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PART- ASL NO CONTENTS PAGE NO

EXECUTIVE SUMMARY 2

INDUSTRY PROFILE 3-8

COMPANY PROFILE

a) Background and inception of the company 9-12b) Nature of the business carried. 13c) Vision, Mission, and Quality policy. 14d) Product/service profile 15-16e) Area of operation-Global 16-17f) Ownership patterng) Competitors informationh) Infrastructure facilitiesi) Achievements / awards if anyj) Future growth and prospectus

17-18181919-2021

Mc Kinsey’s 7S Model 22-26

SWOT Analysis 27-28

Learning Experience 29

PART — B

a) General Introduction

● Statement of the problem

● Objectives of the study

● Scope of the Study

● Methodology● Limitation of the study

3030313233

Data Analysis 34-49

Findings, Conclusions, suggestions and Recommendations 50-52

Annexure 53-54

Bibliography and Wibliography 55

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CERTIFICATE

This is to certify that the Summer Training Project Report

entitled…………………………………………………………………… being submitted by

Mr. / Ms. ………….……………………………….

in partial fulfillment of the requirement for the degree of the Master of Business Administration

from U. P. Technical University, Lucknow, is an independent original research work done by

him/her under my supervision and guidance.

Place: …………………………….. Director

Date: …………………………….. GNIT-MBA Institut

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DELARATIONI hereby to declare that the work for the Dissertation report entitled “Comparison of ING

VYSYA Bank with HDFC and ICICI Bank ” am completely done by me, based on my

work conducted in ING VYYSA BANK,

I also declare that this project work has not been submitted to any other university or

Institution for the award of any degree, diploma, fellowship or other similar title.

Admittedly, I have received suggestions and guidance from my guides for the partial

fulfillment of M.B.A.

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ACKNOWLEDGEMENT

If words are considered to be signs of gratitude then let these words Convey the very same.

My sincere gratitude to Mr. Amit Gupta junior manager, ING VYSYA BANK and giving

necessary directions on doing this project to the best of my abilities.

I am highly indebted to Mr. Amit Mahendru, Branch Manager, who provided me with the

necessary information and also for the support extended out to me in the completion of this

report and his valuable suggestion and comments on bringing out this report in the best way

possible.

So in the same sequence at very first, I would like to acknowledge my parents because of

whom I got the existence in the world for the inception and the conception of this project.

Later on I would like to confer the flower of acknowledgement to Ms. BARNALI

SARKAR and other faculty members who taught me that how to do project through

appropriate tools and techniques. Because ING VYSYA BANK has given me a chance to

do my integrated project report., I would like to give thanks Dr. SHAKTI PRAKASH

(Head of Department)

GNIT-MBA INSTITUTE.

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CHAPTER -1

INTRODUCTION

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INTRODUCTION

Banking system of a nation is the shadow of nation’s economy. A healthy and profitable banking

system is just like the backbone of nation’s economy. It is necessary for a nation to achieve

growth and remain stable in this global world and global economy. The Indian banking system,

with one of the largest banking networks in the world, has witnessed a series of reforms over the

past few years like the deregulation of interest rates, dilution of the government stake in public

sector banks (PSBs) and the increased participation of private sector banks.

BANKING

A bank   is a financial institution whose primary activity is to act as a payment agent for

customers and to borrow and lend money. Banks are important players in financial markets and

offer financial services such as investment funds. In some countries such as GERMANY, banks

are the primary owners of industrial corporations. While in other countries such as the UNITED

STATES banks are prohibited from owning non-financial companies.

HISTORY OF BANKING

The first banks The Bankre probably the religious temples of the ancient world. It was probably

established sometime during the third millennium B.C. Banks probably predated the invention of

money. There are extant records of loans from the 18th century BC in Babylon that The Bankre

made by temple priests or monks to merchants.

1.1 History of INDIAN BANKING SYSTEM

Banking in India originated in the last decades of the 18th century. The first banks were The

General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now

defunct The oldest bank in existence in India is the State Bank of India, a government-owned

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bank that traces its origins back to June 1806 and that is the largest commercial bank in the

country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint

Stock bank in India.

Until the early 1990s, the Indian financial system was strictly controlled. Interest rates were

administered, formal and informal parameters governed asset allocation, and strict controls

limited entry into and expansion within the financial sector. The Government’s economic reform program, which began in 1991, encompassed the financial sector. The first phase of the reform

process began with the implementation of the recommendations of the Committee on the

Financial System, the Narasimham Committee I. The second phase of the reform process began

in 1999.

Reserve Bank of India

RBI, established in 1935, is the central regulatory and supervisory authority for the Indian financial system. RBI manages India’s money supply and foreign exchange and also serves as a bank for the Government and for India’s commercial banks.

RBI issues guidelines on various areas including exposure standards, income recognition, asset classification, provisioning for non-performing and restructured assets, investment valuation and capital adequacy standards for commercial banks, long-term lending institutions and non-bank finance companies. RBI requires these institutions to furnish information relating to their businesses to RBI on a regular basis.

Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took

over these responsibilities from the then Imperial Bank of India, relegating it to commercial

banking functions. After India's independence in 1947,

the Reserve Bank was nationalized and given broader powers. In 1969 the government

nationalized the 14 largest commercial banks; the government nationalized the six next largest in

1980.

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it

became an institution owned by the Government of India.

