Report

Final Report of Summer Training
In
Topic
Investment Strategies
of General Public
&
Comparative Analysis of
Mutual Funds and ULIPs
By
Ashish Chatrath
PGDM- (07-09)
FT-07-529
Institute for Integrated Learning in Management

Graduate School of Management
16, Knowledge Park-11,
Greater Noida - 201306
1
Table of Contents
Sr. No. Topic Page No.

1. Acknowledgement 3
2. Synopsis 4
3. Banking in India 5
4. Challenges faced by Banking Industry 14
5. Strategic Options to cope with the Challenges 16
6. List of Banks in India 18
7. Fact File of Banks in India 24
8. Company Profile(Worldwide) 25
9. Company Profile(India) 32
10. SWOT Analysis 38
11. Problem Statement & Objective 40
12. Investment Strategies of General Public 41
13. Data Collection and Research 41
14. Investment Strategy Questionnaire 42
15. Data Profile 43
16. Findings of The Research 47
17. Comparison of the Services and Products offered by different Banks 57
18. Products Offered by Standard Chartered Bank 62
19. Mutual Funds 71
20. Concept 71
21. How Mutual Funds Work 73
22. Frequently used Terms with Mutual Funds 73
23. Return 74
24. Risk 75
25. Types of Mutual Funds 78
26. Advantages of Mutual Funds 83
27. Disadvantages of Mutual Funds 88
28. Standard Chartered Mutual Fund 92
29. Unit Linked Insurance Plan 93
30. Features of ULIP 95
31. Latest IRDA Guidelines for ULIPs 96
32. Guideline to Select The Right ULIP 98
33. Life Insurance Products at Standard Chartered 101
34. Comparative Analysis of Mutual Funds and ULIP 104
2
Acknowledgment
I want to place on record my gratitude to the

organization and its people whose generous help and
support enabled me to complete this project within the
stipulated time period.
My special thanks to Mr. Nitish Diapnkar, Area Sales

Manager, Standard Chartered Bank Limited, Wealth
Management-Consumer Banking, New Delhi for his active
help, guidance and support in making me understand
Banking operations.
I am greatly indebted to all those people who have helped

me in some way or other in the completion of the project. I
am also grateful to the staff members of STANDARD
CHARTERED BANK for their support and co-operation
during the course of my summer training.
The Faculty of my institute deserves the praise for their

role in shaping this summer training project.
In the end, I take the responsibility for all my shortcomings.
Ashish Chatrath
3
Synopsis
In the last five decades the field of investments has

received considerable attention from academic
researchers keen on understanding issues like:
• How do people select an Investment option?

• How successful are the various strategies
followed by investment practioners?
• How much Risk do people take up while
investing?
With the coming up of large number of multinational

corporations, the competition in the investment sector
has increased tremendously. Today, an investor has
many investment products to choose from according
to his / her needs and preferences.
By keeping in mind all these points the analysis of

the investment pattern is done through sample survey
in this project report.
4
BANKING IN INDIA
Banking in India originated in the first decade of 18th

century with The General Bank of India coming into
existence in 1786. This was followed by Bank of
Hindustan. Both these banks are now defunct. The oldest
bank in existence in India is the State Bank of India being
established as "The Bank of Bengal" in Calcutta in June
1806. A couple of decades later, foreign banks like Credit
Lyonnais started their Calcutta operations in the 1850s. At
that point of time, Calcutta was the most active trading
port, mainly due to the trade of the British Empire, and due
to which banking activity took roots there and prospered.
The first fully Indian owned bank was the Allahabad Bank,
which was established in 1865.
By the 1900s, the market expanded with the establishment
of banks such as Punjab National Bank, in 1895 in Lahore
and Bank of India in 1906, in Mumbai- both of which were
founded under private ownership. The Reserve Bank of
India formally took on the responsibility of regulating the
Indian banking sector from 1935. After India's
independence in 1947, the Reserve Bank was nationalized
and given broader powers.
5
Structure of the Organized Banking Sector in
India
(Number of banks is in brackets.)
6
Early History:
At the end of late-18th century, there were hardly any banks in
India in the modern sense of the term. At the time of the American
Civil War, a void was created as the supply of cotton to Lancashire
stopped from the Americas. Some banks were opened at that time
which functioned as entities to finance industry, including
speculative trades in cotton. With large exposure to speculative
ventures, most of the banks opened in India during that period
could not survive and failed. The depositors lost money and lost
interest in keeping deposits with banks. Subsequently, banking in
India remained the exclusive domain of Europeans for next several
decades until the beginning of the 20th century.
(The Bank of Bengal, which later became the State Bank of India.)
At the beginning of the 20th century, Indian economy was passing

through a relative period of stability. Around five decades have
elapsed since the India's First war of Independence, and the social,
industrial and other infrastructure have developed. At that time
there were very small banks operated by Indians, and most of them
7
were owned and operated by particular communities. The banking
in India was controlled and dominated by the presidency banks,
namely, the Bank of Bombay, the Bank of Bengal, and the Bank of
Madras - which later on merged to form the Imperial Bank of
India, and Imperial Bank of India, upon India's independence, was
renamed the State Bank of India. There were also some exchange
banks, as also a number of Indian joint stock banks. All these
banks operated in different segments of the economy. The
presidency banks were like the central banks and discharged most
of the functions of central banks. They were established under
charters from the British East India Company. The exchange
banks, mostly owned by the Europeans, concentrated on financing
of foreign trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to compete with
the presidency banks, and the exchange banks. There was potential
for many new banks as the economy was growing. Lord Curzon
had observed then in the context of Indian banking: "In respect of
banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into
separate and cumbersome compartments."
Under these circumstances, many Indians came forward to set up

banks, and many banks were set up at that time, a number of which
have survived to the present such as Bank of India and Corporation
Bank, Indian Bank, Bank of Baroda, and Canara Bank.
8
During the Wars
The period during the First World War (1914-1918) through the
end of the Second World War (1939-1945), and two years
thereafter until the independence of India were challenging for the
Indian banking. The years of the First World War were turbulent,
and it took toll of many banks which simply collapsed despite the
Indian economy gaining indirect boost due to war-related
economic activities. At least 94 banks in India failed during the
years 1913 to 1918 as indicated in the following table:
Number of banks Authorised capital Paid-up Capital

Years
that failed (Rs. Lakhs) (Rs. Lakhs)
1913 12 274 35
1914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1
9
Post-Independence
The partition of India in 1947 had adversely impacted the
economies of Punjab and West Bengal, and banking activities had
remained paralyzed for months. India's independence marked the
end of a regime of the Laissez-faire for the Indian banking. The
Government of India initiated measures to play an active role in
the economic life of the nation, and the Industrial Policy
Resolution adopted by the government in 1948 envisaged a mixed
economy. This resulted into greater involvement of the state in
different segments of the economy including banking and finance.
The major steps to regulate banking included:
• In 1948, the Reserve Bank of India, India's central banking

authority, was nationalized, and it became an institution
owned by the Government of India.
• In 1949, the Banking Regulation Act was enacted which
empowered the Reserve Bank of India (RBI) "to regulate,
control, and inspect the banks in India."
• The Banking Regulation Act also provided that no new bank
or branch of an existing bank may be opened without a
licence from the RBI, and no two banks could have common
directors.
However, despite these provisions, control and regulations, banks

in India except the State Bank of India, continued to be owned and
operated by private persons. This changed with the nationalization
of major banks in India on 19th July, 1969.
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Nationalisation
By the 1960s, the Indian banking industry has become an
important tool to facilitate the development of the Indian economy.
At the same time, it has emerged as a large employer, and a debate
has ensued about the possibility to nationalize the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed
the intention of the GOI in the annual conference of the All India
Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalisation." The paper was received with positive
enthusiasm. Thereafter, her move was swift and sudden, and the
GOI issued an ordinance and nationalised the 14 largest
commercial banks with effect from the midnight of July 19, 1969.
Jayaprakash Narayan, a national leader of India, described the step
as a "masterstroke of political sagacity." Within two weeks of the
issue of the ordinance, the Parliament passed the Banking
Companies (Acquition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9th August, 1969.
A second dose of nationalization of 6 more commercial banks

followed in 1980. The stated reason for the nationalization was to
give the government more control of credit delivery. With the
second dose of nationalization, the GOI controlled around 91% of
the banking business of India.
After this, until the 1990s, the nationalized banks grew at a pace of
around 4%, closer to the average growth rate of the Indian
economy.
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Liberalisation
In the early 1990s the then Narsimha Rao government embarked
on a policy of liberalization and gave licenses to a small number of
private banks, which came to be known as New Generation tech-
savvy banks, which included banks such as Global Trust Bank (the
first of such new generation banks to be set up) which later
amalgamated with Oriental Bank of Commerce, UTI Bank(now re-
named as Axis Bank), ICICI Bank and HDFC Bank. This move,
along with the rapid growth in the economy of India, kick started
the banking sector in India, which has seen rapid growth with
strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the
proposed relaxation in the norms for Foreign Direct Investment,
where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%,at present it has gone
up to 49% with some restrictions.
The new policy shook the Banking sector in India completely.

Bankers, till this time, were used to the 4-6-4 method (Borrow at
4%; Lend at 6%; Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working
for traditional banks. All this led to the retail boom in India. People
not just demanded more from their banks but also received more.
Current Situation
Currently (2008), banking in India is generally fairly mature in
terms of supply, product range and reach-even though reach in
12
rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy,
Indian banks are considered to have clean, strong and transparent
balance sheets relative to other banks in comparable economies in
its region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the
Bank on the Indian Rupee is to manage volatility but without any
fixed exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for

quite some time-especially in its services sector-the demand for
banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect
M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg

Pincus to increase its stake in Kotak Mahindra Bank (a private
sector bank) to 10%. This is the first time an investor has been
allowed to hold more than 5% in a private sector bank since the
RBI announced norms in 2005 that any stake exceeding 5% in the
private sector banks would need to be vetted by them.
Currently, India has 88 scheduled commercial banks (SCBs) - 28

public sector banks (that is with the Government of India holding a
stake), 29 private banks (these do not have government stake; they
may be publicly listed and traded on stock exchanges) and 31
foreign banks. They have a combined network of over 53,000
branches and 17,000 ATMs. According to a report by ICRA
Limited, a rating agency, the public sector banks hold over 75
percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.
Challenges faced by Indian Banking

Industry
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The banking industry in India is undergoing a major
transformation due to changes in economic conditions and
continuous deregulation. These multiple changes happening one
after other has a ripple effect on a bank trying to graduate from
completely regulated sellers market to completed deregulated
customers market.

Deregulation:
This continuous deregulation has made the Banking market
extremely competitive with greater autonomy, operational
flexibility, and decontrolled interest rate and liberalized norms for
foreign exchange. The deregulation of the industry coupled with
decontrol in interest rates has led to entry of a number of players in
the banking industry. At the same time reduced corporate credit off
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take thanks to sluggish economy has resulted in large number of
competitors battling for the same pie.
New rules:
As a result, the market place has been redefined with new rules
of the game. Banks are transforming to universal banking, adding
new channels with lucrative pricing and freebees to offer. Natural
fall out of this has led to a series of innovative product offerings
catering to various customer segments, specifically retail credit.
Efficiency:
This in turn has made it necessary to look for efficiencies in the
business. Banks need to access low cost funds and simultaneously
improve the efficiency. The banks are facing pricing pressure,
squeeze on spread and have to give thrust on retail assets
Diffused Customer loyalty:

This will definitely impact Customer preferences, as they are
bound to react to the value added offerings. Customers have
become demanding and the loyalties are diffused. There are ultiple
choices, the wallet share is reduced per bank with demand on
flexibility and customization. Given the relatively low switching
costs; customer retention calls for customized service and hassle
free, flawless service delivery.

