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Summer internship project ING VYSYA BANK LTD.

BRIJENDRA KUMAR MEENA JHA ROLL NO-24 Sasmira institute of mgt studies & Research,Worli

Project Title
A study of factors influence to a company to choice of a particular bank

Location of the branch

ING VYSYA BANK LTD. Hanuman road, vile Parle(E)

Certificate
This is to certify that Mr. / Ms. ---------------------------------- of Sasmiras Institute of Management Studies & Research has successfully completed the project work titled --------------------- in partial fulfilment of requirement for the completion MMS as prescribed by the University of Mumbai. This project report is the record of authentic work carried out by him / her during the period from ----------- to ------------- . He / She has worked under my guidance. Signature Name Project Guide (Internal) Date :`

DECLARATION
I, Mr. Brijendra Kumar hereby declare that this project report is the record of authentic work carried out by me during the period from 2nd May 2012 to 2nd July 2012 and has not been submitted to any other University or Institute for the award of any degree / diploma etc. An attempt has been made by me to provide all relevant and important details regarding the topic to support the theoretical edifice with concrete research evidence. This will be helpful to clean the fog surrounding the various aspect of the topic. I hope that this project will be beneficial for the organization Signature Name of the studentDate

Acknowledgement
First of all express my gratitude to my project mentor Mr. GOPESH SHARMA(Sales Manager),ING VYSYA BANK LTD. Vile parle (EAST) His able guidance at each step of the project helped me to broaden my outlook on the project and in successful completition of the project. I shall always remember this polite way of correction and constant encouragement by asking various questions. I convey my regards and special thanks to ING VYSYA BANK for giving me this opportunity for doing this project. I special thanks to all my faculty members of sasmira institute of management & research for having equipped me this skill and ability of through their inputs, which assisted me in the completition of this project I wish to thanks all those people who have directly or indirectly been instrumental in successful completition of this project Finally I would like to thank my parents, family, friends, colleagues, and god almighty for their unending inspiration and encouragement

Introduction
Indian banking sector growing after financial reforms 1991 Retail banking one of the important part of the banking sector Policy issues of retail banking-financial capability, consummer protection, regulation & responsible lending India is the 2nd most emergent retail market among 30 countries Objective of the bank Satisfy customer with speedy & effective service Sustain in competitative age Catering more market share

India retail banking scenario

Retail banking is innovation of 21st century Focus on individual as corporate customer Reason for growth of retail banks in india Technology Introduction private and foreign banks Increased competition Innovation in banking products and service Economic growth Deregulation of interest rates Consumerism Changes in life style of working and middle class Focus on product and profitability Drive towards low NPAs

Challenges & Oppurtunity

opportunity Increase in purchasing power of individual Increase in FDI Liberal attitude towards debt Increasing business environment Motivating PEST factor Expansion of industries & business day by day

Challenges & oppurtunity

Challenges Retansion of the customer Increasing creditworthiness of public sector bank Proper functioning of distributed network Rising in debenture Legal issues

Background of the study

Increasing competition in since early 1980s Revolution of the private banks Recognize appropriate marketing strategies Enhancing corporate needs

Background of the topic

Attract big corporate fish for sustaining in the market Why company required fund For R & D Motivating employees Promoting company Smooth conduct of business Expansion & diversification Dividend & interest Replacement of assets

Statement of the problem

Difficult to manage time for researchers Frequent rejection Not interested to share financial info. To strangers Satisfy with the main banks service

Objective of the research

To find affecting factors to choice of a bank by companies To find the info related to banking service To find the feedback of corporate customer towards banking relation Analyze the customer prefererance

Scope & limitation of the study

Scope Large number of industries in MUMBAI Hyper competition in retail banking Wide variety Preference of the corporate Business variety & need differenciation Limitation Specific sector of customer Limited location Different perception of the corporate customer Sample size are same Interest of the customer towards questionarie Time management

Corporate decision making process

Problem recognition problem Problem research Evaluation of option option Research of available option Service choice Result Post use evaluation

Influence on decision

Situational influence

Internal influence

perception Motivation Learning Attitude

Physical environment Time

Social influence

cultural Sub cultural References

Bank selection criteria

Most important criteria in selecting banks Friends recommendation Reputation of the bank Availability of credit Charges on accounts Fast & efficient services Competitiveness of loan rates Time required for loan approval Location of the bank OD facility Cash crdit Wealth management Technological staff

Company profile-ING VYSYA BANK

ING of Dutch origin Entity formed with the coming together of erstwhile, Vysya Bank Ltd oct. 2002 grown in size and stature to encompass every area of present-day banking activity Unique identity in retail banking 468 branches, 13 ECs, 28 Satellite Offices and 357 ATMs as of March 31st 2010

