Wealth Management Products at Ing Vyshya Bank

8/2/2019 Wealth Management Products at Ing Vyshya Bank

1/85

Wealth management products

1. INTRODUCTION

The term finance refers to the concepts of time, money and riskand how they are

interrelated. Banks are the main facilitators of funding through the provision ofcredit, although

private equity, mutual funds, hedge funds, and other organizations have become important.

Financial assets, known as investments, are financially managed with careful attention to financial

risk management to control financial risk. Financial instruments allow many forms ofsecuritized

assets to be traded on securities exchanges such as stock exchanges, including debt such asbonds

as well as equity inpublicly-traded corporations.

Financialstability is crucial for sustained economic growth but this cannot beachieved

without strongfinancial systems.

The far-reaching changes in the Indian economy since liberalization in the early 1990s have

had a deep impact on the Indian financial sector. The financial sector has gone through a complex

and sometimes painful process of restructuring, capitalizing on new opportunities as well as

responding to new challenges.

During the last decade, there has been a broadening and deepening of financial markets.

Several new instruments and products have been introduced. Existing sectors have been opened to

new private players. This has given a strong impetus to the development and modernization of the

financial sector. New players have adopted international best practices and modern technology to

offer a more sophisticated range of financial services to corporate and retail customers. Thisprocess has clearly improved the range of financial services and service providers available to

Indian customers. The entry of new players has led to even existing players upgrading their

product offerings and distribution channels. This continued to be witnessed in 2002-03 across key

sectors like commercial banking and insurance, where private players achieved significant success.

These changes have taken place against a wider systemic backdrop of easing of controls

on interest rates and their realignment with market rates, gradual reduction in resource pre-emption

by the government, relaxation of stipulations on concessional lending and removal of access to

concessional resources for financial institutions.

Over the past few years, the sector has also witnessed substantial progress in regulation

and supervision. Financial intermediaries have gradually moved to internationally acceptable

Lorven college of science and management 1
http://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Credithttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Mutual_fundshttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Financial_riskhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Securitizationhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Equityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Credithttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Mutual_fundshttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Financial_riskhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Securitizationhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Equityhttp://en.wikipedia.org/wiki/Public_company


2/85


norms for income recognition, asset classification, and provisioning and capital adequacy. This

process continued in 2002-03, with RBI announcing guidelines for risk-based supervision and

consolidated supervision. While maintaining its soft interest rate stance, RBI cautioned banks

against taking large interest rate risks, and advocated a move towards a floating rate interest rate

structure. The past decade was also an eventful one for the Indian capital markets.

On account of the subdued global economic conditions and the impact on the Indian

economy of the drought conditions prevailing in the country, 2002-03 was a subdued year for

equity markets. Despite this, the National Stock Exchange (NSE) and the Bombay Stock Exchange

(BSE) ranked third and sixth respectively among all exchanges in the world with respect to the

number of transactions. The year also witnessed the grant of approval for setting up of a multi-

commodity exchange for trading of various commodities. In the midst of these positive

developments, a key issue that continues to impact the Indian financial sector adversely is that of

asset quality and consequent pressure on capital. The liberalization and globalization of the Indian

economy led to a process of restructuring and consolidation across several sectors of the economy.

Several units that were set up in a protectionist environment became unviable in the new paradigm

of competition in the global market place. Volatility in global commodity prices has a major

impact on Indian companies. This has led to non performing loans and provisioning for credit

losses becoming a key area of concern for the Indian financial system. The NPA problem in India,

viewed in the context of comparison with other Asian economies, does not pose an insoluble

systemic problem; at 8% of GDP, the NPA levels are significantly lower than the levels of 30-40%

seen in other Asian economies. The key problems in India have been the inability of banks to

quickly enforce security and access their collateral, and the capital constraints in recognizing large

loan losses. Recent measures taken by the Government have attempted to address both these

problems. The Securitization and Reconstruction of Financial Assets and Enforcement of Security

Interest (SARFAESI) Act creates a long-overdue framework for resolving the distressed credit

problem in India, by providing legal support to the resolution process and thereby encourages the

flow of capital into this specialized sector.

In this manner the wealth management products got much importance in the Indian

economy which has reduced the problem of NPA and the blocked capital started to flow in the

economy.



3/85


The improvement of any economy depends mostly on the proper utilization of available

resources. Finance is not an exception. The available funds should be used appropriately with good

investment decisions or financial management. The financial management is the process associated

with financial planning and financial control. Financial planning seeks to quantify various financial

resources available and plan the size and timing of expenditure. Financial decision-making is also

an important part of the modern day financial management process. The particular entities

involved in financial management also need to be able to take the financial decisions that are

intended to benefit them in the long run and achieve their financial aims, which is the basic

premise of financial management.

The investment management plays a major role in financial decision making. The

availability of wealth management products has increased the opportunities for people to have a

wide area of investments in their portfolio. It has led to the popularity of wealth management

products and their role in the developmental activities.

ABOUT THE TOPIC

WEALTH MANAGEMENT PRODUCTS



4/85


Wealth management is it just for the super rich? Or is it for everyone? With wealth

and disposable income growing, wealth management is getting increased attention.

Wealth Management is an advanced investment advisory discipline that incorporates

financial planning and specialist financial services. The key objectives are to provide high net

worth individuals and families with tailored retail banking services, estate planning, legal

resources, taxation advice and investment management, with the goal of sustaining and growing

long-term wealth. Whereas financial planning can be helpful for individuals who have accumulated

wealth or are just starting to accumulate wealth, one must already have accumulated a significant

amount of wealth for the wealth management process to be effective.

Wealth management can be provided by independent financial advisers or large corporate

entities whose services are designed to focus on high-net worth retail customers. Such customers

would be considered 'mass affluent' or 'upper retail' clients because of theirnet worth, the number

of potential products they own from financial institutions, theirassets under management and other

methods of segmentation. Large banks andbrokerage houses create separate sales forces, services

and other 'benefits' to retain or attract these customers who are typically more profitable than retail

banking, brokerage, or insurance customers.

Wealth management services are provided by banks, professional trust companies, and

brokerages. For those with sizeable assets [usually over $500,000], professional wealth

management can help you plan your estate or invest your assets based on personal criteria and

financial goals.

Wealth management is classified as a type of financial planning tool that provides corporate

and their families with private banking, asset management, legal resources, real estate planning,

investment management and portfolio management with the goal of sustaining and growing long

term wealth. Wealth management service providers have segmented the Indian market into four

categories: the mass market (investible surplus USD5,000 to 25,000); the mass affluent

(USD25,000 to 1 million); the high-net-worth (USD1 million to 30 million) and the ultra-high net

worth (greater than USD30 million).

Wealth management services - not just for the wealthy anymore!

Does everybody need wealth management services? Some probably think dont. But

with the changing trends in the ability to earn and save, with the shift from savings in traditional

http://en.wikipedia.org/wiki/Financial_planninghttp://en.wikipedia.org/wiki/Financial_planninghttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Estate_planninghttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Mass_affluenthttp://en.wikipedia.org/wiki/Mass_affluenthttp://en.wikipedia.org/wiki/Mass_affluenthttp://en.wikipedia.org/wiki/Net_worthhttp://en.wikipedia.org/wiki/Assets_under_managementhttp://en.wikipedia.org/wiki/Brokeragehttp://en.wikipedia.org/wiki/Brokeragehttp://en.wikipedia.org/wiki/Financial_planninghttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Estate_planninghttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Mass_affluenthttp://en.wikipedia.org/wiki/Net_worthhttp://en.wikipedia.org/wiki/Assets_under_managementhttp://en.wikipedia.org/wiki/Brokerage


5/85


guaranteed products and increasing awareness of wealth management services, most of the people

will surely agree that wealth management services arent just for the wealthy anymore!