Misaligned mindset:
These changes are creating challenges, as employees are made to
adapt to changing conditions. There is resistance to change from
employees and the Seller market mindset is yet to be changed
coupled with Fear of uncertainty and Control orientation.
Acceptance of technology is slowly creeping in but the utilization
is not maximised.
Competency Gap:
15
Placing the right skill at the right place will determine success. The
competency gap needs to be addressed simultaneously otherwise
there will be missed opportunities. The focus of people will be on
doing work but not providing solutions, on escalating problems
rather than solving them and on disposing customers instead of
using the opportunity to cross sell.
Strategic Options with Banks to cope with

the Challenges
Leading players in the industry have embarked on a series of
strategic and tactical initiatives to sustain leadership. The major
initiatives include:
 Investing in state of the art technology as the back bone of

to ensure reliable service delivery
 Leveraging the branch network and sales structure to

mobilize low cost current and savings deposits
 Making aggressive forays in the retail advances segment

of home and personal loans.
 Implementing organization wide initiatives involving
people, process and technology to reduce the fixed costs
and the cost per transaction.
 Focusing on fee based income to compensate for squeezed

spread, (e.g. CMS, trade services)
 Innovating Products to capture customer ‘mind share’ to

begin with and later the wallet share.
16
Improving the asset quality as per Basel II norms
Public sector banks

SBI group:
State Bank of India, with its seven associate banks commands the
largest banking resources in India. SBI and its associate banks are:
• State Bank of India

• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of Indore
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Saurashtra
• State Bank of Travancore
17
After the amalgamation of New Bank of India with Punjab
National Bank, currently there are 20 nationalized banks in India:
• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• Indian Bank
• Indian Overseas Bank
• Oriental Bank of Commerce
• Punjab & Sind Bank
• Punjab National Bank
• Syndicate Bank
• Union Bank of India
• United Bank of India
• UCO Bank
• Vijaya Bank
Private sector banks

• Axis Bank (formerly UTI Bank)
• Bank of Rajasthan
• Bharat Overseas Bank
• Catholic Syrian Bank
• Centurion Bank of Punjab (Merged with HDFC bank)
• City Union Bank
• Development Credit Bank
• Dhanalakshmi Bank
• Federal Bank
• Kumfu Blade Bank
18
• Ganesh Bank of Kurundwad
• HDFC Bank
• ICICI Bank
• IndusInd Bank
• ING Vysya Bank
• Jammu & Kashmir Bank
• Karnataka Bank Limited
• Karur Vysya Bank
• Kotak Mahindra Bank
• Lakshmi Vilas Bank
• Lord Krishna Bank ( now Centurion Bank of Punjab)
• Nainital Bank
• Nedungadi Bank (now Punjab National Bank)
• Ratnakar Bank
• Rupee Bank
• Saraswat Bank
• SBI Commercial and International Bank
• South Indian Bank
• Tamilnad Mercantile Bank Ltd.
• Thane Janata Sahakari Bank
• Bassein Catholic Bank
• United Western Bank( now IDBI Bank)
• YES Bank
Foreign banks
• ABN AMRO Bank N.V.
• Abu Dhabi Commercial Bank Ltd
• American Express Bank
• Antwerp Diamond Bank
• Arab Bangladesh Bank
• Bank International Indonesia
• Bank of America
19
• Bank of Bahrain & Kuwait
• Bank of Ceylon
• Bank of Nova Scotia
• Bank of Tokyo Mitsubishi UFJ
• Barclays Bank
• BNP Paribas
• Calyon Bank
• ChinaTrust Commercial Bank
• Cho Hung Bank
• Citibank
• DBS Bank
• Deutsche Bank
• HSBC (Hongkong & Shanghai Banking Corporation)
• JPMorgan Chase Bank
• Krung Thai Bank
• Mashreq Bank
• Mizuho Corporate Bank
• Oman International Bank
• Société Générale
• Standard Chartered Bank
• State Bank of Mauritius
• Scotia
• Taib Bank
Total: 88 Banks.
Regional Rural Banks (RRBs)

• Adhiyaman Grama Bank
• Alaknanda Gramin Bank
• Aligarh Gramin Bank
• Avadh Gramin Bank
• Aryavart Gramin Bank
• Balasore Gramya Bank
• Ballia Kshetriya Gramin Bank
20
• Banaskantha Mehsana Gramin Bank
• Bareilly Kshetriya Gramin Bank
• Baroda Uttar Pradesh Gramin Bank
• Bijapur Grameena Bank
• Bilaspur-Raipur Kshetriya Gramin Bank
• Bolangir Anchalik Gramya Bank
• Bundelkhand Kshetriya Gramin Bank
• BundiChittorgarh KshetriyaGraminBank
• Cauvery Grameena Bank
• Chaitanya Grameena Bank
• Chambal Kshetriya Gramin Bank
• Champaran Kshetriya Gramin Bank
• Chhatrasal Gramin Bank
• ChhindwaraSeoniKshetriyaGraminBank
• Chitradurga Gramin Bank
• Cuttack Gramya Bank
• Damoh Panna Sagar Kshetriya Gramin Bank
• Devipatan Kshetriya Gramin Bank
• Dhenkanal Gramya Bank
• Dungarpur Banswara Kshetriya Gramin Bank
• Ellaquai Dehati Bank
• Farrukhabad Gramin Bank
• Gaur Gramin Bank
• Gurgaon Gramin Bank
• Hadoti Kshetriya Gramin Bank
• Himachal Gramin Bank
• Hissar-Sirsa Kshetriya Gramin Bank
• Indore Ujjain Kshetriya Gramin Bank
• Jaipur Nagaur Aanchalik Gramin Bank
• Jamnagar Rajkot Gramin Bank
• Jamuna Gramin Bank
• Jhabua-Dhar Kshetriya Gramin Bank
• Kakathiya Grameena Bank
• Kalpatharu Grameena Bank
• Kamraz Rural Bank
21
• Kanpur Kshetriya Gramin Bank
• Kapurthala Ferozpur Kshetriya Gramin Bank
• Kashi Gomti Samyut Gramin Bank
• Kisan Gramin Bank,Budaun
• Kolar Gramin Bank
• Krishna Grameena Bank
• Kshetriya Gramin Bank, Hoshangabad
• Kutch Grameen Bank
• Malaprabha Grameena Bank
• Mandla Balaghat Kshetriya Gramin Bank
• Manjira Grameena Bank
• Marwar Ganganagar Bikaner Gramin Bank (Previously :
Marwar Gramin Bank)
• Mewar Aanchalik Gramin Bank
• Nagarjuna Grameena Bank
• Netravati Grameena Bank
• Nimar Kshetriya Gramin Bank
• North Malabar Gramin Bank
• Panchmahal Vadodara Gramin Bank
• Pandyan Grama Bank
• Pinakini Grameena Bank
• Pragjyotish Gaonlia Bank
• Prathama Bank
• Raigarh Kshetriya Gramin Bank
• Rani Lakshmi Bai Kshetriya Gramin Bank
• Ratlam Mandsaur Kshetriya Gramin Bank
• Rayalaseema Grameena Bank
• Rewa-Sidhi Gramin Bank
• Sahyadri Gramin Bank
• Samyut Kshetriya Gramin Bank
• Sangameshwara Grameena Bank
• Shahjahanpur Kshetriya Gramin Bank
• Shivpuri Guna Kshetriya Gramin Bank
• South Malabar Gramin Bank
• Sree Anantha Grameena Bank
22
• Sri Saraswati Grameena Bank
• Sri Visakha Grameena Bank
• Surat Bharuch Gramin Bank
• Thar Aanchalik Gramin Bank
• Tripura Gramin Bank
• Tungabhadra Gramin Bank
• Vidur Gramin Bank
Other Public Sector Bank

• IDBI BANK
Fact File of Banks in India:

The first bank in India to be given an ISO Certification Canara Bank
The first bank in Northern India to get ISO 9002
Punjab and Sind Bank
certification for their selected branches
The first Indian bank to have been started solely with
Punjab National Bank
Indian capital
The first among the private sector banks in Kerala to
South Indian Bank
become a scheduled bank in 1946 under the RBI Act
India's oldest, largest and most successful commercial State Bank of India
bank, offering the widest possible range of domestic,
international and NRI products and services, through its
23
vast network in India and overseas
India's second largest private sector bank and is now the
The Federal Bank Limited
largest scheduled commercial bank in India
Bank which started as private shareholders banks,
Imperial Bank of India
mostly Europeans shareholders
The first Indian bank to open a branch outside India in
Bank of India, founded in
London in 1946 and the first to open a branch in
1906 in Mumbai
continental Europe at Paris in 1974
The oldest Public Sector Bank in India having branches
all over India and serving the customers for the last 132 Allahabad Bank
years
The first Indian commercial bank which was wholly
Central Bank of India
owned and managed by Indians
Bank of India was founded in 1906 in Mumbai. It became the

first Indian bank to open a branch outside India in London in
1946 and the first to open a branch in continental Europe at
Paris in 1974.
Company Profile
STANDARD CHARTERED BANK

Standard Chartered Bank is a British bank headquartered
in London with operations in more than seventy countries.
It operates a network of over 1,700 branches and outlets
(including subsidiaries, associates and joint ventures) and
employs 73,000 people.
24
Despite its British base, it has few customers in the United
Kingdom and 90% of its profits come from Asia, Africa,
and the Middle East. Because the bank's history is entwined
with the development of the British Empire its operations
lie predominantly in former British colonies, though over
the past two decades it has expanded into countries that
have historically had little British influence. It aims to
provide a safe regulatory bridge between these developing
economies.
It now focuses on consumer, corporate, and institutional
banking, and on the provision of treasury services—areas
in which the Group had particular strength and expertise.
Standard Chartered is listed on the London Stock Exchange
and the Hong Kong Stock Exchange and is among the top
25 constituent members of the FTSE 100 Index.
History
The name Standard Chartered comes from the two original banks
from which it was founded—The Chartered Bank of India,
Australia and China, and The Standard Bank of British South
Africa.
The Chartered Bank was founded by James Wilson following the

grant of a Royal Charter by Queen Victoria in 1853, while The
Standard Bank was founded in the Cape Province of South Africa
in 1862 by John Paterson. Both companies were keen to capitalise
on the huge expansion of trade and to earn the handsome profits to
be made from financing the movement of goods from Europe to
the East and to Africa.
25
In those early years, both banks prospered. Chartered opened its
first branches in Bombay, Calcutta and Shanghai in 1858, followed
by Hong Kong and Singapore in 1859. With the opening of the
Suez Canal in 1869 and the extension of the telegraph to China in
1871, Chartered was well placed to expand and develop its
business.
In South Africa, Standard, having established a considerable

number of branches, was prominent in financing the development
of the diamond fields of Kimberley from 1867 and later extended
its network further north to the new town of Johannesburg when
gold was discovered there in 1885. Half the output of the second
largest gold field in the world passed through The Standard Bank
on its way to London.
Both banks – at that time still quite separate companies – survived

the First World War and the Depression, but were directly affected
by the wider conflict of the Second World War in terms of loss of
business and closure of branches. There were also longer term
effects for both banks as countries in Asia and Africa gained their
independence in the ‘50s and ‘60s.
Each had acquired other small banks along the way and spread
their networks further. In 1969, the banks decided to merge, and to
counterbalance their existing network by expanding in Europe and
the United States, while continuing their expansion in their
traditional markets in Asia and Africa. All appeared to be going
well, when in 1986 Lloyds Bank of the United Kingdom made a
hostile takeover bid for the Group.
After having defeated the bid, Standard Chartered entered a period

of change. It made provisions against Third World debt exposure
and loans to corporations and entrepreneurs who could not meet
26
their commitments. It also began a series of divestments notably in
the United States and South Africa, and entered into a number of
asset sales.
From the early 1990s, Standard Chartered has focused on

developing its strong franchises in Asia, Africa and the Middle
East, using its operations in the United Kingdom and North
America to provide customers with a bridge between these
markets. Secondly, it would focus on consumer, corporate and
institutional banking and on the provision of treasury services -
areas in which the Group had particular strength and expertise.
Since 2000, Standard Chartered has achieved several milestones

with a number of strategic alliances and acquisitions.
Recent Alliances and Strategic Acquisitions

