factor which affect corporate to choose a bank

7/29/2019 factor which affect corporate to choose a bank

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Summer internship project

ING VYSYA BANK LTD.

BRIJENDRA KUMAR MEENA JHA

ROLL NO-24Sasmira institute of mgt studies &

Research,Worli


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Project Title

A study of factors influence to a company to

choice of a particular bank


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Location of the branch

ING VYSYA BANK LTD.

Hanuman road, vile Parle(E)


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Certificate

This is to certify that Mr. / Ms. ---------------------------------- of

Sasmiras Institute of Management Studies & Research hassuccessfully completed the project work titled ---------------------- in partial fulfilment of requirement for the completionMMS as prescribed by the University of Mumbai.

This project report is the record of authentic work carried outby him / her during the period from ----------- to ------------- .

He / She has worked under my guidance.

Signature

Name

Project Guide (Internal)

Date :`


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DECLARATION

I, Mr. Brijendra Kumar hereby declare that this project report is therecord of authentic work carried out by me during the period from2nd May 2012 to 2nd July 2012 and has not been submitted to anyother University or Institute for the award of any degree / diplomaetc.

An attempt has been made by me to provide all relevant andimportant details regarding the topic to support the theoreticaledifice with concrete research evidence. This will be helpful to cleanthe fog surrounding the various aspect of the topic.

I hope that this project will be beneficial for the organization

Signature

Name of the student-

Date


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Acknowledgement

Firstof all express my gratitude to my project mentor Mr. GOPESHSHARMA(Sales Manager),ING VYSYA BANK LTD. Vile parle (EAST)

His able guidance at each step of the project helped me to broaden myoutlook on the project and in successful completition of the project. Ishall 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 methis 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 ofthrough their inputs, which assisted me in the completition of thisproject

I wish to thanks all those people who have directly or indirectly beeninstrumental 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


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India retail banking scenario

Retail banking is innovation of 21st centuryFocus 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


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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


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Challenges & oppurtunity

Challenges-

Retansion of the customer

Increasing creditworthiness of public sectorbank

Proper functioning of distributed network

Rising in debenture Legal issues


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Background of the study

Increasing competition in since early 1980s

Revolution of the private banks

Recognize appropriate marketing strategies Enhancing corporate needs


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Background of the topic

Attract big corporate fish for sustaining in the marketWhy company required fund-

For R & D

Motivating employees

Promoting company

Smooth conduct of business

Expansion & diversification

Dividend & interest

Replacement of assets


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Statement of the problem

Difficult to manage time for researchers

Frequent rejection

Not interested to share financial info. Tostrangers

Satisfy with the main banks service


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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


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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


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Corporate decision making

process

problem

Problemrecognition Problem research

option

Evaluation of option Research of available option

Result

Service choice Post use evaluation


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Influence on decision

Int

ernalinfluence

perception

Motivation Learning

Attitude

Situat

ionalinfluence

Physical

environment Time

S

ocial

influence

cultural

Sub cultural References


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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


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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


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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 HomeLoans

2006-Bank has networked all the branches to facilitateAAA transactions i.e. Anywhere, Anytime & AnyhowBanking


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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


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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


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Product & services

Personal-

Account deposit-saving account, current account, termdeposit, 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, investmentproducts

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, mobilebanking,SMS banking, ATM kiosks, payment service, e-statement, important policies,


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Product & services

Business

SME-business loan, business loan(rent), business loansmall scale industries(CGTSI), MPower ssi, MPowerbusiness account

AGRI- term loan, short term loan Wholesale banking-cash management service,

corporate and investment banking ,local debt, offshoreborrowings, credit product and structured finance,CMS payments

Financial market-market making and trading, assetliability management, financial market sales, research& analysis


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Competitors of ING bank

Name Last Price Market Cap.

(Rs. cr.)

Net Interest

Income

Net Profit Total Assets

HDFC Bank 573.95 135,094.76 27,286.35 5,167.07 337,909.49

ICICI Bank 894.40 103,123.08 33,542.65 6,465.26 473,647.09

KotakMahindra

598.85 44,463.17 6,180.24 1,085.05 65,666.46

Axis Bank 598.85 42,642.97 21,994.65 4,242.21 285,627.79

IndusInd Bank 338.50 15,879.67 5,359.20 802.61 57,596.07

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
http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/HDF01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/icicibank/ICI02http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/federalbank/FBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/federalbank/FBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/icicibank/ICI02http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/HDF01


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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


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Research design &

methodology

Research design-

Questionnaire

close-ended and open-ended questions

Interviewing Referances

Data Collection-

quantitative approach

qualitative research approach

cross-sectional survey method

Q ti i


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QuestionarieCompany 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


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Data analysis

Factor analysis approach-reducing large no of

sample into small

Observeable manner

Statistical approach

Technological approach-using SPSS software


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Data analysis & description

Descriptive Analysis-

Visiting 150 companies

Response rate 90% 77% are SMES out of 150

23% are medium & large

Visiting companies whose turnover rangesbetween 20-100 cr


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Respondant affiliation period

bank affliation period

less than 2 years

2-4 years

5-7 years

more than 7 years


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Factor analysis

It is used to get inter relationship dimension

between factor

Mean, correlation, regression, varience are

found to get accuracy of research


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Factors ranking

factors mean rank

Convenience/ security3.2513

1

Service provision 3.1008 2

Employers influence 2.5937 3

Bank image 2.5538 4

Promotion strategy 2.2604 5

Reputation 2.1841 6

Financial benefits/

technology

1.9544 7


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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


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Recommendation

Recommendation

Enhace the accessibility of the service

Customer satisfaction are most important thananything else.

Technological improvement attract newgeneration

Bank should marketed itself in efficent & effective

way Networking of the services are important factor

Brand of the bank attract customer


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Confirmation

All the data are collected bypersonal 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.


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factor which affect corporate to choose a bank

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