1. INTRODUCTION

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INTRODUCTION

Banking system of a nation is the shadow of nation’s economy. A healthy and profitable

banking system is just like the backbone of nation’s economy. It is necessary for a nation to

achieve growth and remain stable in this global world and global economy. The Indian banking

system, with one of the largest banking networks in the world, has witnessed a series of

reforms over the past few years like the deregulation of interest rates, dilution of the

government stake in public sector banks (PSBs) and the increased participation of private sector

banks.

1.1 History of INDIAN BANKING SYSTEM

Banking in India originated in the last decades of the 18th century. The first banks were The

General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now

defunct The oldest bank in existence in India is the State Bank of India, a government-owned

bank that traces its origins back to June 1806 and that is the largest commercial bank in the

country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint

Stock bank in India.

Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took

over these responsibilities from the then Imperial Bank of India, relegating it to commercial

banking functions. After India's independence in 1947, the Reserve Bank was nationalized and

given broader powers. In 1969 the government nationalized the 14 largest commercial banks;

the government nationalized the six next largest in 1980.

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

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The Banking Regulation Act also provided that no new bank or branch of an

existing bank could be opened without a license from the RBI, and no two banks

could have common directors

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1.2 Liberalization in INDIAN BANKING SYSTEM

In the early 1990s, the then government embarked on a policy of liberalization, licensing a small

number of private banks. These came to be known as New Generation tech-savvy banks, and

included Global Trust Bank (the first of such new generation banks to be set up), which later

amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and

HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the

banking sector in India, which has seen rapid growth with strong contribution from all the three

sectors of banks, namely, government banks, private banks and foreign banks

The next stage for the Indian banking has been setup with the proposed relaxation in the norms

for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights

which could exceed the present cap of 10%, at present it has gone up to 49% with some

restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used

to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4%) of functioning. The new wave

ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this

led to the retail boom in India. People not just demanded more from their banks but also

received more.

Currently (2009), banking in India is generally fairly mature in terms of supply, product range

and reach-even though reach in rural India still remains a challenge for the private sector and

foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to

have clean, strong and transparent balance sheets relative to other banks in comparable

economies in its region. The Reserve Bank of India is an autonomous body, with minimal

pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage

volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in

its services sector-the demand for banking services, especially retail banking, mortgages and

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investment services are expected to be strong. One may also expect M&As, takeovers, and

asset sales.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with

the Government of India holding a stake), 31 private banks (these do not have government

stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They

have a combined network of over 53,000 branches and 17,000 ATMs. The public sector banks

hold over 75 percent of total assets of the banking industry, with the private and foreign banks

holding 18.2% and 6.5% respectively.

1.3 The Origin of ING Group

ING group originated in 1990 from the merger between “Nationale Nederlanden” the largest

Dutch Insurance Company and “NMB Post Bank” Group. Combining roots and ambitions, the

newly formed company called Internationale Nederlanden Group. Market circles soon

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

ING Group. ING is a global financial services company providing banking, investments, life

insurance and retirement services and operates in more than 50 countries.

PROFILE

ING is a global financial institution of Dutch origin offering banking, investments, life insurance

and retirement services. ING serve more than 85 million private, corporate and institutional

customers in Europe, North and Latin America, Asia and Australia. They draw on their

experience and expertise, their commitment to excellent service and their global scale to meet

the needs of a broad customer base, comprising individuals, families, small businesses, large

corporations, institutions and governments

STRATEGY

ING’s overall mission is to help customers manage their financial future. Capitalizing on

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changing customer preferences and building on our solid business capabilities, ING’s strategic

focus is on banking, investments, life insurance and retirement services. They provide retail

customers with the products they need during their lives to grow savings, manage investments

and prepare for retirement with confidence. With wide range of products, innovative

distribution models and strong footprints in both mature and developing markets, ING has the

long-run economic, technological and demographic trends on their side. ING aligns its business

strategy around a universal customer ideal: saving and investing for the future should be easier.

While steering the business through turbulent times, ING will execute efforts across all its

business lines to strengthen customer confidence and meet their needs, preserve a strong

capital position, further mitigate risks and bring its costs in line with revenue expectations.

COPERATE RESPOSIBILITY

ING wants to pursue profit on the basis of sound business ethics and respect for its

stakeholders. Corporate responsibility is therefore a fundamental part of ING’s strategy: ethical,

social and environmental factors play an integral role in business decisions.

1.4 FINANCIAL RESULTS

FY 2008 FY2007 FY2006 FY2005 FY2004

Income (in EUR milion)

Insurance operations 54,851 62,208 59,642 57,403 55,614

Banking operations 11,731 14,602 14,195 13,848 12,678

Total Income1 66,291 76,587 73,621 71,120 68,171

Operating Expenses

Insurance operations 5,422 5,515 5,275 5,195 4,746

Banking operations 10,303 9,967 9,087 8,844 8,795

Total operating expenses 15,725 15,481 14,362 14,039 13,541

Addition to loan loss provision Banking operations

1,280 125 103 88 465

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Insurance result before tax -1,635 6,533 4,935 3,978 4,322

Banking result before tax 148 4,510 5,005 4,916 3,418

Total result before tax -1,487 11,043 9,940 8,894 7,740

Taxation -721 1,534 1,907 1,379 1,709

Minority interests -38 267 341 305 276

Net result -729 9,241 7,692 7,210 5,755

Figures per ordinary share (EUR)

