PREFACE

Institution is the first step towards knowledge. The previous year at IM Sciences has been

the most turning years in my life. The environment has been conducive towards

triggering my lust for knowledge. The well-designed curriculum has helped in acquiring

the in-depth knowledge of management sciences.

Internship is the final step towards the completion of the degree. This report focuses over

the operations and working of Standard Charted Grindlays Bank, Peshawar .It covers

different complex aspects of the bank including Consumer Banking, Payment services,

Deposit and Money transfer services etc.

Though it’s hardly possible to cover all the aspects of the complex operations of the bank

in detail, but I hope that an attempt to explain what I have analyzed during my stay at

Grindlays. The recommendation at the end of the report is the most important part. All of

them may not be correct, but a humble attempt has been made towards the improvement

of the processes.

In the end, I would like to thank Grindlays Staff for being supportive during my stay at

the Bank. I would also like to thank Miss Shandana Saad to bear with the drafts of the

report and correcting the mistakes I had made. Without her support, this report wouldn’t

have licked the shape, as it has now acquired.

I believe that the process of learning never stops. This report is the first step towards the

long journey of acquisition of knowledge .May Allah be with me in all test of times.

Amen!

EXECUTIVE SUMMARY

A bank is a profit-earning institute accepting deposits. The commercial bank raises

money in the form of deposits. Today the country boasts 45 commercial banks and 36

non-banking financial institutions (NBFIs) operating in Pakistan whose activities are

regulated and supervised by State Bank of Pakistan. The commercial banks comprise of 4

nationalized banks, two privatized banks, 15 private sector banks, 20 foreign banks, and 4

specialized banks.

Key businesses of banks working in Pakistan are consumer banking, primarily credit

cards, mortgages, personal loans, auto loans and wealth management, and wholesale

banking, where the Bank specializes in the provision of cash management, trade finance,

and treasury and custody services.

In Pakistan, Standard Chartered Group comprises of Standard Chartered Bank and First

Grindlays Modaraba. Standard Chartered Bank is the oldest and largest foreign bank in

Pakistan enjoying a unique position in the financial sector of Pakistan. The Bank opened

its first branch in 1883 in Karachi. The Bank serves both consumer and wholesale

banking customers. Consumer banking provides credit cards, personal loans, mortgages,

deposit taking and wealth management services to individuals and small/ medium sized

businesses.

Standard Chartered has been providing banking services in this region for over 140 years.

Standard Chartered holds ISO certifications for cash management, trade services, custody

services, credit operations, global market and customer’s service across the network, cash

balancing, ownership of suspense accounts, the cards department falls into the Consumer

Banking Division.

At the Peshawar branch only the credit and collection, sales and customer services

functions of the credit card department exist. It is one of the leading financial institutions

in providing consumer banking services, priority banking services, and loan services. The

consumer banking products and services are other than pledging bank deposits with

Standard Chartered Bank in Pakistan, customers can also get financing against deposits

held with certain SCB branches outside of Pakistan. The bank offers competitive mark-up

rates.

Customers earn higher profits on Super saving Account compared to other saving

accounts. The higher the balance, the more profit the customer earns .When a customer

opens a Cluster deposit, the bank opens a linked Pak Rupee current account for the

customer and gives him or her a chequebook for that account. Money can be transferred

from different branches of SCB or bank to bank. Lockers are provided to customers who

maintain an account with the Bank. No bank charges are involved. The bank offers a

flexible and comprehensive range of financial services, in particular transactional

banking products. SCG’s Cash Management Services cover local and cross border

payments, collections, information management, account services and liquidity

management for both corporate and institutional customers. Standard Chartered Account

Services offers a wide range of account management solutions to ease the hassles of day-

to-day banking.

Premium Service Banking (PSB): Standard Chartered's Premium Banking Service

is a one-stop shop for satisfying all the transactional banking requirements of

customers in a fast, convenient and efficient manner.

Business Phone Banking: Standard Chartered's Business Phone Banking allows

customers to access the full range of banking services with Standard Chartered.

Internet Banking: e-banking enables customers to initiate transactions and receive

account information at their PC. With this service customers can get prior day

reporting for through NCS, Standard Chartered Bank is able to provide the

following benefits to the customer. All funds are transferred to the Customer’s

account with SCB at Karachi (for SCB customers).

International Collection Services This service is currently available for USD

cheques drawn on US banks.

Premium Service Banking is a packaged product enabling the bank to come to

the client’s doorstep rather than having to come to the bank. .

PSB Courier: The bank provides the convenience and security of daily courier

pick-up and delivery services at customers’ premises for their routine banking

transactions.

E-Banking is a fully integrated electronic banking service enabling customer to

initiate transactions and receive account information on customers PC.

Banking Services and MIS Reports SCB establishes accounts for respective funds

as necessary in any bank’s branch network.

Telephone hotline service. The employees can also avail free phone banking

services, and access account information through mini statements from the ATM

or phone banking; a detailed account statement sent to the account holder’s

annually.

ATM services, Currently the Bank has the largest network amongst foreign banks

of 15 online ATMs.

Internet Banking Being the leading foreign bank in the region it should provide

Internet banking facility to all its customers.

TABLE OF CONTENTS

S/N TITLE PAGE #

Preface i

Executive Summary ii

Section-1 Introduction to Report

Chapter-1 Introduction

1.1 Background of the Study 1

1.2 Purpose of the Study 1

1.3 Scope of The Study 2

1.4 Methodology of the Report 2

1.5 Scheme of the Report 3

Section-2 History of Banking & Overview of SCB

Chapter-2 Organizational Review

2.1 Banking in General 5

2.2 Functions of Bank 5

2.3 Banking in Pakistan 7

2.4 Introduction & Background of SCG 8

2.5 The Standard Chartered Group in Pakistan 9

2.6 Standard Chartered Mission Statement 10

Chapter-3 Organizational Structure

3.1 Introduction 12

3.2 Organizational Structure 12

3.3 Organizational Structure of SCB 13

3.4 Organizational structure of SCB Peshawar 14

3.5 Departmentation of Peshawar Branch 15

Section-3 Products Offered by the Bank

Chapter-4 Products

4.1 Consumer Banking 21

4.2 Asset products 22

4.3 Personal Loans 22

4.4 life style loans 22

4.5 Auto Loans 23

4.6 Credit Cards 24

4.7 Current Account 25

4.8 Tijarat Account 25

4.9 Super Save Account 26

4.10 Flex Account 27

4.11 Rupee Term Deposit 28

4.12 Cluster Deposit 29

4.13 Retail Services 30

4.14 Traveler’s Cheques 31

4.15 Automated Teller Machine (Atm) Service 31

4.16 Corporate And Institutional Banking 33

4.17 Account Services 34

4.18 Payment services 35

4.19 Indirect collection 37

4.20 Direct collection 37

4.21 Direct deposit 38

4.22 Electronic banking 43

4.23 Payments plus 43

4.24 Internet banking 44

4.25 Flex accounts 49

Chapter-5 SWOT Analysis

5.1 Strengths 52

5.2 Weaknesses 56

5.3 Opportunities 59

5.4 Threats

62

Section-4

Chapter-6 Recommendations 68

Chapter 1

Introduction to Report

1.1 Background of Study

This report is a study of the functioning and performance of Standard Chartered Bank in

Pakistan generally and Peshawar specifically. Banking is an interesting and important

phenomenon to study, for it involves monetary institutions like banks on which all

modern day economies depend for survival and growth. Standard Chartered Grindlays

would appeal to any intern who wishes to undergo training at a bank. SCB is not only the

oldest and largest financial institution existing in Pakistan but is also one of the most

professional and posh banks in the country. Being a foreign bank with a strong global

presence gives SCB a cosmopolitan and suave edge over the local banks. Hopefully this

study will give an insight into the bank’s operations and methodology and its suitability

for internship programs. The report is based on an eight weeks internship period carried

out at the bank. Generally SCB’s internship program is limited to a 6 weeks period but

the time limit can be extended to 8 weeks on special request.

1.2 Purpose of Study

Students of BSc at the Institute of Management Sciences are required to undergo an eight

weeks training program at an organization of their choice so that they will be exposed to

the practical side of business in order to acquire necessary experience to prepare them for

future jobs. Students are then required to analyze the organization and come up with

recommendations for its better performance. The analysis and the recommendations are

presented in the form of a comprehensive report on the basis of which students are graded

and given their degrees. This exercise is a productive tool for developing the analytical,

observational, decision-making and report writing skills of students. It helps prepare

students for the practical world.

1.3 Scope of Study

This study is based on a training program of eight weeks, which is not enough time to get

the proper feel of a place or completely understand a vast organization.

Furthermore, the study mainly concentrates on the Peshawar branch of SCB, as that is the

place where the internship was carried out. Some information about the presence of SCB

in Pakistan and the performance of the Standard Chartered Group globally is also

included in the report, but the main focus is the Peshawar branch.

1.3.1 Limitations of Study

As already mentioned, it is hard to comprehend such a large organization and its vast

scope of operations in eight weeks time. The report is based on a cursory study of the

bank’s environment and activities. Most of the information comes from secondary

sources due to lack of time for getting information and personal observations.

1.3.2 De-limitations of Study

The report is prepared using extensive research, keeping a very objective approach

towards the study. It will provide readers with a good and unbiased picture of SCB.

1.4 MEHTHODOLOGY OF STUDY

This report is a blend of primary data as well as secondary data.

1.4.1 Primary Data

“Data collected first hand for subsequent analysis to find solutions to the problem being

researched.”

SWOT analysis, financial analysis and recommendations are mostly based on primary

data collected through personal observation and both structured and unstructured

interviews with SCG staff.

1.4.2 Secondary Data

“Data that has already been gathered by researchers, data published in statistical and

other journals, and information available from any published or unpublished source

available either within or outside the organization, all of which might be useful to the

researcher.” The study is based on a lot of secondary data although personal observations

and analytical skills have also been used.

Data regarding the history of the bank, its range of products and services offered and

organizational structure was collected from annual report and magazines, brochures, bank

circulars, web sites and reports of other students.

1.5 Scheme of Report

The report comprises of four sections containing seven chapters in all.

1.5.1 Section 1

Chapter 1: The first chapter is an introduction to the report stating the purpose,

scope methodology and scheme of the report.

1.5.2 Section 2

Chapter 2: This gives an organizational review of SCB, discussing the history

and background of the bank.

Chapter 3: The organizational structure of the bank is laid out in this chapter

with tables showing the organizational hierarchy and departmentation at the bank.

1.5.3 Section 3

Chapter 4: Detailed analysis of the products and services offered by the bank is

provided in this chapter.

Chapter 5: A SWOT analysis of SCB is discussed in the chapter

1.5.4 Section 4

Chapter 6: At the end of the report recommendations for improvement of the

Bank are provided.

Chapter 2

Organizational Review

2.1 Banking in general

“A bank is a financial institution, which deals with money and credit. It accepts deposits

from individuals, firms and companies at a lower rate of interest and gives at higher rate

of interest to those who need them. The difference between the term at which it borrows

and that at which it lends forms the source of its profit. A bank, thus, is a profit-earning

institute.” Banks are authorized institutions and perform four functions. They accept

deposits, make loans, arrange payment of bills and provide a number of customer

services. Banks are essential for all modern day economies. Banks are there to provide

safe custody for a society’s cash and valuables, facilitating trade and commerce and give

financial support. Functions such as these make the banking sector indispensable in any

economy. 1

2.2 Functions of a bank

These are classified into two main headings

i. Primary functions

ii. Secondary functions

2.2.1 Primary functions

1. Accepting deposits.

The commercial bank raises money in the form of deposits. These deposits are collected

through

• Current Account: It is an account, which provides a chequebook but usually pays

no interest on the money deposited. Current accounts are mainly used to pay bills.

• Deposit Account: It is an account, which does pay interest, but money can only be

taken out by visiting the bank. Deposit accounts are mainly used for short term saving.

1 Farooqi, Shakeel. (1999). Glossary Banking and Finance, Pakistan: State Bank of Pakistan. p.564.

• Investment Account: An investment or savings account pays a higher rate of

interest but a written notice of withdrawal must be given for withdrawing money from the

account. Accounts of this type are used mainly for long-term saving.

2. Advancing of loans:

Advancing loan is a very risky function. The borrower may be unable to repay the

loan or interest or both. The lending may be in any of the following forms:

• Overdraft: an overdraft is when the bank allows a customer to take out more

money than is in his account. Overdrafts are up to an agreed limit, and must be

paid off whenever the bank asks. Interest is charged daily on any outstanding

balance.

• Loan Account: A loan account is when a customer borrows a fixed sum of money

to be repaid in monthly installments over a period of time. A fixed rate of interest

is charged.

2.2.2 Secondary functions

The agency services includes the collection of drafts, bills, cheques, and dividend,

payment of bills, rents on behalf of the customers.

