16612056 ing-vysya-in-comparison-to-icici-and-hdfc

1.INTRODUCTION Page | 1

INTRODUCTIONBanking system of a nation is the shadow of nation’s economy. A healthy and profitablebanking system is just like the backbone of nation’s economy. It is necessary for a nation toachieve growth and remain stable in this global world and global economy. The Indian bankingsystem, with one of the largest banking networks in the world, has witnessed a series ofreforms over the past few years like the deregulation of interest rates, dilution of thegovernment stake in public sector banks (PSBs) and the increased participation of privatesector banks.1.1 History of INDIAN BANKING SYSTEMBanking in India originated in the last decades of the 18th century. The first banks were TheGeneral Bank of India, which started in 1786, and the Bank of Hindustan, both of which are nowdefunct The oldest bank in existence in India is the State Bank of India, a government-ownedbank that traces its origins back to June 1806 and that is the largest commercial bank in thecountry. Allahabad Bank, established in 1865 and still functioning today, is the oldest JointStock bank in India.Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally tookover these responsibilities from the then Imperial Bank of India, relegating it to commercialbanking functions. After Indias independence in 1947, the Reserve Bank was nationalized andgiven broader powers. In 1969 the government nationalized the 14 largest commercial banks;the government nationalized the six next largest in 1980.  In 1948, the Reserve Bank of India, Indias central banking authority, was nationalized, and it became an institution owned by the Government of India.  In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." Page | 2

 The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors Page | 3

1.2 Liberalization in INDIAN BANKING SYSTEMIn the early 1990s, the then government embarked on a policy of liberalization, licensing asmall number of private banks. These came to be known as New Generation tech-savvy banks,and included Global Trust Bank (the first of such new generation banks to be set up), whichlater amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bankand HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized thebanking sector in India, which has seen rapid growth with strong contribution from all the threesectors of banks, namely, government banks, private banks and foreign banksThe next stage for the Indian banking has been setup with the proposed relaxation in thenorms for Foreign Direct Investment, where all Foreign Investors in banks may be given votingrights which could exceed the present cap of 10%, at present it has gone up to 49% with somerestrictions.The new policy shook the Banking sector in India completely. Bankers, till this time, were usedto the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4%) of functioning. The new waveushered in a modern outlook and tech-savvy methods of working for traditional banks. All thisled to the retail boom in India. People not just demanded more from their banks but alsoreceived more.Currently (2009), banking in India is generally fairly mature in terms of supply, product rangeand reach-even though reach in rural India still remains a challenge for the private sector andforeign banks. In terms of quality of assets and capital adequacy, Indian banks are consideredto have clean, strong and transparent balance sheets relative to other banks in comparableeconomies in its region. The Reserve Bank of India is an autonomous body, with minimalpressure from the government. The stated policy of the Bank on the Indian Rupee is to managevolatility but without any fixed exchange rate-and this has mostly been true.With the growth in the Indian economy expected to be strong for quite some time-especially inits services sector-the demand for banking services, especially retail banking, mortgages and Page | 4

investment services are expected to be strong. One may also expect M&As, takeovers, andasset sales.Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is withthe Government of India holding a stake), 31 private banks (these do not have governmentstake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. Theyhave a combined network of over 53,000 branches and 17,000 ATMs. The public sector bankshold over 75 percent of total assets of the banking industry, with the private and foreign banksholding 18.2% and 6.5% respectively.1.3 The Origin of ING GroupING group originated in 1990 from the merger between “Nationale Nederlanden” the largestDutch Insurance Company and “NMB Post Bank” Group. Combining roots and ambitions, thenewly formed company called Internationale Nederlanden Group ﾝ . Market circles soonabbreviated the name to I-N-G. The company followed suit by changing the statutory name toING Group. ING is a global financial services company providing banking, investments, lifeinsurance and retirement services and operates in more than 50 countries.PROFILEING is a global financial institution of Dutch origin offering banking, investments, life insuranceand retirement services. ING serve more than 85 million private, corporate and institutionalcustomers in Europe, North and Latin America, Asia and Australia. They draw on theirexperience and expertise, their commitment to excellent service and their global scale to meetthe needs of a broad customer base, comprising individuals, families, small businesses, largecorporations, institutions and governmentsSTRATEGYING’s overall mission is to help customers manage their financial future. Capitalizing on Page | 5

changing customer preferences and building on our solid business capabilities, ING’s strategicfocus is on banking, investments, life insurance and retirement services. They provide retailcustomers with the products they need during their lives to grow savings, manage investmentsand prepare for retirement with confidence. With wide range of products, innovativedistribution models and strong footprints in both mature and developing markets, ING has thelong-run economic, technological and demographic trends on their side. ING aligns its businessstrategy around a universal customer ideal: saving and investing for the future should be easier.While steering the business through turbulent times, ING will execute efforts across all itsbusiness lines to strengthen customer confidence and meet their needs, preserve a strongcapital position, further mitigate risks and bring its costs in line with revenue expectations.COPERATE RESPOSIBILITYING wants to pursue profit on the basis of sound business ethics and respect for itsstakeholders. Corporate responsibility is therefore a fundamental part of ING’s strategy:ethical, social and environmental factors play an integral role in business decisions.1.4 FINANCIAL RESULTS FY 2008 FY2007 FY2006 FY2005 FY2004Income (in EUR milion)Insurance operations 54,851 62,208 59,642 57,403 55,614Banking operations 11,731 14,602 14,195 13,848 12,678Total Income1 66,291 76,587 73,621 71,120 68,171Operating ExpensesInsurance operations 5,422 5,515 5,275 5,195 4,746Banking operations 10,303 9,967 9,087 8,844 8,795Total operating expenses 15,725 15,481 14,362 14,039 13,541Addition to loan loss provision Banking 1,280 125 103 88 465operations Page | 6

