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A PROJECT REPORT ON

Under the guidance Of Ms. Khushbu Submitted by Ravi Paul


(26)

in partial fulfillment of the requirement for the award of the degree Of MBA IN Banking & Finance July 2012

ACKNOWLEDGEMENT

I am very much thankful to Prof. Khushbu (PROJECT GUIDE) for giving us opportunity and her guidance help us through out preparing this report. She has also provided us a valuable suggestions and excellence guidance about this project which proved very helpful to us to utilize my theoretical knowledge in practical field.

At last I am also thankful to my friends, to all known and unknown individuals who have given me their constructive advise, educative suggestion, encouragement, co-operation and motivation to prepare this report.

Ravi Paul (26)

BONAFIDE CERTIFICATE

Certified that this project report titled Project report on ING Vysya Bank Ltd. is the bonafide work of Ravi Paul who carried out the project work under my supervision. SIGNATURE SIGNATURE

Prof. Sheelu Sharma Arora Academic Head DIHE Community Centre, Rohini Sector 3, New Delhi 110085

Prof. Khusbhu Project Guide DIHE Community Centre Rohini Sector 3 New Delhi 110085

Executive Summary Project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This project as a whole can be divided into different parts: Each part gives an insight about the Banking Sector and its various aspects. It is purely based on whatever I learned at ING Vysya Bank Ltd. One can have a brief knowledge about Banking Industry and all its basics through the project. Other than that the real servings come when one moves ahead. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the datas have been well analyzed well.

Hope the research findings and conclusions will be of use.

INDEX

SR. No.
Chapter : 1 Chapter : 2 Chapter : 3 Chapter : 4 Chapter : 5 Chapter : 6 Chapter : 7 Chapter : 8 Chapter : 9 Chapter : 10 Chapter : 11 Chapter : 12

Subject
Overview Banking Its History Major Players Banking In India ING Vysya Bank Ltd. Profile Business Strategy Technology Used in ING Vysya Bank Ltd. Achievements & Milestones My Learning SWOT Analysis

Page No.
6 6 6 7 7 15 17 25 26 27 28 46

Bibliography

1. Overview
ING is a diversified financial services Group that provides a range of banking and financial services to customers, including retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking, and treasury products and services.

The company operates in, India, the UK, Canada, Russia and in 60 other countries. It is headquartered in Amsterdam, Netherlands and employs about 1,10,000 people worldwide.

2. BANKING
A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. Banks are important players in financial markets and offer financial services such as investment funds. In some countries such as GERMANY, banks are the primary owners of industrial corporations. While in other countries such as the UNITED STATES banks are prohibited from owning non-financial companies.

3. HISTORY OF BANKING
The first banks The Bankre probably the religious temples of the ancient world. It was probably established sometime during the third millennium B.C.
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Banks probably predated the invention of money. There are extant records of loans from the 18th century BC in Babylon that The Bankre made by temple priests or monks to merchants.

4. MAJOR PLAYERS IN INDIA


0 State Bank of India o HDFC Bank o ICICI Bank o HSBC Bank o IDBI Bank o Citi Bank o Axis Bank o Punjab national Bank o ING Vysya Bank o Union Bank of India

5. INDIAN BANKING INDUSTRY


BANKING IN INDIA Banking in India originated in the last decades of the 18th century. The first banks The Bankre THE GENERAL BANK OF INDIA, which started in 1786, and BANK OF HINDUSTAN, both of which are now defunct. The oldest bank in existence in India is the STATE BANK OF INDIA, which originated in the BANK OF CALCUTTA in June 1806. The first fully Indian owned bank was the ALLAHABAD BANK, established in 1865.

Until the early 1990s, the Indian financial system was strictly controlled. Interest rates were administered, formal and informal parameters governed asset allocation, and strict controls limited entry into and expansion within the financial sector. The Governments economic reform program, which began in
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1991, encompassed the financial sector. The first phase of the reform process began with the implementation of the recommendations of the Committee on the Financial System, the Narasimham Committee I. The second phase of the reform process began in 1999. Reserve Bank of India RBI, established in 1935, is the central regulatory and supervisory authority for the Indian financial system. RBI manages Indias money supply and foreign exchange and also serves as a bank for the Government and for Indias commercial banks. RBI issues guidelines on various areas including exposure standards, income recognition, asset classification, provisioning for non-performing and restructured assets, investment valuation and capital adequacy standards for commercial banks, long-term lending institutions and non-bank finance companies. RBI requires these institutions to furnish information relating to their businesses to RBI on a regular basis.

Commercial Banks Commercial banks in India have traditionally focused only on meeting the short-term financial needs of industry, trade and agriculture. Commercial banks can be classified into two categories namely Scheduled Commercial Banks and Non-Scheduled Commercial Banks (Local Area Banks). Scheduled Commercial Banks are banks that are listed in the schedule to the Reserve Bank of India Act, 1934, and may further be classified as public sector banks, private sector banks, correspondent banks, foreign banks and regional rural banks. Scheduled commercial banks have a presence throughout India, with approximately 70% of bank branches belonging to the public sector banks are located in rural or semi-urban areas of the country.

Public Sector Banks

Public sector banks constitute the largest category in the Indian banking system. They include the State Bank of India and its 7 associate banks, 19 nationalised banks and 196 regional rural banks. As of June 30, 2004, apart from the regional rural banks, the other public sector banks have over 46,500 branches. Public Sector Banks collectively account for approximately 73.2% of the outstanding gross bank credit and 77.9% of the aggregate deposits of the scheduled commercial banks. The large network of public sector bank branches enables them to fund themselves out of low cost deposits. The State Bank of India is the largest public sector bank in India.

Private Sector Banks After the first phase of bank nationalization was completed in 1969, public sector banks made up the largest portion of Indian banking. In July 1993, as part of the banking reform process and as a measure to induce competition in the banking sector, RBI permitted entry by the private sector into the banking system. This resulted in the introduction of nine private sector banks. These banks are collectively known as the new private sector banks. There are ten new private sector banks at present. In addition, 20 private sector banks existing prior to July 1993 are currently operating as on June 2004.

Foreign banks As of June 30, 2004, there were 32 foreign banks with 215 branches operating in India. As part of the liberalization process, RBI has permitted foreign banks to operate more freely, subject to requirements largely similar to those imposed on domestic banks. Foreign banks operate in India through branches of their parent banks. In fiscal 2003, the Government announced that foreign banks would be permitted to incorporate subsidiaries in India. Subsidiaries of foreign banks will have to adhere to all banking regulations, including priority sector lending norms, applicable to domestic banks. The primary activity of most foreign banks in India has been in the corporate segment. However, in recent years, some of the larger foreign banks have started to make consumer financing a larger part of their portfolios based on the growth opportunities in this area in India. These banks offer products such
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as automobile, finance, home loans, credit cards and household consumer finance. The government has also announced that foreign banks having branch presence in India will be permitted subject to certain conditions to acquire up to 74.0% shareholding in private sector banks in India. Cooperative Banks Cooperative banks cater to the financing needs of agriculture, small industry and self-employed businessmen in urban and semi-urban areas of India. The state land development banks and the primary land development banks provide long-term credit for agriculture. In the light of liquidity and insolvency problems experienced by some cooperative banks in fiscal 2001, RBI undertook several interim measures, pending formal legislative changes, including measures related to lending against shares, borrowings in the call market and term deposits placed with other urban cooperative banks. Presently, RBI is responsible for supervision and regulation of urban cooperative societies, and the National Bank for Agriculture and Rural Development (NABARD) for State Co-operative Banks and District Central Co-operative Banks.

