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CONSUMER FINANCE

[ING VYSYA BANK LTD]

TABLE OF CONTENTS
SL NO 1. 2. 3. EXECUTIVE SUMMARY INDUSTRY PROFILE COMPANY PROFILE PART- A CONTENTS PAGE NO

2 3-8 9-12 13 14 15-16 16-17 17-18 18 19 19-20 21 22-26 27-28 29

a) b) c) d) e) f) g) h) i) j)
4. 5. 6. 1.

Background and inception of the company Nature of the business carried. Vision, Mission, and Quality policy. Product/service profile Area of operation-Global Ownership pattern Competitors information Infrastructure facilities Achievements / awards if any Future growth and prospectus Mc Kinseys 7S Model SWOT Analysis Learning Experience
PART B

a) General Introduction

y y y y y
2. 3. 4. 5.

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

Data Analysis Findings, Conclusions, suggestions and Recommendations Annexure Bibliography and Wibliography

30 30 31 32 33 34-49 50-52 53-54 55

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Executive Summary:
Consumer Finance has become so much important for every business undertaking that all managerial activities are connected with it. Consumer Finance viability of various positions influences decisions on them. Consumer Financial management refers to that part of the management activity. Which is concerned with the planning and controlling of firms consumer financial resources? It deals with lending and collection of funds for the company. The source must be suitable and economical for the needs of the business. This study is mainly focused on Consumer Finance, at over ING VYSYA Bank, Bangalore. This study is mainly dividing into two parts Part-A part-B. Part-A contains details about the ING VYSYA Bank in the world and in India, ING VYSYA Bank profile, Industry Profile of Banking sector, 7S adopted by the company, financial analysis, competitors of the ING VYSYA Bank, and SWOT analysis. Part-B It deals with the study of Consumer finance analysis using the comparative financial statement at ING VYSYA Bank, Bangalore. Financial system may be defined as set of institutions, instruments and markets, which foster savings and channels them to their most efficient use. The primary function of the financial market is to facilitate the transfer of funds from surplus sector to deficit sector i.e. from lenders to borrowers. The required data for the study is collected from primary sources as well as the secondary sources of interaction. The primary data have been elicited through structured and unstructured interview with the manager and staff (consumer assets dept). The secondary data has been collected from the published annual reports of the company, the department files and the brochures. The consumer financial decision making plays a vital role in an organization. The financial position and performance of ING VYSYA Bank satisfies most of the requirements of profitability of the company. The profits are in increasing trend, when compared to the past record. The consumer finance performance of ING VYSYA Bank is consistently growing over the period of years .

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PART-A INDUSTRY PROFILE


History of Banking in India:
Banking in India has its origin from the Vedic. It is believed that the transit in from money lending to banking must have accrued even before Menu the great Hindus Jurist who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest. In the present scenario, service sector plays an important role in the country. Among service sector banking is one which plays a vital role in economic development. The liberalization and economic references allowed banks to explore new business opportunity rather than generating revenues from borrowing and lending. The banking industry was regulated by The Indian banking Regulation Act of 1949,It defines a Banking Industry as Any industry which transits banking business in India. Banking means Accepting for purpose of lending all investment of deposits of money from the public repayable on demand or otherwise and withdrawal by cheque or demand draft. During the mogul period, the indigenous bankers played a very important role in lending money and financing foreign and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The general Bank of India was the first joint stock Bank to be established in the year 1786. The others, which followed were the bank of Hindustan and the Bengal Bank. According to Sir John Paget, No person on body corporate or otherwise can be a banker who does not take the following: y y y y Deposit accounts Current accounts Issue and pay cheques Collect cheques, crossed and non-crossed, for his customers. 3 CITY ENGINEERING COLLEGE

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In the first half of the 19th century the East India Company established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1846 and the Bank of Madras in 1843. These 3 banks also known as presidency Banks were independent units and functioned well. These 3 banks were amalgamated in 1920 and new bank, he imperial Bank of India was established on 27th January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the imperial bank of India was taken over by the newly constituted State Bank of India. The Reserve Bank, which is the central, was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the Swedish movement, number of banks with Indian Management were established in the country namely, Punjab National Bank Limited, Canara Bank Ltd., Indian bank Ltd. On July 19th 1969, 14 Major banks of the country were nationalized and in 15th April 1980, 6 more commercial private sector banks were also taken over by the government. Today the commercial banking system in India may be distinguished into

1. Public Sector Bank:


y y y State Bank of India and its associate banks called the state bank group 20 Nationalized Banks Regional Rural Banks mainly sponsored by public sector banks

2. Private Sector Banks: y y y y y Old Generation private banks New Generation private bank Foreign Banks in India Scheduled co-operative Banks Non-scheduled Banks

3. Development Banks:
y y y y Industrial Finance Corporation of India (IFCI) Industrial development bank of India (IDBI) Industrial credit & Investment Corporation of India (ICICI) Industrial Investment Bank of India (IIBI) 4 CITY ENGINEERING COLLEGE

CONSUMER FINANCE y y y y y Small Industrial development Bank of India (SIDBI) SCICI Ltd

[ING VYSYA BANK LTD]

National Bank for Agriculture and Rural Development (NABARD) Export Import Bank of India National Housing Bank

4. Co-operative Banking:
India is a country where agriculture is still a predominant activity. Our farmers by and large are poor and usually used to depend on money lenders Indigenous bankers and financiers etc. Till 1951-52 the money lenders were providing 70% of the requirements of farmers and thus constituted the most important source of rural finance. However the share of Moneylenders in rural credit was reduced to 49%. This was due to high rates of interest, dishonesty and

fraudulent practices followed by the money lenders. The cooperative Movement was started in India in 1904 with the objective of providing finance to agriculturists for productive purpose at low rates of interest and thereby relieving agriculturists from the chetches of the Money lenders. The co-operative society Act of 1912 contributed to the establishment of central co-operative banks and the state co-operative banks to provide refinance to primary credit societies which could not mobilize funds by their own efforts. The co-operative credit movement made food progress during and after the 1st world of 1914-18, but during the great depression of 1929-1933, it received a serious setback. With the outbreak of Second World War of 1939-45, the co-operative credit movement made considerable progress once again. Since then, the progress has been maintained. A co-operative bank promotes economic activity and provides banking facilities and service to the rural people. The significant role of co-operative banks in the agricultural economy imparts a lesson to commercial banks and dispels from their minds the age old inertia and the gloom of conservatism by shifting emphasis from credit worthiness of the purpose and from tangible security to the character of the business. Co-operative means a form of organization where in persons voluntarily associate together as human beings on the basis of equality for the promotion of the economic interest of themselves. 5 CITY ENGINEERING COLLEGE

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So, co-operatives are characterized by voluntary association and open membership, democratic management, limited interest on capital, education and training equity of distribution of profits etc. Each for all and all for each is the underlying principle of co-operatives. There are 2 models for co-operatives they are y y Raiffeisen Model societies Schulze Delitzsch model societies

Raiffeisen societies are a type of rural co-operative societies.The main principles of these societies are: y y y y y Restricted membership to rural masses Limited area of operation No share capital Unlimited liability of the members The management of the society is honorary

Schulze Delitzsch societies are a form of urban credit societies. The main principles of these are y y y y y Membership is open to artisans, middle class people Living in towns and cities Large area of operation Limited liability of members Large share capital

So, co-operative came as an answer to the problem of rural indebtedness which was rampant through act the country during the later decades of 19th century. It was an official remedy to be introduced on a voluntary basis, with the principles of self-help, thrift and mutual co-operation. This was supposed to be the beginning of genuine Indian co-operative movement. So the objective of co-operative movement is actively implementing socio economic program with the ultimate aim of uplifting the living standard of economically backward and weaker section of society.

