MIRA
INFORM REPORT
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Report Date : |
17.09.2007 |
IDENTIFICATION DETAILS
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Name : |
ING VYSYA BANK LIMITED |
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Registered Office : |
ING B- Vysya House, No. 22, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1930 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRI02594E |
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PAN No.: [Permanent
Account No.] |
AABCT0529M |
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Legal Form : |
Public limited liability bank. The Bank's shares are listed on the Stock Exchanges. |
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Line of Business : |
Banking business |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established Bank having fine track. Available information indicates high financial responsibility of the Bank. Financial position is good. Payment are correct and as per commitments. Subject can be considered good for your proposed business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered/ Corporate Office : |
ING B- Vysya House, No. 22, |
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Tel. No.: |
91-80-25005000/25559222 |
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Fax No.: |
91-80-25005555/25559212 |
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Websites: |
DIRECTORS
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Name : |
Mr. G M Rao |
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Designation : |
Chairman |
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Name : |
Mr. Bart
Hellemans |
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Designation : |
Managing Director
and CEO |
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Name : |
Mr K R
Ramamoorthy |
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Designation : |
Director |
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Name : |
Mr. K R V
Subrahmanian |
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Designation : |
Director |
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Name : |
Mr. Joseph J
Kestemont |
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Designation : |
Director |
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Date of Appointment: |
26.09.2006 |
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Name : |
Mr.Peter
Alexander Smyth |
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Designation : |
Director |
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Name : |
Mr.Anand |
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Designation : |
Director |
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Name : |
Mr.Ryan Andrew
Padgett |
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Designation : |
Director |
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Name : |
Mr. Arun
Thiagarajan |
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Designation : |
Director |
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Name : |
Dr. Prakash G
Apte |
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Designation : |
Director |
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Date of Appointment: |
18.10.2006 |
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Name : |
Mr. Lars Kramer |
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Designation : |
Director |
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Name : |
Mr. Cees
Ovelgonne |
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Designation : |
Director |
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Name : |
Mr. Peter Staal |
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Designation : |
Director |
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Name : |
Mr. B Ramani Raj |
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Designation : |
Director |
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Name : |
Mr. Luc
Vandewalle |
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Designation : |
Director |
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Date of Appointment: |
30.06.2006 |
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Name : |
Mr. Vaughn Nigel
Richtor |
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Designation : |
Managing Director
and Chief Executive Officer |
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Name : |
Mr. Aditya
Krishna |
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Designation : |
Director |
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Date of Appointment: |
21.012.2006 |
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Name : |
Mr. Philippe
Damas |
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Designation : |
Director |
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Name : |
Mr. Richard Cox |
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Designation : |
Director |
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Date of Appointment: |
13.07..2006 |
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Name : |
Mr. Wilfred Nagel |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. V Raghunathan |
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Designation : |
President (till
31st July, 2004) |
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Name : |
Mr. Jean Louis
Lemaire |
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Designation : |
Chief Operations
Officer |
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Name : |
Mr. Shantanu
Ghosh |
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Designation : |
Country
Head-Retail Banking |
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Name : |
Mr. K B V Narayan |
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Designation : |
Chief Financial
Officer |
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Name : |
Mr. V Ravi Kumar |
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Designation : |
Country
Head-Financial Markets (till 14-6-2005) |
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Name : |
Mr. Steven
Billiet |
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Designation : |
Country Head -
FVt.Banking & Bancassurance |
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Name : |
Mr. Ned Swarup |
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Designation : |
Chief Credit
Officer |
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Name : |
Mr. B Ashok Rao |
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Designation : |
Chief-Corporate
Audit Group, Chief of Staff,
Compliance and Vigilance |
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Name : |
Mr. Ravindra Kumar |
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Designation : |
Country Head -
Wholesale Banking (from 1-9-2004) |
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Name : |
Mr.J M Prasad |
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Designation : |
Chief-Human
Resources |
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Name : |
Mr. S Muralidhar |
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Designation : |
Chief
Administrative Officer (till 30-7-2005) |
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Name : |
Mr. K S R
Anjaneyulu |
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Designation : |
Regional CEO-AP |
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Name : |
Mr.Suresh Chandra
Nanda |
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Designation : |
Regional
CEO-North & East |
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Name : |
Mr. Hemlata Mohan |
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Designation : |
Regional CEO -
South (Except-AP) |
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Name : |
Mr.V |
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Designation : |
Regional CEO -
West & Business Head – SME (from 15-9-2004) |
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Name : |
Mr.S Viswanathan |
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Designation : |
Business
Head-Emerging Corporates |
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Name : |
Mr. T V Balaji |
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Designation : |
Business Head -
Agri & Social Banking SBU |
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Name : |
Mr. Jacobus C
Provoost |
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Designation : |
Chief Market Risk
Officer |
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Name : |
Mr. Judy Manners |
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Designation : |
Chief-Ops &
IT |
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Name : |
Mr. Bala Iyer |
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Designation : |
Chief Operational
Risk Officer (from 1-10-2004) |
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Name : |
Mr. Ranjiv Walia |
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Designation : |
Business
Head-Consumer Products & Sales (from 10-1-2005) |
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Name : |
Mr. Donald Koch |
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Designation : |
Chief Operating
Officer ( OPs and IT) |
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Name : |
Mr. Bishwajit
Mazumder |
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Designation : |
Chief – Corporate
Audit Group |
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Name : |
Mr. Janak Desai |
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Designation : |
Country Head –
Wholesale Banking and Financial Markets |
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Name : |
Mr. Jayant
Mehrotra |
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Designation : |
Chief Financial
Officer |
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Name : |
Mr. Ned Swarup |
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Designation : |
Chief Risk
Officer |
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Name : |
Mr. K B V Narayan |
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Designation : |
Company Secretary |
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Name : |
Mr. Samir Bimal |
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Designation : |
Country Head – Private Banking |
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Name : |
Mr.