Insurance result before tax -1,635 6,533 4,935 3,978 4,322Banking result before tax 148 4,510 5,005 4,916 3,418Total result before tax -1,487 11,043 9,940 8,894 7,740Taxation -721 1,534 1,907 1,379 1,709Minority interests -38 267 341 305 276Net result -729 9,241 7,692 7,210 5,755Figures per ordinary share (EUR)Net result -0.36 4.32 3.57 3.32 2.71Earnings 2) -0.56 4.32 3.57 3.32 2.71Dividend 0.74 1.48 1.32 1.18 1.07Shareholders’ equity 8.55 17.73 17.78 16.96 12.95Balance Sheet (in EUR billion)Total assets 1,332 1.312 1,226 1,159 964Total equity 29 40 41 38 28Shareholders’ equity 17 37 38 37 28Capital Ratios (%)ING Group debt/equity ratio 13.8% 9.5% 9.0% 9.4% 10.2%Insurance capital coverage ratio 256% 244% 274% 255% 204%Insurance debt/equity ratio 8.5% 13.6% 14.2% 13.4% 14.3%Bank Tier-1 ratio 9.32% 7.39% 7.63% 7.32% 6.92%Market capitalisation (in EUR billion) 15 60 74 65 49Shares (in millions):Outstanding 2,063 2,226 2,205 2,205 2,205Preference shares outstanding - 16 63 87 87 Page | 7

Key Performance Indicators- Net return on equity (ROE) -2.1% 24.2% 23.5% 26.6% 25.4%- Net result growth -108% 20% 7% 25% n.a.Insurance- Value of new life business 1,023 1,113 807 805 632- Internal rate of return 13.9% 14.3% 13.3% 13.2% 12.1%- Combined ratio (non-life) 97% 97% 91% 95% 94%Banking- Cost/income ratio 87.8% 68.3% 64.0% 63.9% 69.4%- RAROC after tax 1.2% 19.9% 19.7% 22.6% 14.5%Assets under management (in EUR 551 643 600 547 492billion)Staff (FTEs end of period) 124,661 124,634 119,801 116,614 112,1951.5 The ING Vysya BANK Ltd.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 Dutchorigin, during Oct 2002.The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a teamof visionaries came together to form a bank that would extend a helping hand to those whowerent privileged enough to enjoy banking services.ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office ofING Investment Management is situated at Mumbai. The synergies arising out of the threedistinct but complimentary businesses are bound to be an asset to the group in the changingmarket dynamics of the future. The first such signs are already visible on the horizon with Page | 8

combined products being successfully launched by the different entities of the group inconjunction with each otherIts been a long journey since then and the Bank has grown in size and stature to encompassevery area of present-day banking activity and has carved a distinct identity of being IndiasPremier Private Sector Bank.In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank maderapid strides to reach the coveted position of being the number one private sector bank. In1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, thethen Finance Minister Prof. Madhu Dandavate, had termed the performance of the bankstupendous. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during2005.The long journey of seventy-five years has had several milestones Page | 9

1930Setup inBangalore1948ScheduledBank1985LargestPrivateSectorBank1987TheVysyaBankLeasingLtd.Commenced1988Pioneered theconceptofCobranding Page | 10ofCredit

s1990PromotedVysya The ING Vysya Bank DEHRADUNBankHous ING Vysya Bank Dehradun branch was established somewhere in September 2008 and it standsing at third position in the region for its performance. It is the newest Private Sector Bank in theFinance city and yet has achieved a remarkable growth rate in past 7 months. It has got its JournalLtd. Ledger of the size of Rs.120,000,000 (12 crore rupees) and has got customer base of 1800 well satisfied happy customers. Every month around 30 to 40 saving accounts are opened which1992Dep shows the consistency of the Bank and currently bank holds around 1500 saving bank accounts.ositscrossRs.1000crores1993NumberofBranchescrossed3001996SignsStrategicAlliancewithBBL.,Belgium.TwoNationalAwa Page | 11rdsbyGem

JewelleryExportPromotionCoun 2.OBJECTIVE OFcilforexcellent THE STUDYperformanceinExportPromotion1998CashManagementServices,&commissioning ofVSAT. 2.1 PRIMARY OBJECTIVE:Golden • To thoroughly study the products & services of ING Vysya Bank.Peacock • To compare the banking products and services offered by ING Vysya Bank and otherAwa private banks (ICICI & HDFC)rd - • To study the customer’s expectations, behavior, responses & preferences for variousfor saving accounts of ING Vysya Bank.thebest • To study the marketing strategies adopted by ING Vysya Bank to maintain & increase itsHR market share & to retain its customers.Practicesby Page | 12Instituteof

tors.Rated asBestDomestic 2.2 SECONDARY OBJECTIVE:Bankin • To study banking operations.Indiaby • To get the knowledge about marketing strategies of bank.GlobalFinance 2.3 DURATION OF THE STUDY(Internati Duration of the study is 14 weeks.onalFinancialJour 2.4 LIMITATIONSnal -June • Research is only done in Dehradun city1998) • Research is self-financed so money is a major constraint • Respondents are biased toward their current bank.2000State • Time is 14 weeks, so much of economic fluctuations are not seen-of -the -art 2.5 SCOPE OF STUDYDateCentre at The scope of any study can be defined in terms of the area and the sample size which will beITPL, reviewed for satisfying the objective of the subject matter. The first part of the report can beBangaloremade on the basis of the secondary data collected about the different saving bank accounts of. private sector banks present in Dehradun via internet, magazines and journals.RBIclear The scope of the study is in Dehradun, and around 100 people are targeted for the surveyssetti which is done through questionnaire.ngup ofAs the scope of study is limited to Dehradun and to 100 people only, thus picture presented inINGVysy the testimony may not be the complete picture.aLifeInsuranceCom Page | 13pany2001