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In 1919 the government of India Act 1919 was passed and co-operation became a state subject. So, several states passed their own acts for the development of the co-operative movement in their respective states. Through the co-operative movement in India was born at the beginning of century as an instrument of dealing with agricultural indebtness, it was only after attaining independence that attaining independence that attention was paid in a big way to this issue. After independence the co-operative movement received added support from Government. So to sum up, the co-operative movement has made remarkable progress in terms of number, membership share capital and working capital. The progress of co-operative movement has been remarkable in the fields of agricultural credit, marketing and supply of farm inputs and processing. The Indian co-operative banking system is a 3-tier system. If consists of three sectors. 1. Primary credit societies at the base 2. Central co-operative Societies in the middle 3. State co-operative Banks or Apex Banks at the top. Primary Credit Societies It is an association of ten or more persons residing in a particular locality. The funds at primary credit societies consist of entrance fees, share capital, Reserve fund, Fixed Deposits from members and non-members and loans from central co-operative banks. The primary credit societies extend short and long term loans to the members. Generally, loans are given for a period of 6 months, one year and 2 years. Loans are ordinarily given, on personal security of borrowers supported by personal security of borrowers supported by personal. Central Co-operative Banks The primary credit societies failed to mobilize enough deposits from their members for meeting their requirements. They were in need for refinance from some agency. So the co-operatives societies Act of 1912, provided for the establishment of the central co-operative Bank to provide finance to primary credit societies. Central co-operative banks are federation of primary credit societies operating in a specific area. Generally they are located in the district head quarters and some prominent towns of the district. 7 CITY ENGINEERING COLLEGE

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The funds of central co-operative Banks consist of share capital, reserve funds, deposits from members and non-members and loans and advanced form state co-operative Banks. Sometimes they raise loans from commercial banks also.

State Co-operative Banks


Every state has a state co-operative Bank at the top of the co-operative banking structure. If is known as Apex Bank as it controls and co-ordinates the working of all co-operative credit institutions in the state. If is found in the state capital. The table 1.1 shows the co-operative credit structure in the whole state of Karnataka. The funds of the state co-operative Banks consists of share capital, reserve funds, deposits from members and general public and loans from RBI, state Government and commercial Banks. However loans and advances from the RBI constitute a major part of their funds.

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COMPANY PROFILE
2.1 ING VYSYA BANK IN INDIA
In India, ING is present in all three fields of banking, insurance and asset management in the form of ING, ING Vysya Life Insurance and ING Investment Management respectively. The presence in all three fields signifies the importance that the group attaches to the Indian markets and the group's operations here, as well as its bullish future outlook on the country. ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of ING Investment Management is situated at Mumbai. The synergies arising out of the three distinct but complimentary businesses are bound to be an asset to the group in the changing market dynamics of the future. The first such signs are already visible on the horizon with combined products being successfully launched by the different entities of the group in conjunction with each other.

The Origin of ING Group


On the other hand, ING group originated in 1990 from the merger between Nationale Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV. Combining roots and ambitions, the newly formed company called Internationale Nederlanden Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V..

Profile
ING has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialisation is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a provider of employee benefits, i.e. arrangements of nonwage benefits, such as pension plans for companies and their employees.

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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 where ING can create value.

The new identity


The immediate benefit to the bank, ING Vysya Bank, has been the pride of having become a Member of the global financial giant ING. As at the end of the year December 2008, ING's total assets exceeded 1332 billion euros, employed over 125000 people, served over 85 million customers, across 50 countries. This global identity coupled with the back up of a financial power house and the status of being the first Indian International Bank, would also help to enhance productivity, profitability, to result in improved performance of the bank, for the benefit of all the stake holders.

ING VYSYA BANK


ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of visionaries came together to found a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services. It's been a long journey since then and the Bank has grown in size and stature to encompass every area of present-day banking activity and has carved a distinct identity of being India's Premier Private Sector Bank. In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach the coveted position of being the number one private sector bank. In 1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank Stupendous. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005.

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The long journey of seventy-five years has had several milestones 1930 1948 1985 1987 1988 1990 1992 1993 1996 Set up in Bangalore Scheduled Bank Largest Private Sector Bank The Vysya Bank Leasing Ltd. Commenced Pioneered the concept of Co branding of Credit Cards Promoted Vysya Bank Housing Finance Ltd. Deposits cross Rs.1000 crores Number of Branches crossed 300 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 2002 ING-Vysya commenced life insurance business. 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 2002 ING takes over the Management of the Bank from October 7th , 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 10.12.02 2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans 2004 2005 Introduced Protected Home Loans - a housing loan product 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 11 CITY ENGINEERING COLLEGE

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In terms of pure numbers, the performance over the decades can better be appreciated from the following table: Year Net worth Deposits Advances : Profit Outlets Rs. in millions
Year 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Net worth 0.001 1.40 1.60 3.00 11.50 162.10 5900.00 6527.00 6863.24 7067.90 7473.20 7094.00 10196.70 11101.90 14260.00 15940.00 Deposits 0.400 5.30 20.10 91.50 1414.30 8509.40 74240.00 81411.10 80680.00 91870.00 104780.00 125693.10 133352.50 154185.70 204980.00 248900.00 Advances 0.400 3.80 13.50 62.80 813.70 4584.80 39380.00 43163.10 44180.00 56120.00 69367.30 90805.90 102315.20 119761.70 146500.00 167510.00 Profits 0.00 0.09 0.13 0.74 1.13 50.35 443.10 371.90 687.50 863.50 590.01 (381.80) 90.6 889.0 1569.00 1888.00 Outlets 14 16 19 39 228 319 481 484 483 456 523 536 562 626 677 857*

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

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2.2 NATURE OF THE BUSINESS CARRIED:


ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset management company with a retail investor focus. ING Vysya is globally service provider in banking and insurance sector.

ING Vysya Bank


ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was in the year 1930. The last year (2005) was the 75th anniversary or Platinum Jubilee year.

ING Vysya Mutual Funds


ING Vysya Mutual Funds brings with it the vast international experience and professional expertise of the ING Group. With presence in eight cities across the country, and over Rs.1600 crores of Asset Under Management, ING Vysya Mutual Fund aims to provide investors with the most practical and secure investment opportunities to invest their valuable savings. This is combined with a range of innovative options to deliver healthy returns combined with a high degree of security. Currently, the fund offers four equity, five debt and two hybrid schemes to its investors.

ING VYSYA life insurance:IVL.co private limited entered pvt life insurance industry in India in sep 2001, & in a short span of 3 & a half years has established itself a distinctive life insurance brand wuth an innovative , attractive and customer friendly product portfolio and a professional advisor force. It also distributes products in close co-operation with the ivb network. Currently it has over 10000 advisors in 30 cities across the country and over 1000 employees.The co has 150000 customers as on date and achived an income of rs.150 crore in the year ending 31st dec 2004.Ivl insurance is a joint venture b/w Ing insurance international, bv a part of Ing group, the worlds second largest life insurance co.(fortune global 500,2004), Ing vysya bank, with 2million customers and over 400 outlets and GMR industries limited , part of GMR group also based in blore and involved in the field of power generation infrastructure development & several other business. 13 CITY ENGINEERING COLLEGE

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2.3 VISION & MISSION.