Increasing wealth management services

A number of banks and financial institutions are seeking a share in the fast-growing wealth

management services market thats set to double every two years. Today one can choose among a

number of private banks like ING Vysya, Citigroup, ICICI, Standard Chartered and ABN Amro.

One can also avail wealth management services at nationalized banks like State Bank of India and

Canara Bank. NRIs are estimated to hold financial wealth to the tune of $500 billion in India. NRIs

form a major chunk of the customer base for Personal Wealth Management industry in India.

With the combined wealth of the 20-million strong NRI population estimated to be over

one trillion dollars, increasing wealth management services will surely ring in more financial cheer

for NRIs here! Previously, NRIs had to avail wealth management services from abroad. But today

with the increasing number of wealth management services available here, they dont need to seek

help elsewhere! Personalized financial planning services and packages and a host of exclusive

privileges of building wealth and security thats what wealth management services assure!

Wealth Management Services choose wisely!

Wealth management means more than just sticking to a budget! It helps to plan for the

future. Onell find himself/herself in the midst of services that claim to help to manage the money

and provide with complete wealth management services. Wealth management services provide

customized solution for the assets people own and follow the right avenue to ensure the

achievement of financial goals. Those who want to manage their wealth are just need to offer the



6/85


necessary details on their finances to the wealth management executive. The executive will help to

build the financial plans so one can feel comfortable and be assured that he/sheve managed their

wealth in the best way!

However, its important to look at the experience of the wealth management service and

the companys reputation before entrusting the wealth into their hands.

Key Findings & highlights in wealth management products

During the second half of 2007, there was a contrasting difference between the matured

and emerging economies where emerging market captured the major portion of wealth

management.

In 2007, the global economy grew by 5.1%, down slightly from the 5.3% global growth in

2006.

The United States had one of the worlds lowest savings rates in 2007

The population of HNWIs reached 10.1 trillion in 2007

The Indian market has outperformed global markets significantly and formed new highs

coincided with a continuous increase in derivatives position which peaked at over Rs1

trillion

Reasons to Buy Wealth Management Products

Spot Investment opportunities

Reveals the factors that hamper growth of Wealth Management Industry in India

Get a thorough understanding about the industry and prevent further losses

Know the corrective measures for sustainable growth in the industry

Important wealth management products

The wealth management products are those products which offer a number of options for

an individual to allocate their present financial resources expecting certain future benefits. Certain

important wealth management products include-



7/85


Life insurance

General insurance

Mutual funds

Fixed deposits Government bonds and securities etc.,

Advantages and Disadvantages of Wealth Management Services

Advantages to the individual

Wealth management products provide diversification in the portfolio on an individuals

investments.

It provides the knowledge of market risk and guides the individual to reduce those risks.

It provides access to easy availability of funds.

It increases the performance of the investments by creating more wealth.

It provides an acute sense of achievement as a family to the individual investors.

They provide a certain level of freedom to the investors to choose their investment options.

It provides an opportunity of employment.

It offers security of funds and instills a sense of pride and belongingness.

Advantages to the business

Investing in wealth management products can be a competitive advantage to business

enterprises.

They offer a more strategic selection of products and managers than tactical.

It creates enthusiasm and passion in business people.

It can even enable a company to outperform their competitors or their own past records.



8/85


Disadvantages to the individual

Individual may feel trapped and it might prevent doing what he/she really wants with their

funds.

There is a low level of transparency in the wealth management products. There is a lack of individual control on their invested funds and the funds are prone to the

exposure of other investors cash flows.

It can be difficult to raise liquidity in the investments.

Disadvantages to the business

It can be difficult to raise capital.

Decisions may be too emotional with regard to their investments.

There may be a deep seated aversion to change.

It can be a struggle to continue the spirit of entrepreneurial flair.

New Trends in Wealth Management

The first trend in wealth management is an emerging understanding of the difference

between financial planning and wealth management. Over the past few years, attempts have been

made to explain what wealth management really is. Answers usually revolve around a client's

portfolio size or net-worth, and many professionals think wealth management is only for the ultra-

wealthy. Not necessarily.

One has to think of wealth management in the context of financial planning. A

financial plan, or a financial planning engagement, can occur as a one-time engagement. The

service provider gathers facts and qualitative goals from their client, as well as their objectives and

life dreams. Then they will assemble a report for their client that recommends strategies for

maximizing their financial resources and accomplishing their objectives. Wealth management, on

the other hand, is the manifestation of a financial planning engagement into a pro-active and

holistic relationship for an indefinite length of time or at least the foreseeable future.



9/85


Wealth management definitely includes life planning, and the wealth manager agrees

to act as a client's head coach and will oversee and advise the work done by other professionals. A

wealth manager is accountable for ensuring a client has a current estate plan, but the wealth

manager doesn't necessarily draft documents. Wealth managers make sure their clients are properly

insured, including ownership and beneficiary designations for life insurance. But, a wealth

manager doesn't necessarily sell insurance.

Another trend is that of a comprehensive Customer Relationship Management (CRM)

system that incorporates workflow and the service model. Most firms today still operate under the

"squeaky wheel gets the grease" model. In other words, the clients who call most frequently and

demand regular meetings with their advisors are the ones who actually get those meetings. The

other clients, who do not make such demands, don't get meetings or special attention.If the service provider has a service model that mandates that all "A" clients receive weekly market

reports, monthly newsletters on financial planning, quarterly performance reports, quarterly phone

calls and face-to-face meetings three times per year, he/she need to make that happen. This is no

time for excuses and a good CRM will see to it that these events occur and that meetings are

scheduled.

Wealth Management Technology Trends

It's hard to talk about trends without addressing technology. Technology advances for

financial professionals seem occur almost daily. Outsourcing is one of the most telling trends. How

many firms still struggle to pull together quarterly reporting, daily account reconciliations and data

scrubbing? Many firms have scrapped their centerpiece or advent software only to outsource the

whole system for recordkeeping and reporting. This usually saves money in the short run and

provides instant scalability and continuity going forward.



10/85


11/85


How to finance the college expenses of the children?

How to finance the marriage expenses of the children?

Is there enough insurance to protect the family in future?

Is there a systematic investment, withdrawal and transfer plan for an individualsinvestment?

The answer to these questions lies in selecting a good wealth management product that fulfills

ones objective to have a future financial planning.

ING Wealth Management Services offers an extensive range of Wealth Management

solutions designed specifically to meet the financial needs and aspirations, of its customers to leave

them live happily. The bank has an approach designed, to give the wealth management solution to

its customers based on understanding the need horizon and risk preferences which will be

integrated with the right product.

ING Approach

ING approach starts with a thorough understanding of the customers objectives, to

develop a personalized investment plan that summarizes their current situation, long-term and

short-term goals, risk tolerance and the appropriate asset allocation.

This unique approach includes:

Creating proper asset allocation, according to risk profile.

Selecting best-performing investment products.

Regular monitoring of investment portfolios.