GENERAL FUNCTIONS

The bank keeps valuable documents of the customers, provides services as under writers,

and helps the customers engage in foreign trade by means of discounting of bills and

other instruments. It also sells and purchases Government securities, issues credit cards

and traveler’s checks. Banks have cash points; exchange foreign currency; provide night

safes and store valuables; execute (carry out) wills and trusts; and factor (collect) debts.

2.3 BANKING IN PAKISTAN

Pakistan is a country with a well-established banking sector. State Bank of Pakistan is the

Central Bank of the country and it was inaugurated on July 1st, 1948. At the time of

partition the total number of commercial banks in Pakistan were 38. There were two

Pakistani banks, 29 Indian banks and seven exchange banks. Today the country boasts 45

commercial banks and 36 non-banking financial institutions (NBFIs) operating in

Pakistan whose activities are regulated and supervised by State Bank of Pakistan.

The commercial banks comprise of 4 nationalized banks, 2 privatized banks, 15 private

sector banks, 20 foreign banks, and 4 specialized banks. The financial sector in Pakistan

comprises of commercial banks, non-banking financial institutions (NBFIs), leasing

companies, modarabas, mutual funds, stock exchange and insurance companies. Under

the prevalent legislative structure the supervisory responsibilities in case of banks and

non-banking financial institutions falls within the legal ambit of State Bank of Pakistan

while the rest of the financial institutions are monitored by other authorities such as the

Securities and Exchange Commission and Controller of Insurance. In comparison with

other emerging economies, Pakistan has a relatively underdeveloped financial sector in

terms of the depth of the financial system and the extent of financial intermediation. The

depth of a financial institution refers to the use of money and close money substitutes

such as savings and time deposits, which is very low in Pakistan. There are many foreign

banks operating in the country such as ABN AMRO, American Express Bank, Bank of

America, Banque Indosuez, Citibank, Deutsche Bank, Doha Bank, Emirates Bank, Al-

Mashriq Bank, Hong Kong & Shanghai Banking Corporation, Standard Chartered Bank,

Rupali Bank, Societe Generale, IFIC Bank and Habib Bank AG and more. The foreign

banks have a strong presence in all the major cities and are targeting high net worth

individuals and blue chip companies. Their strategy is quite successful as they account

for 34% of total sector profits, despite having only 15% of deposits and 16% of advances.

The recent wave of liberalization and financial reforms has raised questions about the

future prospects of the financial industry in general and the banking industry in particular.

In just four years the banking industry has expanded tremendously and now there are

more than two dozen commercial and investment banks functioning in the country. The

recent mushrooming of banks in the country could have become a boon if the growth in

the economy had been proportional. Unfortunately the growth in the industry has been

slow and hence banks have had to fight for customers. The race for intensifying deposits

has already started and the trend in 1996 shows that people are moving away from long

term deposits making it increasingly difficult for the smaller banks to develop a strong

deposits base.

2.4 INTRODUCTIONS AND BACKGROUND OF STANDARD

CHARTERED GROUP

Standard Chartered is a London based, international bank focused on the markets

of Asia, the Middle East, Africa and Latin America. It has significant operations in Hong Kong, Singapore, Malaysia, Thailand, India,

Bangladesh, the United Arab Emirates and in sub-Saharan Africa. Key businesses

are Consumer Banking — primarily credit cards, mortgages, personal loans, auto loans and wealth management and Wholesale Banking, where the Bank specializes in the

provision of cash management, trade finance, treasury and custody services. The Group

has a network of over 500 offices in more than 50 countries. With a presence in Asia and

Africa that goes back nearly 150 years, Standard Chartered has an in-depth understanding

of, and a long-term commitment to, the emerging markets. Standard Chartered is named

after two banks, which merged in 1969. They were originally known as the Standard

Bank, founded by Royal Charter in 1853, and the Chartered Bank, founded by Royal

Charter in 1863. Standard Chartered PLC announced on 31st July 2000 the completion

of the US$1.34 billion acquisition of Grindlays operations in the Middle East and South

Asia, from the ANZ Banking Group, founded in 1828. When it bought Grindlays,

Standard Chartered also acquired Grindlays Private Bank and Grindlays Trust

Corporation, which it has put together with Standard Chartered businesses in Jersey. This

created Standard Chartered Grindlays. Since then, the process of integration has been in

progress in terms of aligning the systems and processes of the two banks. Now with the

formal amalgamation approval from the state Bank of Pakistan, the Pakistan operations

of Grindlays have been amalgamated with Standard Chartered Bank. As a result the

amalgamated entity is known as Standard Chartered Bank, effective December 1, 2002.

The new logo of the bank reflects its most desirable Brand proposition, “The Right

Partner”.

2.5 THE STANDARD CHARTERED GROUP IN PAKISTAN

In Pakistan, Standard Chartered Group comprises of Standard Chartered Bank and First

Grindlays Modaraba. Standard Chartered Bank is the oldest and largest foreign bank in

Pakistan enjoying a unique position in the financial sector of Pakistan. The Bank opened

its first branch in 1883 in Karachi. The Bank serves both consumer and wholesale

banking customers. Consumer banking provides credit cards, personal loans, mortgages,

deposit taking and wealth management services to individuals and small/ medium sized

businesses. The wholesale bank provide services to multinational, regional and domestic

corporate and institutional clients in trade finance, cash management, custody, lending,

foreign exchange, interest rate management and debt capital. Standard Chartered has 21

branches in Pakistan; 9 in Karachi, 5 in Lahore, 2 in Islamabad and 1 each in Rawalpindi,

Quetta, Peshawar, Sialkot and Faisalabad. Standard Chartered has been providing

banking services in this region for over 140 years. First Grindlays Modaraba has 3 offices

in Pakistan; 1 in Karachi, 1 in Lahore and 1 in Islamabad, and offers leasing and Islamic

finance facilities to its customers. First Grindlays Modaraba has been providing services

in Pakistan for over 15 years.2

2.6 STANDARD CHARTERED MISSION STATEMENT

A mission statement is developed by the top management to put an organization’s goals

in perspective and to give it a certain direction. It states the broader mission of the

organization, giving it a more concentrated and focused shape in the form of specific

goals and targets. An organization’s policies and strategies are based on its mission

statement. The SC Group strategy is to remain independent, offering services and

products in those markets it knows well. With some 580 offices in over 50 countries, SC

aims to manage a worldwide franchise that will enable it to continue providing

shareholders with a regular and increasing return on their investment. SC’s strategic aim

is to conquer and dominate emerging markets of the world.

2.6.1 COMMITMENT TO SERVICE QUALITY

ISO is an internationally recognized and independently assessed award, which certifies

that consistently high levels of quality and service are maintained for customers. Standard

Chartered holds ISO certifications for Cash Management, Trade Services, Custody

Services, Credit Operations, Global Market and Customers Service across the network.

2 Source:www.standardchartered.com.pk/history

2.6.2 SECURITY AND CREDIBILITY

Standard Chartered is head quartered in London, listed on the London Stock exchange

and regulated in the UK under stringent governance, making it a sound and dependable

partner. SC has maintained the highest ethical standards throughout their networks.

Stringent accounting standards that ensure transparency are adopted.

2.6.3 CORPORATE RESPONSIBILITY

Standard Chartered supports the nine principles of the United Nations Global

Compact

It is a constituent of FTSE4Good, socially responsible index (SRI) investment,

which recognizes companies that uphold and support human rights, work towards

environmental sustainability, and develop positive relationships with

stakeholders.

SC is an active member of the Prince of Wales International Business Leaders

Forum (IBLF), which is committed to promoting socially responsible business

practices that benefit business and society.3

3 Source: www.standardchartered.com.pk/history

Chapter 3

ORGANIZATIONAL STRUCTURE

3.1 INTRODUCTION

“Organization is a wide variety of people who work together and coordinate their actions

to achieve a wide variety of goals.”

3.2 ORGANIZATIONAL STRUCTURE

“In a business organization it is defined as, formal hierarchy for management decision

making, reporting and control, and establishing accountability and responsibility; the

structure defines the line of authority and specifies who is answerable for what and to

whom for business operations and performance of the organization. The structure is

based on the functions of the organization and its business, segmented into departments

but interlinked according to the nature of the activities performed.” An organizational

structure is the framework within the bounds of which an organization operates. This

structure demonstrates the break-up of various units and departments within the

organization into different levels. It is essential to develop an organizational structure to

ensure the smooth and efficient running of an organization systematically. There are

many types of organizational structure and it is a matter of policy of an organization or an

individual to adopt an organizational structure best suited for its business purposes. These

are as follows;

LINE ORGANIZATION:

In this type, “authority flows directly from the chief executive to the manager, to assistant

manager, to foreman and to the workmen. Each position in the organization structure

enjoys general authority over all the lower positions in the hierarchy. Whereas authority

flows downwards, responsibility moves upwards, but directly in a straight line.”

LINE AND STAFF ORGANIZATION:

The staff organization came into being as the result of the inability of the departmental or

line managers to investigate, think, and plan at the same time.

Staff refers to officers who are not in the line, but are more or less permanently detailed

to specific service, and thus act as an advisory group adjunct to the line. Staff are thinkers

and line doers.

THE FUNCTIONAL ORGANIZATION

It splits up personnel according to managerial functions. The employee is under as many

bosses as his work requires. All related and similar work is done in one department under

one executive.

3.3 ORGANIZATIONAL STRUCTURE OF SCB

SCB is a functional organization and it is headquartered in London where a CEO heads

the whole Standard Chartered Group. On the basis of geography, Standard Chartered has

been divided into different regions like China, Middle East, Africa, South Asia, Europe,

North and Central America, Hong Kong etc. with a Regional Head for each region.

Furthermore, Standard Chartered also has functional division like Consumer Banking,

Corporate and Institutional Banking, Human Resource, Operations etc., which are headed

by Functional Managers. Reporting to the Regional Heads are CEOs of different

countries and Country Heads of various functional departments. The Country Head of

Pakistan who is the Senior Group Representative reports to the Regional Head in Dubai.

Standard Chartered Group in Pakistan is headquartered at Karachi with branches in all

major cities of the country. Branches are classified as Hub, Spoke and Network branches.

All these branches report to the Country Distribution Manager in Karachi. In cities with

more than one SCB branch, there exists one main branch which is called the ‘Hub”

branch and all the other branches report to the Hub. The branch manager of such an

enterprise is called the Hub Manager. The Hub Manager has ‘Spoke’, which are the

managers of the other smaller branches, reporting to him. A region with a single branch

instead of a Hub is called a Network branch. Standard Chartered runs three Hub branches

in Karachi alone, with 2 to 3 Spoke branches reporting to them. Branches in Faisalabad

and Lahore have a mutual Hub branch to which they report. There is another Hub branch

in Islamabad to which branches from Islamabad and Rawalpindi report. The remaining

branches existing in Peshawar, Sialkot and Quetta are all Network branches. The total

number of Standard Chartered Group branches operating in Pakistan is 21. Besides these,

First Grindlays Modaraba has 3 offices in Pakistan; 1 in Karachi, 1 in Lahore and 1 in

Islamabad, and offers leasing and Islamic finance facilities to its customers. A single

Chief Executive Officer heads the Standard Chartered Group Banks in Pakistan. Working

under the CEO are country heads of various departments of the bank. They are the

Consumer Banking Head, Corporate Banking Head, Investment Head, International

Operations Head, Human Resource Head, Treasury Head, Modaraba Head and

Information Technology Head. The Consumer Banking Head supervises the activities of

Country Distribution Manager (CDM), Credit Card Manager, Auto Loans and Personal

Loans Manager. CDM further controls the activities of Hub Managers and Network

Managers.4

3.4 ORGANIZATIONAL STRUCTURE OF SCB PESHAWAR

At the SCB Peshawar Branch, the workforce has been divided into different groups on a

functional basis and ranked according to their positions at the bank. At the top of the

chain is the Sales and Services Manager who heads the branch. This is the most senior

post at the branch and has been graded G6. Working directly under the Branch Manager

are the Teller Service Manager (TSM) and Personal Financial Consultants (PFC). PFCs

are basically responsible for marketing the bank’s products and services and bringing in

fresh business. This is why they have the Direct Sales Agents (DSA) and Customer

4 Source: www.standardchartered.com.pk/history

Relations Officers (CRO) reporting to them and assisting them in discharging their

duties. PFCs are there to provide guidance to customers and help them with their queries.

