Loan and Advances of HSBC

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Loan and Advances of HSBC



Definition of Entrepreneur

1. The Shorter Oxford Dictionary, 1989

“Person who starts and organizes a commercial enterprise, especially involving financial risk

2. The New Encyclopaedia Britannica

“As the individual who bears the risk of operating a business in the face of uncertainty about future conditions & who is rewarded accordingly by his profit or lossess.”

3. Nicholas C Siropolis

“Entrepreneur is a person who organizes, operates and assumes the risk of his or her own venture.”

Definition of Entrepreneurship

1. Kuratko D.F & Hodgetts RM

“The Process of organizing managing and assuming risk of a business.”

2. Koontz and Fulmer

“The ability of a person who a business opportunity, to get together the capital needed to the advantage of the opportunity, and to stat a business taken the risk of failure in the both of reaping the rewards of success”.

3. An Expert

“ The act of starting a business”.

4. Nathaniel H.Leff

“Entrepreneurship is the capacity for motivation, investment and expansion in new markets, products & techniques.”

The terms entrepreneur & entrepreneurship are interlinked, one can think of the one without the other. The theme or discipline that suggests the explanation is based on the same principles whether the terms are use with reference to large institution or an individuals who starts and runs his or her new venture single and handedly.

stics Attributed to Entrepreneurs

Many authors who dealt with the topic either as researchers or as writes of texts discussing small business and or entrepreneurs/entrepreneurship identified a number of characteristics of entrepreneurs. These are sometimes found to be related and often diverse. Some of such characteristics are:

1 Confidence 11 Orientation
2 Perseverance, diligence 12 Positive response to challenge
3 Energy, diligence 13 Independence
4 Resourcefulness 14 Time competence efficiency
5 Ability to take calculate risk 15 Responsibility
6 Dynamism, leadership 16 Foresight
7 Optimism 17 Accuracy, throughtness
8 Need to achieve 18 Cooperatives
9 Creativity 19 Profit orientation
10 Ability to influence others 20 Ability to learn from mistakes

Organized Sources of Assistance in Bangladesh

Bangladesh do not possess much of inherited entrepreneurial tradition. Erst while Pakistan from which Bangladesh came from did nothing mentionable towards promoting entrepreneurial initiatives. All their efforts were mainly directed fro the then West Pakistan with some very insignificant ones made in name only for the then East Pakistan, now Bangladesh. There decades after the emergence of Bangladesh, now a days there are a number of organizations, governmental & private devoted directly or indirectly to assist the entrepreneurial initiatives. These are:

Governmental Agencies Non-Governmental Agencies
1. Board in Investment 1. Grameen Bank
2. Bangladesh Shilpa Bank 2. MIDAS
3. Bangladesh Shipa Rin Sangstha 3. BRAC
4. Investment Corporation of Bangladesh 4. Private Commercial Banks
5. Nationalized Commercial Banks 5. Private Insurance Companies
6. Bank of Small Cottage Industries 6. Federation of Chambers of Commerce & Industries
7. Bangladesh Krishi Bank 7. National Association of Small & Cottage Industries of Bangladesh
8. Bangladesh small Industries Corporation 8. Leasing Companies
9. Controller of Imports & Exports 9. Proshikha
10. Export promotion Bureau
11. Trading corporation of Bangladesh
13. Bangladesh Standards & Testing Institute



2.1 Introduction

The financial institutions especially banks have undergone a tremendous change in recent years due to high competition. They always try to expand their business, so that they are offering venous products & services to the customer. As a multinational bank HSBC Is not an exception of them.

They are not only competing with the local banks but also with the foreign banks, which have strong capital base and new approach to offer services to their customers. In this new regime of liberalization banks are facing huge competition. They are to adopt new strategy for their banks to attract their customers because in this situation the customer are sensitive to the services of the bank and they compare services and If they find any opportunity to other banks they switch and get benefit.

Another important thing that has also brought competition in the banking sector is the adoption of technology-based products and services. If any bank is lagging behind this race they are knocked out of the market and this has proved the great saying “survival of the fittest. Another factor that forced the bank to change their strategy to cope with situation Is the entrance of many non-bank financial institutions that did not adopt the true definition of bank but providing different services of the banking In nature. As a result, to maintain a sustainable growth has become a great challenge for the bank. In this competitive situation HSBC offered various products & services to attract the customers that I tiled my best to find out and describe in this paper.

