62634484-60552123-Ing-Report

PROJECT REPORT ON

“GENERAL BANKING OPERATION”

CARRIED OUT AT

“ING VYSYA BANK, NEW DELHI”UNDER THE GUIDANCE OF

“MR. SAURABH NARANG, BRANCH HEAD”SUBMITTED FOR EVALUATION UNDER INTERNSHIP

DISSERTATION

SUBMITTED BY: SUBMITTED TO:

GOURAV AGARWAL Dr Chand tandon SEC C Ph.D MBA (finance);ROLL NO 136 Pune UniversityPGDM 2010-12

NEW DELHI INSTITUTE OF MANAGEMENT

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AUTHENTICATION CERTIFICATE

“To Whom It May Concern”

This is to certify that the Internship Dissertation, titled “GENERAL BANKING

OPERATION” is a bonafide work carried out by me at “ING VYSYA BANK”. The matter

embodied in the dissertation report is original and has not been submitted earlier for award of

any degree or diploma to the best of my knowledge and beliefs.

Signature of the Intern

(Gourav Agarwal)

Date: 07/07/11

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FACULTY GUIDE’S CERTIFICATE

“To Whom It May Concern”

This is to certify that the Internship Dissertation, titled “GENARAL BANKING

OPERATION” submitted by Master Gourav Agarwal is a bonafide work carried out by him

at “ING Vysya Bank, New Delhi” Under my guidance. The matter embodies in this

dissertation has not been submitted earlier for award of any degree or diploma to the best of

my knowledge and belief.

I recommend its submission for evaluation.

Signature of the Intern Signature of the Faculty Guide

GOURAV AGARWAL Dr CHAND TANDON

Ph.D MBA(finance)

Date: 07/07/11 Pune University

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ACKNOWLEDGEMENT

It is a great pleasure to have this opportunity of preparation of this project. A project report is

never the sole product of a person whose name appears on the cover. There is always the

help, guidance and suggestions of many in preparation of such a report. So, I have indebted to

several people who have helped me in completing my SIP report on ING Vysya Bank

Project which focus on “General Banking Operation”.

I wish to acknowledge my sincere thanks to Mr. Saurabh Narang (Branch Head) ING

Vysya Bank who gave me permission to do Project Training in ING Vysya Bank . I am

grateful to Mr. Shivesh Kumar Singh, HR Coordinator-North, ING Vysya Bank Limited for

extending their support for my training.

I would like to thank my faculty guide Ms. Chand Tandon for her valuable guidance

and support during the course of my present work. Her keen interest, timely and constant

encouragement and generous cooperation gave me confidence and strength to progress this

report. Her valuable advice, and constructive suggestion during course of my report really

helped me a lot.

I would also like to thank Mr. rohit , Ms. Lavanya, Mr. Mandal,

Mr. Rahul, Mr. Gaurav, Ms. Purabi (bank employees) for their valuable co-operation and

efforts for the preparation of this project.

I would like to thank all the member of other department also like Business banking, Foreign

Exchange, Insurance, Marketing.

Specially, I am thankful to my parents who have directly or indirectly helped me and

showing me the right way at all moments.

GOURAV AGARWAL

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EXECUTIVE SUMMARY

This project has been a great learning experience for me at the same time it gave me enough

scope to develop my analytical ability to successfully complete the project under tutelage of

eminent and worthy company guide.

This project as a whole can be divided into four parts:-

-The first part gives an insight about the cash department and its various aspects. It is purely

based on cash receipt and cash payment and all its basics through the project. Some of the

most interesting questions regarding satisfaction level of customers have been covered. All

the topics have been covered in a very systematic way. The language has been kept simple so

that even a layman could understand. All the data have been well analyzed with the help of

charts and graphs.

-The second part consists of Know Your Customer (KYC) department and their analysis,

collected through a survey done on 100 people which helps to know “customer of the

organization”. The data collected has been well organized and presented. Hope the research

findings and conclusions will be of use.

-Third part is clearing department. I have learned how to clear outward and inward cheque

and transaction through cheques.

-Last is remittance which includes Demand Draft and Pay Order. Demand draft is a draft

which can be used in out of city also but pay order is for the same city only.

The project provide me much needed corporate exposure i.e. working with team,

business communications, essentials of backing and prioritizing of work with soft skills and

market forces that drives the banking industry. Majorly the project is concerned on the

efficient and prudential banking linked to better customer care and customer services.

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TABLE OF CONTENT

1. INTRODUCTION………………………………………………………………7 -14

a) Introduction of Banking Industry…………………………………...….7b) Banking…………………………………………………………………..9c) Banking system in India………………………………………………...10d) Nationalization…………………………………………………………..13e) Liberalization ……………………………………………………….…..13f) Present Scenario……………………………………………..………….14

2. ORGANIZATION PROFILE…………………………………..……………..15-54a) ING Group……..……………………………………………….……15b) Company Profile……………………………………………………..16

o Mission………………………………………………………..16o Strategy………………………………………………….……16o Corporate Responsibility………………………...……..........17o The New Identity………………………………………..........17o Financial Market………………………………………..........17o Highlight 2008-2009…………………………………….........18o Significant Development…………………………………......18o Company Overview……………………………….…….........19o SWOT Analysis…………………………………….................21

c) Organization Structure…………………………………….................22d) Mandatory rules of RBI…………………………………….………...24e) Objectives of the study………………………………………..……....24f) MITRA Committee……………………………………………...….....26

3. CASH……………………………………………………………………………………………………………27-30

4. TYPES OF BANK A/C & KYC……………………………………………………………………………29-45

5. CREDIT CARD………………………………………………………………………………………………..45-47

6. COMPARISON OF ING VYSYA WITH OTHER BANKS………………………………………47-56

7. CLEARING PROCESS, RTGS,NEFT…………………………………………………………………...57-64

8. RESEARCH……………………………………………………………...........64-72

a. Research Methodology………………………………………...…..66b. Research Design…………………...…………………………...…..66c. Sample questionnaire……………………………………………....67d. Analysis………………………..……………………………...…….69e. Facts and findings………………………………………………….74

5. CONCLUSION……………………………………………………………...…75

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7. BALANCE SHEET……………………………………………………………76

8. FINANCIAL HIGHLIGHTS………………………………………………….77

6. LEARNING FROM INTERNSHIP………………………………………….78

7. Bibliography……………………………………………………………………79

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.

INTRODUCTION OF INDIAN BANKING INDUSTRY

Banking in India originated in the first decade of 18 th century with The General Bank of India coming into existence in 1786.This was followed by Bank of Hindustan. Both these banks are now defunct.

The oldest bank in existence in India is the State Bank of India being established as “The Bank of Bengal in Calcutta in June 1806. A couple of decades later, foreign banks started their Calcutta operations in the 1850s.At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank in 1895 in Lahore and Bank of India, 1906, In Mumbai – both of which were founded under private ownership.

The Reserve Bank of India formally took on the responsibility of regulating the Indian Banking sector from 1935.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.

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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.

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.

At the end of late-18th century, there were hardly any bank in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the Americans. Some banks were opened at that time which functioned as entities to finance industry, including speculative trades in cotton. With large exposure to speculative venture, most of the banks opened in India during that period could not survive and failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.

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BANKING

Banks have played a pivotal role in the process of development of the district over the years, especially after the formation of the district in 1993. Apart from dispensing credit, the Banks have also brought about social changes. The contribution of the banking sector in the field of overall development of the district is elaborated in the following paragraphs.

At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the India’s First war of Independence and the social, industrial and other infrastructure have developed, at that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities.

The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras-which later on merged to form the Imperial Bank of India, and Imperial bank of India upon India’s independence, was renamed the State Bank of India. There were also some exchange banks, as also a number of Indian joint stock banks. All these banks operated in different segments of the economy.

The presidency banks were like the central banks and discharged most of the functions of central banks. They were established under charters from the British East India Company. The exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock banks were generally undercapitalized and lacked he experience and maturity to compete with the presidency banks, and the exchange banks. There was potential for many new banks as the economy was growing. Lord Carson had observed them in the context of Indian baking” in respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate a cumbersome compartments.”

Under these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, a number of which have survived to the present such as Bank of India and Corporation Bank, Indian bank, Bank of Baroda and Canara Bank.

Indian banking sector can be divided mainly into four broad categories namely public sector Banks, old private sector banks, new private sector banks, and foreign banks. The other categories of banks include co-operative banks and regional rural banks. Since these banks don’t form a substantial chunk of the banking system, we will focus on the first four categories.

