Credit Appraisal Process at ING Vysya Bank

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Table of Contents
S. No. Topic Page Number
App no of pages
( not to be included in report)
1 Corporate Internship Objectives 6
2 Corporate Internship- Abstract 7
3 Internship Organisation’s Profile vis-à-vis its competitors 8-28
4 Industry Analysis
29-46
5 Financial Statement Analysis 47-60
6 Detailed study on the Marketing, Operations and Finance & HR functions
OR
Details of the specific field based project assigned during the internship 61-75
7 Project - Conclusion & Recommendations
76
8 My Take Away – Key Learning’s 77
9 Annexure & References
78
Jaypee Business School
Objectives of the Corporate Internship
The purpose of Corporate Internship for a minimum time of 8 weeks is to connect theory
and practice, obtain knowledge & awareness of the functioning of various departments of
the corporate and its environment which is utmost necessary for the success of the
budding managers. The basic objectives of the summer internship programme for the
MBA students are:
1. To understand the business and competitive environment of ING Vysya Bank.

2. To analyze and understand the financial position of ING Vysya Bank viz – a – viz
competitors.
3. To study the Business Banking Department of ING Vysya Bank and its practices.
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4. To facilitate in testing what I have learnt in the foundation courses in the first
year.
5. To get a feel of corporate life and its functioning & understand various interaction
styles.
ABSTRACT
I did my summer internship in ING Vysya bank. It was a business banking department
and it was located in Karol Bagh. On the first day I met the branch manager of the bank
Mr. Uday Choudhary. He assigned me my mentor who was the relationship manager of
the business banking division of ING Vysya Mr. Anshul Dhamija. In the first week he
gave me two files of the company which he himself completed. Reading those files I
learnt how banks give loans, what are the important documents needed to get the sanction
letter. On the second week I was assigned to do cold calling. I was given a data of another
private bank. In my whole internship I made 15 customers who gave me time to meet
them. And out of those 15 I converted 1 myself with the help of my mentor. The client is
Sahib Textiles. They make ladies suits. On a daily routine , my time was divided. From
10 to 1 pm I use to do cold calling. After lunch I used to meet all those people who have
approved and would like to meet me. After meeting them I used to come back to my
office and had to report to my mentor.
The client that I converted was Sahib Textiles. They make ladies suits. They needed a
working capital of 4.25 crore. After checking there balanced sheet, profit and loss
account statement and there last six month bank account. I gave his case to my mentor,
who finally approved his loan. The financials of ING Vysya is in a very healthy stage. All
the ratios are showing vast improvements, be it the capital adequacy ratio, the net profit
margin. All of the financial ratios has done better than the previous years. There total
assets, market cap have also gone up from the previous years.
The key learning that I learnt was the fact that I saw the real corporate world. What is the
pressure that each employee faces each day. I was working in a professional working
environment with professional working people. This was my real learning. Apart from
that I worked on real projects, learned how banks gives business loans to there customers.
I also learnt how to communicate with different types of clients. Working on the real time
project made me learnt how to read a bank statement. This internship also helped me
make new friends like Mr. Uday Choudhary and Mr. Anshul Dhamija, who were my
boss. I would thank them to give me such a immense opportunity to work with them.
COMPANY PROFILE
ING Vysya is the joint venture between ING & Vysya

ING Group
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 client’s preference in
markets where ING can create value.
ING group originated in 1990, from the merger between Nationale – Nederlanden NV
(the largest Dutch Insurance Company) and NMB Post Bank Group 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.”.
Since 1991, ING has grown from a Dutch company with some international business to a
multinational with Dutch roots.
? ING Group is a global financial services company of Dutch origin with 150 years
of experience, providing a wide array of Banking, insurance and asset management
services in over 50 countries.
? Over 1,20,000 employees work daily to satisfy a broad customer base:

individuals, families, small businesses, large corporations, institutions and governments.
? Based on market capitalization, ING is one of the 20 largest financial institutions

worldwide and in the top-10 in Europe.
? ING is the number one financial services company in the Benelux home market.
ING services its retail clients in these markets with a wide range of retail-banking,
insurance and asset management.
? In their wholesale banking activities they operate worldwide, but also with a
primary focus on the Benelux countries.
? In the United States, ING is a top-5 provider of retirement services and life
insurance. In Canada, they are the top property and casualty insurer.
? ING Direct is a leading direct bank with over 11 million customers in nine large
countries. In the growth markets of Asia, Central Europe and South America they provide
life insurance.
? ING distinguishes itself internationally as a provider of ‘employee benefits’, i.e.
arrangements of non-wage benefits, such as pension plans for companies and their
employees
? Another specialization is ING Direct, an Internet and direct marketing concept

with which ING is rapidly winning retail.
? 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.
Vysya Bank
Vysya bank came into existence in the year 1930. When the team of visionaries came
together to found a bank that would extend a helping hand to those who weren't
privileged enough to enjoy Banking services. Vysya Bank opened its very first branch
and started its operations from Bangalore city .With a span of time it gained its strong
existence in south India. It’s been a long journey since then and the Bank has grown in
size and stature to encompass every area of present-day banking activity and has carved a
distinct identity of being India's Premier Private Sector Bank. The Bank made rapid
strides to reach the coveted position of being the number one private sector Bank.
ING Vysya group in India
In India ING Vysya is into following areas of services:-
? Banking.
? Life insurance.
? Mutual fund.
ING Vysya Bank
CORPORATE STATEMENT
ING Vysya Bank will be an entrepreneurial integrated financial services institution where
innovation and transformation are the way of life.
BANK PROFILE
ING Vysya Bank Limited 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 immediate benefit to ING Vysya Bank ltd was the pride of having become a member
of global financial services giant.
Bank has an asset base of 1313 billion euros.
? It has net profit of 9.24 billion euros.
? With total business turnover of over Rs.12000 crores.
? It has capital adequacy of 9.8%.
? Bank has an extensive network with almost 450 branches.
? And has a network of more than 5000 ATM’s.
? Strong and loyal client base in corporate, trade and retail segment. And more than
three million satisfied customers.
? Is also a part of bankex an index launched by BSE.
Further, the presence of the group in over 50 countries, employing over 1,20,000 people,
serving over 85 million customers across the globe, only multiplies the credibility, not
only across the country but also across the globe. The pride of this global identity, the
back up of a financial power house and the status of being the first Indian International
Bank, would also greatly enhance productivity, profitability resulting in improved
performance for the Bank to translate into higher returns, to all the stake holders.
ING Vysya Bank deals in following area of Banking
? Corporate Banking
? Commercial Banking
? Treasury management
? Retail Banking
? Rural Banking
? Private Banking
ING Vysya life insurance
? The company offers entire range of life insurance plans to meet all the financial
needs of an individual- protection, saving and investment.
? With 50 branches across the country.
? With sum assured of almost of Rs 800 crore.
? And assets worth Rs 100 crore.
ING Vysya Mutual Fund
? It aims to provide practical and secure investment opportunity to retail investors.

? Operating in 15 cities.
? And Rs.2800 crores plus fund house.
BUSINESS ACTIVITIES CARRIED OUT BY ING VYSYA
The various products offered by ING Vysya bank are
1) ACCOUNTS AND DEPOSITS
2) Current accounts
3) Saving accounts
4) Term deposits
5) DMAT accounts
CURRENT ACCOUNT
The various sub-products in current account which ING Vysya gives are
• ORANGE CURRENT ACCOUNT: In today's fast-paced world, your business

regularly requires you to receive and send funds to various cities in the country. ING
Orange Current Account gives you the power of inter-city banking with a single account
and access to more than 200 cities.
• ADVANTAGE CURRENT ACCOUNT: In today's fast-paced world, your

business regularly requires you to receive and send funds to various cities in the country.
ING Advantage Current Account gives you the power of inter-city banking with a single
account and access to more than 300 cities.
From personalized cheques that get treated at par with local ones in any city where we
have a branch, to Free collection (if instruments are lodged directly) of outstation cheques
(payable at branch locations), to free inter-city funds transfers of up to Rs.50 lakhs p.m.,
our priority services have become the benchmark for banking industry
• GENERAL CURRENT ACCOUNTS: With ING Vysya general current account

you can access your account anytime, anywhere. Withdraw and deposit cash, issue and
encash cheques, make balance enquires and ask for mini statements anytime, anywhere.
• COMFORT CURRENT ACCOUNT: ING's Comfort Current Account lets you

save as much as Rs. 60,000 p.a. for remittance up to Rs. 25 lakhs. This is in addition to a
range of other attractive benefits, as well.
SAVING ACCOUNTS
The Savings accounts are primarily meant to inculcate a sense of saving for the future
and take care of individuals day to day banking requirements. These accounts are meant
to help individual customers protect their money. The Savings Accounts also help
individuals to handle their financial transactions through a systematic banking channel.
This increases the safety as customers need not carry physical cash with them. The
various products in saving accounts are
• ORANGE SAVING ACCOUNT

• ADVANTAGE SALARY ACCOUNT
• FREEDOM ACCOUNT
• GEERAL SAVING ACCOUNT
• SOLO SAVING ACCOUNT
• SARAL SAVING ACCOUNT
• ING FORMULA SAVING ACCOUNT
• ASPIRA CORPORATE SALARY SOLUTION.
TERM DEPOSITS
The various term deposits are
• FIXED DEPOSITS: If you believe in the long term investments and wish to earn
long term interest on your deposits, than invest in ING fixed deposits. With ING your
money will not only be secured but will earn a good interest.
• CUMULATIVE DEPOSITS: With ING cumulative deposits you can invest small
amounts of money that ends up large saving on maturity
• TAX ADVANTAGE DEPOSITS: TAD is eligible for tax exemption under
section 80C of the income tax act 1981. The deposit is in the form of fixed deposit or
reinvestment form of 5 year duration. The rate of interest will be according to the 5 year
interest rate which will be declared by RBI from time time.
• AKSHAYA DEPOSITS: your deposit with interest will be reinvested every
quarter to earn a higher yield.
DEMAT ACCOUNT
With practically all trading being conducted electronically, most settlements happen
through Demat (Dematerialisation of securities). The ING Demat Account offers you a
secure and convenient way to keep track of your shares and investments, how much
you've bought and sold over a period of time, without the hassle of handling physical
documents that get mutilated or lost in transit.
2) LOANS
• HOME LOAN
• HOME EQUITY LOAN
• NRI LOAN
• MODEL POLICY
3) NRI SERVICES
• RUPEE SAVING ACCOUNT

• RUPEE CURRENT ACCOUNT
• RUPEE FIXED DEPOSITS
• ACCOUNTS FOR RETURNING INDIANS
• FOREIGN CURRENCY DEPOSITS
• MI REMIT
4) CARDS
• DEBIT CARDS
• CREDIT CARDS
• REMMITANCE CARD
• REWARD CARD
SMALL AND MEDIUM ENETRPRISES
1. BUSINESS LOANS – MPOWER BUSINESS LOAN:
Small business entrepreneurs often encounter problems regarding finance. ING Vysya
Bank presents a unique banking loan, specially customized for Small & Medium
Business Enterprises.
These loans are available for Small Business Entrepreneurs, Retailers, Shop owners,
Contractors, Commission Agents and Transport Operators as well as practicing
professionals like Doctors, Lawyers, Consultants, Women Entrepreneurs and any others
with a credit requirement ranging from Rs. 5 lakhs upto Rs. 50 lakhs.
2) BUSINESS LOAN –RENT: The Mpower rent allows loans against the security of
your receivables. Individuals, propietry concerns, partership firms, public and private
limited companies, tructs and registered bodies who will meet the eligibility criteria will
be able to secure fast finance .
3) BUSINESS LOANS (SMALL SCALE INDUSTRIES)- CGTSI:
ING is one of the member lending banks for CGTSI. ING Ltd offers loans of up to Rs 25
lakhs to SSI units under CGTSI at competitive interest rates without any collateral
security and / or third party guarantee. In addition the guarantee fee payable to CGTSI
would be debited to the account.
CGTSI: credit gurantee fund trust for small scale industries.
Minimum Loan Amount: No Minimum Amount
Maximum Loan Amount: Rs 25 lacs
Eligibility:
The SSI units engaged in activities like manufacturing, processing or SSSBEs, including
Information Technology and / or Software industry are eligible.
4) MPOWER BUSINESS ACCOUNT:

