FINANCIAL PRODUCT OFFERED BY ING VYSYA BANK Project Report Submitted In Partial Fulfillment of Requirement for the Award

of Degree of PGDM By Name of Student Pallavi Garg Name of Guide Prof. Vardhman Jain Name of Institution SINHGAD INSTITUTE OF MANAGEMENT Year of Course 2010-2012

DECLARATION I the undersigned, hereby declare that the Project Report entitled FINANCIAL PRODUCT OFFERED BY ING VYASYA BANK written and submitted by me to the University of Pune , in partial fulfillment of the requirement for the award of degree of PGDM under the guidance of Prof. Vardhman Jain is my original work and the conclusions drawn therein are based on the material collected by myself.

Place: RUDRAPUR Date :

Signature of Student

ACKNOWLEDGMENT The satisfaction Euphoria that accompany the successful completion of any work would be incomplete unless we mention the name of the person, who made it possible, who constant guidance and encouragement served as a beckon of light and crowned our efforts with success. I consider it a privilege to express through the pages of this report, a few words of gratitude and respect to those who guided and inspired in the completion of this project. I am deeply indebted to Mr. Manish (Branch Head) for giving me the opportunity to undergo my project in their esteemed organization and the their timely suggestions & Valuable guidance. I also want to give thanks to Mr. Hemant Triphati (Manager operation). They constantly encouraged me and showed the right path from day first till the completion of my project. I had visited almost all markets of Rudrapur and collected information of the project. I have also done promotional activities under the constant guidance of my project guide. In the last but not the least, my grateful appreciations also extended to and also my thanks to all my faculties members, Parents and friends. However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

INDEX
SERIAL NO. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) TOPICS OBJECTIVE OF STUDY SCOPE OF STUDY EXECUTIVE SUMMARY PREFACE COMPANY OVERVIEW RESEARCH METHODOLOGY DATA INTERPRETATION FINDINGS SUGGESTIONS LIMITATION CONCLUSION QUESTIONNAIRE BIBLIOGRAPHY PAGE NO. 5 5-6 6 7 7-18 19-21 22-36 37 38 39 40 41-43 44

OBJECTIVE OF THE STUDY

To know about environmental factors affecting ING-Vysya Banks performance. To analyze the role of advertisement for bank performance. To know the perception and conception of customers towards banking products and specially focused for ING Banks product. To explore the potential areas for the new bank branches which will provide both price and people to the bank with constant promotion and placing strategy.

SCOPE OF THE STUDY

Each and every project study along with its certain objectives also has scope for future. And this scope in future gives to new researches a new need to research a new project with a new scope. Scope of the study not only consist one or two future business plan but sometime it also gives idea about a new business which becomes much more profitable for the researches then the older one. Scope of the study could give the projected scenario for a new successful strategy with a proper implementation plan. Whatever scope I observed in my project are not exactly having all the features of the scope, which I described above, but also not lacking all the features. Research study could give an idea of network expansion for capturing more market and customer with better services and lower cost, without compromising with quality. In future customer requirements could be added with the product and services for getting an edge over competitors. Consumer behavior could also be used for the purpose of launching a new product with extra benefits which are required by customers for their account (saving or current) and/or for their investments. Factors, which are responsible for the performance for bank, can also be used for the modification of the strategy and product for being more profitable.

Factors which I observed while doing project study are following1. Competitors 2. Customer Behavior 3. Advertisement/promotional activities 4. Attitude of manpower and 5. Economic conditions These all could also be interchanged with each other for each other in banks strategies for making a final business plan to effect the market with a positive way without disturbing a lot to market, customers and competitors with disturbance in market shares .

INTRODUCTION : EXECUTIVE SUMMARY OF THE PROJECT EXECUTIVE SUMMARY Banking Industry, which is basically my concern industry around which my project has to be revolved, is really a very complex industry. And to work for this was really a complex and hectic task and few times I felt so frustrated that I thought to left the project and go for any new industry and new project. Challenges, which I faced while doing this project, were followingBanking sector was quite similar in offering and products and because of that it was very difficult to discriminate between our product and products of the competitors. Target customers and respondents were too busy persons that to get their time and view for specific questions was very difficult . Sensitivity of the industry was also a very frequent factor, which was very important to measure correctly. Area covered for the project while doing job also was very large and it was very difficult to correlate two different customers/respondents views in a one.

