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BANGALORE SCHOOL OF BUSINESS 1



GENERAL INTRODUCTION OF BANKING INDUSTRY:

The banking section will navigate through all the aspects of the Banking System

in India. It will discuss upon the matters with the birth of the banking concept in

the country to new players adding their names in the industry in coming few

years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks

Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ING VYSYA, ABN

AMRO, etc. has been well defined under three separate heads with one page

dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been

well explained under three different heads namely:

History of Banking in India

Nationalisation of Banks in India

Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India.

Government took major step in the 1969 to put the banking sector into systems

and it nationalised 14 private banks in the mentioned year. This has been

elaborated in Nationalisationof Banks in India. The last but not the least explains

about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI

Act 1934 lays down the condition of scheduled commercial banks. The

descriptions along with a list of scheduled commercial banks are given on thispage.




INDUSTRY PROFILE

The Origin and Development of Banking Institutions

First of all we must note the fact that these institutions have changed very much

in character since their origin, and consequently nowadays perform many

functions unknown to those of former times. The first banks seem to have arisen

in connection with the business of exchanging money. In ancient times and

especially in the Middle Ages the varieties of coins were greater even than at the

present day, and they were much less perfectly and honestly minted. Specialists

were, therefore, required to determine their exact value and equivalence and to

exchange coins of one mintage for those of another, and their services were in

great demand at fairs and other places where merchants of different nations met

for purposes of trade. In as much as they kept their boxes or chests of coins on

benches or "banken," the name bankers came to be applied to them. On account

of their technical knowledge and the fact that they were obliged constantly tokeep on hand considerable quantities of the precious metals, this business in the

early Middle Ages was usually carried on by goldsmiths, but later it was

sometimes assumed by the governments of large commercial cities, as, for

example, by Amsterdam in 1609, by Hamburg in 1619, and by Nurnberg in 1621.

Of these latter the Bank of Amsterdam was the most important and may be

regarded as typical of these early institutions.

In the early seventeenth century the city of Amsterdam was the centre of the

international trade of Europe, and accordingly the coins of all nations were there

in circulation. These were of so many varieties and forms and of such different

degrees of reliability, and some of them were so worn and defaced by long usage

and the practice of clipping, that merchants found it difficult to keep themselves




informed regarding their true worth, and were exposed to the danger of great loss

if they accepted them at their face value. The city, therefore, established a bank

to which merchants took their coins, receiving therefore credit to the amount of

the value of the metal they contained. Payments were then made by transferring

credit on the bank's books from one person to another. That is to say, a person

who owed a sum of money to another accompanied him to the bank and ordered

the amount transferred from his own account to that of his creditor. Bank money,

as these book-accounts or the written orders to transfer them were called, thus

acquired a premium over the debased and mutilated coins in circulation, and for

generations constituted the basis of all the foreign exchanges of the city. It was

the means of substituting order for the financial chaos which reigned previously,

and contributed greatly to the prosperity of Dutch commerce.

On account of the fact that these early bankers were obliged to provide

themselves with strong boxes and other facilities for protection against robbers,

fire, etc., it became customary for other persons to entrust 1 to them their money

and other valuables for safekeeping, and after a time this feature of their

business became quite as important as money-changing and ultimately more so.

A third function was assumed when bankers acquired the habit of loaning at

interest the funds left with them for safe-keeping. This was made possible by the

fact that their receipts, which were supposed to represent actual cash on deposit

in their strong boxes, and which were redeemable on demand, were quite as

readily accepted in payments as coin and thus circulated from hand to hand as

money. Considerable quantities of coin thus remained with the bankers for long

periods of time without being called for, and they finally acquired the habit of

loaning it out at interest for short periods of time, keeping on hand only a quantity

sufficient to meet current demands.

From the earliest times also, bankers have been the chief agents through which

foreign exchanges have been conducted. As dealers in coin and bullion they had

international connections and knowledge of international affairs not possessed by




other merchants, and was, therefore, in a position to undertake the settlement of

international accounts by means of orders drawn on bankers in other countries or

other cities with whom they had regular business transactions. As keepers of

other people's money they also promoted saving, and banks thus became in time

the chief savings institutions of the country.

The relative importance of these various functions has changed considerably

with the development of industry and commerce, and a differentiation has taken

place between institutions some specializing in one direction and others in

another. For example, at the present time money-changing has become relatively

unimportant, and is carried on only by a few banks situated in those places

where travelers from one country to another need to exchange coins, and often

by establishments not nowadays regarded as banks in the proper sense of that

term. Some institutions emphasize the promotion and facilitation of saving almost

exclusively, and are hence called Savings Banks. Others provide special facilities

for the safekeeping of securities of all sorts, and are therefore called Safe

Deposit Companies. Some banks specialize in the conduct of foreign exchanges,

and others do almost exclusively a domestic business. According to the methods

by which they conduct their affairs, some are known as banks of issue and others

as banks of deposit. In this book we are chiefly concerned with the relations of

banks to the currency, and shall, therefore, describe in detail only those features

of the business which are essential to an understanding of such relations




B.Growth and present status of the industry

Survey on Status of Indian banking Industry – Progress & Agenda ahead 1

FICCI SURVEY ON THE STATUS OF THE INDIAN BANKING INDUSTRY-

Progress and Agenda ahead

Executive Summary

Today the Indian banking system is among the best in the world and the years to

come

may see them taking on the global behemoths. FICCI conducted a survey to

analyze

the present state of the Indian banking industry and challenges facing the

industry.

INDIAN BANKING INDUSTRY – At a Glance

84 percent of the survey respondents described the performance of the

banking

Industry as “Very Good” in the fiscal 2004-05.

Newly granted autonomy would certainly make the PSBs more competitive

and

profitable, said 88 per cent respondents, though some more changes considereddesirable (refer survey)

48 percent of overall respondents and 67 percent of private bank respondents

expressed the need to relax the prescribed limit of single ownership and cross

holding

cap in the Ownership and Governance guidelines for Private sector Banks.




Although 72 percent of public & private sector bank respondents expressed

their

satisfaction with the recently devised road map for the foreign banks, majority of

foreign Bank respondents (75 percent) expressed complete dissatisfaction with

this

roadmap.

75 percent of the foreign bank respondents expressed that time frame

prescribed to

expand through Merger & Acquisitions should have been less and equal number

voiced that the guidelines are not in line with international norms.

Consolidation in the banking industry followed by Technological upgradation

was

considered as key factors currently required to enhance the international

competitiveness of the Indian banks.

Free trade agreements (FTA) considered a positive step in the area of

banking by

almost all respondents. The available market size and the level of access

provided to


Indian banks in foreign countries should be the key factors in consideration, while

entering into such agreements, as highlighted by 76 percent of banks

Rise in the interest rates imminent say 64 percent survey respondents.

Majority

expects increase by 0.5 percent.

88 percent of Public and private sector banks considered HRD related issues

as one of

the biggest challenge in the process of consolidation.

83 percent respondent banks claim to have more than 85% level of

technological




advancements in their banks with remaining banks stating it to be around 65-

85%.

All our respondents emphasized that customer retention is significantly

important for

the profitability of the banks.

More than 70 percent of banks felt the need of advanced security software’s

and

stricter security policies to safeguard and ensure the security of customer

information.

Some of the legal changes suggested are detailed in the survey.

53 percent of respondent banks considered 6 months transition period to shift

from

MIFOR rupee benchmarks for interest rate derivatives to be inadequate

Majority of banks felt that their Risk management framework for

implementation of

BASEL II was well in place.

53 percent of our survey respondents intend to increase their retail portfolio by

more

than 25% in the year 2005-06.

Rising Indebtedness followed by lack of Technological advancements were

identified

as biggest challenges that could affect the future growth of Retail banking.

80 percent of survey respondents did not agree with the notion that housing

loan is

creating a bubble.

Substantial progress made by banks in cleaning up the NPAs from their

balance

sheets, was largely attributed to SARFAESI Act and increased provisioning on

Doubtful debts by majority of survey respondents.




Absence of Secondary Market for the trading of security receipt issued by

ARCs was

identified as one of major problem in Indian Model of NPA management.

Separate NPA norms for the farm and the SME sector were recommended by

large

number of respondents.


96 percent of all banks claim that the current growth of non-food credit is

sustainable

for about 3-5 years.