MPower truly empowers you to create the business empire of your dreams. It is a
working capital account that enriches small and medium business enterprises by making
optimum use of your banking facility, and meeting the day-to-day needs of your business,
quite like you would personally do, if you had more time. Thus, you are now free to focus
on other business needs, while your MPower Business Account works hard, along with a
host of conveniences to give you maximum value and benefits.
WHOLESALE BANKING
Wholesale Banking is a reflection of ING's ability to provide its corporate clients in India
a full range of commercial, transactional and electronic banking products. The bank
offers a wide array of client-focused corporate banking services, including working
capital finance, trade and transactional services, foreign exchange and cash management,
to name a few.
A well-integrated approach to relationship management and innovative product

development helps the bank achieve the above. The offerings take into account a client's
risk profile and specific needs. The bank has made significant inroads into the formal
banking consortia of a number of Indian companies including multinationals, domestic
business houses and prime public sector companies, based on our superior product
delivery, industry benchmark service levels and strong customer orientation.
The various offerings by the bank in the wholesale banking services are
1) CASH MANAGEMANT SERVICES
2) CORPORATE AND INVESTMENT BANKING:
The 'C&IB' manages Relationships with large Corporate in both the private and public
sector. However, the primary focus of the group is to market the bank's products and
services to the client base, including Lending Products, Fee Based Products, Treasury
Services, Cross Border Products from ING Group, apart from also cross selling the bank's
retail Products and Services.
The group also crosses sells products of ING Vysya Life Insurance and ING Vysya
Mutual Funds.
C&IB Group is organized on a regional basis with relationship managers covering:
• Western Region and Eastern Region out of Mumbai;

• Southern Region out of Bangalore, Chennai and Hyderabad; and
• Northern out of Delhi
3) BANKS AND FINANCIAL INSTITUTION GROUPS:

"BFIG" works with renewed focus on the financial intermediaries in the country.
BFIG's clientele includes scheduled commercial banks i.e. nationalized, private and
foreign banks, some select large co-operative banks and other financial intermediaries
including mutual funds, insurance companies and housing finance companies.
The group also seeks to build relationship with banks that are not present in the country
but the relationship can be leveraged for trade and guarantee business.
The major areas of thrust for the group are fund mobilization both onshore as well as
offshore, origination of ECB mandates, distribution of debt/loans, cash management
services, capital market services, trade finance related transactions, asset buyouts and sell
downs, distribution of ING products to Indian banks and cross sell of financial market /
asset management / insurance products etc.
4) EMERGING CORPORATES:
The "EC" manages relationships with business units engaged in Manufacturing,

Processing and Services sector. It also provides Commercial Banking Services with
specific focus to Industries, relating to Diamond & Textiles.
"EC", also markets the bank's Products, including cross sell of Products and Services to
Retail Customers of our Corporate Clients and their Employees. Sales of Cross Border
Products of ING Group and other ING entities in India are also marketed.
The wide range of products comprehensively meets the business requirements with
special focus on Export Credit, regular Working Capital Finance, Term Loans, Non Fund
based limits like Letters of Credits, Guarantees and certain structured finance products.
FINANCIAL MARKET
ING Financial Markets, based out of Mumbai is a leading player in the Indian Financial
Markets providing one of the widest ranges of products for large corporate, small and
medium enterprises as well as individual needs. Supported by state-of-the-art systems and
the capabilities of the ING Group, we offer competitive pricing and efficient execution
across markets and a comprehensive suite of products.
Financial Markets unit is an active market maker on most rupee interest rate and currency
products. Within the bank, we play a key role in the Asset Liability Management and
ALM strategy. To our corporate and institutional clients, we offer a comprehensive range
of products for transactions and risk management needs through the sales desks at
Mumbai, Delhi, Bangalore & Chennai.
The Financial Markets business is driven by a highly qualified and knowledge driven
team that brings together a deep understanding of local and global markets as well as
complex financial products.
The offering in ING financial are:
1) MARKET MAKING AND TRADING: The Market Making unit provides

competitive prices on all major currency and interest rate products to the client facing
Financial Market Sales teams as well as to other market participants. The product range
includes the Indian Rupee, all major currencies, FX Swaps, Government of India
Securities, Corporate Debt and most Rupee Interest Rate benchmarks including the
Overnight Index Swaps and MIFOR. ING is one of the largest and most competitive
price makers in Indian Rupee.
The Trading team is driven by knowledge, focus and discipline and seeks to find value
across various permitted assets and instruments for the bank's proprietary account.
2) ASSET LIABILITY MANAGEMENT: The ALM unit of Financial Markets

plays a pivotal role in the formulation and implementation of the bank's Asset Liability
Management strategy. The ALM team manages the banks statutory and investment
portfolios. It is also responsible for managing liquidity and interest rate risk and plays an
active role in the management of Transfer Pricing within the bank.
3) FINANCIAL MARKET SALES: Financial Markets Sales team offers solutions

to clients for their varied risk management needs.
The Sales team is geographically distributed across offices in Delhi, Mumbai, Bangalore
and Chennai to keep us closer to our clients. Strong client relationships acquired over the
bank's 75 years of service in the Indian markets augment our understanding of customer
needs and risk management requirements. Our highly qualified relationship managers
offer the most appropriate solutions for these needs drawing on the knowledge and
expertise within the ING Group.
The sales team is supported at each location by information systems providing

comprehensive and up-to-date market information, tools for analysis and access to
research from the ING Group. The sales teams use some of the most advanced pricing
systems so as to be able to structure and price across a wide range of products. We also
draw from the robust product and pricing capabilities of the ING Group and its various
desks across the world to offer the best solutions for our clients.
Appropriate market timing and efficient execution is a key to product delivery in

Financial Markets. To aid this the Sales team is supported by a niche Structuring desk
that, apart from helping in product structuring based on both client needs and market
opportunities, helps in efficient execution of mandates.
AGRICULTURE AND RURAL BANKING
1) TERM LOAN: ING have identified rural banking as products and services. The
term loans are categorized in these segments.
• Poultry
• Dairy
• Wells
• Pump sets
• Tractors
• Plantation crops
• Horticulture crops
• Rural housing
• Rural godowns
• Micro finance institutions
• Swarjogar credit card.
2) SHORT TERM LOAN: short term loan are categorized into following segments
• KISSAN credit card

• Working capital loan to poultry
• Gold loans for agriculture
• Produce loans against warehouse receipts
ORGANISATIONAL STRUCTURE
ING Vysya Bank follows a 3-tier structue
The regional offices are given more powers and jurisdiction so as to enable them
to act quickly.
Structure of a Bank Branch
From the structure we can see how the functional relationship works in a branch. He
structure also explains the reporting authority for each cadre of the employees. It
indicates the communication flow in the branch with well-defined accountability on the
part of the employees’ roles.
COMPERATIVE ANALYSIS OF ING VYSYA BANK’S SAVING ACCOUNT WITH

OTHER BANKS SAVING ACCOUNT
1) ING VYSYA V/S YES BANK
FEATURES
ING VYSYA
YES BANK
NO. OF PRODUCTS Two: orange savings account and freedom account Two: savings
account, gold savings account.
Average quarterly account balance Rs.5,000 on orange, and nil for freedom
Rs.10,000 for savings account and Rs.100000 for gold savings account.
Fee for non maintenance of quarterly average balance Rs.600 per quarter Rs.300
for savings account and Rs.600 for gold saving account.
Statement of account Quarterly free, and monthly e-statement free (if asked for).
Quarterly free for both.
ATM usage 4 free for freedom account, unlimited free on cirrus for orange account
holders ;un limited from ING Vysya Unlimited free on all the banks in India.
Regular debit card Free for first year, then Rs.150 there after. Rs.149 for savings
account, free for gold savings account.
Gold debit card Rs.799 Rs.799
D.D. Rs.50 for amt up to Rs.10,000;Rs.2.50 per 1000 for amt up to 50,000;Rs 2 per
1000 for amt greater than 50,000 Min Rs.50 then Rs.2.5 per 1000 for savings account
and Rs.1.5 per 1000 for gold savings account.
Pay order (P.O.) Same as above. 5 free for savings account and 10 free for
gold savings account, per year
Branch transaction Free for both the account holders 5 transactions for savings
account and 10 transactions for gold savings account are free per year
Personalized cheque books Free Free
Balance enquiry Free Free
2) ING VYSYA V/S ICICI BANK
FEATURES
ING VYSYA
ICICI BANK
NO. OF PRODUCTS Two: orange savings account and freedom account Three:
category A, B and C.
Rs.5000 for A, Rs.2000 for B, and Rs.1000 for C.
per qtr for A & B and Rs.100 per qtr for C.
Statement of account Quarterly free and monthly e-statement free (if asked for). Free
physical statement per qtr otherwise Rs.200 per month for physical form. Free e-
statement per month.
holders ;un limited from ING Vysya Rs.20/month for cash withdrawal & and Rs.60 for
same with non partner banks.
Regular debit card Free for first year then Rs.150 per annum. Rs.99 per annum for
all the products.
1000 for amt greater than 50,000 Rs.2 per thousand rupees or part thereof, subject to
a minimum of Rs.50
Branch transaction Free for both Rs.2.50/
thousand, subject to
min of Rs.30
and max of Rs.10000
Personalized cheque books Free 2 payable at par cheque books of 25 leaves each
free in a quarter, Rs.50/- for additional cheque book of 25 leaves.
Balance enquiry Free Rs.10 with partner banks & Rs.25 with non partner banks.
3) ING VYSYA V/S HDFC BANK

FEATURES
ING VYSYA
HDFC BANK
NO. OF PRODUCTS Two: orange savings account and freedom account Three
products: regular, savings plus & savings max; each of which are further divided into
option 1 and 2.(I have taken comparative product that is option 1 of regular savings acc.)
Rs.5000
per qtr.
Statement of account Quarterly free and monthly e-statement free (if asked for).
Monthly statements to be Collected from branch. Quarterly statements sent by
post
holders ;un limited from ING Vysya First 4 withdrawals free of cost from any cirrus
network ATM
Regular debit card Free for first year then Rs.150 per annum. Rs.100 plus taxes
1000 for amt greater than 50,000 Rs.50 for amt up to 10000, Rs.75 for amt greater
than 10000 and up to up 50000, Rs. 2.50 per 1000 or part thereof (Min Rs.150) for amt
greater than 50000
Pay order (P.O.) Same as above. Same as above.
Branch transaction Free for both Free 3 free in the qtr & Rs. 60 per additional
transaction on non-maintenance of Min balance (cash deposit/withdrawal)
Personalized cheque books Free Free, Rs.5 per leaf on non maintenance of Min
balance
Balance enquiry Free Free
COMPERATIVE ANALYSIS OF ING VYSYA BANK’S CURRENT ACCOUNT

