General Banking HSBC

R E P O R T

OO NN

BBANKINGANKING A ANDND B BANKANK AACCOUNTSCCOUNTS

Prepared for,M. Amirus Salat

Lecturer

Department of AIS

University of Dhaka

Prepared by,

Group Ten

10th Batch [Section-A]

BBA Program

Department of AIS

University of Dhaka

Date of Submission: March 3, 2007

GENERAL BANKINGGENERAL BANKING

ININ

HSBC BANGLADESHHSBC BANGLADESH

CCOURSEOURSE N NUMBERUMBER: 3101: 3101

CCOURSEOURSE: T: THEORYHEORY & P & PRACTICESRACTICES OFOF

BBANKINGANKING & B & BANKANK A ACCOUNTSCCOUNTS

DDEPARTMENTEPARTMENT O OFF AIS AIS

UUNIVERSITYNIVERSITY OFOF D DHAKAHAKA

GROUP TEN:MEMBERS

Mohammad Samsul Alam [10025]

Farhana Sultana [10035]

Kazi Rahala Jahan Noor [10037]

Md. Saidul Kabir Khan [10053]

Md. Abu Isha Bhuiyan [10055]

Mohammad Al Amin [10070]

Farhana Amin Tonny [10084]

Leena Afroz Mostofa [10085]

March 3, 2007

M. Amirus Salat

Department of AIS

University of Dhaka

Dear Sir,

We have the honor to present the report on General Banking

in HSBC that you asked us to submit on March 3, 2007.

This report is concerned with the major functions of general

banking and its practical implementation in HSBC Bangladesh.

HSBC Bangladesh has numerous areas of operation of the bank,

i.e. general banking, credit sanction and foreign exchange

operation. This report focuses on the study of general banking

operation of the bank.

It was our pleasure to complete this report. Our heartiest

gratitude goes to you for your kind support and encouragement.

We have prepared this report with utmost sincerity and earnest

effort. Please let us know if you have any query regarding the

report.

With regards,

Yours sincerely,

The members of Group Ten

10th Batch, Section-A

BBA Program

Department of AIS

University of Dhaka

PREFACEPREFACEBank is the largest mobilizer of surplus

domestic savings. It is one of the vital financial institutions for

a country. It constitutes a major force in the financial system.

Bangladesh is no exception in this case. In Bangladesh the

financial institutions include various banks and Non-banking

financial institutions i.e. ICB, insurance and leasing

companies. Here banking sector comprises of central banking

i.e. the Bangladesh Bank, commercial banking i.e.

nationalized, private and foreign sector banks; and

specialized banking like BSB, BSRS, BKB, RAKUB etc.

Banks help capital formations and the capital formations help

investments in the country. The investment in its turn helps

industrialization leading towards creation of wealth of the

country. And the wealth finally takes the country on road to

progress and prosperity.

This report analyzes the commercial sector banking through a

study on HSBC Bangladesh, one of the leading foreign

commercial banks in Bangladesh. It emphasizes on significant

aspects of general commercial banking of HSBC Bangladesh

i.e. Personal Financial Service, Special Savings Plan: My

Future, Corporate Banking, HSBC premier Banking and Local

Banking: Amanah.

- iii -

AcknowledgementsWe gratefully acknowledge the assistance of

Mr. M. Aminus Salat of Department of AIS, University of

Dhaka; without whom this report would have been

incomplete. His continuing generous encouragement and

moral support have motivated us to do better presentation.

We earnestly thank him for this special endeavor to enhance

business communication skill and report writing. This attempt

also helped us to do comprehensive study on commercial

banking and boost our knowledge.

A special recognition goes to Monjor Hossain Dipto, Senior

System Supervisor, HSBC Bangladesh for his cooperation in

preparing the report.

We would like to recognize the contributions of Saiful Islam,

Branch Manager, HSBC Bangladesh.

- iv -

Preface V

Acknowledgements VI

Executive Summary IX

1.0 Introduction 01

2.0 Research Methodology 01

3.0 Company Overview: HSBC Bangladesh 02

4.0 Areas of Operation 03

5.0 Personal Financial Assistance 03

5.1 Managing Money 04

5.1.1

Savings Account 04

5.1.2 Savings Plus Account 05

5.1.3 Current Account 06

5.1.4 Daily Money Management 07

5.1.5 ATM Cards 07

5.1.6 Phone Banking 09

5.1.7 PowerVantage 09

5.1.8 CEPS 10

5.1.9 Online Branch Banking 11

5.1.10 Credit Card 13

5.2 Savings and Investment 14

5.2.1 Monthly interest bearing time deposit 15

5.2.2 Investment Watch 15- v -

5.2.3 Term Deposit 16

5.3 Traveler’s Cheque 17

6.0 Special Savings Plan: My Future 18

6.1 Children Savings Plan 18

6.2 Education Saving Plan 20

6.3 Family Protection Plan 21

6.4 Holiday Savings Plan 22

6.5 Peace of Mind Savings Plan 23

6.6 Retirement Savings Plan 24

7.0 Corporate Banking 25

7.1 Import Service 25

7.1.1 Import Collection 26

7.1.2 Shipping Guarantee 26

7.2 Export Service 27

7.3 Trade Express 27

7.4 Payment and Collection 28

7.5 Hexagon Cheque Writer 39

7.6 Electronic Banking 30

8.0 HSBC Premier Banking 31

9.0 Local Banking: Amanah 32

9.1 Amanah Current Account 33

9.2 Amanah Import Finance 34

8.0 Conclusion 35

References 37

- vi -

EXECUTIVE SUMMARYEXECUTIVE SUMMARYThe authors of

this report have tried to figure out the general banking

services provided by HSBC Bangladesh. HSBC has positioned

itself as the world’s local bank. It started operation in 1996 in

Bangladesh and currently has a network of 5 branches as the

2nd largest foreign commercial bank in the country. HSBC

Bangladesh provides a variety of services in different

categories, like Personal Financial Assistance, Special Savings

Plan: My Future, Corporate Banking, HSBC Premier Banking

and Local Banking: Amanah.

Personal Financial Assistance have been categorized as:

Managing Money Service i.e. savings account, savings plus

account, current account, ATM cards, phone banking, daily

money management, credit card service, Online Branch

Banking, PowerVantage and Corporate Employees Privilege

Scheme; Borrowing Money Service [part of credit sanction

function], i.e. personal secured loan and personal secured

credit; Savings and Investing Service i.e. monthly interest

bearing time deposit, Investment Watch and term deposit;

and Traveler's Cheque Service.

