Consumer Finance: Ing Vysya Bank LTD

CONSUMER FINANCE [ING VYSYA BANK LTD]
TABLE OF CONTENTS
PART- A
SL NO CONTENTS PAGE NO
1. EXECUTIVE SUMMARY 2
2. INDUSTRY PROFILE 3-8
3. COMPANY PROFILE
a) Background and inception of the company 9-12
b) Nature of the business carried. 13
c) Vision, Mission, and Quality policy. 14
d) Product/service profile 15-16
e) Area of operation-Global 16-17
f) Ownership pattern 17-18
g) Competitors information
18
h) Infrastructure facilities
19
i) Achievements / awards if any
19-20
j) Future growth and prospectus
21
4. Mc Kinsey’s 7S Model 22-26
5. SWOT Analysis 27-28
6. Learning Experience 29
PART – B
1. a) General Introduction
 Statement of the problem 30
 Objectives of the study 30
 Scope of the Study 31
 Methodology 32
 Limitation of the study 33
2. Data Analysis 34-49
3. Findings, Conclusions, suggestions and Recommendations 50-52
4. Annexure 53-54
5. Bibliography and Wibliography 55
Executive Summary:
1 CITY ENGINEERING COLLEGE
Consumer Finance has become so much important for every business undertaking that all
managerial activities are connected with it. Consumer Finance viability of various positions
influences decisions on them. Consumer Financial management refers to that part of the
management activity. Which is concerned with the planning and controlling of firm’s consumer
financial resources? It deals with lending and collection of funds for the company. The source
must be suitable and economical for the needs of the business.
This study is mainly focused on Consumer Finance, at over ING VYSYA Bank, Bangalore.
This study is mainly dividing into two parts Part-A part-B.
Part-A contains details about the ING VYSYA Bank in the world and in India, ING VYSYA
Bank profile, Industry Profile of Banking sector, 7S adopted by the company, financial analysis,
competitors of the ING VYSYA Bank, and SWOT analysis.
Part-B It deals with the study of Consumer finance analysis using the comparative financial
statement at ING VYSYA Bank, Bangalore.
Financial system may be defined as set of institutions, instruments and markets, which foster
savings and channels them to their most efficient use. The primary function of the financial
market is to facilitate the transfer of funds from surplus sector to deficit sector i.e. from lenders
to borrowers.
The required data for the study is collected from primary sources as well as the secondary
sources of interaction. The primary data have been elicited through structured and unstructured
interview with the manager and staff (consumer assets dept). The secondary data has been
collected from the published annual reports of the company, the department files and the
brochures.
The consumer financial decision making plays a vital role in an organization. The financial
position and performance of ING VYSYA Bank satisfies most of the requirements of
profitability of the company. The profits are in increasing trend, when compared to the past
record. The consumer finance performance of ING VYSYA Bank is consistently growing over
the period of years .

PART-A
INDUSTRY PROFILE
History of Banking in India:
Banking in India has its origin from the Vedic. It is believed that the transit in from money
lending to banking must have accrued even before “Menu” the great Hindus Jurist who has
devoted a section of his work to deposits and advances and laid down rules relating to rates of
interest.
In the present scenario, service sector plays an important role in the country. Among service
sector banking is one which plays a vital role in economic development. The liberalization and
economic references allowed banks to explore new business opportunity rather than generating
revenues from borrowing and lending.
The banking industry was regulated by “The Indian banking Regulation Act” of 1949,It defines a
Banking Industry as “Any industry which transits banking business in India”. Banking means
“Accepting for purpose of lending all investment of deposits of money from the public repayable
on demand or otherwise and withdrawal by cheque or demand draft”.
During the mogul period, the indigenous bankers played a very important role in lending money
and financing foreign and commerce. During the days of the East India Company, it was the
turn of the agency houses to carry on the banking business. The general Bank of India was the
first joint stock Bank to be established in the year 1786. The others, which followed were the
bank of Hindustan and the Bengal Bank.
According to Sir John Paget, “No person on body corporate or otherwise can be a banker who
does not take the following:
 Deposit accounts
 Current accounts
 Issue and pay cheques
 Collect cheques, crossed and non-crossed, for his customers.

In the first half of the 19th century the East India Company established three banks; the Bank of
Bengal in 1809, the Bank of Bombay in 1846 and the Bank of Madras in 1843. These 3 banks
also known as presidency Banks were independent units and functioned well. These 3 banks
were amalgamated in 1920 and new bank, he imperial Bank of India was established on 27 th
January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the
imperial bank of India was taken over by the newly constituted State Bank of India.
The Reserve Bank, which is the central, was created in 1935 by passing Reserve Bank of India
Act 1934. In the wake of the Swedish movement, number of banks with Indian Management
were established in the country namely, Punjab National Bank Limited, Canara Bank Ltd.,
Indian bank Ltd. On July 19th 1969, 14 Major banks of the country were nationalized and in 15th
April 1980, 6 more commercial private sector banks were also taken over by the government.
Today the commercial banking system in India may be distinguished into
1. Public Sector Bank:
 State Bank of India and it’s associate banks called the state bank group
 20 Nationalized Banks
 Regional Rural Banks mainly sponsored by public sector banks
2. Private Sector Banks:
 Old Generation private banks

 New Generation private bank
 Foreign Banks in India
 Scheduled co-operative Banks
 Non-scheduled Banks
3. Development Banks:
 Industrial Finance Corporation of India (IFCI)

 Industrial development bank of India (IDBI)
 Industrial credit & Investment Corporation of India (ICICI)
 Industrial Investment Bank of India (IIBI)

 Small Industrial development Bank of India (SIDBI)

 SCICI Ltd
 National Bank for Agriculture and Rural Development (NABARD)
 Export Import Bank of India
 National Housing Bank
4. Co-operative Banking:
India is a country where agriculture is still a predominant activity. Our farmers by and large are
poor and usually used to depend on money lenders Indigenous bankers and financiers etc. Till
1951-52 the money lenders were providing 70% of the requirements of farmers and thus
constituted the most important source of rural finance. However the share of Moneylenders in
rural credit was reduced to 49%. This was due to high rates of interest, dishonesty and
fraudulent practices followed by the money lenders.
The cooperative Movement was started in India in 1904 with the objective of providing finance
to agriculturists for productive purpose at low rates of interest and thereby relieving agriculturists
from the chetches of the Money lenders. The co-operative society Act of 1912 contributed to the
establishment of central co-operative banks and the state co-operative banks to provide refinance
to primary credit societies which could not mobilize funds by their own efforts.
The co-operative credit movement made food progress during and after the 1 st world of 1914-18,
but during the great depression of 1929-1933, it received a serious setback. With the outbreak of
Second World War of 1939-45, the co-operative credit movement made considerable progress
once again. Since then, the progress has been maintained.
A co-operative bank promotes economic activity and provides banking facilities and service to
the rural people. The significant role of co-operative banks in the agricultural economy imparts a
lesson to commercial banks and dispels from their minds the age old inertia and the gloom of
conservatism by shifting emphasis from credit worthiness of the purpose and from tangible
security to the character of the business.
Co-operative means “ a form of organization where in persons voluntarily associate together as

human beings on the basis of equality for the promotion of the economic interest of themselves”.

So, co-operatives are characterized by voluntary association and open membership, democratic
management, limited interest on capital, education and training equity of distribution of profits
etc. “Each for all and all for each” is the underlying principle of co-operatives. There are 2
models for co-operatives they are
 Raiffeisen Model societies

 Schulze Delitzsch model societies
Raiffeisen societies are a type of rural co-operative societies.The main principles of these
societies are:
 Restricted membership to rural masses

 Limited area of operation
 No share capital
 Unlimited liability of the members
 The management of the society is honorary
Schulze Delitzsch societies are a form of urban credit societies. The main principles of these are
 Membership is open to artisans, middle class people

 Living in towns and cities
 Large area of operation
 Limited liability of members
 Large share capital
So, co-operative came as an answer to the problem of rural indebtedness which was rampant
through act the country during the later decades of 19 th century. It was an official remedy to be
introduced on a voluntary basis, with the principles of self-help, thrift and mutual co-operation.
This was supposed to be the beginning of genuine Indian co-operative movement. So the
objective of co-operative movement is actively implementing socio economic program with the
ultimate aim of uplifting the living standard of economically backward and weaker section of
society.

