in India is going to become more
quantitative as numbers of foreign banks are still waiting with baggage to start
business in India
Upcoming Foreign Banks in India
By 2009 few more names is going to be added in the list of foreign banks in India.
This is as an aftermath of the sudden interest shown by Reserve Bank of India
paving roadmap for foreign banks in India greater freedom in India.

The following are the list of foreign banks going to set up business in
India

y Switzerland's UBS
y US-based GE Capital
y Credit Suisse Group
y Industrial and Commercial Bank of China


12

Reasons for foreign bank enter in India

o India's GDP is seen growing at a robust pace of around 7% over the next
few years, throwing up opportunities for the banking sector to profit from.
o The credit of banks has risen by over 25% in 2004-05 and the growth
momentum is expected to continue over the next four to five years.
o Participation in the growth curve of the Indian economy in the next four
years will provide foreign banks a launch pad for greater business
expansion when they get more freedom after April 2009.
o RBI is following a liberal branch licensing policy for those foreign banks who
want to go to the unbanked pockets. They have started sensing enormous
business opportunities in financing trade and small and medium sectors in
small towns in the world's second fastest growing economy.

WTO and India about foreign banks operations
India had committed to the World Trade Organzation (WTO) in 1997 to give 12
new branch licenses to foreign banks every year, including those given to new
entrants and the existing players. However, the Indian regulator has all along
been allowing foreign banks to open more branches, going beyond its
commitment to WTO. In fact, in the last four years till October 2007, it has given
its nod to 75 new foreign bank branches and many more ATMs (which do not
come under WTO norms).
Standard Chartered Bank, the oldest foreign bank that came to India 150 years
ago, now operates the maximum number of branches, 83. It is followed by HSBC,
which entered India in 1867, with 47 branches. Citibank has 39 branches and ABN
Amro, 28 branches. The only other bank that has a double digit branch presence
is Deutsche, 11.
Despite their growing presence, foreign banks still have a very small market share
in the Indian banking industry6.11% of total deposits and 6.83% of total loan
advances. But their returns from Indian operations are far higher than those of
their local counterparts. For instance, the average net profit per branch for
foreign banks in India was Rs11.99 crore last year against Rs33 lakh for the public
sector banks that account for close to 70% of the industry. The return on assets
13

for foreign banks last year was 1.65% and return on equity, 14.02%. The
comparable figures for public sector banks were 0.82% and 13.62%. Now you
know why foreign banks are ready to walk the extra mile to do business anywhere
in India
The Reserve Bank of India would like foreign banks to get a flavour of semi-urban
India and the rural hinterland. Going by the statistics provided in the RBI's annual
report, it appears that foreign banks are being gently nudged away from metros,
when they apply for permission to open a new branch.
The branches of foreign banks that have been approved between July 2006 and
June 2007 are mostly in smaller towns and tier-2 and tier-3 cities. Of the 13
branches for which permission was given, only one branch belonging to Shinhan
Bank has been allowed in New Delhi.
Smaller cities
Hong Kong and Shanghai Banking Corporation (HSBC) received approvals for three
branches in Raipur, Jodhpur and Lucknow. ABN Amro got approvals for branches
in Kolhapur, Salem, Udaipur and Ahmedabad. Barclays Bank received approval for
branches in Kanchipuram and Bangalore.
Most foreign banks follow a strategy of first setting up base in metros Mumbai,
New Delhi, Kolkata and Chennai. Then, in the next stage, they move to the mini-
metros such as Bangalore, Hyderabad, Pune and Ahmedabad. Over the last few
years, some banks have talked about expanding their reach beyond the
conventional circuits of these eight places.
Foreign banks in India have got approval from the Reserve Bank of India to open
10 branches and seven representative offices during the July 2006- June 2007
period. In the calendar year 2006, the RBI issued approvals for opening 13
branches of foreign banks in India. Under the WTO agreements, India is required
to allow the opening of 12 foreign branches every year.
More foreign banks rush to India

A large number of foreign banks are now keen on opening shop in India to gain a
critical mass by April 2009, when private banking space is expected to open up for
foreign players.
14

