A Report On THE 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

ICFAI UNIVERSITY, DEHRADUN

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A Project Report On A Project Study on THE ENVIRONMENTAL FACTORS RESPONSIBLE FOR THE ING VYSYA BANKS PERFORMANCE

Submitted By:PANKAJ CHAKRABORTY Enroll. No: 1001100040

ICFAI UNIVERSITY, DEHRADUN

In Partial Fulfillment of the Requirement of Summer Internship Project, 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 to the best of my knowledge.

PANKAJ CHAKRABORTY (1001100040)

ICFAI UNIVERSITY, DEHRADUN

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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 CHAPTER 1 Introduction 1.1 Executive summary 1.2 Industry introduction 1.3 ING VYSYA BANK introduction CHAPTER 2 2.1 Objective of the study 2.2 Scope of the study 2.3 Tools and Techniques CHAPTER 3 TABLES AND GRAPHS 3.1 Correlations between awareness of customer about ING VYSYA Bank and their age. 3.2 Perception of ING VYSYA as a Bank 3.3 Market share in Dehradun in comparison to competitors. 3.4 Factor responsible for performance of ING VYSYA Bank in Dehradun. 3.5 Comparative study with major competitors on basic parameters. 3.6 Rating of ING VYSYA as a good bank. 3.7 The effectiveness of commercial advertisement of ING VYSYA Bank. CHAPTER 4 FACTOR ANALYSIS 4.1 Analysis of the factors responsible for ING VYSYA Banks performance. CHAPTER 5 RECOMMENDATION CHAPTER 6 CONCLUSION CHAPTER 7 APPENDICS 7.1 Questionnaire 3 4 7

8 9 13 16 16 17

20 21 22 23 24 25 26

27

30 32

33

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CHAPTER 8 8.1 References 8.2 Bibliography CHAPTER 9 GLOSSARY

37 37 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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Introduction:
Executive Summary
Banking Industry which is basically my concern industry around which my project has to be revolved is really a very complex industry. And to work for this was really a complex and hectic task and few times I felt so frustrated that I thought to left the project and go for any new industry and new project. Challenges which I faced while doing this project were following-

 Banking sector was quite similar in offering and products and because of that it was very difficult to discriminate between our product and competitors products.  Target customers and respondents were too busy persons that to get their time and view for specific questions was very difficult.  Sensitivity of the industry was also a very frequent factor which was very important to measure correctly.  Area covered for the project while doing job also was very large and it was very difficult to correlate two different customers/respondents views in a one. Every financial customer has his/her own need and according to the requirements of the customer product customization was not possible.

So above challenges some time forced me to leave the project but I did my project in all circumstances. Basically in this project I analyzed that What factors are really responsible for performance of ING VYSYA Banks performance in this competitive era.

Industry status & ING VYSYA Banks interface

Industry introduction:

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The Indian Banking industry, which is governed by the Banking Regulation Act of India, 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 of India and its group 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 all nook 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 in turn 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 more commercial 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 of growth. 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 the new 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 private sector banks are presently in operation. These banks due to their late start have access to state-ofthe-art technology, which in turn helps them to save on manpower costs. During the year 2000, the State Bank of India (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 the deposits 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 5.7 percent, 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 scenario we 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 the mainstay 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 governmental equity, 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 with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional

sources, lack of modern technology and a massive workforce while the new private sector 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 challenging strategies 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. Therefore one of the means for them to combat the PSBs has been through the merger 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 acquisition of ITC 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 merger however 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, mobile banking, 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, following Indias commitment 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 have also 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 to acquire 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 of Insurance. 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 separate joint-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 signifies and 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 led to 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 Financial System (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 structural measures. 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, financial institutions 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 ABOUT

Company overview:

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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. The origin of the erstwhile Vysya Bank was pretty humble. 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. The long journey of seventy-five years has had several milestones y y y y y y y y y y 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 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) 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. 2002 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 & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.

y y y

y y

2002 ING takes over the Management of the Bank from October 7th , 2002 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

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y y y y

2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans 2004 Introduced Protected Home Loans - a housing loan product 2005 Introduced Solo - My Own Account for youth and Customer Service Line Phone Banking Service 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 to the 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 of ING in India, ING Vysya Bank, ING Life Insurance, and ING 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 nurture and 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 provided villagers with access to clean water and recharged ground-water wells which in turn support the local agricultural industry.

