pallavi project

7/31/2019 Pallavi Project

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FINANCIAL PRODUCT OFFERED BY

ING VYSYA BANK

Project Report

Submitted

In Partial Fulfillment of Requirement for the Award of

Degree of PGDM

By

Name of Student

Pallavi Garg

Name of Guide

Prof. Vardhman Jain

Name of Institution

SINHGAD INSTITUTE OF MANAGEMENT

Year of Course

2010-2012


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DECLARATION

I the undersigned, hereby declare that the Project Report entitled FINANCIAL

PRODUCT OFFERED BY ING VYASYA BANK written and submitted by me to the

University of Pune , in partial fulfillment of the requirement for the award of degree of

PGDM under the guidance of Prof. Vardhman Jain is my original work and theconclusions drawn therein are based on the material collected by myself.

Place: RUDRAPUR Signature of Student

Date :


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ACKNOWLEDGMENT

The satisfaction Euphoria that accompany the successful completion of any work would

be incomplete unless we mention the name of the person, who made it possible, who

constant guidance and encouragement served as a beckon of light and crowned our

efforts with success. I consider it a privilege to express through the pages of this report,a few words of gratitude and respect to those who guided and inspired in the completion

of this project.

I am deeply indebted to Mr. Manish (Branch Head) for giving me the opportunity to

undergo my project in their esteemed organization and the their timely suggestions &

Valuable guidance. I also want to give thanks to Mr. Hemant Triphati (Manager

operation). They constantly encouraged me and showed the right path from day first till

the completion of my project.

I had visited almost all markets of Rudrapur and collected information of the project. I

have also done promotional activities under the constant guidance of my project guide.

In the last but not the least, my grateful appreciations also extended to and also my thanksto all my faculties members, Parents and friends. However, I accept the sole

responsibility for any possible errors of omission and would be extremely grateful to the

readers of this project report if they bring such mistakes to my notice.


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INDEX

SERIAL NO. TOPICS PAGE NO.

1) OBJECTIVE OF STUDY 5

2) SCOPE OF STUDY 5-6

3) EXECUTIVE SUMMARY 6

4) PREFACE 7

5) COMPANY OVERVIEW 7-18

6) RESEARCH METHODOLOGY 19-21

7) DATA INTERPRETATION 22-36

8) FINDINGS 37

9) SUGGESTIONS 38

10) LIMITATION 39

11) CONCLUSION 40

12) QUESTIONNAIRE 41-43

13) BIBLIOGRAPHY 44


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OBJECTIVE OF THE STUDY

-

To know about environmental factors affecting ING-Vysya Banks performance.

To analyze the role of advertisement for bank performance.

To know the perception and conception of customers towards banking products and

specially focused for ING Banks product.

To explore the potential areas for the new bank branches which will provide both price

and people to the bank with constant promotion and placing strategy.

SCOPE OF THE STUDY

Each and every project study along with its certain objectives also has scope for future.

And this scope in future gives to new researches a new need to research a new project

with a new scope. Scope of the study not only consist one or two future business plan but

sometime it also gives idea about a new business which becomes much more profitable

for the researches then the older one.

Scope of the study could give the projected scenario for a new successful strategy with a

proper implementation plan. Whatever scope I observed in my project are not exactlyhaving all the features of the scope, which I described above, but also not lacking all the

features.

Research study could give an idea of network expansion for capturing more market

and customer with better services and lower cost, without compromising with quality.

In future customer requirements could be added with the product and services for

getting an edge over competitors.

Consumer behavior could also be used for the purpose of launching a new productwith extra benefits which are required by customers for their account (saving or current)

and/or for their investments.

Factors, which are responsible for the performance for bank, can also be used for the

modification of the strategy and product for being more profitable.


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Factors which I observed while doing project study are following-

1. Competitors

2. Customer Behavior

3. Advertisement/promotional activities

4. Attitude of manpower and

5. Economic conditions

These all could also be interchanged with each other for each other in banks strategies for

making a final business plan to effect the market with a positive way without disturbing a

lot to market, customers and competitors with disturbance in market shares .

INTRODUCTION:EXECUTIVE SUMMARY OF THE PROJECT EXECUTIVE SUMMARY

Banking Industry, which is basically my concern industry around which my project has to

be revolved, is really a very complex industry. And to work for this was

really a complex and hectic task and few times I felt so frustrated that I thought to left the

project and go for any new industry and new project. Challenges, which I faced

while doing this project, were following-

Banking sector was quite similar in offering and products and because of that it was

very difficult to discriminate between our product and products of the

competitors.

Target customers and respondents were too busy persons that to get their time and

view for specific questions was very difficult

.

Sensitivity of the industry was also a very frequent factor, which was very important to

measure correctly.

Area covered for the project while doing job also was very large and it was very

difficult to correlate two different customers/respondents views in a one.