WITH OTHER BANKS SAVING ACCOUNT
I) ING VYSYA V/S HDFC BANK
FEATURES
ING VYSYA
HDFC
Number of products Three: general, advantage and orange Four: plus, trade,
premium, and regular
Average quarterly balance Rs.10000 for general CA, Rs.50000 for advantage CA, &
Rs.100000 for orange CA Rs.100000 for plus, Rs.40000 for trade, Rs.25000 for
premium, & Rs.10000 for regular
Fee for non maintenance of AQB Rs.750 pq for GCA, Rs.1500 pq for ACA, &
Rs.4000 pq for OCA. Rs.6000 for plus, Rs.1200 for trade, Rs.900 for premium and
Rs.750 for regular.
Statement of account Free once in a month (physical or e-mail) Free once in a month
Issue of cheque book Rs.2.5 per cheque leaf for GCA and free for others PAP cheque
books; 300 leaves free pm for plus, 200 leaves free pm for trade, 100 leaves free pm for
premium and Rs.2 per leaf for regular
ATM usage Free usage of ING Vysya, Rs.45 on withdrawal from other banks Free
usage of HDFC bank ATMs.
Issue of international debit card Free for 1st year, Rs.150 there after Free for first
year
Transfer from one account to other (intercity) Free for all Free for all
D.D/P.O. Free as per schedule for GCA, free up to 50 lkhs per month then charges
as per schedule for rest, in case of ACA and for OCA free up to 200 lkhs then charges as
per schedule on the greater amount. Free up to 50 DDs per month. Above 50
transactions, charges @ Rs. 25/- per DD for plus, Free up to 30 DDs per month. Above
30 transactions, charges @ Rs. 25/- per DD for trade; DD Amount Up to Rs. 50,000
charges Rs. 40/- per DD, Above Rs. 50,000 and up to Rs. 100,000- Rs. 25/-, Above Rs.
100,000- Free for premium and DD Amount Up to Rs.50,000 charges Rs.40/- per DD,
Above Rs.50,000 and up to Rs.100,000- Rs.25/-, Above Rs.100,000- Free for regular.
Charges for PAP cheque payments Rs.0.50/1000 with a min of Rs.5 per payment in
case of GCA, free up to cumulative value of 50 lkhs pm then same is followed as in
GCA, for OCA free up to a cumulative value of 200 lkhs pm then same is followed as in
GCA. Free in the manner as stated above.
Balance enquiry
Rs.15 for all Rs.25 for all
2) ING VYSYA V/S YES BANK
FEATURES
ING VYSYA
YES BANK
Number of products Three: general, advantage and orange Four: CA 25, CA 75,
CA 200 and CA 500.
Average quarterly balance Rs.10000 for general CA, Rs.50000 for advantage CA, &
Rs.100000 for orange CA Rs.25000, Rs.75000, Rs.200000 and Rs.500000
respectively for the above products.
Fee for non maintenance of AQB Rs.750 pq for GCA, Rs.1500 pq for ACA, &
Rs.4000 pq for OCA. Rs.1000, Rs.1500, Rs.2000, and Rs.4000 respectively for the
above products
Statement of account Free once in a month(physical or e-mail) Free once in a month.
Issue of cheque book Rs.2.5 per cheque leaf for GCA and free for others Rs.2 per leaf
for CA 25 and unlimited free for the rest.
ATM usage Free usage of ING Vysya, Rs.45 on withdrawal from other banks
Information not available.
Issue of international debit card Free for 1st year, Rs.150 there after Information
not available.
Transfer from one account to other (intercity) Free for all Rs.25 lakhs per month
subsequent 0.50 per Rs.1000 for CA 25, Rs.50 lakhs per month subsequent 0.50 per
Rs.1000 for CA 75, and unlimited for the rest.
D.D/P.O. Free as per schedule for GCA, free up to 50 lkhs per month then charges
as per schedule for rest, in case of ACA and for OCA free up to 200 lkhs then charges as
per schedule on the greater amount. DD:2 Free Per Month
Min-Rs.100 Max-Rs.5000 for CA 25, 5 Free Per Month
subsequent Rs.1.75 per rs.1000 or part there of Min- Rs.100 Max-Rs.5000 for CA 75, 5
Free Per Month subsequent Rs.1.50 per rs.1000 or part there of
Min- Rs.100 Max-Rs.5000 for CA 200 and free for CA 500.
PO: 2 Free Per Month
Subsequent 0.75 per Rs.1000. Min- Rs.75 Max- Rs.5000 for CA 25, 5 Free Per Month.
Subsequent 0.75 per Rs.1000. Min- Rs.75 Max- Rs.5000 for CA 75 and free for the rest.
Charges for PAP cheque payments Rs.0.50/1000 with a min of Rs.5 per payment in
case of GCA, free up to cumulative value of 50 lkhs pm then same is followed as in
GCA, for OCA free up to a cumulative value of 200 lkhs pm then same is followed as in
GCA. Free unlimited
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BANKING INDUSTRY ANALYSIS
STRUCTURE
BANKS IN INDIA:
In India banks have separated in different groups. Each group has its own benefits and
limitation operating in India. Each has its own dedicated target market. Few of them work
in rural sector while others work in both rural and urban. Many of them are catering in
cities. Some of them are of Indian origin while others are of foreign origin. The banks in
India are
GROWTH TRENDS
The Indian banking market is growing at an astonishing rate, with assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth. The country’s middle class accounts for
over 320 million people. In correlation with the growth of the economy, rising income
levels, increased standard of living, and affordability of banking products are promising
factors for continued expansion. The Indian banking Industry is in the middle of an IT
revolution, focusing on the expansion of retail and rural banking. Players are becoming
increasingly customer-centric in their A approach, which has resulted in innovative
methods of offering new banking products and services. Banks are now realizing the
importance of being a big player and are beginning to focus their attention on mergers
and acquisitions to take advantage of economies of scale and/or comply with Basel II
regulation. “Indian banking industry assets are expected to reach US$1 trillion by 2010
and are poised to receive a greater infusion of foreign capital,” says Prathima Rajan,
analyst in Celent's banking group and author of the report. “The banking industry should
focus on having a small number of large players that can compete globally rather than
having a large number of fragmented players."
TECHNOLOGY IN BANKING
In the six decades of independence banking has evolved in four different phases. During
the fourth phase important initiatives were taken with regard to improve the banking
system. The entry of foreign banks resulted in a paradigm shift in the way banking was
done in India. The arrival of foreign banks and private banks with there superior state of
the art technology pushed the Indian banks to adopt latest technology in market, so that
they could retain there customer base.
Information technology has been used under two different avenues in banking. One is
communication and connectivity and other is Business process reengineering.
Information technology enables sophisticated product development, better market
infrastructure, implementation of reliable techniques for control of risks and help the
financial intermediaries reach geographically distant and different market.
In India banks as well as other financial entities entered the world of information
technology and with Indian financial network(INFINET). INFINET, a wide area satellite
network (WAN) using VSAT(very small aperture technology) was jointly set up by
Reserve Bank of India and Institute for Development and research for banking in1999.
INFINET which was initially comprised only public sector banks was opened for
participation by other categories of members. The information technology act 2000 has
given legal recognition for creation, transmission, and retention of electronic data to be
treated as a valid proof in the court of law
The Reserve Bank of India has assigned priority to the up gradation of technology in the
banks. Substantial progress has been made for developing a modern, efficient, integrated
and secure payment and settlement system for the financial service sectors.
Modernization of clearing and settlement system through MICR based cheque clearing,
popularizing electronic clearing services (ECS) and integration of RBI-EFT scheme with
funds transfer schemes of bank, introduction of centralized fund management system
(CFMS) are significant milestones in this regard.
The coverage of electronic clearing services has been significantly effective to encourage
non paper based fund and develop a centralized facility for effective payment. The
scheme for electronic fund transfer operated by the reserve bank has been augmented and
now it is present in 13 cities. The centralized fund management system (CFMS) which
would enable banks to obtain account wise and centre wise position of their balances has
been implemented in a phased manner from November 2001.
Membership of INFINET has been opened to all the banks in addition to those in the
public sector banks. At the base of all the interbank message transfers using the INFINET
is the structured financial messaging system (SFMS). It would serve as a secure
communication carrier with templates for intra and interbank messages in a strict
message format that will facilitate straight through messaging. All the interbank messages
will be stored and switched to central hub at Hyderabad while the intra bank messages
will stored in the bank gateway. Security standards of SFMS will match the international
standards.
Information technology has immense untapped potential in banking. Strengthening the
information technology in banks could improve the effectiveness of asset liability of
banks. Building up of a related data base would strengthen and enhance the forecasting of
liquidity of banks at the branch level. This could enhance the risk management
capabilities of banks.
LEGAL/ REGULATORY ISSUES RELATED TO BANKING
Banks works under various legal frameworks most important of them are, the Banking
regulation act 1949, Basel II norms, RBI act, Negotiable Instruments act.
BANKING REGULATION ACT 1949
The banking regulation act was passed as banking companies act and it came into force in
16/3/49. Subsequently it was changed to Banking regulation act on 1/3/66.
BASEL II NORMS
Basel II is the second of the Basel accords which are recommendation on the banking
laws and regulations issued by banking committee on banking supervision. The purpose
of Basel II norms is to create international standards that banking regulators can use when
creating regulations about how much capital does banks needs to put aside to guard
against the types of financial and operational risks banks face. Advocates of Basel II
believe that such an international system can help protect the international financial
system from many types of problem that arise should a bank or a series of banks collapse.
In practice Basel II attempts to accomplish this by setting up rigorous risks and capital
management requirement designed to ensure that the banks hold capital reserves
appropriate to the risks the banks exposes itself to through its investment and lending
practices. Generally speaking this rules says that the greater the risk the bank exposes
itself, the greater the capital bank requires to safeguard its solvency and overall economic
stability.
OBJECTIVES OF BANK REGULATION
The objectives of bank regulation, and the emphasis, vary between jurisdiction. The
most common objectives are
1. Prudential -- to reduce the level of risk bank creditors are exposed to (i.e. to
Protect depositors)
2. Systemic risk reduction -- to reduce the risk of disruption resulting from
Adverse trading conditions for banks causing multiple or major bank failures
3. Avoid Misuse of Banks -- to reduce the risk of banks being used for criminal
Purposes, e.g. laundering the proceeds of crime
4. To protect banking confidentiality
5. Credit allocation -- to direct credit to favored sectors
GENERAL PRINCIPAL OF BANK REEGULATION
Banking regulations can vary widely across nations and jurisdictions. This section of the
article describes general principles of bank regulation throughout the world.
MINIMUM REQUIREMENT
Requirements are imposed on banks in order to promote the objectives of the Regulator.
The most important minimum requirement in banking regulation is Minimum capital
ratios.
SUPERVISIORY REVIEW
Banks are required to be issued with a bank license by the regulator in order to carry on
business as a bank, and the regulator supervises licensed banks for compliance with the
requirements and responds to breaches of the requirements through obtaining
undertakings, giving directions, imposing penalties or revoking the bank's license.
MARKET DISCIPLINE
The regulator requires banks to publicly disclose financial and other information, and
depositors and other creditors are able to use this information to assess the level of risk
and to make investment decisions. As a result of this, the bank is subject to market
discipline and the regulator can also use market pricing information as an indicator of the
bank's financial health.
BANKING STANDARDS
Recognizing that it is necessary, in the public interest, to ensure that banks evolve
comprehensive codes and standards for fair treatment of customers of banks It is
necessary to have an independent watch dog to ensure that banks deliver services in
accordance with such codes and standards; It is necessary to ensure that the institutional
mechanism is autonomous, independent and effectively monitors and enforces the
compliance of such Codes and Standards.
In November 2003, RBI constituted the Committee on Procedures and Performance
Audit of Public Services under the Chairmanship of Shri S.S.Tarapore (former Deputy
Governor) to address the issues relating to availability of adequate Banking Services to
common man. The mandate to the Committee included identification of factors that
inhibited the attainment of best customer services and suggesting steps to improve the
quality of banking services to individual customers. The Committee felt that in an effort
to continuously upgrade the package of services that banks offered to their customers
there was a need of benchmarking of such services. After in depth study at the grass root
level the Committee concluded that there was an institutional gap for measuring the
performance of banks against a bench mark reflecting the best practices (Code and
Standards). Therefore, the Committee recommended setting up of the Banking Codes and
Standards Board of India broadly on the lines of Banking Codes and Standards Board
functioning in U.K.
The Banking Codes and Standards Board of India has been registered as a separate
society under the Societies Registration Act, 1860. Therefore, it would function as an
independent and autonomous body. The Banking Codes and Standards Board of India is
not a Department of the RBI. Reserve Bank has agreed to lend it financial support for a
limited period. It is an independent banking industry watch dog to ensure that the
consumer of banking services get what they are promised by the banks.
To ensure that the Board really functions as an autonomous and independent watchdog of
the industry, the Reserve Bank also decided to extend financial support to the Board by
way of meeting its full expenses for the first five years. This was to enable the Board to
reach its economic critical mass that will make it truly independent in its functioning and
take a view on any bank without its existence coming under any threat. On its part, RBI
would derive supervisory comfort in case of banks which are members of the Board. In
substance, the Board has been set up to ensure that common man as a consumer of
financial services from the banking Industry is in a no way at a disadvantageous position
and really gets what it has been promised.
MARKET ANALYSIS
THE PRODUCT MIX: The banks primarily deal in services and therefore, the
formulation of product mix is required to be in the face of changing business
environmental conditions. The changing psychology, the increasing expectations, the
rising income, the changing lifestyles, the increasing domination of foreign banks and the
changing needs and requirements of customers at large make it essential that they
innovate their service mix and make them of world class. Against this background, we
find it significant that the banking organizations minify, magnify combine and modify
their service mix.
PRODUCT PORTFOLIO: The bank professionals while formulating the product mix
need to assign due weight-age to the product portfolio. By the concept product portfolio,
emphasis is on including the different types of services/ schemes found at the different
stages of the product life cycle. The portfolio denotes a combination or an assortment of
different types of products generating more or less in proportion to their demand. The
quality of product portfolio determines the magnitude of success. It is excellence of bank
professionals that help them in having a sound product portfolio.
We find the composition of a family sound, if members of all the age groups are given
due place. Like this, the composition or blending of a service mix is considered to be
sound, if well established and likely to be profitable schemes are included in the mix.
The bank professionals are supposed to perform the responsibility of composing the
same. An organization with a sound product portfolio gets a conducive environment and
successes in increasing the sensitivity of marketing decisions.
If the banks rely solely on their established services and schemes, the multidimensional
problems would crop up in the long run because when the well established
services/schemes would start saturating or generating losses, the commercial viability of
banks would of course, be questioned. It is in this context, that we find designing of a
sound product portfolio essential to an organisation. We can’t deny that the product
portfolio of the foreign banks is found sound since they keep their eyes moving. The
innovation, diffusion, adoption and elimination processes are taken due care. The public
sector commercial banks need to innovate their service and this makes a strong advocacy
in favour of analyzing the product portfolio.
THE PRICE MIX
In the formulation of product mix, the pricing decisions occupy a place of outstanding
significance. The pricing decisions or the decisions related to interest and fee or
commission charged by banks are found instrumental in motivating or influencing the
target market. The Reserve Bank of India and the Indian Banking Association are
concerned with the regulations. The rate of interest is regulated by the RBI and other
charges are controlled by the Indian Banking Association. To be more specific in the
Indian setting, we find this component of the marketing mix significant because the
banking organizations are also supposed to sub serve the interests of weaker sections and
the backward regions. The public sector commercial banks in particular are supposed to
play developmental role with societal approach. It is natural that this specific role of the
public sector commercial banks complicates the problem of pricing.
Pricing policy of a bank is considered important for raising the number of customers vis-
à-vis the accretion of deposits. Of course, there are a number of factors to influence the
process but it is also right to mention that the key role in the entire process is played by
the Reserve Bank of India. To be more specific when we find a number of domestic and
foreign banks working in the Indian economy, the Reserve Bank of India bears the
responsibility of making the business environment conductive. The non-banking
organizations and foreign banks have been found attracting customers by offering to them
a number of incentives. The potential customers or investors frame their investment plans
in the face of pricing decisions made by the banking organizations. While formulating the
pricing strategies, the banks have also to take the value satisfaction variable into
consideration. The value and satisfaction can’t be quantified in terms of money since it
differs from person to person, keeping in view the level of satisfaction of a particular
segment, the banks have to frame their pricing strategies. The policy makers are required
to be sure that the services offered by them are providing satisfaction to the customers
concerned. The pricing decisions may be to bit liberal, if the potential customers are
found shifting to the non-banking investments. In this context, it is pertinent that pricing
is used as motivational tool.
The banking organizations are required to frame two-fold strategies. First, the strategy is
concerned with interest and fee charged and second, the strategy is related to the interest
paid. Since both the strategies throw a vice-versa impact, it is pertinent that banks attempt
to establish a correlation between the two. It is essential that both the buyers as well as
the sellers have a feeling of winning as shown in figure.
The RBI has to be more liberal so that the public sector commercial banks make
decisions in the face of changing business conditions. There is no doubt in it that the
commercial banks bear the responsibility of energizing the social marketing, they are also
supposed to bear the social costs. It is also right that the foreign banks have been found
making the business environment more competitive. These emerging trends necessitate a
close look on the pricing problem. The policy makers find it difficult to bring a change
since the regulations of the RBI make things more critical. The expenses are not
regulated by the RBI and the banking organizations are forced to increase the budgetary
provisions. The sources of revenue are regulated which complicates the task of bank
professionals. This makes it essential that the Reserve Bank of India, the Government of
India and the banking organizations thing over this complicated issue with a new vision.
PROMOTION MIX
In the formulation of marketing mix the bank professionals are also supposed to blend the
promotion mix in which different components of promotion such as advertising,
publicity, sales promotion, word-of-mouth promotion, personal selling and telemarketing
are given due weight age. The different components of promotion help bank
professionals in promotion the banking business.
Advertising: Like other organizations, the banking organizations also us this component
of the promotion mix with the motto of informing, sensing and persuading the customers.
While advertising, it is essential that we know about the key decision making areas so
that its instrumentality helps bank organization both at micro and macro levels.
Finalizing the Budget: This is related to the formulation of a budget for advertisement.
The bank professionals, senior executives and even the police planners are found
involved in the process. The formulation of a sound budget is essential to remove the
financial constraint in the process. The business of a bank determines the scale of
advertisement budget.
Selecting a Suitable vehicle: There are a number of devices to advertise, such as
broadcast media, telecast media and the print media. In the face of budgetary provisions,
we need to select a suitable vehicle. The latest developments in the print technology have
made print media effective. The messages, appeals can be presented in a very effective
way.
Making Possible creativity: The advertising professionals bear the responsibility of
making the appeals, slogans, messages more creative. The banking organizations should
seek the cooperation of leading advertising professionals for that very purpose.
Instrumentality of branch managers: At micro level, a branch manager bears the
responsibility of advertising locally in his / her command area so that the messages,
appeals reach to the target customers of the command area. Of course we find a budget
for advertisement at the apex level but the business of a particular branch is considerably
influenced by the local advertisements. If we talk about the cause-related marketing, it is
the instrumentality of a branch manager that makes possible the identification of local
events, moments and make advertisements condition-oriented.
Public Relations: Almost all the organization need to develop and strengthen the public
relations activities to promote their business. We find this component of the promotion
mix effective even in the banking organizations. We can’t deny that in the banking
services, the effectiveness of public relations is found of high magnitude. It is in this
context that we find a bit difference in the designing of the mix of promoting the banking
services. Of course in the consumer goods manufacturing industries, we find
advertisements occupying a place of outstanding significance but when we talk about the
service generating organizations in general and the banking organizations in particular,
we find public relations and personal selling bearing high degree of importance. It is not
meant that the banking organizations are not required to advertise but it is meant that the
bank executives unlike the executives of other consumer goods manufacturing
organizations focus on public relations and personal.
Personal Selling: The personal selling is found instrumental in promoting the banking
business. It is just a process of communication in which an individual exercise his/her
personal potentials, tact, skill and ability to influence the impulse buying of the
customers. Since we get in immediate feed back, the personal selling activities energies
the process of communication very effectively.
The personal selling in an art of persuasion. It is a highly distinctive form of promoting
sale. In personal selling, we find inter-personal or two-way communication that makes
the ways for a feed back. There is no doubt in it that the goods or services are found half
sold when the outstanding properties are well told. This are of telling and selling is
known as personal selling in which an individual based on his/her expertise attempts to
transform the prospects into customers.
Sales Promotion: It is natural that like other organisations, the banking organizations also
think in favour of promotional incentives both to the bankers as well as the customers.
The banking organizations make provisions for incentives to the bankers and call this
bakers’ promotion. Like this, the incentives offered to the customers are known as
customers’ promotion. There are a number of tools generally used in the different
categories of organizations in the face of the nature of goods and services sold by them.
The gift, contests, fairs and shows, discount and commission, entertainment and traveling
plans for bankers, additional allowances, low interest financing and retalitary are to
mention a few found instrumental in promoting the banking business.
As and when the banking organizations offer new services and schemes, the tools of sales
promotion are required to be innovated. This is with the motto of stimulating the new and
old customers. An important thing in the very context is the changing needs and
requirements of customers/prospects. The bank professionals bean outstanding task of
studying the competitors’ strategies which would he them in initiating the process of
innovation. Here it is important to mention the promotional incentives to the customers
would focus on decisions related to the selection of a tool. There are a number of
considerations to streamline the process. The bank professionals are supposed to study
the market conditions and make necessary suggestions, specially regarding the incentives.
It is a blending process and bank professional have to be sure the whatever the
provisions, they make are fulfilled on priority basis. More incentives more efficiency or a
vice-versa conditions more efficiency, more-incentives motivate bankers substantially.
THE PLACE MIX

