Assistance to Mining Sectors by ING VYSYA Bank

8/12/2019 Assistance to Mining Sectors by ING VYSYA Bank

1/91

EXECUTIVE SUMMARY

TITLE OF THE PROJECT:

A Study of Assistan! to Minin" S!to#s $y I%& VYSYA 'an(

Ltd) in '!**a#y +ist#its,-

I%TRO+UCTIO%

The banking industry has undergone tremendous changes in the past 100 years also and

our country is no exception to it. Even in our country the development of the banks is

characterized in different phases and each phase is distinct from the other. The banks have

played an important role in the economic development of the society at large and the country in

particular. In the modern days the banks have taken an important position in the economic

development and such is the position that the banks have become the indicators of the growth

and development of any countrys economy. In case of any crises! which may happen in the

econo"financial field first casually! are the banks because of the intimate association with thedevelopment and the very nature of the asks associated with the nature of financing and

banking.

#ellary district forms one of the important worthier districts of $arnataka and is

situated almost in the center of the state. The geographical extent of #ellary district is 10%&'

kms the district is elongated in a ()"*E direction the greatest length being 1+, km. The

district is bounded in the worth of -aichur district! in the west by harwar district and

/hitradurga district in the (outh. n the eastern border of the district is bound by nanthapur

and $uruwol districts of ndhra 2radesh.

The district extends over an area of 3!+3+ s4.km and comprises + taluks viz.! #ellary

(audur! 5ospet! (iruguppa! 5agaribommavahalli! $udligi! 5arapanhalli and hadagalli.

SIT.P&+MS) Tu/(u# 1


2/91

The district is well served by a good network of roads. The important rail heads

catering to the iron the movement at present are #ellary! Torangallu! 2apinayakanahalli!

5ospet! (wamyhalli and 6ashwanthanagar.

Min!#a* #!sou#!s:

The important mineral resources of #ellary district are7

18 9etallic7 Iron ore! manganese ore! red oxide! gold copper and lead.

%8 *on"9etallic7 ndalusite! asbestos! corundum clay! dolomite gypsum! limestone! lime

kaukar moulding sand! 4uartz! soapstone! red ochre.

'8 9inor 9inerals7 rnamental pink and grey granite! granite building stone and sand.

The iron and manganese ores form the principal mineral resources of the district.

So0! fo# %!1 Indust#i!s

review of the mineral resources of the district suggests the scope for the

establishment and the development of the following industries7

18 :arge to medium scale steel plants

%8 9ini steel plants

'8 ;erromanganese plants

lass factory

,8 (tone polishing units

+8 9anufacture of soil conditioners using clay and $aulcae

O$2!ti3!s of t4! Study

1. (tarting with the brief principles nature and the significance of the management in the

banks.

%. ?nderstanding the moralities and formalities involved in financing to mining sectors.

SIT.P&+MS) Tu/(u# %


3/91

'. ?nderstanding the performance of mining sectors undertaken by a lending institution

@IA#: in particulars8 addressing both the 4uantitative and 4ualitative aspects.

A6(6 #ank :td.! in

#ellary istrictD! involves vast coverage of issues and components. To study two proBect in its

entirely involves more time expertise and in depth knowledge of banking functions which

should not be expected at this learning stage. Thus with the limited knowledge! sincere efforts

have been made to evaluate the key elements of each type of approach taken and discussed how

these processes may! overtime! can evolve into a well"defined range of sound practices.

18 (cope of the study covers the process assistance to mining sectors.

%8 It also covers the performance of mining sectors assisted by the banks.

'8 It covers a comprehensive study of the credit proposals received and approved by the

bank.

R!s!a#4 M!t4odo*o"y:

18 This report is prepared with the help of primary and secondary date.

%8 Extensive study of literature on building strategy! lending decisions and working capital

finance to develop a broad framework.

'8 iscussion with the key personnel in (9E and also from each of the (#? to get a real

fee of how the financing is done and to understand the nature and complexity of each of

these proposals.

eology

epartment in #angalore F #ellary.

&8 #y preparing 4uestionnaires and survey.

SIT.P&+MS) Tu/(u# '


4/91

Li/itations of t4! Study

18 :imitation of knowledge regarding building operations. s this was the first time! I was

exposed to practical banking process scenarioG it was not possible to know all the issues

and information involved in the assistance to mining sectors.

%8 :imitation to gather all the relevant information7

s a trainee in the bank it was not possible to access all the important documents and

circulated of the bank as they are confidential and used not be disclosed to the outsiders.

s result the bank specific information could not be collected.

R!o//!ndations:

18 In the process of assistance to mining sectors all the branchesHoffices has to play an

active role by sending monthly and 4uarterly report within the stipulated time.

%8 The bank has to go for securitization of mining accounts! which are not performing

well.

'8 The bank has to carefully analyze the individual sectors for which they are providing

loans.

Con*usions:

In this study! an effort is made to understand the process of financing to mining sectors

carried on by different banks in comparison with I*> A6(6 #ank :td.

SIT.P&+MS) Tu/(u#


5/91

A &ATE5AY TO I%+IA% 'A%6I%&

ne of the classical economic functions of the banking industry that has remained

virtually unchanged over the centuries is lending. 5owever there have been considerable

changes in the institutional structure and the economic environment brought about by

heightened competition and technological changes. n the one hand! competition has had

considerable adverse impact on the margins! which lenders have enBoyed! but on the other hand

technology has to some extent reduced the cost of delivery of various products and services.

In the Indian scenario the first few decades of independent India witnessed regulated

banking environment with administered interest rate structure! which was inevitable in a

resources scarce scenario. 5owever with the situation radically changing for the better in thesecond half of the past decade most of the regulatory prescriptions have either been withdrawn

or considerably diluted. )ith further liberalization on the horizon! as the country moves

towards greater integration with the global economy the competitive environment that banks

and financial intermediaries are functioning can be expected to become more severe. The days

ahead can be expected to brink further innovations in the area of financial intermediation.

#ank is a financial institution that borrows money from the public and lends money to

the public for productive purposes. The Indian #anking -egulation ct of 13


6/91

2rovides safety and security to the surplus money of the depositors and as well

provides a convenient and economical method of payment.

#anks provide convenient means of transfer of fund from one place to another.

5elps the movement of capital from regions where it is not very useful toregions where it can be more useful.

#anks advances exposure in trade and commerce! industry and agriculture by

knowing their financial re4uirements and prospects.

#ank acts as an intermediary between the depositors and the investors. #ank

also acts as mediator between exporter and importer who does foreign trades.

The Indian banking has come from a long way from being a sleepy business institution

to a highly proactive and dynamic entity. This transformation has been largely brought about

by the large does of liberalization and economic reforms that allowed banks to explore new

business opportunities rather than generating revenues from conventional streams @i.e.!

borrowing and lending8. The banking in India is highly fragmented with '0 banking units

contributing to almost =0 of deposits and &0 of advances. Indian nationalized banks @banks

owned by the government8 continue to be the maBor lenders in the economy due to their sheer

size and penetrative networks which assures them high deposit mobilization. The Indian

banking can be broadly categorized interest nationalizedG private banks and specialized banking

institutions.

The growing complexity of banking and the emergence of new loan products have

changed the risk profile of banks and as a result regulatory authorities have stepped in to

maintain the confidence level of the public in the financial system by calling for greater

transparency and also by imposition of capital ade4uacy norms and provisioning re4uirements.

In the days when lending was a simple operation! undertaken by well experienced bankers andthat too in a stable! predictable and familiar environment to a small community of known

clientele the lack of a well documented credit policy was not considered a handicap. 9oreover

there was a feeling that if such a document were to be put in place then it could bring about

some inflexibility in taking lending decisions. 5owever! when operation through a large

network of branches and people it is necessary to have commonality of thinking and approach

SIT.P&+MS) Tu/(u# &


7/91

and a credit policy document provides the basis for this. The conse4uences of the excesses of

the era of unbridled credit expansion were there for all to see. (ome well known banking

institutions disappeared under a mountain of ill"advised credit exposure and some very well

known names considered stalwarts in global banking came close to disappearing.

well"documented credit policy has therefore been now recognized as an important

re4uirement for any lending institution in building a loan book of acceptable risk profile! which

will provide liable revenue stream.

T4! St#utu#! of Indian 'an(in"

The Indian banking industry has -eserve #ank of India as its regulatory authority. This

is a mix of the public sector! private sector! co"operative banks and foreign banks. The private

sector banks are again split interest old banks and new banks.

St#utu#! of Indian 'an(in"

SIT.P&+MS) Tu/(u#

S4!du*!d

Co//!#ia* 'an(s

'an(s

Pu$*i S!to#

'an(s

P#i3at! S!to#

'an(s

Fo#!i"n

'an(s

R!"iona*

Ru#a* 'an(

S'I 7 its

Assoiat!s

S4!du*!d U#$an

Co.o0!#ati3!

