TOPIC:HSBC PRODUCTS AND SERVICES

FOR SME ENTERPRISES.

Amity International Business School

SUBMITTED BY:Depanshu KumarGurveen KaurRushali KhannaGitika SinghEkansh JainKanika Virmani

Objectives of the study

To study the current scenario of the company all over d world

Areas of diversification.Bank’s financing criteria to SME’s Risk involved in financingTo understand the HR policies of HSBC

Company’s Profile

Headquartered in london: HSBC emerged as one of the largest banking and financial services organization in the world

According to the Forbes magazine:

Largest banking group in the world, and the 6th largest company in the world as of April 2009

HSBC's origins in India:1853, when the Mercantile Bank of India was established in Mumbai.

The bank’s Net Profit: 1192 crore as against rs.846 crore in the previous fiscal year while total income rose to 7096 rs croreas compared to 4720 crore in the year ago period

HSBC Indian head: Naina Lal Kidwai

Services offered:Personal Banking

Non Resident Indian Banking

Financial Planning Services

Corporate Banking

Business Banking

Payments and Cash Management

Trade (international and domestic) and Factoring Services

Institutional Banking

Treasury and Capital Markets

Custody and Clearing

Technology

Introduction

HSBC Bank is a subsidiary of HSBC Holdings plc.Is the largest banking group in the world.6th largest company in the world.Provides a comprehensive range of financial

services including personal financial services, commercial banking, corporate banking, investment banking, including: private banking and consumer finance, amongst related services.

Is well known for having established the first ATM (Automatic Teller Machine) in India in the year 1987.

Global perspective of HSBC

HSBC's procedures in international banking comprise of financing, advisory and transaction services for companies, institutional and personal investors.

Has 2.9 million financial banking clients in 63 positions, encompassing sole proprietors, partnerships, associations and associations, integrated enterprises and publicly cited companies

HSBC SERVICES

Provides solutions which connect people, devices and networks across the globe combine domain expertise, process skills and technology to

deliver unparalleled business value and developing profitable customer relationships.

Delivers world-class services for HSBC's customers

Retail Banking & Wealth Management; Commercial Banking; Global Banking and Markets; and Global Private Banking. 

SME :DEFINATION and Its Financing

An enterprise where the investment in plant and machinery is more than Rs.25 lakh but does not exceed Rs.5 crore.

A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

Plays a major role in India's present export performance. 45%-50% of the Indian Exports is contributed by the sector

FINANCING : is the funding of small and medium sized enterprises represents a major function of the general business

finance market. Capital is supplied through the business finance

market in the form of bank loans and overdrafts

Problems faced in lending to the SME Sector

Information AsymmetryGranularityPecking Order TheoryMoral HazardSwitching Costs

DATA ANALYSIS

In this research, the method of quantitative analysis is chosen in which a structured questionnaire. 

Mainly, the data was analyzed as descriptive analysis showing various figures, charts and frequency tables to get a clearer view of preferences.

Through the analytical tools, like excel, it was ensured that the result collected is efficient enough to be interpreted for the outcome of this study.

Conclusion

Since banks do not have proper knowledge about SME’s enterprises, they faulter in repaying their loans. Therefore to avoid this, they should maintain proper records and have proper documentation in place.

Banks should maintain a certain credit limit for SMEs.Location and accessibility has consistently emerged as

one of the most important factors for choosing the bank. Increasing awareness would go a long way in

generating new customers. An overwhelming majority of the SMEs felt that they would like to bank with HSBC in case they are provided with adequate information and educated about the products and services

Recommendations

Make the bank more accessible to the customers. Although it may not be possible to increase the number of branches in a short span of time, accessibility can be enhanced with the help of making customers aware about door step banking facilities’, cheque pick up and collection services, document pick up etc.

Introduce more lending and factoring products and make it easier for the SMEs to avail them.

Ask for the customer feedback at regular to know whether they are really satisfied or dissatisfied with the services/ product of the bank.