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PREFACE

Decision-making is a fundamental part of the research process. Decisions regarding that

what you want to do, how you want to do, what tools and techniques must be used for the

successful completion of the project. In fact it is the researchers efficiency as a decision

maker that makes project fruitful for those who concern to the area of study. Basicallywhen we are playing with computer in every part of life, I used it in my project not for

the ease of my but for the ease of result explanation to those who will read this project.

The project presents the role of financial system in life of persons. I had toiled to achieve

the goals desired. Being a neophyte in this highly competitive world of business, I had

come across several difficulties to make the objectives a reality. I am presenting this hand

carved efforts in black and white. If anywhere something is found not in tandem to the

theme then you are welcome with your valuable suggestions.

COMPANY OVERVIEW

ING Vysya Bank Ltd., is an entity formed with the coming to gether of erstwhile, Vysya

Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse,

ING of Dutch origin, during Oct 2002.The origin of the erstwhile Vysya Bank was pretty

humble.It was in the year 1930 that a team of visionaries came to gether to form a bank

that would extend a helping hand to those who weren't privileged enough to enjoy

banking services. It's been a long journey since then and the Bank has grown in size and

stature to encompass every area of present-day banking activity and has carved a distinct

identity of being India's Premier Private Sector Bank.In 1980, the Bank completed fifty

years of service to the nation and post 1985; the Bank made rapid strides to reach thecoveted position of being the number one private sector bank. In 1990, the bank

completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then

Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank

Stupendous. The 75th anniversary, the Platinum Jubilee of the bank was celebratedduring 2005.

THE ORIGIN OF ING GROUP

On the other hand, ING group originated in 1990 from the merger between Nationale

Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV.

Combining roots and ambitions, the newly formed company called Internationale

Nederlanden Group.Market circles soon abbreviated the name to I-N-G. The company

followed suit by changing the statutory name to ING Group N.V..


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PROFILE

ING has gained recognition for its integrated approach of banking, insurance and asset

management. Furthermore,the company differentiates itself from other financialservice

providers by successfully establishing life insurance companies in countries with

emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile.Another specialization is ING Direct, an Internet and direct marketing concept with

which ING is rapidly winning retail market share in mature markets. Finally, ING

distinguishes itself internationally as a provider of employee benefits, i.e. arrangementsof non wage benefits, such as pension plans for companies and their employees. Mission

ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider

of financial services through the distribution channels of the clients preference in

markets where ING can create value.

THE NEW IDENTITY

The immediate benefit to the bank, ING Vysya Bank, has been the pride of having

become a Member of the global financial giant ING. As at the end of the year December

2011, ING's total assets exceeded 13.31 billion euros, employed over 125000 people,

served over 85 million customers, across 50 countries. This global identity coupled with

the back up of a financial power house and the status of being the first Indian

International Bank, would also help to enhance productivity, profitability, to result in

improved performance of the bank, for the benefit of all the stake holders.

MILESTONE IN THE LONG JOURNEY OF INGVYSYA BANK

1930 Set up in Bangalore

1948 Scheduled bank

1985 Largest private sector bank

1987 The Vysya Bank LeasingLtd .Commenced

1988 Pioneered the concept of Co branding of credit Cards

1990 Promoted Vysya Bank Housing Finance Ltd.

1992 Deposits cross Rs.1000 crores

1993 Number of branches crossed 300

1996 Signs Strategic Alliance with BBL.,Belgium. Two National Awards by Gem &

Jewellery export Promotion council for excellent performance in export promotion.

1998 Cash Management Services & commissioning of VSAT. Golden Peacock

Award-for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank

in India by Global Finance(International Financial Journal-June1998)

2000 State-of-the-art Date Centre at ITPL, Bangalore.RBI clears setting up of ING

Vysya Life Insurance Company

2001 ING-Vysya commenced life insurance business.


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2002 The Bank launched a range of products & services likethe Vys Vyapar Plus, the

range of loan schemes for traders, ATM services, Smart serv , personal assistant service,

Save & Secure, an account that provides accident hospitalization and insurance cover,

Sambandh, the International Debit Card and the mi-bank net banking service.

2002 ING takes over theManagement of the Bank from October 7th , 2002 RBI clears

the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.022003 Introduced customer friendly products like Orange Savings, Orange Current and

Protected Home Loans

2004 Introduced Protected Home Loans - a housing loan product.

2005 Introduced Solo - My Own Account for youth and Customer Service Line

Phone Banking Service

2006 Introduced Solo - My Own Account for youth and Customer Service Line

Phone Banking Service

BALANCE SHEET

Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 90.72 90.9 102.47 102.6 119.97

