SUMMER REPORT

ON
RETAIL BANKING IN ING VYSYA BANK
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) A.I.C.T.E., MINISTRY OF HRD, GOVT. OF INDIA SUBMITTED TO: INTERNAL GUIDE NAME- MR. NILESH ARORA DESIGNATION - ASSISTANT PROFESSOR IMS DEHRADUN EXTERNAL GUIDE NAME-ANSHUMAN LAKHERA RELATIONSHIP MANAGER ING VYSYA BANK DEHRADUN
OF

SUBMITTED BY: SUDHANSHU SHEKHAR PGDM 3rd SEM IMS IMS, DEHRADUN PGD-1002

INSTITUTE OF MANAGEMENT STUDIES-DEHRADUN

BATCH 2010-12

DECLARATION
I SUDHANSHU SHEKHAR student of PGDM of IMS, DEHRADUN Internship project report entitled AN ORGANIZATIONAL STUDY at ING VYSYA BANK, DEHRADUN With a special study on RETAIL BANKING IN ING VYSYA BANK in Dehradun has been prepared by is written and submitted by me under the direct supervision and guidance of Mr. NILESH ARORA (ASST. PROF.) in my original work. The entire analysis and conclusion of this report are based on the information which is collected by me during the training period. I also declare that this report has not been submitted to any other institute or university for award of any degree, diploma or fellowship.

CERTIFICATE
I have the pleasure in certifying that Mr. SUDHANSHU SHEKHAR is a bonafide student of IIIrd Semester of Post Graduate Diploma in Management (PGDM), Batch 2010-12, of Institute of Management Studies, Dehradun under AICTE, Ministry of HRD, Govt. of India, Roll No. PGD1002. He has completed his project work entitled RETAIL BANKING IN ING VYSYA BANK under my guidance. I certify that this is his/her original effort & has not been copied from any other source. This project has also not been submitted in any other Institute / University for the purpose of award of any Degree. This project fulfils the requirement of the curriculum prescribed by this Institute for the said course. I recommend this project work for evaluation & consideration for the award of Degree to the student.

Signature Name of the Guide Designation

Date

: : :
:

Nilesh Arora Asst. Prof. ( Placement Coordinator)

ACKNOWLEDGEMENT

This project is a bonafide record of the research work done by me in the partial fulfillment of the curriculum of Post Graduate Diploma in Management. I would like to convey my special thanks to Mr. Nilesh Arora (Asst. Professor (Placement Coordinator) IMS, Dehradun) for giving me an opportunity to under go this project. Above all I would like to thank God as the project would not have been completed without the shadow of his dignity

SUDHANSHU SHEKHAR PGDM IIIRD SEM. PGD-1002

DECLARATION

I PRABHPREET SINGH, student of PGDM, IMS, Dehradun, declared that the project report of Retail Banking is prepared and analysed under the guidance of Mr. Nilesh Arora (Asst. Prof. IMS, Dehradun) This project report is a bonafide record of Research work done by me in the partial fulfillment of the requirement of the course of PGDM of IMS, Dehradun.

SUDHANSHU SHEKHAR PGDM, IMS, DEHRADUN

CONTENTS:RETAIL BANKING
TOPICS
INTRODUCTION Industry(8-11) Company(12-15) OBJECTIVE OF STUDY Primary Secondary LITERATURE REVIEW RESERVE BANK OF INDIAS RECCOMENDATION ON RETAIL BANKING GROWTH OF RETAIL BANKING OVER THE YEARS EMI CALCULATION RESEARCE METHODOLOGY Sample Size Method of Sampling Area of work Parameters of study Method of Data collection Tools Limitations Analysis & Finding 33-42

FINDINGS 1

CONCLUSION & RECCOMENDATION BIBLIOGRAPHY ANNEXURE

INTRODUCTION

INDUSTRY:RETAIL BANKING SYSTEM:It is high outlay business with low margins which news the need for efficiency with fast and economical delivery channels. As the consumer behavior has under gone a drastic change in the recent past to change their time of business. As result of that most of the banks are coming with various product and services for their consumers, which are called, retail banking system. It involves financing for personal purchasing from buying a household item, vehicle, shop to buying a house. All these financing are given in the form either credit card or loan. The other important contents of retail banking are:1. Card management 2. Branch Automation 3. Bill Payment 4. Basic offerings 5. Value added service 6. Credit management

REATIL BANKING IN NDIA AND ITS PROSPECTIVE

Retail banking (sales) is in a booming scenario at the moment. to understand the reasons for this booming we have to negotiate the following reasons. Changing government policies The governments in the last decade have taken some extraordinary steps regarding the economy, these are (a) Indian economy has opened - Indian economy has got globalize in 1992 and till then it has been getting the taste of international market. the things happening in the international scenario is reflecting in Indian market also. (b) Reducing import duties- it means import duties go less and varieties got increased. (c) Earning of the people increased- the PCI of Indian people increased significantly in the Last decade and so the earning in comparison to things. (d) Flow of reputed international brands to India- various MLCS are coming to India to do business and that is boosting the availability of the choices. (e) Strong competition among FIs - lots of financial institutes and FIs have been grooming in India and there is a very strong competition going on to earn more profit. (f) Free presence of foreign investors - government allowed foreign institutional investors to invest unto 100% in various sectors. (g) Decreasing interest rate - in international scenario, the interest rates of banks is lesser than Indian bank. As India became globalize economy it became necessary for RBI to decrease the Interest rate so that Indian banks can compete internationally. (h) Overall due to these revolutionary steps economy became more strong and stable Changing consumer behavior It is one of the basic reason because without change in attitude banks cannot develop alone. (1) It was an old phase "I dont need" .Now Indian people or customers wants to have 1

the authenticity whichever comes in their way? (2) Using various high tech communication system - TV has become a necessary item and in this advertisement became necessary. So this flashy and attractive advertisement solely attracting all kinds of house holds. (3) Changing the vision of life - now a day people live in the present not in the future. Because they feel more secured about the future .moreover the western culture affecting the mind of the Indian people.

BENEFITS TO THE CUSTOMER: (1) Consumer can realize the dreams easily without accumulating money (2) Easy to get the financing (3) Very easy payback system (low EMI) (4) Low interest rate (5) Can invest accumulated money in productive things. BENEFITS TO THE FINANCER (1) The ideal money of the financial institutes is going to start earning (2) Risk of financer is going less because it is not a single client borrowing large amount (3) Earning for long period (say 7 yrs)

RISK AND REMEDIES: For customer (1) Returning capability may get reduced - For this customer has to ensure his loan (2) Inability to take up further obligations.-for this there should be a proper planning before taking a loan (3) consumer is not traceable -for this it is necessary to take a calculated Risk For financer 2

(1) Death of customer For this financer can take following steps Bank takes guarantee of other people Can give insurance package with loan.

(2) Customer may not ready to pay For bank can take over the property of customer

RETAIL BANKING A GAINING PROCESS FOR ALL

Retail banking now a days booming only because it is a win -win process for all where nobody looses neither Neither the customer nor the financer For customer it is a great opportunity to up grade his standard of living. Right now instead Of waiting for years to accumulate the amount For manufacturers its stimulates demand and lowers inventory -For middleman it is a sales boosting factor or device And For players of retail banking it is a means of profit generation Moreover the buy-now-pay later culture is still infant in India and is evolving thought various Forms like consumer landing, consumer credit, consumers loan, family borrowings, and daily payments Schemes etc.

COMPANY
ING Group

Dutch origin offering

I N T R BACKGROUND:O D (Euronext: INGA, U NYSE: ING) is a financial institution of banking, insurance C and asset management services. ING is an T 1 I O N

abbreviation of Internationale Nederlanden Groep (English: International Netherlands Group). As of 2009, ING Group serves 85 million private, corporate and institutional clients in over 40 countries, with a workforce of over 100,000 people. It owns ING Direct as well as retail banking, insurance, investment management, and investment banking operations. Its services operate in countries including the Netherlands, Australia, Canada, France, India, Italy, Spain, Poland, Romania, UK, Turkey and the US. ING is the largest banking/financial company in the world by revenue.[2]

Divestment
In July 25, 2011 ING sells Latin American insurance operations to Colombian insurance group GrupoSura for $3.85 billion, exclude Ing's 36 percent shares in Brazilian insurer Sul America which will be sold in the near future. The actions are in line with EU demands to split its banking and insurance operations as a condition of Dutch state aid has been taken by ING.[3]

Headquarters

ING House, ING headquarters in Amsterdam ING's headquarters, ING House, is located in the business district of Zuidas in Amsterdam. It was designed by Roberto Meyer and Jeroen van Schooten and was officially opened on 16 September 2002 by Prince Willem-Alexander of the Netherlands. The light-infused building features a 250 seat auditorium, foyer, restaurant, and library, and is also home to an art collection.

Transactions with the Dutch State

Capital injection
On Sunday October 19, 2008, in a move to increase its core Tier 1 capital ratio to above 8%, ING Group accepted a capital injection plan by the Dutch Government. The plan will supply 10 billion (US$13.5 billion) into the operation, in exchange for securities, and veto rights on major operations and investments. Wouter Bos, the Dutch finance minister at the time, said that this was done as a means of fortifying the bank as the bank is in a sound financial state, to weather the financial crisis. Management said that the capital

injection shall have no dilutive impact to existing shareholders. As part of the 'loan' agreement, two government advisers have been appointed to the supervisory board.

Repayment of Dutch state

On 21 Dec 2009, ING announced that it has completed its planned repurchase of EUR 5 billion of the Core Tier 1 securities issued in November 2008 to the Dutch State and its EUR 7.5 billion rights issue.

Divisions
Retail Banking
ING offers retail banking services in the Netherlands, Belgium, Luxembourg, Poland, Romania, Turkey, India, Thailand and China. Private Banking is offered in the Netherlands, Belgium, Luxembourg, Switzerland and various countries in Asia and Central Europe. Mid Corporate Clients in the home markets (the Netherlands, Belgium, Poland and Romania) are also part of Retail Banking. In its home market, the Netherlands, ING is the largest retail bank by market share, holding 40% of current account deposits,[4] followed by Rabobank (30%), ABN AMRO (20%), and others (10%). Outside of the Benelux, ING's focus is on Central and Eastern Europe, and Asia. In India, ING has a 44% stake in ING Vysya Bank and is the single largest shareholder. In China, ING has a 16.7% stake in Bank of Beijing, the largest city commercial bank in China. In Thailand, ING has a 30% stake in TMB Bank, a universal banking platform with a nationwide network.