The latest addition to the list of foreign banks wishing to set foot in India is the
Royal Bank of Scotland, which has total assets of over $806 billion.
The sudden interest in India follows the Reserve Bank of India's roadmap for
according foreign banks greater freedom in India.
Switzerland's UBS, ranked the world's best private bank by EuroMoney magazine,
has been preparing itself for India launch. Merrill Lynch and Goldman Sachs too
are believed to be showing interest.
It is not known whether they will go alone or partner with an Indian entity in the
new venture. Some of the new players are targeting the derivatives market to
grow in India. The huge retail space is also an enticing factor.
Merrill Lynch has a joint venture in Indian investment banking space -- DSP Merrill
Lynch. Goldman Sachs holds stakes in Kotak Mahindra arms.
US-based GE Capital last week announced its intention to set up a bank last week
soon after the banking sector roadmap was unveiled. It already has wide presence
in consumer finance through GE Capital India.
The RBI roadmap said the removal of limitations on the operations of wholly-
owned subsidiaries of foreign banks and treating them on a par with domestic
banks to the extent appropriate will be designed and implemented after
reviewing the experience till April 2009.
A total of 33 foreign banks are present in India and had total assets of Rs
1,36,315crore (Rs 1363.15 billion) as at end-March 2004. Roughly they account
for about 7 per cent of the total banking space.
The list of foreign players includes banks like Citibank, Bank of America, Bank of
Nova Scotia, ABN-AMRO Bank, Deutsche Bank and JPMorgan Chase Bank, which
figure in the top 25 global banks ranked by The Banker magazine.
The other top banks like Credit Suisse Group, Industrial and Commercial Bank of
China, are still to start banking business in India.
15

India is expected to find a place in the strategy of these banks given the country's
growth prospects. There have been cases of foreign banks closing shops in India
too. Dresdner Bank and Commerzbank fall in this category.
India's GDP is seen growing at a robust pace of around 7 per cent over the next
few years, throwing up opportunities for the banking sector to profit from.
The credit of banks in India has risen by over 25 per cent in 2004-05 and the
growth momentum is expected to continue over the next few years.
Participation in the growth curve of the Indian economy in the next four years will
provide foreign banks a launch pad for greater business expansion when they get
more freedom after April 2009.
CONCLUSION:
Foreign Banks in India always brought an explanation about the prompt services
to customers. After the set up foreign banks in India, the banking sector in India
also become competitive and accurative. India is expected to find a place in the
strategy of these banks given the country's growth prospects. There have been
cases of foreign banks closing shops in India too. India's GDP is seen growing at a
robust pace of around 7 per cent over the next few years, throwing up
opportunities for the banking sector. Participation in the growth curve of the
Indian economy in the next four years will provide foreign banks a launch pad for
greater business expansion when they get more freedom after few years






16






CHAPTER 3- ABOUT COMPANY
3.1 COMPANY HISTORY
3.2 STANDARD CHARTERED BANK IN INDIA
3.3 GROUP ORGANISATION STRUCTURE
3.4 PRODUCTS & SERVICES
3.5 COMPETITORS
3.6 SOME RECENT ACQUISITIONS
3.7 FUTURE PLANS



17

3.1 COMPANY HISTORY
As mentioned above, Standard Chartered Bank is a British bank headquartered in
London with operations in more than seventy countries. It operates a network of
over 1,700 branches and outlets (including subsidiaries, associates and joint
ventures) and employs 73,000 people.

The name Standard Chartered comes from the two original banks from which
it was founded The Chartered Bank of India, Australia and China, and The
Standard Bank of British South Africa.

The reason for this alliance was that both the companies wanted to capitalize on
the huge expansion of trade and earn profits to be made from financing the
movement of goods between Europe, Asia and Africa.




18

It is listed on the London Stock Exchangeand the Hong Kong Stock Exchangeand
is among the top 25 constituent members of the FTSE 100 Index. In its
uniqueposition as an international bank with strong franchise, Standard
Charteredcombines an in-depth knowledge of local markets with global
productexpertise to offer effective financial solutions. The bank capitalizes on
itsonshore presence across Asia, Africa and the Middle East to offer
customersconvenient and reliable access to the widest range of currency markets,
uptodate local market information, country-specific global risk management
strategies, and customized capital raising and liquidity management solutions.



19

3.2 Standard Chartered Bank in India

On 12
th
April, 1858, SCB established its first branch in India, at Kolkata then, the
most important commercial city in India and the centre of the jute and indigo
trades. Its Indian headquarters are in Mumbai. Its global shared service centre is
in Chennai which provides operational and technology support to the Groups
businesses across the world.