Thank You

HUMAN RESOURCE POLICIES IN HSBC

HR Practices at HSBC:

Recruitment & selection

Training & Development

Performance Management System

Compensation & Benefit

recruitmentThe selection of external recruits consists of the following steps:

CV Submission

Application Evaluation

Ability Tests

Capability Based Interviews

Reply Letters

Job Offer

Recruitment continued..

HSBC uses some external sources for recruitment:

InternetCollege recruitingReferralsAdvertising

Internal recruiting is very high in HSBC:

Ttraining and development activities are very high in quality

Selection:

HCBC runs Final Selection Centers (FSCs) in a number of key global locations, including London, Chicago, Hongkong,Mexico and Dubai. If a candidate completes the telephone interview successfully, they will invite to the location most appropriate to them.

The FSC is a two way process. It is a candidate’s opportunity to meet a number of current IMs (international Managers) and find out as much as possible about their experiences. HSBC wants candidates to be able to make an informed decision a candidate should receive an IM offer.

Selection contd..

The FSC consists of a number of capability based exercises, including:

Face-to-face interview Group exercise

Written case study Presentation Role play

“Head Hunting” process is very effective for HSBC. Through thisthey can easily recruit and select top level managers, though they are offering a very attractive compensation.

Training & development

HSBC’s goal is to attract, retain and motivate the very best, and to do that it supports training, development, and business education through the following:

Internal training program External training program

Seminars Job related courses

workshops Seminars & workshops

locally tailor made training on a variety of topics are offered directly by HSBC Training and Development Department.

conferencesdeveloped and presented at HSBC Offices in Asia and also at Group

Training & development cont..

Web-based and multimedia self-study programmes available through Intranet and multimedia Learning Centers located in various HSBC offices.

The Resident Management Trainee programme (RMT) aims to select a group of high potential executive trainees and provide them training and development opportunities. The RMT programme gives potential executives effective and systematic training to acquire an excellent understanding of the commercial operations and business functions.

training programme: Providing a comprehensive insight into our retail and commercial banking businesses, it is designed to help employees develop the skills and experience you need to embark on a management career

Performance managementsystem

FIVE POINT RATING SCALE:

Exceptional

Outstanding

Strong

Inconsistent

Poor

Performance managementsystem

FIVE POINT RATING SCALE:

Significantly above behavioural and performance expectations. At the very top against peers and the competitive market

Consistently achieving or above behavioural and performance expectations against peers and the competitive market.

Inconsistently meeting behavioural or performance expectations and/or below their peers and the competitive market.

Not meeting behavioural and performance expectations. Significantly below their peers and the competitive market.

Performance managementsystem

Self Appraisal:A Self Assessment document is your opportunity to

assess your performance against your objectives. Although it is optional, it is highly recommended.

The Self Assessment document:Should be discussed with your manager before your Mid-

Year review.

Provides a structured opportunity for you to contribute to your manager’s review of your performance.

Is good practice as it requires you to constructively assess your own performance.

Compensation & Benefits Salaries: Market competitive remuneration package subject to annual review where individual performance is recognized.

Incentive pay: A good incentive pay scheme can motivate employees to work better for your business. Market competitive incentive schemes in specific business areas

Procedure:1 Setting objectives Design your incentive pay scheme to achieve specific objectives. 1.1 Decide what business results you want to achieve. 1.2 Decide which employees should take part. 1.3 Decide how long the scheme should run.

2 Using cash Cash is always popular with employees. It is the most widely used form of incentive payment.

Compensation & Benefits3. Share saveEmployees are entitled to buy HSBC shares at a 20 per cent discount on the market price.

Achievement Shares HSBC shares may be granted annually, depending on position and individual performance.

Benefits: -Private pension plan

-Private medical plan for employees and dependents -Life and accident insurance

-Medical check ups -Banking products with preferential pricing

-Nursery and summer camp allowances -Bank car, parking space and allowances, depending on

position -Market competitive remuneration package and annual cash