Summer Internship Report ING Vysya Bank

ACKNOWLEDGEMENT

This report has been made possible through support of various people for whom I wish to

express my appreciation and gratitude.

Human being cannot survive in isolation. I owe my sincere and whole hearted thanks to

Mrs. Pooja Kharbanda (BOSH) for constantly guiding me and tackling variety of

problems with implicit patience throughout my research. I would also like to thank the

other members of branch, whose deep concern and interest in project inculcated in me

great inspiration and confidence in taking up this study in right direction. Without their

overall guidance and help the project may not have been completed.

I would also like to express my deep sense of gratitude to my faculty guide Ms. Chand

for her expert guidance, stimulating discussions and constant support throughout the

project.

Finally I am thankful to my family and friends for their support and motivation

throughout.

CONTENTS

Page No.

Introduction 1

Literature Review 4

Research Methodology 6

Data Analysis and Interpretation 11

Findings and Recommendations 66

Conclusion 67

Annexure 69

ii

List of Tables

Page No.

Table 1- Distribution of Products/Services Used 14

Table 2- Satisfaction level 15

Table 3- Awareness about ING Vysya Bank 17

Table 4- Sources of awareness of ING Vysya 18

Table 5- Distribution of General impression/perception about ING Vysya Bank 19

Table 6- Association with ING Vysya Bank 21

Table 7- Bifurcation of Banking services preferred 22

Table 8- Distribution of different forms of investment used by customers 23

Table 9- Summary of the objective of investment 24

Table 10- Division of respondents according to the risk profile 25

Table 11- Distribution of Insurance Policyholders 26

Table 12-Distribution of respondents having Insurance Policies of various Co.’s 27

iii

Table 13- Bifurcation of amount of premium respondents are willing to pay 28

Table 14- Satisfaction level with features of policies of ING 29

Table 15- Management of Mutual Funds at a single point 30

Table 16- Income of respondents 31

Table 17- Age group 32

Table 18- Risk Profile and Age group 34

Table 19- Savings A/C used and Age group 36

Table 20- Mutual Fund Investors and Age group 37

Table 21- Current A/C holders and Age 38

Table 22- Fixed Deposit holders and Age Group 40

Table 23- Life Insurance takers and Age group 41

Table 24- Locker Users and Age group 42

Table 25- Loan takers and Age group 44

Table 26- Capital Protection as objective of investment and Age group 46

Table 27- Capital Growth as objective of investment and Age group 47

Table 28- Income as objective of investment and Age group 49

iv

Table 29- Educational Provision as objective of investment and Age group 50

Table 30- Retirement Provision as objective of investment and Age group 51

Table 31- Capital Protection as objective of investment and Income group 53

Table 32- Capital Growth as objective of investment and Income group 54

Table 33- Income as objective of investment and Income group 56

Table 34- Educational Provision as objective of investment and Income group 57

Table 35- Retirement Provision as objective of investment and Income group 59

v

List of Charts

Page No.

Chart 1- Current Bank Users 13

Chart 2- Chart showing the products/services used 14

Chart 3- Satisfaction level of respondents with existing bank 16

Chart 4- Awareness level of ING Vysya Bank 17

Chart 5- Media of Awareness 18

Chart 6- Perception about ING Vysya Bank 20

Chart 7- Existing Customers of ING Vysya Bank 21

Chart 8- Kind of Banking Services Preferred 22

Chart 9- Forms of Investment 23

Chart 10- Objective of investment 24

Chart 11- Type of risk profile of respondents 25

Chart 12- Insurance Policyholders 26

vi

Chart 13-Distribution of respondents having Insurance Policies of various Co.’s 27

Chart 14- Amount of premium respondents are willing to pay 28

Chart 15- Satisfaction level with features of policies of ING 29

Chart 16- Management of Mutual Fund at a single point 30

Chart 17- Income Group 31

Chart 18- Age group 32

Chart 19- Risk profile and age group 35

Chart 20- Savings A/C usage and Age group 36

Chart 21- Mutual Fund Investors and Age group 38

Chart 22- Current A/C holders and Age group 39

Chart 23- Fixed Deposit holders and Age group 40

Chart 24- Life Insurance Takers and Age group 42

Chart 25- Locker users and Age group 43

Chart 26- Loan takers and Age group 45

Chart 27- Capital Protection as objective of investment and Age group 47

Chart 28- Capital Growth as objective of investment and Age group 48

vii

Chart 29- Income as objective of Investment and Age group 49

Chart 30- Educational Provision as objective of investment and Age group 51

Chart 31- Retirement Provision as objective of investment and Age group 52

Chart 32- Capital Protection as objective of investment and Income group 54

Chart 33- Capital Gsrowth as objective of investment and Income group 55

Chart 34- Income as objective of investment and Income group 57

Chart 35- Educational Provision as objective of investment and Income group 58

Chart 36- Retirement Provision as objective of investment and Income group 60

Chart 37- Return on Capital Employed 62

Chart 38- Return on Assets 62

Chart 39- Asset Turnover Ratio 63

Chart 40- Current Ratio 64

Chart 41- Quick Ratio 65

viii

INTRODUCTION

In the present project “An Analysis of Customer Perception about ING Vysya Bank” I

have tried to unravel the perception and awareness level of consumers regarding ING. I

have also tried to study the various policies and the accounts offered by ING Vysya

Bank. A study of the risk profile of consumers and the type of facilities that they prefer to

avail from their bank has also been done. Also through this project the various forms of

money in which the investors want to invest their money and the objective of their

investment has been known. An effort has also been made to know the amount of

premium an investor is willing to pay for an insurance policy. Besides this the data about

current bank of respondents as well as the facilities that they are availing of their current

bank has been collected.

This project also consists of analysis of the performance of ING Vysya Bank in the last

five years based on calculation of certain ratios. Also some predictions for the year 2012

and 2013 have been made.

Besides these some recommendations for ING have been given which would help the

company to improve its relations with its customers and so as to withstand the fierce

competition from its competitors.

COMPANY PROFILE

ING is a global financial institution of Dutch origin offering banking, insurance and asset

management to over 60 million private, corporate and institutional clients in more than 50

countries. With a diverse workforce of over 114,000 people, ING comprises a broad

spectrum of prominent companies that increasingly serve their clients under the ING

brand.

ING Vysya Bank Limited, is an Indian retail bank, formed after the global financial

institution ING acquired a 44% stake in Vysya Bank Ltd in October 2002, and took over

management of the bank.

On the other hand, ING group originated in 1990 from the merger between Nationale –

Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV.

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 N.V.”.

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.

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 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

http://en.wikipedia.org/wiki/ING_Group

http://ingvysyabank.com/index.aspx

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 Vysya offers a large range of products from banking to insurance to wealth

management. In banking it offers various kinds of accounts depending on the needs of

customers. The types of accounts offered by ING are Orange Savings Account, Formula

Savings Account, Platina Savings Account and in case of current accounts it has Orange

Current Account, Advantage Current Account, General Current Account, Comfort

Current Account and Platina Current Account. Besides this bank also has locker facilities

at most of its branches.

In case of insurance the company has traditional as well as Unit Linked Plans. The

various insurance policies of the company are available to meet the needs of all

customers be it for kids, elders or retired people the company has a wide range. Creating

Life is one of the most popular traditional insurance plan. Easy Life is a ULIP plan and

Freedom Life is a pension plans. Besides these many other plans such as reassuring life,

Creating Star are some other plans offered by the company.

LITERATURE REVIEW

Recently many researchers have shown interest in the field of banking and the customer

perception in this regard. They have carried out numerous studies and observations using

various statistical and scientific tools to illuminate the darkness of this field. Their

findings and suggestions are reviewed here. Some of these are related to the ING Vysya

Bank and some are not.