- vii -

Special Savings Plan or My Future comprises of the

Education Savings Plan, Family Protection Plan, Children

Savings Plan, Holiday Savings Plan, Retirement Savings Plan

and Peace of Mind Savings Plan.

Corporate Banking offers facilities like Import Assistance,

DP/DA Purchase, Guarantee & Bonds, Business Banking,

Export Assistance, Payment Collection, Trade Express,

Hexagon Cheque Writer Service and several other services.

HSBC Premier Banking is a global service proposition

reserved for clients who maintain an average monthly credit

balance of Tk. 4 million in Current, Savings or Fixed Deposit

accounts.

HSBC Amanah Banking is a part of Local Banking in full

compliance with the Shariah principles with interest free

deposit and loan.

- viii -

General Banking in HSBC Bangladesh

1.0 INTRODUCTION

In today’s aggressive economic system there has been a call for

mobilizing surplus fund to deficit business unit. A bank is a

business organization that accepts money and collects and

honors cheques for its clients, keeps current account and does

all sorts of banking functions i.e. transferring, paying, lending,

investing, dealing, exchanging and servicing to mobilize idle

fund in the economy to achieve growth and stability. As a

commercial bank HSBC Bangladesh is no different. To build the

right relationship with the clients of the diversified taste it is

indispensable for the banks to offer lucrative and unique

commercial services and schemes. This report focuses on the

general banking provided by HSBC Bangladesh - a leading

multinational banking organization in Bangladesh. HSBC

Bangladesh, after commencement of its operation in

Bangladesh in 1996, has been till date the second largest

foreign bank in Bangladesh. HSBC Bangladesh has a network of

5 branches with 11 ATMs and 5 sales and service centers in the

country with services ranging from current account to fixed

deposit account, from credit card, ATM & Easy Pay service to

phone & online banking, from investment & corporate banking

to a variety of credit and savings schemes to meet the demand

from clients of all walks of life.

2.0 RESEARCH METHODOLOGY

This report is concerned with both the theoretical and empirical

study on HSBC Bangladesh’s commercial banking. For the

theoretical review various journals have been taken under

consideration. For practical case study on HSBC, both primary

and secondary data have been used. For primary source, the

interviews with the HSBC Bangladesh personnel and

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questionnaire among bankers have been used. Articles on

various journals and newspaper reviews and advertisements are

taken as secondary sources of data. Websites on related

banking issues have served as reference to some data.

3.0 COMPANY OVERVIEW: HSBC

HSBC claims to be the world's local bank. Headquartered in

London, HSBC is one of the largest banking and financial

services organizations in the world. HSBC's international

network comprises over 9,500 offices in 76 countries and

territories in Europe, the Asia-Pacific region, the Americas, the

Middle East and Africa. It is a part of HSBC Group.

With listings on the London, Hong Kong, New York, Paris and

Bermuda stock exchanges, shares in HSBC Holdings plc are held

by nearly 200,000 shareholders in some 100 countries and

territories. The shares are traded on the New York Stock

Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced

technology, including a rapidly growing e-commerce capability,

HSBC provides a comprehensive range of financial services:

personal financial services; commercial banking; corporate,

investment banking and markets; private banking; and other

activities.

The HSBC Group has an international pedigree which is unique.

Many of its principal companies opened for business over a

century ago and they have a history which is rich in variety and

achievement. The HSBC Group is named after its founding

member, The Hong Kong and Shanghai Banking Corporation

Limited, which was established in 1865 to finance the growing

trade between China and Europe. The HSBC corporate character

2


defines the values and principles inherent in all everyday

dealings.

HSBC has been named as the "Best consumer bank" by Global

Finance magazine at its annual awards for the world's best

banks. Global Finance magazine chose the World's Best Banks

based on performance over the past year and other subjective

criteria including reputation and management excellence. The

editors of Global Finance made all the selections after extensive

consultation with bankers, corporate financial executives and

analysis throughout the world.

HSBC commenced its business in Bangladesh as HSBC

Bangladesh in 1996. It operates from 9.00 a.m. to 3.00 p.m.

from Sunday to Thursday. Having head office in Anchor Tower,

Dhaka HSBC Bangladesh has 5 branch offices including Amanah

Service Office in Dhaka and one branch in Chittagong.

4.0 AREAS OF OPERATION

HSBC Bangladesh is committed to offer an entire variety of

financial services: from personal financial services to corporate

banking; from investment banking and markets to foreign

exchange; and other activities. This report emphasizes on

general banking area of HSBC Bangladesh.

These activities can be classified as the following groups:

Personal Financial Assistance

Special Savings Plan: My Future

Corporate Banking

HSBC Premier Banking

Local Banking: Amanah

Other Services:

Investment Banking

Bill Purchase and Discounting

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Locker Service

Underwriting

5.0 PERSONAL FINANCIAL ASSISTANCE

HSBC’s Personal Financial Assistance is targeted to the mass

clients for their general needs.

This service comes under four categories:

Managing Money

Borrowing Money

Savings and Investing

Traveler's Cheque

Borrowing money service is the part of credit sanction function.

Thus it is not discussed here in the report.

5.1 MANAGING MONEY

Managing Money Service comprises of:

Savings Account

Savings Plus Account

Current Account

Daily Money Management

ATM Cards

Phone Banking

PowerVantage

Corporate Employees’ Privilege Scheme [CEPS]

Online Branch Banking

Credit Card

5.1.1 SAVINGS ACCOUNT

Savings Account is a secure, rewarding and accessible way to

manage routine money matters effectively. HSBC Savings

4


Account allows its clients to complete any number of

transactions without charge, penalties or a reduction in credit

interest.

SALIENT FEATURES:a. No Ledger Fees

b. No limit on number of transaction:

No matter how many transactions the clients make in

savings account, there is no charge involved and no loss

on interest earned.

c. ATM Service:

The clients have the facility of being able to access the

account through an ATM card, without having to visit a

branch24-hours a day, 7 days a week.

d. Phone Banking:

HSBC believes wherever the clients are in the world, they

are just a phone call away. HSBC PhoneBanking Service

lets them conduct their banking transactions - 24-hours a

day, seven days a week, 365 days a year.

e. Interest on daily balance:

HSBC’s interest rate structure encourages saving. Interest

is calculated daily and credited to the client’s account

every 6 months.

f. Personalized Cheque Book:

The clients also receive a free personalized cheque book

when they open a savings account with HSBC.

g. Minimum Balance:

The clients should maintain a balance of TK.50,000 to

receive daily interest.

