Transcript
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CHAPTER - 1
PROFILE OF THE COMPANY
1.1 Company Overview
ING Vysya Bank Ltd is a premier private sector bank with retail, private and
wholesale banking platforms that serves over two million customers. With over 80
years of history in India and leveraging INGs global financial expertise, the bank
offers a broad range of innovative and established products and services, across its
547 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 EquityNielsen survey 2011.
The bank was formessdd 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.
1.2 About ING Group
BANK WITH ING,
JIYO EASY!
ING is a global financial institution of Dutch origin, offering banking, investments,
life insurance and retirement services to meet the needs of a broad customer base.
With more than 82,000 employees, ING serves over 61 million private, corporate and
institutional customers in over 40 countries in Europe, North America and Latin
America, Asia and Australia. The bank draw on its experience and expertise, its
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commitment to excellent service and its global scale to meet the needs of a broad
customer base, comprising individuals, families, small, businesses, large corporations,
institutions and governments.
1.3 COMPANY PROFILE OF ING VYSYA BANK
The long journey of seventy-five years has had several milestones:
1930:- Set up in Bangalore1948 Scheduled Bank
1985:- Largest Private Sector Bank
1987:- The Vysya Bank Leasing Ltd. Commenced
1988:- Pioneered the concept of Co branding of Credit Cards
1990:- Promoted Vysya Bank Housing Finance Ltd.
1992:- Deposits cross Rs.1000 crores
1993:- Number of Branches crossed 3001996 Signs Strategic Alliance with BBL., Belgium.
Two National Awards by Gem &Jewellery Export Promotion Council for excellent
performance in Export Promotion
1998:- Cash Management Services, & commissioning of VSAT. Golden Peacock
Award for the best HR Practices by Institute of Directors. Rated as Best Domestic
Bank in India by Global Finance (International Financial Journal - June 1998)
2000:- State -of - the -art Date Centre at ITPL, Bangalore. RBI clears setting up of ing
vysya Life Insurance Company 2001 ING-Vysya commenced life insurance business.
2002:- The Bank launched a range of products & services like the Vys Vyapar Plus,
the range of loan schemes for traders, ATM services, Smart services, personal
assistant service, Save & Secure, an account that provides accident hospitalization and
insurance cover,Sambandh, the International Debit Card and the mi-bank net banking
service. ING takes over the Management of the Bank from October 7th , 2002 RBI
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clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter
of 17.12.2003 Introduced customer friendly products like Orange Savings,
Orange Current and Protected Home Loans
2004:- Introduced Protected Home Loans - a housing loan product
2005:- Introduced Solo my Own Account for youth and Customer Service Line Phone
Banking Service
2006:- Bank has networked all the branches to facilitate AAA transactions i.e.
Anywhere, Anytime & Anyhow Banking Later years up to 2011 is a diversified financial
services Group that provides a range of banking and financial services to customers,
including retail banking, project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment banking, broking treasury
products and services.
The company operates in, India, the UK, Canada, and Russia and in 60 other
countries. It is head quartered in Amsterdam, Netherlands and employs about 1,
10,000 people worldwide.
1.4 Contact Us:
ING Vysya Bank Limited
Regd. Office: ING Vysya House, 22,
MG Road, Bengaluru560001
Phone No: 2500 5000
Corporate Identity Number: L85110KA1930PLC000124
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1.5 LEADERSHIP OF ING VYSYA BANK
List of executive Management Council (updated as of 14.03.14)
Table No1: Leadership of the ING VYSYA BANK
Names Designation
Shailendra Bhandari,Chairman Managing Director & CEO
Jayant Mehrotra Chief Financial Officer
J M Prasad Chief-Human Resources
Brett Morgan Country 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
Aniruddha Paul Chief Information Officer
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1.6 CURRENT OPERATIONS OF ING VYSYA BANK
ING Vysya Bank has competed in the banking/financial services and insurance
markets for over 80 years and currently serves over 2 million Indian consumers. The
bank markets an entire range of financial products and services, organised under four
strategic lines of business: retail, private, wholesale banking ad agricultural banking.
a) Retail banking :
With 547 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.
b) Private banking :
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.
c) Corporate/wholesale banking :
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. The
wholesale banking business comprises four business sub-segments and multiple
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product offerings. The business segments Corporate and Investment Banking,
Emerging Corporate, Banking and Financial Institutions and financial markets.
d) Agriculture and rural banking :
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.
1.7 ING Vysya Mobile App
ING Vysya bank's mobile app helps customers to check the balance and much more
than a conventional mobile app by simply downloading this app in their cell phones.
