EXECUTIVE SUMMARY

TITLE OF THE PROJECT:

A Study of Assistan ! to Minin" S! to#s $y I%& VYSYA 'an( Ltd) in '!**a#y +ist#i ts,-

I%TRO+UCTIO%
The banking industry has undergone tremendous changes in the past 100 years also and our country is no exception to it. Even in our country the development of the banks is characterized in different phases and each phase is distinct from the other. The banks have played an important role in the economic development of the society at large and the country in particular. In the modern days the banks have taken an important position in the economic development and such is the position that the banks have become the indicators of the growth and development of any country s economy. In case of any crises! which may happen in the econo"financial field first casually! are the banks because of the intimate association with the development and the very nature of the asks associated with the nature of financing and banking. #ellary district forms one of the important worthier districts of $arnataka and is situated almost in the center of the state. The geographical extent of #ellary district is 10%&' kms the district is elongated in a ()"*E direction the greatest length being 1+, km. The district is bounded in the worth of -aichur district! in the west by .harwar district and /hitradurga district in the (outh. 0n the eastern border of the district is bound by 1nanthapur and $uruwol districts of 1ndhra 2radesh. The district extends over an area of 3!+3+ s4.km and comprises + taluks viz.! #ellary (audur! 5ospet! (iruguppa! 5agaribommavahalli! $udligi! 5arapanhalli and hadagalli.

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The district is well served by a good network of roads. The important rail heads catering to the iron the movement at present are #ellary! Torangallu! 2apinayakanahalli! 5ospet! (wamyhalli and 6ashwanthanagar.

Min!#a* #!sou# !s:

The important mineral resources of #ellary district are7 18 9etallic7 Iron ore! manganese ore! red oxide! gold copper and lead. %8 *on"9etallic7 1ndalusite! asbestos! corundum clay! dolomite gypsum! limestone! lime kaukar moulding sand! 4uartz! soapstone! red ochre. '8 9inor 9inerals7 0rnamental pink and grey granite! granite building stone and sand. The iron and manganese ores form the principal mineral resources of the district.

S o0! fo# %!1 Indust#i!s

1 review of the mineral resources of the district suggests the scope for the establishment and the development of the following industries7 18 :arge to medium scale steel plants %8 9ini steel plants '8 ;erromanganese plants <8 ;errosilicon plants =8 2aint industry based on red oxide &8 >lass factory ,8 (tone polishing units +8 9anufacture of soil conditioners using clay and $aulcae

O$2! ti3!s of t4! Study

1. (tarting with the brief principles nature and the significance of the management in the banks. %. ?nderstanding the moralities and formalities involved in financing to mining sectors.

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'. ?nderstanding the performance of mining sectors undertaken by a lending institution @IA#: in particulars8 addressing both the 4uantitative and 4ualitative aspects. <. (tudying the process of identifying problem mining accounts done by (9E department. =. /omparative study of the assistance given by #anks.

S o0! of t4! Study

The proBect on C1 (tudy of 1ssistance to 9ining (ectors by I*> A6(61 #ank :td.! in #ellary .istrictD! involves vast coverage of issues and components. To study two proBect in it s entirely involves more time expertise and in E depth knowledge of banking functions which should not be expected at this learning stage. Thus with the limited knowledge! sincere efforts have been made to evaluate the key elements of each type of approach taken and discussed how these processes may! overtime! can evolve into a well"defined range of sound practices. 18 (cope of the study covers the process assistance to mining sectors. %8 It also covers the performance of mining sectors assisted by the banks. '8 It covers a comprehensive study of the credit proposals received and approved by the bank.