PREFACE Decision-making is a fundamental part of the research process. Decisions regarding that what you want to do, how you want to do, what tools and techniques must be used for the successful completion of the project. In fact it is the researchers efficiency as a decision maker that makes project fruitful for those who concern to the area of study. Basically when we are playing with computer in every part of life, I used it in my project not for the ease of my but for the ease of result explanation to those who will read this project. The project presents the role of financial system in life of persons. I had toiled to achieve the goals desired. Being a neophyte in this highly competitive world of business, I had come across several difficulties to make the objectives a reality. I am presenting this hand carved efforts in black and white. If anywhere something is found not in tandem to the theme then you are welcome with your valuable suggestions.

COMPANY OVERVIEW ING Vysya Bank Ltd., is an entity formed with the coming to gether of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002.The origin of the erstwhile Vysya Bank was pretty humble.It was in the year 1930 that a team of visionaries came to gether to form a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services. It's been a long journey since then and the Bank has grown in size and stature to encompass every area of present-day banking activity and has carved a distinct identity of being India's Premier Private Sector Bank.In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach 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 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 financialservice providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a provider of employee benefits, i.e. arrangements of non wage benefits, such as pension plans for companies and their employees. Mission ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of financial services through the distribution channels of the clients preference in markets where ING can create value. THE NEW IDENTITY The immediate benefit to the bank, ING Vysya Bank, has been the pride of having become a Member of the global financial giant ING. As at the end of the year December 2011, ING's total assets exceeded 13.31 billion euros, employed over 125000 people, served over 85 million customers, across 50 countries. This global identity coupled with the back up of a financial power house and the status of being the first Indian International Bank, would also help to enhance productivity, profitability, to result in improved performance of the bank, for the benefit of all the stake holders. MILESTONE IN THE LONG JOURNEY OF ING VYSYA BANK 1930 Set up in Bangalore 1948 Scheduled bank 1985 Largest private sector bank 1987 The Vysya Bank LeasingLtd .Commenced 1988 Pioneered the concept of Co branding of credit Cards 1990 Promoted Vysya Bank Housing Finance Ltd. 1992 Deposits cross Rs.1000 crores 1993 Number of branches crossed 300 1996 Signs Strategic Alliance with BBL.,Belgium. Two National Awards by Gem & Jewellery export Promotion council for excellent performance in export promotion. 1998 Cash Management Services & commissioning of VSAT. Golden Peacock Award-for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance(International Financial Journal-June1998) 2000 State-of-the-art Date Centre at ITPL, Bangalore.RBI clears setting up of ING Vysya Life Insurance Company 2001 ING-Vysya commenced life insurance business.
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2002 The Bank launched a range of products & services likethe Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smart serv , personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-bank net banking service. 2002 ING takes over theManagement of the Bank from October 7th , 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02 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 Introduced Solo - My Own Account for youth and Customer Service Line Phone Banking Service

BALANCE SHEET

Mar '07 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 90.72 90.72 0 0 817.41 111.54 1,019.67 13,335.26 1,107.45 14,442.71 1,304.29 16,766.67

Mar '08 12 mths 90.9 90.9 0 0 901.6 110.78 1,103.28 15,418.59 843.55 16,262.14 1,920.87 19,286.29

Mar '09 12 mths 102.47 102.47 0 0 1,323.67 109.52 1,535.66 20,498.06 1,249.81 21,747.87 2,256.39 25,539.92

Mar '10 12 mths 102.6 102.6 4.47 0 1,487.05 108.77 1,702.89 24,889.92 2,152.42 27,042.34 3,111.75 31,856.98

Mar '11 12 mths 119.97 119.97 2.99 0 2,099.94 108.02 2,330.92 25,865.30 3,671.39 29,536.69 2,012.64 33,880.25

