Professional Documents
Culture Documents
Consumer Finance: Ing Vysya Bank LTD
Consumer Finance: Ing Vysya Bank LTD
TABLE OF CONTENTS
PART- A
SL NO CONTENTS PAGE NO
1. EXECUTIVE SUMMARY 2
2. INDUSTRY PROFILE 3-8
3. COMPANY PROFILE
a) Background and inception of the company 9-12
b) Nature of the business carried. 13
c) Vision, Mission, and Quality policy. 14
d) Product/service profile 15-16
e) Area of operation-Global 16-17
f) Ownership pattern 17-18
g) Competitors information
18
h) Infrastructure facilities
19
i) Achievements / awards if any
19-20
j) Future growth and prospectus
21
4. Mc Kinsey’s 7S Model 22-26
5. SWOT Analysis 27-28
6. Learning Experience 29
PART – B
1. a) General Introduction
Statement of the problem 30
Objectives of the study 30
Scope of the Study 31
Methodology 32
Limitation of the study 33
2. Data Analysis 34-49
3. Findings, Conclusions, suggestions and Recommendations 50-52
4. Annexure 53-54
5. Bibliography and Wibliography 55
Executive Summary:
1 CITY ENGINEERING COLLEGE
CONSUMER FINANCE [ING VYSYA BANK LTD]
Consumer Finance has become so much important for every business undertaking that all
managerial activities are connected with it. Consumer Finance viability of various positions
influences decisions on them. Consumer Financial management refers to that part of the
management activity. Which is concerned with the planning and controlling of firm’s consumer
financial resources? It deals with lending and collection of funds for the company. The source
must be suitable and economical for the needs of the business.
This study is mainly focused on Consumer Finance, at over ING VYSYA Bank, Bangalore.
This study is mainly dividing into two parts Part-A part-B.
Part-A contains details about the ING VYSYA Bank in the world and in India, ING VYSYA
Bank profile, Industry Profile of Banking sector, 7S adopted by the company, financial analysis,
competitors of the ING VYSYA Bank, and SWOT analysis.
Part-B It deals with the study of Consumer finance analysis using the comparative financial
statement at ING VYSYA Bank, Bangalore.
Financial system may be defined as set of institutions, instruments and markets, which foster
savings and channels them to their most efficient use. The primary function of the financial
market is to facilitate the transfer of funds from surplus sector to deficit sector i.e. from lenders
to borrowers.
The required data for the study is collected from primary sources as well as the secondary
sources of interaction. The primary data have been elicited through structured and unstructured
interview with the manager and staff (consumer assets dept). The secondary data has been
collected from the published annual reports of the company, the department files and the
brochures.
The consumer financial decision making plays a vital role in an organization. The financial
position and performance of ING VYSYA Bank satisfies most of the requirements of
profitability of the company. The profits are in increasing trend, when compared to the past
record. The consumer finance performance of ING VYSYA Bank is consistently growing over
the period of years .
PART-A
INDUSTRY PROFILE
Banking in India has its origin from the Vedic. It is believed that the transit in from money
lending to banking must have accrued even before “Menu” the great Hindus Jurist who has
devoted a section of his work to deposits and advances and laid down rules relating to rates of
interest.
In the present scenario, service sector plays an important role in the country. Among service
sector banking is one which plays a vital role in economic development. The liberalization and
economic references allowed banks to explore new business opportunity rather than generating
revenues from borrowing and lending.
The banking industry was regulated by “The Indian banking Regulation Act” of 1949,It defines a
Banking Industry as “Any industry which transits banking business in India”. Banking means
“Accepting for purpose of lending all investment of deposits of money from the public repayable
on demand or otherwise and withdrawal by cheque or demand draft”.
During the mogul period, the indigenous bankers played a very important role in lending money
and financing foreign and commerce. During the days of the East India Company, it was the
turn of the agency houses to carry on the banking business. The general Bank of India was the
first joint stock Bank to be established in the year 1786. The others, which followed were the
bank of Hindustan and the Bengal Bank.
According to Sir John Paget, “No person on body corporate or otherwise can be a banker who
does not take the following:
Deposit accounts
Current accounts
Issue and pay cheques
Collect cheques, crossed and non-crossed, for his customers.
In the first half of the 19th century the East India Company established three banks; the Bank of
Bengal in 1809, the Bank of Bombay in 1846 and the Bank of Madras in 1843. These 3 banks
also known as presidency Banks were independent units and functioned well. These 3 banks
were amalgamated in 1920 and new bank, he imperial Bank of India was established on 27 th
January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the
imperial bank of India was taken over by the newly constituted State Bank of India.
The Reserve Bank, which is the central, was created in 1935 by passing Reserve Bank of India
Act 1934. In the wake of the Swedish movement, number of banks with Indian Management
were established in the country namely, Punjab National Bank Limited, Canara Bank Ltd.,
Indian bank Ltd. On July 19th 1969, 14 Major banks of the country were nationalized and in 15th
April 1980, 6 more commercial private sector banks were also taken over by the government.
State Bank of India and it’s associate banks called the state bank group
20 Nationalized Banks
Regional Rural Banks mainly sponsored by public sector banks
3. Development Banks:
4. Co-operative Banking:
India is a country where agriculture is still a predominant activity. Our farmers by and large are
poor and usually used to depend on money lenders Indigenous bankers and financiers etc. Till
1951-52 the money lenders were providing 70% of the requirements of farmers and thus
constituted the most important source of rural finance. However the share of Moneylenders in
rural credit was reduced to 49%. This was due to high rates of interest, dishonesty and
fraudulent practices followed by the money lenders.