Mr. Rajesh Chakrabarti in the year 2005 in his report titled Banking in India – Reforms

and Reorganization discussed about the transformation that is going about in the banking

industry in India. According to his report the performance of the banks has improved

slightly over time. The banking sector as a whole and particularly the public sector banks

still suffer from considerable NPAs, but the situation has improved over time. New legal

developments like the SARFAESI Act provide new options to banks in their struggle

against NPAs. Over time, the Indian banking industry has become more competitive and

less concentrated. The new private sector banks have been the most efficient according to

the findings of his report.

Dr. Hema Bhalakrishnan carried out a research on the topic “A Study on Customer

Perception in Banking Industry Using Gap Analysis” in the year 1999. The objectives of

this study were to evaluate the different factors considered by the investors while making

investments, to study the services provided by Private Sector and Public Sector banks and

the performance of it and to analyze the service facilities those are being effectively

utilized by customers. This study concluded that easy access is the considered as the most

important factor as compared to others and also that the customers’ expectations from

ICICI bank are more as compared to some other public and private banks.

Another research was carried on by Mr. Vipul in the year 2009. The project was on

Citibank titled as “Project on Financial Services of Citi Bank.” The main objectives of

this project were to study the consumers’ perceptions about various banks, to know the

level of awareness among consumers about Citibank, to collect various suggestions from

consumers to make Citibank better one, to identify the key factors of consumer

satisfaction in this industry and to have a comparative analysis of the customer

satisfaction level for the various banks.. The research had main findings that most of

people like to have their account with ICICI bank and also people felt the need of more

ATM’s of Citibank in North Delhi.

Mr. Vikash Kumar Mishra carried a project study on “The environmental factors

responsible for IDBI Bank’s performance (Positively& Negatively) in SAKET” in the

year 2008 To know about environmental factors affecting IDBI Bank’s performance.

The objectives of this study were to analyze the role of advertisement for bank

performance, to know the perception and conception of customers towards

banking products and specially focused for IDBI Bank’s product and to explore the

potential areas for the new bank branches. The key findings of this study were that

credibility of IDBI bank is good in comparison to its competitors as GOI (Government of

India) is a major share holder in the company, IDBI bank has tapped a good market share

in Saket region and hence has opportunities for growth and the network of IDBI in Saket

is lagging behind a little than its competitors like ICICI bank and HDFC bank

Mr. Ashutosh in the year 2008 another survey titled as “HDFC Bank - Customer

Satisfaction Levels”. The study focused on measurement of customer satisfaction related

to services offered by HDFC Bank. The study also included rating of the products of

HDFC Bank and also the rating of overall experience. Besides this overall satisfaction

level of customers was also found out. The main results of this survey were that most of

the customers of HDFC Bank are loyal and they recommend the products of bank to

others. Also 63% of the customers of the bank are satisfied with its services and products.

In all these projects the objective of the projects have mainly been to study about the

perception and awareness level of customers however in case of my present project the

objectives are also to get an idea about the various products/services used by the

respondents and to know their interest level to get associated with ING Vysya bank.

RESEARCH METHODOLOGY

Research Objectives

To know the level of awareness among customers about ING Vysya Bank.

To know the interest level of the customers to get associated with ING Vysya

Bank.

To study the customers’ perception about various products offered by ING

Vysya Bank.

To get an idea of the various banking products/services used by customers.

To study the performance of ING Vysya Bank over the past 5 years.

Research Methodology

Methodology includes a philosophically coherent collection of theories, concepts or ideas

as they relate to a particular discipline or field of inquiry.

Methodology refers to more than a simple set of methods; rather it refers to the rationale

and the philosophical assumptions that underlie a particular study relative to the scientific

method. This is why scholarly literature often includes a section on the methodology of

the researchers. This section does more than outline the researchers’ methods (as in, “We

conducted a survey of 50 people over a two-week period and subjected the results to

statistical analysis”, etc.); it might explain what the researchers’ ontological or

epistemological views are.

http://en.wikipedia.org/wiki/Epistemology

http://en.wikipedia.org/wiki/Ontology

http://en.wikipedia.org/wiki/Scientific_method

http://en.wikipedia.org/wiki/Scientific_method

http://en.wikipedia.org/wiki/Theories

The objective of this project has been to learn about the perception of consumers about

the various products offered by ING Vysya Bank. Also to see the awareness of customers

about the bank and its products. Besides this through this project an effort has also been

made to unveil the risk profile of consumers.

Research Design

It is a plan outlining how information is to be gathered for an assessment or evaluation

that includes identifying the data gathering method, the instruments to be used or created,

how the instruments will be administered, and how the information will be organized and

analyzed.

In the present research Quantitative Research methods have been used. Quantitative

marketing research is the application of quantitative research techniques to the field of

marketing. In the present project I have used questionnaires as a method for conducting

the primary research.

Research Instruments

The kind of research instruments one uses greatly helps in realizing the reliability and

validity of a research. In the present research I have used questionnaires as our research

instrument.

In the present research on ING Vysya Bank I have used “Structured Non-Disguised

Questionnaire”

Data Collection

Primary Data

In this project data have been collected from the sample of 108 people from various

walks of life, but basically I have focused on people from middle class, upper middle

class and elite class of the society.I came to know about the perceptions of consumers

regarding the policies of bank through a well designed questionnaire.

Secondary Data

In the project the information is collected from different sources about the bank and that

of its products from Annual Report of the company.

Sampling

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern, especially

for the purposes of statistical inference. Each observation measures one or more

properties (weight, location, etc.) of an observable entity enumerated to distinguish

objects or individuals. Survey weights often need to be applied to the data to adjust for

the sample design. Results from probability theory and statistical theory are employed to

guide practice.

In this research on “ING Vysya Bank” I have followed the following steps:

1. Target Population: The target population used for sample selection here is the

people who have Account with the bank.

2. Geographical Spread of the target population (Sampling Frame): The area of

research is North India. In north India also parts of Delhi were the areas for

primary data collection by way of Questionnaires.

3. Sampling Method Used: Here the Non- Probability Sampling methods which are

Convenience Sampling and Snowball Sampling have been used.

4. Sample size: the sample size is 108.

http://en.wikipedia.org/wiki/Statistical_theory

http://en.wikipedia.org/wiki/Probability_theory

http://en.wikipedia.org/wiki/Statistical_inference

http://en.wikipedia.org/wiki/Population_(statistics)

http://en.wikipedia.org/wiki/Statistical

Data Analysis Techniques Used

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data

with the goal of highlighting useful information, suggesting conclusions, and supporting

decision making. Data analysis has multiple facets and approaches, encompassing diverse

techniques under a variety of names, in different business, science, and social science

domains.

The various data analysis used in the present research is as follows:

Descriptive Data Analysis

Descriptive analysis is used to describe the basic features of the data in a study. They

provide simple summaries about the sample and the measures. Together with simple

graphics analysis, they form the basis of virtually every quantitative analysis of data.

Frequency Distribution have been used in the present project along with Cross tabs using

Chi square test have been done in the present project.

Software Used

For the better presentation and right explanation I used tools of statistics and computer

very frequently which I used for project from statistics are-

Bar Charts

Pie charts

Tables

Bar charts and pie charts are really useful tools for every research to show the result in a

well clear, ease and simple way. Because I used bar charts and pie charts in project for

showing data in a systematic way, so it need not necessary for any observer to read all the

http://en.wikipedia.org/wiki/Information

http://en.wikipedia.org/wiki/Data

theoretical detail, simple on seeing the charts any body could know that what is being

said.