Mar '07 12 mths Assets Cash & Balances with RBI

Mar '08 12 mths

Mar '09 12 mths

Mar '10 12 mths

Mar '11 12 mths

841.65 9

945.81

2,263.53

1,791.02

2,329.59

Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets

281.68 10,231.53 4,372.34 676.23 383.02 293.21 112.2 634.06 16,766.67

645.89 11,976.17 4,527.81 681.06 394.33 286.73 109.24 794.65 19,286.30

921.23 14,649.55 6,293.32 706.82 429.31 277.51 121.7 1,013.06 25,539.90

491.23 16,750.93 10,495.54 754.09 468.77 285.32 151.88 1,891.07 31,856.99

697.46 18,507.19 10,472.92 773.73 485.4 288.33 207.6 1,377.15 33,880.24

Contingent Liabilities Bills for collection Book Value (Rs)

10,986.42 2,850.13 100.1

17,462.28 3,033.30 109.18

32,959.36 3,096.69 139.17

38,734.68 4,303.00 154.93

72,851.44 4,570.43 185.04

P & L ACCOUNT

Mar '07 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses

Mar '08 12 mths

Mar '09 12 mths

Mar '10 12 mths

Mar '11 12 mths

1,222.43 190.31 1,412.74 741.25 234.19 161.58 37.2 229.47 0 572.17 90.27 1,403.69 Mar '07

1,401.38 248.57 1,649.95 859.31 238.48 170.16 37.98 255.1 0 576.51 125.21 1,561.03 Mar '08 10

1,680.44 418.57 2,099.01 1,182.05 302.39 140.7 38.93 279.99 0 645.49 116.52 1,944.06 Mar '09

2,239.89 547.67 2,787.56 1,590.27 392.22 231.68 40.82 343.78 0 878.8 129.7 2,598.77 Mar '10

2,232.89 620.22 2,853.11 1,403.05 428.85 374.15 40.96 363.87 0 1,037.72 170.11 2,610.88 Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total

9.06 0 -34.6 -25.54 0 0 0 1 0 100.1 -26.84 0 0 1.29 -25.55

88.91 0 1.29 90.2 0 5.91 1 9.78 6.5 109.18 64.85 0.01 6.91 18.44 90.21

154.95 0 18.44 173.39 0 15.37 2.61 15.12 15 139.17 53.85 0 17.98 103.53 175.36

188.78 0 103.53 292.31 0 20.52 3.49 18.4 20 154.93 61.77 0 24.01 206.53 292.31

242.22 0 206.53 448.75 0 29.99 5.1 20.19 25 185.04 83.45 -0.01 35.09 330.22 448.75

MANAGEMENT ING VYSYA BANK

Name Shailendra Bhandari Arun Thiagarajan Meleveetil Damodaran Richard Cox Vaughn Nigel Richtor Vikram Talwar Aditya Krishna Lars Kramer
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Designation Managing Director & CEO Part Time Chairman Director Director Director Non.Exe.Independent Director Director Non Exe.Non Ind.Director

