Lead Generation, Sales Techniques & Closuredocshare04.docshare.tips/files/5874/58747178.pdf · 1...

Lead Generation, Sales Techniques &

ClosureSubmitted In Partial Fulfillment Of The Requirements Of The Degree Of Post Graduate Diploma In Management Chandragupt Institute Of

Management Patna

Manish Verma

13-Jun-11

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

The study tries to understand the insurance market in Patna region, identify the factors affecting satisfaction levels of bank customers at Standard Chartered and suggest relevant ways to increase sales for Standard Chartered through innovative lead generation, sales and closing techniques.

1 Lead Generation, Sales Techniques & Closure, Manish Verma, 13-Jun-11

DECLARATION

This is to certify that this report entitled “Lead generation, Sales techniques” submitted

by Mr. Manish Verma to Chandragupt Institute of Management Patna, as a

requirement for the award of the Post Graduate Diploma in Management, is a bonafide

record of research work carried out by him under our supervision. The contents of this

report, in full or in parts, have not been submitted to any other Institute or University for

the award of any degree or diploma.

(Mr. Srinivas Ramamurthy) __________________________________ (Sign)

(Prof. Shireesh Thakur) ___________________________________ (Sign)

Date: ___________________


ACKNOWLEDGEMENTS

I would like to express my gratitude to all those who gave me the possibility to complete

this thesis. I would like to thank my college authorities and my Placement officer, Mr.

Kumar Alok first for providing me the opportunity to work with one of the most

prestigious organizations. I want to thank the Branch Manager of Standard Chartered,

Mr. Srinivas Ramamurthy, for giving me permission to commence this thesis in the first

instance, to do the necessary research work and to use departmental data.

I have furthermore to thank the staff members who encouraged me to go ahead with the

thesis and for their stimulating support.

I am deeply indebted to my Faculty Guide, Mr. Shireesh Thakur whose help, stimulating

suggestions and encouragement helped me in all the times of research for writing for this

thesis.

I would also like to extend my heartfelt gratitude towards the respondents who found

time to help us in conducting the survey.

My friends Garima, Richa, Mukul and many others supported me in my research work. I

want to thank them for all their help, support, interest and valuable hints.

Especially, I would like to give my special thanks to my parents for their love and

blessings that enabled me to complete this work.

(Manish Verma, Roll: 17)


TABLE OF CONTENTSCertificate 2

Acknowledgements 3

1 Abstract 6

2 Introduction 8

2.1 Introduction To The Project 8

2.2 Objectives Of The Study 10

3 Literature Review 11

3.1 The History Of Indian Insurance Industry 11

3.2 Life Insurance 11

3.3 General Insurance 14

3.4 Major Policy Changes 14

3.5 Changing Face of Indian Insurance Industry 15

3.6 Analyst Insight 19

3.6.1 Leverage 19

3.6.2 Liquidity 193.6.3 Profitability 20

3.7 Other factors 21

3.8 Porter’s 5 Forces Analysis 22

3.8.1 Threat of New Entrants 22

3.8.2 Power of Suppliers 23

3.8.3 Power of Buyers 23

3.8.4 Availability of Substitutes 23

3.8.5 Competitive Rivalry 23

3.9 Key Ratio Terms 24

3.9.1 Return on Equity 24

3.9.2 Return on Assets 24

3.9.3 Return on Total Revenue 24

3.9.4 Lapse Ratio 25

3.10 Insurance Penetration (Select Countries) 26

3.11 Insurance Density in India 27

4 Company Overview 28 4.1 Key Facts28 4.2 Business Description 29 4.3 History 30 4.4 Key Employees 36 4.5 Major Products and Services 37

4.5.1 Consumer Banking 374.5.2 Wholesale Banking 38

4.6 Revenue Analysis39


4.6.1 Overview 394.6.2 Revenue by Division 394.6.3 Revenue by Geography 40

4.7 SWOT Analysis 41 4.7.1 Strengths 43 4.7.2 Weaknesses 45 4.7.3 Opportunities 47 4.7.4 Threats 50

4.8 Top Competitors 53 4.9 Locations & Subsidiaries 545 Research Methodologies 55 5.1 Research Design 55

5.1.1 Sample Selection & Size 555.1.2 Sampling Procedure 555.1.3 Data Collection 555.1.4 Analytical Tools 56

6 Analyses of Data 58 6.1 Demographic Profile 58 6.2 Purpose of Buying an Insurance Policy 65 6.3 Observations 71 6.4 Survey 2, (Customer Satisfaction) 727 Lead Generation Techniques 74 7.1 Complementary Partner Referrals 74 7.2 Cold Calling 75 7.3 Live Seminars 76 7.4 Trade Shows 76 7.5 Mass Mailings 77 7.6 Advertising 78 7.7 Internet Advertising 78 7.8 Email Publications 798 Sales Techniques 80 8.1 Presentations 80 8.2 Demonstrations 80 8.2.1 Significance of Demonstrations 809 The Close 82 9.1 What is a Close 82 9.2 Features of Successful Closing 8210 Recommendations 85

11 Conclusions 86

12 Bibliography 87

Appendices 88

Lead Generation, Sales Techniques & Closure


1. ABSTRACTIn today’s tough competition, every company in the service sector tries hard to satisfy its

customers. In the insurance sector, various new private companies have entered the

industry by merging with foreign companies. They regularly offer new services, with the

basic plan to attract new customers and to retain the present ones. This paper tries to

understand consumer behavior in the insurance sector. The main objective of this paper is

to identify customer preferences regarding plans and company, their purpose of buying

insurance policies, their satisfaction level and their future plans for the new insurance

policy. This way the lead generation process can be made easier and we can augment the

profitability of our employer by making more sales. Data was collected with the help of a

structured questionnaire from 140 customers from Patna. The sample was taken on the

basis of the Convenience Sampling method. However, only 128 questionnaires were used

for analysis as the remaining 12 were not filled properly by the respondents. Percentage,

frequency and cross tabulation methods have been used for analysis in SPSS.

Apart from the above research, we also had to take feedback of the existing customers of

Standard Chartered Patna to rectify the problems, if any. It was only for determining

satisfaction regarding tellers and branch facilities. 160 customers gave their feedback.

The analyses were done using SPSS. The results show that Money Back Plan is the

favorite among Patnaites. Most of the respondents have policies of LIC. Many interesting

findings are observed. The method of sampling was convenience sampling and the

respondents are from Patn


When the factors are mostly related to infrastructure and human capital, some revamp

like implementing a CRM system, training the employees to deliver better results are

quite easy and justifiable.

Ultimately, customer is king and king should be treated like one.

Looking at the growth of insurance industry, it is recommended that Standard Chartered

becomes a wholly owned insurance subsidiary as well. Bancassurance is less profitable

and the company may not sell third party products aggressively. For doing good business,

it needs to improve considerably in improving customer services.


2. INTRODUCTIONToday, Standard Chartered PLC has diversified tremendously. It has truly become a

universal bank. The Standard Chartered Patna branch sells many other third party

products also apart from their usual products. One such product range is Bajaj Allianz’s

life insurance products. We were assigned the work to get a clear understanding about the

products of Bajaj Allianz that Standard Chartered is selling.

2.1 INTRODUCTION TO THE PROJECTBancassurance, i.e., banc + assurance, refers to banks selling the insurance products.

Bancassurance term first appeared in France in 1980, to define the sale of insurance

products through banks’ distribution channels. This term is extremely familiar among the

European countries as banks selling insurance products in most of these countries are a

common feature. Banks are being used as an effective alternate channel to distribute

insurance products either as ‘stand-alone insurance products’ or ‘add-ons to the bank

products’ by way of combining the insurance with typical banking products/services().

According to IRDA, ‘bancassurance’ refers to banks acting as corporate agents for

insurers to distribute insurance products. Literature on bancassurance does not

differentiate if the bancassurance refers to selling of life insurance products or non-life

insurance products. Accordingly ‘bancassurance’ is defined to mean banks dealing in

insurance products of both life and non-life type in any forms.

The insurance sector plays a very vital role in the economic growth of any country. In

today’s world, the BFI sector plays a very important role for that matter. If we look at

today’s job opportunities, the service market creates more than 70% jobs. Today there are


24 general insurance companies including the ECGC and Agriculture Insurance

Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%.

Together with banking services, insurance services add about 7% to the country’s GDP.

A well-developed and evolved insurance sector is a boon for economic development as it

provides long- term funds for infrastructure development at the same time strengthening

the risk taking ability of the country().

Selling a product is relatively easier than selling a service. It gets more difficult when it is

a financial service. So, the sales people in the services industry in general and insurance

industry in particular are always found struggling to generate leads and close the sales

successfully. Generating leads is not as easy as it sounds. There are ways tried and tested

but yet there is scope for innovation to reach out to more and more people who need our

services but are either unaware or having the wrong information.

Salesmanship is an art in itself and it takes times to gain experience and generate leads,

close brilliantly and stay motivated. The ideas for generating leads, sales techniques and

closure need not be the same for all the industries. A very focused and relevant approach

need to be adhered to in order to boost sales and remain profitable. A generalist view may

not work in a specialized sector like insurance.


2.2 OBJECTIVES OF THE STUDYThe main objective of this paper is to identify customer preferences regarding plans and

the company, their purpose of buying insurance policies, satisfaction level and their

future plans for the new insurance policy.

Another important survey we conducted was to gain useful insights regarding the factors

affecting satisfaction levels of bank customers.

The analyses based on the research conducted will help us design ideas to generate leads,

use effective sales techniques and convert more and more leads into sales in Patna region.

If Standard Chartered Bank Patna takes relevant steps to curb the dissatisfaction among

its customers, getting better revenues and selling more products, third party or otherwise

would become easier.


3. LITERATURE REVIEWPeople seek security. A sense of security may be the next basic goal after food, clothing,

and shelter. An individual with economic security is fairly certain that he can satisfy his

needs (food, shelter, medical care, and so on) in the present and in the future. Economic

risk (which we will refer to simply as risk) is the possibility of losing economic security.

Most economic risk derives from variation from the expected outcome().

3.1 THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss and disaster existed

in primitive men also. They too sought to avert the evil consequences of fire and flood

and loss of life and were willing to make some sort of sacrifice in order to achieve

security. Though the concept of insurance is largely a development of the recent past,

particularly after the industrial era – past few centuries – yet its beginnings date back

almost 6000 years().

3.2 LIFE INSURANCE

In 1818 the British established the first insurance company in India in Calcutta, the

Oriental Life Insurance Company. First attempts at regulation of the industry were made

with the introduction of the Indian Life Assurance Companies Act in 1912. A number of

amendments to this Act were made until the Insurance Act was drawn up in 1938.

Noteworthy features in the Act were the power given to the Government to collect

statistical information about the insured and the high level of protection the Act gave to


the public through regulation and control. When the Act was changed in 1950, this meant

far reaching changes in the industry. The extra requirements included a statutory

requirement of a certain level of equity capital, a ceiling on share holdings in such

companies to prevent dominant control (to protect the public from any adversarial

policies from one single party), stricter control on investments and, generally, much

tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance

companies. Business was heavily concentrated in urban areas and targeted the higher

echelons of society. “Unethical practices adopted by some of the players against the

interests of the consumers” then led the Indian government to nationalize the industry. In

September 1956, nationalization was completed, merging all these companies into the so-

called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the

industry fairness, solidity, growth and reach.”()

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies().


3.3 GENERAL INSURANCEThe General insurance business in India started with the establishment of Triton

Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The

Mercantile Insurance Ltd. was set up to transact all classes of general insurance business.