The cooperative Movement was started in India in 1904 with the objective of providing finance
to agriculturists for productive purpose at low rates of interest and thereby relieving agriculturists
from the chetches of the Money lenders. The co-operative society Act of 1912 contributed to the
establishment of central co-operative banks and the state co-operative banks to provide refinance
to primary credit societies which could not mobilize funds by their own efforts.
The co-operative credit movement made food progress during and after the 1 st world of 1914-18,
but during the great depression of 1929-1933, it received a serious setback. With the outbreak of
Second World War of 1939-45, the co-operative credit movement made considerable progress
once again. Since then, the progress has been maintained.
A co-operative bank promotes economic activity and provides banking facilities and service to
the rural people. The significant role of co-operative banks in the agricultural economy imparts a
lesson to commercial banks and dispels from their minds the age old inertia and the gloom of
conservatism by shifting emphasis from credit worthiness of the purpose and from tangible
security to the character of the business.
So, co-operatives are characterized by voluntary association and open membership, democratic
management, limited interest on capital, education and training equity of distribution of profits
etc. “Each for all and all for each” is the underlying principle of co-operatives. There are 2
models for co-operatives they are
Raiffeisen societies are a type of rural co-operative societies.The main principles of these
societies are:
Schulze Delitzsch societies are a form of urban credit societies. The main principles of these are
So, co-operative came as an answer to the problem of rural indebtedness which was rampant
through act the country during the later decades of 19 th century. It was an official remedy to be
introduced on a voluntary basis, with the principles of self-help, thrift and mutual co-operation.
This was supposed to be the beginning of genuine Indian co-operative movement. So the
objective of co-operative movement is actively implementing socio economic program with the
ultimate aim of uplifting the living standard of economically backward and weaker section of
society.
In 1919 the government of India Act 1919 was passed and co-operation became a state subject.
So, several states passed their own acts for the development of the co-operative movement in
their respective states. Through the co-operative movement in India was born at the beginning of
century as an instrument of dealing with agricultural indebtness, it was only after attaining
independence that attaining independence that attention was paid in a big way to this issue.
After independence the co-operative movement received added support from Government.
So to sum up, the co-operative movement has made remarkable progress in terms of number,
membership share capital and working capital. The progress of co-operative movement has been
remarkable in the fields of agricultural credit, marketing and supply of farm inputs and
processing.
The Indian co-operative banking system is a 3-tier system. If consists of three sectors.
It is an association of ten or more persons residing in a particular locality. The funds at primary
credit societies consist of entrance fees, share capital, Reserve fund, Fixed Deposits from
members and non-members and loans from central co-operative banks. The primary credit
societies extend short and long term loans to the members. Generally, loans are given for a
period of 6 months, one year and 2 years. Loans are ordinarily given, on personal security of
borrowers supported by personal security of borrowers supported by personal.
The primary credit societies failed to mobilize enough deposits from their members for meeting
their requirements. They were in need for refinance from some agency. So the co-operatives
societies Act of 1912, provided for the establishment of the central co-operative Bank to provide
finance to primary credit societies.
Central co-operative banks are federation of primary credit societies operating in a specific area.
Generally they are located in the district head quarters and some prominent towns of the district.
The funds of central co-operative Banks consist of share capital, reserve funds, deposits from
members and non-members and loans and advanced form state co-operative Banks. Sometimes
they raise loans from commercial banks also.
Every state has a state co-operative Bank at the top of the co-operative banking structure. If is
known as Apex Bank as it controls and co-ordinates the working of all co-operative credit
institutions in the state. If is found in the state capital. The table 1.1 shows the co-operative
credit structure in the whole state of Karnataka.
The funds of the state co-operative Banks consists of share capital, reserve funds, deposits from
members and general public and loans from RBI, state Government and commercial Banks.
However loans and advances from the RBI constitute a major part of their funds.
COMPANY PROFILE
2.1 ING VYSYA BANK IN INDIA
In India, ING is present in all three fields of banking, insurance and asset management in the
form of ING, ING Vysya Life Insurance and ING Investment Management respectively. The
presence in all three fields signifies the importance that the group attaches to the Indian markets
and the group's operations here, as well as its bullish future outlook on the country.
ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of
ING Investment Management is situated at Mumbai. The synergies arising out of the three
distinct but complimentary businesses are bound to be an asset to the group in the changing
market dynamics of the future. The first such signs are already visible on the horizon with
combined products being successfully launched by the different entities of the group in
conjunction with each other.
Profile
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialisation
is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail
market share in mature markets. Finally, ING distinguishes itself internationally as a provider of
‘employee benefits’, i.e. arrangements of nonwage benefits, such as pension plans for companies
and their employees.
Mission
ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of
financial services through the distribution channels of the client’s preference in markets where
ING can create value.
In terms of pure numbers, the performance over the decades can better be appreciated from the
following table:
Year Net worth Deposits Advances : Profit Outlets
Rs. in millions
Year Net worth Deposits Advances Profits Outlets
1940 0.001 0.400 0.400 0.00 14
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
2009 15940.00 248900.00 167510.00 1888.00 857*
* Outlets comprises of 441 branches, 37 ECs, 28 Satellite Offices and 351 ATMs as of March
31st 2009. Additionally bank also has Internet Banking, mi-b@nk and Customer Service Line for
Phone Banking Service.
sized asset management company with a retail investor focus. ING Vysya is globally service
provider in banking and insurance sector.
ING Vysya Bank
ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank
Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of
Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was in the year 1930.
The last year (2005) was the 75th anniversary or Platinum Jubilee year.