This component of the marketing mix is related to the offering of services. The two
important decision making areas are making available the promised services to the
ultimate users and selecting a suitable place for bank branches.
The selection of a suitable place for the establishment of a branch is significant with the
viewpoint of making the place accessible and in addition, the safety and security
provisions are also found important. The banking organizations are not free to open a
branch since the Reserve Bank of India regulates the subject of branch expansion but so
far as the management of branch is concerned, the branch managers have option to select
a place which is convenient to both the parties, such as the users and the bankers. In the
Indian perspective, the protection to the bank’s assets and safety to the users and bankers
need due weight age. The vulnerable area or regions need adequate provisions to make
the branch safe. The management of office is also found significant with the viewpoint of
making the services attractive. The furnishing, civic amenities and parking facilities can’t
be overlooked.
Another important decision making area is related to the offering of services. This draws
our attention on the behavioral profile of bankers. The bankers in general and the front-
line-staff in particular bear the responsibility of making available the services-promised
to the ultimate users without any distortion often a gap is found generated by front-line-
staff that makes an invasion on the image of bank. The bank professionals or a branch
manager is required to be sure that whatever the promise have been made regarding the
quality of services are not distorted. The RBI and the different public sector commercial
banks are required to manage the distribution process intelligently and professionally.
Thus, the place mix is found to be an important decision making area which requires due
attention, both at macro and micro levels. If the banking organizations sell the promises it
is essential that the end users get the same without any distortion.
THE PEOPLE
Sophisticated technologies, no doubt, inject life and strength to our efficiency but the
instrumentality of sophisticated technologies start turning sour if the human resources are
not managed in a right fashion. Generation of efficiency is substantially influenced by the
quality of human resources. It is against this background that a majority of the
management experts make a strong advocacy in favour of developing quality people and
late, the people management has been include dint he marketing mix of organizations is
general and the service generating organizations in particular.
Not only the public sector commercial banks but almost all the public sector organization
and albeit other government departments, of late, have been facing the problem of quality
people resulting into inefficiency, deceleration in the rate of overall productivity and
profitability or so. The front-line staff are rough and indecent, the branch mangers are
helpless and even the bankers have been found involved in the unfair practices. The
public sector commercial banks need to assign on overriding priority to the development
of quality people majority of the management of the experts have realized the
significance of quality people in the development of an organization and the boardrooms
are also found changing their attitudes. The first task before the banking organizations at
the apex level is to overhaul the recruitment processes. While fixing criteria for selection,
they need to assign due weight age to the ethical values. The education and training
facilities are required to be innovated. The process of identification and inculcation need
to be managed carefully.
The foreign banks and the private sector commercial banks reward for efficiency and at
the same time also demotivate the inefficient bankers. This helps them in improving the
efficiency of even the inefficient people. The development of human resources makes the
ways for the formation of human capital. Incentives, of course, inject efficiency and the
organizations offering more incentives succeed in motivating the people.
• Having better and cost-effective control over operations.

• Enriching the job content of employees at all level (by reducing the drudgery of
mundane operations and increasing the analytical content of their work).
• Improving the quality of decision-making, a must in the fast changing
environment.
MACRO vs MICRO ECONOMIC ANALYSIS

PROBLEMS FACED BY INDIAN ECONOMY
o FALL IN SAVINGS RATIO
The savings ratio is the % of income that is saved not spent. A fall in the savings ratio
implies that consumer spending is increasing; often this is financed through increased
borrowing.
EFFECTS OF FALL IN SAVINGS RATIO
? HIGHER LEVEL OF CONSUMPTION
This results in increase in Aggregate Demand. The increase in AD will cause an increase
in economic growth and lower unemployment. However, rising Aggregate Demand may
cause inflation. Inflation will occur when growth is faster than the long run trend rate.
This is now a potential problem in the India. Inflation has recently gone above 12%
? BOOM AND BUST

A fall in the savings ratio is usually accompanied by a rise in confidence. It is the rise in
confidence which encourages borrowing and consumers to run down savings. Therefore,
there is always a danger that a falling savings ratio can be a precursor to a boom and bust
situation.
? ECONOMY MORE SENSITIVE TO INTEREST RATES
With a fall in the savings ratio interest rate changes will have a bigger effect in reducing
spending. This is because levels of borrowing are higher and therefore a rise in interest
rates has a significant impact on increasing interest repayments. Also, higher rates will
not be increasing incomes from savings as much.
? BALANCE OF PAYMENT
With higher levels of consumer spending, there will be an increase in imports. Therefore
this will lead to deterioration in the current account. The current account deficit could put
downward pressure on the exchange rate in the long term. However, some people argue a
fall in the savings ratio is not a problem, but, it is just a reflection of strong economy and
booming housing market, which increases scope for equity withdrawal.
o INFLATION
Inflation is posing a serious challenge to the economic growth of India. Since Jan’08
onwards, inflation in the country has surged by 8.2% to hit a 13-year high of ~12%. M3
growth in the economy too continued to remain strong at 20% (in July’08), well above
the RBI’s comfort level of 17%.
The WPI inflation rate flared up during the period driven by significant increase in the
prices of commodities, primary articles and manufactured products, even though very
small part of global crude price increase has been passed on to the Indian consumers.
o GLOBAL RECESSION
It appears that Europe, Japan and the US are entering into recession. Falling house prices,
crisis in the financial system, and lower confidence could lead to a sharp downturn, with
the worst still to come. Many argue that India’s growth is not so dependent on growth in
the West. However, the Indian stock markets have been hit by the global crisis. India’s
growing service sector and manufacturing sector would be adversely impacted by a
global downturn.
o RISE IN CRUDE PRICES
How global crude prices would behave probably has no easy answers; however we
believe that the current challenging and uncertain macro-economic conditions does not
lead Indian financials into a state of crisis. But continued rise in crude prices and its
resultant impact on inflation, interest rates and government finances has the potential to
do so. Hence, crude price remains the key risk to our positive stance on the Indian
financials.
In the last couple of months oil prices have surged by 45% from US$ 100 to US$ 145
(and now back to US$ 115). India currently imports 70% of its crude requirement,
resulting in pressure on government coffers on back of rising crude prices.
o DEPRICIATING INR
Surge in crude prices has severely impacted current account deficit of the country. This
coupled with the outflow of FII investments has resulted in INR to depreciate sharply
against dollar further fueling inflation.
IMPACT OF ECONOMIC PROBLEMS ON INDIAN FINANCIALS