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BANKING SYSTEM IN INDIA

CENTRAL BANK: RESERVE BANK OF INDIA

NATIONALISED BANK IN INDIA

The Banking System in India is dominated by nationalized banks. The Nationalization of Banks in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister. The major objective behind Nationalization of Banks was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969.these are:-

State Bank of India

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

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BANKS IN INDIA

CENTRAL BANK

NATIONALISEDBANKS

PRIVATE BANKS

FOREIGN BANKS

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

Union Bank of India

MAJOR PRIVATE BANKS IN INDIA

All the banks in India were earlier private banks. They were founded in the pre-independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.

Axis Bank

Bank of Rajasthan

Bharat Overseas Bank

Catholic Syrian Bank

Centurion Bank of Punjab

City Union Bank

Development Credit Bank

Dhanalakshmi Bank

Federal Bank

Ganesh Bank of Kurundwad

HDFC Bank

ICICI Bank

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IDBI Bank

Induslnd Bank

ING VYSYA Bank

Jammu & Kashmir Bank

Karnataka Bank Limited

Karur VYASA Bank

Kotak Mahindra Bank

Lakshmi Vilas Bank

Lord Krishna Bank

Nainital Bank

Ratnakar Bank

SBI Commercial and International Bank

FOREIGN BANKS IN INDIA

Foreign Banks are likely to succeed in their niche markets and be the innovators in terms of technology introduction in the domestic scenario. The outlook for the private sector banks indeed looks to be more promising vis-a-vis other banks. While their focused operations lower but more productive employee force etc will stand them good, possible acquisitions of PSU banks will definitely give them the much needed scale of operations and access to lower cost of funds.

Standard chartered Bank

Deutsche Bank

Bank of America

Citi Bank

ABN Amro BANK

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NATIONALISATION

By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled “Stray thoughts on Bank Nationalization.” The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized ye 14 largest commercial banks with effect from the midnight of July 19, 1969.Jayaprakash Narayan, a national leader of India, described the step as a “masterstroke of political sagacity” Within two weeks of the issue of the ordinance, the parliament passed the Banking Companies (Actuation and Transfer of Undertaking) Bill, and it received the presidential approval on 9th August, 1969.A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India.After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

LIBERALISATION

In the early 1990s the then Narasimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks, which came to known as New Generation tech-savvy banks, included banks such as UTI Bank (now renamed as Axis Bank), Global Trust Bank (the first of such new generation banks to be set up) which later amalgamated with Oriental Bank of Commerce, ICICI Bank and HDFC Bank.

This move, along with the rapid growth in the economy of India, kick started 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 a 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 o the retail boom in India. People not just demanded more from their banks but also received more.

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PRESENT SCENARIO

Currently (2011), 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.

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 takeovers and assets 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.

2007 -ING Vysya Bank has unveiled a scheme called `Freedom Savings Account.' The features of the account are a zero quarterly balance requirement and a zero penal charge for non-maintenance of minimum quarterly balance. 2008 ING Vysya Bank Ltd has appointed Mr. M Damodaran as a Non-Executive & Non Independent Director of the Bank. 2009 -ING Vysya Bank Ltd has appointed Mr. Vaughn Nigel Richtor as an Additional Director on the Board, effective June 01, 2009. He will be a Non-Executive and Non-Independent Director. 2010 ING Vysya Bank Limited has appointed Mr. Peter Henri Maria Staal as a Non-Executive &

Non-Independent Director of the Bank effective January 21, 2010.ING Vysya Bank Ltd has

informed that the Board of Directors of the Company at its meeting held on January 21, 2010,

have approved the appointment of Mr. Peter Henri Maria Staal as a Non-Executive & Non-

Independent Director of the Bank effective January 21, 2010.

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ORGANISATION PROFILE

ING GROUP Headquarters, Amsterdam

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 “International Nederlanden Group”. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to “ING Group N.V.” ING is a global financial services company providing banking, investments, life insurance and retirement services and operates in more than 50 countries.

The bank with its outlets across India offers the entire range of financial products and services in an online environment. It has over 78 years of market standing, a net worth of Rs.1444 crores and the capital adequacy ratio of the bank stood at 12.94% for FY 2011.

ING, the global financial services giant on the other hand has an assets exceeded 1332 billion Euros, as at the end of the year December 2008. The presence of the group extends beyond 50 countries, serving over 85 million clients, with a strong and committed employee force over 125000.

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ING Private Banking is a global network of over 2000 private banking professionals, managing over 500 billion Euros for our clients in 15 countries. Private Banking in India started in 1994 as a part of the ING Group N.V. Since inception, our offer has been in-line with our international credo - relationship oriented, long term and advisory driven. We were among the first few banks to introduce Private Banking in India and currently we manage assets for around 400 families.

COMPANY PROFILE

ING has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile.Another specialization is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, 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.

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.

MISSION 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.

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.

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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.

THE NEW IDENTITY

The immediate benefit to ING Vysya Bank ltd is the pride of having become a member of global financial services giant, with total assets of 1332 billion euros, profit after tax RS.188.8 crores in 2008-09 compared to profit of RS.156.9 crores in 2007-08.Further, the presence of the group in over 50 countries, employing over 125000, 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 backup 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.

FINANCIAL MARKETS

ING VYSYA Bank Financial Markets 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. 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.

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COMPANY OVERVIEW

1930

Set up in Bangalore

1948

Scheduled Bank

1985

Largest Private Sector Bank

1987

The Vysya Bank Leasing Ltd. Commenced

1988

Pioneered the concept of Co branding of Credit Cards

1990

Promoted Vysya Bank Housing Finance Ltd.

1992

Deposits cross Rs.1000 crores

1993

Number of Branches crossed 300

1996

Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion

1998

Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998)

2000

State -of - the -art Date Centre at ITPL, Bangalore.RBI clears setting up of ING Vysya Life Insurance Company

2001

ING-Vysya commenced life insurance business.

2002

The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.

200 ING takes over the Management of the Bank from October 7th , 2002

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22002

RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

2003

Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans

2004

Introduced Protected Home Loans - a housing loan product

2005

Introduced Solo - My Own Account for youth and Customer Service Line – Phone Banking Service

2006

Bank has networked all the branches to facilitate ‘AAA’ transactions i.e. Anywhere, Anytime & Anyhow Banking

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 cane together to found a bank that would extend a helping hand to those who weren’t privileged enough to enjoy banking services.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 an 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 Dandvate, had termed the performance of the bank ‘Stupendous.’ The 75th anniversary, the platinum Jubilee of the bank was celebrated during 2005.

Outlets comprise of 441 branches, 37 ECS, 28 Satellite Offices and 351 ATMs as of March 31st 2009.Additionally bank also has Internet Banking, mi-b@nk and customer Service Line for Phone Banking Service.

The long journey of seventy-five years has had served milestones…

In terms of pure numbers, the performance over the decades can better be appreciated from the Following table: RS in millions

Year Net worth Deposits Advances Profits Outlets

1940 0.001 0.400 0.400 0.001 4

1950 1.40 5.30 3.80 0.09 16

1960 1.60 20.10 13.50 0.13 19

1970 3.00 91.50 62.80 0.74 39

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1980 11.50 1414.30 813.70 1.13 228

1990 162.10 8509.40 4584.80 50.35 319

2000 5900.00 74240.00 39380.00 443.10 481

2001 6527.00 81411.10 43163.10 371.90 484

2002 6863.24 80680.00 44180.00 687.50 483

2003 7067.90 91870.00 56120.00 863.50 456

2004 7473.20 104780.00 69367.30 590.01 523

2005 7094.00 125693.10 90805.90 (381.80) 536

2006 10196.70 133352.50 102315.20 90.6 562

2007 11101.90 154185.70 119761.70 889.0 626

2008 14260.00 204980.00 146500.00 1569.00 677

2009 15940.00 248900.00 167510.00 1888.00 857

Outlets comprise of 441 branches, 37 ECs, 28 Satellite Offices and 351 ATMs as of March 31st 2009. Additionally bank also has Internet Banking, mi- b@nk and customer Service Line for Phone Banking Service.

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

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Location

Opportunities

New segment of doctors, students and CAs as they like innovation in their financial needs and like to enjoy the services.

High class (upper strata) population of city.