Rebalancing investments and recommending changes when required.

Periodic review and statements.

INGs strong research capabilities, both domestic and international, disseminate

information periodically via newsletters. INGs Wealth Management Services are also backed by a

strong technological platform that facilitates full control over the investment portfolio including



12/85


online transacting and viewing of portfolio, providing full freedom to access investment portfolios

anywhere, anytime.

Features of ING Vysyas wealth management products

ING Vysyas wealth management products have certain distinctive features that ensure

its efficiency. They are-

Distinct Financial Planning.

Identifies the customers financial goals and risk appetite.

Understands the customers future cash flows.

Develops a path to achieve the financial goals of customers considering their risk

appetite.

Monitors and review the portfolio periodically.

Easy Online access to the household portfolio.

Online subscription and redemption of mutual funds.

No cheque/ no separate application forms to be filled.

Access to the exclusive market/fund updates.

ING Vysyas wealth management products

The important wealth management products of ING Vysya bank are-

1. Life Insurance.

2. Mutual Funds.

Life Insurance

Life is a roller coaster ride and is full of twists and turns. One cannot take anything for

granted in life. Insurance policies are a safeguard against the uncertainties of life.

Insurance is system by which the losses suffered by a few are spread over many, exposed to similar

risks. Insurance is a protection against financial loss arising on the happening of an unexpected

event. Insurance policy helps in not only mitigating risks but also provides a financial cushion

against adverse financial burdens suffered.

ING Vysya Life Insurance Company Private Limited entered the private life insurance

industry in India in September 2001. Within a short span of time ING Vysya Life Insurance has



13/85


registered an impressive growth. The company currently has over 10,000 active advisors working

from 75 branches (in 30 cities) across the country and over 2300 employees.

ING Vysya Life Insurance is based on the tool of The Life Maker.

The Life Maker: The simplest way to choose a Life Insurance plan. It tells the reason for

purchasing Life Insurance and helps to choose a plan suitable for the personal financial needs of

the customers. The advantages are:

Protection: Life insurance helps to provide financial security and protection to the

customers family, in case something happens to the customer.

Savings: It works as an attractive tool for long term saving as premiums are paid regularly

over an extended period with additional tax benefits.

Retirement: Makes sure that the customers have regular income after the retirement and

helps them to maintain their standard of living.

Investment: Since the premium paid by the customer will be invested in the Unit Linked

Funds chosen by them, the policy offers scope for investment value appreciation so that at

the end of the term the customers and their family get an added return for their investment.

ING Vysya Life Insurance plans

ING Vysya bank offers three important types of insurance plans. They are-

1. Traditional Plans:

The traditional plans of ING Vysya Life Insurance offer a few types of insurance plans

which cover both the money back and endowment policies. The important traditional plans are-

Creating Life Child Protection Plan.

Reassuring Life Endowment Plan.

New Fulfilling Life Plan etc.,

2. ULIP Plans:

The policies under this plan are limited premium paying term policies. The funds

invested under this plan are further invested in the various Unit Linked Funds like Debt funds,

http://www.inglife.co.in/downloads/pdf/benefitillustrations/New%20Fulfilling%20Life.pdfhttp://www.inglife.co.in/downloads/pdf/benefitillustrations/New%20Fulfilling%20Life.pdf


14/85


Secure funds, Balanced funds, Growth funds and Equity funds as per the choice of the customer.

The important ULIP plans are-

Creating Star Child Plan.

ING Positive Plan A Savings Solution.

ING Highlife.

High Life Plus.

ING Life Plus.

ING Term Life.

ING Term Life Plus etc.,

3. Pension Plans:

The policies under this plan are best for finding the retirement solutions. There is a fixed

amount of returns declared by the bank. There is no life coverage benefit under the pension plans.

The important pension plans are-

ING Golden Life.

ING Best Years Retirement Plan.

ING Prime Life.

Platinum Life etc.,

Mutual Funds

ING Vysya mutual fund benefits from the vast international experience and professional

expertise of its promoters the ING Group, Dutch insurance and banking giant. ING, one of the

largest financial services groups globally, took over the former Vysya Bank in India to form ING

Vysya Bank.

ING Investment Management (India) Private Limited is the AMC for the mutual fund with

the sponsor of the fund holding a majority stake in the company. ING Vysya mutual fund strives to

provide investors with the most practical and secure investment opportunities to invest their

valuable savings. As of Aug 2006, the fund has assets of over Rs.4,898 crore under management.

The important schemes of ING Mutual Funds are-

Single Manager Equity Scheme

ING Contra Fund

http://www.inglife.co.in/downloads/pdf/productbrochures/HIGHLife%20Bro.pdfhttp://www.inglife.co.in/downloads/pdf/productbrochures/HIGHLife%20Bro.pdf


15/85


ING Domestic Opportunities Fund.

ING Core Equity Fund.

ING Midcap Fund.

ING Tax Savings Fund etc.,

Single Manager Debt Scheme

ING Liquid Fund.

ING Short Term Income Fund.

ING Income Fund.

ING MIP Plan.

ING Gilt Fund- Regular etc.,

Single Manager Fund of Funds Scheme

ING Global Real Estate Fund.

ING Latin America Equity Fund.

Multi Manager Fund of Funds Scheme

ING OptiMix Asset Allocator Multi Manager FoF Scheme.

ING OptiMix Active Short Term Fund.

ING OptiMix Active Debt Multi Manager FoF Scheme.

ING OptiMix 5 Star Multi Manager FoF Scheme etc

INDUSTRY OVERVIEW

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

customers and to borrow and lend money. It is an institution for receiving, keeping and lending

money. The first modern bank was founded in Italy in Genoa in the year 1406 and was named as

Banco di San Giorgio (Bank of St. George).

Banking Industry has revolutionized the transaction and financial services system

worldwide. Through the development in technology banking services has been availed to the

customers at all times, even after the normal banking hours, on a 24x7 basis. Banking Industry

services is nothing but the access of most of the banking related services (such as verification of

account details, going with the transactions, etc.). In todays world, progress of online services is

available to all customers of the concerned bank and can be accessed at any point of time and from



16/85


anywhere provided the place is equipped with the Internet facility. Now-a-days, almost all the

banks all over the world, especially the multinational ones, provide their customers with Online

Banking facility.

HISTORY & EVOLUTION OF INDIAN BANKING

The advent of banking system of India started with the establishment of the first Joints

Stocks Banks, the General Bank of India in the year 1786. After this first bank, Bank of Hindustan

& Bengal Bank came to existence. In the mid of 19 th century, East India Company established

three banks: The Bank of Bombay in 1840, & Bank of Madras in 1843. These three banks were

independent units & called Presidency Banks. These three banks were amalgamated in 1920 & a

new bank Imperial Bank of India was established. All these institution started as private

shareholders banks & the shareholders were mostly Europeans. The Allahabad Bank was

established in 1865. The next bank to be set up was the Punjab National Bank Ltd., which was

established with its head quarters at Lahore in 1894 for the first time exclusively by Indians. Most

of Indian commercial banks, however owe their origin to the 20th century. Bank of India, Bank of

Baroda, Canara Bank, The Indian Bank & the Bank of Mysore was established between 1906 &

1913.

The last major commercial bank to be set up in this phase was the United Commercial

Bank in 1943. Earlier the establishment of Reserve Bank of Indian in 1935 as the central bank of

the Country was an important step in the development of Commercial banking in India. The

history stock banking in this first phase was characterized by slow growth & periodic failures.