'an(s

,

%ationa*i8!d

'an(s

R!s!#3! 'an( of India

9C!nt#a* 'an(

S4!du*!

'an(s

S4!du*!d Co.o0!#ati

'an(s

S4!du*!d Sta

Co.O0!#ati3

'an(s

O*d P#i3at!

S!to# 'an(s

%!1 P#i3at! S!to#

'an(s


8/91

COMPA%Y PROFILE

Histo#y and 0#o"#!ss:

9ysore rya Aysya 9ahasabha! passed the resolution in the third Aysya

conference! held at #angalore in the year 13%+. CThe Aysya #ank :imitedD! was incorporated

on %3th9arch 13'0. The #ank was registered with an authorized capital of -s. %0 lakhs and

secured the certificate of commencement of business on %olden Bubilee and

diamond Bubilee in 1330.T that time the #ank had the paid of capital and reserves which

amounted to -s. 1&%1.%, :akhs and deposit and advances stood at -s.+=03! was established in ug %001.

SIT.P&+MS) Tu/(u# +


9/91

A$out I%& Co/0any:

I*>s parent company! 9(TE-9"based I*> group *A! originated in 1330 from

the merge between the *ationale"*etherland and *9# post bank group. /ontinuing roots and

ambitious the newly formed company itself CI*TE- *TI*:E *ET5E-:* >-?2D.

9arket circles =00< abbreviated the name to I*>. The company later followed suit by

changing the statutory name to CI*> >-?2 *AD.

Today! I*> #*$ is one of the largest integrated financial services organizations in the

world with more than group is K 10 in ;orbes

magazine CT5E )-: (?2E- =0Dltd @July %%! %00%8. The list is compiled by aggregatingsales assets! profits and market value @as of =H01H0%8! I*> ranks K %0 in ;ortune magazines

%00% >lobal =00 list. The fortune list is based on revenues.

I*> also has the largest independent brokerHdealer network in the financial services

industry with approximately 10!=00 registered representatives in seven brokerHdealers. Its

primary distribution channel is through the independent financial adviser channel. 5owever!

I*> also distributes its products thoroughly registered

-epresentatives! independent and career insurance agents other brokerHdealers! stock

brokerage firms! banks Fdirect sales channels.

The main obBective has been made by I*> #ank holding *.A to participate in manage!

finance! flourish personal or real security for the obligations of F provide services to others

enterprises F institutions of any kind to conduct banking business in the widest secure!

including insurance brokerage! to ac4uire! build F operate real estate F to engage in any

activity. This may be related or conductive to the foregoing. nother specialization is I*>

irect! an Internet and direct marketing concept with which I*> is rapidly winning retail

market share in mature markets. ;inally! I*> distinguishes itself internationally as a provider

of Lemployee benefits! i.e.! arrangements of non"wage benefits! such as pension plans for

companies and their employees.

SIT.P&+MS) Tu/(u# 3


10/91

A$out I%& in India:

In India I*> is active in banking! insurance F asset management .The whole sale

#anking arm under I*> bank *A offers lending F secured finance products in F advisory

F capital market origination products to corporate F institutional clients I*> is active in

insurance through its Boint venture with Aysya bank called I*> Aysya life. I*>( sset

management activities in India include private banking mutual funds sold through I*> savings

trust F the venture capital activities of banking private e4uity partners.

T4! '!"innin":

riginally incorporated as the Aysya bank ltd on 9arch %3 th13'0 under the 9ysore

/ompanys regulation 131, with its registered office at Aysya had entered net advances announces amounting to -s.

30!+0=!3%0 to several industrial sectors in India.

R!"ist!#!d 7 Co#0o#at! offi!

riginally Aysya #ank was situated at St-Ma#(;s Road! #angalore! which has now

been changed to

I%& Vysya 'an( Li/it!d

I%& Vysya Hous!

No 22, M.G. Road

'an"a*o#! . >>?

SIT.P&+MS) Tu/(u# 10


11/91

Aysya bank is the premier bank among the private sector banks of India! 5aving

established benchmark in many areas in the national banking stream! the bank goes global

crossing the frontiers F oceans here are the milestones of the bank over the long years of the

services

YEARS MILESTO%ES

13'0 Aysya #ank incorporated in #angalore.

13'< Aentures out with a branch! outside #angalore

13olden Jubilee of the bank

13+= #ecame one of the largest 2rivate (ector #ank

13+, ;irst private sector bank to launch leasing F merchant banking subsidiary

13++ ;irst private sector bank to launch credit cards pioneered the concept ofdomestic ffiliation of cards

13+3 (et a record in Indian banking industry by garnering maximum home loansaccounts for the national housing bank

1330 ;irst private sector bank to launch a housing finance subsidiary

1331 :aunched (E#I approved portfolio managed service

133% eposits cross -s.1000 crores

133' #ranch network crossed three hundred mark

133& (igns (trategic lliance with ##:! #elgium. Two *ational wards by >em FJewellery Export promotion /ouncil for excellent performance in Export

SIT.P&+MS) Tu/(u# 11


12/91

2romotion.

133+ /ash 9anagement (ervices! F commissioning of A(T >olden 2eacockward " for the best 5- 2ractices by Institute of irectors. -ated as #estomestic #ank in India by >lobal ;inance @International ;inancial Journal "

June 133+8

%000 -#I clears setting up of I*> Aysya :ife Insurance /ompany.

%001 I*>"Aysya commences life insurance business

%00% I*> takes over the 9anagement of the #ank from ctober ,th%00%. -#I clearsthe new name of the #ank as I*> Aysya #ank :td. The #ank launches a rangeof products F services like the Ays Ayapar 2lus! the range of loan schemes fortraders! T9 services! (marter serv! the account that comes with a personalassistant service! (ave F (ecure! an account that provides accident

hospitalization and insurance cover! (ambandh! the International ebit /ardand thenet banking service

%00' Introduced customer friendly products like range (avings! orange /urrent and2rotected 5ome :oans.

T4! o#i"in of I%& ou0

n the other hand! I*> group originated in 1330 from the merger between *ationale "

*ederland *A the largest utch Insurance /ompany and *9# 2ost #ank >roup *A.

/ombining roots and ambitions! the newly formed company called CInternational *ederland>roupD. 9arket circles soon abbreviated the name to I"*">. The company followed suit by

changing the statutory name to CI*> >roup *.A.D.

P#ofi*!

I*> has gained recognition for its integrated approach of banking! insurance and asset

management. ;urthermore! the company differentiates itself from other financial service

providers by successfully establishing life insurance companies in countries with emerging

economies! such as $orea! Taiwan! 5ungary! 2oland! 9exico and /hile. nother specialization

is I*> irect! an Internet and direct marketing concept with which I*> is rapidly winning

retail market share in mature markets. ;inally! I*> distinguishes itself internationally as a

provider of Lemployee benefits! i.e. arrangements of non"wage benefits! such as pension plans

for companies and their employees.

SIT.P&+MS) Tu/(u# 1%


13/91

C4an"! of %a/!

In terms of the approval of the shareholders accorded at the ,1 st nnual >eneral

9eeting held of %1st(eptember %00% and the approval of -eserve #ank of India and the /entral

>overnment @-egistrar of /ompanies8 in this regard! the name of the #ank was changed from

the Aysya #ank :imited to I*> Aysya #ank :td.! effective ,thecember %00%.

E@uity Pa#tii0ation

The year %00%"0' has been another uni4ue year for the bank. ;or the first time in the

history of banking industry in India! I*>! the utch banking and insurance group! increased its

holding in the #ank from %0 to Aysya #ank! reflecting the strengths of I*> >roup

and the heritage of Aysya #ank. ne of the benefits for the #ank is that the #ank has been

able to draw on the expertise of I*> in key areas of retail banking credit and market risk

management.

S4a#! Ho*din" Patt!#n

A/ount P!#!nta"!

2romoters holding &'!'1% 0.'0

I*> >roup 33!&+!1%0


14/91

THE MA%A&EME%T TEAM

'a#t H!**!/ans C4i!f ED!uti3! Offi!#

V-Ra"unat4an P#!sid!nt

J!an Louis L!/ai#! S!nio# ED!uti3! Vi! P#!sid!nt

V-Ra3i 6u/a# ED!uti3! Vi! P#!sid!nt)

5ead"Treasury

S4antanu &4os4) ED!uti3! Vi! P#!sid!nt)

-etail 2roducts and marketing

6-'-V- %a#ayan ED!uti3! Vi! P#!sid!nt

/hief ;inancial fficer

S-Mu#a*id4a# ED!uti3! Vi! P#!sid!nt

(pecial 2roBects H Integration

Su#!s4 C4and#a %anda ED!uti3! Vi! P#!sid!nt

-egional /E".2.