2.2 Background of the study

Any academic course of the study has a great value when it has practical application in the real life. Only a lot of theoretical knowledge will be little important unless It is applicable In the practical life. So we need proper application of our knowledge to get some benefit from our theoretical knowledge to make It more fruitful when we engage ourselves in such field to make proper use of our theoretical knowledge In our practical only then we come to know about the benefit of the theoretical knowledge. When theoretical knowledge Is obtained from a course of study it is only the half way of the subject matter. The report is titled “Different Products & Services Offered by Multinational Banks In Bangladesh: A Case Study of The Hong Kong and Shanghai Banking Corporation Limited.” As a student of Marketing this study will be more significant in my practical life.

2.3 Objectives of the Study

General objective of this report cognates the Internship purpose. The internship objective is to gather practical knowledge and experiencing the corporate working environment with the dose approximation to the business firm and the experts who are leading and making strategic decisions to enhance the growth of a financial institution.

Every task has its respective goals or objectives without which the work is meaningless. Keeping the following objectives in my view I have prepared this thesis paper.

• To fulfill the partial requirement of Internship program.

• To gain practical exposures in different banking activities

• To familiar with the working environment In bank

• Calculating sustainable growth of bank’s different items.

• To apply theoretical knowledge In the practical field.

• To observe the products & services of specific branch and the bank as a whole.

• To be acquainted with day to day functioning of service oriented banking business.

• To study existing banker customer relationship.

• To learn about variation of products & services.

• To learn about general banking.

2.4 Methodology of the Study

The information gathered for this report through the use primary and secondary source. Initial contacts with key persons have been made through personal contacts. Sub sequent interviews with the concerned infidels have been used for collecting information. Additional secondary information has been collected from company’s published yearly publications. Data and information are collected through the following ways:

Primary sources of data:

o Interviews both formal and informal were taken from the officers of HSBC.

o Observing the procedure of banking activities followed by relevant departments.

o Face to face discussion with the respective officers of the branch.

o By interviewing customers at HSBC, Dhanmondi Branch.

Secondary Sources of Data:

Internal Sources

o Previous Annual Reports published by HSBC.

o Brief History published by HSBC.

o Reading various relevant files.

o Deskwork: during the practical orientation I worked at Customer Services Department (CSD)

o Prior research reports

o Any information regarding the Banking sector

External Sources

o Different books and periodicals related to the banking sector

o Bangladesh Bank Report

o Newspapers

2.5 Scope of the Study

This report is done only on one particular organization. This report focuses on Product & Services and also the nature, types and functions of general banking operated by the Dhanmondi Branch of HSBC Ltd. in Bangladesh. Since HSBC is still in Its growth stage in Bangladesh; It has still to go a long way to achieve Its destination. The report will mainly focus on recent Product & Services offered by HSBC In Bangladesh to attract their customers.

2.6 Limitations of the Study

Every project has some limitation. During the course of my practical orientation I faced some usual constraints.

· Time frame for the research was very limited. The actual survey was done within a month.

· Large-scale research was not possible due to constraints and restrictions posed by the organization.

· The research only covers the customers of Dhanmondi Branch.

· The survey was limited to the customers of Personal banking division and does not cover the organizational or corporate customers of KSBC.

· Part on organizational culture was written from individuals perception and may vary from person to person.

· In many cases, to date Information was not published.

· Getting Relevant papers and documents were strictly Prohibited.

· Many procedural matters were conducted directly In the operations by the top management level, which also gave some sort of restrictions.

· To protect the organizational loss in regard of maintaining confidentiality, some parts of the report are not in depth.


Banking Sector in Bangladesh

3.1 Definition of Bank

Whoever, being an individual firm, company or corporation generally deals’ in the business of money and credit Is called a bank. In our country, any institution, which accepts for the purpose of lending or Investment deposits of money from public, repayable on demand or otherwise, and with transferable by checks draft order & otherwise Is called a bank?

The purpose of Banking is to ensure transfer of money from surplus unit to deficit units Banks In all countries work as the repository of money. The owners look for safety and amount of Interest for their deposits with Banks. Entrepreneurs try to obtain money from the banks as working capital and for long term investment These entrepreneurs welcome effective and forward-looking advice for Investment Banking sector thus owe a great deal to the deposit holders on the one hand and the entrepreneurs on the other. They are expected to play the role of friend, philosopher, and guide for the deposit holders and the entrepreneurs.

