INDUSTRY PROFILE:A bank is a financial intermediary and money creator that creates money by lending money to a

borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending
activities can be performed directly by loaning or indirectly throughcapital markets. Due to their
importance in the financial system and influence on national economies, banks are highly
regulated in most countries. Most nations have institutionalized a system known as fractional
reserve banking, central banking, under which banks hold liquid assets equal to only a portion of
their current liabilities. In addition to other regulations intended to ensure liquidity, banks are
generally subject to minimum capital requirements based on an international set of capital
standards, known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance
Italy but in many ways was a continuation of ideas and concepts of credit and lending that had its
roots in the ancient world. In the history of banking, a number of banking dynasties notably,
the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds have played a
central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena,
while the oldest existing merchant bank is Berenberg Bank.
HISTORY:The origins of modern banking can be traced to medieval and early Renaissance Italy, to the rich
cities in the north like Florence,Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families
dominated banking in 14th century Florence, establishing branches in many other parts
of Europe. One of the most famous Italian banks was the Medici Bank, set up by Giovanni di
Bicci de' Medici in 1397. The earliest known state deposit bank, Banco di San Giorgio (Bank of
St. George), was founded in 1407 at Genoa, Italy.
Modern banking practices, including fractional reserve banking and the issue of banknotes,
emerged in the 17th and 18th centuries. Merchants started to store their gold with
the goldsmiths of London, who possessed private vaults, and charged a fee for that service. In
exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the
quantity and purity of the metal they held as a bailee; these receipts could not be assigned, only
the original depositor could collect the stored goods.
Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led to
the development of modern banking practices; promissory notes (which evolved into banknotes)
were issued for money deposited as a loan to the goldsmith. [4] The goldsmith paid interest on

these deposits. Since the promissory notes were payable on demand, and the advances (loans) to
the goldsmith's customers were repayable over a longer time period, this was an early form
of fractional reserve banking. The promissory notes developed into an assignable instrument
which could circulate as a safe and convenient form of money backed by the goldsmith's promise
to pay, allowing goldsmiths to advance loans with little risk of default. Thus, the goldsmiths of
London became the forerunners of banking by creating new money based on credit.
The Bank of England was the first to begin the permanent issue of banknotes, in 1695. The
Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning of the
19th century a bankers' clearing house was established in London to allow multiple banks to
clear transactions. The Rothschilds pioneered international finance on a large scale, financing the
purchase of the Suez canal for the British government.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy,
which has been operating continuously since 1472. It is followed by Berenberg Bank of
Hamburg (1590) and Sveriges Riksbank of Sweden (1668).
ORIGIN OF THE WORD:The word bank was borrowed in Middle English from Middle French banque, from
Old Italian banca, from Old High German banc, bank "bench, counter". Benches were used as
desks or exchange counters during the Renaissance by Florentine bankers, who used to make
their transactions atop desks covered by green tablecloths.
One of the oldest items found showing money-changing activity is a silver Greek drachma coin
from ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350325 BC,
presented in the British Museum in London. The coin shows a banker's table (trapeza) laden with
coins, a pun on the name of the city. In fact, even today in Modern Greek the word Trapeza
means both a table (in formal language) and a bank (in everyday speech). [The everyday word
used for "table" is trapezi , a modern form of the archaic trapeza ].
DEFINATION:The definition of a bank varies from country to country. See the relevant country page (below)
for more information.
Under English common law, a banker is defined as a person who carries on the business of
banking, which is specified as:

conducting current accounts for his customers,

paying cheques drawn on him/her, and

collecting cheques for his/her customers.

In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in
relation to negotiable instruments, includingcheques, and this Act contains a statutory definition
of the term banker: banker includes a body of persons, whether incorporated or not, who carry
on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it
is actually functional, because it ensures that the legal basis for bank transactions such as
cheques does not depend on how the bank is structured or regulated.
The business of banking is in many English common law countries not defined by statute but by
common law, the definition above. In other English common law jurisdictions there are statutory
definitions of the business of banking or banking business. When looking at these definitions it is
important to keep in mind that they are defining the business of banking for the purposes of the
legislation, and not necessarily in general. In particular, most of the definitions are from
legislation that has the purpose of regulating and supervising banks rather than regulating the
actual business of banking. However, in many cases the statutory definition closely mirrors the
common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current or deposit account,
paying and collecting cheques drawn by or paid in by customers, the making of advances to
customers, and includes such other business as the Authority may prescribe for the purposes
of this Act; (Banking Act (Singapore), Section 2, Interpretation).
"banking business" means the business of either or both of the following:
1. receiving from the general public money on current, deposit, savings or other similar
account repayable on demand or within less than [3 months] ... or with a period of call or
notice of less than that period;
2. paying or collecting checks drawn by or paid in by customers.

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct
debit and internet banking, the cheque has lost its primacy in most banking systems as a payment
instrument. This has led legal theorists to suggest that the cheque based definition should be
broadened to include financial institutions that conduct current accounts for customers and
enable customers to pay and be paid by third parties, even if they do not pay and collect checks.
Banking
Standard activities

Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers on the bank, and collecting cheques deposited to customers'
current accounts. Banks also enable customer payments via other payment methods such
as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS,
and automated teller machine(ATM).
Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by
making advances to customers on current accounts, by making installment loans, and by
investing in marketable debt securities and other forms of money lending.
Banks provide different payment services, and a bank account is considered indispensable by
most businesses and individuals. Non-banks that provide payment services such as remittance
companies are normally not considered as an adequate substitute for a bank account.
Banks can create new money when they make a loan. New loans throughout the banking system
generate new deposits elsewhere in the system. The money supply is usually increased by the act
of lending, and reduced when loans are repaid faster than new ones are generated. In the United
Kingdom between 1997 and 2007, there was an increase in the money supply, largely caused by
much more bank lending, which served to push up property prices and increase private debt. The
amount of money in the economy as measured by M4 in the UK went from 750 billion to 1700
billion between 1997 and 2007, much of the increase caused by bank lending. If all the banks
increase their lending together, then they can expect new deposits to return to them and the
amount of money in the economy will increase. Excessive or risky lending can cause borrowers
to default, the banks then become more cautious, so there is less lending and therefore less
money so that the economy can go from boom to bust as happened in the UK and many other
Western economies after 2007.
Range of activities
Activities undertaken by large banks include investment banking, corporate banking, private
banking, insurance, consumer finance, foreign exchange trading, commodity trading,trading in
equities, futures and options trading and money market trading.
Channels
Banks offer many different channels to access their banking and other services:

Automated Teller Machines

A branch is a retail location

Call center

Mail: most banks accept cheque deposits via mail and use mail to communicate to their
customers, e.g. by sending out statements

Mobile banking is a method of using one's mobile phone to conduct banking transactions

Online banking is a term used for performing multiple transactions, payments etc. over
the Internet

Relationship Managers, mostly for private banking or business banking, often visiting
customers at their homes or businesses

Telephone banking is a service which allows its customers to conduct transactions over
the telephone with automated attendant or when requested with telephone operator

Video banking is a term used for performing banking transactions or professional banking
consultations via a remote video and audio connection. Video banking can be performed via
purpose built banking transaction machines (similar to an Automated teller machine), or via
a video conference enabled bank branch clarification

DSA is a Direct Selling Agent, who works for the bank based on a contract. Its main job

is to increase the customer base for the bank.