ING Vysya Mutual Funds
ING Vysya Mutual Funds brings with it the vast international experience and professional
expertise of the ING Group. With presence in eight cities across the country, and over Rs.1600
crores of Asset Under Management, ING Vysya Mutual Fund aims to provide investors with the
most practical and secure investment opportunities to invest their valuable savings. This is
combined with a range of innovative options to deliver healthy returns combined with a high
degree of security. Currently, the fund offers four equity, five debt and two hybrid schemes to its
investors.
ING VYSYA life insurance:-
IVL.co private limited entered pvt life insurance industry in India in sep 2001, & in a short span
of 3 & a half years has established itself a distinctive life insurance brand wuth an innovative ,
attractive and customer friendly product portfolio and a professional advisor force. It also
distributes products in close co-operation with the ivb network. Currently it has over 10000
advisors in 30 cities across the country and over 1000 employees.The co has 150000 customers
as on date and achived an income of rs.150 crore in the year ending 31 st dec 2004.Ivl insurance is
a joint venture b/w Ing insurance international, bv a part of Ing group, the world’s second largest
life insurance co.(fortune global 500,2004), Ing vysya bank, with 2million customers and over
400 outlets and GMR industries limited , part of GMR group also based in b’lore and involved in
the field of power generation infrastructure development & several other business.
Current a/c
Term deposits
Demat a/c
Personal,home,home equity,nri loans
Pvt banking
Wealth mngmt
Life insurance
Mutual funds
Govt of india & tax savings bonds
NRI services
Credit & debit card
Internet banking
Phone banking
Mobile banking
Self banking
ATM kiosks
Payment services
Business banking
Sme-loans,mpower b’ness a/c
Agri –term & short term loan
Wholesale banking: – cash mgmt services, corporate & investment banking credit products
& structured finance, offshore borrowings, trade & commodity finance.
Special services:- along with the portfolio mgmnt & advisory services we also bring to
clients our banking services which include remittances, deposits, loan against
deposits/mutual funds etc
Loan products
Od facility
Vysdp(depository services)
Smart serve
Internet banking
Phone banking
Bill payments.
Debit & credit cards
National:-
CONSUMER FINANCE it is operating in 13 locations
Bangalore
16 CITY ENGINEERING COLLEGE
CONSUMER FINANCE [ING VYSYA BANK LTD]
Delhi
Hyderabad
Mumbai
Pune
Chandigadh
Jaipur
Vizag
Chennai
Kolkata
Nagpur
Ludhiana
Regional:-
Ing vysya bank has a total of 677 branches of which there were 407 branches ,39 extensions
counters, 28 satellite offices & 203 atms
M.DAMODARAN Director
2.8 INFRASTRUCTURE
ING VYSYA Bank head office is situated in bangalore.
ING house contains the board room, offices for senior mgmt and a number of corporate dept's.
the building was desgined to reflectthe image of ING VYSYA innovative and transparent ,
dynamic and sustainable . the open planand glass walls help facilitate communication across
dept's& complement dedication to transparency.
The ING VYSYA house has a auditorium, a foyer, restaurant, library , conference rooms &
parking spaces.
The total office space is reserved for "flexible"work stations, which give employees the chance
to change their working environment.
2.9 ACHEIVEMENTS
ING becomes 13th largest company in the world compared with last year, ING Group has risen
four places in the Global 500 list of the world’s largest companies. The list is published by
Fortune, the US business journal. At number 13 in the ranking, ING Group is the largest
financial institution on the list, followed by Citigroup and AXA & in terms of revenues and net
profit; ING is now the biggest of the 21 insurers on the list. Over the last 150 years ING group
has grown to become one of the largest life insurance organisations in the world. Today it
touches the lives of over 50 million people across 65 countries.
ING Group is the worlds largest LIC in profits (U S 4.50 billion.
4th largest financial group in the world.
Ranked 9th overall among world top 2000 companies (Forbes 2005).
Operating in 5 continents across 50 countries.
It has 60 million customers.
ING Vysya employees raise 35 lakhs to send 2,500 child workers back to school.
World’s largest financial group in revenues (fortune 500 2006) having presence in over 50
countries & with over 1, 15,000 employees.
Worlds 1st integrated financial service provider offering banking insurance & asset
management.
Total assets of Euro 1,158 billion as on dec.2005.
Ranked no.1 retail fund manager in Asia (Asia asset mgmt dec,2005)
2007 it has been recognized for our public relations by the public relations council of India
AWARDS:-
1996 GEM & JEWELLERY EXPORT PROMOTION COUNCIL CONFERRED AWARD
FOR BEST EXPORT PROMOTION.
1998 Won golden peacock award from institute of directors for best HR practices.
1998 International magazine ‘GLOBAL FINANCE’ rated the bank best DOMESTIC
BANK.
2007 Achiever award for contributions & consistent public relations council of INDIA.
The ING VYSYA Bank has a great opportunity to drive business growth .the combination of
innovative & ING VYSYA'S reputation for efficient service delivery & customer care puts it in a
stronger position to maximize opportunities & to expand its operations. With a economy of the
country growing at nearly 8% these high growth potential for the bank.
The bank is planning to enable ‘Money Click’ as a payment gateway for shopping that conserves
at areas of business like hotel booking, ticket booking, purchase of goods etc.
ING VYSYA angel broking ink pact for investment services.
ING VYSYA Bank plans to hike base rate in Jan-march says CEO
Angel broking head. Liquidity in share market not a concern right now.
Angel broking head: sensex may top 21000 if liquidity increases.
ING VYSYA Bank CEO aims for FY11 loan growth better vs. industry.