In 1919 the government of India Act 1919 was passed and co-operation became a state subject.
So, several states passed their own acts for the development of the co-operative movement in
their respective states. Through the co-operative movement in India was born at the beginning of
century as an instrument of dealing with agricultural indebtness, it was only after attaining
independence that attaining independence that attention was paid in a big way to this issue.
After independence the co-operative movement received added support from Government.
So to sum up, the co-operative movement has made remarkable progress in terms of number,
membership share capital and working capital. The progress of co-operative movement has been
remarkable in the fields of agricultural credit, marketing and supply of farm inputs and
processing.
The Indian co-operative banking system is a 3-tier system. If consists of three sectors.
1. Primary credit societies at the base

2. Central co-operative Societies in the middle
3. State co-operative Banks or Apex Banks at the top.
Primary Credit Societies
It is an association of ten or more persons residing in a particular locality. The funds at primary
credit societies consist of entrance fees, share capital, Reserve fund, Fixed Deposits from
members and non-members and loans from central co-operative banks. The primary credit
societies extend short and long term loans to the members. Generally, loans are given for a
period of 6 months, one year and 2 years. Loans are ordinarily given, on personal security of
borrowers supported by personal security of borrowers supported by personal.
Central Co-operative Banks
The primary credit societies failed to mobilize enough deposits from their members for meeting
their requirements. They were in need for refinance from some agency. So the co-operatives
societies Act of 1912, provided for the establishment of the central co-operative Bank to provide
finance to primary credit societies.
Central co-operative banks are federation of primary credit societies operating in a specific area.
Generally they are located in the district head quarters and some prominent towns of the district.

The funds of central co-operative Banks consist of share capital, reserve funds, deposits from
members and non-members and loans and advanced form state co-operative Banks. Sometimes
they raise loans from commercial banks also.
State Co-operative Banks
Every state has a state co-operative Bank at the top of the co-operative banking structure. If is
known as Apex Bank as it controls and co-ordinates the working of all co-operative credit
institutions in the state. If is found in the state capital. The table 1.1 shows the co-operative
credit structure in the whole state of Karnataka.
The funds of the state co-operative Banks consists of share capital, reserve funds, deposits from
members and general public and loans from RBI, state Government and commercial Banks.
However loans and advances from the RBI constitute a major part of their funds.

COMPANY PROFILE
2.1 ING VYSYA BANK IN INDIA
In India, ING is present in all three fields of banking, insurance and asset management in the
form of ING, ING Vysya Life Insurance and ING Investment Management respectively. The
presence in all three fields signifies the importance that the group attaches to the Indian markets
and the group's operations here, as well as its bullish future outlook on the country.
ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of
ING Investment Management is situated at Mumbai. The synergies arising out of the three
distinct but complimentary businesses are bound to be an asset to the group in the changing
market dynamics of the future. The first such signs are already visible on the horizon with
combined products being successfully launched by the different entities of the group in
conjunction with each other.
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.”.
Profile
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialisation
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. arrangements of nonwage 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 client’s 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 2008, ING's total
assets exceeded 1332 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.
ING VYSYA BANK

ING Vysya Bank Ltd., is an entity formed with the coming together 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 together to found 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 the coveted 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 celebrated during 2005.

The long journey of seventy-five years has had several milestones…

1930 Set up in Bangalore
1948 Scheduled Bank
1985 Largest Private Sector Bank
1987 The Vysya Bank Leasing Ltd. 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 - June 1998)
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.
2002 The Bank launched a range of products & services like the Vys Vyapar Plus, the range of
loan schemes for traders, ATM services, Smartserv, personal assistant service, Save &
Secure, an account that provides accident hospitalization and insurance cover, Sambandh,
the International Debit Card and the mi-b@nk net banking service.
2002 ING takes over the Management of the Bank from October 7th , 2002
2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of
10.12.02
2003 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 Bank has networked all the branches to facilitate ‘AAA’ transactions i.e. Anywhere,
Anytime & Anyhow Banking

In terms of pure numbers, the performance over the decades can better be appreciated from the
following table:
Year Net worth Deposits Advances : Profit Outlets
Rs. in millions
Year Net worth Deposits Advances Profits Outlets
1940 0.001 0.400 0.400 0.00 14
1950 1.40 5.30 3.80 0.09 16
1960 1.60 20.10 13.50 0.13 19
1970 3.00 91.50 62.80 0.74 39
1980 11.50 1414.30 813.70 1.13 228
1990 162.10 8509.40 4584.80 50.35 319
2000 5900.00 74240.00 39380.00 443.10 481
2001 6527.00 81411.10 43163.10 371.90 484
2002 6863.24 80680.00 44180.00 687.50 483
2003 7067.90 91870.00 56120.00 863.50 456
2004 7473.20 104780.00 69367.30 590.01 523
2005 7094.00 125693.10 90805.90 (381.80) 536
2006 10196.70 133352.50 102315.20 90.6 562
2007 11101.90 154185.70 119761.70 889.0 626
2008 14260.00 204980.00 146500.00 1569.00 677
2009 15940.00 248900.00 167510.00 1888.00 857*
* Outlets comprises of 441 branches, 37 ECs, 28 Satellite Offices and 351 ATMs as of March
31st 2009. Additionally bank also has Internet Banking, mi-b@nk and Customer Service Line for
Phone Banking Service.
2.2 NATURE OF THE BUSINESS CARRIED:

ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING
Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank
with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid

sized asset management company with a retail investor focus. ING Vysya is globally service
provider in banking and insurance sector.
ING Vysya Bank
ING Vysya Bank Ltd., is an entity formed with the coming together 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 in the year 1930.
The last year (2005) was the 75th anniversary or Platinum Jubilee year.
ING Vysya Mutual Funds
ING Vysya Mutual Funds brings with it the vast international experience and professional
expertise of the ING Group. With presence in eight cities across the country, and over Rs.1600
crores of Asset Under Management, ING Vysya Mutual Fund aims to provide investors with the
most practical and secure investment opportunities to invest their valuable savings. This is
combined with a range of innovative options to deliver healthy returns combined with a high
degree of security. Currently, the fund offers four equity, five debt and two hybrid schemes to its
investors.
ING VYSYA life insurance:-
IVL.co private limited entered pvt life insurance industry in India in sep 2001, & in a short span
of 3 & a half years has established itself a distinctive life insurance brand wuth an innovative ,
attractive and customer friendly product portfolio and a professional advisor force. It also
distributes products in close co-operation with the ivb network. Currently it has over 10000
advisors in 30 cities across the country and over 1000 employees.The co has 150000 customers
as on date and achived an income of rs.150 crore in the year ending 31 st dec 2004.Ivl insurance is
a joint venture b/w Ing insurance international, bv a part of Ing group, the world’s second largest
life insurance co.(fortune global 500,2004), Ing vysya bank, with 2million customers and over
400 outlets and GMR industries limited , part of GMR group also based in b’lore and involved in
the field of power generation infrastructure development & several other business.
2.3 VISION & MISSION.

Mission of Ing Vysya :
To build a sustainable competitive advantage by fully integrating compliance risk management
in daily business activities & strategic planning.