3.2 Banking Sector in Bangladesh:

Since liberation, Bangladesh passed through fragile phases of development In the Banking sector. The nationalization of Banks In the post liberation period was Intended to safe the Institutions and the Interest of the depositors. Those handling the banking sector have borne the burden of putting banks on reliable footings. Despite all that was done, some elements of irregularities appeared. With the assertion of the role of the Central Bank, the Bangladesh Bank started adopting measures for putting banking institutions on right track Yet the preponderance of public sector management of banks left some negative effects In the money market In particular and the economy In general The agility among the borrowers manipulates the banking sector as a whole. In effect, a default culture, among other effects, appeared on the scene.

The opening of private and foreign participants to the banking sector was intended to obtain desirable results from banking. The authorization of private banks was designed to create competition among the banks and competition in the form of efficiency within and the productivity In enterprises funded by banks. Unfortunately, for the people, at large, banking sector is yet to obtain the credit for efficiency, credibility and growth.

The clever, among the user of banking services, have Influenced the management of banks, for obtaining short term and long term loans. They sometimes showed inflated equity to get money for Investment in businesses and industry. Few diverted their loan money to purposes different from the loan proposals, and Invested In non profitable units have failed to repay their loans to the banks. For this reason new entrepreneurs are not getting capital while defaulting entrepreneurs have started obtaining either relief In the form of rescheduling of the repayment program or additional inevitable money for diversified units.

But now, the situation Is changing day by day, Bangladesh Bank is taking more initiative for reducing the bad loan. The banks’ are also taking smart techniques and decision to reduce the bad loan and Investing In more secured place. This Is not only good for the banks but also good for Bangladesh economy, because Investors are trying to improve their business decision & Innovating more constructive business plan.

For the improvement of banking sector, Bangladesh Bank took some changes in Banking Company Ad in the recent year and some changes also in progress. Which are as follows?

• Every bank has to increase their paid up capital and reserve from 10 million to 20 million.

• There should not be more than 13 directors in a bank (except the Investors).

• If any family holds more than 5% of share, then two directors may be appointed from that family at best

• If any family holds less than 5% of share, then one director may be appointed from that family at best.

• Excepts the Managing Director, other directors should not hold his post more than two times continuously.

• Excepts these rules, Bangladesh Bank enhanced the penalties more Ideal for the miss users of these Act.

Bangladesh Bank is trying to improve the strength of banking sector of Bangladesh, for this reason it wants to Increase banks paid up capital and reserve from 20 million to 40 million between few years. Because In India its now 30 million and in Pakistan its 50 million. If any bank face difficulty to improve their paid up capital and reserve then Bangladesh Banks suggestion Is to merge with another bank.

3.3 Banks in Bangladesh:

There are 48 (forty eight) banks in Bangladesh. The banks and the number of branches are as follows:


Name of Bank

Number of Branches
UrbanArea RuralArea Total Approval for newbrandies in 2007
A. Nationalized Commercial Banks(4)
1.Sonali Bank Ltd. 381 803 1184 0
2. Janata Bank Ltd. 324 519 843 0
3. Agrani Bank Ltd. 298 568 866 0
4. Rupali Bank Ltd. 235 256 491 0
Sub Total 1238 2146 3384 00
B. Specialized Banks (5)
5. Bangladesh Krishi Bank 77 871 948 0
6. Rajshahi Krlshi Iinnayan Bank 33 331 364 0
7. Bangladesh Shilpa Bank (Industrial) 15 0 15 0
8. Bangladesh Shilpa Rin Sangstha 02 0 02 0
9. Basic Bank Ltd 29 01 30 0
Sub Total 156 1203 1359 00
C. Private Commercial Banks (30)
10. Pubali Bank Ltd. 201 160 361 05
11. Uttara Bank Ltd. 153 54 207 05
12. Arab Bangladesh Bank Ltd. 52 18 70 00
13. International Finance & Investment & Commerce Bank Ltd. (IFIC) 51 19 70 05
14. Islami Bank Bangladesh Ltd. 125 61 186 10
15. National Bank Ltd. 71 30 101 – 10
16. The City Bank Ltd. 67 16 83 00
17. United Commercial Bank Ltd. 62 22 84 00
18. The Oriental Bank Ltd. 26 04 30 00
19. Eastern Bank Limited 27 03 30 05
20. National Credit & Commerce Bank Ltd. 43 10 53 05
21 PrIme Bank Ltd. 48 13 61 10
22. South East Bank Ltd. 32 09 41 10
23. Dhaka Bank Ltd. 28 13 41 07
24. AI-Arafah Islami Bank Ltd. 37 09 46 00
25. Social Investment Bank Ltd. 20 04 24 00
26. Duch Bangla Bank Ltd. 35 14 49 10
27. Standard Bank Ltd. 23 06 29 05
28. One Bank Ltd. 23 07 30 05
29. Exim Bank Ltd. 27 08 35 05
30. Mercantile Bank Ltd. 31 10 41 06
31. Bangladesh Commerce Bank Ltd. 25 00 25 00
32. Mutual Trust Bank Ltd. 22 08 30 05
33. First Security Bank Ltd. 16 04 20 05
34. The Premier Bank Ltd. 20 07 27 01
35.BankAsiaLtd. 23 07 30 05
36. Trust Bank Ltd. 25 09 34 08
37. Shahajalal Islami Bank Ltd. 21 05 26 05
38. Jamuna Bank Ltd. 26 09 35 05
39. BRAC Bank Ltd. 26 10 36 10
Sub Total 1386 549 1935 142
D. Foreign Commercial Banks (9)
40. Commercial Bank of Ceylon Ltd. 06 00 06 00
41. The Standard Chartered Bank 19 00 19 00
42. Habib Bank Ltd. 04 00 04 00
43. State Bank of India – 04 00 04 00
44. National Bank of Pakistan 02 00 02 00
45. City Bank N. A. 04 00 04 00
46. Woori Bank Ltd. 01 00 01 00
47 The HSBC Ltd. 08 00 08 01
48. Bank Alfala Ltd. 05 00 05 00
Sub Total 53 00 53 01
Grand Total 2833 3898 6731 143

3.4 Banking in Bangladesh:

Banking is the backbone of national economy. All sorts of economic and financial activities revolve round the axis of the bank. As the industry produces goods and commodities, so does the bank creates and controls money-market and promotes formation of capital. From this point of view, banking-a technical profession- can be termed as industry. Services to its customers are the products of banking industry besides being a pivotal factor in promoting capital formation in the country. As all economic and fiscal activities revolve round this important ‘Industry, the role of banking can hardly be over emphasized.

circumstances being such, It becomes Imperative to find out the role that now planning in the country and analyze its operational aspects so as to ascertain the Importance of this delicate financial sector and Its over all Impact on our national economy. To ascertain the role of banks and to analyze Its operational aspects and its overall Impact on our national economy a through study as to Its distribution, expansion and contribution Is essential to comprehend Its past, present and future bearings for the growth and development of the banking sector of the country. In the global context, the role banks is far – reaching and more penetrating In the economic and fiscal discipline, trade, commerce, Industry, export and import- all carried through the bank. Banks are the only media through which international trade and commerce emanate and entire credit transactions, both national and International.


Company Profile

4.1 Introduction

The HSBC Group was born from one small Idea a local bank serving local needs. In March 1865, HSBC opened Its doors for business In Hong Kong and today It welcomes customers all over the world.

The Intervening years have formed the character of HSBC. Its experiences have created Its core strengths of resilience, adaptability and capability for Innovation. A glance at its history explains why it believes in capital strength, strict cost control and In building long-term relationships with customers. HSBC has weathered change in all forms — revolutions, economic crises, new technologies – and has adapted to survive. Growth has come organically and through strategic acquisitions, and these purchases have brought their own strengths and cultures to the Group.

The resulting corporate character of HSBC enables It to meet the challenges of the financial world of today and tomorrow.

4.2 History:

Headquartered in London, HSBC Holdings plc is one of the largest banking and financial services organizations in the world. HSBC’s international network comprises over 10,000 offices in 83 countries and territories In Europe, the Asia­ Pacific region, the Americas, the Middle East and Africa.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; consumer finance; commercial banking; corporate, investment banking and markets; and private banking. At 30 June 2007, the Group’s total assets amounted to US$2,150 billion. It has 315,000 employees and over 125 million customers around the world.

Although the Group’s holding company, HSBC Holdings plc, was formed as recently as 1991, many of Its principal constituent companies opened for business over a century ago and have long experience In their home and International markets. The story of the growth and ‘development of these companies is rich In variety and achievement, with an International pedigree that is unique In banking history.