'-As4o( Rao ED!uti3! Vi! P#!sid!nt

5ead"udit F Inspection! /redit udit

St!3!n 'i**it ED!uti3! Vi! P#!sid!nt5ead"#anc assurance! (ubsidiaries F 2vt #anking

Suni* &u*ati ED!uti3! Vi! P#!sid!nt

5ead"/orporate ;inance and Investment #anking

%!d S1a#u0) ED!uti3! Vi! P#!sid!nt

/hief /redit fficer

J-M-P#asad) ED!uti3! Vi! P#!sid!nt) H!ad.HR

S-Via1anat4an H!ad.E/!#"in" Co#0o#at!s

6-S-R- An2an!yu*u H!ad.SME

T-V-'a*a2i H!ad.AS'

SIT.P&+MS) Tu/(u# 1


15/91

Vision and /ission of Vysya $an(:

)e! at Aysya #ank will provide banking solutions with new ideas to become the most

preferred bank for all our customers! including the mid"income households and small F

medium business! ensuring lasting relationshipD.

Mission Stat!/!nt of I%&:

)e strive! to deliver our financial products and service in the way our customers expect.

)ith exemplary service! maximum convenience and at competitive rates. This is reflected in

our mission statement7 to set the standard in the helping our customers manage their financial

future.

Mission Stat!/!nts:To set the standard in helping our customers manage their financial future.

OUR COMPETITIVE STRE%&THS

espite the competitiveness of the Indian banking and financial services sector"both

from foreign and domestic players we have inherent strengths that are expected to provide a

sustainable advantage over the long"term.

)e have II*> #ank *.A. as the ;oreign 2romoter! which in turn is a 100 subsidiary

of I*> >roep.*.A. The worlds fourth largest ;inancial (ervices group and the worlds

second largest life insurance provider @(ource7 ;ortune >lobal July %00 >roups

active participation in managing the affairs of the #ank! we are uni4uely positioned as

an LIndian made ;oreign #ank.

ur -etail #anking business is geographically focused in the (outh but also targets a

number of other cities. /urrently we have '+& outlets in the (outh India and have a

presence in most (outhern areas. This provides an effective delivery model for our

products and services that is focused and concentrated.

SIT.P&+MS) Tu/(u# 1=


16/91

Through our subsidiary. IA;(: and in association with IA: and I*> Aysya 9utual

;und! we offer to customers the full breadth of financial services and financial planning

products under a common umbrella brand! I*> Aysya.

)e have been traditionally a Aysya community focused bank and are strong in the

traders segment which forms a reddy based for our (mall and 9edium Enterprises

strategy. ur network! product range and processes supports our (9E business.

OUR STRATE&Y

ur obBective is to build a recognizable position as a premier banking and other

financial services products provider to retail and wholesale customers.

T4! (!y !*!/!nts of ou# $usin!ss st#at!"y a#! to:

;ully leverage the synergies @including support and commitment8 available from I*>.

;ocus on growth opportunities in the -etail banking businessG

(trengthen )holesale #anking operationsG

Expand retail distribution capabilitiesG and

?se of technology for competitive advantage

Fo# usto/!#s) is a fi#st.*ass s!#3i! 0#o3id!#)because exemplary customer service

differentiates successful companies.

Fo# s4a#!4o*d!#s) off!# a #!tu#n on s4a#!s 4i"4!# t4an ou# 0!!#s t4#ou"4 a clear

focus on value creation. 9anaging for a value at I*> means optimizing the allocation

of capital and focusing on superior execution in all our activities.

Fo# !/0*oy!!s) $! a fantasti) o/0any to 1o#( fo#) where our 2eople feel

empowered and accountable to make a difference to their customers.

SIT.P&+MS) Tu/(u# 1&


17/91

I%&S $usin!ss *in!s:

In %00< I*> introduced a new structure of six business lines. clear /lient focus and

strong business logic are the key elements in this structure-

T4! 3ision stat!/!nt of t4! I%& Vysya $an(

I*> Aysya #ank will be an entrepreneurial integrated financial services institution

where innovation F transformation are the ways of life.

I%& Vysya 'an( #!*i!s on t4! fat t4at:

Its not sufficient to be Lself focused! Lchannel focused or Ltechnology focused.

/ustomers really dont care about these things. ll they care about be their needs.

?nderstanding of the customer re4uirement is the key to better service.

I%& Vysya $an( 0#oduts 7 t4! #!*at!d S'U d!tai*s:

I*> Aysya bank has wide range of products under the various strategic business units!

which do the marketing part of the work to the bank. The investments of the bank are handled

by a separate department i.e. by the treasury department.

brief profile of the (#?s a he I*> Aysya #ank is given below.

?- R!tai* 'an(in":

These (#?s mainly handle the day"to"day banking activities like deposits!

retail assets like car loans! two wheeler loans! housing loans. 2ersonal loans and also the

SIT.P&+MS) Tu/(u#

Su0!#3iso#y 'oa#d

ED!uti3! 'oa#d

Insurance

mericas

Insurance

Europe

Insurance

siaHpacific

I*>

direct

-etail

banking

)holesale

banking

1,


18/91

educational loans to the meritorious students pursuing to the professional courses. There are

various investment products like mutual funds dvisory services! >ovt securities @>. (ecs8

retail banking services. These (#?s even doing the value added services like maintaining the

operations of the sambandu international debit card. /itibank Aysya #ank credit card! smart

seen retail banking service! bill pay retail banking services! mi"bank retail banking services!

Ays 2"emat account retail banking services! advance against emat securities retail banking

services! Ays prime FAys invest retail banking services F)estern ?nion 9oney Transfer.

- A"#iu*tu#! 7 Soia* 'an(in":

These units have the products to suit the Indian farmers. The agriculture is one of the

priority sectors to the bank. The products available with this unit are farming loan! crop loan!

poultry farming loan! advances for purchasing the agri e4uipments and vehicles! godown

construction loans! airy farming loans! horticulture and plantation development loans etc. the

bank offers an uni4ue credit card facility to the farmers which involve providing revolving cash

credit limit to meet the short"term agriculture and working capital re4uirement of farmers and

agricultural traders. The scheme is called as C$isan /redit /ardD where in the farmers! who are

owner cultivators and engaged in allied activities whose financial re4uirement are more -s.

=000H" can get into the scheme and they will be provided with the passbook and card. There

will be no restrictions on the withdrawals and repayments.

- Co#0o#at! Finan!:

The corporate finance deals with the large corporate where in the annual turnover is in

excess of -s.


19/91

facility and Ays Aidalaya scheme! a uni4ue scheme to finance the educational institutions for

building constructions! hostels accommodation and ac4uiring the other institutional products

like computers! sports e4uipments! furniture! library books etc. the Ays contractors scheme is

exclusively for the contractors. The scheme offers working capital limits @;und F *o fund8 and

term loans with a maximum exposure of -s. 10 crores per customer.

ll these debts have their own independent appraisal process and the /-- ratings will

be assigned and the pricing will be decided by calculating the facility risk rating.


20/91

I*> group attaches paramount importance to upholding its reputation and the I*>

business principles play an important role in this respect. I*> expects the highest levels of

integrity from its employees! regardless of their position in the organization.

T4! I%& $usin!ss 0#ini0*!s 1!#! fi#st int#odu!d in ?BBB- T4!y 1!#! u0dat!d in >>G-

RESPO%SI'ILITIES:

The business principles apply to the whole of I*> group! its subsidiaries and business

units and to every employee.

It is the responsibility of all those in authority at I*> to ensure that these principles are

fully communicated to all present and future staff. They must also ensure that these are

strictly observed.

The members of the exclusive board and all @general8 managers are responsible for

applying the business principles with in their areas of responsibility.

The executive board will receive regular reports! including an annual review! on the

effective operation of the business principles.

Ou# sta(!4o*d!#s

/ustomers

(hareholders

Employees

#usiness partners

(ociety at large

I*> /urrently owns a


21/91

SIT.P&+MS) Tu/(u# %1


22/91

CORPORATE STATEME%T

C)e! at I*> A6(6 #*$ will provide banking solutions with new ideas to become

the most preferred for the customers including the mid"income households and small and

medium business! ensuring lasting relationship.D

T4! 'an(s &oa*

2osition the bank as strong -etail #ank

(trengthen competitiveness in business and Trade ;inance in stronghold geographical

areas.

(erve and support /orporate (egment with efficient cash management services.

Exploit synergies in investment F Treasury perations by integrating domestic and

;orex treasury desks.

2rovide Technology thrust for superior services and cost effectives.

ffer a broad spectrum of financial products including Insurance.

T4! n!1 id!ntity

The immediate benefit to I*> Aysya #ank ltd is the pride of having become a member

of global financial services giant! with an asset base of ,,3 billion euros @-s.


23/91

party! for which the #ank is financially compensated through earnings in the form of interest!

fees! commission etc.