MS- Excel- Above application software of Microsoft helped me a lot in making

project more interactive and productive. Microsoft-Excel had a great role in my project, it

created for me a situation of “you sit and get”. I provided it simply all the detail of data

and in return it given me all the relevant information. With the help of MS Excel the fifth

objective of the research has been fulfilled.

MS-Word- Microsoft-Word did help me for the documentation of the project in a

presentable form.

SPSS (originally, Statistical Package for the Social Sciences) has been used to analyse

the data. In the present project descriptive analysis has been used to fulfill the first four

objectives of research.

Chi-Square Test: Chi square test helps to find the significant relation between two

variables wherein the Null hypothesis is that there is no significant relationship

between two variables and the Alternate hypotheses is that there is significant

relationship between the two variables. If the value of alpha is less than 0.05 then

null hypotheses is rejected. In this project chi square test have been used with

cross tabs to find the significant relation between two variables.

DATA ANALYSIS AND INTERPRETATION

QUESTIONNAIRE ANALYSIS

Present Banker

Chart 1- Current Bank Users

Current Bank

2

11

12

13

2

4

1

4

9

2

15

13

3

1

3

1 1 1 1

2

3

1 1

2

0

2

4

6

8

10

12

14

16

1

Bank of Baroda

Axis Bank

HDFC Bank

ICICI Bank

IDBI Bank

Allahabad Bank

Canara Bank

Oriental Bank of Commerce

Punjab National Bank

Kotak Mahindra

ING Vysya

State Bank of India

Union Bank of India

Standard Chartered Bank

Punjab & Sind Bank

Vijaya Bank

HSBC

Citibank

J&K Bank

Indian Bank

Syndicate Bank

UCO Bank

Corporation Bank

State Bank of Bikaner

Source: Data collected through questionnaire

Chart 1 shows that in the primary research conducted on 108 respondents, maximum of

them used ING Vysya Bank as their current bank. 13.8% of the respondents use ING

Vysya Bank for their banking needs. This is followed by State Bank of India and ICICI

Bank with 12% of the respondents using it as their primary bank currently. HDFC Bank

is the third most widely used bank with 11.1% respondents using its services. This is

followed by Axis Bank with 10.1% using it. Punjab National Bank has 8.33% Allahabad

Bank and Oriental Bank of Commerce have 3.7% respondents each using its services.

Syndicate Bank, Punjab & Sind Bank and Union Bank of India have 2.78% respondents

each in their share. Banks like State Bank of Bikaner, Indian Bank, Kotak Mahindra,

IDBI and Bank of Baroda have 1.85% respondents each using it. Canara Bank, Citibank,

Standard Chartered Bank, HSBC, Vijaya Bank, J& K Bank, UCO Bank and Corporation

Bank have 0.93% respondents each using it.

Products/Services Availed from current bank

Table 1- Distribution of Products/Services Used

Savings

A/C

Mutual

Fund

Current

A/C

Fixed

Deposit

Life

Insurance

Locker Loan

108 13 7 32 19 19 9

Chart 2- Chart showing the products/services used

What products/services are you currently availing from your current bank

108

137

3219 19

9

0

20

40

60

80

100

120

SavingsA/C

MutualFund

CurrentA/C

FixedDeposit

LifeInsurance

Locker Loan

Source: Data collected through questionnaire.

Through Table 1 and Chart 2 it can be seen that out of the 108 respondents on whom

research was conducted all 108 respondents i.e. 100% availed Savings A/C in their

current banks. Next most widely used service being that of fixed deposits with 29.62%

respondents using this facility. 17.59% respondents each availed Locker Facility and Life

Insurance with their current bank. 12.03% respondents had Mutual Funds from their

current bank while 8.33% availed loan facility from their current bank and only 6.48%

respondents availed the current account facility. This shows that people mainly use the

Saving A/C and Fixed deposit facility from their primary banks.

Satisfaction Level from Existing Bank

Table 2- Satisfaction level

How happy you are with the services provided by your existing bank?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Highly Satisfied 30 27.5 27.8 27.8

Satisfied 65 59.6 60.2 88.0

Neither Satisfied nor

Dissatisfied

10 9.2 9.3 97.2

Dissatisfied 2 1.8 1.9 99.1

Highly Dissatisfied 1 .9 .9 100.0

Total 108 99.1 100.0

Missing System 1 .9

Total 109 100.0

Chart 3- Satisfaction level of respondents with existing bank


According to table 2 and chart 3, 60.18% of the total respondents are satisfied with their

current bank while 27.7% are highly satisfied from their current bank, only 1.85% are

dissatisfied while 0.92% people are highly dissatisfied. Whereas of the respondents

9.26% are such who are neither satisfied nor dissatisfied from the services provided by

their current bank.

Awareness of ING Vysya Bank before this survey

Table 3- Awareness about ING Vysya Bank

Before this survey, how often had you heard of ING Vysya Bank Ltd?


Cumulative

Percent

Valid I've never heard before 2 1.9 1.9 1.9

I’ve seen or heard a few

times

78 72.2 72.2 74.1

I see or hear frequently 28 25.9 25.9 100.0

Total 108 100.0 100.0

Chart 4- Awareness level of ING Vysya Bank


According to the responses in table 3 and chart 4, most of the respondents i.e. 72.2% had

seen or heard about the ING Vysya Bank a few times while 25.9% of respondents had

seen or heard about it frequently and only 1.9% had never heard about it which shows

that people are somewhat aware about ING Vysya Bank and so its advertisement is

effective to some extent.

Media from which heard about ING Vysya Bank

Table 4- Sources of awareness of ING Vysya

How did you come to know about ING Vysya Bank?


Cumulative

Percent

Valid Newspaper 26 24.1 24.1 24.1

Television 37 34.3 34.3 58.3

Word of Mouth 45 41.7 41.7 100.0

Total 108 100.0 100.0

Chart 5- Media of Awareness


From Table 4 and chart 5 it can be seen that most of the respondents 47.1% came to

know about ING Vysya Bank through Word of Mouth while 34.3% came to know about

it through television and remaining 24.1% through newspapers so in all a total of 58.4%

respondents came to know about ING Vysya Bank through either print media or

television which again shows the effectiveness of its advertisements. However Radio was

also one of the options in this question but the respondents for that option were nil.

General impressions/perception about ING Vysya Bank

Table 5- Distribution of General impression/perception about ING Vysya Bank

What are your general impressions of ING Vysya Bank?


Cumulative

Percent

Valid High quality services and

reliability

28 25.9 25.9 25.9

Average quality services and

dependability

79 73.1 73.1 99.1

Low quality services and

reliability

1 .9 .9 100.0

Total 108 100.0 100.0

Chart 6- Perception about ING Vysya Bank


From table 5 and chart 6 it can be analyzed that most of the respondents to this question

said that they have an impression that ING Vysya Bank is a bank which provides

Average Quality Services and Dependability. 73.1% respondents believed that ING

provides Average Quality Services and Dependability while 25.9% respondents believed

that ING Bank provides High Quality Services and Reliability and only 0.9% respondents

said that they had an impression that ING Bank provides Low Quality services and is not

reliable. This shows that most people think and have an impression that ING is a reliable

and dependable bank which is good for the bank as it has a positive image in the minds of

people.

Association with ING Vysya bank

Table 6- Association with ING Vysya Bank

Are you associated with ING Vysya Bank?


Cumulative

Percent

Valid Yes 24 22.2 22.2 22.2

No 84 77.8 77.8 100.0

Total 108 100.0 100.0

Chart 7- Existing Customers of ING Vysya Bank


From table 6 and chart 7 it shows that in this survey 22.2% people were associated with

ING Bank while 77.8% people were not associated with the bank.