With the help of this app customers need not to go to the bank all the time for
checking their balance in their account.
1.8 ING Vysya Banks 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
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ING VYSYA 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
a) General credit Card Scheme.
b) DIR scheme.
c) Self Help Group (SHG) finance.
d) Kisan Credit Card
e) Zero Balance No Frill Accounts with OD facility
f)
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 bank has two BCs for disbursing amounts to NREGP &
SSP beneficiaries. The achievements so far in this regard are :
a) Enrolled over 130446 beneficiaries.
b) Opened over 99631 accounts.
c)
Issued 99631 Smart Cards.
d)
Disbursed Rs. 26 Crs. to 36148 beneficiaries in AP.
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1.9 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 separate Module on Financial Inclusion. Banks Financial
Inclusion Plan (FIP) and the list of villages taken up for providing banking services
are displayed separately.
1.10 Product launch: New milestone rewards with ING Vysya debit
cards:
ING Vysya Bank and MasterCard today announced the launch of ING MasterCard
Premium Debit Cards. Unlike other debit cards in the market this card comes with
reward points based on spend-milestones. While using debit cards for shopping is an
increasing trend in India, redemption of rewards points isn't. "Indian customers are
using their debit cards to shop, debit spends are increasing by 38 percent. Surprisingly
however, Indian customers redeem only 18 percent of their reward points," said
Shailendra Bhandari, MD and CEO, ING Vysya Bank.This is primarily due to the
way most reward points programmes work, where a certain number of points have to
be accumulated, at times with certain tie-up merchants. They also come with expiry
dates.
1.10.1 How this works:
Under the spend-milestone-based system, you need to spend a certain amount for two
years, after which you could choose the reward from a number of choices the banks
offers. For instance, you should spend Rs 2 lakh (Rs 7,500 a month), Rs 4 lakh
(15,000 a month) or Rs 6 lakh (25,000 a month) over two years with debit card. These
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c) Zing saving account
d) Zwipe saving account
e) Basic saving bank deposit
f) Senior saving account
B) CURRENT ACCOUNTS:
a) General current account
b)
Comfort current account
c)
Advantage current account
d)
Flexi current account
e) Orange current account
f) Institutional current account
g) Platina current account
C) DEMAT ACCOUNTS
D) TERM DEPOSITS
E) DEBIT CARDS
F) CREDIT CARDS
G) FOREX SERVICES
H) CORPORATE SALARY ACCOUNT
I) INSTITUTIONAL ACCOUNTS
J) LOCKERS
1.13 SIZE OF THE ING VYSYA BANK:
a) In ING Vysya bank, there are 10059 employees who are working. The total
number of branches of the bank is 557 and total number of ATM of the bank is
405 .The total number of extension counters are 10.
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b) The turnover of the bank for the year 2013-2014 is INR 5588 crores (US$9.1
billion).This is the latest data of the bank which is reflected by 83rd annual
report of ING Vysya bank for the year ended 2013-2014.
1.14 ORGANISATION STRUCTURE OF ING VYSYA BANK:
Figure - 1
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1.14 Source of Data Collection:
a) Primary Data
Primary data has been collected, by Employee Survey through detailed and
structured questionnaire. Primary data has also been gathered through Personal
interaction with employees.
b) Secondary Data
Secondary data has been collected through internet; information has also been
gathered from the companys Website. Other internal information that was
relevant for the project has been collected through the Employee Handbook of the
company. Annual Reports of the company has also been used to gather the
relevant information for the project.
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CHAPTER2
SWOT ANALYSIS OF THE BANK
SWOT helps a company to set itself for better and for worse. SWOTs are a means by
which a bank can better understand what it does very well and where its shortcomings
are:-
2.1 STRENGTHS
a) Instant Pre-generated Kit (includes Debit card, cheque book and Net Banking
PIN).
b) ATM pin number security.
c) Co- operative Staff.
d) Personalized Services / Door step facilities.
e)
Cash access services till 5:30pm.
f)
Locker facility.
g) ING Life Foundation (Social Responsibility).
h) Experienced Management Team.
i) On-spot solution for any grievances of employees.
2.2 WEAKNESS
a) Branch is in residential area and hence not-so-easy access to corporate,
whereas the same is turned into an opportunity by providing the door step
services to the corporate like cheque pick up/cash pick up and dedicated
relationship managers.
b)
Less promotional Activities/Advertising
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c) Parking Inconvenience.
d) Bank has limited branches, which are not sufficient to fulfill customer needs.
e) Very limited branches in north India.