Equity Share Capital 90.72 90.9 102.47 102.6 119.97

Share Application Money 0 0 0 4.47 2.99Preference Share Capital 0 0 0 0 0

Reserves 817.41 901.6 1,323.67 1,487.05 2,099.94

Revaluation Reserves 111.54 110.78 109.52 108.77 108.02

Net Worth 1,019.67 1,103.28 1,535.66 1,702.89 2,330.92

Deposits 13,335.26 15,418.59 20,498.06 24,889.92 25,865.30

Borrowings 1,107.45 843.55 1,249.81 2,152.42 3,671.39

Total Debt 14,442.71 16,262.14 21,747.87 27,042.34 29,536.69

Other Liabilities & Provisions 1,304.29 1,920.87 2,256.39 3,111.75 2,012.64

Total Liabilities 16,766.67 19,286.29 25,539.92 31,856.98 33,880.25



Assets

Cash & Balances with RBI 841.65 945.81 2,263.53 1,791.02 2,329.59


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Balance with Banks, Money at Call 281.68 645.89 921.23 491.23 697.46

Advances 10,231.53 11,976.17 14,649.55 16,750.93 18,507.19

Investments 4,372.34 4,527.81 6,293.32 10,495.54 10,472.92

Gross Block 676.23 681.06 706.82 754.09 773.73

Accumulated Depreciation 383.02 394.33 429.31 468.77 485.4

Net Block 293.21 286.73 277.51 285.32 288.33

Capital Work In Progress 112.2 109.24 121.7 151.88 207.6

Other Assets 634.06 794.65 1,013.06 1,891.07 1,377.15

Total Assets 16,766.67 19,286.30 25,539.90 31,856.99 33,880.24

Contingent Liabilities 10,986.42 17,462.28 32,959.36 38,734.68 72,851.44

Bills for collection 2,850.13 3,033.30 3,096.69 4,303.00 4,570.43

Book Value (Rs) 100.1 109.18 139.17 154.93 185.04

P & L ACCOUNT



Income

Interest Earned 1,222.43 1,401.38 1,680.44 2,239.89 2,232.89

Other Income 190.31 248.57 418.57 547.67 620.22

Total Income 1,412.74 1,649.95 2,099.01 2,787.56 2,853.11

Expenditure

Interest expended 741.25 859.31 1,182.05 1,590.27 1,403.05

Employee Cost 234.19 238.48 302.39 392.22 428.85

Selling and Admin Expenses 161.58 170.16 140.7 231.68 374.15

Depreciation 37.2 37.98 38.93 40.82 40.96

Miscellaneous Expenses 229.47 255.1 279.99 343.78 363.87Preoperative Exp Capitalised 0 0 0 0 0

Operating Expenses 572.17 576.51 645.49 878.8 1,037.72

Provisions & Contingencies 90.27 125.21 116.52 129.7 170.11

Total Expenses 1,403.69 1,561.03 1,944.06 2,598.77 2,610.88



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Net Profit for the Year 9.06 88.91 154.95 188.78 242.22

Extraordionary Items 0 0 0 0 0Profit brought forward -34.6 1.29 18.44 103.53 206.53

Total -25.54 90.2 173.39 292.31 448.75

Preference Dividend 0 0 0 0 0

Equity Dividend 0 5.91 15.37 20.52 29.99

Corporate Dividend Tax 0 1 2.61 3.49 5.1

Per share data (annualised)

Earning Per Share (Rs) 1 9.78 15.12 18.4 20.19

Equity Dividend (%) 0 6.5 15 20 25

Book Value (Rs) 100.1 109.18 139.17 154.93 185.04

Appropriations

Transfer to Statutory Reserves -26.84 64.85 53.85 61.77 83.45

Transfer to Other Reserves 0 0.01 0 0 -0.01

Proposed Dividend/Transfer to Govt 0 6.91 17.98 24.01 35.09

Balance c/f to Balance Sheet 1.29 18.44 103.53 206.53 330.22

Total -25.55 90.21 175.36 292.31 448.75

MANAGEMENTING VYSYA BANK

Name Designation

Shailendra BhandariManaging Director & CEO

Arun ThiagarajanPart Time Chairman

Meleveetil DamodaranDirector

Richard CoxDirector

Vaughn Nigel Richtor Director

Vikram TalwarNon.Exe.Independent Director

Aditya KrishnaDirector

Lars Kramer Non Exe.Non Ind.Director


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Philippe DamasDirector

Santosh Ramesh DesaiDirector

Peter Maria Staal Director

Mark Edwin Newman Non Exe.Non Ind.Director

SOME FACTS ABOUT ING-VYSYA BANK

-Vysya bank branches works on profit centre

Assets Liabilities

A thing for which one is responsible Fee Income Products. A thing owned by a someone

having some value

CASA

TD/FD

Others Current account

Savings account

Fixed Depoits Term deposits

Fee Income productsLockers

Life Insurance General

Insurance

Mutual Funds Portfolio management service Products

Orange Savings Bank Account

Key Features:

Quarterly Average Balance (QAB) of Rs. 5000/-

Free issue of the International Debit Card.

Shopping convenience at over 2 Lakh merchantlocations, with the ING Vysya International Debit card

.