CORPORATE O'JECTIVES A%+ &OALS:

1. To build up 4uality loan asset portfolio7

%. To build stable retail low cost term deposit

'. To build volume growth in low cost deposit base7


24/91

:oan review! monitoring and collection efficiency.

/redit information system.

5ouse keeping! etc.

1,. ;ocus on skill development7

1+. To maintain personal integrity7

/ommitment to the rganization.

/ompetence in the Bob.

/reditability in the conduct.

Soia* Ati3iti!s

The bank involved about


25/91

P!#fo#/an! o3!# t4! d!ad!s

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

from the following table7

Ta$*! ?:

Comparative Figures Rs. in millions

Y!a# %!t 1o#t4 +!0osits Ad3an!s P#ofits

13


26/91

a04 ?:

Performance Over the years

0

20000

40000

60000

80000

100000

120000

1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004

Years

Values

Networt

!eposits

"#van$es

%ro&its

'utlets

THE STRUCTURAL CHA%&ES I% IV'L

(tarting %001"%00%! I*> #ank implemented several management and operational changes in

I*> Aysya #ank. These include reorganizing the organization structure! bringing in a new

breed of professionals from other foreign and private banks as well as from Indian operations

and implementing (*/5EN! a core banking solution used by it at many locations globally.

I*> Aysya faces the challenge of changing the mindset of its existing employees to

adapt to the new culture in tune with I*>s global systems and work in the new technology

dominated environment. The bank is constantly imparting training to upgrade the skills of its

employees. ll key functions are now headed by I*> >roup employees or experienced ex"

foreign H new generation private bankers. I*> Aysya #ank is one of the oldest private sector

banks in the country with a significant exposure to south India! in which the I*> group of the

*etherlands has taken up a Aysya #ank is

emerging as one of the fast growing and better managed private sector banks in the country.

SIT.P&+MS) Tu/(u# %&


27/91

s mentioned above! I*>s involvement in the banks management is the main reason for

its improved performance over the last two years. I*> >roup is one of the largest universal

banks in the world with an asset size of close to ?(O , trillion. The ac4uisition of Aysya

#ank is part of I*> >roups strategy for the Indian subcontinent. ;or I*> Aysya #ank!

this has meant strong management and functional expertise that I*> group has been able to

impart to it. I*> >roups overall strategy for India is to develop a >reenfield presence in

the country. This indicates that the parent may! at a latter stage! further increase its

investments in the bank.

Int#odution to SME S!"/!nt of I%& Vysya 'an( SME:

ll units engaged in introducing or distributors of commodities of foods of providing

services or education institutions! units financed under structured products like Ays"deal!

business loans trade! Ays" vyaper etc irrespective of 4uantum of finance F manufacturing units

with annual sales turnover up to -s.=0 crores and having existing or proposed fund and non"

fund based credit facilities not exceeding -s = crores comes under (9E.

(9Es have been playing a very crucial pivotal and dominant role in the economic

growth of our country. There is hardly any place whether it is rural! semi"urban! urban and

metro where (9E business is not available. Innovation of new products and services is the

biggest strength of (9E. They are playing vital role in the process of economic development

by value addition! employment generation! e4uitable distribution of incomes! and regional

disbursal of industries and mobilization of capital F entrepreneurial skills. It is found to be an

indispensable link between manufacture F consumer in the economy. They are also

contributing to a maBor share of export earnings i.e.! around '= of total exports in the Indian

economy. (mall and medium enterprises business which has accounted for a sizeable

proportion of our total advances. This segment focuses on the needs of all business enterprises

in hading of goods or services with annual sales turnover up to -s. ,= crores for both domestic

and export credit re4uirements. (9E a large number of relationships which is a care strength

enabling us to cross sell other products like savingsHcurrentHterm deposits! insurance and mutual

fund investments! credit card! Ays"2 etc.

SIT.P&+MS) Tu/(u# %,


28/91

(9E #usiness is primarily available in 100 networked branches spreading across 11 sub"

regions of the #ank and having about 1&!=00 relationships with a total volume of -s.1=


29/91

100 export finance of bank through our (#?.

#road borrower base with a dilution of risk.

9anufacturing units with credit re4uirements up to -s. = crores.

IMPROVI%& PERFORMA%CE:

1. number of issues will affect current years performance

o :ack of total involvement of #ranch 9anager of important branches.

o Turn mount Time

o :ack of ade4uate people to do (9E business

o :ack of discretion to recruit the people in the place of resignations! retirements!

A-( etc

o elays in getting the documents of collaterals approved by /2?

%. number of factors will improve current years performance

o :ion #ranch F ;ocused #ranch concept

o (uccessful"tackling of documentation problems

o 9ore delegation to -9! -5(! -//(

o 9ore co"ordination and interaction with -egional /Es for providing

manpower to the :ion and ;ocused #ranches

o 9ore training to the -9s both in marketing and processing

'. 5ow to leverage the factors over the issues

o Early implementation of :ion #ranch and ;ocused #ranch concept

o To advise the ;ocused #ranches to give leads and to book business despite

absence of -9sH/(s.

o To co"ordinate with /orporate :egal epartment @/:8 to simplify the

documentation

o To co"ordinate with /: about legal formalities with /2?

o To constantly review the performance of -9s and -5s

SIT.P&+MS) Tu/(u# %3


30/91

CUSTOMERS:

Internal /ustomers

-est of the bank

External /ustomers

#usiness concerns of all kinds! statutory bodies! uditors etc.

SIT.P&+MS) Tu/(u# '0


31/91

O#"ani8ation C4a#t

The structure of the organization of /orporate ffice! #angalore is as followsG

SIT.P&+MS) Tu/(u#

;inancial (ervices

#usiness 2rocess -e"Engineering

9arket -isk 9anagement epartment

Investment (trategy nd -esearch

Treasury epartment

;inance epartment

29( and epository

griculture nd social #anking

-etail banking

2rivate #anking

/redit /ard epartment

:oan -eview epartment

/orporate Investment #anking

5uman -esource epartment/entral 2rocessing ?nit

/redit -isk 9anagement (ervices

udit and Inspection

(mall F 9edium Enterprises

'1

CHAIRMA%

#oard of irectors

P

Aice 2residents

fficersH/ontractual fficers

/lerks

(ub"(taffs


32/91

M6ins!y .S F#a/!1o#(

The ,"( model is better known as 9ckinsey ,"(! this is because the two persons who

had developed this model! Tom 2eters F -obert )aterman! have been consultants at

9c$insey and /o at that time. They published their ,"( model in their article Q(tructure is *ot

rganizationQ@13+08 F in their books QThe rt of Japanese 9anagementQ@13+18 F QIn search

of ExcellenceQ@13+%8

The ,"( framework of 9c$insey is a value based management model that describes

how one can holistically and effectively organize a company. Together these factors determine

the way in which a corporation operates-

SIT.P&+MS) Tu/(u# '%


33/91

The model starts on the premise that an organization is not Bust (tructure! but consists

of seven elements

S:Shared Value:

The interconnecting center of 9c$inneys model is (hared Aalues. )hat does the

organization stands for and what it believes in. /entral beliefs and attitudes. (hared values

means that the employees share the same guiding values. Aalues are things that you would

strive for if they were demonstrably not profitable. Aalues act as an organization conscience!

providing guidance in times of crises. Identifying corporate values is the first essential step in

defining the organization role in the larger community in which it functions.

rganizations main values are stated in its Aision F 9ission statements. (o! it is the

responsibility of every employee of the organizations to share their values. Every employee of

the organization can give their best for the achievement of those values.

SIT.P&+MS) Tu/(u# ''


34/91

role of the vision statement is to impart to the organization. )hat the organization

stands for and what it believes in. the organization not only formulate and constantly reiterate

values and beliefs but also adhere to them if they are to shape people behavior in a lasting way

Vision stat!/!nt

The Vision stat!/!nt of I*> Aysya #ank is QI%& Vysya 'an( will be an

Ent#!0#!n!u#ia* Int!"#at!d Finania* S!#3i!s Institution where Inno3ation F

T#ansfo#/ationare the way of lifeD.

Mission Stat!/!nt

The Missionof I*> Aysya is Q To be a *!ndin") &*o$a*) C*i!nt.fous!d) Inno3ati3!and *o1.ostprovider of ;inancial (ervices through the +ist#i$ution C4ann!*sof the *i!nts

0#!f!#!n!in markets where I%&can create 3a*u!Q.

Corporate Statement

)e! atI*> A6(6 #*$will provide banking solutions with new ideas to

become the most preferred for our customers including the mid"income households and small

and medium businesses! ensuring lasting relationship.D

/ore values the organization upholds most7

Int!"#at!d" I*> A6(6 #*$ is committed to complete honesty and integrity in all

aspects of business.

T!a/1o#(" I*> A6(6 #ank is wedded to teamwork within the organization!

between complementary and also with partners.

P#of!ssiona*is/" I*> A6(6 #*$ believes that professionalism throughout thebank is the key for delivering consistently superior customer services. )e should do

what we say and we are going to do.