The current macro-economic conditions are expected to result in
o SLOWDOWN IN CREDIT GROWTH
o IMPACT ON MARGINS OF BANKS
o PREASURE ON CREDIT QUALITY
• SLOWDOWN IN CREDIT GROWTH
While the rise in interest rates should lead to a moderation in demand for credit, Indian
banks too are exercising caution while lending. Credit growth of 18% in FY09E and 17%
in FY10E vs. 22% in FY08. Risks and uncertainties in the system have increased given
the higher crude and commodity prices and its inflationary impact. This would curtail
consumption, which would impact economic growth adversely. Further higher rates will
not only impact the profitability of Indian corporate but also impact IRRs of various
proposed capex projects. This coupled with elections next year could lead to some
postponement of capex plans of corporate, leading to negative impact on demand for
credit.
Higher rates have particularly impacted retail loan growth. As can be seen in the exhibit
below, retail loan growth has slowed down significantly from 26.5% in FY07 to ~13% in
FY08. SLR Ratio of the system has started rising since mid FY08 and currently stands at
28.7%. Given the expected negative impact on credit growth.
• IMPACT ON MARGINS OF BANKS
During the past 18 months, CRR has increased by 400 bps to 9.0% currently and RBI has
also discontinued with interest payment on CRR balances. Every 50 bps hike in CRR
generally negatively impacts margins by ~5 bps. Till June’08, most of the banks had
restrained from hiking lending rates despite significant monetary tightening. However on
account of recent measures by RBI, banks have resorted to hiking PLRs in July/August
by 50-150 bps to preserve their margins.
In fact in an environment, where liquidity is tight, interest rates are at elevated levels and
risk premiums have increased, the banks tend to regain the pricing power. This would not
only help the banks to adequately price in risks but also help protect their margins. Apart
from hiking PLRs, banks are also resorting to reprising (in fact right-pricing) the loans
that were sanctioned well below PLRs. Significant portion of fixed rate loans would also
get re-priced over the period of 12-18 months.
• PRESSURE ON CREDIT QUALITY

Higher lending rates are expected to impact credit quality for the banking system. The
extent of the impact on credit quality would also be bank specific given the loan mix
(retail vs. corporate), proportion of unsecured lending, credit profile of corporate loan
book and industry wise exposure. Indian banks’ fundamentals are relatively resilient with
better risk management systems, dramatically improved asset quality, stronger recovery
mechanisms (legal provisions) and with adequate capitalization and provisioning.
Even Certain sectors (like real estate, airlines industry) might feel the stress due to the
changing macro environment and rise in interest rates. Many companies where crude
forms a key raw material component are expected to get hit more severely. Similarly,
sectors like real estate and SMEs, which are interest rate sensitive, would face higher
delinquencies if interest rates strengthen further by 100-200 bps.
NECESSARY INITIATIVES TAKEN BY RBI & MINISTRY OF FINANCE TO

TACKLE ECONOMIC PROBLEMS
As most of economists feel that the most horrible problem which India is facing
currently is inflation which has crossed 12%. To come out of these problems RBI and
ministry of finance and other relevant government and regulatory entities are taking
various initiatives which are as follows...
• RBI MONITORY POLICY
With the introduction of the Five year plans, the need for appropriate adjustment in
monetary and fiscal policies to suit the pace and pattern of planned development became
imperative. The monitory policy since 1952 emphasized the twin aims of the economic
policy of the government:
o Spread up economic development in the country to raise national income and

standard of living, and
o To control and reduce inflationary pressure in the economy.
This policy of RBI since the First plan period was termed broadly as one of controlled
expansion, i.e.; a policy of “adequate financing of economic growth and at the same time
the time ensuring reasonable price stability”. Expansion of currency and credit was
essential to meet the increased demand for investment funds in an economy like India
which had embarked on rapid economic development. Accordingly, RBI helped the
economy to expand via expansion of money and credit and attempted to check in rise in
prices by the use of selective controls.
OBJECTIVES OF MONITORY POLICY
? PRICE STABILITY
? MONITORY TARGETTING
? INTEREST RATE POLICY
? RESTRUCTURING OF MONEY MARKET
? REGULATION OF FOREIGN EXCHANGE MARKET
WEAPONS OF MONITORY POLICY

Central banks generally use the three quantitative measures to control the volume of
credit in an economy, namely:
o Raising bank rates
o Open market operations and
o Variable reserve ratio
However, there are various limitations on the effective working of the quantitative
measures of credit control adapted by the central banks and, to that extent, monetary
measures to control inflation are weakened. In fact, in controlling inflation moderate
monetary measures, by themselves, are relatively ineffective. On the other hand, drastic
monetary measures are not good for the economic system because they may easily send
the economy into a decline.
In a developing economy there is always an increasing need for credit. Growth requires
credit expansion but to check inflation, there is need to contract credit. In such a
encounter, the best course is to resort to credit control, restricting the flow of credit into
the unproductive, inflation-infected sectors and speculative activities, and diversifying
the flow of credit towards the most desirable needs of productive and growth-inducing
sector. It should be noted that the impression that the rate of spending can be controlled
rigorously by the contraction of credit or money supply is wrong in the context of modern
economic societies. In modern community, tangible, wealth is typically represented by
claims in the form of securities, bonds, etc., or near moneys, as they are called. Such near
moneys are highly liquid assets, and they are very close to being money. They increase
the general liquidity of the economy. In these circumstances, it is not so simple to control
the rate of spending or total outlays merely by controlling the quantity of money. Thus,
there is no immediate and direct relationship between money supply and the price level,
as is normally conceived by the traditional quantity theories. When there is inflation in an
economy, monetary restraints can, in conjunction with other measures, play a useful role
in controlling inflation.
• FISCAL POLICY
Fiscal policy is another type of budgetary policy in relation to taxation, public borrowing,
and public expenditure. To curve the effects of inflation and changes in the total
expenditure, fiscal measures would have to be implemented which involves an increase
in taxation and decrease in government spending. During inflationary periods the
government is supposed to counteract an increase in private spending. It can be cleared
noted that during a period of full employment inflation, the aggregate demand in relation
to the limited supply of goods and services is reduced to the extent that government
expenditures are shortened.
Along with public expenditure, governments must simultaneously increase taxes that
would effectively reduce private expenditure, in an effect to minimise inflationary
pressures. It is known that when more taxes are imposed, the size of the disposable
income diminishes, also the magnitude of the inflationary gap in regards to the
availability of the supply of goods and services. In some instances, tax policy has been
directed towards restricting demand without restricting level of production. For example,
excise duties or sales tax on various commodities may take away the buying power from
the consumer goods market without discouraging the level of production. However, some
economists point out that this is not a correct way of combating inflation because it may
lead to a regressive status within the economy.
As a result, this may lead to a further rise in prices of goods and services, and inflation
can spread from one sector of the economy to another and from one type of goods and
services to another. Therefore, a reduction in public expenditure, and an increase in taxes
produces a cash surplus in the budget. Keynes, however, suggested a programme of
compulsory savings, such as deferred pay as an anti-inflationary measure. Deferred pay
indicates that the consumer defers a part of his or her wages by buying savings bonds
(which, of course, is a sort of public borrowing), which are redeemable after a particular
period of time, this is sometimes called forced savings. Additionally, private savings have
a strong disinflationary effect on the economy and an increase in these is an important
measure for controlling inflation. Government policy should therefore, include devices
for increasing savings. A strong savings drive reduces the spendable income of the
consumers, without any harmful effects of any kind that are associated with higher
taxation. Furthermore, the effects of a large deficit budget, which is mainly responsible
for inflation, can be partially offset by covering the deficit through public borrowings. It
should be noted that it is only government borrowing from non-bank lenders that has a
disinflationary effect. In addition, public debt may be managed in such a way that the
supply of money in the country may be controlled. The government should avoid paying
back any of its past loans during inflationary periods, in order to prevent an increase in
the circulation of money. Anti-inflationary debt management also includes cancellation
of public debt held by the central bank out of a budgetary surplus.
Fiscal policy by itself may not be very effective in combating inflation; therefore a
combination of fiscal and monetary tools can work together in achieving the desired
outcome.
• DIRECT MEASURES
Direct controls refer to the regulatory measures undertaken to convert an open inflation
into a repressed one. Such regulatory measures involve the use of direct control on prices
and rationing of scarce goods. The function of price control is a fix a legal ceiling,
beyond which prices of particular goods may not increase. When ceiling prices are fixed
and enforced, it means prices are not allowed to rise further and so, inflation is
suppressed. Under price control, producers cannot raise the price beyond a specified
level, even though there may be a pressure of excessive demand forcing it up.
In times of the severe scarcity of certain goods, particularly, food grains, government
may have to enforce rationing, along with price control. The main function of rationing is
to divert consumption from those commodities whose supply needs to be restricted for
some special reasons; such as, to make the commodity more available to a larger number
of households. Therefore, rationing becomes essential when necessities, such as food
grains, are relatively scarce. Rationing has the effect of limiting the variety of quantity of
goods available for the good cause of price stability and distributive impartiality.
Another control measure that was suggested is the control of wages as it often becomes
necessary in order to stop a wage-price spiral. During galloping inflation, it may be
necessary to apply a wage-profit freeze. Ceilings on wages and profits keep down
disposable income and, therefore the total effective demand for goods and services. On
the other hand, restrictions on imports may also help to increase supplies of essential
commodities and ease the inflationary pressure. However, this is possible only to a
limited extent, depending upon the balance of payments situation. Similarly, exports may
also be reduced in an effort to increase the availability of the domestic supply of essential
commodities so that inflation is eased.
In general, monetary and fiscal controls may be used to repress excess demand but direct
controls can be more useful when they are applied to specific scarcity areas. As a result,
anti-inflationary policies should involve varied programmes and cannot exclusively
depend on a particular type of measure only.
FINANCIAL ANALYSIS
This section will show, how ING Vysya has done financially over the last three
years(2005-2008). We will calculate all the financial ratios including the banking ratios
also, to show how ING Vysya fair up against its competitors. To do that I will be using
the last three years balance sheet, profit and loss account, and cash flow statement of ING
Vysya.
BALANCE SHEET FROM THE YEAR (2005-2008)
Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths
Total Share Capital 90.72 90.90 102.47

Equity Share Capital 90.72 90.90 102.47
Share Application Money 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00
Reserves 817.41 901.60 1,323.67
Revaluation Reserves 111.54 110.78 109.52
Net Worth 1,019.67 1,103.28 1,535.66
Deposits 13,335.26 15,418.59 20,498.06
Borrowings 1,107.45 843.55 1,249.81

Total Debt 14,442.71 16,262.14 21,747.87
Other Liabilities & Provisions 1,304.29 1,920.87 2,256.39
Total Liabilities 16,766.67 19,286.29 25,539.92
Mar '06
Mar '07
Mar '08
Cash & Balances with RBI 841.65 945.81 2,263.53
Balance with Banks, Money at Call 281.68 645.89 921.23
Advances 10,231.53 11,976.17 14,649.55
Investments 4,372.34 4,527.81 6,293.32
Gross Block 676.23 681.06 706.82

Accumulated Depreciation 383.02 394.33 429.31
Net Block 293.21 286.73 277.51
Capital Work In Progress 112.20 109.24 121.70
Other Assets 634.06 794.65 1,013.06
Total Assets 16,766.67 19,286.30 25,539.90
Contingent Liabilities 10,986.42 17,462.28 32,959.36
Bills for collection 2,850.13 3,033.30 3,096.69
Book Value (Rs) 100.10 109.18 139.17
PROFIT AND LOSS ACCOUNT FROM 2005-2008