Kind of banking services preferred

Table 7- Bifurcation of Banking services preferred

What kind of banking services you generally wish to use?


Cumulative

Percent

Valid High priority services 58 53.7 53.7 53.7

Normal Services 50 46.3 46.3 100.0

Total 108 100.0 100.0

Chart 8- Kind of Banking Services Preferred


The responses in table 7 and the analysis in chart 8 shows that 53.7% people prefer to use

high priority services while 46.3% people prefer using normal banking services. This

shows that in today’s busy life people prefer high priority services wherein their

requirement are fulfilled at a faster pace as compared to the normal services.

Forms of investment

Table 8- Distribution of different forms of investment used by customers

Fixed

Deposit

Equity Mutual

Fund

Gold Life Insurance Government

68 22 22 32 72 6

Chart 9- Forms of Investment

In which all forms do you invest money?

68

22

2232

72

6

Fixed Deposit

Equity

Mutual Fund

Gold

Life Insurance

Government


Through table 8 and chart 9 the various forms of money in which people invest money

was found. Most of the respondents i.e. 66.67% respondents invest their money in Life

Insurance followed by Fixed Deposits where 62.9% respondents invest their money. The

other form in which most people invest their money is Gold where 29.62% people invest.

In case of Equity and Mutual Funds 20.37% each is the percentage of respondents who

invest their money in this form. Government is the least favorite form of investment

according to this survey as only 5.5% respondents invest in this form. This shows that

traditional form of investments which are Fixed Deposit and Life Insurance are still the

most favorite options for people to invest their money.

Objective of your investment

Table 9- Summary of the objective of investment

Capital

Protection

Capital

Growth

Income Educational

Provision

Retirement

Provision

36 41 63 8 14

Chart 10- Objective of investment

36

41

63

8

14

0 10 20 30 40 50 60 70

Capital Protection

Capital Growth

Income

Educational Provision

Retirement Provision

What is the objective of your investment?


According to the responses as concluded in table 9 and chart 10 main objective of most of

people to invest their money is Income as 58.33% respondents gave this answer while

37.9% respondents said that their main objective of investment was Capital Growth and

33.33% respondents said that Capital protection was their objective of investment.

12.96% respondents said that their objective of investment is Retirement Provision and

only 7.4% respondents said that they invest their money with the objective of Educational

Provision. This shows that most of the people invest with the objective of getting some

income out of their investments.

Type of risk profile

Table 10- Division of respondents according to the risk profile

What type of risk profile describes you?


Cumulative

Percent

Valid High Risk Taker 13 12.0 12.0 12.0

Medium Risk Taker 64 59.3 59.3 71.3

Low Risk Taker 31 28.7 28.7 100.0

Total 108 100.0 100.0

Chart 11- Type of risk profile of respondents


Through table 10 and chart 11 the amount of risk respondents are willing to take can be

known. As per the responses to this question most of the respondents i.e. of this survey

i.e. 59.3% are medium risk takers and 28.7% are low risk takers whereas the remaining

12% are high risk takers. This shows that people are risk averse and do not prefer a high

amount of risk.

Insurance policy Holder of ING Vysya

Table 11- Distribution of Insurance Policyholders

Have you taken any insurance policy of ING Vysya?


Cumulative

Percent

Valid Yes 13 12.0 12.0 12.0

No 95 88.0 88.0 100.0

Total 108 100.0 100.0

Chart 12- Insurance Policyholders


From table 11 and chart 12, 88% of the respondents did not have an insurance policy of

ING Vysya Bank and only 12% had the insurance policy of ING Vysya Bank.

Insurance policy holders of other companies

Table 12-Distribution of respondents having Insurance Policies of various Co.’s

LIC ICICI Aviva Bajaj Allianz Tata

AIG

Birla

Sunlife

Kotak

Mahindra

91 36 14 12 6 7 4

Chart 13-Distribution of respondents having Insurance Policies of various Co.’s

Which Comapany's Insurance Policy do you have?

91

36

14 126 7 4

01020

3040506070

8090

100

LIC ICICI Aviva BajajAllianz

Tata AIG BirlaSunlife

KotakMahindra


Through table 12 and chart 13 it can be concluded that 84.25% people had Insurance

Policy offered by LIC, 33.33% had Insurance Policy of ICICI, 12.96% had Insurance

Policy offered by Aviva, 11.11% had policy of Bajaj Allianz, 6.48% had the policy of

Birla Sunlife, 5.56% had the policy of Tata AIG and 3.7% had the policy of Kotak

Mahindra. This result shows that even after 50 years LIC is still the trusted name for

people in case of Insurance Policy followed by ICICI and Aviva. It shows that Private

players have not been able to take away the share of LIC.

Amount of premium a person is willing to pay per year for an insurance policy

Table 13- Bifurcation of amount of premium respondents are willing to pay

What amount of premium are you willing to pay per year for an insurance policy?


Cumulative

Percent

Valid Below Rs 10000 24 22.2 22.2 22.2

Rs 10000- 20000 22 20.4 20.4 42.6

Rs 20000-30000 31 28.7 28.7 71.3

Rs 30000-40000 13 12.0 12.0 83.3

Rs 40000 and above 18 16.7 16.7 100.0

Total 108 100.0 100.0

Chart 14- Amount of premium respondents are willing to pay


From table 13 and chart 14 it can be seen that most of the people are willing to pay

premium in the range of Rs 20000- 30000 which has 28.7% respondents in its favour out

of the total respondents. Next closest amount of premium that respondents are willing to

pay is below Rs 10000 with 22.2% respondents in its favour and the range of premium

between Rs 10000-20000 has 20.4% in its favor. 16.7% people are willing to premium

above Rs 40000 and 12% are willing to pay premium in the range of Rs 30000-40000.

This shows that Rs 30000-40000 is the comfortable amount of premium which people are

willing to pay.

Level of Satisfaction with the features offered by policies of ING Vysya

Table 14- Satisfaction level with features of policies of ING

Are you satisfied with the features offered by policies of ING Vysya ?


Cumulative

Percent

Valid Yes 57 52.8 52.8 52.8

No 51 47.2 47.2 100.0

Total 108 100.0 100.0

Chart 15- Satisfaction level with features of policies of ING


From table 14 and chart 15, out of the total 108 respondents 52.8% are satisfied with the

features offered by policies of ING Vysya Bank while the remaining 47.2% are not

satisfied with its features. This shows that the policies of ING have good features

according to the responses and so the company can win many customers due to this plus

point.

Mutual Funds to be managed at a single point rather than scattered

Table 15- Management of Mutual Funds at a single point

If you invest in mutual funds more frequently, would you like all your funds to be

managed and controlled at a single point rather than scattered?


Cumulative

Percent

Valid Yes ofcourse 43 39.8 39.8 39.8

I am not sure 62 57.4 57.4 97.2

It's not possible 3 2.8 2.8 100.0

Total 108 100.0 100.0

Chart 16- Management of Mutual Fund at a single point


From table 15 and chart 16 it can be found that most of the respondents were not sure

whether the funds managed and controlled at a single point is a right thing or not as

57.4% people opted for this option while 39.8% respondents believed that they would

like all their funds to be managed and controlled at a single point rather than scattered

and only 2.8% said that its not possible to do so.

Income group

Table 16- Income of respondents

Which Income group do you fall in?


