ING GROUP MERGED WITH VYSYA BANK

Topic Subject

: ING GROUP MERGED WITH VYSYA BANK : MANAGERIAL ECONOMICS

Submitted TO : Professor Sugandha

Submit ted By V.Santosh Kumar,
09M040, Section A.

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ING GROUP MERGED WITH VYSYA BANK

ING Group :
Over the last 150 years, ING Group has grown to become one of the largest life insurance organizations in the world. Today it touches the lives of over 50 million people across 65 countries. It offers a range of financial services including insurance, pensions, banking and asset management. In the year 2000, total assets of the group stood at over INR 28, 42,000 crores. ING Group has wide and deep experience in setting up companies in new markets, which require substantial investments underlining ING’s long-term commitment. In the last 20 years, ING Group has established successful life insurance companies in 15 countries contributing to the development of insurance services in these countries. ING seeks a careful balance between the interests of its stakeholders: its customers, shareholders, employees and society at large. It expects all its employees to act in accordance with the Group’s Business Principles. These principles are based on ING’s core values: responsiveness to the needs of customers, entrepreneurship, professionalism, team work and integrity.

VYSYA BANK :
ING Vysya Bank Ltd came into being in October 2002, when erstwhile Vysya Bank Ltd was merged with ING, a global financial powerhouse boasting of Dutch origin. Vysya Bank Ltd, one of initial banks to be set up in the private sector of India, was established in the year 1930, with the aim of providing a helping hand to all those who couldn't afford the privilege of enjoying the services of a bank. Eighteen years later, in 1948, the bank was listed as one of the Scheduled Banks of the country. With the passing time, Vysya Bank aimed at the number one position in all the private sector banks. In 1985, the dream of Vysya Bank's promoters came true and it became the largest private sector bank of India. Two years later, it laid the foundation of Vysya Bank Leasing Ltd. The following year, the bank was credited with laying down the innovative concept of 'Co branding of Credit Cards'. In 1990, Vysya Bank promoted a new entity - Vysya Bank Housing Finance Ltd. By 1992, the bank had reached another milestone, by having its deposits cross Rs. 1000 crores and the very next year, the number of its branches had gone past 300 . In the year 1996, Vysya Bank struck a strategic alliance with BBL Belgium and was also honored with two National Awards by Gem & Jewellery Export Promotion Council, for excellent performance in Export Promotion. Hardly two years later, the bank had introduced Cash Management Services and the commissioning of VSAT and was also rated as the Best Domestic Bank in India, by Global Finance (International Financial Journal - June 1998). Soon (2000), it established a state-of-the-art Date Centre, at ITPL, Bangalore . It was in 2000 only that ING and Vysya Bank set up ING Vysya Life Insurance Company, after receiving RBI nod, commencing its business in the following year. Two years later, a wide range
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ING GROUP MERGED WITH VYSYA BANK
of services were launched, including Vys Vyapar Plus - the range 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-bank net banking service . In 2002, ING took over the management of Vysya Bank and RBI gave its permission for the new name of the bank to be 'ING Vysya Bank Ltd'. In the following year, the bank introduced customer friendly products, mainly Orange Savings, Orange Current and Protected Home Loans. Its innovative products in the coming years included Solo - My Own Account for youth and Customer Service Line - Phone Banking Service (2005) and ‘AAA’ transactions - Anywhere, Anytime& Any how Banking - through networking of all its branches (2006) . .

ING VYSYA BANK :
ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001, and with in a short span of 3 years, it has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor force. The Company has over 1,00,000 customers as on 31 March 2004 and since the starting of the business it has achieved a premium income of Rs. 114 Crores as on 31 March 2004 In India, the General Insurance started working since 1850. The credibility for the same goes to the Triton Insurance, Calcutta. The appearance of Life Insurance was first in England in the 16th century. The policy of the life of ‘William Gybbons’ on June 18, 1653 is the first recorded evidence. Even before this, the annuities were found common in England. The first registered life office was the Hand-in-Hand society which was established in 1696. In India, the first Life Insurance Company was established in the Bengal Presidency in 1818 which was known as the Oriental Life Insurance Company. In the annuals of Indian Insurance, the year 1870 is a landmark as since then several offices were established and the insurance business gained a rapid momentum. Experiencing so may ups and downs, the Life Insurance business was found in a changed shape, particularly after the attainment of independence in 1947 and to be more specific after nationalization in 1956. Further, the General Insurance was nationalized in 1971. Thus the insurance business, of late, in India is under the ownership and control of the Union Government which is managed by a corporation.

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