Vysyacommencedlifeinsurancebusiness.2002TheBanklaunchedarange ofproducts&servicesliketheVysVyaparPlus,therange ofloanschemesfortraders,ATMservices,Smartserv,personalassistantservi Page | 14ce,Save&

re,anaccountthatprovidesaccidenthospitaliz LITRATUREationand 3.insur REVIEWancecover,Sambandh,theInternationalDebitCardandthemi-b@nk netbankingservice.2002INGtakesovertheManagement oftheBankfrom Page | 15October7th ,

2002RBIclears thenew LITRATURE REVIEWname oftheBankas 3.1 Types of saving accounts offered by ING Vysya BankINGVysya A) ORANGE SAVINGS ACCOUNT:BankLtd, This account is the basic product of ING Vysya Bank. In this account minimum cash balancevide required to open an account & the Quarterly Average Balance requirement is Rs5000. Some oftheirlette the major features and benefits of this account are:r of17.12.02 FREE • Free issue of International Debit Card.2003 • Unlimited ATM transactions at over 25,000 (Cirrus/Cashnet) ATM’s in India, where QABIntroduce is maintained.d • Shopping convenience at over 2 Lakh merchant locations, with the ING Vysyacustome International Debit card.r • Unlimited ATM transactions at over 196 ING Vysya ATM’s.friendly • 2 Demand Drafts with a value not exceeding Rs.50,000 per annum, where QAB isprod maintained.uctslike • Unlimited usage of payable at par (PAP) Cheques.Oran • Transfer of funds across all branches.geSavi • National Electronic Funds Transfer (NEFT) through the internet banking channel.ngs, • Electronic Bill Payment service.Orange • Smartserv - Personal Assistance Service.Current • Statement of Account through E-mail.and • Mi-b@nk - Internet banking facility.Protecte • RTGS (Real Time Gross Settlement) transactions at all branches.d • AAA Cash deposit (Customers) – Free up to 2 transactions per month and a value limitHomeLoan Page | 16s

IntroducedProtected of Rs. 50,000/-HomeLoans-ahous BENEFITSing • Free unlimited access to 25,000 + other bank ATM’s- enhanced accessibility.loanprod • Free multi branch, Multi-city banking convenience.uct • Payable at par Cheques. • Smartserv- Personal Concierge Services.2005IntroducedSolo B) ING FORMULA SAVINGS ACCOUNT:- MyOwnAcco This is the product of ING Vysya Bank which is targeted towards the upper middle classunt segment of the society. Basically the targeted segment is the age group between 18-40 yrs. Thisforyout product has its significance particularly in Metropolitan/A grade cities. This product is alsoh useful for people who travel frequently particularly to Metropolitan/A grade cities.andCust Minimum cash balance required to open this account and Quarterly Average Balanceome requirement is Rs. 25000/-rService Some of the major features and benefits of this account are :Lineâ€“ • Maximum withdrawal limit from ING’s ATM or any other bank’s ATM is Rs. 50,000.Phon • Maximum shopping limit through ING’s ATM/Debit card is Rs. 75,000.eBank • Free Payable at Par cheques.ing • Exclusive F1 themed, Internet Banking services.Service • Formula 1 International Debit card. • Free sms alerts on transactions above Rs. 1500.2006Bankhas SPECIAL BENEFITS CARDnetw FUEL GAUGEorked all Page | 17thebranchesto

tateAAAtransactionsi.e. • Fill fuel across any petrol pump in India and get the 2.5% surcharge waived.Anywhere,Anytime& SPEED LAPAnyh • Shop using your ING Formula savings account and get Formula One merchandise.owBanking RACE DAY • Whenever there is a Formula 1 race anywhere in the world, there is a race for u as well. Shop using your ING Formula debit card on the day of the race and top 25 spenders for the race day wins vouchers from ING. • 3 winners – Gift vouchers worth Rs. 5000/- • 10 runner ups- Gift vouchers worth Rs. 2000/- • 12 second runner ups- Gift vouchers worth Rs. 1000/- C) PLATINA ACCOUNTS This product (account) of ING Vysya Bank is a special product for special class of customers. This can also be termed as Preferred Platina Banking. This product is designed to reduce the efforts put in handling banking and financial needs. This product has special features which are mainly meant for business class people who have to make large payments and have regular transactions. The Platina account holder becomes the preferred customer of the bank. The average quarterly balance (QAB) is Rs. 100,000 Features: • Dedicated Relationship Manager Our dedicated relationship managers can help you manage your money; while you pursue your passion, be it business or pleasure. • Wealth Management Service Page | 18

Our preferred banking services offer you customized financial strategies on how to investand where to invest based on simple financial risk profiling.• ING Platina Debit CardUse your ING Platina Gold Debit Card and withdraw cash up to Rs1 lac per day from anyATM, Avail a 1% cash back on shopping with your Debit Card.• Account Representative Services Now when you are out building a business empire or taking that well deserved vacation, just nominate someone else to do your routine banking enquires.• Preferential rates on ING products Get more out of the Platina relationship. Avail preferential rates on Demat, Bank Lockers, Personal and Home loans.3.2 Types of saving accounts offered by other private banks ICICI BANK A) ICICI Savings Bank Account: ICICI Bank is also offering the saving accounts as their products.• The ICICI Bank International debit card is a debit-cum-ATM card provides with the convenience of acceptance at merchant establishments and cash withdrawals at ATM.• Money Multiplier Facility• Internet Banking is offered free of cost.• Anywhere Banking facility entitles the account holder to withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI Bank branches.• An average quarterly balance of Rs.10,000 only in metro and urban locations.• Nomination facility is available.• Interest is payable half-yearly. Page | 19