Demat account

Free Unlimited ATM transactions at over 25,000

(Cirrus/Cash net) ATM's in India, where QAB is maintained.

Free Unlimited ATM transactions at over 196 ING Vysya ATM's.


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Free 2 Demand Drafts with a value not exceeding Rs. 50,000 per annum, where the

QAB is maintained.

Free Unlimited usage of payable at par (PAP) Cheques.

Free Transfer of funds across all branches.

Free National Electronic Funds Transfer (NEFT) through the internet banking channel.Free Electronic Bill Payment service

Free Smartserv - Personal Assistance Service

Free Statement of Account through E-mail.

Free Mi-b@nk - Internet banking facility.

Salary Account

Key Features:

Zero Balance Account.

Free Unlimited ATM transactions on the ING Vysya ATM network and Corporation

Bank ATM network6 Free ATM transactions per month at 25,000 (Cirrus) ATMs

Free ING Vysya International Debit Card.

Re-issue charged at Rs. 200/- per request

Shopping convenience at over 200,000 merchant locations.

Free issue of personalized chequebooks.

Free 2 D.Ds / P.Os not exceeding a value of Rs. 10,000/- per month.

Free transfer of funds across all the branches of ING.

Free Bill Pay service at select centres.

Free Bill Pay service at select centres.Internet banking facility. (Mi-b@nk).

Free Customer Service Line

Free joint account status with one other family member

Adhoc Checkout* (Temp Overdraft) to an extent of 50 % of the last salary credit

charged at 18 % for the number of days overdrawn. Service Charge of Rs.100/- for every

month that the account is overdrawn..

Free for life ING Vysya Credit Card based on customers eligibility.

AAA Cash deposits are restricted to two transactions with a value not exceeding Rs.

50,000/- per month.Benefits:

The quarterly average balance of Rs. 5000/- is waived as long as the employee is

employed with the corporate. (Zero Balance Account).

Enhanced Accessibility - Unlimited access to ING Vysya and Corporation Bank

ATMs and 6 transactions at Cirrus ATMs per month.


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Free multi-city, multi-branch banking convenience.

Minimum documentation supported by an official communication from the corporate.

No restriction in the number of transactions in the account

Eligibility:

The minimum number of employees of the corporate, whose salary accounts are to beopened, should be 10.

The average salary credit in to the employees orange salary account should be equal

to or higher than Rs. 10,000/- per month.

Where there is a joint account holder, the normal KYC norms need to be adhered to for

the joint account holder

Preferably corporate to have current account with ING.

Orange Salary AccountKey Features:

Zero Balance Account. (QAB requirement of Rs. 5000/- reduced to zero)

Free Unlimited ATM transactions on the ING Vysya ATM network and Corporation

Bank ATM network.

Free unlimited ATM transactions at 25,000 (Cirrus) ATMs.

Free ING Vysya International Debit Card

Re-issue charged at Rs. 200/- per request.

Shopping convenience at over 200,000 merchant locations.

Free issue and unlimited usage of Payable at Par cheque books.Free transfer of funds across all the branches of ING.

Free Personal Assistance Service - Smartserv at select centres.

Free Bill Pay service at select centres.

Free statement of account through e-mail.

Internet banking facility. (Mi-b@nk)

Free Customer Service Line.

Free joint account status with one other family member.

Adhoc Checkout* (Temp Overdraft) to an extent of 50 % of the last salary credit

charged at 18 % for the number of days overdrawn. Service Charge of Rs.100/- for everymonth that the account is overdrawn.

Free for life Credit Card based on Customers eligibility

AAA Cash deposits are restricted to two transactions with a value not exceeding Rs.

50,000/- per month

Benefits:


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The quarterly average balance of Rs. 5000/- is waived as long as the employee is

employed with the corporate. (Zero Balance Account).

Enhanced Accessibility - Unlimited access to ING Vysya, Corporation Bank and

Cirrus ATMs

Enhanced Accessibility - Unlimited access to ING Vysya, Corporation Bank andCirrus ATMs

Minimum documentation supported by an official communication from the corporate.

No restriction in the number of transactions in the account.

Privileged Customer status for retail loan products.

Eligibility:

The minimum number of employees of the corporate, whose salary accounts are to be

opened, should be 20.

The average salary credit in to the employees orange salary account should be equal

to or higher than Rs.20,000/- per month.Where there is a joint account holder, the normal KYC norms need to be adhered to for

the joint account holder.

Preferably corporate to have a current account with ING

WHAT FACTORS ARE REALLY RESPONSIBLE FOR PERFORMANCE OF

ING BANKS PERFORMANCE IN THIS COMPETITIVE ERA.