Profit & Loss account of ING Vysya Bank ------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08
Interest Earned 1,222.43 1,401.38 1,680.44
Other Income 190.31 248.57 418.57

Total Income 1,412.74 1,649.95 2,099.01
Interest expended 741.25 859.31 1,182.05

Employee Cost 234.19 238.48 302.39
Selling and Admin Expenses 161.58 170.16 140.70
Depreciation 37.20 37.98 38.93
Miscellaneous Expenses 229.47 255.10 279.99
Preoperative Exp Capitalised 0.00 0.00 0.00
Operating Expenses 572.17 576.51 645.49
Provisions & Contingencies 90.27 125.21 116.52
Total Expenses 1,403.69 1,561.03 1,944.06
Mar '06 Mar '07 Mar '08
12 mths
12 mths
12 mths
Net Profit for the Year 9.06 88.91 154.95
Extraordinary Items 0.00 0.00 0.00
Profit brought forward -34.60 1.29 18.44
Total -25.54 90.20 173.39
Preference Dividend 0.00 0.00 0.00
Equity Dividend 0.00 5.91 15.37
Corporate Dividend Tax 0.00 1.00 2.61
Earning Per Share (Rs) 1.00 9.78 15.12

Equity Dividend (%) 0.00 6.50 15.00
Book Value (Rs) 100.10 109.18 139.17
Transfer to Statutory Reserves -26.84 64.85 53.85
Transfer to Other Reserves 0.00 0.01 0.00

Proposed Dividend/Transfer to Govt 0.00 6.91 17.98
Balance c/f to Balance Sheet 1.29 18.44 103.53

Total -25.55 90.21 175.36
CASH FLOW STATEMENT
Cash Flow of ING Vysya Bank ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08
Net Profit Before Tax 21.52 127.63 251.46
Net Cash From Operating Activities -202.67 308.12 1426.23
Net Cash (used in)/from

Investing Activities -74.90 -17.62 -35.55
Net Cash (used in)/from Financing Activities 286.41 177.87 202.38
Net (decrease)/increase In Cash and Cash Equivalents 8.84 468.37 1593.06
Opening Cash & Cash Equivalents 1114.50 1123.33 1591.70
Closing Cash & Cash Equivalents 1123.33 1591.70 3184.76
RATIO ANALYSIS
LIQUIDITY RATIOS
Liquidity ratios measures the ability of the firm to meet its current obligations
(liabilities). The most common ratios that indicate the extent of liquidity or lack of it are
1) CURRENT RATIOS
2) QUICK RATIOS
3) CASH RATIOS
CURRENT RATIOS
Current ratio is calculated by dividing current asset by current liabilities.
Current ratio = current asset

Current liabilities.
For ING VYSYA the current ratios for last three years are.
2005-06 2006-07 2007-08
CURRENT RATIOS
1.66
2.02
2.42
As a conventional rule current ratios of 2: 1 is considered satisfactory. Looking at the

current ratios of ING Vysya we can see that in the year 2005-06 the current ratio was
1.66, which is well below the standard. This shows that in 2005-06 the bank was not in
the position to pay it current obligations. But in the years 2006-07 and 2007-08 the
current ratio of the bank has been improving. This shows that the bank has higher safety
now, because there are more current assets than current liabilities.
NET WORKING CAPITAL RATIOS

Net working capital is the difference between current assets and current liabilities. It is
considered that the bank having larger NWC has the greater ability to meet its current
obligations.
Net working capital ratios = NWC

Net assets
2005-06 2006-07 2007-08
NWC ratio
1.03
1.11
1.19
From the table above we can see that the net working capital ratio of the bank has been
increasing, which shows that the bank is much more secured now, as it can pay its current
liabilities.
PROFITABILITY RATIOS
Profitability ratios are used to asses a business ability to generate earnings as compared to
expenses over a period over a time. The various profitability ratios that we will use are
1) Return on net worth
2) Interest spread
3) Earning per share
4) Net profit margin
NET PROFIT MARGIN
Net profit divided by net revenues, often expressed as a percentage. This number is an
indication of how effective a company is at cost control. The higher the net profit margin
is, the more effective the company is at converting revenue into actual profit. The net
profit margin is a good way of comparing companies in the same industry, since such
companies are generally subject to similar business conditions. However, the net profit
margins are also a good way to to compare companies in different industries in order to
gauge which industries are relatively more profitable. The profit margin is mostly used
for internal comparison. It is difficult to accurately compare the net profit ratio for
different entities. Individual businesses' operating and financing arrangements vary so
much that different entities are bound to have different levels of expenditure, so that
comparison of one with another can have little meaning. A low profit margin indicates a
low margin of safety: higher risk that a decline in sales will erase profits and result in a
net loss
2005-06 2006-07 2007-08

NET PROFIT MARGIN
.87
6.7
7.8
As can be seen that from the data, in 2005-06 the bet profit margin of ING Vysya was
just 8.7% but in 2006-07 and 2007-08( 67% and 78%) the NPM has constantly been
increasing. This shows that the bank is converting its revenues into profit. This shows
that the bank is safe and there is lower risk.
RETURN ON NET WORTH/RETURN ON EQUITY
Return on net worth is used as a measure of a financial institution’s profitability. It

reveals how much profit a company generates with the money a equity shareholders have
invested. It is also called return on equity.
ROE/RONW = net income × 100
Shareholder’s equity
2005-06 2006-07 2007-08

RONW 1.11% 9.36% 11%
As can be seen from the table the return on net worth or return on equity was very less in
2005-06(1.11%), but after that in the year 2006-07 the bank’s ROE/RONW started
increasing. This means that for each rupee invested by the shareholder’s 9.36% was
returned in the form of earning. In 2007-08 the bank’s RONW increased to 11%.
INTEREST SPREAD
Interest spread is the difference between the average lending rate and the average
borrowing rate for a bank or other financial institution. It is:
interest income ÷interest earning assets) - (interest expense ÷interest bearing liabilities
This is very similar to interest margin. If a bank's lending was exactly equal to its
borrowings (i.e. deposits plus other borrowing) the two numbers would be identical. In
reality, bank also has its shareholder's funds available to lend, but at the same time its
lending is constrained by reserve requirements.
Changes in the spread are an indicator of profitability as the spread is where a bank
makes its money
2005-06 2006-07 2007-08
INTEREST SPREAD
4.51
4.23
5.24
We can see in the table that the interest margin has been swinging. In 2006-07 the interest
margin came down from the previous year which means the bank didn’t made money as
compared to last year. But in 2007-08 the interest margin went to 5.24. this is an indicator
of profitability and proves that the bank is making money.
BALANCE SHEET RATIOS
In banking the two most important ratios that are looked very closely are
1) Capital adequacy ratio
2) Return on assets
3) Loan/advances funds%
CAPITAL ADEQUACY RATIO
CAR is a ratio of bank’s capital to its risk. National regulators tracks banks CAR to
ensure that it can absorb reasonable amount of loss and are complying with the banking
statutory capital requirements. Capital adequacy ratio is the ratio which determines the
capacity of the bank in terms of meeting the time liabilities and other risk such as credit
risk, operational risk, etc. In the simplest formulation, a bank's capital is the "cushion" for
potential losses, which protect the bank's depositors or other lenders. Banking regulators
in most countries define and monitor CAR to protect depositors, thereby maintaining
confidence in the banking system
The percent threshold (9% in this case, a common requirement for regulators conforming
to the Basel Accords) is set by the national banking regulator. 9% is for the existing
banks.
2005-06 2006-07 2007-08

9.32
10.12
11.31
From the table it can be seen that ING Vysya has always had the minimum requirement
capital adequacy ratio. So in that point it can be concluded that the bank has always been
safe.
RETURN ON ASSETS
An indicator of how profitable a bank is relative to its total assets. ROA gives an idea as
to how efficient management is at using its assets to generate earnings. Calculated by
dividing a company's annual earnings by its total assets, ROA is displayed as a
percentage. Sometimes this is referred to as "return on investment".
The formula for return on assets is:
2005-06 2006-07 2007-08

Return on assets .05% .13% .52%
As can be seen from the table that the return on assets has been increasing as the years
have gone by. The ratio is significantly low as compared to other private banks, but it is
catching up on it.
LOAN / ADVANCES FUNDS
Loans/advances constitute a major chunk of a bank’s assets. These also yield returns by
way of interest income which contributes the largest percentage of bank’s profits.
Lending of funds to traders, business, enterprises constitutes the main business of
banking. Banks are financial intermediaries and lend the funds of depositors who
themselves do not want to lend in the business directly.
2005-06 2006-07 2007-08

Loan / advances funds% 73.12 78.1 81.3
It can be seen from the table above that ING Vysya’s loan/ advances funds I % terms
have been increasing. This is a good data. Because the main profit of loans and advances
is to earn profit by way of interest spread. The more the lending percentage will be the
more will be profit;
DEBT COVERAGE RATIOS

Also known as the Debt Service Coverage Ratio (DSCR), the debt coverage ratio
measures your ability to pay the property's monthly mortgage payments from the cash
generated from renting the property. Bankers and lenders use this ratio as a guide to help
them understand whether the property will generate enough cash to pay rental expenses
and whether you will have enough left over to pay them back on the money you
borrowed.
The DCR is calculated by dividing the property's annual net operating income (NOI) by a
property's annual debt service. Annual debt service is annual total of your mortgage
payments (i.e. the principal and accrued interest, but not your escrow payments).
The various debt coverage ratios are
1) Credit deposit ratio
2) Investment deposit ratio
3) Cash deposit ratio
CREDIT DEPOSIT RATIO
It is the proportion of loan-assets created by banks from the deposits received. The higher
the ratio, the higher the loan-assets created from deposits. Some experts contend that a
high credit-deposit ratio could lead to a rise in interest rates.
Consider Bank X which has deposits worth Rs. 100 crores and a credit-deposit ratio of 60
per cent. That means Bank X has used deposits worth Rs. 60 crores to create loan-assets.
Only Rs. 40 crores is available for other investments. Now, the Indian government is the
largest borrower in the domestic credit market. The government borrows by issuing
securities (G-secs) through auctions held by the RBI. Banks, thus, lend to the government
by investing in these G-secs. And Bank X has only Rs. 40 crores to invest in G-secs.
If more banks like X have lesser money to invest in G-secs, what will the government
do? After all, it needs to raise money to meet its expenditure. The government has two
options. One, it can raise yields to make investment by banks in G-secs attractive. Or
two, force the RBI to take the securities into its books. Both the options have a tendency
to push up interest rates in the economy. Yields on G-secs serve as a benchmark for
interest rates on other debt instruments. A rise in the former, thus, pushes up interest rates
on the latter. But why should interest rates rise if RBI takes G-secs into its books?
Because, by doing so, the RBI releases fresh money into the system. If the money so
released is large, ``too much money will chase too few goods'' in the economy resulting
in higher inflation levels. This would prompt investors to demand higher returns on debt
instruments. In other words, higher interest rates.
2005-06 2006-07 2007-08

DEBT COVERAGE RATIO 69.18 73.21 70.12
It can be seen from the table that the debt coverage ratio of ING Vysya has been moving
up and down. A high debt coverage ratio means higher interest rate for the bank. So it can
bee see that in 2007-08 the debt coverage ratio has been less than 2006-07, but still it is
on the higher side.
CASH DEPOSIT RATIO

Historically, and in banking theory, the cash-deposit ratio is a measure of the liquidity of
banks' assets. Cash consists of cash in the vaults of banks, and balances with the Reserve
Bank of India. The regulatory authorities of central banks would like to fix minimal cash
ratios and to vary it according to macro policy requirements.
In India, there is a minimal requirement of 3 per cent for the cash-deposit ratio. Banks
like to keep the cash ratio higher than the minimum for various understandable reasons.
In theory, cash does not earn banks any interest but when the RBI moves up the ratio, it
often tends to pay some interest on the excess cash maintained with it. This is with a view
not to hurt the earnings of banks too much in the context of regulatory requirement.
2005-06 2006-07 2007-08

CASH DEPOSIT RATIO 5.82 6.94 9.12
As it can be seen from the data, the cash deposit ratio of ING Vysya has been at
satisfactory level. And it has contantantly been increasing.
COMPARISION WITH KOTAK MAHINDRA
Bank Name Last price Market cap Net interest income Net profit Total
assets
ING Vysya 211 2165.11 2239.45 188.8 31858.34
Kotak mahindra 668 23158.70 3065.14 276 28711.78
RATIO ANALYSIS OF KOTAK MAHINDRA
PROFITABILITY RATIOS
Profitability ratios are used to asses a business ability to generate earnings as compared to
expenses over a period over a time. The various profitability ratios that we will use are
1) Return on net worth
2) Interest spread
3) Net profit margin
NET PROFIT MARGIN