STRUCUTRE:
The Structure of the organization represents the hierarchy of the organization. It represents the
reporting system of the organization. Thus, organization structure is the pattern of relationships
among various activities and positions. From the structure or organ gram of the organization we
can have clear picture of the responsibility of the personnel working in the organization. It refers
to the differentiation and integration of activities and authority, role and relationships in the
organization. Hence organization structure is the basic framework within which the manager’s
decision-making behavior takes place.
In ING VYSYA Banking structure of the organization represents the vertical hierarchy of the
organization.
Structure of the organization is basically functional where common or homogenous activities are
grouped together. This type of structure is very effective for big organization like ING Vysya.
This ensure specialization, easier control over functions, easier way for pinpointing needs of the
managers and maintaining the relative importance of functions in the organization.
SYSTEM:
A system means all the procedures, formal and informal, that make the organization go day-by-
day, year-by-year.
The organizations is an open system organization because they interact with environment
Computerization System
The developments in Information System are working wonders in all fields of activity. It
becomes possible to send and receive information almost instantaneously. If circular do not reach
the agents on time or doubts are not cleared quickly, or the agent does not have details of new
plans announced in the press, the agents may face awkward situations with the prospects. These
problems can be totally avoided with the use of IT. Insurers traditionally, have been quick to
adapt latest advances in technology. This is happening in the area of IT as well. The extent of IT
application will vary between insurers.
Rapid strides have been made by ING Vysya Bank in the field of computerization Mini-
Computers, Online Computerization of product dispatch and finance and give product details to
customers.
STRATEGY:
Strategy sets out vision, mission, objectives, major action plans and policies of the entire
enterprises. These set out the picture of the strategy, the SBU strategy and the functional
strategies. This sets out a broad frame work to guide managers at all levels in all functions in
their specific short term objectives.
ING VYSYA’S Mission is “To set the standard in helping our customers manage their
financial future”. To achieve this we aim to be the top new life insurance company in the
market. This does not just mean being the largest or the most productive company in market,
rather it is combination of several things like-
Customer service of the highest order
Value for money for customers
Professionalism in carrying out business
Innovative products to cater to different needs of different customers
Use of technology to improve service standards
Increasing market share.
STYLE:
One element of mangers is how he/she chooses to spend time, another aspect is symbolic
behavior. This suggests a second attribute that is by no means confused to those at top. The style
is a reflection of culture, more then to change the organization or performance.
The ING VYSYA is basically a participating and democratic type of system. Before taking any
decision meeting is conducted and the final decision is taken with the consent of all. Every
employee gets change to five his/her opinion. Every employee can participate in decision making
of the organization. The final decision is taken with consent of all.
The ING VYSYA Bank is a unit has a union body and hence it takes people into confidence. It
does not take any decision unilaterally.
Since every employee’s ideas and opinions are taken by the managers before arriving at a final
decision effective decisions can be taken. Managers are evaluated on the basis of quality of their
decision making. Hence participative and democratic type of a system is the best system for
such a big organization like the ING VYSYA Bank.
SKILL:
The ING VYSYA Bank is having 8 departments, which has personnel with variety of skills
.They should have the ability to take right decisions. They should manage the personnel and
make then carry out their responsibility.
The ING VYSYA Bank unit has personnel with a variety of skill for different fields they have
personnel with different talents, skills and experience.
It is a participative democratic system so every decision is taken after discussion with the
personnel. Hence the personnel have good communication skills.
A corporate communication department also knows as public relation department is also there in
the ING VYSYA Bank. It takes care in building the image of the organization both by external
communication and internal communication and also having development department. It
increasing strength of the employees and arranging programs.
STAFF:
Organization requires the service of a large number of personnel. These personnel occupy the
various positions created through the process of organizing. These personnel comprises of the
staff of the organization.
Each position of the organization makes certain specific contributions to achieve organizational
objectives. Hence the person occupying the position should have sufficient ability to meet its
requirements. Hence staffing is necessary to match jobs and the individuals.
In ING VYSYA, 15 permanent workers are there and more than 100 agents are there who are
working for company. Agency Manager can manage the Unit Manger, Clerical Staff as well as
Insurance agents.
SHARED VALUES:
Security:
Providing long term financial security to our Customers will be our constant endeavor. We will
do this by offering Variety of products.
Trust:
We appreciate the trust placed by our Customers in us. Hence, we will aim to manage their
investments very carefully and live up to this trust.
Innovation:
Recognizing the different needs of our customers, we will be offering a range of innovative
products to meet these needs.
Company mission is “To set the standard in helping our customers manage their financial future”
and these are the values that will guide us in this.
The extra-ordinary growth of the direct marketing is the result of many factors. Market
demagnification has result in an ever increasing number of market Niches. Higher costs of
driving, traffic congestion, parking headaches, lack of time, shortage of information so all have
encouraged home shopping. Also, the consumers appreciate the commitments to the customer
service etc.
SWOT ANALYSIS
STRENTHS:-
Brand name
Huge product Portfolio.
Quality of service and product.
Quality service from the advisors.
Skilled workforce.
Sophisticated software to enable faster and smooth operations.
Strong marketing and distribution channels.
WEAKNESS:-
Complicated process to track for the company.
Customers perceive as just protection benefit rather as a good investment option.
Being a private player, it is difficult for the company to gain customer’s trusts,
concentration being more on quantity of results.
Lack of Co-ordination between the various branch offices.
OPPORTUNITIES:-
Banking is a growing sector, hence creating opportunity for the employee to prosper and
grow as individuals.
The Company has an opportunity to expand its business.
Rising life style of people and their increasing income level motivates them to invest
more.
Growing education and awareness level of the people towards Banking.
As its growing sector, the customer has an access to the company whenever he needs.
The changing customers need to create more business opportunity.
THREATS:-
Entry of branded names in the Banking sector, poses a threat to the existing
companies.