General Insurance Council, a wing of the Insurance Association of India in 1957, framed

a code of conduct for ensuring fair conduct and sound business practices. In 1968 the

Insurance Act was amended to regulate investments and to set minimum solvency

margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The

General Insurance Business (Nationalization) Act was passed to nationalize the general

insurance business in India with effect from 1st January 1973. For these 107 insurers was

amalgamated and grouped into four company’s viz., the National Insurance Company

Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and

the United India Insurance Company Ltd. General Insurance Corporation of India was

incorporated as a company

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a

code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.


1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the

general insurance business in India with effect from 1st January 1973. 107 insurers

amalgamated and grouped into four companies, viz. the National Insurance Company

Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and

the United India Insurance Company Ltd. GIC incorporated as a company.()

3.4 MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance

companies with the enactment of Insurance Regulatory and Development Authority Act,

1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and

Development Authority (IRDA) was established on 19th April 2000 to protect the

interests of holder of insurance policy and to regulate, promote and ensure orderly growth

of the insurance industry. IRDA Act 1999 paved the way for the entry of private players

into the insurance market which was hitherto the exclusive privilege of public sector

insurance companies/ corporations. Under the new dispensation Indian insurance

companies in private sector were permitted to operate in India with the following

conditions:

Company is formed and registered under the Companies Act, 1956; The aggregate

holdings of equity shares by a foreign company, either by itself or through its subsidiary

companies or its nominees, do not exceed 26%, paid up equity capital of such Indian

insurance company;

The company's sole purpose is to carry on life insurance business or general insurance


business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100

crores.

The minimum paid up equity capital for carrying on reinsurance business has been

prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration

of insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation

of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection

of policy holders' interest etc. Applications were invited by the Authority with effect

from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life

insurers. The Authority has its Head Quarter at Hyderabad.()

3.5 CHANGING FACE OF INDIAN INSURANCE INDUSTRY

Indian life-insurance market is the target market of all the companies who either want to

extend or diversify their business. To tap the Indian market there has been tie-ups

between the major Indian companies with other International insurance companies to

start up their business. The government of India has set up rules that no foreign insurance

company can set up their business individually here and they have to tie up with an

Indian company and this foreign insurance company can have an investment of only 24%

of the total start-up investment.

Indian insurance industry can be featured by:

• Low market penetration.


• Ever growing middle class component in population.

• Growth of customer’s interest with an increasing demand for better insurance

products.

• Application of information technology for business.

• Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are

making strides in raising awareness levels, introducing innovative products and

increasing the penetration of life insurance in the vastly underinsured country. Several of

private insurers have introduced attractive products to meet the needs of their target

customers and in line with their business objectives. The success of their effort is that

they have captured over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers has been the customer. A

wide range of products, customer focused service and professional advice has become the

mainstay of the industry, and the Indian customer’s forms the pivot of each company’s

strategy. Penetration of life insurance is beginning to cut across socio-economic classes

and attract people who have never purchased insurance before.

Life insurance is also now being regarded as a versatile financial planning tool. Apart

from the traditional term and saving insurance policies, industry has seen the entry and

growth of unit linked products. This provides market linked returns and is among the

most flexible policies available today for investment(). Now products are priced, flexible,

and realistic and sustain so people in better position to understand the risk and benefits of

the product and they are accepting these innovative products.


So it is clear that the face of life insurance in India is changing, but with the changes

come a host of challenges and it is only the credible players with a long term vision and a

robust business strategy that will survive. Whatever the developments, the future and the

opportunities in this industry will surely be exciting.

Various types of life insurance policies:-

• Endowment policies: This type of policy covers risk for a specified period,

and at the end of the maturity sum assured is paid back to policyholder with

the bonuses during the term of the policy.

• Money back policies: This type of policy is for periodic payments of partial

survival benefits during the term of the policy as long as the policy holder is

alive.

• Group insurance: This type of insurance offers life insurance protection under

group policies to various groups such as employers-employees, professionals,

co-operatives etc it also provides insurance coverage for people in certain

approved occupations at the lowest possible premium cost.

• Term life insurance policies: This type of insurance covers risk only during

the selected term period. If the policy holder survives the term, risk cover

comes to an end. These types of policies are for those people who are unable

to pay larger premium required for endowment and whole life policies. No

surrender, loan or paid up values are in such policies.

• Whole life insurance policies: This type of policy runs as long as the

policyholder is alive and is covered for the entire life of the policyholder. In


this policy the insured amount and the bonus is payable only to nominee on

the death of policy holder.

• Joint life insurance policies: These policies are similar to endowment policies

in maturity benefits and risk cover, but joint life policies cover two lives

simultaneously such as married couples. Sum assured is payable on the first

death and again on the death of survival during the term of the policy.

• Pension plan: a pension plan or annuity is an investment over a certain

number of years but does not provide any life insurance cover. It offers a

guaranteed income either for a life or certain period.

• Unit linked insurance plan: ULIP is a kind of insurance plan which provides

life cover as well as return on premium paid over a certain period of time. The

investment is denoted as units and represented by the value called as net asset

value (NAV)().

3.6 ANALYST INSIGHT

There are three major factors that we must consider when analyzing an insurance

company.

3.6.1. Leverage. The first things you want to check when considering an insurance

company are the quality and strength of the balance sheet. Everyday insurers are taking in

premiums and paying out claims to policyholders. The ability to meet their obligations


toward these policy holders is extremely important. Companies should strike a balance

between high returns while keeping leverage intact. A company that is highly leveraged

might not be able to meet financial obligations when a large catastrophic event occurs().

The following three things act to increase leverage: 1) Writing more insurance policies 2)

Dependence on reinsurance 3) Use of debt Reinsurance allows a company to pass off

some of the risk exposure to other insurers (usually a good thing), but be careful. Too

much dependence on reinsurance means that the company is not keeping a fair portion of

responsibility for each premium dollar.

3.6.2. Liquidity. The first test of an insurer's ability to meet financial obligations is the

acid test. It tests whether a firm has enough short-term assets (without selling inventory)

to cover its immediate liabilities. Also take a close look at cash flow. An insurer should

almost always have a positive cash flow. Other things to keep an eye on are the

investment grades of the company's bond portfolio. Too many high and medium risk

bonds could lead to instability.

3.6.3 Profitability. As with any company, profitability is a key determinant for deciding

whether to invest. For an insurance company, there are two components of profits that we

must consider:

Premium/underwriting income and investment income. Underwriting income is just that:

any revenue derived from issuing insurance policies. By averaging the premium's growth

rates of several past years, you can determine the growth trends. Growing premium

income is a "catch 22" for insurance companies. Ideally, you want the growth rate to

exceed the industry average, but you want to be sure that this higher growth does not


come at the expense of accepting higher-risk clients. Conversely, a company whose

premium income is growing at a slower rate might be too picky, looking for only the

highest quality insurance opportunities. The one thing to remember is that higher

premium collections do not equate to higher profits. Lower numbers of claims (via low

risk clients) contribute more to the bottom line. The second area of profitability that you

need to include in your analysis is investment income. As we mentioned earlier, a greater

proportion of an insurer's income comes from investments. To evaluate this area, take a

look at the company's asset allocation strategy (usually mentioned in the notes of the

financial statements). You aren't likely to find any secrets in this area. A majority of the

assets should be invested in low-risk bonds, equities or money market securities. Some

insurers invest a substantial portion of their assets in real estate. If this is so, take a look at

what type of property it is and where it is located. A building in New York City is much

more liquid than one in Boise, Idaho. ROA, ROE, and the lapse ratios (discussed above)

are also useful for evaluating the profitability of the insurer. Calculate the ROA and ROE

numbers over the past several years to determine whether management has been

increasing return for shareholders. The lapse ratio will help to tell whether the company

has managed to keep marketing expenses under control. The more policies that remain in

force (are not cancelled), the better.

3.7 OTHER FACTORS

Another major item that affects the performance of an insurance company is interest rate

fluctuations. Insurance companies invest much of the collected premiums, so the income

generated through investing activities is highly dependent on interest rates. Declining


interest rates usually equate to slower investment income growth. Another downside to

interest rate fluctuations (not exclusive to insurance companies) is the cost of borrowing.

Find out when the company's debt matures and how high the interest rates are. If the

company is about to borrow or reprice its debt, there could be a big shock to cash flows

as interest expense rises. Demographics play one of the largest roles in affecting sales for

insurance, particularly life insurance. As people age, they tend to rely more and more on

life insurance products for their retirement. Death benefit policies ensure that

beneficiaries are financially secure once the insured dies, but in more recent years, the

insurance industry has made great headway in offering investment/savings type insurance

products. Because baby boomers are quickly approaching retirement age, take a close

look at the suite of insurance products that the company is offering and, from that, see if

it stands to benefit from this large portion of the population getting older. The one

problem with analyzing insurance companies is that the disclosure usually isn't enough.

Proper analysis requires substantial disclosure of things like reserve ratios, exposure to

catastrophic/environmental loss and details of the company's operations. This isn't to say

that the financial statements are not enough for adequate analysis, but to dig really deep,

a person needs more information.

3.8 PORTER'S 5 FORCES ANALYSIS

3.8.1 Threat of New Entrants. The average entrepreneur can't come along and start a

large insurance company. The threat of new entrants lies within the insurance industry

itself. Some companies have carved out niche areas in which they underwrite insurance.

These insurance companies are fearful of being squeezed out by the big players. Another

threat for many insurance companies is other financial services companies entering the


market. What would it take for a bank or investment bank to start offering insurance

products? In some countries only regulations that prevent banks and other financial firms

from entering the industry. If those barriers were ever broken down, like they were in the

U.S. with the Gramm-Leach-Bliley Act of 1999, you can be sure that the floodgates will

open.

3.8.2 Power of Suppliers. The suppliers of capital might not pose a big threat, but the

threat of suppliers luring away human capital does. If a talented insurance underwriter is

working for a smaller insurance company (or one in a niche industry), there is the chance

that person will be enticed away by larger companies looking to move into a particular

market.

3.8.3 Power of Buyers. The individual doesn't pose much of a threat to the insurance

industry. Large corporate clients have a lot more bargaining power with insurance

companies. Large corporate clients like airlines and pharmaceutical companies pay

millions of dollars a year in premiums. Insurance companies try extremely hard to get

high-margin corporate clients.

3.8.4 Availability of Substitutes. This one is pretty straight forward, for there are plenty

of substitutes in the insurance industry. Most large insurance companies offer similar

suites of services. Whether it is auto, home, commercial, health or life insurance, chances

are there are competitors that can offer similar services. In some areas of insurance,

however, the availability of substitutes is few and far between. Companies focusing on

niche areas usually have a competitive advantage, but this advantage depends entirely on


the size of the niche and on whether there are any barriers preventing other firms from

entering.

3.8.5 Competitive Rivalry. The insurance industry is becoming highly competitive. The

difference between one insurance company and another is usually not that great. As a

result, insurance has become more like a commodity - an area in which the insurance

company with the low cost structure, greater efficiency and better customer service will

beat out competitors. Insurance companies also use higher investment returns and a

variety of insurance investment products to try to lure in customers. In the long run, we're

likely to see more consolidation in the insurance industry. Larger companies prefer to

take over or merge with other companies rather than spend the money to market and

advertise to people.

3.9 KEY RATIOS/TERMS

3.9.1 Return on Equity (ROE): Net Income/ Shareholder's Equity

ROE indicates the return a company is generating on the owners' investments. In the

policyholder owned case, you would use policy holders' surpluses as the denominator. As

a general rule for insurance companies, ROE should lie between 10-15%.