2005-06 2006-07 2007-08

NET PROFIT MARGIN
17.12
15.65
15.12
As can be seen from the table net profit margin of Kotak Mahindra has been decreasing,
the reason can be that they are not able to convert revenue into net profit. That’s the
reason the net profit is going down and the net profit margin is showing low.
RETURN ON NET WORTH/RETURN ON EQUITY
ROE/RONW = net income × 100
Shareholder’s equity
2005-06 2006-07 2007-08

RONW 14.2 11.18 8.7
As can be seen from the table, the return of net worth is going down which suggests that
the net income generated by the bank is very low as compared to the equity invested.
INTEREST SPREAD
2005-06 2006-07 2007-08
INTEREST SPREAD
4.55
5.06
6.3
This shows that the interest margin of kotak Mahindra is going up for consecutive years.
The reason can be that the bank is earning a good margin in the interest rate. That is the
difference between the average lending rate and the borrowing rate. This also shows that
the bank is making money.
BALANCE SHEET RATIOS
In banking the two most important ratios that are looked very closely are
1) Capital adequacy ratio
2) Return on assets
3) Loan/advances funds%
2005-06 2006-07 2007-08

11.23
13.12
18.31
The capital adequacy ratio of kotak has been constantly increasing. The average CAR
which national banking regulator has set is 8%. This shows that kotak is less risqué.
LOAN / ADVANCES FUNDS
2005-06 2006-07 2007-08

Loan / advances funds% 95.34 90 86.3
The advances% has been decreasing for kotak. This means that the company is not able
to earn profit by the way of interest spread.
RETURN ON ASSETS
The formula for return on assets is
2005-06 2006-07 2007-08

Return on assets 3.6 3.4 4.5
As can be seen from the table that the return on assets has been increasing as the years
have gone by. The ratio is significantly low as compared to other private banks, but it is
catching up on it.
DEBT COVERAGE RATIOS
CREDIT DEPOSIT RATIO
2005-06 2006-07 2007-08

DEBT COVERAGE RATIO 98.43 94.23 96
The credit deposit ratio of kotak mahindra is too much as compared to other banks. A
higher credit deposit means higher interest rate. The average for all banks is around 66%.
CASH DEPOSIT RATIO
2005-06 2006-07 2007-08

CASH DEPOSIT RATIO 6 6.5 8.68
``
As it can be seen from the data, the cash deposit ratio of ING Vysya has been at
satisfactory level. And it has constantly been increasing.
PROJECT
CREDIT APPRAISAL PROCESS

1) Login of the credit file.
2) To watch out that weather the case is doable or not.
3) Preparation of the note.
4) Appraisal by the risk department.
5) Sanction letter.
STEP FIRST: LOGIN OF THE CREDIT FILE
In this very first step, the marketing team of the bank gets the cases on the basis of their
references and the data in their hand .After that the marketing will handle over the case to
the credit department along with the necessary documents for further process of the case.
Following is the list of necessary documents required to log in a case

? Duly filled application form.
? Audited financials of last three years.
? Provisional financials of last year (if audited is not available)
? Bank statement of last six months(through which bank A/c the firm does the
maximum banking)
? ITR (Income Tax Return) of Promoter/ Property owner.
? Vintage proof.
? Sanction letter of prevailing limit (if any).
? CIBIL FORM
Once all the documents are completed for log in .The case is shown in MIS as a log in by
credit department.
STEP TWO: DECISION OF GO-NO-GO CRITERIA BY THE CREDIT

DEPARTMENT
Once all the login documents are completed the process of checking of do ability
(GO/NO GO) is done.
In this very step the dedupe checkup is to be done. In this dedupe checkup we do a check
out weather there is any overdue or default on the borrower side or not.
Once the dedupe checkup is clear the credit team prepare the finspred (software for
analyzing the financials) for the case with the help of the audited financials .And also
check out the track record in the bank statement of client .We can check the track record
with the help of the following things.
? Counts of credit transactions

? Total amount of credit transactions (%of the ratio to turnover)
? Counts of debit transactions
? Total amount of debit transactions (%to the ratio of expenditure)
? Number of INWARD cheque returns
? Number of OUTWARD cheque returns
? Timely payment of EMI’s and Interest.
After preparing the finspread on the basis of certain ratios and track record of bank
statement the credit team decides that the case is doable or not.
Following are the some of the main parts or ratios on which the bank gives more
emphases while to judge that the case is doable or not.
? LEVERAGE of the company must have the leverage of 6 according to the bank
norms(i.e. TOL/TNW total outstanding liability, tangible net worth)
? CURRENT RATIO of the company
? MPBF (Maximum Permissible Bank Finance)
? DSCR (debt security coverage ratio) in case of term loan
? Profitability ratio (like gross profit margin, EBIDTA rate, PAT margin)
THIRD STEP: NOTE PREPARATION
Once the case is to be approved as doable a set query is send to the marketing team for
further movement of case or we can say for the preparation of note
In the note the credit team summarizes up all the details of the borrower.
NOTE WRITING INCLUDES THE FOLLOWING

? Business background
? Process of business.
? comment on financial statement of the company
? Future plan of the company and comments on the projection.
? Bank statement analysis
? Promoters background
? Market reference of the client
? Industry scenario
? Detailed terms & condition of the sanction including:
- Type of limit to be sanctioned (fund based – CC / OD/ TL/ PC/ WCDL etc & non
fund based – LC/BG/For ex limit etc.)
- Amount of Limit to be sanctions
- Rate of interest (for fund based facility) and rate of commission (for non fund based
facility) and processing fee
- Detail of security (primary and collateral)
- Detail of Personal guarantee.
-Other terms & conditions as required.
? And other information specific to case to case.

Once the note is prepared the case is sent to the centralized risk management department
(CRMD).the risk department is totally independent from credit department the credit
department sent the prepared note to risk department to examine the proposal.
STEP FOUR: APPRAISAL BY THE RISK DEPARTMENT
In this step the risk department scrutinizes the whole proposal and they bring out the
observations, and send a list of query to the credit department.
As and when credit department will get a list of query raised by the risk department they
replies on the same with help of the marketing department start working on them to solve
out the quires along with the help of marketing department.
After solving all the observation the case s uploaded for sanction to the appropriate
authority as per the delegation of power by the bank.
STEP FIVE: SANCTION
After the uploading of the case, the case is presenting by the credit department along with
marking department to the appropriate author for the sanction of the case. During the
presentation of the case various observation are raised by the appropriate sanction author
and on the basic of discussion, the authority decide to approve / reject or withdrawn for
modification.
If case is withdrawn for modification for the adding of some information or document.
The credit department along with mark modifies the proposal as required by authority
and again uploads the same and discuss with the authority to get it approved or rejected.
Once the case got sanctioned minutes are generated. On the basis of minutes the CAL
(Credit Agreement Letter) are prepared and issued to customer.
METHODOLOGY USED
Meet the customer

Positive
Take KYC Documents& Application form
Positive
Initial Dedupe Check
Application Rejected
Positive
Check the Banking
Negative
Audited Financials Test
Positive
Deviation Check
Positive
Approval By ZCC
Internal verifications
Decision on disbursal of loan
Positive
Discussion on terms & conditions on loan to be sanctioned between client& bank
Not accepted by the customer
The credit appraisal process at ING Vysya bank
The credit appraisal process at ING Vysya bank is considered very thorough and
conservative the bank undertakes the above steps to complete the credit appraisal process.
1. Meet the client: The bank has appointed various Relationship managers( RM) and
executives who find the clients with credit requirements for their business, if the RM are
satisfied with the client and its expectation with the bank the case goes to the regional
office for a complete check and evaluation.
2. Take KYC Documents& Application form: The RM after the first course of
interaction with the client asks for the various document required to appraise the project.
KYC documents as mentioned in the policy guidelines are Know your customer(KYC)
the customer can be best known with his financials and other vintage proofs mentioned in
the requirement list.
3. Initial Dedupe Check: This is better known as initial de-duplication checks in this
the bank checks the credit reporting of the client whether he holds any over-dues etc. The
bank also checks the client in RBI defaulter list.
4. Check the Banking: The first thing the bank checks is the banking of the existing
limit account if any, the bank tries to check the existing performance of client with the
other banks, and in case more number of inward returns due to in-sufficiency of funds.
Then this is also a deviation and if there is over utilization of the limit on all the days then
this calls for accountability by the client.
5. Audited financial test: The bank under takes a complete check of financials as
mentioned in the requirements, these audited financials are put in finspread software of
the bank and then projections are made on the basis of financials and then various
profitability ratios are analyzed and the financial soundness of the company is analyzed.
The financial viability of the company is checked on various parameter as mentioned.
6. Deviation check: The bank after checking the financial soundness of the company
goes for the verification of the deviation check of policy compliance, if any in case of
major deviations the case is presented in front of the zonal credit committee, their
decision stands the final verdict on the approval f the case.
7. Internal Verification: The bank through its various sources makes a complete
thorough investigation of the handling of business of the clients, this enables the bank to
make sure that the client is not forging with the financials of the company.
8. Approval by ZCC: If the credit limit is below Rs5oo lakhs then the approval is
sought by Zonal head of the business banking and if the amount exceeds the above
stated amount then the case is first discussed by ZCC and is then presented on
ECC(electronic credit committee) depending upon the policy compliance failed by the
client.
9. Decision on disbursal of loan: When the case is presented to risk department it

analyses the variety of risk involved in the sanctioning of loan if it crosses the parameters
then the possibility of disbursal of loan declines then the ZCC makes its final approval on
the limits required by the client and the limit deserved by the client, the bank makes it
final way to the approval of the loans.
10. Discussion between client &Bank on approval: The banks proposes its terms and
conditions to the client and the amount of loan that is approved to the client at what rate
of interest and what proportion of collateral is kept by the bank, when the client agrees on
all these terms then only the case reaches the sanctioning stage.
PROJECT DETAILS:
Company name: Sahib Textiles Pvt. Ltd.

Type of Firm: Private Limited Company
Kind of business: Manufacturing & Wholesale trading of fabrics
Established in: July 1994.
Limit requirement: Rs.425 lacs.
Date of sanction: 23-06-09
Limits valid till:-30-06-10
BORROWER BACKGROUND
? Sahib Textile Pvt Ltd has been promoted by the Sahib group and was
incorporated in July 1994. Currently the company is engaged in the wholesale trading of
fabrics.
? Earlier the company was engaged in doing embroidery job mainly for its sister
concern M/s SDM Fabrics Pvt. Ltd, which got merged in Sahib Textiles Pvt. Ltd w.e.f
01-04-07. M/s SDM Fabrics was enjoying working capital limits in tune to Rs. 425.0 lacs
from IVBL. Now the same is being extended to M/s Sahib Textiles Pvt. Ltd.
? The company is into wholesale trading of ladies dress material like Georgette,
Crepes, Jacquards, Woven and Embroidered fabrics etc under the registered trademark of
"TACFAB".
? Before merger, Sahib Textile Pvt. Ltd purchases fabrics in SDM Fabrics Pvt. Ltd
from textile mills in Surat, Calcutta and Bombay. The fabric is also purchased through
brokers. Embroidery work was being done on fabrics by Sahib Textile P Ltd. Other jobs
like dyeing or printing on grey fabric are done on job work basis
? After merger the company procure the material from the same suppliers, get it
embroidered and other job works i.e. dying and printing as and if required and sells to
same customers. Only embroidery work to be done on fabrics is done by Sahib Textile P
Ltd. Other jobs like dyeing or printing on grey fabric are done on job work basis.
? The Sahib Group, presently consisting of two firms/companies is engaged in the

business of wholesale trading of fabrics for the last 40 years under the registered
trademark of Tacfab. The Sahib group of companies/concerns is engaged in
manufacturing of embroidery cloth, merchandising of fabrics, wholesale and retail of
fabrics and have maintained a good financial track record of profits and turnovers.
? The registered office of the company is located at 6/65, WEA Laxmi Palace Hotel
Building, Gurudwara Road, Karol Bagh, 110005 is owned by the company.
? Manufacturing unit of the company is located at Khasra No 74, Narela Road, Op