Ent#!0#!n!u#s4i0" I*> A6(6 #*$ affirms that long term success and

profitability demand an innovative and entrepreneurial approach from the bank and all

the employees.

SIT.P&+MS) Tu/(u# '


35/91

R!s0onsi$i*iti!s to usto/!# n!!ds" I*> A6(6 #*$ recognizes imperative of

being pro"active and responsive to customer needs in the markets it operates.

The I*> Aysya #ank believes that the fundamental capacities any individual would

possess to be able to participate in the larger economy are in the areas of health! education! and

to provide basic financial services. )ithin these broad areas infant health! education! and micro

financial services define the areas in which the I*> Aysya #ank focuses.

SIT.P&+MS) Tu/(u# '=


36/91

S:Strategy

(trategy defines key actions and capabilities along the maBor dimensions of marketing product

and services development! sales and channel distribution! business system and processes! and

management of alliances and partnerships.

(trategic thinking involves the understanding of basic economics of business! identifying ones

sources of competitive advantage! and allocating resources to ensure that ones distinctive

capabilities remain strong.

(trategys most important contribution is searching for! and redefining! context. (trategic

thinking also creates a readiness to exploit unforeseen opportunities.

bBectives of I*> Aysya

The changed economic climate in India! with a growing emphasis in the market has

hastened the need for an informed and participatory socio"economic order. s being one among

the largest player in the economic landscape of the country! I*> Aysya believes that its

involvement in the commercial sector must be backed by a simultaneous commitment in the

social sector. I*> Aysya bank seeks to perform in the social sector by providing low cost

financial services through the preferred channels of the clients.

(trategic obBectives of I*> A6(6 #*$7

To establish retail presence.

To build and maintain investors relation.

To build LI*> Aysya #ank in the market.

To improve customer satisfaction.

To implement the -isk management system.

To develop a new organization structure.

To develop a sales culture at all levels.

To map competency re4uirement at all levels and plan development needs.

To improve employee satisfaction scores.

SIT.P&+MS) Tu/(u# '&


37/91

(trategies of I*> Aysya

t a very basic level! the proBects supported by I*> Aysya are re4uired to cater to all

the levels of the people with low cost financial services.

This is in recognition of the fact that resources are limited and the efficient use is

imperative if the maximum number is to be benefited. /ost effectiveness also facilitates

the adoption of the initiative in other context.

The initiative must be scalable. (calability implies the ability to draw upon the important

elements of a program and adapt them to suit the needs of a specific situation.

It should be possible to do so at the national level. Even if the program itself is not

directly scalable. It should be possible to take away significant lessons from it in order to

enrich work in other setting.

ll supported initiatives should have the potential for both near and long"term impact.

/onse4uently! it is important that the impact of this programs! in the near and long"term!

be carefully understood and analyzed in a rigorous manner and not trough anecdotes. It is

critical to clearly understand how an initiative is performing in terms of its predetermined

goals and in comparison to alternatives.

S:Structure

rganizations will find that changes to processes and style inevitability re4uire changes

to their structure. To be responsive and results oriented an organization needs to move to a

network structure. *etwork structure supports a responsive and result oriented organization.

The way the organizations units relate to each other! centralized! functional divisions

@top down8 decentralized @the trend in larger organization8! matrix! network! holding! etc.

rganization structure defines the authority! responsibility and relationship in the

organization. The organization structure mentioned below where we can observe that the

epartmenation is done on the basis of standard function of the management.

The structure of I*> Aysya #ank is as follows7

SIT.P&+MS) Tu/(u# ',


38/91

Each department is controlled and guided by the head of the department. ll departments have

separate manager to control activity. The structure shows how the company is able to manage

its staff and also involves everyone in the decision making process.

'oa#d of +i#!to#s

&-M-Rao /hairman'a#t H!**!/ans 9anaging irector F /E6 R Ra/a Moo#t4y

6 R V Su$#a/ania/

S 6 %!1*ay R'I %o/in!!

Jos!04 J 6!st!/ont

P!t!# A*!Dand!# S/yt4

+a3id 5ood Hudson

Anand Su#yadutt '4att

Ryan And#!1 Pad"!ttA#un T4ia"a#a2an

P#a(as4 & A0t!

La#s 6#a/!#

C!!s O3!*"onn!

P!t!# Staa*

/-2-TE (E/-ET-6

M V A00a Rao

(TT?T-6 ?IT-(

MKS '4a#at S Raut 7 o-

S:Skills

(kills refer to distinctive capabilities of personnel or of the organization as a whole.

(kills are that for which the staff to develop appropriate new skills! for which it re4uires a

learning environment.

If the staff managers are to ac4uire the skills! then there needs to be an appropriate

learning environment. ne that7

Is driven by desire to realize the vision.

5as a sharing culture with mutual support.

SIT.P&+MS) Tu/(u# '+


39/91

2rovides space and time for learning. 2referably closely linked to specific tasks and

obBectives @Bust in time learning8.

llows risk

Tolerates failure! provided it is part of the learning process.

5as visible recognition for success that is built on new learning.

)here skills and experience cannot be resourced or developed internally within there4uired timescales then external companies will need to be retained.

In short skills refer to the fact that employees have the skills needed to carry out thecompanys strategy. Training and development ensuring people know how to do their Bobsand stay up to date the latest techni4ues.

-obert $arz has identified three essential managerial skills. They are as follows7

?- T!4nia* S(i**s: Technical skills encompass the ability to apply specialized knowledged or expertise. It involves working with tools and specific techni4ues. ;or example!

9echanics works with tools and their supervisors should have the ability to teach how to

?se these tools.

- Hu/an S(i**s: 5uman skills is the ability to work with people! it is cooperative effort! it

is team work! it is the creation of an environment in which people feel secure and free to

express there opinions.

- Con!0tua* S(i**s: It is the ability to see the big picture! to recognize the significantelements in a situation and to understand the relationship among the elements.

ifferent organization re4uires different skills. The skill set differs from one organization toorganization. #ut when it comes to banking the skill set differs from that other type oforganization.

The skills possessed by different employees are depending on their grades. The following

are the grades of I*> Aysya #ank employees.

/hairman

9anaging irectorH /E

Executive A.2s

Aise 2resident

SIT.P&+MS) Tu/(u# '3


40/91

ssistant A.2s

9anagers

fficers

/lerks

(ub (taff

S:Systems

The systems refers the procedure! processes and routine that characterize how importantworks has to be done like financial systems! hiring! promotion and performance appraisalsystems! information systems.

(ystems re4uire capabilities in both information technology and in organizationalprocess methods and controls. The capabilities are re4uired in7

1. Information Technology F Information (ystem

It is used for esigning a user interface! analysis and design techni4ues! evelopmentof prototype! new product development! database! (ystem delivery like distribution to multipleusers! locations! media type and combinations and operation of wide area networkmanagement! security management.

%. (ales and service7

esign! development and delivery of new responsive processes to support intimatecustomer relationship! operation sales! services! claims! %


41/91

Information Technology7

The bank is focusing on improvement in IT related functions to have an edge over other

market players. The bank continues to leverage information technology as a strategic tool for

its business operations! to gain competitive advantage by offering customer convenience and

improved services as well as improving productivity and efficiency. I*> Aysya #ank

technology strategy emphasis enhanced level of customer services through %


42/91

(7 Style(tyle refers to the employees shared and common way of thinking and behaving

unwritten norms of behavior and thought. The managerial approach is more proBects

focused than process focused.The management is likely mixture of self"management for customer facing activities

and task management for organizational activities.

;or ex7 if the staff is to treat customers as individuals! then they themselves will need to bemanaged as individuals! this suggests a self"management style.

9odels for leadership7

(haring leadership is key to the white stag philosophy of leadership because overtlypromotes the distribution of the function of the leader among the group. /ompetitive styles

of leadership are less and less responsive to complex society today. 2articipative ofcooperative styles of interaction are the keys to our future. n individuals style ininteracting with others is an outward sign of the substance within. )ith experience! we canreally tell a lot about peoples capabilities by looking at them! but it is better to watch themin action. 5ow does a good leader behave when the group is confronted with the need fordecision.

(electing a :eadership style7

There are several forces affecting the type of leadership style available to the leader.

Influences affecting choice7

number of forces can affect a leaders choice of leadership style as shown in the forcesaffecting a leaders choice of leadership style.

;orces on :eader7

These can include his knowledge! skills! attitude! experience! background! values!personal goals! group goals! confidence in members! convictions about styles and his choice

of style! pressures from outside groups! time! resources! personality! sensitivity! weight ofresponsibility.

;orces on team7

SIT.P&+MS) Tu/(u#


43/91


44/91

third of the employees undergo training every year! i.e.! all the employees are trained once inthree years. part from this need based training is also given.