In 2000, Standard Chartered acquired Grindlays Bank from ANZ
Bank, increasing its presence in private banking and further
expanding its operations in India and Pakistan. Standard Chartered
retained Grindlays' private banking operations in London and
Luxembourg and the subsidiary in Jersey, all of which it integrated
into its own private bank. This now serves high net worth
customers in Hong Kong, Dubai, and Johannesburg under the
name Standard Chartered Grindlays Offshore Financial Services.
In India, Standard Chartered integrated most of Grindlays'
operations, making Standard Chartered the largest foreign bank in
the country, despite Standard Chartered having cut some branches
and having reduced the staff from 5500 to 3500 people.
On 15th April 2005, the bank acquired Korea First Bank, beating
HSBC in the bid. Since then the bank has rebranded the branches
as SC First Bank.
Standard Chartered completed the integration of its Bangkok

branch and Standard Chartered Nakornthon Bank in October,
27
renaming the new entity Standard Chartered Bank (Thailand).
Standard Chartered also formed strategic alliances with Fleming
Family & Partners to expand private wealth management in Asia
and the Middle East, and acquired stakes in ACB Vietnam,
Travelex, American Express Bank in Bangladesh and Bohai Bank
in China.
On 9th August 2006 Standard Chartered announced that it had

acquired an 81% shareholding in the Union Bank of Pakistan in a
deal ultimately worth $511 million. This deal represented the first
acquisition by a foreign firm of a Pakistani bank and the merged
bank, Standard Chartered Bank (Pakistan), is now Pakistan's sixth
largest bank.
On 22 October, 2006 Standard Chartered announced that it has

received tenders for more than 51 per cent of the issued share
capital of Hsinchu International Bank (“Hsinchu”), established in
1948 in Hsinchu province in Taiwan. Standard Chartered, which
had first entered Taiwan in 1985, acquired majority ownership of
the bank, Taiwan’s seventh largest private sector bank by loans
and deposits as at 30 June, 2006. Standard Chartered merged its
existing three branches with Hsinchu's 83, and then delisted
Hsinchu International Bank, changing the bank's name to 渣打國
際商業銀行股份有限公司 (Standard Chartered Bank (Taiwan)
Limited). Prior to the merger, Hsinchu had suffered extensive
losses on defaulted credit card debt.
In 2006, Standard Chartered in Bangladesh announced an alliance

with Dutch Bangla Bank to share their respective ATM operations.
On 23 August, 2007 Standard Chartered entered into an agreement

to buy a 49 percent of an Indian brokerage firm (UTI Securities)
for $36 million in cash from Securities Trading Corporation of
India Ltd., with the option to raise its stake to 75 percent in 2008
and, if both partners agree, to 100 percent by 2010. UTI Securities
28
offers broking, wealth management and investment banking
services across 60 Indian cities.
On 29th February 2008, Standard Chartered PLC announced it has

received all the required approvals leading to the completion of its
acquisition of American Express Bank Ltd (AEB) from the
American Express Company (AXP). The total cash consideration
for the acquisition is US$ 823 million.
The acquisition of AEB provides Standard Chartered with an

opportunity to add capability, scale and momentum in the
strategically important Financial Institutions and Private Banking
businesses. It will add 19 more markets to the Standard Chartered
footprint, while deepening presence in some core markets and
providing access to several new growth markets.
Position today
Today, the bank is a leading player throughout the developing
world.
Standard Chartered Bank is one of the three banks issuing

banknotes for Hong Kong (Standard Chartered Bank (Hong Kong)
Limited became a note-issuing bank from 2004), the other two
being the Bank of China (Hong Kong) and The Hongkong and
Shanghai Banking Corporation.
The bank supports marathons in many cities, including London

(The City Run), Jersey, Singapore, Dubai, Lahore, Mumbai, Hong
Kong, and Nairobi.
29
Standard Chartered Global Presence
Standard Chartered Global Presence
The Americas Africa Asia Middle-East Europe
• Argentina • Botswana • Afghanistan • Bahrain • The Falklands

• Bahamas • Cameroon • Australia • Jordan (classified as
• Brazil • Gambia • Bangladesh • Lebanon "Europe" for
• Canada • Ghana • Brunei • Oman Standard Chartered
• Colombia • Ivory Coast • Cambodia • Qatar purposes)
• Mexico • Kenya • China • Ireland
• Peru • Nigeria • Hong Kong • UAE • Jersey
• US • Sierra • India • Switzerland
Leone • Indonesia • Turkey
• Venezuela • South • Japan
30
Africa • Laos
• Tanzania • Macus • UK
• Uganda • Malaysia
• Zambia • Mauritius
• Nepal
• Zimbabwe • Pakistan
• Philippines
• Singapore
• South Korea
• Sri Lanka
• Taiwan
• Thailand
• Vietnam
Standard Chartered Bank Limited India

The Standard Chartered Group was formed in 1969 through a
merger of two banks: The Standard Bank of British South Africa
founded in 1863 and the Chartered Bank of India, Australia and
China, founded in 1853. The Chartered Bank opened its first
overseas branch in India, at Kolkata, on 12 April 1858. In 1969,
the decision was made by Chartered and by Standard to undergo a
friendly merger. The Grindlays Bank from the ANZ Group and the
Chase Consumer Banking operations in Hong Kong were acquired
in 2000.
Business of the Company:
31
Listed on both the London Stock Exchange and the Hong Kong
Stock Exchange, Standard Chartered PLC is consistently ranked in
the top 25 FTSE 100 companies by market capitalization.
Personal Banking: Offers personal financial solutions to meet the

needs of more than 14 million customers across Asia, Africa and
the Middle East through a global network of over 1,700 branches
and outlets.
SME Banking: The division offers a wide range of products and

services to help small and medium-sized enterprises manage the
demands of a growing business.
Wholesale Banking: Headquartered in Singapore and London,

provides corporate and institutional clients with innovative
solutions in trade finance, cash management, securities services,
foreign exchange and risk management, capital rising, and
corporate finance.
Islamic Banking: Standard Chartered Saadiq's dedicated Islamic

Banking team provides comprehensive international banking
services and a wide range of Shariah compliant financial products
that are based on Islamic values.
Private Banking: Provides customized solutions to meet the

unique needs and aspirations of high net worth clients.
Special features:
32
Besides Economic contribution the bank provides services to
protect environment, spread social benefits of economic growth
and contributes to better governance.
INTEREST RATES
With a wide variety of options to suit different needs, including

Short Term Deposit, Reinvestment Deposit, Simple Fixed Deposit
and Monthly Income Plan, they can be opened by individuals,
proprietors, partnership and limited companies, societies, clubs,
associations and HUFs.
33
In case you need to withdraw amounts in excess of what is
available in your transaction account, we will break your deposit
for the exact amount you require. The rest of the deposit continues
earning the original high interest.
1. Tenor ranges from 15 days to 5 years (For deposits of Rs. 15

Lakhs and above, minimum tenor is 7 days)
2. Options of simple interest and compound interest
3. Auto renewal facility
4. Overdraft facility available against deposit
5. Preferential rates given for large value deposits of Rs.15 Lakhs

and above
BUSINESS INSIGHTS OF STANDARD CHARTERED
Turnover: Net revenue: US$5.37 billion (2004)
34
Core Service: Standard Chartered is listed on both the London
Stock Exchange and the Stock Exchange of Hong Kong and is in
the top 25 FTSE-100 companies, by market capitalization.
It 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 to medium sized enterprises. Wholesale
Banking provides corporate and institutional clients with services
in trade finance, cash management, lending, custody, foreign
exchange, debt capital markets and corporate finance.
Employees: Standard Chartered employs 38,000 people in over

9505 locations in 56 countries and territories in the Asia Pacific
Region, South Asia, the Middle East, Africa, the United Kingdom
and the Americas. It is one of the world's most international banks,
with a management team comprising 70 nationalities.
Vision: "Our goal is simple - We want to be 'The World's Best

International Bank'.
TRANSFORMATION
The Bank clearly states its commitment to making a difference in
the communities in which it operates. Evidence of this is
demonstrated on the company’s website through the wide array of
community projects it is engaged in, across the world.
As Chris Smith, Head of Corporate Responsibility explains: “Our

work in the community is a major part of our overall approach
to Corporate Responsibility. Understanding how we are able to
contribute to the sustainable economic development of the
communities we operate in is also fundamental to our business.
35
Community investment in emerging markets
This is the area where Standard Chartered has taken a leadership

role.
“The issue of poverty has a direct economic impact on our

business. If we are able to remove people from poverty they
potentially become a viable customer of the bank,” says, Chris
Smith.
The Bank set up the Community Partnership for Africa in

2001 with an annual budget for Africa of US$1million which
has subsequently risen to US$1, 5 million. The Partnership is
tasked with developing community partnerships, based on donation
guidelines of youth, health and education for the economically
disadvantaged.
Just some of the projects that the Bank has engaged in within
this partnership:
• Botswana: House-building initiative (Received acclaim from

national organization, Habitat for Humanity)
• Kenya: Community “Clean up” activities, involving staff.
• Uganda: A community project, which aims to prevent
Malaria transmission through donation and awareness
campaign on Insecticide Treated Nets (ITN's).
SOCIAL RESPONSIBILITIES
The company has historically been very active in its social

responsibility activities, such as through its programmes to help
blind and partially sighted people, employees suffering from or
36
having to deal with the effects of HIV / AIDS in their
communities and other education-focused programmes.
The Bank has been recognized for its efforts through awards and
external recognition. The company has begun taking a more
strategic approach to its activities through more careful
measurement and monitoring of activities. This is ensuring it
delivers more effectively to its business objectives and to the
communities in which it operates.
Business in the Community gained input from the Bank on

how it felt its programmes had impacted on the business and
on the communities it served:
• Strengthened relationships with local Governments and

local authorities
• Improved relationships with customers and suppliers,
attracting new customers, including a high amount of donor
inflow funds channeled through the Bank as a result of the
newly established initiatives
• Long term sustainable programmes were established that
addressed physical needs of local people, including
electricity, shelter and water, educational needs including
material and equipment and healthcare facilities and
equipment
• Projects set up that were income generating to enable
local communities to help themselves
SWOT ANALYSIS:
1. Expansion of Standard Chartered:
From the early 90s, Standard Chartered has focused on developing
its strong franchises in Asia, the Middle East and Africa using its
37
operations in the United Kingdom and North America to provide
customers with a bridge between these markets. Secondly, it would
focus on consumer, corporate and institutional banking, and on the
provision of treasury services – areas in which the Group had
particular strength and expertise.
In the new millennium they acquired Grindlays Bank from the

ANZ Group and the Chase Consumer Banking operations in Hong
Kong in 2000.
2. Strategic Alliances and Acquisitions:
For extending the customer or geographic reach and broadening

the product range standard chartered had done a no. of strategic
alliances & acquisitions.
• They completed, rebranded and successfully integrated SC
First Bank in Korea, which to date is the biggest acquisition
in our history.
• They completed full integration between Standard Chartered
Bank Thailand and Standard Chartered Nakornthon Bank.
• They formed strategic alliances with Fleming Family &
Partners to expand private wealth management in Asia and
the Middle East
• They acquired stakes in ACB Vietnam and Travelex
• They acquired the business operations of American Express
Bank in Bangladesh
• They acquired a stake in Bohai Bank in Tianjin, China,
making us the first foreign bank to be allowed a stake in a
local bank in China.
38
Problem Statement:
To understand the behavior pattern of people of different
age groups, incomes and occupations with respect to the
investment they make thereby.
Objective:
To make a comparison of different investment products
discussed above. This will enable the investors to invest
39
in the investment products which are most suited to
them. This shall be done with the help of conducting a
survey taking a sample size of 44 people.
Investment Strategies of General Public
The tasks in hand for us were to understand:

• What Investments do people prefer?
• How much risk do they want to take?
• The Objective of Investments?
• The Satisfaction attained from Investments?
• Tenure of Investment?
Depending Upon Their:

 Income,
 Age,
40
 Sex,
 Occupation.
We had to analyze the above mentioned Trends behind people’s

Investments depending on the above mentioned Factors so that
we can understand which Investments suits which kind of an
Investor.
Data collection and Research:

For this we made a questionnaire and conducted a survey of
people. We took a sample of size 44 through random sampling of
different age groups and occupations and by doing the analysis we
will be able to find out the pattern on which customers choose
respective Investments and also to understand their needs better .
Investment Strategy Questionnaire

(Please Mark the appropriate Option)
Name:
Age:
( )Below 25, ( )25 to 40, ( )40 to 60, ( )Above 60.
Income:
( )Below 1,50,000 ( )1,50,000 to 4,00,000 ( )4,00,000 to 6,50,000
( )Above 6,50,000
Occupation:
41
( )Private Sector Employee, ( )Govt. Employee, ( )Businessman/Self
Employed, ( )Others…………..
Your Preferred Area of Investment:

( )Mutual Funds, ( )ULIP, ( )Shares/Debentures, ( )Real Estate,
( )Life Insurance Policies, ( )Bullion, ( )Fixed Deposits, ( )Others………...
Risk Level undertook:

( )Low, ( )Medium, ( )High.
Objective of Investment:
( )Growth/Return, ( )Savings, ( )Tax Savings, ( )Child Marriage,
( )Others…………
Tenure:
( )Less than 1 yr, ( )1 yr to 3 yrs, ( )3yrs to 5 yrs, ( )More than 5 yrs.
Level of Satisfaction with Investments:

( )Low, ( )Medium, ( )High.
Data Profile
42
Gender Profile
36.36%
Female
Male
63.64%
Income Profile
2.27%
27.27%
29.55%
1.5L to 4L
4L to 6.5L
Above 6.5L
Below 1.5L
40.91%
43
Occupation Profile
4.55%
36.36%
Business/Self Employed
Government Employee
40.91% Private Sector Employee
Retired
18.18%
Preferred Investment Profile
4.55% 4.55%
11.36%
11.36%
Bullion
6.82% Fixed Deposits
Kisan Vikas Patra
Life Insurance Policies
25.00% 9.09% Mutual Funds