Cumulative

Percent

Valid Below Rs 300000 49 45.4 45.4 45.4

Rs 300000-500000 34 31.5 31.5 76.9

Above Rs 500000 25 23.1 23.1 100.0

Total 108 100.0 100.0

Chart 17- Income Group


Table 16 and chart 17 show that Majority of the respondents are from the income group

below 3 lacs which is 45.4% , 31.5% respondents are from the income group 3-5 lacs and

23.1% are from the income group of 5 lacs and above.

Age group

Table 17- Age group

Which age group do you fall in?


Cumulative

Percent

Valid 18-25 Years 42 38.9 38.9 38.9

25-35 Years 31 28.7 28.7 67.6

35-45 Years 14 13.0 13.0 80.6

45-55 Years 11 10.2 10.2 90.7

Above 55 Years 10 9.3 9.3 100.0

Total 108 100.0 100.0

Chart 18- Age group


From table 17 and chart 18, the majority of respondents are from the age group of 18-25 years.

Having a total percentage of 38.9% .The age group with the next highest responses is the age

group of 25-35 years with, a total of 28.7% respondents. 13% of the respondents are from the age

group of 35-45 years, 10.2%are from the age group of 45-55 years and 9.3% are 55 years and

above. A deliberate attempt was made to have the maximum number of responses from the age

group of 25-45 years as this age group consists of the main target group of investors.

CROSSTABS

Risk ProfileVS

Age Group

Table 18- Risk profile and age group

Count


Total18-25 Years

25-35 Years

35-45 Years

45-55 Years

Above 55 Years

What type of risk profile describes you?

High Risk Taker

3 3 3 3 1 13

Medium Risk Taker

28 24 6 4 2 64

Low Risk Taker

11 4 5 4 7 31

Total 42 31 14 11 10 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 19.679a 8 .012

Likelihood Ratio 18.989 8 .015

Linear-by-Linear Association 1.413 1 .235

N of Valid Cases 108

a. 7 cells (46.7%) have expected count less than 5. The minimum

expected count is 1.20.

Chart 19- Risk profile and age group


From the above table 18 and chart 19 it can be seen that a total of 64 respondents out of

108 i.e. 59.2% respondents are medium risk takers and of these maximum i.e. 28

(43.75%) are from the age group of 18-25 years and 24 in the age group of 25-35 years

(35.29%). Next highest number is that of low risk takers with 31 out of 108 (28.7%)

respondents being low risk takers of which 11 respondents (35.48%) fall in the age group

of 18-25 years.

Products/Services

VSAge Group

Table 19- Savings A/C used and Age group

Crosstab

Count


Total18-25 Years 25-35 Years 35-45 Years 45-55 Years Above 55 Years

What products/services are

you currently availing from

your current bank?- Savings

A/C

Yes 42 31 14 11 10 108

Total 42 31 14 11 10 108

Chart 20- Savings A/C usage and Age group


Using table 19 and chart 20 it can be said that in the sample size of 108 respondents, all

the 108 respondents i.e. 100% are using savings account. In the age group of 18-25 years

however this usage is the maximum of all wherein 42 respondents out of 108 i.e. 38.9%

are using this facility.

Table 20- Mutual Fund Investors and Age group

Crosstab

Count


Total18-25 Years 25-35 Years 35-45 Years 45-55 Years

Above 55

Years

What products/services

are you currently

availing from your

current bank?- Mutual

Fund

Yes 2 3 3 4 1 13

No 40 28 11 7 9 95

Total 42 31 14 11 10 108

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)







Chart 21- Mutual Fund Investors and Age group


Using table 20 and chart 21 we see that only 13 respondents out of 108 respondents are

using Mutual Funds facility from their current bank. Of these 13 respondents also

maximum are from the age group of 45-55 years. In this age group 31% respondents are

using this facility.

Table 21- Current A/C holders and Age

Crosstab



Above 55

Years


are you currently availing

from your current bank?-

Current A/C

Yes 4 2 1 0 0 7

No 38 29 13 11 10 101

Total 42 31 14 11 10 108

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)






expected count is .65.

Chart 22- Current A/C holders and Age group


Using table 21 and chart 22 it can be found out that in case of Current A/C only 7

respondents out of the 108 respondents are using this facility from their current bank. Of

these 7 respondents maximum respondents are from the age group of 18-25 years. This

means in all only 6.48% respondents are using this facility and out of these 6.48%

respondents almost 57% are from the age group of 18-25 years.

Table 22- Fixed Deposit holders and Age Group

Crosstab

Count





your current bank?- Fixed

Deposit

Yes 6 9 4 7 6 32

No 36 22 10 4 4 76

Total 42 31 14 11 10 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 23- Fixed Deposit holders and Age group


From table 22 and chart 23 we can see out of total 108 respondents only 32 respondents

which means 29.62% are using the facility of Fixed Deposit from their current bank. Out

of these 29.62% respondents maximum respondents which is 9 i.e. 28.12% are from the

age group of 25-35 years. Next closest number is in the age group of 45-55 years where 7

respondents or 21.8% are using this facility. In the age group of 18-25 years and above 55

years the numbers of respondents using this facility are the same which is 6 or 18.75%.

However in the age group of 35-45 years least number of respondents i.e. 4 or 12.5% are

using this facility.

Table 23- Life Insurance takers and Age group

Crosstab

Count





your current bank?- Life

Insurance

Yes 6 7 2 3 1 19

No 36 24 12 8 9 89

Total 42 31 14 11 10 108

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)



Linear-by-Linear Association .022 1 .881




Chart 24- Life Insurance Takers and Age group


From table 23 and chart 24, 19 respondents out of total 108 which are almost 17.59% are

using life insurance from their current bank. Out of these 17.59% respondents maximum

respondents are from the age group of 25-35 years, in this age group 7 respondents i.e.

36.84% are using life insurance while the next closest number is in the age group of 18-

25 years wherein 6 respondents i.e. 31.57% are using this product. So in the age group

18-35 years maximum people are using this product.

Table 24- Locker Users and Age group

Crosstab

Count





your current bank?- Locker

Yes 2 11 2 3 1 19

No 40 20 12 8 9 89

Total 42 31 14 11 10 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 25- Locker users and Age group


From table 24 and chart 25, 19 respondents out of the total 108 respondents are using the

locker services from their current bank. Of these 19 respondents maximum respondents

are in the age group of 25-35 years. In this age group maximum people i.e. 11

respondents are using this service which is 57.8%.

Table 25- Loan takers and Age group

Crosstab

Count



Above 55

Years


are you currently availing

from your current bank?-

Loan

Yes 3 0 2 3 1 9

No 39 31 12 8 9 99

Total 42 31 14 11 10 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 26- Loan takers and Age group


From table 25 and chart 26 we can see that of the total 108 respondents only 9

respondents which is only 8.33% in all are using the service of loans from their current

bank. Of these 9 respondents also only 3 respondents each are using this service in the

age group of 18-25 years and 45-55 years which comes out to be 33.33% each.

Objective of Investment

VS

Age Group

Table 26- Capital Protection as objective of investment and Age Group

Crosstab

Count



What is the objective of your

investment?- Capital

Protection

Yes 15 10 6 1 4 36

No 27 21 8 10 6 72

Total 42 31 14 11 10 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 27- Capital Protection as objective of investment and Age Group

Source: Data collected through Questionnaire

From table 26 and chart 27, 36 respondents out of 108 respondents i.e. 33.33% say that

the objective of their investment is capital protection. In these 32 respondents maximum

respondents fall in the age group of 18-25 years. 15 respondents i.e. 46.87% respondents

fall in this group showing that people in this age group want capital protection.