INTEREST RATE:Interest Rate for savings account is 3.75% for savings of 1 lac to

10 lac and 4% for savings above 10 lacs.

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DOCUMENTS REQUIRED:a. Completed account opening form.

b. Passport size photograph for each account holder.

c. Proof of identification such as passport, driving license or

voter's ID.

5.1.2 SAVINGS PLUS ACCOUNT

With HSBC's Savings Plus Account, the clients can earn their

interest from their account on a monthly basis rather than at

the end of six months.

SALIENT FEATURES: Interest will be paid at the end of each month instead of six

months

Free ATM card with daily withdrawal limit of TK.50,000

Free phone banking facilities

Free personalized cheque-book

Monthly statements

The scheme is designed for the benefit of the persons who

intend to meet the monthly budget of their families from

the income out of their deposit.

Also suitable for investment of fund of Trusts and

Foundations, which award monthly scholarships/ stipends

to students, etc.

In case of death of a depositor, the account shall cease to

be operative and the amount deposited so far shall be paid

to the nominee, and in the absence of nominee, to the legal

heirs of deceased as per rules in force.

Payment will be made after deduction of taxes as fixed by

the Govt. from time to time

ELIGIBILITY: Any resident Bangladeshi above 18 years of age is eligible to

open a Savings Plus Account.

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TERMS AND CONDITIONS: Minimum opening balance is Tk. 500,000

Interest payable only for balance of Tk. 500,000 or above.

5.1.3 CURRENT ACCOUNT

It's easy to manage daily finances with an HSBC current

account. Making payments has never been so simple. With a

current account, the client does not need to rush around to pay

his bills. He simply has to write out a cheque and mail it at his

convenience. There is also ATM Card facility available so that he

has access to his account and a wide range of banking

transactions, 24x7.

SALIENT FEATURES:a. Easy Pay Machines:

Easy Pay machines offer clients and non-clients an easy,

convenient and quick way to make deposits, payments

and instructions. The Easy Pay provides services 24-hours

a day, seven days a week.

b. ATM Facility:

A current account holder is empowered to access his

account through an ATM card, without having to visit a

branch. He can access his current account via ATM 24-

hours a day, seven days a week.

c. Phone Banking

d. Personalized Cheque-book

e. No restriction for number of transaction and

balance in the account

f. Overdraft facility for clients in some cases

INTEREST RATE:

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No interest would be given for current account balance

DOCUMENTS REQUIRED:a. Completed account opening form.

b. Passport size photograph for each account holder.

c. Proof of identification such as passport, driving license or

voter's ID.

5.1.4 DAILY MONEY MANAGEMENT

At HSBC the bankers realize how busy the clients are in today's

fast-paced world. To make their life simpler, they have created

different channels to bring banking closer to the clients. Now

the clients no longer have to visit their branches to complete

their daily banking transactions. Rather they can access a host

of services 24-hours a day from wherever they are. HSBC offers

easy pay machines, ATM banking, phone banking for normal

clients and online banking for valued clients. Easy Pay is a

sophisticated bill payment machine developed with a touch

screen formula enabling both HSBC and Non-HSBC customers to

pay their utility bills, deposits, HSBC Credit Card payment etc.

5.1.5 ATM SERVICE

ATM Card is simple to use, convenient, versatile and totally

reliable. Using ATM Card the clients can perform a wide range of

transactions like:

Withdrawing cash and deposit cash:

The clients can withdraw or deposit cash in their accounts,

at any time of the day and night.

ATM Withdrawal to some limit:

Maximum withdrawal limit is TK. 50,000 per day per card.

Minimum limit of TK. 500 must be withdrawn.

Transferring of Funds:

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The clients are empowered to transfer funds between their

own accounts. For example money can be shifted from their

current account to their savings account or vice-versa.

Checking Balance:

The clients can check the balance on their current account

or savings accounts.

Changing ATM PIN:

The clients can change ATM PIN to a six-digit number of

their choice.

Viewing details of their last eight transactions:

ATM facilitates viewing last eight transactions.

Ordering statements / new cheque books:

Through ATM ordering a copy of bank statement or a new

chequebook is easy and convenient. The clients’ request will

be processed within a few working days.

Making payments to other HSBC clients:

HSBC also offers ATM card against foreign currency

accounts.

With this card, they can withdraw cash from their

accounts, at any time of the day or night in 800,000

ATMs worldwide.

Available for foreign currency current accounts

(Bangladesh International) both for resident and non-

resident Bangladeshis.

Complies with Bangladesh Foreign Exchange

Regulations.

5.1.6 PHONE BANKING

Phone Banking is designed for total privacy. To ensure the

confidentiality of transactions, accounts can be activated only

9


by keying in both Phone Banking Number (PBN) and Personal

Identification Number (PIN). The clients can also change his PIN

as often as they like for added security. Simple-to-follow

instructions will guide them all the way through multiple

transactions. For added convenience HSBC has developed a

Quick Search function to speed various transactions.

Phone banking service allows the clients to perform a variety of

transactions, from fund transfers to term deposit placements:

Checking their account balance

Transferring funds between their accounts

Ordering statements or new cheque books

Reporting a lost or stolen card

Opening or renew a time deposit

Enquiring about foreign exchange rates

Making third party payments

5.1.7 POWERVANTAGE

HSBC recognizes the numerous demands on lifestyle and have

developed a banking package that saves both time and energy.

With PowerVantage the clients receive special and immediate

assistance at HSBC’s Bank branches, while a host of services

ensures that they control their finances easily and efficiently.

PowerVantage makes banking effortless, allowing them to get

on with their busy day.

SALIENT FEATURES:a. Free Personal Accident Insurance Cover:

As a PowerVantage client, the clients will receive accident

insurance cover for the amount of TK. 100,000. The

Premium will be covered by the Bank.

b. Endorsement of Foreign Currency:

He can endorse foreign currency in his passport against

the travel quota absolutely free of charge.

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c. Special Loan Rates:

He is entitled to special reduced rates on a Personal

Installment Loan, and a discount on the processing fee for

a Car Loan.

d. Auto sweep of Funds:

To benefit from a higher rate of interest, he can issue

standing instructions to have funds transferred between

his current and savings accounts and time deposits.

e. Standing Instructions:

He can set up standing instructions of any fixed amount to

be paid to selected parties' accounts with HSBC, free of

charge.

f. Special ATM Cards:

PowerVantage ATM Card gives the client a high cash

withdrawal limit of up to TK. 50,000 at any of HSBC's ATMs

across Bangladesh.

g. Monthly Composite Statements:

A monthly PowerVantage statement helps the client keep

track of all his accounts with HSBC.