Net result -0.36 4.32 3.57 3.32 2.71

Earnings 2) -0.56 4.32 3.57 3.32 2.71

Dividend 0.74 1.48 1.32 1.18 1.07

Shareholders’ equity 8.55 17.73 17.78 16.96 12.95

Balance Sheet (in EUR billion)

Total assets 1,332 1.312 1,226 1,159 964

Total equity 29 40 41 38 28

Shareholders’ equity 17 37 38 37 28

Capital Ratios (%)

ING Group debt/equity ratio 13.8% 9.5% 9.0% 9.4% 10.2%

Insurance capital coverage ratio 256% 244% 274% 255% 204%

Insurance debt/equity ratio 8.5% 13.6% 14.2% 13.4% 14.3%

Bank Tier-1 ratio 9.32% 7.39% 7.63% 7.32% 6.92%

Market capitalisation (in EUR billion) 15 60 74 65 49

Shares (in millions):

Outstanding 2,063 2,226 2,205 2,205 2,205

Preference shares outstanding - 16 63 87 87

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Key Performance Indicators

- Net return on equity (ROE) -2.1% 24.2% 23.5% 26.6% 25.4%

- Net result growth -108% 20% 7% 25% n.a.

Insurance

- Value of new life business 1,023 1,113 807 805 632

- Internal rate of return 13.9% 14.3% 13.3% 13.2% 12.1%

- Combined ratio (non-life) 97% 97% 91% 95% 94%

Banking

- Cost/income ratio 87.8% 68.3% 64.0% 63.9% 69.4%

- RAROC after tax 1.2% 19.9% 19.7% 22.6% 14.5%

Assets under management (in EUR billion)

551 643 600 547 492

Staff (FTEs end of period) 124,661 124,634 119,801 116,614 112,195

1.5 The ING Vysya BANK Ltd.

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 form a bank that would extend a helping hand to those who

weren't privileged enough to enjoy banking services.

ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of

ING Investment Management is situated at Mumbai. The synergies arising out of the three

distinct but complimentary businesses are bound to be an asset to the group in the changing

market dynamics of the future. The first such signs are already visible on the horizon with

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combined products being successfully launched by the different entities of the group in

conjunction with each other

It's been a long journey since then and the Bank has grown in size and stature to encompass

every area of present-day banking activity and has carved a distinct identity of being India's

Premier Private Sector Bank.

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

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

1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the

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

stupendous. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during

2005.

The long journey of seventy-five years has had several milestones

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The ING Vysya Bank DEHRADUN

ING Vysya Bank Dehradun branch was established somewhere in September 2008 and it stands

at third position in the region for its performance. It is the newest Private Sector Bank in the

city and yet has achieved a remarkable growth rate in past 7 months. It has got its Journal

Ledger of the size of Rs.120,000,000 (12 crore rupees) and has got customer base of 1800 well

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1930 Set up in Bangalore1948 Scheduled Bank1985 Largest Private Sector Bank1987 The Vysya Bank Leasing Ltd. Commenced1988 Pioneered the concept of Co branding of Credit Cards1990 Promoted Vysya Bank Housing Finance Ltd.1992 Deposits cross Rs.1000 crores1993 Number of Branches crossed 300

1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion

1998Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998)

2000 State -of - the -art Date Centre at ITPL, Bangalore.RBI clears setting up of ING Vysya Life Insurance Company

2001 ING-Vysya commenced life insurance business.

2002

The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.

2002 ING takes over the Management of the Bank from October 7th , 2002 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

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

2004 Introduced Protected Home Loans - a housing loan product2005 Introduced Solo - My Own Account for youth and Customer Service Line – Phone Banking Service

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

satisfied happy customers. Every month around 30 to 40 saving accounts are opened which

shows the consistency of the Bank and currently bank holds around 1500 saving bank accounts.

2. OBJECTIVE OF THE STUDY

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2.1 PRIMARY OBJECTIVE:

To thoroughly study the products & services of ING Vysya Bank.

To compare the banking products and services offered by ING Vysya Bank and other private banks (ICICI & HDFC)

To study the customer’s expectations, behavior, responses & preferences for various saving accounts of ING Vysya Bank.

To study the marketing strategies adopted by ING Vysya Bank to maintain & increase its market share & to retain its customers.

2.2 SECONDARY OBJECTIVE:

To study banking operations. To get the knowledge about marketing strategies of bank.

2.3 DURATION OF THE STUDY

Duration of the study is 14 weeks.

2.4 LIMITATIONS

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Research is only done in Dehradun city Research is self-financed so money is a major constraint Respondents are biased toward their current bank. Time is 14 weeks, so much of economic fluctuations are not seen

2.5 SCOPE OF STUDY

The scope of any study can be defined in terms of the area and the sample size which will be

reviewed for satisfying the objective of the subject matter. The first part of the report can be

made on the basis of the secondary data collected about the different saving bank accounts of

private sector banks present in Dehradun via internet, magazines and journals.

The scope of the study is in Dehradun, and around 100 people are targeted for the survey

which is done through questionnaire.

As the scope of study is limited to Dehradun and to 100 people only, thus picture presented in

the testimony may not be the complete picture.

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3. LITRATURE REVIEW

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LITRATURE REVIEW

3.1 Types of saving accounts offered by ING Vysya Bank

A) ORANGE SAVINGS ACCOUNT:

This account is the basic product of ING Vysya Bank. In this account minimum cash balance

required to open an account & the Quarterly Average Balance requirement is Rs5000. Some of

the major features and benefits of this account are:

FREE

Free issue of International Debit Card.

Unlimited ATM transactions at over 25,000 (Cirrus/Cashnet) ATM’s in India, where QAB

is maintained.