Philippe Damas Santosh Ramesh Desai Peter Maria Staal Mark Edwin Newman

Director Director Director Non Exe.Non Ind.Director

SOME FACTS ABOUT ING-VYSYA BANK

-Vysya bank branches works on profit centre Assets Liabilities A thing for which one is responsible Fee Income Products. A thing owned by a someone having some value CASA TD/FD Others Current account Savings account Fixed Depoits Term deposits Fee Income products Lockers Life Insurance General Insurance Mutual Funds Portfolio management service Products Orange Savings Bank Account Key Features: Quarterly Average Balance (QAB) of Rs. 5000/Free issue of the International Debit Card. Shopping convenience at over 2 Lakh merchant locations, with the ING Vysya International Debit card . Demat account Free Unlimited ATM transactions at over 25,000 (Cirrus/Cash net) ATM's in India, where QAB is maintained. Free Unlimited ATM transactions at over 196 ING Vysya ATM's.
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Free 2 Demand Drafts with a value not exceeding Rs. 50,000 per annum, where the QAB is maintained. Free Unlimited usage of payable at par (PAP) Cheques. Free Transfer of funds across all branches. Free National Electronic Funds Transfer (NEFT) through the internet banking channel. Free Electronic Bill Payment service Free Smartserv - Personal Assistance Service Free Statement of Account through E-mail. Free Mi-b@nk - Internet banking facility. Salary Account Key Features: Zero Balance Account. Free Unlimited ATM transactions on the ING Vysya ATM network and Corporation Bank ATM network 6 Free ATM transactions per month at 25,000 (Cirrus) ATMs Free ING Vysya International Debit Card. Re-issue charged at Rs. 200/- per request Shopping convenience at over 200,000 merchant locations. Free issue of personalized chequebooks. Free 2 D.Ds / P.Os not exceeding a value of Rs. 10,000/- per month. Free transfer of funds across all the branches of ING. Free Bill Pay service at select centres. Free Bill Pay service at select centres. Internet banking facility. (Mi-b@nk). Free Customer Service Line Free joint account status with one other family member Adhoc Checkout* (Temp Overdraft) to an extent of 50 % of the last salary credit charged at 18 % for the number of days overdrawn. Service Charge of Rs.100/- for every month that the account is overdrawn.. Free for life ING Vysya Credit Card based on customers eligibility. AAA Cash deposits are restricted to two transactions with a value not exceeding Rs. 50,000/- per month. Benefits: The quarterly average balance of Rs. 5000/- is waived as long as the employee is employed with the corporate. (Zero Balance Account). Enhanced Accessibility - Unlimited access to ING Vysya and Corporation Bank ATMs and 6 transactions at Cirrus ATMs per month.
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Free multi-city, multi-branch banking convenience. Minimum documentation supported by an official communication from the corporate. No restriction in the number of transactions in the account Eligibility: The minimum number of employees of the corporate, whose salary accounts are to be opened, should be 10. The average salary credit in to the employees orange salary account should be equal to or higher than Rs. 10,000/- per month. Where there is a joint account holder, the normal KYC norms need to be adhered to for the joint account holder Preferably corporate to have current account with ING.

Orange Salary Account Key Features: Zero Balance Account. (QAB requirement of Rs. 5000/- reduced to zero) Free Unlimited ATM transactions on the ING Vysya ATM network and Corporation Bank ATM network. Free unlimited ATM transactions at 25,000 (Cirrus) ATMs. Free ING Vysya International Debit Card Re-issue charged at Rs. 200/- per request. Shopping convenience at over 200,000 merchant locations. Free issue and unlimited usage of Payable at Par cheque books. Free transfer of funds across all the branches of ING. Free Personal Assistance Service - Smartserv at select centres. Free Bill Pay service at select centres. Free statement of account through e-mail. Internet banking facility. (Mi-b@nk) Free Customer Service Line. Free joint account status with one other family member. Adhoc Checkout* (Temp Overdraft) to an extent of 50 % of the last salary credit charged at 18 % for the number of days overdrawn. Service Charge of Rs.100/- for every month that the account is overdrawn. Free for life Credit Card based on Customers eligibility AAA Cash deposits are restricted to two transactions with a value not exceeding Rs. 50,000/- per month Benefits:
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The quarterly average balance of Rs. 5000/- is waived as long as the employee is employed with the corporate. (Zero Balance Account). Enhanced Accessibility - Unlimited access to ING Vysya, Corporation Bank and Cirrus ATMs Enhanced Accessibility - Unlimited access to ING Vysya, Corporation Bank and Cirrus ATMs Minimum documentation supported by an official communication from the corporate. No restriction in the number of transactions in the account. Privileged Customer status for retail loan products. Eligibility: The minimum number of employees of the corporate, whose salary accounts are to be opened, should be 20. The average salary credit in to the employees orange salary account should be equal to or higher than Rs.20,000/- per month. Where there is a joint account holder, the normal KYC norms need to be adhered to for the joint account holder. Preferably corporate to have a current account with ING

WHAT FACTORS ARE REALLY RESPONSIBLE FOR PERFORMANCE OF ING BANKS PERFORMANCE IN THIS COMPETITIVE ERA. INDUSTRY STATUS & ING-VYSYA BANKS INTERFACE INDUSTRY INTRODUCTION The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). These banks have over 67,000 branches spread across the country in every city and villages of all nook and corners of the land. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as priority sectors. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980. Since then the number of scheduled commercial banks increased four-fold and the number of bank branches
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increased eight-fold. And that was not the limit of growth. After the second phase of financial sector reforms and liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. Eight new private sector banks are presently in operation. These banks due to their late start have access to state-of-the-art technology, which in turn helps them to save on manpower costs. During the year 2000, the State Bank Of India (SBI) and its 7 associates accounted for a 25 percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5 percent of credit during the same period. The share of foreign banks (numbering 42), regional rural banks and other scheduled commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in credit during the year 2000. About the detail of the current scenario we will go through the trends in modern economy of the country.