R!s!a# 4 M!t4odo*o"y:
18 This report is prepared with the help of primary and secondary date. %8 Extensive study of literature on building strategy! lending decisions and working capital finance to develop a broad framework. '8 .iscussion with the key personnel in (9E and also from each of the (#? to get a real fee of how the financing is done and to understand the nature and complexity of each of these proposals. <8 .iscussions with the other leading #anks in #ellary district. =8 .iscussions with the key personnel of .I/ and .irectors of 9ines and >eology .epartment in #angalore F #ellary. &8 #y preparing 4uestionnaires and survey.

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Li/itations of t4! Study

18 :imitation of knowledge regarding building operations. 1s this was the first time! I was exposed to practical banking process scenarioG it was not possible to know all the issues and information involved in the assistance to mining sectors. %8 :imitation to gather all the relevant information7 1s a trainee in the bank it was not possible to access all the important documents and circulated of the bank as they are confidential and used not be disclosed to the outsiders. 1s result the bank specific information could not be collected.

R! o//!ndations:
18 In the process of assistance to mining sectors all the branchesHoffices has to play an active role by sending monthly and 4uarterly report within the stipulated time. %8 The bank has to go for securitization of mining accounts! which are not performing well. '8 The bank has to carefully analyze the individual sectors for which they are providing loans.

Con *usions:
In this study! an effort is made to understand the process of financing to mining sectors carried on by different banks in comparison with I*> A6(61 #ank :td.

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A &ATE5AY TO I%+IA% 'A%6I%&

0ne of the classical economic functions of the banking industry that has remained virtually unchanged over the centuries is lending. 5owever there have been considerable changes in the institutional structure and the economic environment brought about by heightened competition and technological changes. 0n the one hand! competition has had considerable adverse impact on the margins! which lenders have enBoyed! but on the other hand technology has to some extent reduced the cost of delivery of various products and services. In the Indian scenario the first few decades of independent India witnessed regulated banking environment with administered interest rate structure! which was inevitable in a resources scarce scenario. 5owever with the situation radically changing for the better in the second half of the past decade most of the regulatory prescriptions have either been withdrawn or considerably diluted. )ith further liberalization on the horizon! as the country moves towards greater integration with the global economy the competitive environment that banks and financial intermediaries are functioning can be expected to become more severe. The days ahead can be expected to brink further innovations in the area of financial intermediation. #ank is a financial institution that borrows money from the public and lends money to the public for productive purposes. The Indian #anking -egulation 1ct of 13<3 defines the term #anking /ompany as C1ny company which transacts banking business in IndiaD and the term banking as C1ccepting for the purpose of lending all investment of deposits! of money from the public! repayable on demand or otherwise and withdrawal by che4ue! draft or otherwise.D #anks play important role in economic development of a country! like #anks mobilize the small savings of the people and make them available for productive purposes. 2romotes the habit of savings among the people thereby offering attractive rates of interests on their deposits.

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2rovides safety and security to the surplus money of the depositors and as well provides a convenient and economical method of payment. #anks provide convenient means of transfer of fund from one place to another. 5elps the movement of capital from regions where it is not very useful to regions where it can be more useful. #anks advances exposure in trade and commerce! industry and agriculture by knowing their financial re4uirements and prospects. #ank acts as an intermediary between the depositors and the investors. #ank

also acts as mediator between exporter and importer who does foreign trades. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large does of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams @i.e.! borrowing and lending8. The banking in India is highly fragmented with '0 banking units contributing to almost =0I of deposits and &0I of advances. Indian nationalized banks @banks owned by the government8 continue to be the maBor lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized interest nationalizedG private banks and specialized banking institutions. The growing complexity of banking and the emergence of new loan products have changed the risk profile of banks and as a result regulatory authorities have stepped in to maintain the confidence level of the public in the financial system by calling for greater transparency and also by imposition of capital ade4uacy norms and provisioning re4uirements. In the days when lending was a simple operation! undertaken by well experienced bankers and that too in a stable! predictable and familiar environment to a small community of known clientele the lack of a well documented credit policy was not considered a handicap. 9oreover there was a feeling that if such a document were to be put in place then it could bring about some inflexibility in taking lending decisions. 5owever! when operation through a large network of branches and people it is necessary to have commonality of thinking and approach SIT.P&+MS) Tu/(u# &