Shopping convenience at over 2 Lakh merchant locations, with the ING Vysya

International Debit card.

Unlimited ATM transactions at over 196 ING Vysya ATM’s.

2 Demand Drafts with a value not exceeding Rs.50,000 per annum, where QAB is

maintained.

Unlimited usage of payable at par (PAP) Cheques.

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Transfer of funds across all branches.

National Electronic Funds Transfer (NEFT) through the internet banking channel.

Electronic Bill Payment service.

Smartserv - Personal Assistance Service.

Statement of Account through E-mail.

Mi-b@nk - Internet banking facility.

RTGS (Real Time Gross Settlement) transactions at all branches.

AAA Cash deposit (Customers) – Free up to 2 transactions per month and a value limit

of Rs. 50,000/-

BENEFITS

Free unlimited access to 25,000 + other bank ATM’s- enhanced accessibility.

Free multi branch, Multi-city banking convenience.

Payable at par Cheques.

Smartserv- Personal Concierge Services.

B) ING FORMULA SAVINGS ACCOUNT:

This is the product of ING Vysya Bank which is targeted towards the upper middle class

segment of the society. Basically the targeted segment is the age group between 18-40 yrs. This

product has its significance particularly in Metropolitan/A grade cities. This product is also

useful for people who travel frequently particularly to Metropolitan/A grade cities.

Minimum cash balance required to open this account and Quarterly Average Balance

requirement is Rs. 25000/-

Some of the major features and benefits of this account are :

Maximum withdrawal limit from ING’s ATM or any other bank’s ATM is Rs. 50,000.

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Maximum shopping limit through ING’s ATM/Debit card is Rs. 75,000.

Free Payable at Par cheques.

Exclusive F1 themed, Internet Banking services.

Formula 1 International Debit card.

Free sms alerts on transactions above Rs. 1500.

SPECIAL BENEFITS CARD

FUEL GAUGE

Fill fuel across any petrol pump in India and get the 2.5% surcharge waived.

SPEED LAP

Shop using your ING Formula savings account and get Formula One merchandise.

RACE DAY

Whenever there is a Formula 1 race anywhere in the world, there is a race for u as

well. Shop using your ING Formula debit card on the day of the race and top 25

spenders for the race day wins vouchers from ING.

3 winners – Gift vouchers worth Rs. 5000/-

10 runner ups- Gift vouchers worth Rs. 2000/-

12 second runner ups- Gift vouchers worth Rs. 1000/-

C) PLATINA ACCOUNTS

This product (account) of ING Vysya Bank is a special product for special class of customers. This

can also be termed as Preferred Platina Banking. This product is designed to reduce the efforts

put in handling banking and financial needs. This product has special features which are mainly

meant for business class people who have to make large payments and have regular

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transactions. The Platina account holder becomes the preferred customer of the bank.

The average quarterly balance (QAB) is Rs. 100,000

Features:

Dedicated Relationship Manager

Our dedicated relationship managers can help you manage your money; while you pursue

your passion, be it business or pleasure.

Wealth Management Service

Our preferred banking services offer you customized financial strategies on how to invest

and where to invest based on simple financial risk profiling.

ING Platina Debit Card

Use your ING Platina Gold Debit Card and withdraw cash up to Rs1 lac per day from any

ATM, Avail a 1% cash back on shopping with your Debit Card.

Account Representative Services

Now when you are out building a business empire or taking that well deserved vacation,

just nominate someone else to do your routine banking enquires.

Preferential rates on ING products

Get more out of the Platina relationship. Avail preferential rates on Demat, Bank

Lockers, Personal and Home loans.

3.2 Types of saving accounts offered by other private banks

ICICI BANK

A) ICICI Savings Bank Account:

ICICI Bank is also offering the saving accounts as their products.

The ICICI Bank International debit card is a debit-cum-ATM card provides with the

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convenience of acceptance at merchant establishments and cash withdrawals at ATM.

Money Multiplier Facility

Internet Banking is offered free of cost.

Anywhere Banking facility entitles the account holder to withdraw or deposit cash upto

a limit of Rs.50,000 across all ICICI Bank branches.

An average quarterly balance of Rs.10,000 only in metro and urban locations.

Nomination facility is available.

Interest is payable half-yearly.

Third party withdrawal limit is only Rs 15,000 and free demand draft making facility for a

month is only up to Rs 10,000. Free withdrawal limit from ATM card is only up to Rs 25,000 in

all accounts.

B) GOLD PRIVILAGE ACCOUNTS

The Gold Privilege Account brings the customer exclusive benefits, especially created for

valuable customers. The minimum quarterly average balance (QAB) requirement for Gold

Privilege account is Rs.50,000. Non-maintenance of the required QAB in any quarter attracts a

charge as per the following guidelines:

If QAB is between Rs.50,000 and Rs.25,000, charge of Rs.250 will be levied

If QAB is between Rs.25,000 and Rs.10,000, charge of Rs.500 will be levied

If QAB falls below Rs.10,000, charge of Rs.750 will be levied

Your Gold Privilege account entitles you to select privileges and offers:

BENIFITS

Jump Queue facility in ICICI Bank branches.

Free usage of payable-at-par chequebook.

International VISA Gold debit card with higher daily withdrawal and spend limit.

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Waiver of annual fee for Debit card.

Free and Unlimited access (cash withdrawals and balance enquiry) to any Bank's ATM in

the country using ICICI Bank International Gold Debit card.

Waiver of DD/PO charges for up to Rs.100,000 per day.

Waiver of Anywhere Banking charges across all ICICI Bank branches.