Mission of Ing Vysya :
To build a sustainable competitive advantage by fully integrating compliance risk management in daily business activities & strategic planning.

Vision of Ing Vysya bank:


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

ING Vysya bank products


y y y y y y y Credit product & structured finance. Offshore borrowings. Investment banking, local debt syndication & securatization. Trade finance & commodities. Cash management services. Schedule of service charges on trade finance products & services. Schedule of service charges on business banking accounts.

Functions of ING Vysya bank


y y y y y Business compliance. Regulatory guidelines dissemination & advisory. Financial economic crime (FEC) & sanctions desk. policy framework & MIS. Training & communication.

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2.4 PRODUCT SERVICE PROFILE:


y y y y y y y y y y y y y y y y y y y y y y y Products & services Personal banking Savings a/c Current a/c Term deposits Demat a/c Personal,home,home equity,nri loans Pvt banking Wealth mngmt Life insurance Mutual funds Govt of india & tax savings bonds NRI services Credit & debit card Internet banking Phone banking Mobile banking Self banking ATM kiosks Payment services Business banking Sme-loans,mpower bness a/c Agri term & short term loan

 Wholesale banking: cash mgmt services, corporate & investment banking credit products & structured finance, offshore borrowings, trade & commodity finance.  Special services:- along with the portfolio mgmnt & advisory services we also bring to clients our banking services which include remittances, deposits, deposits/mutual funds etc 15 CITY ENGINEERING COLLEGE loan against

CONSUMER FINANCE y y y y y y y y Loan products Od facility Vysdp(depository services) Smart serve Internet banking Phone banking Bill payments. Debit & credit cards

[ING VYSYA BANK LTD]

2.5 AREA OF OPERATION:


Global, National & Regional
Global:ING VYSYA Bank operating in: y y y y y y y y y europe. ING VYSYA Bank in retail 2 bank in the netherlands & 4th in belgium. ING VYSYA Bank commercial banking has an international network in 40 countries with key positions in structured finance & financial markets. US, CANADA AUSTRALIA AUSTRIA FRANCE GERMANY SPAIN ITALY UK

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

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CONSUMER FINANCE National:CONSUMER FINANCE it is operating in 13 locations y y y y y y y y y y y y Bangalore Delhi Hyderabad Mumbai Pune Chandigadh Jaipur Vizag Chennai Kolkata Nagpur Ludhiana

[ING VYSYA BANK LTD]

Regional:Ing vysya bank has a total of 677 branches of which there were 407 branches ,39 extensions counters, 28 satellite offices & 203 atms

2.6 OWNERSHIP PATTERN


Ownership pattern
y In 1996 the bank signed strategic alliance with bank Brussels Lambert, Belgium for equity participation. y In 2001 the Ifc Washington also joins hands to strengthen the bank ,later BBL Belgium merges with ing. y y y In sep 2002 ing increased it's stake to 44%. In oct 2002 ing takes over the management. In dec 2002 the bank is remained as ing vysya bank. ing & other foregin institutions is having 49% of shares & indian investors is having 51% of share.

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CONSUMER FINANCE Board of directors as on 20-12-2010 ARUN THAYGARAJAN SHAILENDRA BHANDARI ADITYA KRISHNA PHILLIPE DAMAS RICHARD COX SANTOSH RAMESH DESAI M.DAMODARAN VAUGHN NIGEL RICHTOR PETER HENRI MARIA STAAL LARS KAMER VIKRAM TALWAR

[ING VYSYA BANK LTD]

PART TIME CHAIRMAN MD & CEO Director Director Director Director Director Director Director Director Director

2.7 COMPETITORS FOR ING VYSYA BANK


y y y y y y y y y y Axis bank. HDFC bank. ICICI bank. Kotak Mahindra bank. IDBI bank. Standard chartered. LIC housing. SBI. Duestche bank. Punjab national bank.

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2.8 INFRASTRUCTURE
ING VYSYA Bank head office is situated in bangalore. ING house contains the board room, offices for senior mgmt and a number of corporate dept's. the building was desgined to reflectthe image of ING VYSYA innovative and transparent , dynamic and sustainable . the open planand glass walls help facilitate communication across dept's& complement dedication to transparency. The ING VYSYA house has a auditorium, a foyer, restaurant, library , conference rooms & parking spaces. The total office space is reserved for "flexible"work stations, which give employees the chance to change their working environment.

2.9 ACHEIVEMENTS
ING becomes 13th largest company in the world compared with last year, ING Group has risen four places in the Global 500 list of the worlds largest companies. The list is published by Fortune, the US business journal. At number 13 in the ranking, ING Group is the largest financial institution on the list, followed by Citigroup and AXA & in terms of revenues and net profit; ING is now the biggest of the 21 insurers on the list. Over the last 150 years ING group has grown to become one of the largest life insurance organisations in the world. Today it touches the lives of over 50 million people across 65 countries. y y y y y y y ING Group is the worlds largest LIC in profits (U S 4.50 billion. 4th largest financial group in the world. Ranked 9th overall among world top 2000 companies (Forbes 2005). Operating in 5 continents across 50 countries. It has 60 million customers. ING Vysya employees raise 35 lakhs to send 2,500 child workers back to school. Worlds largest financial group in revenues (fortune 500 2006) having presence in over 50 countries & with over 1, 15,000 employees. y Worlds 1st integrated financial service provider offering banking insurance & asset management. y Total assets of Euro 1,158 billion as on dec.2005. 19 CITY ENGINEERING COLLEGE

CONSUMER FINANCE y y

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Ranked no.1 retail fund manager in Asia (Asia asset mgmt dec,2005) 2007 it has been recognized for our public relations by the public relations council of India in its global meet on corporate communication march 2007.

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

AWARDS:y 1996 GEM & JEWELLERY EXPORT PROMOTION COUNCIL CONFERRED AWARD FOR BEST EXPORT PROMOTION. y y 1998 Won golden peacock award from institute of directors for best HR practices. 1998 International magazine GLOBAL FINANCE rated the bank best DOMESTIC BANK. y 2007 Achiever award for contributions & consistent public relations council of INDIA.

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FUTURE GROWTH OF ING VYSYA BANK


The ING VYSYA Bank has a great opportunity to drive business growth .the combination of innovative & ING VYSYA'S reputation for efficient service delivery & customer care puts it in a stronger position to maximize opportunities & to expand its operations. With a economy of the country growing at nearly 8% these high growth potential for the bank. The bank is planning to enable Money Click as a payment gateway for shopping that conserves at areas of business like hotel booking, ticket booking, purchase of goods etc. y y y y y ING VYSYA angel broking ink pact for investment services. ING VYSYA Bank plans to hike base rate in Jan-march says CEO Angel broking head. Liquidity in share market not a concern right now. Angel broking head: sensex may top 21000 if liquidity increases. ING VYSYA Bank CEO aims for FY11 loan growth better vs. industry.

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3. MCKINSEYS 7-S MODEL


3.1 INTRODUCTION:The 7-S model is better known as Mckinsey 7-S.This is because the two persons, who developed this model Tom Peters and Robert Waterman, have been consultants at Mckinsey and company at that time. They published their 7-S model in their article structure is not organization in 1980 and in their books The art of Japanese management in 1981 and in search of excellence in 1982 Managers, they said, need to take account of all seven of the factors to be sure of successful implementation of a strategy- large or small, like a lot of this models there is a good dose of commonsense in year, but the 7-S framework is useful way of checking that you have covered all the bases. Mckinsey & Cos 7-S Framework provides a useful framework for analyzing the strategic attributes of an organization. The Mckinsey consulting firm identified strategy as only one of the seven elements exhibited by the best-managed companies. Strategy, Structure and Systems can be considered as the Hardware of success while Style, Staff, Skills and Shared Values can be considered as the Software.