3.9.2 Return on Assets (ROA): Net Income + Interest Expense /Total Assets


ROA indicates the return a company is generating on the firm's investments/assets. In

general, a life insurer should have an ROA that falls in the 0.5-1% range.

3.9.3 Return on Total Revenue: Net Income/Total Revenue

This is another variation of the profitability ratios. The insurance industry average return

is approximately 3%. If possible, use the premium income and investment income as the

numerator to find the profitability of each area. Reinsurance: This is the process of

multiple insurers sharing an insurance policy to reduce the risk for each insurer. You can

think of reinsurance as the insurance backing primary insurers against catastrophic losses.

(To learn more, read When Things Go Awry, Insurers Get Reinsured.) The company

transferring the risk is called the "ceding company"; the company receiving the risk is

called the "assuming company" or "reinsurer."

3.9.4 Lapse Ratio: Lapsed Life Insurance Specified Period /Contracts in Force (in effect)

at Start of Specified Period

This ratio compares the number of policies that have lapsed (expired) within a specified

period of time to those in force at the start of that same period. It is a ratio used to

measure the effectiveness of an insurer's marketing strategy. A lower lapse ratio is better,


particularly because insurance companies pay high commissions to brokers and agents

that refer new clients.


3.10 INSURANCE PENETRATION (SELECT COUNTRIES)*

*Insurance penetration is measured as ratio of premium (in US Dollars) to GDP (in US Dollars).

Source: ()


3.11 INSURANCE DENSITY IN INDIA

*Insurance density is measured as ratio of premium (in US Dollar) to total population

Source: ()


4. COMPANY OVERVIEW

Standard Chartered is a financial services provider. The group is active in retail and

wholesale banking. The group operates in the Asia Pacific Region, South Asia, the

Middle East, Africa, the UK, and the Americas. It is headquartered in London, the UK

and employs 85,231 people. The group recorded revenues of $16,062 million during the

financial year ended December 2010 (FY2010), an increase of 5.8% over FY2009. The

operating profit of the group was $6,122 million in FY2010, an increase of 18.9% over

FY2009. The net profit was $4,332 million in FY2010, an increase of 28.2% over

FY2009.

4.1 KEY FACTS

Head Office Standard Chartered PLC

1 Aldermanbury Square

London, EC2V 7SB

GBRPhone 44 20 78858888

Fax 44 20 78859999Web Address http://www.standardchartered.com

Revenue/Turnover

(USD Mn)

16,062.0

Financial Year End DecemberLSE Ticker STANNSE Ticker STAN

Hong Kong Stock

Exchange Ticker

02888


4.2 BUSINESS DESCRIPTION

Standard Chartered is a UK based banking group. The group has a history of over 150

years in banking and operates in some of the world's fastest-growing markets. Standard

Chartered has a global network of over 1,700 branches and outlets and 5,600 ATMs

spread across 70 countries. The group leverages its onshore presence across Asia, Africa

and the Middle East to offer up to date local market information, access to a range of

currency markets, country-specific global risk management strategies, and customized

capital raising and liquidity management solutions. Standard Chartered has presence in

the Asia Pacific Region, South Asia, the Middle East, Africa, the UK and the Americas.

The group operates through two business divisions: consumer banking and wholesale

banking. The consumer banking division serves millions of customers across Asia, Africa

and the Middle East. This division provides a range of products and services such as

credit cards, personal loans, mortgages, auto finance, deposit taking and wealth

management services to individuals and small and medium enterprises (SMEs). The

wholesale banking division provides corporate and institutional clients with services in

trade finance, cash management, lending, securities services, foreign exchange, debt

capital markets and corporate finance.

4.3 HISTORY

Standard Chartered began its operations in 1853 as the Chartered Bank of India, Australia

and China (Chartered Bank). According to a grant by a Royal Charter by Queen Victoria,


the bank's mandate was to finance trade between the UK and its Asian colonies. The bank

opened its branches in Calcutta and Shanghai in 1858. In the next year, the Chartered

Bank set-up operations in Hong-Kong and Singapore.

Over the next 40 years, the Chartered Bank expanded throughout Asia. In 1957,

Chartered Bank entered the Middle East by acquiring Eastern Bank. Its network grew

substantially in 1965, when it merged with the former Bank of British West Africa. The

merger added 100 branches, in Nigeria, Sierra Leone, Cameroon and Gambia, to the

Chartered Bank's network.

In 1969, the Chartered Bank merged with Standard Bank, which had a major presence in

Africa. The Asian and Middle Eastern business of Standard Chartered grew rapidly in the

early 1970s. It also expanded in the US market with the purchase of Union Bancorp.

The bank tried to gain entry into the UK market in 1981 by purchasing Royal Bank of

Scotland, but this deal did not materialize. Standard Chartered went public in 1985. Due

to trade sanctions against South Africa, Standard Chartered sold its South African

operations in 1987.

Despite the recession faced in 1990, Standard Chartered continued to expand in select

markets and refocused its attention towards consumer, corporate and institutional banking

in emerging markets. In 1998, Standard Chartered purchased a controlling interest in

Banco Exterior de Los Andes (Extebandes). This deal expanded the operations of

Standard Chartered in Latin America. In the following year, Standard Chartered acquired

the global trade finance business of Union Bank of Switzerland. Standard Chartered also

acquired Thailand's Nakornthon Bank. The group expanded in China through a deal with

the Bank of China.


Standard Chartered continued its growth strategy in Asia with the acquisition of

Grindlays Bank, in 2000. Grindlays Bank had strong presence in South Asia and the

Middle East. Standard Chartered also acquired Chase's consumer banking business in

Hong Kong. This acquisition made Standard Chartered a market leader in Hong Kong.

The group began a major restructuring exercise in 2000 by reducing its workforce by

20%.

In 2002, Standard Chartered expanded its reach in mainland China by opening a retail

branch in Shanghai. In 2003, the bank opened a branch in Kabul. Standard Chartered also

started providing banking services in Iraq and set-up retail banking operations in Korea.

In the same year, Standard Chartered expanded its operations in South Africa through the

acquisition of 20twenty.

Standard Chartered disposed its stake in KorAm in 2004. In China, Standard Chartered

received regulatory approval to conduct Renminbi business in China. In Indonesia,

Standard Chartered formed a partnership with PT Astra International to acquire a

controlling interest in PT Bank Permata, Indonesia. Subsequently, Standard Chartered

acquired the project finance business of ANZ Group. In China, the group acquired a

19.9% stake in Bohai Bank.

In 2005, Standard Chartered acquired majority stake in Korea First Bank. The group

formed a partnership with Radian Group (mortgage insurer) through which, Radian

would become the exclusive provider of mortgage insurance for Standard Chartered. In

Thailand, Standard Chartered integrated its banking businesses into a single entity. The

group launched its Korean operations under a new brand identity SC First Bank. In

Bangladesh, Standard Chartered acquired the commercial banking business of American

Express Bank.


In Japan, the group opened its first retail branch in Marunouchi, Japan. Here, Standard

Chartered targeted high net worth individuals. The group also launched priority banking

(a service designed for customers with deposits in excess of JPY20 million) asset

management services for wealthy clients. Standard Chartered signed an agreement for the

formation of China Bohai Bank. In 2006, in China, Standard Chartered received

approvals to open three more branches in Shanghai, Beijing, and Shenzhen representing a

significant step forward in the group's expansion plans in China. The group formed a

strategic partnership with Fleming Family & Partners (FF&P) to expand private wealth

management in Asia and the Middle East. The private equity arm of Standard Chartered

Bank signed an investment agreement with Dongfeng Motor Group (Dongfeng) for a $50

million investment in Dongfeng's Hong Kong initial public offer.

Further in 2006, Standard Chartered acquired a majority stake in Pakistan's Union Bank.

The consortium of Standard Chartered Bank and Astra International signed an agreement

to acquire a further interest of 25.90% in Bank Permata Tbk. In Indonesia, Standard

Chartered acquired Tgis from the state-owned asset management company, Perusahaan

Pengelola Aset. Subsequently, Standard Chartered expanded its business in Taiwan by

acquiring Hsinchu International Bank. Standard Chartered launched a new initiative

named 'China-Africa Trade Corridor' to offer financial solutions to small and medium

enterprises (SMEs) in China and Africa. This initiative offered financing solutions to

Chinese and African SMEs that ventured abroad. In 2007, Standard Chartered acquired

Pembroke, an aircraft leasing, financing, and management firm. In the same year, the

group completed the acquisition of Harrison Lovegrove, a leading global oil and gas

M&A advisory boutique.


In 2008, Standard Chartered acquired a 49% strategic stake in India's UTI Securities, a

leading local broking firm. It also acquired an 80% stake in South Korea's A Brain, a

funds administration company.

Standard Chartered completed the acquisition of American Express Bank (AEB), a

wholly owned subsidiary of American Express Company, with operations in 47 countries

Standard Chartered acquired South Korea's Yeahreum Mutual Savings Bank ,Lehman

Brothers' Brazilian franchise, and the 'good bank' portion of Asia Trust and Investment

Corporation. In the same year, it increased its investment in UTI Securities to 74.9%.

Standard Chartered completed the acquisition of Casenove Asia, in February 2009. The

group completed the acquisition of First Africa Group Holdings Limited (First Africa), a

leading pan-African mergers and acquisitions advisory firm, raising its holding to 100%,

in July 2009.

In April 2010, the group acquired 100% of the consumer finance business of GE Capital

(Hong Kong) Limited, a Hong Kong (restricted license) banking company. The Group

purchased this interest for $144 million, recognizing goodwill of $3 million. In May

2010, Standard Chartered launched first-ever Indian Depository Receipt (IDR) offer. In

June 2010, Standard Chartered Bank, a unit of Standard Chartered, invested

approximately $500 million in Agricultural Bank of China Limited’s H-Share Initial

Public Offering in Hong Kong. In August 2010, the group acquired 100% of the

consumer finance business of GE Commercial Financing (Singapore) Limited in

Singapore. The businesses were acquired for $70 million and goodwill of $14 million

was recognized.

On October 1, 2010 Standard Chartered purchased the remaining 25.1% interest in

Standard Chartered STCI Capital Markets (STCI) for $18 million. By virtue of this


transaction STCI became a subsidiary of the Group. The fair value of the 74.9% interest

held by the group at October 1, 2010 was included in the purchase. Between October 31,

2010 and December 5, 2010, the group acquired the custody business of Barclays Bank

PLC across various locations in Africa. The business was acquired for $130 million and

goodwill of $21 million was recognized.

In January 2011, Standard Chartered and S&P Indices launched a co-branded Greater

China equity performance benchmark, the S&P/StanChart Greater China Index. Its

constituents include the 50 largest blue-chip stocks by market capitalization listed in

Hong Kong, Taiwan, Shanghai and Shenzhen. In the same month, Standard Chartered

Bank entered into an agreement to acquire GE Money Pte., Ltd., a Singapore-based

provider of consumer financial services and a wholly-owned unit of US-based industrial

conglomerate General Electric Company. In March 2011, Standard Chartered acquired a

3% stake in United Stock Exchange of India, Ltd., an India-based currency futures

trading exchange.