The PFC post has a G8 grade. If a PFC is transferred to a smaller Spoke branch he or she

will become Branch Manager there. TSM heads the Cash Operation department. This

department handles physical cash directly at the bank. Reporting to the TSM are Chief

Cashier and Operations Supervisor. Three Universal Tellers report to the Operations In

charge. The Locker Division also falls under the control of TSM and the Locker

Custodian reports to him. Other two departments at the bank are Cash Management

Department and Credit Card Department. The Cash Management Department functions

as a Corporate Banking Division and it does not fall under the jurisdiction of the Branch

Manager. Instead the department reports directly to the Unit Manager North in

Islamabad, who reports to the CMG head in Karachi.

A Business Development Manager who has a Sales and an Operations Agents working

under him heads the department at branch level. Similarly the credit card department also

does not report to the Branch Manager but rather to the Credit Card Regional Manager in

Islamabad. One Collection and Service officer forms it. Two Sales Agents also work in

this department.

3.5 DEPARTMENTATION AT PESHAWAR BRANCH

“A department is a unique group of resources established by management to perform

some organizational task. Departmentalization is the process of establishing departments

within the management system.”

Broadly speaking there are 4 departments in the Bank. They are:

1. Personal Financial Services

2. Cash Management Group (i.e. Corporate Banking Department)

3.

4. Cash Department

5. Credit Card Department

3.6.1 PERSONAL FINANCIAL SERVICES

a. Personal Finance

b. Sales Department

c. Lending Department

d. Greeter Services/ Customer Relations

The Personal Finance Department is headed by a senior Personal Financial Consultant

(PFC) who has the other PFCs, Direct Sales Agents (DSA) and Customer Relations

Officers (CRO) reporting to him. PFCs report directly to the Branch Manager. The main

functions of the Personal Financial Services sub-division are account opening and

closing, customer queries, deposits, filling out forms, performing KYC checks and other

services related to accounts. The duties of Lending Department are also carried out by

PFCs. The Lending Department is basically concerned with advancing consumer loans.

Therefore, activities related to advancing, handling and ending loans are the job of this

sub-division. They prepare Loan Accounts (LA), resolve excessions in Over Drafted

Accounts, follow up on mark-up recovery and other charges etc. Due to the nature of

their work the lending department has to coordinate its activities with credit departments

and the personal financial consultants. The Sales Department has Direct Sales Agents

(DSA) working in them who are concerned with marketing and bringing in fresh

business. They work to achieve monthly targets for liability generation and credit card

sales. The third sub-division is the Customer Relations. It is headed by a Customer

Relations Officer (CRO) The basic responsibility of this division is to entertain customer

queries about account balances, ATM, chequebooks, certificates etc. and provide them

with guidance. The DSAs and CROs are hired on a contractual basis and do not have a

grade.

3.6.2 CASH MANAGEMENT GROUP

This is a specialized function department concerned with Corporate and Institutional

Banking and deals with companies who have an annual average balance of over 60

million rupees. A Business Development Manager heads the department and has a

Business Development Executive (BDE) and a Corporate Services Officer (CRO)

working under him. The BDE is responsible for sales while the CRO works with

operations. Their functions are similar to that of PFCs except for the fact that one

department serves individual customers while the other serves corporate clients. The

department has a country head in Karachi as well as a Regional Cash Management

Manager in Islamabad. The salary account of organizations are also opened and

maintained with this department. The Foreign Trade Department of CMG exists in

Islamabad and it plans to start dealing in Peshawar too. Corporate Lending is centralized

in Rawalpindi. The CMG department in Peshawar is not directly involved in lending to

corporate sector. It just handles their finances for them and gives them consultancy

services.

3.6.3 CASH/OPERATIONS DEPARTMENT

The cash department can be classified into the following sub-divisions:

a. Strong Room

b. Teller Services

c. Locker Services

d. Banking Support Unit (BSU)

a. Strong Room:

All the money at the bank is kept in the strong room, which is located within the

cash dept. Only authorized personnel are allowed inside the department, and no

one else.

b. Teller Services:

Cashiers working in the cash dept are called tellers. The department is headed by

a TSM. This department handles all physical cash. Tellers have a job rank of G8

or G9. The functions of this department are:

• Cash transactions (all currencies)

• Cash balancing

• Treasury reporting

• Generating limit excess report

• Obtaining sign-off from PFC’s/BSSM on limit excess

• Custody and Delivery of ATM cards

• Custody and Delivery of Return tins

• Custody and Delivery of welcome packs

• Ownership of suspense accounts

• ATM balancing/reconciliation

• ATM cash replenishment

• ATM servicing and attending to routine faults

• ATM card deletion destruction

• Coordination of complex transactions with COU

• Monthly reconciliation

• Monthly FCY cash return

c. Locker Services:

The bank also offers Locker Service for the safe custody of valuables. The Locker

Service also falls in the TSM division.

d. Banking Support Unit (BSU):

This dept is the backbone of all activities of the bank. BSUs and Universal Tellers

work in this division and they coordinate the activities of the front office. This

division deals with operational issues. BSU post is graded as G8 or G10. The

BSU is also located in the cash section and only authorized personnel can enter.

Universal Tellers do not handle cash directly, instead they offer other services.

The functions performed by this division are:

• Receipt of all documents from PFC’s for scanning and onward dispatch of such

items for processing

• Remittances

• Receipt of requests for issuance, encashment and profit payments of government

securities

• Receipt of clearing/collection cheques and onward dispatch to COU/BSS/CMO

• Demand draft and pay order issuance

• Cheque book custody and deliveries

• Receipt of request for standing order on a/c

• Issuance of 5 leaf cheque book and counter cheques

• Cheque book destruction

• Issuance of FCY traveler cheques for customer’s enteries, stamping and treasury

reporting

• Marking of stop payment/cheques

• Custody and delivery of Hold pins

• Cheque Series Input

• Issuance of encashment certificates

• Urgent transfer request and conversion of FCY a/c

3.6.4 CREDIT CARD DEPARTMENT

This is a separate unit at the bank with a Regional Manager in Islamabad. The Cards

department falls into the Consumer Banking Division. In Peshawar the bank has

approximately 5000 credit card members and to serve them is the responsibility of a

Credit and Collection Executive who is also called Customer Services Officer. Reporting

to the CSO are two Sales Agents. At the Peshawar branch only the credit and collection,

sales and customer services functions of credit card department exist. A Recovery Agent

runs operations from Islamabad while Card Operation, Marketing, Analysts and

Embossments and Legal departments of credit cards are situated in Karachi.5

5 Source: www.standardchartered.com.pk/general Banking

CHAPTER-4

PRODUCTS AND SERVICES

The Bank serves both Consumer and Wholesale banking customers. Consumer banking

involves credit cards, personal loans, mortgages, deposit taking and wealth management

services to individuals and small/ medium sized businesses. The Wholesale banking

services cater to multinational, regional and domestic corporate and institutional clients in

trade finance, cash management, custody, lending, foreign exchange, interest rate

management and debt capital markets. “A product is anything that can be offered to a

market to satisfy a want or a need”.6 Standard Chartered offers a wide range of products

and services all over the world. SCB has three basic business areas in Pakistan. Some of

the products and services of these business areas are not mentioned in this report, as they 6 Kolter, P. (1997). Marketing Management. New Jersey: Prentice Hall. p.97

are not available at the Peshawar branch of SCB. For example, at the Peshawar branch

only Personal Finance, Credit Cards, Deposits and Retail, Cash Management, ATM and

e-statement facilities are available so far.

4.1 CONSUMER BANKING

• Asset Products

• Liability Products

• Retail Services

• Credit Cards

• Priority Banking

• ATM

• E-statements

Standard Chartered Bank in Pakistan enjoys a unique position as one of the oldest foreign

banks in the country, with a presence in this region of over 140 years. It is one of the

leading financial institutions in providing consumer banking services, priority banking

services, loan services etc. The consumer banking products and services are:

4.2 ASSET PRODUCTS

Asset products include Personal Loans, Auto Loans, Lifestyle Loans, Overdrafts and

Credit Cards.

In SCB Peshawar Branch only over drafts and credit cards, personal loans are available.

Auto loans and lifestyle loans will be launched soon.

4.3 PERSONAL LOANS

Personal Loans, without any guarantees or collateral, are available to customers to meet

their specific credit needs. They can choose Installment Loan or Revolving Loan,

whatever suits them best. Customers can boost their purchasing power with a Personal

Loan in an easy and cost effective way. Loans are available up to a limit of PKR

300,000/-.

Only those customers are eligible for the loan who are between the age of 23 and 60 and

who have a net regular monthly income of Rs.15, 000. The loan facility is only available

to customers residing in Karachi and Lahore and who have a minimum of one-year full-

time work experience at one of the bank’s approved companies.

4.4 LIFE STYLE LOANS

It is a cost-effective way to get extra financing to buy home appliances and other

electronic items. People of ages between 23-60 with a regular monthly net income of Rs.

12,000 or above can apply for it. The also should have at least one-year work experience.

Loan can be sought from Rs. 25000 to Rs.300, 000 with 0% mark up and 0% down

payment for loans up to one year.

4.5 AUTO LOANS

SCG also provides Auto Loans. SCG 1-2-3 Auto Loans offer a low down payment of

20% and the lowest mark-up rates. Financing is available for a period of 7 years and

repayment is made through monthly installments.

The mark-up rate and loan installments are fixed over the loan tenure, thus making it

easier for customer to manage their finances. By financing a car through SCG, customers

are eligible for preferential insurance rates through Adamjee Insurance, New Hampshire

Insurance Company, or Royal Exchange.

SECURED OVERDRAFT

“An over draft is the right given by a commercial bank to its customers to draw in

excess of his account upto a fixed limit”.

The Overdrafts product allows customers to meet their financing needs without

having to liquidate their deposits with SCB, or their government securities. Over

drafts are loans against security. In SCB securities are accepted in the form of

5 Cash (foreign currency or rupee deposit with SCB).

6 Government Securities, (SSC, DSC, RIC, Bonds, USD Bonds).

7 Foreign bank guarantee.

Other than pledging bank deposits with SCB in Pakistan, customers can also get

financing against deposits held with certain SCB branches outside of Pakistan. The

processing is quick and easy and the security of the collateral remains intact. The bank

offers competitive mark-up rates. The outstanding amount can be repaid at anytime

before the expiration of the facility.

How it works:

Over draft is a running finance facility. Current needs for liquidity are met without

breaking the high returns set aside. The overdraft account is a current account, which can

go into the negative. Customer can deposit money any time and can write unlimited

cheque within the assigned borrowing limit. To avail this facility the bank simply marks a

lien on the preferred mode of collateral.

As a standard a customer can borrow upto 75% of the collateral value. Markup rate is

from 7% to 12%, it depends on the

Security

Assigned limit to borrow

Time limit to repay

Mark up is calculated on daily basis and is chargeable quarterly.

Documents required:

Offer letter

Undertaking

Prudential regulations compliance sheet

Quarterly markup authority

Demand promissory note (promises to pay on demand)

Letter of lien

Borrowers basic fact sheet

Application for facility against deposit/ security/ financial guarantee

KYC (Know your customer)

Income tax declaration

Chattels (a security document issued by State Bank of Pakistan)

4.6 CREDIT CARDS

The comparative advantages of credit cards are

You don’t have to carry cash

Zero loss liability

Multi currency usage

SCB deals in two major credit cards brands i.e. Visa Card and MasterCard. These cards

offer financial flexibility, worldwide acceptance, and round-the-clock convenience. SCB

cards are welcomed at the largest number of merchant outlets across the world.

Revolving credit facility is provided to customers allowing them to repay their card

outstanding over time, at their own convenience.

Cash withdrawal is in local currency at Visa and MasterCard linked ATMs across the

world. The cards are available in 3 categories i.e. Platinum, Gold or Classic cards,

tailored to suit different lifestyles and needs of customers. The cards come with special

privileges and security and offer attractive reward programs. One can also have a photo

on the card and have it converted into a Photo card.

4.7 LIABILITY PRODUCTS

CURRENT ACCOUNT

A current account can be opened in Pak Rupee or US dollar. An individual Pak

Rupee account holder will also have access to 24 hour banking through the bank’s

money link ATMs and Phone Banking, absolutely free of charge.

At a glance:

Non-interest bearing checking account

Minimum balance requirement is Rs.50, 000.

Welcome pack provided for PKR accounts

Overdraft facility

Free 24-hour phone-banking

Free 24-hour deposit and withdrawal facilities through ATM network

Unlimited cheque writing facility

Free 24 hour mobile banking facility

4.8 TIJARAT ACCOUNT

SCG’s new current account, Tijarat, is ideal for supporting businesses. It is secure,

convenient and flexible. Tijarat is the only account that is operational at the time of

account opening so transactions can begin right away.

At a glance:

Can be opened and ready for business with a minimum balance requirement of

PKR 100,000 on a current account basis.

Free cheque book, cash and cheque deposit slips are given immediately

This account could be accessed from every place around Pakistan

Free on line transactions can be availed up to Rs. 1 million.

It waives the processing fee for auto loans.