ING Direct
2

ING Direct is ING Group's marketing name for a branchless direct bank with operations in Australia, Austria (branded ING-DiBa), Canada, France, Germany (branded INGDiBa[5]), Italy, Spain, the United Kingdom and the United States. It offers services over the Internet, phone, ATM or by mail, and focuses on simple, high-interest savings accounts. ING Bank of Canada ING's history in Canada goes back to 1997 when it founded ING Direct Canada. As recently as July 2011 ING DIRECT Canada had over 1.7 million clients, employed over 900 people and had over $37.6 billion in assets. ING Direct Canada has five 'Save Your Money Cafs' in the major cities of Toronto, Montral, Calgary and Vancouver.[6] Its products include Savings accounts, Tax-Free Savings Accounts (TFSAs), Mortgages, Retirement Savings Plans (RSPs), Guaranteed Investments (GICs), Mutual Funds, Business Accounts and a no-fee daily chequing account. ING Direct Canada is a member of the Canadian Bankers Association (CBA) and registered member with the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks. ING Direct Canada operates as Banking Institution #614, Transit #00152. Since February 2009 ING Canada (insurance arm) is no longer a subsidiary of ING Group. The 70% interest ING Groep had in it was spun off for $2.2 billion. The company (which has an 11% share of Canada's property and casualty insurance market) was then renamed Intact Financial Corporation in May 2009. ING Group still operates ING Bank of Canada, also known as ING DIRECT Canada. ING Direct United States 2

Part of ING at night in Minneapolis, Minnesota in the United States ING Direct was founded in 2000, with its headquarters in Wilmington, Delaware. ING Direct is a member of the Federal Deposit Insurance Corporation (FDIC). In September 2007, ING Direct acquired 104,000 customers and FDIC insured assets from a failed virtual bank NetBank Two months later, ING Direct acquired online stock broker Sharebuilder. On June 16, 2011 ING announced it reached an agreement to sell ING Direct USA for a total consideration of USD 9.0 billion (EUR 6.3 billion) to Capital One Financial Corporation, a leading US-based financial holding company. Under the terms of the agreement, ING will receive USD 6.2 billion in cash and USD 2.8 billion in the form of 55.9 million shares in Capital One. With its pro forma 9.9% stake, ING will become the largest single shareholder in Capital One. The sale of ING Direct USA to Capital One is expected to close in the fourth quarter of 2011 and is subject to regulatory consent. After closing ING has the right to be represented by one member of the Board of Directors of Capital One. . ING Direct UK 1

ING Direct began operations in the UK in May 2003 and has over 1 million customers. Operations are based in Reading, where the company head office is situated as well as an office based in the city of Cardiff. The bank markets itself as offering good customer service and high interest rates, which are usually higher than its high street competitors, but not always top of comparison tables. The bank has picked up awards for its customer services and mortgage product in 2008 and 2009. On 8 October 2008 ING purchased the savings accounts of the collapsed Icelandic bank, Kaupthing Singer & Friedlander, the UK Treasury used the Banking (Special Provisions) Act 2008 to transfer the Kaupthing Edge deposit business to ING Direct. Through this, ING Direct took over responsibility for 2.5 billion of deposits of 160,000 UK customers with the Icelandic bank Kaupthing Edge. Some customers were dissatisfied after ING lowered the exceptional high rate the collapsed Kaupthing was previously paying. ING Directs products in the UK include Savings Accounts, Cash ISAs, Mortgages and Home insurance.

ING Direct Australia ING Direct Australia was established in 1999 and is headquartered in Sydney, offering banking online and via telephone. The company's operations are regulated by the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission, Federal Government regulators. ING Direct is a division of ING Bank (Australia). In October 2008, ING Direct suffered a $749 million outflow of deposit funds. There had been some confusion as to whether or not the Australian Government's guarantee over 3

funds on deposit applied to deposits up to $1 million with ING DIRECT Australia. Once it was confirmed that the Guarantee did apply to ING DIRECT Australia, outflows that had been solely attributed to this situation slowed and deposits returned. Its products in Australia include Transaction accounts, Savings accounts, Business accounts, Term deposits and Home loans.

Commercial Banking

ING Commercial Banking, London office ING Commercial Banking conducts operations for corporations and other institutions. The primary focus of INGs Commercial banking business is on the Netherlands, Belgium, Poland and Romania, where it offers a full range of products, from cash management to corporate finance. Elsewhere, it takes a more selective approach to clients and products.

ING's Commercial Banking business was strengthened in 1995, when ING took over Barings Bank. This acquisition increased the brand recognition of ING around the world and strengthened its Commercial Banking presence in the emerging markets. Following the acquisition and up until 2004, ING's investment banking division was called ING Barings, at which point it severed its ties with the Barings name and was combined with ING's other commercial banking operations. However the top floor of ING's London office is still home to the Baring Art Collection, and the Baring Foundation, a charitable foundation. Commercial Banking is divided into a number of sub-divisions, including Structured Finance, Financial Markets, and Corporate Finance. Corporate Finance ING's Corporate Finance department advises businesses on important corporate transactions, including mergers and acquisitions, initial public offerings, secondary offerings, share buy-backs and management buy-outs. The division is headed jointly by Maurits Duynstee (Head of Corporate Finance, Continental Western Europe) and Pierre Chabrelie (Head of Corporate Finance, UK and CEE). The bank has advised on a number of recent high-profile European transactions including satellite navigation manufacturer TomTom in a 359m rights issue, energy supplier Nuon in its 8.5bn sale to Vattenfall, and printer-maker Oc in its 1.3bn merger with Canon. ING was the leading advisor in the Dutch M&A league tables in 2009.[18] ING Corporate finance has a strong presence in Russia and Central and Eastern Europe. In 2009 ING advised Mobile TeleSystems OJSC (MTS), Russias largest mobile operator, in its acquisition of a 51% stake in Comstar UTS for USD 1.27bn, and Russia-focused oil producer, Exillon Energy on its USD 100m IPO. 2

Insurance
ING insurance operates throughout America, Asia and Europe. In 2009, ING announced plans to separate its insurance business from its main banking operations through two IPO's or a sell. Analysts estimate that the insurance arm is worth up to 16bn. This section requires expansion.

Advertising and sponsorship

ING New York City Marathon ING sponsors a variety of sports, cultural events, and art exhibitions throughout the world. For several years, ING has been the title sponsor of various US Marathons including the New York City Marathon, the Miami Marathon, the Georgia Marathon, the Hartford Marathon, the Philadelphia Distance Run and San Francisco's Bay to Breakers. ING is a major sponsor of football, sponsoring the Royal Dutch Football Association and the Asian Football Confederation (AFC).

ING was the title sponsor of the Renault Formula One team from the 2007 season to the 2009 season. It was also during this time, the title sponsor of the Australian Grand Prix and Belgian Grand Prix, the Hungarian Grand Prix, and the Turkish Grand Prix. ING ended its sponsorship of Renault in part due to a reduction in advertising spending, and in part due to controversy surrounding the Renault Formula One team. In art and culture, ING's sponsorships include the Dutch national museum in Amsterdam (the Rijksmuseum), the New York Museum of Modern Art, and also the Royal Concertgebouw Orchestra. ING also owns a number of collections itself, in Belgium, Mexico, the Netherlands, Poland and the United Kingdom. ING's use of orange in its corporate logo (as well as including Orange in the name of its products) refers to its Dutch origins. ING's Canadian commercials feature Dutch actor Frederik de Groot. In Australia, they feature an Orang-utan named Charles INDIAN BANKING SECTOR The Reserve Bank of India (RBI) acts as a centralized governing body. Though Public Sector Banks currently dominate the Banking Industry, numerous Private and Foreign Banks exist. India's Government owned Banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several Public Sector Banks are being restructured and in some the government either already has or will reduce its ownership. PRIVATE AND FOREIGN BANKS

The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 289 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations.

An inter-departmental committee approves applications for entry and expansion.

CAPITAL ADEQUACY NORM Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993, while Indian banks with overseas branches had until March 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of India's insurance sector to private, domestic and foreign participants, while keeping the national insurance companies in operation. BANKING India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector. RBI BANKING The Reserve Bank of India is the centralized governing body. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the government's monetary policy. It is also responsible for granting licenses for new bank branches. 30 foreign banks operate in India with full banking Licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. INDIAN BANKING SYSTEM The banking system has three tiers. These are the scheduled commercial banks; the regional rural banks, which operate in rural areas, not covered by the scheduled banks; and the cooperative and special purpose rural banks.

SCHEDULED AND NON SCHEDULED BANKS There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.

REGULATIONS ON FOREIGN BANKS

Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 30 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks. GOVERNMENT AND RBI REGULATIONS All commercial banks face stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to "priority sector" and the Statutory Liquidity Ratio and Cash reserve requirements severely limit the availability of deposits for lending. The RBI requires that domestic Indian banks make 40 percent of their loans at confessional rates to priority sectors' selected by the government. These sectors consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32 percent of their loans to this priority sector. Within the target of 32 percent, two sub-targets for loans to the small- scale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed. Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector. Commercial banks lent dolls 16.46 billion in the Indian financial year (IFY, April-March) 2005/2006, up sharply from dolls 109 billion in the previous year. There are several other worries about the banking sector, mainly confusion over ownership and control. Sometime soon India will be forced to apply the norms of developed countries and many banks (including some of the biggest) will show very poor return ratios and dozens of banks will be bankrupt. When that happens the two popular reasons to defend bad banks will disappear. These are: one, to save face in the remote 1

hope of that fortunes will `revive' and two, some banks are too big to be allowed to fail, fearing social upheaval.

PROFILE OF ING
Who we are ING Group is a global financial services company of Dutch origin with 150 years of experience, providing a wide array of banking, insurance and asset management services in over 50 countries. Our 120,000 employees work daily to satisfy a broad customer base: individuals, families, small businesses, large corporations, institutions and governments. Based on market capitalization, ING is one of the 20 largest financial institutions worldwide and ranked in the top-10 in Europe. The immediate benefit to ING Vysya Bank ltd is the pride of having become a member of global financial services giant, with an asset base of 1159 billion euros, net profit of 7.21 billion euros as of December 31st 2005. Further, the presence of the group in over 50 countries, employing over 117000 people, serving over 60 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 back up 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 to translate into higher returns, to all the stake holders. Business ING is the number one financial services company in the Benelux home market. ING services its retail clients in these markets with a wide range of retail-banking, insurance and asset management services. Our wholesale banking activities operate worldwide but with a primary focus on the Benelux countries. In the United States, ING is a top-5 provider of retirement services and life insurance. In Canada, we are the top property and casualty insurer. ING Direct is a leading direct bank with over 15 million customers in 1

nine large countries. In the growth markets of Asia, Central Europe and South America we, for example, provide life insurance. We are also a large asset manager with assets under management of around EUR 500 billion. Mission we strive to deliver our financial products and services in the way our customers expect: with exemplary service, maximum convenience and at competitive rates. This is reflected in our mission statement: to set the standard in helping our customers manage their financial future. Stakeholders ING conducts its business on the basis of clearly defined business principles. In all our activities we carefully weigh the interests of our stakeholders: customers, employees, shareholders, business partners and society at large. ING strives to be a good corporate citizen. Our strategy We are a customer-orientated company with a clear organization and strategy which is founded on value based management. We have a strong position in mature markets where we want to generate further growth through proper execution of our business fundamentals (such as customer satisfaction and managing costs, risk and our reputation) and we focus on growth in retirement services, direct banking and life insurance in developing markets. That way we try to offer our shareholders a higher return than the average of our peers.

TOP 20 GLOBAL FINANCIAL INSTITUTIONS

HISTORY OF ING

ING GOING FORWARD ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank Group to become the first bancassurer of the Netherlands. During the past 15 years ING has become a multinational with very diverse international activities.

The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. These are the legal predecessons of the founding fathers of ING; NationaleNederlanden and NMB Postbank Group.

The oldest legal predecessor is the Kooger Doodenbos from Koog, Noord Holland, founded in 1743. During that period many regional funds were created to insure people from certain communities, professions, widows and orphans against bad fortune. Many of these small organisations were taken over by larger nationwide operating companies such as De Nationale Levensverzekering Bank. The fire insurers were the first to undertake international activities, starting in the Dutch Indies, but later also in the rest of Asia and in America. This created the foundation for the international company ING is today. The pillarisation of Dutch society that separated Protestants, Catholics and Socialist/Liberals is also visible in the ING history. Banks with a Catholic or Protestant signature merged into the NMB and became part of ING. Professional groups also united in the banking business. Organisations such as the Credietbank for Koffiehuis en Restauranthouders (pubs and restaturants), the Bank voor den Diamantenhandel (diamond trade) and the Vakbondsspaarbank (Union Savings Bank) were involved in several mergers and acquisitions and finally became part of ING Bank and therefore part of the ING family. The founding of ING as one company was started in 1990 when the legal restrictions on mergers between insurers and banks were lifted in the Netherlands. This prompted insurance company Nationale-Nederlanden and banking company NMB Postbank Groep to enter into negotiations. The merger into Internationale Nederlanden Group took place in 1991. The market soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Groep N.V. Since 1991, ING has developed from a Dutch company with some international business to a multinational with Dutch roots.