Business model
A bank can generate revenue in a variety of different ways including interest, transaction fees
and financial advice. The main method is via charging interest on the capital it lends out to
customers. The bank profits from the difference between the level of interest it pays for deposits
and other sources of funds, and the level of interest it charges in its lending activities.
This difference is referred to as the spread between the cost of funds and the loan interest rate.
Historically, profitability from lending activities has been cyclical and dependent on the needs
and strengths of loan customers and the stage of the economic cycle. Fees and financial advice
constitute a more stable revenue stream and banks have therefore placed more emphasis on these
revenue lines to smooth their financial performance.
In the past 20 years American banks have taken many measures to ensure that they remain
profitable while responding to increasingly changing market conditions.

First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with
investment and insurance houses. Merging banking, investment, and insurance functions
allows traditional banks to respond to increasing consumer demands for "one-stop shopping"
by enabling cross-selling of products (which, the banks hope, will also increase profitability).

Second, they have expanded the use of risk-based pricing from business lending to
consumer lending, which means charging higher interest rates to those customers that are
considered to be a higher credit risk and thus increased chance of default on loans. This helps
to offset the losses from bad loans, lowers the price of loans to those who have better credit
histories, and offers credit products to high risk customers who would otherwise be denied
credit.

Third, they have sought to increase the methods of payment processing available to the
general public and business clients. These products include debit cards, prepaid cards, smart
cards, and credit cards. They make it easier for consumers to conveniently make transactions
and smooth their consumption over time (in some countries with underdeveloped financial
systems, it is still common to deal strictly in cash, including carrying suitcases filled with
cash to purchase a home).
However, with convenience of easy credit, there is also increased risk that consumers will
mismanage their financial resources and accumulate excessive debt. Banks make money
from card products through interest charges and fees charged to cardholders,
and transaction fees to retailers who accept the bank's credit and/or debit cards for
payments.
This helps in making profit and facilitates economic development as a whole.
Products

Retail banking

Savings account

Money market account

Certificate of deposit (CD)

Individual retirement account (IRA)

Credit card

Debit card

Mortgage

Mutual fund

Personal loan

Time deposits

ATM card

Current Accounts

Cheque books

Business (or commercial/investment) banking

Business loan

Capital raising (Equity / Debt / Hybrids)

Mezzanine finance

Project finance

Revolving credit

Risk management (FX, interest rates, commodities, derivatives)

Term loan

Cash Management Services (Lock box, Remote Deposit Capture, Merchant Processing)

credit services

Capital and risk

Banks face a number of risks in order to conduct their business, and how well these risks are
managed and understood is a key driver behind profitability, and how much capital a bank is
required to hold. Bank capital consists principally of equity, retained earnings andsubordinated
debt.
Some of the main risks faced by banks include:

Credit risk: risk of loss arising from a borrower who does not make payments as
promised.

Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the
market to prevent a loss (or make the required profit).

Market risk: risk that the value of a portfolio, either an investment portfolio or a trading
portfolio, will decrease due to the change in value of the market risk factors.

Operational risk: risk arising from execution of a company's business functions.

Reputational risk: a type of risk related to the trustworthiness of business.

Macroeconomic risk: risks related to the aggregate economy the bank is operating in.[17]

The capital requirement is a bank regulation, which sets a framework within which a bank or
depository institution must manage its balance sheet. The categorization of assets and capital is
highly standardized so that it can be risk weighted.
Banks in the economy
Economic functions
The economic functions of banks include:
1. Issue of money, in the form of banknotes and current accounts subject to check or
payment at the customer's order. These claims on banks can act as money because they
are negotiable or repayable on demand, and hence valued at par. They are effectively
transferable by mere delivery, in the case of banknotes, or by drawing a check that the
payee may bank or cash.
2. Netting and settlement of payments banks act as both collection and paying agents for
customers, participating in interbank clearing and settlement systems to collect, present,
be presented with, and pay payment instruments. This enables banks to economize on
reserves held for settlement of payments, since inward and outward payments offset each
other. It also enables the offsetting of payment flows between geographical areas,
reducing the cost of settlement between them.
3. Credit intermediation banks borrow and lend back-to-back on their own account as
middle men.
4. Credit quality improvement banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement

comes from diversification of the bank's assets and capital which provides a buffer to
absorb losses without defaulting on its obligations. However, banknotes and deposits are
generally unsecured; if the bank gets into difficulty and pledges assets as security, to
raise the funding it needs to continue to operate, this puts the note holders and depositors
in an economically subordinated position.
5. Asset liability mismatch/Maturity transformation banks borrow more on demand debt
and short term debt, but provide more long term loans. In other words, they borrow short
and lend long. With a stronger credit quality than most other borrowers, banks can do
this by aggregating issues (e.g. accepting deposits and issuing banknotes) and
redemptions (e.g. withdrawals and redemption of banknotes), maintaining reserves of
cash, investing in marketable securities that can be readily converted to cash if needed,
and raising replacement funding as needed from various sources (e.g. wholesale cash
markets and securities markets).
6. Money creation whenever a bank gives out a loan in a fractional-reserve
banking system, a new sum of virtual money is created.
Bank crisis
Banks are susceptible to many forms of risk which have triggered occasional systemic crises.
These include liquidity risk (where many depositors may request withdrawals in excess of
available funds), credit risk (the chance that those who owe money to the bank will not repay it),
and interest rate risk (the possibility that the bank will become unprofitable, if rising interest
rates force it to pay relatively more on its deposits than it receives on its loans).
Banking crises have developed many times throughout history, when one or more risks have
emerged for a banking sector as a whole. Prominent examples include the bank runthat occurred
during the Great Depression, the U.S. Savings and Loan crisis in the 1980s and early 1990s,
the Japanese banking crisis during the 1990s, and the sub-prime mortgage crisis in the 2000s.
Size of global banking industry
Assets of the largest 1,000 banks in the world grew by 6.8% in the 2008/2009 financial year to a
record US$96.4 trillion while profits declined by 85% to US$115 billion. Growth in assets in
adverse market conditions was largely a result of recapitalization. EU banks held the largest
share of the total, 56% in 2008/2009, down from 61% in the previous year. Asian banks' share
increased from 12% to 14% during the year, while the share of US banks increased from 11% to
13%. Fee revenue generated by global investment banking totaled US$66.3 billion in 2009, up
12% on the previous year.