2.3 OPPORTUNITIES
a) Offer home loans and other consumer asset products to make it a complete
product offering.
b)
Acquisition of accounts of existing employees of its competitors.
c)
The weekend Training in terms of analysis (causes of unclosed calls) and
future plans.
d) Growth in banking sector is one of the added advantages to increase their
business.
e) People are more service oriented, where bank can capture the advantage.
f) Venture into the untapped markets by setting up new branches in various cities
2.4 THREAT:
a) High level of competition.
b) A competitor has a new innovative product or service.
c) Fluctuation in monetary policy.
d) Some of the bank provides same benefits without charging fee.
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2.5 Porters Five Forces
Figure - 2
A. Power of Suppliers:
The power of suppliers is from low to medium. There are very few suppliers of
particular product categories. There are almost no substitutes in some product
categories. Switching to another (competitive) product is very costly. He supplying
industry has a higher profitability than the buying industry.
B. Power of Buyers:
The power of buyers is from Medium to High. As there are Large number of buyers
who purchase large volumes .There Concentration Ratio is medium being
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international .Information is easily available to the customer .Switching to another
(competitive) product is simple .The product is very important to buyers .Customers
are price sensitive
C. Threat of New Entrants:
The degree of threat of threat of new entrant is from low to high (exceptions).As there
are existing loyalty to major brands in the market. Huge amount of Investments is
involved. This may lead to generation of High fixed costs. Other factors include
Scarcity of resources, High costs of switching companies and Government restrictions
or legislation. There is virtually no chance of a new entrant significantly affecting the
major banks' market share. The only place that new entrants may have a chance in the
industry is through Internet banking, because of its low cost.
D.Threat of Substitutes:
The degree ranges from Low to medium. This one is pretty straight forward, for there
are plenty of substitutes in the banking industry. Most large banking companies offer
similar suites of services. Whether it is auto, home, commercial, health or life
insurance, chances are there are competitors that can offer similar services.
Companies focusing on niche areas usually have a competitive advantage, but this
advantage depends entirely on the size of the niche and on whether there are any
barriers preventing other firms from entering. If substitutes are similar, it can be
viewed in the same light as a new entrant. This is not really an issue within the
banking industry, because there aren't really any legal alternatives, except buying a
safe and borrowing from a loan shark
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E. Competitive Rivalry in an Industry:
A highly competitive market might result from many players of about the same size;
there is no dominant bank, little differentiation between competitors products and
services, a mature industry with very little growth; banks can only grow by stealing
customers away from competitors, Technologically Advanced companies and
Introduction of new products by competitors. The banking industry is continuing to
restructure and position itself for our changing economy as a result, many mega-
mergers have occurred in recent years. Larger companies prefer to take over or merge
with other companies rather than spend the money to market and advertise to people.
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c) Marketing Manager
d) Product Manager
e) E-channel manager
f) Content Manager
3.1.1 Policy of bank on Collection of Cheques:
a) Service Charge :
This is one of the policy which states that for all collection services, the bank will
recover appropriate service charges as decided by the bank from time to time and
communicated to customer as indicated in the code of banks commitment to
customers adopted by the bank.
b) Force Majeure :
The bank shall not be liable to compensate customers under this policy for the
delayed credits if some unforeseen event (including but not limited to civil
commotion, sabotage, accident, fires, natural disasters or other Acts of God,
war, damage to the banks facilities or of its correspondent banks), absence of the
usual means of communication or all types of transportation, etc. beyond the
control of the bank prevents it from performing its obligations within the specified
service delivery parameters.
c) Credit Cards :
Under this policy, when bank had issued and activated a credit card without
written consent of the recipient, the bank would not only reverse the charges
debited to the account of the customer immediately but also pay without demur to
the recipient of the card, a penalty being twice the value of charges reversed.
Operation of the credit card account shall be in accordance with the ING credit
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card terms and conditions. In particular, the cardholder is responsible for all the
transaction approved on his/her credit card prior to report of the loss to the bank as
per the ING credit card terms and conditions. The bank reserves the right to
honour, refer or decline any transaction on the credit card, at its sole discretion
and without assigning any reason whatsoever. Transactions reported as erroneous
by customer in respect credit card operations, which requires specific reference to
a merchant establishment will be handled as per charge back rules laid down by
VISA/MasterCard International. The bank will provide explanation and if
necessary, documentary evidence to the customer within a maximum period of
sixty days.
