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A Project Report ON Comparision of Ing Vysya Bank With Icici and HDFC Bank
A Project Report ON Comparision of Ing Vysya Bank With Icici and HDFC Bank
A Project Report ON Comparision of Ing Vysya Bank With Icici and HDFC Bank
Undersupervision of Mr. Amit Gupta Operation Manager ING VYSYA BANK ,Muzaffarnagar
SUBMITTED TO
Submitted by Nitesh Kumar Saini M.B.A IIInd Semester Roll No. 0827270053
Greater Noida Institute of Technology-MBA INSTITUTE 7,knowledge Park-II Greater Noida -201306
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DECLARATION .4 ACKNOWLEDGEMENT 5 LIST OF GRAPHS (4.1) CHAPTER-1 INTRODUCTION ..6-17 CHAPTER-2 REVIEW OF RELATED LITERATURE ..18-38 CHAPTER-3 DESIGN OF STUDY .39-43 THE STUDY OBJECTIVES OF THE STUDY METHODOLODY SCOPE OF THE STUDY LIMITATION CHAPTER-4 ANALYSIS OF DATA 44-65 CHAPTER-5 FINDINGS 66-68 LIMITATION.. 69-70 RECOMMENDATION 71-72
BIBLOGRAPHY 73
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ANNEXURE 74-82
CERTIFICATE
This is to certify that the Summer Training Project Report entitled being submitted by Mr. / Ms. .. in partial fulfillment of the requirement for the degree of the Master of Business Administration from U. P. Technical University, Lucknow, is an independent original research work done by him/her under my supervision and guidance.
Place: .. Date: ..
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DELARATION
I hereby to declare that the work for the Dissertation report entitled Comparison of ING VYSYA Bank with HDFC and ICICI Bank am completely done by me, based on my work conducted in ING VYYSA BANK, MUZAFFARNAGAR I also declare that this project work has not been submitted to any other university or Institution for the award of any degree, diploma, fellowship or other similar title. Admittedly, I have received suggestions and guidance from my guides for the partial fulfillment of M.B.A.
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ACKNOWLEDGEMENT
If words are considered to be signs of gratitude then let these words Convey the very same. My sincere gratitude to Mr. Amit Gupta junior manager, ING VYSYA BANK and giving necessary directions on doing this project to the best of my abilities. I am highly indebted to Mr. Amit Mahendru, Branch Manager, who provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible.
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 Ms. BARNALI SARKAR and other faculty members who taught me that how to do project through appropriate tools and techniques. Because ING VYSYA BANK has given me a chance to do my integrated project report., I would like to give thanks Dr. SHAKTI PRAKASH (Head of Department) GNIT-MBA INSTITUTE.
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CHAPTER -1
INTRODUCTION
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INTRODUCTION
Banking system of a nation is the shadow of nations economy. A healthy and profitable banking system is just like the backbone of nations economy. It is necessary for a nation to achieve growth and remain stable in this global world and global economy. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs) and the increased participation of private sector banks.
Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947,
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the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.
In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."
The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors
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move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4%) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Currently (2009), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail
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banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. The public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
PROFILE
ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services. ING serve more than 85 million private, corporate and institutional customers in Europe, North and Latin America, Asia and Australia. They draw on their experience and expertise, their commitment to
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excellent service and their global scale to meet the needs of a broad customer base, comprising individuals, families, small businesses, large corporations, institutions and governments
STRATEGY
INGs overall mission is to help customers manage their financial future. Capitalizing on changing customer preferences and building on our solid business capabilities, INGs strategic focus is on banking, investments, life insurance and retirement services. They provide retail customers with the products they need during their lives to grow savings, manage investments and prepare for retirement with confidence. With wide range of products, innovative distribution models and strong footprints in both mature and developing markets, ING has the long-run economic, technological and demographic trends on their side. ING aligns its business strategy around a universal customer ideal: saving and investing for the future should be easier. While steering the business through turbulent times, ING will execute efforts across all its business lines to strengthen customer confidence and meet their needs, preserve a strong capital position, further mitigate risks and bring its costs in line with revenue expectations.