Non-Bank Finance Companies There are over 13,671 non-bank finance companies in India as at end-June 2004, mostly in the private sector. All non-bank finance companies are required to register with RBI in terms of the Reserve Bank of India (Amendment) Act, 1997. The nonbank finance companies, on the basis of their principal activities are broadly classified into four categories namely Equipment Leasing, Hire Purchase , Loan and Investment Companies and deposits and business activities of Residuary Non-Banking Companies (RNBCs). The Reserve Bank has put in place a set of directions to regulate the activities of NBFCs under its jurisdiction. The directions are aimed at controlling the deposit acceptance activity of NBFCs. The NBFCs which accept public deposits are subject to strict supervision and capital adequacy requirements of RBI. Out of 13,671 NBFCs registered with RBI as at endJune 2004, 584 NBFCs accept Public Deposits. The scope and activities of non-bank finance companies have grown significantly over the years. The primary activities of the non-bank finance companies are consumer credit
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including automobile finance, home finance and consumer durable products finance, wholesale finance products such as bill discounting for small and medium-sized companies, and fee-based services such as investment banking and underwriting. In 2003, Kotak Mahindra Finance Limited, a large non-bank finance company was granted a banking license by RBI and converted itself into Kotak Mahindra Bank.

Housing Finance Companies Housing finance companies form a distinct sub-group of the non-bank finance companies and are regulated by National Housing Bank (NHB). As a result of the various incentives given by the Government for investing in the housing sector in recent years, the scope of their business has grown substantially. Until recently, Housing Development Finance Corporation Limited was the premier institution providing housing finance in India. In recent years, several other players including public and private sector banks have entered the housing finance industry. The National Housing Bank and the Housing and Urban Development Corporation Limited are the two Government-controlled financial institutions created to improve the availability of housing finance in India. The National Housing Bank Act provides for refinancing and securitization of housing loans, foreclosure of mortgages and setting up of the Mortgage Credit Guarantee Scheme.

Specialized Financial Institutions In addition to the long-term lending institutions, there are various specialized financial institutions that cater to the specific needs of different sectors. They include the National Bank for Agricultural and Rural Development, Export Import Bank of India, Small Industries Development Bank of India, Risk Capital and Technology Finance Corporation Limited, Tourism Finance Corporation of India Limited, National Housing Bank, Power Finance Corporation Limited and the Infrastructure Development Finance Corporation Limited.

Insurance Companies
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Currently, there are 27 insurance companies in India, of which 13 are life insurance companies, 13 are general insurance companies and one is a reinsurance company. Of the 13 life insurance companies, 12 are in the private sector and one is in the public sector. Among the general insurance companies, eight are in the private sector and five are in the public sector. The reinsurance company, General Insurance Corporation of India, is in the public sector. Life Insurance Corporation of India, General Insurance Corporation of India and public sector general insurance companies also provide long-term financial assistance to the industrial sector. In December 1999, the Insurance Regulatory and Development Authority Act 1999 was passed. The insurance sector in India is regulated by the Insurance Regulatory and Development Authority, which was established to protect the interests of holders of insurance policies, to regulate promote and ensure orderly growth of the insurance industry and for related matters. The IRDA Act opened up the Indian insurance sector for foreign and private investors. The Act allows foreign equity participation in new insurance companies of up to 26.0%. A new insurance company is required to have a minimum paid up equity capital of Rs. 1.0 crore to carry out the business of life insurance or general insurance or Rs. 2.0 crore to carry out exclusively the business of reinsurance.

Mutual Funds From 1963 to 1987, Unit Trust of India was the only mutual fund operating in India. It was set up in 1963 at the initiative of the Government and RBI. From 1987 onwards; several other public sector mutual funds entered this sector. These mutual funds were established by public sector banks, the Life Insurance Corporation of India and General Insurance Corporation of India. The mutual funds industry was opened up to the private sector in 1993. The industry is regulated by the SEBI (Mutual Fund) Regulation 1996.

Impact Of Liberalization On The Indian Financial Sector

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Until 1991, the financial sector in India was heavily controlled and commercial banks and long-term lending institutions, the two dominant financial intermediaries, had mutually exclusive roles and objectives and operated in a largely stable environment, with little or no competition. Longterm lending institutions were focused on the achievement of the Governments various socio-economic objectives, including balanced industrial growth and employment creation, especially in areas requiring development. Long-term lending institutions were extended access to longterm funds at subsidized rates through loans and equity from the Government and from funds guaranteed by the Government originating from commercial banks in India and foreign currency resources originating from multilateral and bilateral agencies. The focus of the commercial banks was primarily to mobilize household savings through demand and time deposits and to use these deposits to meet the short-term financial needs of borrowers in industry, trade and agriculture. In addition, the commercial banks provided a range of banking services to individuals and business entities. Since 1991, various financial sector reforms have transformed the operating environment of the banks and long-term lending institutions. In particular, the deregulation of interest rates, emergence of a liberalized domestic capital market, and entry of new private sector banks, along with the broadening of long-term lending institutions product portfolios, have progressively intensified the competition between banks and long-term lending institutions. RBI has permitted the transformation of long term lending institutions into banks subject to compliance with the prudential norms applicable to banks.

Banking Sector Reform Most large banks in India were nationalized in 1969 and thereafter were subject to a high degree of control until reform began in 1991. In addition to controlling interest rates and entry into the banking sector, these regulations also channelled lending into priority sectors. Banks were required to fund the public sector through the mandatory acquisition of low interest-bearing Government securities or statutory liquidity ratio bonds to fulfil statutory liquidity requirements. As a result, bank profitability was low, non-performing
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assets were comparatively high, capital adequacy was diminished, and operational flexibility was hindered.

Committee on the Financial System (Narasimham Committee I) The Committee on the Financial System (The Narasimham Committee I) was set up in August 1991 to recommend measures for reforming the financial sector. Many of the recommendations made by the committee, which addressed organisational issues, accounting practices and operating procedures, were implemented by the Government. The major recommendations that were implemented included the following:

With fiscal stabilization and the Government increasingly resorting to market borrowing to raise resources, the statutory liquidity ratio or the proportion of a banks net demand and time liabilities that were required to be invested in Government securities was reduced from 38.5% in the pre-reform period to 25.0% in October 1997. This meant that the significance of the statutory liquidity ratio shifted from being a major instrument for financing the public sector in the pre-reform era to becoming a prudential requirement; similarly, the cash reserve ratio or the proportion of a banks net demand and time liabilities that were required to be deposited with RBI was reduced from 15.0% in the pre-reform period to 4.5% currently; special tribunals were created to resolve bad debt problems; Most of the restrictions on interest rates for deposits were removed. Commercial banks were allowed to set their own level of interest rates for all deposits except savings bank deposits;

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Substantial capital infusion to several state-owned banks was approved in order to bring their capital adequacy closer to internationally accepted standards. By the end of fiscal 2002, aggregate recapitalisation amounted to Rs. 217.5 crore. The stronger public sector banks were given permission to issue equity to further increase capital; and banks were granted the freedom to open or close branches. Committee on Banking Sector Reform (Narasimham Committee II) The second Committee on Banking Sector Reform (Narasimham Committee II) submitted its report in April 1998. The major recommendations of the committee were in respect of capital adequacy requirements, asset classification and provisioning, risk management and merger policies. RBI accepted and began implementing many of these recommendations in October 1998.