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In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India

(RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could

be opened without a license from the RBI, and no two banks could have common directors

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1.2 Liberalization in INDIAN BANKING SYSTEM

In the early 1990s, the then government embarked on a policy of liberalization, licensing a small

number of private banks. These came to be known as New Generation tech-savvy banks, and

included Global Trust Bank (the first of such new generation banks to be set up), which later

amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank

and HDFC Bank. This

move, along with the rapid growth in the economy of India, revitalized the banking sector in

India, which has seen rapid growth with strong contribution from all the three sectors of banks,

namely, government banks, private banks and foreign banks

The next stage for the Indian banking has been setup with the proposed relaxation in the norms

for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights

which could exceed the present cap of 10%, at present it has gone up to 49% with some

restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used

to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4%) of functioning. The new wave

ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this

led to the retail boom in India. People not just demanded more from their banks but also received

more.

Currently (2009), banking in India is generally fairly mature in terms of supply, product range

and reach-even though reach in rural India still remains a challenge for the private sector and

foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to

have clean, strong and transparent balance sheets relative to other banks in comparable

economies in its region. The Reserve Bank of India is an autonomous body, with minimal

pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage

volatility but without any fixed exchange rate-and this has mostly been true.

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With the growth in the Indian economy expected to be strong for quite some time-especially in

its services sector-the demand for banking services, especially retail

banking, mortgages and investment services are expected to be strong. One may also expect

M&As, takeovers, and asset sales.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is

with the Government of India holding a stake), 31 private banks (these do not have government

stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They

have a combined network of over 53,000 branches and 17,000 ATMs. The public sector banks

hold over 75 percent of total assets of the banking industry, with the private and foreign banks

holding 18.2% and 6.5% respectively

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1.3 The Origin of ING Group

ING group originated in 1990 from the merger between “Nationale Nederlanden” the largest

Dutch Insurance Company and “NMB Post Bank” Group. Combining roots and ambitions, the

newly formed company called Internationale Nederlanden Group ﾝ . Market circles soon

abbreviated the name to I-N-G. The company followed suit by changing the statutory name to

ING Group. ING is a global financial services company providing banking, investments, life

insurance and retirement services and operates in more than 50 countries.

PROFILE

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

and retirement services. ING serve more than 85 million private, corporate and institutional

customers in Europe, North and Latin America, Asia and Australia. They draw on their

experience and expertise, their commitment to

excellent service and their global scale to meet the needs of a broad customer base, comprising

individuals, families, small businesses, large corporations, institutions and governments

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STRATEGY

ING’s overall mission is to help customers manage their financial future. Capitalizing on

changing customer preferences and building on our solid business capabilities, ING’s strategic

focus is on banking, investments, life insurance and retirement services. They provide retail

customers with the products they need during their lives to grow savings, manage investments

and prepare for retirement with confidence. With wide range of products, innovative distribution

models and strong footprints in both mature and developing markets, ING has the long-run

economic, technological and demographic trends on their side. ING aligns its business strategy

around a universal customer ideal: saving and investing for the future should be easier. While

steering the business through turbulent times, ING will execute efforts across all its business

lines to strengthen customer confidence and meet their needs, preserve a strong capital position,

further mitigate risks and bring its costs in line with revenue expectations.

COPERATE RESPOSIBILITY

ING wants to pursue profit on the basis of sound business ethics and respect for its stakeholders.

Corporate responsibility is therefore a fundamental part of ING’s strategy: ethical, social and

environmental factors play an integral role in business decisions

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1.4 FINANCIAL RESULTS

FY 2008 FY2007 FY2006 FY2005 FY2004

Income (in EUR milion)

Insurance operations 54,851 62,208 59,642 57,403 55,614

Banking operations 11,731 14,602 14,195 13,848 12,678

Total Income1 66,291 76,587 73,621 71,120 68,171

Operating Expenses

Insurance operations 5,422 5,515 5,275 5,195 4,746

Banking operations 10,303 9,967 9,087 8,844 8,795

Total operating expenses 15,725 15,481 14,362 14,039 13,541

Addition to loan loss provision Banking 1,280 125 103 88 465operations

Insurance result before tax -1,635 6,533 4,935 3,978 4,322

Banking result before tax 148 4,510 5,005 4,916 3,418

Total result before tax -1,487 11,043 9,940 8,894 7,740

Taxation -721 1,534 1,907 1,379 1,709

Minority interests -38 267 341 305 276

Net result -729 9,241 7,692 7,210 5,755

Figures per ordinary share (EUR)

Net result -0.36 4.32 3.57 3.32 2.71

Earnings 2) -0.56 4.32 3.57 3.32 2.71

Dividend 0.74 1.48 1.32 1.18 1.07

Shareholders’ equity 8.55 17.73 17.78 16.96 12.95

Balance Sheet (in EUR billion)

Total assets 1,332 1.312 1,226 1,159 964

Total equity 29 40 41 38 28

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Shareholders’ equity 17 37 38 37 28

Capital Ratios (%)

ING Group debt/equity ratio 13.8% 9.5% 9.0% 9.4% 10.2%

Insurance capital coverage ratio 256% 244% 274% 255% 204%

Insurance debt/equity ratio 8.5% 13.6% 14.2% 13.4% 14.3%

Bank Tier-1 ratio 9.32% 7.39% 7.63% 7.32% 6.92%

Market capitalisation(in EUR billion) 15 60 74 65 49

Shares (in millions):

Outstanding 2,063 2,226 2,205 2,205 2,205

Preference shares outstanding - 16 63 87 87

Key Performance Indicators

- Net return on equity (ROE) -2.1% 24.2% 23.5% 26.6% 25.4%

- Net result growth -108% 20% 7% 25% n.a.

Insurance

- Value of new life business 1,023 1,113 807 805 632

- Internal rate of return 13.9% 14.3% 13.3% 13.2% 12.1%

- Combined ratio (non-life) 97% 97% 91% 95% 94%

Banking

- Cost/income ratio 87.8% 68.3% 64.0% 63.9% 69.4%

- RAROC after tax 1.2% 19.9% 19.7% 22.6% 14.5%

Assets under management (in EUR 551 643 600 547 492

billion)

Staff (FTEs end of period) 124,661 124,634 119,801 116,614 112,195

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The ING Vysya BANK Ltd.