4.4 KEY EMPLOYEES

Name Job Title Board CompensationPeter Sands Group Chief

Executive

Executive Board 7780000 USD

Steve Bertamini Group Chief

Executive Director &

Chief Executive

Officer, Consumer

Banking


Richard Meddings Group Finance

Director


Jaspal Singh Bindra Group Executive

Director and Chief

Executive Officer

Asia


Mike Rees Group Executive

Director & Chief

Executive Officer,

Wholesale Banking

Executive Board

John Peace Chairman Non Executive

Board

1619000 USD

Jamie Dundas Director Non Executive

BoardVal Gooding Director Non Executive

Board

226000 USD

Rudy Markham Director Non Executive

Board

292000 USD

Ruth Markland Director Non Executive 336000 USD


Board

Source: ()

4.5 MAJOR PRODUCTS AND SERVICES

Standard Chartered is a financial services provider. The group is active in retail and

wholesale banking. The group's key products and services include the following:

4.5.1 Consumer banking:

Credit Cards

Employee Banking

Insurance

International Banking

Investments

Loans and Mortgages

Personal banking

Private banking

Savings and Banking Services

SME banking

4.5.2 Wholesale banking:

Corporate Finance

Financial markets

Principal Finance


Transaction banking

Islamic banking:

Personal banking

Wholesale banking

4.6 REVENUE ANALYSIS

4.6.1 Overview

The group recorded revenues of $16,062 million during FY2010, an increase of 5.8%

over FY2009.

For FY2010, Other Asia Pacific, the group's largest geographic market, accounted for

19.7% of the total revenues.


Standard Chartered generates revenues through two business divisions: wholesale

banking (62.1%

Of the total revenues during FY2010) and consumer banking (37.9%).

4.6.2 Revenue by Division

The wholesale banking division recorded revenues of $9,979 million ($9,979 million) in

FY2010, an increase of 7.4% over FY2009.

The Consumer banking division recorded revenues of $6,079 million in FY2010, an

increase of 8% over FY2009.

4.6.3 Revenue by Geography

Other Asia Pacific, Standard Chartered’s largest geographical market, accounted for

19.7% of the total revenues in FY2010. Revenues from other Asia Pacific reached $3,165

million in FY2010, an increase of 9.6% over FY2009.

Hong Kong accounted for 15.6% of the total revenues in FY2010. Revenues from Hong

Kong reached $2,500 million in FY2010, an increase of 5.5% over FY2009.


Middle East & other S Asia accounted for 13.5% of the total revenues in FY2010.

Revenues from Middle East & other S Asia reached $2,167 million in 2010, an increase

of 4.3% over FY2009.

India accounted for 12.6% of the total revenues in FY2010. Revenues from India reached

$2,028 million in FY2010, an increase of 11.9% over FY2009.

Singapore accounted for 10.8% of the total revenues in FY2010. Revenues from

Singapore reached $1,738 million in FY2010, an increase of 9.2% over FY2009.

Korea accounted for 10.6% of the total revenues in FY2010. Revenues from Korea

reached $1,698 million in 2010, an increase of 9.3% over FY2009.

Americas UK & Europe accounted for 9.5% of the total revenues in FY2010. Revenues

from Americas

UK & Europe reached $1,520 million in 2010, a decrease of 15.6% compared to FY2009.

4.7 SWOT ANALYSIS

Standard Chartered is a financial services provider. The group is active in consumer and

wholesale banking. The operations of Standard Chartered are spread across 70 countries.

Though the group is based in UK, its operations are primarily focused in Asia, the Middle

East, and Africa. Standard Chartered's revenues are spread over different geographic

markets. The group's diversified revenues protect it, partially, from changing economic

cycles in different parts of the world. However, the group is threatened by inconsistent


global regulatory reform and general conditions in the banking industry which may

impact its profitability.

Source: ()

Strengths Weaknesses

Diversified revenue with a strong base in

Asia

Strong capital and liquidity position

Strong cost management sustaining

operating margins

Inorganic growth helping in geographic

expansion

Shift towards wholesale banking could

affect its growth prospects

Weak asset liability management

Exposure to Lehman Brothers has

tarnished image and caused financial

damage

Opportunities ThreatsAcquisition of GE Money in Singapore

increases market share in auto-loans

Growth in Islamic banking to help in

improving revenue from Middle East and

South Asia region

Investments in technology could help in

increasing customer reach and efficiency

Partnership with Chinese firms helping

increase penetration in China

Likely rise in wholesale funding cost

could affect margins

Inconsistent global regulatory reform

likely to increase compliance cost

Inability to deal with financial crime

could result in huge financial liability

Political turmoil in some Middle

Eastern and African markets likely to

result in contraction of geographic

footprint


4.7.1 STRENGTH

Diversified revenues with a strong base in Asia:

The operations of Standard Chartered are spread across 70 countries. It has a network of

over 1,700 branches and outlets and 5,600 ATMs in more than 70 countries and

territories across the globe.

Though the group is based in UK, its operations are primarily focused in Asia, the Middle

East, and Africa. Standard Chartered's revenues are spread over different geographic

markets. Asia provided more than 80% of the group's income and its operating profit in

FY2009 and FY2010. In 2009, for the first time, income from the group's biggest markets

- Other Asia Pacific exceeded $3 billion in revenues. Additionally, income from its other

big Asian markets like Hong Kong, India, and Middle East and Other South Asia -

exceeded $2 billion in revenues, each, reflecting Standard Chartered's increasing

diversity. The group's diversified revenues protect it, partially, from economic cycles.

Strong capital and liquidity position:

Standard Chartered's capital position remained strong in FY2010. The group's Tier 1 ratio

was 14% (11.5% in 2009), well above regulatory target range. The group's Core Tier 1

ratio at December 31, 2010 was 11.8%, compared to 8.9% at the end of 2009. It was

strengthened by strong organic equity generated through $5.2 billion rights issue.

Additionally, the group’s capital was strengthened by retained profits of $4.4 billion and

the issue of Indian Depository Receipts in June 2010 of $503 million. Further, Standard


Chartered remains highly liquid. The group remains a net lender into the interbank

market and had an advance to deposit (AD) ratio of 77.9% at December 31, 2010. The

group's strong capital and liquidity position helps it to deal with future changes in an

uncertain economic and regulatory environment.

Strong cost management sustaining operating margins:

Standard Chartered maintained tight control over its expenses in FY2009 and FY2010. In

FY2010, revenues registered an annual growth of 5.8% while operating income rose by

18.9%. Consequently, operating margin improved from 33.9% in FY2009 to 38.2% in

FY2010.The group's cost management effectiveness is also evident from flat cost to

income ratio. The normalized cost to income ratio improved from 56.1% in 2008 to

55.9% in 2010. Strong cost management is sustaining the group's profit margins even in a

difficult international banking environment.

Inorganic growth helping in geographic expansion:

Standard Chartered has history of growing aggressively through both organic and

inorganic route. The group has been very active in scouting for inorganic targets since

2000. It has acquired more than 15 financial services firm during last decade (2001–10).

Additionally, during this time, it also made strategic investments in financial services

companies located throughout the world. For instance, in June 2010, it invested in

Agricultural bank of China, one of the top commercial banks in China. Earlier in 2008,

Standard Chartered increased its investment in UTI Securities to 74.9%.


Inorganic growth has helped it to expand its geographic footprint from 50 countries in

2001 to 70 countries in 2010.

4.7.2 WEAKNESSES

Shift towards wholesale banking could affect its growth prospects in the last three to four

years; Standard Chartered has shifted its focus to wholesale banking led growth. Income

from wholesale banking registered a year-on-year growth of 24.1% in FY2009 while in

2010 the growth was 7.4%. During the same time, consumer banking division grew by

-5.4% in FY2009 and 7.9% in FY2010. The wholesale banking strategy seems to be

working well. However, unlike in consumer banking, banks find it hard to squeeze

margins in wholesale banking. Moreover, there seems to be a shift towards consumer

banking and growth prospects in wholesale banking look limited.

Weak asset liability management:

Standard Chartered’s asset and liability management was adversely impacted in FY2010.

This happened primarily because the group re-invested its maturing investments at lower

yields in the early part of 2010. As a result, accrual income was lower, largely because of

flatter money market yields, especially in markets such as the US and Hong Kong.

Additionally, the group’s cash balances increased $14.6 billion compared with 2009,

because of $5.2 billion collected from rights issue and strong growth in deposit. As the

alternate deployment of this surplus cash is pending, it has parked surplus fund at central


banks. This will further affect the earning capability of the company as deposits and cash

will outgrow loan book accounts. Weak asset liability management would affect the

earnings of the group.

Exposure to Lehman Brothers has tarnished image and caused financial damage:

Standard Chartered has some exposure to Lehman Brothers that was declared bankrupt in

2008. The group has sold a Lehman Brothers-linked structured derivatives product to its

Hong Kong customers. Bankruptcy of Lehman Brothers triggered the Securities and

Futures Commission and Hong Kong Monetary Authority to seek damages from

Standard Chartered. In its 2010 annual report, the group mentioned that it settled the suit

relating to Lehman’s structured notes by agreeing to pay $192 million. Though, the group

has settled the suit, it is still to emerge from the reputation damage suffered due to the

sale of Lehman Brothers-linked structured derivatives product. The group’s sales of

structured products are likely to see a dip in the months to come.

4.7.3 OPPORTUNITIES


Acquisition of GE Money in Singapore increases market share in auto-loans Standard

Chartered has entered into an agreement to acquire GE Money Pte., Ltd., a Singapore-

based provider of consumer financial services and a wholly-owned unit of US-based

industrial conglomerate General Electric Company. As of December 31, 2009, GE

Money (Singapore) had gross assets of S$2,350 million ($1,672.48 million). The assets to

be acquired are modest relative to Standard Chartered's overall balance sheet of $516.5

billion at the end of December 2010.

Yet the purchase will give Standard Chartered a double-digit share of the Singapore auto-

loan market, where it has not been active for a decade. Standard Chartered already earns

about 15% of its profit before tax in Singapore, and the deal will increase the size of its

consumer business there, in line with the group's stated strategy. Owing to high car prices

in Singapore, a car loan can be a significant financial liability for many households, and

therefore a material addition to Standard Chartered's product suite. Standard Chartered

has been restructuring its consumer bank, with an emphasis on improving cross-selling,

similar to what it has achieved with its wholesale bank. The addition of auto finance

capability should support this goal in Singapore and bolster Standard Chartered's broader

efforts to return its consumer bank's earnings contribution to historical levels after several

years of wholesale bank earnings dominance.

Growth in Islamic banking to help in improving revenue from Middle East and South

Asia region:

Islamic finance has become a major global industry, with hundreds of institutions

currently involved in both Muslim countries and international markets. Assets of


financial institutions offering Islamic products and services are estimated to have reached

to approximately $300 billion, registering a growth of 25% year-on-year over the past

decade. Islamic banking assets are expected to grow at a faster rate than non-Islamic

banking assets. By 2013, Islamic banking assets are expected to touch $1 trillion. Since,

Standard Chartered has strong presence in Middle East and South Asia, the group is

expected to benefit from the growth in the industry.

Investments in technology could help in increasing customer reach and efficiency:

Standard Chartered has been deploying significant resources (though it doesn’t disclose

R&D spend) to transform its banking infrastructure. For instance, recently, the bank has

standardized its platforms, re-engineered its processes and directed its activities towards

its principal shared service centers in Chennai, Kuala Lumpur, and Tianjin. These

initiatives has helped it to drive down technology and operating running costs as a

percentage of income from just over 12% six years ago, to less than 8% currently, even

during a period of substantial volume growth. Additionally, the bank is also registering

reducing unit transaction costs and has markedly reduced service failures, down by 70%

in three years.

The company has also been investing in technology in order to increase its customer

reach. For example, in Africa, it partners with telecommunication providers in several

markets to enable people to use their mobile phones for payments and transfers, whether

or not they hold a bank account. Additionally, in Singapore and Malaysia, it launched

Breeze, an iPhone banking application that enables customers to pay bills, transfer


money, and find ATMs though their Apple phone. Investments in technology could help

the group in increasing customer reach and efficiency().