3.1.2 CRM POLICY:
At ING Vysya Bank Limited (IVBL), Bank recognizes the importance of protecting
the confidentiality and security of any personal information that bank obtain from
visitors of this web site. Bank is strongly committed to safeguarding its customers
privacy online and have established the following privacy policy that will apply to
customer, as a visitor of the site:
a) Customers are not required to provide any personal information on the website
unless customer chooses to do so. By submitting their personal information
and pressing the 'submit' button, their consent to the content of this Privacy
Policy and accept the conditions set out there itself.
b)
Bank does not sell or rent personal information.
c)
Employees may not discuss the business affairs of any client with any other
employee, except on a strict need-to-know basis.
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d) Bank does not release client information, except upon a client's authorization
or when permitted or required by law.
e) Bank will not sell their personal information to any third parties. Bank will
only share the information with such third parties if and to the extent required
by law or for regulatory purposes.
f) If the User has not attained 18 years of age, bank does not encourage them to
use the service or submit any personal information. Out of special concern for
minor's privacy, IVBL does not accept personal information from persons who
are stated to be under the age of 18.
g) IVBL does not control the information collection of sites that can be reached
through links from this or any site controlled by IVBL. If customers have
questions about the data collection procedures or privacy policy of linked
sites, please contact those sites directly.
h) IVBL reserves the right to add, amend, revise, or suspend the privacy policy
from time to time.
3.2HUMAN RESOURCE
Human Resources business line consists of 20+ professionals and operates from
offices in The Hague, Brussels and Poland, and is divided into three key areas of
discipline are expert centres, HR mid office and HR consultancy. Besides this, each
Business Line has its dedicated HR Account Team comprising of:
a) Principal HR Consultant / Senior HR Consultant
b) HR Consultant (if applicable)
c) HR Mid Office
d)
Recruiter
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e) Recruitment Mid Office
It is there mission to be a trusted and engaged team of HR specialists, partnering with
the business in obtaining ING objectives and it is there vision that they are a engaged
and best-in-class HR team respected for there independent thinking and pro-actively
enabling the business in obtaining ING objectives.
3.2.1 Policy On Grievance Redressal
Todays dynamic business scenario makes it necessary to have a strong focus on
Customer service to retain customers loyalty for sustained growth. ING Vysya Bank
realizes that this is possible only when there is a genuine desire to serve the
customers. Hence bank has a policy for grievance redressal based on the following
principles:
a) Customers are treated fairly at all times.
b) Complaints raised by customers are dealt with, courtesy and on time.
c)
Customers are fully informed of avenues to escalate their
complaints/grievances within the organization and their rights to alternative
remedies, if they are not fully satisfied with the response of the bank to their
complaints.
d) ING Vysya Bank will treat all complaints efficiently and fairly as they can
damage the banks reputation and business if handled otherwise.
e) Bank employees will work in good faith and without prejudice in the interests
of the customer. The policy document would be made available at all
branches.
f)
The concerned employees are aware about the complaint handling process.
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The customer complaint arises due to the attitudinal aspects in dealing with
customers. Inadequacy of the functions / arrangements made available to the
customers or gaps in standards of services expected and actual service rendered. Bank
aim is to provide the best customer service. Branch Manager is responsible for the
resolution of complaints / grievances in respect of customers service by the branch.
He would be responsible for ensuring closure of all complaints received at the branch.
It is his foremost duty to see that the complaint should be resolved completely to the
customers satisfaction .
However, if the customer is not satisfied with resolution given by the Branch
Manager, he can reach bank at any of the following access channels:
A) Customer Service Line / Call Centre :
a) Customers can contact bank customer care officers through phone / Toll free
numbers for redressal of their grievance.
b) Customers can also call them at 1-800-420-9900 and 1-800-425-9900 from
across the country about account details or any other information, effortlessly
and fast.
c) From overseas they can reach bank through 0091 1800 425 9900 and 0091
1800 425 9900.
d) Apart from the above toll free number customer can contact the bank on the
number which are provided on website, 24*7.
B) Branch:
Customers can walk into any of the ING Vysya Bank Branches and speak with the
Branch officials or give written complaints for resolution of their issues.
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C) Email / website:
For all the complaints, consumer can write on website of the bank which is
ccu@ingvysysabank.com
D) Customers may send a letter to:
Customer Care Unit, ING Vysya Bank Ltd, ING Vysya House, No. 22 MG Road,
Bangalore 560 001 Code of Banks Commitment to customers / Fair Practice Code of
the bank are available in bank website www.ingvysyabank.com.
