ING Vysya Bank

Last updated

ING Vysya Bank
BSE: 531807
NSE: INGVYSYABK
IndustryBanking, financial services & insurance
Founded2002
(est. 1930 as Vysya Bank)
Fatemerged with Kotak Mahindra Bank
Headquarters Bangalore, India
Key people
Meleveetil Damodaran
(Chairman) [1]
Uday Sareen
(MD & CEO)
Revenue₹55.88 billion (US$700 million) [2]
₹6.13 billion (US$77 million) [2]
Total assets ₹548.36 billion (US$6.9 billion) [2]
Number of employees
Over 10,000 [3]

No. of Branches: 527 [3]

No. of ATMS: 405

No. of Extension counters: 10
Website ING Vysya Bank Kotak Bank & ING Vysya Merger

ING Vysya Bank was a privately owned Indian multinational bank based in Bangalore, with retail, wholesale, and private banking platforms formed from the 2002 purchase of an equity stake in Vysya Bank by the Dutch ING Group. This merger marked the first between an Indian bank and a foreign bank. [4] Prior to this transaction, Vysya Bank had a seven-year-old strategic alliance and shareholding arrangement with erstwhile Belgian bank Banque Bruxelles Lambert, which was also acquired by ING Group in 1998.

Contents

As of March 2013, ING Vysya was the seventh largest private sector bank in India with assets totalling ₹548.36 billion (US$6.9 billion) and operating a pan-India network of over 1,000 outlets, including 527 branches, which serviced over two million customers. [2] [5] ING Group, the highest-ranking institutional shareholder, held a 44% equity stake in ING Vysya Bank, followed by Aberdeen Asset Management, private equity firm ChrysCapital, Morgan Stanley, and Citigroup, respectively. [6]

ING Vysya Bank was ranked among top five Most Trusted Brands among private sector banks in India in the Economic Times Brand Equity – Neilsen survey 2011. [7] The bank had also been ranked the "Safest Banker" by the New Indian Express and among "Top 5 Most Trusted Private Sector Banks" by the Economic Times. [7]

On 20 November 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. [8] On 1 April 2015, the Reserve Bank of India approved the merger. On 15 May 2016 the whole merger process was completed. [9]

History

Early years

Established in 1930s, Vysya Bank was formally incorporated and favours the Arcot Mudaliar community in the city of Bangalore, Karnataka. The state of Karnataka is known as the "cradle of Indian banking" due to the region's bygone banking relationship with several European East India Companies during the 17th, 18th and 19th centuries. Seven of the country's leading banks (Canara Bank, Syndicate Bank, Corporation Bank, Vijaya Bank, Karnataka Bank, State Bank of Mysore, and ING Vysya Bank) were originally established in Karnataka. [10]

From the 1930s through the 1950s, Vysya Bank built its banking business organically in southern India. The bank concentrated on serving the Vysya community, a merchant/trading community operating across Karnataka and Andhra Pradesh. [4] In 1958, the bank was licensed by the Reserve Bank of India (RBI) to expand its banking operations nationwide. In 1972, the RBI upgraded Vysya Bank to a national B class bank.

In 1987, Vysya Bank established two independently operating subsidiaries providing equipment leasing and home mortgaging services (Vysya Bank Leasing Ltd and Vysya Bank Housing Finance Ltd, respectively). In 1994, Vysya Bank began marketing several innovative financial products to the fast-growing Indian middle-class segment (e.g. Vysprime and Vysinvest for NRIs, Vysbuy for consumer financing, Vysmobile for auto loan financing, and Vysequity for common equity financing).

Globalisation through Europe

In 1995, Vysya Bank entered into a long-term strategic alliance with Belgian bank Bank Bruxelles Lambert (BBL). Following this agreement, the Vysya Bank engaged KPMC Peat Marwick international investment banking joint venture (JV) with MC Securities (London), an investment banking subsidiary of BBL, was formally established.

In 1998, the ING Group acquired BBL and all its contractual and JV interests in Vysya Bank. In 1999, Vysya Bank joined the ING Group in co-marketing/distribution of life insurance products in India. Vysya Bank also acquired a 26% equity stake in the ING Asset Management Company. In 2000, Vysya Bank, ING Insurance, and the Damani Group formed a life insurance JV; this innovative collaboration marks the first bancassurance venture in India. [11]

Formal merger with the ING Group

In 2002, Vysya Bank's board of directors and the RBI approved Vysya Bank's formal merger with the ING Group. Under Indian law, this move allowed ING to increase its total equity holdings in Vysya Bank from 20% to 44%. Peter Alexander Smyth and Jacques PM Kemp were appointed to the board of the newly formed ING Vysya Bank.

