INDUSTRY PROFILE:-Abankis afinancial intermediaryand money creator that creates money by lending money to a borrower, thereby creating a correspondingdepositon the bank's balance sheet. Lending activities can be performed directly by loaning or indirectly throughcapital markets. Due to their importance in thefinancial systemand influence on nationaleconomies, banks arehighly regulatedin most countries. Most nations have institutionalized a system known asfractional reserve banking, central banking, under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject tominimum capital requirementsbased on an international set of capital standards, known as theBasel Accords.Banking in its modern sense evolved in the 14th century in the rich cities ofRenaissance Italybut in many ways was a continuation of ideas and concepts ofcreditandlendingthat had its roots in theancient world. In thehistory of banking, a number ofbanking dynasties notably, theMedicis, theFuggers, theWelsers, theBerenbergsand theRothschilds have played a central role over many centuries. Theoldest existingretail bankisMonte dei Paschi di Siena, while the oldest existingmerchant bankisBerenberg Bank.HISTORY:-The origins of modern banking can be traced to medieval and earlyRenaissanceItaly, to the rich cities in the north likeFlorence,Lucca,Siena,VeniceandGenoa. TheBardiandPeruzzifamilies dominated banking in 14th century Florence, establishing branches in many other parts ofEurope.One of the most famous Italian banks was theMedici Bank, set up byGiovanni di Bicci de' Mediciin 1397.The earliest known state deposit bank,Banco di San Giorgio(Bank of St. George), was founded in 1407 atGenoa,Italy. Modern banking practices, includingfractional reserve bankingand the issue ofbanknotes, emerged in the 17th and 18th centuries. Merchants started to store their gold with thegoldsmithsofLondon, who possessed private vaults, and charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths issuedreceiptscertifying the quantity and purity of the metal they held as abailee; these receipts could not be assigned, only the original depositor could collect the stored goods.Gradually the goldsmiths began to lend the money out on behalf of thedepositor, which led to the development of modern banking practices;promissory notes(which evolved into banknotes) were issued for money deposited as a loan to the goldsmith.[4]The goldsmith paid interest on these deposits. Since the promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were repayable over a longer time period, this was an early form offractional reserve banking. The promissory notes developed into an assignable instrument which could circulate as a safe and convenient form of money backed by the goldsmith's promise to pay,allowing goldsmiths to advance loans with little risk of default.Thus, the goldsmiths of London became the forerunners of banking by creating new money based on credit.TheBank of Englandwas the first to begin the permanent issue ofbanknotes, in 1695.The Royal Bank of Scotlandestablished the firstoverdraftfacility in 1728.By the beginning of the 19th century abankers' clearing housewas established in London to allow multiple banks to clear transactions. TheRothschildspioneeredinternational financeon a large scale, financing the purchase of theSuez canalfor the British government.Theoldest bank still in existenceisMonte dei Paschi di Siena, headquartered inSiena,Italy, which has been operating continuously since 1472.It is followed byBerenberg Bankof Hamburg (1590)andSveriges Riksbankof Sweden (1668).ORIGIN OF THE WORD:-The wordbankwas borrowed inMiddle EnglishfromMiddle Frenchbanque, from OldItalianbanca, fromOld High Germanbanc, bank"bench, counter". Benches were used as desks or exchange counters during theRenaissancebyFlorentinebankers, who used to make their transactions atop desks covered by green tablecloths. One of the oldest items found showing money-changing activity is a silver Greekdrachmacoin from ancient Hellenic colony Trapezus on theBlack Sea, modernTrabzon, c. 350325 BC, presented in theBritish Museumin London. The coin shows a banker's table (trapeza) laden with coins, a pun on the name of the city. In fact, even today inModern Greekthe word Trapeza means both a table (in formal language) and a bank (in everyday speech). [The everyday word used for "table" is trapezi , a modern form of the archaic trapeza ].DEFINATION:-The definition of a bank varies from country to country. See the relevant country page (below) for more information.UnderEnglish common law, a banker is defined as a person who carries on the business of banking, which is specified as: conductingcurrent accountsfor his customers, payingchequesdrawn on him/her, and collectingchequesfor his/her customers.In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation tonegotiable instruments, includingcheques, and this Act contains a statutory definition of the termbanker:bankerincludes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated.The business of banking is in manyEnglish common lawcountries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of thebusiness of bankingorbanking business. When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking. However, in many cases the statutory definition closely mirrors the common law one. Examples of statutory definitions: "banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation). "banking business" means the business of either or both of the following:1. receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period;2. paying or collecting checks drawn by or paid in by customers. Since the advent ofEFTPOS(Electronic Funds Transfer at Point Of Sale), direct credit,direct debitandinternet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect checks. BankingStandard activitiesBanks act as payment agents by conductingchecking or current accountsfor customers, payingchequesdrawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such asAutomated Clearing House(ACH),Wire transfersortelegraphic transfer,EFTPOS, andautomated teller machine(ATM).Banks borrow money by accepting funds deposited on current accounts, by acceptingterm deposits, and by issuing debt securities such asbanknotesandbonds. Banks lend money by making advances to customers on current accounts, by makinginstallment loans, and by investing in marketable debt securities and other forms of money lending.Banks provide different payment services, and a bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account.Banks can create new money when they make a loan. New loans throughout the banking system generate new deposits elsewhere in the system. The money supply is usually increased by the act of lending, and reduced when loans are repaid faster than new ones are generated. In the United Kingdom between 1997 and 2007, there was an increase in the money supply, largely caused by much more bank lending, which served to push up property prices and increase private debt. The amount of money in the economy as measured by M4 in the UK went from 750 billion to 1700 billion between 1997 and 2007, much of the increase caused by bank lending.If all the banks increase their lending together, then they can expect new deposits to return to them and the amount of money in the economy will increase. Excessive or risky lending can cause borrowers to default, the banks then become more cautious, so there is less lending and therefore less money so that the economy can go from boom to bust as happened in the UK and many other Western economies after 2007.Range of activitiesActivities undertaken by large banks includeinvestment banking,corporate banking,private banking,insurance,consumer finance,foreign exchange trading,commodity trading,trading in equities,futures and options tradingandmoney market trading.ChannelsBanks offer many different channels to access their banking and other services: Automated Teller Machines Abranchis a retail location Call center Mail: most banks accept cheque deposits via mail and use mail to communicate to their customers, e.g. by sending out statements Mobile bankingis a method of using one's mobile phone to conduct banking transactions Online bankingis a term used for performing multiple transactions, payments etc. over the Internet Relationship Managers, mostly for private banking or business banking, often visiting customers at their homes or businesses Telephone bankingis a service which allows its customers to conduct transactions over the telephone withautomated attendantor when requested withtelephone operator Video bankingis a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via avideo conferenceenabled bank branch clarification DSAis a Direct Selling Agent, who works for the bank based on a contract. Its main job is to increase the customer base for the bank.Business modelA bank can generate revenue in a variety of different ways including interest, transaction fees and financial advice. The main method is via chargingintereston the capital it lends out to customers.The bank profits from the difference between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities.This difference is referred to as thespreadbetween the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of theeconomic cycle. Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance.In the past 20 years American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. First, this includes theGramm-Leach-Bliley Act, which allows banks again to merge with investment and insurance houses. Merging banking, investment, and insurance functions allows traditional banks to respond to increasing consumer demands for "one-stop shopping" by enabling cross-selling of products (which, the banks hope, will also increase profitability). Second, they have expanded the use ofrisk-based pricingfrom business lending to consumer lending, which means charging higher interest rates to those customers that are considered to be a higher credit risk and thus increased chance ofdefaulton loans. This helps to offset the losses from bad loans, lowers the price of loans to those who have better credit histories, and offers credit products to high risk customers who would otherwise be denied credit. Third, they have sought to increase the methods of payment processing available to the general public and business clients. These products includedebit cards, prepaid cards,smart cards, andcredit cards. They make it easier for consumers to conveniently make transactions andsmooth their consumptionover time (in some countries with underdeveloped financial systems, it is still common to deal strictly in cash, including carrying suitcases filled with cash to purchase a home).However, with convenience of easy credit, there is also increased risk that consumers will mismanage their financial resources and accumulate excessive debt. Banks make money from card products through interest charges and fees charged to cardholders, andtransaction feesto retailers who accept the bank's credit and/or debit cards for payments.This helps in making profit and facilitates economic development as a whole. ProductsRetail banking Savings account Money market account Certificate of deposit(CD) Individual retirement account(IRA) Credit card Debit card Mortgage Mutual fund Personal loan Time deposits ATM card Current Accounts Cheque booksBusiness (or commercial/investment) banking Business loan Capital raising(Equity/Debt/Hybrids) Mezzanine finance Project finance Revolving credit Risk management(FX,interest rates,commodities,derivatives) Term loan Cash Management Services (Lock box, Remote Deposit Capture, Merchant Processing) credit servicesCapital and riskBanks face a number ofrisksin order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how muchcapitala bank is required to hold. Bank capital consists principally ofequity,retained earningsandsubordinated debt.Some of the main risks faced by banks include: Credit risk: risk of loss arising from a borrower who does not make payments as promised. Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit). Market risk: risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors. Operational risk: risk arising from execution of a company's business functions. Reputational risk: a type of risk related to the trustworthiness of business. Macroeconomic risk: risks related to the aggregate economy the bank is operating in.[17]Thecapital requirementis abank regulation, which sets a framework within which a bank or depository institution must manage itsbalance sheet. The categorization of assets and capital is highly standardized so that it can berisk weighted.Banks in the economyEconomic functionsThe economic functions of banks include:1. Issue of money, in the form ofbanknotesand current accounts subject tocheckor payment at the customer's order. These claims on banks can act as money because they are negotiable or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a check that the payee may bank or cash.2. Netting and settlement of payments banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economize on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them.3. Credit intermediation banks borrow and lend back-to-back on their own account as middle men.4. Credit quality improvement banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.5. Asset liability mismatch/Maturity transformation banks borrow more on demand debt and short term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemption of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets).6. Money creation whenever a bank gives out a loan in afractional-reserve bankingsystem, a new sum of virtual money is created.Bank crisisBanks are susceptible to many forms of risk which have triggered occasional systemic crises. These includeliquidity risk(where many depositors may request withdrawals in excess of available funds),credit risk(the chance that those who owe money to the bank will not repay it), andinterest rate risk(the possibility that the bank will become unprofitable, if rising interest rates force it to pay relatively more on its deposits than it receives on its loans).Banking crises have developed many times throughout history, when one or more risks have emerged for a banking sector as a whole. Prominent examples include thebank runthat occurred during theGreat Depression, the U.S.Savings and Loan crisisin the 1980s and early 1990s, theJapanesebanking crisis during the 1990s, and thesub-prime mortgage crisisin the 2000s.Size of global banking industryAssets of the largest 1,000 banks in the world grew by 6.8% in the 2008/2009 financial year to a record US$96.4trillion while profits declined by 85% to US$115billion. Growth in assets in adverse market conditions was largely a result of recapitalization. EU banks held the largest share of the total, 56% in 2008/2009, down from 61% in the previous year. Asian banks' share increased from 12% to 14% during the year, while the share of US banks increased from 11% to 13%. Fee revenue generated by global investment banking totaled US$66.3billion in 2009, up 12% on the previous year. The United States has the most banks in the world in terms of institutions (7,085 at the end of 2008) and possibly branches (82,000).This is an indicator of the geography and regulatory structure of the USA, resulting in a large number of small to medium-sized institutions in its banking system. As of Nov 2009, China's top 4 banks have in excess of 67,000 branches (ICBC:18000+,BOC:12000+,CCB:13000+,ABC:24000+) with an additional 140 smaller banks with an undetermined number of branches. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy each had more than 30,000 branchesmore than double the 15,000 branches in the UK.RegulationMain article:Banking regulationCurrently commercial banks are regulated in most jurisdictions by government entities and require a special bank license to operate.Usually the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits, even if they are not repayable to the customer's orderalthough money lending, by itself, is generally not included in the definition.Unlike most other regulated industries, the regulator is typically also a participant in the market, being either a publicly or privately governedcentral bank. Central banks also typically have a monopoly on the business of issuingbanknotes. However, in some countries this is not the case. In the UK, for example, theFinancial Services Authoritylicenses banks, and some commercial banks (such as theBank of Scotland) issue their own banknotes in addition to those issued by theBank of England, the UK government's central bank.Banking law is based on a contractual analysis of the relationship between thebank(defined above) and thecustomerdefined as any entity for which the bank agrees to conduct an account.The law implies rights and obligations into this relationship as follows:1. The bank account balance is the financial position between the bank and the customer: when the account is in credit, the bank owes the balance to the customer; when the account is overdrawn, the customer owes the balance to the bank.2. The bank agrees to pay the customer's checks up to the amount standing to the credit of the customer's account, plus any agreed overdraft limit.3. The bank may not pay from the customer's account without a mandate from the customer, e.g. a check drawn by the customer.4. The bank agrees to promptly collect the checks deposited to the customer's account as the customer's agent, and to credit the proceeds to the customer's account.5. The bank has a right to combine the customer's accounts, since each account is just an aspect of the same credit relationship.6. The bank has alienon checks deposited to the customer's account, to the extent that the customer is indebted to the bank.7. The bank must not disclose details of transactions through the customer's accountunless the customer consents, there is a public duty to disclose, the bank's interests require it, or the law demands it.8. The bank must not close a customer's account without reasonable notice, since checks are outstanding in the ordinary course of business for several days.These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force within a particular jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship.Some types of financial institution, such asbuilding societiesandcredit unions, may be partly or wholly exempt from bank license requirements, and therefore regulated under separate rules.The requirements for the issue of a bank license vary between jurisdictions but typically include:1. Minimum capital2. Minimum capital ratio3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, or senior officers4. Approval of the bank's business plan as being sufficiently prudent and plausible.Types of banksBanks' activities can be divided into: retail banking, dealing directly with individuals and small businesses; business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services tohigh-net-worth individualsand families; investment banking, relating to activities on thefinancial markets.Most banks are profit-making, private enterprises. However, some are owned by government, or arenon-profit organizations.Types of banks Commercial banks: the term used for a normal bank to distinguish it from an investment bank. After theGreat Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited tocapital marketactivities. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses. Community banks: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners. Community development banks: regulated banks that provide financial services and credit to under-served markets or populations. Land development banks: The special banks providing Long Term Loans are calledLand Development Banks, in the short, LDB. The history of LDB is quite old. The first LDB was started at Jhang inPunjabin 1920. The main objective of the LDBs are to promote the development of land, agriculture and increase the agricultural production. The LDBs provide long-term finance to members directly through their branches. Credit unionsorCo-operative Banks: not-for-profitcooperativesowned by the depositors and often offering rates more favorable than for-profit banks. Typically, membership is restricted to employees of a particular company, residents of a defined area, members of a certainunionor religious organizations, and their immediate families. Postal savings banks: savings banks associated with national postal systems. Private banks: banks that manage the assets of high-net-worth individuals. Historically a minimum of USD 1 million was required to open an account, however, over the last years many private banks have lowered their entry hurdles to USD 250,000 for private investors. Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks. Savings bank: in Europe, savings banks took their roots in the 19th or sometimes even in the 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative; in others, socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralized distribution network, providing local and regional outreachand by their socially responsible approach to business and society. Building societiesandLands banks: institutions that conduct retail banking. Ethical banks: banks that prioritize the transparency of all operations and make only what they consider to be socially responsible investments. ADirect or Internet-Only bankis a banking operation without any physical bank branches, conceived and implemented wholly with networked computers.Types of investment banks Investment banks"underwrite" (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, provide investment management, and advise corporations oncapital marketactivities such as mergers and acquisitions. Merchant bankswere traditionally banks which engaged intrade finance. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlikeventure caps, they tend not to invest in new companies.Both combined Universal banks, more commonly known asfinancial servicescompanies, engage in several of these activities. These big banks are very diversified groups that, among other services, also distribute insurance hence the termbank assurance, aportmanteau wordcombining "banque or bank" and "assurance", signifying that both banking and insurance are provided by the same corporate entity.Other types of banks Central banksare normally government-owned and charged with quasi-regulatory responsibilities, such as supervising commercial banks, or controlling the cashinterest rate. They generally provide liquidity to the banking system and act as thelender of last resortin event of a crisis. Islamic banksadhere to the concepts ofIslamic law. This form of banking revolves around several well-established principles based on Islamic canons. All banking activities must avoid interest, a concept that is forbidden in Islam. Instead, the bank earns profit (markup) and fees on the financing facilities that it extends to customers.United StatesMain article:Banking in the United StatesThe United States banking industry is one of the most heavily regulated in the world,[20]with multiple specialized and focused regulators. All banks with FDIC-insured deposits have theFederal Deposit Insurance Corporation(FDIC) as a regulator. However, for soundness examinations (i.e., whether a bank is operating in a sound manner), theFederal Reserveis the primary federal regulator for Fed-member state banks; theOffice of the Comptroller of the Currency(OCC) is the primary federal regulator for national banks; and theOffice of Thrift Supervision, or OTS, is the primary federal regulator forthrifts. State non-member banks are examined by the state agencies as well as the FDIC. National banks have one primary regulatorthe OCC. Qualified Intermediaries & Exchange Accommodators are regulated by MAIC.Each regulatory agency has their own set of rules and regulations to which banks and thrifts must adhere.TheFederal Financial Institutions Examination Council(FFIEC) was established in 1979 as a formal inter-agency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions. Although the FFIEC has resulted in a greater degree of regulatory consistency between the agencies, the rules and regulations are constantly changing.In addition to changing regulations, changes in the industry have led to consolidations within the Federal Reserve, FDIC, OTS, MAIC and OCC. Offices have been closed, supervisory regions have been merged, staff levels have been reduced and budgets have been cut. The remaining regulators face an increased burden with increased