Real Estate
Shares/Debentures
ULIP
27.27%
44
Risk Profile
6.82%
45.45% High
Low
Medium
47.73%
Objective Profile
11.36%
22.73%
Child Marriage
Growth/Returns
N/A
9.09% Safety
Savings
50.00% Tax Savings
2.27%
4.55%
45
Tenure Profile
27.27%
45.45% 1 to 3 Yrs
3 to 5 Yrs
Less than 1 Yr
9.09% More than 5 Yrs
18.18%
Satisfaction Level Profile
38.64%
High
56.82% Low
Medium
4.55%
46
Findings of the Research:
1. Relationship between Age & Tenure
Count of
Age Tenure
More than 5 Grand
Age 1 to 3 Yrs 3 to 5 Yrs Less than 1 Yr Yrs Total
25 to 40 7 3 2 6 18
40 to 60 4 2 3 9
Above 60 2 1 2 5
Below 25 7 2 2 1 12
Grand
Total 20 8 4 12 44
Drop Page Fields Here
Count of Age
20
18
16
14 Tenure
12 More than 5 Yrs
10 Less than 1 Yr
8 3 to 5 Yrs
6 1 to 3 Yrs
4
2
0
25 to 40 40 to 60 Above 60 Below 25
Age
47
2. Relation between Income & Risk
Count of Income Risk

Income High Low Medium Grand Total
1.5L to 4L 1 7 4 12
4L to 6.5L 11 7 18
Above 6.5L 2 3 8 13
Below 1.5L 1 1
Grand Total 3 21 20 44
Count of Income
20
18
16
14
Risk
12
Medium
10
Low
8 High
6
0
1.5L to 4L 4L to 6.5L Above 6.5L Below 1.5L
Income
48
3. Relation between Investment &
Satisfaction
Count of Preferred Investment Satisfaction

Preferred Investment High Low Medium Grand Total
Bullion 1 1 2
Fixed Deposits 3 2 5
Kisan Vikas Patra 1 2 3
Life Insurance Policies 1 3 4
Mutual Funds 6 6 12
Real Estate 5 6 11
Shares/Debentures 1 4 5
ULIP 1 1 2
Grand Total 17 2 25 44
Count of Prefered Investment

14
12
10 Satisfaction
8 Medium
6 Low
High
4
2
Shares/Debentures
Kisan Vikas Patra
Fixed Deposits
Mutual Funds
0
Life Insurance
Real Estate
ULIP
Bullion
Policies
Prefered Investment
49
4. Relation between Age of Investor and
Objective of Investment
Count of
Age Objective
Child Grand
Age Marriage Growth/Returns N/A Safety Savings Tax Savings Total
25 to 40 2 9 2 2 3 18
40 to 60 1 6 2 9
Above 60 2 2 1 5
Below 25 5 2 5 12
Grand
Total 5 22 2 1 4 10 44
Count of Age
20
18
16 Objective
14 Tax Savings
12 Savings
10 Safety
8 N/A
6 Growth/Returns
4 Child Marriage
2
0
Age
50
Tenure
Count of Prefered
Investment Tenure
More than 5 Grand
Prefered Investment 1 to 3 Yrs 3 to 5 Yrs Less than 1 Yr Yrs Total
Bullion 2 2
Fixed Deposits 3 1 1 5
Kisan Vikas Patra 1 1 1 3
Life Insurance Policies 1 3 4
Mutual Funds 8 3 1 12
Real Estate 3 3 5 11
Shares/Debentures 2 3 5
ULIP 2 2
Grand Total 20 8 4 12 44
Count of Prefered Investment

14
12
Tenure
10
More than 5 Yrs
8
Less than 1 Yr
6
3 to 5 Yrs
4
1 to 3 Yrs
2
0
Mutual Funds
ULIP
Bullion
Fixed Deposits
Kisan Vikas Patra
Real Estate
Life Insurance
Shares/Debentures
Policies
Prefered Investment
51
6. Relation between Investment and
Occupation
Count of Occupation Prefered Investment

Occupation Bullion Fixed Deposits Kisan Vikas Patra Life Insurance Policies
Business/Self Employed 1 1 1 2
Government Employee 1 2 1
Private Sector Employee 1 2 1
Retired 1
Grand Total 2 5 3 4
Mutual Funds Real Estate Shares/Debentures ULIP Grand Total

2 5 3 1 16
4 8
10 1 2 1 18
1 2
12 11 5 2 44
Count of Occupation
20 Prefered Investment
18
ULIP
16
14 Shares/Debentures
12 Real Estate
10 Mutual Funds
8 Life Insurance Policies
6
Kisan Vikas Patra
4
Fixed Deposits
2
0 Bullion
Business/Self Government Private Sector Retired
Employed Employee Employee
Occupation
52
7. Relation between Age of Investor &
Tenure
Count of
Age Tenure
More than 5 Grand
Age 1 to 3 Yrs 3 to 5 Yrs Less than 1 Yr Yrs Total
25 to 40 7 3 2 6 18
40 to 60 4 2 3 9
Above 60 2 1 2 5
Below 25 7 2 2 1 12
Grand
Total 20 8 4 12 44
Count of Age
20
18
16
14 Tenure
12 More than 5 Yrs
10 Less than 1 Yr
8 3 to 5 Yrs
6 1 to 3 Yrs
4
2
0
Age
53
8. Relation between Age of Investor &
Count of
Age Objective
Child Grand
Age Marriage Growth/Returns N/A Safety Savings Tax Savings Total
25 to 40 2 9 2 2 3 18
40 to 60 1 6 2 9
Above 60 2 2 1 5
Below 25 5 2 5 12
Grand
Total 5 22 2 1 4 10 44
Count of Age
20
18
16 Objective
14 Tax Savings
12 Savings
10 Safety
8 N/A
6 Grow th/Returns
4 Child Marriage
2
0
Age
54
Count of Prefered
Investment Objective
Child Tax Grand
Prefered Investment Marriage Growth/Returns N/A Safety Savings Savings Total
Bullion 2 2
Fixed Deposits 1 1 3 5
Kisan Vikas Patra 3 3
Life Insurance Policies 1 1 1 1 4
Mutual Funds 7 5 12
Real Estate 2 8 1 11
Shares/Debentures 5 5
ULIP 1 1 2
Grand Total 5 22 2 1 4 10 44
55
Objective
Count of Pref ered Investment
14 Tax Savings
12
10 Sav ings
8
6 Saf ety
4 N/A
2
0 Grow th/Returns
ULIP
Bullion
Real Estate
Child Marriage
Mutual Funds
Fixed Deposits
Life Insurance
Kisan Vikas Patra
Shares/Debentur
Policies
Pref ered Investment es
56
Another one of our Assignments was to compare
the services and products offered by different
Banks from one another.
Methodology (Problem Definition, Research / Data

Collection)
Detailed Features Of Savings A/c

Average Quarterly Balance(AQB)
Quarterly Statement
Monthly Statement
Pass Book
Personalised Cheque Book
Multicity Cheque Book
ATM Charges
Own ATMs within India
Other ATMs within India
ATMs Outside India
Debit Card Charges
1st Year Fee
Annual Fee Per Card
Reissuance Charges
ATM Card
Debit Card Charges
Branch Transaction Charges
Cash Deposit/Withdrawal
Demand Draft
Outstation Cheque Collection
Maximum Withdrawal Limit
Unique Feature
57
BANKS
ICICI
Rs10,000
Free
Rs200/yr
Free
1st is Free,Rs50 Per Additional C/B
NA
Free
Rs20 Per Transaction
NA
Rs99
Rs99
Free
Rs200
Rs50 Per Transaction at Base Branch,

Rs50(Min) If Drawn on ICICI Bank
Free
Rs50,000/day-Self
Rs15,000/day-Third Party
Unlimited ATM Transaction
HDFC
Rs5,000
Free
Free
58
Free
NA
NA
Free
NA
Rs100
NA
Rs100
Rs100
NA
Rs50 Up to 10,000 at Base Branch
Free
Rs50,000/day-Self
No Balance Required On 1,00,000

F.D
KOTAK
Rs10,000
Weekly Report-Rs300/Quarter
Daily Report-Rs1500/Quarter
Free
Free
NA
59
Free(Including HDFC)
Rs90
Free
NA
Rs100
Rs100
NA
Rs50 (Min) or Rs2.50 Per 1000 after that. Foreign Currency D/D-
Rs500
Free
Rs25,000-Self
Kotak 2-Way Sweep Benefit
ABN-AMRO
Rs10000
Free
Free
Free
Rs50
NA
Free
Rs120
60
Rs180
NA
NA
RS200
NA
Rs50 If Drawn on ABN-AMRO Branches. Foreign Currency
D/D-Rs200
Rs50(Min) or 0.25% of The Transaction Amount
NA
Standard Chartered HSBC

Rs10,000 Rs25,000
Free Free
Free Free
Free Free
Free Free
Free NA
Free ATM Cash Withdrawal Limit-Rs25,000 Per

Day
Rs20 Per Transaction NA
61
Rs140 NA
Rs200 Debit Card Purchase Limit-Rs10,000 Per

Day
Rs200 NA
Rs100 NA
Rs200 NA
Rs50 NA
Rs50 NA
Free NA
NA NA
Products Offered by Standard Chartered

Bank
1. Accounts
a) Savings Account:
i. aXcess Plus Account:
Standard Chartered Bank's aXcess Plus is a revolutionary
savings account that provides you with unstinted aXcess to your
money.
Features
Exclusive benefits of an aXcess Plus savings account:
 FREE Unlimited Visa ATM transactions* (Cash withdrawal)
 FREE Standard Chartered Bank branch access across the

country
62
 FREE Doorstep Banking*
 FREE Demand Drafts/Pay Orders* (drawn at SCB locations)
 FREE Payable at Par Cheque book
*Available on maintenance of average quarterly balance of Rs

15,000/-
Additional Features
Get instant cash at over 20,000 ATMs across India and over
10,00,000 ATMs across the world through the Visa network. And
get a globally valid Debit Card that lets you shop at over 3,26,000
outlets in India and at over 14 million outlets across the world.
And that’s not all, with the aXcess Plus account you also get:
 International Debit Card
 Phone Banking
 Online Banking
 Extended Banking Hours
*Terms and Conditions apply. Certain features are currently not

available in all branches
The Standard Chartered aXcessPlus Account comes with a

globally valid debit - cum - ATM card which allows customers to
aXcess all Standard Chartered Bank ATMs and provides instant
cash at all Visa Network ATMs in India and abroad.
 aXcessPlus customers get FREE* aXcess to cash
withdrawals at over 20,000 Visa ATMs in India up to four
free transactions per month.
 This is over and above unlimited free aXcess to all Standard
Chartered Bank ATMs.
 The Debit Card can be used to make purchases at over
3,26,000 merchant outlets in India.
63
ii. Super Value Account
The unique SuperValue savings account from Standard Chartered
is proof that the best things in life come free. With an average
quarterly balance of just Rs. 50,000, you get a host of services
from Standard Chartered absolutely free.
iii. Parivaar Account

Parivaar is a unique Wealth Management Solution from Standard
Chartered Bank that offers your family flexibility, convenience and
essential tools for wealth accumulation and preservation.
iv. No Frills Account

If you want banking made easy, we give simple solutions. The
Standard Chartered Bank No Frills Account is designed to meet
your basic banking requirements. You need to maintain an average
quarterly balance of just Rs. 250 with this account.
What’s more – you can avail of Anywhere Banking, by which you
can access your account from any branch of Standard Chartered
Bank in India.
v. aaSaan Account
Introducing the Standard Chartered Bank's aaSaan savings
account. It is a no maintenance, hassle free and easy solution to all
your banking needs.
vi. 2 in 1 Account
Introducing a unique account that offers you a double advantage –
it lets you earn the high interest rate of a fixed deposit while you
enjoy the flexibility of a savings or current account.
64
b) Current a/c
i) Business Plus Account
Standard Chartered Bank presents the Business Plus Account. A
current account that helps you get more out of your business.
ii) Enhanced Business Plus Account