ING Vysya Bank then appointed Bart Hellemans as CEO and managing director (MD) and G Mallikarjuna Rao as chairman of the board.

Post merger News

In 2003, Western Union, a leading global money transfer firm, tied up with ING Vysya for inbound money transfer services across India. ING Vysya then launched three new endowment products and an innovative retail savings account called Orange with facilities such as personal accident and free annual accident coverage. Japanese auto manufacturer Toyota then signed an agreement with ING Vysya for auto financing services. ING Vysya then inked a deal with fertilizer producers, Madras Fertiliser Ltd (MFL), to co-market/distribute life insurance products to farmers by employing the fertilizer company's broker-dealer network in the rural sector.

In 2005, ING Vysya Bank named Ned Swarup to the CEO and MD role. ING Vysya launched a cheque account product for mid-sized businesses. It also rolled-out its own proprietary online money transfer service.

In 2006, Vaughn Richtor stepped into the CEO and MD role for a fixed three-year term. Under Mr Richtor's leadership, ING Vysya went private and delisted from the Bangalore Stock Exchange. ING Vysya also forayed into private banking and portfolio management services.

In 2009, Shailendra Bhandari was appointed as CEO and MD. He was formerly the Head of Private Equity at Tata Capital, the Tata Group's private equity arm. [12] Having completed his three-year term in India, Vaughn Richtor was promoted to CEO of ING Banking Asia. [13]

In 2010, the Board of ING Vysya Bank nominated Mr Arun Thiagarajan to succeed Mr K.R. Ramamoorthy as chairman of the board. Mr Thiagarajan was selected for his vast international experience across strategic planning, economics and finance, technology and systems. [14]

As of January 2013, ING Group announced plans to divest itself of its Indian insurance and investment management businesses through the sale of its 26% interest in ING Vysya Life Insurance Company Ltd. to its joint venture partner Exide Industries Ltd. [15]

Current operations

ING Vysya Bank has competed in the banking/financial services and insurance markets for over 80 years and currently serves over two million Indian consumers. The bank markets an entire range of financial products and services, organised under three strategic lines of business: retail, private and wholesale banking. [16]

Retail banking

With 547 branches and 10 counters, 28 satellite offices and 470 ATM's nationwide, ING Vysya's retail operation offers cheque accounts, savings deposits/CD's, retail wealth management services, consumer loans, agricultural/rural banking and retail life insurance products. The bank has rapidly expanded its distribution footprint and has created a national brand presence through several innovative marketing campaigns. [17]

Private banking

ING Vysya's private bank operates on an advisory-driven model. Specialised market research remains the bank's emphasis for the introduction of new tailored products to serve the high-end private banking segment.

Corporate/wholesale banking

The wholesale banking business provides corporate clients in India a range of commercial, transactional and electronic banking products. The bank offers products including working capital finance, trade and transactional services, foreign exchange, term loans and cash management services. [18] The wholesale banking business comprises four business sub-segments and multiple product offerings. The business segments Corporate and Investment Banking, Emerging Corporates, Banking and Financial Institutions and financial markets. [19]

Agriculture and rural banking

Agriculture and Rural Banking deals with all business related to agriculture and allied activities, Gold Loans, loans to SHGs and lending to government-sponsored schemes. Working Capital and Agriculture Term Loans for poultry, dairy, cold storage units etc. are also being offered to cater diverse needs of the farming community. The bank has accelerated retail agricultural lending at a few places in North India and Central India especially in Rajasthan, Uttarakhand, Maharashtra, Gujarat and Madhya Pradesh. [19]

See also

Related Research Articles

<span class="mw-page-title-main">ING Group</span> Dutch multinational banking and financial services corporation

The ING Group is a Dutch multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking, wholesale banking, private banking, asset management, and insurance services. With total assets of US$967.8 billion, it is one of the biggest banks in the world, and consistently ranks among the largest banks globally.

<span class="mw-page-title-main">Financial services</span> Economic service provided by the finance industry

Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.