3.2.2 BANKERS FAIR PRACTICE CODE (BFPC)
The Bankers Fair Practice Code of Indian Banks Association has been implemented
in the bank. The Code sets out fair banking practices to be followed by banks while
dealing with individual customers. It also provides its customers valuable guidance
for day-to-day operations.
The bank recognizes that customer expectation / requirements / grievances can be
better appreciated through personal interaction with customers by banks staff.
Structured customer meets, once in a month, are conducted since the bank cares and
values customer feedback / suggestions for improvement in customer service. Many
of the complaints arise on account of lack of awareness among customers about
banks services and such interactions will help the customers appreciate banking
services better. As for the bank, feedback from the customers would be a valuable
input for revising its product and services to meet customer requirements.
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3.3PRODUCTION AND OPERATION
The operations department of the Bank is responsible for coordinating with other
departments, i.e. marketing, human resources and accounts department to ensure
smooth and efficient functioning. The operations department is responsible for
regulation and circulation of the work done in the Bank.
Operations is accountable for all tasks necessary to manage and account for
investments:
a) It Act as a liaison between the Front-Office and the Back-Office in order to
streamline and avoid any disruption to the investment value chain.
b)
It also provides the business with a standardized, comprehensive and scalable
operations processing capability that streamlines the industrialization of
securities and cash transactions processing, asset servicing and reconciliations.
c) Industrializing the accounting and administration activities.
d)
Centralizing all reporting requirements and activities.
The department consists of 75+ professionals divided over the following teams:
a) Middle Office
b) Operations Processing
c) Third Party Accounting
d)
Third Party Reporting
e)
Information & Demand Management
The Board and the Senior Management of the Bank are kept informed about the key
Operational Risk issues on a regular basis. For effective management of the
Operational Risk, Operational Risk Committees have been formed at Country level
and Business Line level. The Country Operational Risk Committee meets on a
quarterly basis and the Business Line Operational Risk Committees meet on a
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monthly basis to discuss and take effective actions for operational risk issues.
Business managers are actively involved in operational risk management through
participation in Risk and Control Self assessments and implementing necessary
mitigation through product, process and system design.
3.4 FINANCE
The Finance business line has the role of supporting decision making by providing
timely, correct and objective (financial) information. The business line consists of
60+ a professional based in The Hague and is divided into 4 functions:
a) Finance Europe: responsible for accounting and reporting and managing,
supporting and executing the financial steering of ING IM Europe in the
broadest sense.
b) Proprietary Finance Management: responsible for Financial and
Management Accounting of the assets under management of the Insurance
companies in Europe.
c) Guidelines & Procedures: responsible for supporting Finance by issuing
policies on the basis of external accounting regulation and the ING accounting
manual and providing ING IM with tailor made solutions.
d) Project & Change Management: responsible for Finance projects, change
and technical support.
The various financial positions are:
a) Financial Accountant
b) Management Accountant
c) Accounting & Reporting Specialist
d)
Business Analyst
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3.4.1 Financial and Business Performance:
a) For the year ended 31 March 2014, the Bank posted a net profit of ` 657.85
Crore compared to ` 612.96 Crore for 2012-13.
b) The pre-tax profit improved to ` 977.76 Crore compared to ` 901.44 Crore
during the Previous year.
c) The Net Interest Income for the year 2013-14 increased to ` 1,753.15 Crore
registering an increase of 13.94 %.
d)
The aggregate business of the Bank reached ` 77,045.62 Crore as at 31 March
2014 compared to ` 73,106.02 Crore as at 31 March 2013.
e) The Net Advances increased to ` 35,828.85 Crore for the year ended 31 March
2014 from ` 31,772.03 Crore at the end of the Previous year recording a
growth of 12.77%.
f) The Total Deposits of the Bank stood at ` 41,216.77 Crore as at 31 March
2014.
g)
As against a regulatory target of 40% of Adjusted Net Bank Credit for Priroity
sector lending, the Bank achieved 40.70% as of 31 March 2014, having
achieved 38.16% as of 31 March 2013.
h) Export advances increased to ` 2,257.50 Crores from ` 1,930.90 Crores at the
end of the previous year.
i) The outstanding credit to Scheduled Castes/Scheduled Tribe borrowers stood
at ` 209.26 crore and the percentage of recovery to demand as of 31 March
2014 was 52.60 % (Previous year 30.45 %) of the amounts fallen due.
j)
The Net NPA Ratio as of 31 March 2014 is 0.28% as against 0.03 % as of 31
March 2013.