Journey of 75 years
1930-Set up in Bangalore 1985-Largest Private Sector Bank 1987-The Vysya Bank Leasing Ltd. Commenced 1992-Deposits cross Rs.1000 crores 1993Number of Branches crossed 300 2001-ING-Vysya commenced life insurance business. 2003-Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans 2006-Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow Banking

The origin of group

group originated in 1990 from the merger between Nationale Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV Combining roots and ambitions, the newly formed company called Internationale Nederlanden Group

Companys mission
Leading, global, client-focused, innovative and low-cost provider of financial services through the distribution channels of the clients preference in markets where ING can create value

Product & services

Personal Account deposit-saving account, current account, term deposit, demat account,NRI service,safe deposit locker Loans-home loans, home equity loans, personal loan, gold loan, NRI home loan, loan against securities Wealth management-ING Fortuna trade, systematic investment plan, life insurance, general insurance, investment products Forex- forex travel card,demat draft, travelers cheques,telegraphic transfer, travel insurance, travel tips Cards-credit card, debit card Easy banking- internet banking, phone banking, mobile banking,SMS banking, ATM kiosks, payment service, estatement, important policies,

Product & services

Business SME-business loan, business loan(rent), business loan small scale industries(CGTSI), MPower ssi, MPower business account AGRI- term loan, short term loan Wholesale banking-cash management service, corporate and investment banking ,local debt, offshore borrowings, credit product and structured finance, CMS payments Financial market-market making and trading, asset liability management, financial market sales, research & analysis

Competitors of ING bank

Name HDFC Bank Last Price 573.95

Market Cap. (Rs. cr.)

135,094.76

Net Interest Income

27,286.35

Net Profit 5,167.07

Total Assets 337,909.49

ICICI Bank Kotak Mahindra

Axis Bank

894.40 598.85

103,123.08 44,463.17

33,542.65 6,180.24

6,465.26 1,085.05

473,647.09 65,666.46

598.85

42,642.97 15,879.67

21,994.65 5,359.20

4,242.21 802.61

285,627.79 57,596.07

IndusInd Bank 338.50

Federal Bank

452.00

7,731.35 5,558.39

776.79

60,626.78

ING Bank

374.20

5,622.52

3,856.81

456.30

47,000.53

Research design & methodology

Source of Data and Sampling Mumbai region SMES,midum, large corporate house Companys manager,employee,cfo Internet Infomedia yellowpages Askindia Just dial

Research design & methodology

Research designQuestionnaire close-ended and open-ended questions Interviewing Referances Data Collectionquantitative approach qualitative research approach cross-sectional survey method

Questionarie
Company name___________________________________________________________________________________ Address _________________________________________________________________________________________ Phone no ________________________________________________________________________________________ Designation of the contact person ____________________________________________________________________ Company turnover 20-30 40-70 70-150 150+ Company constitution Ltd. Pvt. Ltd partnership sole propr

Business segment __________________________________________________________________________________ How many groups do co. have?_______________________________________________________________________ Group co. name ____________________________________________________________________________________ Is company dealing with international market?(export /import) _____________________________________________ If yes companies ___________________________________________________________________________________ Nature of transaction _______________________________________________________________________________ current bankers types of relationship 1 _____________ __________________ 2 ______________ __________________ 3 _______________ ___________________ Have you heard about ING? Yes no Will you interested to start business with ING? Yes no

Data analysis
Factor analysis approach-reducing large no of sample into small Observeable manner Statistical approach Technological approach-using SPSS software

Data analysis & description

Descriptive AnalysisVisiting 150 companies Response rate 90% 77% are SMES out of 150 23% are medium & large Visiting companies whose turnover ranges between 20-100 cr

Respondant affiliation period

bank affliation period

less than 2 years 2-4 years 5-7 years more than 7 years

Factor analysis
It is used to get inter relationship dimension between factor Mean, correlation, regression, varience are found to get accuracy of research

Factors ranking
factors Convenience/ security Service provision Employers influence Bank image Promotion strategy Reputation Financial benefits/ technology mean
3.2513

rank 1 2 3 4 5 6 7

3.1008 2.5937 2.5538 2.2604 2.1841 1.9544

Conclusion
Conclusion Large No of respondent belongs to SMES 45% of the corporate have relationship with their main bank from 2-4 years HDFC, AXIS,ICICI are major player in retail banking

Recommendation
Recommendation Enhace the accessibility of the service Customer satisfaction are most important than anything else. Technological improvement attract new generation Bank should marketed itself in efficent & effective way Networking of the services are important factor Brand of the bank attract customer

Confirmation All the data are collected by personal efforts. It may be possible to occur some error in it. But,the process which is followed by me to analyze it is completely trustworthy.