Full version Standard Chartered

Standard Chartered

This print version free essay Standard Chartered.

Category: Business

Autor: reviewessays 15 March 2011

Words: 9467 | Pages: 38

1.1 Origin of the Study:

The Internship program is a prerequisite for the completion of the Bachelor of Business Administration Program of Jahangirnagar University. Each student has to work on a research project over the period of Internship Program. The assigned project for my Internship Program is “Strategies for Standard Chartered Bank in Retaining Credit Cardholders: An Analysis”. The project has been assigned by the organization’s supervisor and approved by the faculty supervisor. It has been completed during the organizational attachment period in Standard Chartered Bank from May 02, 2005 to July 31,2005.

1.2 Objective of the Study:

1.2.1 General Objective:

The general objective of preparing this report is to fulfill the requirement of Internship Program as well as completion the BBA Program through gaining the practical job experience and view the application of theoretical knowledge in the real life.

1.2.2 Project Objective:

• The broad project objective is to draw some strategies for Standard Chartered Bank, which helps to retain the rapidly growing customer volume.

In order to reach the broad objective, some specific research objectives are identified. These are as follows:

• To identify the reason behind the closing attitude of the credit card holders

• To provide an overview of the existing product and services offered by Standard Chartered Bank.

1.3 Significance of the Study:

With the global slow down in the face of rising competition, the customers faced with an increasing array of financial products and services and expecting more from providers in terms of customize offerings, value, ease of access and personalized services. As a result, retaining customers and minimizing shake are both major concern for financial service institution.

At present, Standard Chartered Bank is operating in the country with huge number of credit cards holders. But the current trend of the credit card indicates a rising rivalry among the different

competitor in the industry. Hence, a good number of SCB card holders are not continuing with the bank but switching to its competitors mainly because of better facilities such as more credit limit, less fees and charges etc. This might not cause a great deal of losing

profit of the Standard Chartered Bank however it is a matter of bank reputation.

To have an insight from the practical aspect, this study is carried out to identify various reasons behind the closing attitude of credit cardholders of Standard Chartered Bank.

At the same time, emphasize on the different existing product and services offered by the bank for their valuable cardholders.

Therefore, this study tries to give some suggestion of improving the services offered by the bank based on the reason behind closing attitude of the cardholders and comparative analysis with other banks to reinstate their valuable cardholders.

4.4 Scope of the Study:

The study initially focuses on the factors related with the credit card closing from the perspective of Standard Chartered Bank. It also draws a comparative analysis with the core features offered by three other competitor banks Prime Bank Ltd., Dhaka Bank Ltd. and HSBC Ltd). Moreover, within the study topic, issues related only with the Bank’s Credit Card Division activities are discussed. The study excludes the market analysis of the credit cards. Beside, in depth analysis of the Bank’s credit card process and financial analysis are not within the scope of the study.

4.5 Methodology of the Study:

4.5.1 Research Design:

The research design is a framework for conducting any research. It specifies information on the type of information to be collected, the source of the data and the data collecting procedure.

4.5.1.1 Type of Research:

The research in this study can be considered as both exploratory and descriptive. Initially, exploratory research was performed since little knowledge about the problem area existed. In order to increase the knowledge about the reason behind the closing attitude of the credit cardholders, the secondary data was studied, as well as literature regarding theories relevant for the problem area.

Before conducting the interviews with the case study objects, knowledge within Credit Card and its closer had been obtained. Thereby, descriptive research was used when taking the interviews.

4.5.1.2 Research Approach:

When conducting the research, there are two different approaches to consider, the deductive approach and the inductive approach. The deductive approach implies that a conclusion is derived from a known premise or something known to be true. In this study a deductive approach was chosen. This since the research starts with a literature overview based on which the general ground for the study is prepared. In addition, qualitative research approach will be followed as the problem of the study deals with words and observations rather than numbers.

4.5.1.3 Research Strategy:

For the undertaken study or research, two strategies will be followed: Primary data analysis and Secondary data analysis. Because primary data analysis will provide the existing situation of the bank in retaining the credit cardholders as described by the data source or respondents. Secondary data analysis is a review of data collected for another purpose to clarify issues in the early stages of the research effort.

4.5.2 Sample Design Process:

A sample is a subset of population. During the sample design process the target population, the sampling frame, sampling technique and the size of the sample are identified.

4.5.2.1 Identification of the Sample Population:

The target population is the specific group relevant to the research project, the group that possesses the information relevant to the researcher. In this study, the population for the study will only be limited to the cardholders who want to close their Standard Chartered Credit Cards. Beside this, to get an overview about the features of SCB credit cards some officials of SCB is also interviewed.

4.5.2.2 Sample Technique and Sample Size:

In this research, random sampling technique is used in identifying the credit cardholders. The number of credit cardholders interviewed was 60. The cardholders were selected from the telephone call, they made in SCB’s Retention unit. The sample size is small due to the fact that the information collected is identical throughout the different year’s database collected by the Retention Department of Standard Chartered bank.

4.5.3 Data Collection and Analysis:

Under this issue the classification of data, data collection method and process of data analysis are discussed.

4.5.3.1 Classification of Data:

The data collection can be classified as primary data and secondary data. Primary data is gathered and assembled specifically for the research project at hand. The secondary data has already been collected for the purpose other than the problem at hand.

In this study, both primary and secondary data is used. The secondary data about the closer list of credit cardholders in the last two years were collected from the database maintained by the Retention Unit of SCB, helps to give a clear picture of finding out the reason behind this closing attitude. The secondary data about overview of credit cards has been collected from the external sources, such as website, Journals and Newsletters. Moreover, the basic data about the existing products and services offered by SCB were collected from its Reports, Brochures, Newsletters and other available data sources.

4.5.3.2 Data Collection Method:

The following methods were used to collect the required information for the study:

 Documentation: Documentary information for the study includes written reports and administrative documents such as proposals, progress reports and internal documents.

 Interviews: The primary data was collected through interviews. The nature of the interviews conducted was both open-ended and close-ended. These interviews were performed in a conversational manner and the respondent can answer in his or her own words. This interview form was provided by Standard Chartered Bank and has been attached in the appendix section.

 Direct Observation: Different issues related to the service processing and internal record management has been collected through direct observation.

4.5.3.3 Data Analysis:

There are two types of analysis, the within-case analysis and the cross-case analysis. The within-case analysis is performed within a case and the data collected is presented in relation to the theory. The cross-case analysis is performed through comparative analysis. In this study, both analyses are conducted since the study findings are visualized in the light of the research objectives and theory discussed.