Table 27- Capital Growth as objective of investment and Age group

Crosstab

Count




investment?- Capital Growth

Yes 8 17 6 6 4 41

No 34 14 8 5 6 67

Total 42 31 14 11 10 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 28- Capital Growth as objective of investment and Age group

From table 27 and chart 28, 41 respondents out of total 108 respondents say that their

objective of investment is capital growth this shows that around 38% people want capital

growth. Of these 41 respondents maximum respondents fall in the age group of 25-35

years with 17 respondents i.e. 41.4% falling in this age group.

Table 28- Income as objective of investment and Age group

Crosstab

Count




investment?- Income

Yes 24 18 6 9 6 63

No 18 13 8 2 4 45

Total 42 31 14 11 10 108

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)







Chart 29- Income as objective of Investment and Age group


From table 28 and chart 29, of all the options maximum people said that income is their

objective of investment. 63 respondents out of the total 108 respondents opted for this

which means that 58.33% invest with the objective of earning income. In these 63

respondents maximum are from the age group of 18-25 years with 38% respondents in

this age group.

Table 29- Educational Provision as objective of investment and Age group

Crosstab

Count




investment?- Educational

Provision

Yes 2 2 1 3 0 8

No 40 29 13 8 10 100

Total 42 31 14 11 10 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 30- Educational Provision as objective of investment and Age group


From table 29 and chart 30, only 8 respondents out of the total 108 respondents invest

with the objective of educational provision. This means that just 7.4% respondents have

this objective. Of these 7.4% 2 respondents each or 25% each fall in the age group of 18-

25 years and 25-35 years.

Crosstabs




investment?- Retirement

Provision

Yes 4 4 1 4 1 14

No 38 27 13 7 9 94

Total 42 31 14 11 10 108

Table 30- Retirement Provision as objective of investment and Age group

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 31- Retirement Provision as objective of investment and Age group


From table 30 and chart 31, only 14 respondents out of the total 108 respondents i.e. only

12.96% people say that their objective of investment is retirement provision. Of these

respondents 4 respondents each fall in the age group of 18-25 years, 25-35 years and 45-

55 years i.e. 28.5% in each category.

Objective of InvestmentVS

Income

Table 31- Capital Protection as objective of investment and Income group

Crosstab

Count


Total

Below Rs

300000

Rs 300000-

500000

Above Rs

500000


investment?- Capital

Protection

Yes 18 10 8 36

No 31 24 17 72

Total 49 34 25 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square .510a 2 .775

Likelihood Ratio .512 2 .774



a. 0 cells (.0%) have expected count less than 5. The minimum expected

count is 8.33

Chart 32- Capital Protection as objective of investment and Income group


From table 31 and chart 32 it can be said that out of total respondents only 36

respondents i.e. 33.33% invest with the objective of capital protection. Of these

respondents 18 respondents i.e. 50% fall in the income group of below Rs 300000, 10

respondents i.e. 27.7% fall in the income group between Rs 300000-500000 and 8

respondents i.e. 22.3% fall in the income group of above Rs 500000. This shows that

maximum respondents in the income level of below Rs 300000 invest with the objective

of capital protection.

Table 32- Capital Growth as objective of investment and Income group

Crosstab

Count


Total

Below Rs

300000

Rs 300000-

500000

Above Rs

500000


investment?- Capital Growth

Yes 9 11 21 41

No 40 23 4 67

Total 49 34 25 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






count is 9.49.

Chart 33- Capital Growth as objective of investment and Income group


From table 32 and chart 33 it can be concluded that 41 respondents out of the total 108

respondents 37.96% invest with the objective of capital growth. Of these 9 respondents

i.e. 21.9% fall in the income group of below Rs 300000, 11 respondents i.e. 10.18% fall

in the income group of Rs 300000-500000 and maximum i.e. 21 respondents which is

around 51.3% fall in the income group above Rs 500000. This shows that people in the

income group of above Rs 500000 invest with the objective of capital growth.

Table 33- Income as objective of investment and Income group

Crosstab

Count


Total

Below Rs

300000

Rs 300000-

500000

Above Rs

500000


investment?- Income

Yes 25 23 15 63

No 24 11 10 45

Total 49 34 25 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






count is 10.42.

Chart 34- Income as objective of investment and Income group


From table 33 and chart 34 it can be said that 63 respondents i.e. 58.33% invest with the

objective of income. Of these respondents 25 respondents fall in the income group of

below Rs 300000 i.e. almost 39.68% while 23 respondents i.e.36.5% fall in the income

group between Rs 300000-500000 and 15 respondents i.e. 23.7% fall in the income group

of above Rs 500000. This shows that mostly people in the income group fo below Rs

300000 and Rs 300000-500000 invest with the objective of income.

Table 34- Educational Provision as objective of investment and Income group

Crosstab

Count


Total

Below Rs

300000

Rs 300000-

500000

Above Rs

500000


investment?- Educational

Provision

Yes 2 3 3 8

No 47 31 22 100

Total 49 34 25 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 35- Educational Provision as objective of investment and Income group


From table 34 and chart 35 we can see that only 8 respondents out of total 108

respondents i.e. only 7.4% invest with the objective of educational provision. Of these 8

respondents only 2 respondents fall in the income group of below Rs 300000 while 3

respondents each i.e. 37.5% each fall in the income group of Rs 300000-500000 and

above Rs 500000. This shows that most of people in the income group of Rs 300000-

500000 and above Rs 500000 invest with the objective of educational provision.

Table 35- Retirement Provision as objective of investment and Income group

What is the objective of your investment?- Retirement Provision * Which Income

group do you fall in?

Crosstab

Count


Total

Below Rs

300000

Rs 300000-

500000

Above Rs

500000


investment?- Retirement

Provision

Yes 1 9 4 14

No 48 25 21 94

Total 49 34 25 108

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)







Chart 36- Retirement Provision as objective of investment and Income group


From table 35 and chart 36 it can be said that out of the total 108 respondents only 14

i.e.12.96% have retirement provision as their objective of investment. Of these only 1

respondent that is 7.14% fall in the income group of Below Rs 300000, 9 respondents i.e.

64.28% fall in the income group of Rs 300000-500000 and 4 respondents i.e. 28.58% fall

in the income group of above Rs 500000. So this shows that most of the respondents in

the income group of Rs 300000-500000 have retirement provision as their objective of

investment.

ANNUAL REPORT ANALYSIS

RATIO

ANALYSIS 2007 2008 2009 2010 2011 2012 2013

Return on Cap

Employed (%) 94.51 83.65 98.93 100.14 117.95 118.047 124.384

Return on Net

Worth (%) -5.65 1.11 9.36 11 11.84 12.213 14.612

Return on Assets -0.25 0.05 0.46 0.61 0.59 0.664 0.788

Asset Turnover

Ratio 1.53 1.95 2.26 2.81 3.61 3.938 4.44

Current Ratio 0.05 0.04 0.05 0.04 0.07 0.089 0.102

Quick Ratio 9.32 8.98 7.14 7.94 6.57 6.082 5.374

1. Return on Capital Employed (ROCE) -

Capital employed refers to the long-term funds invested by the creditors and the owners

of a firm. It is the sum of long-term liabilities and owner's equity. ROCE indicates the

efficiency with which the long-term funds of a firm are utilized. In case of ING Vysya

Bank the ROCE declined initially in the year 2008 as compared to 2007. This decline

might be because of rise in capital by almost 300%. Thereafter the ROCE has been

increasing for the bank from the year 2009 till 2011 by 18.26% in the year 2008, 1.22%

in the year 2010 and by 17.78% in the year 2011. According to the calculations for the

year 2012 and 2013 the ROCE will keep on increasing by 0.08% in the year 2012 and by

5.36% in the year 2013.