Sankarshan Y Rao |
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Designation : |
Regional Chief Executive Officer |
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Name : |
Mr. Sankar P |
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Designation : |
Officiating Regional Chief Executive Officer
– N and E |
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Name : |
Mr. M V S Appa
Rao |
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Designation : |
Corporate Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group2 |
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(1) Indian |
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(a) Individuals / Hindu Undivided Family |
1964 |
0.00% |
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(b) Bodies Corporate |
285209 |
0.31% |
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(2) Foreign |
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(a)Bodies Corporate |
39872480 |
43.86% |
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(B) Public Shareholding3 |
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(1) Institutions |
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(a) Mutual Funds / UTI |
11544331 |
12.70% |
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(b) Financial Institutions / Banks |
858448 |
0.94% |
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(c) Foreign Institutional
Investors |
20792099 |
22.87% |
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(2) Non – Institutions |
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(a) Bodies Corporate |
1642446 |
1.81% |
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(b) Individuals – i. Individual Shareholders holding nominal share capital up to Rs.
0.100 millions |
8854750 |
9.74% |
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ii) Individual Shareholders holding nominal share capital excess Rs.
0.100 millions |
2413147 |
2.65% |
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(c) Any Other (specify) |
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Non Residents Indians |
4605160 |
5.07% |
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Trust |
9984 |
0.01% |
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Clearing Members |
23773 |
0.03% |
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Foreign Nationals |
1000 |
0.00% |
BUSINESS DETAILS
|
Line of Business : |
Banking business |
GENERAL INFORMATION
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No. of Employees : |
5647 |
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Bankers : |
Reserve Bank of |
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Facilities : |
Secured Borrowing : Reserve Bank of Other Bank Rs. 2098.552 millions Other Institutions and Agencies Rs. 1165.983 millions Borrowing Outside Total
Rs. 8307.760 millions |
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Banking Relations
: |
Good |
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Auditors : |
M/s BSR &
Company Chartered Accountants, Mumbai |
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Subsidiaries : |
Ø The Vysya Bank Financial Services Limited (Formerly known as "The Vysya Bank Leasing Limited") Ø Vysya Bank Housing Finance Limted |
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Associates : |
Ø
Bank Ø ING Vysya Life Insurance Company Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000000 |
Equity shares |
Rs.10/- each |
Rs.3500.000 millions |
|
100000000 |
Preference shares |
Rs.10/- each |
Rs.1000.000 millions |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
91259970 |
Equity shares |
Rs.10/- |
Rs.912.600
millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
90904791 |
Equity shares |
Rs.10/- each |
Rs.909.048
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
CAPITAL AND
LIABILITIES |
|
|
|
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Capital |
|
909.048 |
907.206 |
227.10
|
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Reserves and surplus |
|
10123.824 |
9289.535 |
6866.90
|
|
Deposits |
|
154185.894 |
133352.551 |
125693.00
|
|
Borrowings |
|
8435.531 |
11074.460 |
8307.80
|
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Other liabilities and provisions |
|
19208.678 |
13042.924 |
12810.80
|
|
|
|
|
|
|
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Total |
|
192862.975 |
167666.676 |
153905.60 |
|
|
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ASSETS |
|
|
|
|
|
Cash and Balance with Reserve Bank of |
|
9458.130 |
8416.514 |
6666.70
|
|
Balance with Banks and Money at call and short notice |
|
6458.905 |
2816.823 |
4478.30
|
|
Investments |
|
45278.131 |
43723.357 |
41958.90
|
|
Advances |
|
119761.650 |
102315.253 |
90805.90
|
|
Fixed Assets |
|
3959.697 |
4054.093 |
3140.00
|
|
Other Assets |
|
7946.462 |
6340.636 |
68505.80
|
|
Total |
|
192862.975 |
167666.676 |
153905.60 |
|
Contingent
Liabilities |
|
402098.382 |
273.920 |
314791.80
|
|
Bills
for collection |
|
14479.933 |
14785.434 |
13182.60
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
|
Sales Turnover |
14013.768 |
12224.348 |
11110.718 |
|
|
Other Income |