Kolkata Branch
They have gone on to become the largest international bank in India in terms of
branch network and profits. Today, they have many of the emerging Indian
multinationals, amongst their clients and are expanding their strategic and
advisory capabilities to keep pace with their financial needs and aspirations.
Standard Chartereds long presence in this key market has given them a deep
understanding of the evolving needs of the clients. SCB has 90 branches in 37
cities, as well as a presence in Bangladesh, Nepal and Sri Lanka. Hence, it is the
most profitable organization among its peers for wholesale banking.
It was the first ever bank to issue global credit card in India, the first to issue
photo card, the first picture card and was the first credit card issuer to be
awarded the ISO 9002 certification. Some other product innovations of Standard
Chartered Bank in India include the Sap nay credit card, the international debit
card that allowed users to buy products and services of their choice in easy
monthly installments at zero per cent interest.

20

Thus Standard Chartered India had approximately 17,500 employees accounting
for over 20 per cent of the groups headcount, as on December 2009. For the year
ended 31 December 2009, India contributed operating income of $1,813 million
and profit before tax of $1,060 million to the Group, making it the Groups second
largest contributor of profits after Hong Kong.

It stands for:





21

The Key Functions within the Bank:






22

3.3 Group Organization Structure:




23

3.4 Products & Services
Standard Chartered bank provides different products and services in order to
cater the needs of the customers which can be broadly classified into the
following categories:

1. Personal Banking: To cater the diverse financial needs, Standard
Chartered offers a wide range of premium banking products and services
through its network of 83branchesin 33 cities across the country. As a
privileged customer of this bank, the customers is always assured of a
banking service that is flexible enough to tailor make a product suite to take
care of his specific banking needs.

2. SME Banking: SME Banking provides integrated financial solutions to small
and medium businesses, through a relationship management approach. Its
customer focused product offerings include working capital finance, trade
services, foreign exchange, and cash management.

3. Priority Banking: It offers a total banking relationship that is anchored on
three pillars of commitment for its priority customers. They are Priority
Benefits, Priority Solutions&Priority Services.

4. Private Banking: At The Standard Chartered Private Bank, all the clients
have unique needs so before working with them, they take the time to
understand their particular circumstances so that they can build a package
personal to them. Thus, their goal is to create a partnership that goes
beyond the purely financial.

5. Wholesale Banking:Its wholesale banking business caters to Corporate &
Institutional clients for the long run by providing a wide range of solutions
to facilitate commerce & finance across the fastest growing markets.

6. NRI BANKING: Among other services, Standard Chartered alsooffers NRI
Banking,which includesNRE Account, NRO account&FCNR account.
24

3.5 Competitors

The competitors of Standard Chartered Bank areABN Amro which is now known
as Royal Bank of Scotland (RBS), Hong Kong & Shanghai Banking Corp. Ltd.
(HSBC) and Citibank.These banks offer similar products & services.

For the year 2010
S.No. Name of the
Bank
Total
Assets (in
Crores)
Total
Income (in
Crores)
Operating
Profit (in
Crores)
Net Profit
(in Crores)
1. Standard
Chartered
97,492 8,746 3,757 1,907
2. ABN Amro 32,083 4,345 1,410 19
3. HSBC 94,620 9,026 4,171 1,291
4. Citibank 105,264 10,423 5,406 2,173

The standard charted have a strong and neck to neck competition among these 3
foreign banks on terms of getting best expertise and management team,
extending their customer base, geographic reach and broaden their product
range.
From the table, we can see that in all the parameters, Citibank is leading which
straightly goes to show that it rules in the category of foreign banks in India.
Thus, Standard Chartered needs to keep a track of the moves of its competitors &
build a strong brand image by providing top class services and favorable products
and offers to suite the customers and to attract them more and lastly to compete
with the other multinational banks in India.

25

3.6SOME RECENT ACQUISITIONS

Date Location
Feb 2009 Asia
Standard Chartered completes acquisition of Cazenove
May
2008
Vietnam
SC raising strategic stake in Vietnam's Asia Commercial Bank
to 15%
Jan 2008 South Korea
SC to acquire South Korea's Yeahreum Mutual Savings Bank
Oct 2007 South Korea
SCs First Bank Korea Ltd to acquire 80% stake in South
Korea's A Brain, a funds administration company
Sep 2007 Global
Standard Chartered signs agreement to buy American
Express Bank, a wholly owned subsidiary of American
Express Company, with operations in 47 countries
Sep 2007 Global
Standard Chartered to acquire Pembroke, an aircraft leasing,
financing and management firm
Sep 2007 Global
Standard Chartered to acquire Harrison Lovegrove, a leading
global oil and gas M&A advisory boutique
Aug 2007 India
Standard Chartered announces acquisition of 49% strategic
stake in India's UTI Securities, a leading local broking firm.