The United States has the most banks in the world in terms of institutions (7,085 at the end of
2008) and possibly branches (82,000). This is an indicator of the geography and regulatory
structure of the USA, resulting in a large number of small to medium-sized institutions in its
banking system. As of Nov 2009, China's top 4 banks have in excess of 67,000 branches
(ICBC:18000+,BOC:12000+, CCB:13000+, ABC:24000+) with an additional 140 smaller banks
with an undetermined number of branches. Japan had 129 banks and 12,000 branches. In 2004,
Germany, France, and Italy each had more than 30,000 branchesmore than double the 15,000
branches in the UK.
Regulation
Main article: Banking regulation
Currently commercial banks are regulated in most jurisdictions by government entities and
require a special bank license to operate.
Usually the definition of the business of banking for the purposes of regulation is extended to
include acceptance of deposits, even if they are not repayable to the customer's orderalthough
money lending, by itself, is generally not included in the definition.
Unlike most other regulated industries, the regulator is typically also a participant in the market,
being either a publicly or privately governed central bank. Central banks also typically have a
monopoly on the business of issuing banknotes. However, in some countries this is not the case.
In the UK, for example, the Financial Services Authority licenses banks, and some commercial
banks (such as the Bank of Scotland) issue their own banknotes in addition to those issued by
the Bank of England, the UK government's central bank.
Banking law is based on a contractual analysis of the relationship between the bank (defined
above) and the customerdefined as any entity for which the bank agrees to conduct an account.
The law implies rights and obligations into this relationship as follows:
1. The bank account balance is the financial position between the bank and the customer:
when the account is in credit, the bank owes the balance to the customer; when the
account is overdrawn, the customer owes the balance to the bank.
2. The bank agrees to pay the customer's checks up to the amount standing to the credit of
the customer's account, plus any agreed overdraft limit.
3. The bank may not pay from the customer's account without a mandate from the customer,
e.g. a check drawn by the customer.

4. The bank agrees to promptly collect the checks deposited to the customer's account as the
customer's agent, and to credit the proceeds to the customer's account.
5. The bank has a right to combine the customer's accounts, since each account is just an
aspect of the same credit relationship.
6. The bank has a lien on checks deposited to the customer's account, to the extent that the
customer is indebted to the bank.
7. The bank must not disclose details of transactions through the customer's account
unless the customer consents, there is a public duty to disclose, the bank's interests
require it, or the law demands it.
8. The bank must not close a customer's account without reasonable notice, since checks are
outstanding in the ordinary course of business for several days.
These implied contractual terms may be modified by express agreement between the customer
and the bank. The statutes and regulations in force within a particular jurisdiction may also
modify the above terms and/or create new rights, obligations or limitations relevant to the bankcustomer relationship.
Some types of financial institution, such as building societies and credit unions, may be partly or
wholly exempt from bank license requirements, and therefore regulated under separate rules.
The requirements for the issue of a bank license vary between jurisdictions but typically include:
1. Minimum capital
2. Minimum capital ratio
3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, or senior
officers
4. Approval of the bank's business plan as being sufficiently prudent and plausible.
Types of banks
Banks' activities can be divided into:

retail banking, dealing directly with individuals and small businesses;

business banking, providing services to mid-market business;

corporate banking, directed at large business entities;

private

banking,

providing

wealth

management

services

to high-net-worth

individuals and families;

investment banking, relating to activities on the financial markets.

Most banks are profit-making, private enterprises. However, some are owned by government, or
are non-profit organizations.
Types of banks

Commercial banks: the term used for a normal bank to distinguish it from an investment
bank. After the Great Depression, the U.S. Congress required that banks only engage in
banking activities, whereas investment banks were limited to capital market activities. Since
the two no longer have to be under separate ownership, some use the term "commercial
bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans
from corporations or large businesses.

Community banks: locally operated financial institutions that empower employees to

make local decisions to serve their customers and the partners.

Community development banks: regulated banks that provide financial services and
credit to under-served markets or populations.

Land development banks: The special banks providing Long Term Loans are called Land
Development Banks, in the short, LDB. The history of LDB is quite old. The first LDB was
started at Jhang in Punjab in 1920. The main objective of the LDBs are to promote the
development of land, agriculture and increase the agricultural production. The LDBs provide
long-term finance to members directly through their branches.

Credit unions or Co-operative Banks: not-for-profit cooperatives owned by the depositors

and often offering rates more favorable than for-profit banks. Typically, membership is
restricted to employees of a particular company, residents of a defined area, members of a
certain union or religious organizations, and their immediate families.

Postal savings banks: savings banks associated with national postal systems.

Private banks: banks that manage the assets of high-net-worth individuals. Historically a
minimum of USD 1 million was required to open an account, however, over the last years
many private banks have lowered their entry hurdles to USD 250,000 for private investors.

Offshore banks: banks located in jurisdictions with low taxation and regulation. Many
offshore banks are essentially private banks.

Savings bank: in Europe, savings banks took their roots in the 19th or sometimes even in
the 18th century. Their original objective was to provide easily accessible savings products to
all strata of the population. In some countries, savings banks were created on public
initiative; in others, socially committed individuals created foundations to put in place the
necessary infrastructure. Nowadays, European savings banks have kept their focus on retail
banking: payments, savings products, credits and insurances for individuals or small and
medium-sized enterprises. Apart from this retail focus, they also differ from commercial
banks by their broadly decentralized distribution network, providing local and regional
outreachand by their socially responsible approach to business and society.

Building societies and Lands banks: institutions that conduct retail banking.

Ethical banks: banks that prioritize the transparency of all operations and make only what
they consider to be socially responsible investments.

A Direct or Internet-Only bank is a banking operation without any physical bank

branches, conceived and implemented wholly with networked computers.

Types of investment banks

Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for
their own accounts, make markets, provide investment management, and advise corporations
on capital market activities such as mergers and acquisitions.

Merchant banks were traditionally banks which engaged in trade finance. The modern
definition, however, refers to banks which provide capital to firms in the form of shares
rather than loans. Unlike venture caps, they tend not to invest in new companies.
Both combined

Universal banks, more commonly known as financial services companies, engage in

several of these activities. These big banks are very diversified groups that, among other
services, also distribute insurance hence the term bank assurance, a portmanteau

word combining "banque or bank" and "assurance", signifying that both banking and
insurance are provided by the same corporate entity.
Other types of banks

Central banks are normally government-owned and charged with quasi-regulatory

responsibilities, such as supervising commercial banks, or controlling the cash interest rate.
They generally provide liquidity to the banking system and act as the lender of last resort in
event of a crisis.