Third party withdrawal limit is only Rs 15,000 and free demand draft making facility for amonth is only up to Rs 10,000. Free withdrawal limit from ATM card is only up to Rs 25,000 inall accounts. B) GOLD PRIVILAGE ACCOUNTSThe Gold Privilege Account brings the customer exclusive benefits, especially created forvaluable customers. The minimum quarterly average balance (QAB) requirement for GoldPrivilege account is Rs.50,000. Non-maintenance of the required QAB in any quarter attracts acharge as per the following guidelines:If QAB is between Rs.50,000 and Rs.25,000, charge of Rs.250 will be leviedIf QAB is between Rs.25,000 and Rs.10,000, charge of Rs.500 will be leviedIf QAB falls below Rs.10,000, charge of Rs.750 will be leviedYour Gold Privilege account entitles you to select privileges and offers:BENIFITS • Jump Queue facility in ICICI Bank branches. • Free usage of payable-at-par chequebook. • International VISA Gold debit card with higher daily withdrawal and spend limit. • Waiver of annual fee for Debit card. • Free and Unlimited access (cash withdrawals and balance enquiry) to any Banks ATM in the country using ICICI Bank International Gold Debit card. • Waiver of DD/PO charges for up to Rs.100,000 per day. • Waiver of Anywhere Banking charges across all ICICI Bank branches. • Priority Processing through ICICI Bank Phone Banking. • Preferential rates for Gold Coins. • Better rates for Foreign Exchange Service. Page | 20

• Discounts on Safe deposit locker facility. • Special asset deals from time to time. C) TITANIUM PRIVILAGED ACCOUNTThis product from ICICI is mainly to serve privileged customer (upper class)In constant endeavor to fulfill all the banking needs and enhance exclusivity ICICI Banklaunched Titanium Privilege Account - tailored to take care of customer’s banking andinvestment requirements and status. This account offers a dedicated Branch RelationshipManager supported with a Phone Banking Relationship Manager.Customer can realize the benefits of a Titanium Privilege Account on the basis of his totalrelationship value (TRV) with the bank. Customer need to maintain a TRV of between Rs. 5 lacand Rs. 10 lac and a quarterly average balance (QAB) of Rs.75,000. In addition to this, there iswaiver of QAB charges, subject to FD of min. 3.75 Lac.BENIFITS • Branch Relationship Manager supported with Phone Banking Relationship Manager. • Priority processing at all ICICI bank branches and through customer care. • A higher daily withdrawal and spend limit on a Titanium debit card. • Free International Titanium Debit Card. • Unlimited free access to any bank’s ATM throughout the country. • Free usage of multi-city cheque book. • Free physical monthly account statement. • Anywhere banking. • Complete waiver on DD/PO charges. • Preferential rate on purchase of ICICI Bank Pure Gold. • Preferential rates on purchase of foreign exchange with a complete waiver on Page | 21

commission charges. • Discounted rates on safety locker charges. HDFC BANK A) REGULAR SAVING ACCOUNTAn easy-to-operate savings account that allows customer to issue cheques, draw DemandDrafts and withdraw cash. Customer can check balances from the comfort of his home or officethrough NetBanking, PhoneBanking and MobileBanking.Withdrawal of cash from any of the 3275 ATM centers spread across the country.FEATURES & BENEFITS • Facilities like NetBanking and MobileBanking. • Customer can check the account balance, pay utility bills or stop cheque payment, through SMS. • Personalized cheques with customer’s name printed on each cheque leaf for enhanced security. • Advantage of BillPay, an instant solution to all frequent utility bill payments. Instructions for payment over the phone or through the Internet. • Customers can avail the facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on their account. • Free cash withdrawals on any other Banks ATM • Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/- per month. • Free InstaAlerts for all account holders for lifetime of the account. • Free Passbook facility available at home branch for account holders (individuals). • Free Email Statement facility. Page | 22

B) SAVING MAX ACCOUNTWelcome to a world of convenience. HDFC has presented SavingsMax account, loaded withmaximum benefits to make banking experience a pleasure. By maintaining an average quarterlybalance of just Rs. 25,000/- customer can get a host of premium services from HDFC Bank.FEATURES & BENIFITS • Free unlimited transactions: Cash withdrawal and balance enquiry, at all HDFC Bank ATMs & on any other Banks ATM using your HDFC Bank Debit Card. • Free Gold Debit Card for primary account holder for lifetime of the account. Gold Debit Card for other account holders at Rs 250/- p.a. • Free Womans Advantage/International Debit Card for all account holders for lifetime of the account. • Free Payable-at-Par (PAP) chequebook, without any usage charges upto a limit of 1 lac per month.* • Free Demand Drafts on HDFC Bank locations, upto a limit of 50,000/- per day at home branch. • Self/Third Party Cash Deposit/Withdrawal at non-home branches, upto Rs 50,000/- per day free. Above Rs 50,000 a charge of Rs 2.90 per thousand on the full amount would be applicable. • Optional sweep out facility to transfer extra savings to a Fixed Deposit, at the threshold of Rs.50,000/-.In the event of the balance in SavingsMax account exceeding Rs 50,000/-, the amount in excess of Rs 50,000/- will be swept out in to a Fixed Deposit with a minimum value of Rs 25000/- for a 1year 1day period. • Free BillPay & InstaAlerts for all account holders for lifetime of the account. • Free Monthly Statement of Account. Page | 23