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank

Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of

Dutch origin, during Oct 2002.

The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of

visionaries came together to form a bank that would extend a helping hand to those who weren't

privileged enough to enjoy banking services.

ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of

ING Investment Management is situated at Mumbai. The synergies arising out of the three

distinct but complimentary businesses are bound to be an asset to the group in the changing

market dynamics of the future. The first such signs are already visible on the horizon with

combined products being successfully launched by the different entities of the group in

conjunction with each other

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.

In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made

rapid strides to reach the coveted position of being the number one private sector bank. In 1990,

the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then

Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank stupendous.

The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005.

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The long journey of seventy-five years has had several milestone.

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The ING Vysya Bank Raichur

ING Vysya Bank Raichur branch was established somewhere in September 2008 and it stands at

third position in the region for its performance. It is the newest Private Sector Bank in the city

and yet has achieved a remarkable growth rate in past 7 months. It has got its Journal Ledger of

the size of Rs.120, 000,000 (12 crore rupees) and has got customer base of 1800 well satisfied

happy customers. Every month around 70 to 90 saving accounts and 20 to 30 current account are

opened which shows the consistency of the Bank and currently bank holds around 1500 saving

bank accounts

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CHAPTER-2

REVIEW RELATED LITRATURE

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LITRATURE REVIEW

Types of saving accounts offered by ING Vysya Bank

A) ORANGE SAVINGS ACCOUNT:

This account is the basic product of ING Vysya Bank. In this account minimum cash balance

required to open an account & the Quarterly Average Balance requirement is Rs5000. Some of

the major features and benefits of this account are:

FREE

· Free issue of International Debit Card.

· Unlimited ATM transactions at over 25,000 (Cirrus/Cashnet) ATM’s in India, where

QAB is maintained.

· Shopping convenience at over 2 Lakh merchant locations, with the ING Vysya

International Debit card.

· Unlimited ATM transactions at over 196 ING Vysya ATM’s.

· 2 Demand Drafts with a value not exceeding Rs.50,000 per annum, where QAB is

maintained.

· Unlimited usage of payable at par (PAP) Cheques.

· Transfer of funds across all branches.

· National Electronic Funds Transfer (NEFT) through the internet banking channel.

· Electronic Bill Payment service.

· Smartserv - Personal Assistance Service.

Statement of Account through E-mail.

· Mi-b@nk - Internet banking facility.

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· RTGS (Real Time Gross Settlement) transactions at all branches.

· AAA Cash deposit (Customers) – Free up to 2 transactions per month and a value limit of

Rs. 50,000/-

BENEFITS

· Free unlimited access to 25,000 + other bank ATM’s- enhanced

accessibility.

· Free multi branch, Multi-city banking convenience.

· Payable at par Cheques.

· Smartserv- Personal Concierge Services.

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B) ING FORMULA SAVINGS ACCOUNT:

This is the product of ING Vysya Bank which is targeted towards the upper middle

class segment of the society. Basically the targeted segment is the age group between 18-40 yrs.

This product has its significance particularly in Metropolitan/A grade cities. This product is also

useful for people who travel frequently particularly to Metropolitan/A grade cities.

Minimum cash balance required to open this account and Quarterly Average Balance

requirement is Rs. 25000/-

Some of the major features and benefits of this account are :

· Maximum withdrawal limit from ING’s ATM or any other bank’s ATM is Rs. 50,000.

· Maximum shopping limit through ING’s ATM/Debit card is Rs. 75,000.

· Free Payable at Par cheques.

· Exclusive F1 themed, Internet Banking services.

· Formula 1 International Debit card.

· Free sms alerts on transactions above Rs. 1500.

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SPECIAL BENEFITS CARD

FUEL GAUGE

· Fill fuel across any petrol pump in India and get the 2.5% surcharge waived.

SPEED LAP

· Shop using your ING Formula savings account and get

Formula One merchandise.

RACE DAY

Whenever there is a Formula 1 race anywhere in the world, there is a race

for u as well. Shop using your ING Formula debit card on the day of the race and top 25

spenders for the race day wins vouchers from ING.

· 3 winners – Gift vouchers worth Rs. 5000/-

· 10 runner ups- Gift vouchers worth Rs. 2000/-

· 12 second runner ups- Gift vouchers worth Rs. 1000/-

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C) PLATINA ACCOUNTS

This product (account) of ING Vysya Bank is a special product for special class of customers.

This can also be termed as Preferred Platina Banking. This product is designed to reduce the

efforts put in handling banking and financial needs. This product has special features which are

mainly meant for business class people who have to make large payments and have regular

transactions. The Platina account holder becomes the preferred customer of the bank.

The average quarterly balance (QAB) is Rs. 100,000

Features:

Dedicated Relationship Manager

Our dedicated relationship managers can help you manage your money; while you pursue

your passion, be it business or pleasure.

Wealth Management Service

Our preferred banking services offer you customized financial strategies on how to invest

and where to invest based on simple

financial risk profiling.

ING Platina Debit Card

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Use your ING Platina Gold Debit Card and withdraw cash up to Rs1 lac per day from any ATM,

Avail a 1% cash back on shopping with your Debit Card.

· Account Representative Services

Now when you are out building a business empire or taking that well deserved vacation, just

nominate someone else to do your routine banking enquires.

· Preferential rates on ING products

Get more out of the Platina relationship. Avail preferential rates on Demat, Bank Lockers,

Personal and Home loans.

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Types of saving accounts offered by other private banks

ICICI BANK

A) ICICI Savings Bank Account:

ICICI Bank is also offering the saving accounts as their products.