Islamic banks adhere to the concepts of Islamic law. This form of banking revolves
around several well-established principles based on Islamic canons. All banking activities
must avoid interest, a concept that is forbidden in Islam. Instead, the bank earns profit
(markup) and fees on the financing facilities that it extends to customers.
United States
Main article: Banking in the United States
The United States banking industry is one of the most heavily regulated in the world, [20] with
multiple specialized and focused regulators. All banks with FDIC-insured deposits have
the Federal Deposit Insurance Corporation (FDIC) as a regulator. However, for soundness
examinations (i.e., whether a bank is operating in a sound manner), the Federal Reserve is the
primary federal regulator for Fed-member state banks; the Office of the Comptroller of the
Currency (OCC) is the primary federal regulator for national banks; and the Office of Thrift
Supervision, or OTS, is the primary federal regulator for thrifts. State non-member banks are
examined by the state agencies as well as the FDIC. National banks have one primary regulator
the OCC. Qualified Intermediaries & Exchange Accommodators are regulated by MAIC.
Each regulatory agency has their own set of rules and regulations to which banks and thrifts must
adhere.
The Federal Financial Institutions Examination Council (FFIEC) was established in 1979 as a
formal inter-agency body empowered to prescribe uniform principles, standards, and report
forms for the federal examination of financial institutions. Although the FFIEC has resulted in a
greater degree of regulatory consistency between the agencies, the rules and regulations are
constantly changing.
In addition to changing regulations, changes in the industry have led to consolidations within the
Federal Reserve, FDIC, OTS, MAIC and OCC. Offices have been closed, supervisory regions
have been merged, staff levels have been reduced and budgets have been cut. The remaining
regulators face an increased burden with increased workload and more banks per regulator.
While banks struggle to keep up with the changes in the regulatory environment, regulators

struggle to manage their workload and effectively regulate their banks. The impact of these
changes is that banks are receiving less hands-on assessment by the regulators, less time spent
with each institution, and the potential for more problems slipping through the cracks, potentially
resulting in an overall increase in bank failures across the United States.
The changing economic environment has a significant impact on banks and thrifts as they
struggle to effectively manage their interest rate spread in the face of low rates on loans, rate
competition for deposits and the general market changes, industry trends and economic
fluctuations. It has been a challenge for banks to effectively set their growth strategies with the
recent economic market. A rising interest rate environment may seem to help financial
institutions, but the effect of the changes on consumers and businesses is not predictable and the
challenge remains for banks to grow and effectively manage the spread to generate a return to
their shareholders.
The management of the banks asset portfolios also remains a challenge in todays economic
environment. Loans are a banks primary asset category and when loan quality becomes suspect,
the foundation of a bank is shaken to the core. While always an issue for banks, declining asset
quality has become a big problem for financial institutions. There are several reasons for this,
one of which is the lax attitude some banks have adopted because of the years of good times.
The potential for this is exacerbated by the reduction in the regulatory oversight of banks and in
some cases depth of management. Problems are more likely to go undetected, resulting in a
significant impact on the bank when they are discovered. In addition, banks, like any business,
struggle to cut costs and have consequently eliminated certain expenses, such as adequate
employee training programs.
Banks also face a host of other challenges such as aging ownership groups. Across the country,
many banks management teams and board of directors are aging. Banks also face ongoing
pressure by shareholders, both public and private, to achieve earnings and growth projections.
Regulators place added pressure on banks to manage the various categories of risk. Banking is
also an extremely competitive industry. Competing in the financial services industry has become
tougher with the entrance of such players as insurance agencies, credit unions, check cashing
services, credit card companies, etc.
As a reaction, banks have developed their activities in financial instruments, through financial
market operations such as brokerage and MAIC trust & Securities Clearing services trading and
become big players in such activities.
Loan activities of banks
To be able to provide home buyers and builders with the funds needed, banks must compete for
deposits. The phenomenon of disintermediation had to dollars moving from savings accounts and

into direct market instruments such as U.S. Department of Treasury obligations, agency
securities, and corporate debt. One of the greatest factors in recent years in the movement of
deposits was the tremendous growth of money market funds whose higher interest rates attracted
consumer deposits.
To compete for deposits, US savings institutions offer many different types of plans.

Passbook or ordinary deposit accounts permit any amount to be added to or withdrawn

from the account at any time.

NOW and Super NOW accounts function like checking accounts but earn interest. A
minimum balance may be required on Super NOW accounts.

Money market accounts carry a monthly limit of preauthorized transfers to other

accounts or persons and may require a minimum or average balance.

Certificate accounts subject to loss of some or all interest on withdrawals before

maturity.

Notice accounts the equivalent of certificate accounts with an indefinite term. Savers
agree to notify the institution a specified time before withdrawal.

Individual retirement accounts (IRAs) and Keogh plans a form of retirement savings
in which the funds deposited and interest earned are exempt from income tax until after
withdrawal.

Checking accounts offered by some institutions under definite restrictions.

All withdrawals and deposits are completely the sole decision and responsibility of the
account owner unless the parent or guardian is required to do otherwise for legal reasons.

Club accounts and other savings accounts designed to help people save regularly to
meet certain goals.

Accounting for bank accounts

Bank statements are accounting records produced by banks under the various accounting
standards of the world. Under GAAP and MAIC there are two kinds of accounts: debit and
credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and

Expenses. The bank credits a credit account to increase its balance, and debits a credit account to
decrease its balance.
The customer debits his or her savings/bank (asset) account in his ledger when making a deposit
(and the account is normally in debit), while the customer credits a credit card (liability) account
in his ledger every time he spends money (and the account is normally in credit). When the
customer reads his bank statement, the statement will show a credit to the account for deposits,
and debits for withdrawals of funds. The customer with a positive balance will see this balance
reflected as a credit balance on the bank statement. If the customer is overdrawn, he will have a
negative balance, reflected as a debit balance on the bank statement.
Brokered deposits
One source of deposits for banks is brokers who deposit large sums of money on the behalf of
investors through MAIC or other trust corporations. This money will generally go to the banks
which offer the most favorable terms, often better than those offered local depositors. It is
possible for a bank to engage in business with no local deposits at all, all funds being brokered
deposits. Accepting a significant quantity of such deposits, or "hot money" as it is sometimes
called, puts a bank in a difficult and sometimes risky position, as the funds must be lent or
invested in a way that yields a return sufficient to pay the high interest being paid on the
brokered deposits. This may result in risky decisions and even in eventual failure of the bank.
Banks which failed during 2008 and 2009 in the United States during the global financial
crisis had, on average, four times more brokered deposits as a percent of their deposits than the
average bank. Such deposits, combined with risky real estate investments, factored into
the savings and loan crisis of the 1980s. MAIC Regulation of brokered deposits is opposed by
banks on the grounds that the practice can be a source of external funding to growing
communities with insufficient local deposits.