• 50% off on the Locker rental for the 1st year only. • Folio maintenance charges on Demat account free for first year. • Free National Electronic Funds Transfer facility, NetBanking, MobileBanking. • Free Passbook facility available at home branch for account holders (individuals). • Free Email Statement facility C) PREFERRED BANKING ACCOUNTSThis account has been offered by HDFC for its preferred customers, so as to give specialbenefits to them. The minimum quarterly available balance (QAB) that has to be maintained inthis account is Rs. 2,00,000FEATURES & BENIFITS • Dedicated Relationship Manager • Customized Investment Solutions • Investment Options • e-Broking • Expedited Tax Payments • Relationship Pricing • Business Solutions • On-demand exclusive privileges • Annual Service Charge Waiver Page | 24

3.3 CLASSIFICATION/ CATEGORIZATIONSo, for convenience of the project and comparison the different accounts can be classifiedinto three categories: Category A Category B Category C1. PLATINA ACCOUNT FORMULA SAVING ORANGE SAVING (ING) ACCOUNT (ING) ACCOUNT (ING)2. TITANIUM PRIVILAGED GOLD PRIVILAGED SAVING ACCOUNTACCOUNT (ICICI) ACCOUNT (ICICI) (ICICI)3. PREFERRED BANKING SAVING MAX REGULAR SAVINGACCOUNT/PLATINUM ACCOUNT (HDFC) ACCOUNT (HDFC) (HDFC)Service quality Page | 25

ING Vysya Bank provides the top notch quality to its customers. They have so many special features that no other banks provide till date, like: 1. Special cabin/room for its customers to wait and relax when there is a rush or when customer is asked to wait for some time. 2. Fastest RTGS and NEFT services, which takes place within minutes. 3. A well behaving staff and special highly sensitive customer care department. This is head by a well efficient customer care manager. 4. Account verification with in promised 5 days. 5. Working hours from 10 a.m. to 6 p.m. (7 in p.m. if any customer is in need) 6. Doing things in the right way at right time. 7. It is the only Bank which provides the facility of withdrawal of 1 lakh rupees from any ATM at one go.3.4 FINANCIAL FIGURES W Page | 26

In Rs. Crores Q3 Q3 % YTD YTD % 2008-09 2007-08 growth 2008 2007 growthNet Interest Income 172.7 144.9 19.2% 487 357 36.1%Other Income 149 95.7 55.9% 400 279 43.3%Total Income 321.8 240.6 33.8% 887.8 637.5 39.3%Operating Costs 215.3 158.9 35.5% 585.0 438 33.6%Operating Profit 106.5 81.7 30.4% 302.8 199.5 51.8%Operating Profitafter Exceptional 106.5 100 6.4% 302.8 219.8 37.7%ItemsProvision & 21.6 27.7 -22.1% 84.7 33.9 150.1%ContingenciesProfit before Tax 84.9 72.4 17.3% 218.1 186 17.3%Provision for Taxes 32.8 29.6 11% 78.4 71.9 9.1%Profit after Tax 52.1 42.8 21.8% 139.7 114 22.5%3.5 Growth at ING Vysya Bank.In terms of pure numbers, the performance over the decades can better be appreciated fromthe following table:Rs. in millions Year Networth Deposits Advances Profits Outlets 1940 0.001 0.400 0.400 0.001 4 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 Page | 27

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 677Even in the recessionary period the ING Vysya Bank is going in profits. While other banks arelosing a big percentage of their expected profits.ING Vysya Bank Q3 Profit up 22%Continued Profit Growth sustained by Strong Fee Income PerformanceThe Board of Directors of ING Vysya Bank Ltd. approved the unaudited financial results of theBank for the quarter and period ended 31 December 2008 at its meeting in Bangalore at 23rdJanuary 2009.3.6 FINANCIAL HIGHLIGHTSQ3 PerformanceNet Profit after Tax (PAT) for the quarter ended 31 December 2008 increased by 22% toRs.52.1 Crores from Rs.42.8 crores for the quarter ended 31 December 2007 and Profit beforeTax (PBT) rose 17% to Rs.84.9 crores from Rs.72.4 crores. However, excluding the impact of exceptional items reported in the quarter ended 31December 2007, PAT grew by 70% and PBT by 57% over the same quarter last year.Net Interest Income (NII) was up 19% to Rs.172.7 crores from Rs.144.9 crores and Fee & OtherIncome increased by 56% to Rs.149.1 crores from Rs.95.7 crores in the prior year.Nine months ended December’08 Page | 28

The PAT for the period ended 31 December 2008 increased 23% to Rs.139.7 crores fromRs.114.1 crores for the period ended 31 December 2007 and PBT grew 17% to Rs.218.1 croresfrom Rs.186.0 crores.However, excluding exceptional items reported in the previous year, PAT increased by 40% andPBT by 32% over the corresponding period last year. NII grew 36% to Rs. 487.2 crores from Rs.357.9 crores and Fee & Other Income was up 43% to Rs. 400.6 crores from Rs. 279.6 crores inthe previous year.3.7 Business HighlightsTotal Deposits grew 25% to Rs. 22,401 crores as at end December 2008 from Rs.17,871 croresthe year before. Current and Savings (CASA) deposits rose 8% to Rs.5,819 crores as at endDecember 2008 from Rs. 5,406 crores as at end December 2007.Advances grew 19% to Rs.16,014 crores in December 2008 from Rs. 13,409 crores in December2007. Total Assets of the bank registered a 30% growth to Rs.29,050 crores. The Credit DepositRatio was at 71.5% in December 2008 against 75.0% in December 2007.The Gross NPA ratio and Net NPA ratio were at 1.84% and 1.09% respectively as at 31December 2008 compared to 1.81% and 0.71% respectively as at 31 December 2007. The networth of the Bank as at 31 December 2008 stood at Rs.1,568 crores compared to Rs. 1,459crores as at end December 2007 and the Capital Adequacy Ratio stood at 10.72% in December2008. In October 2008, the bank increased its capital through the issue of Tier 1 Perpetual debtamounting to approx. Rs.95 crores. Subsequent to the quarter end, the Bank raised anadditional Rs.200 crores of Upper Tier 2 capital which has been subscribed entirely by INGGroup.3.8 ING Vysya FOUNDATION (ING – CSR) Page | 29