Priority Processing through ICICI Bank Phone Banking.

Preferential rates for Gold Coins.

Better rates for Foreign Exchange Service.

Discounts on Safe deposit locker facility.

Special asset deals from time to time.

C) TITANIUM PRIVILAGED ACCOUNT

This product from ICICI is mainly to serve privileged customer (upper class)

In constant endeavor to fulfill all the banking needs and enhance exclusivity ICICI Bank launched

Titanium Privilege Account - tailored to take care of customer’s banking and investment

requirements and status. This account offers a dedicated Branch Relationship Manager

supported with a Phone Banking Relationship Manager.

Customer can realize the benefits of a Titanium Privilege Account on the basis of his total

relationship value (TRV) with the bank. Customer need to maintain a TRV of between Rs. 5 lac

and Rs. 10 lac and a quarterly average balance (QAB) of Rs.75,000. In addition to this, there is

waiver of QAB charges, subject to FD of min. 3.75 Lac.

BENIFITS

Branch Relationship Manager supported with Phone Banking Relationship Manager.

Priority processing at all ICICI bank branches and through customer care.

A higher daily withdrawal and spend limit on a Titanium debit card.

Free International Titanium Debit Card.

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Unlimited free access to any bank’s ATM throughout the country.

Free usage of multi-city cheque book.

Free physical monthly account statement.

Anywhere banking.

Complete waiver on DD/PO charges.

Preferential rate on purchase of ICICI Bank Pure Gold.

Preferential rates on purchase of foreign exchange with a complete waiver on

commission charges.

Discounted rates on safety locker charges.

HDFC BANK

A) REGULAR SAVING ACCOUNT

An easy-to-operate savings account that allows customer to issue cheques, draw Demand

Drafts and withdraw cash. Customer can check balances from the comfort of his home or office

through NetBanking, PhoneBanking and MobileBanking.

Withdrawal of cash from any of the 3275 ATM centers spread across the country.

FEATURES & BENEFITS

Facilities like NetBanking and MobileBanking.

Customer can check the account balance, pay utility bills or stop cheque payment,

through SMS.

Personalized cheques with customer’s name printed on each cheque leaf for enhanced

security.

Advantage of BillPay, an instant solution to all frequent utility bill payments. Instructions

for payment over the phone or through the Internet.

Customers can avail the facilities like Safe Deposit Locker, Sweep-In and Super Saver

facility on their account.

Free cash withdrawals on any other Bank's ATM

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Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/-

per month.

Free InstaAlerts for all account holders for lifetime of the account.

Free Passbook facility available at home branch for account holders (individuals).

Free Email Statement facility.

B) SAVING MAX ACCOUNT

Welcome to a world of convenience. HDFC has presented SavingsMax account, loaded with

maximum benefits to make banking experience a pleasure. By maintaining an average quarterly

balance of just Rs. 25,000/- customer can get a host of premium services from HDFC Bank.

FEATURES & BENIFITS

Free unlimited transactions: Cash withdrawal and balance enquiry, at all HDFC Bank

ATMs & on any other Bank's ATM using your HDFC Bank Debit Card.

Free Gold Debit Card for primary account holder for lifetime of the account. Gold Debit

Card for other account holders at Rs 250/- p.a.

Free Woman's Advantage/International Debit Card for all account holders for lifetime of

the account.

Free Payable-at-Par (PAP) chequebook, without any usage charges upto a limit of 1 lac

per month.*

Free Demand Drafts on HDFC Bank locations, upto a limit of 50,000/- per day at home

branch.

Self/Third Party Cash Deposit/Withdrawal at non-home branches, upto Rs 50,000/- per

day free. Above Rs 50,000 a charge of Rs 2.90 per thousand on the full amount would

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be applicable.

Optional sweep out facility to transfer extra savings to a Fixed Deposit, at the threshold

of Rs.50,000/-.In the event of the balance in SavingsMax account exceeding Rs

50,000/-, the amount in excess of Rs 50,000/- will be swept out in to a Fixed Deposit

with a minimum value of Rs 25000/- for a 1year 1day period.

Free BillPay & InstaAlerts for all account holders for lifetime of the account.

Free Monthly Statement of Account.

50% off on the Locker rental for the 1st year only.

Folio maintenance charges on Demat account free for first year.

Free National Electronic Funds Transfer facility, NetBanking, MobileBanking.

Free Passbook facility available at home branch for account holders (individuals).

Free Email Statement facility

C) PREFERRED BANKING ACCOUNTS

This account has been offered by HDFC for its preferred customers, so as to give special

benefits to them. The minimum quarterly available balance (QAB) that has to be maintained in

this account is Rs. 2,00,000

FEATURES & BENIFITS

Dedicated Relationship Manager

Customized Investment Solutions

Investment Options

e-Broking

Expedited Tax Payments

Relationship Pricing

Business Solutions

On-demand exclusive privileges

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Annual Service Charge Waiver

3.3 CLASSIFICATION/ CATEGORIZATION

So, for convenience of the project and comparison the different accounts can be classified into three categories:

Category A Category B Category C

1. PLATINA ACCOUNT FORMULA SAVING ORANGE SAVING (ING) ACCOUNT (ING) ACCOUNT (ING)

2. TITANIUM PRIVILAGED GOLD PRIVILAGED SAVING ACCOUNTACCOUNT (ICICI) ACCOUNT (ICICI) (ICICI)

3. PREFERRED BANKING SAVING MAX REGULAR SAVINGACCOUNT/PLATINUM ACCOUNT (HDFC) ACCOUNT (HDFC) (HDFC)

Service quality

ING Vysya Bank provides the top notch quality to its customers. They have so many special

features that no other banks provide till date, like:

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1. Special cabin/room for its customers to wait and relax when there is a rush or when

customer is asked to wait for some time.

