project Report

CONSUMER FINANCE [ ]

TABLE OF CONTENTS

PART- ASL NO CONTENTS PAGE NO

1. EXECUTIVE SUMMARY 22. INDUSTRY PROFILE 3-83. COMPANY PROFILE

a) Background and inception of the companyb) Nature of the business carried.c) Vision, Mission, and Quality policy. d) Product/service profilee) Area of operation-Globalf) Ownership patterng) Competitors informationh) Infrastructure facilitiesi) Achievements / awards if anyj) Future growth and prospectus

9-12131415-1616-1717-18181919-2021

4. Mc Kinsey’s 7S Model 22-265. SWOT Analysis 27-286. Learning Experience 29

PART – B1. a) General Introduction

Statement of the problem Objectives of the study Scope of the Study Methodology Limitation of the study

3030313233

2. Data Analysis 34-493. Findings, Conclusions, suggestions and Recommendations 50-524. Annexure 53-54

5. Bibliography and Wibliography 55

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Executive Summary: Consumer Finance has become so much important for every business undertaking that all

managerial activities are connected with it. Consumer Finance viability of various positions

influences decisions on them. Consumer Financial management refers to that part of the

management activity. Which is concerned with the planning and controlling of firm’s consumer

financial resources? It deals with lending and collection of funds for the company. The source

must be suitable and economical for the needs of the business.

This study is mainly focused on Consumer Finance, at over ING VYSYA Bank, Bangalore.

This study is mainly dividing into two parts Part-A part-B.

Part-A contains details about the ING VYSYA Bank in the world and in India, ING VYSYA

Bank profile, Industry Profile of Banking sector, 7S adopted by the company, financial analysis,

competitors of the ING VYSYA Bank, and SWOT analysis.

Part-B It deals with the study of Consumer finance analysis using the comparative financial

statement at ING VYSYA Bank, Bangalore.

Financial system may be defined as set of institutions, instruments and markets, which foster

savings and channels them to their most efficient use. The primary function of the financial

market is to facilitate the transfer of funds from surplus sector to deficit sector i.e. from lenders

to borrowers.

The required data for the study is collected from primary sources as well as the secondary

sources of interaction. The primary data have been elicited through structured and unstructured

interview with the manager and staff (consumer assets dept). The secondary data has been

collected from the published annual reports of the company, the department files and the

brochures.

The consumer financial decision making plays a vital role in an organization. The financial

position and performance of ING VYSYA Bank satisfies most of the requirements of

profitability of the company. The profits are in increasing trend, when compared to the past

record. The consumer finance performance of ING VYSYA Bank is consistently growing over

the period of years .

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PART-A

INDUSTRY PROFILE

History of Banking in India:

Banking in India has its origin from the Vedic. It is believed that the transit in from money

lending to banking must have accrued even before “Menu” the great Hindus Jurist who has

devoted a section of his work to deposits and advances and laid down rules relating to rates of

interest.

In the present scenario, service sector plays an important role in the country. Among service

sector banking is one which plays a vital role in economic development. The liberalization and

economic references allowed banks to explore new business opportunity rather than generating

revenues from borrowing and lending.

The banking industry was regulated by “The Indian banking Regulation Act” of 1949,It defines a

Banking Industry as “Any industry which transits banking business in India”. Banking means

“Accepting for purpose of lending all investment of deposits of money from the public repayable

on demand or otherwise and withdrawal by cheque or demand draft”.

During the mogul period, the indigenous bankers played a very important role in lending money

and financing foreign and commerce. During the days of the East India Company, it was the

turn of the agency houses to carry on the banking business. The general Bank of India was the

first joint stock Bank to be established in the year 1786. The others, which followed were the

bank of Hindustan and the Bengal Bank.

According to Sir John Paget, “No person on body corporate or otherwise can be a banker who

does not take the following:

Deposit accounts

Current accounts

Issue and pay cheques

Collect cheques, crossed and non-crossed, for his customers.

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In the first half of the 19th century the East India Company established three banks; the Bank of

Bengal in 1809, the Bank of Bombay in 1846 and the Bank of Madras in 1843. These 3 banks

also known as presidency Banks were independent units and functioned well. These 3 banks

were amalgamated in 1920 and new bank, he imperial Bank of India was established on 27 th

January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the

imperial bank of India was taken over by the newly constituted State Bank of India.

The Reserve Bank, which is the central, was created in 1935 by passing Reserve Bank of India

Act 1934. In the wake of the Swedish movement, number of banks with Indian Management

were established in the country namely, Punjab National Bank Limited, Canara Bank Ltd.,

Indian bank Ltd. On July 19th 1969, 14 Major banks of the country were nationalized and in 15th

April 1980, 6 more commercial private sector banks were also taken over by the government.

Today the commercial banking system in India may be distinguished into

1. Public Sector Bank:

State Bank of India and it’s associate banks called the state bank group

20 Nationalized Banks

Regional Rural Banks mainly sponsored by public sector banks

2. Private Sector Banks:

Old Generation private banks

New Generation private bank

Foreign Banks in India

Scheduled co-operative Banks

Non-scheduled Banks

3. Development Banks:

Industrial Finance Corporation of India (IFCI)

Industrial development bank of India (IDBI)

Industrial credit & Investment Corporation of India (ICICI)

Industrial Investment Bank of India (IIBI)

Small Industrial development Bank of India (SIDBI)

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SCICI Ltd

National Bank for Agriculture and Rural Development (NABARD)

Export Import Bank of India

National Housing Bank

4. Co-operative Banking:

India is a country where agriculture is still a predominant activity. Our farmers by and large are

poor and usually used to depend on money lenders Indigenous bankers and financiers etc. Till

1951-52 the money lenders were providing 70% of the requirements of farmers and thus

constituted the most important source of rural finance. However the share of Moneylenders in

rural credit was reduced to 49%. This was due to high rates of interest, dishonesty and

fraudulent practices followed by the money lenders.

The cooperative Movement was started in India in 1904 with the objective of providing finance

to agriculturists for productive purpose at low rates of interest and thereby relieving agriculturists

from the chetches of the Money lenders. The co-operative society Act of 1912 contributed to the

establishment of central co-operative banks and the state co-operative banks to provide refinance

to primary credit societies which could not mobilize funds by their own efforts.

The co-operative credit movement made food progress during and after the 1st world of 1914-18,

but during the great depression of 1929-1933, it received a serious setback. With the outbreak of

Second World War of 1939-45, the co-operative credit movement made considerable progress

once again. Since then, the progress has been maintained.

A co-operative bank promotes economic activity and provides banking facilities and service to

the rural people. The significant role of co-operative banks in the agricultural economy imparts a

lesson to commercial banks and dispels from their minds the age old inertia and the gloom of

conservatism by shifting emphasis from credit worthiness of the purpose and from tangible

security to the character of the business.

Co-operative means “ a form of organization where in persons voluntarily associate together as

human beings on the basis of equality for the promotion of the economic interest of themselves”.