ELIGIBILITY:To be eligible for a PowerVantage account, one needs to maintain an average deposit

balance of TK. 200,000.

FEES AND CHARGES

A service charge of TK. 500 will be levied if the average deposit

falls below the stipulated limit for a six-month period. Annual

fee is TK.500 only.

5.1.8 CEPS

The Corporate Employees Privilege Scheme [CEPS] is a unique

and exclusive package of personal banking products and

services offered to the employees of selected companies. CEPS

11

http://www.hsbc.com.bd/bd/personal/borrow/carloan.htm

http://www.hsbc.com.bd/bd/personal/borrow/piloan.htm



provide employees with easy and quick access to HSBC’s wide

range of personal loan products at specially discounted rates.

CEPS offers preferential terms and pricing on the following

products and services:

Savings Account

Personal Installment Loan

Car Loan

PowerVantage Account

Home Loan

KEY FEATURES:Product

Accounts

Personal Installment Loan

Relationship Fee

ELIGIBILITY: Anyone can enjoy the benefits of CEPS if his company has

an AutoPay salary disbursement arrangement with HSBC,

which can be easily arranged and is free.

To join the CEPS scheme, he should have a minimum

monthly salary of TK.15,000

5.1.9 ONLINE BRANCH BANKING

The Bank has set up a Wide Area Network [WAN] across the

country to provide online branch banking facility to its valued

clients. Under the Scheme, clients of any branch shall be able to

do banking transaction at other branches of the bank.

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Under this system a client will to be able to do following types of

transactions:

Cash withdrawal from his/her account at any branch of the

Bank irrespective of location.

Cash deposit in his/her account at any branch of the Bank

irrespective of location.

Cash deposit in other's account at any branch of the Bank

irrespective of location.

Transfer of money from his/her account with any branch of

the Bank.

Any amount can be deposited or transferred. In the

system, however, at present there is a limit for cash

withdrawal through bearer or by account holder himself.

TERMS & CONDITIONS OF ONLINE BRANCH BANKING

SERVICE

It is designed to serve its valued clients. Under this system, the

clients shall be able to do the following type of transactions:

Cash withdrawal from their accounts at any branch of the

Bank.

Deposit in their accounts at any Branch of the Bank.

Transfer of money from their accounts to any other

account with any Branch of the Bank.

TRANSACTION LIMIT

Maximum ceiling of cash withdrawal by self is Tk. 1000000

only per transaction.

Maximum ceiling of cash withdrawal by third party

[bearer] per transaction is below the amount fixed by the

client

Cash deposit/transfer by online transaction is unlimited.

ONLINE TRANSACTION MEMBERSHIP FEE

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Membership fee is Tk. 50/- per month for the Online Branch

Banking Service.

CHARGES FOR ONLINE TRANSACTION There will be no charge for transaction within the city

where the account is domiciled.

Fee Tk. 50/- will be realized from the client’s account for

each remote transaction [inter-city] for amount upto Tk. 1,

00,000.

Fee at the rate of 0.075% will be realized from the client’s

account for each remote transaction of amount more than

Tk. 1, 00,000.

5.1.10 CREDIT CARD

HSBC's co-branded credit card with Prime Bank gives the client

the freedom to pay for goods and services without the hassle of

carrying cash. The card is accepted at shops, restaurants,

hotels, airlines and travel agents, departmental stores, hospitals

and diagnostic centers, practically anywhere in Bangladesh

displaying the MasterCard logo. Local cards can be used in

Bangladesh only.

Prime Bank Limited obtained Principal Membership of Master-

Card International in the month of May 1999. Within a period of

6 months, HSBC successfully launched Master Card-Credit Card

which created a new dimension in its client service and

consumer financing.

The Special feature of the HSBC Master Card is that its bears

the card holder’s photo on the card, which is the first of its kind

in Bangladesh and adds security against misuse.

HSBC Bangladesh issues 4 types of cards:

Gold Local

Gold International

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Silver Local

Silver International

FEATURES: The card holder can enjoy between 20 to 50 days of

interest free credit from the date of each transaction;

After receiving monthly statement, he can either choose to

pay full or a minimum of 8% of the current balance shown

in the statement or TK. 500 whichever is higher;

Interest is 2.5% per month and will be calculated on a

daily basis;

Credit limit range from TK. 50, 000 to TK. 200, 000;

Annual fee is TK. 2, 000;

HSBC Bangladesh ensures high level of security by

inserting the client’s Photograph on the Card.

He can get additional first supplementary card for free,

with a shared credit limit;

No joining/administrative fees;

Cash advance facilities;

1, 39, 00,000 locations accept MasterCard worldwide.

ELIGIBILITY: He should be between 21 and 65 years of age.

He should have a minimum monthly income of TK. 25,000.

He needs to be an account holder of HSBC.

PROCEDURE OF APPLICATION:To apply for a Credit Card the applicant can visit any HSBC

branch in Dhaka or Chittagong or call HSBC Call Centre for more

information. HSBC will be obliged to help him with his

application procedure. Applications should be sent through

HSBC branches

5.2 SAVING AND INVESTING

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The savings rate in Bangladesh is one of the lowest in the world.

In order to improve the savings rate, Financial Institutions

responsible for mobilization of savings should offer attractive

Savings Account Schemes so that the marginal propensity to

save increases. The savings do not, of course, depend only on

the quantum of income but largely depend on the habit of

savings of the people. Keeping this in mind HSBC offers the

following services:

Monthly Interest Bearing Time Deposits

Term Deposits

Investment Watch

5.2.1 MONTHLY INTEREST BEARING TIME

DEPOSIT

It is a simple, safe and convenient way to make the client’s

money grow, providing his with the benefits of attractive

interest rates, security, convenience and flexibility.

KEY FEATURES: Interest on a monthly basis with the security of a fixed

deposit account;

Option of keeping the Time Deposit for a maximum period

of 2 years, which will be renewed automatically every

year;

A minimum deposit balance of TK. 500,000 (Taka five lacs)

to open the account

Monthly interest earned can be transferred to another

nominated account

Better rates than normal savings account

Higher rate than 1- month time deposit account's rate

Free ATM Card for new accounts

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The interest earned will be forfeited if the account is

prematurely encashed and Savings Accounts interest rate

will be applied.