Partnership with Chinese firms helping increase penetration in China:

Standard Chartered has been operating actively in the Chinese securitization market. The

group assisted many organizations in China in this market. Standard Chartered assisted

Industrial and Commercial Bank of China (ICBC) in the issuance of assets-backed

securities. The bank provided the whole-process securitization value-added service

including professional experience and the high-efficiency trading system and

securitization products for the Chinese lender. Standard Chartered also assisted ICBC on

its internal preparation work of securitization business and also in the product promotion.

The bank also offered its services to many Chinese banks including China Construction

Bank, China Development Bank, China Merchants Bank, China CITIC Bank, and Fujian-

based Industrial Bank in the assets-backed securitization pilot. In 2010, the group

invested $500 million in Agricultural Bank of China Limited's H-Share in Hong Kong.

The two firms signed an agreement to develop new business opportunities together.

Standard Chartered can leverage its partnerships with Chinese firms to increase its

penetration in China().

4.7.4 THREATS

Likely rise in wholesale funding costs could affect margins:


The Independent Commission on Banking (ICB), which has been given the task of

structural and related non-structural reforms to the UK banking sector, released its

Interim Report on April 11, 2011. Under the proposals set out in the ICB interim report,

UK bank's retail arms will be ring-fenced, holding their own capital. This means that

investment banking arms will not have to fund on a standalone basis, as they will be

allowed to move capital about within the group once a level of 10% core tier one capital

is achieved in the retail subsidiary. However, with these retail operations ring-fenced,

costs of funding are likely to rise. According to the ICB report, the proposals if

implemented could result in a cost of $20 billion to $24.6 billion for UK banks. Since, the

group is registered and listed in the UK; the likely rise in wholesale funding could affect

its margins.

Inconsistent global regulatory reform likely to increase compliance cost:

Inconsistent global regulatory reform remains one of the biggest concerns for Standard

Chartered bank. Rather than seeing increasing global co-ordination and consistency of

regulation, Standard Chartered is seeing increased fragmentation and unilateral action.

For example, the UK’s recent announcement that the bank levy will be implemented in

full during 2011 means that the levy will cost it around $180 million post-tax this year.

Whilst it is broadly supportive of much of the regulatory reform agenda, the sheer scale


of actual and potential changes, when applied across all the markets it operates in,

represents a very considerable challenge. The directions of banking regulatory reforms

suggest that cost of compliance is likely to increase in 2011 and beyond. Moreover

management's time spent on regulatory issues is likely to be higher than it had been so

far. As a result, profit margins for banks are likely to be suppressed.

Inability to deal with financial crime could result in huge financial liability:

Standard Chartered, being an international bank, has to deal with money laundering,

terrorist financing, fraud, bribery, and market abuse issues. Although it is investing

significantly in tools to identify market abuse and to tackle fraud, particularly e-crime,

any slip-up from the bank’s side could make it liable for huge financial liability or may

also result in reputation loss.

Political turmoil in some Middle Eastern and African markets likely to result in

contraction of geographic footprint:

Standard Chartered faces challenges in some Middle Eastern and African markets from

political turmoil. For instance, rapid political changes in Egypt, Tunisia, and Libya can be

disruptive for the bank’s business activity in the short-to-medium term. Although,

currently these markets represent small portion of its overall business, any further

deterioration in their political scenario or unrest in any of the existing or new Middle

Eastern or African markets could lead to contraction in the bank’s geographic footprint().


4.8 TOP COMPETITORS

The following companies are the major competitors of Standard Chartered PLC

Citigroup Inc.

HSBC Holdings plc

State Bank of India

ICICI Bank Limited

Lloyds TSB Group plc

Credit Suisse Group

Deutsche Bank AG

Goldman Sachs Group

Fortis

HDFC Bank Limited


4.9 LOCATIONS AND SUBSIDIARIES

Head Office

Standard Chartered PLC

1 Aldermanbury Square

London, EC2V 7SV

GBR

P: 44 20 78858888

F: 44 20 78859999

http://www.standardchartered.com

Standard Chartered India

Standard Chartered Bank

90 Mahatma Gandhi Road

Mumbai 400 001

IND

http://standardchartered.co.in

http://www.standardchartered.com/

http://standardchartered.co.in/


5. RESEARCH DESIGN

5.1 Research Design

This has been classified into 4 parts:

A. Sample Selection & Size;

B. Sampling Procedure;

C. Data Collection; and

D. Analytical Tools.

5.1.1 A. Sample Selection & Size

i) The first step of research is sample selection, for which the respondents were customers

in Patna. The total customers covered were 150. The same number of questionnaires was

distributed, but only 135 fully-completed questionnaires were received. Results are based

on the response of these 135 responses only.

ii) For the bank customers’ satisfaction survey, 160 customers of Standard Chartered

were taken for a few days. Sampling was easy because we could approach them as and

when they came to the branch.

5.1.2 B. Sampling Procedure

The customers are selected by the Convenience Sampling method. It is also known as

Accidental or Haphazard sampling().


5.1.3 C. Data Collection

For the present study, the survey method was used for collecting primary data. A

structured questionnaire was used for the purpose. The questionnaire included mostly

multiple choice questions. The main source of secondary data has been Proquest

Database, IRDA website and Journal of Marketing.

5.1.4 D. Analytical Tools

The data thus collected, was tabulated, interpreted and analyzed with a view to make the

study meaningful. In the present study, percentage, frequency, cross tabulation methods

and SPSS have been used for analysis.

Life insurance products are mainly assigned to provide to a survivor, family or business,

in the event of the death of the insured. This product helps the customer to replace

income, repay mortgages, debts and taxes, and also provide liquidity for other purposes.

There are two basic types of life insurance policies: term insurance, which provides

coverage for a specified period of time (term), and endowment insurance, which

combines a death benefit with a cash value component. The endowment insurance offers

lifetime protection, while term insurance may be the most affordable option for buying

life insurance, mainly for the financial protection it offers, and when the need for life

insurance is temporary.

Based on the demographic profile, various products have been created, and continuous

product innovations are done to meet the growing needs of the different segments of the

society. Some of the product categories offered to the different segments is shown in

Table 1


Table 1: Various Insurance Plans for Different Age Groups

Age Group (in Yrs) Policy 0-20 Children Plan: Educational Needs, Marriage Plans20-49 Money Back, Endowment Plan, Loan Cover, Term

Plans, ULIPs: Investments, Tax Planning50 and Above Pension Plans: Security and Regular Flows


6. ANALYSES OF DATA

The data collected through the structured questionnaire were coded and tabulated

according to the needs of the study.

Survey 1

6.1 DEMOGRAPHIC PROFILE:

Of the total respondents, 73.4% are male, while 26.6% are female.

Table 2: Gender

Frequency Percent Valid Percent

Cumulative

Percent

Valid F 34 26.6 26.6 26.6

M 94 73.4 73.4 100.0

Total 128 100.0 100.0

.


Respondents are mostly from the age grouping 26-30 (25%), followed by 20-25 (21.1%),

and 31-35(20.3%).

Table 3: Age


Cumulative

Percent

Valid20-25 27 21.1 21.1 27.3

26-30 32 25.0 25.0 52.3

31-35 26 20.3 20.3 72.7

36-40 11 8.6 8.6 81.3

41-45 18 14.1 14.1 95.3

>50 8 6.3 6.3 6.3

Total 128 100.0 100.0


Most of the respondents (71.9%) are married.

Table 4: Marital status


Cumulative

Percent

Valid Married 85 66.4 66.4 66.4

Others 1 .8 .8 67.2

Single 42 32.8 32.8 100.0

Total 128 100.0 100.0


Again, 28.9% of the respondents have an annual income in the range of 2-3 lacs.

Table 5: Income Range (in lacs)


Cumulative

Percent

Valid <1 25 19.5 19.5 19.5

1-2 15 11.7 11.7 36.7

2-3 37 28.9 28.9 65.6

3-4 32 25.0 25.0 90.6

>5 7 5.5 5.5 25.0

Total 128 100.0 100.0


Most of the respondents (43.8%, 56 out of 128) are private employees. The respondents’

demographic profile, in terms of the frequency and percentage, is detailed in Tables and

graphically as well.

Table 6: Occupation


Cumulative

Percent

Valid Business 10 7.8 7.8 7.8

Farmer 1 .8 .8 8.6

Govt. Employee 32 25.0 25.0 33.6

Others 19 14.8 14.8 48.4

Private Employee 56 43.8 43.8 92.2

Self Employed 10 7.8 7.8 100.0

Total 128 100.0 100.0


Table 7: Insurance Company * Type of policy Cross tabulation

Count

Type of policy

TotalChild Benefit Money Back pension plan Simple Term ULIP

Insurance Company Aviva 0 3 0 0 3 6

Bajaj Allianz 1 6 0 2 1 10

Birla Sun 0 3 0 1 0 4

CanaraHSBC 0 0 0 0 2 2

HDFC Life 3 1 0 3 0 7

Kotak Mahindra 0 2 0 4 2 8

LIC 2 48 2 24 4 80

Reliance 0 0 0 1 0 1

SBI Life 0 3 0 5 2 10

Total 6 66 2 40 14 128


As shown in table 62.5% respondents have policies of LIC and 37.5% have policies of

private companies like HDFC Standard Life, Kotak Life, Aviva, Birla Sun Life, Bajaj

Allianz etc.

Of the respondents, 51.6% have Money Back Plan, out of which 72.72% plans are of

LIC. 31.3% of the respondents have Simple Term Plan, out of which 60% are of LIC,

which means that customers still prefer public sector companies when compared to

private sector companies. In the ULIP (Unit Linked Insurance Polices) Plan category,

37% of the total policies (11%) belong to LIC again. Only 1.6% and 4.7% of the total 128

respondents have Pension Plans and Child Benefits Plans respectively.

6.2 PURPOSE OF BUYING AN INSURANCE POLICY


The results of this survey (Table 8) show that protection is the main purpose of buying an

insurance policy. It accounts for almost 50% of the purposes. Many respondents cited

Income Tax rebate as the main purpose of buying a policy.

Table 8: Purpose


Cumulative

Percent

Valid Income Tax 29 22.7 22.7 22.7

Protection 59 46.1 46.1 68.8

return 4 3.1 3.1 71.9

Return 6 4.7 4.7 76.6

returns 1 .8 .8 77.3

Savings 29 22.7 22.7 100.0

Total 128 100.0 100.0


It is observed from the data (Table: 9) that only 9.3% of the policy holders faced

problems by their insurer. So, the industry seems to be doing good providing better

services to its customers.

Table 9: Insurance Company * Problem( y/n) Cross tabulation

Count

Problem( y/n)

TotalNo Yes

Insurance Company Aviva 5 1 6

Bajaj Allianz 8 2 10

Birla Sun 3 1 4

CanaraHSBC 2 0 2

HDFC Life 7 0 7

Kotak Mahindra 8 0 8

LIC 73 7 80

Reliance 1 0 1

SBI Life 9 1 10

Total 116 12 128


Private players like Kotak, HDFC Life, and CanaraHSBC didn’t register any problem and

that shows the efficiency and competitive environment these players have brought in.

It is also observed from the data (Table: 10) that 77.34% of the respondents will suggest

to a friend or relative about their insurance company and its services.

100% customers of Birla Sun and CanaraHSBC said they will definitely suggest to their

friends, which means they are totally satisfied with company policies and services.