You run your business efficiently, and effectively. That's why you
need a current account that does the same. The Enhanced Business
Plus Account from Standard Chartered is designed to make better
business sense and make your money work most effectively.
It's all you have ever wanted from a current account and more.
Every business has different needs and complexities. That's why
the Enhanced Business Plus Account has been developed to suit
your business needs.
2. Credit Cards:
It offers a variety of credit cards, each tailored to your
lifestyle needs.
Examples:
a) Executive Card is designed for the professional on the move. It’s
a card that travels like you do.
b) Gold Card is for special deals at your favorite restaurants,
privileged access to exclusive areas when you’re traveling,
worldwide acceptance.
3. Debit & Prepaid Cards:

It offers Debit cards.
Examples:
a) ShopSmart Card gives unparalleled aXcess to your money.
65
b) Gold Debit Card includes privileges like high spending limits
and worldwide acceptance.
4. Loans & Mortgages:

It offers wide range of loans:
Example
a) Personal Loan: Best suited for people requiring loan for any
requirement whatsoever that too at competitive interest rates. Loan
amount ranges from 50,000 to 15,00,000. No collaterals or
securities are required. Any SCB customer can avail of special
rates with less documentation and priority processing.
Other Loans are Home loans, Loan against property, Loan against
securities etc.
5. Insurance & Investment Services

Standard Chartered offers you a wide range of Life Insurance
Products from Bajaj Allianz Life Insurance Company, one of
India's leading Insurance companies.
At Standard Chartered, you can avail of the services of trained &
certified professional consultants from Bajaj Allianz Insurance
company, who can guide you in ascertaining your insurance needs,
and assist you in making an insurance plan that is just right for
you.
Some of the key plans are:
a) New SecureFirst:An investment that offers double advantage
with flexibility.
b) New Unit Gain Plus:Flexible investments never so easy.
We offer the range of innovative general Insurance products in
association with Royal Sundaram to our customers.
66
Royal Sundaram Alliance Insurance Company Limited is a joint
venture between Sundaram Finance and Royal & SunAlliance plc,
UK, where the former holds 74% and the latter holds 26% of the
equity of the venture. Royal Sundaram currently has over 2.1
million customers in its fold. Its products are distributed in over
150 cities across India.
Some key products are:
 Health shield: A comprehensive health insurance package
designed to offer complete protection to the insured and his
family.
 Car shield: A comprehensive motorcar insurance package,
designed to cover your car in most adverse situations.
 Home shield: Provides complete coverage for damage to
your building.
 Accident shield: Designed to take care of you and your
family in the unfortunate event of a fatal accident.
 Double protect: “Double Protect” is a 2 years Health
Insurance plan. The plan offers reimbursement of
Hospitalisation expenses in the event of illness or accident
Investment Services
Investments, unlike works of art, cannot afford the luxury of
experimenting. Investing is not guesswork. It takes more than just
a 'tip' it needs training to plan, instinct to pick and sheer intellect to
make it work for you. That extra mile assures you that your hard
earned money is with the right people.
Standard Chartered Bank, using over 150 years of expertise,
promises to guide you through the world of exciting new
investment opportunities in India and overseas.
From shortest-term deployment of funds to planning your
retirement, we pledge to go the extra mile to ensure that you reach
your chosen financial goals.
67
When you deal with Standard Chartered, you can expect the best.
We are, after all, the leading global bank in Asia, Africa and the
Middle East. We look after investments for over 5 million
customers across in 57 countries. From world class services to the
most sought after talent pool, we provide an unmatched foundation
which you can trust.
We've invested in professional talent that can provide you with a
continuous, thorough and insightful guidance with your money. All
this so you can rest easy when you put your money into our hands.
We offer a wide range of professional services with a team of
trained, experienced professionals. Our team has a Wide capital
markets and investment advisory experience and is dedicated to
making your investments work for you.
 Consolidated portfolio statements of all your mutual fund
investments
 Online, internet access to PMS portfolios
 Direct credit/debit facilities for all your investments
 Periodic meetings with leading fund managers and industry

experts
 SCIS Research Edge
6. Other Services:
NRI Banking
Under this banking SCB offers accounts like NRE, NRO &FCNR
accounts.
NRE accounts: Funds remitted from abroad and which are of
repatriable nature can be credited to NRE accounts. It is best suited
to park overseas savings remitted to India by converting to INR. In
addition it can open as Savings account, Current account or Fixed
deposit.
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NRO accounts: Local funds which do not qualify, under the
exchange control regulations, for remittance outside India can be
credited to NRO accounts. These are best suited to park Indian
earnings like rent, Indian salary, dividends etc. It can open as
Savings account, Current account or Fixed deposit.
PRIORITY Banking
Designed specifically for those who appreciate only the finest
things in life, Priority Banking offers the very highest levels of
personalized banking to match unique status.
Bank is committed to helping a plan ,build and protect wealth by
offering individual attention as well as international banking and
investment opportunities to meet current and future needs.
Standard Chartered Bank Priority Banking is created specifically
for a chosen few individuals, who will settle for nothing but the
best and demand the best and demand the highest standards of
service in all your banking relationships.
SME Banking
One-Stop Financial Solution for Your Growing Business
With years of banking experience, Standard Chartered is

undoubtedly in a strong position to help growing businesses sail
through the complexities they may face. As an international bank
with offices in more than 50 countries, we provide the global reach
and international recognition that your company deserves.
SME Banking offers one of the widest range of banking products

and services in the market today. Managing a growing business
demands most of your time and energy. Our relationship managers
69
understand your business requirement and help you manage your
business better.
SCB offers product like FOREX services, Term Loan,
International Trade Account, Trade Services & Working Capital
etc.
Commercial Banking
Standard Chartered has maintained a long local presence, since
1858, with particular emphasis on relationship banking. Significant
networks have been established with vendors and financial-related
organisations to enable us to offer our customers a comprehensive
range of flexible financial services, with special focus on
transactional banking products. Supported by state-of-the-art
operations, Standard Chartered is pro-active in improving every
part of our services. Electronic Delivery system has been put in
place to ensure that transactions are handled speedily. We have our
Cash Product Specialists and dedicated Customer Service Centres
to provide our customers with effective solutions. The currency of
India is the Rupee (SWIFT code: INR).
Standard Chartered fully understands the importance of time,

convenience and efficiency to the success of your business. We
make easy the complex financial world for you and help you
maximise every opportunity.
With over 140 years of experience in trade finance and an

extensive international branch network, Standard Chartered is
committed to help you succeed in every competitive environment.
To keep pace with your changing needs, we will constantly review
our comprehensive cash, trade and treasury products and services,
ensuring that a full range of flexible and innovative services is
always available for you wherever you trade.
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Mutual Fund
Concept
A Mutual Fund is a trust that pools the savings of a number of

investors who share a common financial goal. The money thus
collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned
through these investments and the capital appreciation realized
is shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed basket of
securities at a relatively low cost. The flow chart below
describes broadly the working of a mutual fund:
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A mutual fund is a professionally managed firm of
collective investments that collects money from many
investors and puts it in stocks, bonds, short-term money
market instruments, and/or other securities. The fund
manager, also known as portfolio manager, trades the
fund's underlying securities, realizing capital gains or
losses and passing any proceeds to the individual investors.
Currently, the worldwide value of all mutual funds totals
more than $26 trillion.
Organization of a Mutual Fund

There are many entities involved and the diagram below
illustrates the organizational set up of a mutual fund:
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How Mutual Funds Work
Every mutual fund has a goal - either growing its assets (capital
gains) and/or generating income (dividends) for its investors.
Distributions in the form of capital gains (short-term and long-
term) and dividends may be passed on (paid) to shareholders as
income or reinvested to purchase more shares. For tax
purposes, keep track of your distributions and cost basis of
purchased/reinvested shares.
Like any business, mutual funds have risks and costs associated
with returns. As a shareholder, the risks of a fund and the
expenses associated with fund's operation directly impact your
return.
FREQUENTLY USED TERMS
Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme
minus its liabilities. The per unit NAV is the net asset value of
the scheme divided by the number of units outstanding on the
Valuation Date.
Sale Price
Is the price you pay when you invest in a scheme. Also called
Offer Price. It may include a sales load.
Repurchase Price
Is the price at which a close-ended scheme repurchases its units
and it may include a back-end load. This is also called Bid
Price.
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Redemption Price
Is the price at which open-ended schemes repurchase their units
and close-ended schemes redeem their units on maturity. Such
prices are NAV related.
Sales Load
Is a charge collected by a scheme when it sells the units. Also
called, ‘Front-end’ load. Schemes that do not charge a load are
called ‘No Load’ schemes.
Repurchase or ‘Back-end’ Load

Is a charge collected by a scheme when it buys back the units
from the unit holders.
Returns
As an investor, you want to know the fund's return-its track
record over a specified period of time. So what exactly is
"return?"
A mutual fund's return is the rate of increase or decrease in its
value over a specific period of time usually expressed in the
following increments: one, three, five, and ten year, year to date,
and since the inception of the fund. Since return is a common
measure of performance, you can use it to evaluate and compare
mutual funds within the same fund category. Generally
expressed as an annualized percentage rate, return is calculated
assuming that all distributions from the fund are reinvested.
Since average returns can sometimes "hide" short-term highs
and lows, you should evaluate returns for a time period of
several years-not just one year or less. A fund that has a high
return in one year may have experienced losses in other years-
these fluctuations may not be apparent in its average return.
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Risk
Every type of investment, including mutual funds, involves risk.
Risk refers to the possibility that you will lose money (both
principal and any earnings) or fail to make money on an
investment. A fund's investment objective and its holdings are
influential factors in determining how risky a fund is. Reading the
prospectus will help you to understand the risk associated with that
particular fund.
Generally speaking, risk and potential return are related. This is the
risk/return trade-off. Higher risks are usually taken with the
expectation of higher returns at the cost of increased volatility.
While a fund with higher risk has the potential for higher return, it
also has the greater potential for losses or negative returns. The
school of thought when investing in mutual funds suggests that the
longer your investment time horizon is the less affected you should
be by short-term volatility. Therefore, the shorter your investment
time horizon, the more concerned you should be with short-term
volatility and higher risk.
Defining Mutual fund risk

Different mutual fund categories as previously defined have
inherently different risk characteristics and should not be compared
side by side. A bond fund with below-average risk, for example,
should not be compared to a stock fund with below average risk.
Even though both funds have low risk for their respective
categories, stock funds overall have a higher risk/return potential
than bond funds.
Of all the asset classes, cash investments (i.e. money markets)

offer the greatest price stability but have yielded the lowest long-
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term returns. Bonds typically experience more short-term price
swings, and in turn have generated higher long-term returns.
However, stocks historically have been subject to the greatest
short-term price fluctuations—and have provided the highest long-
term returns. Investors looking for a fund which incorporates all
asset classes may consider a balanced or hybrid mutual fund.
These funds can be very conservative or very aggressive. Asset
allocation portfolios are mutual funds that invest in other mutual
funds with different asset classes. At the discretion of the
manager(s), securities are bought, sold, and shifted between funds
with different asset classes according to market conditions.
Mutual funds face risks based on the investments they hold. For
example, a bond fund faces interest rate risk and income risk.
Bond values are inversely related to interest rates. If interest rates
go up, bond values will go down and vice versa. Bond income is
also affected by the change in interest rates. Bond yields are
directly related to interest rates falling as interest rates fall and
rising as interest rise. Income risk is greater for a short-term bond
fund than for a long-term bond fund.
Similarly, a sector stock fund (which invests in a single industry,

such as telecommunications) is at risk that its price will decline
due to developments in its industry. A stock fund that invests
across many industries is more sheltered from this risk defined as
industry risk.
Following is a glossary of some risks to consider when investing in

mutual funds.
• Call Risk. The possibility that falling interest rates will cause
a bond issuer to redeem—or call—its high-yielding bond
before the bond's maturity date.
• Country Risk. The possibility that political events (a war,
national elections), financial problems (rising inflation,
government default), or natural disasters (an earthquake, a
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poor harvest) will weaken a country's economy and cause
investments in that country to decline.
• Credit Risk. The possibility that a bond issuer will fail to
repay interest and principal in a timely manner. Also called
default risk.
• Currency Risk. The possibility that returns could be reduced
for Americans investing in foreign securities because of a rise
in the value of the U.S. dollar against foreign currencies.
Also called exchange-rate risk.
• Income Risk. The possibility that a fixed-income fund's
dividends will decline as a result of falling overall interest
rates.
• Industry Risk. The possibility that a group of stocks in a
single industry will decline in price due to developments in
that industry.
• Inflation Risk. The possibility that increases in the cost of
living will reduce or eliminate a fund's real inflation-adjusted
returns.
• Interest Rate Risk. The possibility that a bond fund will
decline in value because of an increase in interest rates.
• Manager Risk. The possibility that an actively managed
mutual fund's investment adviser will fail to execute the
fund's investment strategy effectively resulting in the failure
of stated objectives.
• Market Risk. The possibility that stock fund or bond fund
prices overall will decline over short or even extended
periods. Stock and bond markets tend to move in cycles, with
periods when prices rise and other periods when prices fall.
• Principal Risk. The possibility that an investment will go
down in value, or "lose money," from the original or invested
amount.
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Types of mutual funds
1. Open-end fund
The term mutual fund is the common name for an open-end

investment company. Being open-ended means that, at the end
of every day, the fund issues new shares to investors and buys
back shares from investors wishing to leave the fund.
Mutual funds may be legally structured as corporations or
business trusts but in either instance are classed as open-end
investment companies by the SEC.
Other funds have a limited number of shares; these are either
closed-end funds or unit investment trusts, neither of which a
mutual fund is.
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2. Close-Ended Funds
Redemption can take place only after the period of the scheme
is over. However, close-ended funds are listed on the stock
exchanges and investors can buy/ sell units in the secondary
market (there is no load).
3. Exchange-traded funds
A relatively recent innovation, the exchange-traded fund or