1943.180 |
1391.716 |
0.000 |
|
|
Total Income |
15956.948 |
13616.064 |
11110.718 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
889.098 |
90.565 |
381.780 |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
889.098 |
90.565 |
381.780 |
|
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Interest Expended |
8593.111 |
7412.477 |
|
|
|
Operating Expenses |
5070.642 |
5187.905 |
11492.498 |
|
|
Provisions and Contingencies |
1404.097 |
925.117 |
|
|
Total Expenditure |
15067.85 |
13525.499 |
11492.498 |
|
QUARTERLY
|
Year |
30.06.2007 |
|
Type |
1st Quarter |
|
Sales
Turnover |
4284.700 |
|
Other
Income |
579.10 |
|
Total
Income |
4863.80 |
|
Total
Expenditure |
1531.60 |
|
Operating
Profit |
3332.20 |
|
Interest |
2918.60 |
|
Gross
Profit |
413.60 |
|
Depreciation |
0.00 |
|
Tax |
160.40 |
|
Reported
PAT |
253.20 |
200706 Quarter 1 --------------- Notes Provision for Taxes
indicates FBT Status of Investor Complaints for the quarter ended June 30, 2007
Complaints Pending at the beginning of the quarter 01 Complaints Received
during the quarter 36 Complaints disposed off during the quarter 36 Complaints
unresolved at the end of the quarter 01 1. The results for the quarter ended
June 30, 2007 have been subject to a limited review by the statutory auditors
of the bank as per the requirements of the listing agreement. 2. The above
results for the quarter ended June 30, 2007 were reviewed by the Audit
Committee of the Board and approved by the Board at its meeting held on July
26, 2007. 3. The unaudited financial results for the quarter ended June 30,
2007 have been prepared based on the same accounting policies as those adopted
in the preparation of the annual financial statements for the year ended March
31, 2007 except as indicated in 4 and 5 below. 4. The Bank has, with effect
from April 01, 2007, shifted from Inclusive to Exclusive method for accounting
service tax paid on input services as prescribed by Institute of Chartered
Accountants of India. Consequent to such change, net profit after tax for the
quarter is higher by Rs 47.50 million including post tax transition credit of
Rs 37.50 million and Capital Adequacy ratio is higher by 0.04%. 5. The Bank has
provided for pro-rata Pension, Gratuity and Leave encashment liabilities based
on revised Accounting Standard (AS) 15 'Employee benefits' in the profit and
loss account for the quarter ended June 30, 2007. The transitional effects of
the revised AS 15 on employee benefits have not been considered pending
clarifications from Reserve Bank of
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Credit
Deposit Ratio |
77.23 |
74.55 |
69.50 |
|
Investment
Deposit Ratio |
30.95 |
33.08 |
35.93 |
|
Cash
Deposit Ratio |
6.22 |
5.82 |
5.61 |
|
Interest
Expended/Interest Earned |
61.32 |
60.64 |
63.98 |
|
Other
Income/Total Income |
15.64 |
13.72 |
15.20 |
|
Operating
Expense/Total Income |
34.26 |
40.52 |
37.23 |
|
Interest
Income/Total Funds |
7.82 |
7.66 |
6.98 |
|
Interest
Expended /Total Funds |
4.80 |
4.64 |
4.47 |
|
Net
Interest Income/Total Funds |
3.03 |
3.01 |
2.51 |
|
Non
Interest Income/Total Funds |
1.45 |
1.22 |
1.25 |
|
Operating
Expense/Total Income |
3.18 |
3.60 |
3.07 |
|
Profit
Before Provisions/Total Funds |
1.30 |
0.62 |
0.70 |
|
Net
Profit/Total Funds |
0.50 |
0.06 |
-0.27 |
|
Return
On Net Worth(%) |
9.36 |
0.89 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
ING Vysya Bank Limited, formed by coming together of
erstwhile, Vysya Bank Limited, a premier bank in the Indian Private Sector and
a global financial service organization, ING of Dutch Origin, during the year
2002. The origin of the erstwhile Vysya Bank goes back to the year 1930, a team
of visionaries came together to found a bank that would extend a helping hand
to those who weren't privileged enough to enjoy banking services. It has 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
The Bank is constantly setting new standards in banking. It has many
credits to its account. The main functional activities of the bank are
classified under three business lines, which are Retail Banking, Wholesale
Banking and Financial Markets.
The Bank signed a Memorandum of Understanding (MoU) with
Bank Brussels Lambert (ING Group), Belgium in the year 1996 for globalize its
operations, particularly in Europe, South-East Asia, Australia, Hong Kong and
Africa. It also signed a MoU with M C Securities,
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.
In 2001, the Bank entered into Life Insurance business by forming a joint
venture with ING group, called ING Vysya Life Insurance Company Private Limited
(IVL). In 2002, ING group increased its stake to 43.99% and also takes over the
management of the bank. Subsequently, the bank's name changes to ING Vysya Bank
Limited.
In 2005, the platinum jubilee of the bank was celebrated to mark its 75
years in banking. During the year, the Bank came out with rights issue of
67784595 equity shares issued in the ratio of 3:1 amounting to Rs. 3070.800
millions (including premium).
In 2006, the bank divested its entire stake of 14.87% in ING Vysya Life
Insurance Company Private Limited.