Vision of Ing Vysya bank:

To make compliance systems a more effective part in the business.
ING Vysya bank products

 Credit product & structured finance.
 Offshore borrowings.
 Investment banking, local debt syndication & securatization.
 Trade finance & commodities.
 Cash management services.
 Schedule of service charges on trade finance products & services.
 Schedule of service charges on business banking accounts.
Functions of ING Vysya bank

 Business compliance.
 Regulatory guidelines dissemination & advisory.
 Financial economic crime (FEC) & sanctions desk.
 policy framework & MIS.
 Training & communication.
2.4 PRODUCT SERVICE PROFILE:

 Products & services
 Personal banking
 Savings a/c

 Current a/c
 Term deposits
 Demat a/c
 Personal,home,home equity,nri loans
 Pvt banking
 Wealth mngmt
 Life insurance
 Mutual funds
 Govt of india & tax savings bonds
 NRI services
 Credit & debit card
 Internet banking
 Phone banking
 Mobile banking
 Self banking
 ATM kiosks
 Payment services
 Business banking
 Sme-loans,mpower b’ness a/c
 Agri –term & short term loan
 Wholesale banking: – cash mgmt services, corporate & investment banking credit products
& structured finance, offshore borrowings, trade & commodity finance.
 Special services:- along with the portfolio mgmnt & advisory services we also bring to
clients our banking services which include remittances, deposits, loan against
deposits/mutual funds etc
 Loan products
 Od facility
 Vysdp(depository services)

 Smart serve
 Internet banking
 Phone banking
 Bill payments.
 Debit & credit cards
2.5 AREA OF OPERATION:

Global, National & Regional
Global:-
ING VYSYA Bank operating in:
 US,
 CANADA
 AUSTRALIA
 AUSTRIA
 FRANCE
 GERMANY
 SPAIN
 ITALY
 UK
ING VYSYA Bank in retail active in china, india, netherland & also active in central eastern
europe.
ING VYSYA Bank in retail 2 bank in the netherlands & 4th in belgium.
ING VYSYA Bank commercial banking has an international network in 40 countries with key
positions in structured finance & financial markets.
National:-
CONSUMER FINANCE it is operating in 13 locations
 Bangalore
 Delhi
 Hyderabad
 Mumbai
 Pune
 Chandigadh
 Jaipur
 Vizag
 Chennai
 Kolkata
 Nagpur
 Ludhiana
Regional:-
Ing vysya bank has a total of 677 branches of which there were 407 branches ,39 extensions
counters, 28 satellite offices & 203 atms
2.6 OWNERSHIP PATTERN

Ownership pattern
 In 1996 the bank signed strategic alliance with bank Brussels Lambert, Belgium for equity
participation.
 In 2001 the Ifc Washington also joins hands to strengthen the bank ,later BBL Belgium
merges with ing.
 In sep 2002 ing increased it's stake to 44%.
 In oct 2002 ing takes over the management.
 In dec 2002 the bank is remained as ing vysya bank. ing & other foregin institutions is
having 49% of shares & indian investors is having 51% of share.
Board of directors as on 20-12-2010

ARUN THAYGARAJAN PART TIME CHAIRMAN

SHAILENDRA BHANDARI MD & CEO
ADITYA KRISHNA Director
PHILLIPE DAMAS Director
RICHARD COX Director
SANTOSH RAMESH DESAI Director
M.DAMODARAN Director
VAUGHN NIGEL RICHTOR Director
PETER HENRI MARIA STAAL Director
LARS KAMER Director
VIKRAM TALWAR Director
2.7 COMPETITORS FOR ING VYSYA BANK

 Axis bank.
 HDFC bank.
 ICICI bank.
 Kotak Mahindra bank.
 IDBI bank.
 Standard chartered.
 LIC housing.
 SBI.
 Duestche bank.
 Punjab national bank.
2.8 INFRASTRUCTURE
ING VYSYA Bank head office is situated in bangalore.

ING house contains the board room, offices for senior mgmt and a number of corporate dept's.
the building was desgined to reflectthe image of ING VYSYA innovative and transparent ,
dynamic and sustainable . the open planand glass walls help facilitate communication across
dept's& complement dedication to transparency.
The ING VYSYA house has a auditorium, a foyer, restaurant, library , conference rooms &
parking spaces.
The total office space is reserved for "flexible"work stations, which give employees the chance
to change their working environment.
2.9 ACHEIVEMENTS
ING becomes 13th largest company in the world compared with last year, ING Group has risen
four places in the Global 500 list of the world’s largest companies. The list is published by
Fortune, the US business journal. At number 13 in the ranking, ING Group is the largest
financial institution on the list, followed by Citigroup and AXA & in terms of revenues and net
profit; ING is now the biggest of the 21 insurers on the list. Over the last 150 years ING group
has grown to become one of the largest life insurance organisations in the world. Today it
touches the lives of over 50 million people across 65 countries.
 ING Group is the worlds largest LIC in profits (U S 4.50 billion.
 4th largest financial group in the world.
 Ranked 9th overall among world top 2000 companies (Forbes 2005).
 Operating in 5 continents across 50 countries.
 It has 60 million customers.
 ING Vysya employees raise 35 lakhs to send 2,500 child workers back to school.
 World’s largest financial group in revenues (fortune 500 2006) having presence in over 50
countries & with over 1, 15,000 employees.
 Worlds 1st integrated financial service provider offering banking insurance & asset
management.
 Total assets of Euro 1,158 billion as on dec.2005.
 Ranked no.1 retail fund manager in Asia (Asia asset mgmt dec,2005)
 2007 it has been recognized for our public relations by the public relations council of India

in its global meet on corporate communication march 2007.

 2010 ING VYSYA Bank wins the C10 100 awards 2010 for its unique mobile voice
recording solution.
AWARDS:-
 1996 GEM & JEWELLERY EXPORT PROMOTION COUNCIL CONFERRED AWARD
FOR BEST EXPORT PROMOTION.
 1998 Won golden peacock award from institute of directors for best HR practices.
 1998 International magazine ‘GLOBAL FINANCE’ rated the bank best DOMESTIC
BANK.
 2007 Achiever award for contributions & consistent public relations council of INDIA.

FUTURE GROWTH OF ING VYSYA BANK
The ING VYSYA Bank has a great opportunity to drive business growth .the combination of
innovative & ING VYSYA'S reputation for efficient service delivery & customer care puts it in a
stronger position to maximize opportunities & to expand its operations. With a economy of the
country growing at nearly 8% these high growth potential for the bank.
The bank is planning to enable ‘Money Click’ as a payment gateway for shopping that conserves
at areas of business like hotel booking, ticket booking, purchase of goods etc.
 ING VYSYA angel broking ink pact for investment services.
 ING VYSYA Bank plans to hike base rate in Jan-march says CEO
 Angel broking head. Liquidity in share market not a concern right now.
 Angel broking head: sensex may top 21000 if liquidity increases.
 ING VYSYA Bank CEO aims for FY11 loan growth better vs. industry.

3. MCKINSEY’S 7-S MODEL

3.1 INTRODUCTION:-
The 7-S model is better known as Mckinsey 7-S.This is because the two persons, who developed
this model Tom Peters and Robert Waterman, have been consultants at Mckinsey and
company at that time. They published their 7-S model in their article “structure is not
organization” in 1980 and in their books “The art of Japanese management in 1981 and in search
of excellence in 1982”
Managers, they said, need to take account of all seven of the factors to be sure of successful
implementation of a strategy- large or small, like a lot of this models there is a good dose of
commonsense in year, but the 7-S framework is useful way of checking that you have covered all
the bases.
Mckinsey & Co’s 7-S Framework provides a useful framework for analyzing the strategic
attributes of an organization. The Mckinsey consulting firm identified strategy as only one of the
seven elements exhibited by the best-managed companies.
Strategy, Structure and Systems can be considered as the “Hardware” of success while Style,
Staff, Skills and Shared Values can be considered as the “Software”.
3.2 MCKINSEY’S 7-S FRAMEWORK

STRUCUTRE:
The Structure of the organization represents the hierarchy of the organization. It represents the
reporting system of the organization. Thus, organization structure is the pattern of relationships
among various activities and positions. From the structure or organ gram of the organization we
can have clear picture of the responsibility of the personnel working in the organization. It refers
to the differentiation and integration of activities and authority, role and relationships in the
organization. Hence organization structure is the basic framework within which the manager’s
decision-making behavior takes place.
In ING VYSYA Banking structure of the organization represents the vertical hierarchy of the
organization.
Structure of the organization is basically functional where common or homogenous activities are
grouped together. This type of structure is very effective for big organization like ING Vysya.
This ensure specialization, easier control over functions, easier way for pinpointing needs of the
managers and maintaining the relative importance of functions in the organization.
SYSTEM:
A system means all the procedures, formal and informal, that make the organization go day-by-
day, year-by-year.
The organizations is an open system organization because they interact with environment
Computerization System
The developments in Information System are working wonders in all fields of activity. It
becomes possible to send and receive information almost instantaneously. If circular do not reach
the agents on time or doubts are not cleared quickly, or the agent does not have details of new
plans announced in the press, the agents may face awkward situations with the prospects. These
problems can be totally avoided with the use of IT. Insurers traditionally, have been quick to
adapt latest advances in technology. This is happening in the area of IT as well. The extent of IT
application will vary between insurers.
Rapid strides have been made by ING Vysya Bank in the field of computerization Mini-
Computers, Online Computerization of product dispatch and finance and give product details to
customers.