3.2 MCKINSEYS 7-S FRAMEWORK

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CONSUMER FINANCE STRUCUTRE:

[ING VYSYA BANK LTD]

The Structure of the organization represents the hierarchy of the organization. It represents the reporting system of the organization. Thus, organization structure is the pattern of relationships among various activities and positions. From the structure or organ gram of the organization we can have clear picture of the responsibility of the personnel working in the organization. It refers to the differentiation and integration of activities and authority, role and relationships in the organization. Hence organization structure is the basic framework within which the managers decision-making behavior takes place. In ING VYSYA Banking structure of the organization represents the vertical hierarchy of the organization. Structure of the organization is basically functional where common or homogenous activities are grouped together. This type of structure is very effective for big organization like ING Vysya. This ensure specialization, easier control over functions, easier way for pinpointing needs of the managers and maintaining the relative importance of functions in the organization.

SYSTEM: A system means all the procedures, formal and informal, that make the organization go day-byday, year-by-year. The organizations is an open system organization because they interact with environment

Computerization System
The developments in Information System are working wonders in all fields of activity. It becomes possible to send and receive information almost instantaneously. If circular do not reach the agents on time or doubts are not cleared quickly, or the agent does not have details of new plans announced in the press, the agents may face awkward situations with the prospects. These problems can be totally avoided with the use of IT. Insurers traditionally, have been quick to adapt latest advances in technology. This is happening in the area of IT as well. The extent of IT application will vary between insurers. Rapid strides have been made by ING Vysya Bank in the field of computerization MiniComputers, Online Computerization of product dispatch and finance and give product details to customers.

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CONSUMER FINANCE STRATEGY:

[ING VYSYA BANK LTD]

Strategy sets out vision, mission, objectives, major action plans and policies of the entire enterprises. These set out the picture of the strategy, the SBU strategy and the functional strategies. This sets out a broad frame work to guide managers at all levels in all functions in their specific short term objectives. ING VYSYAS Mission is To set the standard in helping our customers manage their financial future. To achieve this we aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in market, rather it is combination of several things likey y y y y y Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share.

STYLE: One element of mangers is how he/she chooses to spend time, another aspect is symbolic behavior. This suggests a second attribute that is by no means confused to those at top. The style is a reflection of culture, more then to change the organization or performance. The ING VYSYA is basically a participating and democratic type of system. Before taking any decision meeting is conducted and the final decision is taken with the consent of all. Every employee gets change to five his/her opinion. Every employee can participate in decision making of the organization. The final decision is taken with consent of all. The ING VYSYA Bank is a unit has a union body and hence it takes people into confidence. It does not take any decision unilaterally. Since every employees ideas and opinions are taken by the managers before arriving at a final decision effective decisions can be taken. Managers are evaluated on the basis of quality of their decision making. Hence participative and democratic type of a system is the best system for such a big organization like the ING VYSYA Bank. 24 CITY ENGINEERING COLLEGE

CONSUMER FINANCE SKILL:

[ING VYSYA BANK LTD]

The ING VYSYA Bank is having 8 departments, which has personnel with variety of skills .They should have the ability to take right decisions. They should manage the personnel and make then carry out their responsibility. The ING VYSYA Bank unit has personnel with a variety of skill for different fields they have personnel with different talents, skills and experience. It is a participative democratic system so every decision is taken after discussion with the personnel. Hence the personnel have good communication skills. A corporate communication department also knows as public relation department is also there in the ING VYSYA Bank. It takes care in building the image of the organization both by external communication and internal communication and also having development department. It increasing strength of the employees and arranging programs.

STAFF: Organization requires the service of a large number of personnel. These personnel occupy the various positions created through the process of organizing. These personnel comprises of the staff of the organization. Each position of the organization makes certain specific contributions to achieve organizational objectives. Hence the person occupying the position should have sufficient ability to meet its requirements. Hence staffing is necessary to match jobs and the individuals. In ING VYSYA, 15 permanent workers are there and more than 100 agents are there who are working for company. Agency Manager can manage the Unit Manger, Clerical Staff as well as Insurance agents. SHARED VALUES: Security: Providing long term financial security to our Customers will be our constant endeavor. We will do this by offering Variety of products. Trust: We appreciate the trust placed by our Customers in us. Hence, we will aim to manage their investments very carefully and live up to this trust. 25 CITY ENGINEERING COLLEGE

CONSUMER FINANCE Innovation:

[ING VYSYA BANK LTD]

Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Company mission is To set the standard in helping our customers manage their financial future and these are the values that will guide us in this. The extra-ordinary growth of the direct marketing is the result of many factors. Market demagnification has result in an ever increasing number of market Niches. Higher costs of driving, traffic congestion, parking headaches, lack of time, shortage of information so all have encouraged home shopping. Also, the consumers appreciate the commitments to the customer service etc.

26

CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

SWOT ANALYSIS

STRENGTH

WEAKNESS

OPPYRTUNI TIES

THREATS

STRENTHS:y y y y y y y Brand name Huge product Portfolio. Quality of service and product. Quality service from the advisors. Skilled workforce. Sophisticated software to enable faster and smooth operations. Strong marketing and distribution channels.

WEAKNESS:y y y Complicated process to track for the company. Customers perceive as just protection benefit rather as a good investment option. Being a private player, it is difficult for the company to gain customers trusts, concentration being more on quantity of results. y 27 Lack of Co-ordination between the various branch offices. CITY ENGINEERING COLLEGE

CONSUMER FINANCE OPPORTUNITIES:-

[ING VYSYA BANK LTD]

y Banking is a growing sector, hence creating opportunity for the employee to prosper and grow as individuals. y y The Company has an opportunity to expand its business. Rising life style of people and their increasing income level motivates them to invest more. y y y Growing education and awareness level of the people towards Banking. As its growing sector, the customer has an access to the company whenever he needs. The changing customers need to create more business opportunity.

THREATS:y Entry of branded names in the Banking sector, poses a threat to the existing companies. y y y y y Direct investment options available to the customers like mutual funds, etc. Fraud and Default Catastrophes occurring, as they give rise to claims. Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the psb as well as the private players.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

LEARNING EXPERIENCE
The training, which I underwent, has provided me a great enhancement to my organization understanding, it was on great pleasure for me to do my project in ING VYSYA Bank. During the period it was totally a new experience entering into the organization. I spent most of my time in visiting various places Branches, various departments, interacting with people, etc. In the course of month, I had engaged with the product manager of the company for promoting the business, the product manager who will work for entire company. She is managing all activities by advising and managing through the staff. This was a positive response from the entire staff. It was really a fruitful and great experience working in the organization. Employees from every corner of the department helped me in getting the required information for the successful completion of this project. The environment was so friendly and I did not feel uneasy during the whole training period, which gave me great deal information and knowledge as to how an organization really functions. The training provide an opportunity to relate classroom learning with the really if management. My constant interaction with the management managers, supervisors, staffs, etc, has indeed widened my horizons of knowledge. Ultimately to say the training period in the company was a wonderful small time in the huge corporate world. Studying Mckinseys 7S Model with respect to ING VYSYA Bank gave me a great exposure to learn about the organization. I learned about the working of the organization in the period. From this report finally I studied about the impact of welfare activities provided by the ING VYSYA Bank among the employees of the organization. The welfare services to the employees. But at the same time bonus, retirement benefits, incentives etc. provided by the organization is not enough to motivate the workers in their work. The institutional training is the best approach to have extra knowledge on the practical approach of management studies. This training helped us to understand how an organization and its various department functions.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

GENERAL INTRODUCTION:
The conception of the research design plan is a critical step in the research process. The design of the study constitutes the blue print for the collection, measurement and analysis of data. In other words, the research design is a conceptual structure within which is research is conducted.