INDUSTRY STATUS &ING-VYSYABANKS INTERFACE INDUSTRY INTRODUCTION

The Indian Banking industry, which is governed by the Banking Regulation Act of India,

1949 can be broadly classified into two major categories, non-scheduled banks

and scheduled banks. Scheduled banks comprise commercial banks and the co-operative

banks. In terms of ownership, commercial banks can be further grouped into

nationalized banks, the State Bank of India and its group banks, regional rural banks and

private sector banks (the old/ new domestic and foreign). These banks have over

67,000 branches spread across the country in every city and villages of all nook and

corners of the land.

The first phase of financial reforms resulted in the nationalization of 14 major banks in1969 and resulted in a shift from Class banking to Mass banking. This in turn

resulted in a significant growth in the geographical coverage of banks. Every bank had to

earmark a minimum percentage of their loan portfolio to sectors identified as

priority sectors. The manufacturing sector also grew during the 1970s in protected

environs and the banking sector was a critical source. The next wave of reforms saw

the nationalization of 6 more commercial banks in 1980. Since then the number of

scheduled commercial banks increased four-fold and the number of bank branches


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increased eight-fold. And that was not the limit of growth. After the second phase of

financial sector reforms and liberalization of the sector in the early nineties, the Public

Sector Banks (PSB) s found it extremely difficult to compete with the new private sector

banks and the foreign banks. The new private sector banks first made their

appearance after the guidelines permitting them were issued in January 1993. Eight new

private sector banks are presently in operation. These banks due to their latestart have access to state-of-the-art technology, which in turn helps them to save on

manpower costs. During the year 2000, the State Bank Of India (SBI) and

its 7 associates accounted for a 25 percent share in deposits and 28.1 percent share in

credit. The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5

percent of credit during the same period. The share of foreign banks (numbering 42),

regional rural banks and other scheduled commercial banks accounted for 5.7 percent, 3.9

percent and 12.2 percent respectively in deposits and 8.41 percent, 3.14

percent and 12.85 percent respectively in credit during the year 2000. About the detail of

the current scenario we will go through the trends in modern economy of the country.

CURRENT SCENARIO:

The industry is currently in a transition phase. On the one hand, the PSBs, which are the

mainstay of the Indian Banking system are in the process of shedding their flab in

terms of excessive manpower, excessive non Performing Assets (Npas) and excessive

governmental equity, while on the other hand the private sector banks are consolidating

themselves through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assetsare saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues

from traditional sources, lack of modern technology and a massive workforce while the

new private sector banks are forging ahead and rewriting the traditional banking

business model by way of their sheer innovation and service. The PSBs are of course

currently working out challenging strategies even as 20 percent of their massive

employee strength has dwindled in the wake of the successful Voluntary Retirement

Schemes (VRS) schemes.

Aggregate Performance of the Banking Industry

Aggregate deposits of scheduled commercial banks increased at a compounded annual

average growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded

at a Cagr of 16.3 percent per annum. Banks investments in government and other

approved securities recorded a Cagr of 18.8 percent per annum during the

same period.

In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of

only 6.0 percent as against the previous years 6.4 percent. The WPI Index (a measure of


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inflation) increased by 7.1 percent as against 3.3 percent in FY00. Similarly, money

supply (M3) grew by around 16.2 percent as against 14.6 percent a year ago. The growth

in aggregate deposits of the scheduled commercial banks at 15.4 percent in FY01 percent

was lower than that of 19.3 percent in the previous year, while the growth in credit by

SCBs slowed down to 15.6 percent in FY01 against 23 percent a year ago.

The industrial slowdown also affected the earnings of listed banks. The net profits of 20listed banks dropped by 34.43 percent in the quarter ended March 2001. Net profits grew

by 40.75 percent in the first quarter of 2000- 2001, but dropped to 4.56 percent in the

fourth quarter of 2000-2001.

On the Capital Adequacy Ratio (CAR) front while most banks managed to fulfill the

norms, it was a feat achieved with its own share of difficulties. The CAR, which at

present is 9.0 percent, is likely to be hiked to 12.0 percent by the year 2004 based on the

Basle Committee recommendations. Any bank that wishes to grow its assets needs to also

shore up its capital at the same time so that its capital as a percentage of the risk-weighted

assets is maintained at the stipulated rate. While the IPO route was a much-fancied one in

the early 90s, thecurrent scenario doesnt look too attractive for bankmajors.

Consequently, banks have been forced to explore other avenues to shore up their capital

base. While some are wooing foreign partners to add to the capital others are

employing the M&A route. Many are also going in for right issues at prices considerably

lower than the market prices to woo the investors.

INTEREST RATE SCENE

The two years, post the East Asian crises in 1997-98 saw a climb in the global interestrates. It was only in the later half of FY01 that the US Fed cut interest rates. India has

however remained more or less insulated. The past 2 years in our country was

characterized by a mounting intention of the Reserve Bank Of India (RBI) to steadily

reduce interest rates resulting in a narrowing differential between global and domestic

rates.