There were as many as 1100 banks, mostly small banks, failed during the period from 1913

to 1948. The Government of India by the frequent bank failure in the country causing miseries to

innumerable small depositors & others enacted The Banking Act, 1949. The title of the Act waschanged as Banking Regulation Act 1949. There were large number of commercial banks, but

banking services were not available at rural & semi-urban areas.

The Indian Banking System: under the Reserve Bank of India Act, 1934, banks were

classified as scheduled banks & Non-Scheduled Banks. The scheduled banks are those, which are



17/85


entered, in the Second Schedule RBI Act, 1934. Such banks are those, which have the paid-up

capital & reserves of an aggregate value of the not less than Rs.5 lakhs & which satisfy RBI that

there affairs are carried out in the interest of their depositors. All commercial banks are

scheduled banks. Non scheduled banks are those, have not been including in Second Schedule of

RBI Act, 1934. The Reserve Bank of India is the supreme monetary & banking authority in the

country & has the responsibility to control the banking system in India. It keeps the reserves of all

commercial banks & hence is known as the RESERVE BANK.

Progress of Banking in India since 1969: Aggregate bank deposits constituting about two

fifths of financial assets of the household sector have risen from 15% of GDP to around 39.3%, &

the total number of branches from 8,262 to 65,931. Of these around 45.5% are now in rural areas

as against less than 22.5% at the time of nationalization of major banks in 1969.

Opening of rural branches has improved mobilization of savings in the rural sector.

Presently the rural savings accounted for 15% of total deposits. Since, bank nationalization in the

country, priority sector credit has increased from 14% of total bank credit to around 30%. The first

phase of financial reforms resulted in the nationalization of 14 major banks in 1969 & resulted in

the shift from Class banking to Mass banking. This in turn resulted in significant growth in the

geographical of banks the growth of Indian banking after nationalization.

Growth of Indian Banking Industry

The growth in the Indian Banking Industry has been more qualitative than quantitative and

it is expected to remain the same in the coming years. Based on the projections made in the "India

Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts

that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of

all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores. That will

comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03.

Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the

decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is

expected that there will be large additions to the capital base and reserves on the liability side.

The Indian Banking Industry can be categorized into non-scheduled banks and scheduled

banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about



18/85


67,000 branches of Scheduled banks spread across India. As far as the present scenario is

concerned the Banking Industry in India is going through a transitional phase.

The Public Sector Banks (PSBs), which are the base of the Banking sector in India account

for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened

with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology.

On the other hand the Private Sector Banks are making tremendous progress. They are leaders in

Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned

they are likely to succeed in the Indian Banking Industry.

In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank,

ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks

from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank,

Allahabad Bankamong others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank

Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.

Banking Segment Analysis

RBI will prepare a roadmap for banking sector reforms & the Government will

introduce a comprehensive amendment to the Banking Regulation Act. The government is keen on

making the Indian banks larger in size so that they compare with international banks & can

compete with them. More foreign direct investment is also being allowed in private banks

alongside increase in voting rights. There will be significant changes in the banking scenario. The

roadmap will also aim at improving competition among nationalized banks.

Banks in the economy

Size of global banking industry

Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a record

$74.2 trillion. This follows a 5.4% increase in the previous year. EU banks held the largest share,

53%, up from 43% a decade earlier. The growth in Europes share was mostly at the expense of

Japanese banks whose share more than halved during this period from 21% to 10%. The share of

http://business.mapsofindia.com/banks-in-india/idbi-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/state-bank-of-india.htmlhttp://business.mapsofindia.com/banks-in-india/allahabad-bank.htmlhttp://business.mapsofindia.com/banks-in-india/idbi-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/state-bank-of-india.htmlhttp://business.mapsofindia.com/banks-in-india/allahabad-bank.html


19/85


US banks remained relatively stable at around 14%. Most of the remainder was from other Asian

and European countries.

The US had by far most banks (7,540 at end-2005) and branches (75,000) in the world.

The large number of banks in the US is an indicator of its geography and regulatory structure,resulting in a large number of small to medium sized institutions in its banking system. Japan had

129 banks and 12,000 branches. In 2004, Germany, France, and Italy had more than 30,000

branches each-more than double the 15,000 branches in the UK.

Bank Crisis

Banks are susceptible to many forms of risk which have triggered occasional systematic

crisis. Risks include liquid risk (the risk that many depositors will request withdrawals beyond

available funds), credit risk (the risk that those who owe money to the bank will not repay), and

interest rate risk (the risk that the bank will become unprofitable if rising interest rates force it to

pay relatively more on its deposits than it receives on its loans), among others.

Banking crises have developed many times throughout history when one or more risks

materialize for a banking sector as a whole. Prominent examples include the U.S. Savings and

Loan crisis in 1980s and early 1990s the Japanese banking crisis during the 1990s, the bank run

that occurred during the Great Depression and the recent liquidation by the central Bank of

Nigeria, where about 25 banks were liquidated.

Numerous banks have suffered as a result of the Subprime mortgage crisis, which has

occurred on a global scale, affecting investment banks such as Lehman Brothers in the USA and

retail banks such as Northern Rock in the UK. In January 2009, several major UK banks such as



20/85


Lloyds TSB and Barclays Bank, suffered severe falls in their London stock exchange share prices

as a result of a drop in investor confidence of the asset values of those banks.

2. RESEARCH DESIGN

Introduction

Research design provides the glue that holds the research project together. A design is

used to structure the research, to show how all of the major parts of the research project -- the

samples or groups, measures, treatments or programs, and methods of assignment -- work together

to try to address the central research questions.

Research design can be thought of as thestructure of research -- it is the "glue" that holds all of the

elements in a research project together

Title

A Study on and Evaluation of Wealth Management Products of ING Vysya Bank Ltd.,

Statement of Problem

The study of wealth management products of ING Vysya Bank Limited has been taken to

analyze and evaluate the products and their role in achieving the customer satisfaction. A study on



21/85


wealth management products is important because, the awareness in people about the future

financial requirements is increasing and there is a competition among various banks that offer

wealth management products. Even in ING-Vysya, the issue is prominent. To know the status,

products, competition, customer satisfaction and expectation from wealth management products in

the branch a detailed study has been undertaken.

Need for Study

The study is conducted to explain the satisfaction of the customers towards the ING

Vysya wealth management products and a comparative analysis is made to know the efficiency of

ING Vysya bank in fulfilling the needs of its customers and its market position.

The study helps to know the efficiency of wealth management products in fulfilling the

customers needs. The comparative study reveals the reasons behind the poor performance of the

products if any. Thus measures can be taken to improve the conditions of the company with that of

the competitors. So it is very much significant to study the wealth management products of ING

Vysya bank to know its market position.

As part of academic requirement, a project work was undertaken at ING-VYSYA Bank,

Bangalore. This assignment is intended to help in understanding the management of Wealth

Management Products in ING Vysya Bank.

Objectives of the Study

To study in detail the wealth management products.

To study and evaluate the customer satisfaction.

To know the expectations of customers of wealth management services.

To compare the wealth management services with other financiers.

To analyze the performance of wealth management services.

To find and suggest the measures to overcome the problems.