The interest earned will be forfeited if the account is

closed before the completion of one month.

Application can be made by visiting one of HSBC branches

in Dhaka or Chittagong to open the account or calling

HSBC Call Centre for their assistance.

5.2.2 TERM DEPOSIT

Term Deposits from HSBC provide attractive rates, security,

convenience and flexibility.

KEY FEATURES: Minimum balance TK.100,000;

Flexible deposit periods to suit the customer’s needs

The client can place Term Deposits with HSBC, for varying

periods of time, 1, 3, 6 or 12 months as per his needs.

High interest with deposits

The client can earn higher interest on term deposits with

HSBC’s attractive rates. Interest is calculated from the

date of the deposit until maturity, at the rate applicable

when the deposit is first placed or renewed, and is paid

when the deposit matures. Larger amounts attract extra

interest, so the more the client deposits, the more he

earns.

Renewal, transfer or withdrawal facilities

On maturity of Term Deposit, HSBC will automatically

renew it with the interest earned. Alternatively, the client

can transfer it to any of his accounts with HSBC, or

withdraw the Term Deposit and interest.

DOCUMENTS REQUIRED:

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Completed account opening form.

Passport size photograph for each account holder.

Proof of identification such as passport, driving license or

voter's I.D.

5.2.3 INVESTMENT WATCH

HSBC helps to invest in world money and capital market

through internet. It provides with the online assistance in

gathering information about money transaction in share market.

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Stockpoint, its content providers, and hsbc.com, inc., are not

liable for any damages the clients may incur from their use of

the site. Although Stockpoint makes every reasonable effort to

do so, Stockpoint, its content providers, and hsbc.com, inc.,

make no representations that the information presented is

accurate, complete or timely.

5.3 TRAVELER’S CHEQUE

Traveler’s Cheques are available in all major currencies and

eliminate the need to carry cash while traveling overseas.

Unlike cash, Traveler’s Cheques are safe and will be

immediately replaced if lost or stolen. Traveler’s Cheques

issued by HSBC are accepted worldwide, giving the clients

spending power wherever the clients are.

KEY FEATURES: Secure and convenient, as they can be encashed at banks

and at most hotels and shops in any country or city

Handy to carry

Accepted globally

Easy-to-use

Ideal to budget

Available in most major currencies in denominations of 50

and 100

FEES: 1% commission of the total amount endorsed.

Passport endorsement fee is TK.250.

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DOCUMENTS REQUIRED: An HSBC account in Bangladesh

Passport and valid visa

Confirmed return air tickets

6.0 SPECIAL SAVINGS PLAN: MY

FUTURE

My future is the unique savings plan in some distinguished

areas. Proper planning today holds the key to a better

tomorrow. Anyone can make a difference in his life by rewriting

future with My future savings plans. It is like a fixed deposit.

Therefore it yields higher interest rate. The interest as well as

the balance can be recovered fully only after the maturity

period.

HSBC Bangladesh offers six prominent savings plans:

Children Saving Plan

Education Savings Plan

Family Protection Plan

Holiday Savings Plan

Peace of Mind Savings Plan

Retirement Savings Plan

6.1 CHILDREN SAVINGS PLAN

Children are very important to anyone. However, there may be

times when the parents are not able to fulfill their requirements.

Now, with a Children's Savings Plan from HSBC, they can save

for their child's future. Offering exclusive benefits catered

towards their child, the savings plan is the perfect fit to their

lifestyle.

KEY FEATURES:

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Attractive interest rates

No sign-up fee

No penalty for missed installments

The Plan Holder can purchase as many units as he desires

Initial deposit of TK. 10,000 with monthly deposits of TK.

5,000 [1 unit]

Any tenure up to the child being 18 years of age

FREE GIFTS Stuffed toys for children less than 3 years.

Small HSBC school bags for children between 3-8 years.

Big HSBC school bags for children above 8 years.

ADDITIONAL BENEFITS TK.500 gift voucher/unit each year if all 12 monthly

installments are deposited on time in that year.

TK.400 gift voucher/unit each year if at least 10 monthly


ELIGIBILITY Parents with children below 18 years who are Bangladeshi

can open children's savings plan.

TERMS AND CONDITIONS Bank reserves the right to close the plan if the client

misses 3 consecutive installments.

If the plan is closed within one year, clients will get the

deposited amount only and no interest will be paid for the

plan. If the plan is closed after one year, clients will get

the deposited amount along with the accrued interest up

to the time of closure.

Discontinuation fee will be charged if the plan is closed

before two years.

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6.2 EDUCATION SAVINGS PLAN

People can now take advantage of the Education Savings Plan

from HSBC and plan for their children’s future accordingly. They

can also save for their own future educational plans.

BENEFITS Attractive interest rates.

No sign-up fee.

No penalty for missed installments.

The client can purchase as many units as he desires.

Initial deposit of TK. 10,000 with monthly deposits of TK.

5,000 [1 unit].

He can choose from flexible tenures of 1, 2 or 3 years.

He will receive a free gift voucher of ETC for every plan.

ADDITIONAL BENEFITS For a 1-year scheme TK.100 bonus/unit will be paid at the

end of the tenure if any 10 installments are deposited on

time.

For a 2-year scheme TK.250 bonus/unit will be paid at the


time.

For a 3-year scheme TK.550 bonus/unit will be paid at the


time.

ELIGIBILITY Any Bangladeshi between 18-60 years of age is eligible to

open Education Savings Plan.



22





the deposited amount along with the interest at the

prevailing savings rate during the time of closure.


before the end of the tenure.

6.3 FAMILY PROTECTION PLAN

With life's uncertainties, it is comforting to know that family's

financial future is in the hands of a global institution that people

can trust. They can choose Family Protection Plan from HSBC's

My Future products suite and protect the future of their families.

Family Protection Plan is a monthly savings scheme that the

plan holder can sign up for with an initial deposit of TK. 10,000

or TK. 50,000 and monthly installments of TK. 5,000 or TK.

10,000 respectively. The maturity value of the 3-year plan is

protected with a life insurance.

FEATURES AND BENEFITS No sign up fee

Striking interest rates

One can purchase as many units as one desires.

Ideal tenure of three years

Ideal units of TK. 10,000 & 50,000

Convenient installments of TK. 5,000 & 10,000

respectively

Attractive bonus up on smooth payment of all the

installments


apply for a Family Protection Plan.

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TERMS AND CONDITIONS To earn the maturity value all the installments must be

paid regularly.