Direct investment options available to the customers like mutual funds, etc.
Fraud and Default
Catastrophe’s occurring, as they give rise to claims.
Rise in inflation figures which would lead to increase in interest rates.
Increase in the number of foreign players would pose a threat to the psb as well as the
private players.
LEARNING EXPERIENCE
The training, which I underwent, has provided me a great enhancement to my organization
understanding, it was on great pleasure for me to do my project in ING VYSYA Bank. During
the period it was totally a new experience entering into the organization. I spent most of my time
in visiting various places Branches, various departments, interacting with people, etc.
In the course of month, I had engaged with the product manager of the company for promoting
the business, the product manager who will work for entire company. She is managing all
activities by advising and managing through the staff. This was a positive response from the
entire staff. It was really a fruitful and great experience working in the organization. Employees
from every corner of the department helped me in getting the required information for the
successful completion of this project.
The environment was so friendly and I did not feel uneasy during the whole training period,
which gave me great deal information and knowledge as to how an organization really functions.
The training provide an opportunity to relate classroom learning with the really if management.
My constant interaction with the management managers, supervisors, staffs, etc, has indeed
widened my horizons of knowledge. Ultimately to say the training period in the company was a
wonderful small time in the huge corporate world. Studying Mckinsey’s 7S Model with respect
to ING VYSYA Bank gave me a great exposure to learn about the organization. I learned about
the working of the organization in the period.
From this report finally I studied about the impact of welfare activities provided by the ING
VYSYA Bank among the employees of the organization. The welfare services to the employees.
But at the same time bonus, retirement benefits, incentives etc. provided by the organization is
not enough to motivate the workers in their work. The institutional training is the best approach
to have extra knowledge on the practical approach of management studies. This training helped
us to understand how an organization and its various department functions.
GENERAL INTRODUCTION:
The conception of the research design plan is a critical step in the research process. The design of
the study constitutes the blue print for the collection, measurement and analysis of data. In other
words, the research design is a conceptual structure within which is research is conducted.
Public have occupied center stage of our country’s economy policy since independence. As
consequences, any study in the area of financial management of public enterprise becomes
relevant.
Public enterprise in India has been functioning for many years. Many public sectors undertaking
have been become sick and many are performing very well in this globalize market. This
indicates that efficiency in management of public sector undertaking is one of the main factors,
which are critical in their success. Hence this study is made to see how the management of a unit
f a public sector are undertaking is been done. This emphasis of this study will be on financial
management.
The scope of the study is restricted to the financial statements and profit and loss of the Bank. It
is confirmed to the analysis of the financial results.
With respect to change in the economic environment across the globe & also due to paradigm
shift in management education, understanding of business relationship of is very much essential
for building professional managers.
The SUMMER PROJECT, which is strategically framed in the middle of course ,helped me
immensely .It provides an opportunity to expose myself to real bank scenario & gain confidence
with acquiring professional skill.
This study is applicable to entire banking industry as a basis to plan its loan policies its
disbursement & recovery decision.
METHODOLOGY OF STUDY:-
During the course of summer project, the source of information obtained can be classified
broadly into two categories. Primary data and Secondary data.
Research design is purely & simply the framework or plan of a study that guides the collection &
analysis of data. This research design is to be done before conducting a study. Success of any
research study lies in its research designs. There are three types of deign
Exploratory
Descriptive
Casual
This project is undertaken as per descriptive research design, which is also called exploratory
design. The descriptive study is typically concerned with determining frequency with which
something occurs.
Data are facts, figures, & other relevant materials, past & present serving as bases for the
analysis. Inference based on imagination or guesswork cannot provide correct answer to research
requirements. The relevancy, adequacy of data determines the quality of the findings of a study.
For solving any problem the primary requirement is data. Before conducting the study the
sources of data are to be identified. There are two sources of data
Primary data sources
Secondary data sources
Primary data :- The primary source of data is mainly comprised of the face to face interaction
& discussion with various executives, officers & other staff members of other banks & also in
the organization.
It is a set of 1st hand information gathered originally for the research work. All the required
information of the various types of loans collected from other banks by personally, & all the
information is presented in the report. Then the additional information is also obtained through
by making calls to the all the banks that means through telecommunication.
Secondary data:- The data was obtained through the staff manuals, scale of finance report ,
newsletters, annual reports of all the banks & also through the various other sources like internet,
advertisements etc..
Consumer Finance
Definition : - The division of retail banks that deals with lending money to consumers. This
includes a wide variety of loans, including credit cards, mortgage loans & auto loans & can also
be used to refer to loans taken out at either the prime rate or the sub prime rate.
In other words: - A financial institution that specializes in providing loans directly to consumers
who are unable to secure bank loans. A consumer finance company generally charges higher
interest rates than a bank.
1) SAFETY: When a bank lends the depositor’s money, he must feel certain that the advance is
safe I.e., the money will definitely come back. The repayment of the loan depends upon
borrower’s (a) Capacity to pay (b) Willing to pay (character) (c) Capital. It means that the
barrower should be capable of enterprising either in business or depends on the honesty,
character and integrity of the borrower. He should feel sense of responsibility for
maintenance of the asset and for repayment. Hence bankers insist for barrower’s capacity in
the form of margin.
2) LIDUIDITY: The bulk off bank deposits is repayable on demand or at short notice to the
depositors. If the banker lends a large portion of his funds to barrowers from whom
repayment would be coming lending in but slowly, the ability of the banker to meet the
demands made on him would be seriously affected. Hence care should be taken whole
selecting the barrowers, so that the money is employed by the barrower for short term
requirements and not in the schemes, which take a long time to pay their loans.