Scope of the Study

The study covers Management of Wealth Management Products with respect to ING

Vysya Bank, Bangalore. The study covers the information given by banks staff & customers and



22/85


obtained from the other records of the bank. The scope of the study is limited to ING Vysya Bank

only. The study covers the performance of Wealth Management Products of ING Vysya Bank.

Research Methodology

Data collectionThere are two important methods of data collection. They are-

Primary data.

Secondary data.

Tools and techniques for data collection Various tools and techniques are used to collect the required data. They are-

Primary data is collected with the help of face to face interaction, observation and

questionnaires with the company staff and customers.

Secondary data is collected with the help of certain tools like-

Company broachers, fact sheet, journals etc.,

Certain finance books on mutual funds and investment management.

Internet.

Sample DesignThe sampling method adopted in this research is Non-Probability sampling where in the

samples are selected on the purposive basis with the judgement sampling technique. This type

of sampling is convenient for the researcher and is relatively inexpensive at the same time.

Non probability sampling is a technique in which the samples are selected on basis of

personal judgement or convenience, as the name suggests judgement (purposive) sampling is a

sampling technique where the researcher will select the samples based on his or her judgement

about some appropriate characteristics required of the sample member.



23/85


Sample SizeThe sample requirements are chosen inhabiting a high level of brand awareness and

are heterogeneous in nature. The sample size is 50.

Plan of Analysis

The collected is analyzed to arrive at the inference or to draw the conclusions. The

analysis is done by plotting the collected data in tables and graphs. Here, all the calculation is done

with the help of MS-Excel software package. Later the inferences are arrived at with the help of

these graphs and tables which are easy to understand and interpret.

Limitations of the study

The study is conducted only on the basis of data provided by the bank. Conclusions are

drawn on the basis of limited data available.

Only few models are used in analyzing the data.

Access to the information is limited.

This study is confined only to ING VYSYA Bank.

In depth study was not possible due to lack of time.

The findings & recommendations may be applicable at the period of study only

Overview of Chapter Scheme

Chapter 1 Introduction

This chapter deals with theoretical overview of the wealth management products and

banking industry.

Chapter 2 Design of the Study



24/85


This chapter explains the research design i.e. Objectives of the Study, Tools and

Techniques for Data collection and Limitations of the Study.

Chapter 3 Profile of the company

This chapter gives the complete profile of the ING Vysya Bank Ltd.

Chapter 4 Data Analysis and Interpretation

This chapter analyzes and interprets the data collected with the help of different tools and

techniques.

Chapter 5 Summary of Findings, Suggestions & Recommendations and conclusion

This chapter contains summary of findings from the analysis done during the study.

3. COMPANY PROFILE

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

Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse,

ING of Dutch origin, during October 2002.

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

team of visionaries came together to form a bank that would extend a helping hand to those who

weren't privileged enough to enjoy banking services. It's been a long journey since then and the

Bank has grown in size and stature to encompass every area of present-day banking activity and

has carved a distinct identity of being India's Premier Private Sector Bank.

BACKGROUND (ORIGIN) OF THE ORGANISATION

The Vysya Bank Limited (VBL) [Precursor to ING Vysya Bank LTD, IVBL]

The VYSYA Bank Limited started with the PRAKATANA of Mysore Arya vysya

Mahasabha, including its intention to start a bank to serve the business Community. In the year

1928, the third Vysya Conference was held at Bangalore & a resolution was passed. As a result of

which The Vysya Bank limited was incorporated on 29th March 1930. Sri. Maragapuam



25/85


Chengaian Chetty an able administrator, great visionary & philanthropist as the banks founder

chairman headed the first board of directors.

The bank was registered with an authorized capital of Rs. 20 lakhs & secured the certificate

for commencement of business on 24th

July 1930 as on the date of first balance sheet i.e., 31st

December 1931, the bank had a paid up capital of Rs. 71430, deposits of Rs. 1.06 lakhs &

advances of Rs. 1.53 lakhs. During the first 25 years i.e., by the end of 1956 the bank had 16

branches with deposits of Rs. 98.49 lakhs & advances of Rs. 48.57 lakhs. During 1950s three

banks viz., Travancore National & Quilon Bank Limited, Palal Central Bank Limited & Exchange

Bank of India & Africa failed & there was a run on other banks, yet the bank continued to enjoy

the confidence of public. Similarly, during 1960-65, small banks were forced to merge with other

banks but this bank continued to be safe at that time also. Thus the bank had a steady forward

march in its path of progress.

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

made rapid strides to reach the coveted position of being the number one private sector bank. As

on the year ending 31st March 1990, banks paid-up capital & reserves amounted to Rs. 85094.39

lakhs & Rs. 45847.59 lakhs respectively. In 1990, the bank completed its diamond Jubilee

Celebrations, then the Finance Minister Prof. Madhu Dandavate, had termed the performance of

the bank stupendous. The year of 2005 was the 75th anniversary or Platinum Jubilee year.

ING Vysya Bank Ltd. today has the pride of having become a member of the global

financial services giant, with total assets of 1313 billion euros, net profit of 9.24 billion euros for

the year ended December 2007. Further, the presence of the group in over 50 countries, employing

over 120000, serving over 75 million customers across the globe, only multiplies the credibility,

not only across the country but also across the globe. The pride of this global identity, the backup

of a financial power house and the status of being the first Indian International bank, would also

greatly enhance productivity, profitability resulting in improved performance for the bank totranslate into higher returns, to all the stake holders.

The origin of ING Group

The ING group originated with the merger of Nationale Nederlanden NV, the largest

Dutch Insurance Company and NMB Post Bank Groep NV in 1990. Combining roots and



26/85


ambitions, the newly formed company called Internationale Nederlanden Group. Market circles

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

ING Group N.V.

Profile

ING has gained recognition for its integrated approach of banking, insurance and asset

management. The company differentiates itself from others by successfully establishing life

insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary,

Poland, Mexico and Chile.

Another specialization is

ING Direct, an Internet

and direct marketing

concept with which ING is

rapidly winning retail

market share in mature

markets. Finally, ING

distinguishes itself

internationally as a

provider of employee

benefits, i.e. arrangements

of nonwage benefits, such

as pension plans for companies and their employees.

MISSION, CORPORATE STATEMENT AND OBJECTIVE

Mission

ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider

of financial services through the distribution channels of the clients preference in markets whereING can create value.

Corporate Statement



27/85


Objective of ING Vysya Bank

The main objective of ING Vysya Bank is to participate in, manage, finance, furnish

personal or real security for the obligations of and provide services to other enterprises and

institutions of any kind, to conduct banking business in the widest sense, including insurance

brokerage, to acquire, build and operate real estate and to engage in any activity which may be

related or conducive to the foregoing. The corporate governance philosophy of the bank is to

promote corporate fairness, transparency and accountability with the objective of maximizing long

term value for the stakeholders.

CORPORATE SOCIAL RESPONSIBILITY

The bank as a part ofCorporate Social Responsibility has undertaken many purposeful

activities. However, most of these are channelized at the group level under the support of ING

Vysya Foundation.

ING VYSYA FOUNDATION

ING VYSYA Foundation was set up almost three years ago actively supported by the

three business units of ING VYSYA (ING VYSYA Bank, ING VYSYA Life Insurance & ING

VYSYA Mutual Fund) to promote its Corporate Social Responsibility. The mandate for the

Foundation is to promote primary education for under privileged children. This fits in well with



28/85


ING Groups global vision of empowering children through education & INGs partnership with

UNICEF.