Aice president who is also the principle of the college heads the training college.;aculty members F administrators support him.

nother important landmark was establishment of I*> Aysya :earning /enter @IA#/8

with the obBect of replicating the programs being provided by I*> #usiness (chool!msterdam and also to provide other training inputs needed by the I*> Aysya >roup! as wellas the other units. The program conducted during the year"included changes :eadership!2erformance 9anagement and maximizing customer profitability! benefiting ,, senior people.

-ecruitment 2rocess of I*> Aysya #ank7

I*>"Aysya follows both Internal and External -ecruitment. If the suitable candidatesare available internally! through circulars a notification is sent to the employees. If candidatesare not available internally! external recruitment is followed. (ources used for External-ecruitment are mainly through /ampus -ecruitment! /onsultancies! etc.

The recruitment has been streamlined and uniform recruitment policy and process

implemented.

/ompetency profiling tools are being used to strengthen the campus recruitment process

and match the profiles of the employees to the need of the organization.

I*> Aysya bank also undertakes lateral recruitment to bring new skillsG competencies and

experience interest the organization and meets the re4uirements of the rapidly growing

business.

six"sigma initiative has been undertaken for the literal recruitment process to improve

capabilities in this area.

The rapidly changing business environment and the challenges it posses to organization and

businesses make it imperative to continuously to enhance the knowledge and skill sets

across the organization. I*> Aysya bank believes that building a learning organization is

critical for being competitive in product and services and meeting customers expectations.

SIT.P&+MS) Tu/(u#


45/91

(pecial programs on functional training and leadership development to build knowledge as

well as management ability is conducted at dedicated training facility. I*> Aysya #ank

also draws from the best available training programs and facility! both international and

domestic! to meet its training and development needs and built globally benchmarks skills

and capabilities.

I*> Aysya #ank believes in defining clear performance parameters for employees and

empowering them to achieve their goals. This has helped to create a culture of high

performance across the organization.

SIT.P&+MS) Tu/(u#


46/91

SWOT Analysis

()T analysis is a tool for auditing an organization and its environment. It is the first

stage of planning and helps marketers to focus on key issues. ()T analysis is an effective

way of analyzing the organization potential by identifying your strengths F )eakness! F to

examine the opportunities and threats! which may affect the organization. /arrying out an

analysis using the ()T tool will be enough to reveal changes! which can be implemented

easily! F gain results.

S:Strength:

The bank has the backing of a globally respected brand QI*>Q! it is also supported

by a sound network of '=+ #ranches! &1 Extension /ounters and ,% T9Ps at

strategic locations in IndiaQ.

I*> Aysya bank stands one among the top ten banks in India and is ranked =thin the

private sector banks.

I*> Aysya provides end"to"end banking solutions under one roof. It also provides @nywhere nytime nyhow8 banking solution.

I*> Aysya bank has in"depth local market knowledge through which it has

established a wide range of client relationship. It has a large network of products

and this has made it successful in creating #-* wareness.

The bank is having well experienced! well trained! most dedicated and committed

staff! which is very much necessary for the banks.

It has effective branch *etwork.

I*> Aysya bank enBoys good reputation in the market! good will and market share

in the economy.

SIT.P&+MS) Tu/(u#


47/91

5: Weakness:

*o specific 9arketing epartment in I*> A6(6 #*$- 5ence it is facing

stagnant sales in comparison with its competitors with respect to financial products.

Tedious procedures have to be followed before advancing loans causing

inconvenience to customers.

O: Opportunities

I*> Aysya #ank is having wide opportunity in the Third )orld /ountries like

India to achieve the fastest sustainable growth in banking sector-

>lobal aspirations of Indian consumers and growing integration with *-Is.

The bank can optimize the growth opportunities arising out of retail banking and

small and medium enterprises.

;urther expansion of T9s networks and possible arrangements of sharing

networks of other banks by issuing AI( /ards! 9(T-E /ards to its customers.

It can attract new customers through new schemes and lessening the deposit amount

on account opening.

The regional office infrastructure can be developed and extended to support more

attractions to customers.

T: Threat

#ank is facing competition from its >lobal /ompetitors like /ity #ank! I/I/I #ank!

#*"9- #ank! eustch #ank! 5(#/ etc

/hanging economic policies of >overnment will have bad impact on interest rates

and reserve ratio maintained with - # I.

>lobalization has given raise to many more complications such as migration of

human resource pool! resistance to change in different ccounting (tandards by its

employees and maintenance of accounts under different ccounting (tandards.

The various schemes and comparatively higher interest rates offered by the other

banks such as 5;/! 5(#/! F (#I.

SIT.P&+MS) Tu/(u#


48/91

SWOT ANALYSIS7

Strengths:

5igh yielding

ll the loans are covered mostly by 100 of collaterals

-isk spread across the number of borrowers

(cope for cross selling of various products.

(cope for canvassing low cost and no cost deposits.

Weakness:

Ticket size in (9E is small. #ut! the processes and procedures being common for

all types of loans and being stringent! causing hindrance for growth. 9onitoring is

also man power intensive.

lmost all accounts being collateral"based! the documentation process is consuming

a lot of time.

Each proposal being uni4ue by itself re4uires close studyHmonitoring.

Opportunities:

)ith increased employment and increased level of consumption! large scope for

continuous growth in the sector

>rowing economy"expansion of existing units.

Existence of (9E business at every place H centre. 5ardly any place where (9E

business is not available.

/ross selling of products of insurance! 9utual ;unds etc. to the borrowers and

employees H relatives of borrowers.

Threats:

Increasing competition due to entry of new generation 2rivate sector #anks.

SIT.P&+MS) Tu/(u#


49/91

eclining spreads F conse4uent thinning of margins.

S!#3i! 0#ofi*!:

Vysya $an(is the premier bank among the private sector banks of India. 5aving

established benchmarks in many areas in the national banking stream! the bank goes global

crossing the frontiers and oceans.

Aysya #ank is the premier bank in the Indian private sector. The bank has been in

service of the nation over the last sixty"eight years and has built strong financials! to emerge a

stable and a strong #ank.

9oving towards the customer! bank has been constantly innovating. The bank offers

today! a vast range of services! through its four hundred and fifty outlets! spread across the

country.

;ollowing are the different services provided by the Aysya #ank to the customers.

?- sa3in"s $an(:

It is an operational account designed for the convenience of individuals. 5?; and

non trading organization H institutions. (tanding instructions for payment of :I/ premium!

collection of dividends! etc.! for the account holder is accepted.

- u##!nt Aount:

/urrent deposit accounts are convenience accounts without any restrictions on

operations. These accounts can be opened in the names of individuals either singly or Bointly.

;irms and companies can also open account. The account holder is re4uired to maintain acertain minimum balance as re4uired. *o interest is paid on the balance held in the account.

- u/u*ati3! d!0osit:

SIT.P&+MS) Tu/(u#


50/91

recurring deposit scheme for those with regular monthly incomes. 2erfect way

to save fixed sum every month for large outlays on consumer goods! item frame could be from

a year to 10 years. The scheme offers an attractive rate of interest.


51/91

recurring deposit scheme with the assurance of a matching loan at lower

rates of interest to realize the L;irst 5ome. The account provides flexibility not only in saving

amounts but also for intervals in savings. The account while 4ualifying for tax concession

provides for bridge loan facility to tide over emergencies! after completion of specified

minimum period.

?>- Vysunits +!0osits:

term deposit! which provides for premature withdrawal of the deposit in units

of -s. 1! 000! 00 it prevents premature closure of the entire deposit and the conse4uent loss of

interest on total deposit.

??- Vysf*!Di +!0osit:

Aysflexi deposit is a novel It driven product for customers benefit. The

scheme provides the freedom to the depositor to transfer excess funds in his savings #ank

account to a Term eposit of choice both under ;ixed and -einvestment plans.

?- Vysya 'an( Citi$an( C#!dit Ca#d:

The convenience of shopping! traveling or eating out without cash in your

pocket. The facility of drawing money in an emergency. This card is accepted art thousands of

establishments around the country. ;ree life insurance too. 2eriodical statement makes sure that

cardholder have an accurate record of all their transactions.

?- &ift C4!@u!s:

gift that is sure to be appreciated because it allows the receiver to decide how

to use it. (afer and more attractive than giving cash and avoids the duplication of other gifts.

?G- R!/ittan!s:

;acilities for remittances available through emand raft @8! 9oney

transfer @9T8! 2ay rder @28! and Telegraphic Transfer @TT8 at most competitive rates across

the spread of branches of the #ank.

SIT.P&+MS) Tu/(u# =1


52/91

C#!dit s4!/!s to $!n!fit f#o/ 3ysya $an( *td-

VYS VYAPAR

2rimarily a trade finances scheme! it is specially conceived to provide li4uidity in

business at competitive interest rates. s an individual! if you are in business the scheme

provides you the comfort in trading.

