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Topic- Treasury management for ING Vysya Bank for the last 3 years

Submitted to :-“Mohammad ehsanul haq sir”

Submitted by:-kamalpreet kaur
roll no:- r1814b39
reg id:- 10800174


Banking in India originated in the last decades of the 18th century. The first banks were The General
Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct The
oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its
origins back to June 1806 and that is the largest commercial bank in the country. Allahabad Bank,
established in 1865 and still functioning today, is the oldest Joint Stock bank in India. 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, 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

The Origin of ING Group

ING group originated in 1990 from the merger between “Nationale Nederlanden” the largest Dutch
Insurance Company and “NMB Post Bank” Group. Combining roots and ambitions, the newly formed
company called Internationale Nederlanden Group ン. Market circles soon abbreviated the name to I-N-
G. The company followed suit by changing the statutory name to ING Group. ING is a global financial
services company providing banking, investments, life insurance and retirement services and operates
in more than 50 countries.
Introduction about ING
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 excellent service and their global scale to meet the needs of a broad customer
base, comprising individuals, families, small businesses, large corporations, institutions and


ING’s overall mission is to help customers manage their financial future. Capitalizing on changing
customer preferences and building on our solid business capabilities, ING’s 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
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 ING’s strategy: ethical, social and
environmental factors play an integral role in business decisions

In this artical presents a theory of corporate risk management that attempts to go beyond the “variance-
minimization” model that dominates most academic discussions of the subject. It argues that the
primary goal of risk management is not to dampen swings in corporate cash flows or value, but rather
to provide protection against the possibility of costly lower-tail outcomes–situations that would cause
financial distress or make a company unable to carry out its investment strategy. (In the jargon of
finance specialists, risk management can be viewed as the purchase of well-out-of-the-money put
options designed to limit downside risk.)
By eliminating downside risk and reducing the expected costs of financial trouble, risk management
can also help a company to achieve both its optimal capital structure and its optimal ownership
structure. For, besides increasing corporate debt capacity, the reduction of downside risk also
encourages larger equity stakes for managers by shielding their investments from “uncontrollables.”
The artical also departs from standard finance theory in suggesting that some companies may have a
comparative advantage in bearing certain financial market risks–an advantage that derives from
information acquired through their normal business activities. Although such specialized information
may lead some companies to take speculative positions in commodities or currencies, it is more likely
to encourage “selective” hedging, a practice in which the risk manager's “view” of future price
movements influences the percentage of the exposure that is hedged.
But, to the extent that such view-taking becomes an accepted part of a company's risk management
program, it is important to evaluate managers' bets on a risk-adjusted basis and relative to the market. If
risk managers want to behave like money managers, they should be evaluated like money managers.

As per this artical Department of the Treasury issued the following news release:
With Americans poised to celebrate the 40th anniversary of Earth Day this week, the U. paper in the
first five years alone. In addition to greatly reducing costs, enhancing customer service and minimizing
Treasury's environmental impact, the move from paper to electronic transactions will increase

Market Discipline in Post- Transformation Era: A Study on Banking Sector
This artical attempts to investigate the existence of Market Discipline in the Indian commercial banks
over the period 2001-2008 i.e., 7 years. This period is characterized by second round of banking sector
reform as suggested by Narsimham Committee for banking restructuring and market discipline. A total
of 63 scheduled commercial banks were taken as the sample size which included 27 public sector
banks, 23 private banks and 13 foreign banks. Two dependent variables viz. total deposits held by
banks and interest paid on deposits to total deposit ratio are considered in this study. We hypothesize
that the dependent variables in this study, which signifies the existence or otherwise of market
discipline depends on three sets of variables: a) bank-specific; b) banking industry level; and c)
macroeconomic. The findings show that while bank-specific factors, and in particular, policy variables,
in addition to bank-specific indicators tend to be dominant in case of private banks. For foreign banks,
the macroeconomic conditions tend to overwhelm bank-specific factors in explaining behavior of
depositors. This provides testimony of market discipline in the banking sector in India.

In this article ING Vysya Life Insurance has drafted growth plans that include expanding its presence
to 20 cities and entering the pension sector once the government finalises the guidelines.
"The ING Group has a strong presence in pension sector in countries like Holland, Poland, Mexico. We
are keen to enter the Indian pension sector as well," said ING Vysya Life president Yvo Metzelaar.
The government is currently examining the report on pension reforms prepared by the Insurance
Regulatory and Development Authority (IRDA). life insurance companies are allowed to enter pension
sector without registering with IRDA separately.

Interest-rate risk in the Indian banking system
As per this research many observers have expressed concerns about the impact of a rise in interest rates
upon banks in India. we measure the interest rate risk of a sample of
major banks in India, using two methodologies. The first consists of estimating the
impact upon equity capital of certain interest rate shocks. The second consists of
measuring the elasticity of bank stock prices to fluctuations in interest rates.
We find that as of 31 March 2002, many major banks had economically significant
exposures. Using the first approach, we find that roughly two-thirds of the banks in
the sample stood to gain or lose over 25% of equity capital in the event of a 320 bps
move in interest rates. Using the second approach, we find that the stock prices of
roughly one-third of the banks in the sample had significant sensitive.
As per my whole research my research is descriptive research.
Descriptive research, also known as statistical research, describes data and characteristics about
the population or phenomenon being studied. Descriptive research answers the questions who,
what, where, when and how.
As I have explain what is treasury management how they do it is a descriptive research.

Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, Descriptive research cannot be used to create a causal
Data collection is secondary data.Because most of the data is taken through the journal, net.It is
mostly second hand data which I have it is a secondary data.

As per bellow results ing vyasa bank’s income is decreasing yearly.As in 2007 total income was
76587 but in 2008 in decreased 66291.Insurane operation is decrase manily in 200 so that its all
net income is deceases in 2008.
Operating expances is increasing in ing vyasa bank because of banking operations.In 200 there is
15725 expance and in 2007, 15481.So it increased but not so much.
Shareholders equity is very low in 2008 it is only 17.Before 2008 it is near about 35+.And in
2008,29 is a total equity.and in 2007 it is 40.So it decreased again.

The ING Vysya BANK Ltd.

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank
Ltd, 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. It was 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.
ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of
ING Investment Management is situated at Mumbai. The synergies arising out of the three
distinct but complimentary businesses are bound to be an asset to the group in the changing
market dynamics of the future. The first such signs are already visible on the horizon with
combined products being successfully launched by the different entities of the group in
conjunction with each other
It's been a long journey since then and the Bank has grown 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.
Types of saving accounts offered by ING Vysya Bank


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 issue of International Debit Card.
Unlimited ATM transactions at over 25,000 (Cirrus/Cashnet) ATM’s in India, where QAB is
Shopping convenience at over 2 Lakh merchant locations, with the ING Vysya International
Debit card.
Unlimited ATM transactions at over 196 ING Vysya ATM’s.
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 channel.
Electronic Bill Payment service.
Smartserv - Personal Assistance Service.
Statement of Account through E-mail.
Mi-b@nk - Internet banking facility.
RTGS (Real Time Gross Settlement) transactions at all branches.
AAA Cash deposit (Customers) – Free up to 2 transactions per month and a value limit of Rs.

Free unlimited access to 25,000 + other bank ATM’s- enhanced accessibility.
Free multi branch, Multi-city banking convenience.
Payable at par Cheques.
Smartserv- Personal Concierge Services.


This is the product of ING Vysya Bank which is targeted towards the upper middle 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 ING’s ATM or any other bank’s ATM is Rs. 50,000.
Maximum shopping limit through ING’s 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.


Fill fuel across any petrol pump in India and get the 2.5% surcharge waived.
Shop using your ING Formula savings account and get Formula One merchandise.
Whenever there is a Formula 1 race anywhere in the world, there is a race 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/-

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

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.
ING Platina Debit Card
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.

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:
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.
Fastest RTGS and NEFT services, which takes place within minutes.
A well behaving staff and special highly sensitive customer care department. This is head by a
well efficient customer care manager.
Account verification with in promised 5 days.
Working hours from 10 a.m. to 6 p.m. (7 in p.m. if any customer is in need)
Doing things in the right way at right time.
It is the only Bank which provides the facility of withdrawal of 1 lakh rupees from any ATM at
one go.

ING Vysya Bank Q3 Profit up 22%

Continued Profit Growth sustained by Strong Fee Income Performance
The Board of Directors of ING Vysya Bank Ltd. approved the unaudited financial results of the
Bank for the quarter and period ended 31 December 2008 at its meeting in Bangalore at 23rd
January 2009.
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 December’08
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
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.


World over ING has strengthened its name as a good corporate citizen. The ING Chances for
Children initiative (CFC) a global program in partnership with UNICEF is to educate 50,000
underprivileged children in three countries, Ethiopia, India and Brazil by 2008. In India the focus
is primarily in the districts of Dharampuri and Krishnagiri in Tamil Nadu. Through the national
Child labor 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
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.


Strengths Weakness

ING as one on the biggest financial MNC. 7th Very few branches
in 500 fortune Less variety of financial/banking products
Only foreign bank which has acquired an Location
Indian private bank (Vysya Bank)
Higher rate of interest than other private banks
Most of the financial plans are legalized under
Top notch customer care and staff behavior
Unique features with different kinds of
Working hours
Opportunities Threats

New segment of doctors, students and CAs as Presence of two top private banking players in
they like innovation in their financial needs the market (ICICI & HDFC)
and like to enjoy the services. Large market share already captured
High class (upper strata) population of city Non willingness of Muzaffarnagar citizens to
Increase in different kind of financial products change for something new, or to try innovation
NGO and Public Relations in their banking.

ING Vysya Bank have a very few branches in Northern India
Customer are not aware about the ING Visa Bank
ING Visa Bank have fewer banking/financial product compare to other
ING Visa Bank have very few ATM .
Research is only done in Muzaffarnagar city
Research is self-financed so money is a major constraint
Respondents are biased toward their current bank.
Time is 6 weeks, so much of economic fluctuations are not seen

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 Visa Bank has to improve its brand image i.e. create a position in the mindset of the
It should more emphasize on advertisement. Advertisement is a most powerful tool for position
and brand in the mindset of customer.
ING Visa 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 Visa Bank should adopt better strategy
to attract more customer

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