4.3 The making of the modern HSBC Group:

When The Hongkong and Shanghai Banking Corporation acquired the Mercantile Bank and The

British Bank of the Middle East In 1959, It laid the foundations of today’s HSBC Group. In these acquisitions and, by the later investment In Hang Seng Bank In 1965, the bank grew and diversified through subsidiary companies with their own experience and expertise.

In the late 1970s, this ‘group’ approach was a key factor In the strategy for expansion In markets where previously The Hong Kong and Shanghai Banking Corporation was not well represented, particularly In North America and Europe. In the United States, this expansion centered on the

Purchase a 51 per cent shareholding in Marine Midland Bank in 1980. This purchase, at a cost of US$314 million, nearly doubled the Group’s assets, from HK$128 billion to HK$243 billion. The remaining shares were purchased In December 1987, making Marine Midland the Group’s principal subsidiary In the United States.

In Europe, The Hong Kong and Shanghai Banking Corporation sought a partnership similar to its investment in Marine Midland. In 1981, its plans to acquire the Royal Bank of Scotland, countering a bid from Standard Chartered Bank, were thwarted when the UK Monopolies and Mergers Commission ruled against both bids. six years later, however, the bank signaled Its continuing interest in the major British banks when it purchased a 14.9 per cent interest in Midland Bank. A co-operation agreement between the bank and Midland allowed the two banks to consolidate and rationalize their international catties by reciprocal transfers of business as, for example, the transfer of Midland Bank Canada to Hong Kong Bank of Canada in 1988.

The formation of HSBC Holdings plc In 1991, creating a holding company for the entire Group with its shares quoted in London and Hong Kong, showed that the Group viewed Europe and the

London market in particular, as a vital part of its future development. This strategy was made dear when, in March 1992, HSBC Holdings announced that It would make a recommended offer for full ownership of Midland. In late April Lloyds Bank, one of the other British clearing banks, indicated that It was also considering an offer for Midland. That possible offer was dropped shortly after HSBC announced Its final offer In June 1992, valuing Midland at £3.9 billion. The offer became unconditional In July, the Group’s total assets from £86 billion In 1991 to over £170 billion In 1992.

HSBC’s acquisition of Midland created one of the largest finandaf organizations of Its kind in the world. Attention now turned to integrating and consolidating the business of the enlarged Group. HSBC was spending keen to see a synergy of the Interests of the major subsidiary companies. Treasury operations In London, New York and Tokyo were integrated and common standards In technology were Introduced. Similarly, between 1992 and 1994, HSBC drew together Its activities In merchant banking, securities and asset management~ and then enhanced its private banking and securities custody business. In each of these areas of business, the enlarged Group benefited from a greater level of co-ordination and a commitment to effective technology and training. The results of these efforts were reflected In HSBC’s performance, with profits attributable to shareholders increasing from £586 million in 1991 to more than E2,000 million In 1994.

An important result of the acquisition of Midland was the transfer in January 1993 of the Group’s head office — but not that of The Hong Kong and Shanghai Banking Corporation Ltd — from Hong Kong to London to meet the requirements of the UK regulatory authorities. Although the Bank of England now became the lead regulator for HSBC Holdings, the banking subsidiaries continued to be regulated locally in their country of operation. HSBC’s traditional concern for rapid decision-making and local accountability meant that the new Group Head Office In London provided only the essential central functions, such as strategic planning, human resource managements legal and company secretarial and financial planning and control. In 19g8, HSBC announced that these head office functions, together with most of the Group’s London-based businesses and operations, would be relocated to a new headquarters building In London’s Docklands. The 45-storey tower, designed by Foster and Partners, was officially opened In April 2003. The new building quickly brought advantages in communications, logistics and working conditions for some 8,000 HSBC staff.

In the late 1990s and early 2000s, HSBC vigorously developed Its role as one of the world’s leaders In banking and financial services Its strategy of ‘Managing for Value’ emphasized the Group’s unique balance of business and earnings between the older, mature economies and the faster-growing emerging markets. The creation of new subsidiaries in South America In 1997, for Instance, extended HSBC’s reach in emerging markets, as did the acquisition of all of Lloyds 158’s assets relating to Brazil In 2003.