VYSMO'ILE K VYS'I6E

/onvenient scheme for salariedH self employed individuals to own a new four"

wheeler H two"wheeler. ?pto ,= of the value of vehicle based on invoice price is sanctionedas loan to be repaid in 1%"&0 e4uated monthly installments through salary deductionH post dated

che4ues.

VYS'UY

pragmatic scheme to buy your dream consumer products. :oan upto -s. %0!000 are

given to group of salaried employees of a companyHgovernment department to buy consumer

durable. -epayment is through easy e4uated monthly installations.

VYSHOME

wn your dream house through the vyshome scheme. The scheme is intended for

individuals aged %0 to =0 years for availing housing loans! ranging from over -s. % lakhs to a

-s. %= lakhs with a maximum repayment period of 1= years.

SELF 'A%6

*ow you have the convenience of round"the"clock banking and %


53/91

#alance in4uiry.

/he4ue book re4uest.

(tatement re4uest.

Telebasnking.

%RI SCHEMES

The #ank with its wide ranging eposits (chemes brings the gap between the

re4uirement of the *-Is on one hand and the country on the other! canalizing saving with

secure and steady returns to the investors.

)ith all modern infrastructure and customer friendly employees the bank is geared to

be in the lead! and also the services available to the customers are comparable to the best in the

industry.

%on R!sid!nt EDt!#na* Aount

SAVI%&S 'A%6 ACCOU%T

Interest payable at


54/91

Interest payable 4uarterly! either through

/redit to the operative account or remitted abroad.

O#an"! sa3in"s:

The orange savings H/ is a feature packed account 4uite different from any other

savings H/ in the market. )ith features like free T9 transactions in +000 T9s across

banks! free personal accident insurance! free statement of H/ on e"mails etc. This is one H/

every customer should have current.

O#an"! Cu##!nt Aount:

The orange current account is an H/ that offers zero commission on demand drafts

upto -s. % lakhs! free transfer of funds across branches! free demand! Hc opening and otherfeatures that make it the only current H/ that provides true value for money.

HOME LOA%S:

To make the customers dream homes a reality! the bank has introduced home loans that

can be customized to customers convenience! which offer protection in the form of free life

insurance! for the full loan term and amount-

PERSO%AL LOA%S:

Taking a personal loan is made easy! fast and with minimal paper work. ppointing

representatives to guide the customers through the process is only one of the few steps the bank

has taken to expedite the loan taking process-

T5O 5HEELER LOA%S:

The bank has introduced two wheeler loans that are approved in record time and further

enhanced by having re"payment options structured to customers convenience. )ith minimum

documentation flexible schemes and competitive rate of interest! the banks two wheeler loans

are the fastest and most convenient option in the market.

MPO5ER SALARY ACCOU%T:

The 9power salary account expedites the process of salary payment thus facilitating

both employers and employees. The account makes customers lives easier and has many

SIT.P&+MS) Tu/(u# =


55/91

features like overdraft facilityG value added service and personal assistance and free

international debit card with free access to more than +000 T9s across banks! leaving them

free to concentrate on their work.

CRE+IT CAR+S:

The banks credit card is uni4ue because it charges an extremely nominal rate of 1= on

cash withdrawal and not Bust thatS There is no transaction fee what so ever on fuel purchased!

through the card. The cards also give customers global access to over '0 million merchant

establishments world wide. )hich means where ever the customers go! the I*> Aysya #ank

credit card is accepted.

PRO+UCT RA%&E

E2(IT(HI*AE(T9E*T(

:*(

(E-AI/E(

/?--E*T H/

(AI*>( #*$

A6(;:EI

A6(;:EI

TE-9 E2(IT

(/5E9E(";IE

"$(56"/?9?:TIAE

/E-TI:;I/TE ;

E2(IT(

A6(A62-

A6(-E*T

A6(#I$E

A6(EM?IT6

T5E-T-ITI*::*

2-?/T( /(5 /-EIT

#I::(

:/s

>?-*TEE(

/99E-/I:

22E-(

;-EI>*

/-EIT #T52-E(5I29E*T

*2(T(5I29E*T

I*;-(T-?/T-E

;I**/I*>

-E9ITT*/E(@H9TH2

HTT8

:/$E-(

>?-*TEE(

>I;T /5EM?E(

/-EIT /-(

/(5 9*>E9E*T

(E-AI/E( AIN. /(5/*/E*T-TI* H/!NE- #:*/E H/!-2I /::E/TI* H/ET/.

269E*T *

/::E/TI* (E-AI/E(

A6()I;T

;-EI>* E/5*>E

T-*(;E-(

/::E/TI* ; #I::(

SIT.P&+MS) Tu/(u# ==


56/91

SME PRO+UCTS:

SI-%O- %a/! of t4! 0#odut '#i!f d!s#i0tion

1. Ays"-ent scheme for discounting of rentals of

commercial properties.

%. #usiness loans"Trade scheme for traders @upto maximum of -s.%= lakhs8.

'. 9power #usiness account destination product for all the (9E overdraft accounts with value added features.

ovt. of India -elief #onds.

3. )are 5ouse -eceipts U)5-V scheme for providing short term loansagainst )5-.

10. Ays"9ahindra (cheme for financing working capital to thedealers of 9ahindra F 9ahindra.

11. /astrol India :td. scheme of extended credit facility to/astrol dealers.

1%. $odak India :td. scheme for financing to the clients of$odak.

1'. -aymonds :td. scheme for financing -aymonddistributors.

1


57/91

RE.I%VESTME%T PLA%S OR A6SHAYA +EPOSITS

ne time investment that earns interest on interest! compounded at

Muarterly rests.

Ad3anta"!s:

Earns a higher rate of interest.

*o income"Tax on interest earned.

#alance held in the exempt from )ealth Tax.

>ifts made out from these accounts are free >ift Tax-

;ree repartribility of the balances held in the account inclusive of interest

wherever desired.

/ompliance of all standing instructions eliminates all botherations back

home.

2articipation in the Indian /apital 9arket freely possible from of out the

balances in the account! so also ac4uisition of real estate.

T4! %RO Aount:

This is a designated account of a person on his departure abroad for employment!

business or vacation or an account can be opened by an *-I for domestic transactions. The

*- account can be opened by any *-I savings! current or even fixed deposit account.

T4! %RE ACCOU%T

This is an account maintained in Indian rupees that offers you the convenience of being

fully repatriable. The *-E account can be opened by any *-I as a savings! current or even

fixed deposit account.

THE FC%R Aount:

This is a fixed deposit account that is free from any exchange risks and offers

competitive interest rates. The ;/*- account can be opened by any *-I as a fixed deposit

account or -e"investment deposit.

SIT.P&+MS) Tu/(u# =,


58/91

THE RFC Aount:

The -;/ account is for the benefit of those *-Is who have returned home for

permanent settlement! after a minimum stay of one year abroad. The -;/ account can be

opened by an *-I who has permanently returned home to settle down and can be opened as a

savings! current even as a fixed deposit account.

JOI%T ACCOU%TS:

*on"resident account can be opened in the Boint names of two or more non"residents.

In case of *- accounts! Boint accounts can be opened with close relatives and

residents in India too.

-emedies from abroad can be made in any of the designated currencies by way of

telegraphic transfer! mail transfer! demand drafts! che4ues! etc.! preferably abroad.

TELE&RAPHIC TRA%SFER:

Instruct your banker to remit the funds to the credit of I*> Aysya banks ccount

maintained with the foreign correspondents by furnishing the name of the branch where you

wish to open the account along with relevant details. In case of operational accounts like

savings and current accounts! the period of deposit need not be specified. -emittances can besent through our correspondent banks as listed.

+EMA%+ +RAFT:

Instruct your banker to send the demand draft along with the completed application

form to the banks branch where the account is to be opened. The branch will arrange to issue

the deposit receipt! effective from the date of value realization. -emittances received in other

designated currencies will be converted to the re4uired currency! at the option of the depositor

at the cross currency rates.

5ESTER% U%IO% FI%A%CIAL SERVICES:

Inbound -upee remittances from across the globe are also possible through )estern

union money transfer services. This is the 4uickest mode of the transfer from any part of the

world with the beneficiary receiving the funds! in a span of Bust a few minutes.

SIT.P&+MS) Tu/(u# =+


59/91

-esident can receive funds up to a maximum of ?(O%=00 or its e4uivalent per

remittance with an annual ceiling of 1% remittances per resident. ;oreign tourists and students

can also avail this service. /redit to *-EH;/*- accounts is not permissible.

Int!#n!t 'an(in":

mi"bRnk gives you access to your bank account from the comfort of your home! or any

other location in the world! % Aysya #anks own T9s! plus free transactions at over +000 non"

I*> Aysya #ank T9s displaying the cirrusH9aestro symbol. ;lexibility of unlimited

shopping in India and abroad

Uti*ity Pay/!nts:

;ree electronic bill payment facility enables online payment of utility bills in India.