4.6 Limitation of the Study:

The overall study was conducted considering a number of limitations. These are as follows:

• The major limitation of the study was confidentiality of the data. As part of the policy of Standard Chartered bank, some data could not be used to enhance the parameter of the analysis. Because of maintaining the secrecy, such data is important to the bank’s interest that’s not revealed to the public.

• Limitation of time was one of the most important factors that shortened the present study. Due to time constraints, many aspects could not be discussed in the present study.

• Page limitation of the report is another barrier in organizing this report. Due to page limitation the study topic could not discussed elaborately.

• Beside all the above restraint, the lack of experience on the part of the researcher in this field may have become yet another limiting factor.

4.7 Report Organization:

This study contains mainly five parts. Part One is the introduction Part, which includes objective of the study, significance, scope, methodology and limitation of the study. Part Two is the Organizational part that gives the idea about Standard Chartered Bank’s historical background, mission, objectives, different divisions, banking services offered by SCB. Moreover, the SWOT (Strength, Weaknesses, Opportunities and Threats) analysis of the bank. Third part contains the project part, which mainly discussed about the project findings of the study including the brief overview of the credit card, its advantages, disadvantages, reason behind closing attitudes, existing products and services offered by Standard Chartered Bank, the effect of these products and services on closing attitude, comparative analysis and the trend of closing in the last two years. The forth part of this study is the conclusion of the total study. The fifth part consists of some recommendation is drawn on the basis of comparative analysis and reason behind closing attitude to reduce the attrition rate of the cardholders for the sake of Bank’s reputation s well as grab the profit potentiality.

2.1 An Overview of the Private Sector Banking in Bangladesh:

Banks and financial institutions play an important role in financial intermediation and thereby contribute to the over all growth in the economy as a whole. At present, the financial system in Bangladesh consists of central bank, nationalized commercial or specialized banks, foreign banks and other non- bank financial institutions. In this section, a review is presented on the gradual evolution of private sector banks in Bangladesh.

2.2 The Evolution of Private Banks:

Before independence of Bangladesh, all the commercial banks operating in Pakistan were privately owned except National Bank of Pakistan (Sonali Bank) and Eastern Mercantile Bank (Pubali Bank). After independence, all the banks operating in Bangladesh except foreign banks were nationalized and restructured into 6 banks. Later on, Uttara Bank Ltd. and Pubali Bank Ltd. have subsequently been transferred to the private sector in September 1983 and 1984 respectively.

With a view to ensuring effective and meaningful participation of the private sector in the overall development of the economy and to infuse competition in the banking system, Bangladesh Bank with the approval of the Government issued license for opening new banks since early 80’s. At present there are 51 scheduled banks operating allover the country. Out of these, 9 are state-owned (including five specialized banks), 30 are private commercial banks (including four Islami banks) and the remaining 12 are foreign commercial banks (including one Islami bank).

Figure 1: Percentage of different banking sectors in Bangladesh

These private banks are popularly known to public as First Generation Banks (9 banks opened during 1982-88), Second Generation banks (13 banks opened during 1992-96) and Third Generation banks (13 banks opened during 1999-2001).

The name of all the banks operating in Bangladesh and their year of incorporation are given in Table 1.

Table 1: Name of the Banks operating in Bangladesh

NAME OF THE BANK DATE OF INCORPORATION NAME OF THE BANK

DATE OF INCORPORATION

Nationalized Commercial Banks Specialized Banks

Sonali Bank 1972 BKB 1972

Janata Bank 1972 BSB 1972

Agrani Bank 1972 BSRS 1972

Rupali Bank Ltd. 1972 RAKUB 1987

BASIC 1988

Private Commercial Banks

1st Generation Private Banks (1982 – 1988) 2nd Generation Private Banks (1992 – 1996)

Arab Bangladesh Bank Ltd. 1982 Eastern Bank Ltd. 1992

Uttara Bank Ltd. 1983 National Credit & Commerce Bank Ltd. 1993

National Bank Ltd. 1983 Prime Bank Ltd. 1995

Islami Bank Bangladesh Ltd. 1983 Dhaka Bank Ltd. 1995

IFIC Bank Ltd. 1983 Southeast Bank Ltd. 1995

United Commercial Bank Ltd. 1983 Al-Arafa Islami Bank Ltd. 1995

The City Bank Ltd. 1983 Social Investment Bank Ltd. 1995

Pubali Bank Ltd. 1984 Dutch-Bangla Bank Ltd. 1996

Al-Baraka Bank Ltd. 1987

3rd Generation Private Banks (1998 – Present) Foreign Commercial Banks

Bangladesh Commerce Bank 1998 Grindlays Bank 1905

Mercantile Bank Ltd. 1999 Standard Chartered Bank 1948

Standard Bank Ltd. 1999 American Express Bank Ltd. 1996

One Bank Ltd. 1999 State Bank of India 1975

Exim Bank Ltd. 1999 Habib Bank Ltd. 1976

Premier Bank Ltd. 1999 Muslim Commercial Bank 1994

Mutual Trust Bank Ltd. 1999 National Bank of Pakistan 1994

First Security Bank Ltd. 1999 CITI Bank, N.A. 1995

Bank Asia Ltd. 1999 HSBC 1996

The Trust Bank Ltd. 1999 Shamil Islami Bank 1997

Jamuna Bank 2001 Credit Agricole Indosuez 1997

Shahjalal Bank 2001 Hanvit Bank 1999

BRAC Bank 2001 Mashreq 2001

Source: Bangladesh Bank.

2.3 Market Share in Deposits and in Advance:

The private sectors banks in Bangladesh seem to be very aggressive in collecting deposit and providing advances. Deposit of these banks increased significantly during the period of 1985-2004 but the growth rate came down in recent years as compared to early years.

Table 2:Deposits by Category of Banks (Amount in million Taka)

Year NCB SB PCB FCB Total

1997 254,540 20,110 114,230 21,240 410,120

1998 277,560 21,330 129,720 27,370 455,980

1999 307,380 25,530 135,450 31,220 499,580

2000 342,390 29,660 155,180 41,940 569,170

2001 375,790 38,170 188,730 48,240 650,930

2002 400,662 44,880 222,300 60,256 728,098

2003 435,225 48,580 255,690 72,480 811,975

Table 3: Advances by Category of Banks (Amount in million Taka)

Year NCB SB PCB FCB Total

1997 182,580 59,910 87,630 18,560 348,680

1998 208,620 65,370 101,280 20,410 395,680

1999 234,480 67,200 111,970 23,780 437,430

2000 260,280 91,310 130,310 27,520 509,420

2001 278,660 97,360 157,690 30,260 563,970

2002 290,800 101,450 181,380 32,980 606,610

2003 312,400 106,580 201,450 35,120 655,550

Source: Scheduled Bank Statistics, Bangladesh Bank, 2003 -04.