Detailed information on banks sectoral exposure of credit reveals that over

two-thirds

of the credit flow has been on account of retail, housing and other priority sector

loans. Banks credit flow exposure to large Enterprises continues to remain

buoyant

with recent indications that credit to agriculture and Micro credit has also picked

up.

71 percent of our survey respondents did not consider SMEs as an avenue of

forced

lending.

95 percent of banks intend to increase their exposure further in the area of

Micro Credit financing.




C.Future of the industry

A healthy banking system is essential for any economy striving to achieve good

growth and yet remain stable in an increasingly global business environment.

The Indian banking system has witnessed a series of reforms in the past, like

deregulation of interest rates, dilution of government stake in PSBs, and

increased participation of private sector banks. It has also undergone rapid

changes, reflecting a number of underlying developments. This trend has created

new competitive threats as well as new opportunities. This paper aims to foresee

major future banking trends, based on these past and current movements in the

market.

Given the competitive market, banking will (and to a great extent already has)

become a process of choice and convenience. The future of banking would be in

terms of integration. This is already becoming a reality with new-age banks such

as YES Bank, and others too adopting a single-PIN. Geography will no longer be

an inhibitor. Technology will prove to be the differentiator in the short-term but the

dynamic environment will soon lead to its saturation and what will ultimately bethe key to success will be a better relationship management.

OVERVIEW

If one were to say that the future of banking in India is bright, it would be a gross

understatement. With the growing competition and convergence of services, the

customers (you and I) stand only to benefit more to say the least. At the same

time, emergence of a multitude of complex financial instruments is foreseen in

the near future (the trend is visible in the current scenario too) which is bound to

confuse the customer more than ever unless she spends hours (maybe days) to

understand the same. Hence, I see a growing trend towards the importance of




relationship managers. The success (or failure) of any bank would depend not

only on tapping the untapped customer base (from other departments of the

same bank, customers of related similar institutions or those of the competitors)

but also on the effectiveness in retaining the existing base.

India has witness to a sea change in the way banking is done in the past more

than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to

reform the Indian banking system at a measured pace so that growth could be

achieved without exposure to any macro-environment and systemic risks. Some

of these initiatives were deregulation of interest rates, dilution of the government

stake in public sector banks (PSBs), guidelines being issued for risk

management, asset classification, and provisioning. Technology has made

tremendous impact in banking. ‘Anywhere banking’ and ‘Anytime banking’ have

become a reality. The financial sector now operates in a more competitive

environment than before and intermediates relatively large volume of

international financial flows. In the wake of greater financial deregulation and

global financial integration, the biggest challenge before the regulators is of

avoiding instability in the financial system.




RISK MANAGEMENT AND BASEL II

The future of banking will undoubtedly rest on risk management dynamics. Only

those banks that have efficient risk management system will survive in the

market in the long run. The effective management of credit risk is a critical

component of comprehensive risk management essential for long-term success

of a banking institution.

Although capital serves the purpose of meeting unexpected losses, capital is not

a substitute for inadequate decontrol or risk management systems. Coming years

will witness banks striving to create sound internal control or risk management

processes.

With the focus on regulation and risk management in the Basel II framework

gaining prominence, the post-Basel II era will belong to the banks that manage

their risks effectively. The banks with proper risk management systems would not

only gain competitive advantage by way of lower regulatory capital charge, but

would also add value to the shareholders and other stakeholders by properly

pricing their services, adequate provisioning and maintaining a robust financial

structure.

‘The future belongs to bigger banks alone, as well as to those which have

minimised their risks considerably.’

CONSOLIDATION

Consolidation, which has been on the counter over the last year or so, is likely to

gather momentum in the coming years. Post April 2009, when the restrictions on

operations of foreign banks will go, the banking landscape is expected to change

dramatically. Foreign banks, which currently account for 5% of total deposits and

8% of total advances, are devising new business models to capture the Indian




market. Their full-fledged entry is expected to transform the business of banking

in many ways, which would be reflected in terms of greater breadth of products,

depth in delivery channels and efficiency in operations.

Thus Indian banks have less than three years to consolidate their position.

Despite the stiff resistance from certain segments, consolidation holds the key to

future growth. This view is underpinned by the following:

► Owing to greater scale and size, consolidation can help save costs and

improve operational efficiency.

► Banks will also have to explore different avenues for raising capital to meet

norms under Basel-II

► Owing to the diversified operations and credit profiles of merging banks,

consolidation is likely to serve as a risk-mitigation exercise as much as a growth

engine.

Though there is no confirmation yet, speculative signals arising from the market

point to the prospect of consolidation involving banks such as Union Bank of

India, Bank of India, Bank of Baroda, Dena Bank, State Bank of Patiala, and

Punjab and Sind Bank. Further, the case for merger between stronger banks has

also gained ground a clear deviation from the past when only weak banks

were thrust on stronger banks. There is a case being made for mergers between

banks with a distinct geographical presence coming together to leverage their

respective strengths.




GLOBALIZATION/ OVERSEAS EXPANSION

Growing integration of economies and the markets around the world is making

global banking a reality. The surge in globalization of finance has already begun

to gain momentum with the technological advancements which have effectively

overcome the national borders in the financial services business. Widespread

use of internet banking will widen frontiers of global banking, and make

marketing of financial products and services on a global basis possible. In the

coming years globalization will spread further on account of the likely opening up

of financial services under WTO. India is one of the 104 signatories of Financial

Services Agreement (FSA) of 1997. This gives India’s financial sector including

banks an opportunity to expand their business on a quid pro quo basis.

As per Indian Banks' Association report ‘Banking Industry Vision 2010’, there

would be greater presence of international players in Indian financial system and

some of the Indian banks would become global players in the coming years. So,

the new mantra for Indian banks is to go global in search of new markets,

customers and profits.

TECHNOLOGY

There is an imperative need for not mere technology upgradation but also its

integration with the general way of functioning of banks to give them an edge in

respect of services provided to their constituents, better housekeeping,

optimizing the use of funds and building up of MIS for decision making, better

management of assets & liabilities and the risks assumed which in turn have a

direct impact on the balance sheets of banks as a whole. Technology has

demonstrated potential to change methods of marketing, advertising, designing,

pricing and distributing financial products and services and cost savings in the

form of an electronic, self-service product delivery channel. These challenges call




for a new, more dynamic, aggressive and challenging work culture to meet the

demands of customer relationships, product differentiation, brand values,

reputation, corporate governance and regulatory prescriptions. Technology holds

the key to the future success of Indian Banks.

Internet, wireless technology and global straight-through processing have

created a paradigm shift in the banking industry. The explosive growth of both

the Internet and mobile and wireless technology is revolutionizing the way the

financial industry conducts business. The overall wireless technology market is

expected to grow profoundly in the coming years.

REGULATIONS

The RBI's approval for banks to raise funds abroad through innovative capital

instruments holds great significance. Such fund-raising, which includes

preference shares, will, however, not just substitute equity; it could have

unintended consequences on the strategies of banks and their profitability. While

the cost of raising monies through such instruments is likely to be higher (close to

10 per cent), the consequent higher leverage on equity funds is likely to result in

expansion of return on net worth. This is because the same amount of capital

supports a higher volume of business, generating higher profits.

Banks are likely to be able to raise long-term preference shares at coupon rates

between six per cent and eight per cent. The positive impact on bank profitability

could thus be significant.

Preference capital can be used as the currency for acquisition. The advantagefor public sector banks is that they no longer need to bother about government

stake falling below 51 per cent. Banks such as Dena Bank, Oriental Bank of

Commerce and Andhra Bank are most likely to benefit from this move.




SKILLED MANPOWER

There will be a sea change for employees too. Secure jobs will be replaced by

contractual appointments, for a specified period of time. The unions will merge

into the shadows and bank managements will turn effective. As a result there will

be swifter turn over of personnel in banks. But at the same time, skilled

personnel from other disciplines will enter banks in increasing numbers.

Factors like skills, attitudes and knowledge of the human capital play a crucial

role in determining the competitiveness of the financial sector. The quality of

human resources indicates the ability of banks to deliver value to customers.

Capital and technology are replicable but not the human capital which needs to

be valued as a highly valuable resource for achieving that competitive edge.

Business model, which comprises a comprehensive range of business solutions

delivered through a unique balance of portfolio and relationship management

must be incorporated.

FUTURE CHALLENGES & SUGGESTIONS

Challenges

►Competition

►Customer Retention

►Globalization

►Shrinking Margin

Suggestions

►Strong In-house research & market Intelligence

►Focused marketing- Focus on region-specific campaigns rather than national

media campaigns




The growth of the retail financial services sector has been a key development on

the market front. Indian banks (both public and private) will not only be keen to

tap the domestic market but also to compete in the global market place. New

foreign banks will be equally keen to gain a foothold in the Indian market.

CONCLUSION:

What will the future of Indian banking and insurance look like? Will the reform in

banking and insurance sectors face the same fate as in power and telecom? It is

increasingly evident that the economy offers opportunities but no security!

Therefore, the future will belong to those who develop good internal controls,

checks and balances and a sound market strategy. Business Growth, Cost

Efficiency and Evolution are therefore regarded as key drivers which will have to

be addressed.







COMPANY PROFILE

AN OVERVIEW OF ING

ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB

Postbank Group. During the past 15 years ING has become a multinational with

very diverse international activities.

The roots of ING can be traced to the insurers De Nationale Levensverzekering

Bank and De Nederlanden van 1845 and to the public bank services such as De

Rijkspostspaarbank and De Postcheque- and Girodienst, as well as to the

Nederlandsche Middenstands Bank. These are the legal predecessons of the

‘founding fathers’ of ING; Nationale-Nederlanden and NMB Postbank Group.

The oldest legal predecessor is the Kooger Doodenbos from Koog, Noord

Holland, founded in 1743. During that period many regional funds were created

to insure people from certain communities, professions, widows and orphans

against bad fortune. Many of these small organisations were taken over by larger

nationwide operating companies such as De Nationale Levensverzekering Bank.

The fire insurers were the first to undertake international activities, starting in the

Dutch Indies, but later also in the rest of Asia and in America. This created the

foundation for the international company ING is today

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

life insurance and retirement services. It serves more than 85 million private,

corporate and institutional customers in Europe, North and Latin America, Asia

and Australia. It draws its own experience and expertise, own commitment to

excellent service and own global scale to meet the needs of a broad customer

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

institutions and governments




AN OVERVIEW OF VYSYA BANK

Vysya Bank Ltd, one of initial banks to be set up in the private sector of India,

was established in the year 1930, with the aim of providing a helping hand to all

those who couldn't afford the privilege of enjoying the services of a bank.

Eighteen years later, in 1948, the bank was listed as one of the Scheduled Banks

of the country. With the passing time, Vysya Bank aimed at the number one

position in all the private sector banks.

In 1985, the dream of Vysya Bank's promoters came true and it became the

largest private sector bank of India. Two years later, it laid the foundation of

Vysya Bank Leasing Ltd. The following year, the bank was credited with laying

down the innovative concept of 'Co branding of Credit Cards'. In 1990, Vysya

Bank promoted a new entity - Vysya Bank Housing Finance Ltd. By 1992, the

bank had reached another milestone, by having its deposits cross Rs. 1000

crores and the very next year, the number of its branches had gone past 300.

ABOUT ING VYSYA BANK

ING Vysya Bank Ltd came into being in October 2002, when erstwhile Vysya

Bank Ltd was merged with ING, a global financial powerhouse boasting of Dutch

origin In 2002, ING took over the management of Vysya Bank and RBI gave its

permission for the new name of the bank to be 'ING Vysya Bank Ltd'. In the

following year, the bank introduced customer friendly products, mainly Orange

Savings, Orange Current and Protected Home Loans. Its innovative products in

the coming years included Solo - My Own Account for youth and Customer

Service Line - Phone Banking Service (2005) and ‘AAA’ transactions - Anywhere,

Anytime & Anyhow Banking - through networking of all its braches (2006).




GROWTH AND DEVELOPMENT OF THE ORGANIZATION .

1930 - The Bank was Incorporated at Bangalore City. The Bank

Transacts general banking business of every description.

1958 - The Bank was granted a license by the Reserve Bank of India to carry on

banking business.

1972 - With effect from 1st January, the Bank was upgraded to ‘B’ class.

1978 - 80,000 Right shares issued at par 1977 in prop. 2:1.

1987 - The Vysya Bank Leasing, Ltd. was incorporated on 4th January,

As a subsidiary of the Company to take up equipment leasing and suchother

forms of business as are permissible through the Subsidiary.

The Vysya Bank Housing Finance, Ltd., is also a Subsidiary of the bank.

- 6,00, 000 Rights equity shares issued at par in prop. 1:2.

1990 - The bank introduced the Investors' club activity to render buying and

selling of capital market investments on behalf of its members apart from giving

loans and providing security for theScrips deposited with the bank.

1993 - At the Extraordinary General Meeting held on 27th September, a special

Resolution was passed for issue of Rights Shares to the shareholder and

Preferential Allotment of Shares to the Management Group and Employees.




The allotment of 24 lakhs shareswas made to Management Group on 10th

December, which was kept in Abeyance vide RBI directive dated 15th December.

1994 - The Bank launched new products like VYS STORE – credit facility for

constructions of godowns, agri-vehicles for transportation of produce and inputs

and cash credit for agricultural Lending. A new division was set up to

strengthened merchant banking activities of the bank.

The bank underwrote 118 capital issue aggregating Rs 34.47 crores separate

cell managed by professionals specialised in investment management was

formed to look after theEquity investments of the bank.

The Company's schemes such as vysprime and vysinvest exist

exclusively for NRIs. Vysbuy for facilitating purchase of consumer articles,

vysmobile for purchase of vehicles and vysequity facilitating purchase of shares.

2,43,600 shares were allotted at a premium of Rs 10 perShare to the employees

of the bank and subsidiary companies.

The RBI has revoked its order letter dated 29 th September, and

permitted allotment as follows:

(i) Issue of 2,66,500 shares of Rs 10 each in the ratio of 50 shares to each

employee of its subsidiary companies at a premiuim of Rs 10 pershares,

(ii) Issue of 6,00,000 shares of Rs 10 each to the Management Group at a

premium of Rs 364.25 per shares,

(iii)After Completion of the above issues, rights issues to the shareholders

including (i) and (ii) in the ratio of 5 shares for every share at a price in




accordance with pricing guidelines of RBI. 6 lakhs shares were allotted to

Management Group at a premium of Rs 364.25 as approved by RBI. Balance of

18 lakh shares awaited for the decisive of the Company.1200 shares allotted.

1995 – The bank launched two new schemes, namely Vysdouble Scheme

doubles money in less than 57 months & Vyswift Scheme -A scheme for fast

collection of out station cheques. The banks has signed a MOU with Bank

Brussels Lambert for strategic alliance. It enable the bank to globalise its

operations.

The bank has appointed M/s. KPMC Peat Marwick to conduct a study of the bank

for re-engineering the business processes of the bank and sugges

appropriate business strategy to remodel the bank as a World Class Bank.

131,32,830 No. of equity shares of Rs 10 each at a prem. of Rs 25per share

allotted to the existing shareholders on

rights basis in the ratio of 5:1.

1996 - A MOU was signed with MC Securities Ltd., London a group company of

Bank Brussels Lambert for establishing a joint venture company for International

Investment Banking. 834,800 No. of equity shares of Rs 10 each at a premium of

Rs316.07 per share allotted on preferential basis to BBL Mauritius Holidings, a

wholly owned subsidiary of Bank Brussels Lavibert, Belgium and 13,435 No. of

equity shares of Rs 10 each at a premium of Rs 25 per share allotted out of

abeyance cases of Rights issue.

1998 - Sri T. B. Dhananjaya Rao, Director, expired on 1st October.The Bank set-

up V-SATs in 6 Metros using DAMA technology as an internal communication

support system through which 200 of the Bank's Branches are proposed to be

linked to the Bank's Corporate Office for data transmission and E

Communication.




1999 -The Bank launched Insurance linked Premium Savings Bank Account for

individuals. The Bank has signed an MOU with ING for distribution of Life

Insurance products, asand when the insurance industry opens up in India. 2000 -

Indus Software Private Limited a Pune-based software products company has

signed an agreement with the Vysya Bank Ltd.,

A leading private sector bank in India for the implementation of its product, ISI

(lending solutions from Indus). Vysya Bank Ltd. signed a MoU with Global

TeleSystems Ltd. To utilise their e-commerce payments processing

infrastructure. The Bank has signed a memorandum of understanding with the

ING group to pick up 26% stake in ING Asset Management Company for a

nominal amount of Rs 10 crore. Vysya Bank has signed an MoU with Satyam

Infoway for its foray into e-commerce.

The Vysya Bank signed an MoU with Siri Technologies Pvt for atechnical and

marketing partnership to develop,customise and implement remittance/payment

processing, software solutions according to a press release issued by Vysya

Bank.ING Insurance, a sub-holding company of Dutch financial major ING

Group, has tied up with Bangalore-based Vysysa Bank to enter the Indian life

insurance market. Vysya Bank is likely toreview its joint venture agreement with

Citibank for the credit card business. Bangalore-based private sector bank

Vysya Bank is to launch a floating rate deposit. ING Insurance, Vysya Bank Ltd.

and the Damani Group have signed an agreement to form a life insurance joint

venture in India.

The Bank announced launching of VysyAMulya project,envisaging an investment

of about Rs. 60 Crores spread over two financial years, which involves setting up

of a Data Centre and networking of 125 branches for online real-time Centralised

Processing through Sanchez's Core banking suite of products




PROFILE/Anyware - IBS. The Bank has entered into an agreement with IBM

India Ltd for the IT related hardware/software supply and system integration.The

Bank has also entered into an agreement with M/s.Bangalore Labs for providing

suitable and stable communications network design and layout, which will allow

the bank to operate 24 hours, seven days a week.

The Bank launched, during the year, two new technology aided products viz., -

Vys-Sambandh and Access Plus. Sri K R Ramamoorthy, has been re-appointed

as the Chairman and Chief Executive Officer of the Bank for a period of three

years.

2001 - Vysya Bank named a new Managing Director Mr. K Balasubramanian,

sees this as the first step in its long-term succession plan for theBank's top

job.Vysya Bank Ltd as part of its restructuring exercise, has merged six regional

offices and will be opening 30 branches, including extension counters, in the next

three years 2002-Vysya Bank announces Employees Voluntary Retirement

scheme.Vysya Bank Ltd has informed that the following changes have be

approved consequent to increase in the stake of equity of BBL (ING Group) from

20% to 43.99%.

The following Directors resigned from the office of Director w.e.f September 09,

2002:a) Mr. M K Ramachandra,b) Mr. H N Tarachandani, c)Mr. Yadalam A

Subramanyam, d) Mr. K V K Seshavataram e) Mr. G B S Raju. Mr. Peter

Alexander Smyth, a nominee of ING Group has been appointed as Director in the

casual vacancy caused by the resignation of Mr. M K Ramachandra w.e.f.




September 09,2002. Mr. Jacques P M Kemp, a nominee of ING Group has been

appointed as Director in the casual vacancy caused by the resignation of Mr. G R

S Raju w.e.f. September09, 2002. Vysya Bank Ltd has informed that RBI has

sanctioned the appointment of Mr Bart Hellemans as Managing Director & Chief

Executive Officer and Mr G Mallikarjuna Rao as part time Chairman of the Bank.

Mr K Balasubramanian the outgoing Managing Director will continue as non-

executive Director of the Bank. G Mallikarjuna Rao takes charge as part time

Chairman of VysyaBank. Vysya Bank Ltd has informed BSE that The Board of

Directors through a Circular Resolution passed on November 9, 2002 has noted

the resignation of Mr Leo Willy Janssen, nominee of ING from the Board of the

Bank.

2003-Vysya Bank Ltd has informed BSE that the Board of Directors of

Vysya Bank Ltd at their meeting held on January 30, 2003 took on record the

following: 1. Appointment of Arun Thiagrajan as Additional Director

Appointment of K R Ramamorthy as Additional Director effective February 12,

2003 3. Resignation of A P Rao as Director effective Jan

30, 2003. Western Union, the top American money transfer firm has tied up with

ING Vysya Bank for inward money transfer. ING Group acquired 23.99% equity

of Vysya Bank, and the name has been changed to ING Vysya Bank Ltd.

-Change in the Management Structure:

Appointment of Mr.Arun Thiagrajan as Additional Director

Appointment of K Ramamorthy as Additional Director and

Resignation of A P Rao as the Director.

-Mr Robin Roy, the point man for retail banking of ING Vysya Bank Ltd

has resigned.

-Mr Prakash G Apte has been appointed as Additional Director on theboard of

the bank.




ING Vysya has launched 3 new endowment products:

Powering Life - Limited payment endowment plan

Creating Life - Child Protection plan

Reassuring Life - Endowment plan with revisionary bonus.

ING Vysya Bank Ltd has reported a 26% growth in its net profit for

the year.

ING Vysya Bank has entered into a subscription and shareholders

agreement with

Nationale Nederlanden Interfinance BV, Kirti Equities Pvt Ltd andING

Investment Management (India)Pvt Ltd.

Crisil assigs AA+ rating for the 200cr bond programme of ING vysya

bank.

ING vysya bank has launched new Saving Bank Account called Orange,

withfacilities like personal accident cover, free annual accident cover.

ING Vysya's new Registered office: at No 22, M G Road Bangalore

560001.Ph.Nos : 080-5005000 & 5559222 Fax No. 080-5005555.

ING-Vysya has raised Rs.200cr through tier-II capital bonds at 6.25%.

The bonds are rated AA plus by both Fitch and Crisil.

Medvin Finance Private Ltd., shareholder of the Bank and a constituent of

GMR Group of Companies, Indian Promoters, sells 45252 equity shares

amounting to 2% of the paid up capital of the company.Resignation of Mr.

Ramsay Alexander Urquhart and Mr. Jacques P M Kemp from the Board

of the Bank. Further, the Board of Directors appointed i) Mr. Lars Kramer;




ii) Mr. Cees Ovelgonne and iii) Mr. Peter Staal as Directors of the Bank in

the casual vacancies arising out of resignation of Mr. Jacques P M Kemp,

Mr. Ramsay Alexander Urquhart and Mr. K Balasubramanian respectively

as Directors.

ING Vysya Bank received Rs 4.35 crore to take back bad loans from its

erstwhile housing finance arm that had been acquired by Dewan Housing

Finance

iGate Global Solutions signs outsourcing deal worth approx miillion with

ING Vysya Bank

Toyota signs agreement with ING Vysya for auto finance

ING Vysya Life signed an agreement with public sector Madras

Fertiliser Ltd (MFL) to sell its life insurance policies to farmers,

using the fertiliser company's dealer network in rural sector

2004 -Dolphin Milk forges alliance with ING Vysya Bank 2005.ING

Vysya Bank names Mr Ned Swarup as CEO

ING Vysya Bank launches an `Advantage Current Account' for mid-sized

businesses

2006 ING Vysya Bank Ltd has informed that the Company has

appointed Mr. Vaughn Richtor as its new Chief Executive Officer (CEO)

and Managing Director for a three-year term, following approval from the

Reserve Bank of India.

ING Vysya Bank Ltd delists securities of the Bank from Bangalore Stock

Exchange L




PRESENT STATUS OF THE ORGANIZATION

CAPITAL STRUCTURE OF ING VYSYA BANK .

Period Instrument Authorized

Capital

Issued Capital - P A I D U P -

From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capita

2007 2008 Equity Share 214.75 102.83 102474264 10 102.47

2006 2007 Equity Share 214.75 91.26 90904791 10 90.9

2005 2006 Equity Share 100 91.09 90720579 10 90.72

2004 2005 Equity Share 100 22.75 22708448 10 22.7

2003 2004 Equity Share 100 22.69 22651615 10 22.652002 2003 Equity Share 100 22.66 22620820 10 22.62

2001 2002 Equity Share 100 22.66 22619570 10 22.62

2000 2001 Equity Share 100 22.66 22619320 10 22.62

1999 2000 Equity Share 100 19.83 19786765 10 19.79

1998 1999 Equity Share 100 17.62 17582915 10 17.58

1997 1998 Equity Share 100 17.62 17551665 10 17.55

1996 1997 Equity Share 100 16.7 16624665 10 16.62

1995 1996 Equity Share 100 131.9 4173075 10 4.17

1994 1995 Equity Share 25 5.17 2643600 10 2.64

1993 1994 Equity Share 25 5.17 2400000 10 2.4

1988 1989 Equity Share 2 1.8 1800000 10 1.81975 1976 Equity Share 0.2 0.2 40000 50 0.2

1972 1974 Equity Share 0.2 0.2 40000 40 0.16

1933 1949 Equity Share 0.2 0.2 39598 30 0.12

MARKET SHARE

After March 2002, the core banking business has been growing at a robust 20

per cent. This, however, did not lead to any significant increase in profits from

core banking since the bank's spreads were considerably less than that of the




competition. Since April 2004, however, profitability of the core banking improved

considerably.

This was built mainly around an improvement in spreads. Spreads (the difference

between the rate at which funds are lent and borrowed) were much less than 3

per cent for ING Vysya Bank even in the year ended March 2004. In contrast,

many public sector banks enjoyed spreads in excess of 3 per cent and many

private sector banks even higher.

For the nine months ended December 2004, ING Vysya Bank's spreads rose to

about 3.2 per cent mainly due to the reduction in the cost of deposits; at about

4.7 per cent, the latter (at end-December 2004) is one of the lowest in the

industry.

In the backdrop of the improved spreads, if the bank sustains the growth in

advances, that in profitability would be strong in the years ahead.

ING Vysya Bank Ltd. has been involved in banking, insurance and asset

management. It has established life insurance companies in countries with

emerging economies like Korea, Taiwan, Hungary, Poland, Mexico and Chile.

The bank’s initiative, ING Direct, an internet and direct marketing concept has

assisted it in winning retail market share in mature markets.

The bank recently appointed cricketer Anil Kumble as the new brand associate

for their Want More, Swipe More Debit Card promotion.

ING Vysya Bank provides opportunity for lifelong learning. It offers aggressive

and fast paced career development for its employee. It has implemented job and

leadership programs along with a well-defined Performance ManagementSystem.

The share prices of ING has a very aggressive touch towards it fluctuation in

market, the share was quoting at Rs 186.30, up Rs 15.80, or 9.27%.




According to sources, ING may be looking to sell out of ING Vysya Bank, reports

CNBC-TV18.

It was trading with volumes of 134,482 shares. Yesterday the share closed down

3.54% or Rs 6.25 at Rs 170.50.

FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

BANGALORE SCHOOL OF BUSINESS

Share Price Movement During The Last 12 Months

Period Price Latest Price Gain/Loss (Rs.) % Gain/Loss

3-Days 187.10 186.30 -0.80 -0.43

5-Days 178.95 186.30 7.35 4.11

7-Days 170.45 186.30 15.85 9.30

15-Days 174.65 186.30 11.65 6.67

1-Month 143.15 186.30 43.15 30.14

3-Month 105.10 186.30 81.20 77.26

6-Month 154.90 186.30 31.40 20.27

9-Month 252.65 186.30 -66.35 -26.26

1-Year 250.65 186.30 -64.35 -25.67

31

HUMAN

RESOURCE

DEPARTMEN

T

INFORMATIO

N

TECHNOLOG

Y

DEPARTMEN

T

SALES &

DISTRIBUTIO

N

DEPARTMEN

T

CUSTOMER

SERVICE

DEPARTMEN

T

OPERATIONS

DEPARTMEN

T

M I S

DEPARTMEN

T

MARKETING

DEPARTMEN

T

FUNCTIONAL

DEPARTMENTS



ORGANIZATION STRUCTURE:

The Organization structure includes the durable organization arrangements and

relationships, various departments, reporting lines, division of tasks and

allocation of responsibilities among various positions. The organizational

structure is commonly depicted by organizational chart.

Organizational Chart:


MANAGING DIRECTOR

&CEO



PRODUCT PROFILE OF SALARY ACCOUNTS

PRODUCT PROFILE

Salary Account is a feature rich corporate payroll account with

benefits for both corporates and i ts employees.


PRESIDENT

EVP(HR&LEGAL)

EVP(MARKETING)

EVP(ACC)OUNTS)

EVP(R&D)

ZONAL HEAD

ІI

ZONAL HEAD

ІZONAL HEAD

ІII

ZONAL HEAD

ІV

DGM DGMDGM

ASM

ASM

ASM

ASM

SALES MANAGER

SALES MANAGER

SALES MANAGE



• the process of drawing cheques for salaries is replaced by

sending a s ingle asci i f i le to the bank and the amount is

directly credited into the employees salary account

• cuts down payroll processing workload

• salary account can be opened with minimum 10 employees

• instant credit of salaries

ING VYSYA Bank Salary Account is a benefit-rich payroll account for Employers

and Employees.

As an organization, you can opt for our Salary Accounts to enable easy

disbursements of salaries and enjoy numerous other benefits too.

With ING VYSYA Bank Salary Accounts your employees will enjoy the

convenience of :

• Having the largest network of ATMs at their command,

• Free 24 hour Phone Banking,

• Free Internet Banking.

All that the organization would require to do is to send ICICI Bank an advice (in

form of a cheque/debit instruction, ecs, etc) for the total salary amount along with

the salary details of the designated employees in a soft and hard copy format

and we will credit the respective employees' accounts as per your statement of

advice.




ING VYSYA Bank Salary Accounts benefits you in more than one ways:-

• Reduces paperwork.

• Saves remittance costs.

• Employees receive instant credit of salaries.

• More convenient than ECS.

Besides all of the above, employees automatically become ING VYSYA Bank

account holders with special benefits and privileges of 8-8 banking, Investment

advisory and much more...

Eligibility

The organization needs to have a minimum of 25 employees and a payout of Rs

36.0 lacs per annum and average salary per account of Rs. 12,000 per month.

Advantages to Employers

Successful business owners know that it is better to be an expert on the product

or service you are selling and let someone else be the expert on other tasks. One

such 'other task' is the payroll and salary disbursement.

Outsourcing the administrative task of payroll, is one way you can invest more




time into your own business and waste less time worrying about keeping up with

the ever changing and complex rules and regulations governing payroll.

Top Reasons to Outsource Salary Disbursement and Payroll Processing

• Salary upload through a single cheque: Give a consolidated cheque of the

total salary amount to ING Bank and a breakup of the disbursements to

the employees in soft and hard copy format.

• Multi-location Salary disbursal possible within INGI Bank network : With the

wide reach of ING Bank, salaries of employees located Pan India can be

uploaded from a single point upload.

• Taxes: Market research shows that one out of every three employers has

been charged for a tax-related payroll error. This equates to billions of

rupees in penalties. A payroll service provider keeps you out of such

statistics.

• Affordability : Consider how much time is spend managing payroll. This

equates to time taken away from revenue-producing activities. At the very

least, consider the cost of computer equipment and software as well as

the extensive training that is needed to run payroll internally. Outsourcingwith the right payroll service provider will save your time and money.

• Profitability: Outsourcing your payroll gives organization the freedom to

get back to your business.

• Time: Organizations have better things to do with your time than

calculating payroll. Getting salary cheques out on time is not only

expected, but also a positive reflection on your company.

• Accuracy : Even with the simplest of payrolls, it's easy to make mistakes.

Without current and on-going training in payroll compliance, your company

could face stiff penalties and unhappy employees to boot.




• Privacy: It can be embarrassing and detrimental to morale if the wrong

eyes fall on the salary cheques. Confidentiality is much easier to maintain

when payroll is outsourced, particularly when your employees use direct

credit .

• MIS: Payroll companies offer a wide array of standard reports that are

informative and easy to read. Keep your records neat and concise with

these invaluable reports.

• Flexibility: As business changes, so do payroll needs. Leave the details to

an expert and focus on business.

• Professionalism: What better way to show your employees that the

company is professional and secure, outsourcing your payroll coupled with

all benefits of ING Bank savings accounts will enhance the successful

image and will make employees happy. After all a happy employee is a

productive employee.

BENEFITS OF ING SALARY ACCOUNT

Your employees automatically become ING Bank Salary Account holders with

special benefits and privileges and receive instant salary credit. The benefits

include International debit card, Corporate card with Individual Liability (CCIL),

access to Phone Banking and Internet Banking, Demat accounts, and a host of




other services to complement their savings account. Here are some of the

features of ING Bank Salary Account: -

BANKING

• Welcome-Kit

No more waiting for weeks to get a chequebook and debit cards. ING

Bank Salary Account customers will have the facility of filling up a form

and getting their chequebooks and debit cards immediately.

• Value Added Savings

This is an unique facility which gives employees liquidity of a

Savings Bank Account coupled with the high earnings of Fixed Deposits.

• DebitCard

We offer an International Debit card to our Salary Account customers to

provide them access to our extensive ATM network. The card also allows

them to shop at over 11,000 merchant establishments.

Interested employees can also apply for our International Debit Card 'N-Cash'. N-Cash is a Visa electron card, which gives the cardholder access

to more than a million merchant establishments and Visa ATMs all over

the world. The card comes with a unique points system through which the

cardholder earns points every time a merchandise transaction is made.

These points can be exchanged for cash later.

• FreeInternetBanking

ING Bank Internet Banking, ING Bank's Internet Banking facility gives

employees the freedom to operate their account from the convenience of

their home, office or from anywhere in the world.

• OnlineFundsTransfer

No need for cash withdrawals and cheque deposits. We give your

employees the facility to transfer funds online from any part of the world.




• MobileBanking

Employees can receive alerts on their mobile handsets providing them

information about their ING Bank Accounts and ING Credit Ca

Account. Now customers can also know the balance and other details of

their accounts by requisitioning for it through SMS.

• Phone Banking

Employees can use our phone banking facility to do banking transactions

through our customer care centres.

• FreeUtilityBillPayments

No queues. No wasted minutes. Now employees can pay utility bills like

electricity, phone bills etc. using ING Bank Internet Banking.

• ReimbursementAccount

If you opt to disburse/reimburse the travel, food etc. expenses via

reimbursement accounts, a reimbursement account can be opened

simultaneously along with the Salary Account savings bank account,

which would be linked together with the debit card already held by your employee.

• FreeRemittanceFacilities

Salary Account customers can avail of free remittance (demand drafts,

cheques, pay orders) up to Rs.25,000 on ING Bank network.

• OverdraftFacility

Employees get an emergency overdraft facility on request, based on their take-home salary. This would be adjusted in their following salary credit.

• Cash Delivery and Cheque Pick-up Facility

If your office is located far away from our branch or ATM, the

bank, on request deliver cash to you or pick up your cheques to be




deposited.

• Bureaudechange

Your employees can meet all their foreign currency needs,

internationally valid travelers cheques issued by Thomas Cook, American

Express, VISA and avail of a host of other travel related services.

SERVICES AND PRODUCT OFFERED BY COMPETETORS

ICICI BANK’S SALARY ACCOUNT

• ICICI offers salary accounts to all the employees of the companies

maintaining an account with bank, with Average Quarterly Balance of

Rs.zero.

• One can issue free DD & Pay Orders on any of the ICICI locations, though

there is a limit of Rs.25000 per day for such transactions.

• Bank also provides each account holder with all the modern day banking

facilities such as Net, Phone, Mobile and ATM banking services. Bank

provides ATM cum International Debit Card.

• Opening charges for a Current a/c and a/c maintenance charges for the

first year are waived off for all corporate salary account holders.

• ICICI bank offers a separate reimbursement a/c linked with salary account

in which employer can pay in all reimbursement such as travel, food and

other petty cash expenses to its employees. Separate annual statement is

provided for the account thereby helping the account holder in better tax

planning.

• ICICI provides its preferred saving a/c The ICICI Select to top three

executives of the company opting for the salary a/c offered by the bank.




• Any balance over and above Rs.10000 (in multiples of Rs.5000) is

transferred to high interest rate earning FD a/c called Quantum Optima.

CITIBANK’S SALARY ACCOUNTS

• Citibank offers Zero balance savings accounts to all the employees of the

companies maintaining an account with the bank.

• It provides a/c holder with all the latest banking facilities such as Internet,

Phone, Mobile and ATM banking.

• Bank provides ATM cum International Debit Card to all a/c holders.

• The bank delivers DD at the mailing address for a charge within 24hrs.

The DD can be requested online or through phone.

• Citibank has an alliance with New India Assurance to provide health

insurance to all the a/c holders with 50% discount on premiums.

• One can avail an overdraft up to twice his salary, subject to maximum of

Rs.50000 at interest rate of 2.33% per month.

• No free Demat a/c service is provided by Citibank

AXISBANK’S SALARY ACCOUNT

• UTI offers salary account to all the employees of the companies

maintaining an account with the bank.




• No minimum balance is required. That is the customers can open

account with zero balance.

• One can issue free DD and pay orders on any of the UTI bank

locations without any limit on the amount and number of transactions.

• The bank does not install Cheque Drop box at any of the companies.

• The bank also provides each a/c holder with all the modern day

facilities such as Net, Phone, Mobile and ATM cum International Debit

card to all the a/c holders

• Bank provides each a/c holder with computerized Passbook.

• Current account opening charges waived for all customers.

STANDARD CHARTERED BANK’S SALARY ACCOUNT

• Standard Chartered bank offers Zero balance account to all the

employees of any company which wants to maintain its corporate salary

accounts.

• The bank also provides each a/c holder with all the modern day facilities

such as Net, Phone, Mobile and ATM cum International Debit card to all

the a/c holders.

• Under a special offer scheme, the bank allows 4 free withdrawal per

month, fro any Visa ATM whereas other banks charge for the same

• Those account holders, who maintain an Average Quarterly Balance of

more than Rs. 10000 over a period of time, are offered free credit cards.




DISCUSSION ON TRAINING

STUDENT`S WORK PROFILE (ROLE & RESPONSIBILITIES)




Job Profile was SALES EXECUTIVE

The basic profile comprised of Promotion of the corporate salary accounts

(Conducting Market Research, Collecting Data Base, Analyzing the future

market, , scheduling appointment, generating mandate), which primarily

consisted ING’s aspira accounts of 2 models.

Challenge of the Job deals with Presentation of the Products by

Conducting Cold calls, product awareness activities, B2B, etc

The initial training and Orientation had been Conducted to introduce the

Organization Policies and Product Portfolio of existing product line of ING

VYSYA

The other aspects included also data collection, the various methods

adopted in data collection through various resources.

The sales training comprised of making cold calls, fixing up appointments

followed by meeting the clients, understand their needs and pitch in the

right product and also to handle objections after which the appointment

was converted in to a sale.

MY ROLES AND RESPONSIBILITIES:-




The responsibilities which were handed over to me as an sales executive (SE)

are Monitoring the activities of the corporate especially in sales aspects with in

regular time intervals

As our company deals with a various number of products

.1) ADVANTAGE SALARY ACCOUNTS

,2)ASPIRA SALARY ACCOUNTS

3)GOLD CREDIT CARDS

So sales of any of product can be done based on the eligibility criteria of the

organization .

MARKET SEGMENTATION OF CORPORATES

In the entire clusters Market Segmentation is done on the basis of descriptive

Characteristics : Geographic, Demographic.

Based on the corporate need and purpose in different regions and Preferences

segmentation and targeting cluster of corporate was done in the Prevailing

Market

Geographic

Region

City

Demographic Income

Occupation

Education

Socio-Economic Classification(SEC)




DATA COLLECTION

Current Contact Address of the Existing Customers, Competito

Customers, Future Customer, Hot Customer, and Cold Customer will be

maintained a Particular Data Base for research and sales purpose

FIXING APPOINTMENTS

Meeting customer according to their availability

Explaining the entire product Portfolio

Offers axis sable to the consumer at present and in future

Getting deal done by describing advantages prevailing with the right

product for the Right Purpose of Usage.

DEVELOPING RESEARCH REPORTS

Approaching Customers or End Users of the Product and Tracting Down

the Real time Performance and fuctional usage of the Product

Knowing the Present, Frequent issues Facing by the consumer and

forwarding them to the production Units in order to rectify .

With the hel[p of Market Research understanding their needs a

Comfordability in using the products will come to known

ENROLLING CUSTOMER LIST

Preparing Data base related to the customer interest in Purchasing

Products

Future Customers

Hot list customer

Future list Customers

TELE MARKETING

Getting hold of the customers who willing to open the accounts




Collecting their Contact address for the Purpose of posting, Pamphlets

,Leaf letters, and for invitation Cards for Product Demonstration.

FORWARDING FOLLOW UPS

Updating day to day Work Status to Superior

B2B & B2C APPROCH

Getting dealership Proposals from Automotives dealers

Getting dealership Proposals from Agro Fertilizers dealers

Requirement for sales:

1. To get appointment: To get an appointment is one of the most important

factor for sales. Once we get a chance to have a face to face interaction, then

convincing the customer as well as clearing their doubts becomes more easy.

2. Conviction power: We should have a better conviction power, so that we can

solve the problems of customer and can pitch them the right product.

3. Zeal to sales: This is one of the important features in sales profile that we

should have the zeal to sell under any circumstances.

4. Proper knowledge about product/Finance: Before selling product we should

have the proper knowledge regarding the product and its market position.

PROMOTIONAL ACTIVITIES: - Promotional activities include all the type of

activities that are going to help make more clients to be attracted towards the

company and to know the brand name, it’s products and services




DISCRIPTION OF LIVE EXPERIENCE

For the Moment I got charge as a Sales Executive the real Gut feeling of

stepping in of an established Company made me the Man of Commitment for my

ING VYSYA . Firstly I am really thank full to Mr. SAWAND (SM) & Mr.HARI

SINGH who gave me an opportunity to get enrolled as an employee with a

decent Pay roll in reputed company like ING VYSYA LTD . Secondly my Mentors

Mr.NARSIMHA RAO (ASM) helped me to fulfill my Tasks and guided me in

dealing different types of customers making our organizational assets by getting

loyal customers.

LEARNINGS

1) Creating WIN-WIN Situation for both business and the Customer

2) Finding the Exact needs of the Customer and guiding the Right Product for the

Right Purpose

3) How to maintain relationships with customers (Customer Relationship

Management)

4) Referring future Customers to the Organization through Market Survey

5) How to Conduct Demonstration for the Products of the Company.

6) The Process of Knowing the Competitor Strategies and their Future Plans

7) Getting aware of Real Adhoc situations during the Process of Sale of the

Product

8) Identifying different segments who suits for our product usage

9) Way of interacting towards business officials and end consumers

10) Applying marketing Strategies in order get business




CONTRIBUTION TO ORGANIZATION

Successfully accomplished two major projects of ING VYSYA

PROMOTION OF SALARY PRODUCT

Prepared Market Segmentation for Aspira & Advantage products

Customized and Prepared corporate Questionnaire

Conducted Survey with customersabout banking services and generated

Reports

Fixing appointments with Business officials

Listing the Major Problems faced by the customers.

Forwarding follow-ups to superiors

Conducted Demonstrations of Corporate

Keeping track of hot & future corporate List

Telemarketing

The duration, for which I have been working in the organization, I was supposed

to take various responsibilities in the work, like bringing business, Fixing

appointments and i have taken part in almost all the activities for the growth of

the organization as a team

During the first month I was more into the learning phase, where knowledge was

imparted to me by my seniors, trainers, but simultaneously I had been taking

care of work related responsibilities.




During second month I was into my real phase of work ,were my job is to visit

the corporate and know about their present banker and their services an

differentiate with our bank and give presentation on our products and services

After visiting the corporate my job is to do follow ups on daily basis and fixing

appointments with the concern person and giving proposal to them. If they feel

value edition in our products, final stage of my wok is to pick up mandate and

open salary accounts for the employees in the corporate.







STUDYOF THE SELECTED RESEARCH PROBEM

STATEMENT OF RESEARCH PROBLEM

The survey was mainly conducted to do comparative study of products and

services offered by selected Government, private and foreign banks and analyze

the products and services of selected banks. The survey was also conducted to

study the growth of retail product (salary account) of ING Vysya Bank.

STATEMENT OF RESEARCH OBJECTIVES

a Phone Banking .24-hour automated banking services with appropriate

phone numbers available.

b. ATM 24 –hour banking: Apart from routine transactions, you can also pay

your utility bills and transfer funds, at any of our `ATM’s across the country all

year round.

d Net banking Access your bank account from anywhere in the world,

at anytime, at your convenience.

e International Debit Card A card which help to do shopping in more than

one lac retial outlets in all over the country. You can spend in any currency,

and pay in Rupees.




f Mobile Banking Access your account on your mobile phone screen at no

time cost. Use SMS technology to conduct your banking transactions from

your cell phone.

g Bill Pay Pay your telephone, electricity and mobile phone bills through our

ATMs, Internet, Phone or mobile phone. NO more standing in long queues or

writing cheques.

RESEARCH DESIGN AND METHODOLOGY

The descriptive and analytical method is used for research project. There exists

gap in any sector in this life and environment. However, research can identify the

gap and quantify it wherever possible which helps in decision making. In the

present environmental context, adequate and systematic supply of information

coupled with appropriate tools and techniques of analysis has acquired a unique

significance. As a purposeful investigation of a problem research helps an

organization in finding out causes and clues for making sound and effective

decisions by applying scientific methodology to the art of management. Thus

research methodology plays a contributing role in decision making.

. Exploratory research involves an investigation of relationship among

variables without knowing why they are studied. It borders on the idle curiosity

approach, differing from it only in the investigator thinks that there may be a

payoff in the application somewhere in the forest of questions. In Conclusive

research there are two types viz, Descriptive Research and Experimental

Research. The descriptive research allows both implicit and explicit hypothesis to

be tested depending upon the research problem. Experiments are artificial in the




sense that the situations are usually created just for testing the purposes. Hence

based on all these facts and also suggestions from the noble project guide, an

Exploratory & Descriptive Research method is consider ideal and hence adopted

for this project work.

4.5.1 Sampling Technique:

Sampling refers to the scientific method of selecting a part of a lot or also called

‘Population’, the method of selecting the part of a population is called ‘Sapling

Technique’. It is described as under:

a) Sampling Methods: There are many methods of sampling viz,

Random sampling, Cluster sampling, Snowball sampling, Quota

sampling, Judgment sampling, Convenience sampling etc., in this

project work convenient and Judgmental Sampling technique is

used.

b) Sampling Unit: Corporate Salary Account people are surveyed from

different Banks of Bangalore city.

c) Sampling Population: In this survey, all the people who are having

corporate salary account form. In this project Sample size 150 (10

per bank/company),

d) Sampling Media: This refers to ‘How are they to be reached’, In this

case, all the selected respondents were reached personally by the

researcher. They were administered with the structured

questionnaire for collecting the necessary data. Some of the filled

questionnaires received through E-mail.

e) Sampling Size: This refers to ‘How many are to be surveyed’.

Conceptually the sample must reflect the characteristics of the

population. In this case, considering the subject matter o the project

work and also the suggestion from the project guide, a sample size

of 100 responds is received out of 150.




f) Sample Design: 10 employees in each company were given a

questionnaire set to fill, in this way data has been collected from

different employees of different companies.

g) Place of Study: The survey was carried out in different companies

and different banks in Bangalore City.

1. Raja rajeshwari group of intitutions

2. Invensis solutions pvt ltd.

3. BL Kashyap construction company ltd.

4. Tallenz software solutions ltd

5. Mahalaksmi apparels ltd.

6. RV College of engineering.

7. RMC ready mix ltd.

8. Vijaya powers ltd

9. Maine precession products ltd.

10.Vinjay software solutions ltd

SOURCES OF DATA

The study was done based on the collection of Primary and Secondary data.

Primary Data: Primary data was collected with the use of questionnaire and

personal interaction with the company employees and walk-in custome

randomly selected.

Secondary Data: Secondary data was collected by:

• Browsing different websites on Internet.

• Visiting all major libraries in Bangalore .British library, IIM library, City Central

library etc.

• Referring various articles, reports, journals, magazines on insurance.

• Referring several books on investment alternatives.

• Referring different books and previous project reports in college library.




• Referring from fact sheets, brochures, journals, reference books.

h) Instrumentation technique:

Primary data for the study was collected through a structured questionnaire

which was developed based on the objectives of the study. Th

questionnaires were distributed to the respondents with a request to return

after completing the same. Questionnaire was prepared very carefully using

both open end and closed technique to facilitates easy answering by ticking

the relevant choices so that it proved to be effective in collecting relevant

information. Ensuring that not deviating from the subject matter.

.

Few respondents who could not return the filled-in questionna

immediately personally returned it through E-mail.

i) Plan for Analysis: Data collected through structured questionnaire

were analyzed step by step, in the following manner:

1. The entire questionnaire were processed and edited as per the

objectives of the study.

2. The data were Tran scripted from the questionnaire to the work

sheet.

3. The data was tabulated for the purpose of consolidation and the

findings were recorded.

4. The consolidated data were analyzed and interpreted logically.

5. Based on the findings, conclusions were arrived at rationally.

6. Statistical methods such as tables, frequencies, percentages,

graphical representations, etc, are used as scientific approaches.

All the findings of the study are based o n the assumption that the information

given by the respondents presume to be accurate




ANALYSIS AND INTERPRETATION

(A). OPINION FOR INTERNET BANKING

InternetBanking

% respondents

Poor 0 0

Satisfactory 2 1

Average 3 1

Good 54 16Excellent 34 10

DK/NA 7 2

100 30

INTERNET BANKIN

0

10

20

30

40

50

60

1

Poor

Satisfactory

Average

Good

Excellent

DK/NA/NU

ANALYSISIt is being observed that more than 50% of the customers of the bank are

satisfied with the internet banking facility provided by the bank, and more thwn30% say that the internet banking is excellent.




(B).OPINION FOR PHONE BANKING

Phone Banking % NOPoor 7 2

Satisfactory 13 4

Average 37 11

Good 23 7

Excellent 13 4

DK/NA 7 2

100 30

ANALYSISIn the phone banking survey it is being observed that more than 35% customer says that the phone banking is satisfactory, and only 15% say that the phonebanking is excellent.


PHONE BANKING

0

10

20

30

40

1

Poor

Satisfactory

AverageGood

Excellent

DK/NA/NU

58



(C).OPINION FOR MOBILE BANKING

Mobile Banking

Poor 26 8Satisfactory 0 0

Average 12 4

Good 0 0

Excellent 0 0

DK/NA 62 18

100 30

MOBILE BANKIN

0

10

20

30

40

50

60

70

1

Poor

Satisfactory

Average

Good

Excellent

DK/NA/NU

.

ANALYSISFrom the above graph it has been seen that most of the respondent gaveopinion that they have no idea about ING’s mobile banking service, more than70% gave a anonymous opinion towards the mobile banking.




(D).OPINION FOR DEBIT CARD FACILITY

Debit Card Facilities

Poor 0 0

Satisfactory 10 3

Average 23 7

Good 40 12

Excellent 27 8

DK/NA 0 0

100 30

ANALYSIS

It has been observed that 70% of the respondents says that the debit cardfacility provided by the bank is good. And nearly 55%says that the debit cardfacility provided by the bank is excellent.


DEBIT CARD FECILITY

010

20

30

40

50

1

Poor

Satisfactory

Average

Good

Excellent

DK/NA/NU

60



(E). OPINION FOR RESPONSIVENESS OF STAFF

Responsiveness of Staff

Poor

20 6

Satisfactory 33 10

Average 27 8

Good 10 3

Excellent 10 3

DK/NA 0 0

100 30

.

ANALYSIS

After analyzing the questionnaires which were distributed among therespondents it was found that more 80% of the respondents said that the staff responsiveness was excellent.


RESPONSIVENESS OF STAFF

0

10

20

30

40

1

POOR

SATISFACTORY

AVERAGE

GOOD

EXCELLENT

DK/NA

61



(F). OPINION FOR WITH DRAWAL CEILING

Withdrawal Ceiling

Poor 2 1

Satisfactory 13 4

Average 26 8

Good 34 10

Excellent 25 7

DK/NA 0 0

100 30

WITHDRAWL CEILIN

0

5

10

15

20

25

30

35

40

1

POOR

SATISFACTORY

AVERAGE

GOOD

EXCELLENT

DK/NA

ANALYSIS

It has been observed by the that the withdrawal facility of the bank is good up tothe mark of 80%.Only few customers of the bank gave out the view that thewithdrawal flexibility of the bank is less than 15%.




(G).OPINION FOR ATMS/ATM NETWORKS

No. of ATMs/ATMNetwork

Poor 0 0

Satisfactory 0 0

Average 7 2

Good 10 23

Excellent 76 23

DK/NA 7 2

100 30

ANALYSIS

The above given graphical analysis is done by taking into consideration that allthe ATMs of all the banks are accessible by anyone.


NO. OF ATMs/ATM NETWORK

010

20

30

40

50

60

70

80

1

POORSATISFACTORY

AVERAGEGOODEXCELLENT

DK/NA

63



(H).OPINION FOR NUMBER OF BRANCHES.

Number of Branches

Poor 0 0

Satisfactory 6 2

Average 13 4

Good 45 13

Excellent 30 9

DK/NA 6 2

100 30

ANALYSIS

The above given analysis shows that the customers are quiet satisfied with thenumber of branches of INGVYSYA bank, the satisfaction level is up to the pointof 70%.


NUMBER OF BRANCHES

0

10

20

30

40

50

1

POOR

SATISFACTORY

AVERAGEGOOD

EXCELLENT

DK/NA

64



(I).OPINION FOR 24 HRS CALL CENTER SERVICES

24-hrs Call Center Service

Poor 6 2

Satisfactory 22 6

Average 32 10

Good 17 5

Excellent 10 3

DK/NA 13 4

100 30

ANALYSIS

It is clear from the graph is that about 90% of the respondents say that the HRScall centre service of the bank is average, and about 55% say that it is excellent.


24-HRS CALL CENTER SERVICE

0

510

1520

25

30

35

1

POORSATISFACTORY


DK/NA

65



(J). OPINION FOR OVERALL PERFORMANCE

Overall Performance

Poor 10 3

Satisfactory16 5

Average27 8

Good30 9

Excellent17 5

ANALYSIS

About 90% of the respondents say that the overall performance of the bank is upto their mark of expectation. And the percentage of the people saying that theoverall performance is poor is about 20%


OVERALL PERFORMANCE

0

510

15

20

25

30

35

1

POORSATISFACTORY


DK/NA

66






SUMMARY OF LEARNING EXPERIENCE

Organization is well maintained. The important concepts I came across in the

company is:

• It is my great experience in M where I gained a sufficient Knowledge on

organization structure.

• Noticed actual delegation of the authority and responsibility.

• I learnt how to behave in the organization and how to deal with the people.

• I learnt how the theoretical aspects are applied in management to take

decisions.

•

It requires a great patience to deal with customers because customers are

different in their personality.

• How decisions are made at the top level to solve day today problems.

• How the employees are motivated to get the work done.

• Interpersonal skill to work in organizations




CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION

The brand image is major factor influencing the customers to choose a particular

bank and its products and services. The quality of services affects the decisions

very strongly.

The corporate salary account, which I have spoken about, throughout this

report is a very comprehensive product & ideally suited for any working individual

& his/her employer. The benefits one gets availing this product is the panacea to

most of their financial concern.

With nationalized bank competing neck to neck, with private Indian players

and global giants, only the best will sustain, survive and succeed .The battle is

intense only the customer will decide the fate of all.

ING Vysya Bank could continue to grow only if it grabs the customer

focus and creates a requirement even before the customer feels the need of it.

In the end all I would like to say is this that I could have missed some

issues that could prove crucial for the future of retail business from ING Vysya

Banks’ perspective.

This subject of my project has a vast scope and could be taken up as a serious

investigation in order to boost the growth of ING Vysya Bank.




As I said earlier, there is a vast scope in improvement. I only hope this small

effort on my part could contribute in a positive way to the growth and

development of ING Vysya Bank.

RECOMMENDATIONS

• As the company is offering different types of products and services to the

corporates but they are similar to that of copetitors what they offer ,but

their should be some deferenriatin between them

• The company is also advised to change the eligibility criteria for the

corporates ,as its main criteria is avg salary of the corporate should be

more than 15,000 but most of the corporates lie between 10 to 15

thousands

• The overdraft facility given to the customers should be increased by 50%

• As Female entrepreneur/Professionals are increasing and they are getting

good position, therefore the company is advised to create awareness

among the final segment of the society by targeting them in their

advertisements.




Appendix

QUESTTIONARE

NAME:____________________________

AGE:______________________________

BANK:____________________________

Please rate the following attributes on a five point scale:1-----------2--------------3--------4----------5---------------------0

Poor Satisfactory Average Good Excellent Don’t know/ Not Aware

Internet banking □1

Phone Banking □1

Mobile Banking □1

Debit card facilities □1 □

Responsiveness of staff □1 □2

Incentive to earn higher returns/Quantum optima □1 □2




Withdrawal limit per ATM transaction □1

Number of Branches □1 □

24-hour Call Center service □1 □2

Banking hours

Visibility in terms of Advertising/Sales promotions etc. □1 □2 □ 3

OVERALL PERCEPTION □1




Bibliography

TEXT BOOKS :

1. Research Methodology

(Second Edition)

JOURNALS :

1. ING Vysya bank universe

2. Business Today (August 2007 TO APR 2008)

3. Internal reports

4. Presentation material

5. Brochures

WEBSITES:

. 1.www.ing vysya bank.com

2. www.google.co.in

3. www.icicibank.com


http://www.google.co.in/

http://www.icicibank.com/

http://www.google.co.in/

http://www.icicibank.com/



4. www.citibank.com

5. www.utibank.com

http://www.citibank.com/


http://www.utibank.com/


http://www.utibank.com/

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