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SCBPL INTENSIFYING CONSUMERS BANKING PORTFOLIO, SEEKING MORE ALLIANCE.

Byline: S.KAMAL HAYDER KAZMI

In Pakistan, dissimilar commercial banks have geared up attempts to intensify its clients banking services for the domestic market, cashing in on low interest rate, inflation rate and enhanced economic condition.

Various banks are accelerating their attempts in the market of consumers banking by using their assets to make profits. Bankers stated that investment in the government papers will not continue as an attractive pool in the long-run, so the banks have to unleash their deposits for lucrative products, which consumers' banking gives to a large segment of customers. It is also revealed that the banks have learnt a lot from previous experiences in terms of mitigating risk to avert NPLs (Non-Performing Loans) in the country.

All key players of the banking sector adopted a cautious strategy for consumers banking services but things have altered in the previous couple of years, which made room for all banks now to use consumers banking in full swing. It can be chiefly recorded that the consumers banking by Islamic banking division of commercial banks are steadily financing mortgage and cars at quite a good pace.

The Standard Chartered Bank Pakistan Limited (SCBPL) had a book of Rs40 billion for consumers banking section, however, it presently identifies lesser numbers at Rs12 billion. But it is not the only one that suffered the setback, the whole sector, counting the top banks, have also wrapped up their consumers banking services to a small high-end market after post 2008 condition of worldwide credit crunch and domestic economic slowdown.

No doubt, SCBPL is the leading international bank operating in the country, presently accorded as the best foreign bank by finance Asia. The Bank's client base and extensive distribution network across Pakistan provide the opportunity for important insurance penetration within the country.

The management of SCBPL has devised a policy to steadily give impetus to its consumers banking portfolio by its already well-performing products like personal loans, credit cards and upcoming innovative product like hybrid mortgage financing under Islamic banking. The credit card segment of the bank has been inactive in the banking sector for the last 10-year.

SCBPL also offers Shariah-compliant credit card and now a high-end credit card, WorldMiles, for affluent class and frequent travelers. The Bank's credit card business constitutes with 5 percent share but it expenditure is important with 23 percent for domestic transaction and 30 percent for foreign transaction in the banking sector. It is because the management has given incentives to their clients by cash back and given them with transaction facilities when needed.

It is recorded that SCBL is the 6th largest bank in terms of its operating profits but the branches network is limited at 101 locations in 12 cities in the country, showing efficiency of the banking business as against to dissimilar banks of the states.

SCBPL is going to merge its subsidiaries, leasing firm and Modaraba, with a leasing group because the bankers of the bank feel their expertise are limited in this section and values they earn are not important to continue it in future. But it does not mean Standard Chartered is going to wrap up its operation in Pakistan such as dissimilar international banks.

Standard Chartered Modaraba provided Certificate of Musharikah (COM) which is a low-risk Shariah-compliant deposit scheme. COM is also transferable and allows premature encashment. Furthermore, Certificate of Investment (COI) is a fixed income product of Standard Chartered Leasing Limited. It promises high profit payments with a tenor ranging from 3-month to 36-month. COI holders would have quarterly and monthly profit payment frequency options. COI is not transferable and premature encashment, subject to applicable rate adjustment, is allowed.

No doubt the role of SCBPL is an important for the country because it provided its expertise to issue Sukuk of $500 million and $1 billion for the government.

ST.CHART.BANKXD IN KSE ( RS) (OCTOBER, 2015)

DATE###LDCP###CLOSING###DATE###LDCP###CLOSING

###RATE###RATE

1###21.5###21.7###16###22.25###22.31

2###21.7###21.41###19###22.31###22.92

6###21.41###21.69###20###22.92###22.93

8###21.69###21.99###21###22.93###22.87

9###21.99###22.73###26###22.87###22.53

12###22.73###22.84###27###22.53###22.25

13###22.84###22.48###28###22.25###22.47

14###22.48###22.22###29###22.47###22.15

15###22.22###22.25

During July 2015, Jubilee General Insurance (JGI) inked a deal with SCBPL to provide General Insurance products to SCBPL customers in the entire country. The signing ceremony marked the starting of this new alliance. The first product to be officially introduced as a consequence of this alliance would be critical illness plus designed particularly for SCBPL customers with the mission to spread awareness about the lifestyle and financial impacts of a critical illness.

Moreover, the product gives the insured, his/her spouse and children the advantage of International Medical Second Opinion, which permits them access to over 100 world leading medical centers for 200 qualifying medical situations.

During October 2015, the bank celebrated world sight day across Pakistan. With a focus on alleviating avoidable blindness, Standard Chartered, since the launch of the seeing is believing programme during 2004, has spent about $3.359 million in the country.

The management of the bank's attempts has resulted in a 20 percent reduction in cataract blindness in the country. In recognition of the Bank's efforts, the Government of Pakistan has also made SCBPL a partner of the National Steering Committee for Eye Health.
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Publication:Pakistan & Gulf Economist
Geographic Code:9PAKI
Date:Nov 8, 2015
Words:929
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