In contrast, the acquisition In 1999 of Republic New York Corporation and Safra Republic Holdings S.A. for US$9.85 billion reinforced HSBC’s presence In the highly developed markets of the United States, Switzerland and Luxembourg. The third-largest deposit-taking bank In the New York metropolitan area and a leading name in private banking, Republic matched HSBC’s aim of delivering wealth management In key financial centers around the world. A further major Investment followed when HSBC announced in April 2000 a US$11 billion recommended offer for Credit Commercial de France (CCI). Established In 1894, CCF brought Into the Group a network of 650 branches In France and greatly strengthened HSBC’s presence In the euro zone.

In November 1998, HSBC announced the adoption of a unified brand, using HSBC and Its hexagon symbol nearly everywhere It operates, with the aim of enhancing recognition of the Group and Its values by customers, shareholders and staff throughout the world. The branding Initiative allowed HSBC to develop new services and products on a worldwide scale, all beating the Group’s Identity.

Launched In 2000, HSBC Premier provides round the- clock International services for the Group’s most valuable personal customers. The HS8C brand has also proved Its worth in a series of global marketing programmers and sponsorship. Since 2002, the HSBC identity has carried the strap line ‘the world’s local bank’ emphasizing the Group’s experience and understanding of a great variety of markets and cultures.

Although HSBC’s acquisitions and growth since 1992 had brought greater geographical balance, its position in North America did not yet match Its prominence In Asian and European markets. As

a platform for growth In that region, In 1999 the shares of HSBC Holdings plc were listed on the New York Stock Exchange In parallel, HSBC’s share structure was simplified by introducing a single class of ordinary shares denominated in US dollars. Acquisitions were also essential to a larger role In the region and In 2003 the purchase of Household International, Inc added substantially to the Group’s business and profile; Household’s network of over 1,300 branches provided consumer finance to over 53 million customers.

The Investment in North America was matched south of the border by a series of purchase. In 2002, HSBC acquired and recapitalized Grupo Financier Bital In Mexico and In 2006 purchased Grupo Banlstmo. Based In Panama, Grupo Banistmo was the leading banking group In Central America and gave HSBC access to new markets, with offices In Colombia, Costa Rica, El Salvador, Honduras and Nicaragua.

Despite Its adventures overseas, HSBC still has a dear focus on its place of birth. In 2005 HSBC celebrated 140 years of business In China and continues to grow in the region. The branch network In China expanded to 62 outlets by the start of 2008, and new products and services were provided to the growing customer base, Including offering reminding services to Chinese citizens. In April 2007 HSBC announced the formation of a locally incorporated bank – HSBC Bank (China) Company limitted – and in the same year received permission to become the first international bank to establish a bank in rural China. HSBC has also built up a network of strategic partners In the region, taking significant stakes In Bank of ShanghaI (2001), PIng An Insurance Company of China (2002), and Bank of CommunIcations Limited (2004).

HSBC reinforced Its long-standing commitment to the environment in 2004 when It became a founder member of the climate Group and, In the following year, achieved its target of becoming the first major bank to become carbon neutral. Major programs are In place to embed sustainable practices Into the everyday business of the Group, Including Issuing lending guidelines for environmentally sensitive sectors such as forestry and chemicals. This work gained recognition In 2007 when HSBC won the first Financial Times Sustainable Banking Award.

Today HSBC occupies a leading position In the world of banking and finance with an International network that spans six continents. Its distinctive history and experience places HSBC In a strong position to meet the challenges of the rapidly changing business environment of the 21d century. HSBC has traveled a long way since Its beginnings in 1865 – from a small local bank to the world’s local bank

4.4 Principal members of the HSBC Group

Company by date of entry into the NSBC

Group of origin of entry (name in 2008)

(name at entry into Use Group)BirthplaceDate of originDate of entryThe Hongkong and Shanghai Banking Corporation


(Hongkong and Shanghai Banking Company

Limited)Hong Kong18651865HSBC Bank Middle East Limited The British Bank of the Middle EastLondon18891959Hang Seng Bank limited

Hang Seng Bank LimitedHong Kong19331965

The Saudi British BankRiyadh19781978The Saudi British Bank   HSBC Bank USABuffalo18501980Marine Midland Bank, N.A.   HSBC Bank CanadaVancouver19811981Hongkong Bank of Canada   HSBC Bank Egypt S.A.E.Cairo19821982Hongkong Egyptian Bank S.A.E.   HSBC Bank Australia LimitedSydney19861986Hongkong Bank of Australia Limited