Table 10: Insurance Company * Suggest Others to get insured Cross tabulation

Count

suggest Others to get insured

TotalNo Yes



Birla Sun 0 4 4

CanaraHSBC 0 2 2

HDFC Life 3 4 7


LIC 12 68 80

Reliance 1 0 1

SBI Life 1 9 10

Total 29 99 128


However, a considerable 15% of the LIC policy holders would not suggest their friends

and relatives to buy policies from LIC. This indicates that there is a good market for

private players and they can really take a leap forward to gain a significant market share.

Customers of Bajaj Allianz are mostly dissatisfied and would not suggest others to go for

it.

When the question was asked to the respondents regarding how they would cover an

additional insurance need in the near future, and whether they would acquire a policy

from some other company, or from the same insurance company, 60.9% told that they


Table 11: Insurance Company * Go with the same insurer Cross tabulation

Count

Go with the same insurer

TotalNo Yes



Birla Sun 1 3 4

CanaraHSBC 2 0 2

HDFC Life 5 2 7


LIC 18 62 80

Reliance 1 0 1

SBI Life 4 6 10

Total 50 78 128


would buy from the same company, while 39.06% told that they would buy from other

companies. By doing a cross tabulation of company name vs. new insurance (Table: 11),

it is found that 77.5% customers of LIC will again go to the same insurer for additional

policies in future. It can be a set-back for the private players operating in Patna to know

that there is still a huge demand for LIC. Though private companies are coming up with

many innovative and moneymaking policies, LIC holds a better brand image here. Many

customers of private players say that they would not go to the same insurer for additional

policies. This can be attributed to their desire to try out other insurers who are giving

better offers and product features.


6.3 OBSERVATIONS

The following observations can be derived from the analysis:

• 73.4% respondents are male while 23.6% are female;

• Respondents are mainly from the age group 26-30 (25%);

• Most of the respondents (43.8%, 56 out of 128) are private employees;

• 62.5% respondents have policies of LIC and 37.5% have policies of private

companies like HDFC Standard Life, Kotak Life, Aviva, Birla Sun Life, Bajaj

Allianz etc;

• 51.6% have Money Back Plan, out of which 72.72% plans are of LIC. 31.3% of

the respondents have Simple Term Plan, out of which 60% are of LIC. This

means that money back policy is the hot favorite among the Patnaites;

• Only 11% of the respondents have ULIP ;

• Only 1.6% and 4.7% of the total 128 respondents have Pension Plans and Child

Benefits Plans respectively;

• Protection is the main purpose of buying an insurance policy;

• A significant 15% LIC policy holders faced problems;

• 77.34% of the respondents would suggest their friends and relatives to take

policies from their insurers;

• Only 60.93% of the respondents will buy additional policies from the same

insurer.


6.4 Survey 2 (Customer Satisfaction)

Case Processing Summary

N %

Cases Valid 160 100.0

Excludeda 0 .0

Total 160 100.0

a. Listwise deletion based on all

variables in the procedure.Reliability Statistics

Cronbach's

Alpha N of Items

.715 12

Factor Analysis Output


KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.699

Bartlett's Test of

Sphericity

Approx. Chi-Square 73.684

df 66

Sig. .839


Component Matrixa

Component

1 2 3 4 5

Friendly & Courteous Manner

.559

Knowledge of bank's products & ServicesWillingness to listen and respond to your needFast and efficient service

.580

Recognition of you as valued customerProfessional and attractive appearance

.511

Clean & well cared facilitiesEfficient, no wait service

.652

No long line ups at counter

.595

Availability of information brochuresPleasant & attractive decor

-.569

Automatic bank machines in convenient locations

.721

Extraction Method: Principal Component Analysis.a. 5 components extracted.


Rotated Component Matrixa

Component

1 2 3 4 5

Friendly & Courteous Manner

.591

Knowledge of bank's products & ServicesWillingness to listen and respond to your need

.519

Fast and efficient service

-.651

Recognition of you as valued customer

.572

Professional and attractive appearance

.645

Clean & well cared facilities

.517

Efficient, no wait service

.721

No long line ups at counter

.727

Availability of information brochures

.630

Pleasant & attractive decor

-.579

Automatic bank machines in convenient locations

.695

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.a. Rotation converged in 12 iterations.


6. FACTORS DERIVED OUT OF FACTOR ANALYSIS (SPSS)

○ Speedy response of customer service team

(Willingness & ready to respond to your need + Efficient No wait Service + No

Long line ups at counter)

○ Professionalism at work place

(Friendly & Courteous manner + professional & attractive appearance)

○ Branch infrastructure & maintenance

(Clean and well cared facilities + Pleasant & Attractive décor + Automatic Bank

machines at convenient locations)

○ Recognition as a valued customer

○ Resource Availability

(Fast & Efficient service + Availability of information brochure)


7 LEAD GENERATION TECHNIQUES

In order to generate sales leads, you need three things:

• A written profile of your target prospect,

• A list of suspects containing potential prospects,

• A method of reaching your sales prospects.

So how important is lead generation? For any business, products or services, selling is the

only way of sustenance. It is one of the primary activities that marketers indulge in. If

you are not doing good sales, probably you need to look back on your sales lead

generation efforts. It is possible that you are not doing the right things required for

generating leads in your industry. You need to spend more time on analyzing and

creating a strategy that will effectively work for you.

One should never rest on the laurels. Customers do switch, die, get choosy and these

things lead to attrition. The result is you having very few or no prospects for your product

or services. So it should be kept in mind that lead generation has to be continuous in

nature. Businesses do flourish because of customer retention and customer acquisition.

New customers are to be added in order to keep the sales revenue on the go.

In this section, I am going to discuss eight methods of reaching sales prospects.

7.1 COMPLEMENTARY PARTNER REFERRALS

I put this sales lead generation method first because this one generates the highest quality

sales leads. How you do this depends on the market you are in.


If you are selling business to business, you want to strike up relationships with sales reps

from companies who call on the same businesses as you do. An example is if you sell car

insurance service, then partner with a few car dealers. These reps call on the same

customers as you and you complement each other by sharing leads and information about

customers and prospects().

Disadvantages: In this technique, it may so happen that the person who is giving a

reference of another person may already have the product. Moreover, for complementary

partner referrals to work, the company needs to keep a high degree of sales and services

satisfaction. If the customers are not satisfied, they would refuse to give any reference.

This is why the company should maintain a good name in the market in terms of their

offerings and their utilities have to be better than the competition.

7.2 COLD CALLING

As much as nearly everyone dislikes this one, it is very effective for sales lead generation

when executed properly. If you consistently prospect for leads by phone, you will

consistently generate sales leads.

Disadvantages: Cold calling is quite a traditional way of lead generation and still

preferred by the sales team. But there are a few disadvantages to be looked at.

Government regulations state that no company can disturb people between 10PM &

10AM. Apart from that, people get annoyed and disturbed when they get a cold call when

they are busy or even generally. This has resulted in DND (Do not Disturb) service by the

telecom service providers. So, one cannot call anyone and everyone. Non-adherence to

the rules and regulation or unscrupulously making cold calls may have legal implications

and the company may find itself in soup.


7.3 LIVE SEMINARS

Live seminars are a great sales lead generation technique because you are usually

delivering you’re a pitch to a prospect very early in their buying process. The key to a

successful seminar is offering a solution to a problem that your target market really wants

to solve. You can give the pitch yourself, or get one of your company executives to do it

(sometimes business "celebrity" can help pull more sales prospects in).

Live seminars can be done inexpensively. The costs for in-person seminars are comprised

of room rental, refreshments, audio-visual equipment, and promotion. Teleseminars are

the least expensive, with the only costs being conference phone line rental and

promotion. Webinars are actually more expensive due to the hefty fees the online meeting

services charge to use their services.

Disadvantages: The flip side is you may not get a homogenous set of people.

Consequently, there would be only few takers out of the crowd. This will lead to

increased cost per head.

7.4 TRADE SHOWS

Trade shows are a good way to generates sales leads if you can find events highly

targeted to your prospect audience. Often such events yield low-quality sales leads

because they are attended by the recommenders and influencers and rather than the true

decision-makers.

This method is lower on the list, yet it is a valuable one if your company has the budget

and there are industry events well-targeted to your audience.


Disadvantages: As mentioned above, these shows are not generally attended by the

decision-makers, the purpose is lost. The cost is also relatively higher than other lead

generation techniques.

7.5 MASS MAILINGS

Sales letters are one of the more underused sales lead generation methods. There is an

entire industry of people dedicated to selling this way called direct marketing. But most

field sales reps and business professionals don't know how to use this technique well.

Success with this method comes as a result of mailing a well-written letter to a good

quality list of names (quality = targeted at your audience).

Disadvantages: Nowadays, people don’t even care to read mails sent by companies and

they go straight to Trash. Though mass mailing is inexpensive, it has some considerable

cost implications. Due to negligible positive responses from the targeted audience, the

efforts go in vain. People even mark such mails as Spam in order to do away with the

annoyance it brings along according to some.

7.6 ADVERTISING

This method can be highly effective when done right. You must find publications that are

able to deliver your target audience. You must run ads that stimulate people to take

action. To generate sales leads, you must avoid big-company style image ads().

I am no expert on advertising, but I do know that if you can't do this one right don't do it

at all because you can blow through your marketing budget fast.

Disadvantages: Utmost care has to be taken right from the initial phase. The content,

idea, execution, media vehicles and many other factors need to be looked at carefully.

Advertising generally increase the sales as per the advertising agencies. But one should


keep in mind that a bad advertisement may tarnish the brand image of your company.

Consequently, you will end up losing ground and the sales generation might get affected.

More than that, advertisements cost a fortune.

7.7 INTERNET ADVERTISING

This one is very appropriate for small businesses and some independent professionals.

With a well-designed website, you can generate sales leads through "ads" that the search

engines create from your WebPages. If you know what keywords your prospects are

likely to search for you with, then you can generate very targeted and qualified leads.

Disadvantages: This method is not for everyone though, as your prospects must be

searching for something related to your products, services or the problems that you solve.

Apart from that, a very meager percentage of our population has access to internet. You

need a lot of knowledge to actually make use of it. Over and above, too many scams

happen over the internet and many people do want to play safe.

7.8 EMAIL PUBLICATIONS

A sales rep or business owner could create an email newsletter and mail it to sign-ups

from an offer presented at a seminar, at a trade show, in a mass mailing, in an

advertisement, or on a cold call.

If you’re a sales rep, why not create your own email newsletter? You could send out

industry news and tips to suspects in your market. Eventually a few of them will become

customers because you are on their mind more often than your competition.

Disadvantages: Though it is extremely affordable, companies have to shell out a good

sum to get a writer and graphic designer to make a high quality of work. More than that,


the unsolicited mails go straight to the Spam. The target audience would not even open

the mail. So it is time, efforts and money wasted at times.

8 SALES TECHNIQUES

Undoubtedly, it is the main body of the sale which provides an opportunity to the

salesman to present his product physically before the potential buyers.

8.1 PRESENTATION

In salesmanship, presentation means proper arrangement and decoration of the products

so as to increase the outward decorum. Presentation also includes the interior decoration

of your place. Effective presentation is highly essential in selling goods as well as

services because generally customers come to a place attracted by the appearance of the

salesman, counter, displays etc().

8.2 DEMONSTRATION

Demonstration means pointing out clearly the quality and features of the product and

proving them with certainty. In salesmanship, demonstration is nothing but providing the

statement about the quality, utility, performance and service of a product put up for sale

by means of evidences, experiments etc.