and a credit policy document provides the basis for this. The conse4uences of the excesses of the era of unbridled credit expansion were there for all to see. (ome well known banking institutions disappeared under a mountain of ill"advised credit exposure and some very well known names considered stalwarts in global banking came close to disappearing. 1 well"documented credit policy has therefore been now recognized as an important re4uirement for any lending institution in building a loan book of acceptable risk profile! which will provide liable revenue stream.

T4! St#u tu#! of Indian 'an(in"

The Indian banking industry has -eserve #ank of India as its regulatory authority. This is a mix of the public sector! private sector! co"operative banks and foreign banks. The private sector banks are again split interest old banks and new banks.

St#u tu#! of Indian 'an(in"

R!s!#3! 'an( of India 9C!nt#a* 'an(: S 4!du*! 'an(s

S 4!du*!d Co//!# ia* 'an(s 'an(s

S 4!du*!d Co.o0!#ati3! 'an(s

Pu$*i S! to# 'an(s

P#i3at! S! to# 'an(s

Fo#!i"n 'an(s

R!"iona* Ru#a* 'an(

%ationa*i8!d 'an(s

S'I 7 its Asso iat!s O*d P#i3at! S! to# 'an(s %!1 P#i3at! S! to# 'an(s

S 4!du*!d U#$an Co.o0!#ati3!

'an(s

S 4!du*!d Stat! Co.O0!#ati3! 'an(s

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COMPA%Y PROFILE
Histo#y and 0#o"#!ss:
9ysore 1rya Aysya 9ahasabha! passed the resolution in the third Aysya conference! held at #angalore in the year 13%+. CThe Aysya #ank :imitedD! was incorporated on %3th 9arch 13'0. The #ank was registered with an authorized capital of -s. %0 lakhs and secured the certificate of commencement of business on %<th July 13'0. (ri 9argapuram chengaiah chetty founded chairman headed the first board of directors! during the 13=0 s! travancore national F 4uilon bank limited F Exchange #ank of India F 1frica failed F there was #ank continued to enBoy the /onfidence of public.11 th in 13&0"3=! small banks were forced to merge with other banks but the Aysya #ank continue to be safe at that time also. Thus the #ank had a steady forward walk in its path of progress. The #ank achieved considerable progress between the years 13&3 F 13+0 with an increase in the number of branches from '& to %%+.It has celebrated its >olden Bubilee and diamond Bubilee in 1330.1T that time the #ank had the paid of capital and reserves which amounted to -s. 1&%1.%, :akhs and deposit and advances stood at -s.+=03<.'3 :akhs and -s.<=+<,.=3 :akhs respectively.

A$out Vysya 'an(:

Aysya #ank has a history of operating from #angalore for over ,= years. It has 1.= million customers and <+0 branches in India.Aysya #ank with its strong brand nameG reorganization has pioneered a stream of customers! focused products and services. The bank was among the first private sector banks to receive the approval from the Indian authorities to participate in an insurance Boint venture. I*> Aysya life! the life insurance Boint venture with I*>! was established in 1ug %001.

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A$out I%& Co/0any:

I*> s parent company! 19(TE-.19"based I*> group *A! originated in 1330 from the merge between the *ationale"*etherland and *9# post bank group. /ontinuing roots and ambitious the newly formed company itself CI*TE- *1TI0*1:E *ET5E-:1*. >-0?2D. 9arket circles =00< abbreviated the name to I*>. The company later followed suit by changing the statutory name to CI*> >-0?2 *AD. Today! I*> #1*$ is one of the largest integrated financial services organizations in the world with more than <=0 billion of assets under management. I*> group is K 10 in ;orbes magazine CT5E )0-:. (?2E- =0Dltd @July %%! %00%8. The list is compiled by aggregating sales assets! profits and market value @as of =H01H0%8! I*> ranks K %0 in ;ortune magazine s %00% >lobal =00 list. The fortune list is based on revenues. I*> also has the largest independent brokerHdealer network in the financial services industry with approximately 10!=00 registered representatives in seven brokerHdealers. Its primary distribution channel is through the independent financial adviser channel. 5owever! I*> also distributes its products thoroughly registered -epresentatives! independent and career insurance agents other brokerHdealers! stock brokerage firms! banks Fdirect sales channels. The main obBective has been made by I*> #ank holding *.A to participate in manage! finance! flourish personal or real security for the obligations of F provide services to others enterprises F institutions of any kind to conduct banking business in the widest secure! including insurance brokerage! to ac4uire! build F operate real estate F to engage in any activity. This may be related or conductive to the foregoing. 1nother specialization is I*> .irect! an Internet and direct marketing concept with which I*> is rapidly winning retail market share in mature markets. ;inally! I*> distinguishes itself internationally as a provider of Lemployee benefits ! i.e.! arrangements of non"wage benefits! such as pension plans for companies and their employees.

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A$out I%& in India:

In India I*> is active in banking! insurance F asset management .The whole sale #anking arm under I*> bank *A offers lending F secured finance products in F 1 advisory F capital market origination products to corporate F institutional clients I*> is active in insurance through its Boint venture with Aysya bank called I*> Aysya life. I*> ( 1sset management activities in India include private banking mutual funds sold through I*> savings trust F the venture capital activities of banking private e4uity partners.

T4! '!"innin":
0riginally incorporated as the Aysya bank ltd on 9arch %3 th 13'0 under the 9ysore /ompany s regulation 131, with its registered office at <+3! 1venue road! #angalore city. #angalore has a pride of place for having the first branch inception in the year 13'<. )ith successive years of pal nonage F constantly setting new standards in banking! I*> Aysya #ank has many credits to its account. >iven below milestones! reflecting the upward growth of this institution. I*> is committed for developing its banking! insurance F asset management business in India F has identified Aysya #ank as an important vehicle in furthering the growth strategy. Aysya #ank as one of the largest private banking in India! provides I*> with a strong banking platform F the means to distribute its financial services products more widely to Indian retail customers small and medium"sized enterprises and institutional clients I*> Aysya #ank have high concentration of loan in certain sectors. 1s of sept '0! %00= I*> Aysya had entered net advances announces amounting to -s. 30!+0=!3%0 to several industrial sectors in India. R!"ist!#!d 7 Co#0o#at! offi ! 0riginally Aysya #ank was situated at St-Ma#(;s Road! #angalore! which has now been changed to I%& Vysya 'an( Li/it!d I%& Vysya Hous! No 22, M.G. Road 'an"a*o#! . <=> >>?

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10

Aysya bank is the premier bank among the private sector banks of India! 5aving established benchmark in many areas in the national banking stream! the bank goes global crossing the frontiers F oceans here are the milestones of the bank over the long years of the services YEARS 13'0 MILESTO%ES Aysya #ank incorporated in #angalore.

13'< 13<+ 13&+

Aentures out with a branch! outside #angalore Aysya #ank became a scheduled #ank /ommenced a training school.

13,& 13+0 13+= 13+, 13++ 13+3 1330 1331 133% 133' 133&

/ommenced ;orex business as an authorized dealer. The Training (chool was upgraded to Training /ollege /elebrated >olden Jubilee of the bank #ecame one of the largest 2rivate (ector #ank ;irst private sector bank to launch leasing F merchant banking subsidiary ;irst private sector bank to launch credit cards pioneered the concept of domestic 1ffiliation of cards (et a record in Indian banking industry by garnering maximum home loans accounts for the national housing bank ;irst private sector bank to launch a housing finance subsidiary :aunched (E#I approved portfolio managed service .eposits cross -s.1000 crores #ranch network crossed three hundred mark (igns (trategic 1lliance with ##:! #elgium. Two *ational 1wards by >em F Jewellery Export promotion /ouncil for excellent performance in Export