· The ICICI Bank International debit card is a debit-cum-ATM card provides with the

convenience of acceptance at merchant establishments and cash withdrawals at ATM.

· Money Multiplier Facility

· Internet Banking is offered free of cost.

· Anywhere Banking facility entitles the account holder to withdraw or deposit cash upto a

limit of Rs.50,000 across all ICICI Bank branches.

· An average quarterly balance of Rs.10,000 only in metro and urban locations.

· Nomination facility is available.

· Interest is payable half-yearly.

Third party withdrawal limit is only Rs 15,000 and free demand draft making facility for a

month is only up to Rs 10,000. Free withdrawal limit from ATM card is only up to Rs 25,000 in

all accounts.

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B) GOLD PRIVILAGE ACCOUNTS

The Gold Privilege Account brings the customer exclusive benefits, especially created for

valuable customers. The minimum quarterly average balance (QAB) requirement for Gold

Privilege account is Rs.50,000. Non-maintenance of the required QAB in any quarter attracts a

charge as per the following guidelines:

If QAB is between Rs.50,000 and Rs.25,000, charge of Rs.250 will be levied If QAB is

between Rs.25,000 and Rs.10,000, charge of Rs.500 will be levied If QAB falls below

Rs.10,000, charge of Rs.750 will be levied

Your Gold Privilege account entitles you to select privileges and offers:

BENIFITS

· Jump Queue facility in ICICI Bank branches.

· Free usage of payable-at-par chequebook.

· International VISA Gold debit card with higher daily withdrawal and spend limit.

· Waiver of annual fee for Debit card.

· Free and Unlimited access (cash withdrawals and balance enquiry) to any Bank's ATM in

the country using ICICI Bank International Gold Debit card.

· Waiver of DD/PO charges for up to Rs.100,000 per day.

· Waiver of Anywhere Banking charges across all ICICI Bank branches.

· Priority Processing through ICICI Bank Phone Banking.

· Preferential rates for Gold Coins.

· Better rates for Foreign Exchange Service.

· Discounts on Safe deposit locker facility.

· Special asset deals from time to time.

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C) TITANIUM PRIVILAGED ACCOUNT

This product from ICICI is mainly to serve privileged customer (upper class)

In constant endeavor to fulfill all the banking needs and enhance exclusivity ICICI Bank

launched Titanium Privilege Account - tailored to take care of customer’s banking and

investment requirements and status. This account offers a dedicated Branch Relationship

Manager supported with a Phone Banking Relationship Manager.

Customer can realize the benefits of a Titanium Privilege Account on the basis of his total

relationship value (TRV) with the bank. Customer need to maintain a TRV of between Rs. 5 lac

and Rs. 10 lac and a quarterly average balance (QAB) of Rs.75,000. In addition to this, there is

waiver of QAB charges, subject to FD of min. 3.75 Lac.

BENIFITS

· Branch Relationship Manager supported with Phone Banking Relationship Manager.

· Priority processing at all ICICI bank branches and through customer care.

· A higher daily withdrawal and spend limit on a Titanium debit card.

· Free International Titanium Debit Card.

Unlimited free access to any bank’s ATM throughout the country.

Free usage of multi-city cheque book.

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· Free physical monthly account statement.

· Anywhere banking.

· Complete waiver on DD/PO charges.

· Preferential rate on purchase of ICICI Bank Pure Gold.

· Preferential rates on purchase of foreign exchange with a complete waiver on

commission charges.

· Discounted rates on safety locker charges.

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HDFC BANK

A)REGULAR SAVING ACCOUNT

An easy-to-operate savings account that allows customer to issue cheques, draw Demand Drafts

and withdraw cash. Customer can check balances from the comfort of his home or office through

NetBanking, PhoneBanking and MobileBanking.

Withdrawal of cash from any of the 3275 ATM centers spread across the country.

FEATURES & BENEFITS

· Facilities like NetBanking and MobileBanking.

· Customer can check the account balance, pay utility bills or stop cheque payment,

through SMS.

· Personalized cheques with customer’s name printed on each cheque leaf for enhanced

security.

· Advantage of BillPay, an instant solution to all frequent utility bill payments. Instructions

for payment over the phone or through the Internet.

· Customers can avail the facilities like Safe Deposit Locker, Sweep-In and Super Saver

facility on their account.

· Free cash withdrawals on any other Bank's ATM

· Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/-

per month.

· Free InstaAlerts for all account holders for lifetime of the account.

· Free Passbook facility available at home branch for account

holders (individuals).

· Free Email Statement facility

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B)SAVING MAX ACCOUNT

Welcome to a world of convenience. HDFC has presented SavingsMax account, loaded with

maximum benefits to make banking experience a pleasure. By maintaining an average quarterly

balance of just Rs. 25,000/- customer can get a host of premium services from HDFC Bank.

FEATURES & BENIFITS

· Free unlimited transactions: Cash withdrawal and balance enquiry, at all HDFC Bank

ATMs & on any other Bank's ATM using your HDFC Bank Debit Card.

· Free Gold Debit Card for primary account holder for lifetime of the account. Gold Debit

Card for other account holders at Rs 250/- p.a.

· Free Woman's Advantage/International Debit Card for all account holders for lifetime of

the account.

· Free Payable-at-Par (PAP) chequebook, without any usage charges up to a limit of 1 lac

per month.*

· Free Demand Drafts on HDFC Bank locations, upto a limit of 50,000/- per day at home

branch.

· Self/Third Party Cash Deposit/Withdrawal at non-home branches, upto Rs 50,000/- per

day free. Above Rs 50,000 a charge of Rs 2.90 per thousand on the full amount would be

applicable.

· Optional sweep out facility to transfer extra savings to a Fixed Deposit, at the threshold

of Rs.50,000/-.In the event of the balance in SavingsMax account exceeding Rs 50,000/-,

the amount in excess of Rs 50,000/- will be swept out in to a Fixed Deposit with a

minimum value of Rs 25000/- for a 1year 1day period.

Free BillPay & InstaAlerts for all account holders for lifetime of the account.

· Free Monthly Statement of Account.

· 50% off on the Locker rental for the 1st year only.

· Folio maintenance charges on Demat account free for first year.

· Free National Electronic Funds Transfer facility, NetBanking, MobileBanking.

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· Free Passbook facility available at home branch for account holders (individuals).

· Free Email Statement facility

C)PREFERRED BANKING ACCOUNTS

This account has been offered by HDFC for its preferred customers, so as to give special benefits

to them. The minimum quarterly available balance (QAB) that has to be maintained in this

account is Rs. 2,00,000

FEATURES & BENIFITS

· Dedicated Relationship Manager

· Customized Investment Solutions

· Investment Options

· e-Broking

· Expedited Tax Payments

· Relationship Pricing

· Business Solutions

· On-demand exclusive privileges

Annual Service Charge Waiver

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CLASSIFICATION/ CATEGORIZATION

So, for convenience of the project and comparison the different accounts can be classified into three categories:

Category A Category B Category C

1. PLATINA ACCOUNT FORMULA SAVING ORANGE SAVING

(ING) ACCOUNT (ING) ACCOUNT (ING)

2. TITANIUM PRIVILAGED GOLD PRIVILAGED SAVINGACCOUNT

ACCOUNT (ICICI) ACCOUNT (ICICI) (ICICI)

3. PREFERRED BANKING SAVING MAX REGULARSAVING

ACCOUNT/PLATINUM ACCOUNT (HDFC) ACCOUNT(HDFC) (HDFC)

Service quality

ING Vysya Bank provides the top notch quality to its customers. They have so many

special features that no other banks provide till date, like:

1. Special cabin/room for its customers to wait and relax when there is a rush or when

customer is asked to wait for some time.

2. Fastest RTGS and NEFT services, which takes place within minutes.

3. A well behaving staff and special highly sensitive customer care department. This is head

by a well efficient customer care

manager.

4. Account verification with in promised 5 days.

5. Working hours from 10 a.m. to 6 p.m. (7 in p.m. if any customer is in need)

6. Doing things in the right way at right time.

7. It is the only Bank which provides the facility of withdrawal of 1 lakh rupees from any

ATM at one go.

Profit & Loss

Key Ratios

Performance Trends

Performance Trends

Other Income

Advances and Deposits Trend

Asset Quality

ING Vysya FOUNDATION (ING – CSR)

World over ING has strengthened its name as a good corporate citizen. The ING Chances for

Children initiative (CFC) a global program in partnership with UNICEF is to educate 50,000

underprivileged children in three countries, Ethiopia, India and Brazil by 2008. In India the focus

is primarily in the districts of Dharampuri and Krishnagiri in Tamil Nadu. Through the national

Child labor

Elimination (NCLP) bridge schools, ING provides much needed support to UNICEF, to fund,

monitor, and provide children with quality primary education

The Indian arm of the Chances for Children programs is run by the support of ING business units

in India (ING, ING Life Insurance and ING Investment Management) through the ING Vysya

Foundation.

The Foundation was set up almost 3 year ago and was actively involved in the post Tsunami

rehabilitation of the victims. ING Group set up a dedicated Tsunami Support account. In India,

the Foundation partnered with five NGO providing much needed financial support, from

rebuilding of schools to providing fishing boats, giving much needed hope to destroyed lives.

The Indian chapter of CFC involves the partnership of the Foundation with 7 NGO working in

primary education. Not only does the Foundation provide much needed financial support to these

organizations but also runs strong voluntary programs giving the employees a chance to meet the

children, work with them and take ownership and responsibility for the vision of its partners. The

Foundation creates systems that ensure CSR activities within the organization. Various programs

are initiated with the employees, whether it is taking 100

children for a day out to the planetarium or watching a film with them.

It collectively influences the culture of

the organization; and also provides the employees with an opportunity to contribute to the vision

of the organizations CSR.

Recently ING Vysya Foundation launched its initiative “Run Ricky Run”. In this

initiative, for every run Ricky makes the Foundation will sponsor one child to go to school

through its association with its NGO partner in Bangalore, SUKRUPA.

Addressing health care, poverty or human rights issues, there is no better way than through the

corridors of education. The main focus of the Foundation in India is to support not for profit

organizations working in the area of education.

CHAPTER - 3

DESIGN OF

STUDY

OBJECTIVE OF THE STUDY:

PRIMARY OBJECTIVE:

· To thoroughly study the products & services of ING Vysya Bank.

· To compare the banking products and services offered by ING Vysya Bank and other private banks (ICICI & HDFC)

· To study the customer’s expectations, behavior, responses & preferences for various saving accounts of ING Vysya Bank.

· To study the marketing strategies adopted by ING Vysya Bank to maintain & increase

its market share & to retain its customers.

SECONDARY OBJECTIVE:

· To study banking operations.

· To get the knowledge about marketing strategies of bank.

DURATION OF THE STUDY

Duration of the study is 6 weeks.

RESEARCH METHODOLGY

All the conclusions are based on the survey done in the working within the time limit. I tried to

select the sample representative of the whole group during my

training. I have collected data from people linked with ING VYSYA BANK and OTHER BANK

4.1 RESEARCH PLAN:

Preliminary Investigation: In which data on the situation surrounding the problems shall be gathered to arrive at

· The correct definition of the problem. · An understanding of its environment.

.Exploratory Study: To determine the approximate area where the problem lies.

RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.

COLLECTION OF DATA:

1: Secondary Data:It was collected from internal sources. The secondary data was

collected on the basis of organizational file, official records, news papers ,magazines, management books, preserved information in the company’s database and website of the company.

Primary data:

All the people from different profession were personally visited and interviewed. They were

the main source of Primary data. The method of collection of primary data was direct

personal interview through a structured questionnaire.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample

from the universe to know about its characteristics.

· Sampling Units: Different Account Holder and Service receiver from the bank

· Sample Technique: Random Sampling.

· Research Instrument: Structured Questionnaire.

· Contact Method: Personal Interview.

SAMPLE SIZE:

My sample size for this project was 100 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 100 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected

SCOPE OF STUDY

The scope of any study can be defined in terms of the area and the sample size which will be reviewed for

satisfying the objective of the subject matter. The first part of the report can be made on the basis of the

secondary data collected about the different saving bank accounts of private sector banks present in

Muzaffarnagar via internet, magazines and journals.

The scope of the study is in Muzaffarnagar, and around 100 people are targeted for the survey which is done

through questionnaire.

As the scope of study is limited to Muzaffarnagar and to 100 people only, thus picture presented in the testimony

may not be the complete picture.

CHAPTER- 4

DATA

INTERPRETAN AND ANALYSIS

Comparative analysis of saving accounts:

a. Basic Saving Accounts (Category C)

PARTICULARS HDFC ICICI ING Vysya

ACCOUNT NAME Saving Savings Orange Savings

Regular Account Account

Account

AVERAGE QUATERLY

BALANCE Rs10,000 Rs 10,000 Rs. 5,000

AQB MAINTAINANCE Rs 750.00 per Rs 750.00 Rs 750.00 per

CHARGESquarter Only. per quarter quarter Only.

Only.

SWEEP OUT FACILITY Available N.A Available

3 per month

FREE TRANSACTIONS from N.A Unlimited fromSBI/Andhra any bank’s ATM

Bank ATM

THIRD PARTY CASH N.A Rs.15,000 Rs.25,000 per

WITHDRAWL/DEPOSIT per day day

NET BANKING Free Free Free

MOBILE BANKING Free Free Free

b. Preferred Saving Accounts (Category B)

PARTICULARS HDFC ICICI ING VysyaAccount name

SAVING MAX GOLD FORMULA

ACCOUNT PRIVILAGE SAVING

D ACCOUNT ACCOUNT

AQB (Average 25,000 50,000 25,000

Quarterly Balance)

Free DD Upto 50,000/qat N.A. Upto 50,000/qat.

Third Party Cash Upto 15,000 N.A. Upto 25,000

Deposit

Smart-serv N.A. N.A. Present

Free Transaction 6 in a year N.A. Unlimited

Direct 12 annual passes of

Special Features Bill Payments Preference famous night clubs

from accounts rates on gold and restaurants,

coins across India

Jump Que Facility Present N.A. Present

c. Privileged Saving Accounts (Category A)

PARTICULARS HDFC ICICI ING Vysya

Account Name Privileged Titanium PlatinaPlatinum

QAB (Quarterly 2,00,000 75,000 + TRV 1,00,000

Available Balance)of 5 to 10 lac

DD/PO Wavier Available upto N.A. Available upto50,000 50,000

PAP books Unlimited unlimited unlimited

One Lakh CashN.A. N.A. Available*

withdrawal from any

ATM

Cash Back Offer on N.A. N.A. 1 to 2 %

Shoping*

Cashnet enabled N.A. N.A. Available

credit/debit card

FACTS AND PEOPLES’ PERCEPTION

A) SAVING ACCOUNTS OF RESPONDENTS IN THE BANK

B)KNOWLEDGE OF THE ACCOUNT AND SERVICES ASSOCIATED.

As per the data collected and analyzed, most of the people in Raichur have

chosen ICICI Bank for their banking. It is because ICICI was the first private

banking player in the newly formed state (U.K.) they hold the accounts of 51%

of the respondents. Next rank comes to HDFC with 31% of accounts. ING has

captured 18% (speculative) of the market share within 6 months of its

establishment in the State.

C) QUARTERLY AVAILABLE BALANCE THAT HAS TO BE MAINTAINED

It is the amount which one has to maintain for a single quarter. 45% of the respondent were maintaining 5,000 rupees. 35% were maintaining nothing, 12% were holding 10,000 as their QAB. And 8% were holding more than 10,000 rupees.

Out of 45% of the respondents who maintain 5,000 rupees as their QAB, most of the

respondents are having account in ICICI and ING Vysya bank.

D) BANK PROVIDING SPECIAL FACILITY LIKE smart-serve

Smart serv is type of special services in which a person can send/present gifts to any of his/her

known in any of the city by just telling your banker the address of the person. The gift will be

purchased and will be delivered by the bank only, and the amount for the gift will be

automatically deducted from the sender’s account.

10% of the people who were really enjoying some of the special services provided by bank

were found to be associated with ING Vysya Bank.

E) PEOPLES’ RATING: ACCORDING TO THEIR PERCEPTION

51% of the people have rated ICICI Bank as 1st, this is because of wide market

share of ICICI Bank. 2nd Rank has been awarded to HDFC Bank by approximately 23% of

respondents. 3rd rating is given to ING Vysya bank by approx. 15% of the respondents. And

last comes AXIS Bank. Thus ING Vysya is better than AXIS and HDFC Bank in its Marketing

Strategy.

F) PEOPLE’S MOST FREQUENT POINTS OF INTERACTION WITHBANK

POINTS OF INTERACTION

All of the bank customers interact most frequently with the bank by doing their transactions from ATM. 35% of them visit branch quite often and 35% of the respondents also go for phone banking. Internet Banking is the 2nd most point of interaction of bank and the customer. People who use Internet banking and mobile banking were found to be associated mainly with ICICI and ING Vysya Bank. ING Vysya is having best Internet banking attributes. This implies the technological advancement in Muzaffarnagar Citizens.

