rutger koopmans general manager ing wholesale banking netherlands 9 november 2005, brussels
Post on 22-Dec-2015
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TRANSCRIPT
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Key message
• India is ‘hot’, but already well known to ING
• “India” hype may lead to losing sight of key issues
• The long term view could become ‘a fata morgana’: ‘the long and winding road’ (a steep learning curve)
• Embrace the cultural differences with knowledge
• Keep pace & manage expectations: things to do!!
3
ING’s perspective: ING in India
• India is a rapidly growing economy with one of the fastest growing financial services industries in the world
• India is the second fastest growing insurance market in Asia, second only to China
• ING has been in India since 1990 and is the only global player in banking, asset management & insurance with non-Indian management control
• ING Vysya Bank has the largest banking network amongst international players in India
• ING Vysya Life Insurance is one of the fastest growing private players in the Indian insurance market
4
ING Group in India – Key Milestones
ING Bank N.V.set up arepresentativeoffice in India
1991 1995 1997 1998 2000 2001 2002 20031990 1994 1996
Barings startedInvestment Bankingoperations in India
ING Bank N.V.representativeofficeconverted intofull-servicebranch
ING Groupacquired Barings
globally therebyacquiring thebusiness of Baringsin India as well
Bank BrusselsLambertacquired astrategic stakein Vysya Bank
ING Investment Trust(Asset Managementbusiness) incorporatedin India
ING Groupsets uprepresentativeoffice forInsurance inIndia MoUsigned withVysya Bank
ING Vysya LifeInsuranceCompanybeginsoperations
ING becamethe singlelargestshareholder inVysya Bankby increasingits stake to44%
Vysya Bank renamedas ING Vysya Bank
ING Vysya Bankacquired 26% stake inING InvestmentManagement (India)Private Limited
(this is the AssetManagementCompany whichmanages the INGVysya Mutual Fund)
ING set up joint venturewithVysya Bankand GMR groupfor the foray intoInsurance Sector in India
Barings PrivateEquity established inIndia
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Universal banking franchise
ING Vysya Bank Overview
Regional Offices: 11
Key statistics
North & East Region
# of Branches- 33
West Region
# of Branches- 30
AP Region
# of Branches-196
South (ex AP)
# of Branches- 193
Branches: 454
Employees: 4,871
ATMs: 79 (access to more than 9,000 shared ATMs)
• Branch Banking
• Small & Medium Enterprises
• Agri & Social Banking
• Private Banking
• Distribution & Marketing
Wholesale Bank Retail Bank
• Corporate & Investment Banking
• Emerging Corporates
• Banks & Financial Institutions
• Financial Markets
IVB Position (Private
Position Bank Share
1 ICICI Bank 4.3%2 HDFC Bank 1.9%3 UTI Bank 1.3%4 Citibank 1.3%5 Stanchart 1.3%6 J&K Bank 1.2%7 HSBC 1.0%8 Federal Bank 0.9%9 IndusInd Bank 0.7%10 ING Vysya 0.7%11 IDBI Bank 0.6%12 Karnataka Bank 0.6%
17 ABN Amro 0.4%
21 Bank of Punjab 0.3%
33 BNP Paribas 0.1%
IVB Position (Private + Foreign Banks)
Market share based on size of deposits as on 31/3/04
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ING Vysya Bank Capabilities
• Leverage unique position as the first “Indian International” bank
• Combines strengths of the erstwhile Vysya Bank and ING Group to create an integrated platform delivering a complete range of banking products to Indian and Global clients
Integrated approach allows ING Vysya Bank to follow a client centric approach and offer a range of products and services leveraging local and international strengths
• Strong Rupee Balance Sheet
• Broad based India presence
• Wide commercial banking suite
• Strong Rupee Balance Sheet
• Broad based India presence
• Wide commercial banking suite
• International Investment Banking Capabilities
• Strong Corporate Banking Franchise
• Global Network
• International Investment Banking Capabilities
• Strong Corporate Banking Franchise
• Global Network
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11,000
12,000
13,000
14,000
15,000
16,000
17,000
2001/02 2002/03 2003/04 2004/05 2005/06F
(IN
R b
n)
Real GDP
GDP Growth (%age)
+4.0%+8.2%
+6.9%
+6.5%
Exports & Imports (USD bn)
4553
6370
78
5865
80
97109
-
20
40
60
80
100
120
2001/02 2002/03 2003/04 2004/05F 2005/06F
(US
D b
n)
Exports Imports
Source: Economic Survey, Reserve Bank of India, Forecasts - Brokerage Report
5171
103
135 150
0
20
40
60
80
100
120
140
160
2001/02 2002/03 2003/04 2004/05E 2005/06E
US
D b
n
FX Reserves
FX Reserves (USD bn)
167.00 176.60 188.70 204.55
020406080
100120140160180200220
2001/02 2002/03 2003/04 2004/05
Index of Industrial Production
Note: Index of Industrial Production, Base 1993-94 = 100
+6.9%+5.7%
India: Strong Macroeconomics Fundamentals
+8.3%
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India: the challenges of a growing economy
• High fiscal deficit
• Inflationary pressure
• Increasing government debt burden
• A strong democracy, slow decision making process
• Weak infrastructure (roads, airports, water management)
• Maintaining pace of reform (upgrading public systems)
• Bureaucracy, corruption, complex/antiquated regulations
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“India” beyond the opportunities
• Keep a close eye on these factors
• Do not get hung up in long-term scenario predictions
• Focus on how to realize the “India” challenge
10
Embrace the differences
• India has a unique cultural and religious heritage
• It takes time to understand the history, the social demography and the cultural values
11
Adopt and Adapt to the changes
• Indian businessmen in Europe have to adapt to a different European outlook on India
• Business relations have changed and will change, a new balance will occur
• Indian businessmen are part of ‘the Indian hype’ but: don’t overlook Europe’s potential
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Keep pace & Manage expectations
• India is managing growth in a careful and diligent way; manage your expectations in the same way
• Looking ahead, the potential for economic and political stability in India is enormous, but we must be appreciate and respect that the road ahead inhibits a steep learning curve
• The outcome is clear, but there is a way to go!