project wid porter

8/10/2019 Project Wid Porter

1/50

CHAPTER - 1

PROFILE OF THE COMPANY

1.1 Company Overview

ING Vysya Bank Ltd is a premier private sector bank with retail, private and

wholesale banking platforms that serves over two million customers. With over 80

years of history in India and leveraging INGs global financial expertise, the bank

offers a broad range of innovative and established products and services, across its

547 branches. The Bank, which has close to 10,000 employees, is also listed in

Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

ING Vysya Bank was ranked among top 5 Most Trusted Brands among private sector

banks in India in the Economic Times Brand EquityNielsen survey 2011.

The bank was formessdd from the 2002 acquisition of an equity stake in Indian Vysya

Bank by the Dutch ING Group. This merger marked the first between an Indian bank

and a foreign bank. Prior to this transaction, Vysya Bank had a seven-year old

strategic alliance with erstwhile Belgian bank Banque Bruxelles Lambert, which was

also acquired by ING Group in 1998.

1.2 About ING Group

BANK WITH ING,

JIYO EASY!

ING is a global financial institution of Dutch origin, offering banking, investments,

life insurance and retirement services to meet the needs of a broad customer base.

With more than 82,000 employees, ING serves over 61 million private, corporate and

institutional customers in over 40 countries in Europe, North America and Latin

America, Asia and Australia. The bank draw on its experience and expertise, its


2/50

commitment to excellent service and its global scale to meet the needs of a broad

customer base, comprising individuals, families, small, businesses, large corporations,

institutions and governments.

1.3 COMPANY PROFILE OF ING VYSYA BANK

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

1930:- Set up in Bangalore1948 Scheduled Bank

1985:- Largest Private Sector Bank

1987:- The Vysya Bank Leasing Ltd. Commenced

1988:- Pioneered the concept of Co branding of Credit Cards

1990:- Promoted Vysya Bank Housing Finance Ltd.

1992:- Deposits cross Rs.1000 crores

1993:- Number of Branches crossed 3001996 Signs Strategic Alliance with BBL., Belgium.

Two National Awards by Gem &Jewellery Export Promotion Council for excellent

performance in Export Promotion

1998:- Cash Management Services, & commissioning of VSAT. Golden Peacock

Award for the best HR Practices by Institute of Directors. Rated as Best Domestic

Bank in India by Global Finance (International Financial Journal - June 1998)

2000:- State -of - the -art Date Centre at ITPL, Bangalore. RBI clears setting up of ing

vysya Life Insurance Company 2001 ING-Vysya commenced life insurance business.

2002:- The Bank launched a range of products & services like the Vys Vyapar Plus,

the range of loan schemes for traders, ATM services, Smart services, 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. ING takes over the Management of the Bank from October 7th , 2002 RBI


3/50

clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter

of 17.12.2003 Introduced customer friendly products like Orange Savings,

Orange Current and Protected Home Loans

2004:- Introduced Protected Home Loans - a housing loan product

2005:- Introduced Solo my Own Account for youth and Customer Service Line Phone

Banking Service

2006:- Bank has networked all the branches to facilitate AAA transactions i.e.

Anywhere, Anytime & Anyhow Banking Later years up to 2011 is a diversified financial

services Group that provides a range of banking and financial services to customers,

including retail banking, project and corporate finance, working capital finance,

insurance, venture capital and private equity, investment banking, broking treasury

products and services.

The company operates in, India, the UK, Canada, and Russia and in 60 other

countries. It is head quartered in Amsterdam, Netherlands and employs about 1,

10,000 people worldwide.

1.4 Contact Us:

ING Vysya Bank Limited

Regd. Office: ING Vysya House, 22,

MG Road, Bengaluru560001

Phone No: 2500 5000

Corporate Identity Number: L85110KA1930PLC000124


4/50

1.5 LEADERSHIP OF ING VYSYA BANK

List of executive Management Council (updated as of 14.03.14)

Table No1: Leadership of the ING VYSYA BANK

Names Designation

Shailendra Bhandari,Chairman Managing Director & CEO

Jayant Mehrotra Chief Financial Officer

J M Prasad Chief-Human Resources

Brett Morgan Country Head-Branch Banking,Marketing & Private Clients

Mahesh Dayani Country Head-Retail Assets

Susan Poot Chief Risk Officer and Chief Compliance Officer

B.Ashok Rao Chief Auditor

Meenakshi A Head-Operations

Aniruddha Paul Chief Information Officer


5/50

1.6 CURRENT OPERATIONS OF ING VYSYA BANK

ING Vysya Bank has competed in the banking/financial services and insurance

markets for over 80 years and currently serves over 2 million Indian consumers. The

bank markets an entire range of financial products and services, organised under four

strategic lines of business: retail, private, wholesale banking ad agricultural banking.

a) Retail banking :

With 547 branches and 10 counters, 28 satellite offices and 470 ATM's

nationwide, ING Vysya's retail operation offers checking accounts, savings

deposits/CD's, retail wealth management services, consumer loans,

agricultural/rural banking and retail life insurance products. The bank has rapidly

expanded its distribution footprint and has created a national brand presence

through several innovative marketing campaigns.

b) Private banking :

ING Vysya's private bank operates on an advisory-driven model. Specialized

market research remains the bank's focus for the introduction of new tailored

products to serve the high-end private banking segment.

c) Corporate/wholesale banking :

The wholesale banking business provides corporate clients in India a range of

commercial, transactional and electronic banking products. The bank offers client

focused products including working capital finance, trade and transactional

services, foreign exchange, term loans and cash management services. The

wholesale banking business comprises four business sub-segments and multiple


6/50

product offerings. The business segments Corporate and Investment Banking,

Emerging Corporate, Banking and Financial Institutions and financial markets.

d) Agriculture and rural banking :

Agriculture and Rural Banking deals with all business related to agriculture and

allied activities, Gold Loans, loans to SHGs and lending to government sponsored

schemes. Working Capital and Agriculture Term Loans for Poultry, Dairy, Cold

storage units etc. are also being offered to cater diverse needs of the farming

community. The Bank has accelerated retail agricultural lending at a few places in

North India and Central India especially in Rajasthan, Uttarakhand, Maharashtra,

Gujarat and Madhya Pradesh.

