3.2 company profile

Over view

ING Vysya Bank Ltd is a premier private sector bank with retail, private and wholesale

banking platforms that serve over two million customers. With 80 years of history in India and

leveraging ING’s global financial expertise, the bank offers a broad range of innovative and

established products and services, across its 527 branches. The bank, which has close to 10,000

employees, is also listed in Bombay Stock Exchange Limited and National Stock Exchange of

India Limited. ING Vysya Bank was ranked among top 5 Most Trusted Brands among private

sector banks in India in the Economic Times Brand Equity – Neilsen survey 2011.

The bank was formed from the 2002 acquisition of an equity stake in Indian Vysya Bank

by the Dutch ING Group. This merger marked the first between an Indian bank and a foreign

bank. Prior to this transaction, Vysya Bank had a seven-year old strategic alliance with erstwhile

Belgian bank Banque Bruxelles Lambert, which was also acquired by ING Group in 1998.

About ING Group

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

insurance and retirement services.

More than 84,000 ING employees server over 61 million private, corporate and

institutional customers in over 40 countries in Europe, North America, Latin America, Asia and

Australia.

We draw on our experience and expertise, our commitment to excellent service and our

global scale to meet the needs of a broad customer base, comprising individuals, families, small,

businesses, large corporations, institutions and governments.

Awards and Recognition

ING Vysya Bank was awarded the 'Safest Banker' by The New Indian Express, one of

India's premier publications, at The Sunday Standard FINWIZ 2012 - Best Bankers’ Award.

ING was included in the 2011 DJSI World Index - the longest-running global

sustainability benchmarks worldwide and the FTSE4Good which is designed to measure the

performance of companies that meet globally recognized corporate responsibility standards.

We were ranked among the top 5 Private Sector Banks in the country by Economic

Times Brand Equity - Most Trusted Banks Survey 2011 under 'Trusted Brands' category.

ING Converge, our On-Line Internet Banking Platform/Portal, was chosen as the 'Best

Corporate Internet Banking Initiative, 2012' across Asia by the Asian Banker Technology

Awards 2011, amongst 50 banks from 14 countries.

We were rated as the 'Top Rupee Forecaster' (against US Dollar) for the trailing six

quarters finding December 2011 by Bloomberg in their rankings done across several Asian

currencies and market players.

Our Wholesale Banking Unit was ranked 12th in the Underwriter Ranking of the

Bloomberg League Table covering 'All India Private Placement of Bond Issuances'.

ING Inwards, an innovative solution that helps large corporations manage receivables

across multiple geographies and partners, won the CIO 100 award for the 3rd consecutive year in

2011.

CIOL 2011 award for Corporate and Business Banking Portal, Debt Capital Markets

(DCM business has been ranked among the top 15 banks in India in its first year of operations,

buoyed by some high-profile transactions in the bond markets).

ING Vysya Bank's Financial Inclusion Initiatives

Rural India accounts for roughly 70% of the population located in 6, 37,000 villages

across the country. Out of the 89.30 million farmer households 45.9 million do not have access

to credit either from the institutional or non institutional sources (NSSO 2008). Though the

banking industry has shown tremendous growth during the last few decades in all areas relating

to financial viability, profitability and competiveness, there are concerns that banks have not

been able to include certain segments of the population, especially the under-privileged sections

of society, into the fold of basic banking services. The financially excluded sections of society

also include the urban slum dwellers and migrant workers in urban areas. This has been an area

of concern and focus of the Government and Reserve Bank of India (RBI).

Several initiatives have been underway to empower the marginalized sections through

awareness and education and access to basic banking services such as savings, credit and

insurance. However data collated through various surveys indicate that for every 100 adult

persons there are only 17 credit accounts and 54 savings accounts with all the financial

institutions put together (June 2007), thereby highlighting the need for more concerted efforts

from the Government, Regulators and the Banks towards ensuring financial inclusion.

The term 'Financial inclusion' (FI) is defined as including the excluded sections of

disadvantaged and low income groups into the formal financial sectors by delivery of banking

services at an affordable cost. The services offered under FI constitute 'no frills' accounts, access

to savings products, providing easy and right quantum of credit at affordable interest rates,

insurance etc.

Our bank has drawn a three year plan to achieve Financial Inclusion objectives and has

taken up several steps in this regard. The highlights of these are:

We are providing Banking Services in 295 villages across the country

As on September 2010, the Bank has opened 84000 No Frill accounts.