G) PERCEPTION OF RESPONDENTS ABOUT THEIR BANK/S

4 - Most/excellent 3- Reasonably good

2- Fair 1- Disappointing

1. Most of the people who are associated with ING Vysya Bank found their Bank

charges quite nominal and well justified. About 97% of the ING Vysya customers state the same.

Even AXIS Bank is charging best rates of charges to its customers. ICICI customer agrees that

they think of getting better bank charges.

2. People have ranked ICICI at the top notch for its 12hrs. working hours 8 to 8. Even

ING Vysya operates from 10 to 7, which is 2 hrs. more than HDFC and AXIS. Therefore ING Vysya Bank has an edge over AXIS and HDFC as per working hours.

3. 80% people have again rated ICICI as one of the best banks location

wise. Its large no. of branches provides access to bank anywhere. As

ING Vysya has got number other branch in Uttar Pradesh it has been

rated lowest as per most of the respondents and ING Vysya customers.

According to respondents even AXIS and HDFC bank have no. of

branches and are located at an accessible location.

4- Most/excellent 3- Reasonably good

2- Fair 1- Disappointing/least

4. Almost all respondents who are in connection with ING Vysya Bank have rated it

best in the customer care services. 55% of the respondent who are associated with HDFC Bank

have rated HDFC, reasonably good in customer care services. But customer of ICICI and

AXIS Bank are not very much delighted with customer care services of their bank. This way

ING

Vysya has got an advantage of delivering excellent customer care services.

5. In case of “Behavior of the Staff” most of the ING Vysya

customers have rated ING the best. Almost 100% of the ING

customers are well satisfied with their banker’s behavior. On the

other hand 72% customers of ICICI bank and other respondents as

well have ranked ICICI as very disappointing as per behavior of the

staff. Most of them stated that when they visit branch, any of the

employee there, hardly pays full attention towards them. Even some

of the preferred customers have to stay in a cue or have to wait for

long to get their job done by the bank. HDFC and AXIS Bank has

been rated reasonably good by the respondents as far as behavior of

the staff is concerned.

6. With the criteria of Variety of Accounts, people have rated ICICI as the top one.

This is because ICICI is having bank accounts for the different customers with different needs.

They have account for old age citizen, pension account, kid’s account of various types and

many more. Where as ING Vysya has been rated least, because they are operating with only 3

types of saving accounts in the city. They do have various other kinds of accounts but these are

not available in Muzaffarnagar. This is probably due to very less time of their establishment.

They are not providing the full services because its been just 8 months that they have

established in Uttar Pradesh (Muzaffarnagar).

4- Most/excellent 3- Reasonably good

2- Fair 1- Disappointing

7. Most of the ING Vysya customers are happy with processing speed of their banking

transactions. ING Vysya Bank boasts about delivering the commitment. According to the ING an

account takes 5 days for activation.

8. The queries handling is done very well by ING Vysya bank according to the

respondents. 57% of the ICICI customers are unhappy with the bank regarding their queries

handling. Whereas AXIS Bank has been rated good.

H) VARIABLES INFLUENCING ACCOUNT OPENING IN A

PARTICULAR BANK.

1) I will prefer, if my friend recommends me to open an account in a particular bank. ( WORD

OF MOUTH)

According to the respondents, they mainly disagree for opening a bank account on their

friend’s or relatives’ recommendation. And to 27% of the respondents it doesn’t matter.

Very few people agree to the recommendation. This means that the WORD OF MOUTH is

not an

essential marketing channel for opening an account in bank. People first try to find the real

facts by their own.

2) I am very cautious about Average Quarterly Balance non-maintenance charge.

(QAB)

Many people are bothered about their QAB, and to 23% people QAB doesn’t mean

much. According to them they were never charged for not keeping enough QAB.

3) I am generally motivated by the television add for saving bank account

STRONGLY AGREE AGREE DOESN’T BOTHER ME DISAGREE STRONGLY DISAGREE

8%4% 10%

18%

60%

Most of the respondents were unaware of the new advertisements of various banks. For

them it hardly plays any important role in capturing market share.

4) I am generally bothered about the distance between my home and

PERCENTAGEOF RESPONDENTS

PERCENTAGE OF RESPONDENTS

85%

5% 6%

2% 2%

STRONGLY AGREE DOESNT DISAGREE STRONGLY

AGREE BOTHER ME DISAGREE

Most of the respondents were very much bothered about the distance from their bank and

home. That implies that PROXIMITY to bank is one of the very BOLD VARIABLE for

account opening.

5) I prefer saving bank account as it is popular.

6) I give importance to DD and cheque facility in saving bank account.

7) I give preference to instant alert, net banking and phone banking.

SWOT ANALYSIS

Strengths

· ING as one on the biggest financial MNC. 7th in 500 fortune

· Only foreign bank which has acquired an Indian private bank (Vysya Bank)

· Higher rate of interest than other private banks

· Most of the financial plans are legalized under 80(ccc)

· Top notch customer care and staff behavior

· Unique features with different kinds of accounts

· Working hours

Weakness

· Very few branches · Less variety of financial/banking

products · Location

Opportunities Threats

New segment of doctors, students Presence of two top privateand CAs as they like innovation banking players in the marketin their financial needs and like to (ICICI & HDFC)

enjoy the services. Large market share already High class (upper strata) captured

population of city Non willingness of Increase in different kind of Muzaffarnagar citizens to change

financial products for something new, or to try

NGO and Public Relations innovation in their banking.