2.4 Expansion of Branches by the Private Banks

The following tables are provided to incorporate the information regarding branches:

Table 4: Branches of Private Banks

Year No. of Branches Percentage of the Total Branches

1985 632 13%

1995 1016 18%

2005 1416 7.2%

Table 5: Area Wise Distribution of Bank Branches

Urban Rural Total

NCBs 21.99 % 37.36 % 59.35 %

SBs 2.45 % 17.15 % 19.60 %

FCBs 0.56 % 0 % 0.56 %

PCBs 15.22 % 5.27 % 20.49 %

All Banks 40.22 % 59.78 % 100 %

Source: Scheduled Bank Statistics, Bangladesh Bank, 2003-2004

2. 5 Standard Chartered Bank: An Overview:

Standard Chartered Bank is a leading foreign bank in Bangladesh, which brings the revolution in banking service industry through adaptation of modern technology and process with a view to enhancing customer satisfaction. Having been established in the British colonial period, the bank has positioned itself as a unique business serving the local community with due professional and ethical fervor. It has been operating in Bangladesh for more than 100 years. Now it has 18 branches in different significant places of the country and intends to expand its presence all over the country.

The bank excels in providing the most efficient, consistent and timely services through 600 offices in more than 51 countries of Asia, Africa, Middle East and European region incorporated in the UK with its Headquarter as 1 Aldermanbury Square, London. At present, it has managing assets worth of 49 billion and maintaining corresponding relationship with over 600 banks in 157 countries. SCB specializes in personal, corporate, institutional and personal finance and custodial service with having a staff of about 33,000 people.

2. 6 Historical Background of Standard Chartered Bank:

Standard Chartered Bank has a history of more than 150 years. The name of the bank came from the two original banks - the “Standard Bank” of British South Africa and the “Chartered Bank” of India, Australia and China.

Of the two banks, the “Chartered Bank” was established in 1853 by a Royal Charter granted by Queen Victoria of England. The key person behind the Chartered Bank was a Scot, James Wilson who has started “The Economist”, which is still one of the world's pre-eminent publications. He visualized the advantages of financing the growing trade links with the areas in the East, where none of the other financial institutions were present at that time and therefore the Chartered Bank opened two branches in 1858 in Chennai and Mumbai.

On the other hand, the “Standard Bank” was founded by another Scot, John Paterson in 1862. He immigrated to the Cape Province in South Africa and became a successful merchant there. Coming from the similar background, he also visualized the great opportunities through linking between Europe and South Africa.

From the very beginning both the banks were keen to capitalize on the huge expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from financing on that trade. Therefore, although they were separate entities, survived the First World Ware and the Depression. But were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches and for that they decided to merge in 1969. After the merger the new shares of the Standard and Chartered Banking Group Limited were listed in the London Stock Exchange on January 30, 1970. Although the two banks merged in 1969, but their operations were being executed from two different headquarters, until on June 1980, the original building of the Chartered Bank was demolished and a new headquarter of the Standard Chartered Bank was opened on March 20th, 1986. Right after the merger the bank embarked on a vigorous mission to expand its business in Europe and the USA.

In the last thirty years, Standard Chartered Bank has experienced continuous growth, which led to its becoming one of the top 100 listed banks in the world. In the year 1993 and 1994 it was judged as the best bank in the Asia – Pacific region for its excellent service and growth rate as well.

2.7 Standard Chartered Bank in Bangladesh:

The Chartered Bank started its operation in Chittagong in 1947, soon after the creation of Pakistan. The branch was opened mainly to facilitate the post war re-establishment and expansion in this part of South Asia. . After the merger of Chartered bank with Standard bank in 1969, the bank increasingly invested in people, technology and premises as its business grew in relation to the country’s thriving economy.

The bank opened its first branch in Dhaka in 1966 and shifted it’s headquarter from Chittagong to Dhaka after the birth of the Republic of Bangladesh in1972. Today the bank has 18 branches. Among them 11 in Dhaka, 3 in Chittagong, 1 in Narayanganj, Sylhet, Khulna and Bogra respectively. The Head Office is in Hadi Mansion, 2 Dilkusha C/A, Dhaka-1000.

Bangladesh’s operation is under the Middle East and South Asia (MESA) region, with the controlling office in Dubai. Its correspondent relationship exists with Sonali Bank, which give its access to the countrywide. In 1993, there was an organizational restructuring, which led to the substantial expansion of the bank’s business. And after that the amount of deposit and loan has increased by more than 5 times within five years and as a whole it shows an overall increasing trend of Standard Chartered Bank’s market share in terms of deposit and advances.

2.8 The Global Operating Regions Of Standard Chartered Bank:

The Standard Chartered Group is operating in 48 countries in various extents. These countries are grouped into 5 regions based on their locations and business core focus.

1.Asia Pacific: 17 countries are including I this region – Australia, Brunei Darussalam, Cambodia, China, Hong Kong, Indonesia, Japan, Laos, Macao, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

2.Africa: 11 countries are including in this region – Botswana, Cameroon, Gambia, Ghana, Kenya, Sierra Leon, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.

3.Latin America: 6 countries are including in this region – Argentina, Brazil, Colombia, Mexico, Peru and Venezuela.

4. Middle East and South Asia (MESA): 10 countries are including in this region – Bangladesh, Bahrain, India, Iran, Nepal, Oman, Pakistan, Qatar, Sri Lanka and United Arab Emirates (UAE).

5. UK and USA: 4 countries are including in this region – Falkland Island, Jersey, United Kingdom (UK) and United States of America (USA).

2.9 Expansion of Standard Chartered Bank:

2.9.1 The merger with ANZ Grindlays Bank:

Grindlays Bank was one of the oldest banks operating in this country and its history of operation goes back to 1905. The long standing relationship with the clients in this country had established Grindlays Bank a trusted name in the corporate world and ranked Bangladesh as fourth in worldwide ranking.