This was achieved through a mixture of organic growth, such as the creation of ING Direct from scratch, as well as various large acquisitions.

The top of the company pedigree above shows the founding fathers of ING; at the bottom you will find the companies that ING has acquired since its establishment. In addition, companies were bought that have in the meantime been sold again. The first large acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased the brand recognition of ING around the world and strengthened its wholesale banking presence in the emerging markets. Some of Barings activities were integrated in INGs business units, while other parts were closed down or sold. In 1999, ING acquired the German BHF-Bank, but this Frankfurt-based merchant bank was divested in 2004. CenE bankiers also played an important role in INGs history. It had been part of NMB since 1966, but in 2004 ING decided to sell CenE. And then there was Life of Georgia. This insurance company was acquired by Nationale-Nederlanden in 1979, resulting in a considerable increase in activities in the US. Via Life of Georgia, the activities in Asia expanded considerably. However in 2004, ING as a group had become well-established in both regions and Life of Georgia was sold. In 1956 an ING - predecessor (de

Nationale) bought de Tiel-Utrecht. This significantly increased the size of the company. But it was sold again in 1999 to De Goudse. Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened the Groups presence in the Benelux. In addition, the activities in de United States were doubled as a result of organic growth and the acquisition of Equitable of Iowa, ReliaStar, Aetna Financial Services and merchant bank Furman Selz. ING is also active in other parts of the world. In 2001, ING acquired a majority interest in the Polish Bank laski and purchased the remaining stake in the Mexican insurer Seguros Commercial America. Furthermore, ING participates in a number of financial institutions, such as Pacific Antai Life Insurance and the China Merchants Fund Management. It has also established a partnership with the Bank of Beijing. This has strengthened INGs presence in the emerging markets of Asia, where ING has a longstanding presence. The Netherlands of 1845 had been active in China since 1886 and NMB Bank had joint ventures in 1974 (Inter-Alpha Asia). During its short existence, ING has grown into a versatile, international company. ING will continue along this path by providing excellent services through its existing businesses and by focussing on three growth areas: direct banking, pensions and emerging markets. 7th , 2002 1930 1948 1985 1987 Set up in Bangalore Scheduled Bank Largest Private Sector Bank The Vysya Bank Leasing Ltd. Commenced 1 ING takes over the Management of The Vysya Bank from October

1988 1990 1992 1993 1996

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 Cash Management Services, & commissioning of VSAT. Golden Peacock Award -

1998 for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998) State -of - the -art Date Centre at ITPL, Bangalore. 2000 RBI clears setting up of ING Vysya Life Insurance Company 2001 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 2002 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 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 2002 17.12.02 Introduced customer friendly products like Orange Savings, Orange Current and 2003 Protected Home Loans 2004 Introduced Protected Home Loans - a housing loan product Introduced Solo - My Own Account for youth and Customer Service Line Phone 2005 Banking Service 2006 Saral Savings - No Frills Account for the common man

ING APPROACH
Doing Well By Doing Right Operating in a highly competitive global market, our results can be attributed to our willingness to challenge conventional thinking. We pioneered the concept of the integrated financial services company, bringing banking and insurance together to benefit our customers and strengthen our business. Another example is ING Direct. This innovative marketing strategy & communication approach of retail banking started in 1995 and today ING Direct is a leading direct bank with over 15 million customers in 9 large countries. Like every business, success depends on delivering results. But at ING we are also motivated by something more ensuring that every decision we make is the right one. And as a result we are doing well for our customers, our stakeholders and ourselves. In short: Doing Well by Doing Right. Our top priority is to listen to the needs and perspectives of our diverse customers allowing us to stay connected to them, to respond more effectively and anticipate their needs. But from there we encourage our colleagues to take charge and make their own decisions. That way, a good outcome is something we can all feel part of. The way we work Performance is all well and good, but it means nothing if integrity has to be discarded for it to happen. At ING, we believe in responsible growth, which means that how we do business is just as important as the success we enjoy. Ethics play an essential role at ING, and are represented by the Business Principles that guide how we conduct our relationships, make our decisions and develop the potential of our people. Lets talk about your future. 1

Rated a top ten European employer by Fortune magazine, ING is one of the world's fastest-developing financial enterprises. But the speed of our development isnt limited to our ever-growing business success - it also relates to the progressive opportunities we offer the people who choose to build a career with us. ING wants to grow profitably by enhancing customer satisfaction, investing in growth and managing our costs, risks and reputation. We seek to execute our strategy in a responsible way, guided by the ING Business Principles. They provide the basis for all conduct at ING and state the responsibilities we have towards key stakeholders.

Corporate Social Responsibility The bank as a part of its Corporate Social Responsibility has partnered with Parikrma Humanity Foundation. Parikrma Humanity Foundation is a non-profit company aiming to unleash the potential of slum children in urban India. Their mission is to help the poor break their cycle of poverty and live meaningfully through tools necessary to succeed in a knowledge based world. For the past 2 years, ING Vysya Bank and Parikrma partnered together to promote the unique program - "Change Your World in a day", with the aim to transform the lives of hundreds of under-served children in Bangalore.

To know more about Parikrma and its partnership with ING Vysya Bank, visit the site http://www.parikrmafoundation.org/cyw_halfday.htm Corporate Responsibility Report Invest in someone who could be your future colleague

At Parikrma, we have a very simple idea provide the poorest of the poor children the tools to compete equally for value-added jobs. For that they need to have top-class education and we need to hold their hands right through School, Junior College, graduation and even place them in those value-added jobs. Children have reached grade VIII. Three years hence they will enter a Junior College (pre-university) and we need to be ready for that. And all it takes is your a days salary. Change your world in a day

Invest just a day of your entire years salary. In return we will make you a stakeholder in Parikrma. You will get to know the impact your day is making on the children and communities that Parikrma serves. And what is more you will receive a free ticket for 2 to a rock concert that will inspire you. The concert is slated for January 14th, 2007. Change Your World in a Day 2005 Last year 6,200 believers from more than 70 companies participated in the a day program. We were able to raise enough funds to look provide our 360 degree development program to over 250 children (cost/child break up). That is the power of each a day. Change Your World in a Day 2006 This year our objective through the day program is to raise funds to build a Junior College. Your day investment is invaluable to this. Of course you may choose to invest more than just a day. Please do. Every 3

rupee more will further our goal of ensuring continuity of the childrens education beyond school.

ING STRATEGY
SETTING THE STANDARD IN HELPING OUR CUSTOMERS MANAGE THEIR FINANCIAL FUTURE ING MISSION STATEMENT A clear organization To fulfill any mission statement you need an organisation that is up to the task. ING has a management structure based on the principles of transparency, accountability and client focus. Our activities are organized along six functional business lines with direct reporting lines that enable quick decision-making and foster personal empowerment and strong accountability.

A clear financial objective. Our goals is to deliver value to shareholders through a combination of growth and return that is higher than the average of our peers. A clear strategy To achieve this, we manage for value. This means focusing on growing economic profit, which measures profit beyond the cost of capital, and emphasizing return improvement and profitable organic growth.

EXECUTION In our mature businesses profitable organic growth comes from the proper execution of our business fundamentals. This means managing costs, risks and reputation and exemplary customer service. Customer satisfaction ING attaches the utmost importance to exemplary customer service. Especially in mature markets, we believe high customer satisfaction is the way to differentiate ourselves from our peers and to generate profitable top-line growth. In order to continuously improve customer satisfaction, INGs mission statement (above) is the guideline for every employee. We continuously measure customer satisfaction and set performance targets. Managing costs Customer satisfaction alone, however, is not enough to create value, especially not in mature markets. Fierce competition in these markets makes it essential to look continuously for ways to keep costs under control and improve efficiency. Cost containment and excellent customer satisfaction go hand-in-hand as operational drivers to create value in these markets. Managing risks Managing our risks and consequently the cost of capital is essential for stable, profitable growth. Risk management supports value creation by providing insight into the levels of risk we can absorb compared with our earnings power and capital base. Integrated risk management (combining credit, market, insurance and operational risk into one common view) is a key ingredient in our strategy. It allows us to capture the benefits of being a diversified financial services firm and to create a clear overview of all risks. Our ultimate 1

goal of integrated risk management is to better align our risk taking to our risk appetite. This allows ING to make optimal use of its capital base, leading to a lower overall cost of capital. Managing reputation Integrity and reputation are two of INGs most important assets. Our strong focus on execution has resulted in a greater emphasis on the importance of adherence to laws and regulations. Regulatory compliance is essential because INGs long-term relationships with its clients depend on integrity and fairness. ING has a groupwide compliance policy. Senior management is accountable for compliance and compliance is integrated in their performance targets and remuneration structure. GROWTH ING also continues to invest in business areas that have clear growth potential. We have defined three main areas of growth: retirement services, direct banking and life insurance in developing markets. ING has strong positions in these businesses and intends to raise further their profit potential by using the experience and capital gained in INGs mature business. Direct Banking The continuing increase of the use of internet offers great business opportunities. With ING Direct we have delivered in this business and continue to do so. Today, ING is the leading direct bank in the world. By expanding our product range from savings into mortgages, we expect to continue to grow this business. Currently ING Direct is active in nine mature economies: Australia, Canada, France, Germany, Austria, Italy, Spain,

United Kingdom and the United States. In the Netherlands, Postbank is INGs direct bank. Retirement services We see significant opportunities in mature and growth markets for retirement services. This is driven by demographic and regulatory changes. The population throughout the world is ageing. Governments can not deal with this challenge on their own. Retirement services are a key area for businesses to develop. ING has a long-standing expertise in this field. We already excel in providing retirement services in many regions. ING is involved in assisting governments and setting up pension structures in many developing markets. Life insurance in developing markets We can build on an established presence in Asia/Pacific, Latin America and Central Europe. In Asia, we have a great portfolio of insurance businesses. We focus on longterm relationships and strong alliances with banks in the region. In Central Europe, ING has been present from the start when their markets opened up to the West. We have a very broad presence there. Today, ING is the number one life insurer in the region and is well positioned to benefit from the growth of these markets.

A PERFORMANCE CULTURE Success requires that employees understand INGs strategy and the goals of their business unit. Employees must know their role in achieving these goals and receive regular feedback on their performance and are rewarded accordingly. This is how ING sees a performance culture and how it is being embedded in the company. 2

OUR VALUES We are a customer-orientated company with a clear organisation and strategy which is founded on value based management. We have a strong position in mature markets where we want to generate further growth through proper execution of our business fundamentals (such as customer satisfaction and managing costs, risk and our reputation) and we focus on growth in retirement services, direct banking and life insurance in developing markets. That way we try to offer our shareholders a higher return than the average of our peers. LEARNING AND DEVELOPMENT HOW DO I DEVELOP MY STRENGTHS? BRINGING LEARNING TO LIFE. Like everything at ING, your learning and development is designed to be practical, entrepreneurial and innovative. Practical, because we aim to make you as successful as possible, as quickly as possible, in your field; entrepreneurial, because ultimately you are responsible for driving your learning; and innovative, because that's just the way we are. Each country and Business Unit delivers learning in the way most appropriate to them, but these guiding principles remain constant: With the support and guidance of your manager and Human Resources adviser, you will have the opportunity to explore the business, build up a valuable network of contacts and find the area most suited to you During your career at ING, you will experience different roles and projects that really challenge you. For example, you may be involved in a 'Greenfield' initiative, helping to 3

build a new business in a new geographical area; or a 'Goldfield' initiative, in which you'll pioneer a new market where we already have a presence You will receive exceptional on-the-job, in-house and professional training We monitor your performance and give you regular feedback, so you deepen your understanding of yourself and the possibilities open to you Colleagues and managers are very willing to share their experience and advice - after all, if it helps you, it helps the business!