ATM card is free with no annual fees and the highest withdrawal limit of

Rs.50,000

Taxes and Zakat are applicable

Free 24 hours Phone Banking

Free 24 hour mobile banking facility

4.9 SUPER SAVE ACCOUNT:

Super save account offers the dual advantages of earning profit on daily balances with

liquidity and having full access to your money at any time. Customers earn higher profits

on Super Save Account compared to other saving accounts.

The profit on Super Save Account will be calculated on the minimum balance held in the

account each month, every month for a six-month period. This means that even if the

balance of the account drops below the minimum requirement of PKR 25,000, customer

will continue to earn profit at the lowest tier.

The convenience of savings 24 hours a day by using the personal account link ATM card,

and by accessing Phone Banking Services at the customer’s own preferred banking hours,

is also provided.

At a glance:

Easy deposit and withdrawals from any Standard Chartered branch across

Pakistan

Minimum opening balance as low as PKR 50,000

Profit calculated on daily balances

Profit is credited to account on a six monthly basis in January and July

Unlimited chequing facility

Tiered profit rates mean that customer’s earn more as their balances climbs.

Taxes and Zakat are applicable

Free 24 hour mobile banking facility

HIGH YIELD:

High Yield Account offers the dual advantages of earning profit without sacrificing

liquidity. A tiered rate structure automatically adjusts return relative to balance of

account, resulting in higher absolute returns. At SCG there are four distinct tiers with

different rates.

At a glance:

Minimum opening deposit of PKR 500,000

The higher the balance, the more profit customer earns

24 hour banking giving customers day and night access to their saving throughout

the year

Profit earned on daily balance is credited to account at end of each month

Profit is paid monthly

High Yield Accounts offer an unlimited transaction facility without any charges.

No charges are levied even if balance falls below PKR 500,000.

ATM card provided.

Taxes and Zakat are applicable

4.10 FLEX ACCOUNT:

This is a flexible account for individuals who want more value for their salaries. Flex

account puts your salary to work from the day it is credited. Profit on Flex is calculated

on a daily balance basis which means that customers benefit on their closing balance

every day of the month and not the minimum monthly balance typical of other accounts.

At a glance:

No minimum balance requirements and therefore no penalties for low balances.

Flex Account can be opened for as little as customer likes

Profit earned on daily balance is credited to account at end of each month.

Profit is paid monthly

Flex only sends an annual statement. However mini-statements can be obtained

from ATM or free Phone-Banking service.

Flex offer customers the first chequebook for free. However, subsequent

chequebooks will be charged Rs.10/- per leaf.

Taxes and Zakat are applicable

Privilege Account:

It is an advanced version of the super save account. The Privilege Account offers

customers the dual advantages of earning profit without sacrificing liquidity.

Customers earn higher profit on higher balances and have full access to their

savings at all times.

Minimum balance requirement is PKR 500,000 but no charges are levied if the

balance goes below this figure

If profit goes below minimum balance profit is calculated at the lowest tier rate

for that month

Balance earned on the monthly balance is credited to customer’s account at the

end of each month.

Unlimited transaction facility offered without any charges

Taxes and Zakat are applicable

4.11 RUPEE TERM DEPOSIT:

Standard Chartered Grindlays rupee term deposits is available in 1, 3, 6 months and 1-

year tenures. Term deposits have an exclusive tiered rate structure where higher balances

lead to higher profit rates. Customers can choose to receive profit paid out into savings or

current account for access to funds, or rollover the deposit along with the profit. SCG

provides an automatic rollover option. Unless otherwise advised by customer, the deposit

will be renewed at maturity at prevailing profit rates, so customer can continue to earn

profit without any hassles.

At a glance:

Attractive returns

Profit paid upon maturity of deposit

Flexible deposit periods

Choice of monthly, quarterly, semi-annual, or annual profit payments

Automatic renewal of deposit

Free 24-hour phone banking

Overdraft facility

Taxes and Zakat are applicable

US$ ACCOUNT:

SCG also offers current and savings accounts in US Dollars.

At a glance:

Unlimited chequing facility

Funds from new foreign currency accounts freely remittable

No Zakat or withholding tax deductions

PKR overdraft facility available

4.12 CLUSTER DEPOSIT:

Cluster deposits are designed to cater to profitability and liquidity needs. Cluster deposits

work like a bunch of grapes: You can pick some of the grapes in the bunch without

affecting the natural goodness of the remaining grapes. Likewise a cluster deposit lets

you take some of your funds out without affecting the returns and profitability of the

remaining funds. Which means customers can benefit from the best of liquidity and the

best of savings. Cluster deposits are the only PakRupee term deposits available in

Pakistan that allows customer to withdraw upto 90% of the amount of their deposit by

simply writing a cheque. When a customer opens a Cluster deposit, the bank opens a

linked PKR current account for the customer and gives him or her a chequebook for that

account. Funds will be transferred from Cluster account to linked current account for

withdrawal.

At a glance:

Minimum deposit required PKR 50,000

Partial deposits/withdrawals in multiples of PKR 5,000

Tenor of 6 months and above offered.

Choice of monthly, quarterly, semi-annual or annual profit payments

Automatic renewal of deposit

Adjusted interest on premature withdrawal amount

Withdrawal through cheque or ATM

Online connectivity across 21 branches for seamless service.

Free 24-hour phone banking

Overdraft facility

4.13 RETAIL SERVICES

Standard Chartered offers a comprehensive range of retail services. These include:

MONEY TRANSFER

Money could be transferred through

i. Pay Order

ii. Demand Draft

iii. Telegraphic Transfer (A term used to describe electronic payment transactions.)

iv. Upon Identification

Money can be transferred between different branches of SCB or bank-to-bank.

LOCKERS

Lockers are provided to customers who maintain an account with the Bank.

The fee varies with the size of the locker. But if the customers maintain a Privilege

account no fee is charged up to six months. If the account is of 2 million or above even

purchase fee is not charged.

4.14 RAVELER’S CHEQUES

“It is a sight draft issued by a bank drawn on its self and sold to the customers who pays

and signs the draft at the time of purchase. It is guaranteed against theft or loss by the

bank provided the bank is immediately informed and convertible into currency of issue or

other currencies on demand.”

AT A GLANCE:

TC is issued to people maintaining a foreign currency account with the Standard

Chartered Bank.

Bank charges 1% of the total amount of TC.

Accepted world wide

Visa LC’s are issued at SCB

4.15 AUTOMATED TELLER MACHINE (ATM) SERVICE

With SCG’s ATM card, customers can now bank whenever they want, 24 hours a day -

365 days a year. They can enjoy a host of banking services including cash withdrawals,

deposits, balance inquiries, statement & cheque book requests, funds transfer, PIN

changing facility and more at ATM machines across Pakistan.

At a glance:

It is issued on Pak Rupee current or saving Account

Minimum balance requirement of the Bank should be met

Around the clock access to account functions

It is issued for cash with drawl

It is used to check account balance

Up to three accounts can be linked to ATM

Fund can be transferred from one account to another

Cheque book request can be processed

Provide mini statement of last 10 transactions

Used to cash or deposit cheque

Supplementary card can be issued in case of joint account

E-statements

Any customer with an e-mail address can receive an e-statement. This fast, reliable and

ultra-efficient service is designed to minimize paperwork and maximize convenience.

Customers can receive account statements and advice via e-mail absolutely free. No bank

charges are involved. All anyone needs to get started is an e-mail address. The e-

statements can be delivered to more than one e-mail address. This offers customers 24-

hour access to their financial standing. Customers receive e-statements as often as they

have specified in their account opening forms.

IQRA EDUCATION FINANCING

One can provide their children with every advantage and ensure that their potential will

be nurtured to its fullest. Parents sometime have to compromise on their child’s interest,

welfare and future because of lack of funds to pay for their education. SCB has

introduced an educational financial scheme for the said problem i.e. Iqra education

insurance plan. It is a unit-linked product providing the customer excellent vehicle for

savings and investment with vital protection against the tragic incidents of life.

PRIORITY BANKING

As an exclusive program of personalized banking for those who wish to get more benefits

out of their bank. SCB Priority Banking caters to the banking and investment needs of

successful individuals who are busy with work and family commitments. Priority

Banking offers privilege and preferred financial solutions tailored according to the

individual needs of the priority customer. Individual attention as well as international

banking and investment opportunity is offered to meet the current and future needs of

priority customers. Besides providing unique financial planning service that provides

customized solutions for the financial needs, investment and risk profile and priorities in

life of customers, SCB also provides global access to banking and lifestyle privileges

through their Priority Card facility. SCG has an international presence supporting

customers across more than 50 Priority Banking Centers in 23 countries.

4.16 CORPORATE AND INSTITUTIONAL BANKING

Standard Chartered is a bank with over 140 years of experience in trade finance and it has

an extensive international branch network. The bank offers a flexible and comprehensive

range of financial services, in particular transactional banking products. The investment

in these branches is considerable, ensuring that the business is supported by high-tech

state of the art technology. At the Peshawar branch of SCB only the Cash Management

Service is available to clients. The rest of the services are unavailable in Peshawar so far.

CASH MANAGEMENT

SCG is highly recognized as a leading cash management supplier across the emerging

markets. Its Cash Management Services cover local and cross border payments,

collections, information management, account services and liquidity management for

both corporate and institutional customers.

The Cash Management Services are there to:

manage the availability of customers funds efficiently

monitor and control the movement f funds

Settle payments to the suppliers of customers in a timely and cost-effective

manner.

capture every investment opportunity to increase income of customers

The purpose of the Cash Management Services is to manage the cash flows of

corporations more accurately. Customer companies will have the flexibility to manage

their company’s complete financial position directly from their computer workstations.

They can also take advantage of products like payments, collections, liquidity and

investment services.

4.17 SERVICES OF CASH MANAGEMENT GROUP

The services of this department are classified into the following categories:

I. ACCOUNT SERVICES:

Standard Chartered Account Services offers a wide range of account management

solutions to ease the hassles of day-to-day banking.

Benefits:

• Total Account Solutions

• Account structures to help manage and keep track of funds effectively

• Flexible payment and collection capabilities

• Inter-account transfer, including setting target account balances, to ensure that

sufficient funds are kept in each account

• Enhanced Earning Opportunities

• Receivables and Payables Solutions are offered to accelerate collections and

shorten the payment process through prompt availability of funds

• Information Solutions like Premium Service Banking, which furnishes customer’s

with daily, weekly and monthly reports to help them control and manage their

funds strategically.

• Dedicated customer service to pick up and return all documents, cheques,

telegraphic transfers, drafts, cashier's orders and trade-related documents with

pre-arranged schedules.

• Business Phone Banking: Standard Chartered's Business Phone Banking allows

customers to access the full range of banking services with Standard Chartered. This

service is available to them 24 hours a day and 7 days a week. They can get

information on how to manage their business more effectively by just calling up the

bank. They can also access their accounts, find out their account balances and inquire

about account transactions over the phone.

Internet Banking: E banking enables customers to initiate transactions and receive

account information at their PC. With this service customers can get prior day

reporting for Current, Savings and Term accounts. They can also get trade reporting

covering. This facility gives customers worldwide access to their accounts at all times

and also accesses to a wide variety of information critical to decision making.

Customers can also get economic reports and marketing material through the Internet.

ii. PAYMENT SERVICES

Depending on the business requirements of customers, SCG can offer them various

payment services.

• International Payment Services

• National Payment Services

These services will effectively cut down the time customers spend on tracking and

settling their payments, while giving them full control over their cash resources.

4.18 INTERNATIONAL PAYMENT SERVICES

International Payment Services (IPS) streamlines the payment process of customers to

satisfy their cross-border payment needs, while giving them full management control.

With this service, customers no longer need to deal with the differences and difficulties in

payment practices, foreign currency exposures, time zones, language barriers and other

time-consuming issues.

IPS is simple and cost-effective as it can make payment to almost any country and in any

currency. Payment initiation, foreign exchange, settlement and reporting are combined

into one integrated package, which makes reconciliation easy.

Benefits

• Efficient and timely processing

• Improved vendor relationships

• Instant access to payment information

• No surprise fees

• Simplified reconciliation

• Reduced exposure

NATIONAL PAYMENT SERVICES

National Payment Services is an automated payment system that helps reduce processing

costs enhances y control over payment and provides a value-added service to suppliers.

These services are designed to fit into customer’s existing accounts payable process. It

eliminates most manual tasks involved in making local currency payments, freeing up

management and staff for more productive activity. National Collection Services (NCS)

serves as a single window solution for both local and upcountry collections; local

cheques are any cheques drawn on banks within the same clearing zone as deposited and

upcountry cheques are those that are deposited in one clearing zone and are drawn on

another. NCS helps speed up the collection process by reducing the number of days of

receivables and sales outstanding. It also automates the receivable reconciliation process,

relieving the customer of a lost of manual work at his end.