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3.4.2 BALANCE SHEET
Table No2 : Balance Sheet Of the Bank for the year (2013 -2014)
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3.4.3 P & L ACCOUNT FOR THE YEAR (2013-2014)
Table No3 : P& L A/C for the year ended 31 st march 2014
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3.4.4 CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH
2014
Table No4 : Cash Flow Statement
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3.4.5 ANNUAL REPORT ANALYSIS
RATIO
ANALYSIS 2007 2008 2009 2010 2011 2012 2013
Return on
Capital
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
AssetTurnover
Ratio
1.53 1.95 2.26 2.81 3.61 3.938 4.44
Current
Ratio0.05 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
Table No5: Annual Report Analysis
A. Return on Capital Employed (ROCE):
Capital employed refers to the long-term funds invested by the creditors and the
owners of a firm 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.
B. Return on Assets (ROA):
Return on Assets is an indicator of how profitable a company is relative to its total
assets. It is calculated by dividing a company's annual earnings by its total assets. The
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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.
C. 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 Banks 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 2014 and by 12.74% in the year 2013.
D. 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). 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.
E. 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
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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.
3.5INFORMATION TECHNOLOGY
This area include finding Solution for problems and then implemented them in SAP
Business Objects. This system of Ing Vysya bank covers decision support system,
online analytical processing, querying and reporting which is used by top
management, information technology ,marketing ,sales and operation control
Management team.
3.5.1 Benefits delivered by information technology
The implementation of SAP Business Objects at ING Vysya Bank, almost 2,200
reports are auto scheduled in a month. The number of auto-scheduled unique reports
is 341 (341 X frequency = 2,200). Prior to implementation, a 10-member team in
centralized MIS unit prepared and published around 1,000 reports. The count of
unique reports was 214.With accurate and timely reporting, senior management team
at ING Vysya Bank is able to focus on key performance indicators for improved
decision making.
The IT Service Management Group (ITSMG) is the technology unit responsible for
the Banks IT strategy and execution. ITSMGs responsibilities extend from
conceptualizing technology strategy in harmony with business strategy, to running
day to day operations at the workplace and data centres. ITSMG plays an active role
in not just running efficient operations, but also in assisting business in winning at the
marketplace, true to its mission To be a strategic business partner based on service
excellence through technical leadership in a secure and cost effective manner.
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3.6 INTERNATIONAL BUSINESS
International Clients Group (ICG) ICG is a separate group to provide greater focus to
servicing there multinational clients who have operations in India. The ICG currently
services over 350 clients. This has enabled the Bank to bring seamless servicing
capability, thus helping its global clients in their business in India. This group benefits
from the global reach of INGs network, which helps it in gaining access to INGs
core clients. While the whole range of the banks products is available to International
Clients, a key focus for ICG is to be the main transactional banker to our clients
resulting in being a stable source of liabilities and significant fee income. The
business is currently present in 6 major cities.
Foreign Exchange Services of ing Vysya bank:
The Bank would not compensate the customer for delays in collection of cheques
designated in foreign currencies, sent to foreign countries as the bank would not be
able to ensure timely credit from overseas bank. It is the banks experience that time
for collection of instruments drawn on banks in foreign countries differ from country
to country and even within a country, from place to place. The time norms for return
of instruments cleared provisionally also vary from country to country. However, the
bank will compensate the customer for undue delays in affording credit once proceeds
are credited to the Account of the bank with its correspondent.
The compensation will be worked out as under:
a) Interest for the delay in crediting proceeds as indicated in the collection policy of
the bank. In case of extraordinary delay interest will be paid at the rate of 2% over the
corresponding term deposit rate.
b) Compensation for any loss on account of adverse movement in foreign exchange
rate during the delayed period.
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B. DATA PRESENTATION
ANALYSIS FROM MARKETING DEPARTMENT:
3.21 MARKETING DEPARTMENT
Table6 : Current Bank Users
INTERPRETATION :
From the above table, it can infered that maximum of the customers 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
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
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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.
Table - 7 : Distribution Of Products/Services Used
INTERPRETATION :
From the above, it can be seen that 100% customers 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
What products/services are you currently availing from
your current bank
108
13 7
32
19 199
0
20
40
60
80
100
120
Savings
A/C
Mutual
Fund
Current
A/C
Fixed
Deposit
Life
Insurance
Locker Loan
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people mainly use the Saving A/C and Fixed deposit facility from their primary
banks.
Table- 8 : Satisfaction Level Under CRM
INTERPRETATION :
According to the above table , 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.