The ING Business School, based in the Netherlands, offers unique, high quality leadership education to current and future senior managers and specialists across our company in an ING setting. NURTURING OUR TALENT Organisational Learning is our fully-integrated global training function. It is a key contributor to performance success, allowing employees to take responsibility for their own learning and development and reflecting our commitment to building a workplace culture where all employees have the opportunity to learn and grow. We have a One Bank curriculum to ensure that all employees have access to consistent learning opportunities across our markets supported by several Learning Resource Centres. Such Learning Resource Centres provide learning solutions for both personal and professional development through taught and on-line learning. This focus has allowed us to increase both the number of learners and learner days significantly in the past three years. LEADERSHIP AND EXECUTIVE DEVELOPMENT Effective leadership is the key to both our current and future success. We use a range of development and assessment programmes to develop leaders including the development of Individual Leadership Plans, developing strengths, identifying learning opportunities

and mentoring. We also provide individual coaching to improve leaders performance and encourage their personal and professional development. ING also sponsor executive development programmes with leading academic institutions. WHATS IN IT FOR YOU? People joining ING will be connected to a wealth of training, development, career opportunities and a whole lot more. We think that a satisfying career at ING should incorporate a number of other elements to keep you engaged, passionate and committed.

HERES HOW WE DO IT: Were hungry. ING is characterised by differentiation and international expansion. Its a good time to join us, especially if you are looking for an international working environment. Time goes fast in our business. We hire people who are able and eager to handle responsibility fast then help them develop the practical skills they need to do so. This means giving them early responsibility and hands-on challenges to prove what they can. We are a learning organisation with an innovative and progressive reputation. We have our own ING Business School, to which you will get regular access. Our people enjoy a host of personal, professional and virtual learning tools to stay ahead of the rest. At ING, people that deliver results and create value will be fairly recognized and rewarded. YOU AND ING What you will find at ING is a combination of independence and collaboration. We all work closely together, across business lines and international borders. But at the same time we encourage personal responsibility and ownership. We pride ourselves on offering even our newest starters the opportunity to make a real contribution, and deliver real results. Taking ownership of the decision-making process, you will make sure your ideas are right for our customers, our stakeholders and each other. Then we will give you the support you need to make them happen. Because we believe that our global success is something we should all feel part of. In short: Doing Well by Doing Right. Rewarding Performance ING believes employee rewards should be strongly linked to market and performance, and therefore each business line has designed specific remuneration and incentive and

benefit plans which support this belief. More information about working at ING can be read in the We employ People section of ING Corporate Responsibility report.

PERFORMANCE MANAGEMENT

HOW AM I DOING? Building a high performing organisation ING is committed to being a high performing organisation which delivers excellent results and standards of service to all our stakeholders. Our approach aims to ensure that all employees are clear about what they are expected to achieve, their personal development goals and their contribution to business performance.

REWARD AND RECOGNITION HOW AM I RECOGNISED AND REWARDED? Differentiating high performance Bank is committed to providing compensation and benefits competitively positioned to attract, retain and motivate talented individuals. As a high performing organisation, we link rewards to individual performance and the extent to which the employee has demonstrated a commitment to our values. Consistent with our values, base salaries bonus and share awards are benchmarked against our key competitors, focusing on high performing employees.

Core benefits such as annual leave, retirement benefits, sickness and medical benefits are provided across our businesses and geographies in accordance with local custom and practice.

EFFECTIVE SERVICE DELIVERY 1

Effective service delivery is the priority of the human resource function to deliver an efficient, value-added service across the Bank. HUMAN RIGHTS ING supports the rights of the individual as expressed in the 1948 United Nations Universal Declaration of Human Rights (UDHR). The UDHR contains a number of fundamental rights, which we aim to uphold in all circumstances, including: The right to life The right to legal recognition as a person Freedom of thought, conscience and religion Freedom of opinion and expression Freedom from torture Freedom from cruel, inhumane or degrading treatment Freedom from slavery and servitude Freedom from retroactive penal legislation ING meets all relevant international legal obligations and all relevant local legal obligations in the countries in which we operate. Bank strictly apolitical and do not engage in political activity, support political parties or have any political affiliations worldwide. They recognize hat bank have direct responsibility for the impact of their activities on their employees, suppliers, customers and the communities in which they operate. Bank work to protect human rights in their own operations through their internal policies and procedures. Bank policies also ensure that human rights are taken into account in procurement and lending decisions.

LABOUR STANDARDS The International Labour Organisation (ILO) is a United Nations agency which promotes human and labour rights. There are eight ILO Conventions that have been identified as

fundamental to individuals at work, irrespective of levels of development of individual member states. ING fully supports the fundamental ILO conventions. However, bank are mindful of labour laws within the countries in which they operate and of the fact that some countries have not ratified all of these conventions. Bank commitment to the Global Compact also means that they observe its principles on labour standards.

PRODUCT PROFILE OF 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 year of 2005 was the 75th anniversary or Platinum Jubilee year.

ING VYSYA BANK OFFER INCLUDES:

Retail Banking NRI Banking Services Private banking Whole Sale banking

Financial Markets ING Vysya Life Insurance ING Vysya Mutual Fund

INGS BUSINESS LINES ING has a structure of six business lines. A clear client focus and strong business logic are the key elements in this structure.

Insurance Europe Operates the insurance activities in the Netherlands, Belgium, Spain, Greece and Central Europe and asset-management activities in Europe. In these countries we offer life insurance with special attention for pensions. In the Netherlands and Belgium we also offer non-life insurance. Insurance Americas Holds insurance operations and asset-management activities in the Americas. It is well established in the US with retirement services, annuities and life insurances and has leading positions in non-life insurance in Canada and Mexico. Furthermore, we are active in Chile, Brazil and Peru. Insurance Asia/Pacific

Holds the life insurance operations and asset/wealth management activities in Asia/Pacific. It has well established positions in Australia, Hong Kong, Japan, Korea, Malaysia and Taiwan. The activities in China, India, and Thailand are future growth engines for ING.

Wholesale Banking Takes care of the global wholesale-banking operations. It has five divisions: Clients, Network, Products, Corporate Finance and Equity Markets, and Financial Markets. Wholesale banking offers a full range of products to corporates and institutions in the home markets in the Benelux countries and elsewhere it operates a more selective and focused client and product approach. Retail Banking Holds retail banking activities in the Netherlands, Belgium, Poland, Romania and India. Retail Banking also offers private banking in selected markets; for instance in the Netherlands, Belgium, Switzerland, Luxembourg and several countries in Asia. ING Direct Operates direct retail-banking activities for individual clients in Australia, Canada, France, Germany, Austria, Italy, Spain, United Kingdom and the United States. Main products offered are savings and mortgages. A separate activity is ING Card, which manages a credit-card portfolio within the Benelux.

PROFIT CONTRIBUTION BUSINESS LINES

ORGANISATION CHART- ING VYSYA BANK DEPARTMENTS DIFFERENT DEPARTMENTS

Retail Banking Wealth Management Business Banking Division Agriculture & Social Banking NRI Banking Services Corporate & Investment Banking Emerging Corporates Private Banking Whole Sale banking Financial Market Mutual Funds Life Insurance Payments Cash Management Services Customer service Trade Finance Services Home Loan Personnel Loan

HR ITPL Corporate Services Department Corporate Sales Locker Credit cards

PUNJAB NATIONAL BANK Named as the "Banker of the year 2000", Punjab National Bank (PNB) is a public sector bank wholly owned by the Government of India. The bank has a strong mix of rural and semi-urban areas, which incidentally accounts for 68% of its total branch network. The number of branches of the bank has gone up significantly from 619 at the time of nationalization in FY69 to reach 3,879 by March 2001. Total advances and deposits for the first half of the current financial year stood at Rs 296 bn and Rs 611 bn respectively. Of the total deposits, current, savings and term deposits accounted for 10%, 33% and 57% respectively. Since savings and current deposits are low cost funds, they are more favorable for banks. The bank's deposit mix is line with industry statistics. The bank has diversified into other business areas through its subsidiaries: PNB Capital Services Limited- PNB Caps is engaged in securities related business and offers services in investment banking, project appraisal, loan syndication and corporate advisory activities. The company has posted a net profit of Rs 18 m in 1HFY02 as compared to a net loss of Rs 14 m in FY01. PNB Housing Finance Company Limited- Engaged in housing finance activities. The subsidiary posted a net profit of Rs 90 m in FY01 and profits for the first half of the current fiscal stands at Rs 50 m. PNB Asset Management Company- Manages mutual funds. The company incurred losses for the last three years mainly because of its two assured return schemes. Both the schemes have been redeemed. The company has earned a profit of Rs 3 m as on September 30, 2001. As part of the restructuring proposal the bank is looking for a strategic partner. PNB Gilts Limited- A primary dealer in Government securities and deals with money market instruments. It is one of the major players in the debt market and net profits for 1HFY02 stands at Rs 456 m. The company came out with a public issue in 2000 at Rs 30 per share and is trading at Rs 18 levels. 1

The net Non-Performing Assets (NPAs) of the bank as of 31st March 20001 was Rs 19 bn, which was 6.6% of net advances. PNB's capital adequacy ratio (PNB) stood at 10.7% in 1HFY02.