Globalization in the Banking Industry

In modern time there has been huge reductions to the barriers of global competition in the
banking industry. Increases in telecommunications and other financial technologies, such as
Bloomberg, have allowed banks to extend their reach all over the world, since they no longer
have to be near customers to manage both their finances and their risk. The growth in crossborder activities has also increased the demand for banks that can provide various services across
borders to different nationalities. However, despite these reductions in barriers and growth in
cross-border activities, the banking industry is nowhere near as globalized as some other
industries. In the USA, for instance, very few banks even worry about the Riegle-Neal Act,

which promotes more efficient interstate banking. In the vast majority of nations around globe
the market share for foreign owned banks is currently less than a tenth of all market shares for
banks in a particular nation. One reason the banking industry has not been fully globalized is that
it is more convenient to have local banks provide loans to small business and individuals. On the
other hand for large corporations, it is not as important in what nation the bank is in, since the
corporation's financial information is available around the globe.

COMPANYS PROFILE:-

ING is a global financial institution of Dutch origin offering banking, insurance and asset
management to over 60 million private, corporate and institutional clients in more than 50
countries. With a diverse workforce of over 114,000 people, ING comprises a broad spectrum of
prominent companies that increasingly serve their clients under the ING brand.

ING Vysya Bank Limited, is an Indian retail bank, formed after the global financial institution
ING acquired a 44% stake in Vysya Bank Ltd in October 2002, and took over management of the
bank.

On the other hand, ING group originated in 1990 from the merger between Nationale
Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV.
Combining roots and ambitions, the newly formed company called Internationale Nederlanden
Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by
changing the statutory name to ING Group N.V..

ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile.
ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of
financial services through the distribution channels of the clients preference in markets where
ING can create value.

In India, ING is present in all three fields of banking, insurance and asset management in the
form of ING, ING Vysya Life Insurance and ING Investment Management respectively. The
presence in all three fields signifies the importance that the group attaches to the Indian markets
and the group's operations here, as well as its bullish future outlook on the country.
ING Vysya offers a large range of products from banking to insurance to wealth management. In
banking it offers various kinds of accounts depending on the needs of customers. The types of
accounts offered by ING are Orange Savings Account, Formula Savings Account, Platina
Savings Account and in case of current accounts it has Orange Current Account, Advantage
Current Account, General Current Account, Comfort Current Account and Platina Current
Account. Besides this bank also has locker facilities at most of its branches.

In case of insurance the company has traditional as well as Unit Linked Plans. The various
insurance policies of the company are available to meet the needs of all customers be it for kids,
elders or retired people the company has a wide range. Creating Life is one of the most popular
traditional insurance plan. Easy Life is a ULIP plan and Freedom Life is a pension plans. Besides
these many other plans such as reassuring life, Creating Star are some other plans offered by the
company.
On Nov 20th 2014, in an all stock amalgamation, ING Vysya Bank decided to merge with Kotak
Mahindra Bank, creating the fourth largest private sector bank in India.
On April 1st ,2015, it has been publically known as Kotak Mahindra Bank.

MISSION & VISION:Mission of Ing Vysya :

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

Vision of Ing Vysya bank:

To make compliance systems a more effective part in the business.

NATURE OF THE BUSINESS CARRIED:

ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank
and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage
and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset management company
with a retail investor focus. ING Vysya is globally service provider in banking and insurance sector.

ING Vysya Bank

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a
premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during
Oct 2002. The origin of the erstwhile Vysya Bank was in the year 1930. The last year (2005) was the 75 th
anniversary or Platinum Jubilee year.

ING Vysya Mutual Funds

ING Vysya Mutual Funds brings with it the vast international experience and professional expertise of the
ING Group. With presence in eight cities across the country, and over Rs.1600 crores of Asset Under
Management, ING Vysya Mutual Fund aims to provide investors with the most practical and secure
investment opportunities to invest their valuable savings. This is combined with a range of innovative
options to deliver healthy returns combined with a high degree of security. Currently, the fund offers four
equity, five debt and two hybrid schemes to its investors.

ING VYSYA life insurance:IVL.co private limited entered pvt life insurance industry in India in sep 2001, & in a short span of 3 & a
half years has established itself a distinctive life insurance brand wuth an innovative , attractive and
customer friendly product portfolio and a professional advisor force. It also distributes products in close
co-operation with the ivb network. Currently it has over 10000 advisors in 30 cities across the country
and over 1000 employees.The co has 150000 customers as on date and achived an income of rs.150 crore
in the year ending 31 st dec 2004.Ivl insurance is a joint venture b/w Ing insurance international, bv a part
of Ing group, the worlds second largest life insurance co.(fortune global 500,2004), Ing vysya bank, with

2million customers and over 400 outlets and GMR industries limited , part of GMR group also based in
blore and involved in the field of power generation infrastructure development & several other business.

VISION & MISSION.

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

Vision of Ing Vysya bank:

To make compliance systems a more effective part in the business.

ING Vysya bank products

Credit product & structured finance.

Offshore borrowings.
Investment banking, local debt syndication & securatization.
Trade finance & commodities.
Cash management services.
Schedule of service charges on trade finance products & services.
Schedule of service charges on business banking accounts.

Functions of ING Vysya bank

Business compliance.
Regulatory guidelines dissemination & advisory.
Financial economic crime (FEC) & sanctions desk.
policy framework & MIS.
Training & communication.

PRODUCT SERVICE PROFILE:

Products & services

Personal banking
Savings a/c
Current a/c
Term deposits
Demat a/c
Personal,home,home equity,nri loans
Pvt banking
Wealth mngmt
Life insurance
Mutual funds
Govt of india & tax savings bonds
NRI services
Credit & debit card
Internet banking
Phone banking
Mobile banking
Self banking
ATM kiosks
Payment services
Business banking
Sme-loans,mpower bness a/c
Agri term & short term loan

Wholesale banking: cash mgmt services, corporate & investment banking credit products
& structured finance, offshore borrowings, trade & commodity finance.
Special services:- along with the portfolio mgmnt & advisory services we also bring to
clients our banking services which include remittances, deposits, loan against
deposits/mutual funds etc
Loan products
Od facility
Vysdp(depository services)
Smart serve
Internet banking
Phone banking
Bill payments.