6. ING Bank
The ING Vysya Bank Ltd is one of the well known financial organizations in India. It is applicable for both short term and long term financial solutions. It is mainly an entity or a venture which has been formed with the global financial giant ING of Netherlands. The ING Vysya Bank Ltd is a trusted name in the banking and commercial sector of the country. The ING Vysya Bank Ltd was established in the month of October in the year 2002. The bank came into existence when the Vysya Bank Ltd went into a venture with global financial giant ING. Vysya Bank Ltd was one of the first private sector banks in the country and was set up in the year 1930. The main objective of setting up the bank was to provide financial support to the various sectors of the economy. In the year 1948, the Vysya Bank was listed among the Scheduled Banks. In order to increase its profit and add to its operations, the Vysya Bank Ltd merged with ING. The headquarters of the bank is located in the city of Bangalore. Among the total number of branches, there are 468 regular branches, 28 satellite offices, 13 extension counters. The number of ATMs is
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around 357 which are expected to increase within the next few years. The deposit of the bank amounts to around Rs. 25,865 crore while the net worth is around Rs 14260.00 millions. The profits of the bank amount to around Rs. 242.2 crore. With 74 years of experience in the Indian banking segment and with ING Groups active participation in managing the affairs of the Bank, the Bank is uniquely positioned as an Indian made Foreign Bank. Being a well known name in the domain of financial and banking services in the country, the ING Vysya Bank Ltd has come up with a number of financial solutions and services in a number of areas. Some of the well known segments in which the bank offers customized and specialized services are:

Accounts and deposits Short and long term loans Private banking NRI services

Personal Banking: The personal banking department of ING Vysya Bank Ltd offers high quality services and solutions to cater to the financial needs and preferences. The high end solutions make them a one stop organization to fulfill the needs and requirements of the customers. Some of the well known services offered in the segment of personal banking are:

Mutual Funds Tax Savings Bonds Savings Account NRI Services Credit & Debit Card Internet Banking Phone Banking Mobile Banking Self Banking Term deposits
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Demat accounting Wealth management Debit and credit card accounting Payment services

Wealth Management services: The wealth management services of the ING Vysya Bank Ltd offers the best services in order to take care of the needs and preferences of the consumers in various wealth management sectors. The secure services offered by the bank also minimize the risk processes and also offer the best of returns. In addition to these, ING Vysya Bank Ltd also offers business banking facilities and services of high standards. The services are meant to take care of the business needs and also provide high degree of financial stability to the various corporate organizations and business sectors. Some of the well known services that are offered include:

Long and term loans in the agro based sector SME- Power Business account and loans Financial market analysis Market trading Asset liability management services Financial market sales Cash management services Corporate and investment banking services Off shore borrowing services Trade and community finance services

7. PROFILE
As of March 31, 2004, The Bank was the seventh largest private sector bank in India in terms of assets with total assets of Rs. 13198 crore. Our business has been organized into RETAIL BANKING WHOLESALE BANKING. and

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Our RETAIL BANKING business comprises four business units namely 1. 2. 3. 4. Consumer Banking, Small and Medium Enterprises (SME) Agriculture and Social Banking Unit (ASBU) and Private Banking.

1. Consumer Banking The Consumer Banking business consists of Consumer Lending and Consumer Liabilities, which offers to retail consumer both asset based products such as home loans, personal loans, credit cards and liability products, such as savings accounts, salary accounts and term deposits. The Bank have focused our efforts, resources and talent to ensure that The Bank capitalize fully on the opportunities available to us. (a) Consumer Lending Consumer lending deals with granting secured loans to individuals, partnership firms, and companies, as well as unsecured loans to individuals for various purposes. Our business is primarily driven through 19 Asset Booking Centres spread over the country, where consumer finance loans are disbursed.

The Bank have following consumer lending products in our portfolio. Home Loans: In the year 2003, The Bank introduced customized home loans with built in free life insurance for the full loan term and amount and a floating rate based on market determined rate (MIBOR). The Bank believe that compared to our competitors, this is a uniquely featured product, which has already resulted in volumes of Rs. 77.74 crores covering 884 accounts, as of September 30, 2004. Additionally, the Bank is planning to add further features and flexibility to meet the demands of the customer. Credit Cards: Our credit card charges a relatively low nominal rate of 1.5% on cash withdrawals. The Bank do not charge any transaction fee on fuel purchased and also enables global access to over 30 million
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merchant establishments worldwide. The card is issued in partnership with Citibank, which allows the bank and its customers to benefit from the Citibanks experience in processing credit cards. Auto loans: The Bank introduced auto loans in 2000 to provide finance to individuals and corporates for purchase of new and used cars. The average tenor of auto loan is between three to five years. Auto loans are secured by a charge on the purchased automobile. This business is managed by our distribution system supported with Credit and Risk Management Teams, which has been instrumental in achieving targeted volumes.The Bank have strong relationships with certain automobile manufacturers and are the preferred financiers to 3 automobile manufacturers, in India. Two Wheeler loans: Two-wheeler loans were introduced in 2001 primarily to facilitate purchase of two-wheelers for individual and corporate customers. Two wheeler loans are secured by a charge on the moveable asset. The average tenure of loan is between one to three years. Our business has recorded growth ever since its inception owing to our distribution system, customer oriented schemes and fast turnaround time. Personal Loans: These are unsecured loans provided to customers for various purposes such as higher education, medical expenses, social events and holidays. Introduced in 2002, this product has witnessed growth owing to our customer programs and distribution team. Advances against Demat securities: The Bank introduced Advance against Demat Securities in 2003, which has resulted in volumes of Rs. 1.88 crores, covering 58 accounts, as of September 30, 2004. Loans for subscribing to IPOs: The loans for subscribing to IPOs came in 2003, which has resulted in volumes of Rs. 0.05 crores as of September 30, 2004. Commercial Vehicle Loans: The Commercial Vehicle Loans was introduced in 2001. The Bank extend loans for purchase of new and
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used Commercial Vehicles - MAVs (Multi Axle Vehicles), HCVs (Heavy Commercial Vehicles), MCVs (Medium Commercial Vehicles) and LCVs (Light Commercial Vehicles), which include Buses, Trucks, Fully built vehicles & Tippers. The loan is generally granted for a maximum term of 48 months.

(b) Consumer Liabilities Resource mobilization in Retail Banking is a core activity of our bank. Our Bank has a customer base, of nearly one million with over Rs.10, 000 crores of deposits, with a mix of Savings, Current and Term deposits.

The Bank have the following consumer liability products in our portfolio Orange Savings Account: The Orange Savings Account was introduced in August 2003. It has secured more than 125,000 new customers. The key features of Orange Savings Account are free personal accident insurance cover including medical expenses for three years, free unlimited ATM transactions in over 9,000 MasterCard networked ATMs in India and overseas, free membership to Smartserv (Personal assistance service) and other facilities like Internet Banking, Tele banking, Anywhere Banking and other privileges. Orange Current Account: The Orange Current Account was launched in December 2003. Some of the distinct features of the account are free personal accident insurance cover, free cash in transit insurance, free ATM transactions in MasterCard network, free DDs/PO/PAP cheques upto Rs 1.5 crore per month and many other facilities. Since December 2003, this product has secured more than 2,500 customer accounts and mobilized over Rs 150 crores. Mpower Salary Account: Introduction of the Mpower Salary Account came in November 2002, which expedites the process of salary payments, facilitating both employer and employees.

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Advantage Savings: In September 2004, the Bank launched a scheme exclusively for the customers of nonnetworked branches with accident Insurance as the key feature. The scheme envisages coverage of savings bank account holders under personal accident insurance to a maximum of Rs.0.03 crores. Term Deposits: The Bank offers fixed, reinvestment and recurring deposits with all the facilities for easy transferability, different modes of interest payments, advance against deposit, premature withdrawal facility, acceptance in units and nomination facility. A sizeable portion of the portfolio is skewed towards reinvestment deposits amounting to over Rs. 7,300 crores. Debit Cards: The Bank have tied-up with Master Card Internationals to issue the International Debit Card with Maestro/Cirrus connectivity. This enables our debit card holders to access over 9000 ATMs of Maestro/Cirrus member banks and over 70,000 merchant establishments over India.