World over ING has strengthened its name as a good corporate citizen. The ING Chances forChildren initiative (CFC) a global program in partnership with UNICEF is to educate 50,000underprivileged children in three countries, Ethiopia, India and Brazil by 2008. In India the focusis primarily in the districts of Dharampuri and Krishnagiri in Tamil Nadu. Through the nationalChild labor Elimination (NCLP) bridge schools, ING provides much needed support to UNICEF, tofund, monitor, and provide children with quality primary educationThe Indian arm of the Chances for Children programs is run by the support of ING businessunits in India (ING, ING Life Insurance and ING Investment Management) through the ING VysyaFoundation.The Foundation was set up almost 3 year ago and was actively involved in the post Tsunamirehabilitation of the victims. ING Group set up a dedicated Tsunami Support account. In India,the Foundation partnered with five NGO providing much needed financial support, fromrebuilding of schools to providing fishing boats, giving much needed hope to destroyed lives.The Indian chapter of CFC involves the partnership of the Foundation with 7 NGO working inprimary education. Not only does the Foundation provide much needed financial support tothese organizations but also runs strong voluntary programs giving the employees a chance tomeet the children, work with them and take ownership and responsibility for the vision of itspartners. The Foundation creates systems that ensure CSR activities within the organization.Various programs are initiated with the employees, whether it is taking 100 children for a dayout to the planetarium or watching a film with them. It collectively influences the culture of theorganization; and also provides the employees with an opportunity to contribute to the visionof the organizations CSR.Recently ING Vysya Foundation launched its initiative “Run Ricky Run”. In this initiative, forevery run Ricky makes the Foundation will sponsor one child to go to school through itsassociation with its NGO partner in Bangalore, SUKRUPA. Page | 30

Addressing health care, poverty or human rights issues, there is no better way than through thecorridors of education. The main focus of the Foundation in India is to support not for profitorganizations working in the area of education. Page | 31

DATA 4. INTERPRETATION AND ANALYSIS4.1 Comparative analysis of saving accounts: a. Basic Saving Accounts (Category C) Page | 32

PARTICULARS HDFC ICICI ING VysyaACCOUNT NAME Saving Regular Savings Orange Savings Account Account AccountAVERAGE QUATERLYBALANCE Rs10,000 Rs 10,000 Rs. 5,000AQB MAINTAINANCE Rs 750.00 per Rs 750.00 Rs 750.00 per quarter Only. per quarter quarter Only.CHARGES Only.SWEEP OUT FACILITY Available N.A Available 3 per monthFREE TRANSACTIONS from N.A Unlimited from SBI/Andhra any bank’s ATM Bank ATMTHIRD PARTY CASH N.A Rs.15,000 Rs.25,000 per dayWITHDRAWL/DEPOSIT per dayNET BANKING Free Free FreeMOBILE BANKING Free Free Free Page | 33

b. Preferred Saving Accounts (Category B) PARTICULARS HDFC ICICI ING Vysya Account name SAVING MAX GOLD FORMULA SAVING ACCOUNT PRIVILAGED ACCOUNT ACCOUNT AQB (Average 25,000 50,000 25,000 Quarterly Balance) Free DD Upto N.A. Upto 50,000/qat. 50,000/qat Third Party Cash Upto 15,000 N.A. Upto 25,000 Deposit Page | 34

Smart-serv N.A. N.A. Present Free Transaction 6 in a year N.A. Unlimited Direct 12 annual passes Special Features Bill Payments Preference of famous night from accounts rates on gold clubs and coins restaurants, across India Jump Que Facility Present N.A. Presentc. Privileged Saving Accounts (Category A) PARTICULARS HDFC ICICI ING Vysya Account Name Privileged Titanium Platina Platinum QAB (Quarterly 2,00,000 75,000 + TRV 1,00,000 Available Balance) of 5 to 10 lac DD/PO Wavier Available upto N.A. Available upto 50,000 50,000 Page | 35

PAP books Unlimited unlimited unlimited One Lakh Cash N.A. N.A. Available* withdrawal from any ATM Cash Back Offer on N.A. N.A. 1 to 2 % Shoping* Cashnet enabled N.A. N.A. Available credit/debit card4.2 FACTS AND PEOPLES’ PERCEPTION A) SAVING ACCOUNTS OF RESPONDENTS IN THE BANK Page | 36

As per the data collected and analyzed, most of the people in Dehradun have chosen ICICI Bankfor their banking. It is because ICICI was the first private banking player in the newly formedstate (U.K.) they hold the accounts of 51% of the respondents. Next rank comes to HDFC with31% of accounts. ING has captured 18% (speculative) of the market share within 6 months of itsestablishment in the State. Page | 37

B) KNOWLEDGE OF THE ACCOUNT AND SERVICES ASSOCIATED.C) QUARTERLY AVAILABLE BALANCE THAT HAS TO BE MAINTAINED Page | 38

It is the amount which one has to maintain for a single quarter. 45% of the respondent weremaintaining 5,000 rupees. 35% were maintaining nothing, 12% were holding 10,000 as theirQAB. And 8% were holding more than 10,000 rupees.Out of 45% of the respondents who maintain 5,000 rupees as their QAB, most of therespondents are having account in ICICI and ING Vysya bank. D) BANK PROVIDING SPECIAL FACILITY LIKE smart-serveSmart serv is type of special services in which a person can send/present gifts to any of his/herknown in any of the city by just telling your banker the address of the person. The gift will bepurchased and will be delivered by the bank only, and the amount for the gift will beautomatically deducted from the sender’s account.10% of the people who were really enjoying some of the special services provided by bankwere found to be associated with ING Vysya Bank. Page | 39