ETF, is often structured as an open-end investment company.
ETFs combine characteristics of both mutual funds and closed-
end funds. ETFs are traded throughout the day on a stock
exchange, just like closed-end funds, but at prices generally
approximating the ETF's net asset value. Most ETFs are index
funds and track stock market indexes. Shares are issued or
redeemed by institutional investors in large blocks (typically of
50,000). Most investors purchase and sell shares through
brokers in market transactions. Because the institutional
investors normally purchase and redeem in in kind transactions,
ETFs are more efficient than traditional mutual funds (which are
continuously issuing and redeeming securities and, to effect
such transactions, continually buying and selling securities and
maintaining liquidity positions) and therefore tend to have lower
expenses.
Exchange-traded funds are also valuable for foreign investors
who are often able to buy and sell securities traded on a stock
market, but who, for regulatory reasons, are limited in their
ability to participate in traditional U.S. mutual funds.
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4. Equity funds
Equity funds, which consist mainly of stock investments, are the

most common type of mutual fund. Equity funds hold 50
percent of all amounts invested in mutual funds in the United
States. Often equity funds focus investments on particular
strategies and certain types of issuers.
5. Bond funds
Bond funds account for 18% of mutual fund assets. Types of

bond funds include term funds, which have a fixed set of time
(short-, medium-, or long-term) before they mature. Municipal
bond funds generally have lower returns, but have tax
advantages and lower risk. High-yield bond funds invest in
corporate bonds, including high-yield or junk bonds. With the
potential for high yield, these bonds also come with greater risk.
6. Money market funds
Money market funds hold 26% of mutual fund assets in the

United States. Money market funds entail the least risk, as well
as lower rates of return. Unlike certificates of deposit (CDs),
money market shares are liquid and redeemable at any time. The
interest rate quoted by money market funds is known as the 7
Day SEC Yield.
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7. Funds of funds
Funds of funds (FoF) are mutual funds which invest in other

underlying mutual funds (i.e., they are funds comprised of other
funds). The funds at the underlying level are typically funds
which an investor can invest in individually. A fund of funds
will typically charge a management fee which is smaller than
that of a normal fund because it is considered a fee charged for
asset allocation services. The fees charged at the underlying
fund level do not pass through the statement of operations, but
are usually disclosed in the fund's annual report, prospectus, or
statement of additional information. The fund should be
evaluated on the combination of the fund-level expenses and
underlying fund expenses, as these both reduce the return to the
investor.
Most FoFs invest in affiliated funds (i.e., mutual funds managed
by the same advisor), although some invest in funds managed
by other (unaffiliated) advisors. The cost associated with
investing in an unaffiliated underlying fund is most often higher
than investing in an affiliated underlying because of the
investment management research involved in investing in fund
advised by a different advisor. Recently, FoFs have been
classified into those that are actively managed (in which the
investment advisor reallocates frequently among the underlying
funds in order to adjust to changing market conditions) and
those that are passively managed (the investment advisor
allocates assets on the basis of on an allocation model which is
rebalanced on a regular basis).
The design of FoFs is structured in such a way as to provide a
ready mix of mutual funds for investors who are unable to or
unwilling to determine their own asset allocation model. Fund
companies such as TIAA-CREF, American Century
Investments, Vanguard, and Fidelity have also entered this
market to provide investors with these options and take the
"guess work" out of selecting funds. The allocation mixes
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usually vary by the time the investor would like to retire: 2020,
2030, 2050, etc. The more distant the target retirement date, the
more aggressive the asset mix.
8. Hedge funds
Hedge funds in the United States are pooled investment funds

with loose SEC regulation and should not be confused with
mutual funds. Some hedge fund managers are required to
register with SEC as investment advisers under the Investment
Advisers Act. The Act does not require an adviser to follow or
avoid any particular investment strategies, nor does it require or
prohibit specific investments. Hedge funds typically charge a
management fee of 1% or more, plus a “performance fee” of
20% of the hedge fund’s profit. There may be a "lock-up"
period, during which an investor cannot cash in shares. A
variation of the hedge strategy is the 130-30 fund for individual
investors.
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Advantages of Mutual Funds
1. Professional Management:
The primary advantage of funds (at least theoretically) is the
professional management of your money. Investors purchase
funds because they do not have the time or the expertise to
manage their own portfolio. A mutual fund is a relatively
inexpensive way for a small investor to get a full-time manager
to make and monitor investments.
Mutual funds are managed and supervised by investment

professionals. As per the stated objectives set forth in the
prospectus, along with prevailing market conditions and other
factors, the mutual fund manager will decide when to buy or
sell securities. This eliminates the investor of the difficult task
of trying to time the market. Furthermore, mutual funds can
eliminate the cost an investor would incur when proper due
diligence is given to researching securities. This cost of
managing numerous securities is dispersed among all the
investors according to the amount of shares they own with a
fraction of each dollar invested used to cover the expenses of
the fund. What does this mean? Fund managers have more
money to research more securities more in depth than the
average investor.
When you buy a mutual fund, you are also choosing a professional
money manager. This manager will use the money that you
invest to buy and sell stocks that he or she has carefully
researched. Therefore, rather than having to thoroughly
research every investment before you decide to buy or sell, you
have a mutual fund's money manager to handle it for you.
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2. Diversification
By owning shares in a mutual fund instead of owning individual
stocks or bonds, your risk is spread out. The idea behind
diversification is to invest in a large number of assets so that a
loss in any particular investment is minimized by gains in
others. In other words, the more stocks and bonds you own, the
less any one of them can hurt you (think about Enron). Large
mutual funds typically own hundreds of different stocks in
many different industries. It wouldn't be possible for an
investor to build this kind of a portfolio with a small amount of
money.
Using mutual funds can help an investor diversify their portfolio

with a minimum investment. When investing in a single fund,
an investor is actually investing in numerous securities.
Spreading your investment across a range of securities can help
to reduce risk. A stock mutual fund, for example, invests in
many stocks - hundreds or even thousands. This minimizes the
risk attributed to a concentrated position. If a few securities in
the mutual fund lose value or become worthless, the loss maybe
offset by other securities that appreciate in value. Further
diversification can be achieved by investing in multiple funds
which invest in different sectors or categories. This helps to
reduce the risk associated with a specific industry or category.
Diversification may help to reduce risk but will never
completely eliminate it. It is possible to lose all or part of your
investment.
3. Convenience:
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With most mutual funds, buying and selling shares, changing
distribution options, and obtaining information can be
accomplished conveniently by telephone, by mail, or online.
Although a fund's shareholder is relieved of the day-to-day tasks

involved in researching, buying, and selling securities, an investor
will still need to evaluate a mutual fund based on investment goals
and risk tolerance before making a purchase decision. Investors
should always read the prospectus carefully before investing in any
mutual fund.
4. Liquidity
Just like an individual stock, a mutual fund allows you to request
that your shares be converted into cash at any time.
Another advantage of mutual funds is the ability to get in and out

with relative ease. In general, you are able to sell your mutual
funds in a short period of time without there being much
difference between the sale price and the most current market
value. However, it is important to watch out for any fees
associated with selling, including back-end load fees. Also,
unlike stocks and exchange-traded funds (ETFs), which trade
any time during market hours, mutual funds mutual funds
transact only once per day after the fund's net asset value
(NAV) is calculated.
Mutual fund shares are liquid and orders to buy or sell are placed
during market hours. However, orders are not executed until the
close of business when the NAV (Net Average Value) of the fund
can be determined. Fees or commissions may or may not be
applicable. Fees and commissions are determined by the specific
fund and the institution that executes the order.
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5. Economies of Scale:
The easiest way to understand economies of scale is by thinking
about volume discounts; in many stores the more of one product
you buy, the cheaper that product becomes. For example, when
you buy a dozen donuts, the price per donut is usually cheaper than
buying a single one. This occurs also in the purchase and sale of
securities. If you buy only one security at a time, the transaction
fees will be relatively large.
Mutual funds are able to take advantage of their buying and selling
size and thereby reduce transaction costs for investors. When you
buy a mutual fund, you are able to diversify without the numerous
commission charges. Imagine if you had to buy the 10-20 stocks
needed for diversification. The commission charges alone would
eat up a good chunk of your savings. Add to this the fact that you
would have to pay more transaction fees every time you wanted to
modify your portfolio - as you can see the costs begin to add up.
With mutual funds, you can make transactions on a much larger
scale for less money.
6. Divisibility:
Many investors don't have the exact sums of money to buy round
lots of securities. One to two hundred dollars is usually not enough
to buy a round lot of a stock, especially after deducting
commissions. Investors can purchase mutual funds in smaller
denominations, ranging from $100 to $1,000 minimums. Smaller
denominations of mutual funds provide mutual fund investors the
86
ability to make periodic investments through monthly purchase
plans while taking advantage of dollar-cost averaging. So, rather
than having to wait until you have enough money to buy higher-
cost investments, you can get in right away with mutual funds.
This provides an additional advantage - liquidity.
7. Minimum Initial Investment:

Most funds have a minimum initial purchase of Rs 10,000 but
some are as low as Rs 5,000.
8. Simplicity:
Buying a mutual fund is easy! Pretty well any bank has its own
line of mutual funds, and the minimum investment is small.
Most companies also have automatic purchase plans whereby
as little as $100 can be invested on a monthly basis.
Other Advantages are:

9. Tax Benefits.
10. Transparency.
11. Flexibility.
12. Wide Choice of Schemes.
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Disadvantages of Mutual Funds
1. Fluctuating Returns:
Mutual funds are like many other investments without a

guaranteed return: there is always the possibility that the value
of your mutual fund will depreciate. Unlike fixed-income
products, such as bonds and Treasury bills, mutual funds
experience price fluctuations along with the stocks that make
up the fund. When deciding on a particular fund to buy, you
need to research the risks involved - just because a professional
manager is looking after the fund, that doesn't mean the
performance will be stellar.
Another important thing to know is that mutual funds are not

guaranteed by the U.S. government, so in the case of
dissolution, you won't get anything back. This is especially
important for investors in money market funds.
2. Diversification:
Although diversification is one of the keys to successful

investing, many mutual fund investors tend to overdiversify.
The idea of diversification is to reduce the risks associated with
holding a single security; overdiversification (also known as
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diworsification) occurs when investors acquire many funds that
are highly related and, as a result, don't get the risk reducing
benefits of diversification.
At the other extreme, just because you own mutual funds

doesn't mean you are automatically diversified. For example, a
fund that invests only in a particular industry or region is still
relatively risky.
3. Cash, Cash and More Cash:
As you know already, mutual funds pool money from

thousands of investors, so everyday investors are putting money
into the fund as well as withdrawing investments. To maintain
liquidity and the capacity to accommodate withdrawals, funds
typically have to keep a large portion of their portfolios as cash.
Having ample cash is great for liquidity, but money sitting
around as cash is not working for you and thus is not very
advantageous.
4. Costs:
Mutual funds don't exist solely to make your life easier--all funds
are in it for a profit. The mutual fund industry is masterful at
burying costs under layers of jargon. These costs are so
complicated that in this tutorial we have devoted an entire
section to the subject.
Mutual funds provide investors with professional management,

but it comes at a cost. Funds will typically have a range of
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different fees that reduce the overall payout. In mutual funds,
the fees are classified into two categories: shareholder fees and
annual operating fees.
The shareholder fees, in the forms of loads and redemption

fees, are paid directly by shareholders purchasing or selling the
funds. The annual fund operating fees are charged as an annual
percentage - usually ranging from 1-3%. These fees are
assessed to mutual fund investors regardless of the performance
of the fund. As you can imagine, in years when the fund doesn't
make money, these fees only magnify losses.
5. Misleading Advertisements:
The misleading advertisements of different funds can guide

investors down the wrong path. Some funds may be incorrectly
labeled as growth funds, while others are classified as small cap
or income funds. The Securities and Exchange
Commission (SEC) requires that funds have at least 80% of
assets in the particular type of investment implied in their
names. How the remaining assets are invested is up to the fund
manager.
However, the different categories that qualify for the required