2. Small and Medium Enterprises (SME) Traditionally our focus has been on the Small and Medium Enterprises business, which has accounted for a sizeable proportion of our total advances. This segment focuses on the needs of all business enterprises in trading of goods/services with annual sales turnover up to Rs. 75 crores for both domestic & export credit requirements. The Bank have a large number of relationships which is a core strength enabling us to cross sell other products like Savings/Current/Term deposits, Insurance and Mutual Fund investments, Credit Card, Vys-DP etc.

3. Agriculture & Social Banking Unit (ASBU)


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ASBU deals with all banking business in rural branches and business related to Agricultural activities and lending to government sponsored schemes in other non-rural branches.

4. Private Banking In India, the erstwhile ING Bank was one among the firsts to offer private banking services. After ING Group invested in the Bank, the private banking arm of ING Bank was integrated into ING Vysya Bank. The client management team is supported by a product development team, and a research team headed by the Chief Investment Officer.

The following key products and services are in the domain of our private banking:

Investment Solutions: The Bank has portfolio management services are nondiscretionary in nature and include construction/ restructuring of the portfolios, monitoring them and executing clients requests. Our investment products include debt, equity, mutual funds and insurance. The Bank Structuring for Diverse Needs: The Bank structuring services embrace wills, trusts and other The Bank has established means of protecting and distributing assets. The Bank also provide real-estate advisory services that focus on broad-basing the clients The Bank has allocation and income streams, as the Bank provides tax and legal planning services through specialized partners. The Bank offers customers a choice of DELIVERY CHANNELS including: physical branches, Automated Teller Machine (ATMs), telephone banking, SMS and the Internet.
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In recent years, the Bank have expanded our physical delivery channels, including bank branches and ATMs, to currently cover a total of 866 outlets in 298 locations throughout India. The WHOLESALE BANKING is organized into three groups: Client Coverage, Products and Services and Financial Markets. While the Client Coverage group is responsible for managing relationships with identified client sub-groups, the Products and Services and Financial Markets groups are responsible for product and service delivery to the entire Wholesale Banking client base.

Wholesale Banking Products and Services The Bank provides a range of commercial banking products and services to Indias leading corporations and growth-oriented middle market businesses. Our key commercial banking products and services to corporate customers include (a) Credit Products and Structured Finance; (b) Cash Management; (c) Trade and Commodity Finance; (d) Investment Banking, Local Debt Syndication and Securitisations, (e) Financial Markets and (f) Corporate Deposits. (a) Credit Products and Structured Finance Credit Products of the Bank include products like Working Capital Finance, Term Finance and Structured Finance. Our corporate loan portfolio primarily consists of term loans for project and corporate finance, and working capital credit facilities.

(i) Working Capital Finance: Under working capital finance, The Bank offers the following products and services to our customers.

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Cash Credit / Overdraft Facilities: Cash credit facilities are the most common form of working capital financing in India. Under the cash credit facility, a line of credit is provided up to a pre-established amount based on the borrowers creditability and projected level of inventories, receivables and cash deficits. Up to this pre-established amount, disbursements are made based on the actual level of inventories and receivables. Cash credit / Overdraft facilities are running account facilities where the borrower may remit and draw funds freely. These are typically given to companies in the manufacturing, trading and service sectors on a floating interest rate basis. Interest is earned on this facility on a monthly basis, based on the daily outstanding amounts. The facility is generally given for a period of up to 12 months, with a review after that period. Our cash credit facility is generally fully secured with full recourse to the borrower. In most cases, the Bank has a first charge on the borrowers current assets, which normally are inventory and receivables. Additionally, in some cases, the Bank may take further security of a first or second lien on fixed assets including real estate, a pledge of financial assets like marketable securities, corporate guarantees and personal guarantees. Cash credit facilities are extended to borrower by a single bank, multiple banks or a consortium of banks with a lead bank. The nature of the arrangement is usually agreed between the bank and the borrowers and depends upon the amount of working capital financing required by the borrower, the risk profile of the borrower and the amount of loan exposure a single bank can take on the borrower. Regardless of the arrangement, the Bank undertake our own due-diligence and follow our credit risk policy to determine whether the Bank should lend money to the borrower and, if so, the amount to be lent to the borrower and the rate of interest to be charged. Commercial paper: A commercial paper is an unsecured, short-term corporate paper in the nature of a usance promissory note with fixed maturities and is negotiable by endorsement and delivery. Under current guidelines, commercial paper can be issued for a minimum tenor of 15 days and a maximum tenor of 365 days. Commercial papers are generally issued by highly rated borrower and since they are tradeable, they offer us a liquid investment opportunity.

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Bill Discounting: Bill discounting involves the financing of short-term trade receivables through negotiable instruments. These negotiable instruments can then be discounted with other banks if required, providing us with liquidity. In addition to traditional bill discounting, the Bank also provides customised solutions to our corporate customers having large dealer networks. Loans are approved to dealers in the form of working capital lines of credit, based on analysis of credit risk profiles of dealers. Short-term loan: Short-term loans are demand loans with a maturity of three to six months provided by us to corporate borrowers to meet their temporary cash flow mismatches or to avail of interest rate arbitrage. They can be denominated 43 in either rupee or foreign currency and can be disbursed as fixed rate loans or floating rate loans linked to our Banks reference rate called IVRR or money market benchmark rates. Short term loans are usually provided to highly rated corporates and may be unsecured. Export Credit: The RBI requires banks to make loans to exporters at concessional rates of interest. The Bank provides export credit for preshipment and post-shipment requirements of exporter borrowers in rupees and foreign currencies. The RBI provides export credit refinancing for an eligible portion of total outstanding export loans at the bank rate prevailing from time to time. The interest income earned on export credits is supplemented through fees and commissions earned from these exporter customers from other fee-based products and services availed by them from us, such as foreign exchange products. Letters of Credit: Letter of credit facilities are being provided to our working capital loan customers both for meeting their working capital needs as the Bank for capital equipment purchases. For working capital purposes, the Bank issue letters of credits on behalf of our borrowers for the sourcing of their raw materials and stock inputs. Lines of credit for letters of credit are approved as part of a working capital loan package provided to borrowers. These facilities, like cash credit facilities, are generally given for a period up to 12 months, with review after that period. Typically, the line is drawn down on a revolving basis over the term of the facility, resulting in a fee payable to us at the time of each
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drawdown, based on the amount and term of the drawdown. The Bank issue letters of credit on behalf of borrowers both for domestic and foreign purchases. Borrowers pay a fee to us based on the amount drawn down from the facility and the term of the facility. This facility is generally secured by the same collateral available for cash credit facilities. The Bank may also take collateral in the form of cash deposits, in the range of 5.0% to 20.0% of the drawdown amount, from our borrowers before each drawdown of the facility. Guarantees: Guarantees are being provided, which can be drawn down any number of times up to the committed amount of the facility. The Bank issue guarantees on behalf of our borrowers in favour of corporations and government authorities. Guarantees are generally issued for the purpose of bid bonds, guaranteeing the performance of our borrowers under a contract as security for advance payments made to our borrowers by project authorities and for deferral of and exemption from the payment of import duties granted to our borrowers by the government against fulfilment of certain export obligations by our borrowers. The term of these guarantees is generally up to 36 months though in specific cases, the term could be higher. This facility is generally secured by collateral similar to that of letters of credit. In addition, as a part of our project financing activity, The Bank issue guarantees to foreign lenders, export credit agencies and domestic lenders on behalf of our clients. The Bank has one wholly owned subsidiary, being IVFSL and two affiliate/associate companies being IIML and IVL. IIML is an Asset Management Company which manages the ING Vysya Mutual Fund and IVL is a life insurance company which provides a range of individual and group life insurance solutions, pension products, employee benefits; IVFSL distributes life insurance policies of IVL, mutual funds from ING Vysya Mutual Fund and third party investment products apart from distributing our own products.