Statement of the problem Public have occupied center stage of our countrys economy policy since independence. As consequences, any study in the area of financial management of public enterprise becomes relevant.

Public enterprise in India has been functioning for many years. Many public sectors undertaking have been become sick and many are performing very well in this globalize market. This indicates that efficiency in management of public sector undertaking is one of the main factors, which are critical in their success. Hence this study is made to see how the management of a unit f a public sector are undertaking is been done. This emphasis of this study will be on financial management.

Objectives of the study  To study the growth of ING VYSYA Bank Ltd  To study the scheme of ING VYSYA Bank Ltd  To study various types of Loans and Advances in ING VYSYA Bank Ltd  To analyze the effectiveness of different schemes offered by ING VYSYA Bank Ltd  To offer finding, suggestions and recommendations

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

SCOPE OF THE STUDY


The scope of the study is restricted to the financial statements and profit and loss of the Bank. It is confirmed to the analysis of the financial results. With respect to change in the economic environment across the globe & also due to paradigm shift in management education, understanding of business relationship of is very much essential for building professional managers. The SUMMER PROJECT, which is strategically framed in the middle of course ,helped me immensely .It provides an opportunity to expose myself to real bank scenario & gain confidence with acquiring professional skill. This study is applicable to entire banking industry as a basis to plan its loan policies its disbursement & recovery decision.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

METHODOLOGY OF STUDY:During the course of summer project, the source of information obtained can be classified broadly into two categories. Primary data and Secondary data. Research design is purely & simply the framework or plan of a study that guides the collection & analysis of data. This research design is to be done before conducting a study. Success of any research study lies in its research designs. There are three types of deign y y y Exploratory Descriptive Casual

This project is undertaken as per descriptive research design, which is also called exploratory design. The descriptive study is typically concerned with determining frequency with which something occurs. Data are facts, figures, & other relevant materials, past & present serving as bases for the analysis. Inference based on imagination or guesswork cannot provide correct answer to research requirements. The relevancy, adequacy of data determines the quality of the findings of a study. For solving any problem the primary requirement is data. Before conducting the study the sources of data are to be identified. There are two sources of data y y Primary data sources Secondary data sources

Primary data :- The primary source of data is mainly comprised of the face to face interaction & discussion with various executives, officers & other staff members of other banks & also in the organization. It is a set of 1st hand information gathered originally for the research work. All the required information of the various types of loans collected from other banks by personally, & all the information is presented in the report. Then the additional information is also obtained through by making calls to the all the banks that means through telecommunication. Secondary data:- The data was obtained through the staff manuals, scale of finance report , newsletters, annual reports of all the banks & also through the various other sources like internet, advertisements etc.. 32 CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

LIMITATIONS OF THE STUDY:y y The study was subjected to time constraints. Various parameters developed in this study are based on a conceptual understanding of the relative impact of the parameters on the riskiness. y The weights assigned to various parameters may change if the external economic environment undergoes substantial changes. y The projection figures are estimates based on the past figures and company standard rates. The study is purely for academic purpose. y y y Conclusions are drawn on the basis of limited data available. The data collected is more of secondary information. The study is conducted mainly on the basis of collection of data provided by the company.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

Consumer Finance
Definition : - The division of retail banks that deals with lending money to consumers. This includes a wide variety of loans, including credit cards, mortgage loans & auto loans & can also be used to refer to loans taken out at either the prime rate or the sub prime rate. In other words: - A financial institution that specializes in providing loans directly to consumers who are unable to secure bank loans. A consumer finance company generally charges higher interest rates than a bank.

PRINCIPLES OF SOUND LENDING As per the Banking Regulation Act 1949, banking means accepting for the purpose of lending or investment of deposits of money from the public. From the above, it is evident the major portion of banks funds is employed by way of way of loans and substantial parts of banks earned from interest and discount on the funds so lent. Hence the banks shall a few cardinal principles of sound lending while appraising an advance proposal in order to minimize the risks of becoming irrecoverable and bad. 1) SAFETY: When a bank lends the depositors money, he must feel certain that the advance is safe I.e., the money will definitely come back. The repayment of the loan depends upon borrowers (a) Capacity to pay (b) Willing to pay (character) (c) Capital. It means that the barrower should be capable of enterprising either in business or depends on the honesty, character and integrity of the borrower. He should feel sense of responsibility for maintenance of the asset and for repayment. Hence bankers insist for barrowers capacity in the form of margin. 2) LIDUIDITY: The bulk off bank deposits is repayable on demand or at short notice to the depositors. If the banker lends a large portion of his funds to barrowers from whom repayment would be coming lending in but slowly, the ability of the banker to meet the demands made on him would be seriously affected. Hence care should be taken whole selecting the barrowers, so that the money is employed by the barrower for short term requirements and not in the schemes, which take a long time to pay their loans. For ex: loans against mortgage of building and lands are safe but the recovery has to be made through a court process which takes a lengthy period and liquidity gets affected. 34 CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

3) PUREPOSE: Banks should lend to the productive oriented activities only so that it provides a definite source of repayment to the barrower. Banks are not supposed to lend to the barrowers who involves in unauthorized hording of and for speculative activities. Banks discourage extending finance to the anti social elements like smugglers, thieves and encourage finance to the income generated activities only. 4) NATIONAL OBJECTIVES: Credit facilities extended by the banks should be in conformity with the national interest and suitability of the needs of people. Ex: banks are instructed to extend their finance to the agriculture, SSI and to various anti poverty programs to augment the agriculture production and to meet the social objectives. 5) SECURITY: Security is considered as insurance or a cushion to fall back upon in case of an emergency. a) Marketable: The security obtained should be easily and readily marketable. All the costly securities cant be considerable as good securities. For ex: pearls or diamonds or palatial bungalows are not considered as good securities they appeal to only a small section of society have a limited market. b) Accessibility: the value of security should be easily accessible. The banker need not refer to an expert to value a security. For ex: the value of food grains, oil seed etc, Can easily known, but the value of painting by old masters and highly specialized machines needs to assistance of experts. c) Recoverability: the cost of the security should be easily recoverable when it is sold. It means the sale proceeds of security should come back quickly without much delay. d) Transferability: The title of security should be easily transferable whenever occasion demands. Ex: shares can easily transferable to the lands and buildings. e) Insurable: The security should be insured without any objection from insurance companies and not at higher premium rates. Ex: stocks of matchboxes and petroleum products will be at a higher premium rate. f) Storability: The security should be capable of being stored in a godown so that it can be safely kept, easily supervised and quality should not get deteriorate, perished or destroyed. Ex: Iron ores near mines, films which need air conditioned godown and patent medicines with expiry date are not considered as a good security. 35 CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

