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CARDS ISSUED BY
DIFFERENT BANKS
BUSINESS STUDIES PROJECT
10/2/2010
NAVEED KARIM BAKSH
XI-B
To
1 ACKNOWLEDGEMENT 3
2 LIST OF FIGURES 4
3 LIST OF TABLES 5
4 INTRODUCTION 6
5 OBJECTIVES 7
6 METHADOLOGY 8
7 BACKGROUND INFORMATION 9
8 SURVEY 16
●QUESTIONNAIRE 1 6-17
9 ANALYSIS 18-24
10 CONCLUSION 25
2
ACKNOWLEDGEMENT
3
LIST OF FIGURES
4 BANKS 21
7 INCREASE IN EXPENDITURES 24
4
LIST OF TABLES
4 BANKS 21
7 INCREASE IN EXPENDITURES 24
5
INTRODUCTION
allows its holder to buy goods and services based on the holder's promise to pay for
these goods and services. The issuer of the card creates a revolving account and
grants a line of credit to the consumer (or the user) from which the user can borrow
A credit card is different from a charge card: a charge card requires the balance to
be paid in full each month. In contrast, credit cards allow the consumers a
continuing balance of debt, subject to interest being charged. Most credit cards are
issued by banks or credit unions, and are the shape and size specified by the
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Objectives:
1. To find the popularity of credit cards in Bahrain.
2. To know the history of credit cards.
3. To know about different types of credit cards.
4. To know about the functions of different Banks.
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Methodology:
1. Collection of Primary and Secondary data’s.
a) Primary data will be collected from different
people with the help of a structured
questionnaire.
b) Secondary data will be collected from the
internet.
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Background Information:
History of credit cards:
Credit was first used in Assyria, Babylon and Egypt 3000 years
ago. The bill of exchange – the forerunner of banknotes – was
established in the 14th century. Debts were settled by one-third
cash and two-thirds bill of exchange. Paper money followed only
in the 17th century.
From the 18th century until the early part of the 20th, tallymen
sold clothes in return for small weekly payments. They were
called ―tallymen‖ because they kept a record or tally of what
people had bought on a wooden stick. One side of the stick was
marked with notches to represent the amount of debt and the
other side was a record of payments. In the 1920s, a shopper’s
plate – a ―buy now, pay later‖ system – was introduced in the
USA. It could only be used in the shops which issued it.
The first use of magnetic stripes on cards was in the early 1960′s,
when the London Transit Authority installed a magnetic stripe
system. San Francisco Bay Area Rapid Transit installed a paper
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based ticket the same size as the credit cards in the late 1960′s.
3. Charge Cards:
Charge cards do not have a credit limit. The balance on a charge
card must be paid in full at the end of each month. Charge cards
typically do not have a finance charge or minimum payment since the
balance is to be paid in full. Late payments are subject to a fee,
charge restrictions, or card cancellation depending on your card
agreement.
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are examples of limited purpose credit cards.
ABOUT BANKS:
1. BISB
Bahrain Islamic Bank (BisB) was established in 1979 as the first
Islamic commercial bank in the Kingdom of Bahrain. The authorized
capital is BD 100 million and paid up capital is BD 66.235 million.
Since its inception, BisB has recorded a steady growth. At the end of
2008, the shareholders’ funds reached nearly BD 166 million Bahraini
Dinars, with assets in excess of BD 874 million.
The Bank had recently launched its new identity with the core
objective of radiating its new and fresh mandate of exceeding
expectations, both from an aspirational and a functional perspective.
The Bank has been maintaining its leading position in the Islamic
banking sector through adopting innovative Islamic investment and
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financing products, supported by superior retail and corporate
banking services. The Bank is listed on the Bahrain Stock Exchange.
The major shareholders are leading local and regional financial
institutions. The Bank operates under supervision and the regulatory
framework of the Central Bank of Bahrain.
2. ICICI
ICICI Bank (formerly Industrial Credit and Investment Corporation of
India) is a major banking and financial services organization in India.
It is the second largest bank in India and the largest private sector
bank in India by market capitalization. The bank also has a network of
2,016 branches (as on 31 March 2010) and about 5,219 ATMs in
India and presence in 18 countries, as well as some 24 million
customers (at the end of July 2007). ICICI Bank offers a wide range
of banking products and financial services to corporate and retail
customers through a variety of delivery channels and specialization
subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management. (These
data are dynamic.) ICICI Bank is also the largest issuer of credit
cards in India.ICICI Bank's shares are listed on the stock exchanges
at BSE, NSE, Kolkata and Vadodara ; its ADRs trade on the New
York Stock Exchange (NYSE).