COPERATE RESPOSIBILITY
ING wants to pursue profit on the basis of sound business ethics and respect for its stakeholders. Corporate responsibility is therefore a fundamental part of INGs strategy: ethical, social and environmental factors play an integral role in business decisions
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Shareholders equity Capital Ratios (%) ING Group debt/equity ratio Insurance capital coverage ratio Insurance debt/equity ratio Bank Tier-1 ratio Market capitalisation (in EUR billion) Shares (in millions): Outstanding Preference shares outstanding Key Performance Indicators - Net return on equity (ROE) - Net result growth Insurance - Value of new life business - Internal rate of return - Combined ratio (non-life) Banking - Cost/income ratio - RAROC after tax Assets under management (in EUR billion) Staff (FTEs end of period)
17
37
38
37
28
2,063 -
2,226 16
2,205 63
2,205 87
2,205 87
26.6%
25.4%
25% n.a. 805 13.2% 95% 63.9% 22.6% 547 632 12.1% 94% 69.4% 14.5% 492
124,661
124,634
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1930 Set up in Bangalore 1948 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 300 1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion
Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for 1998 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. The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save 2002 & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service. 2002 ING takes over the Management of the Bank from October 7th , 2002 2002 2003 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans
2004 Introduced Protected Home Loans - a housing loan product 2005 2006 Introduced Solo - My Own Account for youth and Customer Service Line Phone Page | 17 Banking Service Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow Banking
CHAPTER-2
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LITRATURE REVIEW
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A)
This account is the basic product of ING Vysya Bank. In this account minimum cash balance required to open an account & the Quarterly Average Balance requirement is Rs5000. Some of the major features and benefits of this account are:
FREE
Free issue of International Debit Card. Unlimited ATM transactions at over 25,000 (Cirrus/Cashnet) ATMs in India, where QAB is maintained. Shopping convenience at over 2 Lakh merchant locations, with the ING Vysya International Debit card. Unlimited ATM transactions at over 196 ING Vysya ATMs. 2 Demand Drafts with a value not exceeding Rs.50,000 per annum, where QAB is maintained. Unlimited usage of payable at par (PAP) Cheques. Transfer of funds across all branches.
National Electronic Funds Transfer (NEFT) through the internet banking
AAA Cash deposit (Customers) Free up to 2 transactions per month and a value limit of Rs. 50,000/-
BENEFITS
Free unlimited access to 25,000 + other bank ATMs- enhanced accessibility. Free multi branch, Multi-city banking convenience. Payable at par Cheques. Smartserv- Personal Concierge Services.
B)
This is the product of ING Vysya Bank which is targeted towards the upper middle
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class segment of the society. Basically the targeted segment is the age group between 18-40 yrs. This product has its significance particularly in Metropolitan/A grade cities. This product is also useful for people who travel frequently particularly to Metropolitan/A grade cities. Minimum cash balance required to open this account and Quarterly Average Balance requirement is Rs. 25000/Some of the major features and benefits of this account are : Maximum withdrawal limit from INGs ATM or any other banks ATM is Rs. 50,000. Maximum shopping limit through INGs ATM/Debit card is Rs. 75,000. Free Payable at Par cheques. Exclusive F1 themed, Internet Banking services. Formula 1 International Debit card. Free sms alerts on transactions above Rs. 1500. SPECIAL BENEFITS CARD FUEL GAUGE Fill fuel across any petrol pump in India and get the 2.5% surcharge waived. SPEED LAP Shop using your ING Formula savings account and get Formula One merchandise. RACE DAY Whenever there is a Formula 1 race anywhere in the world, there is a race
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for u as well. Shop using your ING Formula debit card on the day of the race and top 25 spenders for the race day wins vouchers from ING. 3 winners Gift vouchers worth Rs. 5000/ 10 runner ups- Gift vouchers worth Rs. 2000/ 12 second runner ups- Gift vouchers worth Rs. 1000/-
C) PLATINA ACCOUNTS
This product (account) of ING Vysya Bank is a special product for special class of customers. This can also be termed as Preferred Platina Banking. This product is designed to reduce the efforts put in handling banking and financial needs. This product has special features which are mainly meant for business class people who have to make large payments and have regular transactions. The Platina account holder becomes the preferred customer of the bank. The average quarterly balance (QAB) is Rs. 100,000
Features:
Dedicated Relationship Manager Our dedicated relationship managers can help you manage your money; while you pursue your passion, be it business or pleasure. Wealth Management Service Our preferred banking services offer you customized financial strategies on how to invest and where to invest based on simple financial risk profiling.
Use your ING Platina Gold Debit Card and withdraw cash up to Rs1 lac per day from any ATM, Avail a 1% cash back on shopping with your Debit Card. Account Representative Services Now when you are out building a business empire or taking that well deserved vacation, just nominate someone else to do your routine banking enquires. Preferential rates on ING products Get more out of the Platina relationship. Avail preferential rates on Demat, Bank Lockers, Personal and Home loans.
ICICI BANK
A) ICICI Savings Bank Account:
ICICI Bank is also offering the saving accounts as their products. The ICICI Bank International debit card is a debit-cum-ATM card provides with the convenience of acceptance at merchant establishments and cash withdrawals at ATM. Money Multiplier Facility Internet Banking is offered free of cost. Anywhere Banking facility entitles the account holder to withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI Bank branches. An average quarterly balance of Rs.10,000 only in metro and urban locations. Nomination facility is available. Interest is payable half-yearly. Third party withdrawal limit is only Rs 15,000 and free demand draft making facility for a month is only up to Rs 10,000. Free withdrawal limit from ATM card is only up to Rs 25,000 in all accounts.
The Gold Privilege Account brings the customer exclusive benefits, especially created for valuable customers. The minimum quarterly average balance (QAB) requirement for Gold Privilege account is Rs.50,000. Non-maintenance of the required QAB in any quarter attracts a charge as per the following guidelines: If QAB is between Rs.50,000 and Rs.25,000, charge of Rs.250 will be levied If QAB is between Rs.25,000 and Rs.10,000, charge of Rs.500 will be levied If QAB falls below Rs.10,000, charge of Rs.750 will be levied Your Gold Privilege account entitles you to select privileges and offers: BENIFITS Jump Queue facility in ICICI Bank branches. Free usage of payable-at-par chequebook. International VISA Gold debit card with higher daily withdrawal and spend limit. Waiver of annual fee for Debit card. Free and Unlimited access (cash withdrawals and balance enquiry) to any Bank's ATM in the country using ICICI Bank International Gold Debit card. Waiver of DD/PO charges for up to Rs.100,000 per day. Waiver of Anywhere Banking charges across all ICICI Bank branches. Priority Processing through ICICI Bank Phone Banking. Preferential rates for Gold Coins. Better rates for Foreign Exchange Service. Discounts on Safe deposit locker facility. Special asset deals from time to time.
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Free physical monthly account statement. Anywhere banking. Complete waiver on DD/PO charges. Preferential rate on purchase of ICICI Bank Pure Gold. Preferential rates on purchase of foreign exchange with a complete waiver on commission charges. Discounted rates on safety locker charges.
HDFC BANK
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limit of 1 lac per month.* Free Demand Drafts on HDFC Bank locations, upto a limit of 50,000/- per day at home branch. Self/Third Party Cash Deposit/Withdrawal at non-home branches, upto Rs 50,000/- per day free. Above Rs 50,000 a charge of Rs 2.90 per thousand on the full amount would be applicable.
Optional sweep out facility to transfer extra savings to a Fixed Deposit, at
the threshold of Rs.50,000/-.In the event of the balance in SavingsMax account exceeding Rs 50,000/-, the amount in excess of Rs 50,000/- will be swept out in to a Fixed Deposit with a minimum value of Rs 25000/- for a
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1year 1day period. Free BillPay & InstaAlerts for all account holders for lifetime of the account. Free Monthly Statement of Account. 50% off on the Locker rental for the 1st year only. Folio maintenance charges on Demat account free for first year. Free National Electronic Funds Transfer facility, NetBanking, MobileBanking. Free Passbook facility available at home branch for account holders (individuals). Free Email Statement facility
CLASSIFICATION/ CATEGORIZATION
So, for convenience of the project and comparison the different accounts can be classified into three categories:
Category A
Category B
Category C
SAVING (ICICI)
Service quality
ING Vysya Bank provides the top notch quality to its customers. They have so many special features that no other banks provide till date, like:
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1.
Special cabin/room for its customers to wait and relax when there is a rush or when customer is asked to wait for some time.
2.
Fastest RTGS and NEFT services, which takes place within minutes.
3. A well behaving staff and special highly sensitive customer care department. This is head by a well efficient customer care manager.
4.
7. It is the only Bank which provides the facility of withdrawal of 1 lakh rupees from any ATM at one go.
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In Rs. Crores %
Q3 2008-09
Q3 2007-08
% growth
YTD 2008
357 279
36.1%
43.3%
Total Income Operating Costs Operating Profit Operating Profit after Exceptional Items Provision &
150.1%
Contingencies Profit before Tax
84.9
218.1
186
17.3%
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Year Networth 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 0.001 1.40 1.60 3.00 11.50 162.10 5900.00 6527.00 6863.24 7067.90 7473.20 7094.00 10196.70 11101.90 14260.00
Deposits
Advances
Profits
Outlets 4 16 19 39 228 319 481 484 483 456 523 536 562 626 677
0.400 0.400 0.001 5.30 3.80 0.09 20.10 13.50 0.13 91.50 62.80 0.74 1414.30 813.70 1.13 8509.40 4584.80 50.35 74240.00 39380.00 443.10 81411.10 43163.10 371.90 80680.00 44180.00 687.50 91870.00 56120.00 863.50 104780.00 69367.30 590.01 125693.10 90805.90 (381.80) 133352.50 102315.20 90.6 154185.70 119761.70 889.0 204980.00 146500.00 1569.00
Even in the recessionary period the ING Vysya Bank is going in profits. While other banks are losing a big percentage of their expected profits.
FINANCIAL HIGHLIGHTS
Q3 Performance Net Profit after Tax (PAT) for the quarter ended 31 December 2008 increased by 22% to Rs.52.1 Crores from Rs.42.8 crores for the quarter ended 31 December 2007 and Profit before Tax (PBT) rose 17% to Rs.84.9 crores from Rs.72.4 crores. However, excluding the impact of exceptional items reported in the quarter ended 31 December 2007, PAT grew by 70% and PBT by 57% over the same quarter last year. Net Interest Income (NII) was up 19% to Rs.172.7 crores from Rs.144.9 crores and Fee & Other Income increased by 56% to Rs.149.1 crores from Rs.95.7 crores in the prior year. Nine months ended December08 The PAT for the period ended 31 December 2008 increased 23% to Rs.139.7 crores fromRs.114.1 crores for the period ended 31 December 2007 and PBT grew 17% to Rs.218.1 croresfrom Rs.186.0 crores.
However, excluding exceptional items reported in the previous year, PAT increased by 40% andPBT by 32% over the corresponding period last year. NII grew 36% to Rs. 487.2 crores from Rs.357.9 crores and Fee & Other Income was up 43% to Rs. 400.6 crores from Rs. 279.6 crores inthe previous year.
Business Highlights
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Total Deposits grew 25% to Rs. 22,401 crores as at end December 2008 from Rs.17,871 crores the year before. Current and Savings (CASA) deposits rose 8% to Rs.5,819 crores as at end December 2008 from Rs. 5,406 crores as at end December 2007. Advances grew 19% to Rs.16,014 crores in December 2008 from Rs. 13,409 crores in December 2007. Total Assets of the bank registered a 30% growth to Rs.29,050 crores. The Credit Deposit Ratio was at 71.5% in December 2008 against 75.0% in December 2007. The Gross NPA ratio and Net NPA ratio were at 1.84% and 1.09% respectively as at 31 December 2008 compared to 1.81% and 0.71% respectively as at 31 December 2007. The net worth of the Bank as at 31 December 2008 stood at Rs.1,568 crores compared to Rs. 1,459 crores as at end December 2007 and the Capital Adequacy Ratio stood at 10.72% in December 2008. In October 2008, the bank increased its capital through the issue of Tier 1 Perpetual debt amounting to approx. Rs.95 crores. Subsequent to the quarter end, the Bank raised an additional Rs.200 crores of Upper Tier 2 capital which has been subscribed entirely by ING Group.
Elimination (NCLP) bridge schools, ING provides much needed support to UNICEF, to fund, monitor, and provide children with quality primary education The Indian arm of the Chances for Children programs is run by the support of ING business units in India (ING, ING Life Insurance and ING Investment Management) through the ING Vysya Foundation. The Foundation was set up almost 3 year ago and was actively involved in the post Tsunami rehabilitation of the victims. ING Group set up a dedicated Tsunami Support account. In India, the Foundation partnered with five NGO providing much needed financial support, from rebuilding of schools to providing fishing boats, giving much needed hope to destroyed lives. The Indian chapter of CFC involves the partnership of the Foundation with 7 NGO working in primary education. Not only does the Foundation provide much needed financial support to these organizations but also runs strong voluntary programs giving the employees a chance to meet the children, work with them and take ownership and responsibility for the vision of its partners. The Foundation creates systems that ensure CSR activities within the organization. Various programs are initiated with the employees, whether it is taking 100 children for a day out to the planetarium or watching a film with them. It collectively influences the culture of
the organization; and also provides the employees with an opportunity to contribute to the vision of the organizations CSR.
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Recently ING Vysya Foundation launched its initiative Run Ricky Run. In this initiative, for every run Ricky makes the Foundation will sponsor one child to go to school through its association with its NGO partner in Bangalore, SUKRUPA. Addressing health care, poverty or human rights issues, there is no better way than through the corridors of education. The main focus of the Foundation in India is to support not for profit organizations working in the area of education.
CHAPTER - 3
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DESIGN OF STUDY
PRIMARY OBJECTIVE:
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To thoroughly study the products & services of ING Vysya Bank. To compare the banking products and services offered by ING Vysya Bank and other private banks (ICICI & HDFC) To study the customers expectations, behavior, responses & preferences for various saving accounts of ING Vysya Bank. To study the marketing strategies adopted by ING Vysya Bank to maintain & increase its market share & to retain its customers.
SECONDARY OBJECTIVE:
To study banking operations. To get the knowledge about marketing strategies of bank.
RESEARCH METHODOLGY
All the conclusions are based on the survey done in the working within the time limit. I tried to select the sample representative of the whole group during my
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training. I have collected data from people linked with ING VYSYA BANK and OTHER BANK
RESEARCH DESIGN:
Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement.
COLLECTION OF DATA:
1: Secondary Data: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers ,magazines, management
books, preserved information in the companys database and website of the company.
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Primary data: All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire. SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Different Account Holder and Service receiver from the bank Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview. SAMPLE SIZE: My sample size for this project was 100 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 100 respondents.
DATA COLLECTION INSTRUMENT DEVELOPMENT:
The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected
SCOPE OF STUDY
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The scope of any study can be defined in terms of the area and the sample size which will be reviewed for satisfying the objective of the subject matter. The first part of the report can be made on the basis of the secondary data collected about the different saving bank accounts of private sector banks present in Muzaffarnagar via internet, magazines and journals. The scope of the study is in Muzaffarnagar, and around 100 people are targeted for the survey which is done through questionnaire. As the scope of study is limited to Muzaffarnagar and to 100 people only, thus picture presented in the testimony may not be the complete picture.
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CHAPTER- 4
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HDFC
Saving Regular Account
ICICI
Savings Account
ING Vysya
Orange Savings Account
AQB MAINTAINANCE Rs 750.00 per Rs CHARGES SWEEP OUT FACILITY FREE TRANSACTIONS
quarter Only. Available 3 per month from SBI/Andhra Bank ATM THIRD PARTY CASH N.A N.A per Only. N.A
750.00 Rs 750.00 per quarter quarter Only. Available Unlimited from any banks ATM
per
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PARTICULARS
HDFC
ICICI
ING Vysya
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Account name
AQB (Average Quarterly Balance) Free DD Third Party Cash Deposit Smart-serv Free Transaction Special Features Jump Que Facility
N.A. N.A.
Present Unlimited 12 annual passes of famous night clubs and restaurants, across India Present
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HDFC
Privileged Platinum 2,00,000
ICICI
Titanium 75,000 + TRV of 5 to 10 lac
ING Vysya
Platina 1,00,000
DD/PO Wavier PAP books One Lakh Cash withdrawal from any ATM Cash Back Offer on Shoping* Cashnet enabled credit/debit card
N.A. unlimited
N.A.
N.A.
Available*
N.A.
N.A.
1 to 2 %
N.A.
N.A.
Available
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As per the data collected and analyzed, most of the people in Muzaffarnagar have chosen ICICI Bank for their banking. It is because ICICI was the first private banking player in the newly formed state (U.K.) they hold the accounts of 51% of the respondents. Next rank comes to HDFC with 31% of accounts. ING has captured 18% (speculative) of the market share within 6 months of its establishment in the State.
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(QAB )
NIL 5,000 10000 > 10,000
12%
8% 35%
45%
It is the amount which one has to maintain for a single quarter. 45% of the respondent were maintaining 5,000 rupees. 35% were maintaining nothing, 12% were holding 10,000 as their QAB. And 8% were holding more than 10,000 rupees.
Out of 45% of the respondents who maintain 5,000 rupees as their QAB, most of the respondents are having account in ICICI and ING Vysya bank.
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10%
90%
Smart serv is type of special services in which a person can send/present gifts to any of his/her known in any of the city by just telling your banker the address of the person. The gift will be purchased and will be delivered by the bank only, and the amount for the gift will be automatically deducted from the senders account. 10% of the people who were really enjoying some of the special services provided by bank were found to be associated with ING Vysya Bank.
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E)
ChartTitle
60% 50% 40% 30% 20% 10% 0% AXISBANK ICICI BANK Series1 ING Vysya BANK Series2 Series3 HDFC BANK
51% of the people have rated ICICI Bank as 1st, this is because of wide market share of ICICI Bank. 2nd Rank has been awarded to HDFC Bank by approximately 23% of respondents. 3rd rating is given to ING Vysya bank by approx. 15% of the respondents. And last comes AXIS Bank. Thus ING Vysya is better than AXIS and HDFC Bank in its Marketing Strategy.
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F)
POINTSOFINTERACTION
100%
ATM
VISIT BRANCH
PHONE BANKING
INTERNET BANKING
All of the bank customers interact most frequently with the bank by doing their transactions from ATM. 35% of them visit branch quite often and 35% of the respondents also go for phone banking. Internet Banking is the 2nd most point of interaction of bank and the customer. People who use Internet banking and mobile banking were found to be associated mainly with ICICI and ING Vysya Bank. ING Vysya is having best Internet banking attributes. This implies the technological advancement in Muzaffarnagar Citizens.
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4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 BANK CHARGES WORKING HOURS LOCATION ING HDFC ICICI AXIS
4 - Most/excellent 2- Fair
1. Most of the people who are associated with ING Vysya Bank found their Bank charges quite nominal and well justified. About 97% of the ING Vysya customers state the same. Even AXIS Bank is charging best rates of charges to its customers. ICICI customer agrees that they think of getting better bank charges. 2. People have ranked ICICI at the top notch for its 12hrs. working hours 8 to 8. Even ING Vysya operates from 10 to 7, which is 2 hrs. more than HDFC and AXIS. Therefore ING Vysya Bank has an edge over AXIS and HDFC as per working hours.
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3. 80% people have again rated ICICI as one of the best banks location wise. Its large no. of branches provides access to bank anywhere. As ING Vysya has got
number other branch in Uttar Pradesh it has been rated lowest as per most of the respondents and ING Vysya customers. According to respondents even AXIS and HDFC bank have no. of branches and are located at an accessible location.
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 CUSTOMER CARE BEHAVIOR OF STAFF VARIETY OF ACCOUNTS ING HDFC ICICI AXIS
4- Most/excellent 2- Fair
4. Almost all respondents who are in connection with ING Vysya Bank have rated it best in the customer care services. 55% of the respondent who are associated with HDFC Bank have rated HDFC, reasonably good in customer care services. But customer of ICICI and AXIS Bank are not very much delighted with customer care services of their bank. This way ING Vysya has got an advantage of delivering excellent customer care services.
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5. In case of Behavior of the Staff most of the ING Vysya customers have rated ING the best. Almost 100% of the ING customers are well satisfied with their
bankers behavior. On the other hand 72% customers of ICICI bank and other respondents as well have ranked ICICI as very disappointing as per behavior of the staff. Most of them stated that when they visit branch, any of the employee there, hardly pays full attention towards them. Even some of the preferred customers have to stay in a cue or have to wait for long to get their job done by the bank. HDFC and AXIS Bank has been rated reasonably good by the respondents as far as behavior of the staff is concerned. 6. With the criteria of Variety of Accounts, people have rated ICICI as the top one. This is because ICICI is having bank accounts for the different customers with different needs. They have account for old age citizen, pension account, kids account of various types and many more. Where as ING Vysya has been rated least, because they are operating with only 3 types of saving accounts in the city. They do have various other kinds of accounts but these are not available in Muzaffarnagar. This is probably due to very less time of their establishment. They are not providing the full services because its been just 8 months that they have established in Uttar Pradesh (Muzaffarnagar).
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4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 PROCESSING SPEED QUERIES HANDELING ING HDFC ICICI AXIS
4- Most/excellent 2- Fair
7. Most of the ING Vysya customers are happy with processing speed of their banking transactions. ING Vysya Bank boasts about delivering the commitment. According to the ING an account takes 5 days for activation. 8. The queries handling is done very well by ING Vysya bank according to the respondents. 57% of the ICICI customers are unhappy with the bank regarding their queries handling. Whereas AXIS Bank has been rated good.
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1)
I will prefer, if my friend recommends me to open an account in a particular bank. ( WORD OF MOUTH)
According to the respondents, they mainly disagree for opening a bank account on their friends or relatives recommendation. And to 27% of the respondents it doesnt matter. Very few people agree to the recommendation. This means that the WORD OF MOUTH is not an
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essential marketing channel for opening an account in bank. People first try to find the real facts by their own.
2)
Many people are bothered about their QAB, and to 23% people QAB doesnt mean much. According to them they were never charged for not keeping enough QAB.
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STRONGLY AGREE
AGREE
DOESNT BOTHER ME
DISAGREE
STRONGLY DISAGREE
4% 8%
10%
18%
60%
Most of the respondents were unaware of the new advertisements of various banks. For them it hardly plays any important role in capturing market share.
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5%
6%
2%
2%
STRONGLY AGREE
AGREE
DOESNT BOTHER ME
DISAGREE
STRONGLY DISAGREE
Most of the respondents were very much bothered about the distance from their bank and home. That implies that PROXIMITY to bank is one of the very BOLD VARIABLE for account opening.
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5)
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STRONGLY AGREE
AGREE
DOESNT BOTHER ME 7%
DISAGREE
STRONGLY DISAGREE
20%
5%
55%
13%
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STRONGLY AGREE
AGREE
DOESNT BOTHER ME
DISAGREE
STRONGLY DISAGREE
15% 33%
26%
5%
21%
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SWOT ANALYSIS
Strengths
ING as one on the biggest financial MNC. 7th in 500 fortune Only foreign bank which has acquired an Indian private bank (Vysya Bank) Higher rate of interest than other private banks Most of the financial plans are legalized under 80(ccc) Top notch customer care and staff behavior Unique features with different kinds of accounts Working hours
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Opportunities New segment of doctors, students and CAs as they like innovation in their financial needs and like to enjoy the services. High class (upper strata) population of city Increase in different kind of financial products NGO and Public Relations
Threats Presence of two top private banking players in the market (ICICI & HDFC) Large market share already captured Non willingness of Muzaffarnagar citizens to change for something new, or to try innovation in their banking.
CHAPTER - 5
FINDINGS
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The study conducted directs toward the Private Banking scenario in the city Muzaffarnagar Study suggested that a large market share has been captured by ICICI Bank and HDFC Bank. Out of two ICICI is enjoying the maximum market share. This is probably because of the reason that ICICI was the first private bank in the state as well as in city. Most of the people know about the account and services associated with it. Most of the people are maintaining 5,000 rupees as QAB in their private banking account, but most of them except ING Vysya customer are unaware of the special facilities available. People have ranked ICICI bank as best in the city. This is may be due to the oldest persistence of ICICI bank in the city. They have rated HDFC as 3rd and ING Vysya as 2nd.
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Almost everyone comes in contact with their bank by the use of ATM machines. 80% of the respondents were using internet banking that implies high literacy rate in the city. People think that the staff of ICICI does not behave well with their customers but ING Vysya customers are glad with the staff of ING Vysya Bank. But on the other hand ICICI customers are very happy with the working hours of ICICI bank. HDFC customers are a bit unhappy with the working hours of their bank. People are very much bothered by the distance between their home and the bank. They believe that this a major issue which influence the customer to open an account in any bank. Most of the people are not entertained by the television advertisements about various banks. Even word of mouth has not been proved as
strong marketing channel about banking. It implies that for banking customer is looking at the commitment, real facts, distance between their home and bank, behavior of the banker, QAB and many more.
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LIMITATION
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LIMITATIONS
ING Vysya Bank have a very few branches in Northern India Customer are not aware about the ING Vysya Bank ING Vysya Bank have fewer banking/financial product compare to other ING Vysya Bank have very few ATM .
Research is self-financed so money is a major constraint Respondents are biased toward their current bank.
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RECOMMENDATION
RECOMMENDATION
Many of the respondent are not aware about their key services. Bank has to take some initiatives. Bank can post a list of services that they can rendered to the customer inside the bank premises. ING Vysya Bank has to improve its brand image i.e. create a position in the mindset of the customer.
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It should more emphasize on advertisement. Advertisement is a most powerful tool for position and brand in the mindset of customer. ING Vysya Bank should ask for their customer feedback to know whether the consumer are satisfied or dissatisfied.
Due to intense competition in the financial market. ING Vysya Bank should adopt better strategy to attract more customer
BIBLIOGRAPHY
WEBSITES
www.ingvysyabank.com
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ANNEXURE
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Questionnaire
Comparative analysis of saving bank accounts of different private sector banks
Dear respondent, We are conducting a research to know the general perception and attitude of customer towards the products & services that are offered by ING Vysya Bank & other private banks (ICICI & HDFC) in Muzaffarnagar. The information will be valuable input for the research and we assure you that the information will be kept confidential. We hope that you will co-ordinate with us and give quite a few minutes from your precious time and give the genuine answer.
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Educational Qualification:-
Phone no.(Optional):Annual Income:Below 1 Lac 1 Lac 3 Lac 3 Lac - 5 Lac Above 5 Lac
1) Do
you have a saving account in any of the Private banks in Muzaffarnagar ? a) Yes b) No
2. ICICI Bank
3.
HDFC Bank
(Please
Specify)
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3) Do you have complete knowledge of the saving account and services associated with that account you have? a) Yes b) No c) Cant say 4) Are you a preferred/privileged customer of your bank? a) Yes b) No
5) How much Quarterly Available Balance (QAB) you need to maintain? a. Nil b. 5,000 c. 10,000 d. More than above
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6) Does
your Bank provide you some special services like, smart serve, mi-
banking? a. Yes b. No
7) Please rate the following banks on the scale of 4 where 1is the least and 4 is the most according to your perception you are having for reputation of the banks. ING Vysya Bank ICICI Bank HDFC Bank Axis Bank
Visit Branch ATM Phone Banking Drop Box Internet Banking Mobile Banking
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9) Please rate the following banks on the basis of your perception about the given attributes out of 4, where 1 is the least/disappointing and 4 is the most/excellent
S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9.
ATTRIBUTES Bank charges Customer care Variety of saving bank account Behavior of the staff Working Hours Location Personalized attention Processing Speed Grievance/queries handling
HDFC Bank
Axis Bank
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10) Please rate the following variables which influence you when it comes to open an account on the scale of 1 to 5 where 1 is strongly disagree and 5 is strongly agree.
SL NO STATEMENTS SRONGLY STRONGLY DISAGREE AGREE
1 2 3 4 5
I am very cautious about Average Quarterly Balance non-maintenance charge. I am generally motivated by the television add for saving bank account. I m generally bothered about the distance between my home and the Bank. I prefer saving bank account as it is popular. I give importance to DD and cheque facility in saving bank account. I give preference to instant alert, netbanking, phone banking, and mobile banking. I give importance to the third party cash
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7 8
Tthank you for your cooperation for devoting your valuable time and sharing the valuable information with us which will help us to complete our project successfully. Place Date.. Signature of the respondent
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