RESERVE BANK OF INDIAS

2

RECCOMANDATION

RESERVE BANK OF INDIAS ON RETAIL BANKING:On the basis of the recommendations of the Working Group on Lenders' Liability Laws constituted by the Government of India, RBI had examined, in consultation with Government, select banks and financial institutions, the feasibility of introducing the Fair Practices Code for Lenders. The guidelines have since been finalized and banks/ all India Financial Institutions have been advised by to adopt the broad guidelines and frame the Fair Practices Code duly approved by their Board of Directors. The broad guidelines of RBI address the following issues: Applications for loans and their processing. Loan appraisal and terms/conditions. Disbursement of loans including changes in terms and conditions. Post disbursement supervision. Other general matters. Grievance redressal mechanism. II. Fair Practices Code: Based on the above guidelines, the fair practices code proposed to be followed by our Bank is discussed in the following paragraphs. The fair practices code, proposed for our Bank, is broadly in line with the guidelines issued by RBI vide its letter no. DBOD.Leg.No.BC.104/09.07.007/2002-03 dated May 05, 2003.

i) Applications for loans and their processing: The code on applications and their processing will be applicable for all priority sector loan applications up to Rs.2 lacs. The following code is proposed to be followed: a) A comprehensive loan application has been drawn up. The loan application shall be obtained from all the applicants. The format has been drawn so as to 1

include information about fees/charges payable for processing at the time of issuing the sanction letter and pre-payment options to enable the applicant to make comparison with other banks b) The application forms for schematic loans have been/will be similarly drawn up according to specific features of the scheme. c) The branch where the application is received shall give an acknowledgement for receipt of the loan application, indicating the time frame within which the loan application will be disposed of. d) The branch shall verify the loan application and if additional details/documents are required, it shall be intimated to the applicant within five working days of receipt of the application. e) The branch shall process the application without delay. Wherever possible, branch shall convey reasons for rejection. ii) Loan Appraisal and Terms and Conditions:

The guidelines on loan appraisal and stipulation of terms and conditions are applicable to all the loan applications irrespective of quantum of advance. a) The sanctioning authority shall ensure proper assessment of the credit application as per the extant instructions and credit policies of the Bank. The availability of adequate margin and/or security shall not substitute the due diligence on credit worthiness of the customer. b) All terms and conditions and other covenants of the sanction shall be duly communicated in writing to the customer by an authorized official of the Bank. In case the customer is an illiterate or expresses inability to understand the terms and conditions, the customer shall be orally explained the terms and conditions relating to the sanction. The name and designation of the official who has explained the terms and conditions of the sanction shall be recorded on the sanction letter. c) The acceptance of the customer shall be obtained on duplicate copy of the sanction letter with the customer's signature and date. d) A copy of the loan agreement along with all enclosures quoted in the loan agreement shall be furnished to the customer at the time of execution of documents. e) The loan agreement shall clearly state that the credit facilities are extended solely at the discretion of the Bank and that drawings will be solely at the discretion of the Bank. These may include: i) Drawings beyond the drawing power/sanctioned limits. ii) Honouring of cheques issued for purposes other than specifically stipulated in the sanction. iii) Drawings in an account once it is classified as NPA. iv) Drawings in case of non-compliance of terms and conditions by the borrower. f) The sanction letter/ loan agreement shall clearly state that the Bank does not have any obligation to meet additional requirements if any, on account of growth

in business, etc.

iii) Disbursement of Loans Including Changes in Terms and Conditions:

a) The disbursement will be done only after compliance of all the terms and conditions of the sanction by the borrower, to the satisfaction/approval of the Bank. b) Any change in terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes. Any changes which are generally applicable to a category of borrower shall be notified by display on the Branch Notice Board. c) Any change in interest rate and charges will be effected only prospectively. iv) Post Disbursement Supervision: a) Branches will have to ensure that post disbursement supervision, particularly in respect of loans up to Rs.2 lacs, is constructive with a view to taking care of any 'lender related' genuine difficulties that the borrower may face. b) The post disbursement supervision such as submission of periodical reports and periodic inspection will be stipulated at the time of sanction of the loan. The sanction letter also would mention whether the Bank/borrower will bear the cost of inspection. c) The Bank will issue notices to the borrower in advance in case the Bank decides to recall the advance/accelerate the payment/accelerate the performance under the loan agreement or seeking additional securities. d) The Bank will release all the securities on receiving full payment of the loan subject to any legitimate right or lien for any other claim Bank may have against borrowers. In case the Bank decides to exercise right of set off/lien, the borrower will be notified about the same with full particulars about the remaining claims and the documents under which the Bank is entitled to retain the security till relevant claim is paid/settled. 4

v) Others: a) The bank will not interfere in the affairs of the borrower except for those provided for in the terms and condition and loan documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts and scrutiny of QIS statements. b) In case any new information not disclosed earlier by the borrower, has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and Bank shall have full right to review the continuation or otherwise of its sanctioned credit facility to the borrower in the background of such information. c) While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending. d) In the matter of recovery of loans, apart from normal communication and discussions with the borrowers, the Bank shall resort to lawful means for making recovery of its dues. e) In case of request for transfer of borrow account either from borrower or from other banks/FIs which proposes to take over the loan, the Bank's consent or objection, if any, shall be conveyed within 21 days from the date of receipt of the request. vi) Grievance Redressal: Though the sanction of the loans will be at the sole discretion of the Bank, borrowers will have an opportunity to appeal against the decision of the Bank's functionaries. Any such grievance received from a borrower will be heard and disposed of by next higher authority. For this purpose the following decision review structure is proposed to be put in place:

Grievance against decision of reviewing authority

5

Branch Head EVP & Chief Credit Officer/ EVP (Retail) as the case may be VP/AVP (Credit) at Corporate Office EVP & Chief Credit Officer VP/AVP (Retail) at Corporate Office EVP (Retail) EVP & Chief Credit Officer/ Executive Director Managing Director The Bank will review at periodical intervals, compliance of the fair practices code and effectiveness of the grievance redressal mechanism.

GROWTH OF RETAIL BANKING SALES OVER THE YEARS:-

(Rs Bn) CAR FINANCE M MERKET

2003-04 121.80

2004-05 142.40

2005-06 170.90

2006-07 212.40

CSGR(%) 20.20

HOUSSING FINANCE PERSONAL LOAN CREDIT CARD TWO WHILLER CREDIT COMMERCIAL VEHICLE CONSUMER DURABLE TOTAL ANNUAL RETAIL MERKET

130.00 15.00 5.00 30.40 61.60 15.20 378.90

160.00 20.00 11.20 36.80 62.10 17.90 450.50

210.00 28.00 24.80 50.80 76.70 21.00 582.20

360.00 39.20 34.20 68.60 92.00 25.20 831.70

40.00 37.30 89.00 30.80 14.20 18.20 29.60

EMI CALCULATION:P*R*T*(R-1) EMI= .... T (R-1) T - DURATION OF MONTH R - ANNUAL INTEREST (MONTHLY REDUCING) R -(1+r/12)/100

P - PRINCIPLE AMOUNT Principle Annual Interest rate Duration of Years Duration of Months EMI 176053 9.75% 7 84 2900 Opportunity Cost Total Amount Paid NPV IRR Total cost to customer 45086.18 6% per year 243600.00 198513.82

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:The research is carried on qualitative and quantitative platform. In qualitative platform, personal interviews are conducted with managers of ING VYSYA BANK, DEHRADUN. The personal interviews gave us the insight in making the questionnaire. The questions were based upon the interaction between us and managers. On quantitative platform, we make the questionnaire to gather the information for the research work. The questions in questionnaire were both clo0sed and open ended. The purpose is to gather information and opinion of the people.

The sources of data

(1) Primary. (2) Secondary Secondary data was gathered from the following source: 1. Banks Brochures. 2. News papers 3. Internet. 4. Business Magazines 5. D. S. A.

The primary data were gathered mainly through questionnaire and observation methods. The questions were made to gather information in the form of quantitative and qualitative. The questions were grade keeping the objective as the base. The information represented by questionnaire is meant to support the research process of comparison. The research is carried on qualitative and quantitative platform. In qualitative platform, personal interviews were conducted with managers of ING VYSYA BANK, DEHRADUN. The questions were based upon the interaction between us and the managers. We made the questionnaire to gather information for the research work. The question in there was both closed and open ended. The purpose is to gather standardized information and opinion of the people.

ANALYSIS AND FINDING

1

(1)

Which bank you are banking with? (b)PNB (c) HDFC (d) OTHERS

i. ING VYSYA BANK, DEHRADUN

(2)

Are you satisfied with your bank? (a)Yes (b) No (c) Cant says

ARE YOU SATISFIED WITH YOUR BANK

NO 26% YES NO YES 74%

(3)

What is your occupation? (a)Gov employee (b) Private sector employee (c)Businessman (d) Other

W HAT IS YOUR OCCUPATION

6% 26% 40% GOV EMPLOYEE PRIVATE EMPLOYEE BUSINESSMAN OTER 28%

(4)

What kind of account you have? ( a) saving ( b) current(c) fixed deposit

WHAT KIND OF ACCOUNT YOU HAVE

16% SAVING A/C 22% 62% CURRENT A/C FIXED DEPOSITE

(5) Is external persons interference through bank to get recovery of loan is correct or not? (a) Yes (b) No (c) Cant say

IS EXTERNAL PERSON'S INTERFERANCE THROUGH BANK TO RECOVERY OF LOAN IS CORRECT OR NOT

10%

20% YES NO CAN'T SAY

70%

6 Have you taken loan from ING VYSYA BANK, DEHRADUN or OTHERS BANKS? (a) ING VYSYA BANK, DEHRADUN (b) OTHERS BANK

HAVE YOU TAKEN LOAN FROM ICICI OR PNB

70 60 50 40 30 20 10 0

62 38

HAVE YOU TAKEN LOAN FROM ICICI OR PNB

ING ICICI

OTHERS PNB

7 Do you think government banks have more formalities in comparison to private banks? (a) Yes (b) No

DO YOU THINK GOVT BANK HAVE MORE FORMALITIES IN COMPARISION TO PRIVATE BANK

34% YES NO 66%

(8)

Why you chose ING VYSYA BANK, DEHRADUN or Others banks?

80 70 60 50 40 30 20 10 0 60

75 60 65 54 35 40 25 40 46 TIM ING FAS T SE RV ICE FACILITY PERSONAL A TTENTATION ATM

ING
ICICI

OTHERS
PNB

W HY Y OU CHOOSE ICICI OR P NB

(9)

Which bank you prefer to loan ING VYSYA BANK, DEHRADUN or PNB?

120 100 80 60 40 20 0 ICICI 60 70 46 50 55 35 0 PNB 40 54 50 30 45 65

100

CAR LOANS COMMERCIAL LOAN HOME LOAN LOAN AGAINEST SECURITY PERSONAL LOAN LOANS AGAINST MORTAGE EDUCATION LOAN

W HICH BANK YOU PREFER TO LOAN ICICI OR PNB

10 Which bank will you prefer to further transaction in future? (a) ING VYSYA BANK, DEHRADUN (b) PNB

I P 6 4 W C N 0 H B % I C I H B A N K Y O U P R E F E R T O F U R T H E R T R A N S A C T I O N

Analysis of Hypothesis:Chi Square Test The Chi-Square Test procedure tabulates a variable into categories and computes a chisquare statistic. This goodness-of-fit test compares the observed and expected frequencies in each category to test either that all categories contain the same proportion of values or that each category contains a user-specified proportion of values. Let null hypothesis: People prefer the loan of ING VYSYA BANK. Than alternative hypothesis: people dont prefer loan ING VYSYA BANK.

Types of loan given by ING Car loan Commercial loan Home loan Loan against security Personal loan Loan against Mortgage

Obs. Frequency(o ) 21 28

Exp. o- e Frequency(e) 19 24 2 4

(o-e)2 4 16

(o-e)2/e 0.21 0.67

18 14 9 10

16 13 8 20

2 1 1 - 10

4 1 1 100

0.25 0.77 0.125 5

Degrees of freedom = 6-1=5 At 5% level of significance, value of chi square for DF (5) = 11.07 Calculated value = 6.332 Since calculated value is lower then the tabulated value of chi square, Therefore Null hypothesis is proved. Hence, it is proved people prefer loan to ING VYSYA BANK, DEHRADUN because it good service.

LIMITATION:
This analysis is based on the data upto 2006-2007.

FINDINGS

TYPE OF SALES (ORG STRUCTURE):5

ING VYASYA REGIONAL SALES MANAGER PRODUCT MANAGER BRANCH MANAGER

SPECIAL FEATURES OF ING VYSYA BANK, DEHRADUN CAR LOAN

The # 1 financier for car loans in the country. Preferred financier status with 12 leading car manufacturers. Largest network of branches and ATMs amongst private & foreign banks. Largest network of more than over 800 Direct Sales Agencies over 275 cities. Tie-ups with all leading dealers to ensure one stop solution. Flexible schemes & quick processing. Finance available for used cars.