The RBI has been affecting bank rate and CRR cuts at regular intervals to improve

liquidity and reduce rates. The only exception was in July 2000 when the RBI increased

the Cash Reserve Ratio (CRR) to stem the fall in the rupee against the dollar. The steady

fall in the interest rates resulted in squeezed margins for the banks in

general.

GOVERNMENTAL POLICY

After the first phase and second phase of financial reforms, in the 1980s commercial

banks began to function in a highly regulated environment, with administered interest

rate structure, quantitative restrictions on credit flows, high reserve requirements and


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reservation of a significant proportion of lendable resources for the priority and the

government sectors. The restrictive regulatory norms led to the credit rationing for the

private sector and the interest rate controls led to the unproductive use of credit and low

levels of investment and growth. The resultant financial repression led to decline in

productivity and efficiency and erosion of profitability of the banking

sector in general.This was when the need to develop a sound commercial banking system was felt. This

was worked out mainly with the help of the recommendations of the Committee on the

Financial System (Chairman: Shri M. Narasimham), 1991.

The resultant financial sector reforms called for interest rate flexibility for banks,

reduction in reserve requirements, and a number of structural measures. Interest rates

have thus been steadily deregulated in the past few years with banks being free to fix

their Prime Lending Rates (PLRs) and deposit rates for most banking products. Credit

market reforms included introduction of new instruments of credit, changes in the credit

delivery system and integration of functional roles of diverse players, such as, banks,

financial institutions and non-banking financial companies (Nbfcs). Domestic PrivateSector Banks were allowed to be set up, PSBs were allowed to access the markets to

shore up their Cars.

What is KYC?KYC is Know Your Customer Guidelines that we need to follow as a bank. Every

customer of the bank should necessarily satisfy the KYC norms laid down.

How can I do KYC for a lead?

When you meet a customer, he should seem what he has stated about himself. Forexample a salaried employee should be able to state the name of the organization and

the location of the office easily without having to refer to any document.

What documents should I ask for?

The prescribe documents as to what has been given in the application form and also in the

sales detailer

What should I do when I get the documents?

Look at each of the documents and compare with the data given by the customer. If there

is any deviation, clarify with the customer immediately

What should I do if the customer has no supportingdocument?Ask of the customer can get it in a few days time, if no, drop the lead.


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RESEARCH METHODOLOGY

DATA COLLECTION

1- Questionnaire filled by

a) Existing customers of ING in Rudrapur

b) New customers who are not associated with ING in Rudrapur.

RESEARCH DESIGN

SAMPLING TECHNIQUEConvenience sampling

-probability sampling.

the universe for consulting a sample, which represents the universe and when elementsare selected for inclusion in the sample based on the ease of access, it is called

convenience sampling.

RESEARCH TECHNIQUE

Conclusive research

decisions.

TOOLS AND TECHNIQUES

As no study could be successfully completed without proper tools and techniques, same

with my project. For the better presentation and right explanation I used tools of statistics

and computer very frequently. And I am very thankful to all those tools for helping me a

lot. Basic tools which I used for project from statistics are-

Bar Charts

Pie charts

Tables

Bar charts and pie charts are really useful tools for every research to show the result in a

well clear, ease and simple way. Because I used bar charts and pie charts in project for

showing data in a systematic way, so it need not necessary for any observer to read all the


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theoretical detail, simple on seeing the charts any body could know that what is being

said.

TECHNOLOGICAL TOOLS

Ms- ExcelMs-Word

Above application software of Microsoft helped me a lot in making project more

interactive and productive.

Microsoft-Excel had a great role in my project, it created for me a situation of you

sit and get.I provided it simply all the detail of data and in return it given me all the relevant

information..

Microsoft-Word did help me for the documentation of the project in a presentable form.

APPLIED PRINCIPLES AND CONCEPTS

While I started to do the project the main thing, which was the matter of concern was

that, around what principles I have to revolve my project. Because with out having any

hypothesis and objective we cannot determine that what output or result we are expecting

form the project.

And second thing is that having only tools and techniques for the purpose of project is notrelevant until unless we have the principals for which we have to use those tools

and techniques.

Mathematical Averages

Standard Deviation

Correlation

SOURCES OF PRIMARY AND SECONDARY DATA:

For the purpose of project data is very much required which works as a food for process,

which will ultimately give output in the form of information. So before mentioning the

source of data for the project I would like to mention that what type of data I have

collected for the purpose of project and what it is exactly.


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PRIMARY DATA:

Primary data is basically the live data which I collected on field while doing cold calls

with the customers and I shown them list of question for which I had required their

responses. In some cases I got no response form their side and than on the basis of my

previous experiences I filled those fields.

SOURCE:

Main source for the primary data for the project was questionnaires, which I got filled by

the customers or some times filled myself on the basis of discussion

with the customers.

SECONDARY DATA:

Secondary data for the base of the project I collected from intranet of the Bank and from

Internet, etc.

