ING Vysya Bank

Company profile :- ING Vysya Bank (Kannada: . . ) is a

privately owned Indian multinational bank based in Bangalore, with

retail, wholesale, and private banking platforms formed from the 2002

purchase of an equity stake in Vysya Bank by the Dutch ING Group.

This merger marks the first between an Indian bank and a foreign bank.

Prior to this transaction, Vysya Bank had a seven-year-old strategic

alliance with erstwhile Belgian bank Banque Bruxelles Lambert, which

was also acquired by ING Group in 1998.

As of March 2013, ING Vysya is the seventh largest private sector

bank in India with assets totaling 54836 crore (US$8.6 billion) and

operating a pan-India network of over 1,000 outlets, including 527

branches, which service over two million customers. ING Group, the

highest-ranking institutional shareholder, currently holds a 44% equity

stake in ING Vysya Bank, followed by Aberdeen Asset Management,

private equity firm ChrysCapital, Morgan Stanley, and Citigroup,

respectively.

ING Vysya has been ranked the "Safest Banker" by the New Indian

Express and among "Top 5 Most Trusted Private Sector Banks" by the

Economic Times.

On Nov 20th 2014, in an all stock amalgamation, ING Vysya Bank

decided to merge with Kotak Mahindra Bank, creating the fourth

largest private sector bank in India.

History :-

Early years

Established in 1930s, Vysya Bank was formally incorporated in the city

of Bangalore, Karnataka. The state of Karnataka is known as the

"cradle of Indian banking" due to the region's bygone banking

relationship with several European East India Companies during the

17th, 18th and 19th centuries. Seven of the country's leading banks

(Canara Bank, Syndicate Bank, Corporation Bank, Vijaya Bank,

Karnataka Bank, State Bank of Mysore, and ING Vysya Bank) were

originally established in Karnataka.

From the 1930s through the 1950s, Vysya Bank built its banking

business organically in southern India. The bank concentrated on

serving the Vysya community, a merchant/trading community

operating across Karnataka and Andhra Pradesh. In 1958, the bank was

licensed by the Reserve Bank of India (RBI) to expand its banking

operations nationwide. In 1972, the RBI upgraded Vysya Bank to a

national B class bank.

In 1987, Vysya Bank established two independently operating

subsidiaries providing equipment leasing and home mortgaging

services (Vysya Bank Leasing Ltd and Vysya Bank Housing Finance

Ltd, respectively). In 1994, Vysya Bank began marketing several

innovative financial products to the fast-growing Indian middle-class

segment (e.g. Vysprime and Vysinvest for NRIs, Vysbuy for consumer

financing, Vysmobile for auto loan financing, and Vysequity for

common equity financing).

Globalization through Europe :-

In 1995, Vysya Bank entered into a long-term strategic alliance with

Belgian bank Bank Bruxelles Lambert (BBL). Following this

agreement, the Vysya Bank engaged KPMC Peat Marwick for

assistance in re-engineering its business processes in preparation for

globalization. In 1996, an international investment banking joint

venture (JV) with MC Securities (London), an investment banking

subsidiary of BBL, was formally established.

In 1998, the ING Group acquired BBL and all its contractual and JV

interests in Vysya Bank. In 1999, Vysya Bank joined the ING Group in

co-marketing/distribution of life insurance products in India. Vysya

Bank also acquired a 26% equity stake in the ING Asset Management

Company. In 2000, Vysya Bank, ING Insurance, and the Damani

Group formed a life insurance JV; this innovative collaboration marks

the first banc assurance venture in India.

Formal merger with the ING Group:-

In 2002, Vysya Bank's Board of Directors and the RBI approved Vysya

Bank's formal merger with the ING Group. Under Indian law, this

move allowed ING to increase its total equity holdings in Vysya Bank

from 20% to 44%. Peter Alexander Smyth and Jacques PM Kemp were

appointed to the board of the newly-formed ING Vysya Bank.

ING Vysya Bank then appointed Bart Hellemans as CEO and

managing director (MD) and G Mallikarjuna Rao as chairman of the

board.

Post merger News :-

In 2003, Western Union, a leading global money transfer firm, tied up

with ING Vysya for inbound money transfer services across India. ING

Vysya then launched three new endowment products and an innovative

retail savings account called Orange with facilities such as personal

accident and free annual accident coverage. Japanese auto

manufacturer Toyota then signed an agreement with ING Vysya for

auto financing services. ING Vysya then inked a deal with fertilizer

producers, Madras Fertiliser Ltd (MFL), to co-market/distribute life

insurance products to farmers by employing the fertilizer company's

broker-dealer network in the rural sector.

In 2005, ING Vysya Bank named Ned Swarup to the CEO and MD

role. ING Vysya launched a cheque account product for mid-sized

businesses. It also rolled-out its own proprietary online money transfer

service.

In 2006, Vaughn Richtor stepped into the CEO and MD role for a fixed

three-year term. Under Mr. Richtor's leadership, ING Vysya went

private and delisted from the Bangalore Stock Exchange. ING Vysya

also forayed into private banking and portfolio management services.

In 2009, Shailendra Bhandari was appointed as CEO and MD. He was

formerly the Head of Private Equity at Tata Capital, the Tata Group's

private equity arm. Having completed his three-year term in India,

Vaughn Richtor was promoted to CEO of ING Banking Asia.

In 2010, the Board of ING Vysya Bank nominated Mr. Arun

Thiagarajan to succeed Mr. K.R. Ramamoorthy as chairman of the

board. Mr. Thiagarajan was selected for his vast international

experience across strategic planning, economics and finance,

technology and systems.

As of January 2013, ING Group announced plans to divest itself of its

Indian insurance and investment management businesses through the

sale of its 26% interest in ING Vysya Life Insurance Company Ltd. to

its joint venture partner Exide Industries Ltd.

Current operations :-

ING Vysya Bank has competed in the banking/financial services and

insurance markets for over 80 years and currently serves over two

million Indian consumers. The bank markets an entire range of

financial products and services, organised under three strategic lines of

business: retail, private and wholesale banking.

Retail banking

With 547 branches and 10 counters, 28 satellite offices and 470 ATM's

nationwide, ING Vysya's retail operation offers cheque accounts,

savings deposits/CD's, retail wealth management services, consumer

loans, agricultural/rural banking and retail life insurance products. The

bank has rapidly expanded its distribution footprint and has created a

national brand presence through several innovative marketing

campaigns.

Private banking

ING Vysya's private bank operates on an advisory-driven model.

Specialised market research remains the bank's emphasis for the

introduction of new tailored products to serve the high-end private

banking segment.

Corporate/wholesale banking

The wholesale banking business provides corporate clients in India a

range of commercial, transactional and electronic banking products.

The bank offers client-focused products including working capital

finance, trade and transactional services, foreign exchange, term loans

and cash management services. The wholesale banking business

comprises four business sub-segments and multiple product offerings.

The business segments Corporate and Investment Banking, Emerging

Corporates, Banking and Financial Institutions and financial markets.

Agriculture and rural banking

Agriculture and Rural Banking deals with all business related to

agriculture and allied activities, Gold Loans, loans to SHGs and lending

to government-sponsored schemes. Working Capital and Agriculture

Term Loans for poultry, dairy, cold storage units etc. are also being

offered to cater diverse needs of the farming community. The bank has

accelerated retail agricultural lending at a few places in North India and

Central India especially in Rajasthan, Uttarakhand, Maharashtra,

Gujarat and Madhya Pradesh.

PRODUCT PROFILE :-

Product Name year Month

Sales Sales Value(Rs.Million)

% of STO Quantity

Interest/Discount on Advances/Bills

2014 3 0 37878.45 72.77

Income on Investments

2014 3 0 13999.49 26.9

Others

2014 3 0 152.63 0.29

Interest on Balances with RBI and other inter bank funds

2014 3 0 21.61 0.04

Products and Services :-

In Personal Banking to offer wide range of products and services in

deposits, loans, investments, insurance, forex services, demat services,

online services and wealth management services.

In NRI banking it offers money transfer, Investment products such as

International deposit, Mutual fund, online share trading, etc; also offer

property solution, insurance loan.

In Business banking it caters to SME, Retails, NRI and other corporates

offering spectrum of products and services.

The bank also provides wealth management services through ING

Wealth Management Services.

MISSION:-

INGs mission is to be a leading, global, client-focused, innovative and low-cost provider of financial services through the distribution

channels of the clients preference in markets where ING can create value.

MILESTONES IN THE LONG JOURNEY OF ING-VYSYA BANK:-

1930 Set up in Bangalore

1948 Scheduled bank

1985 Largest private sector bank

1987 The Vysya bank leasing ltd. Commenced

1988 Pioneered the concept of co. branding of credit card

1990 Promoted Vysya Bank housing financing 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-bank net banking service.

2002 ING takes over the Management of the bank from October 7

th, 2002

2002 RBI clears the new name of the bank as ING Vysya Bank ltd, vide their letter of 17/12/2002

2003 Introduced customer friendly products like orange savings, orange current and Protected Home Loans

2004 Introduced Proteced Home loans- a housing loan product

2005 Introduced solo My own Account for youth and customer service line phone banking service

2006 Introduced solo my own account for youth and customer service line phone banking service.


2008 Introduced solo my own

account for youth and customer service line phone banking service.






2014 Merge with Kotak Mahindra bank on 20/11/2014

COMPITIORS PROFILE:-

Company

Sales Curre

nt Chang

e (%)

P/E

Ratio

Market 52-Week

(Rs.

Million) Price

Cap.(Rs.

Million)

High/Lo

w

HDFC

Bank

411355.3

4

1044.2

5 -0.34 26.98

2626431.1

2

1105/70

8

ICICI

Bank

441781.5

3 311.5 -0.84 16.7

1820888.7

7 393/238

Axis

Bank

306411.5

5 553.45 -0.24 18.72

1314368.0

4 655/271

Kotak

Mahindra

Bank

87671.15 1336.1 -0.03 59.11 1032002.5

7

1457/71

1

Indusind

Bank

82535.34 879.55 -0.82 27.7 469422.34 959/472

Yes

Bank

99813.52 822.4 -0.62 18.27 345676.62 910/365

Federal

Bank

69460.81 134.7 -0.44 11.56 115872.28 154/87

Centurio

n Bk of

Punj

12685.3 41.4 0 52.93 78932.68 43/41

Karur

Vysya

Bank

51159.63 563.25 -1.87 15.61 69637.68 618/326

25459.33 96.05 1.53 14.88 56435.31 103/50

City

Union

Bank

J&K

Bank

67670.02 101.85 -2.81 7.73 50804.74 200/101

Bank of

Raj

13594.89 212.1 0 0 34222.35 214/207

South

Indian

Bank

NA 24.1 -1.03 7.91 32876.2 35/21

DCB

Bank

11282.59 105.25 -1.31 17.97 30062.08 127/57

Standard

Chartere

d

99790.88 101.5 1.96 1.51 23892 125/80

Karnatak

a Bank

41888.28 123.15 -0.24 5.84 23263.45 157/109

Lakshmi

Vilas

Bank

19839.5 96.7 -0.97 15.64 17710.94 104/48

Dhanlax

mi Bank

12919.48 30.05 -0.83 0 5376.48 61/30

United

Western

Bank

Ltd

4866.15 25.9 0 0 1392.59 0/0

Global

Trust

Bank

5395.97 1.17 0 0 NA 0/0

LAST FIVE YEAR BALANCESHEET:-

(Rs. Crore)

PARTICULARS Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10

Sources of funds

Owner's fund

Equity share capital 188.64 154.85 150.12 120.99 119.97

Share application money 0.53 0.89 1.59 1.88 2.99

Preference share capital - - - - -

Reserves & surplus 6,882.18 4,471.06 3,724.64 2,397.19 2,099.94

Loan funds

Secured loans - - - - -

Unsecured loans 41,216.77 41,334.00 35,195.42 30,194.25 25,865.30

Total 48,288.11 45,960.80 39,071.77 32,714.30 28,088.20

Uses of funds

Fixed assets

Gross block 505.82 483.74 1,067.52 1,020.20 773.73

Less : revaluation reserve - - 103.44 104.23 108.02

Less : accumulated depreciation - - 577.31 530.94 485.4

Net block 505.82 483.74 386.78 385.03 180.31

Capital work-in-progress 18.69 15.86 10.58 13.58 207.6

Investments 16,720.76 18,278.23 12,715.50 11,020.67 10,472.92

Net current assets

Current assets, loans & advances 1,513.04 33,225.15 1,817.01 1,366.91 1,377.15

Less : current liabilities & provisions 2,456.64 2,364.39 2,128.84 2,048.53 2,012.64

Total net current assets -943.6 30,860.76 -311.83 -681.62 -635.48

Miscellaneous expenses not written - - - - -

Total 16,301.67 49,638.59 12,801.03 10,737.66 10,225.35

Notes:

Book value of unquoted investments - - - - -

Market value of quoted investments - - - - -

Contingent liabilities 1,30,267.11 1,24,227.95 1,27,948.39 62,364.28 77,421.87

Number of equity sharesoutstanding (Lacs) 1886.36 1548.53 1501.24 1209.87 1199.66

Data collection:-

1- Questionnaire filled by

a) Existing customers of ING in Surat, Gujarat. b) New customers who are not associated with ING in Surat,

Gujarat.

Research design:-

Problem identification Data collection related to awareness of ING in Surat,

Gujarat.

Sampling technique

Convenience sampling

It is purposive or non-probability sampling. This sampling method involves deliberate or purposive

selection of particular units of the universe for consulting

a sample, which represents the universe and when

elements are selected for inclusion in the sample based

on the ease of access, it is called convenience sampling.

Research technique:-

Conclusive research

This type of research helps in reaching certain conclusions and also in taking decisions.

Some facts about ING-Vysya bank:-

ING-Vysya bank branches works on profit centre. Around 500 branches in India and 13 branches in

Gujarat.

Documents

ING Vysya Bank