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CHAPTER - 4
FUNCTIONAL ANALYSIS OF THE BANK
4.1 FUNCTIONAL ANALYSIS OF MARKETING DEPARTMENT:
The functional analysis of Marketing Department of ING VYSYS BANK shows that
maximum of the customers 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.
4.1.1 Distribution of Products/Services Used
Products/Services Availed from current bank
Table No10 : Products /Services Availed From The Bank
Savings
A/C
Mutual
Fund
Current
A/C
Fixed
Deposit
Life
Insurance
Locker Loan
108 13 7 32 19 19 9
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From the above table, it can be seen that 100% customers 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.
4.1.2 CRM
Under customer relationship management, 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.
4.2 FUNCTIONAL ANALYSIS OF HRM:
a) The functional analysis of HRM provides with the information that ING
VYSYA BANK is providing Training to up skill employees offered a
structured approach and focused on functional and behavioural skills.
b) Learning interventions were focused on fresher as well as lateral hires and
programs were designed to provide employees the skills required to perform
their roles and to progress into roles with higher accountability.
c)
Development tracks were put into place to help internal progression into senior
roles within the Branch Banking network.
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d) Bank is also reinforcing the status of compliance and standards as an
important element of how bank do business and all their trainings are focused
to ensure that their employees understand and meet their responsibilities.
e) This year bank also launched ING Young Banker Program (IYBP), an
initiative designed to prepare fresh graduates to join the Bank as Customer
Care Managers.
f)
ING Vysya Bank has tied up with Manipal Global Education to create the ING
Young Banker Program offering a Post Graduate Diploma in Banking
Operations and Finance (PGDBOF).
g) It provides the selected Young Bankers structured training in various aspects
of Banking and Management disciplines and overall development of
personality. This is one of a series of initiatives that bank have taken towards
strategic shift in the focus of Talent Acquisition from BUY to the MAKE
mode.
4.3 FUNCTIONAL ANALYSIS OF PRODUCTION & OPERATION:
4.3.1 Analysis of Production Department:
The Functional analysis of Production & Operation indicates that internal control
framework of the Bank is based on the three lines of defence model, which is a
comprehensive risk governance framework that provides clarity on roles and
responsibilities in terms of risk ownership and its management.
Under this model:
a)
The Executive Board members, Senior Management and Business Managers
who are the risk takers in the business collectively form the first linedefence.
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They are primarily responsible for the day-to-day management of risk in
accordance with agreed policies and internal controls at operational level.
b) The second line of defence consists of all units / functions that are responsible
for risk oversight and risk guidance in the Bank. These functions includes
Credit Risk, Market Risk, Operational Risk, Compliance, Legal, Finance,
Human Resource, etc. and is responsible for development of specific risk
policies, risk processes and risk controls that are in line with the regulatory
requirements.
c)
The Internal Audit Department, which is independent of the risk and business
functions, forms the third lineof defence. They are responsible to provide an
independent assurance of the design and effectiveness of internal controls over
the risks.The framework is supported with policies and minimum standards
that are adopted and implemented uniformly across the Bank.
4.3.2 Analysis of operational Department:
The Operational Risk Management (ORM) function manages the Operational,
Information and Security risks. The Bank has developed a comprehensive Operational
Risk Management framework supporting the process of identifying, measuring and
monitoring Operational, Information and Security risks. The Banks Operational Risk
Management framework is approved by the Risk Management and Review
Committee of the Board and is reviewed on a periodic basis.
TDS certificates are made available on internet banking platform. Customers can
access them without depending on branches or Phone Banking. Bank upgraded there
core banking platform during the year which improves bank processing time and will
translate into quick disposal of transactions at the branch counters.
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4.4 FUNCTIONAL ANALYSIS OF FINANCE:
The functional analysis of Finance department indicates the overview of financial and
business performance, which are listed as follows:
a) During the financial year 2013-14, the Bank continued to grow its key
businesses and revenues. The Bank reported healthy improvement in its
financial, business and other operating parameters.
b)
The Bank recorded a net Profit after Tax (PAT) of ` 6,579 million for the year
2013-14 from ` 6,130 million reported in the previous year.
c) Net Profit (` in Million) - The Net Total Income of the Bank for the year grew
by 16% to ` 26,203 million from ` 22,655 million reported during the Previous
year. During this period, the Net Interest Income (NII) grew by 14% to `
17,532 million from ` 15,386 million reported in the previous year.
d) Fee and Other Income increased by 19% to ` 8,671 million from ` 7,269
million. Operating expenses increased by 17% to14, 927 million from ` 12,728
million in the previous year. The Cost to Income Ratio increased from 56% in
the previous year to 57% in the current year.
e) Current year operating expenses included additional charge of ` 611 million on
account of retirement provision.