1.7 ING Vysya Mobile App

ING Vysya bank's mobile app helps customers to check the balance and much more

than a conventional mobile app by simply downloading this app in their cell phones.

With the help of this app customers need not to go to the bank all the time for

checking their balance in their account.

1.8 ING Vysya Banks Financial Inclusion Initiatives:

Rural India accounts for roughly 70% of the population located in 6, 37,000 villages

across the country. Out of the 89.30 million farmer households 45.9 million do not

have access to credit either from the institutional or non institutional sources (NSSO

2008). Though the banking industry has shown tremendous growth during the last few

decades in all areas relating to financial viability, profitability and competiveness,

there are concerns that banks have not been able to include certain segments of the


7/50


8/50

ING VYSYA bank has been associated with Basaveswara Vidya Vardhaka Sangha, a

registered Society with over 100 years of existence. Sangha has a chain of institutes

numbering over 120 covering all fields of education and established RUDSETI at

Bagalkot with objective to identify, orient, train, counsel, assist young people and to

motivate and empower them to take up self-employment venture by providing all the

needed assistance. Since inception 13000 candidates have been trained, out of which

8000 were women and 10,000 candidates were settled / linked with finance by various

banks in the district.

Bank has also devised various products for financial inclusion, namely

a) General credit Card Scheme.

b) DIR scheme.

c) Self Help Group (SHG) finance.

d) Kisan Credit Card

e) Zero Balance No Frill Accounts with OD facility

f)

BC No Frill Accounts ( Payment to NREGP/SSP Beneficiaries)

Bank has adopted the Business Correspondent Model for extending the services in

rural areas and deepening financial inclusion in the unbanked areas in AP and

Karnataka State. Presently bank has two BCs for disbursing amounts to NREGP &

SSP beneficiaries. The achievements so far in this regard are :

a) Enrolled over 130446 beneficiaries.

b) Opened over 99631 accounts.

c)

Issued 99631 Smart Cards.

d)

Disbursed Rs. 26 Crs. to 36148 beneficiaries in AP.


9/50

1.9 OTHER INITIATIVES:

The Bank has its Competence Development Centre at Bangalore, where importance of

Financial Inclusion is emphasized in all other Training programmes held. The Bank

also proposes to roll out a separate Module on Financial Inclusion. Banks Financial

Inclusion Plan (FIP) and the list of villages taken up for providing banking services

are displayed separately.

1.10 Product launch: New milestone rewards with ING Vysya debit

cards:

ING Vysya Bank and MasterCard today announced the launch of ING MasterCard

Premium Debit Cards. Unlike other debit cards in the market this card comes with

reward points based on spend-milestones. While using debit cards for shopping is an

increasing trend in India, redemption of rewards points isn't. "Indian customers are

using their debit cards to shop, debit spends are increasing by 38 percent. Surprisingly

however, Indian customers redeem only 18 percent of their reward points," said

Shailendra Bhandari, MD and CEO, ING Vysya Bank.This is primarily due to the

way most reward points programmes work, where a certain number of points have to

be accumulated, at times with certain tie-up merchants. They also come with expiry

dates.

1.10.1 How this works:

Under the spend-milestone-based system, you need to spend a certain amount for two

years, after which you could choose the reward from a number of choices the banks

offers. For instance, you should spend Rs 2 lakh (Rs 7,500 a month), Rs 4 lakh

(15,000 a month) or Rs 6 lakh (25,000 a month) over two years with debit card. These


10/50


11/50

c) Zing saving account

d) Zwipe saving account

e) Basic saving bank deposit

f) Senior saving account

B) CURRENT ACCOUNTS:

a) General current account

b)

Comfort current account

c)

Advantage current account

d)

Flexi current account

e) Orange current account

f) Institutional current account

g) Platina current account

C) DEMAT ACCOUNTS

D) TERM DEPOSITS

E) DEBIT CARDS

F) CREDIT CARDS

G) FOREX SERVICES

H) CORPORATE SALARY ACCOUNT

I) INSTITUTIONAL ACCOUNTS

J) LOCKERS

1.13 SIZE OF THE ING VYSYA BANK:

a) In ING Vysya bank, there are 10059 employees who are working. The total

number of branches of the bank is 557 and total number of ATM of the bank is

405 .The total number of extension counters are 10.


12/50

b) The turnover of the bank for the year 2013-2014 is INR 5588 crores (US$9.1

billion).This is the latest data of the bank which is reflected by 83rd annual

report of ING Vysya bank for the year ended 2013-2014.

1.14 ORGANISATION STRUCTURE OF ING VYSYA BANK:

Figure - 1


13/50

1.14 Source of Data Collection:

a) Primary Data

Primary data has been collected, by Employee Survey through detailed and

structured questionnaire. Primary data has also been gathered through Personal

interaction with employees.

b) Secondary Data

Secondary data has been collected through internet; information has also been

gathered from the companys Website. Other internal information that was

relevant for the project has been collected through the Employee Handbook of the

company. Annual Reports of the company has also been used to gather the

relevant information for the project.