For ex: loans against mortgage of building and lands are safe but the recovery has to be
made through a court process which takes a lengthy period and liquidity gets affected.
3) PUREPOSE: Banks should lend to the productive oriented activities only so that it provides
a definite source of repayment to the barrower. Banks are not supposed to lend to the
barrowers who involves in unauthorized hording of and for speculative activities. Banks
discourage extending finance to the anti social elements like smugglers, thieves and
encourage finance to the income generated activities only.
5) SECURITY:
Security is considered as insurance or a cushion to fall back upon in case of an emergency.
a) Marketable: The security obtained should be easily and readily marketable. All the
costly securities can’t be considerable as good securities. For ex: pearls or diamonds or
palatial bungalows are not considered as good securities they appeal to only a small
section of society have a limited market.
b) Accessibility: the value of security should be easily accessible. The banker need not
refer to an expert to value a security. For ex: the value of food grains, oil seed etc, Can
easily known, but the value of painting by old masters and highly specialized machines
needs to assistance of experts.
c) Recoverability: the cost of the security should be easily recoverable when it is sold. It
means the sale proceeds of security should come back quickly without much delay.
d) Transferability: The title of security should be easily transferable whenever occasion
demands. Ex: shares can easily transferable to the lands and buildings.
e) Insurable: The security should be insured without any objection from insurance
companies and not at higher premium rates. Ex: stocks of matchboxes and petroleum
products will be at a higher premium rate.
f) Storability: The security should be capable of being stored in a godown so that it can
be safely kept, easily supervised and quality should not get deteriorate, perished or
destroyed. Ex: Iron ores near mines, films which need air conditioned godown and
patent medicines with expiry date are not considered as a good security.
g) Stability: The security should be stable in value without much fluctuation over short
periods. Commodities like pepper and yarn are prone to heavy fluctuation and accepted
as a security only with a higher margin.
h) Transportability: The security should be easily transportable from one place to
another in case of sale as a per the market demand Ex: heavy machinery and Iron
girders are not easily transportable.
i) Ascertainably: the title of the security should be easily ascertainable, undisputed and
clear for ex: while taking the property of a JHF, care should be taken to ascertain all the
claimants of the property.
j) Yield: If a security is a source of some steady income, it is considered desirable as it
affords an automatic source of repayment of loan wholly. For Ex: high marketable blue
chip shares on which substantial dividend is regularly receivable and shops/ godown
which the banks keep a margin.
k) Margin: Margin on securities is also maintained as a cushion against fluctuations in
value of securities. In case of forced sales, the security may not sell for its full value
and hence the banks a margin.
l) Acceptably: The security offered by the barrower should be acceptable to the banker.
The securities, which are hazardous and ruins the communal harmony of the country,
should be avoided Ex: ammunition like pistols, bombes etc.
m) Durability: the security should be reasonably durable for ex: perishable articles/goods
like vegetable, fruits and mutton which are may not be suitable securities unless
otherwise stored in refrigeration.
n) Safety: The security should be free from the risks of theft and fire ex: goods loan on the
stocks of matchboxes is not considered as safe.
6) SPREAD: An element of risk is always present in every advance. Hence the
diversification of funds is essential. Banker should be keen in spreading the risks
involved in lending over a large number of barrowers, over a large number of advances
and over different types of securities. For ex: if bank has advanced, too large a portion of
his funds against only one type of security he will run a big risk if that class of security
steeply depreciates.
PROFITABILITY:
Banking is essentially a business which aims at earning a good profit. Banks must deploy their
funds in such manner, so as to earn profits out of which to pay interest to the depositors and to
meet the establishment charges. But the banks should not sacrifice the other principles of sound
lending for the sake of profitability.
1. Home Loan:-
Getting home loans to purchase a house at our projects is an absolutely hassle-free endeavor. The
company today has become a trusted entity for all Banking Institutions and Housing Finance
Companies. Since the banks support only genuine ventures with clear titles, getting home loans
to purchase a house at our projects is an absolutely easy job.
Our growing list of satisfied customers, who secured home loans to purchase houses in our
projects, stands proof for this.
We have also associated with some banking institutions for home loans; the executives from the
Banking Institutions will come and assist you in getting a home loan sanctioned within a short
time.
Guarantors:
Some institutions ask for 1 or 2 guarantors, others require no guarantors at all.
Rate of Interest:
Interest rates are different from institution to institution and generally range from about 8.5% to
around 16%. The interest on home loans in India is usually calculated either on monthly
diminishing or yearly diminishing balance method. The interest rates have two options - Floating
rate of interest and fixed rate of interest.
Monthly diminishing:
In this system the principal on which you pay interest diminishes every month as you pay your
EMI.
Annual diminishing:
In this system the principal is reduced at the end of the year, thus you continue to pay interest on
a certain portion of the principal which you have actually paid back to the lender. Which means
the EMI for the monthly diminishing system is effectively lesser than the second system of
calculating interest.
Floating rate Interest:
In this option the interest rate varies from time to time depending on prevailing interest rates in
the market.
Fixed rate of Interest:
In this option the interest rate is fixed till the total loan amount is repaid.
Loan amounts vary from institution to institution and usually range from Rs.1 lakh to 1 crore.
Repayment period options range generally from 5 to 15 years.
For loan sanction:
Salaried Customers Self Employed Professionals
Self Employed Non Professional
Application form with photograph duly signed by all applicants
Identity, residence and age proof
PAN card copy of the main applicant
Last 3 months Salary-slips
Education qualification certificate and proof of business existence
Form 16 / Income Tax Returns
Last 3 years Income Tax Returns with computation of Income Business profile
Fees:
upto 1.50% of the loan amount applied for and will be collected
Processing Fee
at the time of application.