8.2.1 Significance of Demonstration

A good demonstration provides a number of advantages. Some of the important aspects

of demonstrations are as follows:

• Demonstration enables the salesman to show specific features of the product or

service more clearly which may not be presented orally.

• It creates a lasting impression in the minds of the prospective buyers because they

see the live demonstration of the product or handle them personally

• It gives the prospects an opportunity to experience the benefits and utilities to be

derived from the owning of the demonstrated product().

9 THE CLOSE


The final stage of the selling process is closing the sale. This is the climax of the various

efforts made during the earlier stages of selling process which includes prospecting,

presentation, demonstration and overcoming objections. The ultimate objective of the

selling plan is to sell products and services to the consumers. If the salesman is not able

to close the sale successfully, all the earlier efforts simply go waste. So it becomes the

most important and crucial stage from the point of business

9.1 WHAT IS CLOSE

Closing is the action on the part of the salesman to close the sales transaction. Closing the

sale is nothing but making the prospect say ‘YES’ to the salesman’s proposition. It is the

simple and logical conclusion to a satisfactory and successful completion of the various

steps of the selling plan.

9.2 FEATURES OF SUCCESSFUL CLOSING

As pointed out earlier, closing a sale is of the most crucial test for the salesman. At this

stage of the selling process, the prospect is converted into a customer, the desire of the

prospect is converted into an expressed demand and the indecision is converted into a

specific decision. There are certain important requisites which help the salesman in

making a successful close. They are as follows:

✔ Positive Attitude: As the salesman and the prospect move along the various stages

of the selling process, automatically they become tense. However, it is better on

the part of the salesman to remain calm and handle the situation with enough

confidence. He should always remain alert and wait for the appropriate moment to

close a sale.


✔ Effective Presentation and Demonstration: The salesman should always try to

convince the prospect through an effective presentation and demonstration. This

is important because through effective demonstration and presentation only the

prospect is able to know the benefits and utilities of the product. This makes the

prospect think that he will get his money’s worth by buying the product offered

for sale.

✔ Hold the Attention: The salesman, in order to be successful, should always try to

hold and capture attention of the prospect towards the project. He should always

avoid diverting the prospect’s attention to other things. It may also happen that the

prospect may be mentally absent at the time of the sales talk. Therefore, before

starting the sales talk, the salesman should put his initial efforts to ensure the

concentration of the prospect of his sales talk. So, the salesman has to make all

efforts to keep the prospect hooked.

✔ Allow questions: A wise salesman always encourages the prospects to ask

questions about the producer and tries to remove the doubts from their minds. At

no point of the selling process, the prospect should think that the sale is being

forced upon him. Rather, the prospect should accept the sales proposition

willingly. All possible queries and doubts must be removed so that the prospect

accepts the product gladly and without any hesitation.

✔ Let the Prospect Decide: The salesman’s duty is to assist the prospect in taking a

wise decision to ultimately buy a product by which not only the salesman but also

the prospect will be benefitted. But the final decision to purchase the product is to

be left entirely on the prospect and he should be given complete freedom to make


the buying decision himself. At no point of time, the prospect should feel that the

sale is being forced on him by the salesman.

✔ Reserve Selling Points: An intelligent salesman never discloses all the selling

points during the course of the sales talk itself. Rather, he should reserve some

selling points often referred as unique selling propositions to be applied at

appropriate moments. Such reserved selling points are also known as surprise or

premium points. These points are used at crucial junctures when the prospect

remains undecided about the purchase. Use of these reserved selling points at the

right moment can be used to convert the prospects’ ‘no’ into ‘yes()’.

10 RECOMMENDATIONS

✔ The demand for insurance products is increasing as people are more aware

nowadays and they understand the importance of being insured. So the bank

should reap the benefits of the changing trend.

✔ Products of private players can be sold because of the targeted customers being

choosy and looking for better services and innovative product offerings. A better


and thorough marketing research on consumer behavior and latest economic

trends can give a profound understanding to do business more profitably.

✔ It is observed that most of the issues are related to the human capital. To keep the

satisfaction levels of Standard Chartered Patna customers, a robust CRM System

has to be in place.

The Customer Relationship Management or CRM system refers to the computer

software designed to help companies keep track of and easily access information

about the customers or clients the business is dealing with. It has become widely

used in recent years. A CRM system may also refer to the Sales Automation

Force (SFA) software and contact management software. These are usually part of

a good CRM system. A good software package will generally be in a range of 1.5-

2.5 crores. E.g. Avidian CRM software.

➢ The role of employee training and development is becoming more important as

companies are increasingly relying on the knowledge, skills and abilities of their

human capital to drive firm performance. So an exhaustive training program can

definitely help in keeping the bank’s performance healthy.

Training cost per

employee=

Total training costs

Headcount

In 2010, the average annual expenditure per employee increased to $955 after

remaining steady at $820 over the previous two years. Standard Chartered Patna

has 29 employees so the total expenditure will probably stand at $ 27695 or INR

1384750.


The cost involved is reasonable for a big foreign bank operating in India with

revenue of $2,028 million in FY2011

Training Costs

• Development costs (e.g., salaries and benefits of personnel, equipment).

• Direct implementation costs (e.g., training materials, technology costs, facilities,

travel, equipment, instructor’s salary and benefits).

• Indirect implementation costs (e.g., overhead, general and administrative).

• Compensation for participants.

• Lost productivity or costs of “backfilling” positions during training.

Source: U.S. Office of Personnel Management. (2000). A guide to strategically planning

training and measuring results. Washington, DC: Author.

✔ It is observed that in Patna, the number of Standard Chartered ATMs is very few.

To be precise, there are only 2 ATMs available in the whole of Patna. One is

located at East Boring Canal Road and the other one at Exhibition Road. One of

the major factors derived out of factor analysis shows that availability of

Automated Teller Machines at convenient locations is an important factor

affecting satisfaction levels of the bank’s customers(). Setting up a few ATMs at

some of the busiest and dense locations like Kankarbagh Colony, Patna City,

Station Road etc. Generally one NCR ATM machine, which is one of the largest

selling machines, will cost 8-10 lakhs. Over a period of 2 years at least, 4 ATMs

can easily be set up to ensure convenience for the bank customers. The cost will

spread over a period of 2 years and the budget will not be distorted in this way.

More convenience means more customers for Standard Chartered Patna.


✔ As of now Standard Chartered bank is into bancassurance but being a big player,

it should consider starting its own insurance products. The bank channels are

robust enough to support this new business. However, proper industry analysis,

market, consumer preferences etc are to be considered before taking any step

further.

.

11 CONCLUSIONS

The success of bancassurance greatly depends on banks ensuring excellent customers

relationship; therefore banks need to strive towards that direction. Bancassurance is going

to be a norm in the Indian markets. The banks want to give customers the comfort by

providing everything under one roof. This trend is likely to increase competition in the

insurance market as today’s distributors would probably become wholly owned insurance

subsidiaries of these banks. The environment is also quite conducive as the use of ATMs

and internet banking is increasing tremendously.

It can be inferred from the results how important the infrastructure and human capital

matter to become a successful banker in this competitive sector. If the factors are taken

care of, the satisfaction levels of customers are most likely to be on the better side.


Though these factors and their importance are known to everyone, proper execution of

the same is not done by many. Consequently, the impacts can be seen in their financials.

Many banks have done wonders within a short span of time by looking at the factors

minutely and worked tirelessly to generate better results. One of the best fitting examples

is Axis Bank, which was formerly known as UTI bank.

To reduce defection and remain competitive in this sector, high levels of customer

satisfaction must be one of the top priorities. Thoughtful planning and budgeting is

needed. Robust CRM system, advanced training for the employees and infrastructure

development will lead the bank to success. India is one of the hottest markets with over

18% CAGR for the banking sector. Standard Chartered PLC can leverage this trend to

add a few more billions to its revenue through its Indian subsidiary.

Innovative lead generation techniques will result in a win-win situation for all the parties

involved- the customer, the insurance companies and the banks. Tie-up arrangements

with more than one insurance company will also lead to better customer satisfaction due

to the variety they will bring. Better leaders and dedicated sales team will definitely bring

in better revenues in days to come. Some strategic thinking, thoughtful planning and

execution will do wonders. The possibilities are there to sell more through innovative

lead generation tools and techniques. The information era is going to assist the company

in a bigger way.

Private players will gain ground provided they come up with better services and products

range. The customers are ready to do some experiments and try out new products from

new insurers.


12 BIBLIOGRAPHY

Anderson, J. F., & Brown, R. L. (2005, January 5). Soa. Onttrek May 5, 23 uit

Soa Website: http://www.soa.org/files/pdf/P-21-05.pdf

Brown, S. (2010, October 10). Professional Sales Tips. Onttrek May 25, 2011

uit Professional Sales Tips Website: http://sales-tips.industrialego.com/sales-

articles/043003.htm

Checketts, D. (2006). Leverage: How to Create Your Own "Tipping Points" in

Business and in Life. New Jersey: The Career Press, Inc.

Datamonitor. (2011, April 25). Datamonitor. Onttrek May 20, 2011 uit

Datamonitor Website: http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?

sid=cce44033-ce68-408f-b308-31c4360f434b

%40sessionmgr112&vid=8&hid=105

FICCI. (s.j.). FICCI. Onttrek 05 21, 2011 uit FICCI Website: http://www.ficci-

b2b.com/site/FINANCE.pdf

IRDA. (2007, 07 12). IRDA. Onttrek 5 15, 2011 uit IRDA Official Website:

http://irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?

page=PageNo4&mid=2

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2011 uit RBI Website:

http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/80595.pdf

Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing Management A

South Asian Perspective 13th Edition. New Delhi: Dorling Kindersley (India)

Pvt. Ltd.

LIC. (2007, June 25). Life Insurance Corporation. Onttrek May 20, 2011 uit LIC

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Malhotra, N. K., & Dash, S. (2011). Marketing Research An Applied

Orientation Sixth Edition. New Delhi: Dorling Kindersley (India) Pvt. Ltd.

Narayan, J. H. (2010). IRDA Annual Report 2010. IRDA, Insurance Regulatory

Body (India). Hyderabad: IRDA.

Sadhak, H. (2009). Life Insurance In India. New Delhi: Sage Publications.


Sahu, P. K., & Raut, K. C. (2006). Salesmanship and Sales Management. New

Delhi: Vikas Publishing House Pvt. Ltd.

STANCHART. (2008, April 5). Standard Chartered India. Onttrek May 20, 2011

uit Standard Chartered India Website:

http://www.standardchartered.co.in/financial-

consulting/insurance/insurancepolicies.html

Wikipedia. (2011, February 14). Wikipedia. Onttrek May 20, 2011 uit

Wikipedia Website: http://en.wikipedia.org/wiki/Insurance_in_India

APPENDICES

➢ Survey Questionnaire- 1

Insurance Industry- A SurveyIntroduction: Thank you for taking some time out to complete this survey about the Insurance

Industry in Patna. This survey should not take more than 5 minutes to complete. The survey is

anonymous and any information gathered through this will be treated as confidential.

Furthermore, the results will be used solely for academic purposes.