14/50

CHAPTER2

SWOT ANALYSIS OF THE BANK

SWOT helps a company to set itself for better and for worse. SWOTs are a means by

which a bank can better understand what it does very well and where its shortcomings

are:-

2.1 STRENGTHS

a) Instant Pre-generated Kit (includes Debit card, cheque book and Net Banking

PIN).

b) ATM pin number security.

c) Co- operative Staff.

d) Personalized Services / Door step facilities.

e)

Cash access services till 5:30pm.

f)

Locker facility.

g) ING Life Foundation (Social Responsibility).

h) Experienced Management Team.

i) On-spot solution for any grievances of employees.

2.2 WEAKNESS

a) Branch is in residential area and hence not-so-easy access to corporate,

whereas the same is turned into an opportunity by providing the door step

services to the corporate like cheque pick up/cash pick up and dedicated

relationship managers.

b)

Less promotional Activities/Advertising


15/50

c) Parking Inconvenience.

d) Bank has limited branches, which are not sufficient to fulfill customer needs.

e) Very limited branches in north India.

2.3 OPPORTUNITIES

a) Offer home loans and other consumer asset products to make it a complete

product offering.

b)

Acquisition of accounts of existing employees of its competitors.

c)

The weekend Training in terms of analysis (causes of unclosed calls) and

future plans.

d) Growth in banking sector is one of the added advantages to increase their

business.

e) People are more service oriented, where bank can capture the advantage.

f) Venture into the untapped markets by setting up new branches in various cities

2.4 THREAT:

a) High level of competition.

b) A competitor has a new innovative product or service.

c) Fluctuation in monetary policy.

d) Some of the bank provides same benefits without charging fee.


16/50

2.5 Porters Five Forces

Figure - 2

A. Power of Suppliers:

The power of suppliers is from low to medium. There are very few suppliers of

particular product categories. There are almost no substitutes in some product

categories. Switching to another (competitive) product is very costly. He supplying

industry has a higher profitability than the buying industry.

B. Power of Buyers:

The power of buyers is from Medium to High. As there are Large number of buyers

who purchase large volumes .There Concentration Ratio is medium being


17/50

international .Information is easily available to the customer .Switching to another

(competitive) product is simple .The product is very important to buyers .Customers

are price sensitive

C. Threat of New Entrants:

The degree of threat of threat of new entrant is from low to high (exceptions).As there

are existing loyalty to major brands in the market. Huge amount of Investments is

involved. This may lead to generation of High fixed costs. Other factors include

Scarcity of resources, High costs of switching companies and Government restrictions

or legislation. There is virtually no chance of a new entrant significantly affecting the

major banks' market share. The only place that new entrants may have a chance in the

industry is through Internet banking, because of its low cost.

D.Threat of Substitutes:

The degree ranges from Low to medium. This one is pretty straight forward, for there

are plenty of substitutes in the banking industry. Most large banking companies offer

similar suites of services. Whether it is auto, home, commercial, health or life

insurance, chances are there are competitors that can offer similar services.

Companies focusing on niche areas usually have a competitive advantage, but this

advantage depends entirely on the size of the niche and on whether there are any

barriers preventing other firms from entering. If substitutes are similar, it can be

viewed in the same light as a new entrant. This is not really an issue within the

banking industry, because there aren't really any legal alternatives, except buying a

safe and borrowing from a loan shark


18/50

E. Competitive Rivalry in an Industry:

A highly competitive market might result from many players of about the same size;

there is no dominant bank, little differentiation between competitors products and

services, a mature industry with very little growth; banks can only grow by stealing

customers away from competitors, Technologically Advanced companies and

Introduction of new products by competitors. The banking industry is continuing to

restructure and position itself for our changing economy as a result, many mega-

mergers have occurred in recent years. Larger companies prefer to take over or merge

with other companies rather than spend the money to market and advertise to people.


19/50


20/50

c) Marketing Manager

d) Product Manager

e) E-channel manager

f) Content Manager

3.1.1 Policy of bank on Collection of Cheques:

a) Service Charge :

This is one of the policy which states that for all collection services, the bank will

recover appropriate service charges as decided by the bank from time to time and

communicated to customer as indicated in the code of banks commitment to

customers adopted by the bank.

b) Force Majeure :

The bank shall not be liable to compensate customers under this policy for the

delayed credits if some unforeseen event (including but not limited to civil

commotion, sabotage, accident, fires, natural disasters or other Acts of God,

war, damage to the banks facilities or of its correspondent banks), absence of the

usual means of communication or all types of transportation, etc. beyond the

control of the bank prevents it from performing its obligations within the specified

service delivery parameters.

c) Credit Cards :

Under this policy, when bank had issued and activated a credit card without

written consent of the recipient, the bank would not only reverse the charges

debited to the account of the customer immediately but also pay without demur to

the recipient of the card, a penalty being twice the value of charges reversed.

Operation of the credit card account shall be in accordance with the ING credit


21/50

card terms and conditions. In particular, the cardholder is responsible for all the

transaction approved on his/her credit card prior to report of the loss to the bank as

per the ING credit card terms and conditions. The bank reserves the right to

honour, refer or decline any transaction on the credit card, at its sole discretion

and without assigning any reason whatsoever. Transactions reported as erroneous

by customer in respect credit card operations, which requires specific reference to

a merchant establishment will be handled as per charge back rules laid down by

VISA/MasterCard International. The bank will provide explanation and if

necessary, documentary evidence to the customer within a maximum period of

sixty days.

3.1.2 CRM POLICY:

At ING Vysya Bank Limited (IVBL), Bank recognizes the importance of protecting

the confidentiality and security of any personal information that bank obtain from

visitors of this web site. Bank is strongly committed to safeguarding its customers

privacy online and have established the following privacy policy that will apply to

customer, as a visitor of the site:

a) Customers are not required to provide any personal information on the website

unless customer chooses to do so. By submitting their personal information

and pressing the 'submit' button, their consent to the content of this Privacy

Policy and accept the conditions set out there itself.

b)

Bank does not sell or rent personal information.

c)

Employees may not discuss the business affairs of any client with any other

employee, except on a strict need-to-know basis.