DIRECTOR'S
REPORT
The Board of Directors have pleasure in presenting the Seventy Sixth Annual
Report of your Bank together with the Audited Statements of accounts for the
year ended March 31, 2007, Auditors' Report thereon and other documents and
statements as are required.
Financial and Business
Performance
For the year ended March 2007 the Bank posted a net profit of Rs. 890.000
millions compared to Rs. 90.000 millions for 2005-06. The pre-tax profit
improved to Rs. 1280.000 millions compared to Rs. 220.000 millions during the
previous year.
The aggregate business of the Bank has crossed a new milestone of
Rs.25,0000.000 millions mark to reach
Rs. 27,3950.000 millions as at March 31, 2007 compared to Rs.23,5660.000
millions as at March 31, 2006. The Total Deposits of the Bank increased to Rs.
15,4190.000 millions registering a growth of 16%. The Net Advances increased to
Rs. 11,9760.000 millions by March 2007 compared to Rs. 10,2320.000 millions at
the end of the previous year. The Bank has complied with the regulatory
requirements namely the target of 40% of adjusted net bank credit for priority
sector lending achieving a level of 41% (previous year 36%).
Export
advances increased to Rs. 1,1510.000 millions from 1,1050.000 millions at the
end of the previous year. The export credit as a percentage of adjusted net
bank credit stood at 10.20%. As of March 31, 2007 the outstanding credit to SC
/ ST borrowers stood at Rs.487.500 millions (previous year Rs.177.000 millions)
and the percentage of recovery to demand as on March 31, 2007 is 46% (previous
year 46.24%) of the amounts fallen due.
The
Net Interest Income for the year 2006-07 increased to Rs. 5420.000 millions,
registering an increase of 13%.
Operational Expenditure has decreased to Rs. 5070.000 millions compared
to Rs. 5190.000 millions for the previous year.
The
net NPA has been brought down to 0.95% as of March 2007 from 1.76% as of March
2006. Capital adequacy ratio has been maintained at 10.56% as on March 2007, a
marginal decline from the 10.67% as of March 2006.
The
detailed discussion on financials and business performance is presented in the
Management Discussion and Analysis Report, forming part of this Annual
Report.
Appropriation of
Profits and Dividend
In compliance with the requirement under the Banking Regulation Act, 1949 and the guidelines issued thereunder by the Reserve Bank of India, the Directors propose to transfer Rs. 222.300 millions (previous year Rs. 22.600 millions) to Statutory Reserve, Rs. 395.700 millions (previous year Rs. 260.000 millions) to Capital Reserve and Rs. 30.500 millions (previous year Nil) to Investment Reserve, for the year ended March 2007.
With the improved financial performance it is gratifying that the Bank is
back on dividend track. Taking into account the Regulatory restrictions, the Board
of Directors recommend the payment of dividend at 6.5% on the face value of
fully paid-up shares. The outflow on account of this dividend, including the
dividend tax would absorb Rs. 69.100 millions.
The dividend recommended, on approval would be paid to all those shareholders
whose names appear as Beneficial Owners as at the end of May 29, 2007 as per
the list to be furnished by Depositories (viz., NSDL and CDSL) in respect of
the shares held in electronic form, and those shareholders whose names appear
in the Register of Members of the Bank as members after giving effect to all
valid transfers of shares in physical form which will be lodged with the Bank
on or before May 29, 2007.
MACRO ECONOMIC AND
BANKING INDUSTRY DEVELOPMENTS
Real Gross Domestic Product ('GDP') growth for 2006-07 was
placed at 9 percent in the advance estimates of the Central Statistical
Organisation ('CSO') following 9 percent in 2005-06. These estimates have
vindicated the overall optimism building around the performance of the Indian
economy, which was also reflected in successive upward revisions in growth
projections by various agencies during the course of 2006-07, including in the
Reserve Bank's quarterly reviews. Industrial activity expanded strongly, with
real GDP originating in industry estimated to have risen by 10 percent in
2006-07 as compared with 8 percent in the previous year. The Index of
Industrial Production ('IIP') recorded an increase of 11 percent during
April-February 2006-07 vis-a-vis 8 percent a year ago. The services sector
registered a growth of 11 percent during 2006-07 as against 10 percent a year
ago. Real GDP originating from agriculture and allied activities is estimated
to have registered a growth of 3 percent in 2006-07, lower than 6 percent in the
previous year.
The acceleration in real activity propelled a sizeable expansion in
monetary and banking aggregates in 2006-07 for the fourth year in succession.
Money supply (M3), on a year-on-year basis, increased by 21 percent
(Rs.5,67,3720.000 millions) in 2006-07 a,s compared with 17 percent (Rs.
3,96,8810.000 millions) in 2005-06. Aggregate deposits of Scheduled Commercial
Banks ('SCB') increased by 23 percent (Rs. 4,85,2100.000 millions) during
2006-07 as against 18 percent (Rs.3,23,9130.000 millions) in the previous year.
Non-food credit extended by SCBs increased by 28 percent (Rs. 4,10,2850.00
millions) on top of 32 percent (Rs. 3,54,1930.000 millions) in the previous
year, exhibiting some moderation from the sustained growth that characterised
the period 2003-06.