Chart 37- Return on Capital Employed

Return on Capital Employed (%)

94.5183.65

98.93 100.14

117.95 118.047124.384

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011

Return on Capital Employed(%)

2. Return on Assets (ROA)-Return on Assets is an indicator of how profitable a

company is relative to its total assets. ROA gives an idea as to how efficient management

is at using its assets to generate earnings. It is calculated by dividing a company's annual

earnings by its total assets. The Return on Assets ratio of ING Vysya Bank was negative

for the year 2007 because of net loss, however thereafter this ratio has been increasing. It

increased by 743% from the year 2008 to 2009, by 17.52% in the year 2010 and by 7.7%

in the year 2011. According to the future projections also the ratio will increase by 3.15%

in the year 2012 as compared to 2011 and by 19.64% in the year 2013.

Chart 38- Return on Assets

Return on Assets

-0.25

0.05

0.46

0.61 0.590.664

0.788

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

2005 2006 2007 2008 2009 2010 2011

Return on Assets

3. Asset Turnover Ratio- This ratio is useful to determine the amount of sales that are

generated from each rupee of assets. Companies with low profit margins tend to have

high asset turnover, those with high profit margins have low asset turnover. ING Vysya

Bank’s Asset Turnover Ratio has been increasing showing that the company is utilizing

its assets very well. The ratio increased by 27.45% from the year 2007 to 2008, by

15.89% in the year 2009, by 24.34% in the year 2010 and by 28.47% in the year 2011.

According to the calculations for the year 2012 and 2013 also this ratio is expected to

increase further by 9.08% in the year 2012 and by 12.74% in the year 2013.

Chart 39- Asset Turnover Ratio

Asset Turnover Ratio

1.531.95

2.26

2.81

3.613.938

4.44

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2005 2006 2007 2008 2009 2010 2011

Asset Turnover Ratio

4. Current Ratio- The ratio is mainly used to give an idea of the company's ability to

pay back its short-term liabilities (debt and payables) with its short-term assets (cash,

inventory, receivables). The higher the current ratio, the more capable the company is of

paying its obligations. A ratio under 1 suggests that the company would be unable to pay

off its obligations if they came due at that point. While this shows the company is not in

good financial health, it does not necessarily mean that it will go bankrupt - as there are

many ways to access financing - but it is definitely not a good sign. The current ratio can

give a sense of the efficiency of a company's operating cycle or its ability to turn its

product into cash. Companies that have trouble getting paid on their receivables or have

long inventory turnover can run into liquidity problems because they are unable to

alleviate their obligations. Because business operations differ in each industry, it is

always more useful to compare companies within the same industry. In the present case

of ING Vysya Bank its current ratio has remained under 1 from the year 2007-2011 and

according to the future projections also this ratio is not exceeding 1 which might not be a

good sign for the company

Chart 40- Current Ratio

Current Ratio

0.050.04

0.050.04

0.07

0.089

0.102

0

0.02

0.04

0.06

0.08

0.1

0.12

2005 2006 2007 2008 2009 2010 2011

Current Ratio

5. Quick Ratio-The quick ratio measures a company's ability to meet its short-term

obligations with its most liquid assets. The higher the quick ratio, the better the position

of the company. In case of ING Vysya Bank the quick ratio of the company has been

declining from the year 2007-2011 and will further decline as per the projections which

again might not be a good sign for the company.

Chart 41- Quick Ratio

Quick Ratio

9.32 8.98

7.147.94

6.576.082

5.374

0

1

2

3

4

5

6

7

8

9

10

2005 2006 2007 2008 2009 2010 2011

Quick Ratio

Present Condition of ING Vysya Bank:

ING Vysya Bank has put up a massive effort to bring clean up the losses from the

balance sheet over the past couple of years. The bank had written off assets, increased

provisions for non performing assets relating to banking as well as non banking business.

ING Vysya Bank’s earnings profile is healthy, characterized by strong fee income, which

is offset by high operating expenses. ING Vysya Bank’s fee income has been witnessing

significant increase in the last five years, which is expected to continue ahead. While ING

Vysya Bank has grown its asset portfolio modestly at a compound annual growth rate of

about 18 per cent in the last three years, it plans to expand its loan book more

aggressively in the future. Moreover, IVBL is in the process of strengthening its risk

management systems, for effective credit risk management, given the aggressive growth

planned in customer assets. IVBL’s performance has improved consistently, which is

evident from net loss of Rs 38 crores reported in FY05 to net profit of Rs 188.8 crores in

FY09. In addition, the cost to income ratio of the bank has come down significantly from

more than 80% in FY05 to below 60% in Q3FY10. Going forward, the bank is planning

to adopt a cautious approach towards balance sheet growth with focus on improving

CASA value.

There has also been a change in Management of the bank, which is believed to definitely

result in positive impact on performance of the bank.

In order to meet its capital requirement, the bank has successfully completed a Qualified

Institutional Placement (QIP) and preferential allotment of shares in September 2011.

Total capital raised was Rs 415 crores, resulting in an improved CAR (Capital Adequacy

Ratio) for the bank which stands at 14.6% post capital raising, as compared to 12.5% in

June 2011. Going ahead, with a change in management and adequate capital base, IVBL

is all ready to undertake expansion initiatives in its business. On account of capital

raising initiative undertaken in September 2011, the bank would not require further

capital in the near term, which would help to improve the ROE and ROA, thereby

benefiting the shareholders.

Currently, the bank operates through a network of 859 outlets comprising of 460

branches, 14 extension counters, 28 satellite offices and 357 ATMs as on 30 December

2011. Going forward, the bank is planning to focus on increasing its loan book, however,

with a cautious move in order to safeguard the interest of the bank by keeping a tight

watch on the asset quality.

FINDINGS & RECOMMENDATIONS

FINDINGS

72.2% people are aware of ING Vysya Bank. This shows that awareness level of

people regarding the ING Vysysa Bank is good. This shows the effectiveness of

their advertisement.

73.2% people think that ING Vysya Bank provides Average quality services and

Dependability. This shows that people have a good image overall about the bank.

52.8% people are satisfied with the features of policies offered by ING Vysya

Bank. These respondents can act as prospective customers for the bank.

66.67% people invest their money in the form of Life Insurance. This shows that

in today’s uncertain world people want to make sure that the future of their loved

ones is secured.

Mostly respondents in the age group of 18-25 years are medium risk takers.

Main objective of investment of most of people is of all age groups is Income as

58.33% people invest with this objective. In age group of 18-25 years next main

objective is Capital Protection while in age group of 25-35 years Capital Growth

is the next main objective.

In income group of Below Rs 300000 and Rs 300000-500000 the main objective

of investment is Income whereas in the Income group of above Rs 500000 the

main objective of investment is Capital growth.

The bank’s financials show improvement year over year. In future with its plans

of expansion the bank will be performing much better.

RECOMMENDATIONS

The bank should increase its branch network.

Bank should expand its network of ATM’s, it should have ATMs at cinema halls,

shopping complexes, office complexes, etc.

Bank should improve its advertising so as to make more people aware of it.

Bank should also use some promotional schemes for its products.

LIMITATIONS

Every research project undertaken has certain limitations and shortcoming associated

with it.

The major limitations of this research project are:

The sample size selected for the project included only about 108 respondents.

Larger pool of respondents provides the key findings a finer edge.

The selection method chosen for the process of sampling was based on

convenience and Judgment sampling.

The geographic extent of our sampling was limited it was limited to Delhi NCR.

All the data has been collected at random but it is always liable for biasness.

CONCLUSION

Under the primary research conducted by me in my two months of internship in ING

Vysya the conclusion that this research has got is that people are aware of ING Vysya

Bank. Majority of customers feel that ING Vysya Bank provides Average quality

services and Dependability. This shows that people have a good image overall about

the bank. Most of the respondents said that they are satisfied with the features of

policies offered by ING Vysya Bank. These respondents can act as prospective

profitable customers for the bank.