Documents required at the time of Application
Application form duly filled in along with the processing fee cheque.
Bank statement for the last 3 months, which is not older than 28 days from
The date of login. At least 3 Salary credits to be evidenced in the
Bank Statement.
Bank Account Statements for all applicants for the last 3 months.
6 months in case of self employed businessmen & professionals.
(From where PDCs will be issued).
Credit Card Statements of all applicants for the latest month.
Loan account statements of all other existing loans.
Any other document that may be required by the bank.
Fee Cheque
Photo Identity Proof
Signature Verification Proof
Residence Address Proof
Property documents as required
Document specific for Salaried
Last 3 months Salary Slip
Form 16
Bank Statement for last 6 months from Salary Account
Repayment details on any existing loans / Loan closure letter
Document specific for Self Employed
Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss
Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for
business and personal of partners/directors)
Bank Statement for last 6 month from operating account
Repayment details on existing loans / Loan closure letter
Board Resolution in case of a company
Proof of existence of the business entity
Office Address Proof
Personal loan:-
Features and benefits
Borrow up to Rs 15,00,000 for any requirement like purchase of Consumer
Durables/marriage/Education/travel/family function/business expansion/home
improvement or purchase of property etc.
Flexible Repayment options, ranging from 12 to 60 months.
Choice of Repayment through PDCs, ECS or Standing Instructions.
Low Interest Rates.
Hassle free loans - No security/collateral required.
Speedy loan approval.
Convenience of service at your doorstep.
Salaried Individuals
Eligibility criteria
Minimum age of Applicant: 23 years
Total of 3 year's overall work experience
Net Salary of Rs 1,80,000 per annum
Documents required
Latest passport size photograph
Latest 2 months salary slip
Appointment letter/s or Form 16 as proof of experience
Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card)
*ID proof /signature verification to be done by Banker if the none of the above is
available Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving
License etc) Latest 6 months bank statement with Salary Credits
Self employed professionals and Non Professionals
Eligibility criteria
Minimum age of Applicant: 23 years and 25 years for Non Professionals
Minimum three years' experience in their current business
Minimum Gross Annual Income of Rs 1,50,000
Documents required
Latest passport size photograph
Latest 2 years ITR with computation of Income, CA certified P& L , Balance Sheet
Firm’s/Company’s Financials, Board Resloution, Partnership deed, copy of MOA and
AOA wherever applicable
Proof of Business- ITRs/ License under Shops and Establishment Act/ Sales Tax
Receipt/Import
Export Code from RBI
Proof of Age and Identity* (Passport Copy/ Voters ID card/ Driving License/Pan card)
*ID proof /signature verification to be done by Banker if the none of the above is
available
Address Proof (Ration card/ Tel/elect. Bill/ Rental agr. / Passport copy/Driving License
45 CITY ENGINEERING COLLEGE
CONSUMER FINANCE [ING VYSYA BANK LTD]
etc)
Latest 6 months bank statement
If you have a Personal Loan from any other Bank/Financier , You can save substantially by
transferring the Loan to us.
Top Up Loans
If you are an existing IVBL Personal Loan customer You can avail additional Loan at
attractive interest rates based on your payment track.
If you are an existing Savings Account/Current Account customer you can avail a Personal
Loan from us based on relationship.
AUTO LOANS
Turn your dream into reality. Own that new car you have always desired, with a little help from
us. We offer loans up to 90% of the ex-showroom price of the car. Our interest rates would
pleasantly surprise you. What's more, you can take up to 5 years to repay the loan.
Worried about paperwork? Relax. The process for getting a loan involves only a few simple
steps and we will tailor-make the loan to suit your needs.
Salaried Individuals
Eligibility Criteria:
Documents required:
Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated,
Recent, Legible)
Income Proof: - Latest salary slip with form 16.
Address Proof: - Ration card/Driving license/Voters card/passport copy/telephone bill/
electricity bill/Life insurance policy PAN Card.
Bank Statement:- Not mandatory
Self Employed
Eligibility Criteria:
Documents required:
Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving license( Laminated,
Recent, Legible)
Income Proof:- Latest ITR
Address Proof:- Ration card/Driving license/Voters card/passport copy/telephone bill/
electricity bill/Life insurance policy PAN Card
Bank Statement: - Waived for small cars, for mid - sized and premium cars if income Is
greater than Rs. 1.5 lacks then bank statement requirement can be waived.
Partnership Firms
Eligibility Criteria:
Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a. for
mid-sized and premium cars
Minimum turnover: Turnover Rs. 4.5 lacks
Telephone: One phone at least at business and at residence of the loan executing partner
Documents required:
Proof of Identity:- NA
Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years and
the latest 2 years IT returns of the company
Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act
certificate/SSI registered certificate/Sales Tax certificate
Bank Statement:- Waived for small cars, for mid - sized and premium cars if income Is
greater than Rs 1.5 lacks then bank statement requirement can be waived
EX-Showroom pricing: ING VYSYA BANK provides up to 90% of loans for new cars.
Fees and Charges:
Processing Fees: Up to Rs.5, 000 + service tax.
Foreclosure charges: 5%
Tenors: 5years
Min. loan amount: Rs.1, 00,000
Max. loan amount: Rs.15,00,000
Findings:
The ING VYSYA Bank Ltd provides various types of Loans and Advances like personal
loan, housing loan, car loan, home equity loan, CLAP etc.
All the above stated loans come with certain attractive interest rates, service charges and
margin. ING VYSYA BANK provides loan after the individual satisfies all requirements
like, his eligibility and appropriate purpose etc., certain required papers like proof of
identity, proof of income; proof of residence, bank statement should be for granting the
loan.