HSBC Bank Egypt S.A.E. Cairo 1982 1982
Hongkong Egyptian Bank S.A.E.
HSBC Bank Australia Limited Sydney 1986 1986
Hongkong Bank of Australia Limited
HSBC Bank plc Birmingham 1836 1992
Midland Bank p/c
HSBC Trinkaus & Burkhardt KGaA DÜsseldorf 1785 1992
Trinkaus & Burkhanit KGaA
HSBC Guyerzeller Bank AG Zurich 1894 1992
Bank GuyeizellerAG
HSBC Bank Malaysia Berhad Kuala Lumpur 1994 1994
Hongkong Bank Malaysia Bethad
HSBC Bank BrasH S.A.-Banco Móltiplo Curitiba 1952 1997
Banco Bamerindus do BrasllS.A.
HSBC Bank Argentina S.A. Buenos Aires 1903 1997
Banco Robe,ts SA.
HSBC Bank USA New York 1966 1999
Republic New York Corporation
HSBC Republic Bank (Suisse) SA Geneva 1988 1999
Republic National Bank of New Yo (Suisse) SA
HSBC Bank Malta p.l.c. Valletta 1882 1999
Mid-Med Bank
HSBC France Pans 1894 2000
Credit Commercial do France LA.
HSBC Bank A.S . Istanbul 1953 2001
Demirbank TAS
HSBC Mexico, S.A Mexico City 1941 2002
Grupo financiero Bital, LA. do C V
HSBC Finance Corporation Minneapolis 1878 2003
Household International, Inc.
The Bank of Bermuda LImited HamiLton 1889 2004
The Bank of Hemiuda Limited
HSBC Bank (Panama) S.A. Panama City 1984 2006
G,vp, Banistmo LA.
HSBC China (China) Company Limited Shanghai 2007 2007
HSL9C China (China) Company Limited

4.5 HSBC’s International Network:

The HSBC Group’s International network comprises of some 9,500 offices in 79 countries and territories. A brief list is executed below:

Region Number of offices
Americas 5,708
Asia-Pacific 693
Europe 2,897
Middle East & Africa 172


To ensure that key resources (management time, capital, Human resources and Information technology) are correctly allocated and that the exchange of best practice is accelerated between entitles, the group has classified the countries where It operates into 3 categories: the large, the major and the international.

These classifications are a function of sustainable, attributable earnings, the number of retail clients, balance sheet and size of operation. A brief presentation of this classification Is shown below:

4.6 HSBC Principal Business Entities:

The group Is represented by different business entitles In over 83 countries and territories around the world. It would be difficult to list them all Individually so the name of the major entitles Is shown on the following page a Long with their region and volume of operation.

KSBC Group Vision:

• To become the world’s leading financial service company

• To balance group earnings between the OECD and the emerging markets.

HSBC Group Mission:

To be the Bonding Company that guarantees in the market to satisfy appropriately and professionally the bonding needs of our obligors and the assurance of timely fulfillment of our bond to our beneficiaries.

HSBC Group Values:

• Long term, ethical client service

• High productivity through teamwork

• Confident and ambitious sense of excellence

• International character, conservative orientation

• Capable of creativity and strong marketing

4.7 HSBC’s Business Principles & Values:

The HSBC Group is committed to five Business Pimples:

• Outstanding customer service;

• Effective and efficient operations;

• Strong capital liquidity;

• Conservative lending policy;

• Strict expense discipline;

4.7 HSBC also operates according to certain Key Business Values:

• The highest personal standards of Integrity at all levels;

• Commitment to truth and fair dealing;

• Hand-on management at all levels;

• Openly esteemed commitment to quality and competence;

• A minimum of bureaucracy;

• Fast decisions and Implementation;

• Putting the Group’s Interests ahead of the individual’s;

• The appropriate delegation of authority with accountability;

• Fair and objective employer;

• A merit approach to recruitment/ selection /promotion;

• A commitment to complying with the spirit and letter of all laws and regulations;

• The promotion of good environmental practice and sustainable development and commitment to the welfare and development of each local community.

HSBC Brand & Corporate Identity:

The Hexagon logo of HSBC derives from HSBC’s traditional flag, a white rectangle divided diagonally. Like many other Hong Kong company flags in the last century, the design of the flag was based on the cross of ST. Andrew, The Patron Saint of Scotland.

HSBC brand & corporate Identity represents what HSBC wants Its brand to mean to Its customer. It is derivers from the groups:

Corporate Character

HSBC Is a prudent, cost conscious, ethically grounded, conservative, trustworthy International builder of long term customer relationships.