STATISTICAL ANALYSIS

In this segment I will show my findings in the form of graphs and charts. All the data

which I got form the market will not be disclosed over here but extract of that in the

form of information will definitely be here.

DETAIL:

Size of Data 100

Area RUDRAPUR

Type Primary & Secondary

Industry Banking

Respondent Customers


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Table1: correlation between awareness of customers about ING

NO. OF RESPONSE AGE

15 20-25

25 25-30

5 30-3510 35-40

11 40-45

10 45-50

12 50-60

12 60-above

0

5

10

15

20

25

30

20-25 25-30 30-35 35-40 40-45 45-50 50-60


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TABLE 2: PERCEPTION OF ING AS A BANK

TYPE OF BANK RESPONSES

PRIVATE 50

PUBLIC 15PRIVATE/PUBLIC 25

DON'T KNOW 10

Sales

private

public

privat/public

dont know


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TABLE 3 : RATING OF CUSTOMERS FOR ING BANK AS A GOOD BANK

PARAMETER RESPONSES

EFFICIENCY 75%

INTERNET BANKING/ATM 5%

PRODUCT RANGE 10%NETWORK 5%

PHONE BANKING 5%

Sales

efficiency

internet banking/ atm

product range

network

phone banking


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TABLE 4: MARKET SHARES OF ING IN RUDRAPUR IN COMPARISION TO

COMPETITORS

BANK NAME % OF SHARE

SBI 30%

IDBI 15%ICICI 25%

PNB 10%

HDFC 5%

ING 5%

OTHER 10%

0%

5%

10%

15%

20%

25%

30%

35%

SBI IDBI ICICI PNB HDFC ING

Series 1

Column1

Column2


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TABLE 5: FACTORS RESPONSIBLE FOR PERFORMANCE OF ING BANK IN

RUDRAPUR

PARAMETER % OF SHARE

PRODUCT 50%

ADVERTISEMENT 5%MANPOWER 25%

NET BANKING 2%

PHONE BANKING 5%

INVESTMENT BANKING 10%

NETWORK 3%

0%

10%

20%

30%

40%

50%

60%

Series 1

Column1

Column2


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TABLE 6: THE EFFECTIVENESS OF COMMERCIALS OF ING BANK

DAY AFTER THE AD IS SEEN POSITIVE RESPONSE

0-5 DAYS 45

6-10 DAYS 1511-15 DAYS 25

MORE THAN 15 DAYS 15

Sales

0-5 days

6-10 days

11-15 days

more than 15 days


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Table 7:Products/Services the customers are presently availing

Saving account 35

Current account 25

Fdr 15Life insurance 5

Mutual fund 7

Sip 2

Lockers 5

Demat account 6

Sales

saving account

current account

FDR

life insurance

mutual fund

SIP

lockers

demat account


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Table:8 Satisfaction level of the respondents from their respective banks

Highly satisfied 2

Satisfied 75

Neither satisfied nor dissatisfied 15

Dissatisfied 6Highly dissatisfied 6

Sales

highly satisfied

satisfied

neither satisfied nor dissatisfied

dissatisfied

highly dissatisfied


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Table 9: No.of Respondents know about ING Bank

Never heard 80

Heard few times 15

Heard frequently 5

Sales

never heard

heard few times

heard frequently

4th Qtr


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Table: 10 Kind of Banking services the respondents wish to use

High priority services 25

Preferred services 35

Normal services 40

sales

high priority services

preferred services

normal services


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Table 11:Type of investment the respondents like to invest

FDR, NSC 55

Mutual Fund 5

SIP 5

LI 15

Shares 5Gold 5

Govt. & Tax saving bond 10

0

10

20

30

40

50

60

FDR. NSC MUTUAL

FUND

SIP LI SHARES GOLD

Series 1

Column1

Column2


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Table 12: No.of Respondents availing the facility of Locker

YES 65

NO 35

0

10

20

30

40

50

60

70

YES NO

Series 1

Column1

Column2


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Table 13: Preferences of the respondents at the time of hiring the locker

Safety/Security 35

Operating time 15

Rental/Security charges 35

Locker Size 10Parking space outside

bank

5

Sales

SAFETY/ SECURITY

OPERATING TIME

RENTAL/SECURITY CHARGES

LOCKER SIZE

PARKING SPACE OUTSIDE BANK


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Table 14: Categorization of respondents on the basis of Annual Income

< 60000 2

60000-100000 25

100000-500000 65

500000-1500000 6>1500000 2

Sales


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Table 15: General impression of the respondents About ING-Vysya Bank

High Quality services &

Reliability

5

Average quality services& Dependability

90

Low quality services & Reliability 5

Sales

HIGH QUALITY SERVICES &

RELIABILITY

AVERAGE QUALITY SERVICES &

DEPENDABILITY

LOW QUALITY SERVICES &

RELIABILITY


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FINDINGS

1.ING bank has potential a tapped market in RUDRAPUR and hence has opportunities

for growth.