g) Stability: The security should be stable in value without much fluctuation over short periods. Commodities like pepper and yarn are prone to heavy fluctuation and accepted as a security only with a higher margin. h) Transportability: The security should be easily transportable from one place to another in case of sale as a per the market demand Ex: heavy machinery and Iron girders are not easily transportable. i) Ascertainably: the title of the security should be easily ascertainable, undisputed and clear for ex: while taking the property of a JHF, care should be taken to ascertain all the claimants of the property. j) Yield: If a security is a source of some steady income, it is considered desirable as it affords an automatic source of repayment of loan wholly. For Ex: high marketable blue chip shares on which substantial dividend is regularly receivable and shops/ godown which the banks keep a margin. k) Margin: Margin on securities is also maintained as a cushion against fluctuations in value of securities. In case of forced sales, the security may not sell for its full value and hence the banks a margin. l) Acceptably: The security offered by the barrower should be acceptable to the banker. The securities, which are hazardous and ruins the communal harmony of the country, should be avoided Ex: ammunition like pistols, bombes etc. m) Durability: the security should be reasonably durable for ex: perishable articles/goods like vegetable, fruits and mutton which are may not be suitable securities unless otherwise stored in refrigeration. n) Safety: The security should be free from the risks of theft and fire ex: goods loan on the stocks of matchboxes is not considered as safe. 6) SPREAD: An element of risk is always present in every advance. Hence the diversification of funds is essential. Banker should be keen in spreading the risks involved in lending over a large number of barrowers, over a large number of advances and over different types of securities. For ex: if bank has advanced, too large a portion of his funds against only one type of security he will run a big risk if that class of security steeply depreciates.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE PROFITABILITY:

[ING VYSYA BANK LTD]

Banking is essentially a business which aims at earning a good profit. Banks must deploy their funds in such manner, so as to earn profits out of which to pay interest to the depositors and to meet the establishment charges. But the banks should not sacrifice the other principles of sound lending for the sake of profitability.

CONSUMER FINANCE DEALS WITH AS FOLLOWS : y y y y y Home loan Home equity loan Loan against commercial property(CLAP) Auto loan Personal loan

1. Home Loan:Getting home loans to purchase a house at our projects is an absolutely hassle-free endeavor. The company today has become a trusted entity for all Banking Institutions and Housing Finance Companies. Since the banks support only genuine ventures with clear titles, getting home loans to purchase a house at our projects is an absolutely easy job. Our growing list of satisfied customers, who secured home loans to purchase houses in our projects, stands proof for this. We have also associated with some banking institutions for home loans; the executives from the Banking Institutions will come and assist you in getting a home loan sanctioned within a short time. To learn more about home loans, read on: There are many financial institutions like Banks and Housing Finance companies which offer home loans to purchase a new home or a flat. But you might be wondering about the following: What are the eligibility criteria for a Home Loan? Simple, to qualify for a home loan, most lending institutions in India require you to be: An Indian resident Above 21 years of age at the commencement of loan 37 CITY ENGINEERING COLLEGE

CONSUMER FINANCE Below 65 years when the loan matures Either salaried or self employed Nationalized banks offer loans to NRIs too. What are the standard norms for acquiring a home loan?

[ING VYSYA BANK LTD]

Securities required: In most cases the property to be purchased becomes the security and is mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for additional security such as life insurance policies, FD receipts, share or savings certificates. Guarantors: Some institutions ask for 1 or 2 guarantors, others require no guarantors at all. Applying for loan: Loans may be applied before or after selection of a property. The loan amounts are sanctioned in principle to help buyers know what amounts they can avail of. This lets them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures. Documents required at the time of application Latest salary slips (proof of income for salaried individuals) y y y y y Photographs Proof of age Identity papers Proof of residence Bank statements for the previous six months

For self employed, certified copies of balance sheet, profit and loss statement and tax challans for the previous 3 years For partnership/private limited companies, the Articles of Association, partnership deed and details about the firm loan limit Usually most financial institutions give up to a maximum of 85% of the cost of the house. The other 15% sometimes called 'seed money' will have to be provided by the applicant. Various factors like age, income, no. of dependents, monthly expenses and repayment capacity will be considered for the eligibility of the loan amount. This varies from case to case.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

Rate of Interest: Interest rates are different from institution to institution and generally range from about 8.5% to around 16%. The interest on home loans in India is usually calculated either on monthly diminishing or yearly diminishing balance method. The interest rates have two options - Floating rate of interest and fixed rate of interest. Monthly diminishing: In this system the principal on which you pay interest diminishes every month as you pay your EMI. Annual diminishing: In this system the principal is reduced at the end of the year, thus you continue to pay interest on a certain portion of the principal which you have actually paid back to the lender. Which means the EMI for the monthly diminishing system is effectively lesser than the second system of calculating interest. Floating rate Interest: In this option the interest rate varies from time to time depending on prevailing interest rates in the market. Fixed rate of Interest: In this option the interest rate is fixed till the total loan amount is repaid. Loan amounts vary from institution to institution and usually range from Rs.1 lakh to 1 crore. Repayment period options range generally from 5 to 15 years. For loan sanction: y y y y y y y y y Salaried Customers Self Employed Professionals Self Employed Non Professional Application form with photograph duly signed by all applicants Identity, residence and age proof PAN card copy of the main applicant Last 3 months Salary-slips Education qualification certificate and proof of business existence Form 16 / Income Tax Returns Last 3 years Income Tax Returns with computation of Income Business profile 39 CITY ENGINEERING COLLEGE

CONSUMER FINANCE y y y y y y y Last 6 months bank statements

[ING VYSYA BANK LTD]

Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account Last 3 years Income Tax Returns with computation of Income Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account Processing fee cheque Last 6 months bank statements Last 6 months bank statements (self and business) Processing fee cheque Processing fee cheque

HOME EQUITY LOAN A home is more than just a house. It is the sum total of your dreams, aspirations and the love that binds your family. Sometimes, there are situations that demand finance on a large scale like when your children get married, go abroad for higher studies, when you need to provide medical care to your aged parents, fulfill any business need or any other exigency. At these times, you decide to leverage your house as equity for raising a loan. We understand your need to support your family and look towards their well-being.

Eligibility:
Resident Indian citizens can apply in their individual capacity: y Salaried employees aged 23 and above on application; and aged 60 or retirement age, whichever is sooner, at loan maturity y Self-employed professionals and businessmen above 25 years of age and aged below 65 years, at loan maturity. y y Min. Net Monthly Income: Rs.10,000/= per month Min Loan Amount of Rs. 5 Lacs and Max Loan Amount Rs. 200 Lacs in all metros, Bangalore, Pune and Chandigarh. y Customers located in all other cities where the bank provides Home Equity Loans can avail up to Rs. 1 crore.

PROPERTIES AND EXTENT OF FINANCE:


y y y Allotted by Government. Approved by Government (initially developed and sold by Registered House Building Cooperative Society or Private Developer of repute). 40 CITY ENGINEERING COLLEGE

CONSUMER FINANCE y y

[ING VYSYA BANK LTD]

Government Bodies include Urban Development Authority /Corporation/ DTPA (District Town Planning Authority)

Fees:
Processing Fee Prepayment Charge Foreclosure Charge

upto 1.50% of the loan amount applied for and will be collected at the time of application. 2% of amount prepaid. 2% of the outstanding balance.

Security for the Loan:


y Mortgage of property by deposit of title deeds or as per the Existing guidelines. y Guarantor wherever applicable.