At the time of Asian Crisis in 1997, when most of the Asian banks were reeling on the edge of bankruptcy, SCB revealed to acquire the ANZ Grindlays Bank for $1.34 Billion, which was then considered as the biggest gamble that time. This acquisition has added 6000 employees and 4 countries to SCB’s existing network. Moreover, this deal has made SC the largest foreign bank in India, Pakistan and Bangladesh and second largest in UAE. Up to September 2002, both Standard chartered and Standard Chartered Grindlays operated under the same management but as separated entities. But as per contract, from January 01, 2003 both become combined and known as Standard Chartered Bank.

2.9.2 The Acquisition of American Express Bank Ltd.:

The American Express Bank Ltd. started its operation in Bangladesh in 1996.With its service and creative product development features it has a strong customer base in the outlets of Dhaka and Chittagong. But with a view to change its business strategy, it has closed all its operation in Bangladesh. And Standard Chartered Bank decided to acquire all its accounts. As a result, in July, 2005 SCB acquire the AMEX for $ 24.4 Million which will add 2 branches in Dhaka and 1 in Chittagong and 3 ATM booths in the 2 cities in the existing network of SCB. But as per contract, from November 01, 2005, the acquisition process will be completed and AMEX will be known as Standard Chartered Bank

2.10 The global strategies of Standard Chartered Bank:

At the global level, Standard Chartered Bank operates with some unique strategies such as –

 To build and grow strong businesses in East and South East Asia- the Asia Pacific Region.

 To enhance historical position in the Middle East and South Asia region.

 Provides support in newly industrialized and emerging markets.

 Capitalize on the good track record in these regions by building unique position and image among the target customer segment and being responsive to the needs and serve better than the competitors.

 To concentrate operations in the activities that have direct impact on the communities of the countries; help the country and its economy and at the same time earn profit in an ethical way.

2.11 Business Activities of the Global Standard Chartered Bank:

Standard Chartered Bank operates in every Asia Pacific market with the exception of North Korea and 60 percent of the Group’s profits come from the Asia Pacific region.

Hong Kong continues to be major importance to the group and contributes 30 percent of the total profit. With around 80 branches in Hong Kong and strong representation in China specially in Shanghai. Standard Chartered Bank is well placed to continue playing an important part in Greater China’s development. A resident Group Executive Director manages the Group’s business there.

Consumer banking, Corporate and Institutional Banking are managed out of Singapore each by a Group Executive Director resident in the island state. Other East Asian countries of note for the Group Malaysia, Taiwan and Thailand where, in 1999, the acquired 75 percent interest and management control in Nakornthon.

Standard Chartered is the leading international bank in Sub-Saharan Africa, operating several countries, the most prominent being Kenya, Zambia, Zimbabwe and Ghana. The Group’s operations in the Gulf and south Asia are managed from Dubai.

2.12 Key Operation Areas of Global Standard Chartered Bank:

Standard Chartered as a bank operates globally with key business objectives and specific business areas to specialize in. Some major areas where SCB specializes as a bank are stated below:

Consumer Banking:

Standard Chartered Bank’s consumer banking has near around 5 million customers worldwide. In recent years, this retailing banking has grown large and significant growth in South Asia and Middle East countries. Around 50%of the total profit is contributed by consumer banking division of SCB. Major initiatives support the rapid development of the credit card business in the exiting markets of India, Indonesia and Taiwan. There are 76 branches and finance centers under this division in about 10 countries with a workforce of 1615 employees.

Personal Banking:

There are 410 offices or branches with a workforce of 12000 employees working under this division in 28 countries. Some of the services provided by this division are various kinds of insurance and loans, various types of accounts, travelers’ cheque and card money.

Corporate and Institutional Banking:

The principal strength of this division is in supporting regional and international cross- boarder trade and investments. Product and services are focused primarily on these areas, specially trade banking, cash management and custody. Institutional banking deals with the group’s relationship with the banks, investment companies and other financial institutions. It intends to be the “Banker’s bank operating in customer’s time zone and providing network linkages between international market. This business has continued to expand rapidly in Asia, Africa, Middle East and Latin America.

International Trade Management:

This division operates throughout the group and is one of the core operational strength of Standard Chartered bank. Over the 150 years experiences it has depth expertise in export and import finance, Letter of Credit, Performance Guarantees, Back-to-Back L/C, Export Bill Collection and issuance of Bonds and Promissory notes.

Global Custodial Services:

There are 17 offices and about 900 staffs are under this division. It operates in 14 countries and is headquartered in Singapore. SCB group fulfills its strategic commitment in providing custody and clearing services in greater Asia. Standard Chartered Bank is the number one custodian in Asia for over 40 years.

Global Cash Management:

This division operates in all branches where the group has a corporate banking and institutional banking division. There are 100 employees working in this division. Standard Chartered Bank recognizes the importance of cash management to corporate and institutional clients and offers a comprehensive range of services and liquidity management.

Treasury:

Treasury operations are particular group strength with a network of over 20 dealing sights worldwide, offering 24 hours customer services. The bank is particularly well known in exotic and minor currencies and has reinforced its position as a marker leader in many Asian and African markets. This is due to its prolonged presence in these parts of the world for around 120 years. Moreover, its vigorous presence in South and South East Asian region enables it to offer minor currencies in the money market and offer profitable forward rate for the less frequent currencies.

Global Institutional Banking:

Through the network of Standard Chartered bank of more than 600 offices in over 40 countries, it is very well positioned to provide a wide range of services to institutional clients such as – commercial bank, merchants and central banks; brokers and dealers; insurance companies; fund and fund managers and others. Offices in emerging markets of Asia, Sub- Saharan Africa, the Middle East and Latin America are complemented by branches in the developed countries such as USA, UK and Japan and the bank’s membership of the clearing systems in those countries. The institutional banking group has network of offices in 25 countries throughout Asia, North America, Europe, Africa and the Middle East. It provides relationship among the managers, who are close to their customers and speak the local language. This wide network of Institutional Banking facilities transactions, introductions, problem solving and renders advice and guidance on local trading conditions.

Global Electronic banking:

Electronic banking provides various types of support through a wide range of operating systems, sweeping transaction accessories with the provision of reporting features or other special functions. There are 10 offices and 50 employees in this division, which operates in 26 countries.

