An Evaluation of Consumer credit of Standard Chartered Grindlays Bank

This thesis submitted in partial fulfillment of the requirements for the degree of Bachelor in Business Administration of East West University, Dhaka, Bangladesh.The objective of this project is to evaluate the consumer credit of SCGB. Bangladesh is an underdeveloped country. There are a large number of banks and financial institutions are working to help the country people and help the country to be solvent economically. Standard Chartered Grindlays Bank is one of the major financial institutes in Bangladesh, which is operation with full range of banking and financial activities in all over the country. We all know that it has a worldwide image, which is the biggest strength for them. It can easily attract the people with its image and reputation. It is one of the oldest foreign banks and has the wide network in metropolitan cities of Bangladesh. It differentiates itself from its competitors be the quality of its service and professionalism. In the SCGB, planning is accomplished by the corporate head office, which is situated in Mumbai. But in Bangladesh SCGB sets only operational plan. As the SCGB is a multinational organization, the corporate head office dominates the strategic planning activities. SCGB in Bangladesh is in the maturity stage. So, they are planning for long term. Now a day’s some foreign banks and some private banks are the major threat for this bank. Those banks are delivering the same kind of service compared to that of SCGB in this financial market. Today the customers are more conscious and concern about the service charge, pricing and quality of service. So the high service charge is becoming the headache of this bank day by day. July 31, 2000 was a historic day for ANZ Grindlays bank. Standard chartered bank expended its horizons with the acquisition of ANZ Grindlays. Now the new name of this bank is standard chartered Grindlays (SCGB). Till August 18, 2001 both banks were functioning and operating as a separate legal entity. But from August 19, 2001 these two banks start operating and functioning under the same server. And the main thing is that they start serving the same service to customer. Heavily dependents on parents company for decision making is now at all a major problem for this bank. In my training period I was involved directly with the customer credit department. In this department I got to know all the process and rules that how SCGB provides loan to their customers. On the other hand I got lots of information about their requirements of customers’ loan and what types of services they want. Though it is true that it is very difficult to provide loan to all the applicant, but the employees of the bank are trying their best give better service along with the assurance of getting the money back are trying their best to give better service along with the assurance of getting the money back from their customers. I have discussed the overall function of the consumer credit development and its scope. I also recommended some few guidelines to improve the service of this department. In my project, primary data were collected through direct customer complaints. And I hope that this report will help to improve a lot of the CC ( Consumer Credit) department and to improve the quality of the services that is the ultimate object of the banking institution. After analyzing all points I have mentioned some findings. These are: Customers are not fully satisfied with the service that provider by the CC department. There is a gap between the front and back office. Customers want more sales and service centre so that they can get services everywhere and this services is including ATM facilities. Most of the customers want that the front office (branches) should be more efficient and systematic while delivering the service. Most of the time customer has to face a long queue and also show dissatisfaction about the service of the branches. Basically after the acquisition between SCB & SCGB, customers were facing more problem rather than before. They have a huge complain against SCGB. According to the customer the service become decline. Some problems have arisen in terms of “when SCGB promise to do something is a certain timer they do so”. The officials have to be sincere about the timing they have promised to deliver their service. There is a lack of system access to view the account statement of customers, which makes the branch employees contacting the back office employees all the time. For this the back office people can’t do their main duty smoothly and efficiently. Banking is a business that is service oriented and they should concentrate more about their service and duties. The officials should be more polite and prompt while delivering the service. Some customers want better service within the shorter period of time. But there is shortages of advisors and for that reason customer have to wait for a long time to get the service. So the Standard Chartered Grindlays bank should recruit more people in processing the loan service, if they want to satisfy their existing customers. Despite all these strength the major weakness of the bank is its long term service. The customers are now very much dissatisfied with this aspect of this bank in a lengthy queue of customers to get a loan of the bank. This lengthy queue of the customers is causing very much dissatisfaction among different section of the customers