The
system-level incremental non-food credit-deposit ratio edged down to 85 percent
during 2006-07 from 109.3 percent in the previous year, albeit with significant
variations among banks. Food credit of SCBs increased by Rs. 5,8300.000
millions as compared with an increase of Rs. 6750.000 millions the previous
year.
Inflation,
measured by variations in the Wholesale Price Index ('WPI') on a year-on-year
basis, increased from 4 percent at end March 2006 to an intra-year peak of 7
percent at end-January 2007 and remained firm in the range of 6-7 percent in
the succeeding weeks before moderating to 6 percent on 31 March 2007. On an
average basis, annual inflation increased from 4 percent in 2005-06 to 5
percent in 2006-07.
Financial markets
experienced generally stable conditions during the greater part of 2006-07,
albeit with some volatility in the second half amidst heightened activity as
volumes increased steadily and interest rates firmed up in all segments. Equity
markets witnessed major swings during 2006-07. The BSE Sensex (1978-79=100)
increased from 11,280 at end-March 2006 to peak at 12,612 on May 10, 2006 after
which it declined to an intra-year trough of 8,929 on June 14, 2006. It
rebounded in subsequent months on institutional buying support, robust
macroeconomic fundamentals and high private corporate profitability. The Sensex
rallied with intermittent corrections to reach a high of 14,652 on February 8,
2007 but subsequently moderated to 13,072 by end-March 2007. The Indian foreign
exchange market has witnessed generally orderly conditions during 2006-07 and
the current financial year so far with the exchange rate exhibiting two-way
movements.
During 2006-07,
the rupee appreciated by 2 percent against the US dollar and 3 percent against
the Japanese yen, but depreciated by 7 percent against the euro and by 9
percent against the pound sterling.
On the external
front, the foreign exchange reserves, including valuation changes, recorded an
increase of US $26 billion during April-December 2006 and rose to reach a level
of US $199 billion by end-March 2007.
The
distinguishing feature of
From
fiscal 2007-08 the Reserve Bank of
OVERVIEW OF FINANCIAL
AND BUSINESS PERFORMANCE
The performance of the Bank showed a significant all round improvement during the financial year 2006-07. The key factors that contributed to the performance of the Bank during the year were continued focus on core income streams, sound treasury management and emphasis on improving efficiencies.
The Bank recorded a net profit after tax of Rs. 890.000 millions, increasing by 882 percent from Rs. 90.000 millions in the previous year, the current fiscal being the highest profit in the last year ten years of operation.
Net interest income grew by 13 percent, in line with the growth in advances and deposits. Other income (non-interest income) increased by 40 percent, the main drivers being commission, exchange and brokerage income and earnings from foreign exchange transactions. Operating expenses remained relatively flat at Rs. 5070.000 millions compared to Rs. 5190.000 millions in the previous fiscal. Staff expenses accounted for 47 percent of non-interest expenses, with the staff strength increasing to 5,341 from 5,312 as at the fiscal year end.
The capital adequacy ratio of the Bank stood at 10.6 per cent. The Board
of Directors have recommended a divided of 6.5 per cent for 2006-07. During the
year the Bank has raised Rs. 780.000 millions in Tier II capital and Rs.
990.000 millions in upper Tier II capital.
Total deposits of the Bank aggregated to Rs.15,4190.000 millions, an increase
of Rs. 2,0840.000 millions (16 per cent) over the previous fiscal, with low
cost deposits comprising 29 per cent of the deposit base (previous year - 27
percent). Driven by the popularity of the Orange Savings and Current Account
schemes, low cost deposits increased from Rs. 3,6020.000 millions at March 2006
to Rs. 4,4580.000 millions at March 2007, recording a growth rate of 24 per
cent.
Total assets increased 15 percent to Rs. 19,2860.000 millions from Rs.
16,7670.000 millions at March 2006 with advances increasing 17 per cent to Rs.
11,9760.000 millions and investments increasing 4 per cent to Rs. 4,5280.000
millions. The growth trend in advances and deposits over the last ten fiscal
years is depicted below.
The priority sector advances stood at Rs 4,6720.000 millions and constituted 41
per cent of the Net Bank Credit as at 31 March 2007 (last reporting Friday) as
against the norm of 40 per cent stipulated by the RBI.
Export credit increased by 4 per cent from Rs 1,1050.000 millions as at
31 March 2006 to Rs 1,1510.000 millions as at 31 March 2007. Export credit as a
percentage of Net Bank Credit stood at 10 per cent.
The growth in the current fiscal was driven by a combination of growth in both
retail and wholesale advances with the Business Banking segment being the
primary contributor in Retail. Despite a tightening of overall liquidity
leading to a hardening of interest rates in the fourth quarter, the Bank maintained
reasonable margins.
RETAIL BANKING
With a view to increasing its position in the burgeoning retail financial services sector in the country, the Bank has continued to provide a sustained focus to retail banking. The retail banking business is organized into business banking, consumer banking, branch banking and agricultural and social banking.