26

3.7 Future Plans


y Sustain our organic momentum and ensure we continue to grow income
from a wide and diverse array of products
y Continued focus on the basics of banking: liquidity, capital, risk
management and expenses
y Become increasingly important for our customers and clients Wholesale
Banking will continue the disciplined and successful execution of its client-
focused strategy
y Consumer Banking will continue on its strategic journey to a customer-
focused model
y Continue to implement our new customer-focused transformation
designed to drive sustainable competitive advantage
y Continue implementation of country models
y Deepen customer relationships by delivering on our Customer Charter
y Roll out new customer value propositions for all segments
y Deliver strong asset and deposit growth
y Further enhance efficiencies and productivity through re-engineering
projects
y Maintain disciplined risk, cost and performance management

27





MARKET
RESEARCH



28



CHAPTER 4- MARKET RESEARCH

4.1 STATEMENT OF PEOBLEM
4.2 RESEARCH METHODOLOGY
4.3 COMPARATIVE ANALYSIS OF STANDARD
CHARTERED VS ITS COMPETITORS ON THE
BASIS OF 7 PS




29

4.1 STATEMENT OF PROBLEM


The main problem faced by the company is that it has a small customer base and
market share too. Moreover, it wants to increase market visibility & brand
perception in India, provide new source of capital and support to the company's
growth globally.

In the month of May, Standard Chartered, in order to tap the Indian market came
up with the first ever IDR (Indian Depositary Receipts) issue.

OBJECTIVE
Following are the objectives for which the market research was conducted:-
To make a comparative analysis of financial products, mainly the Savings
Account and other services offered by Standard Chartered & its
competitors mentioned above
To help bank know the criteria which people consider while choosing a
bank
To know the perception of its services and also the type of service availed
by people the most

The Market Potential of Standard Chartered Bank

To help in knowing the needs and expectations of people & the level of
satisfaction of the existing customers with respect to various banking
attributes

Thus all these objectives will help the Standard Chartered Bank in knowing the
position it holds among the other multinational banks and the areas of
improvement.

30

4.2 RESEARCH METHODOLOGY

Research can be defined as systematized effort to gain new knowledge. A
research is carried out by different methodology, which has its own pros and
cons.

Research methodology means the method carried out to study the problem. It
Shows the type of the sample design used, its size and the procedure used while
carrying out the research.


The research method adopted by me is described below:-
y Methodology:
My study comprises of both PRIMARY as well as SECONDARY
Research.Primary data was collected with the help of the questionnaire
prepared which was then got filled by the people and is attached in the
appendix of the report. On the other hand, Secondary data was taken
from the websites, journals, business magazines and catalogues.

y Target Group:
Target population is defined as the population from which the
information is desired. It is the population on whom the survey is actually
done. The target population for the study includes the people who are
above 18 years and are customers of the different multinational banks.
The target group is only from the region of Delhi and NCR.
y Sampling:
Sampling is the process of selecting an unbiased or random subset of
individuals within population to get some information. In my research I
have done Simple Random Sampling and have taken the sample size as
100.

31

y Research Design: The design of my research is Exploratory &Quantitative
whose objective is to provide insights and understanding with the help of
the data which is in the form of numbers and statistics.

32

4.3Comparative Analysis of Standard
Chartered Vs its Competitors On The Basis of
7 PS

PRODUCT/SERVICE

Parameters Standard
Chartered
RBS Citibank HSBC
Account name Axcess Plus Flex Plus Suvidha
Account
Resident
Savings
Account
AQB/AMB 25000 per
quarter
50000/month 25000/month 25000/
quarter
Withdrawal per
transaction from
other ATMs

Rs. 10,000

Rs. 10,000

Rs. 10,000

Rs. 10,000
Cheque book
( local/at par)
Free Free Free Free
Cash
Withdrawal(per
day)

25,000
25,000 to
1lakh

50,000

25,000
Locker Facility Yes No No No
Doorstep
Banking
Yes Yes Yes Yes
NEFT Free Free Free Free
RTGS Free Free Free Free


33

PRICE

Parameters Standard
Chartered
RBS Citibank HSBC
Annual fee for
Debit cum ATM
card
200/- 250 Free 150
DD drawn at
branch location
200/- Free Free up to
Rs.50,000
Up to 1 lakh ( INR
100)
1lakh and above(
0.1% of value sub to
max of 2500
ATM
transaction
Charges(free up
to 5
transactions)
Rs.50/
transaction
Rs.20 per
transactio
n
Rs.20 per
transaction
Rs. 55 per transaction
Reorder
Chequebook
Free Free Rs 1/leaf Rs 2/leaf
NEFT Free Free Outward (up to
Rs.1lakh,
Rs.50/transacti
on)
(Above 1lakh,
Rs.25/transacti
on)
Up to 1lakh,free
Above
1Lakh,Rs.25/transact
ion