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2romotion. 133+ /ash 9anagement (ervices! F commissioning of A(1T >olden 2eacock 1ward " for the best 5- 2ractices by Institute of .irectors. -ated as #est .omestic #ank in India by >lobal ;inance @International ;inancial Journal " June 133+8 -#I clears setting up of I*> Aysya :ife Insurance /ompany. I*>"Aysya commences life insurance business I*> takes over the 9anagement of the #ank from 0ctober , th %00%. -#I clears the new name of the #ank as I*> Aysya #ank :td. The #ank launches a range of products F services like the Ays Ayapar 2lus! the range of loan schemes for traders! 1T9 services! (marter serv! the account that comes with a personal assistant service! (ave F (ecure! an account that provides accident hospitalization and insurance cover! (ambandh! the International .ebit /ard and the net banking service Introduced customer friendly products like 0range (avings! orange /urrent and 2rotected 5ome :oans.

%000 %001 %00%

%00'

T4! o#i"in of I%& &#ou0

0n the other hand! I*> group originated in 1330 from the merger between *ationale " *ederland *A the largest .utch Insurance /ompany and *9# 2ost #ank >roup *A. /ombining roots and ambitions! the newly formed company called CInternational *ederland >roupD. 9arket circles soon abbreviated the name to I"*">. The company followed suit by changing the statutory name to CI*> >roup *.A.D.

P#ofi*!
I*> has gained recognition for its integrated approach of banking! insurance and asset management. ;urthermore! the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies! such as $orea! Taiwan! 5ungary! 2oland! 9exico and /hile. 1nother specialization is I*> .irect! an Internet and direct marketing concept with which I*> is rapidly winning retail market share in mature markets. ;inally! I*> distinguishes itself internationally as a provider of Lemployee benefits ! i.e. arrangements of non"wage benefits! such as pension plans for companies and their employees. SIT.P&+MS) Tu/(u# 1%

C4an"! of %a/!
In terms of the approval of the shareholders accorded at the ,1 st 1nnual >eneral 9eeting held of %1st (eptember %00% and the approval of -eserve #ank of India and the /entral >overnment @-egistrar of /ompanies8 in this regard! the name of the #ank was changed from the Aysya #ank :imited to I*> Aysya #ank :td.! effective ,th .ecember %00%.

E@uity Pa#ti i0ation

The year %00%"0' has been another uni4ue year for the bank. ;or the first time in the history of banking industry in India! I*>! the .utch banking and insurance group! increased its holding in the #ank from %0I to <'.3'I. /onse4uently! with the approval of shareholders! the name of the #ank was changed to I*> Aysya #ank! reflecting the strengths of I*> >roup and the heritage of Aysya #ank. 0ne of the benefits for the #ank is that the #ank has been able to draw on the expertise of I*> in key areas of retail banking credit and market risk management.

S4a#! Ho*din" Patt!#n

A/ount 2romoters holding I*> >roup *on"2romotes 5olding 0thers TOTAL &'!'1% 33!&+!1%0 ,=!&3!<+& =0!'&!+,' A)A=)B>)?<< P!# !nta"! 0.'0 <'.3' ''.'& %%.<1 ?>>->>C

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THE MA%A&EME%T TEAM

'a#t H!**!/ans V-Ra"unat4an J!an Louis L!/ai#! V-Ra3i 6u/a# S4antanu &4os4) 6-'-V- %a#ayan S-Mu#a*id4a# Su#!s4 C4and#a %anda '-As4o( Rao St!3!n 'i**it Suni* &u*ati %!d S1a#u0) J-M-P#asad) S-Via1anat4an 6-S-R- An2an!yu*u T-V-'a*a2i C4i!f ED! uti3! Offi !# P#!sid!nt S!nio# ED! uti3! Vi ! P#!sid!nt ED! uti3! Vi ! P#!sid!nt) 5ead"Treasury ED! uti3! Vi ! P#!sid!nt) -etail 2roducts and marketing ED! uti3! Vi ! P#!sid!nt /hief ;inancial 0fficer ED! uti3! Vi ! P#!sid!nt (pecial 2roBects H Integration ED! uti3! Vi ! P#!sid!nt -egional /E0"1.2. ED! uti3! Vi ! P#!sid!nt 5ead"1udit F Inspection! /redit 1udit ED! uti3! Vi ! P#!sid!nt 5ead"#anc assurance! (ubsidiaries F 2vt #anking ED! uti3! Vi ! P#!sid!nt 5ead"/orporate ;inance and Investment #anking ED! uti3! Vi ! P#!sid!nt /hief /redit 0fficer ED! uti3! Vi ! P#!sid!nt) H!ad.HR H!ad.E/!#"in" Co#0o#at!s H!ad.SME H!ad.AS'

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Vision and /ission of Vysya $an(: )e! at Aysya #ank will provide banking solutions with new ideas to become the most preferred bank for all our customers! including the mid"income households and small F medium business! ensuring lasting relationshipD. Mission Stat!/!nt of I%&: )e strive! to deliver our financial products and service in the way our customers expect. )ith exemplary service! maximum convenience and at competitive rates. This is reflected in our mission statement7 to set the standard in the helping our customers manage their financial future. Mission Stat!/!nts: To set the standard in helping our customers manage their financial future.

OUR COMPETITIVE STRE%&THS

.espite the competitiveness of the Indian banking and financial services sector"both from foreign and domestic players E we have inherent strengths that are expected to provide a sustainable advantage over the long"term. )e have II*> #ank *.A. as the ;oreign 2romoter! which in turn is a 100I subsidiary of I*> >roep.*.A. The world s fourth largest ;inancial (ervices group and the world s second largest life insurance provider @(ource7 ;ortune >lobal July %00<8. )ith ,< years of experience in the Indian banking segment and with I*> >roup s active participation in managing the affairs of the #ank! we are uni4uely positioned as an LIndian made ;oreign #ank. 0ur -etail #anking business is geographically focused in the (outh but also targets a number of other cities. /urrently we have '+& outlets in the (outh India and have a presence in most (outhern areas. This provides an effective delivery model for our products and services that is focused and concentrated.

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1=

Through our subsidiary. IA;(: and in association with IA: and I*> Aysya 9utual ;und! we offer to customers the full breadth of financial services and financial planning products under a common umbrella brand! I*> Aysya.

)e have been traditionally a Aysya community focused bank and are strong in the traders segment which forms a reddy based for our (mall and 9edium Enterprises strategy. 0ur network! product range and processes supports our (9E business.

OUR STRATE&Y 0ur obBective is to build a recognizable position as a premier banking and other financial services products provider to retail and wholesale customers. T4! (!y !*!/!nts of ou# $usin!ss st#at!"y a#! to: ;ully leverage the synergies @including support and commitment8 available from I*>. ;ocus on growth opportunities in the -etail banking businessG (trengthen )holesale #anking operationsG Expand retail distribution capabilitiesG and ?se of technology for competitive advantage Fo# usto/!#s) is a fi#st. *ass s!#3i ! 0#o3id!#) because exemplary customer service differentiates successful companies. Fo# s4a#!4o*d!#s) off!# a #!tu#n on s4a#!s 4i"4!# t4an ou# 0!!#s t4#ou"4 a clear focus on value creation. 9anaging for a value at I*> means optimizing the allocation of capital and focusing on superior execution in all our activities. Fo# !/0*oy!!s) $! a fantasti ) o/0any to 1o#( fo#) where our 2eople feel

empowered and accountable to make a difference to their customers.

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I%&ES $usin!ss *in!s:

In %00< I*> introduced a new structure of six business lines. 1 clear /lient focus and strong business logic are the key elements in this structure-

Su0!#3iso#y 'oa#d

ED! uti3! 'oa#d

Insurance 1mericas

Insurance Europe

Insurance 1siaHpacific

)holesale banking

-etail banking

I*> direct

T4! 3ision stat!/!nt of t4! I%& Vysya $an( I*> Aysya #ank will be an entrepreneurial integrated financial services institution where innovation F transformation are the ways of life. I%& Vysya 'an( #!*i!s on t4! fa t t4at: It s not sufficient to be Lself focused ! Lchannel focused or Ltechnology focused . /ustomers really don t care about these things. 1ll they care about be their needs. ?nderstanding of the customer re4uirement is the key to better service. I%& Vysya $an( 0#odu ts 7 t4! #!*at!d S'U d!tai*s: I*> Aysya bank has wide range of products under the various strategic business units! which do the marketing part of the work to the bank. The investments of the bank are handled by a separate department i.e. by the treasury department. 1 brief profile of the (#? s a he I*> Aysya #ank is given below.

?- R!tai* 'an(in":
These (#? s mainly handle the day"to"day banking activities like deposits! retail assets like car loans! two wheeler loans! housing loans. 2ersonal loans and also the SIT.P&+MS) Tu/(u# 1,

educational loans to the meritorious students pursuing to the professional courses. There are various investment products like mutual funds 1dvisory services! >ovt securities @>. (ecs8 retail banking services. These (#? s even doing the value added services like maintaining the operations of the sambandu international debit card. /itibank Aysya #ank credit card! smart seen retail banking service! bill pay retail banking services! mi"bank retail banking services! Ays .2".emat account retail banking services! advance against .emat securities retail banking services! Ays prime FAys invest retail banking services F)estern ?nion 9oney Transfer.

A- A"#i u*tu#! 7 So ia* 'an(in":

These units have the products to suit the Indian farmers. The agriculture is one of the priority sectors to the bank. The products available with this unit are farming loan! crop loan! poultry farming loan! advances for purchasing the agri e4uipments and vehicles! godown construction loans! .airy farming loans! horticulture and plantation development loans etc. the bank offers an uni4ue credit card facility to the farmers which involve providing revolving cash credit limit to meet the short"term agriculture and working capital re4uirement of farmers and agricultural traders. The scheme is called as C$isan /redit /ardD where in the farmers! who are owner cultivators and engaged in allied activities whose financial re4uirement are more -s. =000H" can get into the scheme and they will be provided with the passbook and card. There will be no restrictions on the withdrawals and repayments.

F- Co#0o#at! Finan !:
The corporate finance deals with the large corporate where in the annual turnover is in excess of -s. <00 crores of belong to maBorH prominent industrial groups because of shareholding and Hor management control. )here the clients would normally avail of total facilities from the bank in excess of -s. = crores.

G- S/a** 7 M!diu/ Ent!#0#is!s 7E/!#"in" Co#0o#at!:

These two (#? s are mainly dealing with the corporates and the big partnership firms which have the total turnover from -s. =0 crores to <00 crores. These (#? s have the products which suit the (mall and 9edium scale traders and the corporates. These (#? s provide working capital loans! :/ limits and the bank guarantees and provide the bill discounting SIT.P&+MS) Tu/(u# 1+

facility and Ays Aidalaya scheme! a uni4ue scheme to finance the educational institutions for building constructions! hostels accommodation and ac4uiring the other institutional products like computers! sports e4uipments! furniture! library books etc. the Ays contractors scheme is exclusively for the contractors. The scheme offers working capital limits @;und F *o fund8 and term loans with a maximum exposure of -s. 10 crores per customer. 1ll these debts have their own independent appraisal process and the /-- ratings will be assigned and the pricing will be decided by calculating the facility risk rating.