8. BUSINESS STRATEGY
The objective is to build a recognizable position as a premier banking and other financial services products provider to retail and wholesale customers.
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The key elements of our business strategy are to: Fully leverage the synergies (including support and commitment) available from ING Focus on growth opportunities in the Retail banking business; Strengthen Wholesale Banking operations; Expand retail distribution capabilities; and Use of technology for competitive advantage

9. TECHNOLOGY USED IN ING Vysya Bank


The Bank seeks to be at the forefront of technology usage in the financial services sector. Information technology is a strategic tool for our business operations to gain competitive advantage and to improve overall productivity and efficiency of the organization. All of our technology initiatives are aimed at enhancing value, offering customer convenience and improved service while optimizing costs. The Bank expects to continue with our strategy of leveraging technology to achieve a significant competitive advantage. This will be done by ING Vysya Bank leveraging on the systems and processes that have already been developed by ING worldwide. These cover many functions in the bank, including risk management (credit, market, operational), financial markets, MIS, etc. The key objectives behind our information technology strategy include: building a cost-efficient distribution network in India to accelerate the development of our retail distribution capability enhancing cross selling and client segmentation. improving credit and market risk management. Introduction of customer centric products providing added value services to Tier 1 corporate clients by also leveraging on the global product and service delivery capabilities of ING
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capitalising on the banks legacy in the SME business.

10. ACHIEVEMENTS AND MILESTONES


Details of key milestones achieved by us so far are as follows: Year Key Events, Milestones and Achievements March 1930 Incorporation of The Vysya Bank Limited, Bangalore February 1948 Became a scheduled bank in terms of the RBI Act September 1985 Achieved the no. one position among private sector banks as on December 31, 1985 March 1987 Incorporation of The Vysya Bank Leasing Limited (now known as ING Vysya Financial Services Limited) for leasing and merchant banking activities along with Karur Vysya Bank Limited January 1988 Introduced co-branded credit cards by way of an affiliation with Central Bank of India. November 1990 Incorporation of Vysya Bank Housing Finance Limited for housing finance activities March 1991 Total deposits in the Bank crossed Rs.1000 crores. Financial Markets / Treasury Treasury is the Banks interface to all Financial Markets. The Bank has a wellequipped Integrated Dealing Room at its Corporate Office in Bangalore. The latest technology, information systems and risk management systems have been deployed, manned by experienced market professionals. The Bank has an experienced team of money market dealers who ensure that our Bank is compliant with the Cash Reserve Ratio (currently at 5%) and Statutory Liquidity Ratio (currently at 25%) stipulations of the RBI. Funds inflows and outflows of the Bank are carefully monitored to ensure that funds are available to meet the Banks requirements at all times.

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11. MY LEARNING
1.) CASH MANAGEMENT PROCESS INTRODUCTION 1. Handling of cash is one of the primary functions of a banker and Cash on Hand is the most liquid asset of the bank. 2. The transactions where cash is received into the bank are called Receipts and where cash goes out of the bank are called Payments. Joint Custody Joint custody means having control over access to any item/asset by two or more individuals through a system which prevents independent access to the item /asset by any one of them without the knowledge of the other or by anyone else. In banks, this will be ensured by having double locking arrangement to the iron safe/strong room/almirah and other places where the items/assets are stored which does not allow access to the item/asset by operating any one of the keys singly. The keys of the double locking arrangement will be in the joint custody of two employees designated for the purpose. These two employees holding joint custody are called Joint Custodians. In a branch, Cash, all security items, gold ornaments pledged to the bank, articles under safe custody, loan documents, title deeds of properties
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mortgaged to the bank etc., shall always be under joint custody only. ATM RELATED KEYS 1. All ATMs will have the following keys: a. Hood Keys or Bonnet Keys b. Keys of the safe containing Cash Cassettes and Cash Deposit Covers c. Number code for ATM safe 2. The details of all the keys should be recorded in the Key movement register and signature of the concerned employee obtained for taking possession of the keys. Cash Movement within the Branch At branches cash will be taken out of the strong room / safe at the beginning of the day, for the days operation. At the end of the day, the entire cash of the branch shall have to be amalgamated at one point and tallied to arrive at the days closing cash balance Cash Officer shall prepare slips for the following entries for the actual cash taken out (including the Shroff's Cash) from the cash safe and also key-in in the system under his User ID. a. Debit - Teller Out (TO) b. Credit - Cash Out (CO) Cashier shall append his signature on reverse of the debit slip while receiving the cash from the Cash Officer. The slip shall be in the custody of the Cash Officer. Cashier shall prepare corresponding slips as advised hereunder for the actual amount of cash handed over to him (including the Shroff's Cash) and also keyin in the system under his User ID a. Debit - Teller In (TI) b. Credit - Cash In (CI) General Guidelines on Cash
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Cash being the most liquid of assets has to be handled carefully. Cashier must be ready with the following to commence the business at the scheduled time: a. Cash Received and Cash Paid rubber stamps. b. Stamp pad with sufficient ink. c. Shroffs Scroll. d. List of missing tokens. e. Other stationery items necessary to discharge their duties effectively. f. Any other matter, prescribed by the appropriate authorities from time to time. Clean Note Policy The currency note being made of paper shall wear and tear with usage. Banks have been authorised by Reserve Bank of India to accept such notes and provide exchange of issuable notes to customers and get reimbursement from Reserve Bank of India.

CLEAN NOTE POLICY OF RBI Currency notes should not be stapled (fresh / re-issuable / non-issuable). Nothing should be written on the currency notes especially in the watermark window. Branches should not accept soiled/defective notes for the purpose of issuing Demand Drafts, Pay Orders etc., or while accepting Inter Bank Deposits Cashier should not accept mutilated/defective notes from Customers for immediate credit of their accounts. CUPRO-NICKEL & ALUMINUM COINS Government has withdrawn old coins of value up to Re.1/- made from CuproNickel alloy and Aluminum FORGED NOTES Counterfeiting of currency notes is an offence under Sec.489 (A) to (E) of the Indian Penal Code and therefore, these cases are to be investigated by the State Police Authorities.
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Branches must equip themselves with Ultra Violet Lamps which must be in working condition at all times and made use of for detection of forged notes. When a note which is suspected to be forged / is found to be forged, the amount of the same should not be credited to the account of the party nor the forged note be returned to the tenderer. The forged notes shall be forwarded to the local police for investigation by filing FIR CASH RECEIPTS Customers remit cash for credit of their account or for any approved banking transactions. Non-customers also remit cash for certain specific banking transactions. Any person remitting cash into the bank must fill in a form called Pay-in-Slip. A member of clerical staff entrusted with the duties of cash is called Cash Teller.