2.13 Missions of Standard Chartered Bank in Bangladesh:

Standard Chartered Bank in Bangladesh operates with the same mission as the Group SCB subscribes to worldwide. The bank in Bangladesh has the best and dedicated human resource in the private sector banking. With an experience of 150 years, the bank has a surprising efficiency in the operational areas. The bank has a mission to build and grow on its 150 years of experience and the positive image that it has earned over the years. The underlying factor of its business mission is manifested by its five values -

Responsive

International

Trustworthy

Responsive and

Courageous

As a bank, Standard Chartered gratify to the higher level of the society, its operational strategies relies on trust and confidence building with the customers and offer them the highest sense of security and confidentiality. It has a dedicated attitude towards the community in which it operates and wants to grow and flourish along with its customer and community.

2.14 Organization Structure of Standard Chartered Bank in Bangladesh:

Standard Chartered Bank in Bangladesh operates with a functional structure with sufficient flexibility to attain the benefit of the matrix system of organization structure. The functional structure that relies on grouping of people on the basis of common expertise and experience allows plenty opportunity to become more specialized and productive by doing the same work

repeatedly. This structure provides greater control over the quality and the effectiveness of allocating funds and tasks to the employees. This is also beneficial for the employees to enjoy greater autonomy and span of control. But to reduce the demerits of the functional structure, the bank wants to grab the benefit of the matrix organization structure. The bank achieved these processes by using computer technology and forming cross-functional teams to develop new products and improve the quality of the services or notice specific operational problem.

The organogram of the Standard Chartered Group’s operation is depicted in the following:

Figure 2: Organogram in Bangladesh

Source: Human Resource Department of Standard Chartered Group

Standard Chartered Bank in Bangladesh can be broadly divided into two functional areas:

• Business Division and

• Support Division.

Figure 3 : Business Banking of SCB

Source: Corporate Banking, SCB

SCB is primarily corporate driven. More than the corporate banking generates 40% of its revenue group while Treasury contributes more than 20% to the overall revenue. The rest is generated from Personal Banking, Custodial Services and Institutional Banking.

Figure 4 : Support Division of SCB

The Elaboration of the Functional Areas:

2.14.1 Business Division:

The business division includes the following departments:

• Corporate banking Group:

Standard Chartered Bank offers its local customers a wide variety of financial services. All the accounts of corporate clients, which mainly comprise the top local and multinational companies operating in Bangladesh, are assigned a Relationship Manager (RM) who

maintains regular and close contact to cater to their needs. The objective of this department is to maintain a thorough knowledge of the client’s business and to develop positive relationships with them. This is maintained through interactions to offer timely advice in an increasingly competitive business environment. The expertise of the Institutional Banking and Treasury groups is also available whenever required. The Corporate Banking Group in Bangladesh has displayed a spirit of community involvement by working with NGOs to underwrite soft loans. Standard Chartered Bank offers its corporate customers:

o The wide varieties of lending needs are catered to with skilled and responsive attention.

o Project finance and investment consultancy.

o Syndicated loans.

o Bonds and Guarantees.

o Local and International Treasury products.

Trade finance facilities including counseling, confirming export L/Cs and issuing of import L/Cs, backed by its international branch and correspondent loan network Bond and Guarantees Project finance opportunities for import substitution and export oriented projects.

• Institutional Banking Group:

The Institutional Banking Group of Standard Chartered Bank offers a wide variety of products and services to banks and financial institutions. It has global links with leading banking institutions and agency arrangements through its network of offices in 40 countries. The bank offers a full range of clearing, payment collection and import-export handling services. The bank offers foreign missions, voluntary organizations, consultants, airlines, shipping lines, and their personnel the following financial services:

o Current accounts in both Taka and other major foreign currencies

o Convertible Taka accounts (these funds are freely convertible to major international currencies)

• Consumer Banking Division:

Superior retail banking services comprising a wide range of deposit and loan products are offered by Standard Chartered Bank to its individual customers. The Consumer Banking division constantly faces challenges and meets them by developing new products and services to fulfill the specific requirements of local and foreign customers. Bank offers a 24-hour service in Bangladesh through its Moneylink ATM network and Phone-link Phone Banking services.

• Custodial Service:

Headquartered in Singapore, Standard Chartered Equator fulfills the group’s strategic commitment to the provision of custodial service in Asia. Equator’s customers are primarily foreign global custodians and broker/dealers requiring cross border information as well as sub-custodian services. Standard Chartered Bank, Bangladesh is responsible for the planning in Bangladesh, but the overall management of the custody business is based on Equator’s international business strategy.

• Treasury Division:

The foreign exchange and money market operation of the Standard Chartered Bank in the world is extensive. Exotic currencies happen to be one of its special areas of strength. A 24 hour-service is provided to customers in Bangladesh through the Bank’s network of dealing centers placed in the principal of the world. The Bank’s treasury specializes in offering solutions to those who wish to manage interest rate and currency exposures that result from trade, investment and financing activities of other dynamic economies of the region. Treasury operations are developed in line with changing market conditions to provide the best services to its customers. According to BAFEDA (Bangladesh Foreign Exchange Dealers Association), Standard Chartered Bank presently controls 42% of the local foreign exchange market’s traded volume.

2.14.2 Support Division:

Major support units of Standard Chartered Bank are:

• Operational Division:

Operations are part of the support division, which helps to run the businesses of the bank in a smooth and controlled manner. Since it helps mainly in processing the works of the business units, any mistakes made can be easily detected and on time. Following are the main functions of the operations department:

o Central operations deals with the closing and opening of accounts and other payment and account related processing of the Personal Banking division.

o Treasury operations help to deal with the processing works of the treasury division. Loan Administration Unit deals with the processing of the Corporate Banking division.

o Operations also have a department that deals with internal projects that arises from the need to deal with certain problems or to make certain changes.

• Finance, Administration and Risk Management Division:

The goal of SCB is to be the leading bank and retain the position from the competitive threats. To attain this goal, the overall planning is done at the headquarter level in Dhaka by the management committee known as “MANCO”, which is headed by the CEO, Mr. Osman Morad. The committee also includes all the divisional Heads from the support and business. They meet once in a month or contingent basis. The decision-making is a top down cascading process with the flexibility of incorporating the feedback from the operational areas to avoid the problems of so-called “Ivory Tower” planning. The management is thoroughly flexible to include enough room for participation from bottom and allows significant room for accommodating strategic changes. The management has clear bent for the following:

o Modernization of process and operations to achieve higher service quality, customer satisfaction and reduce the paper work.

o Recruit, develop and maintain top-grade efficient employees.

o Maintain, enhance and protect brand image.

• IT Department:

This department is instrumental in the running of all computerized operations of the bank. They help in the implementation and generation of computerized reports. Another major duty of the department is to maintain communication with the rest of the world.