RTGS Free 1-
5lakh(Rs.2
5/transact
ion
Above 5
lakh(Rs.50
/transacti
on)
Rs.25 per
transaction
Up to 5lakh (Rs.
25/transaction)
Above 5lakh(Rs.
50/transaction)
34

Doorstep
Banking
Rs.100 per
visit after the
first 2 visits
Free Free
One time
registration
charge
Rs.2000
Annual fees
(applicable
from 2nd
year)
Rs.500
Cash
pickup and
delivery
Rs.250
Draft
delivery
Rs. 50
Cheque
pickup and
delivery
Rs. 50


PLACE
Parameters Standard
Chartered
RBS Citibank HSBC
No. of branches
in India

74

28

79

41
No. of cities
covered
30 24 31 10
ATMs in
Delhi/NCR
25 30 70 14
No. of branches
in Delhi( NCR)
16 3 8 7
Banking
Hours
10:00am-
7:30pm&
9:00 am-6
pm
10:00am-
7:00pm
9:00am-6:30pm 10:00am-4:00 pm

35

PROMOTION

Parameters Standard
Chartered
RBS Citibank HSBC
Punch line Your right
partner
Make it
happen
Citi never sleeps Worlds local bank


PEOPLE

Parameters Standard
Chartered
RBS Citibank HSBC
Qualified
professionals
Yes Yes Yes Yes
Well-trained
employees
Yes Yes Yes Yes
Customer
Profile
High High High High

PROCESS

Parameters Standard
Chartered
RBS Citibank HSBC
Account
opening form
4-5 pages 5-6 pages 3-4 pages 5-6 pages
Account
activation time
6-7 days 6-7 days Up to 7 days 5-6 days
User friendly
process
Yes Yes Yes Yes
36

PHYSICAL EVIDENCE

Parameters Standard
Chartered
RBS Citibank HSBC
Logo




Website www.standardc
hartered.co.in
www.rbs.in www.citibank.c
o.in
www.hsbc.com
Brochures Yes Yes No Yes


37








CHAPTER 5- DATA ANALYSIS AND
INTERPRETATION

5.1 DATA ANALYSIS AND INTERPRETATION


38

5.1 DATA ANALYSIS AND INTERPRETATION

Following is the analysis of the responses obtained from the questionnaire. The
analysis is done question wise.

Classification of Respondents on the basis of their Gender



Interpretation:
The above drawn pie chart shows the % ratio of respondents on the basis of
gender. 64% respondents were male and the rest 36% were female.


64%
36%
male
female
39

Classification on the basis of age of the respondents




Interpretation:
From the above analysis, we can clearly see that 40% of the respondents are of
the age group 40-60years & 26% of them are in the age group of 20-40 years.
Thus, it can be deduced that normally people in the age group 20-60 maintain
their relations with bank.



0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
below 20
years
between 20-
40 years
between 40-
60 years
above 60
years
15
26
40
19
40

Occupation of the Respondents














Interpretation:
From the above figure, it can be seen that 47% respondents belong to service
class and 36% from business class. Hence, its clear that the major proportion of
the customers of these multinational banks is from the service class and the
business class. So the potential market segment of the customers of the various
banks comprises of the service and the business class.
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
student service business others
13
47
36
4
41

Classification of respondents on the basis of their annual income





Interpretation:
From the above graph, it can be analyzed that 44% people are those who have
their annual income between 5-10 lakh & 32% are those who have their annual
income above 10 lakh. So, we can say that people belonging to this range of
annual income normally are the customers of different multinational banks which
further goes to show that the customers of such banks mainly belong to an
affluent class.

0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
Below 2
Lakh
Between 2-5
Lakh
Between 5-
10 Lakh
Above 10
Lakh
10
14
44
32
42

Percentage of people who have a relation with each of the bank




Interpretation:
The above chart clearly shows the % of the customers of each of the bank. The
Citibank has the highest % of respondents followed by Standard Chartered which
has 26%. 20% of the respondents are of HSBC and RBS holds 14% of the
respondents. 6% of the respondents have an account with other private & public
sector banks like ICICI, HDFC, and SBI etc.
The highest % of share being with Citibank is because of the products & services
offered by it.