Increase in different kind of financial products

NGO and Public Relations

Threats

Presence of two top private banking players in the market (ICICI & HDFC)

Large market share already captured

ORGANIZATION STRUCTURE

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Chief of staff-Ashok Rao B

Chief Risk Officer-Jan Van Wellen

Country Head Wholesale banking-Janak Desai

Head Operations-Meenakshi A

Chief Financial Oficer-Jayant Mehrotra

Chief Information Officer-Prasad C V G

Country Head- Private BankingSamir Bimal

Chief Human Resources-Prasad J M

Country head- Retail BankingUday Sareen

MANAGEMENT – ING VYSYA BANK

NAME DESIGNATION NAME DESIGNATION

Shailendra Bhandari

Managing Director & CEO Lars Kramer

Non Exe Non Ind Director

Arun Thiagarajan Part time chairman Aditya Krishna Director

Meleveetil Damodaran

Director Philippe Damas Director

Richard Cox Director Peter Maria Staal Director

Santosh Ramesh Desai

DirectorRamakrishnan Subramanian

Non Exe.Non Ind.Director

Vaughn Nigel Richtor

DirectorMark Edwin newman

Non Exe.Non Ind.Director

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OBJECTIVES OF THE STUDY

The project is being carried out to know about the customer satisfaction by KYC and various products offered by the bank to them.

Few objectives are as follows- To know the customer desires as per the bank schemes.

To understand the KYC policy.

To know about the banking products.

To learn all the procedures of getting these products as per the requirement.

To know the effect of these products on profitability of a bank.

MANDATORY RULES OF RBI

Documents to be displayed in the bank:

Address & Phone number of the branch

Time norms

Notices of other branches & ATM’s

Citizen Charter

Bankers fair practice code

Code of Commitment

Model Policies

Outstation Cheques

Customer Redressal of their grievances

The banking Ombudsmen scheme 2006

Precaution – Important notice

Clean notice Policy

Acceptance of Coins

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Customers Day

Bank Notes

HR Gratituty Rules

Display on information on deposits

Service Charges for Savings Account

Service Charges for Current Account

Treatment of Soiled/Mutilated notes

Branches can receive request for exchange of or refund against torn/soiled notes

Mutilated notes can be divided in Full value /Half value /Rejects

Form DN1 (Defective note 1) is issued to customer as a token of acceptance of the note indicating the number of pieces of note & value in each denomination.

Form DN2 is a register of mutilated notes received /paid /rejected.

While making payment to customer, original token (DN1) to be retrieved from customer.

Advice against rejected notes is received in Form DN3

Treatment of counterfeit notes

All notes to be examined under the Ultra violet lamp

Once a note is identified as counterfeit, it has to be impounded as Forged

Customer should be requested to make good for the shortfall & make necessary changes in pay-in-slip

In no circumstances should the counterfeit note be handed over to customer

Acknowledgement given to customer to mention bank name , serial no. of the note , signature of tenderer of note & cashier signature

ICMC will lodge a FIR with the police.

[25]

Golden Rules for Signature Verification

Do a naked eye matching of the signature

Check the direction of the signature

Start and end point of the signature

Continuity / flow of signatures

Number of curves / loops

Identify flourishes like marks / strokes or special characters like underlines / dots

Identify any key letter in the signature which is unique to the person.

General Security Measures

Password Protection – Ensure absolute secrecy of the passwords

Screen Lock – Remember to lock your screen when you move away from your seat.

Exercise utmost caution with any document submitted by the customer. Maintain a proper system of processing these requests.

If you are handling any security item like Demand draft inventory, then ensure these are always kept under lock.

Ensure duplicate keys for all keys you hold are available with the Branch

While handling Cash ensure to lock the draws when not on the desk.

If posted at the cash counter , make sure to keep the cabin door locked always

Always verify customer signatures before processing any transaction

Ensure to apply the crossing stamp on cheques while accepting clearing cheques across the counter

Display of prominent stickers in the cash area as ‘The branch is under Camera Surveillance’.

MITRA COMMITTEE[26]

The Mitra committee headed under the chairmanship of Dr. N.L. Mitra observed two very wide systematic gaps in law and practice in dealings of the banks and financial institutions with the public frauds. The committee therefore prepared the suggestions in two parts.

Part I – deals with the preventive aspects of management of financial frauds to keep it happen only in rare cases. This suggests steps to contain a clean in house financial management.

Part II – deals with prohibition of financial fraud and introduction of a deterrent jurisprudence so that financial fraud being a serious offence to derail the system as a whole, is adequately and firmly dealt with.

The Mitra committee recommendations are mentioned below:

1. Development of best practice code : Each bank and Financial institution within the time frame indicated by the regulator , prepare a Best Practice Code (BPC) for its officers and staff to provide detailed rule based procedural system related matters and application of judging power.

2. System of Internalization of BPC : There has to be adequate in – house training, retaining system for internalizing the BPC and all directives of the Institution and the Regulator

3. Internal Check and Internal Control: There must be introduced a system of internal check and internal control in the management.

4. Legal Compliance Certificate: A legal compliance certificate needs to be mandated in all transaction exceeding a value limit. In case of exercise of judgment power, Aan explanation should be needed about the circumstances requiring the exercise of discretionary power.

5. Legal Compliance Audit: Every institution should have a legal compliance and due diligence audit every year and submission of the report to the regulator and to the shareholders.

6. Appropriate Incentive System: Use of discretionary power must be result oriented either positively or negatively. Incentives in an organization may have some correlation with the exercising of discretionary and the rationality of such judgment.

7. Liability of the Accounting and Auditing Professional: If the accounting professional in course of audit find anything susceptible to be a fraud or fraudulent activity, or use of excess power or smell any foul transaction, he should refer the matter to the regulator. Any failure should be considered as professional incompetence and attach liability.

[27]

8. Responsibility of Reserve Bank of India in frauds reported by Banks: The committee feels that while the violation of any regulation should come within the purview of the regulator, any act of omission or commission of the bank or any of its employees attracts the provision of a criminal law, hence it needs to be tackled by the RBI itself. For instance a fraud of Rs. 10 crore in a large public sector bank may not be of much regulatory or supervisory concern; at the same time a similar fraud in a small private sector bank may be of great concern. It is therefore; felt that the response of the RBI to such frauds should take into account the whole picture. Furthermore, individual monitoring of frauds could be left to the banks themselves. A review of such monitoring can be done at the time of the periodical inspection of banks.

9. DIFFERENT ROLES IN ING VYSYA BANK (GENERAL BANKING OPERATIONS)

CASH ACCOUNT OPENING REMITTANCES CLEARING

CASH

The most liquid asset of a bank is CASH held with itself or with the Reserve Bank of India. These cash reserves are also called the ‘first line of defense’ to indicate their significant role in defending the solvency, reputation and goodwill of the bank. The demand of the customers is immediately met by the bank with the cash balances with itself or the balances which are within its immediate command.

Factors that determine the cash balances

Growth of Banking habit

Existence of Bankers

The type and size of Deposit Accounts

Nature of advances and availability of Refinance.

Mainly Cash transactions are carried in two forms, they are

[28]

CASH

Cash Payment Cash Receipts ( Payment made by the (Cash received by the customer bank to customer ) to be deposited in the bank)

Cash Receipts

Things Required at the Desk:

o Cash Deposit Slips

o Cash Received stamp

o Gadgets – cash counting machine , UV lamp

o System Profile ID (SANCHEZ)

Things to check:

o Scrutinizing the deposit slips

o Currency features

o Bank charges , if any

o Identifying Counterfeit notes

o System Profile ID

o Safety measures/precautions at cash counter.

Accept:

o Cash deposit slip with details- date, account number, name,

denominations & signatures.o Cash

o While accepting the cash Rs 50,000 & above customer has to produce

Form 60 or PAN no. Agribased income customer has to produce Form 61 only.

Ensure

o All fields are filled in the deposit slip.

o Cash denominations & total amount is mentioned.

o Depositor has signed.

[29]

o PAN/ Form 60 is submitted for deposit above Rs 50,000/-

Process

o Accept the cash & deposit slip.

o Count the cash.

o Verify account number and name in the System Profile ID

o Enter the details in the system profile

o Affix cash received stamp at 3 places, 1 on the deposit slip – bank

copy, 2nd on the customer’s copy & 3rd on the perforation such that half stamp is imprinted on bank copy & other half on customer’s copy.

Cash Payment

Things Required at the Desko Cash

o Cash payment Stamp, UV lamp, Magnifying glass

o Cash counting machine

o System profile Id

Things to checko Types of Cheques bearer/order

o Scrutiny of cheque for payment

o Banking charges , if any

o Safety measures/precautions at cash counter

Accept

o Cheque for payment

Ensureo All details are filled in the cheque

o Cheque is not crossed or account payee

o Alterations are authorized by customer’s full signature

o Cheque is not post dated or stale

o Amount in words & figures match

o Verify if account has sufficient balance

o Customer has signed appropriately

o If order cheque, check for valid endorsements

o Signature tallies as per system profile

Processo Accept & scrutinize the cheque

[30]

o Pass entry in the system

o If amount >Rs.75, 000/-, get transaction verified by checker.

o Count the cash & ask customer to sign on the back of the instrument as

acknowledgement of payment received confirms two signatures.o Handover to customer & write denomination paid at the back of the

instrument.