• Human Resources Division:

This department manages a recruitment, training and career progression plan. Standard Chartered Bank highlights the importance of developing its people to create a culture of customer service, innovation, teamwork and professional excellence.

• Legal and Compliance Division:

In the UK, Standard Chartered Bank is regulated by the Bank of England, while in Bangladesh local banking laws regulate it and rules set by the Ministry of Finance and Bangladesh Bank. It also encourages its staff to conform to an internal culture of ethical behavior and sensitivities to the culture and religion of the country.

• External Affairs Division:

This department deals with advertising, public relations, and promotions, partial marketing which involves disseminating new products and services to customers and above all ensuring service quality.

• Credit and Collections:

The Credit Department approves the loan s of Corporate Banking Division. The approval is mainly based on the risk analysis of the corporate clients done by the Corporate Banking Divisions.

2.15 Banking Services of the SCB in Bangladesh:

There are four types of services provided by the SCB

1) Business or Corporate Financial Services

2) Retail or Consumer Financial Services

3) Correspondent Services and

4) Phone Services.

These services can be classified further by the following ways:

Figure 5: Banking Service of SCB

2.16 Special Services Offered by Standard Chartered Bank :

 SCB Link :

SCB Link enables the customers to access the bank accounts from any places through their personal computer. Balance inquiry, account transfers are the main two facilities taken by the customers.

 SCB Cheque :

This service enables SCB’s corporate customers to automate their cheque payments. It is offered to facilitate preparation, printing, recording, and reconciliation of SCB’s cheque.

 Tele-Banking :

SCB’s Tele-Banking service provides customers the opportunity to make inquiries and service request to the bank over telephone. It supports account balance inquiries, transaction details, exchange rates, interest details, balance certificates, issue of cheque-books, issue of pay order and issue of drafts, advice of stop payments, lost cheque-books and change of address.

 Mobile Banking :

SCB’s Mobile Bank units are designed to bring banking service to customers doorsteps. It enables the customers to complete their daily banking without visiting the bank.

 Any Branch Banking :

SCB offers its customers with the facility of operating their bank accounts from any of its sales and services centers across the country. This enables customers to meet their countrywide banking needs out of one single account.

 Priority Banking :

SCB provides its top 5 percent clients with premium banking facilities. These 5 percent customers are determined from the bank in various banking services; every one of them is issued with a premium Banking Card. Each branch has a separate premium banking section where these cardholders receive quick and specialized service.

 SCB Courier :

SCB has its own courier service to collect and delivery documents. A daily collection from and delivery to the customer’s premises for routine banking business (e.g. clearing, trade documents, remittance requests, etc.)

 CBS Auto FAX :

A daily auto-faxed statement of account capturing all prior day debit and credit transactions posted to the account. The customer is provided with up to date account information and gains a better level of control over account reconciliation and liquidity management.

 Standing Orders :

SCB offers sophisticated Standing Order capabilities which claim the need for the customer to repeatedly advice the bank to make fund transfers daily, weekly, monthly, bimonthly, quarterly, half-yearly and annually.

 International Network Service :

SCB has an easy access to international network through its banking correspondence. The bank offers different facilities like trade finance facilities including advising, confirming exports L/Cs and issue of import L/Cs backed by international sales and service center of the bank and correspondent bank network, bonds and guarantees. It also offers its foreign correspondent customers with current account services where Taka settlement is necessary, the ability to issue bonds and guarantees in support of their customer’s business, advising of LC and negotiation documents, market intelligence and status report.

 Access Account :

SCB has recently launched its latest product, the Access Account, which is a non-cheque savings account. It has been designed to give customers the benefit of day-to-day banking through its ATM network.

 CBS Foreign Exchange And Money Market :

The bank arranges to provide information on foreign exchange and money market rates on daily basis. SCB’s daily treasury newsletter provides information of Foreign Exchange rates, key stocks, bonds, and interest rate indices, highlights form international financial markets and information on technical chart points. In addition, the bank automatically provides premium service customers with a clear and concise market commentary, in the form of a weekly treasury newsletter, which covers the major financial events of the week and provides information on movements in major currencies, stock indices, commodities and USD Money Market rates.

 Welcome Pack :

The welcome pack is by far the fastest and easiest way of opening accounts in the country, which is first introduced by SCB in October 2001 (so it is called the 21st century account by SCB).

It offers a set of absolutely unrivalled benefit. With a Welcome Pack, account is opened in a minute the customer produce the necessary documents. Welcome pack contains:

Table 6: Welcome Pack

Serial No. Items

1. Account Number

2. A 25-leaf Cheque book

3. Money link, ATM card and Personal Identification Number (PIN)

4. Telephone Identification Number (TIN)

 Evening Banking :

The SCB launched the latest special services for its valued customers are the evening banking facility. In this special service a customer can do banking from 6.00 p.m. to 8.00 p.m. Now five branches of SCB is providing the service and other branches will also provide the very special service in near future.

2.17 SWOT Analysis:

The SWOT analysis comprises of the organizations internal strength and weakness and external opportunities and threats. SWOT analysis gives an insight of what an organization can do in future and how they can compete with their existing competitors through existing capabilities and constraints. This tool is very important to identify the current position of the organization relative to others, who are playing in the same field and also used in the strategic analysis of the organization.

Strengths :

 SCB’s Banking Experience for more than 150 years provides SCB the strength of being the market leader in the foreign banking sector. This strength of SCB is totally unmatched by any other multinational bank in Bangladesh, as the long term success of a bank heavily depends on its reputation while dealing with very sensitive commodity like money.

 SCB is the first bank in Bangladesh, which issues Money link (ATM) cards. As the market leader, they showed the most substantial corporate strength among the foreign banks by grabbing the opportunity that exists the market.

 In Bangladesh SCB has a wide range of customer base and is operating efficiently in this country.

 SCB has a bulk of qualified, experienced and dedicated human resources.

 SCB has the reputation of being the provider of good quality services to its potential customers.

 SCB is committed to introducing new products and services in the banking sector

 SCB has the ability to adapt to changes in line with local perspective.

 SCB has a large capital support or backup.

Weaknesses :

 SCB has fewer branches than its domestic competitors. Such as SCB have only 18 branches whereas Uttara Bank Limited has 198 branches and 12 regional offices.

 SCB has rigorous credit screening policy and sometimes-over defensive. This approach may lead it to loose opportunist business ventures.

 SCB is more hierarchy-driven compared to other multi-national banks. Despite restructuring, the organization is yet to achieve flat-management structure.

 SCB has a concentration of network in the major cities.