Haryana Power House, Kundli, District Sonipat Haryana, with a carpet area of 5377.77
sq. yards owned by the company. Presently the company is equipped with 3 embroidery
machines, all 3 are at Kundli, various packing machines, located at Sanjay Gandhi
Transport Nagar, Chandni Chowk and Mumbai.
? The company gets the embroidery done on fabric. The soft copies of the pattern
are loaded on the machineries and embroidery done on fabric.
? After embroidery and other job works like dying or printing, fabric dispatched to
company’s 3 packing and selling pints, details for which is given below:
Sanjay Gandhi transport Nagar: This place is used as packing and selling point.
Mumbai: Building 13Ab, gala 11,Samhita Warehousing Complex, Kurla Andheri road,
Mumbai. This place is also being used as BRANCH OFFICE of the company.
Chandni Chowk: 4805-10, Katra Subhash, Chandni Chowk owned by the directors. Same
place is also being used as CORPORATE OFFICE of the company.
? The goods are then packed and sold from all these centres.
? The company is having staff strength of 200 people to handle all the working of
the company.
DIRECTOR BACKGROUND
? Surjit Singh: aged about 63, is the Managing Director of the company. He has
experience of about 40 years in this line of activity. He is a prominent member of the
society and is the chairman of two well-known public schools in Delhi, namely Mata Jai
Kaur Public School, Ashok Vihar and Jaspal Kaur Public School, Shalimar Bagh, New
Delhi. The directors have combined net-worth in excess of Rs. 1000 lakhs. Mr. Surjit
Singh is well supported by his sons, Mr. Harjot Singh and Mr. Satnam Singh who are
also directors in the company. Both have more than 10 years of experience in the
industry.
? Satnam Singh: aged 39, is the director of the company and has experience of 15
years in this line of activity.
? Harjot Singh, aged 37, is also the director of the company. He has been associated
with the family business for the past 12 years.
B. Ownership And Management

Held by %age as on Board of Directors, Age, Experience, Qualification
Relationship Position
Satnam Singh Takkar 22.63% - Director
Surjit Singh Takkar 28.15% - Director
Harcharan Singh Takkar 0.001% - -
Rasnapreet Preet kaur 17.50% - Director
Arshiya Singh 12.00% - - -
Surjit Singh Takkar, HUF 10.71% - - -
Harjot Singh Takkar 9.00% - - Director
Total 100% - - -
CREDIT BASE
The company procures material from textile mills based at Surat, Calcutta, Mumbai and
further sells to other retail traders.
RELATIONSHIP/BUSINESS RATIONALE
i. Relationship Experience
The group is banking with us from last 3 years and was also enjoying working capital
facilities from us.
ii. Business Rationale
i) The group is banking with us for the last 3 years and the conduct of the accounts
is good
ii) We shall be charging processing fee of Rs. 4.25 lacs from the customer.
iii) We shall be earning a gross interest income of appx Rs. 59.5 lacs from the
customer.
iv) The market for ladies dress material is steadily growing with the demand of more
innovative and unique designs in the market. Even with the ever-changing fashion in this
line of activity and pressure from competitors, the Sahib group has established its name
in the market and is well reputed in this line of business.
FINANCIAL ANALYSIS OF CLIENT
Particulars Previous Year Previous YearPrevious Audited (2008) Current Year

Audited (2009) Next Year Projections (2010)
Actual (2006) Actual (2007)
1) Sales 476.65 492.80 5,374.11 5,643.00 5,925.00
2) PBDIT 91.29 93.01 467.58 498.00 552.00
3) Interest 1.72 1.77 113.39 104.96 150.00
4) Depreciation 41.89 33.20 59.92 55.00 45.00
5) Taxes 12.74 23.19 108.57 101.41 107.10
6) PAT34.94 34.86 185.70 236.63 249.90
7) Capital 351.26 387.71 984.08 1,220.71 1,470.61
8) Unsecured Loans 8.29 0.00 588.88 588.88 588.88
9) Loans from Other/Our Banks
a) Term Loans 2.26 1.71 0.00 0.00 0.00
b) OD/CC 0.00 0.00 0.00 425.00 425.00
10) Current Lia. 28.58 25.95 664.62 700.00 655.00
11) Non Current Liabilities 0.00 0.00 0.00 0.00 0.00
12) Fixed Assets 161.60 136.71 265.54 210.54 165.54
13) Current Assets 212.95 261.24 1,903.53 2,230.48 2,480.48
a) Stocks 40.87 62.21 581.22 700.00 775.00
b) Debtors 144.40 174.85 1,199.77 1,392.00 1,528.00
c) Cash & Bank Bal. In current a/cs 16.95 10.15 71.65 30.00 30.00
14) Non CA 13.59 15.72 68.52 68.52 68.52
15) Current Ratio 7.45 10.07 2.86 3.19 3.79
17) TOL/TNW (without USL) 0.10 0.07 1.27 1.06 0.85
(With USL) 0.08 0.07 0.42 0.39 0.32
18) Inventory Turnover 56 82 50 57 60
19) Debtors Turnover111 130 81 90 94
20) Creditors Turnover 36 32 44 22 18
21) NP margin7.33 7.07 3.46 4.19 4.22
22) EBIDTA margin 19.15 18.87 8.70 8.83 9.32
Current Year Performance:
The company has already achieved turnover of Rs.4501.77 lacs till Dec 08 and is
expected to achieve turnover of Rs. 5643.0 by FY09.
Financial Comments:
Turnover:
The turnover of the company consists of sale of fabric and is showing increasing trend in
all financial years. It was at Rs. 476.65 lacs in FY06, which increased to Rs. 492.80 lacs
in FY07 showing an increase of 3.4%. In FY08 the company has achieved turnover of Rs.
5374.11 lacs i.e. 990.5%. Further the same has been projected at Rs. 5643.0 lacs in FY09,
out of which the company has already achieved 80% of sales. i.e. Rs. 4501.77 lacs till
Dec.
Profitability:
The EBIDTA Margins of the company was at 19.2 in FY06-07, decreased to 18.9 in
FY07-08 due to increase in COGS and further EBIDTA margins have again decreased to
8.7% due to decrease in Sales and General expenses from 25.6% (FY07-08) to 11.9%
(FY08-09).
The same is expected to be at 8.8% in FY09-10.
The PAT margins of the company are following the same trend.
Leverage:
TNW comprises of:
Particulars FY06-07 FY07-08 FY08-09

Capital 351.26 387.71 984.08
Unsecured Loan 8.29 0.00 588.88
TNW 359.55 387.71 1,572.96
TOL of the company comprises of sundry creditors, working capital bank finance
TOL/TNW of the company is satisfactory in all years.
Current Ratio:
The current ratio (3.19) of the company is at comfortable level.

The company is maintaining stock turnover days of 50 days in FY08-09. The stock of the
co. includes cost of raw material, which are fabrics.
Debtor’s turnover days for FY07-08 were 130 days, which decreased to 81 days in FY08-
09.
The Creditor Turnover days are lying in between 30-45 days.
RISK APPRAISAL
Business Risk and Future Outlook
Risk lies in the following situations:

? The group is in this business for the last 40 years and the directors have rich
experience in this line.
? Sales have been on the increase and group is well placed to tap the growing
consumer market.
? Being in this line of business for so many years, the group has good reputation in
the market and proven track record.
We perceive low risk in acceding to the request of the company as the company has good
track record of cash flow generations.
Management Risk
Surjit Singh, the key person behind the success of the group has proven management
capability. He is chairman of two well-known schools in posh North Delhi - namely Mata
Jai Kaur Public School, Ashok Vihar and Jaspal Kaur Public School, Shalimar Bagh,
New Delhi.
Surjit Singh is fully supported by his two sons - Satnam Singh and Harjot Singh, who are
also directors of the company. Management set up of the group is quite strong.
Performance Risk
CONCLUSIONS
• The credit appraisal process carried out at ING is sound and bank has good
parameters to appraise the project.
• The credit department thoroughly analyses the credit requirement of the company
and the capacity to service the debt.
• The bank has conservative norms to appraise the project the bank at the max.
Allows a 20% hike in projections.
• The credit appraisal passes through various stages and evaluations before it is
appraised.
RECOMMENDATIONS
• Process should be made faster.

• All the documents required to appraise the project should be asked at the time of
application only rather than later by the bank
• The bank must bring more transparency in appraisal of the project there should be
explanation for a appraisal of the project that was sanctioned by higher authority.
• The bank must not rely on software or information provided by the client the bank
should dig in for other sources in order to draw a real picture for the company.
• At the time of projections due to lack of documents, the projections are done
Without any basis like depreciation in the audited years is not accumulated depreciation
MY TAKE AWAY- KEY LEARNING’S
? Through this project of mine I got exposure of working in professional

environment which in itself was a great experience. I also felt that there is vast difference
between academic theory and its practical applicability.
? I found that summer training project provides a lot of learning opportunities. I
gained a lot of knowledge about the practical aspect of fieldwork.
? I also got familiarized with the credit appraisal process for SMEs.
? My exposure to the outer world through my training had given me a chance to

relate my theoretical knowledge with its practical applicability.
? I have become more confident and I have also improved on my sense of

appreciation.
ANNEXURE & REFERENCES
LINKS
• www.worldbank.org.in
• www.ingvysyabank.com
• www.rbi.org.in
• www.mospi.nic.in
• www.moneycontrol.com
• www.indiainfoline.com
• www.bankinginfo.com
BOOKS
Financial Management- Theory & Practice by Prasana Chandra, Tata McGRAW HILL.
(7th Edition)
Marketing Management-by Philip Kotler, Pearson Education Ltd. (13th Edition)

Credit Appraisal Process at ING Vysya Bank

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Jaypee Business School

Objectives of the Corporate Internship

1. To understand the business and competitive environment of ING Vysya Bank.

ING Vysya is the joint venture between ING & Vysya

? Over 1,20,000 employees work daily to satisfy a broad customer base:

? Based on market capitalization, ING is one of the 20 largest financial institutions

? Another specialization is ING Direct, an Internet and direct marketing concept

? Furthermore, the company differentiates itself from other financial service

ING Vysya group in India

In India ING Vysya is into following areas of services:-

ING Vysya Bank

Bank has an asset base of 1313 billion euros.

? It has net profit of 9.24 billion euros.

? With total business turnover of over Rs.12000 crores.

? It has capital adequacy of 9.8%.

? Bank has an extensive network with almost 450 branches.

? And has a network of more than 5000 ATM’s.

? Is also a part of bankex an index launched by BSE.

ING Vysya Bank deals in following area of Banking

? With sum assured of almost of Rs 800 crore.

? And assets worth Rs 100 crore.

ING Vysya Mutual Fund

? It aims to provide practical and secure investment opportunity to retail investors.

? And Rs.2800 crores plus fund house.

BUSINESS ACTIVITIES CARRIED OUT BY ING VYSYA

The various products offered by ING Vysya bank are

1) ACCOUNTS AND DEPOSITS

• ORANGE CURRENT ACCOUNT: In today's fast-paced world, your business

• ADVANTAGE CURRENT ACCOUNT: In today's fast-paced world, your

• GENERAL CURRENT ACCOUNTS: With ING Vysya general current account

• COMFORT CURRENT ACCOUNT: ING's Comfort Current Account lets you

• ORANGE SAVING ACCOUNT

The various term deposits are

• RUPEE SAVING ACCOUNT

SMALL AND MEDIUM ENETRPRISES

1. BUSINESS LOANS – MPOWER BUSINESS LOAN:

3) BUSINESS LOANS (SMALL SCALE INDUSTRIES)- CGTSI:

Minimum Loan Amount: No Minimum Amount

Maximum Loan Amount: Rs 25 lacs

4) MPOWER BUSINESS ACCOUNT:

A well-integrated approach to relationship management and innovative product

1) CASH MANAGEMANT SERVICES

2) CORPORATE AND INVESTMENT BANKING:

C&IB Group is organized on a regional basis with relationship managers covering:

• Western Region and Eastern Region out of Mumbai;

3) BANKS AND FINANCIAL INSTITUTION GROUPS:

The "EC" manages relationships with business units engaged in Manufacturing,

The offering in ING financial are:

1) MARKET MAKING AND TRADING: The Market Making unit provides

2) ASSET LIABILITY MANAGEMENT: The ALM unit of Financial Markets

3) FINANCIAL MARKET SALES: Financial Markets Sales team offers solutions

The sales team is supported at each location by information systems providing

Appropriate market timing and efficient execution is a key to product delivery in

AGRICULTURE AND RURAL BANKING

• KISSAN credit card

ING Vysya Bank follows a 3-tier structue

Structure of a Bank Branch

COMPERATIVE ANALYSIS OF ING VYSYA BANK’S SAVING ACCOUNT WITH

1) ING VYSYA V/S YES BANK

2) ING VYSYA V/S ICICI BANK

3) ING VYSYA V/S HDFC BANK

COMPERATIVE ANALYSIS OF ING VYSYA BANK’S CURRENT ACCOUNT