Final maturity value is subject to tax & excise duty as per

local regulations.

Plan holder must fulfill all health criteria set by Alico to be

eligible for the guaranteed maturity value.

6.4 HOLIDAY SAVINGS PLAN

With a Holiday Savings Plan from HSBC anyone can save for

exotic holiday and also earn discounts on travel packages.

BENEFITS Smart interest rates.

No sign-up fee

No penalty for missed installments

One can purchase as many units as one desires

Initial deposit of TK.10,000 with monthly deposits of

TK.5,000 [1 unit]

The plan holder can choose from flexible tenures of 6 or

12 months.

The plan holder will get discounts on travel packages from

selected travel agencies.

ADDITIONAL BENEFITS Bonuses will be paid at end of the tenure if all installments

are deposited on time

TK.100 bonus/unit for 6 months scheme.

TK.200 bonus/unit for 12 months scheme.


apply for a Holiday Savings Plan.

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plan.



6.5 PEACE OF MIND SAVINGS PLAN

HSBC believes that emergencies can occur at any time. With a

Peace of Mind Savings Plan from HSBC, anyone can enable

oneself to handle those unforeseen events.

BENEFITS Attractive interest rates.

No sign-up fee.

No penalty for missed installments.

The client can purchase as many units as he desires.

Initial deposit of TK. 10,000 or TK. 50,000 with monthly

deposits of TK. 5,000 [1 unit] or TK. 10,000 [1 unit]

respectively.

Tenure of the plan is 3 years only.

DISCOUNTS The plan holder gets exclusive discounts on various

medical tests at selected diagnostic centers in Dhaka and

Chittagong.

ADDITIONAL BENEFITS Bonuses will be paid at end of the tenure if all installments


TK. 600 bonus for every initial deposit of TK. 10,000.

25


TK. 3,000 bonus for every initial deposit of TK.

50,000.

Personal accidental insurance coverage up to TK. 100,000

for initial deposit of TK. 10,000 and up to TK. 150,000 for

initial deposit of TK. 50,000 [Premium will be borne by the

Bank].

Overdraft facility up to 90% against his deposit with a

minimum loan amount of TK. 90,000.


apply for a Peace of Mind Savings Plan.










6.6 RETIREMENT SAVINGS PLAN

HSBC values the clients who wish to retire someday and live a

peaceful and happy life. However, circumstances may prevent

them from getting their wish fulfilled. They can plan their future

now with the Retirement Savings Plan from HSBC and support

themselves during old age.

BENEFITS Same as the previous plan

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Bonuses will be paid at end of the tenure if all installments


Bonus of TK. 700 for every initial deposit of TK.

10,000.

Bonus of TK. 3,500 for every initial deposit of TK.

50,000.

TK.500 gift voucher/unit each year if all 12 monthly


TK.400 gift voucher/unit each year if at least 10 monthly



apply for a Retirement Savings Plan.










7.0 CORPORATE BANKING

At HSBC, the bankers constantly strive to develop new products

to meet the changing needs of a dynamic and growing business.

In the spirit of encouraging business to flourish, Corporate

Banking offers a range of flexible solutions, exclusively

packaged to meet the needs of growing business.

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Choice and control - these two are fundamentals in running

finances. HSBC gives its clients both: a choice of ways they can

access their money, and then control when they get there. They

can choose from HSBC Client Service Centers, ATM, Telephone

and Internet Banking solutions and use the information and

expertise at their fingertips or at the other end of the line -

anytime they like.

HSBC's Corporate Banking services are designed to help its

clients operate efficiently and profitably. Using HSBC’s local

expertise and the unrivalled global resources of the HSBC

Group, HSBC offers a comprehensive financial solution that aims

to meet business needs, both locally and globally.

7.1 IMPORT SERVICE

With over 130 years of experience supporting importers

globally, HSBC is well positioned to fulfill trading needs. A full

range of import services handled by experienced staff is

available, ensuring that import documents are processed

without delay.

The interested parties can simply apply to HSBC for import

facilities, and HSBC begins handling their imports immediately.

The availability of credit facilities is subject to HSBC's Internal

Credit guidelines and approval process.

The services offered by HSBC Bangladesh are given below:

Documentary Credits: Part of credit sanction function

Import Collections

Import Finance: Part of credit sanction function

Shipping Guarantee

7.1.1 IMPORT COLLECTION

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http://www.hsbc.com.bd/bd/corp/trade/impfin.htm

http://www.hsbc.com.bd/bd/corp/trade/impcol.htm

http://www.hsbc.com.bd/bd/corp/trade/impdoc.htm


Collections offer a cost-effective but secure means of trading

internationally. Using these instruments, the importer only

effects payment in exchange for the documents of title for the

goods shipped. If these are found to be unacceptable, payment

can be refused, giving the buyer peace of mind. However, the

above is subject to Central Bank rules; therefore the client is

advised to consult with HSBC before considering import

collections.

7.1.2 SHIPPING GUARANTEE

In certain situations goods may arrive in port before the

shipping documents have been processed through the banking

system. In these circumstances, HSBC can issue a shipping

guarantee, allowing the importer to take control of the goods

from the shipping company without the bill of lading. The

advantages of using HSBC for this are as follows:

RAPID ISSUANCE Shipping guarantees are only of value if they are issued

immediately. HSBC can issue shipping guarantees as soon as

the application is made, meaning the importer can release his

goods from the carrier immediately.

FINANCIAL STRENGTH HSBC issued shipping guarantees are universally accepted by

shipping companies. This means the importer can always be

assured that he will get his goods on time.

7.2 EXPORT SERVICE

With over 9,500 offices in 79 countries and territories, the client

can be rest assured that an HSBC office is close to him,

wherever he is exporting to. HSBC is available to provide him

with advice on any aspect of his trade document preparation

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and can also provide him with working capital finance to assist

him to source his raw materials

To benefit from HSBC's export services, he does not need to

have special facilities or even an account with HSBC. All he has

to do is to request his buyers to advise his documentary credits

through HSBC and benefit immediately from HSBC’s

international network.

7.3 TRADE EXPRESS

Trade features as an integral part of the Bangladesh economy

and this trend is set to continue. Competition in trade, however,

continues to grow stiffer for HSBC’s local clients [both

domestically and internationally]. In order to facilitate their

competitiveness, HSBC provides its priority clients the ability to

handle their transactions more quickly, easily, and efficiently.