workload and more banks per regulator. While banks struggle to keep up with the changes in the regulatory environment, regulators struggle to manage their workload and effectively regulate their banks. The impact of these changes is that banks are receiving less hands-on assessment by the regulators, less time spent with each institution, and the potential for more problems slipping through the cracks, potentially resulting in an overall increase in bank failures across the United States.The changing economic environment has a significant impact on banks and thrifts as they struggle to effectively manage their interest rate spread in the face of low rates on loans, rate competition for deposits and the general market changes, industry trends and economic fluctuations. It has been a challenge for banks to effectively set their growth strategies with the recent economic market. A rising interest rate environment may seem to help financial institutions, but the effect of the changes on consumers and businesses is not predictable and the challenge remains for banks to grow and effectively manage the spread to generate a return to their shareholders.The management of the banks asset portfolios also remains a challenge in todays economic environment. Loans are a banks primary asset category and when loan quality becomes suspect, the foundation of a bank is shaken to the core. While always an issue for banks, decliningasset qualityhas become a big problem for financial institutions. There are several reasons for this, one of which is the lax attitude some banks have adopted because of the years of good times. The potential for this is exacerbated by the reduction in the regulatory oversight of banks and in some cases depth of management. Problems are more likely to go undetected, resulting in a significant impact on the bank when they are discovered. In addition, banks, like any business, struggle to cut costs and have consequently eliminated certain expenses, such as adequate employee training programs.Banks also face a host of other challenges such as aging ownership groups. Across the country, many banks management teams and board of directors are aging. Banks also face ongoing pressure by shareholders, both public and private, to achieve earnings and growth projections. Regulators place added pressure on banks to manage the various categories of risk. Banking is also an extremely competitive industry. Competing in the financial services industry has become tougher with the entrance of such players as insurance agencies, credit unions, check cashing services, credit card companies, etc.As a reaction, banks have developed their activities infinancial instruments, throughfinancial marketoperations such asbrokerageand MAIC trust & Securities Clearing services tradingand become big players in such activities.Loan activities of banksTo be able to provide home buyers and builders with the funds needed, banks must compete for deposits. The phenomenon ofdisintermediationhad to dollars moving from savings accounts and into direct market instruments such asU.S. Department of Treasuryobligations, agency securities, and corporate debt. One of the greatest factors in recent years in the movement of deposits was the tremendous growth of money market funds whose higher interest rates attracted consumer deposits.To compete for deposits, US savings institutions offer many different types of plans. Passbookor ordinarydeposit accounts permit any amount to be added to or withdrawn from the account at any time. NOW and Super NOW accounts function like checking accounts but earn interest. A minimum balance may be required on Super NOW accounts. Money market accounts carry a monthly limit of preauthorized transfers to other accounts or persons and may require a minimum or average balance. Certificate accounts subject to loss of some or all interest on withdrawals before maturity. Notice accounts the equivalent of certificate accounts with an indefinite term. Savers agree to notify the institution a specified time before withdrawal. Individual retirement accounts(IRAs) andKeogh plans a form of retirement savings in which the funds deposited and interest earned are exempt from income tax until after withdrawal. Checking accounts offered by some institutions under definite restrictions. All withdrawals and deposits are completely the sole decision and responsibility of the account owner unless the parent or guardian is required to do otherwise for legal reasons. Club accounts and othersavings accounts designed to help people save regularly to meet certain goals.Accounting for bank accountsBank statements are accounting records produced by banks under the various accounting standards of the world. UnderGAAPand MAIC there are two kinds of accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and Expenses. The bank credits acredit accountto increase its balance, and debits acredit accountto decrease its balance. The customer debits his or her savings/bank (asset) account in his ledger when making a deposit (and the account is normally in debit), while the customer credits a credit card (liability) account in his ledger every time he spends money (and the account is normally in credit). When the customer reads his bank statement, the statement will show a credit to the account for deposits, and debits for withdrawals of funds. The customer with a positive balance will see this balance reflected as a credit balance on the bank statement. If the customer is overdrawn, he will have a negative balance, reflected as a debit balance on the bank statement.Brokered depositsOne source of deposits for banks is brokers who deposit large sums of money on the behalf of investors through MAIC or other trust corporations. This money will generally go to the banks which offer the most favorable terms, often better than those offered local depositors. It is possible for a bank to engage in business with no local deposits at all, all funds being brokered deposits. Accepting a significant quantity of such deposits, or "hot money" as it is sometimes called, puts a bank in a difficult and sometimes risky position, as the funds must be lent or invested in a way that yields a return sufficient to pay the high interest being paid on the brokered deposits. This may result in risky decisions and even in eventual failure of the bank. Banks which failed during 2008 and 2009 in the United States during theglobal financial crisishad, on average, four times more brokered deposits as a percent of their deposits than the average bank. Such deposits, combined with risky real estate investments, factored into thesavings and loan crisisof the 1980s. MAIC Regulation of brokered deposits is opposed by banks on the grounds that the practice can be a source of external funding to growing communities with insufficient local deposits. Globalization in the Banking IndustryIn modern time there has been huge reductions to the barriers of global competition in the banking industry. Increases in telecommunications and other financial technologies, such as Bloomberg, have allowed banks to extend their reach all over the world, since they no longer have to be near customers to manage both their finances and their risk. The growth in cross-border activities has also increased the demand for banks that can provide various services across borders to different nationalities. However, despite these reductions in barriers and growth in cross-border activities, the banking industry is nowhere near as globalized as some other industries. In the USA, for instance, very few banks even worry about the Riegle-Neal Act, which promotes more efficient interstate banking. In the vast majority of nations around globe the market share for foreign owned banks is currently less than a tenth of all market shares for banks in a particular nation. One reason the banking industry has not been fully globalized is that it is more convenient to have local banks provide loans to small business and individuals. On the other hand for large corporations, it is not as important in what nation the bank is in, since the corporation's financial information is available around the globe.