LOAN AMOUNT

NEW CAR USED CAR LOAN ENHANCEMENT 2

1) New car ING VYSYA BANK, DEHRADUN bank finance up to 90% of the ex-showroom cost of the car. The amount financed will depend on the Loan to Value (LTV) ratio. The LTV ratios are applicable on the invoice value of the cars. Customer has to bear registration and insurance charges. The LTV also depends on the car model. Higher LTV ratios are available under specific enhanced income eligibility criteria. Please contact our representative for further details. Minimum loan amount for new car Loan is Rs.1 lack. 2) Used car For a used car, finance up to a maximum of 80% of the valuation amount provided. You can also avail of a refinance against an existing car. In this case, the funding will be 70% of the valuation amount. Minimum loan amount for a used car loan is Rs. 75000/3) Loan Enhancement To enhance your loan amount, the certified income of the co-applicant is considered, if requested by the applicant. The co-borrower can be the spouse or son/daughter living in the same city. Since the co-borrower is the joint applicant for the loan, he/she has the obligation to repay the loan along with the main applicant. Similarly, a guarantor can be any relative or director (in case of a private limited company). The guarantor provides the guarantee that the customer will repay the loan as per the terms & conditions of the loan. However, in both cases, the asset has to be registered in the name of a single owner, not joint ownership.

RATES AND FEES ING VYSYA BANK, DEHRADUN bank offer most competitive rates in the industry. Interest rates also depend on Car model, Loan Tenure, Customer Location and Profile, etc. For more information on ING VYSYA BANK, DEHRADUN car loans and interest rates kindly contact Branch or 24 Hour Customer Care Center and they will send representative at

your place. You can also submit your request online or contact nearest Car Dealers for the same. Interest is calculated on a monthly reducing balance and the rate remains unchanged till the maturity of the loan. No processing fee for Loans on New Cars ING VYSYA BANK, DEHRADUN charge a processing fee of Rs.1000 for used car loans on loan amounts up to Rs.1.10 lack APPLICATION PROCESS You may contact the nearest ING VYSYA BANK, DEHRADUN Bank branch for the best deal available on the car of your choice. You need not visit our office for documentation. The documents may be handed over to our direct marketing associate/ dealer you are dealing with. If you wish to cancel your loan application and the loan has not yet been disbursed, no letter is required. But if the loan has been disbursed, a letter is required requesting for cancellation of the loan. You can apply for another loan and we shall sanction the loan based on your repayment capacity. To verify your application status, contact the representative who is processing your loan application.

DOCUMENTATION Salaried Individual Application form Photograph Photograph Guarantor's photograph (for private limited company only) Last two years' Last two years income proof (audited audited financials account or ITRs + CA certified financials) 4 Photograph of signing partner Self-Employed Individual Application form Partnership Firm Application form Private / Public Ltd Co Application form

Proof of bank account One proof of income continuity (ITR for the last two years )

One income proof for the last two years (ITR, Form 16, salary slip)

One proof of identity (driving license / voters' identity card / passport / PAN card / photo credit card / photo ration card) One proof of residence (laminated driving license / voters' identity card / photo ration card / passport /utility bills for the last 3 months / company ID - limited company or government / PAN card)

One proof of Partnership deed residence (driving license / voters' identity card / ration card / passport / utility bills for the last 3 months) One proof of Partners authority residence (driving letter license / voters' identity card / ration card / passport / utility bills for the last 3 months) One proof of office address (utility bill / lease deed / excise or sales tax receipt / Shops and Establishment Act Registration)

Certified true copy of the MOA & AOA

Board resolution (format available on request)

HOW TO REPAY Repayment tenure ranges from 1 year to 7 years for New Car Loans. 6 Year and 7 year loans are available for specific models. Maximum loan tenure for used car would depend on the age of the car. The car should not be more than 8 years old at the time of maturity of the loan. You may change the tenure of the loan before the loan is disbursed. The interest rate & EMI would change accordingly. The repayment due dates are 1st and 7th of every month and would depend on the date of disbursement. Payment due dates cannot be changed.

You can make the Payments through post-dated cheques (PDCs) or direct debit mandates (for ING VYSYA BANK, DEHRADUN Bank account holders) only. Payments through cash or credit cards are not accepted.

You may change the PDC's only in case your Bank Account is changed. However, we would require verification of signatures by new banker. A nominal fee of Rs. 500/(Swap Charges) would be charged for exchange of cheques.

A full pre-payment of the loan is accepted. Part pre-payment is not allowed. We charge pre-payment fee of 4% on the outstanding principal amount if prepayment is requested within 6 months from date of Loan Agreement. Pre-payment after 6 months from the date of agreement attracts Pre-payment fee of 3% of Outstanding Principal Amount.

We charge Rs.500 per bounced cheque.

DISBURSMENT The loan will be disbursed within one day of submitting all the post sanction documents as listed below. If the vehicle is readily available with the dealer, you can get your as soon as the disbursal is made to the dealer. However ING VYSYA BANK, DEHRADUN Bank is in no way responsible for car deliveries as they are regulated by the car manufacturer's delivery schedules. You can retain the original Registration Certificate, Invoice and the Insurance Policy. We simply require a photocopy of these documents.

SPECIAL SCHEAMES 6

Credit Card Scheme: Submit the last 4 billing statements of a premium credit card that you hold and you can be free from any income documentation. Repayment Scheme: If you have availed of a car loan/ home loan from a leading financier, bank, or finance company, all you need to do is provide us the repayment record. You need not provide your income proof under this scheme.

No Income Proof Scheme: If you are a self-employed individual who has been in business for at least 3 years and own a house or office, this special scheme is designed for you. No need to provide your income details under this scheme.

For more information on our car loans offers kindly contact our Branch or 24 Hour Customer Care Center and we will send our representative at your place. You can also submit your request online.

CAR LOAN TOOLS THAT CAN BE USED

PATROL OR DESAL CAR

This tool should help you arrive at the decision of which car to opt for. However, subjective factors like noise and vibration are not considered here. NEW OR OLD CAR This tool will help give you an indication on whether or not you should go in for a new car or a used one.

FREQUENTLY ASKED QUESTION What are the loan tenure options? The tenure of the loan could range from one to seven years for new cars and from one to five years for used cars. What are the lending rates? 8

The lending rates vary on the basis of discounts, which are offered by manufacturers and dealers. ING VYSYA BANK, DEHRADUN Bank has a tie-up with most of the manufacturers and authorized dealers and our sales team will help you negotiate the best deal on your car loan. How is the interest charged/calculated? Interest is calculated on a monthly reducing balance basis. Do I have to pay any additional charges? We charge a processing fee of Rs.1000 for used car loans on loan amounts up to Rs.1.10 lac. How do I approach ING VYSYA BANK, DEHRADUN Bank for a Car Loan? You can approach us in any of the following ways Apply online Write to us at customer.care@ING VYSYA BANK, DEHRADUNbank.com Call us at our 24 hour Customer Care Center You can just walk into any of our branches Contact any of our direct sales agents.

How much time will it take for my loan to be approved? The loans are generally approved within 24 hours of submission of complete documentation. Who can be the co-applicants for the loan? Your spouse or any blood relative staying in the same residence can be a co-applicant. Is a personal guarantor a must? No, a personal guarantor is not a must. What security/collateral do I have to provide? No additional security/collateral needs to be provided, apart from the car against which the loan is granted, being hypothecated to ING VYSYA BANK, DEHRADUN Bank. If I do not meet all the criteria for the loan, can I still avail of a loan? Yes, it is possible for you to avail of a loan even if you do not meet all the criteria, at the discretion of ING VYSYA BANK, DEHRADUN Bank. How do I repay the loan? 9

The loan can repaid through post dated cheques drawn on ING VYSYA BANK, DEHRADUN Bank Ltd. Alternately, if you have a Bank account with ING VYSYA BANK, DEHRADUN Bank, you can issue a direct debit mandate to your existing ING VYSYA BANK, DEHRADUN Bank account for the repayment. Can you prepay your loan? Yes, you can fully prepay your loan by paying the principal outstanding. A nominal charge of 4% of the outstanding principal if the pre-payment is within 6 months from date of agreement. Pre-payment after 6 months from the date of agreement will attract a charge of 3% of the outstanding principal. A part pre-payment is not allowed. What is a Monthly Reducing Balance? In the case of monthly reducing balance method, the principal gets reduced at the end of every month and the interest is calculated on the outstanding principal at the end of the month. What is an Annual Reducing Balance? In the case of annual reducing balance method, the principal gets reduced at the end of the year and the interest is calculated on the outstanding principal at the end of the year. Do I need to open an account with ING VYSYA BANK, DEHRADUN Bank for availing and/ or servicing the loan? We will encourage you to start a banking relationship with us so that we will be able to offer host of other value added services, which are complementary to the loan, however opening an account with us is not mandatory. What are the stages involved in availing a loan? The stages involved are: Application Processing Documentation Sanctioning of the loan Disbursement

Does ING VYSYA BANK, DEHRADUN Bank have a loan for the car I want? 10

ING VYSYA BANK, DEHRADUN Bank car loans are available for almost all passenger cars - new as well as used. If I am not able to furnish my income documents is there a special scheme for persons like me? Yes, ING VYSYA BANK, DEHRADUN Bank has tailor made schemes for persons like you. We offer: Credit Card Scheme : You can submit the last 4 billing statements of a premium credit card that you hold and you can be free of income documentation Repayment Scheme : If you have availed of a car loan/ home loan from a leading financier/ bank / finance company, all you need to do is provide us the repayment record. No Income Proof Scheme : If you are a self-employed individual who has been in business for at least 3 years and own a house or office, this special scheme is designed for you. No need to provide your income details under this scheme. Can I avail of a loan on my existing car? Yes, we do offer loans on existing cars, provided the cars are not hypothecated to any financier.

11

SPECIAL FEATURES OF ING VYSYA BANK, DEHRADUN COMERCIAL VEHICLE LOAN

Reaches you through more than 180 locations across the country. Range of products under one umbrella. Funding of various products like HCVs, MCVs, Laves, 3 wheelers , used vehicle funding , construction equipments & farming equipment. Range of services like funding of new vehicles , refinance on used vehicles , balance transfer on high cost loans , working capital loans & other banking products. Preferred financier status with most of the leading manufacturers. Simple documentation. Quick turn around time. Flexible financing solutions to meet the individual requirement Any individual / company with 3- 5 years business experience. Ownership of a vehicle is not mandatory. Funding is extended to both transporters & captive consumers.

ELIGIBILITY

12

LOAN AMOUNT Loan amount can vary from a few thousands to crores depending upon the specific requirement. Funding can be uptos the extent of 100 % of the chassis; body funding can be extended on special requirement & on the past experience.= Tie up with the leading manufacturers enables us to give the best deals to our customers. APPLICATION PROCESS Please click here if you wish to apply online for Commercial Vehicle Loans and we will send our representative to visit you. OR Please contact our representative near your residence / office and he will help you fill in the application form. There is no need for you to visit our office. All formalities will be completed at your doorstep itself. Once all the details are in our possession, the loan can be sanctioned within 4 hours. As a policy we do not disclose the reasons for rejection. The asset will be hypothecated to ING VYSYA BANK, DEHRADUN Ltd. Till the loan is repaid, ING VYSYA BANK, DEHRADUN retains the right to repossess the asset in case a customer does not repay the loan. However, you are still the owner of it and the invoice will be in your name. All the original papers will be kept in your possession and photocopies with ING VYSYA BANK, DEHRADUN Ltd. When the truck is invoiced before September 30th depreciation is 50%. From then onwards till March it is 25%. This is as per the recent budget and is subject to changes as per government policies.