22/50

d) Bank does not release client information, except upon a client's authorization

or when permitted or required by law.

e) Bank will not sell their personal information to any third parties. Bank will

only share the information with such third parties if and to the extent required

by law or for regulatory purposes.

f) If the User has not attained 18 years of age, bank does not encourage them to

use the service or submit any personal information. Out of special concern for

minor's privacy, IVBL does not accept personal information from persons who

are stated to be under the age of 18.

g) IVBL does not control the information collection of sites that can be reached

through links from this or any site controlled by IVBL. If customers have

questions about the data collection procedures or privacy policy of linked

sites, please contact those sites directly.

h) IVBL reserves the right to add, amend, revise, or suspend the privacy policy

from time to time.

3.2HUMAN RESOURCE

Human Resources business line consists of 20+ professionals and operates from

offices in The Hague, Brussels and Poland, and is divided into three key areas of

discipline are expert centres, HR mid office and HR consultancy. Besides this, each

Business Line has its dedicated HR Account Team comprising of:

a) Principal HR Consultant / Senior HR Consultant

b) HR Consultant (if applicable)

c) HR Mid Office

d)

Recruiter


23/50

e) Recruitment Mid Office

It is there mission to be a trusted and engaged team of HR specialists, partnering with

the business in obtaining ING objectives and it is there vision that they are a engaged

and best-in-class HR team respected for there independent thinking and pro-actively

enabling the business in obtaining ING objectives.

3.2.1 Policy On Grievance Redressal

Todays dynamic business scenario makes it necessary to have a strong focus on

Customer service to retain customers loyalty for sustained growth. ING Vysya Bank

realizes that this is possible only when there is a genuine desire to serve the

customers. Hence bank has a policy for grievance redressal based on the following

principles:

a) Customers are treated fairly at all times.

b) Complaints raised by customers are dealt with, courtesy and on time.

c)

Customers are fully informed of avenues to escalate their

complaints/grievances within the organization and their rights to alternative

remedies, if they are not fully satisfied with the response of the bank to their

complaints.

d) ING Vysya Bank will treat all complaints efficiently and fairly as they can

damage the banks reputation and business if handled otherwise.

e) Bank employees will work in good faith and without prejudice in the interests

of the customer. The policy document would be made available at all

branches.

f)

The concerned employees are aware about the complaint handling process.


24/50

The customer complaint arises due to the attitudinal aspects in dealing with

customers. Inadequacy of the functions / arrangements made available to the

customers or gaps in standards of services expected and actual service rendered. Bank

aim is to provide the best customer service. Branch Manager is responsible for the

resolution of complaints / grievances in respect of customers service by the branch.

He would be responsible for ensuring closure of all complaints received at the branch.

It is his foremost duty to see that the complaint should be resolved completely to the

customers satisfaction .

However, if the customer is not satisfied with resolution given by the Branch

Manager, he can reach bank at any of the following access channels:

A) Customer Service Line / Call Centre :

a) Customers can contact bank customer care officers through phone / Toll free

numbers for redressal of their grievance.

b) Customers can also call them at 1-800-420-9900 and 1-800-425-9900 from

across the country about account details or any other information, effortlessly

and fast.

c) From overseas they can reach bank through 0091 1800 425 9900 and 0091

1800 425 9900.

d) Apart from the above toll free number customer can contact the bank on the

number which are provided on website, 24*7.

B) Branch:

Customers can walk into any of the ING Vysya Bank Branches and speak with the

Branch officials or give written complaints for resolution of their issues.


25/50

C) Email / website:

For all the complaints, consumer can write on website of the bank which is

[email protected]

D) Customers may send a letter to:

Customer Care Unit, ING Vysya Bank Ltd, ING Vysya House, No. 22 MG Road,

Bangalore 560 001 Code of Banks Commitment to customers / Fair Practice Code of

the bank are available in bank website www.ingvysyabank.com.

3.2.2 BANKERS FAIR PRACTICE CODE (BFPC)

The Bankers Fair Practice Code of Indian Banks Association has been implemented

in the bank. The Code sets out fair banking practices to be followed by banks while

dealing with individual customers. It also provides its customers valuable guidance

for day-to-day operations.

The bank recognizes that customer expectation / requirements / grievances can be

better appreciated through personal interaction with customers by banks staff.

Structured customer meets, once in a month, are conducted since the bank cares and

values customer feedback / suggestions for improvement in customer service. Many

of the complaints arise on account of lack of awareness among customers about

banks services and such interactions will help the customers appreciate banking

services better. As for the bank, feedback from the customers would be a valuable

input for revising its product and services to meet customer requirements.


26/50

3.3PRODUCTION AND OPERATION

The operations department of the Bank is responsible for coordinating with other

departments, i.e. marketing, human resources and accounts department to ensure

smooth and efficient functioning. The operations department is responsible for

regulation and circulation of the work done in the Bank.

Operations is accountable for all tasks necessary to manage and account for

investments:

a) It Act as a liaison between the Front-Office and the Back-Office in order to

streamline and avoid any disruption to the investment value chain.

b)

It also provides the business with a standardized, comprehensive and scalable

operations processing capability that streamlines the industrialization of

securities and cash transactions processing, asset servicing and reconciliations.

c) Industrializing the accounting and administration activities.

d)

Centralizing all reporting requirements and activities.