RequiredTop of Form

Your Name *

Your Email ID


1. Please select your gender

Male

Female

Other:

2. Please select your age range (in years)

20-25

26-30

31-35

36-40

41-45

46-50

50 and above

3. What is your marital status?

Single

Married

Other:

4. What is your annual income?

(PLEASE SELECT YOUR RANGE IN INR)

Upto 1 lakh

1-2

2-3

3-4

4-5

5 and above

5. What is your occupation?

Govt. servant

Private employee


Self-employed

Businessman/Woman

Farmer

Other:

6. What is the main purpose of buying an insurance policy according to you?

Income tax rebate

Protection

Return

Saving

Other:

7. Do you have a life insurance policy?

(IF NO, YOU HAVE COMPLETED THE SURVEY)

Yes

No

8. What is the type of your plan?

(CHECK THE BOXES AS APPLICABLE TO YOU)

Simple Term Plan

Money Back Policy

ULIP

Pension Plan

Child benefit plan

Other:


9. Please let us know the name of your insurance company.

10. Have you faced any problem with your insurer?

(IF NO, PLEASE JUMP TO QUESTION 14)

Yes

No

11. What was the problem type?

(YOU CAN SELECT BOTH, IF APPLICABLE)

Claim settlement

Information

12. Did the company solve your problem regarding claim settlement or information, if any?

Yes

No

13. Were you satisfied with the solution?

Yes

No

14. If you take a new policy, would you go to the same insurance company?

Yes

No

15. Will you suggest someone to get insured from your insurer?

Yes

No

➢ Survey Questionnaire 2Bank Customer Survey

Please help us give you better services. Thank you for finding some time out for the survey.

* Required

Top of Form

Name *

Please assess the Following at Our Branch


CUSTOMER SERVICE RELATED

1- Strongly Disagree, 2- Disagree, 3- Neutral, 4- Agree, 5- Strongly Agree

Our employees have friendly & courteous Manner 1 2 3 4 5

Strongly Disagree

Strongly Agree

Tellers have the knowledge of bank's products & Services1 2 3 4 5

Strongly Disagree

Strongly Agree

We are willing to listen and respond to your need1 2 3 4 5

Strongly Disagree

Strongly Agree

We give fast and efficient service1 2 3 4 5

Strongly Disagree

Strongly Agree

We recognize you as a valued customer1 2 3 4 5

Strongly Disagree

Strongly Agree

Our people have professional and attractive appearance1 2 3 4 5

Strongly Disagree

Strongly Agree

Bottom of Form

Top of Form

BRANCH FACILITIESHow do you assess the following aspects of the branch facility?


Our branch is Clean & has well cared facilities1 2 3 4 5

Strongly Disagree

Strongly Agree

We provide efficient, no wait service1 2 3 4 5

Strongly Disagree

Strongly Agree

We don’t have long line ups at counters1 2 3 4 5

Strongly Disagree

Strongly Agree

Our branch ensures availability of information brochures1 2 3 4 5

Strongly Disagree

Strongly Agree

The premise is Pleasant & has an attractive decor1 2 3 4 5

Strongly Disagree

Strongly Agree

The bank has Automatic bank machines are located in convenient locations1 2 3 4 5

Strongly Disagree

Strongly Agree

Bottom of Form

➢ List of Life Insurers (Updated)


S.No NAME OF THE COMPANY NAME OF

PRINCIPAL

OFFICER

NAME OF APPOINTE

D ACTUARY

TELEPHONE NO./FAX No./E-MAIL & WEB ADDRESS

1. Bajaj Allianz Life Insurance Company Limited .GE Plaza, Airport Road , YerawadaPune411 006

Mr.Kamesh Goyal

Mr. Anil Kumar Singh

Tel : 020 - 66026777Fax : 020 -66026789.

2. Birla Sun Life Insurance Co. Ltd Reg. Office: One India Bulls Centre, Tower 1, 16th Floor, Jupiter Mill Compound, 841 , Senapati Bapat Marg,Elphinstone Road, Mumbai-400013.

Mr. Jayant Dua

Mr. Fabien Jeudy

Tel : 020 - 66026777Fax: 020 - 66026789Email :[email protected]

3. HDFC Standard Life Insurance Co. Ltd 2nd Floor, Trade StarKondivita JunctionAndheri Kurla RoadAndheri EastMumbai 400059.

Mr. Amitabh Chaudhry

Mr. Ashley Edward Rebello

Tel : 022-67516666Fax: 022-2822 8844

4. ICICI Prudential Life Insurance Co. Ltd ICICI Prulife Towers , 1089, AppasahebMarathe Marg, Prabhadevi, Mumbai 400 025.

Sri V. Vaidyanathan

Mr. Avijit Chatterjee

Tel :022-56621996Fax: 022-56622031

5. ING Vysya Life Insurance Company Ltd.ING Vysya Home, 5th Floor, #22 Mahatmagandhi Road Bangalore-560 001.

Mr.Kshitij Jain

Ms. HemamaliniRamakrishnan

Tel : 080-25328000Fax: 080-25559764

6. Life Insurance Corporation of IndiaYogakshema, Jeeva Bima Marg, Post Box No. 19953 MUMBAI 400 021

Shri T S. Vijayan

Mr. T Bhargava

Tel 56598701;56598702Fax: 22824386E-Mail ; [email protected]

mailto:[email protected]

http://www.licindia.com/

http://www.licindia.com/



http://www.ingvysyalife.com/

http://www.ingvysyalife.com/

http://www.iciciprulife.com/

http://www.iciciprulife.com/

http://www.hdfcinsurance.com/

http://www.hdfcinsurance.com/


http://www.birlasunlife.com/birlasunlife/insurance/bsli_mp/index5.aspx

http://www.bajajallianzlife.co.in/

http://www.bajajallianzlife.co.in/


7. Max New York Life Insurance Co. Ltd 11th Floor, DLF Square , Jacaranda Marg,DLF City , Phase-II, GURGAON 122 002.

Shri Rajesh Sud

Mr.John CharlesPoole

Tel : 0124-2561717Fax: 0124-2561764

8. Met Life India Insurance Company Ltd.Brigade Seshamahal, No. 5, Vani VilasRoad , Basavanagudi, BANGALORE-560 004.

Mr. Rajesh Relan

Mr. M S V SPhanesh

Tel : 080-26438638Fax: 080-26521970Toll Free No. 1-600-44-6969

9. Kotak Mahindra Old Mutual Life Insurance Limited9th Floor, Godrej Coliseum,Behind Everard Nagar,Sion (East),MUMBAI-400 022..

Mr. Pankaj Desai

Mr. Andrew Willis Cartwright

Tel : 022-6621 5999Fax:022-6621 5757, 6621 5858

10. SBI Life Insurance Co. Ltd Turner Morrison Building, 2nd Floor, 16,Bank Street, Fort Mumbai-400 023.

Mr. Mahadev NagendraRao

Mr. Sanjeev KumarPujari

Tel : 022-56392000Fax: 022-56621471

11. Tata AIG Life Insurance Company Limited5th 7 6th Floor, Peninsula Tower, Peninsula Corporate ParkGanpatrao Kadam Marg, Lower Parel, MUMBAI 400 013.

Mr. M. Suresh

Mr. Heerak Basu

Tel : 022-66516000 Fax : 022-66550711

12 Reliance Life Insurance Company Limited.1st Floor, Midas, Sahar Plaza,AndheriKurla Road, Andheri East, Mumbai 400059.

Mr. Malay Ghosh

Ms. PournimaGupte

Tel : 022-30883434/ 30887261Fax: 022-30886587

13 Aviva Life Insurance Company India LimitedAviva Tower, Sector Road, Opposit Golf Course, DLF-Phase V, Sector-43,Gurgaon - 122 003

Mr. T. R.Ramachandran

Mr. K. K. Dharni

Tel: 0124-270 9000/01,Fax: 0124-270 9007.

http://www.avivaindia.com/

http://www.avivaindia.com/

http://www.reliancelife.com/

http://www.reliancelife.com/

http://www.tata-aig-life.com/

http://www.tata-aig-life.com/

http://www.sbilife.co.in/

http://www.kotaklifeinsurance.com/

http://www.kotaklifeinsurance.com/

http://www.metlife.co.in/

http://www.metlife.co.in/

http://www.maxnewyorklife.com/

http://www.maxnewyorklife.com/


14 Sahara India Life Insurance Co, Ltd. Sahara India Bhawan, Kopoorthala Complex,Lucknow 226024

Mr. N. P. Bali,CEO ( Officiating)

Mr. Pravir Chandra

Tel: 0522-2337777Fax: 0522-2378200

15 Shriram Life Insurance Co, Ltd. Regd. Office : 3-6-478, 3rd Floor, AnandEstate, Liberty Road, Himayat Nagar,Hyderabad - 500029

Mr R Duruvasan

Mr. Theo BernhardScheffler

Tel: 040-23434466-72Fax: 040-23434488

16 Bharti AXA Life Insurance Company Ltd. 601-602 6th Floor,Raheja TitaniumOff Western Express HighwayGoregaon (E) Mumbai – 400 063

Mr. Glenn Williams

Mr. G L N Sarma

Tel: 022 – 40306300/6301Fax: 022 - 40306347

17 Future Generali India Life Insurance Company Limited 001, Delta Plaza, Ground Floor, 414, Veer Sarvarkar Marg, Prabhadevi,Mumbai 400 025.

Mr. Deepak Sood

Mr. D Sai Srinivas

Tel No.: 022-40976666

Fax No.: 022-40976600

18 IDBI Federal Life Insurance Company Ltd., Tradeview, Oasis Complex, Kamala City, P.B. Marg, Lower Panel (W),Mumbai-400 013

Mr. G.V. N ageswara Rao

Mr. Michael J Wood

Tel No.: 022-24908109/10

Fax No.: 022-24941016

19 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. 1st Floor, B Block, First India Place, Vatika Tower, MG Road, Sushant Lok, Phase IGurgaon 122002

Mr. Harpal S. Karlcut

Mr. Chirag ShamjiRathod

Tel: 0124– 44535506Fax: 0124-44535999

http://www.canarahsbclife.in/



mailto:%[email protected]




http://www.idbifortis.com/

http://www.idbifortis.com/

http://www.futuregenerali.in/

http://www.futuregenerali.in/

http://www.bharti-axalife.com/

http://www.bharti-axalife.com/

http://www.shriramlife.com/

http://www.shriramlife.com/

http://www.saharalife.com/

http://www.saharalife.com/


20 AEGON Religare Life Insurance Company Limited. GYS Heights, 2nd Floor, Paranjpe “B” Scheme, Subhash Road, NearGarware House,Vile Parle (E), Mumbai – 400 057

MR. RajivJamkhedkar

Mr. K.S. G opalakrishnan

Tele No.-022-67292929 Fax No.- 022 67293333

21 DLF Pramerica Life Insurance Co. Ltd.

4th Floor Tower B, Building No.-9,DLF Cyber City, Phase-III, Gurgaon-122002.

Mr. Kapil Mehta (MD & CEO)

Mr. Pradeep KumarThapliyal

Ph. No.-0124-4697000

Fax No.-0124-4697100 / 200

22 Star Union Dai-ichi Life Insurance Co. Ltd., Star House, 3rd Floor, (West Wing), C-5,Bandra-Kurla Complex,Bandra (East), Mumbai 400 051

Mr. Kamalji Sahay(MD & CEO)

Mr. I SAMBASIVA RAO

Phone: 022-39546211 e-mail:[email protected]

23 IndiaFirst Life Insurance Company Limited301, 'B' Wing, The Qube, Infinity Park,Dindoshi - Film City Road,Malad (East), Mumbai - 400 097.

Dr. P. Nan dagopal

Mr. C handan Kum ar Kha snobis

Phone: 022 39418700Fax: 022 33259500

Source: IRDA

END OF THE DOCUMENT







http://www.indiafirstlife.com/



http://www.sudlife.in/

http://www.sudlife.in/

http://www.dlfpramericalife.com/

http://www.dlfpramericalife.com/




http://www.aegonreligare.com/

http://www.aegonreligare.com/

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