SANCTIONING 13

Loans are sanctioned for all fast-moving assets at locations where the ING VYSYA BANK, DEHRADUN infrastructure is available be it direct or indirect or Direct Marketing Associates and authorized distributors. While we generally undertake hypothecation funding, we also do HP transactions. We also look into cases of taking over an old high-interest loan. Once all the details are in our possession, the loan can be sanctioned within 4 hours. When the truck is invoiced before September 30th, depreciation is 50%. From then onwards till March it is 25%. This is as per the recent budget and is subject to changes as per government policies.

RATE AND FEES Our rates are one of the most competitive in the market. The interest rates are fixed for the tenure of the contract and are calculated on a reducing basis. There is no processing or documentation fee. REPAYMENT In general repayment period is of 3 -4 years, however depending on the nature of the deal the tenure can vary from 6 - 60 months. In general the repayment is done via PDCs. Cheque bouncing charges would be as applicable. The PDCs must be issued from one account. The repayment schedule & the amortization schedule would be sent on disbursement of the loan. Foreclosure of the loan is allowed at a charge of 2 % on the principal outstanding. In the event of an accident, our local representative needs to be informed of the same.

COMMERCIAL VAHICLE LOANS -TOOLS THAT CAN BE USED 14

Presently, no tools are available for the Commercial Vehicle Loans section. However, if there are any queries that you may have, please contact your nearest dealer or send us a mail at info@ING VYSYA BANK, DEHRADUNbank.com

ELIGIBILITY FOR HOME LOAN Home loan You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. You must be employed or self-employed with a regular source of income

Land loan You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. You must be employed or self-employed with a regular source of income.

You must be purchasing a plot of land for residential use. The purchase has to be from a development authority or from a registered cooperative society. The purchase of the land must be for the construction of a house. The plot of land must be clearly demarcated with clear boundaries.

Office premise loan You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age. You must be self-employed with a regular source of income. The loan can be for the purchase / construction / extension of a non-residential property.

15

A loan for renovation or improvement will be given only at the time of acquisition of property. Professionally qualified and self-employed individuals (doctors, pathologists, chartered accountants, cost accountants, company secretaries, architects, engineers, consultants, lawyers, chemists) can apply.

A minimum of 3 years work experience is a must.

Home Equity Loans You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. Your must be employed or self-employed with a regular source of income. You must be the owner of a self-occupied property.

APPLICATION PROCESS

The moment you decide to buy a home, you can put in your application. Yes, you can apply for a loan even before you have selected the property. The property need not even be in the same city where you are residing. The only condition being that ING VYSYA BANK, DEHRADUN has home loan operations in both the cities.

Should there be a change in your financial status or plans, you can withdraw your sanction within 6 months of approval. However, we are always ready to assist our customers in the event of legitimate problems. And, we might reconsider this if we find that there are satisfactory reasons for the delay.

And, neither would we charge you extra for this delay. If it is refinancing you are interested in, it is possible within 6 months from the date of purchase of property. 16

REPAYMENT The interest rate is calculated on a monthly reducing basis. Loans against commercial property shall be offered only to doctors. No fees on part prepayment.

ING VYSYA BANK, DEHRADUN Home- Floating Reference Rate The ING VYSYA BANK, DEHRADUN Bank Floating Reference Rate is currently 9.25 % p.a. What is the repayment tenure? Home Equity Loans - Maximum loan tenure of 15 years. Office premise loan - Maximum loan tenure of 15 years. Home loan - Maximum loan tenure of 30 years. How is the loan repaid? All loan repayments are done via equated monthly installments (EMI). What is an EMI? An EMI refers to an equated monthly instilment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment. When does the repayment start? EMI payments start from the month following the month in which the full disbursement has been made. How is the EMI paid? The EMI is to be paid every month through post-dated cheques (PDCs) or direct deductions from your salary. If you are opting for PDCs, then you will have to provide 36 upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, no problem. We provide the flexibility of dating the cheques for the 7th of the month. What if a PDC bounces?

17

In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 - 7 working days What is pre-EMI interest? In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence. When do I pay PEMIs? The first PEMI is payable by cheque by the end of the month in which the disbursement is made and each subsequent PEMI at the end of every month till the commencement of EMI.

DISBURSMENT Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents. While you may be under the impression that the list of documents asked for is rather extensive, please note that it is for your own good. Each and every single document asked for will be verified and checked to ensure your safety. This may take some time but we want to ensure a clear title and will complete all the legal and technical verifications to ensure that you have full rights to your home. The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed. On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by ING VYSYA BANK, DEHRADUN. The disbursement will be in favor of the builder/seller. List of documents for disbursement Standard documents: Loan Agreements 18

 Disbursement Requests Post-dated cheques Personal guarantors documents, as the case may be Some documents are specific to each state. For further information, please contact the nearest office. Bottom of Form HOAM LOANS-TOOLS THAT CAN BE USED Adjustable Rate Home Loan EMI calculator : If you want to apply for an Adjustable Rate home loan, this tool will enable you to calculate your Equated Monthly Installment (EMI ) if you know the value of the property, the loan amount your require and the term for which you want to take the loan. You can check the EMIs for different loan tenures to decide which would be most suitable for you. The tool will compute EMI and also provide the interest rate that is applicable.

Fixed Rate Home Loan EMI calculator You can use this tool to calculate your EMI in case you wish to opt for a Fixed Rate home loan. The tool will allow you to see the EMI and interest rate for any given loan amount

FREQUENTLY ASKED QUESTIONS What are the minimum & maximum loan amounts? You can get a home loan ranging from of a minimum of Rs. 1 lakh to a maximum of Rs. 1 crore. The loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of the property or the cost of construction as applicable.

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Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history. How is the interest charged/calculated? ING VYSYA BANK, DEHRADUN Bank Home Loans has two schemes, (a) Fixed Rate Home Loans (b) Adjustable Rate Home Loans. If you opt for an Adjustable Rate Home Loan, the interest rate would vary with the ING VYSYA BANK, DEHRADUN Home Prime Lending Rate. Under the Fixed Rate Home Loans the rate applicable on the date of disbursement remains fixed during the entire duration of the loan. Do I have to pay any additional charges? You don't have to pay any processing fee - this offer is valid for a limited period only. However, Administration fee of 0.5% of the loan amount would have to be paid. How do I approach ING VYSYA BANK, DEHRADUN Bank for a Home Loan? You can approach us in any of the following ways Apply online Write to us at customer.care@ ingvysyabank.com Call us at our 24 hour Customer Care Centre You can just walk into any of our branches Contact any of our direct sales agents.

Who can be the co-applicants for the loan? You could include your spouse as a co-applicant for the loan and we shall include his/her income to enhance your loan amount. Further, in case there are any other co-owners they also need to be co-applicants. Is a personal guarantor a must? No, there is no personal guarantor required in most cases. What security/collateral do I have to provide?

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Typically the security for the loan is a first mortgage of the property to be financed, by way of deposit of title deeds and/or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances. If I do not meet all the criteria for the loan, can I still avail of a loan? Yes, it is possible for you to avail of a loan even if you do not meet all the criteria, at the discretion of ING VYSYA BANK, DEHRADUN Bank. Do I need to open an account with ING VYSYA BANK, DEHRADUN Bank for availing and/ or servicing the loan? We will encourage you to start a banking relationship with us so that we will be able to offer host of other value added services, which are complementary to the loan, however opening an account with us is not mandatory. What are the stages involved in taking a loan? There are two main stages 1. Sanction of the loan, whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities. 2. Disbursement of the loan amount What are the various types of loans that ING VYSYA BANK, DEHRADUN Bank Home Loans provides? Home Loans Land Loans Home Equity Loans Office Premises Loans

All of these are available on an adjustable rate or a fixed rate. What is a Monthly Reducing balance? An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan. What is an Annual Reducing balance? An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on annual rests, the principal reduces only at the end of the year. 21

Therefore, you continue to pay interest on a portion of the principal that you have already actually paid back to the lending company. When can I apply for a loan? You can apply for a home loan even before you have selected your property. The loan amount would be sanctioned or approved for you, based on your repayment capability Can ING VYSYA BANK, DEHRADUN Bank Home Loans assist me in selecting an accommodation of my choice? Yes, we have a special service - ING VYSYA BANK, DEHRADUN Bank Home Search. This service provides the customer assistance in identifying a property that fulfills your requirements from a vast database of properties, arranges for site visits to the properties short listed by you, and helps with legal documentation. This service comes to you completely free of cost for first sale properties. This facility is available in select cities. Can I get a loan for commercial property, like offices etc.? Yes, we give loans to self-employed professionals for commercial property.

When will the loan be disbursed? Your loan will be disbursed on: Your identification and selection of the property. Submission of the legal documents. Legal and technical clearance of the property Investment of your contribution towards the property

What is an amortization schedule? An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the breakup of every EMI towards repayment interest and outstanding principal of your loan. What are the tax benefits of taking a home loan? The tax benefits on a home loan, under the Income Tax Act, are two-fold: A) Principal repaid : Rebate under section 88 (2) of the Income tax Act is available to individuals on repayment of the principal portion as given below 22

Gross total income before deduction Rebate available Upto Rs.1,50,000 20% More than Rs.1,50,000 but not 15% exceeding Rs. 5 lakh More than Rs.5 lakh None

Moreover, the rebate is allowed up to the maximum limit of Rs.20,000 per financial year on the repayment of the principal sums, which need not be out of income chargeable to tax of the year in which such repayment is made. B) Interest repaid: Under section 24 of the Income Tax Act , in case of self-occupied property, deduction is allowed up to Rs.1,50,000 per annum for houses acquired or constructed with capital borrowed after March 31, 1999 as long as the acquisition or construction is completed within 3 years from the end of the year in which such loan is taken. Can I get IT certificates in the name of both the Applicant and co-Applicant separately? As per the IT rules only one certificate can be issued for a home loan and hence one certificate will be issued in the name of both applicant and co applicant. When is the IT certificate issued? The IT certificate will be issued at the end of a financial year. You can expect to receive your copy of the IT certificate in the month of April or May. How can I get the tax benefit during the year? You can request for a provisional IT certificate that can be issued any time during the course of the year.

SPECIAL FEATURES OF ING VYSYA BANK, DEHRADUN LOAN AGAINST SECURITIES

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Loans against Securities enable you to obtain loans against your securities. So you get instant liquidity without having to sell your securities. All you have to do is pledge your securities in favor of ING VYSYA BANK, DEHRADUN Bank We will then grant you an overdraft facility upto a value determined on the basis of the securities pledged by you. A current account will be opened and you can withdraw money as and when you require. Interest will be charged only on the amount withdrawn and for the time span utilized.

We offer loans against: RBI Relief Bonds Mutual Funds Units India Millennium Deposits (IMDs) ING VYSYA BANK, DEHRADUN Bank Bonds Life Insurance Policies (Single Premium)

ELIGIBILITY Shares Only resident individuals are permitted to apply . Hindu Undivided Families (HUFs), Limited Companies, Partnerships, Sole Proprietors & NRIs are excluded. Loans are granted only against the list of approved scrips as determined by ING VYSYA BANK, DEHRADUN Bank. The applicant should be in the age group of 18 to 75 years. The applicant should be a subscriber to telephone (landline) either at residence or office. RBI Bonds 24

Resident Individuals, Hindu Undivided Families (HUFs), Limited Companies and Partnerships are permitted to apply. Non Resident Indians (NRIs) are excluded. The applicant should be in the age group of 18 to 75 years. The applicant should be a subscriber to telephone (landline) either at residence or office.