<span class="mw-page-title-main">ICICI Bank</span> Indian private sector bank

ICICI Bank Limited is an Indian multinational bank and financial services company headquartered in Mumbai with registered office in Vadodara. It offers a wide range of banking and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management.

Housing Development Finance Corporation was an Indian private sector mortgage lender based in Mumbai. It was the biggest housing finance company in India. It also had a presence in banking, life and general insurance, asset management, venture capital and deposits through its associate and subsidiary companies.

<span class="mw-page-title-main">Banking in India</span> Brief account of Indian banking

Modern banking in India originated in the mid of 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.

<span class="mw-page-title-main">Reliance Capital</span> Indian Financial Services company

Reliance Capital Limited is an Indian diversified financial services holding company promoted by Reliance Anil Dhirubhai Ambani Group. Reliance Capital, a constituent of Nifty Midcap 50 and MSCI Global Small Cap Index, is a part of the Reliance Group. It is amongst India's leading and most valuable financial services companies in the private sector. As on 31 March 2017, the net worth of the company stood at ₹16,548 crore, while its total assets as on the date stood at ₹82,209 crore. In Fortune India 500 list of 2018, Reliance Capital was ranked as the 77th largest corporation in India with 5th rank in 'Non-Banking Finance' category.

The IDBI Bank Limited is a development finance institution under the ownership of Life Insurance Corporation of India and Government of India. It was established in 1964 as Industrial Development Bank of India, a development finance institution, which provided financial services to industrial sector. In 2005, the institution was merged with its commercial division, IDBI Bank, forming the present-day banking entity and was categorised as "other development finance institution" category. Later in March 2019, Government of India asked Life Insurance Corporation to infuse capital in the bank due to high NPA and capital adequacy issues and also asked LIC to manage the bank to meet the regulatory norms. IDBI was put under Prompt corrective action of the RBI and on 10 March 2021 IDBI came out of the PCA. At present direct and indirect shareholding of Government of India in IDBI Bank is approximately 95%, which Government of India (GoI) vide its communication F.No. 8/2/2019-BO-II dated December 17, 2019, has clarified and directed all Central/State Government departments to consider IDBI Bank for allocation of Government Business. Many national institutes find their roots in IDBI like SIDBI, EXIM, National Stock Exchange of India, SEBI, National Securities Depository Limited.

Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management. It is India's third largest private sector bank by market capitalisation after HDFC Bank and ICICI Bank. As of 31 March 2023, the bank has a national footprint of 1,780 branches and 2,964 ATMs.

<span class="mw-page-title-main">Uday Kotak</span> Indian billionaire banker

Uday Suresh Kotak is an Indian banker and Founder of Kotak Mahindra Bank, where he currently serves as its non-executive director.

HDFC Bank Limited is an Indian Multinational banking and financial services company headquartered in Mumbai. It is India's largest private sector bank by assets and the world's fifth-largest bank by market capitalization as of August 2023, following its takeover of parent company HDFC. The Reserve Bank of India (RBI) has identified the HDFC Bank, State Bank of India, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs), which are often referred to as banks that are “too big to fail”.

<span class="mw-page-title-main">CIMB</span> Malaysian Universal Bank

CIMB Group Holdings Berhad is a Malaysian universal bank headquartered in Kuala Lumpur and operating in high growth economies in ASEAN. CIMB Group is an indigenous ASEAN investment bank. CIMB has a wide retail branch network with 1,080 branches across the region.

The state of Karnataka, particularly the coastal districts of Dakshina Kannada and Udupi, historically and collectively known as South Canara, is called the cradle of banking in India. This is because seven of the country's leading banks, Canara Bank, Syndicate Bank, Corporation Bank, Vijaya Bank, Karnataka Bank, Vysya Bank and the State Bank of Mysore originated from this state. The first five in the above list of banks were established in the districts of Udupi and Dakshina Kannada. These districts have one among the best distribution of banks in India - a branch for every 500 persons. Between 1880 and 1935, 22 banks were established in coastal Karnataka, nine of them in the city of Mangalore.

Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra. It is India's third largest private sector bank by assets and Fourth largest by Market capitalisation. It sells financial services to large and mid-size companies, SMEs and retail businesses.