Covered 6.27 lac persons under financial inclusion

Bank provides banking facilities to 12000 SHGs with credit facilities of Rs.100 crores

Our bank has been associated with Basaveswara Vidya Vardhaka Sangha, a registered

Society with over 100 years of existence. Sangha has a chain of institutes numbering over

120 covering all fields of education and established RUDSETI at Bagalkot with objective

to identify, orient, train, counsel, assist young people and to motivate and empower them

to take up self-employment venture by providing all the needed assistance. Since

inception 13000 candidates have been trained, out of which 8000 were women and

10,000 candidates were settled / linked with finance by various banks in the district

Bank has also devised various products for financial inclusion, namely:

General credit Card Scheme.

DIR scheme

Self Help Group (SHG) finance

Kisan Credit Card

Zero Balance No Frill Accounts with OD facility

BC No Frill Accounts ( Payment to NREGP/SSP Beneficiaries)

Bank has adopted the Business Correspondent Model for extending the services in rural

areas and deepening financial inclusion in the unbanked areas in AP and Karnataka State.

Presently we have two BCs for disbursing amounts to NREGP & SSP beneficiaries. The

achievements so far in this regard are:

Enrolled over 130446 beneficiaries

Opened over 99631 accounts

Issued 99631 Smart Cards

Disbursed Rs. 26 Crs. to 36148 beneficiaries in AP

Other initiatives:

The Bank has its Competence Development Centre at Bangalore, where importance of

Financial Inclusion is emphasized in all other Training programmes held. The Bank also

proposes to roll out a a separate Module on Financial Inclusion.

Bank's Financial Inclusion Plan (FIP) and the list of villages taken up for providing

banking services are displayed separately.

Ratings

ING FIXED DEPOSITS rated 'FAAA' by the National Rating Agency CRISIL, which

implies highest safety to customers.

ING Vysya Bank has been chosen as one of the most trusted brands amongst private

sector banks in the Economic Times Brand Equity – Most Trusted Brands Survey, 2011.

CRISIL ratings on ING Vysya’s debt instruments continue to centrally factor in

CRISIL’s belief that the Netherlands-based ING Groep NV (ING Groep, rated ‘A/Stable/A-1’ by

Standard & Poor’s) will continue to provide management, funding, and operational support to

ING Vysya. The ratings also factor in ING Vysya’s comfortable capitalisation and adequate

resource profile. These rating strengths are partially offset by ING Vysya’s average, albeit

improving, earnings profile and modest market position. (From CRISIL Report dated JUNE

2012).

Rs. 2 Billion Upper Tier II Bonds CRISIL AA/Stable (Reaffirmed)

Rs. 1 Billion Perpetual Tier I Bonds CRISIL AA/Stable (Reaffirmed)

Lower Tier II Bonds Aggregating Rs.8.0 Billion CRISIL AA/Stable (Reaffirmed)

Fixed Deposit Programme FAAA/Stable (Reaffirmed)

Rs. 80 Billion Certificate of Deposits CRISIL A1+ (Reaffirmed)

Fitch Ratings has affirmed India-based ING Vysya Bank's\ National Long-term rating at

'Fitch AA-(ind)' with a Stable Outlook. The bank's INR3.9bn lower Tier 2 subordinated debt has

also been affirmed at 'Fitch AA-(ind)'. The ratings reflect ING Vysya's comfortable capital

position, adequate funding profile, and improved asset quality. They also factor in the bank's

relatively weak profitability compared with peers, regional concentration, and small market

share.

The bank's lower tier 2 subordinated bonds have been rated at the same level as its

National Long-Term rating based on Fitch's "Criteria for Indian National Ratings of Bank

Hybrids and Subordinated Debt", dated 18 January 2010. (From Fitch Ratings Report dated

DECEMBER 2011).

Our Team

Shailendra Bhandari - Managing Director & CEO

Arun Thiagarajan - Part-time Chairman & Independent Director

Sanjeev Aga - Independent Director

Richard Cox – Director

Santosh Ramesh Desai - Independent Director

M Damodaran – Director

Vaughn Nigel Richtor – Director

Peter Henri Maria Staal – Director

Lars Kramer – Director

Vikram Talwar - Independent Director

Mark Edwin Newman – Director

List of Executive Management Council (updated as of 05.02.13)

Names Designation

Shailendra Bhandari, Chairman Managing Director & CEO

Jayant Mehrotra Chief Financial Officer

Janak Desai Country Head - Wholesale Banking

J M Prasad Chief- Human Resources

Brett MorganCountry Head - Branch Banking, Marketing &

Private Clients

Mahesh Dayani Country Head - Retail Assets

Susan Poot Chief Risk Officer and Chief Compliance Officer

B.Ashok Rao Chief Auditor

Meenakshi A Head - Operations

Prasad C V G, Invitee Chief Information Officer

Corporate Statement

ING vysya Bank will be an entrepreneurial integrated financial services institution where

innovation and transformation are the way of life.