The department consists of 75+ professionals divided over the following teams:

a) Middle Office

b) Operations Processing

c) Third Party Accounting

d)

Third Party Reporting

e)

Information & Demand Management

The Board and the Senior Management of the Bank are kept informed about the key

Operational Risk issues on a regular basis. For effective management of the

Operational Risk, Operational Risk Committees have been formed at Country level

and Business Line level. The Country Operational Risk Committee meets on a

quarterly basis and the Business Line Operational Risk Committees meet on a


27/50

monthly basis to discuss and take effective actions for operational risk issues.

Business managers are actively involved in operational risk management through

participation in Risk and Control Self assessments and implementing necessary

mitigation through product, process and system design.

3.4 FINANCE

The Finance business line has the role of supporting decision making by providing

timely, correct and objective (financial) information. The business line consists of

60+ a professional based in The Hague and is divided into 4 functions:

a) Finance Europe: responsible for accounting and reporting and managing,

supporting and executing the financial steering of ING IM Europe in the

broadest sense.

b) Proprietary Finance Management: responsible for Financial and

Management Accounting of the assets under management of the Insurance

companies in Europe.

c) Guidelines & Procedures: responsible for supporting Finance by issuing

policies on the basis of external accounting regulation and the ING accounting

manual and providing ING IM with tailor made solutions.

d) Project & Change Management: responsible for Finance projects, change

and technical support.

The various financial positions are:

a) Financial Accountant

b) Management Accountant

c) Accounting & Reporting Specialist

d)

Business Analyst


28/50

3.4.1 Financial and Business Performance:

a) For the year ended 31 March 2014, the Bank posted a net profit of ` 657.85

Crore compared to ` 612.96 Crore for 2012-13.

b) The pre-tax profit improved to ` 977.76 Crore compared to ` 901.44 Crore

during the Previous year.

c) The Net Interest Income for the year 2013-14 increased to ` 1,753.15 Crore

registering an increase of 13.94 %.

d)

The aggregate business of the Bank reached ` 77,045.62 Crore as at 31 March

2014 compared to ` 73,106.02 Crore as at 31 March 2013.

e) The Net Advances increased to ` 35,828.85 Crore for the year ended 31 March

2014 from ` 31,772.03 Crore at the end of the Previous year recording a

growth of 12.77%.

f) The Total Deposits of the Bank stood at ` 41,216.77 Crore as at 31 March

2014.

g)

As against a regulatory target of 40% of Adjusted Net Bank Credit for Priroity

sector lending, the Bank achieved 40.70% as of 31 March 2014, having

achieved 38.16% as of 31 March 2013.

h) Export advances increased to ` 2,257.50 Crores from ` 1,930.90 Crores at the

end of the previous year.

i) The outstanding credit to Scheduled Castes/Scheduled Tribe borrowers stood

at ` 209.26 crore and the percentage of recovery to demand as of 31 March

2014 was 52.60 % (Previous year 30.45 %) of the amounts fallen due.

j)

The Net NPA Ratio as of 31 March 2014 is 0.28% as against 0.03 % as of 31

March 2013.


29/50

3.4.2 BALANCE SHEET

Table No2 : Balance Sheet Of the Bank for the year (2013 -2014)


30/50

3.4.3 P & L ACCOUNT FOR THE YEAR (2013-2014)

Table No3 : P& L A/C for the year ended 31 st march 2014


31/50

3.4.4 CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH

2014

Table No4 : Cash Flow Statement


32/50

3.4.5 ANNUAL REPORT ANALYSIS

RATIO

ANALYSIS 2007 2008 2009 2010 2011 2012 2013

Return on

Capital

employed(%)

94.51 83.65 98.93 100.14 117.95 118.047 124.384

Return on

Net Worth

(%)

-5.65 1.11 9.36 11 11.84 12.213 14.612

Return on

Assets-0.25 0.05 0.46 0.61 0.59 0.664 0.788

AssetTurnover

Ratio

1.53 1.95 2.26 2.81 3.61 3.938 4.44

Current

Ratio0.05 0.04 0.05 0.04 0.07 0.089 0.102

Quick Ratio 9.32 8.98 7.14 7.94 6.57 6.082 5.374

Table No5: Annual Report Analysis

A. Return on Capital Employed (ROCE):

Capital employed refers to the long-term funds invested by the creditors and the

owners of a firm In case of ING Vysya Bank the ROCE declined initially in the year

2008 as compared to 2007. This decline might be because of rise in capital by almost

300%. Thereafter the ROCE has been increasing for the bank from the year 2009 till

2011 by 18.26% in the year 2008, 1.22% in the year 2010 and by 17.78% in the year

2011. According to the calculations for the year 2012 and 2013 the ROCE will keep

on increasing by 0.08% in the year 2012 and by 5.36% in the year 2013.

B. Return on Assets (ROA):

Return on Assets is an indicator of how profitable a company is relative to its total

assets. It is calculated by dividing a company's annual earnings by its total assets. The


33/50

Return on Assets ratio of ING Vysya Bank was negative for the year 2007 because of

net loss, however thereafter this ratio has been increasing. It increased by 743% from

the year 2008 to 2009, by 17.52% in the year 2010 and by 7.7% in the year 2011.

According to the future projections also the ratio will increase by 3.15% in the year

2012 as compared to 2011 and by 19.64% in the year 2013.

C. Asset Turnover Ratio:

This ratio is useful to determine the amount of sales that are generated from each

rupee of assets. Companies with low profit margins tend to have high asset turnover,

those with high profit margins have low asset turnover. ING Vysya Banks Asset

Turnover Ratio has been increasing showing that the company is utilizing its assets

very well. The ratio increased by 27.45% from the year 2007 to 2008, by 15.89% in

the year 2009, by 24.34% in the year 2010 and by 28.47% in the year 2011.

According to the calculations for the year 2012 and 2013 also this ratio is expected to

increase further by 9.08% in the year 2014 and by 12.74% in the year 2013.