2. Fastest RTGS and NEFT services, which takes place within minutes.

3. A well behaving staff and special highly sensitive customer care department. This is

head by a well efficient customer care manager.

4. Account verification with in promised 5 days.

5. Working hours from 10 a.m. to 6 p.m. (7 in p.m. if any customer is in need)

6. Doing things in the right way at right time.

7. It is the only Bank which provides the facility of withdrawal of 1 lakh rupees from any

ATM at one go.

3.4 FINANCIAL FIGURES W

In Rs. Crores Q3 Q3 % YTD YTD % 2008-09 2007-08 growth 2008 2007 growth

Net Interest Income 172.7 144.9 19.2% 487 357 36.1%

Other Income 149 95.7 55.9% 400 279 43.3%

Total Income 321.8 240.6 33.8% 887.8 637.5 39.3%

Operating Costs 215.3 158.9 35.5% 585.0 438 33.6%

Operating Profit 106.5 81.7 30.4% 302.8 199.5 51.8%

Operating Profit

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after Exceptional 106.5 100 6.4% 302.8 219.8 37.7% Items

Provision & 21.6 27.7 -22.1% 84.7 33.9 150.1%

Contingencies

Profit before Tax 84.9 72.4 17.3% 218.1 186 17.3%

Provision for Taxes 32.8 29.6 11% 78.4 71.9 9.1%

Profit after Tax 52.1 42.8 21.8% 139.7 114 22.5%

3.5 Growth at ING Vysya Bank.

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

the following table:

Rs. in millions

Year Networth Deposits Advances Profits Outlets

1940 0.001 0.400 0.400 0.001 4

1950 1.40 5.30 3.80 0.09 16

1960 1.60 20.10 13.50 0.13 19

1970 3.00 91.50 62.80 0.74 39

1980 11.50 1414.30 813.70 1.13 228

1990 162.10 8509.40 4584.80 50.35 319

2000 5900.00 74240.00 39380.00 443.10 481

2001 6527.00 81411.10 43163.10 371.90 484

2002 6863.24 80680.00 44180.00 687.50 483

2003 7067.90 91870.00 56120.00 863.50 456

2004 7473.20 104780.00 69367.30 590.01 523

2005 7094.00 125693.10 90805.90 (381.80) 536

2006 10196.70 133352.50 102315.20 90.6 562

2007 11101.90 154185.70 119761.70 889.0 626

2008 14260.00 204980.00 146500.00 1569.00 677

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Even in the recessionary period the ING Vysya Bank is going in profits. While other banks are losing a big percentage of their expected profits.

ING Vysya Bank Q3 Profit up 22%

Continued Profit Growth sustained by Strong Fee Income Performance

The Board of Directors of ING Vysya Bank Ltd. approved the unaudited financial results of the Bank for the quarter and period ended 31 December 2008 at its meeting in Bangalore at 23rd January 2009.

3.6 FINANCIAL HIGHLIGHTS

Q3 Performance

Net Profit after Tax (PAT) for the quarter ended 31 December 2008 increased by 22% to Rs.52.1

Crores from Rs.42.8 crores for the quarter ended 31 December 2007 and Profit before Tax

(PBT) rose 17% to Rs.84.9 crores from Rs.72.4 crores.

However, excluding the impact of exceptional items reported in the quarter ended 31

December 2007, PAT grew by 70% and PBT by 57% over the same quarter last year.

Net Interest Income (NII) was up 19% to Rs.172.7 crores from Rs.144.9 crores and Fee & Other

Income increased by 56% to Rs.149.1 crores from Rs.95.7 crores in the prior year.

Nine months ended December’08

The PAT for the period ended 31 December 2008 increased 23% to Rs.139.7 crores from

Rs.114.1 crores for the period ended 31 December 2007 and PBT grew 17% to Rs.218.1 crores

from Rs.186.0 crores.

However, excluding exceptional items reported in the previous year, PAT increased by 40% and

PBT by 32% over the corresponding period last year. NII grew 36% to Rs. 487.2 crores from Rs.

357.9 crores and Fee & Other Income was up 43% to Rs. 400.6 crores from Rs. 279.6 crores in

the previous year.

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3.7 Business Highlights

Total Deposits grew 25% to Rs. 22,401 crores as at end December 2008 from Rs.17,871 crores

the year before. Current and Savings (CASA) deposits rose 8% to Rs.5,819 crores as at end

December 2008 from Rs. 5,406 crores as at end December 2007.

Advances grew 19% to Rs.16,014 crores in December 2008 from Rs. 13,409 crores in December

2007. Total Assets of the bank registered a 30% growth to Rs.29,050 crores. The Credit Deposit

Ratio was at 71.5% in December 2008 against 75.0% in December 2007.

The Gross NPA ratio and Net NPA ratio were at 1.84% and 1.09% respectively as at 31

December 2008 compared to 1.81% and 0.71% respectively as at 31 December 2007. The net

worth of the Bank as at 31 December 2008 stood at Rs.1,568 crores compared to Rs. 1,459

crores as at end December 2007 and the Capital Adequacy Ratio stood at 10.72% in December

2008. In October 2008, the bank increased its capital through the issue of Tier 1 Perpetual debt

amounting to approx. Rs.95 crores. Subsequent to the quarter end, the Bank raised an

additional Rs.200 crores of Upper Tier 2 capital which has been subscribed entirely by ING

Group.