CURRENT SCENARIO: The industry is currently in a transition phase. On the one hand, the PSBs, which are the mainstay of the Indian Banking system are in the process of shedding their flab in terms of excessive manpower, excessive non Performing Assets (Npas) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions. PSBs, which currently account for more than 78 percent of total banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional sources, lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service. The PSBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes. Aggregate Performance of the Banking Industry Aggregate deposits of scheduled commercial banks increased at a compounded annual average growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded at a Cagr of 16.3 percent per annum. Banks investments in government and other approved securities recorded a Cagr of 18.8 percent per annum during the same period. In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of only 6.0 percent as against the previous years 6.4 percent. The WPI Index (a measure of
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inflation) increased by 7.1 percent as against 3.3 percent in FY00. Similarly, money supply (M3) grew by around 16.2 percent as against 14.6 percent a year ago. The growth in aggregate deposits of the scheduled commercial banks at 15.4 percent in FY01 percent was lower than that of 19.3 percent in the previous year, while the growth in credit by SCBs slowed down to 15.6 percent in FY01 against 23 percent a year ago. The industrial slowdown also affected the earnings of listed banks. The net profits of 20 listed banks dropped by 34.43 percent in the quarter ended March 2001. Net profits grew by 40.75 percent in the first quarter of 2000- 2001, but dropped to 4.56 percent in the fourth quarter of 2000-2001. On the Capital Adequacy Ratio (CAR) front while most banks managed to fulfill the norms, it was a feat achieved with its own share of difficulties. The CAR, which at present is 9.0 percent, is likely to be hiked to 12.0 percent by the year 2004 based on the Basle Committee recommendations. Any bank that wishes to grow its assets needs to also shore up its capital at the same time so that its capital as a percentage of the risk-weighted assets is maintained at the stipulated rate. While the IPO route was a much-fancied one in the early 90s, the current scenario doesnt look too attractive for bank majors. Consequently, banks have been forced to explore other avenues to shore up their capital base. While some are wooing foreign partners to add to the capital others are employing the M&A route. Many are also going in for right issues at prices considerably lower than the market prices to woo the investors.

INTEREST RATE SCENE The two years, post the East Asian crises in 1997-98 saw a climb in the global interest rates. It was only in the later half of FY01 that the US Fed cut interest rates. India has however remained more or less insulated. The past 2 years in our country was characterized by a mounting intention of the Reserve Bank Of India (RBI) to steadily reduce interest rates resulting in a narrowing differential between global and domestic rates. The RBI has been affecting bank rate and CRR cuts at regular intervals to improve liquidity and reduce rates. The only exception was in July 2000 when the RBI increased the Cash Reserve Ratio (CRR) to stem the fall in the rupee against the dollar. The steady fall in the interest rates resulted in squeezed margins for the banks in general.

GOVERNMENTAL POLICY After the first phase and second phase of financial reforms, in the 1980s commercial banks began to function in a highly regulated environment, with administered interest rate structure, quantitative restrictions on credit flows, high reserve requirements and
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reservation of a significant proportion of lendable resources for the priority and the government sectors. The restrictive regulatory norms led to the credit rationing for the private sector and the interest rate controls led to the unproductive use of credit and low levels of investment and growth. The resultant financial repression led to decline in productivity and efficiency and erosion of profitability of the banking sector in general. This was when the need to develop a sound commercial banking system was felt. This was worked out mainly with the help of the recommendations of the Committee on the Financial System (Chairman: Shri M. Narasimham), 1991. The resultant financial sector reforms called for interest rate flexibility for banks, reduction in reserve requirements, and a number of structural measures. Interest rates have thus been steadily deregulated in the past few years with banks being free to fix their Prime Lending Rates (PLRs) and deposit rates for most banking products. Credit market reforms included introduction of new instruments of credit, changes in the credit delivery system and integration of functional roles of diverse players, such as, banks, financial institutions and non-banking financial companies (Nbfcs). Domestic Private Sector Banks were allowed to be set up, PSBs were allowed to access the markets to shore up their Cars. What is KYC? KYC is Know Your Customer Guidelines that we need to follow as a bank. Every customer of the bank should necessarily satisfy the KYC norms laid down.

