Analysis of general banking activities of Standard Bank Limited

Abstract

Banks today are under great pressure to perform-to meet the demands of various groups. As banking organizations have grown in recent years, more and more of them have been forced to turn towards the money/capital markets to raise funds by selling stocks, bonds, and short term IOUs. In many cases, the growth of local deposits have simply been inadequate to fund the growing need of customers for loans and new services. But bank’s entry into the open market to raise funds means that their financial statements are increasingly being scrutinized by investors and by the general public. This development has placed management under great pressure to set and meet bank performance goals. Banking system of Bangladesh has gone through three phases of development-Nationalization; Privatization and Lastly Financial Sector Reform, Standard Bank Limited is one of the Bangladeshi owned Bank in the private sector. The whole working process of Standard Bank Limited is divided into 3 divisions as under: i) General Banking Division ii) Credit Division, and iii) Foreign Exchange Division. This report has been prepared based on the information taken from the General Banking Division as mentioned above. Though foreign remittance is one of the major parts of bank’s income but the loans and advances and other loan schemes play a vital role in success of Standard Bank Limited (SBL). SBL offers the clients deposit scheme, loan scheme, remittance service and the like. In deposit scheme they use to offer Fixed Deposit Receipt (FDR), Regular Deposit Program (SRDP), and Special Fixed Deposit scheme (DI+). It offers special loan scheme and general loans and advances in loan scheme. In special loan scheme bank offers consumer scheme, lease financing, micro credit financing and special housing loan. General sector contains conventional cash credit, secured overdraft and regular service.