80% of the assets may be vague and wide-ranging. A fund can
therefore manipulate prospective investors by using names that
are attractive and misleading. Instead of labeling itself a small
cap, a fund may be sold as a "growth fund". Or, the "Congo
High-Tech Fund" could be sold with the title "International
High-Tech Fund".
Dilution - It's possible to have too much diversification (this is
explained in our article entitled "Are You Over-Diversified?").
90
Because funds have small holdings in so many different
companies, high returns from a few investments often don't
make much difference on the overall return. Dilution is also the
result of a successful fund getting too big. When money pours
into funds that have had strong success, the manager often has
trouble finding a good investment for all the new money.
6. Evaluating Funds:
Another disadvantage of mutual funds is the difficulty they

pose for investors interested in researching and evaluating the
different funds. Unlike stocks, mutual funds do not offer
investors the opportunity to compare the P/E ratio, sales
growth, earnings per share, etc. A mutual fund's net asset value
gives investors the total value of the fund's portfolio less
liabilities, but how do you know if one fund is better than
another?
Furthermore, advertisements, rankings and ratings issued by

fund companies only describe past performance. Always note
that mutual fund descriptions/advertisements always include
the tagline "past results are not indicative of future returns". Be
sure not to pick funds only because they have performed well in
the past - yesterday's big winners may be today's big losers.
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Standard Chartered Mutual Fund
Standard Chartered Mutual Fund is well-established fund

house and is sponsored by the Standard Chartered Group
Standard Chartered Mutual Fund launched its first scheme

Grindlays Super Saver Income Fund in the year July 2000. Since
then it focused on debt for 5 years and launched several innovative
products that went to become bourgeoning categories in the Indian
mutual fund industry. Some of these were The Dynamic Bond
Fund, The Short term Fund and the Medium Term Fund. In June
2005 standard chartered launched its first equity fund. Standard
Chartered Classic Equity Fund is a truly diversified fund that
would not be limited by diktats of investing in either a particular
section of the market or a particular style of investing. It also
pioneered several service initiatives that helped increase
transactional ease. It was the first mutual fund to initiate
• Across the counter redemptions for all classes of investors in

liquid funds,
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• Next day redemptions for non-liquid funds and lately
• One Call Free number 1600226622 accessible across 153
cities
Phone transact service wherein investors can redeem without

having any Personal Identification Numbers.
Standard Chartered Mutual Fund today has offices in 19 cities and

currently manages assets in excess of Rs 8000 crores.
Unit Linked Insurance Plan

Unit Linked Insurance Plan (ULIP) provides for life insurance
where the policy value at any time varies according to the value
of the underlying assets at the time. ULIP is life insurance
solution that provides for the benefits of protection and
flexibility in investment. The investment is denoted as units and
is represented by the value that it has attained called as Net
Asset Value (NAV).
ULIP is life insurance solution that provides for the benefits of

protection and flexibility in investment. The investment is
denoted as units and is represented by the value that it has
attained called as Net Asset Value (NAV). As times progressed
the plans were also successfully mapped along with life
insurance need to do retirement planning. In today's times, ULIP
provides solutions for insurance planning, financial needs,
financial planning for children's future and retirement planning.
For the generation of insurance seekers who thrived on

insurance policies with assured returns issued by a single public
sector enterprise, unit-linked insurance plans are a revelation.
Traditionally insurance products have been associated with
attractive returns coupled with tax benefits. The returns part was
93
often so compelling that insurance products competed with
investment products for a place in the investor's portfolio.
Perhaps insurance policies then were symbolic of the times
when high interest rates and the absence of a rational risk-return
trade-off were the norms.
The subsequent softening of interest rates introduced a degree a
much-needed rationality to insurance products like endowment
plans; attractive returns at low risk became a thing of the past.
The same period also coincided with an upturn in equity
markets and the emergence of a new breed of market-linked
insurance products like ULIPs.
While in conventional insurance products the insurance
component takes precedence over the savings component, the
opposite holds true for ULIPs.
More importantly ULIPs (powered by the presence of a large
number of variants) offer investors the opportunity to select a
product which matches their risk profile; for example an
individual with a high risk appetite can shun traditional
endowment plans (which invest about 85% of their funds in the
debt instruments) in favour of a ULIP which invests its entire
corpus in equities.
In traditional insurance products, the sum assured is the corner
stone; in ULIPs premium payments is the key component.
ULIPs are remarkably alike to mutual funds in terms of their
structure and functioning; premium payments made are
converted into units and a net asset value (NAV) is declared for
the same.
Investors have the choice of enhancing their insurance cover,
modifying premium payments and even opting for a distinct
asset allocation than the one they originally opted for.
Also if an unforeseen eventuality were to occur, in case of
traditional products, the sum assured is paid along with
accumulated bonuses; conversely in ULIPs, the insured is paid
either the sum assured or corpus amount whichever is higher.
94
Insurance seekers have never been exposed to this kind of
flexibility in traditional insurance products and it would be fair
to say that ULIPs represent the new face of insurance.
While few would dispute the value-add that ULIPs can provide
to one's insurance portfolio and financial planning; the same is
not without its flipside.
For the uninitiated, understanding the functioning of ULIPs can
be quite a handful! The presence of what seem to be relatively
higher expenses, rigidly defined insurance and investment
components and the impact of markets on the corpus clearly
make ULIPs a complex proposition. Traditionally the insurance
seeker's role was a passive one restricted to making premium
payments; ULIPs require greater participation from both the
insured and the insurance advisor.
As is the case with most evolved investment avenues, making
informed decisions is the key if investors in ULIPs wish to truly
gain from their investments. The various aspects of ULIPs dealt
with in this publication will certainly further the ULIP investor's
cause.
Features of ULIP:
ULIP distinguishes itself through the multiple benefits that it

provides to the consumer. The plan is a one-stop solution
providing:
Life Protection
Investment and savings
Flexibility
Adjustable Life cover
Investment options
Transparency
Options to take additional cover against death due to accident
Disability
95
Critical Illness
Surgeries
Liquidity
Tax Planning
The Latest IRDA Guidelines dictate the

Following Requirements for ULIPs:
1. Term/Tenure
 The ULIP client must have the option to choose a
term/tenure.
 If no term is defined, then the term will be defined as '70
minus the age of the client'. For example if the client is
opting for ULIP at the age of 30 then the policy term would
be 40 years.
 The ULIP must have a minimum tenure of 5 years.
2. Sum Assured
On the same lines, now there is a sum assured that clients can
associate with. The minimum sum assured is calculated as:
(Term/2 * Annual Premium) or (5 * Annual Premium)
whichever is higher.
There is no clarity with regards to the maximum sum assured.
The sum assured is treated as sacred under the new guidelines; it
cannot be reduced at any point during the term of the policy
except under certain conditions - like a partial withdrawal
within two years of death or all partial withdrawals after 60
years of age. This way the client is at ease with regards to the
sum assured at his disposal.
96
3. Premium payments
If less than first 3 years premiums are paid, the life cover will
lapse and policy will be terminated by paying the surrender
value. However, if at least first 3 years premiums have been
paid, then the life cover would have to continue at the option of
the client.
4. Surrender value
The surrender value would be payable only after completion of
3 policy years.
5. Top-ups
Insurance companies can accept top-ups only if the client has
paid regular premiums till date. If the top-up amount exceeds
25% of total basic regular premiums paid till date, then the
client has to be given a certain percentage of sum assured on the
excess amount. Top-ups have a lock-in of 3 years (unless the
top-up is made in the last 3 years of the policy).
6.Partial withdrawals
The client can make partial withdrawals only after 3 policy
years.
7. Settlement
The client has the option to claim the amount accumulated in his
account after maturity of the term of the policy upto a maximum
of 5 years. For instance, if the ULIP matures on January 1,
2007, the client has the option to claim the ULIP monies till as
late as December 31, 2012. However, life cover will not be
available during the extended period.
8. Loans
No loans will be granted under the new ULIP.
97
9. Charges
The insurance company must state the ULIP charges explicitly.
They must also give the method of deduction of charges.
10. Benefit Illustrations

The client must necessarily sign on the sales benefit
illustrations. These illustrations are shown to the client by the
agent to give him an idea about the returns on his policy. Agents
are bound by guidelines to show illustrations based on an
optimistic estimate of 10% and a conservative estimate of 6%.
Now clients will have to sign on these illustrations, because
agents were violating these guidelines and projecting higher
returns.
How to Select the Right ULIP:

For a product capable of adding significant value to investors'
portfolios, ULIPs have far too many critics. We at Personalfn
have interacted with a number of investors who were very
disillusioned with their ULIPs investments; often the
disappointment stemmed from poor and inappropriate selection.
We present a 5-step investment strategy that will guide investors
in the selection process and enable them to choose the right
ULIP.
1. Understand the Concept of ULIPs:
Do as much homework as possible before investing in an ULIP.

This way you will be fully aware of what you are getting into
and make an informed decision.
More importantly, it will ensure that you are not faced with any
unpleasant surprises at a later stage. Our experience suggests
that investors on most occasions fail to realise what they are
98
getting into and unscrupulous agents should get a lot of 'credit'
for the same.
Gather information on ULIPs, the various options available and
understand their working. Read ULIP-related information
available on financial Web sites, newspapers and sales literature
circulated by insurance companies.
2. Focus on your Need and Risk Profile:
Identify a plan that is best suited for you (in terms of allocation
of money between equity and debt instruments). Your risk
appetite should be the deciding criterion in choosing the plan.
As a result if you have a high risk appetite, then an aggressive
investment option with a higher equity component is likely to be
more suited. Similarly your existing investment portfolio and
the equity-debt allocation therein also need to be given due
importance before selecting a plan.
Opting for a plan that is lop-sided in favour of equities, only
with the objective of clocking attractive returns can and does
spell disaster in most cases.
3. Compare ULIP products from various

Insurance Companies:
Compare products offered by various insurance companies on

parameters like expenses, premium payments and performance
among others. For example, information on premium payments
will help you get a better picture of the minimum outlay since
ULIPs work on premium payments as opposed to sum assured
in the case of conventional insurance products.
99
Compare the ULIPs' performance i.e. find out how the debt,
equity and balanced schemes are performing; also study the
portfolios of various plans. Expenses are a significant factor in
ULIPs, hence an assessment on this parameter is warranted as
well.
Enquire about the top-up facility offered by ULIPs i.e.
additional lump sum investments which can be made to enhance
the policy's savings portion. This option enables policyholders
to increase the premium amounts, thereby providing presenting
an opportunity to gainfully invest any surplus funds available.
Find out about the number of times you can make free switches
(i.e. change the asset allocation of your ULIP account) from one
investment plan to another. Some insurance companies offer
multiple free switches every year while others do so only after
the completion of a stipulated period.
4. Go for an Experienced Insurance Advisor:
Select an advisor who is not only conversant with the

functioning of debt and equity markets, but also independent
and unbiased. Ask for references of clients he has serviced
earlier and cross-check his service standards.
When your agent recommends a ULIP from a given company,
put forth some product-related questions to test him and also ask
him why the products from other insurers should not be
considered.
Insurance advice at all times must be unbiased and independent;
also your agent must be willing to inform you about the pros
and cons of buying a particular plan. His job should not be
restricted to doing paper work like filling forms and delivering
receipts; instead he should keep track of your plan and offer you
advice on a regular basis.
5. Does your ULIP offer a minimum guarantee?
100
In a market-linked product, protecting the investment's
downside can be a huge advantage. Find out if the ULIP you are
considering offers a minimum guarantee and what costs have to
be borne for the same.
Life Insurance Products at

Standard Chartered
Standard Chartered offers you a wide range of Life Insurance

Products from Bajaj Allianz Life Insurance Company, one of
India's leading Insurance companies.
Some of the key Life Insurance plans* available at Standard

Chartered Bank:
• New Secure First: An investment plan which offers

double advantage with flexibility
o This flexible Unit linked life insurance plan provides
you protection and participation in market-linked
returns.
o Double benefit of Sum Assured + Fund Value in case
of demise
o Choice of 5 investment options, 3 free switches and
premium redirection option
• New Unit Gain Plus: Flexible investments were never so

easy.
o Guaranteed life cover. Choice of 5 investment funds. 3
free switches allowed every year.
101
o Partial and Full withdrawals after 3 yrs.
o Unmatched flexibility to meet your changing lifestyle
and insurance requirements.
• Bajaj Allianz Care First: A medical insurance plan that

allows you to renew till the age of 65 years. Premium
guaranteed for the length of the each policy term of 3
years
o Generous hospital cover up to 7 Lacs.
o Cashless Treatment available across over 2000 leading
hospitals in over 200 towns across India.
o Specific Day Care treatments requiring less than 24 hrs.
Hospitalization is also covered under this plan.
• Protector: A Mortgage Reducing Term Insurance Plan.