BANK ACCOUNT

Opening Bank Account is the most common and first service offered by the Banks. There are

different types of accounts offered

Bank Savings Account - Bank Savings Account can be opened for eligible person /

persons and certain organizations / agencies (as advised by Reserve Bank of India

(RBI) from time to time)

Bank Current Account - Bank Current Account can be opened by individuals /

partnership firms / Private and Public Limited Companies / HUFs / Specified

Associates / Societies / Trusts, etc.

Bank Term Deposits Account - Bank Term Deposits Account can be opened by

individuals / partnership firms / Private and Public Limited Companies / HUFs/

Specified Associates / Societies / Trusts, etc.

Bank Account Online - With the advancement of technology, the major banks in the

public and private sector has facilitated their customer to open bank account online.

Bank account online is registered through a PC with an internet connection. The

advent of bank account online has saved both the cost of operation for banks as well

as the time taken in opening an account, though it is not popular amongst all banks as

yet.

General procedure to open an account:-

The Bank at first provides the customer with details of various types of accounts that

one can open with the Bank.

The customer can have his choice on what type of account would best suit him, based

on his needs and requirements

[31]

The Bank will, prior to opening an account, require documentation and information as

prescribed by the "Know Your Customer" (KYC) guidelines issued by RBI or such

other norms or procedures adopted by the Bank prior to opening the account.

The due diligence process that the Bank would follow, will involve providing

documentation verification of identity, address and information of occupation or

business and source of funds of the customer.

The Bank is required by law to obtain Permanent Account Number (PAN) or General

Index Register (GIR) Number or, where you do not possess such registration,

declaration in Form No. 60 or 61 as specified under the Income Tax Rules.

In the event that the account opening process is likely to take longer than normal, the

Bank will inform of the revised timeline.

The Bank will provide the customer with the account opening forms and other

relevant material to enable him open the account. Bank personnel will advise him on

the complete details of information that would be required by the Bank for the

verification process.

The Bank reserves the right, at its sole discretion, to open any account and at such

terms as the Bank may prescribe from time to time.

Components of Welcome Kit

Welcome kit is issued to customer on opening an account. It includes deliverables required to operate the account. A standard welcome kit will comprise of:

Debit Card

15 leaves Cheque book

Debit card pin

Internet banking user id

Internet banking password

Debit card user guide

Internet banking user guide

Welcome letter

[32]

KYC- Know Your Customer Guidelines

KYC guidelines are required to be followed by all banks at the time of opening a customer’s account.

The main components of KYC documentation are:

Identity proof of customer

Driving license Voter ID Employee identity card PAN card MAPIN card issued by authorized agents of SEBI Passport

Address proof of customer

Latest electricity bill Certificate from the postal office confirming address of applicant Telephone bill Lease agreement Statement of account of last 3 months Post office savings pass book Passport

Self cheque

PAN number/ Form 60

Two passport size photograph

[33]

MAIN TYPES OF ACCOUNTS OFFERED

SALARY ACCOUNT

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

Employees. Different types of salary accounts are Orange salary Account, Advantage salary

account and Aspira corporate salary solution.

As an organization, one can opt for ING VYSYA Bank Salary Accounts to enable easy

disbursements of salaries and enjoy numerous other benefits too.

With ING VYSYA Bank offers Salary Account with features as :

Free 24 hour Phone Banking.

Free Internet Banking.

Zero balance facility.

[34]

Free issue of personalized Cheque books.

Free 2 D.Ds/ P.Os not exceeding a value of Rs. 10.000/- per month.

Free Bill pay service at selected centers.

Free statement of account through e-mail.

Free joint account status with one other family member.

CURRENT ACCOUNT

A businessman for the purpose of his business normally opens a current account because his business requires daily or weekly transactions. He should always maintain a balance in his account as per the requirements of the bank and his respective account. A banker should be doubly cautious to get an introduction letter from the customer at the time of opening such account. He should also see that such introductory letters are verified, due to the following reasons: -

The RBI has given a direction that the prospective customers should

produce introductory letter at the time of opening the account;

The banker should ascertain the bonafides of the customer;

Since third party cheques are collected through the account, there is a chance for fraud by unscrupulous elements.

Since overdraft and cash credit facilities are available, the banker should not be exploited by an unscrupulous customer.

In a current account the banker is obliged to honor the cheques drawn on him if there is sufficient balance to his credit. One of the peculiar features of the current account is that the banker does not allow any interest on the deposits whatever the balance is. However, if the customer overdraws the account limit, he may have to pay interest to the banker. Overdraft may be granted for a temporary period of one moth or more depending upon the requirements of a customer. Cash credit facility is also available in the current account. Bankers allow certain special facilities such as free collection of outstation cheques, issue of demand drafts and mail transfers without any extra charges.

[35]

1. GENERAL CURRENT ACCOUNT - A Current account is ideal for carrying out day-to-day business transactions. With the ING General Current Account, one can access his account anytime, anywhere. Withdraw and deposit cash, issue and encash cheques, make balance-inquiries or ask for mini statements, and even request for cheque books anytime, anywhere.

Features:-

Phone Banking : Free

Net Banking : Free

Quarterly Average Balance (QAB) : Rs 10,000

Services of non maintenance of QAB : Rs 750 per quarter

Statement of account : Free once in a month

Additional statement of account : Weekly Rs. 400 pa

Fortnightly Rs. 200 pa

[36]

Issue of cheque books : Rs. 2.5 per cheque leaf

Rs. 5 per cheque

(For payable at par)

ATM usage : Free for all bank ATM’s

Closure of account : Rs. 500

Transaction charges : Rs. 3 per entry

Stop Payment : Rs. 50 per cheque

ATM cash withdrawal limit : Rs. 10,000/- per day

RTGS outward : Rs 1 lac to Rs 5 lac - Rs 25

: Rs 5 lac & above - Rs 50

NEFT outward : Up to Rs.1 lac - Rs. 5

: Rs.1 lac & above -Rs. 25

2. 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.

Features:-


Net Banking : Free


Services of non maintenance of QAB : Rs 1,000 per quarter

[37]



: Fortnightly Rs. 200 pa

Issue of cheque books : Free

ATM usage : Free for all

bank ATM’s

Closure of account : Rs. 1,000

Transaction charges : Nil

Stop Payment : Rs. 50 per cheque


RTGS outward : Rs 1 lac to Rs 5 lac -Rs25


NEFT outward : Up to Rs 1 lac - Rs 5


3. ADVANTAGE CURRENT ACCOUNT - ING Advantage Current Account has

the convenience 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 of outstation cheques (payable at branch locations), to free inter-city funds transfers of up to Rs.50 lakhs p.m. ,with priority services have become the benchmark for banking industry.

[38]

Features:-


Net Banking : Free










Stop Payment : Free


RTGS outward : Rs 1 lac to Rs 5 lac -Rs25




[39]

4. ORANGE CURRENT ACCOUNT - ING Orange Current Account gives the power of inter-city banking with a single account and access to more than 200 cities, with easy transfer of funds.

Features:-


Net Banking : Free

Quarterly Average Balance (QAB) : Rs 1,00,000









Stop Payment : Free




[40]


5. PLATINA CURRENT ACCOUNT - The product is targeted towards the large Retailers and Traders, Services companies, Consultancies, Small manufacturing units and professional segments.

Features:-



Net Banking : Free



Additional statement of account : Weekly Rs. 500 p.a.

Fortnightly Rs. 250 p.a.





Stop Payment : Rs.50 per cheque

RTGS outward : Free

NEFT outward : Free

Demand draft : Free up to 1 Cr per day ,

[41]

after which Rs. 25 per draft

ATM cash withdrawal limit : Rs. 1,00,000/- per day

Special features:-

Dedicated Relationship and service Manager for Personalized Services

RTGS/NEFT – free and unlimited

Free Fire and Hazard insurance coverage up to Rs 5L per account

Free Issuance of ING Platina Gold debit card

SAVINGS BANK ACCOUNT

As the name indicates, the purpose of opening a savings bank account is to save money to meet the future and unseen contingencies. A person is allowed to open a savings bank account provided he is properly introduced to it. The interest is allowed at the rate of 5% on the minimum balance as in the case of any date as stipulated and the last day of each calendar month, which varies from bank to bank, but all follow similar norms. There are some restrictions relating to the number and amount of withdrawals. The number of withdrawals are generally restricted 100 per year and the total amount of withdrawals at any time should not exceed Rs-10,000/- or 10% of the balance whichever is higher. But if he wants to withdraw a larger sum, he should give a prior notice to the banker.