Accordingly, ING VYSYA Foundations commitment to empower children through

primary education has been the focus in the last three years. In a country with an estimated 50million children deprived of basic primary education & health care, enormous support, dedication

& firm belief is necessary to make a difference & to change the scenario. The foundations efforts

have very successful in reaching out to underprivileged children & providing them with a platform

to learn, grow & achieve through partnerships with 4 nonprofit organizations located in India.

ING VYSYA chances for children global initiative

ING Chances for Children is an ING worldwide corporate program that aims to give

50,000 children in India, Brazil & Ethiopia access to education before the end of 2007 & to

improve the quality of education in the local communities in which ING businesses are active.

The key objective of the ING chances for children program is to improve the well-being of

children aged 4-12 worldwide by giving them access to free, compulsory basics schooling that

aims to develop each childs ability to the fullest. ING chances for children will be doing this by

giving children access to education, by providing the necessary skills & investment in educational

organizations.

The main targets of the ING Chances for Children program are

1] To provide primary education for 50,000 children over a period of three years.

2] To improve the quality of education in the communities in which ING Businesses are active.

3] To involve as many of the ING Groups 115,000 employees as possible, either as

Ambassadors, volunteers or donors.

By starting local community development initiatives with ING employees & by working

together with organizations such as UNICEF, the ING Chances for Children program aims to

contribute to the goal of achieving primary education for all children, as stated in both the United

Nations Millennium Development Goals & the Convention on the Rights of the Child.



29/85


UNICEF PARTNERSHIP

The ING Chances for Children program has joined forces with UNICEF, the United

Nations Childrens Fund, to achieve the target of giving 50,000 children access to education. The

program will be supporting educational UNICEF projects in India, Brazil & Ethiopia. Thepartnership with UNICEF will also enable the local ING business units to team up with local

UNICEF offices & take advantage of each others unique positions at a community level.

ING VYSYA for children India initiative

In India, along with the ING VYSYA Foundation, the ING & UNICEF partnership is

focused to provide quality education for working children in Tamil Nadu. 15,000 children will

benefit from quality education in 200 learning for former child workers under the National Child

Labour Elimination Project (NCLP).

The project focuses on strategies to provide quality education for children who are either

already working in low-paid, low-skilled industries or who are out-of-school & therefore

extremely vulnerable to becoming child laborers. Activities will especially focus on preventing

child labour, protecting childrens rights & promoting quality education.

OWNERSHIP PATTERN OF ING VYSYA BANK LIMITED

DISTRIBUTION OF SHARES BY CATEGORIES OF SHARE HOLDER (Mar 2008)



30/85



CATEGORY % OF SHARE HOLDING TO PAIDUP CAPITAL

Foreign & Indian promoters 44.15

Mutual funds, banks FIIs,

Insurance Co's

15.65

Foreign Institutional

Investors(FIIs)

22.81

NRIs/ OCBs 4.50

Private Corporate Bodies 2.21

Indian Public 10.68


31/85


Performance in Ten Years at Glance

(In Rs. Crores)



32/85


Long journey of seventy-five years has had several milestones

1930 Set up in Bangalore

1948 Scheduled Bank


YearDeposits

&

Accounts

Total

Advances

Investment Net

Earnings

Paid up

CapitalReserves

1998-99

6510.4 2782.12 2453.05 30.54 17.19 420.59

1999-00

7424 3937.75 2735.65 44.31 19.79 570.48

2000-01

8141.11 4316.31 2695.11 37.19 22.62 630.12

2001-02 8068.28 4418.33 3594.2 68.75 22.62 663.72

2002-03

9186.62 5611.61 3640.54 86.35 22.62 684.35

2003-04

10478.07 6936.73 4085.24 59 22.65 724.67

2004-05

12569.31 9080.59 4195.89 -38.18 22.71 686.69

2005-06

13335.26 10231.5 4372.34 9.06 90.72 928.95

2006-07

15418.59 11976.1 4527.81 88.91 90.9 1012.38

2007-08

20498.06 14649.5 6293.32 156.93 102.47 1433.18


33/85


1985 Largest Private Sector Bank

1987 The Vysya Bank Leasing Ltd. Commenced

1988 Pioneered the concept of Co branding of Credit Cards

1990 Promoted Vysya Bank Housing Finance Ltd.

1992 Deposits cross Rs.1000 crores

1993 Number of Branches crossed 300

1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export

Promotion Council for excellent performance in Export Promotion

1998 Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR

Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance

(International Financial Journal - June 1998)

2000 State -of - the -art Date Centre at ITPL, Bangalore.

RBI clears setting up of ING Vysya Life Insurance Company

2001 ING-Vysya commenced life insurance business.

2002 The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan

schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account

that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card

and the mi-b@nk net banking service.

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

2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home

Loans

2004 Introduced Protected Home Loans - a housing loan product

2005 Introduced Solo - My Own Account for youth and Customer Service Line Phone Banking Service

2006 Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime &

Anyhow Banking

Capital Structure

Capital Structure of a company refers to the composition or make-up of its capitalization

and it includes all long-term capital resources viz: loans, reserves, shares and bonds. The capital

structure of ING Vysya bank consists of equity shares only and is shown below:

Period Instrument Authorized Issued - P A I D U P -



34/85


Capital CapitalFrom To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital

2006 -2007 Equity Share 214.75 91.26 90904791 10 90.9

2005 -2006 Equity Share 100 91.09 90720579 10 90.72

2004 -2005 Equity Share 100 22.75 22708448 10 22.71

2003 -2004 Equity Share 100 22.69 22651615 10 22.652002 -2003 Equity Share 100 22.66 22620820 10 22.62

2001 -2002 Equity Share 100 22.66 22619570 10 22.62

2000 -2001 Equity Share 100 22.66 22619320 10 22.62

1999 -2000 Equity Share 100 19.83 19786765 10 19.79

1998 -1999 Equity Share 100 17.62 17582915 10 17.58

1997 -1998 Equity Share 100 17.62 17551665 10 17.55

1996 -1997 Equity Share 100 16.7 16624665 10 16.62

1995 -1996 Equity Share 100 131.9 4173075 10 4.17

1994 -1995 Equity Share 25 5.17 2643600 10 2.64

1993 -1994 Equity Share 25 5.17 2400000 10 2.41988 -1989 Equity Share 2 1.8 1800000 10 1.8

1975 -1976 Equity Share 0.2 0.2 40000 50 0.2

1972 -1974 Equity Share 0.2 0.2 40000 40 0.16

1933 -1949 Equity Share 0.2 0.2 39598 30 0.12

PRESENT STATUS OF AN ORGANISATION

The number of branches was 471 as at the end of the Aug 2007 (including 8 regional

collection centers & 8 specialized asset recovery management branches) & 190 ATMs across

India. Of these 440 are profile branches (computerized) & 32 were non-profile branches

(uncomputerised). Under this 89 are metropolitan centers, 124 are urban, 96 are semi-urban & 81

are rural. The number of extension counters as on August 2007 stood 45. Of these 42 were profile

& 3 were non-profile.

ING VYSYA Banks Registered & corporate office is situated at #22, M.G.Road, Bangalore.