Trade Express is an umbrella service, which combines

traditional trade products, document delivery services,

reinforced by HSBC's proprietary state of the art e-banking

[Hexagon and Electronic DC Advising] designed to provide

tailored solutions for HSBC’s priority clients from the

convenience of their own office remote banking.

With this product the client can now execute all his trade

transactions faster, cheaper, and with more accuracy than ever

before and most importantly, from the convenience of his own

office.

BENEFITS

Real-time intimation of Export Documentary Credit [DC]

delivered to the client’s email account or fax number,

along with a copy of the documentary credit enabling

faster and more accurate handling of exports.

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Export transaction advices delivered to his desk through

email or fax and import transaction advices through

Hexagon.

Online issuance and amendment of Import DCs from his

office, reducing cost and process time for him.

Online access to his Import and Export facility positions.

Real-time correspondence with the bank through Hexagon

enabling him to electronically present his requests and

instructions in a secure and fast manner.

Extended counter hours and HSBC’s commitment to

quicker turnaround of transactions.

Document pick up and delivery services.

Minimal documentation / sign up formality.

7.4 PAYMENT AND COLLECTION

COUNTRY WIDE PAYMENT

Most corporate treasurers cannot afford to spend time worrying

about routine payments. HSBC in Bangladesh has the

technology to put the corporate people in better control of

routine operations and has been successfully handling payment

requirements throughout the nation for its corporate clients.

HSBC provides them with benefits, which include:

Reduction in payment time.

Availability of payment details through Hexagon.

Easy reconciliation of payments/receipts through Hexagon

statement.

Centralization of control of payments.

Network coverage of almost 200 locations nation-wide.

COUNTRY WIDE COLLECTION:As receivable management is crucial to their financial cycle,

HSBC has developed products for them to efficiently manage

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their requirements and reduce cost. The services and benefits

include:

Cost reduction through efficient fund management.

Detailed MIS on cash collection, resulting in better

management.

Account reconciliation done through Hexagon.

Centralization of control of all his cash and instruments.

Network coverage of almost 200 locations nation-wide.

Quicker cash collection into a central account, resulting in

greater earnings.

7.5 HEXAGON CHEQUE WRITER

HSBC’s latest addition in the Payments and Cash Management

services is Hexagon Cheque Writer. It is a cheque writer product

which is also a built-in module of Hexagon, global electronic

banking. It is designed to facilitate HSBC’s corporate customers

for preparing, printing and updating the PC ledger.

Services and benefits include:

Preparation of cheques through Hexagon Cheque Writer.

Reconciliation of cheques at the Hexagon ledger.

Advice along with cheque leaves.

No further installation required since it is built in Hexagon

module.

Recurrent payments can be stored and printed.

Convenience of in-house cheque printing

7.6 ELECTRONIC BANKING

It enables the corporate client’s access their account from their

PC 24-hours a day, 365 days a year from anywhere in the world

with Hexagon, HSBC’s global electronic banking system.

CASH MANAGEMENT SERVICE:

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Hexagon offers comprehensive cash management services in an

easy-to-use and highly secure system. This provides the clients

timely and accurate account information and gives them total

control over finances. They can pay to third parties at ease and

can effect instant fund transfer between their own accounts.

TRADE SERVICE:Hexagon significantly reduces the documentation and physical

delivery required for trade finance, resulting in both faster and

more accurate processing and administration. It will reduce data

entry and related errors and the client can store frequently used

documentary credit in templates and recall them as needed to

speed in their processing.

SALARY PAYMENT:Salary payment to staff is at fingertips by using HSBC MT_ 100

module through Hexagon. The client can import salary from his

existing payroll system and send it to bank through Hexagon.

From these HSBC can credit accounts of the staff immediately

and error-free.

INFORMATION SERVICES:Hexagon is essential if the client wishes to survive in today’s

competitive markets. Hexagon provides a wide range of market

information prepared by experts around the world, enhancing

his opportunities for profit. He can get precious metal prices,

spot rates, stock prices, index values and foreign exchange

commentary everyday.

REPORT WRITER:Hexagon report writer is a powerful and easy-to-use tool for

accessing and managing accounts, trade finance and security

information. Report writer allows organizing the client’s

accounts in a variety of ways of convenient and customized

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reporting. It is easy to integrate with his current accounting

package.

OFFLINE MODE:Hexagon can be used offline to prepare payment instructions,

documentary credit application; the client can trace and send

them at convenient time, cutting phone costs. Offline mode also

reduces clerical work and speeds up office.

8.0 HSBC PREMIER BANKING

HSBC Premier is a global service proposition reserved for

HSBC’s most valued customers. It has been designed to suit

their personal, financial and unique lifestyle needs - providing

with the flexibility and recognition they deserve while at home

and abroad. HSBS Premier Banking stands for "A premium

global banking service for an exalted few". Relationship,

Recognition and Reward - HSBC Premier delivers the ultimate in

personalized banking.

With HSBC Premier, the customer will enjoy an extensive range

of exceptional privileges and exclusive benefits to complement

his life style. These include:

Dedicated Relationship Managers: One-on-one assistance

from a personal relationship manager to manage all

financial requirements

The prestige of the customer’s very own HSBC Premier

Centre that offers a private lounge, reserved car parking

for his convenience and priority service. Additionally he

has access to all HSBC Premier centres and counters

around the world as a preferred HSBC customer

Preferential pricing on loan products and credit facilities,

remittance and payment services

Fax Banking

Waived or reduced service fees

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A total integrated account that reflects the customer’s

total financial position - consolidated monthly statement

that summarizes his total banking portfolio

Commission free encashment of HSBC issued Traveler’s

cheques world wide

Commission free foreign currency exchange services world

wide

Commission free endorsement of foreign currency for self

and spouse

A free HSBC Premier ATM card that allows the customer

access to over 800,000 ATMs around the world, 24 hours a

day [Foreign Exchange regulations apply]

Higher ATM limits, up to TK. 100,000.

No transaction fee at HSBC ATMs worldwide.

Global Services: A range of Global Concierge, Travel and

Emergency services

A variety of exclusive offers from top quality restaurants,

boutiques and other acclaimed establishments

ELIGIBILITY: To join the exclusive world of HSBC Premier, the interested

customer needs to maintain a total relationship balance

[average monthly credit balance] of TK. 4 million or equivalent

foreign currency [USD/GBP/EURO], or a combination of both

foreign and local currency to the value of TK.4 million in

Current, Savings or Fixed Deposit accounts [or any other criteria

as HSBC may determine at its discretion from time to time].