Make you’re your family home remains with your family
for life.
o The loan protector plan from Bajaj Allianz Life
Insurance is mortgage reducing term assurance plan,
which at low premiums helps you to secure your family
against home loan.
o It is an economical way to protect the family from the
burden of repayment of the loan.
o Convenient premium payment options - Regular
Premium Payment & Single Premium Payment.
o Joint Life availability - the option to cover the co-
applicant of the loan under this plan.
• New Unit Gain Easy Pension Plus: Unique unit-linked

pension plan without life cover
102
o Available in Single Premium and regular Premium
payment mode.
o Option to take a tax-free lump sum up to 33% of Sum
Assured.
o Open Market option: Purchase immediate annuity from
Bajaj Allianz Life Insurance or any other life insurer.
o Choice of 5 investment funds.
o 3 free switches allowed every year.
• Child Gain: Insure today and secure your child’s

education and ambitions. This policy is available in 4
Options
o Child Gain 21 and Child Gain 21 Plus
 Child's education Plan upto Graduation
 105% Guaranteed Payouts + Bonuses
o Child Gain 24 and Child Gain 24 Plus
 Child's education Plan upto Post Graduation
 115% Guaranteed Payouts + Bonuses
o Family Income Benefit: In case of death or accidental
total permanent disability of insured, all future
premiums are waived and 1% of the sum assured is paid
monthly
o Start of Life Benefit: Enables a smooth start to your
child’s professional life, incase of an unfortunate death
or disability of the insured parent during the policy
term.
• Invest Gain: Invest Gain is a specially designed plan that

offers a unique combination of benefits that help you
develop a sound financial portfolio for your family.
o 4 Times Life Cover at a little extra cost.
o Limited premium payment option available.
103
o Available with a host of additional benefits including:
Family Income and Waiver of Premium Benefit
• Term Care: Term Assurance plan with return of

premium
o An economic way of providing life cover, this plan also
ensures the return of all premiums at the time of
maturity.
o Dual benefit - Life cover + Return of premiums paid on
survival at the end of the term.
o Single premium payment option available.
o The only pure term plan in the market to provide
Hospital Cash Benefit.
Comparative Analysis of Mutual

Funds and ULIP
Unit Linked Insurance Policies (ULIPs) as an investment

avenue are closest to mutual funds in terms of their structure
and functioning. As is the case with mutual funds, investors in
ULIPs is allotted units by the insurance company and a net asset
value (NAV) is declared for the same on a daily basis.
Similarly ULIP investors have the option of investing across
various schemes similar to the ones found in the mutual funds
domain, i.e. diversified equity funds, balanced funds and debt
104
funds to name a few. Generally speaking, ULIPs can be termed
as mutual fund schemes with an insurance component.
However it should not be construed that barring the insurance
element there is nothing differentiating mutual funds from
ULIPs.
Comparison between the two:

1. Mode of investment/ investment amounts
Mutual fund investors have the option of either making lump

sum investments or investing using the systematic investment
plan (SIP) route which entails commitments over longer time
horizons. The minimum investment amounts are laid out by the
fund house.
ULIP investors also have the choice of investing in a lump sum
(single premium) or using the conventional route, i.e. making
premium payments on an annual, half-yearly, quarterly or
monthly basis. In ULIPs, determining the premium paid is often
the starting point for the investment activity.
This is in stark contrast to conventional insurance plans where
the sum assured is the starting point and premiums to be paid
are determined thereafter.
ULIP investors also have the flexibility to alter the premium
amounts during the policy's tenure. For example an individual
with access to surplus funds can enhance the contribution
thereby ensuring that his surplus funds are gainfully invested;
conversely an individual faced with a liquidity crunch has the
option of paying a lower amount (the difference being adjusted
in the accumulated value of his ULIP). The freedom to modify
premium payments at one's convenience clearly gives ULIP
investors an edge over their mutual fund counterparts.
105
2. Expenses
In mutual fund investments, expenses charged for various

activities like fund management, sales and marketing,
administration among others are subject to pre-determined
upper limits as prescribed by the Securities and Exchange Board
of India.
For example equity-oriented funds can charge their investors a
maximum of 2.5% per annum on a recurring basis for all their
expenses; any expense above the prescribed limit is borne by
the fund house and not the investors.
Similarly funds also charge their investors entry and exit loads
(in most cases, either is applicable). Entry loads are charged at
the timing of making an investment while the exit load is
charged at the time of sale.
Insurance companies have a free hand in levying expenses on
their ULIP products with no upper limits being prescribed by
the regulator, i.e. the Insurance Regulatory and Development
Authority. This explains the complex and at times 'unwieldy'
expense structures on ULIP offerings. The only restraint placed
is that insurers are required to notify the regulator of all the
expenses that will be charged on their ULIP offerings.
Expenses can have far-reaching consequences on investors since
higher expenses translate into lower amounts being invested and
a smaller corpus being accumulated. ULIP-related expenses
have been dealt with in detail in the article "Understanding
ULIP expenses".
3. Portfolio disclosure
106
Mutual fund houses are required to statutorily declare their
portfolios on a quarterly basis, albeit most fund houses do so on
a monthly basis. Investors get the opportunity to see where their
monies are being invested and how they have been managed by
studying the portfolio.
There is lack of consensus on whether ULIPs are required to
disclose their portfolios. During our interactions with leading
insurers we came across divergent views on this issue.
While one school of thought believes that disclosing portfolios
on a quarterly basis is mandatory, the other believes that there is
no legal obligation to do so and that insurers are required to
disclose their portfolios only on demand.
Some insurance companies do declare their portfolios on a
monthly/quarterly basis. However the lack of transparency in
ULIP investments could be a cause for concern considering that
the amount invested in insurance policies is essentially meant to
provide for contingencies and for long-term needs like
retirement; regular portfolio disclosures on the other hand can
enable investors to make timely investment decisions.
ULIPs vs Mutual Funds

ULIPs Mutual Funds
Determined by the
Minimum investment amounts are
Investment amounts investor and can be
determined by the fund house
modified as well
No upper limits,
Upper limits for expenses chargeable
expenses determined
Expenses to investors have been set by the
by the insurance
regulator
company
Portfolio disclosure Not mandatory* Quarterly disclosures are mandatory
Generally permitted for
Modifying asset Entry/exit loads have to be borne by
free or at a nominal
allocation the investor
cost
107
Section 80C benefits
Section 80C benefits are available only
Tax benefits are available on all
on investments in tax-saving funds
ULIP investments
* There is lack of consensus on whether ULIPs are required to

disclose their portfolios. While some insurers claim that
disclosing portfolios on a quarterly basis is mandatory, others
state that there is no legal obligation to do so.
4. Flexibility in altering the asset allocation
As was stated earlier, offerings in both the mutual funds

segment and ULIPs segment are largely comparable. For
example plans that invest their entire corpus in equities
(diversified equity funds), a 60:40 allotment in equity and debt
instruments (balanced funds) and those investing only in debt
instruments (debt funds) can be found in both ULIPs and mutual
funds.
If a mutual fund investor in a diversified equity fund wishes to
shift his corpus into a debt from the same fund house, he could
have to bear an exit load and/or entry load.
On the other hand most insurance companies permit their ULIP
inventors to shift investments across various plans/asset classes
either at a nominal or no cost (usually, a couple of switches are
allowed free of charge every year and a cost has to be borne for
additional switches).
Effectively the ULIP investor is given the option to invest
across asset classes as per his convenience in a cost-effective
manner.
This can prove to be very useful for investors, for example in a
bull market when the ULIP investor's equity component has
108
appreciated, he can book profits by simply transferring the
requisite amount to a debt-oriented plan.
5. Tax benefits
ULIP investments qualify for deductions under Section 80C of

the Income Tax Act. This holds good, irrespective of the nature
of the plan chosen by the investor. On the other hand in the
mutual funds domain, only investments in tax-saving funds
(also referred to as equity-linked savings schemes) are eligible
for Section 80C benefits.
Maturity proceeds from ULIPs are tax free. In case of equity-
oriented funds (for example diversified equity funds, balanced
funds), if the investments are held for a period over 12 months,
the gains are tax free; conversely investments sold within a 12-
month period attract short-term capital gains tax @ 10%.
Similarly, debt-oriented funds attract a long-term capital gains
tax @ 10%, while a short-term capital gain is taxed at the
investor's marginal tax rate.
Despite the seemingly similar structures evidently both mutual
funds and ULIPs have their unique set of advantages to offer.
As always, it is vital for investors to be aware of the nuances in
both offerings and make informed decisions.
6. Liquidity
ULIPs score low on liquidity. According to guidelines of the

Insurance Regulatory and Development Authority (IRDA),
ULIPs have a minimum term of five years and a minimum lock
in of three years. You can make partial withdrawals after three
years. The surrender value of a ULIP is low in the initial years,
since the insurer deducts a large part of your premium as
109
marketing and distribution costs. ULIPs are essentially long-
term products that make sense only if your time horizon is 10 to
20 years.
Mutual fund investments, on the other hand, can be redeemed at
any time, barring ELSS (equity-linked savings schemes). Exit
loads, if applicable, are generally for six months to a year in
equity funds. So mutual funds score substantially higher on
liquidity.
110

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Final Report of Summer Training

Institute for Integrated Learning in Management

Sr. No. Topic Page No.

I want to place on record my gratitude to the

My special thanks to Mr. Nitish Diapnkar, Area Sales

I am greatly indebted to all those people who have helped

The Faculty of my institute deserves the praise for their

In the end, I take the responsibility for all my shortcomings.

In the last five decades the field of investments has

• How do people select an Investment option?

With the coming up of large number of multinational

By keeping in mind all these points the analysis of

Banking in India originated in the first decade of 18th

(Number of banks is in brackets.)

At the beginning of the 20th century, Indian economy was passing

Under these circumstances, many Indians came forward to set up

Number of banks Authorised capital Paid-up Capital

1914 42 710 109

• In 1948, the Reserve Bank of India, India's central banking

However, despite these provisions, control and regulations, banks

A second dose of nationalization of 6 more commercial banks

The new policy shook the Banking sector in India completely.

With the growth in the Indian economy expected to be strong for

In March 2006, the Reserve Bank of India allowed Warburg

Currently, India has 88 scheduled commercial banks (SCBs) - 28

Challenges faced by Indian Banking

Diffused Customer loyalty:

Strategic Options with Banks to cope with

 Investing in state of the art technology as the back bone of

 Leveraging the branch network and sales structure to

 Making aggressive forays in the retail advances segment

 Focusing on fee based income to compensate for squeezed

 Innovating Products to capture customer ‘mind share’ to

Public sector banks

• State Bank of India

Private sector banks

Regional Rural Banks (RRBs)

Other Public Sector Bank

Fact File of Banks in India:

Bank of India was founded in 1906 in Mumbai. It became the

STANDARD CHARTERED BANK

The Chartered Bank was founded by James Wilson following the

In South Africa, Standard, having established a considerable

Both banks – at that time still quite separate companies – survived

After having defeated the bid, Standard Chartered entered a period

From the early 1990s, Standard Chartered has focused on

Since 2000, Standard Chartered has achieved several milestones

Recent Alliances and Strategic Acquisitions

Standard Chartered completed the integration of its Bangkok

On 9th August 2006 Standard Chartered announced that it had

On 22 October, 2006 Standard Chartered announced that it has

In 2006, Standard Chartered in Bangladesh announced an alliance

On 23 August, 2007 Standard Chartered entered into an agreement

On 29th February 2008, Standard Chartered PLC announced it has

The acquisition of AEB provides Standard Chartered with an

Standard Chartered Bank is one of the three banks issuing

The bank supports marathons in many cities, including London

Standard Chartered Global Presence

The Americas Africa Asia Middle-East Europe

• Argentina • Botswana • Afghanistan • Bahrain • The Falklands

Standard Chartered Bank Limited India

Business of the Company:

Personal Banking: Offers personal financial solutions to meet the