Saving Bank Accounts are usually opened in the name of individuals. No saving bank account is opened for a trading company or a business concern whether such a concern is a proprietary concern, partnership firm, a company or association.

ORANGE SAVINGS ACCOUNT:

Features:-

Quarterly Average Balance (QAB) : Rs 5,000/-


Net Banking : Free

[42]

Services of non maintenance of QAB : Rs 600/- per quarter


Additional statement of account : Weekly Rs. 400/- p.a.

: Forthnightly Rs.200/- p.a.



Closure of account : Rs. 100/-




Rs 5 lac & above - Rs 50


Rs 1 lac & above - Rs 25

Demand draft : Free up to 1Cr per day ,

After which Rs. 25 per draft

ZWIPE SAVINGS ACCOUNT:

ING Formula Savings Account is the first F1 themed Savings Account which offers fantastic services and benefits.

Features:-

Quarterly Average Balance (QAB) : Rs 25,000/-


[43]

Net Banking : Free

Services of non maintenance of QAB : Rs 600/- per quarter









RTGS outward : Free

NEFT outward : Free

Demand draft : Free up to 1Cr per day ,

after which Rs. 25 per draft

Special features:-

Formula one themed International Debit card.

The ING Formula debit card is accepted at over 23 million merchant establishments worldwide.

Free payable at par cheques.

[44]

Exclusive F1 themed Internet Banking services.

Free sms alert on transaction above Rs 1,500.

ATM cash withdrawal limit is Rs. 50,000/- per day.

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

PLATINA SAVINGS ACCOUNT:

In the context of banking for affluent customers banks have classified the HNI clients into either private banking customers or preferred banking customers basis the strategy adopted by the bank. ING’s Platina Saving Account has been created to treat the affluent customers differently and introducing preferred banking services for them.

Features:-



Net Banking : Free









[45]


RTGS outward : Free

NEFT outward : Free

Demand draft : Free up to Rs 50,000/- per day

after Which, Rs. 25 per draft

ATM cash withdrawal limit : Rs. 1,00,00/- per day

Special features:

Dedicated Relationship Manager for Personalized Services

Free Issuance of ING Platina Gold debit card

Waiver of surcharge on purchase of petrol across any petrol pumps in India.

ING Platina Card provides preferential rates to it’s customers on Demat, Bank Lockers, Personal and Home loans.

Credit card

The ING Gold Credit Card brings you a great combination of features & rewards.

[46]

https://www.online.citibank.co.in/products-services/goldcard/ING-Gold-Card-Landing-Page.htm?site=PORTAL&creative=NGX&section=HTTPLAND&agencyCode=XER&campaignCode=&productCode=&eOfferCode=HTTPLAND

● No Annual Fee*● 0% fuel surcharge at Indian Oil Petrol Bunks*● Earn double the reward points on every Rs.150/- spent on weekends* ● 1 Reward Point for every Rs.150/- spent on weekdays● Double the reward points for international spends

There is not so much variety in Ing Vysya credit cards, it offers only one credit card that is Ing gold credit card. The best thing about this card is that it offers twice the benefit when you use it on weekends. It means that you can spend more and get more on every spending you make. It has also a very low interest rate that is as little as 2.75% per month. It has also some power pack features such as converting bonus pints into cash back and air tickets.

The ING Credit Card Programme is a program jointly formulated by ING Vysya Bank (hereinafter referred to as “ING”) and Citibank N.A. (hereinafter referred to as “the Issuer”) for issue of ING Credit Cards to the customers of ING.

1. FEES AND CHARGES

a. Schedule of Charges: The schedule of Charges applicable to ING Credit Cards as on date is provided below:

Description of charges ING Cards

Joining & Annual Fees Fees applicable for both Primary and Additional Cardmembers will be communicated at the time of sourcing.

Cash Advance- Fees 2.0% (subject to a minimum of Rs.300 and US $7.5 at International ATMs)

Late payment charges • Rs.300 for bills upto Rs.10000 (per month) • Rs.600 for bills from Rs. 10001 - 25000 • Rs.700 for bills above Rs.25000

Over Credit Limit Charge 2.5% over Credit Limit (Subject to a minimum of Rs.500)

Cheque/ECS Bounce Charge Rs.250 per returned cheque/ECS

Railway Ticket Booking or

Cancellation Surcharge

[47]

(Counter booking) 2.5% of transaction value (subject to a minimum of Rs.25)

Railway Ticket Booking Surcharge

(Internet booking) • 1.8% of transaction value for regular transactions;

• 2.8% of transaction value for 3 EMI transactions

Foreign Currency Transactions Mark Up of 3.5%

b. Finance Charges (Interest Charges)

• Interest will be charged if you (the word ‘you’ refers to the Card member) do not pay back

the previous bill in full and also on all Cash Advances from the date of transaction until the

date of settlement.

• Your rate of interest initially is 2.75% per month (i.e.33% annualized). This can change

periodically based on your spend, payback and utilization patterns. Your rate of interest can

increase upto 3.25% per month (i.e.39.0% annualized), in case of default. The default interest

rate will apply till the time the account is regularized plus 3 months of performance review

period.

c. Interest Free (Grace) Period: The Grace period could range from 17 to 55 days.

Comparative analysis of ING VYSYA Bank’s salary

account features with other banks.

I) ING VYSYA V/S STANDARD CHARTERED BANK

FEATURES ING VYSYA STANDARD

CHARTERED BANK

Minimum balance to

be maintained

Zero Zero

ATM card Free of cost to every

account holder

Free of cost to every

account holder

[48]

ATM transactions

from other banks

First 6 withdrawals free of

cost from any cirrus

network ATM

First 4 withdrawals free

of cost from any VISA

electronic card

network.

PAP cheque books Free for orange salary

account holders and Rs.2

per leaf for advantage

salary acc

Available

Issue of free

Personalized cheque

books

Available

Not available

Free phone banking Available Available

Free net banking Available Available

Statement of

accounts

Free, quarterly Free quarterly, Rs.59

additional for every

month you required it

extra.

OD facility

Available, at 18% for no. of

days overdrawn

Not available

Shopping

convenience

At 2,00,000 merchant

locations

Not available

D.D’s/P.O’s 2, free of charge for an

amount not exceeding

Rs.10, 000

Chargeable

Standard chartered again enjoys a status of a very reputable bank and

has a strong brand value compared to ING Vysya bank. The reliability

factor is quite high in its case; where as people still think quite a lot before

they go for choosing ING Vysya bank. As far as comparison is concerned it

can be seen that [49]

i. Standard Chartered Bank offers 4 transactions free of cost from VISA

electronic card where as ING Vysya offers minimum 6 transactions free of

cost.

ii. ING Vysya bank gives the OD facility where as Standard Chartered

doesn’t.

iii. ING Vysya offers 2 D.D’s/P.O.’s free of cost where as Standard

Chartered doesn’t.

II) ING VYSYA V/S HDFC

HDFC, one of the very popular brands in terms of corporate sales as well

as other products, has features more or less same as ING Vysya but

enjoys a very reputable stature. Like ING Vysya it also has two products in

case of salary accounts, classic and regular. Under classic, employees

having monthly income Rs.7500 to Rs.14999 open their accounts while in

regular; employees having their monthly income above Rs.15000 have

their accounts. Its comparison can be done on following grounds:

[50]

FEATURES ING VYSYA HDFC

Minimum balance to

be maintained

Zero Zero

Statement of accounts Quarterly free of cost to

every employee

Six monthly to classic

salary account holders

and quarterly to regular

salary account holders

Cash withdrawal

charges from ATM


of cost from any cirrus

network ATM



network ATM




salary acc

Chargeable for every

body

Cash delivery and

cheque pick up facility

Not available Available at selected

centers

Free phone banking Available Available

Free net banking Available Available

Issue of international

debit card

Free for every body Only for regular salary

account holders

Safe deposit lockers Not Available Subject to availability

OD facility

Available, at 18% for no.

of days overdrawn

Available at 1.5%+

12% (service charge)

for no. of days

overdrawn

HDFC again is one of the most renowned and respected banks in our

country and has the advantage of coming in to existence earlier, over ING

Vysya. The brand value that it enjoys is commendable and it seems that it

is one of the reasons why people prefer HDFC over ING Vysya. Apart from

this other reasons contributing to it could be:

[51]

1. Wide network of its branches and ATMs all over India, which makes

it reliable.

2. Strong brand recognition through advertisements and other

sources.

3. RBI guide lines doesn’t allow ING VYSYA which is an MNC bank to

open their ATMs in company premises which is not the case with

banks like HDFC and ICICI hence companies which are already with

these banks and enjoy this facility cant switch over even if they

want to.

III) ING VYSYA V/S YES BANK

FEATURES ING VYSYA YES BANK

Minimum balance to

be maintained

Zero Zero

ATM card Free of cost to every

account holder

Free of cost to every

account holder

ATM transactions from

other banks



network ATM

‘N’ number of

withdrawals free of cost

from any master’s

network.

Reimbursement

savings account for

expense-

reimbursement

Not available Available




salary acc

Not available

Cash delivery Not available Available

[52]

Internet banking Available Available, chargeable

Phone banking Available Available, chargeable

Mobile banking Available Available, chargeable

Financial planning for

all employees once a

quarter

Not Available Available

Free e-mail alerts Available Available

Issue of international

debit card

Free for every employee Free for selected

employees

OD facility

Available, at 18% for no.

of days overdrawn

Not available

YES bank like ING Vysya is new on the ground and is similarly striving for

existence. Though within a short span, it has gained a strong foothold but

still it has a long way to go.

One of the main differences between their features is the eligibility

criterion. YES bank doesn’t open the corporate salary account of a

company if its average salary (total salary being uploaded divided

by no. of employees) is less than Rs.15000. which is not the case

with ING Vysya. Due to the availability of separate product, which is

advantage salary account, ING Vysya entertains even those.

On the other hand YES Bank gives unlimited ATM transactions with

its associated banks to its customers as it knows that it doesn’t

have sufficient number of ATM outlets, where as ING allows only 6

ATM transactions to be free of cost.

Comparison of ING Vysya’s saving account with the savings account of other banks

[53]

I) ING VYSYA V/S STANDARD CHARTERED BANK.

FEATURES ING VYSYA STANDARD CHARTERED

BANK

NO. OF PRODUCTS four: orange savings,

zwipe, platina account

and zinc account

Two: aassan and

axcess plus

Average quarterly account

balance

Rs.10,000 on orange,

25000 on zwipe, 100000

on platina

Rs.10,000 for aassan

and 10,000+ for axcess

Statement of account Quarterly free, and

monthly e-statement

free(if asked for)

Quarterly free

ATM usage 4 free for freedom

account, unlimited free

on cirrus for orange

account holders ;un

limited from ING Vysya

4 free if average

quarterly balance is

maintained; unlimited

free from standard

chartered.

Regular debit card Rs.200 Free

Gold debit card Rs.799 Not available

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 up to 10,000.

then 0.25% on part

there of.

Pay order (P.O.) Same as above. Rs.75 for aassan and

Rs.50 for Axcess.

Branch transaction Free for both Free, and Rs.50 if

average quarterly

balance is not

maintained.

[54]

Personalized cheque

books

Free Free, otherwise Rs.50

Balance enquiry Free Rs.20

II) ING VYSYA V/S HDFC BANK

FEATURES ING VYSYA HDFC BANK



and zinc 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.)

Average quarterly

account balance


25000 on zwipe, 100000

on platina

Rs.5000

Fee for non maintenance

of quarterly average

balance

Rs.600 per quarter Rs.750 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




account holders ;un



network ATM

[55]


Regular debit card Free for first year then

Rs.150 per annum.

Rs.100 plus taxes


Rs.10,000;Rs.2.50 per

1000 for amt up to

50,000;Rs 2 per 1000 for


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

III) ING VYSYA V/S YES BANK

FEATURES ING VYSYA YES BANK



and zinc account

Two: savings account,

gold savings account.

Average quarterly account

balance


25000 on zwipe, 100000

on platina

Rs.10,000 for savings

account and Rs.100000

for gold savings

[56]

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.




account holders ;un


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


Rs.10,000;Rs.2.50 per

1000 for amt up to

50,000;Rs 2 per 1000 for


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

[57]

CLEARING PROCESS

Clearing is a process by which banks exchange instruments. Funds are transferred from the drawer of the cheque to the payee.

Clearing house

Clearing House is the intermediary bank, which controls the entire clearing system. All cheques are received and sent by banks for payments/ collection through the Clearing House.

TYPES OF CLEARING

M.I.C.R. Clearing

With a view to speeding up the cheque clearing process, both local as well inter city, the Reserve Bank of India has introduced mechanized cheque processing system using MICR (Magnetic Ink Character Recognition) technology. Under this system, the cheques are processed at high speed on machines. Banks issue cheque, draft and other payment instruments in MICR format using the special quality paper and printing specifications. On MICR instruments, there is a code line at the bottom containing information printed in magnetic ink, which is required for mechanical processing.The code line contains the following information:

i. First six digits indicate the Cheque Number

ii. Next three numbers indicate city code

iii. Next three numbers indicate bank code

iv. Next three numbers indicate branch code

v. Next 6 digits indicate account number

ING VYSYA’s MICR CODE is 302 064 002

RBI has assigned codes for different negotiable instruments. They are as follows

Savings account - 10

Current account - 11

Pay Oder - 12

CC A/C - 13

Demand Draft - 16

[58]

Payable at Par cheques - 29

For example, a cheque displays ‘83030’ ‘302064002’ ‘107796’ ‘10’Cheques bearing MICR code are encoded 7 & lodged with clearing house, which in turn processes these cheques & delivers them to respective member banks for settlement.

TAT (Turn Around Time) clearing is 3 working days

Day 0 – Cheques are received by clearing house & presented to payee banks.

Day 1 – Paying bank credits funds to presenting bank (unclear funds till returns are marked) Account balance will reflect unclear funds till the returns are adjusted.

Day 2 – funds are credited to payee’s account

High Value Clearing This involves special processing of cheques of amount Rs. 1, 00,000/- & above. Funds are credited to payee’s account the same day. Cheque has to be deposited before the high – value cut off time of the specific city.

Return ClearingWhen cheques presented by banks cannot be cleared for any reason whatsoever by the drawee bank, they are returned back to the presenting / collecting bank. This process of returning the cheques happens through return clearing.

Clearing Process

A issues cheque to B. the payment from A to B happens through clearing when A & B hold accounts in two different banks. The participants in this process are

A’ Bank : Drawee BankB’ Bank : Collecting/ Presenting BankClearing house : RBI

CLEARING CYCLE

[59]

B’s Bank credits B’s account‘A’ issues Cheque

to ‘B’

REMITTANCES

There are 4 types of Remittances, they are PAY ORDER DEMAND DRAFT RTGS NEFT

PAY ORDER ISSUE

Things required at the desk:

PO Slips[60]

Clearing House forwards cheque to A’s Bank- Drawee Bank

‘B’ deposits cheque in his bank- Collecting

Bank

B’s Bank forwards cheque to Clearing House

CLEARING HOUSE

A’s bank processes cheque by debiting A’s account & passing credit to clearing House

Clearing House forwards credit to B’s bank

Pay order inventory

Printer

Required Stamps

Things to check:

Pay order charges – cash/cheque

Profile options for finding out charges

Profile entry for issue of pay order

Signature of signing authority depending on amount

How to hand over the pay order to customer

Limit of cash receipt for issue of pay order

Accept:

PO slips with all details filled

Cash/cheque

Ensure:

All details are filled up properly in the slip

The amount on the cheque includes the charges

Cheque is signed by customer

Check balance and signature in customer’s account

Process:

Scrutinize the Pay order slip

Pass entry in the profile

Debit customer’s account

If amount is above Rs. 50,000/- the transaction is to be verified by Checker

Print the pay order

Get the pay order signed by the signing authority[61]

Affix security adhesive

Hand over the pay order to the customer

Take customer’s signature in the pay order register

DEMAND DRAFT

Things required at desk

Demand draft (DD) slips

Demand draft inventory

Things to check

Demand draft charges- cash/ cheque

Profile entry for finding out charges

Profile entry for issue of demand draft

Signature of signing authority depending on amount

DD punching

Accept

DD slips with all details filled

Cash/ cheque

Ensure

All details are filled up in the slip

The amount in the cheque includes the charges

Cheque is signed by customer

Check balance and signature in the profile

[62]

Process

Scrutinize the DD slip

Pass entry in the profile

If amount is above Rs.50,000/- get transaction verified by Checker

Print the Demand Draft

Get the DD signed by signing authority

Punch relevant slots in the DD and affix the security adhesive

Hand over the DD to customer

Take customer’s signature in the DD register

Note: RBI has stopped Pay order above Rs. 50,000. It is preferable to make DD/PO by account only as per IT rules.

CHARGES OF DD/PO

The charges of DD/PO are as follows:

For Rs. 20,000/- : charges to be paid Rs. 50/-

After Rs. 20,000/- : charges are Rs. 52.5

For example:

Rs.20, 000/- : charges = Rs. 50/-

Rs. 21,448/- : charges = Rs. 52.5/- (21 x 2.5)

Rs. 21,900/- : charges = Rs. 55/- (22 x 2.5)

Revalidation of Demand Draft & pay order[63]

DD/PO issued by ING VYSYA Bank is valid for the period of 6 months/3 months respectively from the date of issuance.

Whenever the DD/PO is not encashed on or before this period, then the customer may approach the DD/PO issuing branch for revalidation of the instrument. The customer may either be purchaser or beneficiary of the instrument.

In case of Beneficiary initiated request. No objection certificate from purchaser is mandatory along with revalidation request & original DD/PO instrument.

In case of purchaser initiates request, purchaser has to give request letter duly signed as per mode of operation of account to the branch along with original DD/PO instrument

In receipt of the original DD/PO branch has to check whether DD/PO is still unpaid, the DD/PO is revalidated for further 6 months period from the date of revalidation.

Issuance of Duplicate DD/PO

Duplicate DD/PO is issued at the specific request of the purchaser/ beneficiary after verifying that the said instrument is still unpaid.

Cancellation of DD

DD/PO not utilized by the applicants are given to the DD/PO issuing branch for cancellation. DD/PO cancellation has to be given to the branch by providing request letter duly signed by the authorized signatories along with the original instrument after affixing revenue stamp of Re. 1/- if the proceeds are to be given by way of cash for cases less than Rs. 50,000 and it should be duly signed by the authorized signatories, if the proceeds are to be given. Revenue stamp need not be insisted if the proceeds are by way of account transfer.

Note: In case the customer does not have original DD/PO at the time of cancellation or issuance of duplicate DD/PO, then the customer must deposit an Indemnity Bond to the bank, on Rs.100/- stamp paper

RTGS

“Real Time Gross Settlement System” is a fund transfer mechanism where transfer of money takes place from one bank to another on a ‘real time’ or gross basis. This is the fastest

[64]

possible money transfer system through the banking channel. Settlement in real time means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable. RTGS timings in ING are from 10:00 hours to 17:00 hours in weekdays and from 10:00 hours to 13:00 hours on Saturday.

TAT – TAT or turn around time for RTGS in ING is 2 hours.

Charges –- RTGS charges for amount < (below) Rs. 5, 00,000 = 25 + Service Tax- RTGS charges for amount > (above) Rs. 5, 00,000 = 50 + Service Tax

NEFT

NEFT – “National Electronic Fund Transfer” operates on a deferred net settlement (DNS) basis which settles transaction in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. NEFT settlement takes place at fixed times a day as contrary to RTGS which takes place on priority basis.

TAT – TAT or Turn Around Time for NEFT in ING is 24 hours.

Charges:-

– NEFT takes care of the amount only Up to Rs 1 lac which is Rs. 5/- per transaction.

RESEARCH METHODLOGY

Research is a systematic search for pertinent information on a specific topic. My study was

descriptive sort of research and qualitative in nature, descriptive research has the purpose to

describe the state of affairs as it exit of present. My study include the study of the customers,

customers are a part of external environment (But micro not macro).The test preference of

customers are not in hands of entrepreneurs they have to mould their product and services in

accordance with customers need and expectation.

So I studied what was component of external environment and not in control.

Statement of research problem:

[65]

After experiencing the working of the Branch Banking my in charge manager Mr. Saurabh

Narang had a discussion with his Current Account sales team head Mr. Gaurav and handled

me a project on-

DOING RESEARCH

ON DIFFERENTS

CA/CS INSTITUTES

IN SHAKARPUR.

This research was done to know and read their financial transaction and their existing

bank detail.

Statement of research objectives:

The main objective of the research was to find out “the requirements of the

INSTITUTIONS, annual transactions of the INSTITUTIONS and there current bank

[66]

name”. The main motive of the in charge manager to hand over such a project to me was

because he wants to add the different institutions with the bank which was till now not

covered. He decided that it will be the best way of finding their requirements and then

meeting with them accordingly.Another objective was to provide me a deep knowledge by

making me to do the practical work. Its quiet well known that by doing the practical work we

come to know our weakness and strength and when we know that we can remove it from us

accordingly and become a confident man. With the practical work I came to know the

different queries of different customers because of which I realized that still there are many

points which are not known by me about the banks, so it was quiet simple for me to discuss

with the in charge manager about my queries. With such a project both the problem of the in

charge manager i.e. knowing the requirements of the INSTITUION and giving us the best

training possible gets fulfilled with the best possible result.

Research design and methodology:

As the research was conducted on the topic of Requirements of the CA/CS Institutes, so there

was nothing big problem in doing the research . First of all Mr. Gaurav (Current Account

Sales Head) explained me what is current account and what are the rules and restrictions in

opening the current account. He also explained what should be my introduction words when I

meet the customer for first time. What can be their queries and what are the ways through

which the coaching institutions work. A proper training was given to me.

After that I was asked to frame a questionnaire keeping in mind what can be the questions

through which I can deeply get the knowledge of the Institute, so that while the sales

executives can have a brief idea about the institute and with the help of which they can

explaining the products to the customer very easily and according to their needs. After I

[67]

framed a rough Questionnaire it was cross checked by the In charge Manager and also by Mr.

Gaurav. The purpose of crosschecking was to delete such questions which will not be

answered by the customer or which are of no use.

After that I finalized the Questionnaire and started my research. The methodology used was

Framing the Questionnaire and getting it filled by the Coaching Institutions by reaching to

them in there office. I have to meet the key person running the institute and then have to

convince him to fill the form so that I can collect the data for my project and also for the

banks sales executives.

A sample copy of the Questionnaire is given below-

QUESTIONNAIRECOACHING INSTITUTIONS

Institute DetailName: Type:Contact Person:

Contact No:Key Person Name:Existing Bank Detail-Name:

Branch:

1) Which type of account do you have?a) Current b) OD/CC

Limit: Rate of interest: No. of years in Business:

2) What is your average annual turnover?

a) Below 10 Lakh b) 10-25Lakhc) 25-50 Lakh d) Above 50 Lakh

[68]

3) Type of transactions required?a) Cash i-Deposit

ii-With drawlb) Cheque / Clearing

c) DD/RTGS/NEFTLimit________________________d) All of the above.

4) What are the facilities you require from a bank?

a) SMS alertb) Internet Bankingc) Investment Servicesd) Door step Bankinge) Fee collection directly by bankf) Other ___________

5) Are your requirements being fulfilled by your bank?

a) Yes b) No-If No

6) If your requirements get fulfilled would you like to open an account in new bank?

a) Yes b) No

7) Mark the product you require among these.

a) Lockerb) Demat Accountc) Car Loand) Loan Against Propertye) Home Loan

[69]

8) Your feedback regarding Bank.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

ANALYSIS

Analysis of Data

Number of Institutes having -

Current account Saving

Account

OD/CC

22 5 2

Average Annual turnover in lakhs -

Below 10 10-25 25-50 Above 50

12 15 3 0

[70]

Requirement of transactions -

Cash Cheque Both cash & cheque All

14 2 9 5

Feedback of customer -

Satisfied Required Complaints

25 3 2

Summary of Findings

[71]

CurrentSaving

OD/CC

0

5

10

15

20

25

Type of A/C

Type of A/C

Graph 1: Type of account Institutes were having.

From the above graph we can see that most of the Institutes are already having the current

account. Among all the Institutes there were some Institutes having the saving account. No

one was having the OD/CC Account in any bank.

[72]

Below 1010 to 25

25 to 5050 & above

0

2

4

6

8

10

12

14

16

Average Annual Turnover (in Lakhs)

Average Annual Turnover (in Lakhs)

Graph 2: Average annual turnover of the Institutes.

The above graph is showing the Average Annual Turnover of the Institutes. From the above

graph we can see that 12 Institutes were having Average Annual Turnover less than 10 lakhs.

There were 15 Institutes having the Average Annual Turnover between 10-25 lakhs. There

were only 3 Institutes having the Average Annual Turnover between 25-50 Lakhs. And no

Institute was having the Average Annual Turnover more than 50 Lakhs.

[73]

CashCheque

Both Cash & Cheque All Above

0

2

4

6

8

10

12

14

Requirement of Transactions

Requirement of Transactions

Graph 3: Type of Transactions Required

Above made graph shows the type of transactions required by the Institutes. We can see that

Institutes require more of cash transactions. There were 14 Institutes doing cash transactions.