Opportunity :

 The country’s growing population is gradually and increasingly learning to adaptation of consumer finance. As the bulk of our population is middle class, different types of products have very large and easily pregnable market.

 Bangladesh has a huge consumer base for maintaining several accounts. So SCB has the opportunity to keep these customers by reducing its current fees and charges and positioning attractively in middle class segment.

 SCB can grab the opportunity of SME Banking.

 SCB has a flexible foreign policy.

 SCB focuses on Industrial and private sector development.

Threat :

 In today’s economy, substantial amount is remaining idle and currently the investment in the secondary market by foreign is relatively low. These economic situations of the country indicate political threats.

 Increased competition by other foreign banks is also another threat to SCB. At present HSBC and CITI Corp are posing significant threats to SCB regarding retail and business banking respectively. Furthermore, the new comers in private sector Prime Bank, Dutch Bangla Bank, EXIM Bank, BRAC Bank, Southeast Bank, Mercantile Bank, Social Investment Bank, Islami Bank are also coming up with very competitive force.

 Total assets and total shareholders equity is lower compared to leading nationalized commercial banks.

 High-tech technological adaptation by the Local Bank and Financial Institution is a threat for SCB.

2.1 Introduction :

In Bangladesh, a good number of banks already in operation and the market are getting more competitive by the day. However, operation of banking sector is characterized as a highly regulated one.

With the global slow down in the face of rising competition, the commercial banks are constantly looking for ways to develop their market and offer different products to remain ahead of others.

The recent trends have shown banks shifting away from basic products toward higher value added products that are highly structured, to meet the demand of the clients.

Beside these, having established as the leading commercial banks in Bangladesh is not sufficient unless a vigorous attempt is made to sustain this position. Amidst an age of regulation and intensive competition, diversification of the products and services in a way that helps to achieve the growth is undoubtedly desirable.

Standard Chartered Bank is the oldest multinational bank operating in Bangladesh since 1905. It has, over the years, created one of the largest networks among all the foreign banks in Bangladesh. As a trendsetter it offers a various range of products and services in the market to satisfy the dormant need of the consumers and satisfy them. As a part of this strategy it launches the credit cards first time in Bangladesh.

At present, Standard Chartered Bank has both the Visa and Master cards of local and international types operating in the country with huge number of credit cards holders. But the current trend of the credit card indicates a rising rivalry among the different competitor in the industry. It has already been observed that a good number of SCB card holders are not continuing with the bank but switching to its competitors mainly because of better facilities such as more credit limit, less fees and charges etc. This might not cause a great deal of losing

profit of the Standard Chartered Bank however it is a matter of bank reputation.

For finding out the solution to restrict the closing attitude of the credit card holders, several steps had already been taken by SCB though some new initiatives are also required to be implemented. These steps are basically focused on the way to motivate the credit card holders to reinstate with their cards or to offer a newer one with the same range from SCB such as- offering different

products like Super saver, Instabuy, Card Cheque, Auto bills, E-Statement etc to help the existing card holders get more privilege within the same card use, providing the DSE service, applying waiver to the current fees and charges etc .

But before that, let’s have a look on Standard Chartered Bank’s Credit Card.

2.2 Standard Chartered Bank’s Credit Card :

Credit card :

A credit card is a piece of plastic used for purchasing goods & services and for obtaining cash disbursements on credit terms. It is an unsecured credit, i.e. Credit without collateral or security. And it is the safer substitute to cash and is the major mode of payment worldwide

Each cardholder is assigned a revolving credit limit by the issuing financial institution. Cardholders can purchase goods or services up to the credit limit and can re-use the credit facility upon repayment.

The cardholder is billed periodically (usually monthly) for repayment of the credit extended. The transactions during the period are summarized in the bill.

Credit Card allows partial payments for purchase, but charges interest on the amount owed. Interest rates are traditionally higher than those charged on consumer loans. Cardholders can pay outstanding in full to avoid interest payments.

There are two logos – VISA and MASTER. Five types of local credit cards are offered as:

o MASTER Silver

o MASTER Gold

o MASTER Platinum

o VISA Silver

o VISA Gold

Also three types of international credit cards are offered to customers, as:

o VISA Classic

o VISA Gold

Supplementary Cards :

One may apply for supplementary card for their spouse, parents, sisters, brothers, friends or children above 18 years of age. The supplementary card can be issued to those who are holding the primary card. The supplementary cards will hold a separate account number, so that in case of loss or theft, only the affected card needs the cancellation. The unaffected card continues to enjoy uninterrupted card usage.

2.3 History of Credit Cards :

The use of Plastic Money originated in the United States during the 1920’s when individual companies, such as hotel chains and oil companies, began issuing them to customers for purchases made at those businesses. This use increased significantly after World War II. In 1951, Diners Club issued the first Charge Card to 200 customers who could use it at 27 restaurants in New York. With this system, the credit card company charged cardholders an annual fee and billed them on a monthly or yearly basis. The American Express Company established another major Charge Card in 1958 as the American Express Card. Later in the late ’50s the credit card emerged where the bank credits the account of the merchant as sales slips are received and assembles charges to be billed to the cardholder at the end of the billing period. The cardholder, in turn, pays the bank either the entire balance or in monthly installments with interest. The Bank of America issued the first Credit Card ‘Bank Americard’ in late 1958 in California, USA. This system was licensed in other states starting in 1966, and was renamed as VISA in 1976. At the same time, three different groups of banks that were not franchises of Bank of America began activities that would later merge to become today’s MASTER Card International. Both organizations originally set out signing up member banks to issue cards, enroll merchants, or both. Competition was fierce. Banks that offered one card could not handle the other, thus losing money. More importantly, the merchants themselves were being forced to turn down sales from customers who did not carry the same card the merchant accepted. In 1978 the MASTER Card International and VISA International organizations agreed to a concept of duality, in other words, banks could honor and issue both Credit Cards.

2.4 In Bangladesh Credit Cards offered by Standard Chartered Bank :

Standard Chartered Bank offered the credit card first time in Bangladesh in September 1999 and is the pioneer of card services in the country. It has achieved a huge success with a sharp growth rate in both VISA and MASTER Silver card and a steady growth rate in MASTER Gold card over last three years. Last year, SCB has launched the Platinum cards. Now, SCB has approximately 100,000 cardholders over the last 6 years.