D. Current Ratio:

The ratio is mainly used to give an idea of the company's ability to pay back its short-

term liabilities (debt and payables) with its short-term assets (cash, inventory,

receivables). In the present case of ING Vysya Bank its current ratio has remained

under 1 from the year 2007-2011 and according to the future projections also this ratio

is not exceeding 1 which might not be a good sign for the company.

E. Quick Ratio:

The quick ratio measures a company's ability to meet its short-term obligations

with its most liquid assets. The higher the quick ratio, the better the position of


34/50

the company. In case of ING Vysya Bank the quick ratio of the company has been

declining from the year 2007-2011 and will further decline as per the projections

which again might not be a good sign for the company.

3.5INFORMATION TECHNOLOGY

This area include finding Solution for problems and then implemented them in SAP

Business Objects. This system of Ing Vysya bank covers decision support system,

online analytical processing, querying and reporting which is used by top

management, information technology ,marketing ,sales and operation control

Management team.

3.5.1 Benefits delivered by information technology

The implementation of SAP Business Objects at ING Vysya Bank, almost 2,200

reports are auto scheduled in a month. The number of auto-scheduled unique reports

is 341 (341 X frequency = 2,200). Prior to implementation, a 10-member team in

centralized MIS unit prepared and published around 1,000 reports. The count of

unique reports was 214.With accurate and timely reporting, senior management team

at ING Vysya Bank is able to focus on key performance indicators for improved

decision making.

The IT Service Management Group (ITSMG) is the technology unit responsible for

the Banks IT strategy and execution. ITSMGs responsibilities extend from

conceptualizing technology strategy in harmony with business strategy, to running

day to day operations at the workplace and data centres. ITSMG plays an active role

in not just running efficient operations, but also in assisting business in winning at the

marketplace, true to its mission To be a strategic business partner based on service

excellence through technical leadership in a secure and cost effective manner.
http://searchbusinessintelligence.techtarget.in/news/2240032791/Business-intelligence-implementation-best-practiceshttp://searchbusinessintelligence.techtarget.in/news/2240032791/Business-intelligence-implementation-best-practices


35/50

3.6 INTERNATIONAL BUSINESS

International Clients Group (ICG) ICG is a separate group to provide greater focus to

servicing there multinational clients who have operations in India. The ICG currently

services over 350 clients. This has enabled the Bank to bring seamless servicing

capability, thus helping its global clients in their business in India. This group benefits

from the global reach of INGs network, which helps it in gaining access to INGs

core clients. While the whole range of the banks products is available to International

Clients, a key focus for ICG is to be the main transactional banker to our clients

resulting in being a stable source of liabilities and significant fee income. The

business is currently present in 6 major cities.

Foreign Exchange Services of ing Vysya bank:

The Bank would not compensate the customer for delays in collection of cheques

designated in foreign currencies, sent to foreign countries as the bank would not be

able to ensure timely credit from overseas bank. It is the banks experience that time

for collection of instruments drawn on banks in foreign countries differ from country

to country and even within a country, from place to place. The time norms for return

of instruments cleared provisionally also vary from country to country. However, the

bank will compensate the customer for undue delays in affording credit once proceeds

are credited to the Account of the bank with its correspondent.

The compensation will be worked out as under:

a) Interest for the delay in crediting proceeds as indicated in the collection policy of

the bank. In case of extraordinary delay interest will be paid at the rate of 2% over the

corresponding term deposit rate.

b) Compensation for any loss on account of adverse movement in foreign exchange

rate during the delayed period.


36/50

B. DATA PRESENTATION

ANALYSIS FROM MARKETING DEPARTMENT:

3.21 MARKETING DEPARTMENT

Table6 : Current Bank Users

INTERPRETATION :

From the above table, it can infered that maximum of the customers used ING Vysya

Bank as their current bank. 13.8% of the respondents use ING Vysya Bank for their

banking needs. This is followed by State Bank of India and ICICI Bank with 12% of

the respondents using it as their primary bank currently. HDFC Bank is the third most

widely used bank with 11.1% respondents using its services. This is followed by Axis

Current Bank

2

11

12

13

2

4

1

4

9

2

15

13

3

1

3

1 1 1 1

2

3

1 1

2

0

2

4

6

8

10

12

14

16

1

Bank of Baroda

Axis Bank

HDFC Bank

ICICI Bank

IDBI Bank

Allahabad Bank

Canara Bank

Oriental Bank of Commerce

Punjab National Bank

Kotak Mahindra

ING Vysya

State Bank of India

Union Bank of India

Standard Chartered Bank

Punjab & Sind Bank

Vijaya Bank

HSBC

Citibank

J&K Bank

Indian Bank

Syndicate Bank

UCO Bank

Corporation Bank

State Bank of Bikaner


37/50

Bank with 10.1% using it. Punjab National Bank has 8.33% Allahabad Bank and

Oriental Bank of Commerce have 3.7% respondents each using its services. Syndicate

Bank, Punjab & Sind Bank and Union Bank of India have 2.78% respondents each in

their share. Banks like State Bank of Bikaner, Indian Bank, Kotak Mahindra, IDBI

and Bank of Baroda have 1.85% respondents each using it. Canara Bank, Citibank,

Standard Chartered Bank, HSBC, Vijaya Bank, J& K Bank, UCO Bank and

Corporation Bank have 0.93% respondents each using it.