COMPANYS PROFILE:-

ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of over 114,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand. ING Vysya Bank Limited, is an Indian retail bank, formed after the global financial institution ING acquired a 44% stake in Vysya Bank Ltd in October 2002, and took over management of the bank.

On the other hand, ING 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. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V..

ING has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. ING`s mission is to be a 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.

In India, ING is present in all three fields of banking, insurance and asset management in the form of ING, ING Vysya Life Insurance and ING Investment Management respectively. The presence in all three fields signifies the importance that the group attaches to the Indian markets and the group's operations here, as well as its bullish future outlook on the country.ING Vysya offers a large range of products from banking to insurance to wealth management. In banking it offers various kinds of accounts depending on the needs of customers. The types of accounts offered by ING are Orange Savings Account, Formula Savings Account, Platina Savings Account and in case of current accounts it has Orange Current Account, Advantage Current Account, General Current Account, Comfort Current Account and Platina Current Account. Besides this bank also has locker facilities at most of its branches.

In case of insurance the company has traditional as well as Unit Linked Plans. The various insurance policies of the company are available to meet the needs of all customers be it for kids, elders or retired people the company has a wide range. Creating Life is one of the most popular traditional insurance plan. Easy Life is a ULIP plan and Freedom Life is a pension plans. Besides these many other plans such as reassuring life, Creating Star are some other plans offered by the company.On Nov 20th 2014, in an all stock amalgamation, ING Vysya Bank decided to merge with Kotak Mahindra Bank, creating the fourth largest private sector bank in India.On April 1st ,2015, it has been publically known as Kotak Mahindra Bank.

MISSION & VISION:-Mission of Ing Vysya :To build a sustainable competitive advantage by fully integrating compliance risk management in daily business activities & strategic planning.Vision of Ing Vysya bank:To make compliance systems a more effective part in the business.NATURE OF THE BUSINESS CARRIED:ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset management company with a retail investor focus. ING Vysya is globally service provider in banking and insurance sector.ING Vysya BankING 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 in the year 1930. The last year (2005) was the 75th anniversary or Platinum Jubilee year.ING Vysya Mutual FundsING Vysya Mutual Funds brings with it the vast international experience and professional expertise of the ING Group. With presence in eight cities across the country, and over Rs.1600 crores of Asset Under Management, ING Vysya Mutual Fund aims to provide investors with the most practical and secure investment opportunities to invest their valuable savings. This is combined with a range of innovative options to deliver healthy returns combined with a high degree of security. Currently, the fund offers four equity, five debt and two hybrid schemes to its investors.Ing vysya life insurance:-IVL.co private limited entered pvt life insurance industry in India in sep 2001, & in a short span of 3 & a half years has established itself a distinctive life insurance brand wuth an innovative , attractive and customer friendly product portfolio and a professional advisor force. It also distributes products in close co-operation with the ivb network. Currently it has over 10000 advisors in 30 cities across the country and over 1000 employees.The co has 150000 customers as on date and achived an income of rs.150 crore in the year ending 31st dec 2004.Ivl insurance is a joint venture b/w Ing insurance international, bv a part of Ing group, the worlds second largest life insurance co.(fortune global 500,2004), Ing vysya bank, with 2million customers and over 400 outlets and GMR industries limited , part of GMR group also based in blore and involved in the field of power generation infrastructure development & several other business.

VISION & MISSION.Mission of Ing Vysya :To build a sustainable competitive advantage by fully integrating compliance risk management in daily business activities & strategic planning.

Vision of Ing Vysya bank:To make compliance systems a more effective part in the business.

ING Vysya bank products1. Credit product & structured finance.1. Offshore borrowings.1. Investment banking, local debt syndication & securatization.1. Trade finance & commodities.1. Cash management services.1. Schedule of service charges on trade finance products & services.1. Schedule of service charges on business banking accounts.

Functions of ING Vysya bank1. Business compliance.1. Regulatory guidelines dissemination & advisory.1. Financial economic crime (FEC) & sanctions desk.1. policy framework & MIS.1. Training & communication.

PRODUCT SERVICE PROFILE:1. Products & services1. Personal banking1. Savings a/c1. Current a/c1. Term deposits1. Demat a/c1. Personal,home,home equity,nri loans1. Pvt banking1. Wealth mngmt1. Life insurance1. Mutual funds1. Govt of india & tax savings bonds1. NRI services1. Credit & debit card1. Internet banking1. Phone banking1. Mobile banking1. Self banking1. ATM kiosks1. Payment services1. Business banking1. Sme-loans,mpower bness a/c1. Agri term & short term loan

1. Wholesale banking: cash mgmt services, corporate & investment banking credit products & structured finance, offshore borrowings, trade & commodity finance.1. Special services:- along with the portfolio mgmnt & advisory services we also bring to clients our banking services which include remittances, deposits, loan against deposits/mutual funds etc1. Loan products1. Od facility1. Vysdp(depository services)1. Smart serve1. Internet banking1. Phone banking1. Bill payments.1. Debit & credit cards

2.5 AREA OF OPERATION:Global, National & RegionalGlobal:-Ing vysya Bank operating in:1. us,1. Canada 1. Australia 1. Austria1. France1. Germany1. spain 1. Italy1. uk Ing vysya Bank in retail active in china, india, netherland & also active in central eastern europe.Ing vysya Bank in retail 2 bank in the netherlands & 4th in belgium.Ing vysya Bank commercial banking has an international network in 40 countries with key positions in structured finance & financial markets.