3.8 ING Vysya FOUNDATION (ING – CSR)

World over ING has strengthened its name as a good corporate citizen. The ING Chances for

Children initiative (CFC) a global program in partnership with UNICEF is to educate 50,000

underprivileged children in three countries, Ethiopia, India and Brazil by 2008. In India the focus

is primarily in the districts of Dharampuri and Krishnagiri in Tamil Nadu. Through the national

Child labor Elimination (NCLP) bridge schools, ING provides much needed support to UNICEF, to

fund, monitor, and provide children with quality primary education

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The Indian arm of the Chances for Children programs is run by the support of ING business units

in India (ING, ING Life Insurance and ING Investment Management) through the ING Vysya

Foundation.

The Foundation was set up almost 3 year ago and was actively involved in the post Tsunami

rehabilitation of the victims. ING Group set up a dedicated Tsunami Support account. In India,

the Foundation partnered with five NGO providing much needed financial support, from

rebuilding of schools to providing fishing boats, giving much needed hope to destroyed lives.

The Indian chapter of CFC involves the partnership of the Foundation with 7 NGO working in

primary education. Not only does the Foundation provide much needed financial support to

these organizations but also runs strong voluntary programs giving the employees a chance to

meet the children, work with them and take ownership and responsibility for the vision of its

partners. The Foundation creates systems that ensure CSR activities within the organization.

Various programs are initiated with the employees, whether it is taking 100 children for a day

out to the planetarium or watching a film with them. It collectively influences the culture of the

organization; and also provides the employees with an opportunity to contribute to the vision

of the organizations CSR.

Recently ING Vysya Foundation launched its initiative “Run Ricky Run”. In this initiative, for

every run Ricky makes the Foundation will sponsor one child to go to school through its

association with its NGO partner in Bangalore, SUKRUPA.

Addressing health care, poverty or human rights issues, there is no better way than through the

corridors of education. The main focus of the Foundation in India is to support not for profit

organizations working in the area of education.

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4. DATA INTERPRETATION AND ANALYSIS

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4.1 Comparative analysis of saving accounts:

a. Basic Saving Accounts (Category C)

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PARTICULARS HDFC ICICI ING Vysya

ACCOUNT NAME Saving Regular

Account

Savings

Account

Orange Savings

Account

AVERAGE QUATERLY

BALANCE Rs10,000 Rs 10,000 Rs. 5,000

AQB MAINTAINANCE

CHARGES

Rs 750.00 per

quarter Only.

Rs 750.00

per quarter

Only.

Rs 750.00 per

quarter Only.

SWEEP OUT FACILITY Available N.A Available

FREE TRANSACTIONS

3 per month

from

SBI/Andhra

Bank ATM

N.A Unlimited from

any bank’s ATM

THIRD PARTY CASH

WITHDRAWL/DEPOSIT

N.A Rs.15,000

per day

Rs.25,000 per day

NET BANKING Free Free Free

MOBILE BANKING Free Free Free

b. Preferred Saving Accounts (Category B)

PARTICULARS HDFC ICICI ING Vysya

Account name SAVING MAX ACCOUNT

GOLD PRIVILAGED ACCOUNT

FORMULA SAVING ACCOUNT

AQB (Average Quarterly Balance)

25,000 50,000 25,000

Free DD Upto 50,000/qat

N.A. Upto 50,000/qat.

Third Party Cash Deposit

Upto 15,000 N.A. Upto 25,000

Smart-serv N.A. N.A. Present

Free Transaction 6 in a year N.A. Unlimited

Special FeaturesDirectBill Payments from accounts

Preference rates on gold coins

12 annual passes of famous night clubs and restaurants, across India

Jump Que Facility Present N.A. Present

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c. Privileged Saving Accounts (Category A)

PARTICULARS HDFC ICICI ING Vysya

Account Name Privileged Platinum

Titanium Platina

QAB (Quarterly Available Balance)

2,00,000 75,000 + TRV of 5 to 10 lac

1,00,000

DD/PO Wavier Available upto 50,000

N.A. Available upto 50,000

PAP books Unlimited unlimited unlimited

One Lakh Cash withdrawal from any ATM

N.A. N.A. Available*

Cash Back Offer on Shoping*

N.A. N.A. 1 to 2 %

Cashnet enabled credit/debit card

N.A. N.A. Available

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4.2 FACTS AND PEOPLES’ PERCEPTION

A) SAVING ACCOUNTS OF RESPONDENTS IN THE BANK

As per the data collected and analyzed, most of the people in Dehradun have chosen ICICI Bank for their banking. It is because ICICI was the first private banking player in the newly formed state (U.K.) they hold the accounts of 51% of the respondents. Next rank comes to HDFC with 31% of accounts. ING has captured 18% (speculative) of the market share within 6 months of its establishment in the State.

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B) KNOWLEDGE OF THE ACCOUNT AND SERVICES ASSOCIATED.

C) QUARTERLY AVAILABLE BALANCE THAT HAS TO BE MAINTAINED

It is the amount which one has to maintain for a single quarter. 45% of the respondent were maintaining 5,000 rupees. 35% were maintaining nothing, 12% were holding 10,000 as their QAB. And 8% were holding more than 10,000 rupees.

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Out of 45% of the respondents who maintain 5,000 rupees as their QAB, most of the respondents are having account in ICICI and ING Vysya bank.

D) BANK PROVIDING SPECIAL FACILITY LIKE smart-serve

Smart serv is type of special services in which a person can send/present gifts to any of his/her known in any of the city by just telling your banker the address of the person. The gift will be purchased and will be delivered by the bank only, and the amount for the gift will be automatically deducted from the sender’s account.