STRATEGY:
Strategy sets out vision, mission, objectives, major action plans and policies of the entire
enterprises. These set out the picture of the strategy, the SBU strategy and the functional
strategies. This sets out a broad frame work to guide managers at all levels in all functions in
their specific short term objectives.
ING VYSYA’S Mission is “To set the standard in helping our customers manage their
financial future”. To achieve this we aim to be the top new life insurance company in the
market. This does not just mean being the largest or the most productive company in market,
rather it is combination of several things like-
 Customer service of the highest order
 Value for money for customers
 Professionalism in carrying out business
 Innovative products to cater to different needs of different customers
 Use of technology to improve service standards
 Increasing market share.
STYLE:
One element of mangers is how he/she chooses to spend time, another aspect is symbolic
behavior. This suggests a second attribute that is by no means confused to those at top. The style
is a reflection of culture, more then to change the organization or performance.
The ING VYSYA is basically a participating and democratic type of system. Before taking any
decision meeting is conducted and the final decision is taken with the consent of all. Every
employee gets change to five his/her opinion. Every employee can participate in decision making
of the organization. The final decision is taken with consent of all.
The ING VYSYA Bank is a unit has a union body and hence it takes people into confidence. It
does not take any decision unilaterally.
Since every employee’s ideas and opinions are taken by the managers before arriving at a final
decision effective decisions can be taken. Managers are evaluated on the basis of quality of their
decision making. Hence participative and democratic type of a system is the best system for
such a big organization like the ING VYSYA Bank.

SKILL:
The ING VYSYA Bank is having 8 departments, which has personnel with variety of skills
.They should have the ability to take right decisions. They should manage the personnel and
make then carry out their responsibility.
The ING VYSYA Bank unit has personnel with a variety of skill for different fields they have
personnel with different talents, skills and experience.
It is a participative democratic system so every decision is taken after discussion with the
personnel. Hence the personnel have good communication skills.
A corporate communication department also knows as public relation department is also there in
the ING VYSYA Bank. It takes care in building the image of the organization both by external
communication and internal communication and also having development department. It
increasing strength of the employees and arranging programs.
STAFF:
Organization requires the service of a large number of personnel. These personnel occupy the
various positions created through the process of organizing. These personnel comprises of the
staff of the organization.
Each position of the organization makes certain specific contributions to achieve organizational
objectives. Hence the person occupying the position should have sufficient ability to meet its
requirements. Hence staffing is necessary to match jobs and the individuals.
In ING VYSYA, 15 permanent workers are there and more than 100 agents are there who are
working for company. Agency Manager can manage the Unit Manger, Clerical Staff as well as
Insurance agents.
SHARED VALUES:
Security:
Providing long term financial security to our Customers will be our constant endeavor. We will
do this by offering Variety of products.
Trust:
We appreciate the trust placed by our Customers in us. Hence, we will aim to manage their
investments very carefully and live up to this trust.

Innovation:
Recognizing the different needs of our customers, we will be offering a range of innovative
products to meet these needs.
Company mission is “To set the standard in helping our customers manage their financial future”
and these are the values that will guide us in this.
The extra-ordinary growth of the direct marketing is the result of many factors. Market
demagnification has result in an ever increasing number of market Niches. Higher costs of
driving, traffic congestion, parking headaches, lack of time, shortage of information so all have
encouraged home shopping. Also, the consumers appreciate the commitments to the customer
service etc.

SWOT ANALYSIS
STRENTHS:-
 Brand name
 Huge product Portfolio.
 Quality of service and product.
 Quality service from the advisors.
 Skilled workforce.
 Sophisticated software to enable faster and smooth operations.
 Strong marketing and distribution channels.
WEAKNESS:-
 Complicated process to track for the company.
 Customers perceive as just protection benefit rather as a good investment option.
 Being a private player, it is difficult for the company to gain customer’s trusts,
concentration being more on quantity of results.
 Lack of Co-ordination between the various branch offices.

OPPORTUNITIES:-
 Banking is a growing sector, hence creating opportunity for the employee to prosper and
grow as individuals.
 The Company has an opportunity to expand its business.
 Rising life style of people and their increasing income level motivates them to invest
more.
 Growing education and awareness level of the people towards Banking.
 As its growing sector, the customer has an access to the company whenever he needs.
 The changing customers need to create more business opportunity.
THREATS:-
 Entry of branded names in the Banking sector, poses a threat to the existing
companies.
 Direct investment options available to the customers like mutual funds, etc.
 Fraud and Default
 Catastrophe’s occurring, as they give rise to claims.
 Rise in inflation figures which would lead to increase in interest rates.
 Increase in the number of foreign players would pose a threat to the psb as well as the
private players.

LEARNING EXPERIENCE
The training, which I underwent, has provided me a great enhancement to my organization
understanding, it was on great pleasure for me to do my project in ING VYSYA Bank. During
the period it was totally a new experience entering into the organization. I spent most of my time
in visiting various places Branches, various departments, interacting with people, etc.
In the course of month, I had engaged with the product manager of the company for promoting
the business, the product manager who will work for entire company. She is managing all
activities by advising and managing through the staff. This was a positive response from the
entire staff. It was really a fruitful and great experience working in the organization. Employees
from every corner of the department helped me in getting the required information for the
successful completion of this project.
The environment was so friendly and I did not feel uneasy during the whole training period,
which gave me great deal information and knowledge as to how an organization really functions.
The training provide an opportunity to relate classroom learning with the really if management.
My constant interaction with the management managers, supervisors, staffs, etc, has indeed
widened my horizons of knowledge. Ultimately to say the training period in the company was a
wonderful small time in the huge corporate world. Studying Mckinsey’s 7S Model with respect
to ING VYSYA Bank gave me a great exposure to learn about the organization. I learned about
the working of the organization in the period.
From this report finally I studied about the impact of welfare activities provided by the ING
VYSYA Bank among the employees of the organization. The welfare services to the employees.
But at the same time bonus, retirement benefits, incentives etc. provided by the organization is
not enough to motivate the workers in their work. The institutional training is the best approach
to have extra knowledge on the practical approach of management studies. This training helped
us to understand how an organization and its various department functions.

GENERAL INTRODUCTION:
The conception of the research design plan is a critical step in the research process. The design of
the study constitutes the blue print for the collection, measurement and analysis of data. In other
words, the research design is a conceptual structure within which is research is conducted.
Statement of the problem
Public have occupied center stage of our country’s economy policy since independence. As
consequences, any study in the area of financial management of public enterprise becomes
relevant.
Public enterprise in India has been functioning for many years. Many public sectors undertaking
have been become sick and many are performing very well in this globalize market. This
indicates that efficiency in management of public sector undertaking is one of the main factors,
which are critical in their success. Hence this study is made to see how the management of a unit
f a public sector are undertaking is been done. This emphasis of this study will be on financial
management.
Objectives of the study

 To study the growth of ING VYSYA Bank Ltd
 To study the scheme of ING VYSYA Bank Ltd
 To study various types of Loans and Advances in ING VYSYA Bank Ltd
 To analyze the effectiveness of different schemes offered by ING VYSYA Bank Ltd
 To offer finding, suggestions and recommendations

SCOPE OF THE STUDY
The scope of the study is restricted to the financial statements and profit and loss of the Bank. It
is confirmed to the analysis of the financial results.
With respect to change in the economic environment across the globe & also due to paradigm
shift in management education, understanding of business relationship of is very much essential
for building professional managers.
The SUMMER PROJECT, which is strategically framed in the middle of course ,helped me
immensely .It provides an opportunity to expose myself to real bank scenario & gain confidence
with acquiring professional skill.
This study is applicable to entire banking industry as a basis to plan its loan policies its
disbursement & recovery decision.