2.5 Benefits of credit cards :

• Wide Acceptance:

Standard Chartered Bank issues both VISA and MASTER Card Credit Cards, the two renowned Credit Card brands. Standard Chartered Local Credit cards were accepted at more than 4000 outlets across Bangladesh. Cardholders can use their cards in Hotels, Restaurants, Airlines, Travel Agents, Departmental Stores, Supermarkets, Hospitals & Diagnostic Centers, Jewelry Shops, Electronic & Computer Shops, Mobile & Internet Service outlets, Petrol Pumps, etc.

• Easy Repayment Facility:

Standard Chartered Credit Cardholders have the flexibility to make payment of as little as 5% of the outstanding balance and carry forward the rest of the balance.

• Cash Advance Facility:

SCB Credit Cardholders can get instant cash advance up to 50% of card limit from any of the SCB ATM’s, thus having access to cash 24 hours a day. Besides, cash can also be obtained from branches during transaction hours.

• Supplementary Card:

Standard chartered Credit Cardholder can enjoy the convenience of having supplementary cards for cardholders’ spouse, children, parents who are over 18 years of age or any other family members or friends. The primary cardholder can set a spending limit for the supplementary card, which limits the maximum amount that the supplementary cardholder can spend in one billing cycle.

• Rewards Program:

Under this plan, SCB local cardholders are rewarded for using their cards at merchant outlets. For every 50 Taka spent, cardholders can earn 1 treasure point, which keeps accumulating as long as the card relationship is continued. The treasure points can be redeemed at any time against a wide variety of gifts offered by Standard Chartered Bank.

• All Accident Insurance Coverage:

SCB local (both primary and supplementary) Credit Cardholders are automatically enrolled into All Accident Insurance Coverage. Silver cardholders are insured for BDT 100,000/-and Gold Cardholders are covered for BDT 500,000 under this coverage.

• SafetyNet Insurance Scheme:

This is a unique offer of SCB Credit Card. In case of death or “Total Permanent Disability (TPD)” of the primary cardholder, the bank waives the total outstanding balance on the card. All cardholders are automatically enrolled into the program and are charged a nominal fee of 0.35% on their monthly balance for availing this facility.

• SMS Banking Facility:

This feature provides cardholders an easy 24-hour direct access to their credit card balance information through their Grameen Phone mobile. Cardholders availing this service will also receive a monthly mini-statement through SMS, absolutely free of charge.

• Discounts & Privileges:

Standard Chartered Credit Cardholders can avail a host of exclusive discount offers in various restaurants throughout the year. Besides, special discounts and privileges are also arranged with merchants like Hotels, Airlines, Travel Agents, Departmental Stores, Clothing Shops, and Electronic Outlets etc. at various times.

• Free Access at Balaka Business Class Lounge:

SCB Gold Credit Cardholders and their immediate family members have complimentary access to the Balaka Business Lounge at Zia International Airport. This facility is available irrespective of the class traveled.

2.6 Disadvantages of Standard Chartered Bank’s Credit cards :

Besides having the advantages, the Standard Chartered Bank Credit card also posses some disadvantages. Such as –

• Insufficient area coverage:

Among all other competitor banks that offered the credit cards in Bangladesh, Standard Chartered Bank covers wider area coverage. But for 1lac credit cardholder only 4,000 outlet is not sufficient enough.

• Fees and charges of the Supplementary Cards:

Earlier, the primary cardholders could enjoy the facility of having a free supplementary card. Recently SCB changes its business policy and introducing annual fees against the supplementary card.

• Charging the Merchant Fees:

While selling, the outlets charged 3% extra on their products as processing fees for using the credit cards. These fees are commonly known as Merchant fees. The merchant fees are not charged against any cash transaction.

• High Interest Rate

2.7 Different types of Cards in Bangladesh :

In Bangladesh, there are mainly two different types of credit cards: Local and International type. Local credit cards serves both VISA and MASTER card of three different credit limits known as – Silver, Gold and Platinum. International credit cards serves only VISA card with two different credit limits – Classic and Gold.

 Master/Visa Card (Local) BDT 10,000 ~ BDT 90,000

 Gold Master Card (Local) BDT 100,000 ~ BDT 400,000

 Platinum Card (Local) BDT 500,000 ~ BDT 900,000

 Visa Classic (International) US$ 500 ~ US$ 4,500

 Visa Gold (International) US$ 5,000 ~ 20,000

2.8 Eligibility to get a card:

Target Market:

For getting both local and international card, applicants have to fulfill the following conditions:

 Salaried or Self-employed

 Resident Foreign Currency Deposit (RFCD) or Foreign Currency Account Holders (in case of applying for international card)

Age Limit :

 For Primary cards : 21-60 years

 For Supplementary cards : 18-60 years.

Minimum Income :

 Applying for MASTER/VISA Card (Local) income should be BDT 10,000

 Applying for Gold MASTER Card (Local) income should be BDT 55,000

 Applying for VISA Gold/Silver (Int’l) income is N/A (secured)

Multiple Cards:

 Primary One each type

 Supplementary Max 4 per primary card

International Cards

Against RFCD Accounts:

All Bangladeshi nationals are entitled to open Resident Foreign Currency Deposit (RFCD) a/c within 1 month of arrival from abroad with undeclared fund of US$3000. In case of fund exceeding US$3000 FMJ form has to be filled out on arrival.

2.9 Repayment of credit amount :

SCB offers its customers with the option to repay the credit amount according to their convenience. Every month bank sends a statement contains details of the purchases and cash advances made by the customer in the last 30 days. Then the customers have two options:

 Pay the bill in full within 15 days from the statement date. In this case, customers do not have to pay any interest charge for purchases. In case of failure of payment within 45 days (if the previous dues are clear), customers have to pay an interest at the rate of 2.5 percent over the total credit amount and a late payment fee of Tk. 200.

 Spread the repayment over a number of months while prepaying the bank 5 percent of the outstanding balance in the statement or Taka 500 (whichever is greater) every month.

2.10 Fees and Charges for SCB Credit Cards :

Annual Fee For Primary Card For Supplementary Card

Silver (Local) BDT 1750/= BDT 1000/=

Gold (Local) BDT 3500/= BDT 2000/=

Platinum (Local) BDT 8000/= BDT 4000/=

Classic (Int’l) US $ 70 US $ 35

Gold (Int’l) US $ 120 US $ 60

2. 11 Features of Credit Cards offered by Different Banks:

Table 7 : Features of credit cards

Features SCB HSBC Prime Bank Ltd. Dhaka Bank Ltd.

Brand VISA,MASTER VISA,MASTER VISA,MASTER VANIK

Ty