BENEFITS

• Cost savings

• Enhanced security

• Time savings

• Better control of your cash

• Improved relations with your vendors

• Simplified reconciliation

• Simple to operate

• Backed by dedicated customer service

NCS offers three types of collection, which are explained below.

4.19 INDIRECT COLLECTION:

Indirect Collection refers to collection that is routed through a SCB branch where the

customer deposits all collection instruments drawn on any location in Pakistan, either on

a SCB / SCG branch or any other bank’s branch in a different clearing zone. The process

work as follows for SCB branches:

1. SCB will accept cheques, drafts etc, at any of SCGB branches countrywide.

2. The collection instruments are sent to the relevant SCB branch in the location on

which the instruments are drawn, the same day through overnight courier. Any

instruments drawn on a Non SCB location will be sent to the NCS Center at SCB

Karachi.

3. Information on receipt of cheques at various SCB branches under NCS program is

advised to the main NCS Center in Karachi via special stationery used for NCS

customer transactions.

4. On the basis of information received from branches MIS reports in pre-agreed

formats are generated by NCS Center at SCB Karachi. These reports are provided

to the customer on a daily basis at the customer’s Head Office in Karachi.

5. The receiving branch then processes the instruments.

4.20 DIRECT COLLECTION.

Direct collection refers to local clearing instruments deposited by the customer

directly at any of the SCB branches.

1. SCB accept cheques, drafts etc, at all SCB branches (located in Karachi, Lahore,

Islamabad, Rawalpindi, Peshawar, Quetta and Sialkot).

2. The branch raises an Inter Branch Credit Voucher (IBCV), for the total amount of

the day’s deposit, the same day with value date for the next day. The IBCV is

faxed to SCB Karachi the same day for crediting the main collection account of

SCB (NCS) with SCB Karachi on value date, after clearing return cut-off time of

4:00 p.m.. All funds are transferred to the Customer’s account with SCB at

Karachi (for SCB customers).

3. Collection instruments received within cut-off times are sent for clearing the next

day; those received after cut-off times are lodged in clearing one day later.

4. In case of any dishonored instruments, the branch intimate SCB Karachi through

facsimile. Entries are reversed for the amount in question to offset the credit given

to the customer’s main collection account earlier.

4.21 DIRECT DEPOSIT.

Direct deposit refers to Cash deposit by the customer or his representative directly at any

of SCB branches all over Pakistan. The branch processing will work as in the case of

DIRECT COLLECTION

1. SCB accepts cash at all SCB branches (located in Karachi, Lahore, Islamabad,

Rawalpindi, Peshawar, Quetta and Sialkot).

2. The branch will raise an Inter Branch Credit Voucher (IBCV), for the total

amount of the day’s deposit, the same day with same day value. The IBCV will be

faxed to SCB Karachi the same day for crediting SCG’s main collection account.

All funds are transferred to the NCS account maintained at SCB Karachi.

COLLECTION SERVICES

Spending time going to the branch, completing the deposit forms, queuing up for a teller,

checking statements to find out when funds have arrived, and reconciling net proceeds

against deposits: all of these activities consume energy better spent on more productive

activities.

SCG’s Collection Services can assist customers in collecting their local and foreign

currency funds faster and more efficiently.

International Collection Services

Clearing foreign currency cheques takes time and effort to deposit and to monitor.

International Collection Services (ICS) is an improved way to clear foreign currency

cheques. It makes foreign currency cheque deposits easier, faster and more predictable.

The newly redesigned deposit process includes a pre-completed foreign currency cheque

deposit slip contains all the customer company’s information and account details,

minimizing the time spent on completing forms. Guaranteed Collection is a new clearing

service, which guarantees the clearing period for cheques deposited by customers. On the

committed date, the bank credits the account of the customer with the amount of cheques,

regardless of whether or not the cheques have been cleared. By committing to the precise

date when they receive value, customers can better manage their cash flow. This service

is currently available for USD cheques drawn on US banks.

NATIONAL COLLECTION SERVICES

National Collection Services improve a company's liquidity by shortening the collection

cycle. It makes funds available to you quickly through our extensive local presence and

in-depth knowledge of financial clearing systems world-wide. It addresses the need for

greater liquidity, easier reconciliation and greater control over local currency receivables.

BENEFITS

• Offer comprehensive coverage for efficient clearing

• Improve your cash flow.

• Simplify reconciliation and reduce idle balances

• Receive better information

SERVICE FEATURES

• Cheques can be deposited from all over the country without having to have

multiple accounts.

• Funds can be credited to you quickly by way of automatic transfer to

Concentration Account.

• Concise summary of account status is sent to clients in the form of a Deposit

Reconciliation Report, a Consolidated Cash Inflow Forecast Report, a Return

Statement an Activity Report and a Billing Statement to simplify record-keeping

and reconciliation processes.

• If cheques are returned for some reason, clients are be immediately informed of

the details and the reason.

• Receive pre-agreed availability, based on cheque types, into central concentration

account.

PRODUCTS OF CASH MANAGEMENT GROUP

The services detailed above are structured into products to cater to customers need of

Peshawar region.

NATIONAL COLLECTION SERVICES (“NCS”)

In today’s age corporate clients have realized that their resources are scarce and

expensive optimum utilization is required to increase revenues and profitability. To

ensure the same, Standard Chartered Bank (“SCB”) has devised a tailor made product to

cater to special needs and requirements and in doing so improve customer’s net cash

cycle. Rationales behind this product are outsourcing of client’s reconciliation and

collection management to the bank and allowing themselves to concentrate on core

business related issues. In a multiple clearing zone and paper based settlements

environment, NCS helps collect cheques/cash/other negotiable instrument based

receivables in a swift and efficient manner by guaranteeing availability of funds to the

main concentration account and ensuring access to vital transactional level details. NCS

obviates the need to have multiple accounts and facilitates the pooling of countrywide

funds into one main operating account.

How It Works

• Specially designed deposit slips for NCS are provided to designated offices.

• The cheques / pay-orders then have to be deposited into the relevant branches of

SCB/Correspondent Banks along with the NCS deposit slips.

• Once received at the bank premises, the instruments are be physically

verified/tallied against the accompanying deposit slip. The deposit slips are

acknowledged and a copy is handed over to the depositor;

• Local cheques are be lodged in local clearing the next working day, outstation

items will be sent to courier to their drawee locations by overnight courier.

• Subject to realization, all proceeds will be credited to customer’s concentration

account maintained at SCB Karachi;

• Dishonored cheques are reported to the originating location and/or Head Office,

as required.

• Detailed MIS is provided enabling to assessment of the business activities of the

client group that includes the following:

1. Deposit Report: provides a list of deposits made during the day in your accounts

and their value dates for clearance.

2. Cash Flow Forecast Report: provides a summary of credits for the day.

3. Return Cheques Report: highlights a list of uncleared or dishonored cheques

along with the reasoning stated by the respective drawee bank.

4. Reconciliation Statement: lists all the accounting entries passed to customer’s

core amount.

PREMIUM SERVICE BANKING (“PSB”)

Premium Service Banking is a packaged product enabling the bank to come to client’s

doorstep rather than having to come to the bank. PSB enable them to communicate to the

bank in an efficient and timely manner for speedy resolution of their day-to-day queries.

It has a simple yet efficient mix of service delivery solutions including hotline service,

courier, inward remittance information, return cheque notification, auto fax reports of

money market ‘ foreign exchange and account related information. All the above services

are housed under one set up ensuring efficient turnaround and service delivery as and

when required.

How it works:

Modules:

• PSB Courier: The bank provides the convenience and security of daily courier

pick-up and delivery services at customer’s premises for their routine banking

transactions. The services are available for cheque deposit, trade finance

documents, payment instructions, chequebook requests etc.

• PSB Hotline: Hotline ' 111-600-600 will connect customers to their very own

service respective who will resolve all day to day queries.

• PSB Auto Fax Reports: It provides customers with a detailed account statement

covering balance and transaction information. They have the option to select from

a daily, weekly, fortnightly or monthly frequency.

• PSB Information Module: 2 types of report are provided under this module i.e.

cash reports, and foreign exchange ‘Money Market updates. Under cash reports

PSB provides auto faxed account statements with extensive transaction based

information, loans and fixed deposits reports with complete details i.e. amount,

maturity, interest rate, rollover dates etc. The Foreign Exchange / Money Market

updates provide daily and weekly data on rates, market announcements, key index

movements, and concise market commentary in local and international arenas.

• PSB Inward SWIFT Remittance Service: The Inward Remittance report provides

a pre-advice of all inward SWIFT funds transfers. Or Inward Telexes: Complete

information about who send the fund to the organization.

• PSB Return Cheque Notification: Information to be based on fax instructions with

the use of our standard fax indemnity.

PSB also allows instructing SCB to execute transactions based on fax instructions

with the use of standards fax indemnity.

4.22 ELECTRONIC BANKING (“EB”)

E Banking is fully integrated electronic banking service enabling to initiate transactions

and receive account information at customers PC. E-Banking is a multi-bank, cross-

border, cross currency system, which is ISO 9002 certified e-Banking provides a secure,

reliable and effective link between the accounts you maintain with SCB anywhere in the

world. The primary capabilities of the system include:

• Prior day reporting for current and savings accounts.

• Multi-bank reporting capabilities.

• Cash initiation capabilities including Pay Orders, Demand Drafts, and

Telegraphic Transfers and Standard Chartered Account transfers.

• Remote Authorization.

• Trade transaction initiation.

4.23 PAYMENTS PLUS (“PP”)

As an enhancement to the features provided under the e-Banking package as detailed

above, SCB has developed a plug-in for large corporate customers to further streamline

and automate their payments procedures. Whilst the standard payments features of e-

Banking allow for a great deal of flexibility in terms of customized templates for specific

beneficiaries, the accounts payable system of most large corporates already generates all

the necessary information for specific payments, which would then be re-keyed into the

e-Banking system. This re-entry of data is a key bottleneck where management time is a

scarce commodity and daily transaction volumes are high. SCB’s Payments PLUS

product serves as an interface between the Accounts Payable module of the accounting

software in use at customers back office and the SCB e-Banking terminal, by translating

the individual elements of the payments output file into standardized SWIFT formats for

encryption and secure transmission to the SCB payments center. Once there, the

Payments File is decrypted, authenticated and processed according to the transaction

types (pay order, demand draft and internal transfer) and destinations specified. Payments

PLUS helps to minimize the level of manual intervention both on the customer site and at

the Bank’s back office, improving efficiency and enhancing speed, accuracy and control.

The ability of the product to support remote printing of drafts and pay orders across all

SCB branches in Pakistan also adds flexibility while reducing turnaround times.

4.24 INTERNET BANKING (“IB”)

The e Banking is complimented by the Internet delivery channel. The SCB portal can be

accessed at www.standardchartered.com/cib. The key features of this service are listed

below:

• Prior day reporting for Current, Savings and Terms Accounts.

• Trade reporting covering L/C Outstanding and Acceptances.

• SCB Network reference and marketing material.

• Economic Reports.

• Secure messaging between customers and SCB including file attachments.

• Access to account worldwide.

• Access to accounts at all times.

• Access to a wide variety of information critical to your decision-making.

• Access to accounts in a cost effective manner, as information delivery is browser

based i.e. Explorer or Netscape.

BILL PAY

SCB is pleased to announce the launch of its new product “Billpay” designed to help pay

bills at one place, in one go, and put an end to all the hassles involved bills the traditional

way. Bill pay eliminates the need to stand in lines, run around to different places or waste

time in unacceptable environments.

WHAT IS BILL PAY?

Bill pay is a retail bill collection product that provides a one-stop solution to pay bills in a

friendly and relaxed environment via easily identifiable and accessible Bill stop stations

(drop boxes) placed within Standard Chartered branches. At present, SCB accept KESC,

SSGC, PTCL, Mobilink, Ufone, Paktel and Instaphone bills.

MODES OF PAYMENT ACCEPTABLE

Customers employees can pay their bills through direct debit (to their saving/current

account or direct debit to their Standard Chartered credit card) or through local cheques

(drawn on any local bank).

How it works

Customers employee(s) can just walk up to the bill stop station, sign up as a Billpay

customer using activation forms made available at the billstop station and follow these

three simple steps:

• Take a customized envelope from any Billstop station.

• Fill in the payment details enclosed on the inside flap of the envelope, place bills

and cheque (if any) in the envelope pocket.

• Securely seal the envelope and drop it in the drop box (3 working days in advance

of the bill due date).