Table - 7 : Distribution Of Products/Services Used

INTERPRETATION :

From the above, it can be seen that 100% customers availed Savings A/C in their

current banks. Next most widely used service being that of fixed deposits with

29.62% respondents using this facility. 17.59% respondents each availed Locker

Facility and Life Insurance with their current bank. 12.03% respondents had Mutual

Funds from their current bank while 8.33% availed loan facility from their current

bank and only 6.48% respondents availed the current account facility. This shows that

What products/services are you currently availing from

your current bank

108

13 7

32

19 199

0

20

40

60

80

100

120

Savings

A/C

Mutual

Fund

Current

A/C

Fixed

Deposit

Life

Insurance

Locker Loan


38/50

people mainly use the Saving A/C and Fixed deposit facility from their primary

banks.

Table- 8 : Satisfaction Level Under CRM

INTERPRETATION :

According to the above table , 60.18% of the total respondents are satisfied with their

current bank while 27.7% are highly satisfied from their current bank, only 1.85% are

dissatisfied while 0.92% people are highly dissatisfied. Whereas of the respondents

9.26% are such who are neither satisfied nor dissatisfied from the services provided

by their current bank.


39/50


40/50

CHAPTER - 4

FUNCTIONAL ANALYSIS OF THE BANK

4.1 FUNCTIONAL ANALYSIS OF MARKETING DEPARTMENT:

The functional analysis of Marketing Department of ING VYSYS BANK shows that

maximum of the customers used ING Vysya Bank as their current bank. 13.8% of the

respondents use ING Vysya Bank for their banking needs. This is followed by State

Bank of India and ICICI Bank with 12% of the respondents using it as their primary

bank currently. HDFC Bank is the third most widely used bank with 11.1%

respondents using its services. This is followed by Axis Bank with 10.1% using it.

Punjab National Bank has 8.33% Allahabad Bank and Oriental Bank of Commerce

have 3.7% respondents each using its services. Syndicate Bank, Punjab & Sind Bank

and Union Bank of India have 2.78% respondents each in their share. Banks like State

Bank of Bikaner, Indian Bank, Kotak Mahindra, IDBI and Bank of Baroda have

1.85% respondents each using it. Canara Bank, Citibank, Standard Chartered Bank,

HSBC, Vijaya Bank, J& K Bank, UCO Bank and Corporation Bank have 0.93%

respondents each using it.

4.1.1 Distribution of Products/Services Used

Products/Services Availed from current bank

Table No10 : Products /Services Availed From The Bank

Savings

A/C

Mutual

Fund

Current

A/C

Fixed

Deposit

Life

Insurance

Locker Loan

108 13 7 32 19 19 9


41/50

From the above table, it can be seen that 100% customers availed Savings A/C in

their current banks. Next most widely used service being that of fixed deposits with

29.62% respondents using this facility. 17.59% respondents each availed Locker

Facility and Life Insurance with their current bank. 12.03% respondents had Mutual

Funds from their current bank while 8.33% availed loan facility from their current

bank and only 6.48% respondents availed the current account facility. This shows that

people mainly use the Saving A/C and Fixed deposit facility from their primary

banks.

4.1.2 CRM

Under customer relationship management, 60.18% of the total respondents are

satisfied with their current bank while 27.7% are highly satisfied from their current

bank; only 1.85% are dissatisfied while 0.92% people are highly dissatisfied. Whereas

of the respondents 9.26% are such who are neither satisfied nor dissatisfied from the

services provided by their current bank.

4.2 FUNCTIONAL ANALYSIS OF HRM:

a) The functional analysis of HRM provides with the information that ING

VYSYA BANK is providing Training to up skill employees offered a

structured approach and focused on functional and behavioural skills.

b) Learning interventions were focused on fresher as well as lateral hires and

programs were designed to provide employees the skills required to perform

their roles and to progress into roles with higher accountability.

c)

Development tracks were put into place to help internal progression into senior

roles within the Branch Banking network.


42/50

d) Bank is also reinforcing the status of compliance and standards as an

important element of how bank do business and all their trainings are focused

to ensure that their employees understand and meet their responsibilities.

e) This year bank also launched ING Young Banker Program (IYBP), an

initiative designed to prepare fresh graduates to join the Bank as Customer

Care Managers.

f)

ING Vysya Bank has tied up with Manipal Global Education to create the ING

Young Banker Program offering a Post Graduate Diploma in Banking

Operations and Finance (PGDBOF).

g) It provides the selected Young Bankers structured training in various aspects

of Banking and Management disciplines and overall development of

personality. This is one of a series of initiatives that bank have taken towards

strategic shift in the focus of Talent Acquisition from BUY to the MAKE

mode.

4.3 FUNCTIONAL ANALYSIS OF PRODUCTION & OPERATION:

4.3.1 Analysis of Production Department:

The Functional analysis of Production & Operation indicates that internal control

framework of the Bank is based on the three lines of defence model, which is a

comprehensive risk governance framework that provides clarity on roles and

responsibilities in terms of risk ownership and its management.

Under this model:

a)

The Executive Board members, Senior Management and Business Managers

who are the risk takers in the business collectively form the first linedefence.


43/50

They are primarily responsible for the day-to-day management of risk in

accordance with agreed policies and internal controls at operational level.

b) The second line of defence consists of all units / functions that are responsible

for risk oversight and risk guidance in the Bank. These functions includes

Credit Risk, Market Risk, Operational Risk, Compliance, Legal, Finance,

Human Resource, etc. and is responsible for development of specific risk

policies, risk processes and risk controls that are in line with the regulatory

requirements.

c)

The Internal Audit Department, which is independent of the risk and business

functions, forms the third lineof defence. They are responsible to provide an

independent assurance of the design and effectiveness of internal controls over

the risks.The framework is supported with policies and minimum standards

that are adopted and implemented uniformly across the Bank.

4.3.2 Analysis of operational Department:

The Operational Risk Management (ORM) function manages the Operational,

Information and Security risks. The Bank has developed a comprehensive Operational

Risk Management framework supporting the process of identifying, measuring and

monitoring Operational, Information and Security risks. The Banks Operational Risk

Management framework is approved by the Risk Management and Review

Committee of the Board and is reviewed on a periodic basis.