METHODOLOGY OF STUDY:-
During the course of summer project, the source of information obtained can be classified
broadly into two categories. Primary data and Secondary data.
Research design is purely & simply the framework or plan of a study that guides the collection &
analysis of data. This research design is to be done before conducting a study. Success of any
research study lies in its research designs. There are three types of deign
 Exploratory
 Descriptive
 Casual
This project is undertaken as per descriptive research design, which is also called exploratory
design. The descriptive study is typically concerned with determining frequency with which
something occurs.
Data are facts, figures, & other relevant materials, past & present serving as bases for the
analysis. Inference based on imagination or guesswork cannot provide correct answer to research
requirements. The relevancy, adequacy of data determines the quality of the findings of a study.
For solving any problem the primary requirement is data. Before conducting the study the
sources of data are to be identified. There are two sources of data
 Primary data sources
 Secondary data sources
Primary data :- The primary source of data is mainly comprised of the face to face interaction
& discussion with various executives, officers & other staff members of other banks & also in
the organization.
It is a set of 1st hand information gathered originally for the research work. All the required
information of the various types of loans collected from other banks by personally, & all the
information is presented in the report. Then the additional information is also obtained through
by making calls to the all the banks that means through telecommunication.
Secondary data:- The data was obtained through the staff manuals, scale of finance report ,
newsletters, annual reports of all the banks & also through the various other sources like internet,
advertisements etc..

LIMITATIONS OF THE STUDY:-

 The study was subjected to time constraints.
 Various parameters developed in this study are based on a conceptual understanding of
the relative impact of the parameters on the riskiness.
 The weights assigned to various parameters may change if the external economic
environment undergoes substantial changes.
 The projection figures are estimates based on the past figures and company standard
rates. The study is purely for academic purpose.
 Conclusions are drawn on the basis of limited data available.
 The data collected is more of secondary information.
 The study is conducted mainly on the basis of collection of data provided by the
company.

Consumer Finance
Definition : - The division of retail banks that deals with lending money to consumers. This
includes a wide variety of loans, including credit cards, mortgage loans & auto loans & can also
be used to refer to loans taken out at either the prime rate or the sub prime rate.
In other words: - A financial institution that specializes in providing loans directly to consumers
who are unable to secure bank loans. A consumer finance company generally charges higher
interest rates than a bank.
PRINCIPLES OF SOUND LENDING

As per the Banking Regulation Act 1949, banking means accepting for the purpose of lending or
investment of deposits of money from the ‘public’.
From the above, it is evident the major portion of bank’s funds is employed by way of way of
loans and substantial parts of bank’s earned from interest and discount on the funds so lent.
Hence the banks shall a few cardinal principles of sound lending while appraising an advance
proposal in order to minimize the risks of becoming irrecoverable and bad.
1) SAFETY: When a bank lends the depositor’s money, he must feel certain that the advance is
safe I.e., the money will definitely come back. The repayment of the loan depends upon
borrower’s (a) Capacity to pay (b) Willing to pay (character) (c) Capital. It means that the
barrower should be capable of enterprising either in business or depends on the honesty,
character and integrity of the borrower. He should feel sense of responsibility for
maintenance of the asset and for repayment. Hence bankers insist for barrower’s capacity in
the form of margin.
2) LIDUIDITY: The bulk off bank deposits is repayable on demand or at short notice to the
depositors. If the banker lends a large portion of his funds to barrowers from whom
repayment would be coming lending in but slowly, the ability of the banker to meet the
demands made on him would be seriously affected. Hence care should be taken whole
selecting the barrowers, so that the money is employed by the barrower for short term
requirements and not in the schemes, which take a long time to pay their loans.
For ex: loans against mortgage of building and lands are safe but the recovery has to be
made through a court process which takes a lengthy period and liquidity gets affected.

3) PUREPOSE: Banks should lend to the productive oriented activities only so that it provides
a definite source of repayment to the barrower. Banks are not supposed to lend to the
barrowers who involves in unauthorized hording of and for speculative activities. Banks
discourage extending finance to the anti social elements like smugglers, thieves and
encourage finance to the income generated activities only.
4) NATIONAL OBJECTIVES: Credit facilities extended by the banks should be in

conformity with the national interest and suitability of the needs of people.
Ex: banks are instructed to extend their finance to the agriculture, SSI and to various anti
poverty programs to augment the agriculture production and to meet the social objectives.
5) SECURITY:
Security is considered as insurance or a cushion to fall back upon in case of an emergency.
a) Marketable: The security obtained should be easily and readily marketable. All the
costly securities can’t be considerable as good securities. For ex: pearls or diamonds or
palatial bungalows are not considered as good securities they appeal to only a small
section of society have a limited market.
b) Accessibility: the value of security should be easily accessible. The banker need not
refer to an expert to value a security. For ex: the value of food grains, oil seed etc, Can
easily known, but the value of painting by old masters and highly specialized machines
needs to assistance of experts.
c) Recoverability: the cost of the security should be easily recoverable when it is sold. It
means the sale proceeds of security should come back quickly without much delay.
d) Transferability: The title of security should be easily transferable whenever occasion
demands. Ex: shares can easily transferable to the lands and buildings.
e) Insurable: The security should be insured without any objection from insurance
companies and not at higher premium rates. Ex: stocks of matchboxes and petroleum
products will be at a higher premium rate.
f) Storability: The security should be capable of being stored in a godown so that it can
be safely kept, easily supervised and quality should not get deteriorate, perished or
destroyed. Ex: Iron ores near mines, films which need air conditioned godown and
patent medicines with expiry date are not considered as a good security.

g) Stability: The security should be stable in value without much fluctuation over short
periods. Commodities like pepper and yarn are prone to heavy fluctuation and accepted
as a security only with a higher margin.
h) Transportability: The security should be easily transportable from one place to
another in case of sale as a per the market demand Ex: heavy machinery and Iron
girders are not easily transportable.
i) Ascertainably: the title of the security should be easily ascertainable, undisputed and
clear for ex: while taking the property of a JHF, care should be taken to ascertain all the
claimants of the property.
j) Yield: If a security is a source of some steady income, it is considered desirable as it
affords an automatic source of repayment of loan wholly. For Ex: high marketable blue
chip shares on which substantial dividend is regularly receivable and shops/ godown
which the banks keep a margin.
k) Margin: Margin on securities is also maintained as a cushion against fluctuations in
value of securities. In case of forced sales, the security may not sell for its full value
and hence the banks a margin.
l) Acceptably: The security offered by the barrower should be acceptable to the banker.
The securities, which are hazardous and ruins the communal harmony of the country,
should be avoided Ex: ammunition like pistols, bombes etc.
m) Durability: the security should be reasonably durable for ex: perishable articles/goods
like vegetable, fruits and mutton which are may not be suitable securities unless
otherwise stored in refrigeration.
n) Safety: The security should be free from the risks of theft and fire ex: goods loan on the
stocks of matchboxes is not considered as safe.
6) SPREAD: An element of risk is always present in every advance. Hence the
diversification of funds is essential. Banker should be keen in spreading the risks
involved in lending over a large number of barrowers, over a large number of advances
and over different types of securities. For ex: if bank has advanced, too large a portion of
his funds against only one type of security he will run a big risk if that class of security
steeply depreciates.