BILL PAYS ARCHIVES

Under Billpay, once the employee signs up as a Billpay customer, he/she is eligible to

subscribe to the Billpay Archives Module, which maintains the original paid bills and

also provides a detailed up-to-date advice of the paid bills reflecting the bill history of the

Billpay customer. For any queries, concerns or information required on the bills, Billpay

customers can call on our dedicated Billpay Centre Hotline ' 111-600-600

CASH PICKUP AND DELIVERY

Cash Pick-up & Delivery service provides the convenience and security of having your

cash collected from and / or delivered to customers premises.

Customer Benefits

• Transaction at your doorstep. A security company will pick-up and / or deliver

cash at your designated premises.

• The security company chosen is one the most reliable security companies in the

country. The security companies collects and / or deliver cash in a sealed

container. Cash whilst in transit will be fully covered by insurance up to a

specified limit.

• No need to maintain multiple accounts for each of your collection centers; cash is

deposited at specified concentration account with Standard Chartered.

• Rationalization in the number of bank accounts will facilitate your reconciliation

process.

• This service in tandem with PSB product will help reduce daily visits to the bank

and therefore, all associated costs such as vehicle, petrol and taxi fare. In addition,

cash in transit insurance is economized on or eliminated altogether.

• All cash is insured up to PKR 1 million per container and PKR 30 million per

van, whilst in the custody of the security company.

BENEFITS PLUS

Benefit PLUS able to outsource all fund related activities to SCB (including provident

fund, gratuity and pension). The fund trustees, while minimizing internal burdens, offer

this product as part of cash management product line with the ultimate goal of

streamlining the administration of staff funds held in trust. In large organizations,

administering fund accounts can be cumbersome and divert the valuable time of

professionals within the Company. The services provided can be classified into several

categories:

BANKING SERVICES AND MIS REPORTS

SCB establish accounts for respective fund as necessary in banks branch network. All

transactions conducted in these bank accounts are strictly in accordance with normal

banking practices. SCB have developed a comprehensive Information System to enable

trustees to keep regular track of various activities undertaken by SCB on their

instructions, which include:

Maintain bank accounts for each fund along with notional accounts of the employees

Purchase, sales & encashment of all government / other debt securities (PUBs, T-

Bills, NITs, TFCs) from both primary as well as secondary market, on the instructions

of the Trustees. (This service is subject to SBP instructions from time to time).

PROFIT COLLECTION ON ABOVE SECURITIES

Benefit PLUS program is developed on MS Access and is supported by Visual Basic

Modules and SQL queries.

SAFEKEEPING

Through Benefit Plus, one avails SCB’s Safekeeping services. Trustees are often faced

with the lodgment of valuable government securities in several locations, including their

own vaults, which present obvious operational risk issues. SCB, as a trusted financial

institution, has the necessary infrastructure and resources to allow outsourcing of this

administrative activity. The safekeeping services offered are:

• Safekeeping of Government securities / other debt instruments.

• Dividend / Bonus share collection, Right Share payment etc.

DEDICATED CUSTOMER SERVICE

Customer service hotline handles transactional and other queries regarding employee

balances, status of securities, fund balances, etc.

TOTAL FLEXIBILITY

The Bank provides a tailor-made service package, combining various elements of the

foregoing product features with their range of existing products and services, according

to specific requirements.

The charge includes the following services for Fund accounts:

BANKING AND INVESTMENT SERVICES ALONG WITH MIS REPORTS

• Maintain bank accounts for each Fund along with notional accounts of the

employees.

• Purchase of all government / other debt securities (PIBs, T-Bills, NITs, TFCs)

from both primary as well secondary market subject to SBP / government

restrictions.

• Encashment of above securities.

• Interest coupon collection on above securities.

• Telephone hotline service.

• Securities Issuance commission and safekeeping carry additional charges as stated

in the pricing index.

DIVIDEND PLUS FOR PUBLICLY LISTED COMPANIES ONLY

SCB provides an organization, ways to automate and streamline its dividend

payment processes, including disbursement and reconciliation, to enhance

relationships with institutional and individual shareholders while reducing cost

and turnaround times. This document will address each of these needs, while

addressing the following broad requirements:

• Streamlining shareholder dividend collection and timely presentation of

information related to paid dividend warrants.

• Delivery of warrants to shareholders via a recognized courier service.

• Reduction of overall costs incurred in the processing of your dividend payments.

• Enhancement of management control and reduction of risks involved in

administering dividend payments.

• Increasing productivity of the respective function within the organization.

4.25 FLEX ACCOUNTS

In order to facilitate permanent employees in maintaining accounts with the Bank and

receiving salary credits at each monthly salary cycle, SCG would like to introduce its

payroll product called Flex Accounts. Flex is the most convenient account for individuals

who want more value from their salaries. The salient features of this product are

highlighted

PRODUCT FEATURES:

• No minimum balance requirement.

• Salary starts earning profit from the day it is credited, unlike other accounts where

profits are calculated on the minimum balance during the month.

• The profit earning will be credited to the account each month, unlike other

accounts where it is credited on a six monthly basis.

• Flex entitles the employees to a free ATM card (see below for details of our ATM

services)

• ATM card can be used to avail exciting discounts at more than 100 outlets across

the country.

• The employees can also avail free phone banking services.

How to gain maximum advantage from Flex account?

• Access account information through mini statements from the ATM or phone

banking; a detailed account statement sent to the account holders annually.

• By using the ATM for withdrawals the employees can avoid the PKR 50

transaction charge at the bank counter.

• A 25-leaf chequebook will be issued to the employees free of cost; subsequent

chequebooks will be issued at the rate of PKR 10 per leaf. By using the

chequebook smartly one can avoid these charges.

• To become a “Flex” customer, the existing savings or current account will have to

be closed and a new account will be opened in this category. New chequebook,

ATM card and Phone banking TIN with this account will be issued to each

employee upon completion of the documentation.

• ATM services: Currently the Bank has the largest network amongst foreign banks

of 15 online ATMs. Very soon, 10 new ATMs will be added at our branches and

other convenient customers access to their MNET network of over 100 ATMs

across Pakistan (there is a nominal transaction free for using MCB ATMs).

POLITICAL RISK GUARANTEE (PRG) FACILITY IN PAKISTAN

Asian Development Bank (ADB) approved in December 2000 the SME Trade

Enhancement Finance (SMETEF) Project for Pakistan, which is designed to help improve

Pakistan’s trade finance system in a number of key areas.

Under the PRG Facility, ADB shall guarantee payment to participating international

banks confirming certain eligible Letters of Credit (L/Cs) issued by registered Pakistani

Banks - if the issuing bank fails to pay under the L/C and this failure to pay is the result

of the occurrence of certain political events which have been pre-agreed between ADB

and the Government of Pakistan (GOP). Standard Chartered has been selected as ADB’s

facility agent to manage the operational aspects of this facility from its Dubai office on

behalf of ADB. Offshore suppliers that sell much needed imports to Pakistan may at

times encounter difficulties in obtaining confirmation of L/Cs issued by Pakistani Banks,

or have done so in the past at a high cost. This may result in Pakistani exporters paying

more for inputs used for export production than their international competitors. The

objective of the PRG Facility is to ensure continued and improved access to finance for

imports that are directly or indirectly used for export production. The PRG Facility seeks

to reduce financing cost, increase tenor and keep Pakistan country limits for international

banks confirming eligible import L/Cs.. For eligible imports, applicants can indicate their

desire for cover under the PRG Facility by submitting an Application Certificate to their

issuing bank in Pakistan at the time of opening an L/C or subsequently on account of an

amendment.

CHAPTER –5

SWOT Analysis

“SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats”.

SWOT Analysis is a tool used for analyzing the internal and external environs of an

organization. SWOT, which is also called TOWS matrix, stands for Strengths,

Weaknesses, Opportunities and Threats. To evaluate an organization and forecast for its

future, it is essential to analyze the organization from inside out, taking both external and

internal factors into consideration. Every organization, no matter how perfect or

imperfect, will have certain strengths as well as weaknesses inherently present in it.

Similarly, no organization, no matter how big or small, can exist in isolation. The threats

and opportunities existing in the external environments surrounding it will influence the

performance as well as future state of the organization. Therefore, the SWOT analysis

plays a very important role in understanding and appraising a business entity and it is an

important decision making tool.

5.1 STRENGTHS

Organizational strength is defined as, “A skill or capability that enables an organization

to conceive of and implement its strategies”

Identify Customer needs

SCB through systematic process, try to identify customer’s needs and match them with

best-fit quality products. Their objective is to give outstanding value to customers by

providing high quality, efficient and reliable services in a personal and responsive

manner. They through relentless efforts are trying to seek to improve relationship with

current customers, while also forging ties with new customers.

Global Presence

SCB has a global network of 616 offices in 56 countries. It is now the number one global

bank with 74.34% of its assets and 83.43% of its income coming in from outside UK. Its

strong areas of operation are treasury, consumer banking and; corporate and institutional

banking. Standard Chartered comes in the top ten banks in United Kingdom.

Member of CHAPS

They are one of 16 direct settlement members of the British Pound Sterling (SWIFT

Code GBP) same-day value electronic payment system, CHAPS, which operates on a

Real Time Gross Settlement (RTGS) basis. As one of CHAPS clearing banks Standard

Chartered has an impressive operation with outstanding capabilities, excellent systems

and the capacity to take on additional volume without adversely affecting high service

levels.

Technological Advancement

Standard Chartered Bank has a policy of keeping it self up to date in terms of

technological development. The social attitudes towards Banking is changing as customer

now also look for their convenience apart from other factors and that’s why internet

banking is now the hot topic of discussion in the board room meetings of bankers. The

trend of internet banking is developing slowly as compare to the US, but Standard

Chartered is taking no risks and has already started internet banking and is all geared up

for this new technology. They have a separate new product development team to create

banking products according to the changing trends of the society and want to be a leader

in meeting the new demands of the potential customers.

SCG is one of the few banks that offer on-line banking in Pakistan. Its ATM and e-

statement services make it a very convenient place to bank at.

GROWTH IN THE EMERGING MARKETS

Standard Chartered has a responsibility to those who work for the group, to its

shareholders, to its customers, to those countries in which it operates and to the wider

environment. Standard Chartered’s community programs target those countries – mainly

in Asia, Africa and the Middle East – from which it derives its profits. In the year 2000

£3.9 million was spent on such programs (Standard Chartered’s Annual Report for 2000).

Their roots lie in the emerging markets, where they have a strong and established

presence. This gives them a unique knowledge, insight and understanding of these

markets, which have unmatched growth potential. This gives Standard Chartered a

competitive edge over other banks. This bank has chosen to go against the flow of

stream of the stereotype banks by adopting the policy of expanding in a big way in the

emerging markets. While other big banks were too reluctant to invest in those markets.

Standard Chartered purchased banking group Grindlays for £850 million in year 2000

from ANZ, which gave them the clear edge to become number one in the emerging

markets like Middle East and South Asia. Grindlays was operating in 13 countries of

Middle East and South Asia, offering retail and business banking services to almost 1

million customers. It has a strong presence in Africa and Latin America as well.

THE SCB BRAND

In Pakistan also, it is one of the largest Foreign Banks with a powerful brand name. SCB

is a bank with a history dating back some 140 years in the sub-continent region. It is the

oldest bank operating in Pakistan, having established a very strong presence in this area.

The SCB name is well liked and trusted which helps in creating a lot of goodwill and a

loyal customer base. As far as NWFP is concerned, the SCB brand is the most powerful

and distinguished name in the region’s banking sector.

MARKET SHARE IN PAKISTAN

As a benefit of its long history and prestigious name, SCG possesses a strong market

share in Pakistan. The progressive and innovative Consumer Banking structure of the

bank, which offers a broad range of products and services to customers under one roof,

strengthens this position. Another perk that the Bank offers its customers is non-stop

banking operation from nine to five. All services, products and operations are available

during this time span.

CREDIT CARD MARKET

Another achievement of SCG is its prowess in the credit card market. SCG is the largest

issuer of credit cards in this region with a market share of above 40%. Furthermore, the

credit card business of the bank accounts for 40% of the Consumer Banking revenue.

SCG is the only bank in the region that offers both Visa and MasterCard. In terms of

global penetration, SCG has over 6 million cards in use.

AGENT FOR ASIAN DEVELOPMENT BANK.

SCG has had the honor and privilege of being appointed as Agent for Asian Development

Bank. It has the facility of $150 billion to finance the needs of local export business

although still small by American or European standards; the debt capital market in Asia is

starting to develop. By combining its strength in syndication with the growing fixed

income transaction flows, Standard Chartered made more than $50 million in revenue in

the year 2001, arranging more syndicated loans in Asia than anyone else.

LARGEST NETWORK IN PAKISTAN

SCG has so far the largest network of branches amongst local as well as foreign banks.

The bank is represented in all four provinces of the country.