So, co-operatives are characterized by voluntary association and open membership, democratic

management, limited interest on capital, education and training equity of distribution of profits

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etc. “Each for all and all for each” is the underlying principle of co-operatives. There are 2

models for co-operatives they are

Raiffeisen Model societies

Schulze Delitzsch model societies

Raiffeisen societies are a type of rural co-operative societies.The main principles of these

societies are:

Restricted membership to rural masses

Limited area of operation

No share capital

Unlimited liability of the members

The management of the society is honorary

Schulze Delitzsch societies are a form of urban credit societies. The main principles of these are

Membership is open to artisans, middle class people

Living in towns and cities

Large area of operation

Limited liability of members

Large share capital

So, co-operative came as an answer to the problem of rural indebtedness which was rampant

through act the country during the later decades of 19th century. It was an official remedy to be

introduced on a voluntary basis, with the principles of self-help, thrift and mutual co-operation.

This was supposed to be the beginning of genuine Indian co-operative movement. So the

objective of co-operative movement is actively implementing socio economic program with the

ultimate aim of uplifting the living standard of economically backward and weaker section of

society.

In 1919 the government of India Act 1919 was passed and co-operation became a state subject.

So, several states passed their own acts for the development of the co-operative movement in

their respective states. Through the co-operative movement in India was born at the beginning of

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century as an instrument of dealing with agricultural indebtness, it was only after attaining

independence that attaining independence that attention was paid in a big way to this issue.

After independence the co-operative movement received added support from Government.

So to sum up, the co-operative movement has made remarkable progress in terms of number,

membership share capital and working capital. The progress of co-operative movement has been

remarkable in the fields of agricultural credit, marketing and supply of farm inputs and

processing.

The Indian co-operative banking system is a 3-tier system. If consists of three sectors.

1. Primary credit societies at the base

2. Central co-operative Societies in the middle

3. State co-operative Banks or Apex Banks at the top.

Primary Credit Societies

It is an association of ten or more persons residing in a particular locality. The funds at primary

credit societies consist of entrance fees, share capital, Reserve fund, Fixed Deposits from

members and non-members and loans from central co-operative banks. The primary credit

societies extend short and long term loans to the members. Generally, loans are given for a

period of 6 months, one year and 2 years. Loans are ordinarily given, on personal security of

borrowers supported by personal security of borrowers supported by personal.

Central Co-operative Banks

The primary credit societies failed to mobilize enough deposits from their members for meeting

their requirements. They were in need for refinance from some agency. So the co-operatives

societies Act of 1912, provided for the establishment of the central co-operative Bank to provide

finance to primary credit societies.

Central co-operative banks are federation of primary credit societies operating in a specific area.

Generally they are located in the district head quarters and some prominent towns of the district.

The funds of central co-operative Banks consist of share capital, reserve funds, deposits from

members and non-members and loans and advanced form state co-operative Banks. Sometimes

they raise loans from commercial banks also.

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State Co-operative Banks

Every state has a state co-operative Bank at the top of the co-operative banking structure. If is

known as Apex Bank as it controls and co-ordinates the working of all co-operative credit

institutions in the state. If is found in the state capital. The table 1.1 shows the co-operative

credit structure in the whole state of Karnataka.

The funds of the state co-operative Banks consists of share capital, reserve funds, deposits from

members and general public and loans from RBI, state Government and commercial Banks.

However loans and advances from the RBI constitute a major part of their funds.

COMPANY PROFILE

2.1 ING VYSYA BANK IN INDIA

In India, ING is present in all three fields of banking, insurance and asset management in the

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form of ING, ING Vysya Life Insurance and ING Investment Management respectively. The

presence in all three fields signifies the importance that the group attaches to the Indian markets

and the group's operations here, as well as its bullish future outlook on the country.

ING 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.

The Origin of ING Group

On the other hand, ING group originated in 1990 from the merger between Nationale –

Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV.

Combining roots and ambitions, the newly formed company called “Internationale Nederlanden

Group”. Market circles soon abbreviated the name to I-N-G. The company followed suit by

changing the statutory name to “ING Group N.V.”.

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 specialisation

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 nonwage benefits, such as pension plans for companies

and their employees.

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

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ING can create value.

The new identity

The immediate benefit to the bank, ING Vysya Bank, has been the pride of having become a

Member of the global financial giant ING. As at the end of the year December 2008, ING's total

assets exceeded 1332 billion euros, employed over 125000 people, served over 85 million

customers, across 50 countries. This global identity coupled with the back up of a financial

power house and the status of being the first Indian International Bank, would also help to

enhance productivity, profitability, to result in improved performance of the bank, for the benefit

of all the stake holders.

ING VYSYA BANK

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

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

Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It

was in the year 1930 that a team of visionaries came together to found a bank that would extend

a helping hand to those who weren't privileged enough to enjoy banking services.

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.

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

1930 Set up in Bangalore

1948 Scheduled Bank

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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.

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

2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of

10.12.02

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

In terms of pure numbers, the performance over the decades can better be appreciated from the

following table:

Year Net worth Deposits Advances : Profit Outlets

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Rs. in millions

Year Net worth Deposits Advances Profits Outlets

1940 0.001 0.400 0.400 0.00 14

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

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 comprises 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.

2.2 NATURE OF THE BUSINESS CARRIED:

ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING

Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank

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with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid

sized asset management company with a retail investor focus. ING Vysya is globally service

provider in banking and insurance sector.

ING Vysya Bank

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

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

Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was in the year 1930.

The last year (2005) was the 75th anniversary or Platinum Jubilee year.

ING Vysya Mutual Funds

ING Vysya Mutual Funds brings with it the vast international experience and professional

expertise of the ING Group. With presence in eight cities across the country, and over Rs.1600

crores of Asset Under Management, ING Vysya Mutual Fund aims to provide investors with the

most practical and secure investment opportunities to invest their valuable savings. This is

combined with a range of innovative options to deliver healthy returns combined with a high

degree of security. Currently, the fund offers four equity, five debt and two hybrid schemes to its

investors.

ING VYSYA life insurance:-

IVL.co private limited entered pvt life insurance industry in India in sep 2001, & in a short span

of 3 & a half years has established itself a distinctive life insurance brand wuth an innovative ,

attractive and customer friendly product portfolio and a professional advisor force. It also

distributes products in close co-operation with the ivb network. Currently it has over 10000

advisors in 30 cities across the country and over 1000 employees.The co has 150000 customers

as on date and achived an income of rs.150 crore in the year ending 31 st dec 2004.Ivl insurance is

a joint venture b/w Ing insurance international, bv a part of Ing group, the world’s second largest

life insurance co.(fortune global 500,2004), Ing vysya bank, with 2million customers and over

400 outlets and GMR industries limited , part of GMR group also based in b’lore and involved in

the field of power generation infrastructure development & several other business.

2.3 VISION & MISSION.

Mission of Ing Vysya :

To build a sustainable competitive advantage by fully integrating compliance risk management

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in daily business activities & strategic planning.

Vision of Ing Vysya bank:

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

ING Vysya bank products

Credit product & structured finance.

Offshore borrowings.

Investment banking, local debt syndication & securatization.

Trade finance & commodities.

Cash management services.

Schedule of service charges on trade finance products & services.

Schedule of service charges on business banking accounts.

Functions of ING Vysya bank

Business compliance.

Regulatory guidelines dissemination & advisory.

Financial economic crime (FEC) & sanctions desk.

policy framework & MIS.

Training & communication.

2.4 PRODUCT SERVICE PROFILE:

Products & services

Personal banking

Savings a/c

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Current a/c

Term deposits

Demat a/c

Personal,home,home equity,nri loans

Pvt banking

Wealth mngmt

Life insurance

Mutual funds

Govt of india & tax savings bonds

NRI services

Credit & debit card

Internet banking

Phone banking

Mobile banking

Self banking

ATM kiosks

Payment services

Business banking

Sme-loans,mpower b’ness a/c

Agri –term & short term loan

Wholesale banking: – cash mgmt services, corporate & investment banking credit products

& structured finance, offshore borrowings, trade & commodity finance.

Special services:- along with the portfolio mgmnt & advisory services we also bring to

clients our banking services which include remittances, deposits, loan against

deposits/mutual funds etc

Loan products

Od facility

Vysdp(depository services)

Smart serve

Internet banking

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Phone banking

Bill payments.

Debit & credit cards

2.5 AREA OF OPERATION:

Global, National & Regional

Global:-

ING VYSYA Bank operating in:

US,

CANADA

AUSTRALIA

AUSTRIA

FRANCE

GERMANY

SPAIN

ITALY

UK

ING VYSYA Bank in retail active in china, india, netherland & also active in central eastern

europe.

ING VYSYA Bank in retail 2 bank in the netherlands & 4th in belgium.

ING VYSYA Bank commercial banking has an international network in 40 countries with key

positions in structured finance & financial markets.

National:-

CONSUMER FINANCE it is operating in 13 locations

Bangalore

Delhi

Hyderabad

Mumbai

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Pune

Chandigadh

Jaipur

Vizag

Chennai

Kolkata

Nagpur

Ludhiana

Regional:-

Ing vysya bank has a total of 677 branches of which there were 407 branches ,39 extensions

counters, 28 satellite offices & 203 atms

2.6 OWNERSHIP PATTERN

Ownership pattern

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

participation.

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

merges with ing.

In sep 2002 ing increased it's stake to 44%.

In oct 2002 ing takes over the management.

In dec 2002 the bank is remained as ing vysya bank. ing & other foregin institutions is

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

Board of directors as on 20-12-2010

ARUN THAYGARAJAN PART TIME CHAIRMAN

SHAILENDRA BHANDARI MD & CEO

ADITYA KRISHNA Director

PHILLIPE DAMAS Director

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RICHARD COX Director

SANTOSH RAMESH DESAI Director

M.DAMODARAN Director

VAUGHN NIGEL RICHTOR Director

PETER HENRI MARIA STAAL Director

LARS KAMER Director

VIKRAM TALWAR Director

2.7 COMPETITORS FOR ING VYSYA BANK

Axis bank.

HDFC bank.

ICICI bank.

Kotak Mahindra bank.

IDBI bank.

Standard chartered.

LIC housing.

SBI.

Duestche bank.

Punjab national bank.

2.8 INFRASTRUCTURE

ING VYSYA Bank head office is situated in bangalore.

ING house contains the board room, offices for senior mgmt and a number of corporate dept's.

the building was desgined to reflectthe image of ING VYSYA innovative and transparent ,

dynamic and sustainable . the open planand glass walls help facilitate communication across

dept's& complement dedication to transparency.

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The ING VYSYA house has a auditorium, a foyer, restaurant, library , conference rooms &

parking spaces.

The total office space is reserved for "flexible"work stations, which give employees the chance

to change their working environment.

2.9 ACHEIVEMENTS

ING becomes 13th largest company in the world compared with last year, ING Group has risen

four places in the Global 500 list of the world’s largest companies. The list is published by

Fortune, the US business journal. At number 13 in the ranking, ING Group is the largest

financial institution on the list, followed by Citigroup and AXA & in terms of revenues and net

profit; ING is now the biggest of the 21 insurers on the list. Over the last 150 years ING group

has grown to become one of the largest life insurance organisations in the world. Today it

touches the lives of over 50 million people across 65 countries.

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

4th largest financial group in the world.

Ranked 9th overall among world top 2000 companies (Forbes 2005).

Operating in 5 continents across 50 countries.

It has 60 million customers.

ING Vysya employees raise 35 lakhs to send 2,500 child workers back to school.

World’s largest financial group in revenues (fortune 500 2006) having presence in over 50

countries & with over 1, 15,000 employees.

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

management.

Total assets of Euro 1,158 billion as on dec.2005.

Ranked no.1 retail fund manager in Asia (Asia asset mgmt dec,2005)

2007 it has been recognized for our public relations by the public relations council of India

in its global meet on corporate communication march 2007.

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

recording solution.

AWARDS:-

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1996 GEM & JEWELLERY EXPORT PROMOTION COUNCIL CONFERRED AWARD

FOR BEST EXPORT PROMOTION.

1998 Won golden peacock award from institute of directors for best HR practices.

1998 International magazine ‘GLOBAL FINANCE’ rated the bank best DOMESTIC

BANK.

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

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FUTURE GROWTH OF ING VYSYA BANK

The ING VYSYA Bank has a great opportunity to drive business growth .the combination of

innovative & ING VYSYA'S reputation for efficient service delivery & customer care puts it in a

stronger position to maximize opportunities & to expand its operations. With a economy of the

country growing at nearly 8% these high growth potential for the bank.

The bank is planning to enable ‘Money Click’ as a payment gateway for shopping that conserves

at areas of business like hotel booking, ticket booking, purchase of goods etc.

ING VYSYA angel broking ink pact for investment services.

ING VYSYA Bank plans to hike base rate in Jan-march says CEO

Angel broking head. Liquidity in share market not a concern right now.

Angel broking head: sensex may top 21000 if liquidity increases.

ING VYSYA Bank CEO aims for FY11 loan growth better vs. industry.

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3. MCKINSEY’S 7-S MODEL

3.1 INTRODUCTION:-

The 7-S model is better known as Mckinsey 7-S.This is because the two persons, who developed

this model Tom Peters and Robert Waterman, have been consultants at Mckinsey and

company at that time. They published their 7-S model in their article “structure is not

organization” in 1980 and in their books “The art of Japanese management in 1981 and in search

of excellence in 1982”

Managers, they said, need to take account of all seven of the factors to be sure of successful

implementation of a strategy- large or small, like a lot of this models there is a good dose of

commonsense in year, but the 7-S framework is useful way of checking that you have covered all

the bases.

Mckinsey & Co’s 7-S Framework provides a useful framework for analyzing the strategic

attributes of an organization. The Mckinsey consulting firm identified strategy as only one of the

seven elements exhibited by the best-managed companies.

Strategy, Structure and Systems can be considered as the “Hardware” of success while Style,

Staff, Skills and Shared Values can be considered as the “Software”.

3.2 MCKINSEY’S 7-S FRAMEWORK

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STRUCUTRE:

The Structure of the organization represents the hierarchy of the organization. It represents the

reporting system of the organization. Thus, organization structure is the pattern of relationships

among various activities and positions. From the structure or organ gram of the organization we

can have clear picture of the responsibility of the personnel working in the organization. It refers

to the differentiation and integration of activities and authority, role and relationships in the

organization. Hence organization structure is the basic framework within which the manager’s

decision-making behavior takes place.

In ING VYSYA Banking structure of the organization represents the vertical hierarchy of the

organization.

Structure of the organization is basically functional where common or homogenous activities are

grouped together. This type of structure is very effective for big organization like ING Vysya.

This ensure specialization, easier control over functions, easier way for pinpointing needs of the

managers and maintaining the relative importance of functions in the organization.

SYSTEM:

A system means all the procedures, formal and informal, that make the organization go day-by-

day, year-by-year.

The organizations is an open system organization because they interact with environment

Computerization System

The developments in Information System are working wonders in all fields of activity. It

becomes possible to send and receive information almost instantaneously. If circular do not reach

the agents on time or doubts are not cleared quickly, or the agent does not have details of new

plans announced in the press, the agents may face awkward situations with the prospects. These

problems can be totally avoided with the use of IT. Insurers traditionally, have been quick to

adapt latest advances in technology. This is happening in the area of IT as well. The extent of IT

application will vary between insurers.

Rapid strides have been made by ING Vysya Bank in the field of computerization Mini-

Computers, Online Computerization of product dispatch and finance and give product details to

customers.

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STRATEGY:

Strategy sets out vision, mission, objectives, major action plans and policies of the entire

enterprises. These set out the picture of the strategy, the SBU strategy and the functional

strategies. This sets out a broad frame work to guide managers at all levels in all functions in

their specific short term objectives.

ING VYSYA’S Mission is “To set the standard in helping our customers manage their

financial future”. To achieve this we aim to be the top new life insurance company in the

market. This does not just mean being the largest or the most productive company in market,

rather it is combination of several things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share.

STYLE:

One element of mangers is how he/she chooses to spend time, another aspect is symbolic

behavior. This suggests a second attribute that is by no means confused to those at top. The style

is a reflection of culture, more then to change the organization or performance.

The ING VYSYA is basically a participating and democratic type of system. Before taking any

decision meeting is conducted and the final decision is taken with the consent of all. Every

employee gets change to five his/her opinion. Every employee can participate in decision making

of the organization. The final decision is taken with consent of all.

The ING VYSYA Bank is a unit has a union body and hence it takes people into confidence. It

does not take any decision unilaterally.

Since every employee’s ideas and opinions are taken by the managers before arriving at a final

decision effective decisions can be taken. Managers are evaluated on the basis of quality of their

decision making. Hence participative and democratic type of a system is the best system for

such a big organization like the ING VYSYA Bank.

SKILL:

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The ING VYSYA Bank is having 8 departments, which has personnel with variety of

skills .They should have the ability to take right decisions. They should manage the personnel

and make then carry out their responsibility.

The ING VYSYA Bank unit has personnel with a variety of skill for different fields they have

personnel with different talents, skills and experience.

It is a participative democratic system so every decision is taken after discussion with the

personnel. Hence the personnel have good communication skills.

A corporate communication department also knows as public relation department is also there in

the ING VYSYA Bank. It takes care in building the image of the organization both by external

communication and internal communication and also having development department. It

increasing strength of the employees and arranging programs.

STAFF:

Organization requires the service of a large number of personnel. These personnel occupy the

various positions created through the process of organizing. These personnel comprises of the

staff of the organization.

Each position of the organization makes certain specific contributions to achieve organizational

objectives. Hence the person occupying the position should have sufficient ability to meet its

requirements. Hence staffing is necessary to match jobs and the individuals.

In ING VYSYA, 15 permanent workers are there and more than 100 agents are there who are

working for company. Agency Manager can manage the Unit Manger, Clerical Staff as well as

Insurance agents.

SHARED VALUES:

Security:

Providing long term financial security to our Customers will be our constant endeavor. We will

do this by offering Variety of products.

Trust:

We appreciate the trust placed by our Customers in us. Hence, we will aim to manage their

investments very carefully and live up to this trust.

Innovation:

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Recognizing the different needs of our customers, we will be offering a range of innovative

products to meet these needs.

Company mission is “To set the standard in helping our customers manage their financial future”

and these are the values that will guide us in this.

The extra-ordinary growth of the direct marketing is the result of many factors. Market

demagnification has result in an ever increasing number of market Niches. Higher costs of

driving, traffic congestion, parking headaches, lack of time, shortage of information so all have

encouraged home shopping. Also, the consumers appreciate the commitments to the customer

service etc.

SWOT ANALYSIS

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STRENTHS:-

Brand name

Huge product Portfolio.

Quality of service and product.

Quality service from the advisors.

Skilled workforce.

Sophisticated software to enable faster and smooth operations.

Strong marketing and distribution channels.

WEAKNESS:-

Complicated process to track for the company.

Customers perceive as just protection benefit rather as a good investment option.

Being a private player, it is difficult for the company to gain customer’s trusts,

concentration being more on quantity of results.

Lack of Co-ordination between the various branch offices.

OPPORTUNITIES:-

Banking is a growing sector, hence creating opportunity for the employee to prosper and

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STRENGTH WEAKNESS

OPPYRTUNITIES

THREATS


grow as individuals.

The Company has an opportunity to expand its business.

Rising life style of people and their increasing income level motivates them to invest

more.

Growing education and awareness level of the people towards Banking.

As its growing sector, the customer has an access to the company whenever he needs.

The changing customers need to create more business opportunity.

THREATS:-

Entry of branded names in the Banking sector, poses a threat to the existing

companies.

Direct investment options available to the customers like mutual funds, etc.

Fraud and Default

Catastrophe’s occurring, as they give rise to claims.

Rise in inflation figures which would lead to increase in interest rates.

Increase in the number of foreign players would pose a threat to the psb as well as the

private players.

LEARNING EXPERIENCE

The training, which I underwent, has provided me a great enhancement to my organization

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understanding, it was on great pleasure for me to do my project in ING VYSYA Bank. During

the period it was totally a new experience entering into the organization. I spent most of my time

in visiting various places Branches, various departments, interacting with people, etc.

In the course of month, I had engaged with the product manager of the company for promoting

the business, the product manager who will work for entire company. She is managing all

activities by advising and managing through the staff. This was a positive response from the

entire staff. It was really a fruitful and great experience working in the organization. Employees

from every corner of the department helped me in getting the required information for the

successful completion of this project.

The environment was so friendly and I did not feel uneasy during the whole training period,

which gave me great deal information and knowledge as to how an organization really functions.

The training provide an opportunity to relate classroom learning with the really if management.

My constant interaction with the management managers, supervisors, staffs, etc, has indeed

widened my horizons of knowledge. Ultimately to say the training period in the company was a

wonderful small time in the huge corporate world. Studying Mckinsey’s 7S Model with respect

to ING VYSYA Bank gave me a great exposure to learn about the organization. I learned about

the working of the organization in the period.

From this report finally I studied about the impact of welfare activities provided by the ING

VYSYA Bank among the employees of the organization. The welfare services to the employees.

But at the same time bonus, retirement benefits, incentives etc. provided by the organization is

not enough to motivate the workers in their work. The institutional training is the best approach

to have extra knowledge on the practical approach of management studies. This training helped

us to understand how an organization and its various department functions.

GENERAL INTRODUCTION:

The conception of the research design plan is a critical step in the research process. The design of

29


the study constitutes the blue print for the collection, measurement and analysis of data. In other

words, the research design is a conceptual structure within which is research is conducted.

Statement of the problem

Public have occupied center stage of our country’s economy policy since independence. As

consequences, any study in the area of financial management of public enterprise becomes

relevant.

Public enterprise in India has been functioning for many years. Many public sectors undertaking

have been become sick and many are performing very well in this globalize market. This

indicates that efficiency in management of public sector undertaking is one of the main factors,

which are critical in their success. Hence this study is made to see how the management of a unit

f a public sector are undertaking is been done. This emphasis of this study will be on financial

management.

Objectives of the study

To study the growth of ING VYSYA Bank Ltd

To study the scheme of ING VYSYA Bank Ltd

To study various types of Loans and Advances in ING VYSYA Bank Ltd

To analyze the effectiveness of different schemes offered by ING VYSYA Bank Ltd

To offer finding, suggestions and recommendations

SCOPE OF THE STUDY

The scope of the study is restricted to the financial statements and profit and loss of the Bank. It

30


is confirmed to the analysis of the financial results.

With respect to change in the economic environment across the globe & also due to paradigm

shift in management education, understanding of business relationship of is very much essential

for building professional managers.

The SUMMER PROJECT, which is strategically framed in the middle of course ,helped me

immensely .It provides an opportunity to expose myself to real bank scenario & gain confidence

with acquiring professional skill.

This study is applicable to entire banking industry as a basis to plan its loan policies its

disbursement & recovery decision.

METHODOLOGY OF STUDY:-

During the course of summer project, the source of information obtained can be classified

broadly into two categories. Primary data and Secondary data.

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Research design is purely & simply the framework or plan of a study that guides the collection &

analysis of data. This research design is to be done before conducting a study. Success of any

research study lies in its research designs. There are three types of deign

Exploratory

Descriptive

Casual

This project is undertaken as per descriptive research design, which is also called exploratory

design. The descriptive study is typically concerned with determining frequency with which

something occurs.

Data are facts, figures, & other relevant materials, past & present serving as bases for the

analysis. Inference based on imagination or guesswork cannot provide correct answer to research

requirements. The relevancy, adequacy of data determines the quality of the findings of a study.

For solving any problem the primary requirement is data. Before conducting the study the

sources of data are to be identified. There are two sources of data

Primary data sources

Secondary data sources

Primary data :- The primary source of data is mainly comprised of the face to face interaction

& discussion with various executives, officers & other staff members of other banks & also in

the organization.

It is a set of 1st hand information gathered originally for the research work. All the required

information of the various types of loans collected from other banks by personally, & all the

information is presented in the report. Then the additional information is also obtained through

by making calls to the all the banks that means through telecommunication.

Secondary data:- The data was obtained through the staff manuals, scale of finance report ,

newsletters, annual reports of all the banks & also through the various other sources like internet,

advertisements etc..

LIMITATIONS OF THE STUDY:-

The study was subjected to time constraints.

Various parameters developed in this study are based on a conceptual understanding of

32


the relative impact of the parameters on the riskiness.

The weights assigned to various parameters may change if the external economic

environment undergoes substantial changes.

The projection figures are estimates based on the past figures and company standard

rates. The study is purely for academic purpose.

Conclusions are drawn on the basis of limited data available.

The data collected is more of secondary information.

The study is conducted mainly on the basis of collection of data provided by the

company.

Consumer Finance

Definition : - The division of retail banks that deals with lending money to consumers. This

includes a wide variety of loans, including credit cards, mortgage loans & auto loans & can also

be used to refer to loans taken out at either the prime rate or the sub prime rate.

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In other words: - A financial institution that specializes in providing loans directly to consumers

who are unable to secure bank loans. A consumer finance company generally charges higher

interest rates than a bank.

PRINCIPLES OF SOUND LENDING

As per the Banking Regulation Act 1949, banking means accepting for the purpose of lending or

investment of deposits of money from the ‘public’.

From the above, it is evident the major portion of bank’s funds is employed by way of way of

loans and substantial parts of bank’s earned from interest and discount on the funds so lent.

Hence the banks shall a few cardinal principles of sound lending while appraising an advance

proposal in order to minimize the risks of becoming irrecoverable and bad.

1) SAFETY: When a bank lends the depositor’s money, he must feel certain that the advance is

safe I.e., the money will definitely come back. The repayment of the loan depends upon

borrower’s (a) Capacity to pay (b) Willing to pay (character) (c) Capital. It means that the

barrower should be capable of enterprising either in business or depends on the honesty,

character and integrity of the borrower. He should feel sense of responsibility for

maintenance of the asset and for repayment. Hence bankers insist for barrower’s capacity in

the form of margin.

2) LIDUIDITY: The bulk off bank deposits is repayable on demand or at short notice to the

depositors. If the banker lends a large portion of his funds to barrowers from whom

repayment would be coming lending in but slowly, the ability of the banker to meet the

demands made on him would be seriously affected. Hence care should be taken whole

selecting the barrowers, so that the money is employed by the barrower for short term

requirements and not in the schemes, which take a long time to pay their loans.

For ex: loans against mortgage of building and lands are safe but the recovery has to be

made through a court process which takes a lengthy period and liquidity gets affected.

1) PUREPOSE: Banks should lend to the productive oriented activities only so that it provides

a definite source of repayment to the barrower. Banks are not supposed to lend to the

barrowers who involves in unauthorized hording of and for speculative activities. Banks

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discourage extending finance to the anti social elements like smugglers, thieves and

encourage finance to the income generated activities only.

2) NATIONAL OBJECTIVES: Credit facilities extended by the banks should be in

conformity with the national interest and suitability of the needs of people.

Ex: banks are instructed to extend their finance to the agriculture, SSI and to various anti

poverty programs to augment the agriculture production and to meet the social objectives.

1) SECURITY:

Security is considered as insurance or a cushion to fall back upon in case of an emergency.

a) Marketable: The security obtained should be easily and readily marketable. All the

costly securities can’t be considerable as good securities. For ex: pearls or diamonds or

palatial bungalows are not considered as good securities they appeal to only a small

section of society have a limited market.

b) Accessibility: the value of security should be easily accessible. The banker need not

refer to an expert to value a security. For ex: the value of food grains, oil seed etc, Can

easily known, but the value of painting by old masters and highly specialized machines

needs to assistance of experts.

c) Recoverability: the cost of the security should be easily recoverable when it is sold. It

means the sale proceeds of security should come back quickly without much delay.

d) Transferability: The title of security should be easily transferable whenever occasion

demands. Ex: shares can easily transferable to the lands and buildings.

e) Insurable: The security should be insured without any objection from insurance

companies and not at higher premium rates. Ex: stocks of matchboxes and petroleum

products will be at a higher premium rate.

f) Storability: The security should be capable of being stored in a godown so that it can

be safely kept, easily supervised and quality should not get deteriorate, perished or

destroyed. Ex: Iron ores near mines, films which need air conditioned godown and

patent medicines with expiry date are not considered as a good security.

g) Stability: The security should be stable in value without much fluctuation over short

periods. Commodities like pepper and yarn are prone to heavy fluctuation and accepted

as a security only with a higher margin.

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h) Transportability: The security should be easily transportable from one place to

another in case of sale as a per the market demand Ex: heavy machinery and Iron

girders are not easily transportable.

i) Ascertainably: the title of the security should be easily ascertainable, undisputed and

clear for ex: while taking the property of a JHF, care should be taken to ascertain all the

claimants of the property.

j) Yield: If a security is a source of some steady income, it is considered desirable as it

affords an automatic source of repayment of loan wholly. For Ex: high marketable blue

chip shares on which substantial dividend is regularly receivable and shops/ godown

which the banks keep a margin.

k) Margin: Margin on securities is also maintained as a cushion against fluctuations in

value of securities. In case of forced sales, the security may not sell for its full value

and hence the banks a margin.

l) Acceptably: The security offered by the barrower should be acceptable to the banker.

The securities, which are hazardous and ruins the communal harmony of the country,

should be avoided Ex: ammunition like pistols, bombes etc.

m) Durability: the security should be reasonably durable for ex: perishable articles/goods

like vegetable, fruits and mutton which are may not be suitable securities unless

otherwise stored in refrigeration.

n) Safety: The security should be free from the risks of theft and fire ex: goods loan on the

stocks of matchboxes is not considered as safe.

1) SPREAD: An element of risk is always present in every advance. Hence the

diversification of funds is essential. Banker should be keen in spreading the risks

involved in lending over a large number of barrowers, over a large number of advances

and over different types of securities. For ex: if bank has advanced, too large a portion of

his funds against only one type of security he will run a big risk if that class of security

steeply depreciates.

PROFITABILITY:

Banking is essentially a business which aims at earning a good profit. Banks must deploy their

funds in such manner, so as to earn profits out of which to pay interest to the depositors and to

36


meet the establishment charges. But the banks should not sacrifice the other principles of sound

lending for the sake of profitability.

CONSUMER FINANCE DEALS WITH AS FOLLOWS :

Home loan

Home equity loan

Loan against commercial property(CLAP)

Auto loan

Personal loan

1. Home Loan:-

Getting home loans to purchase a house at our projects is an absolutely hassle-free endeavor. The

company today has become a trusted entity for all Banking Institutions and Housing Finance

Companies. Since the banks support only genuine ventures with clear titles, getting home loans

to purchase a house at our projects is an absolutely easy job.

Our growing list of satisfied customers, who secured home loans to purchase houses in our

projects, stands proof for this.

We have also associated with some banking institutions for home loans; the executives from the

Banking Institutions will come and assist you in getting a home loan sanctioned within a short

time.

To learn more about home loans, read on:

There are many financial institutions like Banks and Housing Finance companies which offer

home loans to purchase a new home or a flat. But you might be wondering about the following:

What are the eligibility criteria for a Home Loan?

Simple, to qualify for a home loan, most lending institutions in India require you to be:

An Indian resident

Above 21 years of age at the commencement of loan

Below 65 years when the loan matures

Either salaried or self employed

Nationalized banks offer loans to NRIs too.

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What are the standard norms for acquiring a home loan?

Securities required: In most cases the property to be purchased becomes the security and is

mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for

additional security such as life insurance policies, FD receipts, share or savings certificates.

Guarantors:

Some institutions ask for 1 or 2 guarantors, others require no guarantors at all.

Applying for loan:

Loans may be applied before or after selection of a property. The loan amounts are sanctioned in

principle to help buyers know what amounts they can avail of. This lets them decide their

budgets and purchasing power. Actual disbursements are made after satisfactory verification of

all necessary documents and completion of specific procedures.

Documents required at the time of application

Latest salary slips (proof of income for salaried individuals)

Photographs

Proof of age

Identity papers

Proof of residence

Bank statements for the previous six months

For self employed, certified copies of balance sheet, profit and loss statement and tax challans

for the previous 3 years For partnership/private limited companies, the Articles of Association,

partnership deed and details about the firm loan limit Usually most financial institutions give up

to a maximum of 85% of the cost of the house. The other 15% sometimes called 'seed money'

will have to be provided by the applicant. Various factors like age, income, no. of dependents,

monthly expenses and repayment capacity will be considered for the eligibility of the loan

amount. This varies from case to case.

Rate of Interest:Interest rates are different from institution to institution and generally range from about 8.5% to

around 16%. The interest on home loans in India is usually calculated either on monthly

diminishing or yearly diminishing balance method. The interest rates have two options - Floating

38


rate of interest and fixed rate of interest.

Monthly diminishing:

In this system the principal on which you pay interest diminishes every month as you pay your

EMI.

Annual diminishing:

In this system the principal is reduced at the end of the year, thus you continue to pay interest on

a certain portion of the principal which you have actually paid back to the lender. Which means

the EMI for the monthly diminishing system is effectively lesser than the second system of

calculating interest.

Floating rate Interest:

In this option the interest rate varies from time to time depending on prevailing interest rates in

the market.

Fixed rate of Interest:

In this option the interest rate is fixed till the total loan amount is repaid.

Loan amounts vary from institution to institution and usually range from Rs.1 lakh to 1 crore.

Repayment period options range generally from 5 to 15 years.

For loan sanction:

Salaried Customers Self Employed Professionals

Self Employed Non Professional

Application form with photograph duly signed by all applicants

Identity, residence and age proof

PAN card copy of the main applicant

Last 3 months Salary-slips

Education qualification certificate and proof of business existence

Form 16 / Income Tax Returns

Last 3 years Income Tax Returns with computation of Income Business profile

Last 6 months bank statements

Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Last 3 years Income Tax Returns with computation of Income

Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Processing fee cheque Last 6 months bank statements

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Last 6 months bank statements (self and business)

Processing fee cheque Processing fee cheque

HOME EQUITY LOAN

A home is more than just a house. It is the sum total of your dreams, aspirations and the love that

binds your family. Sometimes, there are situations that demand finance on a large scale – like

when your children get married, go abroad for higher studies, when you need to provide medical

care to your aged parents, fulfill any business need or any other exigency.

At these times, you decide to leverage your house as equity for raising a loan. We understand

your need to support your family and look towards their well-being.

Eligibility:

Resident Indian citizens can apply in their individual capacity: -

Salaried employees aged 23 and above on application; and aged 60 or retirement age,

whichever is sooner, at loan maturity

Self-employed professionals and businessmen above 25 years of age and aged below 65

years, at loan maturity.

Min. Net Monthly Income: Rs.10,000/= per month

Min Loan Amount of Rs. 5 Lacs and Max Loan Amount Rs. 200 Lacs in all metros,

Bangalore, Pune and Chandigarh.

Customers located in all other cities where the bank provides Home Equity Loans can avail

up to Rs. 1 crore.

PROPERTIES AND EXTENT OF FINANCE:

Allotted by Government.

Approved by Government (initially developed and sold by Registered

House Building Cooperative Society or Private Developer of repute).

Government Bodies include Urban Development Authority /Corporation/ DTPA

(District Town Planning Authority)

Fees:

Processing Feeupto 1.50% of the loan amount applied for and will be collected at the time of application.

40


Prepayment Charge 2% of amount prepaid.

Foreclosure Charge 2% of the outstanding balance.

Security for the Loan:

Mortgage of property by deposit of title deeds or as per the

Existing guidelines.

Guarantor wherever applicable.

Supporting Documents:

Documents required at the time of Application

Application form duly filled in along with the processing fee cheque.

One passport size photograph of the applicant/co-applicants/guarantor in

Addition to the photograph affixed to the application form and signed across.

Identification & Signature Proof: - Valid Passport/PAN Card/

Photo Driving License /Photo Credit Card of a Scheduled Commercial Bank/

Photo ID Card of Professional Councils, Government/PSU/Private Ltd., Companies/Banker's

Verification/Photo Ration Card/Photo Election ID Card.

Proof of Residential Address Passport/Voter's ID Card/Driving License/Ration Card/Telephone Bill / Gas

Bill / Power Bill / Rental Agreement/

Insurance Premium Receipt.

Signature Verification certificate from the Bank on which PDC's will be given.

Proof of Date of Birth e.g., Birth Certificate/Passport/PAN Card/

Driving License/SSC Marks List/School leaving certificate/Insurance policy schedule.

Income Documents for Salaried Individuals:

A brief write-up on the profile of business covering the nature of business

activity, number of years in business, products / services, infrastructure,

number of employees, branch network, if any, suppliers, distribution,

Buyers/clients, performance highlights, future business plans and assets.

41


Income Tax Returns for the past 3 years duly certified by a Chartered

Accountant and duly acknowledged by IT authorities.

Certified copies of Audited Balance Sheets and Profit & Loss account

statements for the previous 3 completed financial years,

Wherever necessary.

IT Assessment Order for financial years for which assessment has been

Latest completed.

State Sales Tax /Central Sales Tax Registration No. or any other certificate

for licensing business

Photocopies of Advance Tax payments.

SOA (Statements of Account) of the Salary / Business account for the last 6 months from where PDCs

will be issued.

Any other document that may be required by the bank

Min.3 months' pay slips starting with the Latest Pay Slip duly authenticated

by the Employer (the above to clearly indicate the breakup of Gross Earnings, Deductions and Net

Salary).

Form No.16 with clear computation of income.

Bank statement for the last 3 months, which is not older than 28 days from

The date of login. At least 3 Salary credits to be evidenced in the

Bank Statement.

Bank Account Statements for all applicants for the last 3 months.

6 months in case of self employed businessmen & professionals.

(From where PDCs will be issued).

Credit Card Statements of all applicants for the latest month.

Loan account statements of all other existing loans.

Any other document that may be required by the bank.

CLAP (Loan against commercial property)

CLAP means loan against the commercial property the loan is given against

Factories Petrol pumps

Industrial property Garages

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Bars Lottery centre

Restaurants Video parlors

Schools and colleges Beauty parlors

Library

Under construction property

Hospitals

Properties standing in the name of the 3rd party

Properties with more than 5tenants.

Expand your business

No longer do you have to stifle your creative ideas. With funds at your disposal, you can now expand

your business without hesitation.

Consolidate your existing debts

Pay off all your existing loans with a LAP to liberate yourself from the hassle of multiple EMI’s.

Get your child married

Put aside all your monetary worries and celebrate your child’s wedding with pomp and splendour. Meet

all your expenses with ease—when you take an ING VYSYA Bank Loan Against Property.

Send your child for higher studies

Education is the cornerstone of your family’s progress. With a Loan Against Property, you can empower

your son or daughter to grow into an outstanding achiever.

Renovate your home

When you decide to renovate your home, you want to do it in style. With ING VYSYA Bank's Loan

against Property you will not need to cut corners. Effortlessly redo your home to match your dreams.

Duly Completed Application Form

Photograph

Fee Cheque

Photo Identity Proof

Signature Verification Proof

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Residence Address Proof

Property documents as required

Document specific for Salaried

Last 3 months Salary Slip

Form 16

Bank Statement for last 6 months from Salary Account

Repayment details on any existing loans / Loan closure letter

Document specific for Self Employed

Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss

Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for

business and personal of partners/directors)

Bank Statement for last 6 month from operating account

Repayment details on existing loans / Loan closure letter

Board Resolution in case of a company

Proof of existence of the business entity

Office Address Proof

Personal loan:-Features and benefits

Borrow up to Rs 15,00,000 for any requirement like purchase of Consumer

Durables/marriage/Education/travel/family function/business expansion/home

improvement or purchase of property etc.

Flexible Repayment options, ranging from 12 to 60 months.

Choice of Repayment through PDCs, ECS or Standing Instructions.

Low Interest Rates.

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Hassle free loans - No security/collateral required.

Speedy loan approval.

Convenience of service at your doorstep.

Salaried Individuals

Eligibility criteria Minimum age of Applicant: 23 years

Total of 3 year's overall work experience

Net Salary of Rs 1,80,000 per annum

Documents required

Latest passport size photograph

Latest 2 months salary slip

Appointment letter/s or Form 16 as proof of experience

Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card)

*ID proof /signature verification to be done by Banker if the none of the above is

available Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving

License etc) Latest 6 months bank statement with Salary Credits

Self employed professionals and Non Professionals

Eligibility criteria

Minimum age of Applicant: 23 years and 25 years for Non Professionals

Minimum three years' experience in their current business

Minimum Gross Annual Income of Rs 1,50,000

Documents required Latest passport size photograph

Latest 2 years ITR with computation of Income, CA certified P& L , Balance Sheet Firm’s/Company’s Financials, Board Resloution, Partnership deed, copy of MOA and

45


AOA wherever applicable

Proof of Business- ITRs/ License under Shops and Establishment Act/ Sales Tax

Receipt/Import

Export Code from RBI

Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card)

*ID proof /signature verification to be done by Banker if the none of the above is

available

Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving License

etc)

Latest 6 months bank statement

If you have a Personal Loan from any other Bank/Financier , You can save substantially by transferring the Loan to us.

Top Up Loans

If you are an existing IVBL Personal Loan customer You can avail additional Loan at attractive interest rates based on your payment track.

CASA Loyalty Program

If you are an existing Savings Account/Current Account customer you can avail a Personal

Loan from us based on relationship.

AUTO LOANS

Turn your dream into reality. Own that new car you have always desired, with a little help from

us. We offer loans up to 90% of the ex-showroom price of the car. Our interest rates would

pleasantly surprise you. What's more, you can take up to 5 years to repay the loan.

Worried about paperwork? Relax. The process for getting a loan involves only a few simple

steps and we will tailor-make the loan to suit your needs.

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Pick your choice.

L Loan on the Strength of Your Income: Submit income proofs as required and avail finance up

o to 90% of the ex-showroom price of the car.

Car Loans with Fixed Interest Rates: ING VYSYA Bank offers new car loans with fixed rate option only.

Salaried Individuals

Eligibility Criteria:

Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 58 years Minimum employment: 1 year in current employment and minimum 2 years of

employment Minimum Annual Income: Rs 100000 net annual income Telephone: Must at residence

Documents required:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated, Recent, Legible)

Income Proof: - Latest salary slip with form 16. Address Proof: - Ration card/Driving license/Voters card/passport copy/telephone bill/

electricity bill/Life insurance policy PAN Card. Bank Statement:- Not mandatory

Self Employed


Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 65 years Minimum employment: At least 3 years in business Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a.

for mid-sized and premium cars Telephone: Must at residence

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Documents required:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated, Recent, Legible)

Income Proof:- Latest ITR Address Proof:- Ration card/Driving license/Voters card/passport copy/telephone bill/

electricity bill/Life insurance policy PAN Card Bank Statement: - Waived for small cars, for mid - sized and premium cars if income Is

greater than Rs. 1.5 lacks then bank statement requirement can be waived.

Partnership Firms


Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars

Minimum turnover: Turnover Rs. 4.5 lacks Telephone: One phone at least at business and at residence of the loan executing partner

Documents required:

Proof of Identity:- NA Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and

the latest 2 years IT returns of the company Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act

certificate/SSI registered certificate/Sales Tax certificate Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is

greater than Rs 1.5 lacks then bank statement requirement can be waived

EX-Showroom pricing: ING VYSYA BANK provides up to 90% of loans for new cars.

Fees and Charges:

Processing Fees: Up to Rs.5, 000 + service tax.

Foreclosure charges: 5%

Tenors: 5years

Min. loan amount: Rs.1, 00,000

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Max. loan amount: Rs.15,00,000

Findings:

The ING VYSYA Bank Ltd provides various types of Loans and Advances like personal

loan, housing loan, car loan, home equity loan, CLAP etc.

All the above stated loans come with certain attractive interest rates, service charges and

margin. ING VYSYA BANK provides loan after the individual satisfies all requirements

like, his eligibility and appropriate purpose etc., certain required papers like proof of

identity, proof of income; proof of residence, bank statement should be for granting the

loan.

Personal segment advances was a high priority because it offers sustained credit growth

with reasonably good returns and ensures dispersal of credit risk.

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With a view to build customer friendly features into housing loan products and to bring

about a fair amount of flexibility in key terms and conditions of the scheme a new product

Special counters for sanction of education loan were setup in important study centre in order

to give special emphasis on education loans.

The bank is actively participating in increasing credit linkage to Self Help Group.

Conclusion

From the above summary of findings, the following conclusions are drawn:

Introducing attractive, innovative-new loan schemes.

The loans and advances and also the interest received have increased, thus it shows good

banking in loans and advances.

The public are satisfied and happy with loans and are also willing to borrow from the

bank.

The overall performance of the bank is good when looked into various other items,

Unnecessary operating expenses. The borrower can choose either fixed or fluctuating

interest rates which is a great advantage to the borrower.

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The sanctioning of loans at least one month’s time, this may reduce the number of

borrowers in the future.

From the different advances made to priority sector in past three years from which it can

be concluded that the bank is more focusing on agricultural and personal loan.

Suggestions and recommendations

Considering the analysis and other details the following suggestions can be given.

The bank should try to sanction the applied loan amount by less than one month’s time,

so that it will increase its income as well as a good morale of the bank in the minds of

the people

.

The bank can provide loans at attractive and cheaper rates when compared to the other

public and private sector banks.

The bank can provide the borrowers with flexible EMI and interest rates.

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The managers in all ING VYSYA Bank branches have to be made responsible for

recovery so that the bank never makes loss.

The newly introduction loan and deposit schemes should be made aware to the public

so that they come forward to borrow the loans.

The profits of the bank can be raised by more effectively utilization of assets and by

reducing the expenses.

ANNXERUES:-

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LIST OF BANKS

AXIS BANK

HDFC BANK

ICICI BANK

IDBI BANK

STANDARD CHARTERED

SBI CITI BANK

DEUTSCHE BANK

PNB

FOR HOME LOANMIN LOAN

RS.1lakh

RS.1lakh

RS.2lakh

RS.1lakh

RS.1lakh

RS.1lakh

RS.1lakh

RS.2lakh

RS.1lakh

MAX LOAN

RS.50lakh

RS.1crore

RS.1crore

RS.75lakh

RS.5crore

RS.5crore

RS.7.5crore

RS.5crore

RS.1crore

AGE NORMS

25-55years

24-55years

254-65years

25-65years

23-65years

25-55years

24-65years

23-65years

25-55years

FOIR 45%-50%

50% 60% 45% 40% 35%-40%

55% 50%-60%

60%

TENNURE

25years 25years 25years 25years 25years 25years 25years

25years 2

5YEARS

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PROCESSING FEE

1% 0.50% 0.5%+service tax

0.5% of loan amount

0.5%-1.5% depending on loan

0.5% of loan amount

1% of loan amount

1% of loan amount

0.50%

FORECLOSURE CHARGES

2% 1.50%% 2% 2% 2% 1% 2% 2.50% 2%

PART PAYMENT CHARGES

25% of loan amount

50% of principal

4 times in a financial year

25% of principal

6 times in a financial years

40% of principal

75% of principal

RATE OF INTERESTSALARIED

9.25% 9.75% 9.50% 9.50% 10% 8.5%for the 1st year

9.75% 9.75% 10.50%

SEP 9.50% 10% 9.75% 10% 10.25% 9.25% for 2nd & 3rd year

10% 10.25% 10.50%

SENP 9.50% 10% 9.75% 10% 10.50% 9.75% from 4th

year onwards

10.25% 10.50%

GRP FOR SEP

no no RS.1,50,000.pa.

no no no no no no

MIN INCOME CRITERIASALARIED

RS.1,40,000.p.a

RS.1,20,000.p.a

RS.18,000.p.m

RS.1,50,000.p.a

RS.15,000.p.m

RS.1,40,000.p.a

RS.1,00,000 or above

RS.5,00,000.p.a

RS.1,20,000.p.a

SEP RS.1,40,000.p.a

RS.20,000.p.m

RS.1,50,000.p.a

RS.1,50,000.p.a

RS.2,00,000.p.a

RS.1,40,000.p.a

RS.1,00,000 or above

RS.5,00,000.p.a

RS.1,50,000.p.a

SENP RS.1,40,000.p.a

RS.20,000.p.m

RS.1,50,000.p.a

RS.1,50,000.p.a

RS.2,00,000.p.a

RS.1,40,000.p.a

RS.1,00,000

RS.5,00,000.p.a

RS.1,50,000.p.a

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or above

NO INCOME PROOF

no no no no no no no no no

LAND LOAN

no yes yes yes no yes yes no yes

MAX LTV

80% 85% 85% 90% 90% 80-85% 75%-80%

80% 80%

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P/L A/C for the year ended 2010

Particulars FY 10 FY09 Variance

Net int. income 829.8 649.6 28%

Other income 620.2 547.7 13%

Total income 1450.1 1197.3 21%

Staff exp’s 428.9 392.2 9%

Other exp’s 379.3 380.2 0%

Total exp’s 808.1 772.5 5%

Opt. profit 642.0 424.8 51%

Provisions 270.4 130.2 108%

PBT 371.5 294.7 26%

Taxes 129.3 105.9 22%

N/P 242.2 188.8 28%

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Balance Sheet as on 31st march 2010

Particulars As on 31st march2010 As on 31st march 2009 Variance %

Capital & Reserves 2.331 1.703 37%

Deposits 25,865 24,890 4%

Borrowings 3,671 2,152 15%

Other liabilities &

Provisions

2,013 3,112 4%

Total liabilities 33,880 31,857 6%

Cash inter bank etc 3,027 2,282 33%

Investment 10,473 10,496 0%

Advances 18,507 16,751 10%

Fixed & other assets 1,873 2,329 20%

Total Assets 33,880 31,857 6%

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BIBLOGRAPHYSl.no. Author Name Book Name Edition Contents Year of

Publication1 Shashi.K.Gupta Financial

ManagementKalyani Publication, New Delhi

Theoretical background of the topic

2004

2 C.R.Kothari Research Methodology Methods and Techniques

Vishwa Prakashan

Design of the study

2002

Reports:

Annual Reports of ING VYSYA Bank ltd.

WIBILIOGRAPHY:

www.INGVYSYABank.com: Company Profile, Background and Inception of the company, Product/service profile and nature of business carried.

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http://www.INGVYSYABank.com/

project Report

Documents

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