PROFITABILITY:
Banking is essentially a business which aims at earning a good profit. Banks must deploy their
funds in such manner, so as to earn profits out of which to pay interest to the depositors and to
meet the establishment charges. But the banks should not sacrifice the other principles of sound
lending for the sake of profitability.
CONSUMER FINANCE DEALS WITH AS FOLLOWS :

 Home loan
 Home equity loan
 Loan against commercial property(CLAP)
 Auto loan
 Personal loan
1. Home Loan:-
Getting home loans to purchase a house at our projects is an absolutely hassle-free endeavor. The
company today has become a trusted entity for all Banking Institutions and Housing Finance
Companies. Since the banks support only genuine ventures with clear titles, getting home loans
to purchase a house at our projects is an absolutely easy job.
Our growing list of satisfied customers, who secured home loans to purchase houses in our
projects, stands proof for this.
We have also associated with some banking institutions for home loans; the executives from the
Banking Institutions will come and assist you in getting a home loan sanctioned within a short
time.
To learn more about home loans, read on:

There are many financial institutions like Banks and Housing Finance companies which offer
home loans to purchase a new home or a flat. But you might be wondering about the following:
What are the eligibility criteria for a Home Loan?

Simple, to qualify for a home loan, most lending institutions in India require you to be:
An Indian resident
Above 21 years of age at the commencement of loan

Below 65 years when the loan matures

Either salaried or self employed
Nationalized banks offer loans to NRIs too.
What are the standard norms for acquiring a home loan?

Securities required: In most cases the property to be purchased becomes the security and is
mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for
additional security such as life insurance policies, FD receipts, share or savings certificates.
Guarantors:
Some institutions ask for 1 or 2 guarantors, others require no guarantors at all.
Applying for loan:

Loans may be applied before or after selection of a property. The loan amounts are sanctioned in
principle to help buyers know what amounts they can avail of. This lets them decide their
budgets and purchasing power. Actual disbursements are made after satisfactory verification of
all necessary documents and completion of specific procedures.
Documents required at the time of application

Latest salary slips (proof of income for salaried individuals)
 Photographs
 Proof of age
 Identity papers
 Proof of residence
 Bank statements for the previous six months
For self employed, certified copies of balance sheet, profit and loss statement and tax challans
for the previous 3 years For partnership/private limited companies, the Articles of Association,
partnership deed and details about the firm loan limit Usually most financial institutions give up
to a maximum of 85% of the cost of the house. The other 15% sometimes called 'seed money'
will have to be provided by the applicant. Various factors like age, income, no. of dependents,
monthly expenses and repayment capacity will be considered for the eligibility of the loan
amount. This varies from case to case.

Rate of Interest:
Interest rates are different from institution to institution and generally range from about 8.5% to
around 16%. The interest on home loans in India is usually calculated either on monthly
diminishing or yearly diminishing balance method. The interest rates have two options - Floating
rate of interest and fixed rate of interest.
Monthly diminishing:
In this system the principal on which you pay interest diminishes every month as you pay your
EMI.
Annual diminishing:
In this system the principal is reduced at the end of the year, thus you continue to pay interest on
a certain portion of the principal which you have actually paid back to the lender. Which means
the EMI for the monthly diminishing system is effectively lesser than the second system of
calculating interest.
Floating rate Interest:
In this option the interest rate varies from time to time depending on prevailing interest rates in
the market.
Fixed rate of Interest:
In this option the interest rate is fixed till the total loan amount is repaid.
Loan amounts vary from institution to institution and usually range from Rs.1 lakh to 1 crore.
Repayment period options range generally from 5 to 15 years.
For loan sanction:
 Salaried Customers Self Employed Professionals
 Self Employed Non Professional
 Application form with photograph duly signed by all applicants
 Identity, residence and age proof
 PAN card copy of the main applicant
 Last 3 months Salary-slips
 Education qualification certificate and proof of business existence
 Form 16 / Income Tax Returns
 Last 3 years Income Tax Returns with computation of Income Business profile

 Last 6 months bank statements

 Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
 Last 3 years Income Tax Returns with computation of Income
 Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
 Processing fee cheque Last 6 months bank statements
 Last 6 months bank statements (self and business)
 Processing fee cheque Processing fee cheque
HOME EQUITY LOAN

A home is more than just a house. It is the sum total of your dreams, aspirations and the love that
binds your family. Sometimes, there are situations that demand finance on a large scale – like
when your children get married, go abroad for higher studies, when you need to provide medical
care to your aged parents, fulfill any business need or any other exigency.
At these times, you decide to leverage your house as equity for raising a loan. We understand
your need to support your family and look towards their well-being.
Eligibility:
Resident Indian citizens can apply in their individual capacity: -
 Salaried employees aged 23 and above on application; and aged 60 or retirement age,
whichever is sooner, at loan maturity
 Self-employed professionals and businessmen above 25 years of age and aged below 65
years, at loan maturity.
 Min. Net Monthly Income: Rs.10,000/= per month
 Min Loan Amount of Rs. 5 Lacs and Max Loan Amount Rs. 200 Lacs in all metros,
Bangalore, Pune and Chandigarh.
 Customers located in all other cities where the bank provides Home Equity Loans can avail
up to Rs. 1 crore.
PROPERTIES AND EXTENT OF FINANCE:
 Allotted by Government.
 Approved by Government (initially developed and sold by Registered
 House Building Cooperative Society or Private Developer of repute).
 Government Bodies include Urban Development Authority /Corporation/ DTPA

 (District Town Planning Authority)
Fees:
upto 1.50% of the loan amount applied for and will be collected
Processing Fee
at the time of application.
Prepayment Charge 2% of amount prepaid.
Foreclosure Charge 2% of the outstanding balance.
Security for the Loan:

 Mortgage of property by deposit of title deeds or as per the
Existing guidelines.
 Guarantor wherever applicable.
Supporting Documents:

Documents required at the time of Application

Application form duly filled in along with the processing fee cheque.
 One passport size photograph of the applicant/co-applicants/guarantor in

Addition to the photograph affixed to the application form and signed across.
 Identification & Signature Proof: - Valid Passport/PAN Card/
Photo Driving License /Photo Credit Card of a Scheduled Commercial Bank/
Photo ID Card of Professional Councils, Government/PSU/Private Ltd., Companies/Banker's
Verification/Photo Ration Card/Photo Election ID Card.
 Proof of Residential Address Passport/Voter's ID Card/Driving License/Ration Card/Telephone Bill / Gas
Bill / Power Bill / Rental Agreement/
Insurance Premium Receipt.

Signature Verification certificate from the Bank on which PDC's will be given.
 Proof of Date of Birth e.g., Birth Certificate/Passport/PAN Card/

Driving License/SSC Marks List/School leaving certificate/Insurance policy schedule.
 Income Documents for Salaried Individuals:
 A brief write-up on the profile of business covering the nature of business
activity, number of years in business, products / services, infrastructure,

number of employees, branch network, if any, suppliers, distribution,
Buyers/clients, performance highlights, future business plans and assets.
 Income Tax Returns for the past 3 years duly certified by a Chartered
Accountant and duly acknowledged by IT authorities.
 Certified copies of Audited Balance Sheets and Profit & Loss account
statements for the previous 3 completed financial years,
Wherever necessary.
 IT Assessment Order for financial years for which assessment has been
Latest completed.
 State Sales Tax /Central Sales Tax Registration No. or any other certificate
for licensing business
 Photocopies of Advance Tax payments.
 SOA (Statements of Account) of the Salary / Business account for the last 6 months from where PDCs
will be issued.
 Any other document that may be required by the bank
 Min.3 months' pay slips starting with the Latest Pay Slip duly authenticated
by the Employer (the above to clearly indicate the breakup of Gross Earnings, Deductions and Net
Salary).

Form No.16 with clear computation of income.
 Bank statement for the last 3 months, which is not older than 28 days from
The date of login. At least 3 Salary credits to be evidenced in the
Bank Statement.
 Bank Account Statements for all applicants for the last 3 months.
6 months in case of self employed businessmen & professionals.
(From where PDCs will be issued).

Credit Card Statements of all applicants for the latest month.

Loan account statements of all other existing loans.

Any other document that may be required by the bank.

CLAP (Loan against commercial property)

CLAP means loan against the commercial property the loan is given against
Factories Petrol pumps
Industrial property Garages
Bars Lottery centre
Restaurants Video parlors
Schools and colleges Beauty parlors
Library
Under construction property
Hospitals
Properties standing in the name of the 3rd party
Properties with more than 5tenants.
Expand your business

No longer do you have to stifle your creative ideas. With funds at your disposal, you can now expand
your business without hesitation.
Consolidate your existing debts
Pay off all your existing loans with a LAP to liberate yourself from the hassle of multiple EMI’s.
Get your child married
Put aside all your monetary worries and celebrate your child’s wedding with pomp and splendour. Meet
all your expenses with ease—when you take an ING VYSYA Bank Loan Against Property.
Send your child for higher studies
Education is the cornerstone of your family’s progress. With a Loan Against Property, you can empower
your son or daughter to grow into an outstanding achiever.
Renovate your home
When you decide to renovate your home, you want to do it in style. With ING VYSYA Bank's Loan
against Property you will not need to cut corners. Effortlessly redo your home to match your dreams.
Duly Completed Application Form
Photograph

Fee Cheque
Photo Identity Proof
Signature Verification Proof
Residence Address Proof
Property documents as required

Document specific for Salaried
Last 3 months Salary Slip
Form 16
Bank Statement for last 6 months from Salary Account
Repayment details on any existing loans / Loan closure letter
Document specific for Self Employed

Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss
Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for
business and personal of partners/directors)

Bank Statement for last 6 month from operating account
Repayment details on existing loans / Loan closure letter
Board Resolution in case of a company
Proof of existence of the business entity
Office Address Proof
Personal loan:-
Features and benefits
 Borrow up to Rs 15,00,000 for any requirement like purchase of Consumer
Durables/marriage/Education/travel/family function/business expansion/home
improvement or purchase of property etc.
 Flexible Repayment options, ranging from 12 to 60 months.
 Choice of Repayment through PDCs, ECS or Standing Instructions.
 Low Interest Rates.
 Hassle free loans - No security/collateral required.
 Speedy loan approval.
 Convenience of service at your doorstep.
Salaried Individuals


Eligibility criteria

 Minimum age of Applicant: 23 years
 Total of 3 year's overall work experience
 Net Salary of Rs 1,80,000 per annum
Documents required

 Latest passport size photograph
 Latest 2 months salary slip
 Appointment letter/s or Form 16 as proof of experience
 Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card)
*ID proof /signature verification to be done by Banker if the none of the above is
available Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving
License etc) Latest 6 months bank statement with Salary Credits

Self employed professionals and Non Professionals
Eligibility criteria

 Minimum age of Applicant: 23 years and 25 years for Non Professionals
 Minimum three years' experience in their current business
 Minimum Gross Annual Income of Rs 1,50,000
Documents required
 Latest passport size photograph
 Latest 2 years ITR with computation of Income, CA certified P& L , Balance Sheet
 Firm’s/Company’s Financials, Board Resloution, Partnership deed, copy of MOA and
AOA wherever applicable
 Proof of Business- ITRs/ License under Shops and Establishment Act/ Sales Tax
Receipt/Import
Export Code from RBI
 Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card)
 *ID proof /signature verification to be done by Banker if the none of the above is
available
 Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving License
etc)
 Latest 6 months bank statement
If you have a Personal Loan from any other Bank/Financier , You can save substantially by
transferring the Loan to us.
Top Up Loans
If you are an existing IVBL Personal Loan customer You can avail additional Loan at
attractive interest rates based on your payment track.
CASA Loyalty Program
If you are an existing Savings Account/Current Account customer you can avail a Personal
Loan from us based on relationship.
AUTO LOANS
Turn your dream into reality. Own that new car you have always desired, with a little help from
us. We offer loans up to 90% of the ex-showroom price of the car. Our interest rates would
pleasantly surprise you. What's more, you can take up to 5 years to repay the loan.
Worried about paperwork? Relax. The process for getting a loan involves only a few simple
steps and we will tailor-make the loan to suit your needs.
Pick your choice.

L Loan on the Strength of Your Income: Submit income proofs as required and avail
finance up o to 90% of the ex-showroom price of the car.
Car Loans with Fixed Interest Rates: ING VYSYA Bank offers new car loans with fixed rate
option only.
Salaried Individuals
Eligibility Criteria:


 Maximum age of Applicant at loan maturity: 58 years
 Minimum employment: 1 year in current employment and minimum 2 years of
employment
 Minimum Annual Income: Rs 100000 net annual income
 Telephone: Must at residence
Documents required:
 Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated,
Recent, Legible)
 Income Proof: - Latest salary slip with form 16.
 Address Proof: - Ration card/Driving license/Voters card/passport copy/telephone bill/
electricity bill/Life insurance policy PAN Card.
 Bank Statement:- Not mandatory
Self Employed

 Maximum age of Applicant at loan maturity: 65 years
 Minimum employment: At least 3 years in business
 Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a.
for mid-sized and premium cars
 Telephone: Must at residence
Documents required:
 Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated,
Recent, Legible)
 Income Proof:- Latest ITR
 Address Proof:- Ration card/Driving license/Voters card/passport copy/telephone bill/
electricity bill/Life insurance policy PAN Card
 Bank Statement: - Waived for small cars, for mid - sized and premium cars if income Is
greater than Rs. 1.5 lacks then bank statement requirement can be waived.

Partnership Firms
 Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for
mid-sized and premium cars
 Minimum turnover: Turnover Rs. 4.5 lacks
 Telephone: One phone at least at business and at residence of the loan executing partner
Documents required:
 Proof of Identity:- NA
 Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and
the latest 2 years IT returns of the company
 Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act
certificate/SSI registered certificate/Sales Tax certificate
 Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is
greater than Rs 1.5 lacks then bank statement requirement can be waived
EX-Showroom pricing: ING VYSYA BANK provides up to 90% of loans for new cars.
Fees and Charges:
Processing Fees: Up to Rs.5, 000 + service tax.
Foreclosure charges: 5%
Tenors: 5years
Min. loan amount: Rs.1, 00,000
Max. loan amount: Rs.15,00,000

Findings:
 The ING VYSYA Bank Ltd provides various types of Loans and Advances like personal
loan, housing loan, car loan, home equity loan, CLAP etc.
 All the above stated loans come with certain attractive interest rates, service charges and
margin. ING VYSYA BANK provides loan after the individual satisfies all requirements
like, his eligibility and appropriate purpose etc., certain required papers like proof of
identity, proof of income; proof of residence, bank statement should be for granting the
loan.
 Personal segment advances was a high priority because it offers sustained credit growth
with reasonably good returns and ensures dispersal of credit risk.
 With a view to build customer friendly features into housing loan products and to bring
about a fair amount of flexibility in key terms and conditions of the scheme a new product
 Special counters for sanction of education loan were setup in important study centre in order
to give special emphasis on education loans.
 The bank is actively participating in increasing credit linkage to Self Help Group.

Conclusion
From the above summary of findings, the following conclusions are drawn:
 Introducing attractive, innovative-new loan schemes.
 The loans and advances and also the interest received have increased, thus it shows good
banking in loans and advances.
 The public are satisfied and happy with loans and are also willing to borrow from the
bank.
 The overall performance of the bank is good when looked into various other items,
Unnecessary operating expenses. The borrower can choose either fixed or fluctuating
interest rates which is a great advantage to the borrower.
 The sanctioning of loans at least one month’s time, this may reduce the number of
borrowers in the future.
 From the different advances made to priority sector in past three years from which it can
be concluded that the bank is more focusing on agricultural and personal loan.