RISK MANAGEMENT

Many of the newer banks have no provisions in their portfolios for bad debts, which

might not appear important at present but in a period of say three to four years, when loan

recovery starts this shortcoming in the portfolio could become a serious threat to

earnings. SCG on the other hand has always been prudent when hedging against risks and

believes in keeping adequate provisions for bad debts. It has increased its provision for

bad debts and cut down on advances to take effective steps against probable frauds and

bankruptcies of clients.

PRESENTATION

Appearances make a big impression on customers as well investors and employees.

Keeping this in mind, the SCG building has been renovated and redone to give an

impressive and posh look. The interior of the bank premises speaks of modernity and

good taste, which is in line with the perceived image of the bank. The SCG building is

located in a clean and peaceful locality in Peshawar. Employees dress very

professionally, keeping the strict dress code in mind. Such a work force creates a modern,

charged and comfortable environment inside the bank.

CORPORATE BUSINESS

The Cash Management section at SCB is a new concept in Corporate Banking. Corporate

business in NWFP region is very poorly facilitated and SCB has been trying to introduce

new products and services to serve it better. The bank offers corporations financial advice

on utilizing their surplus cash. Through their efforts, SCB has landed the account of many

large organizations, the largest of which is United Nations. SCB also assists humanitarian

organizations and aid agencies in Afghanistan through its Development Organization

team and is on standby to deal with their requests.

CENTRALIZATION

Due to centralization the operating expense is continuously decreasing since 2000. The

cost income ratio has improved to 54%.

5.2 WEAKNESSES

“A skill or capability that does not enable an organization to grow”

Data Conversion CostThe policy of the Bank is to have the same software through out the world and the

branches are to give the same look. Doing that is indeed a very expansive affair.

Poaching For Senior Executives

There is a trend of poaching for senior executives of the banks by competitors in the

financial markets. To safeguard against that Standard Chartered is paying a very high

compensations executives

Recruitment and Training Issues

• The first thing one notices on walking into the bank is the lack of female

employees. At present the bank employs two female personnel, all the rest being male.

This does not fit well with the neoteric and international image of the bank, giving out the

negative impression that the bank policy might be discriminatory, when it comes to

human resource utilization.

• For a multi-national bank with such a posh and expensive image in Pakistan, the

compensation package offered to employees is very disappointing. Salaries at the

Peshawar branch are low and so are the fringe benefits offered, which are not

satisfactory. Being a flat organization there isn’t much room for promotion of employees

to better positions, which means that they should be adequately compensated by other

means.

• Although the employees are young and eager with good degrees from colleges,

they lack proper training to help them execute their duties. SCG, atleast at the Peshawar

branch, does not seem to invest much in training and capacity building of employees.

Most employees seem to work on autopilot without really comprehending the nature of

banking or seeing a clear direction for their future progress. According to a number of

these personnel, their jobs are dull and routine.

• From personal observation it seems that everyone at the bank seems to be

working for his or her benefit alone, lacking team spirit all together. The bank lacks a

feeling of community spirit and employees do not see themselves as a part of a bigger

whole. Departments, which are not headed by the branch manager, do not seem to blend

in with the rest of the structure at the branch. Such departments seem to be second to

other departments of the bank and they might sometimes be given the stepmother

treatment by the branch head.

MANAGEMENT

SCG has recently been centralized to make it more cost effective and efficient. Flattening

the organization and cutting down staff might have its perks but it seems to be doing

more harm than good. Communication between the banks has been poorly affected and

quality of customer services offered has gone down. The Officers in the network

branches are not involved in the operations of the bank, making processes lengthier as a

result. 7Risk has also increased due to on-line banking. As a result of the of work force,

the remaining staff at the bank seems to be over burdened, especially during peak

banking hours.

INTERNSHIP PROGRAMS

Internships programs are a new trend in our part of the world, helping to train and prepare

students better for the professional world. It is a process that is not only of benefit to

students but to organizations as well, which will have a better-equipped work pool to

choose from. Although banks in Peshawar take interns for training, yet most of them have

not taken the trouble to develop a proper training program for the interns. SCG also falls

into the category of such banks that do not take trouble with their interns. Interns are not

taken seriously enough and are at times left to their own devices, leaving them with a

vague understanding of the banking process at the end of the internship period.8

Bank Building

Although nicely set up and decorated, the bank building needs to be expanded further. It

is a bit cramped at the moment.

5.3 OPPORTUNITIES

“An area in the organization that, if exploited, may generate high performance”

EMERGING MARKETS

Standard Chartered saw an opportunity to invest and expand in the emerging markets,

from which the traditional banks were a bit shy. To become number one in the Middle

East and South Asia they acquired Grindlays and the associated private banking business

7 Certo, Samuel. C. (1997). Modern Management, New York: Prentice Hall International, Inc. p. 232.

8 Source:www.standardchartered.com.pk/internships

for US $ 1.34 billion. Similarly to become number one in Hong Kong they acquired

Chase Hong Kong consumer banking operations for USD $ 1.32 billion. And sold their

chartered trust for £ 627 million in UK where the market was already saturated. Standard

Chartered Bank purchased PT Bank Ball, Indonesia’s third largest private bank in 1999,

thus becoming number one foreign bank in that country. Standard Chartered is

considering expansion in the Far East by wanting to acquire retail bank in Taiwan and a

consumer debt portfolio in Korea.

GLOBAL MARKET

• The greatest opportunity for the business sector that has manifested itself in

present times is of course, the development of the Afghan nation. A peaceful and

developed Afghanistan will present tremendous opportunities for businesses of all sorts.

Peshawar, due to its strategic geographic position will no doubt play a crucial role in this

economic development, making it an ideal spot for banks to invest in. NWFP is the place

where the majority of purchases for the Afghan reconstruction are made, meaning that a

lot of capital is being circulated in the region. A bank like SCG has the experience and

resources to take full advantage of an opportunity of this magnitude. Also, SCG can

venture out to be one of the first banks to be established in the post war Afghanistan.

• The substantial fall in US dollar interest rates provides an important opportunity

for banks to increase their revenue.

Trade Globalization

• Another opportunity that the Afghanistan situation presents is the probable

development of a trade route to Central Asia through Afghanistan, if peace prevails there.

This will present an even bigger opportunity for banks to generate business, as a lot of

cash will be passing their way. Traders will need banks to do business.

• Other than the Afghan market, growth is expected in Asian markets all over, with

China leading the way. With increased global trading and the World Trade Organization

regulations coming into effect the volume of business in Asia will increase.

MARKET GROWTH

• Strong growth is also expected in high yield products, credit cards and wealth

management. Credit cards business has immense growth potential. The proportions of

affluent families are growing rapidly in Pakistan. Low levels of debt and low usage of

cards characterize this part of the population. This means there is still a lot of room left

for doing business and a large segment of the market is still uncaptured as far as credit

cards are concerned.

• With the globalization of the world, large numbers of Asian students are going

abroad to study or to work. This is also true in Pakistan where every year hundreds of

students leave for foreign countries to study. To take advantage of this development, SCB

should concentrate on developing products and services, which will be especially

beneficial to traveling students, taking advantage of this relatively new market segment.

A lending program can also be developed for students going abroad for higher studies.

• Over the last few years people have realized that they are working in an

environment of constant fluctuation and change and uncertainty about the future. Those

people, who have created wealth, are starting to try and ensure some certainty for their

children and their families. That's why the trust and estate planning business has started

growing rapidly in Asia. SCB has already started to grow its trust business and is placing

experts on grounds where this business is greatly in demand.

• Statistics show that four in five of Asia's wealthiest families currently don't use

private banks. That suggests that the market is still relatively fragmented. The Asian

clients SCB knows and has banked with trust SCB and that is where it has the capacity to

grow quickly. SCB has an unrivalled market opportunity.

• Standard Chartered is currently bidding for a controlling stake in the Bank Central

Asia in Indonesia. Bank Central Asia is one of Indonesia’s leading banks with a robust

financial performance. It has a primary retail customer base with limited exposure to the

corporate sector. It has 800 branches, 2,200 ATMs and it is the heart of the Indonesian

payment system.

Should Standard Chartered win this bid, Bank Central Asia will operate as a stand alone

strategic investment.

POLITICAL/LEGAL ENVIRONMENT

An amendment made in the State Bank of Pakistan (SBP) Act in 1997, debars any

governmental or quasi governmental body or agency from issuing directly or indirectly to

any banking company or any other financial institution regulated by the State Bank of

Pakistan, which is inconsistent with the policies and regulations issued by the bank, or

any other law in force. The present government has through an ordinance approved on

September 2, 2002 re-enforced this law. This amendment was designated to protect the

banker from pressures they have been subjected to in the past for financing populist

schemes with doubtful economic justifications. The SBP has also been assured its

autonomy in determining the extent of government borrowing from the commercial

banks. The substantially enhanced authority and autonomy of SBP would greatly

facilitate the realization of high growth targets for the economy in a milieu characterized

by internal and external stability.

FUTURE OUTLOOK

With prospects of an improvement in the operational side as well as hope that industrial

growth will pick up, banking is looking at a bright future in the country. Steps are being

taken to improve financial infrastructure in the country and the steadily growing economy

will create a more dynamic role for bank policies. Human resource is adequately placed

to assume its role in this reform process. Although there are concerns in certain areas, it is

felt that the outlook for the sector is positive. Another major development has been that

foreign banks, especially the major players, Citibank, ABN-Amro and Standard

Chartered Bank, have repositioned themselves and their business is growing. Different

banks have taken different postures. The focus of major foreign banks has shifted to

consumer banking. With the State Bank being supportive of their efforts, the foreign

banks are looking for more; whether it is corporate financing, credit cards or mortgage

financing.

5.4 Threats

Where opportunities exist threats are also not far behind. “An area in the environment

that increases the difficulty of an organizations achieving high performance”

THREATS OF SUBSTITUTIONS

The threat of substitution is always there as any business, which can attract the money of

the bank customer, is a threat, especially the government bonds.

In UK all the major retail banks are aggressively promoting Internet banking. Some are

using the Internet as one of many distribution channels for a variety of products and

services; other have created new internet-only banks, thereby taking advantage of lower

market entry costs to capture new customers and gain an early share of a very large

personal banking market.

THREATS OF ENTRY

The market for personal banking services, which began with the arrival of telephone

banking and the development of call centers, is now being engulfed by the Internet

banking. Consolidation, in the form of mergers and acquisition, has been a future of the

banking market since 1994, as large companies have sought to gain economies of scale

and improved distribution. Paradoxically, as the major banking and financial services

groups increase in size, they face new competition from more flexible and often smaller

new entrants. As a result the battle is now the traditional banks, which offer multi channel

access, and a new breed of ‘pure –play’ banks offering internet –only services. Today the

main threat of entry is low but the bigger threat is of mergers, acquisitions and aggressive

takeovers. The recent trend of expansion in banking industry has made all banks

vulnerable to such threats even the larger banks are now at an alert.

BARGAINING POWER OF CUSTOMERS

The recent economic boom in Europe and UK has created a new class of millionaires due

to drastic increases in the share market. These potential customers have indeed a great

bargaining power over the banks.

GLOBAL RECESSION

Economy is one of the major external factors influencing the existence and functioning of

a business entity. The economic situation in the year 2002 was pretty dark. With global

recession, the September 11 events and War on Terrorism, the business sector scenario

was bleak. Trade slowed down and oil prices fell. There was uncertainty in global

markets and consumer confidence was badly hurt. Due to such calamities business at

banks also slowed down and the rate of bad debts went up, as many businessmen went

bankrupt. Even today, in the year 2004, the world is still not out of the danger zone as far

as the economic recession is concerned and the business sector might take a long time in

getting back on its feet.

ECONOMIC ENVIRONMENT IN PAKISTAN

The recent mushrooming of banks in the country could have become a boon if the growth

in the economy had been proportional. Unfortunately the growth in the industry has been

slow and hence banks have had to fight for customers. With the economy so far not

showing any substantial and fundamental improvement and with retardation in industrial

growth, banks should not be looking at a significant growth in the short term.9

In times of slow economic activity and high inflation as is the case with Pakistan, the

financial sector as a whole is likely to experience depression with shrinking interest

margins and troubled assets because of bad debts. Though the commercial banks in the

private sector have so far given a satisfactory performance since their inception,

registering an overall growth in the deposit base and profits and are maintaining healthy

9 Farooqi, Shakeel. (1999). Glossary Banking and Finance. Pakistan: State Bank of Pakistan. p.788.

credit portfolios, the question that needs to be answered is about future profitability of the

industry in times of intense competition for chasing cheap deposits and risk worthy

borrowers. Deposits are becoming increasingly expensive and lending rates, with or

without a cap on them, cannot be raised by banks beyond a certain limit. Blue chip

clients, who constitute the major portion of most of the banks' borrowers, do not pay

beyond a certain level of interest and hence banks are facing a tight squeeze.