26%
34%
20%
14%
6%
Standard Chartered
Citi
HSBC
RBS
Others
43


Classification on the basis of the services availed from each of the bank










Interpretation:
From the above graph, we can see that maximum number of respondents have a
savings account in the respective banks with Citi bank leading which has
11accounts, then Standard Chartered with 9 accounts, HSBC 6 and RBS 2. Similarly
for Salary & Current account, fixed deposit and others which include credit, debit
cards etc.
Thus, we can conclude that most of the respondents avail for savings account and
hence can be the potential market for Standard Chartered bank.




0
2
4
6
8
10
12
Savings
Account
Salary
Account
Current
Account
Fixed
Deposit
Others
9
6
2
3
6
11
7
4
4
8
6
5
4
3
2
2
4
0
1
SCB
Citi
HSBC
RBS
44

Factors Affecting the banking habits of people

a) Location




Interpretation:
From the above figures thus obtained, it can be said that people normally
rated the factor Location as high. This is because of the fact that if a branch
is located away from the persons place then he would not prefer opening an
account in that particular bank. Thus it can be concluded that location is one of
the most important factor for people while choosing a particular bank so banks
should take it into consideration seriously.



0.00
10.00
20.00
30.00
40.00
50.00
average
high
highest
Location
45

b) Ambience




Interpretation:
From the above figures, it is pretty clear that most of the people have rated the
factor ambience as average or high. The reason behind rating this factor as
normally average is that in todays fast paced life, people hardly have the time to
go to the bank so they usually do the transactions online or on phone. But for few
who do not have the net facility at home, for them it does have an effect. Overall
this factor is not of much importance, hence the rating.





0.00
10.00
20.00
30.00
40.00
50.00
60.00
lowest
low
average
high
highest
Ambience
46

c) Timings



Interpretation:
From the above figures it is evident that the factor timings is mainly rated as
average by most of the respondents. This is because they think that all the banks
have generally the same timings. In fact, now a days most of the MNC & other
private banks operate till late so therefore it is not of much importance to them
while choosing a particular bank.





0.00
10.00
20.00
30.00
40.00
50.00
60.00
lowest
low
average
high
highest
Timings
47

d) Products Offered






Interpretation:
From the above figures it is evident that the factor products offered is rated as
average by people. This is because they think that all the banks offer more or less
the same kind of products. Therefore it does not play important role while
choosing particular bank.





0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
low
average
high
highest
Products offered
48

e) Information



Interpretation:
Most of the respondents rated this factor as high. The reason behind such rating
is that most of the time, they are required to take their decisions based on this
information only so they feel the need of accurate information which they can
rely on. Also they feel that they should not be deceived. Hence this factor plays a
significant role while choosing a bank.
In few cases, it was found that the respondents were not at all satisfied with the
kind of information they were/are provided with. This is because they end up
wasting their time and in some cases money too.




0.00
20.00
40.00
60.00
80.00
average
high
highest
Information
49

f)Service





Interpretation:
This factor was rated as the highest. Almost every respondent rated Service as
highest because they feel that it is the service which matters to them the most
once they start using the product of a bank. Also it helps in maintaining the long
term bank customer relationship.
Thus, on the basis of the results obtained from the survey it can be clearly stated
that Service is the most important criteria for people for choosing a bank.
Therefore, a bank must constantly make efforts in making its services fast &
flawless.





0.00
10.00
20.00
30.00
40.00
50.00
60.00
average
high
highest
Service
50

Classification on the basis of reason(s) to prefer the respective bank

a) Standard Chartered




Interpretation:
From the above chart, we can clearly see the % break up of each of the factors.
The respondents who have relation with SCB is mainly because of two reasons
financial consultant & friendly service. Therefore it can be concluded that the
employees of the bank are friendly & well trained to understand the needs of its
customers.


35%
31%
11%
15%
8%
SCB
financial consultant
friendly service
fees & commissions
fast & flawless service
others
51

b) Citi


Interpretation:
We can clearly say that the Citi bank has a good reputation as compared to
Standard Chartered as its respondents are really happy with its friendly, fast &
flawless service. So, therefore it can be concluded that people have a good
perception about its services.
But we can see that none of the respondents opted for fees & commission. This
is because of the high charges which they levy for providing the services.




35%
32%
0%
21%
12%
Citi
financial consultant
friendly service
fees & commission
fast & flawless service
others
52

c) HSBC


Interpretation:
From the data collected, it was observed that 30% of the respondents opted for
financial consultant, 20% for friendly, fast & flawless service. Only 5% had opted
for fees & commission. This is again because of their high charges.
30% opted others which includes credit - debit cards etcas their reason to
prefer it.