How can I do KYC for a lead? When you meet a customer, he should seem what he has stated about himself. For example a salaried employee should be able to state the name of the organization and the location of the office easily without having to refer to any document.

What documents should I ask for? The prescribe documents as to what has been given in the application form and also in the sales detailer

What should I do when I get the documents? Look at each of the documents and compare with the data given by the customer. If there is any deviation, clarify with the customer immediately

What should I do if the customer has no supporting document? Ask of the customer can get it in a few days time, if no, drop the lead.
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RESEARCH METHODOLOGY
DATA COLLECTION 1- Questionnaire filled by a) Existing customers of ING in Rudrapur b) New customers who are not associated with ING in Rudrapur. RESEARCH DESIGN

SAMPLING TECHNIQUE Convenience sampling -probability sampling. the universe for consulting a sample, which represents the universe and when elements are selected for inclusion in the sample based on the ease of access, it is called convenience sampling.

RESEARCH TECHNIQUE Conclusive research decisions.

TOOLS AND TECHNIQUES As no study could be successfully completed without proper tools and techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which I used for project from statistics areBar Charts Pie charts Tables Bar charts and pie charts are really useful tools for every research to show the result in a well clear, ease and simple way. Because I used bar charts and pie charts in project for showing data in a systematic way, so it need not necessary for any observer to read all the
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theoretical detail, simple on seeing the charts any body could know that what is being said. TECHNOLOGICAL TOOLS Ms- Excel Ms-Word Above application software of Microsoft helped me a lot in making project more interactive and productive. Microsoft-Excel had a great role in my project, it created for me a situation of you sit and get. I provided it simply all the detail of data and in return it given me all the relevant information.. Microsoft-Word did help me for the documentation of the project in a presentable form.

APPLIED PRINCIPLES AND CONCEPTS While I started to do the project the main thing, which was the matter of concern was that, around what principles I have to revolve my project. Because with out having any hypothesis and objective we cannot determine that what output or result we are expecting form the project. And second thing is that having only tools and techniques for the purpose of project is not relevant until unless we have the principals for which we have to use those tools and techniques. Mathematical Averages Standard Deviation Correlation

SOURCES OF PRIMARY AND SECONDARY DATA: For the purpose of project data is very much required which works as a food for process, which will ultimately give output in the form of information. So before mentioning the source of data for the project I would like to mention that what type of data I have collected for the purpose of project and what it is exactly.

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PRIMARY DATA: Primary data is basically the live data which I collected on field while doing cold calls with the customers and I shown them list of question for which I had required their responses. In some cases I got no response form their side and than on the basis of my previous experiences I filled those fields. SOURCE: Main source for the primary data for the project was questionnaires, which I got filled by the customers or some times filled myself on the basis of discussion with the customers. SECONDARY DATA: Secondary data for the base of the project I collected from intranet of the Bank and from Internet, etc.

STATISTICAL ANALYSIS In this segment I will show my findings in the form of graphs and charts. All the data which I got form the market will not be disclosed over here but extract of that in the form of information will definitely be here. DETAIL:

Size of Data Area Type Industry Respondent

100 RUDRAPUR Primary & Secondary Banking Customers

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Table1: correlation between awareness of customers about ING NO. OF RESPONSE 15 25 5 10 11 10 12 12

30

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

25

20

15

10

0 20-25 25-30 30-35 35-40 40-45 45-50 50-60

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TABLE 2: PERCEPTION OF ING AS A BANK TYPE OF BANK PRIVATE PUBLIC PRIVATE/PUBLIC DON'T KNOW RESPONSES 50 15 25 10