Traditionally focused on the small and medium enterprises business, this business segment, now re-named 'Business Banking' provides comprehensive financial solutions to individuals and corporate for both domestic and export credit requirements. Business Banking is a key value driver of the Bank and caters to enterprises with annual sales turnover not exceeding Rs 750.000 millions. Spread across 11 sub-regions of the Bank, Business Banking boasts of 14,000 relationships with fund based business of above Rs.2,9000.000 millions and Rs.7800.000 millions under non-fund based limits, registering a growth of 15 per cent and 17 per cent respectively in the current year. During the year, this business segment added M Power - SSI, a tailor-made product targeting the Small Scale Industry ('SSI') units engaged in manufacturing and processing. Our intention is to continue to develop structured products to this very important, growing and profitable segment.
Consumer banking offers structured loan products and other value-added products
and services to salaried and self-employed individuals. Consumer banking
clients are served through a select network of 11 locations across
As part of Branch Banking, the Bank seeks to provide all retail banking
clients with novel solutions to meet their financial needs besides the
traditional deposit products, combined with an ambience, service culture and
expertise that will create a pleasant banking experience. With the continued
attention on the growth of low cost deposits, share of low cost deposits in
total deposits increased to 38 percent, taking the book size of low cost
deposits to Rs 4,2190.000 millions. The total customer base of the segment was
1.17 million at 31 March 2007. The aim is to be a major player in the retail
banking space among all private sector banks and to meet this objective, the
Bank has undertaken a business process re-engineering exercise to improve
internal processes.
Furthermore, to provide our customers with greater flexibility and
convenience as well as to reduce servicing costs, the Bank has invested in
multiple distribution channels - branches, ATMs, phone banking, internet and
mobile banking. The channels have been seeing increasing acceptance by
customers as a result of which transaction volumes have increased manifold
during the year. The branch network of the Bank grew to 440 (including 40
extention counters) as at 31 March 2007 with the number of ATMs across the
country being 158 (including 11 Self Bank ATMs). The Bank has approximately
650,000 active debit and credit card customers with bilateral arrangements with
Corporation Bank for the ATM network and network arrangements with Master Card
International, Cashnet and VISA. A centralized 24-hour Customer Service Line in
Reaching out to the hinterlands of
Providing a
boost to the potential existing in the rural sector, term loans have been
categorized into several segments, addressing the needs of its target customer
group. The Bank achieved Rs. 2750.000 millions crore in this segment,
contributing to 11 per cent of the increase in net bank credit whilst meeting
the priority sector target of 40 per cent. We have a network of approximately
80 rural branches and we intend to use this network to build on the growing
rural wealth and assist us in meeting our priority sector obligations.
Through
Private Banking, the Bank offers advisory-based non-discretionary portfolio
management solutions to high networth individuals with assets to be invested in
excess of Rs. 10.000 millions. Following the success of the launch of several
new initiatives in the fiscal 2007, the Bank continues to devise and launch new
strategies in the equity and debt spheres. New business has been initiated in
Kolkatta and efforts are underway towards increasing our presence in the
Private Banking space. During the year, Assets Under Management ('AUM') grew to
Rs. 1,6940.000 millions, a growth of 64% over the March 2006 fiscal year with
the client base increasing to 386 families. The endeavor would be to introduce
sophisticated products and strategies to clients, along with increasing our
presence pan
ING Vysya
Bank, through its 100 percent subsidiary ING Vysya Financial Services Limited
('IVFSL') caters to the investment needs of retail individual investors, small
and medium enterprises, corporates, trusts and associations. Our Wealth
Management services provide a full spectrum of integrated financial services to
our clients who get access to an array of investment avenues like Insurance,
Mutual Funds and Government of India Bonds. To enhance efficiencies and provide
focus to this business stream, recently, Wealth Management resources have been
moved to the Bank's headcount.
WHOLESALE
BANKING
In the wholesale banking business, the Bank provides its corporates and institutional clients a wide range of commercial and transactional banking products, backed by high quality service and relationship management.
Wholesale Bank, headquartered in Mumbai, manages relationships to the entire client base of Corporate and Investment Banking Group ('CandIB'), Emerging Corporates ('EC') and Banks and Financial Institutions ('BFIG') business groups.
CandIB services and caters to relationships with large corporates
(typically with sales turnover exceeding Rs 4000.000 millions), both in the
private and public sector. The primary focus of this group is to offer lending
and fee based products in areas such as Trade Finance, Cash Management
Services, Investment Banking, treasury and advisory services, including
cross-border products from the ING group and the cross-sell of products offered
by other ING group entities in
EC business is serviced from ten cities of the Bank's extensive network
and focuses on managing relationships for manufacturing, processing and
services sector with an annual sales turnover between Rs 750.000 millions and
Rs 4000.000 millions. A wide range of products are offered to meet the needs of
the business community, with special focus on export credit, regular working
capital finance, cash management services, term loans, non-fund based
facilities including letters of credit, guarantees and structured finance
products in addition to cross sell of ING group products. This business segment
remains a key area of growth for the Wholesale segment.
BFIG is a dedicated group created to leverage the business opportunities
available with private and public sector banks and financial institutions in
During the year, Wholesale segment concluded a clutch of landmark
transactions in areas of debt/bond syndications and positioned itself as one of
top ten debt placement houses. The funded loan book grew by 11 per cent to Rs.