Supporting Documents:

Documents required at the time of Application

Application form duly filled in along with the processing fee cheque. One passport size photograph of the applicant/co-applicants/guarantor in Addition to the photograph affixed to the application form and signed across. Identification & Signature Proof: - Valid Passport/PAN Card/ Photo Driving License /Photo Credit Card of a Scheduled Commercial Bank/ Photo ID Card of Professional Councils, Government/PSU/Private Ltd., Companies/Banker's Verification/Photo Ration Card/Photo Election ID Card. Proof of Residential Address Passport/Voter's ID Card/Driving License/Ration Card/Telephone Bill / Gas Bill / Power Bill / Rental Agreement/ Insurance Premium Receipt. Signature Verification certificate from the Bank on which PDC's will be given.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

Proof of Date of Birth e.g., Birth Certificate/Passport/PAN Card/ Driving License/SSC Marks List/School leaving certificate/Insurance policy schedule. Income Documents for Salaried Individuals: A brief write-up on the profile of business covering the nature of business activity, number of years in business, products / services, infrastructure, number of employees, branch network, if any, suppliers, distribution, Buyers/clients, performance highlights, future business plans and assets. Income Tax Returns for the past 3 years duly certified by a Chartered Accountant and duly acknowledged by IT authorities. Certified copies of Audited Balance Sheets and Profit & Loss account statements for the previous 3 completed financial years, Wherever necessary. IT Assessment Order for financial years for which assessment has been Latest completed. State Sales Tax /Central Sales Tax Registration No. or any other certificate for licensing business Photocopies of Advance Tax payments. SOA (Statements of Account) of the Salary / Business account for the last 6 months from where PDCs will be issued. Any other document that may be required by the bank Min.3 months' pay slips starting with the Latest Pay Slip duly authenticated by the Employer (the above to clearly indicate the breakup of Gross Earnings, Deductions and Net Salary). Form No.16 with clear computation of income. Bank statement for the last 3 months, which is not older than 28 days from The date of login. At least 3 Salary credits to be evidenced in the Bank Statement. Bank Account Statements for all applicants for the last 3 months. 6 months in case of self employed businessmen & professionals. (From where PDCs will be issued). 42 CITY ENGINEERING COLLEGE

CONSUMER FINANCE Credit Card Statements of all applicants for the latest month. Loan account statements of all other existing loans. Any other document that may be required by the bank.

[ING VYSYA BANK LTD]

CLAP (Loan against commercial property)


CLAP means loan against the commercial property the loan is given against Factories Industrial property Bars Restaurants Schools and colleges Library Under construction property Hospitals Properties standing in the name of the 3rd party Properties with more than 5tenants. Petrol pumps Garages Lottery centre Video parlors Beauty parlors

Expand your business No longer do you have to stifle your creative ideas. With funds at your disposal, you can now expand your business without hesitation. Consolidate your existing debts Pay off all your existing loans with a LAP to liberate yourself from the hassle of multiple EMIs. Get your child married Put aside all your monetary worries and celebrate your childs wedding with pomp and splendour. Meet all your expenses with easewhen you take an ING VYSYA Bank Loan Against Property. Send your child for higher studies Education is the cornerstone of your familys progress. With a Loan Against Property, you can empower your son or daughter to grow into an outstanding achiever. Renovate your home When you decide to renovate your home, you want to do it in style. With ING VYSYA Bank's Loan 43 CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

against Property you will not need to cut corners. Effortlessly redo your home to match your dreams. Duly Completed Application Form Photograph Fee Cheque Photo Identity Proof Signature Verification Proof Residence Address Proof Property documents as required

Document specific for Salaried Last 3 months Salary Slip Form 16 Bank Statement for last 6 months from Salary Account Repayment details on any existing loans / Loan closure letter Document specific for Self Employed

Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for business and personal of partners/directors)

Bank Statement for last 6 month from operating account Repayment details on existing loans / Loan closure letter Board Resolution in case of a company Proof of existence of the business entity

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE Office Address Proof

[ING VYSYA BANK LTD]

Personal loan:Features and benefits y Borrow up to Rs 15,00,000 for any requirement like purchase of Consumer
Durables/marriage/Education/travel/family improvement or purchase of property etc. y y y y y y Flexible Repayment options, ranging from 12 to 60 months. Choice of Repayment through PDCs, ECS or Standing Instructions. Low Interest Rates. Hassle free loans - No security/collateral required. Speedy loan approval. Convenience of service at your doorstep. function/business expansion/home

Salaried Individuals
Eligibility criteria
y y y Minimum age of Applicant: 23 years Total of 3 year's overall work experience Net Salary of Rs 1,80,000 per annum

Documents required
y y y y Latest passport size photograph Latest 2 months salary slip Appointment letter/s or Form 16 as proof of experience Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card) 45 CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

*ID proof /signature verification to be done by Banker if the none of the above is available Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving License etc) Latest 6 months bank statement with Salary Credits

Self employed professionals and Non Professionals

Eligibility criteria
y y y Minimum age of Applicant: 23 years and 25 years for Non Professionals Minimum three years' experience in their current business Minimum Gross Annual Income of Rs 1,50,000

Documents required
y y y Latest passport size photograph Latest 2 years ITR with computation of Income, CA certified P& L , Balance Sheet Firms/Companys Financials, Board Resloution, Partnership deed, copy of MOA and AOA wherever applicable y Proof of Business- ITRs/ License under Shops and Establishment Act/ Sales Tax Receipt/Import Export Code from RBI y y Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card) *ID proof /signature verification to be done by Banker if the none of the above is available y Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving License etc) y Latest 6 months bank statement

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

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

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

CASA Loyalty Program


If you are an existing Savings Account/Current Account customer you can avail a Personal Loan from us based on relationship.

AUTO LOANS
Turn your dream into reality. Own that new car you have always desired, with a little help from us. We offer loans up to 90% of the ex-showroom price of the car. Our interest rates would pleasantly surprise you. What's more, you can take up to 5 years to repay the loan.

Worried about paperwork? Relax. The process for getting a loan involves only a few simple steps and we will tailor-make the loan to suit your needs.

Pick your choice.

L
o

Loan on the Strength of Your Income: Submit income proofs as required and avail finance up to 90% of the ex-showroom price of the car.

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

Salaried Individuals Eligibility Criteria:


y y y y y

Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 58 years Minimum employment: 1 year in current employment and minimum 2 years of employment Minimum Annual Income: Rs 100000 net annual income Telephone: Must at residence

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE Documents required:


y y y y

[ING VYSYA BANK LTD]

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated, Recent, Legible) Income Proof: - Latest salary slip with form 16. Address Proof: - Ration card/Driving license/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card. Bank Statement:- Not mandatory

Self Employed Eligibility Criteria: y y y y y Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 65 years Minimum employment: At least 3 years in business Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars Telephone: Must at residence

Documents required:
y y y y

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated, Recent, Legible) Income Proof:- Latest ITR Address Proof:- Ration card/Driving license/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card Bank Statement: - Waived for small cars, for mid - sized and premium cars if income Is greater than Rs. 1.5 lacks then bank statement requirement can be waived.