Sales

private public privat/public dont know

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TABLE 3 : RATING OF CUSTOMERS FOR ING BANK AS A GOOD BANK PARAMETER EFFICIENCY INTERNET BANKING/ATM PRODUCT RANGE NETWORK PHONE BANKING RESPONSES 75% 5% 10% 5% 5%

Sales

efficiency internet banking/ atm product range network phone banking

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TABLE 4: MARKET SHARES OF ING IN RUDRAPUR IN COMPARISION TO COMPETITORS BANK NAME SBI IDBI ICICI PNB HDFC ING OTHER
35% 30% 25% 20% 15% 10% 5% 0% SBI IDBI ICICI PNB HDFC ING

% OF SHARE 30% 15% 25% 10% 5% 5% 10%

Series 1 Column1 Column2

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TABLE 5: FACTORS RESPONSIBLE FOR PERFORMANCE OF ING BANK IN RUDRAPUR PARAMETER PRODUCT ADVERTISEMENT MANPOWER NET BANKING PHONE BANKING INVESTMENT BANKING NETWORK
60% 50% 40% 30% 20% 10% 0% Series 1 Column1 Column2

% OF SHARE 50% 5% 25% 2% 5% 10% 3%

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TABLE 6: THE EFFECTIVENESS OF COMMERCIALS OF ING BANK DAY AFTER THE AD IS SEEN 0-5 DAYS 6-10 DAYS 11-15 DAYS MORE THAN 15 DAYS POSITIVE RESPONSE 45 15 25 15

Sales

0-5 days 6-10 days 11-15 days more than 15 days

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Table 7:Products/Services the customers are presently availing Saving account Current account Fdr Life insurance Mutual fund Sip Lockers Demat account 35 25 15 5 7 2 5 6

Sales
saving account current account FDR life insurance mutual fund SIP lockers demat account

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Table:8 Satisfaction level of the respondents from their respective banks Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied 2 75 15 6 6

Sales

highly satisfied satisfied neither satisfied nor dissatisfied dissatisfied highly dissatisfied

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Table 9: No.of Respondents know about ING Bank Never heard 80 Heard few times 15 Heard frequently 5

Sales

never heard heard few times heard frequently 4th Qtr

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Table: 10 Kind of Banking services the respondents wish to use High priority services Preferred services Normal services 25 35 40

sales

high priority services preferred services normal services

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Table 11:Type of investment the respondents like to invest FDR, NSC 55 Mutual Fund 5 SIP 5 LI 15 Shares 5 Gold 5 Govt. & Tax saving bond 10

60 50 40 30 20 10 0 FDR. NSC MUTUAL FUND SIP LI SHARES GOLD Series 1 Column1 Column2

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

70 60 50 40 30 20 10 0 YES NO

65 35

Series 1 Column1 Column2

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Table 13: Preferences of the respondents at the time of hiring the locker Safety/Security Operating time Rental/Security charges Locker Size Parking space outside bank 35 15 35 10 5

Sales

SAFETY/ SECURITY OPERATING TIME RENTAL/SECURITY CHARGES LOCKER SIZE PARKING SPACE OUTSIDE BANK

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Table 14: Categorization of respondents on the basis of Annual Income < 60000 60000-100000 100000-500000 500000-1500000 >1500000 2 25 65 6 2

Sales

<60000 60000-100000 100000-500000 500000-1500000

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Table 15: General impression of the respondents About ING-Vysya Bank High Quality services & Reliability Average quality services & Dependability Low quality services & Reliability 5

90 5

Sales

HIGH QUALITY SERVICES & RELIABILITY AVERAGE QUALITY SERVICES & DEPENDABILITY LOW QUALITY SERVICES & RELIABILITY

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FINDINGS
1.ING bank has potential a tapped market in RUDRAPUR and hence has opportunities for growth. 2.The products of ING bank have good credibility in the region compare to its competitors. 3.The advertisement of the bank was very effective from the first day of its airing till the fifth day and there after it starts declining. 4.The initial balance for A/C opening is Rs, 5000/- and thats why people are reluctant in opening the same. 5. ING is very much compliance to follow the KYC norms. 6. The size of the locker provided by the ING-Vysya Bank is big in size as compared to other banks.