Personal segment advances was a high priority because it offers sustained credit growth
With a view to build customer friendly features into housing loan products and to bring
about a fair amount of flexibility in key terms and conditions of the scheme a new product
Special counters for sanction of education loan were setup in important study centre in order
The bank is actively participating in increasing credit linkage to Self Help Group.
Conclusion
From the above summary of findings, the following conclusions are drawn:
The loans and advances and also the interest received have increased, thus it shows good
The public are satisfied and happy with loans and are also willing to borrow from the
bank.
The overall performance of the bank is good when looked into various other items,
Unnecessary operating expenses. The borrower can choose either fixed or fluctuating
The sanctioning of loans at least one month’s time, this may reduce the number of
From the different advances made to priority sector in past three years from which it can
be concluded that the bank is more focusing on agricultural and personal loan.
Considering the analysis and other details the following suggestions can be given.
The bank should try to sanction the applied loan amount by less than one month’s time,
so that it will increase its income as well as a good morale of the bank in the minds of
the people
.
The bank can provide loans at attractive and cheaper rates when compared to the other
public and private sector banks.
The bank can provide the borrowers with flexible EMI and interest rates.
The managers in all ING VYSYA Bank branches have to be made responsible for
recovery so that the bank never makes loss.
The newly introduction loan and deposit schemes should be made aware to the public
so that they come forward to borrow the loans.
The profits of the bank can be raised by more effectively utilization of assets and by
reducing the expenses.
ANNXERUES:-
LIST AXIS HDFC ICICI IDBI STAND SBI CITI DEUTS PNB
OF BANK BANK BANK BANK ARD BANK CHE
CHART BANK
BANK
ERED
S
FOR
HOME
LOAN
MIN RS.1lak RS.1lak RS.2lak RS.1lak RS.1lak RS.1lak RS.1l RS.2lak RS.1lakh
LOAN h h h h h h akh h
MAX RS.50la RS.1cro RS.1cro RS.75la RS.5cro RS.5cro RS.7. RS.5cro RS.1cror
LOAN kh re re kh re re 5cror re e
e
AGE 25- 24- 254- 25- 23- 25- 24- 23- 25-
NORM 55year 55year 65year 65year 65year 55year 65ye 65year 55years
S s s s s s s ars s
FOIR 45%- 50% 60% 45% 40% 35%- 55% 50%- 60%
50% 40% 60%
TENNU 25year 25year 25year 25year 25year 25year 25ye 25year 2
RE s s s s s s ars s
5YEARS
PROCE 1% 0.50% 0.5% 0.5% of 0.5%- 0.5% of 1% of 1% of 0.50%
SSING +servic loan 1.5% loan loan loan
FEE e tax amoun depend amoun amou amoun
t ing on t nt t
loan
FOREC 2% 1.50% 2% 2% 2% 1% 2% 2.50% 2%
LOSUR %
E
CHARG
ES
PART 25% of 50% of 4 times 25% of 6 times 40% of 75% of
PAYME loan princip in a princip in a princip principal
NT amoun al financi al financi al
CHARG t al year al years
ES
RATE
OF
INTERE
ST
SALARI 9.25% 9.75% 9.50% 9.50% 10% 8.5%fo 9.75 9.75% 10.50%
ED r the 1st %
year
SEP 9.50% 10% 9.75% 10% 10.25% 9.25% 10% 10.25% 10.50%
for 2nd
& 3rd
year
SENP 9.50% 10% 9.75% 10% 10.50% 9.75% 10.25% 10.50%
from
4th year
onward
s
GRP no no RS.1,50 no no no no no no
FOR ,000.pa
SEP .
MIN
INCO
ME
CRITER
IA
SALARI RS.1,40 RS.1,20 RS.18,0 RS.1,50 RS.15,0 RS.1,40 RS.1, RS.5,00 RS.1,20,
ED ,000.p. ,000.p. 00.p.m ,000.p. 00.p.m ,000.p. 00,00 ,000.p. 000.p.a
a a a a 0 or a
abov
e
SEP RS.1,40 RS.20,0 RS.1,50 RS.1,50 RS.2,00 RS.1,40 RS.1, RS.5,00 RS.1,50,
,000.p. 00.p.m ,000.p. ,000.p. ,000.p. ,000.p. 00,00 ,000.p. 000.p.a
a a a a a 0 or a
abov
e
SENP RS.1,40 RS.20,0 RS.1,50 RS.1,50 RS.2,00 RS.1,40 RS.1, RS.5,00 RS.1,50,
,000.p. 00.p.m ,000.p. ,000.p. ,000.p. ,000.p. 00,00 ,000.p. 000.p.a
a a a a a 0 or a
abov
e
NO no no no no no no no no no
INCO
ME
PROOF
LAND no yes yes yes no yes yes no yes
LOAN
MAX 80% 85% 85% 90% 90% 80-85% 75%- 80% 80%
LTV 80%
Provisions
Total liabilities 33,880 31,857 6%
Cash inter bank etc 3,027 2,282 33%
Investment 10,473 10,496 0%
Advances 18,507 16,751 10%
Fixed & other assets 1,873 2,329 20%
Total Assets 33,880 31,857 6%
BIBLOGRAPHY
Sl.no. Author Name Book Name Edition Contents Year of
Publication
1 Shashi.K.Gupta Financial Kalyani Theoretical 2004
Management Publication, background
New Delhi of the topic
2 C.R.Kothari Research Vishwa Design of 2002
Methodology Prakashan the study
Methods and
Techniques
57 CITY ENGINEERING COLLEGE
CONSUMER FINANCE [ING VYSYA BANK LTD]
Reports:
WIBILIOGRAPHY: