Pankaj Full Report

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I C F A I U N I V E R S I T Y , D E H R A D U N Page 1

A Report OnTHE ENVIRONMENTAL FACTORS RESPONSIBLE FOR

THE ING VYSYA BANKS PERFORMANCE

Submitted By:

Pankaj Chakraborty

Enroll. No: 1001100040

THE ICFAI UNIVERSITY, DEHRADUN

ING VYSYA BANK LIMITED, DEHRADUN


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A Project Report OnA Project Study on THE ENVIRONMENTAL FACTORS

RESPONSIBLE FOR THE ING VYSYA BANKSPERFORMANCE

Submitted By:-

PANKAJ CHAKRABORTY

Enroll. No: 1001100040

ICFAI UNIVERSITY, DEHRADUN

In Partial Fulfillment of the Requirement of Summer InternshipProject, Program of Master of Business Administration, Batch

2010-12

Project guides:

Company Guide: Mr. Achin Mittal

Faculty Guide: Prof. Ajay kr. Saini

Date of Submission: April 20, 2011


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DECLARATION

I, Pankaj Chakraborty ( a student of ICFAI UNIVERSITY, DEHRADUN), hereby declare that I

have completed this project THE ENVIRONMENTAL FACTORS RESPONSIBLE FOR ING

VYSYA BANKS PERFRORMANCE in the academic year 2010-2012. This is the final report of

this project study. The information submitted in the above mention project is true and original tothe best of my knowledge.

PANKAJ CHAKRABORTY

(1001100040)


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Acknowledgement

Preservation, inspiration, and motivation have always played a key role in the success of any

venture. In the present world of competition and success, summer internship program with

research study is like a bridge between theoretical and practical working; willingly I prepared

this particular project.

To acknowledge all the persons who had helped for the fulfillment of the project is not possible

for any researcher but in spite of all that it becomes the foremost responsibility of the

researcher and also the part of research ethics to acknowledge those who had played a great

role for the completion of the project.

So in the same sequence at very first, I would like to acknowledge my parents because of whom

I got the existence in the world for the inception and the conception of this project. Later on I

would like to confer the flower of acknowledgement to Prof. Ajay kr. Saini who guide me that

how to do project through appropriate tools and techniques. Because ING VYSYA Bank has

trusted me and given me a chance to do my integrated research study, I would like to give

thanks to the organization and especially to Mr. Rohit Garg (Branch Manager) and Mr. Achin

Mittal (Operation Manager) from the depth of my heart.

Rest all those people viz. my friends and other staffs of ING VYSYA Bank who helped me

are not only matter of acknowledgment but also authorized for sharing my success.


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TABLE OF CONTENTS

PAGE

NO.

AUTHORIZATION

ACKNOWLWDGEMENT

PREFACE 7CHAPTER 1

Introduction

1.1Executive summary 8

1.2Industry introduction 9

1.3ING VYSYA BANK introduction 13

CHAPTER 2

2.1 Objective of the study 16

2.2 Scope of the study 16

2.3 Tools and Techniques 17CHAPTER 3

TABLES AND GRAPHS

3.1 Correlations between awareness of customer about ING VYSYA

Bank and their age.

20

3.2 Perception of ING VYSYA as a Bank 21

3.3 Market share in Dehradun in comparison to competitors. 22

3.4 Factor responsible for performance of ING VYSYA Bank in

Dehradun.

23

3.5 Comparative study with major competitors on basic parameters. 24

3.6 Rating of ING VYSYA as a good bank. 25

3.7 The effectiveness of commercial advertisement of ING VYSYA Bank. 26

CHAPTER 4

FACTOR ANALYSIS

4.1 Analysis of the factors responsible for ING VYSYA Banks

performance.

27

CHAPTER 5

RECOMMENDATION 30

CHAPTER 6

CONCLUSION 32

CHAPTER 7

APPENDICS

7.1 Questionnaire 33


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CHAPTER 8

8.1 References 37

8.2 Bibliography 37CHAPTER 9

GLOSSARY 38


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Preface

Decision making is a fundamental part of the research process. Decisions regarding that what you want to do, how you

want to do, what tools and techniques must be used for the successful completion of the project. In fact it is the

researchers efficiency as a decision maker that makes project fruitful for those who concern to the area of study.

Basically when we are playing with computer in every part of life, I used it in my project not for the ease of my but for the

ease of result explanation to those who will read this project. The project presents the role of financial system in life of

persons.

I had toiled to achieve the goals desired. Being a neophyte in this highly competitive world of business, I had come across

several difficulties to make the objectives a reality. I am presenting this hand carved efforts. If anywhere something is

found not in tandem to the theme then you are welcome with your valuable suggestions.


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The Indian Banking industry, which is governed by the Banking Regulation Act ofIndia, 1949

can be broadly classified into two major categories, non-scheduled banks and scheduled banks.Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,

commercial banks can be further grouped into nationalized banks, the State Bank ofIndia and itsgroup banks, regional rural banks and private sector banks (the old/ new domestic and foreign).

These banks have over 67,000 branches spread across the country in every city and villages of allnook and corners of the land. The first phase of financial reforms resulted in the nationalization

of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This inturn resulted in a significant growth in the geographical coverage of banks. Every bank had to

earmark a minimum percentage of their loan portfolio to sectors identified as priority sectors.The manufacturing sector also grew during the 1970s in protected environs and the banking

sector was critical source. The next wave of reforms saw the nationalization of 6 morecommercial banks in 1980. Since then the number of scheduled commercial banks increased

four-fold and the number of bank branches increased eight-fold. And that was not the limit ofgrowth. After the second phase of financial sector reforms and liberalization of the sector in the

early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with thenew private sector banks and the foreign banks. The new private sector banks first made their

appearance after the guidelines permitting them were issued in January 1993. Eight new privatesector banks are presently in operation. These banks due to their late start have access to state-of-

the-art technology, which in turn helps them to save on manpower costs. During the year 2000,the State Bank ofIndia (SBI) and its 7 associates accounted for a 25 percent share in deposits

and 28.1 percent share in credit. The 20 nationalized banks accounted for 53.2 percent of thedeposits and 47.5 percent of credit during the same period. The share of foreign banks

(numbering 42), regional rural banks and other scheduled commercial banks accounted for 5.7percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41 percent, 3.14 percent and

12.85 percent respectively in credit during the year 2000.about the detail of the current scenariowe will go through the trends in modern economy of the country.

Current Scenario:

The industry is currently in a transition phase. On the one hand, the PSBs, which are themainstay of the Indian Banking system, are in the process of shedding their flab in terms of

excessive manpower, excessive non Performing Assets (NPA) and excessive governmentalequity, while on the other hand the private sector banks are consolidating themselves through

mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets are

saddled withN

PAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional

sources, lack of modern technology and a massive workforce while the new privatesector banks are forging ahead and rewriting the traditional banking Business model by way of their


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sheer innovation and service. The PSBs are of course currently working out challengingstrategies even as 20 percent of their massive employee strength has dwindled in the wake of the

successful Voluntary Retirement Schemes (VRS) schemes.

The private players however cannot match the PSBs great reach, great size and access to low

cost deposits.T

herefore one of the means for them to combat the PSBs has been through themerger and acquisition (M& A) route. Over the last two years, the industry has witnessed several

such instances. For instance, HDFC Banks merger with Times Bank, ICICI Banks acquisitionofITC Classic, Anagram Finance and Bank of Madurai. Centurion Bank, Indusind Bank, Bank

of Punjab, Vysya Bank are marged with ING . The UTI bank- Global Trust Bank mergerhowever opened a pandoras box and brought about the realization that all was not well in the

functioning of many of the private sector banks.

Private sector Banks have pioneered internet banking, phone banking, anywhere banking, mobilebanking, debit cards, Automatic Teller Machines (ATMs) and combined various other services

and integrated them into the mainstream banking arena, while the PSBs are still grappling with

disgruntled employees in the aftermath of successful VRS schemes. Also, followingIndiascommitment to the WTO agreement in respect of the services sector, foreign banks, including

both new and the existing ones, have been permitted to open up to 12 branches a year with effect

from 1998-99 as against the earlier stipulation of 8 branches.

Tasks of government diluting their equity from 51 percent to 33 percent in November 2000 havealso opened up a new opportunity for the takeover of even the PSBs. The FDI rules being more

rationalized in Q1FY02 may also pave the way for foreign banks taking the M& A route toacquire willing Indian partners.

Meanwhile the economic and corporate sector slowdown has led to an increasing number of

banks focusing on the retail segment. Many of them are also entering the new vistas ofInsurance. Banks with their phenomenal reach and a regular interface with the retail investor are

the best placed to enter into the insurance sector. Banks in India have been allowed to provide fee-based insurance services without risk participation invest in an

insurance company for providing infrastructure and services support and set up of a separatejoint-venture insurance company with risk participation.

Governmental Policy:

After the first phase and second phase of financial reforms, in the 1980s commercial banks began

to function in a highly regulated environment, with administered interest rate structure,


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quantitative restrictions on credit flows, high reserve requirements and reservation of a signifiesand proportion of lendable resources for the priority and the government sectors. The restrictive

regulatory norms led to the credit rationing for the private sector and the interest rate controls ledto the unproductive use of credit and low levels of investment and growth. The resultant

financial repression led to decline in productivity and efficiency and erosion of profitability of

the banking sector in general.

This was when the need to develop a sound commercial banking system was felt. This was

worked out mainly with the help of the recommendations of the Committee on the FinancialSystem (Chairman: Shri M. Narasimham), 1991. The resultant financial sector reforms called for

interest rate flexibility for banks, reduction in reserve requirements, and a number of structuralmeasures. Interest rates have thus been steadily deregulated in the past few years with banks

being free to fix their Prime Lending Rates(PLRs) and deposit rates for most banking products.Credit market reforms included introduction of new instruments of credit, changes in the credit

delivery system and integration of functional roles of diverse players, such as, banks, financialinstitutions and non-banking financial companies (NBFC). Domestic Private Sector Banks were

allowed to be set up, PSBs were allowed to access the markets to shore up their Cars.


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ING VYSYA BANK:ALL ABOUTCompany overview:


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ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya BankLtd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of

Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. Itwas in the year 1930 that a team of visionaries came together to form a bank that would extend a

helping hand to those who weren't privileged enough to enjoy banking services. The origin of the

erstwhile Vysya Bank was pretty humble.It's been a long journey since then and the Bank hasgrown in size and stature to encompass every area of present-day banking activity and has carved

a distinct identity of being India's Premier Private Sector Bank.

In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made

rapid strides to reach the coveted position of being the number one private sector bank. In 1990,the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then

Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank Stupendous.

The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005.

The long journey of seventy-five years has had several milestones

y 1930 Set up in Bangalore

y 1948 Scheduled Bank

y 1985 Largest Private Sector Bank

y 1987 The Vysya Bank Leasing Ltd. Commenced

y 1988 Pioneered the concept of Co branding of Credit Cards

y 1990 Promoted Vysya Bank Housing Finance Ltd.

y 1992 Deposits cross Rs.1000 crores

y 1993 Number of Branches crossed 300

y 1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem &Jewellery Export Promotion Council for excellent performance in Export Promotion

y 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)

y 2000 State -of - the -art Date Centre at ITPL, Bangalore.RBI clears setting up ofING Vysya Life Insurance Company

y 2001 ING-Vysya commenced life insurance business.

y 2002 The Bank launched a range of products & services like the Vys Vyapar Plus, therange of loan schemes for traders, ATM services, Smartserv, personal assistant service,

Save & Secure, an account that provides accident hospitalization and insurance cover,Sambandh, the International Debit Card and the mi-b@nk net banking service.

y 2002 ING takes over the Management of the Bank from October 7th , 2002

y 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of17.12.02


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y 2003 Introduced customer friendly products like Orange Savings, Orange Current andProtected Home Loans

y 2004 Introduced Protected Home Loans - a housing loan product

y 2005 Introduced Solo - My Own Account for youth and Customer Service Line PhoneBanking Service

y 2006 Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere,Anytime & Anyhow Banking

Corporate Social Responsibility:

ING Vysya bank has always been committed to making a positive contribution to Society.Promoting education for under-served children is one such cause which has been very close tothe bank. Through the ING Vysya Foundation, it seeks to provide less advantaged children an

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

Born out of three business entities ofING in India, ING Vysya Bank, ING Life Insurance, andING Investment Management, the Foundation has been able to strike the right balance between

supporting organizations financially and contributing time and effort of the employees to nurtureand mentor these children, for a better future.

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

project in the Udaipur and Rajasmand districts of Rajasthan, North India. The initiative providedvillagers with access to clean water and recharged ground-water wells which in turn support the

local agricultural industry.

Business Chart:


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THERE ARE ALSO OTHERS DIFFERENT PRODUCTS AVAILABLE VIZ. Pension Plan,Health Insurance Plan, Fixed Deposit, Recurring Deposit, Credit Card, Debit Card, Different

Loan Facility etc.

The above Savings accounts products are different from each other by QAB, service charges,

Statement of accounts, closure of account, cheque book issues, DD, PO etc.

The above Current account products are different from each other by QAB, Cash Deposits,

RTGS, NEFT etc.

And the above Life Insurance Products are different from each other by Minimum Premium,Entry age, Policy term, different bonus, rate of return, coverage, other benefits etc.

Research Methodology

Objective of the study

Further category ofdifferent products

Type ofProducts

Name ofthe Bank

ING VYSYABANK

BankingProducts

SAVINGS ACCOUNT (Orange savings account, ING PlatinaSavings account, others viz. ING formula savings a/c,advantage salary a/c, orange salary a/c, solo-student,

freedom a/c, saral, general SB - metro & urban, semi urban,rural branches)

CURRENT ACCOUNT (General currenta/c, Comfort current a/c, Advantage

current a/c, Orrange current a/c)

Life

InsuranceProducts

Creating Life, Fullfilling Life,ING Ace


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Project study which is being conducted by me for the last three month is not only a formality forthe fulfillment of the two year full time Master of Business Administration. But being a

management student I tried my best to extract best of the information available in the market forthe use of society and people. The objectives have been classified by me in this project form

personal to professional, but here I am not disclosing my personal objective which has been

achieved by me while doing the project. Only professional objectives which are being coveredby me in this project are as following:-

To know about external environmental factors viz. competitors, economiccondition affecting ING VYSYA Banks performance.

To analyze the role of advertisement forING VYSYA Bank performance. To know the perception and conception of customers towards products and

services ofING VYSYA Bank Ltd.

To explore the potential areas for the new bank branches, this will provide bothprice and people to the bank.

Scope of the Study

Each and every project study along with its certain objectives also has scope for future. And thisscope in future gives to new researches a new need to research a new project with a new scope.

Scope of the study not only consist one or two future business plan but sometime it also givesidea about a new business which becomes much more profitable for the researches then the older

one.

Scope of the study could give the projected scenario for a new successful strategy with a properimplementation plan. Whatever scope I observed in my project are not exactly having all the

features of the scope which I described above but also not lacking all the features.

y Research study could give an idea of network expansion for capturing more market andcustomer with better services and lower cost, with out compromising with quality.

y In future customer requirements could be added with the product and services for gettingan edge over competitors.

y Consumer behavior could also be used for the purpose of launching a new product withextra benefits which are required by customers for their account (saving or current)

and/or for their investments.

y Factors which are responsible for the performance for bank can also be used for the

modification of the strategy and product for being more profitable.

y Factors which I observed while doing project study are following-

Competitors

Customer Behaviors


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Advertisement/promotional activities

Attitude of manpower and

Economic conditions

These all could also be interchanged with each other for each other in banks strategies for

making a final business plan to affect the market with a positive way without disturbing a lot tomarket, customers and competitors with disturbance in market shares.

Tools and Techniques

As no study could be successfully completed without proper tools and techniques, same with myproject. For the better presentation and right explanation I used tools of statistics and computer

very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools whichI used for project from statistics are-

y Bar Chartsy Pie charts

y Tables

Bar charts and pie charts are really useful tools for every research to show the result in a wellclear, 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 theoretical detail,simple on seeing the charts any body could know that what is being said:

Technological Tools

y Ms- Excely SPSS 15

y Ms -Word

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. Iprovided it simply all the detail of data and in return it given me all the relevant information.

SPSS 15, is a software through which I have done the factor analysis of my project study.

And in last Microsoft-Word help me for the documentation of the project in a presentable form.

Applied Principles and Concepts


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While I started to do the project the main thing which was the matter of concern was that aroundwhat principles I have to revolve my project. Because without having any hypothesis and

objective we can not determine that what output or result we are expecting form the project.

And second thing is that having only tools and techniques for the purpose of project is not

relevant until unless we have the principals for which we have to use those tools and techniques.

y Mathematical Averages/percentage

y Standard Deviation

y Correlation

Sources of Primary and Secondary data:

For the purpose of project data is very much required which works as a food for process whichwill ultimately give output in the form of information. So before mentioning the source of data

for the project I would like to mention that what type of data I have collected for the purpose ofproject and what it is exactly.

1. Primary Data:

Primary data is basically the live data which I collected on field while meeting with the existing

customers, and other people and I shown them list of question for which I had required theirresponses. In some cases I got no response form their side and than on the basis of my previous

experiences I filled those fields.

Source: Main source for the primary data for the project was questionnaires which I got filled bythe customers and other non customers or some times filled myself on the basis of discussion

with the customers.

2. Secondary Data:

Secondary data for the base of the project I collected from website of Bank,www.ingvysyabank.com/about us

Statistical Analysis

In this segment I will show my findings in the form of graphs and charts. All the data which I gotform the market will not be disclosed over here but extract of that in the form of information will

definitely be here.

Detail:


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Size of Data: 150 (sample size)

Area: Dehradun

Type of Data:

1. Primary

2. Secondary

Industry: Banking

Respondent: Customers and other non customers

Table1: Correlation between awareness of customers about

ING VYSYA Bank & their Age

NO. OF RESPONSE AGE

27 20-25

20 25-30

14 30-35

22 35-40

24 40-45


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18 45-50

12 50-60

13 > 60

FINDINGS: - The above graph shows that, the age of most of the respondents is between 20-25

(27 respondents) and 40-45 (24 respondents).

Table 2:- Perception ofING VYSYA as a Bank

TYPE OF BANK RESPONSES

PRIVATE 71

PUBLIC 29

PRIVATE/PUBLIC 30

DON'TKNOW 20

27

20

14

22

24

18

12

13

0 5 10 15 20 25 30

20-25

25-30

30-35

35-40

40-45

45-50

50-60

> 60

NO. OF RESPONSE

NO. OF RESPONSE


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FINDINGS:- The findings from this graph is out of 150 respondents 71 respondents only awarethat, ING VYSYA Bank is a private bank and a large number of people do not aware about this

Bank.

Table 3:- Market share in Dehradun in comparison to competitors

BANKNAME % OF SHARE

SBI 29%

ING VYSYA 10%

ICICI 27%

KOTAKMAHINDRA 8%

HDFC 11%

71

29

30

20

RESPONSES

PRIVATE

PUBLIC

PRIVATE/PUBLIC

DONT KNOW


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HSBC 5%

OTHERS 10%

FINDINGS: - This above shows that the market share of ING VYSYA Bank is very less incomparison to the competitors like ICICI, SBI etc.

Table 4:- Factors Responsible for Performance ofING VYSYA Bank in Dehradun

PARAMETERS % OF SHARE

PRODUCT 45%

ADVERTISMENT 3%

MANPOWER 25%

NET-BANKING 5%

PHONE BANKING 6%

0%

5%

10%

15%

20%

25%

30%29%

10%

27%

8%

11%

5%10%

% OF SHARE

% OF SHARE


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INVESTMENT SCHEME 13%

NETWORK 3%

FINDINGS: - Product range ofING VYSYA Bank is good and advertisement, phone banking,net banking, and network these are lacking for the well performance ofING VYSYA Bank.

Table 5:- Comparative Study with Major Competitors on Basic Parameters

PARAMETERS/BANKS INGVYSYA

ICICI SBI KOTAKMAHINDRA

HSBC HDFC

PRODUCT 17% 20% 29% 14% 10% 10%

ADVERTISMENT 2% 45% 16% 20% 8% 9%

MANPOWER 9% 44% 8% 4% 7% 28%

NET-BANKING 10% 42% 7% 14% 9% 18%

PHONE BANKING 10% 41% 4% 5% 30% 10%

INVESTMENT 4% 23% 44% 17% 6% 6%

0%5%

10%15%20%25%30%35%40%45%

45%

3%

25%

5% 6%13%

3%

% OF SHARE

% OF SHARE


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SCHEME

NETWORK 2% 38% 43% 4% 3% 10%

CREDIBILITY 14% 10% 40% 26% 5% 5%

FINDINGS:-On the basis of comparative study with other banks different factors, it is find out from this graph

that, credibility, products and net banking this factors are relatively effective than other factors.

Table 6:- Rating ofING VYSYA Bank as a Good Bank

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

PARAMETERS/BANKS

ING VYSYA

ICICI

SBI

KOTAK MAHINDRA

HSBCHDFC

PARAMETER RESPONSES

EFFICIENCY 73%

INTERNET BANKING 29%

ATMs 80%

PRODUCT RANGE 91%

NETWORK(BRANCHES) 14%

PHONE BANKING 32%


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FINDINGS:-

The finding from this graph is people preferING VYSYA Bank is a good Bank for their product

range and ATM facility.

Table 7:-The Effectiveness of Commercial Advertisement ofING VYSYA Bank

DAYS AFTERTHE AD IS SEEN POSITIVE RESPONSE

0-5 days 15

6-10 days 17

11-15 days 38

>15 days 80

73%

29%

80%

91%

14%

32%

RESPONSES

EFFICIENCY

INTERNET BANKING

ATMs

PRODUCT RANGE

NETWORK

PHONE BANKING


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FINDINGS: - ING VYSYA Bank shows very less advertisement and thats the reason the graph

shown that 80 respondents out of 150 respondents have seen the advertisement more than 15

days ago.

Factor AnalysisFactor analysis can be defined as a set of methods in which the observable and manifest

response of the individuals on a set of variables are represented as functions of a small number of

latent variables called factors. Factor analysis is used when the research problem involves a

larger number of variables making the analysis and interpretations of the problem difficult.Factor analysis helps researcher to reduce the number of variables to be analyzed, therebymaking the analysis easier.

Analysis of the factors responsible forING VYSYA BANKs performance:-

The KMO value should be greater than 0.5 for analysis to hold good. In this analysis its coming

out to 0.544 which is acceptable and significant value is 0.030 and it is less than 0.05 so alternate

15

17

38

80

POSITIVE RESPONSE

0-5 DAYS

6-10 DAYS

11-15 DAYS

>15 DAYS


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hypothesis rejected. The detailed outcomes of the KMO value and the communalities are shownin the tabular form.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy. .544

Bartlett's Test ofSphericity

Approx. Chi-Square 26.811

df 15

Sig. .030

Communalities

Communalities measure the percentage of variance in each variable explained by the factors extracted.

This is calculated by adding the squared factor loadings of a variable across the factors. The communityrange form 0 to 1. A high community values indicates that the maximum amount of the variance in the

variable is explained by the factors extracted from the factor analysis. A low community values indicates

that most of the variance in the variables is unexplained by the factors extracted from the factor analysis.

Communalities

Initial Extraction

EFFICIENCY 1.000 .435

INTERNET BANKING 1.000 .561

ATMs 1.000 .355

NETWORK 1.000 .699

PRODUCT RANGE 1.000 .367

PHONE BANKING 1.000 .227

Extraction Method: Principal Component Analysis.

Total Variance Explained

Total variance explained: -The total variance explained is the percentage of total variance of thevariables explained. This is calculated by adding all the community values of each variable and

dividing it by the number of variables.

Component

Initial Eigen valuesExtraction Sums of Squared

LoadingsRotation Sums of Squared

Loadings

Total

% ofVarianc

eCumulativ

e % Total

% ofVarianc

eCumulativ

e % Total

% ofVarianc

eCumulativ

e %

1 1.444 24.060 24.060 1.444 24.060 24.060 1.365 22.757 22.7572 1.201 20.012 44.073 1.201 20.012 44.073 1.279 21.315 44.0733 .972 16.198 60.2704 .888 14.794 75.0655 .802 13.371 88.436


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Total Variance Explained

Extraction Method: Principal Component Analysis.

Eigen value is greater than 1 for is component 1 and 2. And maximum is for the component 1 and it is explained

24.060% of total variance.

Component Matrix (a)

Component

1 2

1.EFFICIENCY .616 .235

2.INTERNETBANKING

.610 -.434

3.ATMs .377 .462

4.NETWORK -.116 .8285.PRODUCT RANGE -.600 .088

6.PHONE BANKING -.420 -.225

Extraction Method: Principal Component Analysis.a 2 components extracted.

In component 1, variable 1, 2 and 5 will be selected because it is greater than 0.5 and it will not

consider negative sign. And in component 2, variable 4 will be selected.

Component Number

654321

Eigenvalu

e

1.6

1.4

1.2

1.0

0.8

0.6

Scree Plot

6 .694 11.564 100.000


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Rotated component matrix:

The correlation matrix which is also known as rotated factor matrix that describes therelationship between variables and the factor may not help the interpreting the factors effectively,because many variables are related with many factors. Thus using the process called rotation, the

matrix is further simplified to interpret the factors. Rotation helps in developing clearer factorsloading patterns, with some variables having high loadings on a particular factor and other

variables having loadings nearer to zero. This helps researcher to interpret the factors in differentway.

Rotated Component Matrix (a)

Component

1 2

EFFICIENCY .641 -.156

INTERNET

BANKING

.256 -.704

ATMs .572 .167

NETWORK .374 .748

PRODUCT RANGE -.444 .412

PHONE BANKING -.473 .053

Extraction Method: Principal Component Analysis.Rotation Method: Varimax with KaiserNormalization.

a Rotation converged in 3 iterations.

Under factor 1 the attributes are:-

1. Efficiency2. ATMs3. Phone Banking4. Product Range

Under factor 2 the attributes are:-

1. Network (Branches)2. Internet Banking

So from this above analysis it is clear that among this six factors Bank should give more

importance on the Branches and Internet Banking.


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RECOMMENDATION

Based on the result obtained in this study, the recommendations are as follows:-

a. Since there is only one branch and a single ATM in Dehradun so it is necessary ofING

VYSYA Bank to open more Branches and install more ATMs to serve vast market in

Dehradun.

b. In this study a large number of respondents have seen very less advertisement of the ING

VYSYA Bank, so for the effective performance ofING VYSYA Bank they should give

more importance on promotional activities as advertisement.


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c. More resources should be allocated in the market of Dehradun as there is big untapped

market in Dehradun, so it becomes necessary for ING VYSYA Bank for taking an edge

over the competitors

d. ING VYSYA Bank should do more awareness program as most of the people dont know

that whether this bank is private or public bank.

CONCLUSION

Finally after studying 150 respondents, the conclusions of this project study are as follows:-

a. Consumers of Dehradun do not have good awareness level about ING VYSYA bank. But

products and services very effective for the ING VYSYA Bank performance.

b. The modern days technology like internet banking, phone

banking, used by ING VYSYA bank for providing banking services has

sent positive signals in the mind of consumers.

c. The network ofING VYSYA in DEHRADUN is lagging behind than its competitors like

ICICI bank and HDFC bank.


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d. The location of ING VYSYA Bank is another factor, which attract more customers.

Customer can reach easily as the bank located in the main city and the parking facility of

ING VYSYA Bank Dehradun Branch is also attracting more customers.

Since two years, ING VYSYA operated in Dehradun so that may be the one reason for less

awareness about the bank and less market share. So according to me to overcome these problems

the bank should go for more advertisement campaign and they should open more branches to

accelerate the banking operation for increasing the market share.

APPENDICES

QUESTIONNAIRE

A SURVEY ONTHE ENVIRONMENTAL FACTORS RESPONSIBLE FOR THE ING VYSYA BANKLTD. PERFORMANCE

With this survey, I hope to gain the view of people regarding different factors that are responsible for the ING

VYSYA Bank performance. Please be assured that your responses will be kept strictly confidential. If you haveany queries, please do not hesitate.

NAME..

AGE. SEX: MALE / FEMALE

ADDRESS:........................................

.CITYPIN CODE..........CONTACTNO. ..

For all the questions please either place in the in the appropriate options ORfill in the details in thespace provided.

1. ARE YOU A CLIENT OF ING VYSYA BANK?

YES


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NO2. DO YOU KNOW ABOUTING VYSYA BANKLTD.?

YES NO

3. ING VYSYA BANKIS A

PRIVATE BANK PRIVATE/PUBLIC BANK PUBLIC BANK DONTKNOW

4. RANKTHE ING VYSYA BANKONTHE FOLLOWEING FEATURES (RANK1FOR BEST AND 5 FOR WORSE ON 1 TO 5 SCALE)

EFFICENCY INTERNET BANKING ATMs NETWORK PRODUCT RANGE MOBILE BANKING

5. NAME THE BANKWHICH COMES IN YOUR MIND AT VERY FIRST ANDWHY?

.

6. DO YOU THINKING VYSYA BANKIS A SAFE PLACE FOR YOUR MONEY?

YES NO

7. DO YOU THINKING VYSYA BANKNEED MORE ADVERTISMENT?

YES NO

8. YOUR LEVEL OF SATISFACTION WITH ING VYSYA BANK-

VERY SATISFIED SATISFIED NORMAL DISSATISFIED VERY DISSATISFIED

9. IF YOU WILL HAVE OPTION AGAINSTING VYSYA BANKYOU WILL GO FOR


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KOTAKMAHINDRA BANKLTD. HDFC BANKLTD. ICICI BANKLTD.

OTHERS (please specify)

10. WHEN DID YOU LAST SEE THE ADVERTISEMENT OF ING VYSYA BANK?

0-5 DAYS BACK 6-10 DAYS BACK 11-15 DAYS BACK MORE THAN 15

11. DO YOU KNOW WHERE IS THE BRANCH OF ING VYSYA LOCATED IN DEHRADUN?

YES (please specify) NO

12. ING VYSYA BANKLTD. IN DEHRADUNIS EFFECTIVE BECAUSE -

BRANCH LOCATION ATM FACILITY

LESS QUERTERLY AVERAGE BALANCE (QAB) VARIETY OF PORDUCTS AND SERVICES OTHERS (please specify)

13. ING VYSYA BANKLTD. IN DEHRADUNIS NOT EFFECTIVE BECAUSE

SINGLE BRANCH LESS ADVERTISEMENT VARIOUS CHARGES INCLUDED WITH THE PRODUCTS OTHERS (please specify).

14. ING VYSYA BANKLTD. IS A GOOD BANKFOR-

SERVICE PEOPLE BUSINESS PERSONS POLITICIANS GENERAL PUBLIC ALL OF ABOVE

15. NAME ING VYSYA BANKLTD. GIVES BLUE-PRINTIN YOUR MIND OF:-

HIGH NETWORK FINANCILALLY EFFICIENT BANK HI-TECH BANK CUSTOMER FRIENDLY OTHER (PLEASE SPECIFY).


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16. WHATIS THE MOSTIMPORTANT FACTOR COMES IN YOUR MIND BEFORE CHOOSING A

BANK?

BRANCH LOCATION SAVINGS RATE LOAN RATE EXISTING BANKA/C OF PARRENTS OR FRIENDS

17. DO YOU THINKING VYSYA BANKNEED MORE BRANCHES INTHE DIFFERENT AREA OF

DEHRADUN?

YES NO CANT SAY

18. ARE YOU SATISFIED WITH THE SINGLE BRANCH OF ING VYSYA BANKIN DEHRADUN?

YES NO CANT SAY

Your suggestions regarding the banking ofING VYSYA BANKLTD. (optional)

....

.

THANK YOU FOR YOUR KIND ASSISTANCE.

DATE: - SIGNATURE


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REFERENCES

www.ingvysyabank.com/aboutus

www.reservebankofindia.com

en.wikipedia.org/wiki/banking

www.google.co.in/search/bankingregulations

en.wikipedia.org/wiki/businessresearch/factoranalysis

BIBLIOGRAPHY

ING: - INTERNATIONAL NETHERLAND GROUP

QAB: - QUARTERLY AVERAGE BALANCE


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ATM: - AUTOMATIC TAILOR MACHINE

RTGS: - REAL TIME GROSS SETTELEMENT

NEFT: - NATIONAL ELECTRONIC FUND TRANSFER

DD: - DEMAND DRAFT

PO: - PAY ORDER

DF: - DEGREES OF FREDOM

SIG: - SIGNIFICANT LEVEL

GLOSSARY

REAL TIME GROSS SETTELEMENT: - It is the process of transfer of funds through internet.

In ING VYSYA bank RTGS can be applied when the fund transfer is rupees two lakh or more

than two lakh.

NATIONAL ELECTRONIC FUND TRANSFER: - It is also a process of fund transfer through

internet. In ING VYSYA it is applied when the fund transfer is Rs. 1 to 1 lakh.

DEMAND DRAFT: - It is a monetary instrument, when the outstation payment is done then the

demand draft is used.

PAY ORDER: - It is also a monetary instrument, when the payment is done locally then the pay

order is used.

QUARTERLY AVERAGE BALANCE: - The minimum amount of balance that needs to keep in

the individuals savings account in a single quarter is called QAB.

DEGREES OF FREEDOM: - The number of values in a sample we can specify freely once we

know something about that sample.


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