Mutual Funds Only resident individuals are permitted to apply. HUFs, Limited Companies, Partnerships, Sole Proprietors and NRIs are excluded. The applicant should be in the age group of 18 to 75 years. The applicant should be a subscriber to telephone (landline) either at residence or office.

India Millennium Deposits (IMDs) Only non-resident Indian individuals can apply. In case a resident has to apply he should have a guarantee of bonds from the NRI for doing so. The applicant should be in the age group of 18 to 75 years. The applicant should be a subscriber to telephone (landline) either at residence or office. ING VYSYA BANK, DEHRADUN Bank Bonds Only resident individuals are permitted to apply. The applicant should be in the age group of 18 to 75 years. The applicant should be a subscriber to telephone (landline) either at residence or office. Life Insurance Policies (Single Premium) Only resident individuals are permitted to apply. The applicant should be in the age group of 18 to 75 years. 25

The applicant should be a subscriber to telephone (landline) either at residence or office.

For all the above The applicant should be in the age group of 18 to 75 years. The applicant should be a subscriber to telephone (landline) either at residence or office Loan Amount Shares You are given a drawing power up to 50% of the value of the shares.

Since the market price of the scrips keep fluctuating, the scrips are revalued weekly (every Friday), or more frequently if required, and the drawing power will be revised accordingly. If the new drawing power is less than the outstanding in the current account, the customer is required to put in the difference amount or pledge more shares to regularize the account. Alternately, if the drawing power rises, the limit available to the customer also automatically increases.

Bonds

Minimum loan amount is Rs 1 lakh. Maximum loan amount is Rs 20 lakh. The loan is applicable for a year and renewable at the end of each year.

The loan amount will depend upon the value of bonds and also the period left for maturity Loan amount will be between 70% and 95% of the value of bonds.

Mutual Funds 50% lending on the NAV. Minimum loan amount is Rs.1 lakh. Maximum loan amount is Rs. 20 lakh.

India Millennium Deposits (IMDs) 26

90% of the face value in rupees. Minimum loan amount is Rs.1 lakh.

ING VYSYA BANK, DEHRADUN Bank Bonds Minimum Loan amount is Rs.50000 Maximum loan amount is Rs. 20 lakh

Life Insurance Policies (Single Premium) Minimum Loan amount is Rs.50000 Maximum loan amount is Rs. 2 cr

SANCTIONING Your loan will be sanctioned on completion of all the documents. You shall be required to fill the loan agreement and complete the account opening formalities In any of the following cases no residence cum identity proof is required: You will be able to enjoy all the benefits of a current account such as a A personalized cheque book ATM card Phone banking facility Internet banking facility Account introduced by ING VYSYA BANK, DEHRADUN Bank Staff. Introduction by an existing bank customer.(Existing customer to have a satisfactorily conducted account for at least 6 months) Letter from existing banker obtained in standard format. Customer existing account holder of bank for more than 6 months.

RATES AND FEES Interest is charged only on the amount drawn and for the period that it is utilized. The interest is debited to your current a/c on the last day of every month. 27

The stamp duty varies in accordance with the stamp duty rates of the respective states. This will be debited at the time of opening the account.

HOW TO CONTACT ING VYSYA BANK, DEHRADUN You can email us at customer.care@ING VYSYA BANK, DEHRADUNbank.com Alternatively, You may call us at any of our Customer Care Centers.

FREQUENTLY ASKED QUESTION What are the loan tenure options? The initial tenure is for one year. At the end of one year, it will automatically be renewed for another one year unless we receive intimation in writing from you not to do so. What are the lending rates? How much shall I pay for this facility? ING VYSYA BANK, DEHRADUN Bank Loans Against Securities comes to you at attractive interest rates and are based on trends prevailing in the market at the time of the loan. You pay only when you use the money and for the number of days the money is used. The rates vary according to the product variant. How is the interest on my account calculated? In the Overdraft account, Interest will be charged only on the amount you draw and for the period that you draw. Thus interest will be charged on a daily basis, but will be debited to your account only once a month. Do I have to pay any additional fee? Yes, there is a nominal processing fee, which will be charged to you. How much time will it take for my loan to be approved? It takes four working days for the approval and the credit limit in your account to be set. Is a personal guarantor a must? 28

No, a personal guarantor is not a must. What security/collateral do I have to provide? No additional security/collateral needs to be provided, apart from the securities against which the loan is granted. How do I repay the loan? You can repay the loan by cash, cheque or demand draft. Can I prepay my loan? Yes, the loan can be prepaid; there are no prepayment charges. Do I need to open an account with ING VYSYA BANK, DEHRADUN Bank for availing and/or servicing the loan? Yes, you need to open an ING VYSYA BANK, DEHRADUN Bank Overdraft Current A/c in which the credit limit for you will be set. What are the stages involved in taking a loan? The various stages involved are as follows: Signing of the loan agreement Pledging the securities in our favor. Opening the Current account

Once the Current account is opened, you can avail of the credit limit. If I do not meet any of the criteria for the loan, can I still avail of a loan? Yes, you can still avail of a loan based on your profile, credit strengths etc. Please feel free to contact us and we can advise according to your case. Where will my account be opened? At the designated Branch specified by you, however you can operate out of any of our branches under the anywhere banking facility How do I get to know my Credit Limits?

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You can call our 24 hour Customer Care Centre to know the status of your account, what are the Securities pledged, what is the amount obtained against the different Securities, how much is the shortfall, etc. Am I required to have a Demat Account with ING VYSYA BANK, DEHRADUN? No, you can pledge your Securities irrespective with whom you have your Demat account. Do you entertain pledge forms via fax? Yes, on giving a Fax indemnity. You can fax us at 022-56661425. How do I pledge more Securities? How long does it take? You can submit your pledge forms with any of our branches across the city. The limits will be reset within 48 - 72 hours of receipt of the forms. How often are the shares revalued? The shares are revalued every Friday or whenever there is a significant change in the market.

What about my Dividend and Bonus? The Dividend and Bonus on your shares shall continue to accrue to you. I have shares that are in the approved list but they are in the Physical form, Can I get loan against them? Yes, but you would have to first convert them into the dematerialized form. All you have to do is to get your shares dematerialized through a depository account with ING VYSYA BANK, DEHRADUN Bank/ any other Bank. Will more shares be included in the approved lists? Yes, these lists are updated on a periodic basis. I am an NRI can I avail of Loans Against Securities? For NRI's we have a special product 'Loans against India Millennium Deposits (IMDs)'. These loans are given by way of an overdraft facility against the security of the Physical Deposit Receipts of IMDs. SPECIAL FEATURES OF ING VYSYA BANK, DEHRADUN PERSONAL LOAN

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Loans for salaried & self-employed individuals. Loans are available from Rs. 20,000 to Rs. 10 Lakhs. Repayment tenures from 12 - 60 months. No Security, Collateral or Guarantors required. Loans can be used for any purpose with no questions asked regarding the end use of the loan. A balance transfer facility available for those who want to retire any higher debt. All loan repayments are done via equated monthly installments (EMI). ELIGIBILITY Criteria Age Net Salary Eligibilty Years in current job / profession Years in current residence Salaried 25 yrs. - 58 yrs. Net annual income - Rs. 96,000 p.a Employees of Public Ltd. cos. , Private Ltd. cos. MNCs Or Government. 1 Year 1 Year Self - Employed 25 yrs. - 65 yrs. Net Profit after tax - Rs. 60,000 p.a Doctors, MBA's, Architects, CA's, Engineers, Traders & Manufacturers 3 Years 1 Year

DOCUMENTATION Self Employed Yes Yes Yes

Documents ( Pre Sanction)

Salaried

Latest 3 months Bank Statement (where salary/income is credited) Yes Latest 2 salary slips Yes Last 2 years ITR with computation of income / Certified Financials Proof of Turnover (Latest Sales / Service tax returns) Proof of Continuity current job (Form 16 / Company appointment Yes letter ) Proof of Continuity current profession (IT Returns / Certificate of business continuity issued by the bank) Proof of Identity (any one)Passport / Driving Licence / Voters ID / Yes PAN card / Photo Credit Card / Employee ID card Proof of Residence (any one) Ration Card / Utility bill / LIC Yes

Yes Yes Yes 31

Policy Receipt Proof of Office (any one) Lease deed / Utility bill / Municipal Tax receipt / title deed Proof of Qualification Highest Degree (for Professionals / Govt Yes employees

Yes Yes

CONCLUSION:
From the above given data, it becomes clear that the concept of retail banking is very vast and it is also clear that both the banks i.e; ING VYSYA BANK, DEHRADUN & PNB are best in their own spheres and hence, have no competition from others. The only thing which these banks can do to enhance their capability is to increase their area of coverage and try to explore new products for emerging new markets.

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CONCLUSION

&
RECOMMENDATION

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RECOMMENDATION:ING VYSYA BANK, DEHRADUN BANK: OBSERVATION Product offers Quota setting Planning style for budget Communication with D.S.A. CONCLUSION RECOMMENDATION

Does not provide education Should provide education loan loan No set type of quota Top down On line Use particular type of quota Apply feed bottom also back from

It can also be interpersonal contact for the knowledge in depth

PUNJAB NATIONAL BANK:

OBSERVATION Quota setting Territory allocation Sources of sales force recruit Services provided by D.S.A.

CONCLUSION Budget and activity quota Geographically Within the break NO D.S.A.

RECOMMENDATION Sales volume quota See market and product also Take outside also for new ideas and concept Should appoint D.S.A. to offer products for better market coverage

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BIBLIOGRAPHY

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BIBLIOGRAPHY
ING VYSYA BANK, DEHRADUN BANK (DEHRADUN, BRANCH OFFICE)

WEBSITES: www.ingvysyabank.com News papers Magazines: Business India, Business today etc.

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ANNEXTURE

ANNEXTURE:QUESTIONNAIRE:NAME---------------------------------------ADDRESS---------------------------------AGE---------------------PH. NO.---------------------MAIL ID---------------------------------------------37

(1) Which Bank are you banking with? a) ING VYSYA BANK, DEHRADUN b) PNB c) HDFC d) OTHERS (2) Are you satisfied with your Bank? a) Yes b) No c) Cant say (3) What is your occupation? a) Govt. employee b) Private sector employee c) Businessman d) Others (4) What kind of account do you have? a) Saving b) Current c) Fixed (5) Is external persons interference through bank to get recovery of loan is correct or not? (a) Yes (b) No (c) Cant say (6 )Have you taken loan from ING VYSYA BANK, DEHRADUN or OTHERS BANKS? (a) ING VYSYA BANK, DEHRADUN 38

(b) OTHERS BANKS (7)Do you think government banks have more formalities in comparison to private banks? (a) Yes (b) No

(8)Why you chose ING VYSYA BANK, DEHRADUN or OTHERS BANKS?

SERVICES TIMING FAST SERVICE FACILITY PERSONAL ATTENTION ATM

ING VYSYA BANK, DEHRADUN 60 75 60 54 35

OTHERS BANKS 40 25 40 46 65

(9) Which bank you prefer to loan ING VYSYA BANK, DEHRADUN or OTHERS BANKS?

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PRODUCT CAR LOAN COMMERCIAL LOAN HOME LOAN LOAN AGAINST SECURITY PERSONAL LOAN LOAN AGGAINST MORTAGE EDUCATION

ING VYSYA BANK, DEHRADUN 60 46 50 70 55 35 0

OTHERS BANKS 40 54 50 30 45 66 100

(10) Which bank will you prefer to further transaction in future? (a) ING VYSYA BANK, DEHRADUN (b) PNB

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