25%
20%
5%
20%
30%
HSBC
financial consultant
friendly service
fees & commission
fast & flawless service
others
53

d)RBS



Interpretation:
From the above graph, it can be seen that only 14% of its customers opted for
financial consultant. On asking, they told that the consultants of RBS are not
very good in terms of the knowledge that they possess and also the
communication skills. However, people are quite satisfied with its services.



14%
22%
14%
29%
21%
RBS
financial consultant
friendly service
fees & commission
fast & flawless service
others
54

Ranking of Standard Chartereds Services



a) Average quarterly balance



Interpretation:
In this pie diagram we can see that maximum number of respondents were
unsatisfied with the AQB that they need to maintain.


0%
9%
39%
52%
excellent
satisfactory
unsatisfactory
55

b) Number of branches/ATMs




Interpretation:
From this pie diagram we can see that only 44% respondents were satisfied with
the no. of branches/ATM SCB currently has. 23% of them want SCB to open up
more branches/ATM in order to suite their convenience.




0%
33%
44%
23%
excellent
satisfactory
unsatisfactory
56

c) Customer Care



Interpretation:
57% of the respondents were satisfied with the customer care services of the
bank. On further asking, they told that their queries are answered correctly and
that too well in time.
Whereas, only 13% of them are unsatisfied by it.



0%
30%
57%
13%
excellent
satisfactory
unsatisfactory
57

d) Insurance



Interpretation:
Seeing the above diagram, we can observe that 32% respondents are no at all
satisfied with the insurance products that bank offers in collaboration with Bajaj
Allianz. This is because they feel that the products do not offer the benefit which
they look for and also the charges are very high.
Thus, only 20% like its insurance products.




0%
20%
48%
32%
excellent
satisfactory
unsatisfactory
58

e)Personalized Services



Interpretation:
From the above pie diagram, we can see that only 46% respondents think that the
bank provides them an excellent service whereas rest of the customers is either
only satisfied or not at all satisfied.








0%
46%
32%
22%
excellent
satisfactory
unsatisfactory
59







CHAPTER 6- LIMITATIONS

6.1 LIMITATIONS OF RESEARCH



60

6.1 Limitations of the Research

1. Due to paucity of time the study was conducted in a limited area (Delhi &
Gurgaon), because of which the customer responses obtained may have
some biasness specific to the region.
2. The sample size also had to be kept small because of time constraint again
and thus may not be sufficient to find out the appropriate results.
3. Since, the customers were tapped when they were coming out of their
respective banks, after availing some services from there. So, the effect of
situational factors at the time of the latest service delivery, after which the
customer was recorded, may have affected the response in some cases.
4. Only four multinational banks were considered and thus the comparison of
performance of various products offered by various multinational banks is a
little difficult task.
5. The time frame for this study was not sufficient.
6. The quality of the data collected may have been affected by reluctant
nature ofrespondents to respond clearly to some of the questions.







61




CHAPTER 7- CONCLUSIONS AND
RECOMMENDATIONS

7.1 CONCLUSIONS
7.2 RECOMMENDATIONS


62

7.1 Conclusion

The project Comparative analysis of financial products & services offered by
different multinational banks has helped me a lot to gain an insight about the
various banking products and services.

From the result and analysis of the survey, following are the points that can be
concluded:

1. There is a very thin line of difference between the products & services of
each of the four banks. The services of Standard chartered bank are liked by
many people and thus have a good perception. Its services are designed to
make managing finances easier, anywhere in the world. However, there are
certain things which few people are not happy about.

2. The perceived performance of the customers shows that the performance
of Citibank in terms of service delivery is very good. Standard Chartered
bank & HSBCs performance in this regards is almost equal to that of
Citibank. But the performance of Royal Bank of Scotland lacks behind in
certain dimensions especially in reliability and responsiveness.

3. It was also found that while choosing a bank, people give the highest
preference to Location, Clarity of Information&Services.

4. Overall the service quality as measured by the analysis shows that the best
services & its delivery is done by Citibank, then comes Standard Chartered
bank which is almost at par with Citibank followed by HSBC. While the
service quality of RBS bank is quiet low as compared to the other three
banks.