Business Chart:

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Name of the Bank

Type of Products

Further category of different products

Banking Products ING VYSYA BANK Life Insurance Products

SAVINGS ACCOUNT (Orange savings account, ING Platina Savings 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 current a/c, Comfort current a/c, Advantage current a/c, Orrange current a/c)

Creating Life, Fullfilling Life, ING Ace

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

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Project study which is being conducted by me for the last three month is not only a formality for the 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 for the 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 covered by me in this project are as following:    To know about external environmental factors viz. competitors, economic condition affecting ING VYSYA Banks performance. To analyze the role of advertisement for ING VYSYA Bank performance. To know the perception and conception of customers towards products and services of ING VYSYA Bank Ltd. To explore the potential areas for the new bank branches, this will provide both price 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 this scope 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 gives idea 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 proper implementation 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 y y Research study could give an idea of network expansion for capturing more market and customer with better services and lower cost, with out compromising with quality. In future customer requirements could be added with the product and services for getting an edge over competitors. Consumer behavior could also be used for the purpose of launching a new product with extra benefits which are required by customers for their account (saving or current) and/or for their investments. 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  Competitors  Customer Behaviors

study

are

following-

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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 to market, 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 my project. 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 which I used for project from statistics arey y y Bar Charts Pie charts Tables

Bar charts and pie charts are really useful tools for every research to show the result in a well clear, 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 y y Ms- Excel SPSS 15 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. I provided 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 around what 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 y y Mathematical Averages/percentage Standard Deviation Correlation

Sources of Primary and Secondary data: For the purpose of project data is very much required which works as a food for process which will 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 of project 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 their responses. 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 by the 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 got form 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 27 20 14 22 24 AGE 20-25 25-30 30-35 35-40 40-45

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18 12 13

45-50 50-60 > 60

NO. OF RESPONSE
> 60 50-60 45-50 40-45 35-40 30-35 25-30 20-25 0 5 10 15 20 25

13 12 18 24 22 14 20 27
30

NO. OF RESPONSE

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 of ING VYSYA as a Bank TYPE OF BANK PRIVATE PUBLIC PRIVATE/PUBLIC DON'T KNOW RESPONSES 71 29 30 20

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RESPONSES
20

30

71

PRIVATE PUBLIC PRIVATE/PUBLIC DON T KNOW

29

FINDINGS:- The findings from this graph is out of 150 respondents 71 respondents only aware that, 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 BANK NAME SBI ING VYSYA ICICI KOTAK MAHINDRA HDFC % OF SHARE 29% 10% 27% 8% 11%

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HSBC OTHERS

5% 10%

% OF SHARE
29%
30% 25% 20% 15% 10% 5% 0%

27%

10%

11% 8% 5%

10%
% OF SHARE

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

Table 4:- Factors Responsible for Performance of ING VYSYA Bank in Dehradun PARAMETERS PRODUCT ADVERTISMENT MANPOWER NET-BANKING PHONE BANKING % OF SHARE 45% 3% 25% 5% 6%

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INVESTMENT SCHEME NETWORK

13% 3%

% OF SHARE
45%
45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

25% 3% 5% 6% 13% 3%
% OF SHARE

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

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

PARAMETERS/BANKS

ING VYSYA 17% 2% 9% 10% 10% 4%

ICICI

SBI

KOTAK MAHINDRA 14% 20% 4% 14% 5% 17%

HSBC

HDFC

PRODUCT ADVERTISMENT MANPOWER NET-BANKING PHONE BANKING INVESTMENT

20% 45% 44% 42% 41% 23%

29% 16% 8% 7% 4% 44%

10% 8% 7% 9% 30% 6%

10% 9% 28% 18% 10% 6%

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SCHEME NETWORK CREDIBILITY

2% 14%

38% 10%

43% 40%

4% 26%

3% 5%

10% 5%

0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

PARAMETERS/BANKS ING VYSYA ICICI SBI KOTAK MAHINDRA HSBC HDFC

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 of ING VYSYA Bank as a Good Bank PARAMETER EFFICIENCY INTERNET BANKING ATMs PRODUCT RANGE NETWORK (BRANCHES) PHONE BANKING RESPONSES 73% 29% 80% 91% 14% 32%

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RESPONSES
32% 14% 73%
EFFICIENCY INTERNET BANKING ATMs

91%

29%

PRODUCT RANGE NETWORK PHONE BANKING

80%

FINDINGS:The finding from this graph is people prefer ING VYSYA Bank is a good Bank for their product range and ATM facility.

Table 7:- The Effectiveness of Commercial Advertisement of ING VYSYA Bank DAYS AFTER THE AD IS SEEN 0-5 days 6-10 days 11-15 days >15 days POSITIVE RESPONSE 15 17 38 80

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POSITIVE RESPONSE

15 17 0-5 DAYS 6-10 DAYS 80 38 11-15 DAYS >15 DAYS

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 Analysis
Factor 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, thereby making the analysis easier. Analysis of the factors responsible for ING 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

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hypothesis rejected. The detailed outcomes of the KMO value and the communalities are shown in the tabular form.
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.

.544 26.811 15 .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 community range 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 EFFICIENCY 1.000 INTERNET BANKING 1.000 ATMs 1.000 NETWORK 1.000 PRODUCT RANGE 1.000 PHONE BANKING 1.000

Extraction .435 .561 .355 .699 .367 .227

Extraction Method: Principal Component Analysis.