Debit & credit cards

2.5 AREA OF OPERATION:

Global, National & Regional
Global:ING VYSYA Bank operating in:

US,
CANADA
AUSTRALIA
AUSTRIA
FRANCE
GERMANY
SPAIN
ITALY
UK

ING VYSYA Bank in retail active in china, india, netherland & also active in central eastern europe.
ING VYSYA Bank in retail 2 bank in the netherlands & 4th in belgium.
ING VYSYA Bank commercial banking has an international network in 40 countries with key positions
in structured finance & financial markets.

National:CONSUMER FINANCE it is operating in 13 locations

Bangalore
Delhi
Hyderabad
Mumbai

Pune
Chandigadh
Jaipur
Vizag
Chennai
Kolkata
Nagpur
Ludhiana

Regional:Ing vysya bank has a total of 677 branches of which there were 407 branches ,39 extensions counters, 28
satellite offices & 203 atms

2.6 OWNERSHIP PATTERN

Ownership pattern

In 1996 the bank signed strategic alliance with bank Brussels Lambert, Belgium for equity

participation.
In 2001 the Ifc Washington also joins hands to strengthen the bank ,later BBL Belgium

merges with ing.

In sep 2002 ing increased it's stake to 44%.
In oct 2002 ing takes over the management.
In dec 2002 the bank is remained as ing vysya bank. ing & other foregin institutions is

having 49% of shares & indian investors is having 51% of share.

In nov. 2014 the banks share exchanged ratio of 725 shares for 1,000 shares with Kotak
Mahindra Bank.

BOARD OF DIRECTORS:Dr. Shankar Acharya, Non-Executive Chairman

(DIN:
Dr.

00033242)
Shankar Acharya, B.A. (Hons.) from Oxford University and Ph.D. (Economics) from Harvard
University, aged 68 years, has considerable experience in various fields of economics and
finance. He is a Honorary Professor at the Indian Council for Research on International
Economic Relations (ICRIER) and a Member of the Court of Governors at the Administrative
Staff
College of India (ASCI). He was Chief Economic Adviser, Ministry of Finance, Member,
Securities and Exchange Board of India (SEBI) and Member, Twelfth Finance Commission. He
has held several senior positions in the World Bank, including Director of World
Development Report (1979) and Research Adviser. He was re-appointed as the NonExecutive Chairman of the Bank at the Annual General Meeting held on 19th July 2012
for a period of three years with effect from 20th July 2012.
He is on the Board of Eros International Media Ltd. and South Asia Institute for Research and Policy (Private) Limited,
Sri Lanka. During 2013-14, Dr.Acharya was the Chairman of the Audit Committee of the Bank, Member of the Audit
Committee of Eros International Media Limited and the Chairman of the Shareholders' Grievance/Investors' Relations
Committee of Eros International Media Ltd.
Mr. Uday Kotak, Executive Vice-Chairman and Managing Director
(DIN: 00007467)
Uday Kotak, aged 55 years, holds a Bachelors degree in Commerce and an MBA from
Jamnalal Bajaj Institute of Management Studies, Mumbai. He is the Executive Vice-Chairman
and
Managing Director of the Bank and its principal founder and promoter. Under Mr. Kotak's
leadership, over the past 28 years, Kotak Mahindra group established a prominent presence in
every area of financial services from stock broking, investment banking, car finance, life
insurance and mutual funds. Mr. Kotak is the recipient of several prestigious awards. He
is a member of the Government of India's high level committee on Financing Infrastructure,
the
Primary Market Advisory Committee of SEBI, Member of the Board of Governors of Indian
Council
for Research on International Economic Relations, National Institute of Securities Markets
and National Council of CII.
Mr.

Mr. C. Jayaram, Joint Managing Director

(DIN: 00012214)
Mr. C. Jayaram, B. A. (Economics), PGDM-IIM, Kolkata, aged 58 years, is Joint Managing Director of
the Bank and currently heads the wealth management business and international operations for Kotak
Mahindra group. He also oversees the alternative investments business which includes private
equity funds and real estate funds, as well as the institutional equities business. He has varied
experience of over 36 years in many areas of finance and business and was earlier the Managing
Director of Kotak Securities Limited. He has been with the Kotak Group for 24 years and has been
instrumental in building a number of new businesses at Kotak Group. Prior to joining the Kotak Group, he was with
Overseas Sanmar Financial Ltd.
Mr. Dipak Gupta, Joint Managing Director
(DIN: 00004771)
Dipak Gupta, B.E. (Electronics), PGDM-IIM, Ahmedabad, aged 53 years, is the Joint Managing
Director of the Bank and has over 28 years of experience in the financial services sector, 22 years of
which have been with the Kotak Group. He is responsible for Group HR, administration,
infrastructure, operations and IT. He is also responsible for asset reconstruction business of the
Bank. Mr. Dipak Gupta was responsible for leading the Kotak Group's initiatives into the banking arena.
He
was the Executive Director of Kotak Mahindra Prime Limited. Prior to joining the Kotak Group, he was
with A. F. Ferguson & Company for approximately six years.
Mr.

Mr. Asim Ghosh

(DIN:
Mr.

CEO

00116139)
Asim Ghosh, aged 66 years, is the President and Chief Executive Officer of Husky Energy Inc. He
has a B.Tech, IIT Delhi and MBA from the Wharton School, University of Pennsylvania. Mr. Ghosh
commenced his career in consumer goods marketing with Procter & Gamble in the U.S. and
Canada and worked subsequently with Rothmans International as a Senior Vice President of
Carling O'Keefe Breweries, then one of Canada's major breweries. He moved to Asia in 1989 as
of the Frito Lay (Pepsi Foods) start up in India. Thereafter, he was in executive positions with
Hutchison in Hong Kong and India for 16 years. He continued as the CEO of the
predecessor company of Vodafone India Limited till 31st March 2009 and as a Non-Executive
Director till 9th February 2010. He serves on the Board of Husky Energy Inc., other Husky
Group Companies, some Hutchison Whampoa Group Companies and the Canadian Council of Chief

Executives.
Mr. Prakash Apte
(DIN: 00196106)
Mr. Prakash Apte, B.E. (Mechanical), aged 59 years, is presently the Chairman of Syngenta India
Limited, one of the leading agri business companies in India. Mr. Apte, in a career spanning over 36
years has considerable experience in various areas of management and business leadership. During
more than 16 years of very successful leadership experience in agri business, he has gained varied
knowledge in various aspects of Indian Agri Sector and has been involved with many initiatives for
technology, knowledge and skills up gradation in this sector, which is so vital for India's food security. He
was instrumental in setting up the Syngenta Foundation India which focuses on providing knowledge and
support for adopting scientific growing systems to resource poor farmers and enabling their access to market. He is a
Director of Syngenta Foundation India and Kotak Mahindra Old Mutual Life Insurance Limited. Mr. Apte is a member
of Audit Committee of Bank and Syngenta India Limited.
Mr. Amit Desai
(DIN: 00310510)
Mr. Amit Desai, B.Com, LLB, aged 55 years, is an eminent professional with 33 years of experience. He is also on the
Board of Kotak Mahindra Trustee Company Limited.
Mr. Narendra P. Sarda
(DIN: 03480129)
Mr. N.P. Sarda, B.Com, F.C.A., aged 68 years, is a Chartered Accountant for more than 40 years. He is
a former partner of M/s. Deloitte Haskin & Sells, Chartered Accountants, the past President of the
Institute of Chartered Accountants of India (in 1993) and was a public representative Director of the
Stock Exchange, Mumbai (BSE).
Prof. Mahendra Dev
(DIN: 06519869)
Prof. S. Mahendra Dev, PhD from the Delhi School of Economics, aged 56 years is currently Director
and Vice Chancellor, Indira Gandhi Institute of Development Research (IGIDR), Mumbai, India. He was
Chairman of the Commission for Agricultural Costs and Prices (CACP), Govt. of India, Delhi. He was
Director, Centre for Economic and Social Studies, Hyderabad for 9 years during 1999 to 2008. He has
done his Post-doctoral research at Yale University and was faculty member at the Indira Gandhi
Institute of Development Research, Mumbai for 11 years. He has been a member of several
government committees including the Prime Minister's Task Force on Employment and Rangarajan
Commission on Financial Inclusion. He has received honors for eminence in public service. He is the Chairman of the
Committee on Terms of Trade on agriculture constituted by the Ministry of agriculture, Govt. of India. He is also
member of the newly constituted Expert Panel on poverty estimates chaired by Dr. C. Rangarajan.

Mrs. Farida Khambata

(DIN: 06954123)
Mrs. Khambata, is currently Global Strategist of Cartica Management, LLC and a member of its
Investment Committee. She was earlier with International Finance Corporation (IFC) and was a
member of IFC's Management Group, the senior leadership team of IFC. In her last position at IFC she
served as Regional Vice President in charge of all operations in East Asia and the Pacific, South
Asia, Latin America and the Caribbean and the Global Manufacturing Cluster. Mrs. Khambata joined
IFC in 1986 from the World Bank where she managed pension fund assets.

COMPETITORS FOR ING VYSYA BANK

Axis bank.
HDFC bank.
ICICI bank.
IDBI bank.
Standard chartered.
LIC housing.
SBI.
Duestche bank.
Punjab national bank.

INFRASTRUCTURE
ING VYSYA Bank head office is situated in bangalore.
ING house contains the board room, offices for senior mgmt and a number of corporate dept's.
the building was desgined to reflectthe image of ING VYSYA innovative and transparent , dynamic and
sustainable . the open planand glass walls help facilitate communication across dept's& complement
dedication to transparency.
The ING VYSYA house has a auditorium, a foyer, restaurant, library , conference rooms & parking
spaces.
The total office space is reserved for "flexible"work stations, which give employees the chance to change
their working environment.

ACHEIVEMENTS

ING becomes 13th largest company in the world compared with last year, ING Group has risen four
places in the Global 500 list of the worlds largest companies. The list is published by Fortune, the US
business journal. At number 13 in the ranking, ING Group is the largest financial institution on the list,
followed by Citigroup and AXA & in terms of revenues and net profit; ING is now the biggest of the 21
insurers on the list. Over the last 150 years ING group has grown to become one of the largest life
insurance organisations in the world. Today it touches the lives of over 50 million people across 65
countries.

ING Group is the worlds largest LIC in profits (U S 4.50 billion.

4th largest financial group in the world.
Ranked 9th overall among world top 2000 companies (Forbes 2005).
Operating in 5 continents across 50 countries.
It has 60 million customers.
ING Vysya employees raise 35 lakhs to send 2,500 child workers back to school.
Worlds largest financial group in revenues (fortune 500 2006) having presence in over 50

countries & with over 1, 15,000 employees.

Worlds 1st integrated financial service provider offering banking insurance & asset

management.
Total assets of Euro 1,158 billion as on dec.2005.
Ranked no.1 retail fund manager in Asia (Asia asset mgmt dec,2005)
2007 it has been recognized for our public relations by the public relations council of India

in its global meet on corporate communication march 2007.

2010 ING VYSYA Bank wins the C10 100 awards 2010 for its unique mobile voice
recording solution.

AWARDS:-

1996 GEM & JEWELLERY EXPORT PROMOTION COUNCIL CONFERRED AWARD

FOR BEST EXPORT PROMOTION.

1998 Won golden peacock award from institute of directors for best HR practices.
1998 International magazine GLOBAL FINANCE rated the bank best DOMESTIC

BANK.
2007 Achiever award for contributions & consistent public relations council of INDIA.

FUTURE GROWTH OF ING VYSYA BANK

The ING VYSYA Bank has a great opportunity to drive business growth .the combination of innovative &
ING VYSYA'S reputation for efficient service delivery & customer care puts it in a stronger position to
maximize opportunities & to expand its operations. With a economy of the country growing at nearly 8%
these high growth potential for the bank.
The bank is planning to enable Money Click as a payment gateway for shopping that conserves at areas
of business like hotel booking, ticket booking, purchase of goods etc.

ING VYSYA angel broking ink pact for investment services.

ING VYSYA Bank plans to hike base rate in Jan-march says CEO
Angel broking head. Liquidity in share market not a concern right now.
Angel broking head: sensex may top 21000 if liquidity increases.
ING VYSYA Bank CEO aims for FY11 loan growth better vs. industry.

RESEARCH METHODOLOGY

Research Objectives

To know the level of awareness among customers about ING Vysya Bank.

To know the interest level of the customers to get associated with ING Vysya Bank.

To study the customers perception about various products offered by ING Vysya
Bank.

To get an idea of the various banking products/services used by customers.

To study the performance of ING Vysya Bank over the past 5 years.

Research Methodology

Methodology includes a philosophically coherent collection of theories, concepts or ideas as they

relate to a particular discipline or field of inquiry.
Methodology refers to more than a simple set of methods; rather it refers to the rationale and the
philosophical assumptions that underlie a particular study relative to the scientific method. This

is why scholarly literature often includes a section on the methodology of the researchers. This
section does more than outline the researchers methods (as in, We conducted a survey of 50
people over a two-week period and subjected the results to statistical analysis, etc.); it might
explain what the researchers ontological or epistemological views are.
The objective of this project has been to learn about the perception of consumers about the
various products offered by ING Vysya Bank. Also to see the awareness of customers about the
bank and its products. Besides this through this project an effort has also been made to unveil the
risk profile of consumers.
Research Design

It is a plan outlining how information is to be gathered for an assessment or evaluation that

includes identifying the data gathering method, the instruments to be used or created, how the
instruments will be administered, and how the information will be organized and analyzed.

In the present research Quantitative Research methods have been used. Quantitative marketing
research is the application of quantitative research techniques to the field of marketing. In the
present project I have used questionnaires as a method for conducting the primary research.
Research Instruments
The kind of research instruments one uses greatly helps in realizing the reliability and validity of
a research. In the present research I have used questionnaires as our research instrument.
In the present research on ING Vysya Bank I have used Structured Non-Disguised
Questionnaire
Data Collection

Primary Data
In this project data have been collected from the sample of 108 people from various walks of life,
but basically I have focused on people from middle class, upper middle class and elite class of
the society.I came to know about the perceptions of consumers regarding the policies of bank
through a well designed questionnaire.
Secondary Data
In the project the information is collected from different sources about the bank and that of its
products from Annual Report of the company.
Sampling
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern, especially for the
purposes of statistical inference. Each observation measures one or more properties (weight,
location, etc.) of an observable entity enumerated to distinguish objects or individuals. Survey
weights often need to be applied to the data to adjust for the sample design. Results from
probability theory and statistical theory are employed to guide practice.

In this research on ING Vysya Bank I have followed the following steps:

1. Target Population: The target population used for sample selection here is the people
who have Account with the bank.

2. Geographical Spread of the target population (Sampling Frame): The area of

research is North India. In north India also parts of Delhi were the areas for primary data
collection by way of Questionnaires.

3. Sampling Method Used: Here the Non- Probability Sampling methods which are
Convenience Sampling and Snowball Sampling have been used.

4. Sample size: the sample size is 108.

Data Analysis Techniques Used

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the
goal of highlighting useful information, suggesting conclusions, and supporting decision making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety of names, in different business, science, and social science domains.

The various data analysis used in the present research is as follows:

Descriptive Data Analysis

Descriptive analysis is used to describe the basic features of the data in a study. They provide
simple summaries about the sample and the measures. Together with simple graphics analysis,
they form the basis of virtually every quantitative analysis of data. Frequency Distribution have
been used in the present project along with Cross tabs using Chi square test have been done in
the present project.
Software Used
For the better presentation and right explanation I used tools of statistics and computer very
frequently which I used for project from statistics are-

 Bar Charts
Pie charts
Tables
Bar charts and pie charts are really useful tools for every research to show the result in a well
clear, ease and simple way. Because I used bar charts and pie charts in project for showing data
in a systematic way, so it need not necessary for any observer to read all the theoretical detail,
simple on seeing the charts any body could know that what is being said.
MS- Excel- Above application software of Microsoft helped me a lot in making project more
interactive and productive. Microsoft-Excel had a great role in my project, it created for me a
situation of you sit and get. I provided it simply all the detail of data and in return it given me
all the relevant information. With the help of MS Excel the fifth objective of the research has
been fulfilled.
MS-Word- Microsoft-Word did help me for the documentation of the project in a presentable
form.
SPSS (originally, Statistical Package for the Social Sciences) has been used to analyse the
data. In the present project descriptive analysis has been used to fulfill the first four objectives of
research.

Chi-Square Test: Chi square test helps to find the significant relation between two
variables wherein the Null hypothesis is that there is no significant relationship between
two variables and the Alternate hypotheses is that there is significant relationship between
the two variables. If the value of alpha is less than 0.05 then null hypotheses is rejected.
In this project chi square test have been used with cross tabs to find the significant
relation between two variables.

LITERATURE REVIEW

Recently many researchers have shown interest in the field of banking and the customer
perception in this regard. They have carried out numerous studies and observations using various
statistical and scientific tools to illuminate the darkness of this field. Their findings and
suggestions are reviewed here. Some of these are related to the ING Vysya Bank and some are
not.

Mr. Rajesh Chakrabarti in the year 2005 in his report titled Banking in India Reforms and
Reorganization discussed about the transformation that is going about in the banking industry in
India. According to his report the performance of the banks has improved slightly over time. The
banking sector as a whole and particularly the public sector banks still suffer from considerable
NPAs, but the situation has improved over time. New legal developments like the SARFAESI
Act provide new options to banks in their struggle against NPAs. Over time, the Indian banking
industry has become more competitive and less concentrated. The new private sector banks have
been the most efficient according to the findings of his report.

Dr. Hema Bhalakrishnan carried out a research on the topic A Study on Customer Perception in
Banking Industry Using Gap Analysis in the year 1999. The objectives of this study were to
evaluate the different factors considered by the investors while making investments, to study the
services provided by Private Sector and Public Sector banks and the performance of it and to
analyze the service facilities those are being effectively utilized by customers. This study
concluded that easy access is the considered as the most important factor as compared to others
and also that the customers expectations from ICICI bank are more as compared to some other
public and private banks.

Another research was carried on by Mr. Vipul in the year 2009. The project was on Citibank titled
as Project on Financial Services of Citi Bank. The main objectives of this project were to
study the consumers perceptions about various banks, to know the level of awareness among
consumers about Citibank, to collect various suggestions from consumers to make Citibank
better one, to identify the key factors of consumer satisfaction in this industry and to have a
comparative analysis of the customer satisfaction level for the various banks.. The research had
main findings that most of people like to have their account with ICICI bank and also people felt
the need of more ATMs of Citibank in North Delhi.

Mr. Vikash Kumar Mishra carried a project study on The environmental factors
responsible for IDBI Banks performance (Positively& Negatively) in SAKET in the year 2008
To know about environmental factors affecting IDBI Banks performance.
The objectives of this study were to analyze the role of advertisement for bank performance, to
know the perception and conception of customers towards
banking products and specially focused for IDBI Banks product and to explore the potential
areas for the new bank branches. The key findings of this study were that credibility of IDBI
bank is good in comparison to its competitors as GOI (Government of India) is a major share
holder in the company, IDBI bank has tapped a good market share in Saket region and hence has
opportunities for growth and the network of IDBI in Saket is lagging behind a little than its
competitors like ICICI bank and HDFC bank

Mr. Ashutosh in the year 2008 another survey titled as HDFC Bank - Customer Satisfaction
Levels. The study focused on measurement of customer satisfaction related to services offered
by HDFC Bank. The study also included rating of the products of HDFC Bank and also the
rating of overall experience. Besides this overall satisfaction level of customers was also found
out. The main results of this survey were that most of the customers of HDFC Bank are loyal and
they recommend the products of bank to others. Also 63% of the customers of the bank are
satisfied with its services and products.

In all these projects the objective of the projects have mainly been to study about the perception
and awareness level of customers however in case of my present project the objectives are also to
get an idea about the various products/services used by the respondents and to know their interest
level to get associated with ING Vysya bank.