9.0 HSBC LOCAL BANKING: AMANAH

Amanah Banking establishes HSBC’s claim to be a local bank. It

is a part of HSBC’s Local Banking Service.

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At HSBC Amanah, HSBC’s unique combination of local

experience and global resources enable it to understand the

client’s needs and concerns and this is precisely why HSBC has

designed current account, in full compliance with the Shariah

principles, for the devoted Muslim customers.

Amanah Banking operates two services:

Amanh Current Account

Amanah Import Finance

9.1 AMANAH CURRENT ACCOUNT

The HSBC Amanah Current Account is a relationship checking

account, designed to comply with Shariah (Islamic Law)

guidelines while also providing the regular convenience and

security of a current account. The HSBC Amanah Current

Account offers the customers:

An interest free deposit, where no interest is paid or

received for their funds. Separate books of accounts are

kept for all current account Amanah Deposits, this is to

ensure that these deposits are used only in a Shariah

compliant manner.

HSBC’s on-line, real-time branch banking service allows

them to use any of the five branches in Bangladesh to

conduct full branch banking transactions.

While a HSBC Amanah Current Account will be resident in

the HSBC Amanah Branch, the customers can use any of

HSBC’s other HSBC branches in Dhaka and Chittagong.

Easy pay Machines offer customers and non-customers an

easy, convenient and quick way to make deposits,

payments and instructions. The Easy Pay provide services

24-hours a day, seven days a week

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They can access their current account via ATM 24-hours a

day, seven days a week.

Phone-banking Service lets them conduct their banking

transactions - 24-hours a day, seven days a week, 365

days a year.

They receive a free personalized cheque book when they

open a current account.

DOCUMENTS REQUIRED: Completed account opening form.

Passport size photograph for each account holder.

Proof of identification such as passport, driving license or

voter's ID

9.2 AMANAH IMPORT FINANCE

HSBC Amanah Import Finance is based on Murabaha, a type of

mechanism that is fully compliant with the Shariah. In

Murabaha, goods are sold at stated cost plus a profit, with the

crucial element being the trade of an underlying Halal asset.

The payment for the goods can be immediate or on deferred

basis. Although Murabaha transactions have been used in

Middle Eastern and Asian countries for many years, HSBC is

proud to be the first global bank to introduce them on a truly

international scale.

The process is as follows:

The interested party apply for a Murabaha facility from

HSBC

He identifies Halal goods that he wishes to import.

The Halal goods will be bought by HSBC and sold to him

under the Murabaha facility.

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No interest is charged. Depending on the requests

submitted by him, payment for the goods can be

immediate or on deferred basis.

KEY FEATURES: The HSBC Group has over 9,500 offices in 79 countries and

territories all around the world. Therefore it has extensive

experience in offering customers trade-related services

which respect local beliefs and customs.

An interest free financing mechanism, under which they

can acquire the required Halal goods under the Murabaha

principle.

Competitive pricing to help them maintain their business

edge.

Efficiency in processing all their documents

To cater to the needs of HSBC Amanah Finance, HSBC’s

global Islamic finance division employs a team of

professionals with experience in both Islamic finance and

the conventional financial services industry.

With professionals based in Dubai, New York, London,

Riyadh, Jakarta and Kuala Lumpur, it uses local knowledge

to identify solutions for customers who are looking for

Shariah compliant financial services from a respected

international organization.

Through HSBC’s world famous Hexagon, an electronic

banking platform, the customer can conduct full-fledged

banking through a dialup intranet in a very secure

manner. Hexagon provides him with a highly informative

database on all transactions, complete cash management

services,

Batch payment services for large volume regular payment

like salary, full range of trade services including letter of

credit opening, information services, excellent report

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writer services which communicates and reconciles

seamlessly with his other system [SAP Compliant] under

unbroken track record of data security- and all from the

comfort of his office.

If the customer is in the exports as well as imports, HSBC’s

Electronic DC advising service will allow him to be

informed in real time about arrival of export DCs through E

mail or Fax.

HSBC’s own courier will be able to pick up and deliver

documents to and from the customer’s office on

arrangement.

To ensure strict compliance with the Shariah, HSBC

Amanah Import Finance has been designed with support

and guidance from the HSBC Shariah Supervisory

Committee to ensure strict compliance with the Shariah.

10.0 CONCLUSION

One of the prime functions of banks is general banking. HSBC

provides world class services in this area. HSBC is one of the

largest banking and financial services organizations in the

world, with a market capitalization of US$182 billion at 31

December 2005. HSBC operates through long-established

businesses and has an international network of over 9,800

properties in 76 countries and territories in five geographical

regions: Europe; Hong Kong; Rest of Asia-Pacific, including the

Middle East and Africa; North America and South America.

Within these regions, a comprehensive range of financial

services is offered to personal, commercial, corporate,

institutional, investment and private banking clients. Services

are delivered primarily by domestic banks, typically with large

retail deposit bases, and consumer finance operations. HSBC

manages its business in general banking through four customer

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groups: Personal Financial Services; Commercial Banking;

Corporate, Investment Banking and Markets; and Private

Banking. Personal Financial Services incorporates the Group’s

consumer finance businesses, reflecting their increasing

integration within mainstream financial services around the

world. Although its interest rate is comparatively low than local

private banks in Bangladesh HSBC has found a niche for itself in

case of foreign currency accounts and corporate banking. In this

globalized environment HSBC, with its unique international

footprint, is determined to continue to deliver profitable growth

and value to its various constituencies. Success ensures that

the Group can offer good employment prospects to an ever

more diverse workforce. It means that HSBC can afford to

continue to invest in expanding the platforms by which it

delivers services to its customers. It enables the Group to

contribute to the savings and retirement needs of those who

invest in HSBC directly or indirectly through pension plans and

investment funds. Building on its achievements, HSBC’s priority

for the rest of 2006 is to continue to implement its Managing for

Growth strategy. It will achieve this by being distinctive,

reinforcing its brand values of trust and integrity in all its

dealings with customers. The Group will make itself even more

relevant by broadening the product, channel and geographical

coverage it offers. Furthermore, HSBC will ensure that the scale

and complexity needed to compete successfully will be

seamless from the perspective of its customers and

manageable from that of its employees.

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REFERENCES

1. Website. <www.hsbc.com>2. Website. <www.hsbcbd.com>3. Annual Report and Accounts, HSBC Holding Plc., 2005-06.

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http://www.hsbc.com/

General Banking HSBC

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