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population in particular.
ICICI Bank is one of the Big Four Banks of India, along with State
Bank of India, Axis Bank and HDFC Bank — its main competitors.
3. NBK
NBK set up in Bahrain in 1987 as an offshore bank to provide
treasury and wholesale banking services to customers. In 2003, the
bank obtained a commercial banking license to widen its offering and
customer base. Today, NBK Bahrain offers full commercial banking
services across a broad spectrum of areas including trade, contractor
and corporate financing, treasury and retail. It has fully dedicated
relationship managers trained to tailor solutions that meet customers’
needs. NBK Bahrain works as well closely with its counterparts within
NBK’s network of branches and subsidiaries to support customers
with their cross-border transactions and global investment needs.
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incorporated in 2009 to form Legal and General Gulf. Overall, the
AUB Group, through its subsidiaries and associates, operates
through a network of 130 branch offices and employs over 3,200
people.
5. HSBC
Headquartered in London, HSBC is one of the largest banking and
financial services organizations in the world. HSBC's international
network comprises around 8,000 offices in 87 countries and
territories in Europe, the Asia-Pacific region, the Americas, the
Middle East and Africa.
With listings on the London, Hong Kong, New York, Paris and
Bermuda stock exchanges, shares in HSBC Holdings plc are held by
around 220,000 shareholders in 119 countries and territories. The
shares are traded on the New York Stock Exchange in the form of
American Depositary Receipts.
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personal, helpful and responsive manner. Central to this service
philosophy is the professional consultative approach we take with
each customer. By getting to know them better, we can identify their
needs and match them with quality products which suit them best.
The bank derives more than 90 per cent of its operating income and
profits from Asia, Africa and the Middle East, with balanced income
derived from both Wholesale and Consumer Banking. The group is
committed to building a sustainable business over the long term and
is trusted worldwide for upholding high standards.
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SURVEY
The survey for this project has been conducted among 20 sample
QUESTIONNAIRE:
a) 1.
b) 2.
c) 3.
d) More than 3.
2. What can you say about the credit card Interest rates?
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a) Same as usual.
b) Don’t know.
c) Often it is more.
d) Often it is less.
3. Would you give your teenage child their own credit card?
a) Yes.
c) No way!
d) Not sure.
4. What is the name of the bank that issued your credit card ?
a) Yes.
b) No.
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Analysis
1 15 75%
2 3 15%
3 2 10%
more than
3 0 0%
10%
15%
75%
1 2 3
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2.What can you say about the credit card Interest rates?
NO. OF RESPONDENTS
30%
60%
10%
This shows that about 60% of the people think that the
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3.Would you give your teenage child their own credit card?
15% NO
45%
This shows that about 45% of the parents agree to give their credit cards
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4.What is the name of the bank that issued your credit card?
FIG.11.4 BANKS
NO. OF RESPONDENTS
5%
8%
8%
25%
7%
20%
10%
17%
HSBC OTHER
ICICI NBK
STANDARD CHARTERED BANK SHAMIL BANK OF BAHRAIN
BISB AL AHLI UNITED BANK
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5.Which companies credit cards do you mostly use?
15%
VISA
MASTERCARD
85%
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6.What credit card types do you use?
(gold,platinum,silver,classic)
5%
20% PLATINUM
45% GOLD
SILVER
CLASSIC
30%
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7.After taking credit cards is there any increase in your
expenditure?
INCREASE IN EXPENDITURES
40%
YES
NO
60%
This shows that about 60% of the people say that their expenditures has
increased after taking credit cards while 40% disagree.
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CONCLUSION
After analyzing the surveys we find that most of
the people (i.e. 75%) have only 1 credit card.
About 60% of the people agree that the interest
rates put on credit cards is same as usual,30%
think that it is often less while 10% say that it is
often more.
About 45% of the parents say that they will be
willing to give their teen child their own credit card,
while 30% disagree about that. Some say that
they are willing to give but 1 that is under their
control.
HSBC bank is the major credit card issuer in
Bahrain according to the survey.
About 45% of the people use classic credit card
types and 30% of the people use silver classic
card types which are among the major credit card
types use by the people.
About 60% of the people agree that there is an
increase in their expenditures after issuing the
credit card while 40% of them disagree.
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