National:- CONSUMER FINANCE it is operating in 13 locations 1. Bangalore1. Delhi1. Hyderabad1. Mumbai1. Pune1. Chandigadh1. Jaipur1. Vizag1. Chennai1. Kolkata1. Nagpur1. Ludhiana

Regional:-Ing vysya bank has a total of 677 branches of which there were 407 branches ,39 extensions counters, 28 satellite offices & 203 atms

2.6 OWNERSHIP PATTERN Ownership pattern1. In 1996 the bank signed strategic alliance with bank Brussels Lambert, Belgium for equity participation.1. In 2001 the Ifc Washington also joins hands to strengthen the bank ,later bbl Belgium merges with ing.1. In sep 2002 ing increased it's stake to 44%.1. In oct 2002 ing takes over the management.1. In dec 2002 the bank is remained as ing vysya bank. ing & other foregin institutions is having 49% of shares & indian investors is having 51% of share.1. In nov. 2014 the banks share exchanged ratio of 725 shares for 1,000 shares with Kotak Mahindra Bank.BOARD OF DIRECTORS:-Dr. Shankar Acharya, Non-Executive Chairman

(DIN: 00033242)Dr. Shankar Acharya, B.A. (Hons.) from Oxford University and Ph.D. (Economics) from Harvard University, aged 68 years, has considerable experience in various fields of economics and finance. He is a Honorary Professor at the Indian Council for Research on International Economic Relations (ICRIER) and a Member of the Court of Governors at the Administrative Staff College of India (ASCI). He was Chief Economic Adviser, Ministry of Finance, Member, Securities and Exchange Board of India (SEBI) and Member, Twelfth Finance Commission. He has held several senior positions in the World Bank, including Director of World Development Report (1979) and Research Adviser. He was re-appointed as the Non-Executive Chairman of the Bank at the Annual General Meeting held on 19th July 2012 for a period of three years with effect from 20th July 2012.He is on the Board of Eros International Media Ltd. and South Asia Institute for Research and Policy (Private) Limited, Sri Lanka. During 2013-14, Dr.Acharya was the Chairman of the Audit Committee of the Bank, Member of the Audit Committee of Eros International Media Limited and the Chairman of the Shareholders' Grievance/Investors' Relations Committee of Eros International Media Ltd.

Mr. Uday Kotak, Executive Vice-Chairman and Managing Director

(DIN: 00007467)Mr. Uday Kotak, aged 55 years, holds a Bachelors degree in Commerce and an MBA from Jamnalal Bajaj Institute of Management Studies, Mumbai. He is the Executive Vice-Chairman and Managing Director of the Bank and its principal founder and promoter. Under Mr. Kotak's leadership, over the past 28 years, Kotak Mahindra group established a prominent presence in every area of financial services from stock broking, investment banking, car finance, life insurance and mutual funds. Mr. Kotak is the recipient of several prestigious awards. He is a member of the Government of India's high level committee on Financing Infrastructure, the Primary Market Advisory Committee of SEBI, Member of the Board of Governors of Indian Council for Research on International Economic Relations, National Institute of Securities Markets and National Council of CII.

Mr. C. Jayaram, Joint Managing Director

(DIN: 00012214)Mr. C. Jayaram, B. A. (Economics), PGDM-IIM, Kolkata, aged 58 years, is Joint Managing Director of the Bank and currently heads the wealth management business and international operations for Kotak Mahindra group. He also oversees the alternative investments business which includes private equity funds and real estate funds, as well as the institutional equities business. He has varied experience of over 36 years in many areas of finance and business and was earlier the Managing Director of Kotak Securities Limited. He has been with the Kotak Group for 24 years and has been instrumental in building a number of new businesses at Kotak Group. Prior to joining the Kotak Group, he was with Overseas Sanmar Financial Ltd.

Mr. Dipak Gupta, Joint Managing Director

(DIN: 00004771)Mr. Dipak Gupta, B.E. (Electronics), PGDM-IIM, Ahmedabad, aged 53 years, is the Joint Managing Director of the Bank and has over 28 years of experience in the financial services sector, 22 years of which have been with the Kotak Group. He is responsible for Group HR, administration, infrastructure, operations and IT. He is also responsible for asset reconstruction business of the Bank. Mr. Dipak Gupta was responsible for leading the Kotak Group's initiatives into the banking arena. He was the Executive Director of Kotak Mahindra Prime Limited. Prior to joining the Kotak Group, he was with A. F. Ferguson & Company for approximately six years.

Mr. Asim Ghosh

(DIN: 00116139)Mr. Asim Ghosh, aged 66 years, is the President and Chief Executive Officer of Husky Energy Inc. He has a B.Tech, IIT Delhi and MBA from the Wharton School, University of Pennsylvania. Mr. Ghosh commenced his career in consumer goods marketing with Procter & Gamble in the U.S. and Canada and worked subsequently with Rothmans International as a Senior Vice President of Carling O'Keefe Breweries, then one of Canada's major breweries. He moved to Asia in 1989 as CEO of the Frito Lay (Pepsi Foods) start up in India. Thereafter, he was in executive positions with Hutchison in Hong Kong and India for 16 years. He continued as the CEO of the predecessor company of Vodafone India Limited till 31st March 2009 and as a Non-Executive Director till 9th February 2010. He serves on the Board of Husky Energy Inc., other Husky Group Companies, some Hutchison Whampoa Group Companies and the Canadian Council of Chief Executives.

Mr. Prakash Apte

(DIN: 00196106)Mr. Prakash Apte, B.E. (Mechanical), aged 59 years, is presently the Chairman of Syngenta India Limited, one of the leading agri business companies in India. Mr. Apte, in a career spanning over 36 years has considerable experience in various areas of management and business leadership. During more than 16 years of very successful leadership experience in agri business, he has gained varied knowledge in various aspects of Indian Agri Sector and has been involved with many initiatives for technology, knowledge and skills up gradation in this sector, which is so vital for India's food security. He was instrumental in setting up the Syngenta Foundation India which focuses on providing knowledge and support for adopting scientific growing systems to resource poor farmers and enabling their access to market. He is a Director of Syngenta Foundation India and Kotak Mahindra Old Mutual Life Insurance Limited. Mr. Apte is a member of Audit Committee of Bank and Syngenta India Limited.

Mr. Amit Desai(DIN: 00310510)Mr. Amit Desai, B.Com, LLB, aged 55 years, is an eminent professional with 33 years of experience. He is also on the Board of Kotak Mahindra Trustee Company Limited.