Total Variance Explained Total variance explained: - The total variance explained is the percentage of total variance of the variables explained. This is calculated by adding all the community values of each variable and dividing it by the number of variables.
Extraction Sums of Squared Loadings % of Varianc Cumulativ Total e e% 1.444 24.060 24.060 1.201 20.012 44.073 Rotation Sums of Squared Loadings % of Varianc Cumulativ Total e e% 1.365 22.757 22.757 1.279 21.315 44.073

Compon ent 1 2 3 4 5

Initial Eigen values % of Varianc Cumulativ Total e e% 1.444 24.060 24.060 1.201 20.012 44.073 .972 16.198 60.270 .888 14.794 75.065 .802 13.371 88.436

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.694

11.564

100.000

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.

Scree Plot

1.6

1.4

Eigenvalue

1.2

1.0

0.8

0.6 1 2 3 4 5 6

Component Number

Component Matrix (a)

Component 1 2 .616 .235 .610 .377 -.116 -.600 -.420 -.434 .462 .828 .088 -.225

1.EFFICIENCY 2.INTERNET BANKING 3.ATMs 4.NETWORK 5.PRODUCT RANGE 6.PHONE BANKING

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.

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Rotated component matrix: The correlation matrix which is also known as rotated factor matrix that describes the relationship 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 factors loading 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 different way. Rotated Component Matrix (a)
Component 1 2 .641 -.156 .256 .572 .374 -.444 -.473 -.704 .167 .748 .412 .053

EFFICIENCY INTERNET BANKING ATMs NETWORK PRODUCT RANGE PHONE BANKING

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 3 iterations.

Under factor 1 the attributes are:1. 2. 3. 4. Efficiency ATMs Phone Banking 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 of ING 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 of ING 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 of ING 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 ON THE ENVIRONMENTAL FACTORS RESPONSIBLE FOR THE ING VYSYA BANK LTD. 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 have any queries, please do not hesitate. NAME.. AGE. SEX: MALE / FEMALE ADDRESS:........................................ . CITYPIN CODE.......... CONTACT NO. .. For all the questions please either place space provided. in the in the appropriate options OR fill in the details in the

1. ARE YOU A CLIENT OF ING VYSYA BANK?  YES

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 NO 2. DO YOU KNOW ABOUT ING VYSYA BANK LTD.?   YES NO

3. ING VYSYA BANK IS A     PRIVATE BANK PRIVATE/PUBLIC BANK PUBLIC BANK DONT KNOW

4. RANK THE ING VYSYA BANK ON THE FOLLOWEING FEATURES (RANK 1 FOR BEST AND 5 FOR WORSE ON 1 TO 5 SCALE)       EFFICENCY INTERNET BANKING ATMs NETWORK PRODUCT RANGE MOBILE BANKING

5. NAME THE BANK WHICH COMES IN YOUR MIND AT VERY FIRST AND WHY? . 6. DO YOU THINK ING VYSYA BANK IS A SAFE PLACE FOR YOUR MONEY?   YES NO

7. DO YOU THINK ING VYSYA BANK NEED 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 AGAINST ING VYSYA BANK YOU WILL GO FOR

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KOTAK MAHINDRA BANK LTD. HDFC BANK LTD. ICICI BANK LTD. 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 BANK LTD. IN DEHRADUN IS EFFECTIVE BECAUSE   BRANCH LOCATION ATM FACILITY

  

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

13. ING VYSYA BANK LTD. IN DEHRADUN IS NOT EFFECTIVE BECAUSE  SINGLE BRANCH  LESS ADVERTISEMENT  VARIOUS CHARGES INCLUDED WITH THE PRODUCTS  OTHERS (please specify). 14. ING VYSYA BANK LTD. IS A GOOD BANK FOR SERVICE PEOPLE  BUSINESS PERSONS  POLITICIANS  GENERAL PUBLIC  ALL OF ABOVE 15. NAME ING VYSYA BANK LTD. GIVES BLUE-PRINT IN YOUR MIND OF:      HIGH NETWORK FINANCILALLY EFFICIENT BANK HI-TECH BANK CUSTOMER FRIENDLY OTHER (PLEASE SPECIFY).

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16. WHAT IS THE MOST IMPORTANT FACTOR COMES IN YOUR MIND BEFORE CHOOSING A BANK?     BRANCH LOCATION SAVINGS RATE LOAN RATE EXISTING BANK A/C OF PARRENTS OR FRIENDS

17. DO YOU THINK ING VYSYA BANK NEED MORE BRANCHES IN THE DIFFERENT AREA OF DEHRADUN?    YES NO CANT SAY

18. ARE YOU SATISFIED WITH THE SINGLE BRANCH OF ING VYSYA BANK IN DEHRADUN?    YES NO CANT SAY

Your suggestions regarding the banking of ING VYSYA BANK LTD. (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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