CASH TELLER Cash Teller should receive cash from the remitter alongwith the Pay-in-Slip, verify whether the prescribed Pay-in-Slip is submitted and that the same along with counterfoil are properly and correctly filled up. He should verify whether the currency/coins remitted are legal tender. In respect of transactions where PAN is to be quoted he has to ensure that the same is quoted at the space provided or at a prominent place on the pay-inslip. He should verify the PAN on the pay-in-slip with the PAN recorded at the CIF level and ensure that both are the same. The cash received shall be counted and verified in presence of the remitter denomination wise with that written in the Pay-in-Slip/voucher. Cash counting machines wherever provided are meant for second verification/counting of cash but not for the first counting by the Cash Teller. The Pay-in-Slip should be stamped twice with the Cash Received stamp with date. The stamping of one seal should be done in such a way that a major portion of it on the counterfoil and the remaining on the main challan. Another seal should appear in full on the Pay-in-Slip. It should be
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ensured that the seals affixed do not render the contents on the Pay-in-Slip illegible. Cash Teller should sign in full both on the Pay-in-Slip/Voucher and counterfoil and on copies of the same. In case of transactions like issue of DDs where the amount of Pay-in-Slip includes commission to be credited to Profit and Loss Account, the credit to Profit and Loss shall be entered in an inner column drawn for the purpose and only the amount for which the DD is to be issued should be shown in the receipts column. SUBMISSION OF ANNUAL INFORMATION RETURN (FORM No. 65) 1. The Income Tax Department has introduced a new Annual Information Return (Form No. 65) to be submitted by banks containing information in respect of the following transactions entertained by them during a financial year w.e.f. 01.04.2004. 2. Cash deposits aggregating to Rs.10.00 lakhs or more in a financial year in any savings bank account. 3. Payment made by any person against bills raised in respect of credit card aggregating to Rs. 2.00 lakhs or more in a financial year. 4. Certain other types of transactions CASH PAYMENTS The paying Cash Teller shall have sufficient cash for payments before the commencement of business everyday . The loose cash received is to be properly segregated denomination wise and kept in separate bins in the table draw. Non-issuables should not be included either in loose cash or in packets and should always be kept separate. Cash Teller should make payment to the payee only on the vouchers received by him with the proper authorization. The Cash Teller/Cash Teller receives for payment the cheques / withdrawals directly from the customers. He should scrutinize the cheques/withdrawals and pass the cheques/withdrawals by following the normal procedure for payment On being satisfied, the Cash Teller should take out the amount of the voucher/cheque etc., from the cash, write the denominations on the back of the voucher, recount, and handover to the presenter. On making payment, the Cash Teller should affix the Cash Paid stamp on the voucher and subscribe signature on the voucher/cheque etc.
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CLOSING OF CASH After close of business hours, the cashier should count and sort the cash available with him into issuables and non-issuables. Each Section of 100 pieces should be covered with a denomination slip as specified hereunder: a. Form 191 for issuables b. Form 191A for non-issuables While doing so: a. The Section should not be stapled. b. The Section should be bound only with rubber bands or twine thread. c. Stickers or gummed labels should not be used. d. A combination of vertical and horizontal banding with banks stickers should be used. e. Cashier should secure the Sections with twine thread vertically on the left side of the Section and affix his signature with date on the denomination slip. The Joint Custodian Officer / Authorised Officer should affix his signature with date on the denomination slips after ensuring the correctness of the Sections as to the number of notes. All currency notes that cannot be issued to public are to be remitted to our Currency Chest/local branch of RBI/SBI or any other Nationalised Bank at the earliest. After tallied pass TO & CO entries under his ID. After the entries are passed, he should verify his Teller Proof to ensure that the cash as per the same is appearing as 0. After ensuring this, he has to handover the physical cash to the Main Cashier and obtain his signature on reverse of the debit slip (TO). Main Cashier on verification of the physical cash received and the Teller Proof of the Second Cashier should pass TI, CI entries under his ID. He should prepare respective debit and credit slips. Hard copy of the Cash Count should be signed by both the Joint Custodians and filed in the file maintained for the purpose. Cash should be carried to the Cash Safe under the supervision of the Joint Custodians.
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Cash (including box containing Shroffs Cash) along with the Cash Count File and Double Lock Register should be kept inside the Cash Safe and the safe is to be locked by both the Joint Custodians. At the beginning of the next day, Joint Custodian Officer should verify to ensure that the Cash Balance as per the previous days General Ledger (2601010001) and Cash Count are tallying. SURPRISE VERIFICATION OF CASH by RO Once a quarter the RH OPS & IT shall arrange for surprise verification of cash by designating an officer from some other on behalf of RO nearby branch to verify the cash and submit the report. The report shall be the Cash count report printed from the system and duly signed by the Joint custodians and countersigned by the visiting officer certifying the correctness of physical cash with that in the report. The visiting officer shall also submit a separate report for any discrepancy or other deviations that requires the attention of the controlling authorities.

CASH REMITTANCES Carrying of cash from one branch to another branch / another bank or wherever prior approval is there, carrying of cash by the branch staff from the branch to a customers business place/office and vice versa, is known as Cash Remittance. Generally, the need for cash remittance arises when: a. A branch is having cash in excess of its normal day to day requirements and beyond the Cash Retention Limit fixed for the branch b. A branch is in need of cash c. A customer requests for the same as per the previous arrangement d. It is a security threat to maintain huge cash balances at the branch The branch intending to dispose surplus cash / supplying the cash is called as Remitting Branch and the branch or other bank receiving the cash is called as Receiving Branch/Bank. In centres where more than one branch of our bank is functioning, the
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controlling Regional Head OPS & IT shall identify one of the branches for the purpose of cash maintenance called Cash Pooling Centre (Branch). All other branches shall normally either remit or receive cash only from the Cash Pooling Centre (Branch) BAIT OR DECOY MONEY Branches should keep a certain sum of money of used, old and issuables notes (but not soiled) of higher denomination both in the cash safe and with the cashier in the drawer of the cash counter during counter hours. The distinctive numbers of these notes should be noted down separately on a sheet of paper in duplicate, duly signed by the Cashier, Cash Officer and Branch Head. One copy of it will be with the Cash Officer and the other with the Branch Head. This money should not be used in the regular course so that in case of holdup / dacoity / robbery / theft, the stolen money includes this money also. The serial numbers of these Currency Notes should be mentioned in the report to be submitted to the Police whereby they will be in a position to track down the culprits who try to put this money into circulation. This bait money should be changed once in three months. This money should not be kept in envelope or displayed prominently or conspicuously. It should be kept as normal issuing cash lying with the cashier 2.) CLIENT AND CIF Standard Operative Procedures (SOP) for Know Your Customer (KYC) norms DOCUMENTATION The key requirements under documentation are obtaining a duly completed account opening form, customer information form, standard documents for individual/non-individual accounts and necessary supporting documents for Proof of Identity, Proof of Address and Signature Proof. The procedures to be followed are as follows: Step 1
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1. The customer is required to complete the Account Opening form (AOF) and the Customer Information Form (CIF) wherein details on the customers background and facilities opted by the customer are recorded. All fields in the AOF and CIF are mandatory and should be completed in all respects. Step 2 1. The details furnished in the AOF and CIF has to be supported by the Proof of Identity (POI), Proof of Address (POA) and Signature Proofs (SP) of the account holders. Step 3 1. The customers photographs should be affixed on the AOF and CIF. The customer should sign across his photograph whereby a part of the signature is on the photograph and a part on the AOF / CIF. 2. Branches should obtain latest photographs of the depositors / all account holders at the time of opening of new accounts under all categories of deposits, including term deposits. 3. The Branch Head/Authorised Officer should attest the photograph under his official seal/branch round seal near the place where the same is affixed, duly mentioning his specimen signature number. Step 4 1. The initial deposit should be collected from the customer either in the form of cash or cheque.