Mr. Narendra P. Sarda

(DIN: 03480129)Mr. N.P. Sarda, B.Com, F.C.A., aged 68 years, is a Chartered Accountant for more than 40 years. He is a former partner of M/s. Deloitte Haskin & Sells, Chartered Accountants, the past President of the Institute of Chartered Accountants of India (in 1993) and was a public representative Director of the Stock Exchange, Mumbai (BSE).

Prof. Mahendra Dev

(DIN: 06519869)Prof. S. Mahendra Dev, PhD from the Delhi School of Economics, aged 56 years is currently Director and Vice Chancellor, Indira Gandhi Institute of Development Research (IGIDR), Mumbai, India. He was Chairman of the Commission for Agricultural Costs and Prices (CACP), Govt. of India, Delhi. He was Director, Centre for Economic and Social Studies, Hyderabad for 9 years during 1999 to 2008. He has done his Post-doctoral research at Yale University and was faculty member at the Indira Gandhi Institute of Development Research, Mumbai for 11 years. He has been a member of several government committees including the Prime Minister's Task Force on Employment and Rangarajan Commission on Financial Inclusion. He has received honors for eminence in public service. He is the Chairman of the Committee on Terms of Trade on agriculture constituted by the Ministry of agriculture, Govt. of India. He is also member of the newly constituted Expert Panel on poverty estimates chaired by Dr. C. Rangarajan.

Mrs. Farida Khambata

(DIN: 06954123)Mrs. Khambata, is currently Global Strategist of Cartica Management, LLC and a member of its Investment Committee. She was earlier with International Finance Corporation (IFC) and was a member of IFC's Management Group, the senior leadership team of IFC. In her last position at IFC she served as Regional Vice President in charge of all operations in East Asia and the Pacific, South Asia, Latin America and the Caribbean and the Global Manufacturing Cluster. Mrs. Khambata joined IFC in 1986 from the World Bank where she managed pension fund assets.

Competitors for ing vysya bank1. Axis bank.1. HDFC bank.1. ICICI bank.1. IDBI bank.1. Standard chartered.1. LIC housing.1. SBI.1. Duestche bank.1. Punjab national bank.Infrastructure Ing vysya bank head office is situated in bangalore.Ing house contains the board room, offices for senior mgmt and a number of corporate dept's.the building was desgined to reflectthe image of ing vysya innovative and transparent , dynamic and sustainable . the open planand glass walls help facilitate communication across dept's& complement dedication to transparency.The ing vysya house has a auditorium, a foyer, restaurant, library , conference rooms & parking spaces.The total office space is reserved for "flexible"work stations, which give employees the chance to change their working environment.

ACHEIVEMENTSING becomes 13th largest company in the world compared with last year, ING Group has risen four places in the Global 500 list of the worlds largest companies. The list is published by Fortune, the US business journal. At number 13 in the ranking, ING Group is the largest financial institution on the list, followed by Citigroup and AXA & in terms of revenues and net profit; ING is now the biggest of the 21 insurers on the list. Over the last 150 years ING group has grown to become one of the largest life insurance organisations in the world. Today it touches the lives of over 50 million people across 65 countries.1. ING Group is the worlds largest LIC in profits (U S 4.50 billion. 1. 4th largest financial group in the world.1. Ranked 9th overall among world top 2000 companies (Forbes 2005).1. Operating in 5 continents across 50 countries. 1. It has 60 million customers.1. ING Vysya employees raise 35 lakhs to send 2,500 child workers back to school.1. Worlds largest financial group in revenues (fortune 500 2006) having presence in over 50 countries & with over 1, 15,000 employees.1. Worlds 1st integrated financial service provider offering banking insurance & asset management.1. Total assets of Euro 1,158 billion as on dec.2005.1. Ranked no.1 retail fund manager in Asia (Asia asset mgmt dec,2005)1. 2007 it has been recognized for our public relations by the public relations council of India in its global meet on corporate communication march 2007.1. 2010 Ing vysya bank wins the C10 100 awards 2010 for its unique mobile voice recording solution.

AWARDS:-1. 1996 GEM & JEWELLERY EXPORT PROMOTION COUNCIL CONFERRED AWARD FOR BEST EXPORT PROMOTION.1. 1998 Won golden peacock award from institute of directors for best HR practices.1. 1998 International magazine GLOBAL FINANCE rated the bank best DOMESTIC BANK.1. 2007 Achiever award for contributions & consistent public relations council of INDIA.

Future growth of ING Vysya Bank

The ing vysya bank has a great opportunity to drive business growth .the combination of innovative & ing vysya's reputation for efficient service delivery & customer care puts it in a stronger position to maximize opportunities & to expand its operations. With a economy of the country growing at nearly 8% these high growth potential for the bank.The bank is planning to enable Money Click as a payment gateway for shopping that conserves at areas of business like hotel booking, ticket booking, purchase of goods etc.1. Ing vysya angel broking ink pact for investment services.1. Ing vysya bank plans to hike base rate in Jan-march says CEO1. Angel broking head. Liquidity in share market not a concern right now.1. Angel broking head: sensex may top 21000 if liquidity increases.1. Ing vysya bank CEO aims for FY11 loan growth better vs. industry.

RESEARCH METHODOLOGY

Research Objectives

To know the level of awareness among customers about ING Vysya Bank.

To know the interest level of the customers to get associated with ING Vysya Bank.

To study the customers perception about various products offered by ING Vysya Bank.

To get an idea of the various banking products/services used by customers.

To study the performance of ING Vysya Bank over the past 5 years.

Research Methodology

Methodology includes a philosophically coherent collection of theories, concepts or ideas as they relate to a particular discipline or field of inquiry.Methodology refers to more than a simple set of methods; rather it refers to the rationale and the philosophical assumptions that underlie a particular study relative to the scientific method. This is why scholarly literature often includes a section on the methodology of the researchers. This section does more than outline the researchers methods (as in, We conducted a survey of 50 people over a two-week period and subjected the results to statistical analysis, etc.); it might explain what the researchers ontological or epistemological views are.The objective of this project has been to learn about the perception of consumers about the various products offered by ING Vysya Bank. Also to see the awareness of customers about the bank and its products. Besides this through this project an effort has also been made to unveil the risk profile of consumers.Research Design

It is a plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering method, the instruments to be used or created, how the instruments will be administered, and how the information will be organized and analyzed.