Suggestions and recommendations
Considering the analysis and other details the following suggestions can be given.
 The bank should try to sanction the applied loan amount by less than one month’s time,
so that it will increase its income as well as a good morale of the bank in the minds of
the people
.
 The bank can provide loans at attractive and cheaper rates when compared to the other
public and private sector banks.
 The bank can provide the borrowers with flexible EMI and interest rates.
 The managers in all ING VYSYA Bank branches have to be made responsible for
recovery so that the bank never makes loss.
 The newly introduction loan and deposit schemes should be made aware to the public
so that they come forward to borrow the loans.

 The profits of the bank can be raised by more effectively utilization of assets and by
reducing the expenses.
ANNXERUES:-

LIST AXIS HDFC ICICI IDBI STAND SBI CITI DEUTS PNB
OF BANK BANK BANK BANK ARD BANK CHE
CHART BANK
BANK
ERED
S
FOR
HOME
LOAN
MIN RS.1lak RS.1lak RS.2lak RS.1lak RS.1lak RS.1lak RS.1l RS.2lak RS.1lakh
LOAN h h h h h h akh h
MAX RS.50la RS.1cro RS.1cro RS.75la RS.5cro RS.5cro RS.7. RS.5cro RS.1cror
LOAN kh re re kh re re 5cror re e
e
AGE 25- 24- 254- 25- 23- 25- 24- 23- 25-
NORM 55year 55year 65year 65year 65year 55year 65ye 65year 55years
S s s s s s s ars s
FOIR 45%- 50% 60% 45% 40% 35%- 55% 50%- 60%
50% 40% 60%
TENNU 25year 25year 25year 25year 25year 25year 25ye 25year 2
RE s s s s s s ars s
5YEARS
PROCE 1% 0.50% 0.5% 0.5% of 0.5%- 0.5% of 1% of 1% of 0.50%
SSING +servic loan 1.5% loan loan loan
FEE e tax amoun depend amoun amou amoun
t ing on t nt t
loan
FOREC 2% 1.50% 2% 2% 2% 1% 2% 2.50% 2%
LOSUR %
E

CHARG
ES
PART 25% of 50% of 4 times 25% of 6 times 40% of 75% of
PAYME loan princip in a princip in a princip principal
NT amoun al financi al financi al
CHARG t al year al years
ES
RATE
OF
INTERE
ST
SALARI 9.25% 9.75% 9.50% 9.50% 10% 8.5%fo 9.75 9.75% 10.50%
ED r the 1st %
year
SEP 9.50% 10% 9.75% 10% 10.25% 9.25% 10% 10.25% 10.50%
for 2nd
& 3rd
year
SENP 9.50% 10% 9.75% 10% 10.50% 9.75% 10.25% 10.50%
from
4th year
onward
s
GRP no no RS.1,50 no no no no no no
FOR ,000.pa
SEP .
MIN
INCO
ME
CRITER
IA
SALARI RS.1,40 RS.1,20 RS.18,0 RS.1,50 RS.15,0 RS.1,40 RS.1, RS.5,00 RS.1,20,
ED ,000.p. ,000.p. 00.p.m ,000.p. 00.p.m ,000.p. 00,00 ,000.p. 000.p.a
a a a a 0 or a
abov
e
SEP RS.1,40 RS.20,0 RS.1,50 RS.1,50 RS.2,00 RS.1,40 RS.1, RS.5,00 RS.1,50,
,000.p. 00.p.m ,000.p. ,000.p. ,000.p. ,000.p. 00,00 ,000.p. 000.p.a
a a a a a 0 or a
abov
e
SENP RS.1,40 RS.20,0 RS.1,50 RS.1,50 RS.2,00 RS.1,40 RS.1, RS.5,00 RS.1,50,
,000.p. 00.p.m ,000.p. ,000.p. ,000.p. ,000.p. 00,00 ,000.p. 000.p.a

a a a a a 0 or a
abov
e
NO no no no no no no no no no
INCO
ME
PROOF
LAND no yes yes yes no yes yes no yes
LOAN
MAX 80% 85% 85% 90% 90% 80-85% 75%- 80% 80%
LTV 80%

P/L A/C for the year ended 2010

Particulars FY 10 FY09 Variance
Net int. income 829.8 649.6 28%
Other income 620.2 547.7 13%
Total income 1450.1 1197.3 21%
Staff exp’s 428.9 392.2 9%
Other exp’s 379.3 380.2 0%
Total exp’s 808.1 772.5 5%
Opt. profit 642.0 424.8 51%
Provisions 270.4 130.2 108%
PBT 371.5 294.7 26%
Taxes 129.3 105.9 22%
N/P 242.2 188.8 28%
Balance Sheet as on 31st march 2010

Particulars As on 31st march2010 As on 31st march 2009 Variance %

Capital & Reserves 2.331 1.703 37%
Deposits 25,865 24,890 4%
Borrowings 3,671 2,152 15%
Other liabilities & 2,013 3,112 4%
Provisions
Total liabilities 33,880 31,857 6%
Cash inter bank etc 3,027 2,282 33%
Investment 10,473 10,496 0%
Advances 18,507 16,751 10%
Fixed & other assets 1,873 2,329 20%
Total Assets 33,880 31,857 6%
BIBLOGRAPHY
Sl.no. Author Name Book Name Edition Contents Year of
Publication
1 Shashi.K.Gupta Financial Kalyani Theoretical 2004
Management Publication, background
New Delhi of the topic
2 C.R.Kothari Research Vishwa Design of 2002
Methodology Prakashan the study
Methods and
Techniques
Reports:
Annual Reports of ING VYSYA Bank ltd.
WIBILIOGRAPHY:
www.INGVYSYABank.com: Company Profile, Background and Inception of the company,

Product/service profile and nature of business carried.

Consumer Finance: Ing Vysya Bank LTD

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CONSUMER FINANCE [ING VYSYA BANK LTD]

2 CITY ENGINEERING COLLEGE

History of Banking in India:

3 CITY ENGINEERING COLLEGE

Today the commercial banking system in India may be distinguished into

1. Public Sector Bank:

2. Private Sector Banks:

 Old Generation private banks

 Industrial Finance Corporation of India (IFCI)

4 CITY ENGINEERING COLLEGE

 Small Industrial development Bank of India (SIDBI)

Co-operative means “ a form of organization where in persons voluntarily associate together as

5 CITY ENGINEERING COLLEGE

 Raiffeisen Model societies

 Restricted membership to rural masses

 Membership is open to artisans, middle class people

6 CITY ENGINEERING COLLEGE

1. Primary credit societies at the base

Primary Credit Societies

Central Co-operative Banks

7 CITY ENGINEERING COLLEGE

State Co-operative Banks

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The Origin of ING Group

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The new identity

ING VYSYA BANK

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The long journey of seventy-five years has had several milestones…

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2.2 NATURE OF THE BUSINESS CARRIED:

12 CITY ENGINEERING COLLEGE

2.3 VISION & MISSION.

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Vision of Ing Vysya bank:

ING Vysya bank products

Functions of ING Vysya bank

2.4 PRODUCT SERVICE PROFILE:

14 CITY ENGINEERING COLLEGE

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2.5 AREA OF OPERATION:

2.6 OWNERSHIP PATTERN

Board of directors as on 20-12-2010

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SHAILENDRA BHANDARI MD & CEO

ADITYA KRISHNA Director

PHILLIPE DAMAS Director

RICHARD COX Director

SANTOSH RAMESH DESAI Director

VAUGHN NIGEL RICHTOR Director

PETER HENRI MARIA STAAL Director

LARS KAMER Director

VIKRAM TALWAR Director

2.7 COMPETITORS FOR ING VYSYA BANK

18 CITY ENGINEERING COLLEGE

19 CITY ENGINEERING COLLEGE

in its global meet on corporate communication march 2007.

20 CITY ENGINEERING COLLEGE

FUTURE GROWTH OF ING VYSYA BANK

21 CITY ENGINEERING COLLEGE

3. MCKINSEY’S 7-S MODEL

22 CITY ENGINEERING COLLEGE

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