S/a#ts!#3:

;ree access to personal assistants! which facilitates routine errands as well as home

delivery of tickets! flowers and gifts. 2ay your childrens school fees without the hassle of

follow"up.

Lo(!# Fai*ity:

vailable in our select outlets throughout India in over %00 branches or more.

+!/at Aounts:

;ree emat accounts that enable you to buy! sell! hold or transfer securities in electronic

format.

Po#tfo*io Mana"!/!ntN:

)e manage your funds to double your income through private banking.

SIT.P&+MS) Tu/(u# =3


60/91

Lif! Insu#an!:

The simplest way to secure your life is through I*> Aysya :ife Insurance! which is

world renowned for protection! saving and investment.

Mutua* Funds:

dditional script to reroute your pocket funds to build a separate folder.

Indian Ca0ita* Ma#(!t:

1. 2rimary 9arket7 Its a simple way to reap the benefits from the primary market.

In fact! your decision ends with direction to buyHsell. The #ank does the rest.

%. (econdary 9arket7 novel scheme providing an easy access to the secondary

capital market in India. Enrolment under the scheme entitles you to Lbuy and

sell.

Loans and O3!#d#afts:

:oans and verdrafts can be availed against *-EH*-H;/*- term deposits up to 3=

of the deposits amount. :oansHoverdrafts are not permitted against -;/ accounts.

%ro#u$t %ro&ile

I*> Aysya is oriented toward providing integrated financial services to meet all your

#anking! Insurance and Investments re4uirements under a single ?mbrella.

The products are classified under different heads7

;inancial 2roducts

-etail #anking 2roducts

:oans 2roducts

SIT.P&+MS) Tu/(u# &0


61/91

Insurance 2roducts

Term eposit

Finania* P#oduts:

?-C#!dit Ca#ds:

ver '0 million establishments worldwide accept I*> Aysya #ank /redit /ard

)ith I*> Aysya #ank /redit /ards you get unmatched benefits and service that

only I*> Aysya #ank can offer

*o 2etrol Transaction ;ee s an introductory offer! the I*> Aysya #ank

/redit /ard provides the exclusive benefit of no transaction fee on petrolpurchases at any petrol pump that accepts the cards in India! as against thenormal fee of %.= as charged by other banks.

-educed (ervice /harge on Emergency /ash Every time you withdraw cash! a

reduced service charge of 1.= will be levied from the date of withdrawal to thedate of billing! as against the normal service charge of %.3= per month chargedby other banks.

-+!$it Ca#ds7

ebit /ard provides for on"line electronic payment from savings H current accounts

for purchases and access to T9s for cash withdrawals and en4uiries. It can be used both as an

T9 card and as a method of payment @instead of cash H che4ues8 when purchasing goods and

services! in India and overseas.

9ost of the ebit /ards issued by banks are also T9 cards. 5ence they are also

sometimes called as Qebit cum T9 cardQ. )hile T9 /ards can only be used to access

cash! ebit /ards can be used to make purchases at retail shops in the same way /redit /ards

are used. There is no credit check re4uired to apply for a ebit /ard. *ormally all savings

accounts and current account holders are eligible for a ebit /ard. ebit /ard can be used at

any merchant location displaying the AisaHAisa Electron logo and at any T9 displaying the

AisaH2:?( logo. #esides that! one can always use it at any of the #anks T9Ps as a normal

T9 /ard.

I*> Aysya #ank issues T9 cum ebit /ard in association with 9aster /ard

International which are /irrus H 9aestro compliant. The I*> Aysya #ank International ebit

/ards thus have wide acceptance! both locally and globally

SIT.P&+MS) Tu/(u# &1


62/91

ccordingly! the ebit cum T9 /ard! gives you the freedom to access your savings or

current account at merchant locations and T9s! across banks. )henever you make payments!

the amount will be instantly debited from your ccount The ebit cum T9 cards allow you

to access your account %< hours a day! all through the year.

-+!/at Aount 9Vys +P:

A6(2 emat account is an account in electronic form! which will enable you to

purchaseHematHhold or transfer securities.

epository is like a bank where securities are held in electronic @dematerialised8

form. In India! there are two epositories "*ational (ecurities epositories :imited @*(:8

and /entral epository (ervices :imited @/(:8.

?nder the epositories ct! investors can avail of the services of the epositories through

epository 2articipants @28 such as I/I/I #ank. 2s are like bank branches wherein shares in

physical form need to be deposited for converting the same to electronic @demat8 form.

ematerialisation is the process of converting the securities held in physical form @certificates8

to an e4uivalent number of securities in electronic form and crediting the same to the investorPs

demat ccount ematerialised securities do not have any certificate numbers or distinctive

numbers and are dealt only in 4uantity i.e. the securities are fungible.

emat is an online trading account for investing in stocks foregoing the cumbersome

paperwork with total control over trades.

G-Mutua* Funds:

9utual ;unds are collective investment vehicles that pool together the funds of a

number of investors to invest on their behalf in order to achieve a common obBective. They

invest in a wide spectrum of investment avenues like E4uities! ebentures! #onds! *on"

/onvertible ebentures! >overnment (ecurities! T"bills! /2s! -E2s! etc.! depending upon the

nature of the scheme.

RETAIL 'A%6I%& +EPOSITS

?-!#o 'a*an! Aount:

roaming facility! with all the benefits of a current account! the Nero #alance ccount!

delivers a seamless transaction between deposits and withdrawals! anywhere in the country.

SIT.P&+MS) Tu/(u# &%


63/91

-Cu##!nt Aount:

convenient account that allows unlimited transactions to business concerns!

entrepreneurs and self"employed professionals.

-Cas4 Con!nt#ation Aount:

issolving geographical boundaries! /a(in" funds a3ai*a$*! any ti/!) !3!#y ti/!!

our inter"city #anking services provides! freedom of choice! action and satisfaction 9aking

investment and borrowing decisions easy.

G-Sa3in"s 'an( Aount:

secure and li4uid account designed to fulfill the needs for savings and thrift of

common people

Aysya

#ank in association with :es /oncierges :ife sciences 2vt :td! the industry leader in providing

personal assistance service. esigned exclusively for customers of I*> Aysya #ank! this

service provides you with convenience in your personal and professional life.

- M0o1!# . Co#0o#at! Sa*a#y Aount7 "

The 9power account benefits both the employees and employer alike. ;or employees! it

provides convenient and value"added banking facilities across networked branchesG while

employers benefit from a hassle free salary disbursement system I*> Aysya #ank is one of the

few banks offering this product in the industry.

- A!ss P*us:

SIT.P&+MS) Tu/(u# &'


64/91

#y using ccess 2lus! operate a single /urrent ccount from + cities.

F!atu#!s

single /urrent ccount! with access from + cities in India (eparate /he4ue books for each center for easy reconciliation

2ooling of funds in the city of residence

cost effective product

sset 2roducts

1.AysAyapar Wfor business enterprisesXP#o!!din" y!a#s of $usin!ss ati3ity /ust #!f*!t as4 0#ofit- T4!

$o##o1!# /ust $! 3ou4!d saf! $y $an( /ana"!# o# any 3a*u!d *i!nt of t4!$an() fo# #!dit 1o#t4in!ss

SIT.P&+MS) Tu/(u# &


65/91

-Loans a"ainst +!/at S!u#iti!s:

F!atu#!s

?se the power of your portfolio in the demat formP dvance against demat securities!

from I*> Aysya #ank! is an overdraft facility to use the power of your portfolio!

without selling the shares. 6ou will continue to enBoy appreciation! dividends! rights!

bonus and all other benefits! on your investments.

-Ho/! Loans:

The I*> Aysya 5ome :oan has been carefully and thoughtfully designed. Its flexible!

its sensitive! and its so convenient. nd! most of all! its generous! in many little ways.

;ree life insurance to the extent of full term for the full loan amount

;ree property insurance for the first year

(cheme for 100 funding available

;inance including stamp duty! registration fee! power F water deposits etc.

;ixed rate and floating rate options available

;loating rate loans are linked to 9I#- @9umbai Inter #ank ffer -ate8 with a

4uarterly reset. 9I#- is a transparent third party financial market index

:oan repayment is E9I based. Interest will be calculated on a daily reducing

method.

G-Vys Mo$i*! fo# Ca# Loans:

Ays9obile car :oans come with convenient repayment options F attractive interest

rates. They re4uire minimal paperwork and are approved speedily. These loans are available

under Income 2rogram! (urrogate 2rogram and *o Income ocuments 2rogram.


66/91

Ays?nits offers the depositor functional short"term disinvestments! without effecting

change on the contracted rate of interest.

-Vis 'i(! fo# t1o 14!!*!#s-

F!atu#!s:

/onvenient repayment options of & H 1% H 1+ H %< H '0 H '& months.

:oan

Documents

Assistance to Mining Sectors by ING VYSYA Bank