Only 2 institutes were doing cheque transaction which shows they require more of cash

transactions. There were 9 Institutes doing there transaction both in cash as well as cheque.

[74]

SatisfiedRequired

Complaints

0

5

10

15

20

25

Feedback

Feedback

Graph 4: Feedback by customers

From the above graph we can see the customer feedback. We can see that 25 customers were

satisfied by their existing bank in which they were having the account. In the complete survey

there were only 3 customers who were requiring the account. Among the surveyed Institutes

there were 2 Institutes who were not satisfied by their bank. They were making the

complaints about their existing bank.

FACTS & FINDINGS

The general awareness about ING VYSYA bank is very low.

All the bank whether private bank or nationalized banks provide the facility of current

accounts, but the amount required to open a current account in nationalized bank is smaller as

compared to private bank.

The bank deals with phenomenon of maintaining the AQB and charge are levied on non-

maintenance of AQB.

It was found that bank usually caters the particular class segment that is for upper middle-

class & upper class customer who can maintain a large balance in their account.

[75]

It was very difficult to convince people about ING Vysya bank and to convince them to open

an account in bank in spite of all the additional services provided by the bank mostly due to

the high charge.

CONCLUSION

The bank offers a wide range of product and services to meet the requirements of varied

customers, as customer satisfaction is their prime concern, they aim at making banking

convenient for their customers by offering services like internet banking, phone banking,

door step banking, ATM services, and as so on, each services & product offered by the bank

is designed for a particular market segment moreover getting along with ING Vysya Bank is

a status symbol for people and really feels proud to be with ING Vysya Bank.

The main focus of the bank in the present scenario is to target only the elite group of

customers and that’s why the bank is charges, and maintenance of Rs 50,000 as AQB in

current account.

Competition

Last Price Market Cap.(Rs. cr.)

Net InterestIncome

Net Profit Total Assets

ICICI Bank 1,054.00 121,396.81 25,974.05 5,151.38 363,399.71

HDFC Bank 2,524.35 117,439.25 19,928.21 3,926.39 277,352.61

Axis Bank 1,263.95 52,059.68 15,154.81 3,388.49 242,713.37

Kotak Mahindra 482.50 35,554.05 4,303.56 818.18 50,850.66

IndusInd Bank 281.45 13,114.73 3,589.36 577.32 45,635.85

YES BANK 321.35 11,155.57 4,041.74 727.13 59,007.00

Federal Bank 454.60 7,772.06 4,052.03 587.08 43,675.61

Karur Vysya 423.70 4,954.75 2,217.69 415.59 21,993.49

JK Bank 847.00 4,106.07 3,713.13 615.20 50,508.15

ING Vysya Bank 330.45 3,998.01 2,694.06 318.65 33,880.24

From the above data we can make easily make out that the share price of ING Vysya Bank is

low as compared to other banks. In terms of market capitalization also ING stands at the

[76]

lowest. It is just ahead of Karur vysya bank in terms of net interest income. The net profit as

well as the total assets of other banks are more than ING Vysya bank.

Balance Sheet ------------------- in Rs. Cr. -------------------

ING Vysya Bank

ICICI Bank HDFC Bank Axis Bank Kotak Mahindra

Mar '10 Mar '10 Mar '11 Mar '11 Mar '11

Capital and Liabilities:

Total Share Capital 119.97 1,114.89 465.23 410.55 368.44

Equity Share Capital 119.97 1,114.89 465.23 410.55 368.44

Share Application Money 2.99 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 2,099.94 50,503.48 24,914.04 18,588.28 6,464.95

Revaluation Reserves 108.02 0.00 0.00 0.00 0.00

Net Worth 2,330.92 51,618.37 25,379.27 18,998.83 6,833.39

Deposits 25,865.30 202,016.60 208,586.41 189,237.80 29,260.97

Borrowings 3,671.39 94,263.57 14,394.06 26,267.88 11,723.95

Total Debt 29,536.69 296,280.17 222,980.47 215,505.68 40,984.92

Other Liabilities & Provisions 2,012.64 15,501.18 28,992.86 8,208.86 3,032.36

Total Liabilities 33,880.25 363,399.72 277,352.60 242,713.37 50,850.67

ING Vysya Bank

ICICI Bank HDFC Bank Axis Bank Kotak Mahindra

Mar '10 Mar '10 Mar '11 Mar '11 Mar '11

Assets

Cash & Balances with RBI 2,329.59 27,514.29 25,100.82 13,886.16 2,107.72

Balance with Banks, Money at Call

697.46 11,359.40 4,568.02 7,522.49 363.26

Advances 18,507.19 181,205.60 159,982.67 142,407.83 29,329.31

Investments 10,472.92 120,892.80 70,929.37 71,991.62 17,121.44

Gross Block 773.73 7,114.12 5,244.21 3,426.49 831.80

Accumulated Depreciation 485.40 3,901.43 3,073.56 1,176.03 406.20

Net Block 288.33 3,212.69 2,170.65 2,250.46 425.60

Capital Work In Progress 207.60 0.00 0.00 22.69 0.00

Other Assets 1,377.15 19,214.93 14,601.08 4,632.12 1,503.33

[77]

Total Assets 33,880.24 363,399.71 277,352.61 242,713.37 50,850.66

Contingent Liabilities 72,851.44 694,948.84 559,681.87 429,069.63 12,291.30

Bills for collection 4,570.43 38,597.36 28,869.10 57,400.80 4,470.06

Book Value (Rs) 185.04 463.01 545.53 462.77 92.74

HIGHLIGHTS: 2010-11 PERFORMANCE HIGHLIGHTS:

Net profit up 31.56% YOY at Rs. 3,186.49 million Deposits up 16.74% at Rs. 301,942 million Gross Advances up 27.76% at Rs. 240,598 million Net NPAs at 0.39% against 1.20% Capital Adequacy at 12.94% ROA at 0.89%

FINANCIAL HIGHLIGHTS:

Net Interest Income(NII) up 8.58% YOY at Rs. 2,683.51 million Net profit up 34.44% year on year at Rs. 913.01 million Market Capitalization of Rs. 38,847.0n5 million as on 31st march 2011

BUSINESS HIGHLGHTS:

The bank has seen robust growth across all segments and key business parameters. Total Deposits increased to Rs.20,498 crores at 31st March 2008 from Rs. 15,419 crores as at 31st March 2007,registering a growth of over 33%

CASA up 24.11% and CASA ratio at 34.64&; up from 32.58%

SIGNIFICANT DEVELOPMENTS:

The bank opened 6 new branches 45 new ATMs and one extension counter was upgraded into a full-fledged branch As of 31st March 2008, the bank had 677 outlets, comparising of 407 branches,30

ECs,28 Satellite Offices and 203 ATMs The bank has received from RBI license to open 56 new branches and 100 off-sites

ATMs.

[78]

SUGGESTION AND RECOMMENDATION

ING Vysya Bank should chalk out some problems to create general awareness regarding its

presence and various services of the bank.

Through this project we can understand the needs and issues, if any, of the customers and

then can maintain a good relationship.

Promotional campaign:

In the era of such stringent competitiveness one has to take care of promotional activities.

It can be done in the following ways

(a) Promotion through customers:

Through motivating the existing customers to get more business can be one of the mode have

greater access or the motivation to the customers can be through any memento.

(b) Reference selling:

Few of the ING Vysya Bank exiting customers specially esteemed ones can be asked to give

reference about relatives, friends. They consider potential customers thus the business

volume can be increased.

Conducting seminars, presentation conferences are one of the most powerful way of

projecting, the banks image and marketing of its products.

LEARNING FROM INTERNSHIP

To know the working culture of the bank

To know the practical application of theoretical knowledge

Learned how to conduct research and also how to make the services

[79]

From this internship, I have learned the experience of the banking industry, this

training will help me in choosing my carrier in banking industry and it was a really a

great experience.

I have learned also how the team work gives effective and good result.

BIBLIOGRAPHY:

Books

IIBF: “Banking Products and Services” Second Edition 2007 Taxmann Publication

IIBF: Basics of Banking

Varshney P.N. Banking Law And Practice 2009

Websites:

www.ingvysyabank.com

www.rbi.org.in

www.iloveindia.com

http://www.moneycontrol.com

www.rbidocs.rbi.org.in

www.wikipedia.com

[80]

http://www.wikipedia.com/

http://www.rbidocs.rbi.org.in/

http://www.moneycontrol.com/

http://www.iloveindia.com/

http://www.rbi.org.in/

http://www.ingvysyabank.com/