E) PEOPLES’ RATING: ACCORDING TO THEIR PERCEPTION51% of the people have rated ICICI Bank as 1st, this is because of wide market share of ICICIBank. 2nd Rank has been awarded to HDFC Bank by approximately 23% of respondents. 3rdrating is given to ING Vysya bank by approx. 15% of the respondents. And last comes AXIS Bank.Thus ING Vysya is better than AXIS and HDFC Bank in its Marketing Strategy. Page | 40

F) PEOPLE’S MOST FREQUENT POINTS OF INTERACTION WITH BANKAll of the bank customers interact most frequently with the bank by doing their transactionsfrom ATM. 35% of them visit branch quite often and 35% of the respondents also go for phonebanking. Internet Banking is the 2nd most point of interaction of bank and the customer. Peoplewho use Internet banking and mobile banking were found to be associated mainly with ICICIand ING Vysya Bank. ING Vysya is having best Internet banking attributes. This implies thetechnological advancement in Dehradun Citizens. Page | 41

G) PERCEPTION OF RESPONDENTS ABOUT THEIR BANK/S4 - Most/excellent 3- Reasonably good2- Fair 1- Disappointing 1. Most of the people who are associated with ING Vysya Bank found their Bank chargesquite nominal and well justified. About 97% of the ING Vysya customers state the same. EvenAXIS Bank is charging best rates of charges to its customers. ICICI customer agrees that theythink of getting better bank charges. 2. People have ranked ICICI at the top notch for its 12hrs. working hours 8 to 8. EvenING Vysya operates from 10 to 7, which is 2 hrs. more than HDFC and AXIS. Therefore INGVysya Bank has an edge over AXIS and HDFC as per working hours. Page | 42

3. 80% people have again rated ICICI as one of the best banks location wise. Its large no.of branches provides access to bank anywhere. As ING Vysya has got no other branch inUttrakhand it has been rated lowest as per most of the respondents and ING Vysya customers.According to respondents even AXIS and HDFC bank have no. of branches and are located at anaccessible location. 4- Most/excellent 3- Reasonably good 2- Fair 1- Disappointing/least 4. Almost all respondents who are in connection with ING Vysya Bank have rated it bestin the customer care services. 55% of the respondent who are associated with HDFC Bank haverated HDFC, reasonably good in customer care services. But customer of ICICI and AXIS Bankare not very much delighted with customer care services of their bank. This way ING Vysya hasgot an advantage of delivering excellent customer care services. 5. In case of “Behavior of the Staff” most of the ING Vysya customers have rated ING thebest. Almost 100% of the ING customers are well satisfied with their banker’s behavior. On theother hand 72% customers of ICICI bank and other respondents as well have ranked ICICI asvery disappointing as per behavior of the staff. Most of them stated that when they visitbranch, any of the employee there, hardly pays full attention towards them. Even some of thepreferred customers have to stay in a cue or have to wait for long to get their job done by the Page | 43

bank. HDFC and AXIS Bank has been rated reasonably good by the respondents as far asbehavior of the staff is concerned. 6. With the criteria of Variety of Accounts, people have rated ICICI as the top one. This isbecause ICICI is having bank accounts for the different customers with different needs. Theyhave account for old age citizen, pension account, kids account of various types and manymore. Whereas ING Vysya has been rated least, because they are operating with only 3 types ofsaving accounts in the city. They do have various other kinds of accounts but these are notavailable in Dehradun. This is probably due to very less time of their establishment. They arenot providing the full services because its been just 6 months that they have established inUttrakhand (DEHRADUN). 4- Most/excellent 3- Reasonably good 2- Fair 1- Disappointing 7. Most of the ING Vysya customers are happy with processing speed of their bankingtransactions. ING Vysya Bank boasts about delivering the commitment. According to the ING anaccount takes 5 days for activation. Page | 44

8. The queries handling is done very well by ING Vysya bank according to therespondents. 57% of the ICICI customers are unhappy with the bank regarding their querieshandling. Whereas AXIS Bank has been rated good. H) VARIABLES INFLUENCING ACCOUNT OPENING IN A PARTICULAR BANK. 1) I will prefer, if my friend recommends me to open an account in a particular bank. ( WORD OF MOUTH) According to the respondents, they mainly disagree for opening a bank account on their friend’s or relatives’ recommendation. And to 27% of the respondents it doesn’t matter. Very few people agree to the recommendation. This means that the WORD OF MOUTH Page | 45

is not an essential marketing channel for opening an account in bank. People first try to find the real facts by their own.2) I am very cautious about Average Quarterly Balance non-maintenance charge. (QAB) Many people are bothered about their QAB, and to 23% people QAB doesn’t mean much. According to them they were never charged for not keeping enough QAB. Page | 46

3) I am generally motivated by the television add for saving bank account. Most of the respondents were unaware of the new advertisements of various banks. For them it hardly plays any important role in capturing market share.4) I am generally bothered about the distance between my home and Page | 47

Most of the respondents were very much bothered about the distance from their bank andhome. That implies that PROXIMITY to bank is one of the very BOLD VARIABLE for accountopening. 5) I prefer saving bank account as it is popular. Page | 48

6) I give importance to DD and cheque facility in saving bank account.7) I give preference to instant alert, net banking and phone banking. Page | 49