Political Environment

As everyone knows, the political environment in Pakistan has hardly ever been stable,

which is one of the reasons investors have stayed away from this region. With a feeling

of uncertainty in the air, no one is sure yet of how the future will turn out to be for the

business and financial sectors.

The growing resentment of Muslims towards western nations and the rise of terrorism in

the country is a very bad omen for western banks such as Standard Chartered Grindlays.

Western banks are a very likely target for terrorist attacks. The risk to the safety and

security of such banks existing in Pakistan has increased manifolds since the September

11 events.

Standard Chartered Grindlays also offers mortgage services to its clients. However, there

are still hurdles that limit the scope of mortgage financing. The legal system has been a

big handicap especially for recovery of debts.

A major problem is now the legal title to property. A very small portion of the property in

a city like Karachi has legal titles. The PBA president estimates that 90 per cent of the

high-rise buildings have been built illegally and they do not have any permission. It is a

big chunk of the property, which the banks cannot support. The State has to encourage

mortgage financing by changing the laws, if it wants to encourage the people to buy and

to build houses. If there is no legal title, it becomes difficult for the banks to take up

proper mortgage and to lend against them. The government should look into this and

expedite it.

COMPETITION

One of the biggest threat SCB faces is competition from both local as well as foreign

banks. So far SCB has been the market leader in the banking sector of NWFP, but with

the arrival of Citibank in the region all that might change. There are many foreign banks

operating in the country like ABN AMRO, American Express Bank, Bank of America,

Banque Indosuez, Citibank, Deutsche Bank, Doha Bank, Emirates Bank, Al-Mashriq

Bank, Hong Kong & Shanghai Banking Corporation, Standard Chartered Bank, Rupali

Bank, Societe Generale, IFIC Bank and Habib Bank AG and a few others. SCG faces

tough competition from such foreign banks, especially big names like ABN AMRO,

American Express and Citibank.

Moreover the local banks are also there to compete with and their situation might

improve a lot with privatization. The nationalized banks have the lions share and along

with ABL and MCB account for about 80 per cent of the national deposit base, whereas

foreign banks have only 15% of deposits and 16% of advances. A few Arab bankers have

already bought a few banks in Pakistan and others are gauging the prospects with an aim

to earn good profit from the country’s fast developing capital and money markets.

Pakistani’s share a religious bond with the Arabs, which is why they love the Arabs and

prefer them to western nations. Arab banks are very keen on establishing Islamic Banking

as the banking of first choice, offering a one-stop shop for innovative value added

products and services to customers within the bounds of the Shariah. This makes Arab

banks more acceptable and appealing to citizens living in a Muslim country such as

Pakistan. With growing hostilities among the masses towards western nations, western

banks might suffer a boycott from many of their customers who will prefer to take their

money to Muslim owned banks.

Despite a stagnant deposit base in the past two years, bankers say nationalized and

private commercial banks in Pakistan have increased the market share at the expense of

foreign banks, because of the latter's reliance on foreign currency accounts, before the

freeze in May 1998.

MODARABAS

Modarabas are the most regulated financial sector with several restrictions to the source

of their funds and controls over payoff timetables as well. Strict regulations implemented

by the State Bank of Pakistan and the Corporate Law Authority have contributed

substantially to dampening the future prospects for this financial instrument, introduced

by the Pakistan government in the early eighties. It does not hold as much promise as it

once did.

Historically Modarabas possess the best performing financial sector stocks but without

the financial backing or access to regular funding lines from Islamic banks they are

finding it difficult to sustain earnings growth and operating income momentum. There

does not appear to be too much scope for this mode of "Islamic financing" in Pakistan

where commercial banks are already fighting for breathing space. Unless there is some

kind of improvement in the environment, Modarabas appear to be headed towards

extinction. This is bad news for the First Grindlays Modaraba, a subsidiary of the SCB.

STATE BANK

Volumes in inter-bank foreign exchange market have almost halved in the past two years

for several reasons. One of these reasons is that the State Bank refrains all banks from

transacting any foreign exchange deal not backed by a commercial transaction. Another

is that SBP has been buying huge amounts of dollars from the open market besides

directing some corporates to buy foreign exchange from kerb only recently. If the State

Bank allowed banks to make forex deals not backed by commercial transactions it would

create depth in the inter-bank market. If SBP buying practice from the open market were

allowed to go on it would create an irreversible distortion in the financial sector. By

allowing corporates to buy foreign exchange from the open market instead of the inter-

bank market, the State Bank is creating a bad precedence. If SBP stopped dollar buying

from the kerb it would eventually lead to larger inflows of foreign exchange in the inter-

bank market. Whereas the foreign bankers readily accepted this argument in their

meetings with a four member IMF technical mission, the local bankers have termed it

naive when it came under discussions with them. Foreign bankers informed the mission

that even after lifting a cap on the inter-bank exchange rate SBP continues to issue verbal

instructions to individual banks if the rates go past a certain level.

Chapter 6

RECOMMENDATIONS

Standard Chartered Grindlays is doing pretty well in the market and has always been

ahead of competition in NWFP. However, there is always room for improvement no

matter how perfect the system of the organization. This recommendation is given to help

SCB improve upon the existing systems and facilities and has also take into account the

observations of people other than the bank employees.

1. The first thing that SCB needs to do is to prepare for the tough competition

impending, especially the arrival of a formidable competitor such as Citibank. SCB at

Peshawar needs to increase its advertising budget and be creative and diligent in

promoting its brand. It should start putting up billboard signs; advertise in electronic

and print media. Another way of promotion is to get more involved in community

welfare projects. SCB already had a strong market position and a popular brand in the

country. Local banks and other foreign banks entering the market are relatively new

compared to the long history the SCB. SCB can capitalize on this edge and further

strengthen its position. It should become fiercely competitive and strengthen its

market position further. The bottom line is that SCB should no longer take its

superior position and image in the market for granted because soon new and better

will be appearing in NWFP. It must vigorously market itself and introduce new

products to stay at top.

2. Citizens of an Islamic country such as Pakistan want the banking system to conform

to the Shariah Arab banks are gaining in popularity due to their expertise to Islamic

Banking. To combat this competition, SCB should develop a range of products which

would be compatible with Islamic Banking tenants and which might attract the

religious minded faction of society to bank with them. Besides the wide range of

current accounts, Riba free term deposits, just like some Arab origin banks have

introduced, have also been started at SCB

3. As the focus shifted to the rupee banking, the issue of branch network and contestable

markets became increasingly important. Foreign banks need to forge alliances with

their local peers and corporate to boost their business like Citibank, which has sold its

investment bank to a local brokerage house to focus on its main line of business.

4. The global recession has already robbed the masses of their earning and savings to a

substantial degree. People cannot afford to be careless with their money and they will

opt for the best investment opportunity they can get. If banks offer interest rates that

are too low, people will take their money and invest in more profitable assets such as

real estate.

With competition heightening all around it, SCB should take care that it doesn’t lose

its customers to banks, which offer them higher profit on their deposits. SCB needs to

bring its profit rates at par with the rates prevailing in the market or customers will

feel deprived and they will take their business to other banks.

5. Motivation of the work force is very important for any sort of organization. If the

employees feel neglected and insecure in their jobs it will affect the quality of their

work and employee turnover rate might rise. SCB is a very flat organization with

little room for promotion of employees. Although the staff there is young and

energetic, it lacks proper training and motivation. The salaries of the junior staff at the

bank are lower. Annual bonuses are given out to deserving employees but it takes a

long time for employee to receive credit that is due.

6. Learning by trial and error is a very expensive and time-consuming exercise, which is

why extensive training is a must for employees. Although the work forces at the bank

are mostly young and academically qualified, it could still do with some training.

Standard Chartered is a large organization with an international network. Employees

from more developed countries like Europe and US should be asked to pay visits to

developing countries such as Pakistan and hold workshops and training programs for

the employees here. Specialists, both national and international should be brought to

train the staff. This should become a regular exercise, repeated as often as feasible for

the bank. This way employee at the local branches of the bank will gain an

international perspective on the organization they work for and they will benefit a

great deal from the experiences and knowledge of employees from foreign branches.

7. Job rotations and transfers could help keep the employees from getting bored with their

jobs and also serve as a training tool. The best and most deserving employees of the

bank should get a chance to travel abroad and gain some experience working in

foreign branches of the bank. Others could be rotated within the country or even

within the branch. This strategy can be used not only to train employees but also as a

reward for good work. The prospect of being transferred abroad or locally for a

period of time might motivate the personnel to work harder at their jobs. Travel could

become a part of the compensation on package for employees at the bank.

8. The bank should be more participatory and team oriented. Departments and

employees should not be alienated from each other. All employees need to feel that

they are part of one whole and they need to work as a group rather in isolation to

move the organization forwards. Employees need to understand that their personal

goals and those of the organization should match so that when they work to make the

organization a success they will know that they are also pushing their own goals

forwards.

9. One expects a bank like SCB to be more professional and better organized than other

banks in the region. But it when it comes to interns, the bank is as irresponsible as its

competitors. There is a lack of a proper internship program and interns are trained in

very discouraging manner way. They are not taken seriously enough and are often

neglected or given menial tasks just to get them out of the way and keep them busy.

This is a very wrong of attitude for a professional bank like SCB to adopt. It needs to

develop a proper and standard training program for interns and make sure that the

trainees get a thorough understanding of the bank and its functions. A proper schedule

needs to be developed and a trainer should be appointed to carry out the training

program.

10. Due to the flat structure of the bank there is a lot of works load on each employee,

specially the junior staff. Usually, the CRO’s job is related with operations and

customers relations. But here in SCB they are also given targets to bring in new

accounts. Due to this they cannot attend the customers properly. Also their work is

sometime delayed which causes the dissatisfaction among customers.

11. Centralization customers are facing problems. The head office is in Karachi and every

thing gets approved and comes from there. Before centralization, the account would

be opened immediately and check books given on the spot. But now it takes at least

two days for an account to start functioning and the check takes 5 to 6 days. Lending

also takes 4 to 5 days. It is recommended that steps should be taken to overcome this

time delay. Some authority must be given to the branches.

12. Customers also complain about long queues. To avoid this the following step

could be taken:

Tellers, The number of tellers should be increased.

Electronic Waiting Token Facility, Token facility should be introduced for

the convenience of the customers and proper management.

13. The ATM machine is usually down. Steps should be taken to make it work

efficiently. Although the customers have increased access to ATM’s as they can

also use MCB’s (Muslim Commercial Bank) system, but they are charged Rs.40 per

transaction. So, the bank being such a reputed and large foreign bank should

increase the number of its own ATM machines.

ATM cards are usually trapped in the machines and the customers are asked to

come the next day to pick them. The ATM cards should be given back to the

customers on the spot, as it is not a difficult or a time consuming task. It gives a lot

of trouble to the customers.

14. Debit Cards should be introduced, as there are no interest charges on it as is in the

case of the credit cards. It can also help increase the customers and give it an edge

over other foreign banks.

15 Locker charges are very high due to which half of the bank’s lockers are unsold.

16. SCG needs to expand its building at the Peshawar branch to be more

accommodating and comfortable. At present it is getting a bit cramped. Business is

expected to grow in the future and the bank needs to expand its space to

accommodate additional customers and business. An additional floor needs to be

built on the bank, which would make it more spacious and comfortable. This will

become a priority in the future, when new services like priority –banking etc are

introduced at the Peshawar branch and existing business of the bank like credit

cards and wholesale banking increase to new levels. The staff occupies the available

space and no space is left for the customers. It is recommended that there should be

a separate parking for the staff as well as for the customers properly demarcated

with proper security measures. The environment of the bank for the handicapped

customers, where the step in the entrance and the wax-polished floor is unfriendly

for the special people. Otherwise the decor is well and is pleasing to the eye.

17. Mortgage one; an innovative product that allows customers to offset the interest

earned on the current accounts against the interest on their mortgage should be

introduced. It has been launched in other countries of the region and has gained a

strong market share and accounts for more than 40% of new sales.

BIBLIOGRAPHY

1. Kolter, P. (1997). Marketing Management. New Jersey: Prentice Hall. p.97

2. Nasir, Saeed. M. (1999). Banking Currency and Finance. Faisalabad: Kitab Markaz. p.52

3. Farooqi, Shakeel. (1999). Glossary Banking and Finance. Pakistan: State Bank of Pakistan. p.788.

4. Farooqi, Shakeel. (1999). Glossary Banking and Finance, Pakistan: State Bank of Pakistan. p.564.

5. Shukla, M. C. (1995). Business Organization and Management, New Delhi: S.Ccand and Company Ltd. p.368

6. Certo, Samuel. C. (1997). Modern Management, New York: Prentice Hall International, Inc. p. 232.

7. Sekran, U. (2000). Research Methods of Business”. USA: John Wiley & Sons, Inc. p.423.