2.The products of ING bank have good credibility in the region compare to itscompetitors.

3.The advertisement of the bank was very effective from the first day of its airing till the

fifth day and there after it starts declining.

4.The initial balance for A/C opening is Rs, 5000/- and thats why people are reluctant inopening the same.

5. ING is very much compliance to follow the KYC norms.

6. The size of the locker provided by the ING-Vysya Bank is big in size as compared to

other banks.


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SUGGESTION

1) More resources should be allocated in the market of RUDRAPUR as there is big

untapped market in RUDRAPUR, so it becomes necessary for ING bank for taking an

edge over the competitors.

2) A short advertising campaign in RUDRAPUR has produced good results in a short

span of times, so to gain long term benefits is very necessary for ING bank to carry on

this campaign with more intensity.

3) Besides opening more branches it should also look for opening some extension counter

in D.D.Puram.

4) As a number of colleges are going to be opened in RUDRAPUR in the next few years,

so ING should try to gain some contacts with these colleges.

5) Most of the people in RUDRAPUR wants that they should not stand in queue in bank .

If we can convince them on this, than this can open a vast potential market for ING Bank

in RUDRAPUR.

6) The cash withdrawal time can be one of the aspects to gain popularity in RUDRAPUR.

7) The benefits provided by the ING Bank to its customers should be advertise so that

people can understand that customers satisfaction is the main aim for the persons

working in ING.


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LIMITATIONS

1. The sample size is very less, hence the responses of just 100 respondents does not

imply for the complete population.

2. There was lack of time and resources that prevented from carrying out an in depthstudy.

3. The findings of the survey are based on the subjective opinion of the respondents and

there is no way of assessing truth of the statements.

4. Lastly, some amount of error exists in the data filling process because of the following

reasons:

Influence of others.

Misunderstanding of the concept.

Hurried filling of the questionnaire.


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CONCLUSIONS

1. Customers of RUDRAPUR have enough awareness level about ING Vysya bank as

well as about its services and products.

2. The advertising campaign has successfully been able to increase the market share of

ING in RUDRAPUR.

3. The modern days technology like Internet banking, phone banking, used by ING bank

for providing banking services has sent positive signals in the mind of consumers.

4. The network of ING in RUDRAPUR is lagging behind a little than its competitors like

ICICI bank and HDFC bank.

.

5. It has a very good potential to have the new customers especially the youth because it

has the Formula a/c, which is very much liked by the youth in the other cities.

6. Most of the residents of RUDRAPUR dont know about the establishment of ING-

Vysya Bank in RUDRAPUR.


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QUESTIONNAIRE

1) Name ________________

2) Age ________________

3) Sex _________________

4) Occupation:

(a)Salaried Retired(b)Business House-wife(c)Self-Employed Student(d)Agriculture(e)Others(specify)_________

5) Income P.A.:

(a)1500000

6) Your current Bank __________________________

7) What products/services you are presently availing

(a)Saving a/c Mutual Fund(b)Current a/c SIP(c)FDR Equity(d)Life Insurance Lockers(e)Demat a/c Credit card(f)Loans

8) How happy you are with the services provided by your existing bank.

(a)Highly satisfied(b)Satisfied(c)Neither satisfied nor dissatisfied(d)Dissatisfied(e)Highly dissatisfied


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9) Before this survey, how often had you heard of ING Vysya Bank Ltd.

(a)Ive never heard before(b)Ive seen or heard a few times(c)I see or hear frequently

10) How you came to know about ING Vysya Bank Ltd.

(a)TV Commercials(b)Word of Mouth(c)Billboards

11) What are your general impressions of ING Vysya Bank

(a)High quality services and reliability(b)Average quality services and dependability(c)Low quality services and reliability

12) Are you associated with ING Vysya bank

(a)Yes(b)No(c)If yes, then please specify

_____________________________

13) What kind of banking services you generally wish to use

(a)High priority services(b)Preferred services(c)Normal services

14) In which form of investment you invest the most

(a)FDR Equity(b)Mutual Funds Shares(c)SIP Gold(d)Life Insurance Government(e)tax saving bonds


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15) If you invest in mutual funds more frequently, would you like all your funds to

be managed and controlled at a single point rather than scattered

(a)Yes of course(b)I am not sure(c)Its not possible

16) Have you hired a safe deposit locker in any of the bank

(a)Yes(b)No(c)If yes, then please specify________________________

17) If you would hire a locker, what will be your preferences (Please rate on 1-5

scale)

(a)Safety/Security(b)Operating Time(c)Rental/Safety charges(d)Locker Size(e)Parking Space outside Bank


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BIBLIOGRAPHY

1) www.ingvysyabank.com

2)www.google.com
http://www.google.com/http://www.google.com/http://www.google.com/http://www.google.com/

pallavi project

Documents