Rutger Koopmans

General Manager
ING Wholesale Banking Netherlands

9 November 2005, Brussels

Key message
• India is ‘hot’, but already well known to ING

• “India” hype may lead to losing sight of key issues

• The long term view could become ‘a fata morgana’:

‘the long and winding road’ (a steep learning curve)

• Embrace the cultural differences with knowledge

• Keep pace & manage expectations: things to do!!

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ING’s perspective: ING in India
• India is a rapidly growing economy with one of the fastest growing financial services
industries in the world

• India is the second fastest growing insurance market in Asia, second only to China

• ING has been in India since 1990 and is the only global player in banking, asset
management & insurance with non-Indian management control

• ING Vysya Bank has the largest banking network amongst international players in India

• ING Vysya Life Insurance is one of the fastest growing private players in the Indian
insurance market

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 ING Group in India – Key Milestones
Vysya Bank renamed
as ING Vysya Bank

ING Vysya Bank

acquired 26% stake in
Barings Private ING Investment
ING Group Equity established in Management (India)
acquired Barings India Private Limited
ING set up joint venture
with (this is the Asset
globally thereby ING Investment Trust Vysya Bank Management
Barings started acquiring the (Asset Management and GMR group Company which
Investment Banking business of Barings business) incorporated for the foray into manages the ING
operations in India in India as well in India Insurance Sector in India Vysya Mutual Fund)

1990 1991 1994 1995 1996 1997 1998 2000 2001 2002 2003

ING Bank N.V. ING Bank N.V. Bank Brussels ING Group ING Vysya Life ING became
set up a representative Lambert sets up Insurance the single
representative office acquired a representative Company largest
office in India converted into strategic stake office for begins shareholder in
full-service in Vysya Bank Insurance in operations Vysya Bank
branch India MoU by increasing
signed with its stake to
Vysya Bank 44%

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 ING Vysya Bank Overview
Key statistics IVB Position (Private + Foreign Banks)

Branches: 454
Employees: 4,871 North & East Region
Position Bank Share
ATMs: 79 (access to more than # of Branches- 33
9,000 shared ATMs) 1 ICICI Bank 4.3%
2 HDFC Bank 1.9%
3 UTI Bank 1.3%
4 Citibank 1.3%
West Region
5 Stanchart 1.3%
# of Branches- 30 6 J&K Bank 1.2%
7 HSBC 1.0%
8 Federal Bank 0.9%
9 IndusInd Bank 0.7%
10 ING Vysya 0.7%
South (ex AP)
11 IDBI Bank 0.6%
# of Branches- 193 12 Karnataka Bank 0.6%
AP Region
IVB Position (Private 17 ABN Amro 0.4%
# of Branches-196
Regional Offices: 11 21 Bank of Punjab 0.3%

Universal banking franchise 33 BNP Paribas 0.1%

Market share based on size of deposits as on 31/3/04

Wholesale Bank
• Corporate & Investment
Banking
• Emerging Corporates
• Banks & Financial Institutions
• Financial Markets
Retail Bank
• Branch Banking
• Small & Medium Enterprises
• Agri & Social Banking
• Private Banking
• Distribution & Marketing

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ING Vysya Bank Capabilities

• Leverage unique position as the first “Indian International” bank

• Combines strengths of the erstwhile Vysya Bank and ING Group to create an
integrated platform delivering a complete range of banking products to Indian and
Global clients

• •Strong Rupee Balance Sheet • •International Investment Banking

Strong Rupee Balance Sheet International Investment Banking
Capabilities
• •Broad based India presence Capabilities
Broad based India presence • •Strong Corporate Banking Franchise
• •Wide commercial banking suite Strong Corporate Banking Franchise
Wide commercial banking suite • •Global Network
Global Network

Integrated approach allows ING Vysya Bank to follow a client centric approach and offer a
range of products and services leveraging local and international strengths

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 India: Strong Macroeconomics Fundamentals
GDP Growth (%age) Exports & Imports (USD bn)

17,000 120 109

16,000 97
+6.5% 100
80 78
15,000 80 70
+6.9%
(INR bn)

(USD bn)
65 63
58
14,000 60 53
+8.2% 45
13,000 +4.0% 40
12,000 20
11,000 -
2001/02 2002/03 2003/04 2004/05 2005/06F 2001/02 2002/03 2003/04 2004/05F 2005/06F
Real GDP Exports Imports

FX Reserves (USD bn) Index of Industrial Production

160 150
135 220 204.55
140 188.70
200
167.00 176.60
120 103 180 +8.3%
100 160
USD bn

71 140
80
51
120 +6.9%
100
60
80 +5.7%
40 60
20 40
0 20
0
2001/02 2002/03 2003/04 2004/05E 2005/06E
2001/02 2002/03 2003/04 2004/05
FX Reserves

Note: Index of Industrial Production, Base 1993-94 = 100

Source: Economic Survey, Reserve Bank of India, Forecasts - Brokerage Report

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India: the challenges of a growing economy
• High fiscal deficit

• Inflationary pressure

• Increasing government debt burden

• A strong democracy, slow decision making process

• Weak infrastructure (roads, airports, water management)

• Maintaining pace of reform (upgrading public systems)

• Bureaucracy, corruption, complex/antiquated regulations

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“India” beyond the opportunities
• Keep a close eye on these factors

• Do not get hung up in long-term scenario

predictions

• Focus on how to realize the “India” challenge

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Embrace the differences
• India has a unique cultural and religious heritage

• It takes time to understand the history, the social

demography and the cultural values

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Adopt and Adapt to the changes
• Indian businessmen in Europe have to adapt to a
different European outlook on India

• Business relations have changed and will change, a

new balance will occur

• Indian businessmen are part of ‘the Indian hype’

but: don’t overlook Europe’s potential

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Keep pace & Manage expectations
• India is managing growth in a careful and diligent way;
manage your expectations in the same way

• Looking ahead, the potential for economic and political

stability in India is enormous, but we must be appreciate
and respect that the road ahead inhibits a steep learning
curve

• The outcome is clear, but there is a way to go!

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