TDS certificates are made available on internet banking platform. Customers can

access them without depending on branches or Phone Banking. Bank upgraded there

core banking platform during the year which improves bank processing time and will

translate into quick disposal of transactions at the branch counters.


44/50

4.4 FUNCTIONAL ANALYSIS OF FINANCE:

The functional analysis of Finance department indicates the overview of financial and

business performance, which are listed as follows:

a) During the financial year 2013-14, the Bank continued to grow its key

businesses and revenues. The Bank reported healthy improvement in its

financial, business and other operating parameters.

b)

The Bank recorded a net Profit after Tax (PAT) of ` 6,579 million for the year

2013-14 from ` 6,130 million reported in the previous year.

c) Net Profit (` in Million) - The Net Total Income of the Bank for the year grew

by 16% to ` 26,203 million from ` 22,655 million reported during the Previous

year. During this period, the Net Interest Income (NII) grew by 14% to `

17,532 million from ` 15,386 million reported in the previous year.

d) Fee and Other Income increased by 19% to ` 8,671 million from ` 7,269

million. Operating expenses increased by 17% to14, 927 million from ` 12,728

million in the previous year. The Cost to Income Ratio increased from 56% in

the previous year to 57% in the current year.

e) Current year operating expenses included additional charge of ` 611 million on

account of retirement provision.


45/50

Table No11 : Net Profit (2014)

The additional retirement charge of ` 611 million in FY 2013-14, the Cost to Income

Ratio declined from 56% to 55% which is shown in following figure:

Table No12 : Cost to Income Ratio


46/50

4.5 FUNCTIONAL ANAYSIS OF INFORMATION TECHNOLOGY (IT)

The IT Service Management Group (ITSMG) of ING VYSYA BANK is the

technology unit responsible for the Banks IT strategy and execution. ITSMGs

responsibilities extend from conceptualizing technology strategy in harmony with

business strategy, to running day to day operations at the workplace and data centres.

ITSMG plays an active role in not just running efficient operations, but also in

assisting business in winning at the marketplace, true to its mission To be a strategic

business partner based on service excellence through technical leadership in a secure

and cost effective manner.The implementation of SAP Business Objects at ING

Vysya Bank, almost 2,200 reports are auto scheduled in a month. ING Vysyas

dependence on MIS team has reduced as business users can now generate reports on

their own. With this, reports have become accurate, reliable.

4.6 FUNCTIONAL ANALYSIS OF INTERNATIONAL BUSINESS

The functional analysis of ING VYSYS BANK indicates that:

a)

The Customers who want to pay their import bills in parts have to submit the

documents only once, instead of submitting the entire set each time.

b) The export credit as a percentage of adjusted net bank credit stood at 7.11%

(Previous year 6.72%) as of 31 March 2014.


47/50


48/50

5.2 Experience of Working in the BANK

a)

I had undergone 2 months summer training in ING VYSYA BANK. My

experience of working there as an intern was satisfying and overwhelming.

b)

The working conditions of the Bank were good and satisfactory. I was

provided with the work-related facilities in the bank.

c) In the initial days of training, I was given theoretical knowledge about the

people working over there in the Bank and their roles and responsibilities in

the bank as per their designation.

d)

After gaining theoretical knowledge about the Bank, its employees, their job

Description. I was given practical work.

e)

The work environment of the Bank was very good and positive.

f)

The members of the Bank were knowledgeable, cooperative and very helpful

to welcome and cooperate with the trainee as a fresher.

g)

Also, they were keen on sharing their knowledge with the trainee as a fresher

on various aspects of doing the training over there.

h) My doubts and queries were welcomed and answered by the employees

working over there and they were cooperative enough to help and guide the

trainee in preparing the project report as well.

5.3 Practical Knowledge Gained in the Company

I completed 2 Months summer training in ING VYSYA BANK successfully. The

work performed and practical knowledge gained by me throughout the training

period is as follows:


49/50

a) I did the work related to collection of KYC information from customers i.e.

Know Your Customer by calling them through Bank telephone lines of those

who have their account with the bank more than 2 years.

b) I was given the responsibility of maintaining records of CIF i.e.Customer

Identification Form of customers .

c) I as a Trainee undertook the task of maintenance of Employee Database in MS

EXCEL and also updating that data on daily basis.

d)

I did work related to handling of customer queries on phone and fascinating

them with a solution.

5.4 SUGGESTIONS

a)

The bank should increase its branch network.

b) Bank should expand its network of ATMs; it should have ATMs at cinema

halls, shopping complexes, office complexes, etc.

c) Bank should also use some promotional schemes for its products.

d) Many of the respondents are not aware about their key services. Bank has to

take some initiatives.

e) ING Vysya Bank has to improve its brand image i.e. create a position in the

mindset of the customer.

f)

It should more emphasize on advertisement. Advertisement is a most powerful

tool for position and brand in the mindset of customer.

g) ING Vysya Bank should ask for their customer feedback to know whether the

consumers are satisfied or dissatisfied.

h) Due to intense competition in the financial market. ING Vysya Bank should

adopt better strategy to attract and retain more customers.


50/50

BIBLIOGRAPHY

WEBSITES

a) www.ingvysyabank.com

b) www.economictimes.com

c) http://ingvysyabank.com/personal-banking/products/about-

us/financial-results/fy-2014-2015.aspx

d) http://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-

June-2014.pdf

e) 83 rd Annual report of the bank for the year ended 2013-2014
http://www.ingvysyabank.com/http://www.economictimes.com/http://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://www.economictimes.com/http://www.ingvysyabank.com/

project wid porter

Documents