<span class="mw-page-title-main">Exide Life Insurance</span> Indian life insurance company

Exide Life Insurance Company Limited was an Indian life insurance company. Exide Life Insurance distributed its products through multi-channels. The agency channel consisted of over 40,000 advisors who are attached to over 200 company offices across the country. The company had over 15 lakh customers and manages over INR 18,000 crores in assets. It had been operating since 2001 and was headquartered in Bangalore. It dealt with life insurance products, providing long-term protection and savings option.

Bandhan Bank Ltd. is a banking and financial services company, headquartered in Kolkata. Bandhan Bank is present in 35 out of 36 states and union territories of India, with 6,250 banking outlets and 3.26 crore customers. Having received the universal banking licence from the Reserve Bank of India, Bandhan Bank started operations on August 23, 2015, with 501 branches, 50 ATMs and 2,022 Banking Units (BUs). The Bank has mobilised deposits of ₹1,17,422 crore and its total advances stand at ₹1,15,940 crore as of December 31, 2023.

Small finance banks (SFB) are a type of niche banks in India. Banks with a SFB license can provide basic banking service of acceptance of deposits and lending. The aim behind these is to provide financial inclusion to sections of the economy not being served by other banks, such as small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

<span class="mw-page-title-main">ING Australia</span>

ING Bank (Australia) Limited is a direct bank operating in Australia. It is a wholly owned subsidiary of the multinational Dutch bank, ING Group. ING in Australia holds an Australian banking licence as a foreign subsidiary company.

<span class="mw-page-title-main">IDFC First Bank</span> Indian private sector bank

IDFC FIRST Bank is an Indian private sector bank formed by the merger of the banking arm of Infrastructure Development Finance Company and Capital First, an Indian non-bank financial institution.

References

  1. ↑ "bod".
  2. 1 2 3 4 http://www.ingvysyabank.com/pdf%27s/Financial%20Results-%20Mar%2013.pdf Archived 14 May 2014 at the Wayback Machine [ bare URL PDF ]
  3. 1 2 ING Vysya - ING Vysya Bank - Personal Banking Archived 6 August 2013 at the Wayback Machine . ING Vysya Bank. Retrieved on 6 December 2013.
  4. 1 2 "Archives Top and Latest News".
  5. ↑ ChrysCapital. ChrysCapital. Retrieved on 6 December 2013.
  6. ↑ http://www.ingvysyabank.com/pdf%27s/INGVysyaBank_MARCH2012.pdf [ bare URL PDF ]
  7. 1 2 ING Vysya Bank was ranked among top 5 Most Trusted Brands among private sector banks in India in the Economic Times Brand Equity – Neilsen survey 2011. ndtv.com. Retrieved on 27 March 2022.
  8. ↑ Ninan, Oommen a. (20 November 2014). "ING Vysya Bank to merge with Kotak Mahindra Bank". The Hindu. thehindu.com. Retrieved 21 November 2014.
  9. ↑ "Kotak Mahindra, ING Vysya extend gains after RBI approves amalgamation". Business Standard . 6 April 2015. Retrieved 12 April 2015.
  10. ↑ Ravi Sharma. "Building on a strong base". Online Webpage of The Frontline, Volume 22 - Issue 21, 8 - 21 Oct. 2005. 2005, Frontline
  11. ↑ ING, Vysya, Damani in pact for life venture. Thehindubusinessline.in (29 November 2000). Retrieved on 6 December 2013.
  12. ↑ "ING in Asia Pacific | Press Room | Senior Management Biographies | Banking | Shailendra Bhandari". Archived from the original on 26 October 2011. Retrieved 15 October 2011.
  13. ↑ "ING in Asia Pacific | Press Room | Senior Management Biographies | Banking | Vaughn Richtor". Archived from the original on 23 October 2011. Retrieved 15 October 2011.
  14. ↑ Arun Thiagarajan appointed Chairman of ING Vysya Bank. Business Standard (16 August 2010). Retrieved on 6 December 2013.
  15. ↑ to sell its interest in ING Vysya Life Insurance. ING. Retrieved on 6 December 2013.
  16. ↑ "Company Overview". ingvysyabank.com. Archived from the original on 6 August 2013. Retrieved 27 February 2011.
  17. ↑ "ING About Us". ingvysyabank.com. Archived from the original on 6 August 2013. Retrieved 30 September 2011.
  18. ↑ "ING Vysya Bank". ingvysyabank.com. Retrieved 9 October 2012.
  19. 1 2 "ING Annual Report" (PDF). ingvysyabank.com. Retrieved 9 October 2012.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.