PAN Verification: The PAN number provided by the customer has to be checked from the Income Tax ,the website for correctness and authenticity by the branch sourcing the account.

CUSTOMER DUE DILIGENCE On satisfactory completion of the documentation, the SM /DE of the branch should perform due diligence on the customer . The due diligence may be performed in the form of a personal interview, visit to customers address, conducting enquiries over telephone or any other appropriate method to verify the background of the customer and
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UBO/representatives. SOLE PROPRIETARY CONCERNS A sole proprietorship is an unincorporated business that is owned by one individual. The person owning the business is called the Proprietor / Sole Proprietor The liabilities of the business are also the personal liability of the owner. In case the firm has not obtained PAN, the PAN of the Sole Proprietor must be indicated in the relevant columns in CIF. PARTENERSHIP FIRMS Partnership is the result of an agreement between persons and its partners represent the firm. All partners are jointly and severally liable for the dues of the firm and the liability of each partner is unlimited. The personal assets of partners can be utilized / attached for recovery of dues of the partnership firm. A partner cannot endorse a cheque favouring the firm in his own name for credit to his personal account.

LIMITED COMPANIES The Company is separate from its members and shareholders. The existence of a company is not affected by the death, insolvency, lunacy etc. of its members or shareholders. Precautions to be taken: Cash withdrawals should be allowed against bearer cheque drawn in favour of Ourselves and the authorized signatory should attest the signature of the company representative on the back of the cheque to receive cash on behalf of the company. In case of huge cash withdrawals, branch officials should ascertain the reason and satisfy themselves of the reason.
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Cash should not be paid against cheques drawn in favour of the Company. CIF of the company and also directors and authorized signatories should be obtained for opening of account in Profile. INTRODUCTION 1. Customer Information Form (CIF) is a document that provides the details of the prospective customer who is entering into a banking relationship with the bank. 2. Each CIF shall have distinct bar code number that shall be Customer identity number for all banking relationship of the prospective customer. 3. Bar code is only for a/c processing and does not relate to customer identity number for banking relationship. Guidelines 1. CIF is a common form for all types of customers and the same has to be obtained for all types of customers who prefer to have banking relationship with the bank either for a liability product or an asset product. 2. It should be ensured that all relevant data for the customer as required are properly filled in by the customer. 3. CIF is the primary document that provides customer information to the bank and the documents required is obtained for the specific customer. 4. In case of joint accounts, CIF has to be obtained for all the joint account holders. 5. In addition to the CIF for the firm, in case of Partnership firms, CIF of all partners whether authorised to operate or not should be obtained. 6. In addition to the CIF for the firm, in case of non- individual accounts other than partnership accounts, CIF has to be obtained for all persons who are authorised to operate the account. 7. Ensure that the customer enters the data in capital letters only and black ink is used to fill in the details. 8. Once the duly completed CIF is received, it should be checked for completeness and signature of the prospective customer. 9. Branch should ensure to make enquiries and complete the portion of the CIF that are meant to completed by the branch. 10. The branch should call for any additional details required from the customer and provide proper assessment of customers standing.

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11.Branch should ensure to conduct due diligence and confirm the same. 12.Once the due diligence is completed the officials conducting the due diligence and enquiry should sign confirming the same. 13.COPS shall categorise the account based on the available information and activate the account. 14.An unique identification number is allotted to each customer in the Profile System. 15.CIF is for the customer. The CIF number is common to each customer for various accounts in his name either singly or jointly with another person. Hence, any number of accounts for the same customer can be linked to the CIF and there is no necessary for obtaining CIF from the customer for opening subsequent accounts once the relationship is established. 16.In Profile system, the customer information is held as a separate file in the system, which is utilized by the Branches for opening accounts of different types for the same customer at any of the Branches. 17. Opening of a CIF is a prerequisite for opening a customer account in the Profile System. Customer identification In Profile system, customer is identified by the CIF number generated by the system. This number is unique across the bank and any branch can access the customer information by using the CIF number. Details available in CIF The new Customer Information File (CIF) is a numbered document, which is also bar coded. This is done for easy retrieval at COPS and for tracking purposes only. The new Customer Information File is to be used for all products in the Bank, including loan products except Consumer finance loans booked in Lend sphere application. The new CIF has been bar-coded and numbered If the customer is an individual, the first section with the sub heading Customer Details Individual needs to be completed and the second portion Customer Details Non Individuals needs to be struck off. Where the Customer is not an individual, The second section with the sub heading Customer Details Non Individuals to be completed and the first section Customer Details Individual must be struck off. Photograph of the Customer to be affixed and the Customer has to sign across the photograph and the form. Customer has to sign a second time in the box provided for signature just below Photograph.
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If the Customer does not wish to be disturbed by the bank for product promotions, please ensure that the customer selects the Do not Call option. In the address field, for NRIs, one address provided must be that of the foreign address. Mandatory for Individual Borrowal Accounts All the individual borrowers need to provide the information required in this section. The GRID ID needs to be mentioned for all Nucleus application customers. Declaration by the Customer All customers should sign the declaration for having provided the correct data. Under section 9 For Office Use only (Branch use) this information should be completed based on the personal interaction with the customer. Under section 10 For Back Office use only COPS / CAPU will complete this section. Discrepancy Handling: The discrepancies if any, will be hosted on Intranet for the branches to take rectification steps and resubmit to RDIO within 7 days. In case, branches do not attend to such discrepancies in CRFs within 7 days, RDIO will not effect the changes. Branches have to submit a fresh CRF. 3.) Loans and Advances Business Banking is the core activity of any bank. Here, at ING the Business Banking was further bifurcated in two divisions 1.) BLT and 2.) Emerging Corporate. The bifurcation was on the basis of amount of loan granted to the borrowers. The BLT division had a sanction limit from 20 lacs to 2 Cr. And above 2 Cr. Sanction, it was Emerging Corporate. My learning was constrained to BLT. SOD - BLT (Secured Over-draft Bank Loan and Trade) provides necessary Working Capital and Term loans / Composite loans to the Small and Medium Enterprises engaged in Trading, Small Businesses and Service activities with simplified procedures / processes / appraisal and at concessional pricing. This product does not cover manufacturing activities including SSI units. The maximum exposure under this product is capped at INR 200 lakhs per borrower. The key factors considered for the credit decision under this product will be a. Track Record Promoter should have background experience of at least 3 years to consider the exposure. However, splitting of
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accounts among family members or starting of new units in same line of business to avail loans under the scheme is not permissible. b. Acceptable level of trade activity and its consistency, c. Market reputation of the borrower, d. Borrowers stake in the business, e. Banking transactions in the past, f. Adequate securities for the proposed exposure The main objective of the product is to enable the Bank to build a qualitative asset book and provide the customer finance with attractive rate of interest and timely finance with minimum difficulty.

Acceptable age group The age of the individuals / proprietors / partners / directors should not be below 21 years and above 65 years. In case of partnerships / companies, the loan can be considered if any one of the main partners / directors is above 21 years or below 65 years. Due Diligence 1. The due diligence of the new clients should be conducted to establish the genuineness of customers background, business, identity etc. by collecting a. CIBIL report on the proprietor, partner, director, b. PAN copy of partner / firm / company c. ITR of firm / company d. Service tax registration certificate of firm / company if applicable e. Sales tax / VAT registration certificate
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f. VAT return copies / assessment orders g. KYC of the third party where third party property is mortgaged Purpose of the Loan 1. The purpose of the loan should be strictly for business purposes for working capital or acquiring assets and not to be utilized for unproductive / speculative purposes. 2. The facilities are to be directly made available to the business unit and not to the proprietor / partners / directors for the purpose of investing elsewhere. 3. As such, facilities sanctioned should be reflected in the Balance Sheet of the borrowing entity. 4. Under no circumstances, personal loans of any kind should be considered under this scheme. 5. While following BLT norms scrupulously, the normal credit prudence has to be exercised while considering the limits besides ensuring that the capital in the business and the limits approved are utilized for approved business purpose only. Limits are to be considered in tune with the relative level of activity and transactions and not on the basis of collaterals.