5,6440.000 millions and the non-funded book grew by 23 per cent to Rs.
3,0000.000 millions.
FINANCIAL MARKETS ('FM')
The Bank manages an integrated treasury covering both
domestic and foreign exchange markets. The FM sales unit helps effective
management of currency and interest rate risks for its corporate clientele. The
Sales teams, located in Mumbai, Chennai,
The Asset Liability Management ('ALM') unit of FM helps manage the
balance sheet and is responsible for compliance with reserve requirements and
management of market and liquidity risk. The Bank's government securities book
is substantially insulated from market risk as it is held as per specified
guidelines from the RBI.
FM strategy continues to be one where we build on the products and client
franchise developed so far. With a relationship driven approach and efficient
product delivery, FM will continue to add value within its chosen client set.
FM efforts in this regard would be knowledge driven, as will be the efforts to
exploit market opportunities that may be present from time to time. The ALM
desk will look at adding value to the overall interest and liquidity risk
management on the Balance Sheet.
RISK MANAGEMENT AND
PORTFOLIO
The Bank has adhered to the stringent norms on income recognition, asset classification and provisioning specified by the RBI. All loans are classified per RBI guidelines into performing and non-performing. During the year, significant improvement was made in portfolio quality with low accretion to Non Performing Asset ('NPA's'). However, higher standard provisioning was applied due to the change in the RBI provisioning norms.
As at 31 March 2007, the level of net NPAs decreased to 0.95 percent and gross NPAs to 2.5 percent. The Bank places significant emphasis on recovery of NPA's including written off accounts, with the current fiscal showing significant improvement over the previous year, in this regard.
Market risk is the loss resulting from changes in interest rates, foreign
currency exchange rates, equity and commodity prices. Market risk is primarily
controlled through a series of limits, which are used to align risk-taking
activities based on the Bank's risk appetite. The Asset Liability Committee
('ALCO') has been operating to manage the capital position, liquidity and
interest rate risks of the Bank's balance sheet.
Market Risk Management Department provides ALCO with various tools to manage risks including value at risk, event risk and balance sheet simulations for impact of volume and rate changes and earnings at risk analysis. With these tools ALCO sets the ING Vysya Reference Rate ('IVRR') and spreads on IVRR for various products, based on the strategy of the Bank. The focus is to improve risk awareness within the business units and advise management on the optimal risk return per product and per line of business. This initiative is supported by an ALM software system that facilitates simulation of various market scenarios for rate and foreign currency shocks, growth expectations and their impact on the profitability of the Bank.
Operational risk is the inherent risk in each of the Bank's business units that can result from a variety of factors, failed internal processes, people and systems or from external events. Our approach to operational risk management is designed to mitigate risk by maintaining a comprehensive system of internal controls, establishing systems and procedures to monitor transactions and comprehensive business continuity planning. This objective is achieved by improving operational risk awareness through risk and control self assessment processes, increasing operational risk and loss transparency by incident reporting, improving early warning information through the implementation of key risk indicators, facilitating speedy resolution of audit findings by effectively tracking and follow-up and allocation of risk ownership and responsibilities. In ING Vysya Bank, operational risk is effectively managed through an Operational Risk Committee ('ORC'), reporting into the Risk Management Review Committee. The ORC comprises of the Managing Director and Chief Risk Officer of the Bank in addition to the heads of business and operating units. The Bank has adopted a 'scorecard' approach to measure the quality of operational risk identification, assessment, monitoring and mitigation processes within each business. The scorecard measures the degree of implementation of an operational risk management process within an organization and in turn, within each business / operational units. Managing the scorecards effectively is important to the Bank, as a well-managed and controlled scorecard will propel the Bank to be ready for Basel II implementation.
Further, a comprehensive exercise is underway to strengthen operational risk awareness in the Bank. Overall, risk is well managed and controlled in the Bank.
BANKING OPERATIONS
To sustain the Bank's growth savored in 2006-07 and to
achieve the targeted growth plans, retail operations within the organisation
self assessed itself and embarked on several improvement programs. The
objectives established are clearly oriented towards strengthening the customer
acquisition and customer satisfaction processes. During this period, the Bank
achieved a significant milestone in transferring its treasury business and
operations from
The Bank has also developed a blueprint for its operational activities.
This focuses on core attributes of process, people and policy, along with location, time to market and clients to set the framework for what to perform, where to perform and how to perform to meet our business needs.
Key achievements during this
period include:
o Centralisation of several retail banking operations and activities;
o Business process re-engineering in relation to sales and service operations;
o Migration of Treasury business and operations to Mumbai; and;
o Adherence with compliance and regulatory requirements.