10% of the people who were really enjoying some of the special services provided by bank were found to be associated with ING Vysya Bank.

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E) PEOPLES’ RATING: ACCORDING TO THEIR PERCEPTION

51% of the people have rated ICICI Bank as 1st, this is because of wide market share of ICICI Bank. 2nd Rank has been awarded to HDFC Bank by approximately 23% of respondents. 3rd rating is given to ING Vysya bank by approx. 15% of the respondents. And last comes AXIS Bank. Thus ING Vysya is better than AXIS and HDFC Bank in its Marketing Strategy.

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F) PEOPLE’S MOST FREQUENT POINTS OF INTERACTION WITH BANK

All of the bank customers interact most frequently with the bank by doing their transactions from ATM. 35% of them visit branch quite often and 35% of the respondents also go for phone banking. Internet Banking is the 2nd most point of interaction of bank and the customer. People who use Internet banking and mobile banking were found to be associated mainly with ICICI and ING Vysya Bank. ING Vysya is having best Internet banking attributes. This implies the technological advancement in Dehradun Citizens.

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G) PERCEPTION OF RESPONDENTS ABOUT THEIR BANK/S

4 - Most/excellent 3- Reasonably good

2- Fair 1- Disappointing

1. Most of the people who are associated with ING Vysya Bank found their Bank charges quite nominal and well justified. About 97% of the ING Vysya customers state the same. Even AXIS Bank is charging best rates of charges to its customers. ICICI customer agrees that they think of getting better bank charges.

2. People have ranked ICICI at the top notch for its 12hrs. working hours 8 to 8. Even ING Vysya operates from 10 to 7, which is 2 hrs. more than HDFC and AXIS. Therefore ING Vysya Bank has an edge over AXIS and HDFC as per working hours.

3. 80% people have again rated ICICI as one of the best banks location wise. Its large no. of branches provides access to bank anywhere. As ING Vysya has got no other branch in Uttrakhand it has been rated lowest as per most of the respondents and ING Vysya customers.

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According to respondents even AXIS and HDFC bank have no. of branches and are located at an accessible location.

4- Most/excellent 3- Reasonably good

2- Fair 1- Disappointing/least

4. Almost all respondents who are in connection with ING Vysya Bank have rated it best in the customer care services. 55% of the respondent who are associated with HDFC Bank have rated HDFC, reasonably good in customer care services. But customer of ICICI and AXIS Bank are not very much delighted with customer care services of their bank. This way ING Vysya has got an advantage of delivering excellent customer care services.

5. In case of “Behavior of the Staff” most of the ING Vysya customers have rated ING the best. Almost 100% of the ING customers are well satisfied with their banker’s behavior. On the other hand 72% customers of ICICI bank and other respondents as well have ranked ICICI as very disappointing as per behavior of the staff. Most of them stated that when they visit branch, any of the employee there, hardly pays full attention towards them. Even some of the preferred customers have to stay in a cue or have to wait for long to get their job done by the bank. HDFC and AXIS Bank has been rated reasonably good by the respondents as far as behavior of the staff is concerned.

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6. With the criteria of Variety of Accounts, people have rated ICICI as the top one. This is because ICICI is having bank accounts for the different customers with different needs. They have account for old age citizen, pension account, kids account of various types and many more. Whereas ING Vysya has been rated least, because they are operating with only 3 types of saving accounts in the city. They do have various other kinds of accounts but these are not available in Dehradun. This is probably due to very less time of their establishment. They are not providing the full services because its been just 6 months that they have established in Uttrakhand (DEHRADUN).

4- Most/excellent 3- Reasonably good

2- Fair 1- Disappointing

7. Most of the ING Vysya customers are happy with processing speed of their banking transactions. ING Vysya Bank boasts about delivering the commitment. According to the ING an account takes 5 days for activation.

8. The queries handling is done very well by ING Vysya bank according to the respondents. 57% of the ICICI customers are unhappy with the bank regarding their queries handling. Whereas AXIS Bank has been rated good.

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H) VARIABLES INFLUENCING ACCOUNT OPENING IN A PARTICULAR BANK.

1) I will prefer, if my friend recommends me to open an account in a particular bank. ( WORD OF MOUTH)

According to the respondents, they mainly disagree for opening a bank account on their friend’s or relatives’ recommendation. And to 27% of the respondents it doesn’t matter. Very few people agree to the recommendation. This means that the WORD OF MOUTH is not an essential marketing channel for opening an account in bank. People first try to find the real facts by their own.

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2) I am very cautious about Average Quarterly Balance non-maintenance charge. (QAB)

Many people are bothered about their QAB, and to 23% people QAB doesn’t mean much. According to them they were never charged for not keeping enough QAB.

3) I am generally motivated by the television add for saving bank account.

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Most of the respondents were unaware of the new advertisements of various banks. For them it hardly plays any important role in capturing market share.

4) I am generally bothered about the distance between my home and

Most of the respondents were very much bothered about the distance from their bank and home. That implies that PROXIMITY to bank is one of the very BOLD VARIABLE for account opening.

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5) I prefer saving bank account as it is popular.

6) I give importance to DD and cheque facility in saving bank account.

7) I give preference to instant alert, net banking and phone banking.

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8) I give importance to the third party cash deposits and withdrawal.