NATURE OF FACILITIES Fund Based Limits

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1. Term Loans 2. Composite Loans covering both Working Capital as well as Term Loan. Existing Overdraft Accounts may also be considered for conversion as Term Loans 3. Cheque purchase / Bill purchase limits Non Fund Limits 1. Bank Guarantees favoring Govt. / Quasi Govt. bodies, Public Sector Undertakings / reputed Public Limited Companies who supply goods to our borrowers 2. Performance as well as Financial Guarantees are permitted. 3. Guarantees are to be issued in approved BG formats only. 4. Maximum period of BG is 2 years including the claim period. 5. Inland Letter of Credit (DA-90 days / DP) facility can be sanctioned within the overall limit, subject to 20% margin. 6. Solvency Certificates to the Contractors who have availed credit facilities under BLT to the extent of 100% net worth as per the latest financial statements can be issued by following the extant guidelines. Issuing such certificates, however does not add to the credit exposure. QUANTUM OF LOAN For Secured Overdrafts, the exposure should be lower of the following [except for Gold & Jewellery traders]: 1. 20% of Gross Projected Sales other than Commission Agents [or] 2. 3 times of the promoters Net Owned Funds in the business. 3. For computation of Net Owned Funds (NOF), eligible Quasi Capital component deployed in the business on a long term basis can be included.

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4. NOF = TNW + Subordinated debt [USL of promoters] Non-business related investments, loans & advances and miscellaneous items 5. Out of promoters Net owned funds, at least 35% should be by way of TNW. Direct enquiries should also be made with the suppliers of the equipments / machineries / materials regarding the costs of various inputs, to ensure their correctness. (2) Other Issues: 1. Borrower should deal exclusively with our Bank, as their SOLE BANKERS, and route their transactions through us. However, in exceptional cases, sanctioning authority may permit to maintain current accounts with other Banks. 3. Borrower should have necessary licenses on hand to run the business. 4. Stocks and Book Debts to be hypothecated to the Bank. 5. Insurance of the properties offered as security. 6. Stocks to be insured 7. Branch should get the securities valued from the Banks approved valuer and also obtain legal opinion and ascertain their genuineness. Branches should satisfy about their marketability. 8. In case of take over accounts branch should ensure that the account has no overdues and the operations in the account are satisfactory and is a standard account. Branch should obtain P&C opinion from the existing banker before releasing the limits. In case where The Bank are not able to obtain P&C opinion, the sanctioning authority could waive the same. 9. Interest on the limits to be collected on monthly basis and in case of Term Loans recovery through EMIs.

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11. AODs to be obtained once in 2 years (first AOD to be within 2 years from the date of disbursal). 12. Compulsory registration of partnership firm is waived for loans sanctioned upto INR 25 lakhs backed by collateral securities of not less than 125%, subject to other sanction conditions being complied with.

(4) Other papers required from the customers: 1. Copy of the latest Partnership Deed / Memorandum of Asso. and Articles of Association. 2. Smaller Units to submit their financial statements / projections duly signed by the promoters 3. Certified copies Accounts and Projected Financials in respect of business units 4. Form No.479/480 Assets and Liabilities statements of the Promoters and Guarantors. 5. Form No.311 for the Properties offered as security. 6. Other Banks sanction copies in case of take over accounts. 7. Latest Available Income Tax / Sales Tax Returns of the unit and promoters wherever applicable. SECURITY Primary: Hypothecation of the Stocks / Book Debts / Assets financed Collateral: Equitable Mortgage 1. Equitable Mortgage of the Immovable Landed Properties, (other than Agricultural Properties), situated in Metro / Urban / Semi Urban areas, in such a way that 125% of the limit sanctioned is covered.

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Realizable [highly liquid] securities 1. If easily realizable [highly liquid] securities like Deposits of our bank, NSCs which have come out of the lock-in-period (Paid up Value + Accrued Interest only should be considered), Life Insurance Policies (Surrender Value) and Government Securities are offered as collateral, then the collateral cover could be 100% of the credit exposure. These securities are to be charged to the bank as per the prescribed documentation procedures. GUARANTORS/GUARANTEES: 1. Personal Guarantee of all the promoters viz., Partners / Directors / Members, etc. 2. Personal Guarantee of all the Property Owners taken as security as per norms of the Bank. The clients have to exclusively bank with us. However, permitted to maintain account with other banks for the reasons such as suppliers need, IVBL not having branch at some centers, term loans have been availed and PDCs must have been issued, credit card sales, traders with huge cash receipts (especially small denomination currency) may be strain on the Branch etc. In view of the above, sanctioning authority may permit to maintain current accounts with other Banks. Application Cum Process Note and Score Card are to be used as per the prescribed formats designed exclusively for this product. While the same can be used for the limits up to INR 200 lakhs, for proposals above INR 100 lakhs, the Financial Spreads i.e. Basic data and Common size / Summary, Financial ratios have to be filled, analysed and enclosed to the regular BLT appraisal note in place of financial performance in the enclosed Appraisal Note.

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In case of takeover of existing facilities from other bank, the repayment track record has to be verified by collecting the statement of account for a minimum period of six months.

12. SWOT ANALYSISi


SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. The SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation. The SWOT analysis classifies the internal aspects of the company as strengths or the weaknesses and the external situational factors as opportunities or threats.

Strengths can serve as a foundation for building a competitive advantage, and the weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its The weaknesses, capitalize on golden opportunities, and deter potentially devastating threats. SWOT helps a company to set itself for better and for worse. SWOTs are a means by which a company can better understand what it does very well and where its shortcomings are.

STRENGTHS 1. Instant Pre-generated Kit (includes Debit card, cheque book and Net Banking PIN) 2. ATM pin number security 3. Co- operative Staff 4. Personalized Services / Door step facilities 5. Cash access services till 5:30pm
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6. Locker facility 7. ING Life Foundation (Social Responsibility) 8. ING Life Insurance 9. Experienced Management Team 10.On-spot solution for any grievances of employees

WEAKNESS 1. Branch is in residential area and hence not-so-easy access to corporate; whereas the same is turned into an opportunity by providing the door step services to the corporate like check pick up/cash pick up and dedicated relationship managers. 2. More trained sales executives 3. Less promotional Activities/Advertising

OPPORTUNITIES 1. Grow our consumer base 2. Offer home loans and other consumer asset products to make it a complete product offering. 3. Acquisition of accounts of existing employees of our competitors (same as point 1) 4. To come up with any USP product. 5. Designating (Teller counter, Customer Care .)

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6. The weekend Training in terms of analysis (causes of unclosed calls) and future plans. 7. Survey 8. to leverage wide network of branches, that are increasingly sales and service oriented

THREAT 1. High level of competition 2. A competitor has a new innovative product or service

BIBLIOGRAPHY:-

Websites:

www.wikipedia.com www.ingvysyabank.com

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Special Thanks to :
Mr. Supreet Grewal (Branch Head) (ING Vysya Bank Ltd.) Mr. Pradeep Kimmatkar (Wealth & Relation Mgr) (ING Vysya Bank Ltd.)