Contingent Liabilities:
|
Particulars |
31.03.2007 |
31.03.2006 |
|
|
Rs. in Millions |
|
|
Claims against the bank not acknowledge as debts |
85.151 |
118.194 |
|
Liability for party paid investments |
150744.419 |
90477.247 |
|
Liability on account of Outstanding Forward Exchange Contracts |
211622.534 |
150340.333 |
|
Guarantees given on behalf
of constituents in |
22126.195 |
17920.365 |
|
Acceptances Endorsement and other Obligations |
15853.094 |
13715.861 |
|
Other items for which the bank is contingently liable |
1666.989 |
1348.421 |
|
Total |
402129.6127 |
273951.6516 |
PRESS RELEASE:
ING Vysya Bank appoints new head of retail banking
ING Vysya Bank today announced the appointment of Uday Sareen as Country Head - Retail Banking and a member of the Executive Management Committee. The appointment is effective immediately reporting in to the Managing Director and Chief Executive Officer of the bank Vaughn Richtor, and is based out of Bangalore.
Uday will be responsible for ING Vysya Bank’s retail banking operations. Prior to joining ING, as a senior member of the global consumer group of Citibank, Uday was part of a team that built the retail brand in the country. His experiences encompass branch banking, wealth management, product management, operations, sales and distribution. Uday’s most recent position with Citibank was that of Senior Vice President & Head – Branch Banking & Wealth Management.
Mr. Richtor said: “Uday brings to the table over a decade of rich retail banking experience and we look forward to an accelerated growth plan in the retail banking segment under his leadership”.
ING Vysya Bank has a strong retail-banking network comprising 400 branches, 40 extension counters, 28 satellite offices and 170 ATMs connected to the core banking solution.
The appointment of Uday comes on the back of the appointment
by ING Retail Banking Asia of Ramakrishnan Subramanian as Managing Director,
Retail Banking Asia to be based in
Press enquiries:
ING Vysya Bank
G K Sateesh Kumar, +91 (0)80 25005 832, sateeshkumargk@ingvysyabank.com
Hanmer & Partners
Ashok N /
Gibin V, + 91 (0)80 2525 2234 / 98 4439
5518, ashok@hanmerpr.com
ING Vysya Bank Ltd. is a premier private sector bank with retail, private
and wholesale banking platforms that serve over 1.5 million customers. With over 75 years of history in India and
leveraging ING’s global financial expertise, a workforce of more than 5,500
employees leverage 638 outlets to offer their clients an increasingly broad
range of innovative and established products and services.
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 in excess of 120,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.
ING Vysya Bank’s Net Profit Up 71.20% to
253.200 Millions in Q1 2007-08
The Board of Directors of ING Vysya Bank Ltd,
at its meeting held at Bangalore today, approved the unaudited
financial results of the Bank for the first quarter ended 30th June 2007.
Financial
Highlights
The Net Profit after Tax increased by 71.20% from Rs.147.900
millions to Rs. 253.200 millions during
the per under review. The Profit before Tax for the quarter increased by 78.89%
from Rs.231.200 millions to Rs. 413.600 millions. Net Interest Income (NII)
increased by 11.07% from Rs.1230.000 millions to Rs. 1366.100 millions and other income increased by 92.78% from Rs.
300.400 millions to Rs. 579.100 millions. Total Income rose by 38.48% from Rs.
3512.300 millions to Rs.4863.800 millions.
As at 30th June 2007, the net worth of the Bank stood at Rs. 1,0178.900
millions and Capital Adequacy Ratio stood at 10.78 %.
Announcing the results, Managing Director, Mr. Vaughn Richtor said: “I
am happy to announce a significant improvement in the Bank’s performance. Our
focus on fee income, improving productivity and profitable growth is reflected
in the earnings for the quarter.”
Business
Highlights
Deposits grew by 25.80% from Rs. 13,1060.000 millions as at 30th June 2006
to Rs.16, 4870.000 millions as at 30th June 2007. Low cost deposits increased
by 19.72% from Rs. 3,7630.000 millions to Rs.4, 5050.000 millions. Advances
increased by 23.30% from Rs. 9,5780.000 millions as at 30th June 2006 to Rs.11,
8100.000 millions as at 30th June 2007. Total assets of the Bank registered a
growth of 21.77% from Rs.16,3950.000 millions to Rs. 19,9640.000 millions. The
credit deposit ratio stood at 71.63%.
The Gross NPA ratio improved from 4.09% as at 30 June 2006 to 2.52% as
at 30th June 2007. The Net NPA ratio improved from 1.78% to 0.84%, for the same
period.
Significant developments
The Bank opened 4 new branches and 13 new ATMs during the quarter. As of
30th June 2007 the Bank had 404 branches, 40 Extension Counters, 28 Satellite
Offices & 170 ATMs.
The product range was strengthened to meet the requirements of different
market segments. The Bank introduced new variants of Savings Account “Orange
Salary Account” for corporate employees and “Freedom Savings Account” with no
minimum balance requirements.
ING Vysya Bank along with Ricky Ponting launched the ‘Run Ricky Run’
initiative for under privileged children supported by ING Vysya Foundation. For
the next one year starting September 2007, the Bank would send an under
privileged child to school for every run Ricky Pointing would score in any “One
Day International” any where in the globe. ING Vysya Bank is working closely
with the Foundation to strengthen the cause of primary education as its humble
contribution to the society.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.26 |
|
|
1 |
Rs.81.15 |
|
Euro |
1 |
Rs.56.28 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|