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5. OBSERVATIONS &

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RESULTS

The study conducted directs toward the Private Banking scenario in the city DEHRADUN. Study suggested that a large market share has been captured by ICICI Bank and HDFC Bank. Out of two ICICI is enjoying the maximum market share. This is probably because of the reason that ICICI was the first private bank in the state as well as in city.

Most of the people know about the account and services associated with it. Most of the people are maintaining 5,000 rupees as QAB in their private banking account, but most of them except ING Vysya customer are unaware of the special facilities available.

People have ranked ICICI bank as best in the city. This is may be due to the oldest persistence of ICICI bank in the city. They have rated HDFC as 3rd and ING Vysya as 2nd.

Almost everyone comes in contact with their bank by the use of ATM machines. 80% of the respondents were using internet banking that implies high literacy rate in the city.

People think that the staff of ICICI does not behave well with their customers but ING Vysya customers are glad with the staff of ING Vysya Bank. But on the other hand ICICI customers are very happy with the working hours of ICICI bank. HDFC customers are a bit unhappy with the working hours of their bank.

People are very much bothered by the distance between their home and the bank. They believe that this a major issue which influence the customer to open an account in any bank. Most of

Page | 48

the people are not entertained by the television advertisements about various banks. Even word of mouth has not been proved as strong marketing channel about banking. It implies that for banking customer is looking at the commitment, real facts, distance between their home and bank, behavior of the banker, QAB and many more.

SWOT ANALYSIS

Strengths

ING as one on the biggest financial MNC. 7th in 500 fortune

Only foreign bank which has acquired an Indian private bank (Vysya Bank)

Higher rate of interest than other private banks

Most of the financial plans are legalized under 80(ccc)

Top notch customer care and staff behavior

Unique features with different kinds of accounts

Working hours

Weakness

Very few branches Less variety of financial/banking

products Location

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Opportunities

New segment of doctors, students and CAs as they like innovation in their financial needs and like to enjoy the services.

High class (upper strata) population of city

Increase in different kind of financial products

NGO and Public Relations

Threats

Presence of two top private banking players in the market (ICICI & HDFC)

Large market share already captured Non willingness of Dehradun citizens to

change for something new, or to try innovation in their banking.

6. REFERENCES

www.ingvysyabank.com www.icicibank.com www.hdfcbank.com www.moneycontrol.com www.economictimes.com www.blackle.com www.wikipedia.com

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7. APPENDIX

Page | 51

Questionnaire

Comparative analysis of saving bank accounts of different private sector banks

Dear respondent,

We are conducting a research to know the general perception and attitude of customer towards the products & services that are offered by ING Vysya Bank & other private banks (ICICI & HDFC) in Dehradun. The information will be valuable input for the research and we assure you that the information will be kept confidential. We hope that you will co-ordinate with us and give quite a few minutes from your precious time and give the genuine answer.

Personal Details:-

Name:-

Page | 52

Gender :- M F

Age:-

Address:-

Occupation:- Service

Professional

Businessman

Others (Please Specify)…………..

Educational Qualification:- Under Graduate

Graduate

Post graduate

Phone no.(Optional):-

Annual Income:- Below 1 Lac

1 Lac – 3 Lac

3 Lac - 5 Lac

Above 5 Lac

1) Do you have a saving account in any of the Private banks in Dehradun ? a) Yes

b) No

2) In which of the following banks do you have saving bank account?

1. ING Vysya Bank

2. ICICI Bank 4. Any Other Bank

3. HDFC Bank (Please Specify…………………………)

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3) Do you have complete knowledge of the saving account and services associated with that account you have?

a) Yes

b) No

c) Can’t say

4) Are you a preferred/privileged customer of your bank?

a) Yes b) No

5) How much Quarterly Available Balance (QAB) you need to maintain?

a. Nil

b. 5,000

c. 10,000

d. More than above

6) Does your Bank provides you some special services like, smart serv, mi-banking?

a. Yes

b. No

7) Please rate the following banks on the scale of 4 where 1is the least and 4 is the most according to your perception you are having for reputation of the banks.

ING Vysya Bank ICICI Bank HDFC Bank Axis Bank

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8) What is your most frequent point of interaction with the bank?

Visit Branch ATM Phone Banking Drop Box Internet Banking Mobile Banking

9) Please rate the following banks on the basis of your perception about the given attributes out of 4, where 1 is the least/disappointing and 4 is the most/excellent

S.NO ATTRIBUTES

ING Vysya Bank ICICI Bank

HDFC Bank Axis Bank

1. Bank charges

2. Customer care

3. Variety of saving bank account

4. Behavior of the staff

5. Working Hours

6. Location

7. Personalized attention

8. Processing Speed

9. Grievance/queries handling

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10) Please rate the following variables which influence you when it comes to open an account on the scale of 1 to 5 where 1 is strongly disagree and 5 is strongly agree.

SL NO STATEMENTS SRONGLY DISAGREE……………………………

STRONGLY AGREE

1 2 3 4 5

1

I will prefer, if my friend recommends me to open an account in a particular bank.

2

I am very cautious about Average Quarterly Balance non-maintenance charge.

3

I am generally motivated by the television add for saving bank account.

4

I m generally bothered about the distance between my home and the Bank.

5 I prefer saving bank account as it is popular.

6

I give importance to DD and cheque facility in saving bank account.

7

I give preference to instant alert, net-banking, phone banking, and mobile banking.

8

I give importance to the third party cash deposits and withdrawal.

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Any other suggestions regarding the bank please mention:-

……………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………….

Tthank you for your cooperation for devoting your valuable time and sharing the valuable

information with us which will help us to complete our project successfully.

Place………………… Date……………………..

Signature of the respondent

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