A PROJECT REPORT ON COMPARISION OF ING VYSYA BANK WITH ICICI AND HDFC BANK Submitted in partial fulfillment of the

requirement of award of the degree of MASTEROF BUSINESS ADMINISTRATION

Undersupervision of

Submitted by

Mr. Amit Gupta Operation Manager ING VYSYA BANK ,Muzaffarnagar

SUBMITTED TO

Nitesh Kumar Saini M.B.A IIInd Semester Roll No. 0827270053

UTTAR PRADESH TECHNICAL UNIVRESITY,LUCKNOW

Greater Noida Institute of Technology-MBA INSTITUTE 7,knowledge Park-II Greater Noida -201306

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CONTENTS PAGE No.

CERTIFICATE .3

DECLARATION .4 ACKNOWLEDGEMENT 5 LIST OF GRAPHS (4.1) CHAPTER-1 INTRODUCTION ..617 CHAPTER-2 REVIEW OF RELATED LITERATURE ..18-38 CHAPTER-3 DESIGN OF STUDY .39-43 THE STUDY OBJECTIVES OF THE STUDY METHODOLODY SCOPE OF THE STUDY LIMITATION
CHAPTER-4 ANALYSIS OF DATA 44-65 CHAPTER-5 FINDINGS 66-68 LIMITATION.. RECOMMENDATION 71-72 69-70

BIBLOGRAPHY

73
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ANNEXURE 74-82

CERTIFICATE
This is to certify that the Summer Training Project Report entitled being submitted by Mr. / Ms. ..

in partial fulfillment of the requirement for the degree of the Master of Business Administration from U. P. Technical University, Lucknow, is an independent original research work done by him/her under my supervision and guidance.

Place: .. Date: ..

Director

GNIT-MBA Institute

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DELARATION
I hereby to declare that the work for the Dissertation report entitled Comparison of ING VYSYA Bank with HDFC and ICICI Bank am completely done by me, based on my work conducted in ING VYYSA BANK, MUZAFFARNAGAR

I also declare that this project work has not been submitted to any other university or Institution for the award of any degree, diploma, fellowship or other similar title. Admittedly, I have received suggestions and guidance from my guides for the partial fulfillment of M.B.A.

(Nitesh Kumar Saini)

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ACKNOWLEDGEMENT
If words are considered to be signs of gratitude then let these words Convey the very same. My sincere gratitude to Mr. Amit Gupta junior manager, ING VYSYA BANK and giving necessary directions on doing this project to the best of my abilities.
I am highly indebted to Mr. Amit Mahendru, Branch Manager, who provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible.

So in the same sequence at very first, I would like to acknowledge my parents because of whom I got the existence in the world for the inception and the conception of this project. Later on I would like to confer the flower of acknowledgement to Ms. BARNALI SARKAR and other faculty members who taught me that how to do project through appropriate tools and techniques. Because ING VYSYA BANK has given me a chance to do my integrated project report., I would like to give thanks Dr. SHAKTI PRAKASH (Head of Department)

GNIT-MBA INSTITUTE.

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CHAPTER -1

INTRODUCTION

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INTRODUCTION
Banking system of a nation is the shadow of nations economy. A healthy and profitable banking system is just like the backbone of nations economy. It is necessary for a nation to achieve growth and remain stable in this global world and global economy. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs) and the increased participation of private sector banks.

1.1 History of INDIAN BANKING SYSTEM

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.

Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947,
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the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980.
In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors

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1.2 Liberalization in INDIAN BANKING SYSTEM

In the early 1990s, the then government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This
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move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks

The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4%) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more.
Currently (2009), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail

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banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. The public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

1.3 The Origin of ING Group

ING group originated in 1990 from the merger between Nationale Nederlanden the largest Dutch Insurance Company and NMB Post Bank Group. 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. ING is a global financial services company providing banking, investments, life insurance and retirement services and operates in more than 50 countries.

PROFILE
ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services. ING serve more than 85 million private, corporate and institutional customers in Europe, North and Latin America, Asia and Australia. They draw on their experience and expertise, their commitment to
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excellent service and their global scale to meet the needs of a broad customer base, comprising individuals, families, small businesses, large corporations, institutions and governments

STRATEGY
INGs overall mission is to help customers manage their financial future. Capitalizing on changing customer preferences and building on our solid business capabilities, INGs strategic focus is on banking, investments, life insurance and retirement services. They provide retail customers with the products they need during their lives to grow savings, manage investments and prepare for retirement with confidence. With wide range of products, innovative distribution models and strong footprints in both mature and developing markets, ING has the long-run economic, technological and demographic trends on their side. ING aligns its business strategy around a universal customer ideal: saving and investing for the future should be easier. While steering the business through turbulent times, ING will execute efforts across all its business lines to strengthen customer confidence and meet their needs, preserve a strong capital position, further mitigate risks and bring its costs in line with revenue expectations.

COPERATE RESPOSIBILITY
ING wants to pursue profit on the basis of sound business ethics and respect for its stakeholders. Corporate responsibility is therefore a fundamental part of INGs strategy: ethical, social and environmental factors play an integral role in business decisions
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1.4 FINANCIAL RESULTS

FY 2008 Income (in EUR milion) Insurance operations Banking operations Total Income1 Operating Expenses Insurance operations Banking operations Total operating expenses Addition to loan loss provision Banking operations Insurance result before tax Banking result before tax Total result before tax Taxation Minority interests Net result Figures per ordinary share (EUR) Net result Earnings 2) Dividend Shareholders equity Balance Sheet (in EUR billion) Total assets Total equity
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FY2007 62,208 14,602 76,587 5,515 9,967 15,481 125 6,533 4,510 11,043 1,534 267 9,241

FY2006 FY2005 FY2004 59,642 57,403 55,614 14,195 13,848 12,678 73,621 71,120 68,171 5,275 9,087 103 4,935 5,005 9,940 1,907 341 7,692 5,195 8,844 88 3,978 4,916 8,894 1,379 305 7,210 4,746 8,795 465 4,322 3,418 7,740 1,709 276 5,755

54,851 11,731 66,291 5,422 10,303 15,725 1,280 -1,635 148 -1,487 -721 -38 -729

14,362 14,039 13,541

-0.36 -0.56 0.74 8.55

4.32 4.32 1.48 17.73

3.57 3.57 1.32 17.78

3.32 3.32 1.18 16.96

2.71 2.71 1.07 12.95

1,332 29

1.312 40

1,226 41

1,159 38

964 28

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