Through this research one of the interesting finding was that a good number of people

invest their money in the form of Life Insurance. This shows that in today’s uncertain

world people want to make sure that the future of their loved ones is secured.

It was observed during the course of the research that main objective of investment of

most of people is of all age groups is Income followed by Capital Protection and

capital growth.

While analyzing the financials of the company I observed that even though the

company incurred losses in the year 2005, still it had shown improvements in the year

after by issuing equity capital, decreasing the NPA’s and further opening up of

branches thereby expanding their customer base. In future the company’s position has

a further scope of improvement.

ANNEXURE

Questionnaire on ING Vysya Bank

(1) Your current Bank __________________________

(2) What products/services you are currently availing from your current bank?

Saving a/c Mutual Fund Current a/c Fixed Deposit Life Insurance Locker Loans

(3) How happy you are with the services provided by your existing bank? Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied

(4) Before this survey, how often had you heard of ING Vysya Bank Ltd? I’ve never heard before I’ve seen or heard a few times I see or hear frequently

(5) How did you come to know about ING Vysya Bank? Newspaper Radio Television Word of Mouth

(6) What are your general impressions of ING Vysya Bank? High quality services and reliability Average quality services and dependability Low quality services and reliability

(7) Are you associated with ING Vysya bank?

Yes No

(8) What kind of banking services you generally wish to use?

High priority services Normal services

(9) In which all forms of investment do you invest money?

Fixed Deposit Equity Mutual Funds Gold Life Insurance Government

(10) What is the objective of your investment?

Capital Protection Capital Growth

IncomeEducational ProvisionRetirement provision

(11) What type of risk profile describes you? High risk taker Medium risk taker Low risk taker

(12) Have you taken any insurance policy of ING Vysya?

Yes No

(13) Which company’s insurance policy do you have?

LICICICI

Aviva Bajaj Allianze Tata AIG Birla Sunlife Kotak Mahindra

(14) What amount of premium are you willing to pay per year for an insurance policy?

Below Rs 10000Rs 10000- 20000Rs 20000- 30000Rs 30000- 40000Rs 40000 and above

(15) Are you satisfied with the features offered by policies of ING Vysya ?

Yes No

(16) If you invest in mutual funds more frequently, would you like all your funds to be managed and controlled at a single point rather than scattered? Yes of course I am not sure It’s not possible

(17) Which Income group do you fall in?

Below Rs 300000 Rs 300000- 500000

Above Rs 500000

(18) Which age group do you fall in?

18-25 years25- 35 years35-45 years45-55 yearsAbove 55 years

Thank you for your time. Your assistance will help us in better understanding of your investment needs.

NAME:

ADDRESS:

CONTACT NO:

OCCUPATION:

Annual Report figures of ING Vysya Bank from year 2007-2011

PROFIT & LOSS

ACCOUNT 2007 2008 2009 2010 2011

(Rs. In ' 000)

INCOME

Interest Earned 9,905,751 12,224,348 14,013,678 16,804,391 22,398,898

Other Income 1,226,716 1,903,133 1,943,180 4,185,660 5,476,657

TOTAL 11,132,467 14,127,481 15,956,948 20,990,051 27,875,555

EXPENDITURE

Interest Expended 6,338,184 7,412,477 8,593,111 11,820,478 15,902,699

Operating Expenses 3,801,008 5,187,905 5,070,642 6,094,893 7,724,698

Provisions and

Contingencies 1,375,055 1,436,534 1,404,097 1,505,378 2,360,361

TOTAL 11,514,247 14,036,916 15,067,850 19,420,749 25,987,758

PROFIT

Net Profit for the year -381,780 90,565 889,098 1,569,302 1,887,797

Profit Brought

Forward 35,743 -346,037 12,924 184,363 1,035,324

Transfer from

Investment Fluctuation

Reserve – 551,037 – – –

TOTAL -346,037 295,565 902,022 1,753,665 2,923,121

APPROPRIATIONS

Transfer to Statutory

Reserve – 22,641 222,274 392,326 471,949

Transfer to Capital

Reserves – 260,000 395,747 31,467 22,753

Transfer to Investment

Reserve – – 30,508 47,515 23,007

Transfer to Special

Reserve – – – 67,000 100,000

Proposed Dividend – – 59,088 153,711 205,208

Dividend Tax – – 10,042 26,122 34,874

Balance Carried to

Balance Sheet -346,037 12,924 184,363 1,035,324 2,065,330

TOTAL -346,037 295,565 902,022 1,753,665 2,923,121

Earnings Per Share

( Rs. Per Equity Share

of Rs.10 each)

Basic and Diluted (as

originally reported) -16.84 – 9.80 16.47 18.41

Basic (as restated for

Rights issue) -5.49 1.02 9.73 16.26 18.33

Diluted (as restated for

Rights issue) -5.49 1.02 9.73 16.26 18.33

BALANCE SHEET 2005 2006 2007 2008 2009

(Rs. In ' 000)

LIABILITIES

Capital 227,085 907,206 909,048 1,024,743 1,026,041

Share application

money 1,323,908 –

Reserves& Surplus 6,866,908 9,289,535 10,123,824 14,331,834 16,002,909

Deposits 125,693,050 133,352,551 154,185,894 204,575,559 248,899,244

Borrowings 8,307,760 11,074,460 8,435,531 12,498,052 21,524,175

Other Liabilities and

Provision 11,486,964 13,042,924 19,208,678 22,968,849 31,117,536

TOTAL 153,905,675 167,666,676 192,862,975 255,399,037 318,569,905

ASSETS

Cash and Balance with

Reserve Bank of India 6,666,715 8,416,514 9,458,130 22,635,265 17,910,228

Balance with Banks

and Money at call and

short notice 4,478,265 2,816,823 6,458,905 9,212,320 4,912,286

Investments 41,958,926 43,723,357 45,278,131 62,933,196 104,955,389

Advances 90,805,920 102,315,253 119,761,650 146,495,484 167,509,304

Fixed Assets 3,140,044 4,054,093 3,959,697 3,992,146 4,371,997

Other Assets 6,855,805 6,340,636 7,946,462 10,130,626 18,910,701

TOTAL 153,905,675 167,666,676 192,862,975 255,399,037 318,569,905

Contingent Liabilities 314,791,895 273,920,421 402,098,382 595,258,919 739,082,609

Bills for collection 13,182,580 14,785,434 14,479,933 18,058,006 30,150,131

REFERENCES

‘Chakrabarti Rajesh’, “Banking in India – Reforms and Reorganization”,

College of Management, Georgia Tech, USA, Review, Vol I, 2005.

Bhalakrishnan Hema Dr., “A Study on Customer Perception in Banking

Industry Using Gap Analysis, Park Global School of Business Excellence,

Review, Vol II, 1999.

Vipul, “Project on Financial Services of Citi Bank.”, 2009.

Mishra Kumar Vikash ,“The environmental factors

responsible for IDBI Bank’s performance (Positively& Negatively) in

SAKET”, 2008.

Mr. Ashutosh ,“HDFC Bank - Customer Satisfaction Levels”, 2008.

Annual Report for the year 2005-2006 from www.ingvysyabank.com.

Annual Report of the company for the year 2006-2007 from

www.ingvysyabank.com.

Annual Report of the company for the year 2007-2008 from


Annual Report of the company for the year 2008-2009


Summer Internship Report ING Vysya Bank

Documents

Transcript of Summer Internship Report ING Vysya Bank