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Table No11 : Net Profit (2014)
The additional retirement charge of ` 611 million in FY 2013-14, the Cost to Income
Ratio declined from 56% to 55% which is shown in following figure:
Table No12 : Cost to Income Ratio
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4.5 FUNCTIONAL ANAYSIS OF INFORMATION TECHNOLOGY (IT)
The IT Service Management Group (ITSMG) of ING VYSYA BANK is the
technology unit responsible for the Banks IT strategy and execution. ITSMGs
responsibilities extend from conceptualizing technology strategy in harmony with
business strategy, to running day to day operations at the workplace and data centres.
ITSMG plays an active role in not just running efficient operations, but also in
assisting business in winning at the marketplace, true to its mission To be a strategic
business partner based on service excellence through technical leadership in a secure
and cost effective manner.The implementation of SAP Business Objects at ING
Vysya Bank, almost 2,200 reports are auto scheduled in a month. ING Vysyas
dependence on MIS team has reduced as business users can now generate reports on
their own. With this, reports have become accurate, reliable.
4.6 FUNCTIONAL ANALYSIS OF INTERNATIONAL BUSINESS
The functional analysis of ING VYSYS BANK indicates that:
a)
The Customers who want to pay their import bills in parts have to submit the
documents only once, instead of submitting the entire set each time.
b) The export credit as a percentage of adjusted net bank credit stood at 7.11%
(Previous year 6.72%) as of 31 March 2014.
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5.2 Experience of Working in the BANK
a)
I had undergone 2 months summer training in ING VYSYA BANK. My
experience of working there as an intern was satisfying and overwhelming.
b)
The working conditions of the Bank were good and satisfactory. I was
provided with the work-related facilities in the bank.
c) In the initial days of training, I was given theoretical knowledge about the
people working over there in the Bank and their roles and responsibilities in
the bank as per their designation.
d)
After gaining theoretical knowledge about the Bank, its employees, their job
Description. I was given practical work.
e)
The work environment of the Bank was very good and positive.
f)
The members of the Bank were knowledgeable, cooperative and very helpful
to welcome and cooperate with the trainee as a fresher.
g)
Also, they were keen on sharing their knowledge with the trainee as a fresher
on various aspects of doing the training over there.
h) My doubts and queries were welcomed and answered by the employees
working over there and they were cooperative enough to help and guide the
trainee in preparing the project report as well.
5.3 Practical Knowledge Gained in the Company
I completed 2 Months summer training in ING VYSYA BANK successfully. The
work performed and practical knowledge gained by me throughout the training
period is as follows:
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a) I did the work related to collection of KYC information from customers i.e.
Know Your Customer by calling them through Bank telephone lines of those
who have their account with the bank more than 2 years.
b) I was given the responsibility of maintaining records of CIF i.e.Customer
Identification Form of customers .
c) I as a Trainee undertook the task of maintenance of Employee Database in MS
EXCEL and also updating that data on daily basis.
d)
I did work related to handling of customer queries on phone and fascinating
them with a solution.
5.4 SUGGESTIONS
a)
The bank should increase its branch network.
b) Bank should expand its network of ATMs; it should have ATMs at cinema
halls, shopping complexes, office complexes, etc.
c) Bank should also use some promotional schemes for its products.
d) Many of the respondents are not aware about their key services. Bank has to
take some initiatives.
e) ING Vysya Bank has to improve its brand image i.e. create a position in the
mindset of the customer.
f)
It should more emphasize on advertisement. Advertisement is a most powerful
tool for position and brand in the mindset of customer.
g) ING Vysya Bank should ask for their customer feedback to know whether the
consumers are satisfied or dissatisfied.
h) Due to intense competition in the financial market. ING Vysya Bank should
adopt better strategy to attract and retain more customers.
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BIBLIOGRAPHY
WEBSITES
a) www.ingvysyabank.com
b) www.economictimes.com
c) http://ingvysyabank.com/personal-banking/products/about-
us/financial-results/fy-2014-2015.aspx
d) http://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-
June-2014.pdf
e) 83 rd Annual report of the bank for the year ended 2013-2014
http://www.ingvysyabank.com/http://www.economictimes.com/http://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/IngBlog/Media/PDF/Financial-Result-June-2014.pdfhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://ingvysyabank.com/personal-banking/products/about-us/financial-results/fy-2014-2015.aspxhttp://www.economictimes.com/http://www.ingvysyabank.com/
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