Partnership Firms Eligibility Criteria:


y y y

Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars Minimum turnover: Turnover Rs. 4.5 lacks Telephone: One phone at least at business and at residence of the loan executing partner

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE Documents required:


y y y y

[ING VYSYA BANK LTD]

Proof of Identity:- NA Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and the latest 2 years IT returns of the company Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act certificate/SSI registered certificate/Sales Tax certificate Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is greater than Rs 1.5 lacks then bank statement requirement can be waived

EX-Showroom pricing: ING VYSYA BANK provides up to 90% of loans for new cars. Fees and Charges: Processing Fees: Up to Rs.5, 000 + service tax. Foreclosure charges: 5% Tenors: 5years Min. loan amount: Rs.1, 00,000 Max. loan amount: Rs.15,00,000

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

Findings:
y The ING VYSYA Bank Ltd provides various types of Loans and Advances like personal loan, housing loan, car loan, home equity loan, CLAP etc. y All the above stated loans come with certain attractive interest rates, service charges and margin. ING VYSYA BANK provides loan after the individual satisfies all requirements like, his eligibility and appropriate purpose etc., certain required papers like proof of identity, proof of income; proof of residence, bank statement should be for granting the loan. y Personal segment advances was a high priority because it offers sustained credit growth with reasonably good returns and ensures dispersal of credit risk. y With a view to build customer friendly features into housing loan products and to bring about a fair amount of flexibility in key terms and conditions of the scheme a new product y Special counters for sanction of education loan were setup in important study centre in order to give special emphasis on education loans. y The bank is actively participating in increasing credit linkage to Self Help Group.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

Conclusion
From the above summary of findings, the following conclusions are drawn: y y Introducing attractive, innovative-new loan schemes. The loans and advances and also the interest received have increased, thus it shows good banking in loans and advances. y The public are satisfied and happy with loans and are also willing to borrow from the bank. y The overall performance of the bank is good when looked into various other items, Unnecessary operating expenses. The borrower can choose either fixed or fluctuating interest rates which is a great advantage to the borrower. y The sanctioning of loans at least one months time, this may reduce the number of borrowers in the future. y From the different advances made to priority sector in past three years from which it can be concluded that the bank is more focusing on agricultural and personal loan.

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

Suggestions and recommendations


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

The bank should try to sanction the applied loan amount by less than one months time, so that it will increase its income as well as a good morale of the bank in the minds of the people .

The bank can provide loans at attractive and cheaper rates when compared to the other public and private sector banks.

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

The managers in all ING VYSYA Bank branches have to be made responsible for recovery so that the bank never makes loss.

The newly introduction loan and deposit schemes should be made aware to the public so that they come forward to borrow the loans.

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

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

ANNXERUES:-

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

LIST OF BANK S
FOR HOME LOAN MIN LOAN MAX LOAN AGE NORMS FOIR TENNU RE

AXIS BANK

HDFC BANK

ICICI BANK

IDBI BANK

STANDA RD CHARTE RED

SBI

CITI BANK

DEUTSC HE BANK

PNB

RS.1lak h RS.50la kh 2555years 45%50% 25years

RS.1lak h RS.1cror e 2455years 50% 25years

RS.2lak h RS.1cror e 25465years 60% 25years

RS.1lak h RS.75la kh 2565years 45% 25years

RS.1lak h RS.5cror e 2365years 40% 25years

RS.1lak h RS.5cror e 2555years 35%40% 25years

RS.1la kh RS.7.5 crore 2465yea rs 55% 25yea rs 1% of loan amou nt 2%

RS.2lak h RS.5cror e 2365years 50%60% 25years

RS.1lakh RS.1cror e 2555years 60% 2 5YEARS 0.50%

PROCES 1% SING FEE

0.50%

0.5%+se rvice tax

0.5% of loan amount

FORECL OSURE CHARG ES PART PAYME NT CHARG ES RATE OF INTERE ST SALARI ED SEP

2%

1.50%%

2%

2%

0.5%1.5% dependi ng on loan 2%

0.5% of loan amount

1% of loan amount

1%

2.50%

2%

25% of loan amount

50% of principa l

4 times 25% of in a principa financial l year

6 times in a financial years

40% of principa l

75% of principal

9.25%

9.75%

9.50%

9.50%

10%

9.50%

10%

9.75%

10%

10.25%

SENP 54 9.50%

10%

9.75%

10%

10.50%

8.5%for 9.75% 9.75% 10.50% st the 1 year 9.25% 10% 10.25% 10.50% for 2nd & 3rd year CITY 9.75% ENGINEERING 10.25%COLLEGE 10.50% th from 4

CONSUMER FINANCE

[ING VYSYA BANK LTD]


year onward s no

GRP FOR SEP MIN INCOM E CRITERI A SALARI ED

no

no

RS.1,50, 000.pa.

no

no

no

no

no

RS.1,40, 000.p.a

RS.1,20, 000.p.a

RS.18,0 00.p.m

RS.1,50, 000.p.a

RS.15,0 00.p.m

RS.1,40, 000.p.a

SEP

RS.1,40, 000.p.a

RS.20,0 00.p.m

RS.1,50, 000.p.a

RS.1,50, 000.p.a

RS.2,00, 000.p.a

RS.1,40, 000.p.a

SENP

RS.1,40, 000.p.a

RS.20,0 00.p.m

RS.1,50, 000.p.a

RS.1,50, 000.p.a

RS.2,00, 000.p.a

RS.1,40, 000.p.a

NO INCOM E PROOF LAND LOAN MAX LTV

no

no

no

no

no

no

RS.1,0 0,000 or above RS.1,0 0,000 or above RS.1,0 0,000 or above no

RS.5,00, 000.p.a

RS.1,20,0 00.p.a

RS.5,00, 000.p.a

RS.1,50,0 00.p.a

RS.5,00, 000.p.a

RS.1,50,0 00.p.a

no

no

no 80%

y es 85%

y es 85%

y es 90%

no 90%

y es 80-85%

y es 75%80%

no 80%

y es 80%

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

P/L A/C for the year ended 2010


Particulars Net int. income Other income Total income Staff exps Other exps Total exps 56 FY 10 829.8 620.2 1450.1 428.9 379.3 808.1 FY09 649.6 547.7 1197.3 392.2 380.2 772.5 Variance 28% 13% 21% 9% 0% 5%

CITY ENGINEERING COLLEGE

CONSUMER FINANCE Opt. profit Provisions PBT Taxes N/P 642.0 270.4 371.5 129.3 242.2 424.8 130.2 294.7 105.9 188.8

[ING VYSYA BANK LTD] 51% 108% 26% 22% 28%

Balance Sheet as on 31st march 2010


Particulars Capital & Reserves Deposits Borrowings Other liabilities & Provisions Total liabilities Cash inter bank etc 33,880 3,027 31,857 2,282 6% 33% As on 31st march2010 2.331 25,865 3,671 2,013 As on 31st march 2009 1.703 24,890 2,152 3,112 Variance % 37% 4% 15% 4%

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CITY ENGINEERING COLLEGE

CONSUMER FINANCE
Investment Advances Fixed & other assets Total Assets 10,473 18,507 1,873 33,880 10,496 16,751 2,329 31,857

[ING VYSYA BANK LTD]


0% 10% 20% 6%

BIBLOGRAPHY Sl.no. Author Name 1

Book Name

Edition

Contents

Shashi.K.Gupta Financial Kalyani Management Publication, New Delhi C.R.Kothari Research Vishwa Methodology Prakashan Methods and Techniques

Theoretical background of the topic Design of 2002 the study

Year of Publication 2004

Reports:
Annual Reports of ING VYSYA Bank ltd. 58 CITY ENGINEERING COLLEGE

CONSUMER FINANCE

[ING VYSYA BANK LTD]

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

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CITY ENGINEERING COLLEGE