CHAPTER - 5

FINDINGS

The study conducted directs toward the Private Banking scenario in the city Muzaffarnagar

Study suggested that a large market share has been captured by ICICI Bank and HDFC Bank.

Out of two ICICI is enjoying the maximum market share. This is probably because of the reason

that ICICI was the first private bank in the state as well as in city.

Most of the people know about the account and services associated with it. Most of the people

are maintaining 5,000 rupees as QAB in their private banking account, but most of them except

ING Vysya customer are unaware of the special facilities available.

People have ranked ICICI bank as best in the city. This is may be due to the oldest persistence of

ICICI bank in the city. They have rated HDFC as 3rd and ING Vysya as 2nd.

Almost everyone comes in contact with their bank by the use of ATM machines. 80% of the

respondents were using internet banking that implies high literacy rate in the city.

People think that the staff of ICICI does not behave well with their customers but ING Vysya

customers are glad with the staff of ING Vysya Bank. But on the other hand ICICI customers are

very happy with the working hours of ICICI bank. HDFC customers are a bit unhappy with the

working hours of their bank.

People are very much bothered by the distance between their home and the bank. They believe

that this a major issue which influence the customer to open an account in any bank. Most of the

people are not entertained

by the television advertisements about various banks. Even word of mouth has not been proved

as strong marketing channel about banking. It implies that for banking customer is looking at the

commitment, real facts, distance between their home and bank, behavior of the banker, QAB and

many more.

LIMITATION

LIMITATIONS

· ING Vysya Bank have a very few branches in Northern India

· Customer are not aware about the ING Vysya Bank

· ING Vysya Bank have fewer banking/financial product compare to other

· ING Vysya Bank have very few ATM .

· Research is only done in Muzaffarnagar city

· Research is self-financed so money is a major constraint

· Respondents are biased toward their current bank.

· Time is 6 weeks, so much of economic fluctuations are not seen

RECOMMENDATION

RECOMMENDATIONMany of the respondent are not aware about their key services. Bank has to take some initiatives.Bank can post a list of services that they can rendered to the customer inside the bank premises.ING Vysya Bank has to improve its brand image i.e. create a position in the mindset of the customer.It should more emphasize on advertisement. Advertisement is a most powerful tool for position and brand in the mindset of customer.ING Vysya Bank should ask for their customer feedback to know whether the consumer are satisfied or dissatisfied.Due to intense competition in the financial market. ING Vysya Bank should adopt better strategy to attract more customer

BIBLIOGRAPHY

WEBSITES

www.ingvysyabank.com

www.icicibank.com

· www.hdfcbank.com

· www.moneycontrol.com

· www.economictimes.com

· www.blackle.com

BOOKS

· India Today · Chronicle · Business World · Business Today

ANNEXURE

Questionnaire

Comparative analysis of saving bank accounts of different private sector banks

Dear respondent,

We are conducting a research to know the general perception and attitude of customer towards

the products & services that are offered by ING Vysya Bank & other private banks (ICICI &

HDFC) in Muzaffarnagar. The information will be valuable input for the research and we assure

you that the information will be kept confidential. We hope that you will co-ordinate with us and

give quite a few minutes from your precious time and give the genuine answer.

1) Do you have a saving account in any of the Private

banks in Muzaffarnagar ?

a) Yes

b) No

2) In which of the following banks do you have saving bank account?

1. ING Vysya Bank 3. HDFC Bank 2. ICICI Bank 4.Any Other Bank

(Please Specify…………………………)

3) Do you have complete knowledge of the saving account and services associated

with that account you have?

a) Yes

b) No

c) Can’t say

4) Are you a preferred/privileged customer of your bank?

a) Yes b) No

5) How much Quarterly Available Balance (QAB) you need to maintain?

a. Nil

b. 5,000

c. 10,000

d. More than above

6) Does your Bank provide you some special services like, smart serve, mi-banking?

a. Yes

b. No

7) Please rate the following banks on the scale of 4 where 1is the least and 4 is the most

according to your perception you are having for reputation of the banks.

ING Vysya ICICI Bank HDFC Bank Axis BankBank

8) What is your most frequent point of interaction with the bank?

Visit Branch

ATM

Phone Banking

Drop Box

Internet Banking

Mobile Banking

9) Please rate the following banks on the basis of your perception about the given

attributes out of 4, where 1 is the least/disappointing and 4 is the most/excellent

ING

Vysya ICICI HDFC Axis

S.NO ATTRIBUTES Bank Bank Bank Bank

1. Bank charges

2. Customer care

Variety of saving bank

3. account

4. Behavior of the staff

5. Working Hours

6. Location

7. Personalized attention

8. Processing Speed

9. Grievance/queries handling

10) Please rate the following variables which influence you when it comes to open an account on the scale of 1 to 5 where 1 is strongly disagree and 5 is strongly agree.

8SL SRONGLY STRONGLYNO STATEMENTS DISAGREE…………………………… AGREE

1 2 3 4 5

I will prefer, if my friend recommends

me to open an account in a particular1 bank.

I am very cautious about AverageQuarterly Balance non-maintenance

2 charge.

I am generally motivated by the3 television add for saving bank account.

I m generally bothered about the

distance between my home and the

Bank.

I prefer saving bank account as it is5 popular.

I give importance to DD and cheque6 facility in saving bank account.

I give preference to instant alert, net-

banking, phone banking, and mobile

7 banking. 8 I give importance to the third party cash

.deposits and withdrawal

Any other suggestions regarding the bank please mention:-

……………………………………………………………………………………

……………………………………………………………………………………

……………………………………………………………………………………

………………………………….

Tthank you for your cooperation for devoting your valuable time and sharing the valuable

information with us which will help us to complete our project successfully.

Place…………………Date……………………..

Signature of the respondent