Corporate Social Responsibility

ING Vysya bank has always been committed to making a positive contribution to

Society. Promoting education for under-served children is one such cause which has been very

close to the bank. Through the ING Vysya Foundation, it seeks to provide less advantaged

children an opportunity to secure a better future by providing them with education.

Born out of three business entities of ING in India, ING Vysya Bank, ING Life

Insurance, and ING Investment Management, the Foundation has been able to strike the right

balance between supporting organizations financially and contributing time and effort of the

employees to nurture and mentor these children, for a better future.

ING Vysya Foundation commenced its activities in December 2004 with a water-

harvesting project in the Udaipur and Rajasmand districts of Rajasthan, North India. The

initiative provided villagers with access to clean water and recharged ground-water wells which

in turn support the local agricultural industry.

The Foundation has also been actively involved in relief efforts following the Tsunami

that hit the South Indian coast on 26 December 2004. In cooperation with the regional

headquarters of ING at Hong Kong, ING Vysya Foundation supported a number of projects,

including the rebuilding of homes and schools, and other facilities for a number of villages.

Another project included the micro-financing for 40 fishing boats and the attendant equipment

for the villages of Mudaliyarkuppam and Arcotuthurai, in Tamilnadu.

As part of the ING Chances for Children programme, the Foundation signed a five-year

agreement to support 100 orphans' living and schooling expenses. Additional funds, set up

enabled of a day-care centre with training facilities which is used by the community at large.

Other initiatives include ING Investment Management's auctions of paintings drawn by

street children for the NGO Pratham and ING Vysya Bank's 'Run Ricky Run' in which the bank

sent a child back to school for each run the Australian cricket captain Ricky Ponting scored in

international one-day matches during a one-year period ending September 2008.

Today, Foundation partners with thirteen local charity organizations in India. It helps

children to be in the primary schools to realize their right to education as the first step towards

breaking the cycle of poverty.

The Foundation depends on voluntary contributions for all its activities. The Foundation

runs an annual fund raising campaign to help garner support from employees of its three entities

for the cause. To make a contribution, please contact Joyatri.r@ingvysyabank.com or visit

www.ingvysyafoundation.com.

Board of Trustee

Mr. Jayant Mehrotra, Chief Financial Officer, ING Vysya Bank 

Mr. J M Prasad, Chief Human Resource, ING Vysya Bank 

Mr. Appa Rao, Company Secretary, ING Vysya Bank 

Ashok Rao B, Chief Auditor, ING Vysya Bank

 

Current Operations

ING Vysya Bank has over 80 years of operating experience in the banking/financial services & insurance sector and

currently serves over 2 million Indian consumers. The bank offers an entire range of financial products and services,

organized under three strategic lines of business: retail, private and wholesale banking.[15]

Retail Banking[edit]

With 527 branches and 10 counters, 28 satellite offices and 470 ATM's nationwide, ING Vysya's retail operation offers

checking accounts, savings deposits/CD's, retail wealth management services, consumer loans, agricultural/rural

banking and retail life insurance products. The bank has rapidly expanded its distribution footprint and has created a

national brand presence through several innovative marketing campaigns.[16]

Private Banking[edit]

ING Vysya's private bank operates on an advisory-driven model. Specialized market research remains the bank's

focus for the introduction of new tailored products to serve the high-end private banking segment.

Corporate/Wholesale Banking[edit]

The wholesale banking business provides corporate clients in India a range of commercial, transactional and

electronic banking products. The bank offers client focused products including working capital finance, trade and

transactional services, foreign exchange, term loans and cash management services.[17] The wholesale banking

business comprises four business sub-segments and multiple product offerings. The business segments Corporate

and Investment Banking, Emerging Corporates, Banking and Financial Institutions and financial markets.[18]

Agriculture and Rural Banking[edit]

Agriculture and Rural Banking deals with all business related to agriculture and allied activities, Gold Loans, loans to

SHGs and lending to government sponsored schemes. Working Capital and Agriculture Term Loans for Poultry, Dairy,

Cold storage units etc. are also being offered to cater diverse needs of the farming community. The Bank has

accelerated retail agricultural lending at a few places in North India and Central India especially in Rajasthan,

Uttarakhand, Maharashtra, Gujarat and Madhya Pradesh.