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SUGGESTION
1) More resources should be allocated in the market of RUDRAPUR as there is big untapped market in RUDRAPUR, so it becomes necessary for ING bank for taking an edge over the competitors. 2) A short advertising campaign in RUDRAPUR has produced good results in a short span of times, so to gain long term benefits is very necessary for ING bank to carry on this campaign with more intensity. 3) Besides opening more branches it should also look for opening some extension counter in D.D.Puram. 4) As a number of colleges are going to be opened in RUDRAPUR in the next few years, so ING should try to gain some contacts with these colleges. 5) Most of the people in RUDRAPUR wants that they should not stand in queue in bank . If we can convince them on this, than this can open a vast potential market for ING Bank in RUDRAPUR. 6) The cash withdrawal time can be one of the aspects to gain popularity in RUDRAPUR. 7) The benefits provided by the ING Bank to its customers should be advertise so that people can understand that customers satisfaction is the main aim for the persons working in ING.

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LIMITATIONS 1. The sample size is very less, hence the responses of just 100 respondents does not imply for the complete population. 2. There was lack of time and resources that prevented from carrying out an in depth study. 3. The findings of the survey are based on the subjective opinion of the respondents and there is no way of assessing truth of the statements. 4. Lastly, some amount of error exists in the data filling process because of the following reasons: Influence of others. Misunderstanding of the concept. Hurried filling of the questionnaire.

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CONCLUSIONS
1. Customers of RUDRAPUR have enough awareness level about ING Vysya bank as well as about its services and products. 2. The advertising campaign has successfully been able to increase the market share of ING in RUDRAPUR. 3. The modern days technology like Internet banking, phone banking, used by ING bank for providing banking services has sent positive signals in the mind of consumers. 4. The network of ING in RUDRAPUR is lagging behind a little than its competitors like ICICI bank and HDFC bank. . 5. It has a very good potential to have the new customers especially the youth because it has the Formula a/c, which is very much liked by the youth in the other cities. 6. Most of the residents of RUDRAPUR dont know about the establishment of INGVysya Bank in RUDRAPUR.

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QUESTIONNAIRE
1) Name ________________ 2) Age ________________ 3) Sex _________________ 4) Occupation: (a) Salaried Retired (b) Business House-wife (c) Self-Employed Student (d) Agriculture (e) Others(specify)_________ 5) Income P.A.: (a) <60000 (b) 60000-100000 (c) 100000-500000 (d) 500000-1000000 (e) >1500000 6) Your current Bank __________________________ 7) What products/services you are presently availing (a) Saving a/c Mutual Fund (b) Current a/c SIP (c) FDR Equity (d) Life Insurance Lockers (e) Demat a/c Credit card (f) Loans 8) How happy you are with the services provided by your existing bank. (a) Highly satisfied (b) Satisfied (c) Neither satisfied nor dissatisfied (d) Dissatisfied (e) Highly dissatisfied

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9) Before this survey, how often had you heard of ING Vysya Bank Ltd. (a) Ive never heard before (b) Ive seen or heard a few times (c) I see or hear frequently 10) How you came to know about ING Vysya Bank Ltd. (a) TV Commercials (b) Word of Mouth (c) Billboards 11) What are your general impressions of ING Vysya Bank (a) High quality services and reliability (b) Average quality services and dependability (c) Low quality services and reliability 12) Are you associated with ING Vysya bank (a) Yes (b) No (c) If yes, then please specify _____________________________ 13) What kind of banking services you generally wish to use (a) High priority services (b) Preferred services (c) Normal services 14) In which form of investment you invest the most (a) FDR Equity (b) Mutual Funds Shares (c) SIP Gold (d) Life Insurance Government (e) tax saving bonds

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15) If you invest in mutual funds more frequently, would you like all your funds to be managed and controlled at a single point rather than scattered (a) Yes of course (b) I am not sure (c) Its not possible 16) Have you hired a safe deposit locker in any of the bank (a) Yes (b) No (c) If yes, then please specify________________________ 17) If you would hire a locker, what will be your preferences (Please rate on 1-5 scale) (a) Safety/Security (b) Operating Time (c) Rental/Safety charges (d) Locker Size (e) Parking Space outside Bank

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BIBLIOGRAPHY
1) www.ingvysyabank.com

2) www.google.com

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