Corporate office exercises overall control of banks operation through its continued guidance, to the

Regional offices. The bank has three-tier structure, to suit the banks size & administrative

convenience as follows



35/85


Corporate office acts as a powerful link between various shareholders of the bank i.e.,

shareholders, depositors, employees etc., through the board of directors & the operational units. It

formulates policies in tune with the changing environment & statutory obligations. Corporate

office evolves system & issues necessary for implementation. Corporate office monitors the

progress of the banks business & takes corrective action to set right the direction & pace of

branches as well as employees performance.

Each department of the corporate office functions under the direct control of an executive / vice

president who ensures effective functioning of their respective departments duly assisted by seniormanagers, senior officers, etc, all the departments provided with modern office equipment &

supportive staff. Further in all the letters & office notes addressed to various departments at

corporate office by regional offices / branches, the term Corporate office may be used in address

as well as a reference in the text, for the sake of simplicity. Branches have been grouped under four

mega regions namely Andhra Pradesh, South (except Andhra Pradesh), West, North & East each

headed by a senior executive.

PRODUCT PROFILE

ING VYSYA Bank offers basket of contemporary & innovative products & services

catering to the needs of the customers.

Accounts and deposits



36/85


ING has a portfolio of banking solutions and a range of offerings for people from all

walks of life, with a view to making banking an effortless task. Whether you require a simple

savings account or a sound banking partner, ING has the perfect solutions and products to ensure a

wealthy future.

The accounts offered by ING Vysya bank are-

Savings Account

The Savings accounts are primarily meant to inculcate a sense of saving for the future

and take care of individuals day to day banking requirements. These accounts are meant to help

individual customers protect their money. The Savings Accounts also help individuals to handle

their financial transactions through a systematic banking channel. This increases the safety as

customers need not carry physical cash with them.

At ING Vysya there a few types of savings account like-

Orange Saving Account

Orange Salary Account

Solo Savings Account

Saral Savings Account

General Savings Account

Freedom Account

ING Formula Savings Account

Man power

A savings bank account designed as a power packed salary account that gives the

employees of a corporate, a host of privileges & rewards. It is a zero balance account & also offers

http://www.ingvysyabank.com/scripts/orangesavingsaccount.aspxhttp://www.ingvysyabank.com/scripts/orangesalaryaccount.aspxhttp://www.ingvysyabank.com/scripts/soloaccount.aspxhttp://www.ingvysyabank.com/scripts/saralaccount.aspxhttp://www.ingvysyabank.com/scripts/generalsavingsaccount.aspxhttp://www.ingvysyabank.com/scripts/Freedomaccount.aspxhttp://www.ingvysyabank.com/scripts/formula1.aspxhttp://www.ingvysyabank.com/scripts/orangesavingsaccount.aspxhttp://www.ingvysyabank.com/scripts/orangesalaryaccount.aspxhttp://www.ingvysyabank.com/scripts/soloaccount.aspxhttp://www.ingvysyabank.com/scripts/saralaccount.aspxhttp://www.ingvysyabank.com/scripts/generalsavingsaccount.aspxhttp://www.ingvysyabank.com/scripts/Freedomaccount.aspxhttp://www.ingvysyabank.com/scripts/formula1.aspx


37/85


two Demand Drafts of not exceeding Rs.10000 free of commission in a month. The account also

provides check-out facility a temporary overdraft to the account holders to obviate the sudden

financial commitments exceeding their arrangements in their accounts.

The account holders can open two Demat Accounts without account opening charges asnormally charges for Demat accounts. The account holders are also privileged to avail host of other

benefits offered by the bank.

Current Account

Current deposits accounts are convenience without any restrictions on operations. These

accounts can be opened in the names of individual either singly or jointly. Firms & companies can

also open an account.

Orange Account

The new savings bank account was launched on 1st August 2003. The product was

launched on 1st August 2003. The product is available across all profile branches & extension

counters in metro, urban & semi-urban cities/towns. This account is similar to that of save &

secure. But here in case of the orange account the bank would absorb the premium rather than

recovering it from the customers at the time of opening or converting the account.

Here the customer has to maintain a quarterly average balance of Rs.5000. Like the save &

secure account this account has a combined benefit of regular savings & personal accident

insurance cover along with the accident hospitalization reimbursement.

Orange Current Account

Drawing the success of oranges savings account, Bank has introduced orange current

account, for clients in its commercial segment packaged for optimum utilization. The current

account offers a host of features to meet the total banking requirements of the client.

This account also covers free personal accident insurance cover up to Rs.2 lakhs. Free

collection of cheque, free demand draft payable at par cheques up to Rs.1.5 crores per month, free

pick up & delivery of cash, cheques at selected centers, free phone banking at selected centers &



38/85


free Financial Advisory Services at selected centers from the Banks subsidiary company ING

VYSYA Financial Services Limited.

Term deposits

Those who believe in long-term investments and wish to earn higher interests on their

savings can invest their money in Term Deposit. By investing in ING Term Deposit, the money not

only stays secure but also accumulates good interest over the period of deposit. Partial withdrawal

from the Term Deposits before maturity can bail out in times of need.

The types of term deposits offered by ING Vysya bank are-

Fixed Deposits.

Cumulative deposits.

Akshaya Deposits.

Tax advantage Deposits.

Demat Account

With practically all trading being conducted electronically, most settlements happen

through Demat (Dematerialization of securities). The ING Demat Account offers a secure and

convenient way to keep track of all shares and investments, how much a person has bought and

sold over a period of time, without the hassle of handling physical documents that get mutilated or

lost in transit.

NRI Deposits

ING VYSYA Bank provides number or schemes catering to the diverse needs of Non

Resident Indians. All these schemes are covered under the guidelines laid out by the Reserve Bank

of India & enables Non Resident Indians to save & invest in India. The bank offers the

convenience of maintaining accounts in both Indian & foreign currency.

Loans



39/85


ING VYSYA BANK offers a suite of easy-to-apply Personal Loans, Housing Loans and

Loans against property at attractive interest rates. The important loans offered by ING Vysya Bank

are-

Personal Loan

Home Loan

Home Equity Loan

NRI Home Loan

Wealth Management Products

ING Vysya Bank offers certain wealth management products that emphasize the need of

savings money for future benefits. The important wealth management products of ING Vysya

Bank are-

ING Life Insurance.

ING is actively engaged in selling ING Life Insurance products. ING Life

Insurance provides a range of products including endowment, pension & unit linked plans.

ING Mutual Funds.

As a distributor of mutual funds, ING is tied up with almost all the Asset

Management Companies thereby assisting the clients to invest in mutual fund schemes,

which meet their investment requirements.

Government of India and tax saving bonds.

INGs clients can invest through us in 8% Government of India bonds as well as

in tax savings bonds like REC, NHAI and NHB.

4. ANALYSIS AND INTERPRETATION OF DATA

Analysis of primary data collected by questionnaire

Profile of Respondents



40/85


41/85


TABLE-1

a) Table showing whether the respondents are customers of WMP or not.

Analysis:

The above table shows the 80% of respondents are customers of wealth management

products of ING Vysya bank and 20% of respondents are not the customers of wealth management

products.


CUSTOMER OF WMP NO. OF RESPONDENTS % OF RESPONDENTS

YES 40 80%

NO 10 20%

TOTAL 50 100%


42/85


GRAPH-1

a) Graph showing whether the respondents are customers of WMP or not.

Inference:

From the analysis, it can be inferred that majority of respondents are the customers of

wealth management products of ING Vysya Bank. Only a limited number of customers fall behind

this wealth management products. This shows that the WMP are well noted among the customers

of ING Vysya.



43/85


b) Table showing the respondents of different WMP from among the customers of WMP

PRODUCT NO. OF RESPONDENTS % OF RESPONDENTS

MUTUAL FUNDS 4 10%

LIFE INSURANCE 22 55%

BOTH 14 35%

TOTAL 40 100%

Analysis:

The above table shows that 10% of respondents are mutual customers, 55% of

respondents are customers of life insurance and 35% of respondents are customers of both the

mutual fund and life insurance.

b) Graph showing the respondents of different WMP from among the



44/85


Customers of WMP

Inference:

It can be inferred that majority of the customers are also the customers of ING life

insurance and only less percentage of customers are the customers of mutual funds. It indicates that

the life insurance products are highly efficient in fulfilling the customer needs.

TABLE-2



45/85


46/85


ING Vysya Bank

Inference:

The above analysis shows that more number of respondent are of the opinion that the

wealth management services of ING Vysya bank are very good and no one has the opinion that the

services are poor. The services offered are as per the requirements of the customers in majority

cases.

TABLE-3

a) Table showing whether the respondents have filed complaint against wealth

management services of ING Vysya Bank.



47/85


FILED COMPLAINT NO. OF RESPONDENTS % OF RESPONDENTS

YES 30 60%

NO 20 40%

TOTAL 50 100%

Analysis:

The above table shows that 60% of respondents have filed complaint against the wealth

management services of ING Vysya Bank and 40% of respondents have not filed any complaintagainst the wealth management services of ING Vysya Bank.

GRAPH-3

a) Graph showing whether the respondents have filed complaint against wealth

management services of ING Vysya Bank.



48/85


Inference:

From the above analysis it can be inferred that highest number of respondents has filed

complaint against the wealth management services of ING Vysya Bank. This shows that the

complaints are fairly more in the services offered.

b) Table showing the time taken to respond to the complaints filed by the respondents

against WMS of ING Vysya Bank



49/85


TIME TAKEN NO. OF RESPONDENTS % OF RESPONDENTS

LESS THAN 1 MONTH 6 20%

1 TO 3 MONTHS 6 20%

3 TO 6 MONTHS 16 53%

MORE THAN 6 MONTHS 2 7%

TOTAL 30 100%

Analysis:

The above table shows that 20% of respondents complaints are responded in less than

one month, 20% of respondents complaints are responded in 1 to 3 months, 53% of complaints are

responded in 3 to 6 months and 7% of complaints are responded with the time more than 6 months.

b) Graph showing the time taken to respond to the complaints filed by the respondents

against WMS of ING Vysya Bank



50/85


Inference:

From the above analysis it can be inferred that more number of complaints of

respondents are responded in between 3 to 6 months. This is an average period to respond in which

more people may feel uncomfortable about the situation.

TABLE-4

a) Table showing whether the respondent is aware of ING Vysya life insurance services.



51/85


CUSTOMER NO. OF RESPONDENTS % OF RESPONDENTS

YES 42 84%

NO 8 16%

TOTAL 50 100%

Analysis:

The above table shows that 84% of respondents are aware of ING Vysya life insurance

services and 16% of respondents are not aware of ING Vysya life insurance services.

GRAPH-4

a) Graph showing whether the respondent is aware of ING Vysya life insurance services.



52/85


Inference:

From the above analysis it can be inferred that majority of respondents are aware of the

ING Vysya life insurance services. The bank has a wide area of life insurance policies and thus

attracts more number of customers.

b) Table showing about the satisfaction of respondents about the

Life Insurance services of ING Vysya Bank.

SATISFACTION NO. OF RESPONDENTS % OF RESPONDENTS

HIGHLY SATISFIED 4 9%



53/85


SATISFIED 20 48%

NEUTRAL 16 38%

DISSATISFIED 2 5%

HIGHLY DISSATISFIED 0 0%

TOTAL 42 100%

Analysis:

The above table shows that 9% of respondents are highly satisfied, 48% of respondents

are satisfied, 38% of respondents are in neutral, 5% of respondents are dissatisfied and 0% of

respondents are highly dissatisfied with the ING Vysya life insurance services.

b) Graph showing about the satisfaction of respondents about the

Life Insurance services of ING Vysya Bank.



54/85


Inference:

From the above analysis it can be inferred that more respondents are satisfied with the

ING Vysya life insurance services. It also indicates that only 0 percent i.e. none of the respondents

are highly dissatisfied with the services. The services of life insurance are highly efficient and meet

the customer requirements.

TABLE-5

Table showing the best ING life insurance plan according to the respondents



55/85


PLANS NO. OF RESPONDENTS % OF RESPONDENTS

TRADITIONAL PLAN 14 28%

ULIP PLAN 20 40%

PENSION PLAN 16 32%

TOTAL 50 100%

Analysis:

The above table shows that 28% of respondents are of the opinion that Traditional plans are

best, 40% of respondents are of the opinion that ULIP plans are best and 32% of the respondentsare of the opinion that Pension plans are best in the ING Vysya life insurance plans.

GRAPH-5

Graph showing the best ING life insurance plan according to the respondents



56/85


57/85


SATISFACTION NO. OF RESPONDENTS % OF RESPONDENTS

HIGHLY SATISFIED 4 8%

SATISFIED 26 52%

NEUTRAL 16 32%

DISSATISFIED 4 8%

HIGHLY DISSATISFIED 0 0%

TOTAL 50 100%

Analysis:

The above table shows that 8% of respondents are highly satisfied, 52% of respondents are

satisfied, 32% of respondents are in neutral, 8% of respondents are dissatisfied and 0% on the

respondents are highly dissatisfied about their present investment in ING Vysya Bank.

GRAPH-6

Graph showing the satisfaction of respondents about their investment in

ING Vysya Bank



58/85


59/85


60/85


61/85


HIGH RETURNS 16 32%

RISK AVERAGE 12 24%

TAX SAVINGS 10 20%

LIQUIDITY 4 8%

CONVENIENCE 4 8%

TOTAL 50 100%

Analysis:

The above table shows that 8% of respondents will select an insurance scheme on the

basis of low premium, 32% will select on high return basis, 24% will select on risk average basis,

20% will select on tax savings basis, 8% will select on liquidity basis and 8% will select an

insurance scheme on convenience basis.

GRAPH-8

Graph showing on what basis the respondents will select an insurance scheme



62/85


Inference:

From the above analysis it can be inferred that the highest number of respondents will

select an insurance scheme on the basis ofhigh returns. Any policy providing more returns gets

more customers.

TABLE-9

Table showing the opinion of respondents about the time period that

suits them to pay the premium



63/85


TIME PERIOD NO. OF RESPONDENTS % OF RESPONDENTS

MONTHLY 16 32%

QUARTERLY 10 20%

HALF YEARLY 10 20%

YEARLY 14 28%

TOTAL 50 100%

Analysis:

The above table shows that 32% of respondents opine that monthly premium payment

suits them, 20% of respondents opine that quarterly premium payment suits them, 20% of

respondents opine that half yearly premium payment suits them and 28% of respondents opine that

yearly premium payment suits them.

GRAPH-9

Graph showing the opinion of respondents about the time period that

suits them to pay the premium


8/2/2019 Wealth Man

Documents

Wealth Management Products at Ing Vyshya Bank