Therefore we can conclude that the satisfaction level of Citibank customers is the
highest as compared to that of Standard Chartered, HSBC and RBS bank
customers. However the charges that Citibank & HSBC levies are much more than
that of Standard Chartered & RBS. Thus, Standard Chartered must demonstrate
the way it works and should keep creating value for customers, investors and
society as a whole in order to stay ahead in the competition.
63

7.2 Recommendations

It is very important for the multinational banks to have a good understanding of
its potential consumers which can be helpful for Standard Chartered in increasing
its consumer base in India thereby increasing its business because doing business
in any country requires an understanding of its environment and factors
influencing consumer lifestyle choices must also be considered. Following are a
few recommendations which can help Standard Chartered Bank stay ahead in the
league.
1. Standard Chartered must understand the challenges that it is facing from
the competition and must also analyze and understand the future
prospects and use it to understand the opportunities and threats it is facing
and the factors driving success.
2. It needs to build a strong brand image by providing top class services and
favorable products and offers to suite the customers and to attract more
customers.
3. With a commitment to continue to focus on building a sustainable business
as a bank, creating value for its shareholders, supporting its customers,
contributing to the economy as a whole, and being a force for good in the
communities, Standard Chartered can see many opportunities, to deepen
their relationships with customers, to win market share and to increase
their impact.
64

4. As stated in conclusions, services provided by Citibank are better as
compared to Standard Chartered; therefore there is a need to improve its
services in order to compete with it and other banks too.
5. It should spread its ATMs to make its presence felt in area where it has low
or no presentation.
6. Standard Chartered should spread in the mid sized cities in India as they are
developing at a faster rate and the multinational banks have very low
penetration in these cities. The residents of such cities can prove to be a
good market for them.
7. MNC banks have been known for their corporate operations since their
clientele consists more of corporate people. Thus their product extension
into the retail segment needs separate focus and positioning in the minds
of middle class people. So for this they should hold an advertising campaign
to reposition the brand in potential consumers mind. Also they should
reduce the AQB a little in order to make it affordable for people like us.
8. Lastly, when it comes to looking into the future of the banks it will be more
and more competitive for the banks as almost all the products and services
of the banks are same, therefore Standard Chartered should devise more
unique strategies to win over their customers, to retain them and to attract
more customers.

65










APPENDIX

66

QUESTIONNAIRE USED
Dear respondent this questionnaire is meant for the purpose of research on the
topic Comparative analysis of financial Products & Services offered by different
Multinational Banks and the level of satisfaction along with the consumer
behavior for a continuous evaluation of summer internship as part of PGP 09-11
program of IILM institute of higher education, NEW DELHI. I thus assure you that
the data collected will not be misused.

1. NAME: ________________________________

2. LOCATION : ___________________________

3. GENDER
MALE FEMALE
4. AGE
Below 20 years 20 40 years

40 60 years Above 60 years

5. OCCUPATION

Business Service
Student Other





67

6.ANNUAL INCOME

Less than 2 lakh Between 2-5lakh
Between 5-10lakh Above 10 lakh

7. WHICH BANK DO YOU HAVE RELATIONSHIP WITH AND
MENTION THE REASON . (MARK TICK)












FINANCIAL
CONSULATANT
FRIENDLY
SERVICE
FEES AND
COMMISSION
FAST AND
FLAWLESS
SERVICEE
OTHER
SCB
CITI
HSBC
RBS
68

8.What are the services that you are currently availing from the above
mentioned bank?
Savings Account Salary Account
Current Account Fixed Deposit
Others

9.Your criteria for choosing a particular bank
[Please tick () the appropriate box,(1) lowest(2) low (3) average
(4) high (5) highest
Ratings

Features

1

2

3


4

5
/RcutlRQ
$PELHQcH
TLPLQJs
FrRGXct OIIHrLQJs
ClurLW\ RI
LQIRrPuWLRQ

SHr+LcHs



69

10.Reason(s) to prefer the mentioned bank?

Financial Consultant Friendly service
Fees & Commission Fast & Flawless service
Others

11.Rank the following attributes of the bank (ForStandard Chartered Bank
customers only)


ATTRIBUTES

EXCELLENT

SATISFACTORY

UNSATISFACTORY

$+HruJH OXurWHrl\
BuluQcH


NR RI
EruQchHs/$TM


CXsWRPHr CurH


IQsXruQcH


FHrsRQulL]HG
sHr+LcH




THANK YOU FOR YOUR TIME AND CO-OPERATION

70

BIBLIOGRAPHY

:ebsltes:




www.economictimes.com

www.standardchartered.co.in

www.hsbc.com

www.citibank.co.in

www.rbs.in

www.banknetindia.com

0uguzlnes und Newspupers:

The Economic Times

Times of India

Brochures of various banks