In the present research Quantitative Research methods have been used. Quantitative marketing research is the application of quantitative research techniques to the field of marketing. In the present project I have used questionnaires as a method for conducting the primary research. Research InstrumentsThe kind of research instruments one uses greatly helps in realizing the reliability and validity of a research. In the present research I have used questionnaires as our research instrument.In the present research on ING Vysya Bank I have used Structured Non-Disguised QuestionnaireData CollectionPrimary DataIn this project data have been collected from the sample of 108 people from various walks of life, but basically I have focused on people from middle class, upper middle class and elite class of the society.I came to know about the perceptions of consumers regarding the policies of bank through a well designed questionnaire.Secondary DataIn the project the information is collected from different sources about the bank and that of its products from Annual Report of the company.SamplingSampling is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern, especially for the purposes of statistical inference. Each observation measures one or more properties (weight, location, etc.) of an observable entity enumerated to distinguish objects or individuals. Survey weights often need to be applied to the data to adjust for the sample design. Results from probability theory and statistical theory are employed to guide practice.

In this research on ING Vysya Bank I have followed the following steps:

1. Target Population: The target population used for sample selection here is the people who have Account with the bank.

2. Geographical Spread of the target population (Sampling Frame): The area of research is North India. In north India also parts of Delhi were the areas for primary data collection by way of Questionnaires.

3. Sampling Method Used: Here the Non- Probability Sampling methods which are Convenience Sampling and Snowball Sampling have been used.

4. Sample size: the sample size is 108.

Data Analysis Techniques Used

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains.

The various data analysis used in the present research is as follows:

Descriptive Data AnalysisDescriptive analysis is used to describe the basic features of the data in a study. They provide simple summaries about the sample and the measures. Together with simple graphics analysis, they form the basis of virtually every quantitative analysis of data. Frequency Distribution have been used in the present project along with Cross tabs using Chi square test have been done in the present project. Software UsedFor the better presentation and right explanation I used tools of statistics and computer very frequently which I used for project from statistics are- Bar Charts Pie charts TablesBar 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. MS- Excel- 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. With the help of MS Excel the fifth objective of the research has been fulfilled. MS-Word- Microsoft-Word did help me for the documentation of the project in a presentable form. SPSS (originally, Statistical Package for the Social Sciences) has been used to analyse the data. In the present project descriptive analysis has been used to fulfill the first four objectives of research. Chi-Square Test: Chi square test helps to find the significant relation between two variables wherein the Null hypothesis is that there is no significant relationship between two variables and the Alternate hypotheses is that there is significant relationship between the two variables. If the value of alpha is less than 0.05 then null hypotheses is rejected. In this project chi square test have been used with cross tabs to find the significant relation between two variables.

LITERATURE REVIEW

Recently many researchers have shown interest in the field of banking and the customer perception in this regard. They have carried out numerous studies and observations using various statistical and scientific tools to illuminate the darkness of this field. Their findings and suggestions are reviewed here. Some of these are related to the ING Vysya Bank and some are not.

Mr. Rajesh Chakrabarti in the year 2005 in his report titled Banking in India Reforms and Reorganization discussed about the transformation that is going about in the banking industry in India. According to his report the performance of the banks has improved slightly over time. The banking sector as a whole and particularly the public sector banks still suffer from considerable NPAs, but the situation has improved over time. New legal developments like the SARFAESI Act provide new options to banks in their struggle against NPAs. Over time, the Indian banking industry has become more competitive and less concentrated. The new private sector banks have been the most efficient according to the findings of his report.

Dr. Hema Bhalakrishnan carried out a research on the topic A Study on Customer Perception in Banking Industry Using Gap Analysis in the year 1999. The objectives of this study were to evaluate the different factors considered by the investors while making investments, to study the services provided by Private Sector and Public Sector banks and the performance of it and to analyze the service facilities those are being effectively utilized by customers. This study concluded that easy access is the considered as the most important factor as compared to others and also that the customers expectations from ICICI bank are more as compared to some other public and private banks.

Another research was carried on by Mr. Vipul in the year 2009. The project was on Citibank titled as Project on Financial Services of Citi Bank. The main objectives of this project were to study the consumers perceptions about various banks, to know the level of awareness among consumers about Citibank, to collect various suggestions from consumers to make Citibank better one, to identify the key factors of consumer satisfaction in this industry and to have a comparative analysis of the customer satisfaction level for the various banks.. The research had main findings that most of people like to have their account with ICICI bank and also people felt the need of more ATMs of Citibank in North Delhi.

Mr. Vikash Kumar Mishra carried a project study on The environmental factorsresponsible for IDBI Banks performance (Positively& Negatively) in SAKET in the year 2008 To know about environmental factors affecting IDBI Banks performance. The objectives of this study were to analyze the role of advertisement for bank performance, to know the perception and conception of customers towards banking products and specially focused for IDBI Banks product and to explore the potential areas for the new bank branches. The key findings of this study were that credibility of IDBI bank is good in comparison to its competitors as GOI (Government of India) is a major share holder in the company, IDBI bank has tapped a good market share in Saket region and hence has opportunities for growth and the network of IDBI in Saket is lagging behind a little than its competitors like ICICI bank and HDFC bank

Mr. Ashutosh in the year 2008 another survey titled as HDFC Bank - Customer Satisfaction Levels. The study focused on measurement of customer satisfaction related to services offered by HDFC Bank. The study also included rating of the products of HDFC Bank and also the rating of overall experience. Besides this overall satisfaction level of customers was also found out. The main results of this survey were that most of the customers of HDFC Bank are loyal and they recommend the products of bank to others. Also 63% of the customers of the bank are satisfied with its services and products.

In all these projects the objective of the projects have mainly been to study about the perception and awareness level of customers however in case of my present project the objectives are also to get an idea about the various products/services used by the respondents and to know their interest level to get associated with ING Vysya bank.