8) I give importance to the third party cash deposits and withdrawal. Page | 50

Page | 51

5. OBSERVATIONS & RESULTSThe study conducted directs toward the Private Banking scenario in the city DEHRADUN. Studysuggested that a large market share has been captured by ICICI Bank and HDFC Bank. Out oftwo ICICI is enjoying the maximum market share. This is probably because of the reason thatICICI was the first private bank in the state as well as in city.Most of the people know about the account and services associated with it. Most of the peopleare maintaining 5,000 rupees as QAB in their private banking account, but most of them exceptING Vysya customer are unaware of the special facilities available.People have ranked ICICI bank as best in the city. This is may be due to the oldest persistence ofICICI bank in the city. They have rated HDFC as 3rd and ING Vysya as 2nd.Almost everyone comes in contact with their bank by the use of ATM machines. 80% of therespondents were using internet banking that implies high literacy rate in the city. Page | 52

People think that the staff of ICICI does not behave well with their customers but ING Vysyacustomers are glad with the staff of ING Vysya Bank. But on the other hand ICICI customers arevery happy with the working hours of ICICI bank. HDFC customers are a bit unhappy with theworking hours of their bank.People are very much bothered by the distance between their home and the bank. Theybelieve that this a major issue which influence the customer to open an account in any bank.Most of the people are not entertained by the television advertisements about various banks.Even word of mouth has not been proved as strong marketing channel about banking. It impliesthat for banking customer is looking at the commitment, real facts, distance between theirhome and bank, behavior of the banker, QAB and many more.SWOT ANALYSIS Strengths Weakness • ING as one on the biggest financial • Very few branches MNC. 7th in 500 fortune • Less variety of financial/banking • Only foreign bank which has acquired products an Indian private bank (Vysya Bank) • Location • Higher rate of interest than other private banks • Most of the financial plans are Page | 53

legalized under 80(ccc)• Top notch customer care and staff behavior• Unique features with different kinds of accounts• Working hours Opportunities Threats• New segment of doctors, students and • Presence of two top private banking CAs as they like innovation in their players in the market (ICICI & HDFC) financial needs and like to enjoy the • Large market share already captured services. • Non willingness of Dehradun citizens to• High class (upper strata) population of change for something new, or to try city innovation in their banking.• Increase in different kind of financial products• NGO and Public Relations 6.REFERENCES• www.ingvysyabank.com• www.icicibank.com• www.hdfcbank.com Page | 54

• www.moneycontrol.com• www.economictimes.com• www.blackle.com• www.wikipedia.com Page | 55

7.APPENDIXQuestionnaire Page | 56

Comparative analysis of saving bank accounts of different private sector banksDear respondent, We are conducting a research to know the general perception and attitude of customertowards the products & services that are offered by ING Vysya Bank & other privatebanks (ICICI & HDFC) in Dehradun. The information will be valuable input for theresearch and we assure you that the information will be kept confidential. We hope thatyou will co-ordinate with us and give quite a few minutes from your precious time andgive the genuine answer.Personal Details:-Name:-Gender :- M FAge:-Address:-Occupation:- Service Professional Businessman Others (Please Specify)…………..Educational Qualification:- Under Graduate Graduate Post graduatePhone no.(Optional):- Page | 57

Annual Income:- Below 1 Lac 1 Lac – 3 Lac 3 Lac - 5 Lac Above 5 Lac 1) Do you have a saving account in any of the Private banks in Dehradun ? a) Yes b) No 2) In which of the following banks do you have saving bank account? 1. ING Vysya Bank 2. ICICI Bank 4. Any Other Bank 3. HDFC Bank (Please Specify…………………………) 3) Do you have complete knowledge of the saving account and services associated with that account you have? a) Yes b) No c) Can’t say Page | 58

4) Are you a preferred/privileged customer of your bank? a) Yes b) No5) How much Quarterly Available Balance (QAB) you need to maintain? a. Nil b. 5,000 c. 10,000 d. More than above6) Does your Bank provides you some special services like, smart serv, mi-banking? a. Yes b. No7) Please rate the following banks on the scale of 4 where 1is the least and 4 is the most according to your perception you are having for reputation of the banks. ING Vysya Bank ICICI Bank HDFC Bank Axis Bank8) What is your most frequent point of interaction with the bank? Page | 59

• Visit Branch • ATM • Phone Banking • Drop Box • Internet Banking • Mobile Banking 9) Please rate the following banks on the basis of your perception about the given attributes out of 4, where 1 is the least/disappointing and 4 is the most/excellent ING Vysya HDFCS.NO ATTRIBUTES Bank ICICI Bank Bank Axis Bank 1. Bank charges 2. Customer care 3. Variety of saving bank account 4. Behavior of the staff 5. Working Hours 6. Location 7. Personalized attention 8. Processing Speed 9. Grievance/queries handling Page | 60

10) Please rate the following variables which influence you when it comes to open an account on the scale of 1 to 5 where 1 is strongly disagree and 5 is strongly agree. SRONGLY STRONGLYSL NO STATEMENTS DISAGREE…………………………… AGREE 1 2 3 4 5 I will prefer, if my friend recommends me to open 1 an account in a particular bank. I am very cautious about Average Quarterly 2 Balance non-maintenance charge. I am generally motivated by the television add for 3 saving bank account. I m generally bothered about the distance 4 between my home and the Bank. 5 I prefer saving bank account as it is popular. 6 I give importance to DD and cheque facility in Page | 61

saving bank account. I give preference to instant alert, net-banking,7 phone banking, and mobile banking. I give importance to the third party cash deposits8 and withdrawal. Any other suggestions regarding the bank please mention:- …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………. Tthank you for your cooperation for devoting your valuable time and sharing the valuable information with us which will help us to complete our project successfully. Place………………… Date…………………….. Signature of the respondent Page | 62

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