Basic Drives

Higher productivity, Team Orientation, Creative Organization & Customer Orientation.


To be the world’s leading financial company. The essence of HSBC brand Is Integrity, trust and excellent customer service. It gives confidence to customers, value to Investors & comfort to colleagues.


HSBC in Bangladesh

5.1 HSBC in Bangladesh:

HSBC obtained license from Bangladesh Bank on The HSBC Asia Pacific group 1 April 1996 to conduct banking business In the country and commenced formal banking operations on 3 December 1996 through opening a branch at Dhaka. In Bangladesh , the HSBC Group Is represented by Hong Kong bank , which has Its head office In Hong Kong and a holding company, HSBC holding plc which is incorporated in England on 41 December 2000, total capital and reserve of HSSC In Bangladesh were BDT 535.7 million , which comprised capital BDT. 441.6 million And supplementary capital BDT. 94.2 million.

Realizing the huge potential and growth In personal banking industry In Bangladesh, HSBC extended Its operation to the personal banking sector In Bangladesh and within a very short span of time it was able to build up a huge client base. Extending its operation further, HSBC opened two branches at Chittagong, six branch offices at Dhaka (Guishan, Kawran Bazar, Mothijheel, Dhanmondl, Uttara and Banani) and one branch in Sylhet.

HSBC Bangladesh is under strict supervision of HSBC Asia Pacific Group, Hong Kong. The Chief Executive Officer of HSBC Bangladesh manages the whole banking operation of HSBC in Bangladesh. Under the CEO there are heads of departments who manage specific banking functions e.g. Personal banking, corporate banking, etc. Currently HSBC Bangladesh Is providing a wide range of services both two Individual and corporate level customers. In the ‘,‘ear 2000, the bank launched a wide array of personal banking products designed for all kinds of (middle and higher-middle Income) individual customers. Some such products were Personal loans, car loans, etc. Recently the bank launched three of Its personal banking products – Tax loan, Personal secured loan & Automated Tele Banking (AIB) service. These products are designed to meet the diverse customer needs more completely.

HSBC in Bangladesh also specializes In self-service banking through providing 24-hour ATM services. Recently It has introduced Day & Night banking by Installing Easy-pay machines in Banani, Uttara and Ohanmondi to better sadist’s the needs of both customers and non-customers. In total HSBC currently has 22 ATM’S and 6 Easy-pay machines located at various geographical areas of Dhaka & Chittagong.

5.2 HSBC Bangladesh at a Glance:

Name of the Organization: The Hong Kong Shanghai Banking

Corporation Bangladesh LTD

Year of Establishment 1996

Head Office: Anchor Tower, 1/1-B, Sonargaon

Road Dhaka 1205, Bangladesh

Nature of the organization: Multinational Company with

subsidiary group in Bangladesh.

Capital: Paid up capital: BDT. 4380 million

Deposit – BDT. 4,980 million

Advance — BDT. 3,255 million

Shareholders: HSBC group shareholders

Products Savings & deposit services.

Personal Loan products.

Corporate and Institutional services.

Trade services

Number of OMces: 9 (Dhaka: Kawran Bazar, Motljheel,

Guishan, Dhanmondl, Uttara, Banani, Chittagong:

Osman Court, GEC and Sylhet)

Number of ATM’s: 22

Number of Easy Pay Machines: 6

Number of employees: 835

Technology Offers Phone Banking Services and

full online banking from branch to branch and also from Dhaka to Chittagong.

Service Coverage &

Customers: Serves Individual and corporate

customers within Dhaka & Chittagong and Sylhet

Financial Services:

It means any service or product of a financial nature that Is subject to, or governed by, a measure adopted or maintained by a party or by public body that exercises regulatory or supervisory authority delegated by law and Including, but is not deposit – taking; loan and Investment services; Insurance; estate, trust and agency services ; securities; and all forms of financial or market intermediation Including , but not limited to, the distribution of financial product.

5.3 HSBC Bangladesh Offices & ATM Centers:

HSBC Bangladesh currently provides services from three of its full service branches one In Dhaka, Chittagong and Sylhet. Besides these offices there are four personal banking Booth offices located at Gulshan, MotiJheel and Dhanmondi and another one Is in Chittagong. There are currently 11 ATM’S operating In Dhaka, 2 in Chittagong and 1 In Syl