<- T#!asu#y +!0a#t/!nt:

The dealings here include transactions in money market! capital market! forex market derivatives and structured products and the like! while the bank s books deals with lending by the treasury books deal with the investment activities. It is a part of assets and liabilities management @1I98 and portfolio management. 1ny investment decision by the treasury department is guided by the -#I s guideline and the banks credit policy. The appraisal process involves assessing the market performance of the credit instrument as risk and returns associated with them and the extent of li4uidity. The prime criterion is that the debt instrument or other securities have to be listed on the wholesale debt market @).T8. The reports furnished by well known credit rating agencies and other market data from the credit appraisal. It also involves preparations of the risk spreads and computation of /-- as is the case with (9E of E/ to arrive at the credit risk score. Therefore the strategy of the treasury dept would be to study the market indicators and making the decisions on dealing strategies each day based on the previous day s market! expected market movements! bank s business re4uirements! exposure limits set by the management etc. I%& 'USI%ESS PRI%CIPLES: 1s global provider of financial products and services! I*> plays an important role in society. In order to fulfill this role it needs to maintain the confidence of its customers! shareholders! employees and other stakeholders by acting with professionalism and integrity.

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I*> group attaches paramount importance to upholding its reputation and the I*> business principles play an important role in this respect. I*> expects the highest levels of integrity from its employees! regardless of their position in the organization. T4! I%& $usin!ss 0#in i0*!s 1!#! fi#st int#odu !d in ?BBB- T4!y 1!#! u0dat!d in A>>GRESPO%SI'ILITIES: The business principles apply to the whole of I*> group! its subsidiaries and business units and to every employee. It is the responsibility of all those in authority at I*> to ensure that these principles are fully communicated to all present and future staff. They must also ensure that these are strictly observed. The members of the exclusive board and all @general8 managers are responsible for applying the business principles with in their areas of responsibility. The executive board will receive regular reports! including an annual review! on the effective operation of the business principles.

Ou# sta(!4o*d!#s
/ustomers (hareholders Employees #usiness partners (ociety at large I*> /urrently owns a <'3.1 shareholding in Aysya #ank through its subsidiary ##I. I*> #elieves it will be able to work more closely with management to grow Aysya #anks business potential to the mutual benefit of its customers! shareholders and staff.

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CORPORATE STATEME%T
C)e! at I*> A6(61 #1*$ will provide banking solutions with new ideas to become the most preferred for the customers including the mid"income households and small and medium business! ensuring lasting relationship.D

T4! 'an(Es &oa*

2osition the bank as strong -etail #ank (trengthen competitiveness in business and Trade ;inance in stronghold geographical areas. (erve and support /orporate (egment with efficient cash management services. Exploit synergies in investment F Treasury 0perations by integrating domestic and ;orex treasury desks. 2rovide Technology thrust for superior services and cost effectives. 0ffer a broad spectrum of financial products including Insurance.

T4! n!1 id!ntity

The immediate benefit to I*> Aysya #ank ltd is the pride of having become a member of global financial services giant! with an asset base of ,,3 billion euros @-s.<%0, thousand crores8! operating net profit of <.0< billion euros @-s.%1.+% thousand crores8 as of '1H1%H0'. ;urther! the presence of the group in =0 countries! employing over 1! 1=!000 people! serving over &0 million customers across the globe! only multiplies the credibility! not only across the country but also across the globe. The pride of this global identity! the back up of a financial power house and the status of being the first Indian International bank! would also greatly enhance productivity! profitability resulting in improved performance for the bank to translate into higher returns! to all the stake holders. The primary obBective of I*> Aysya #ank is to provide financial products and services to its clients! which consists of corporate and non"corporate entities. 2roviding the financial products and services to the client may entail taking up of C#!dit Ris( on the client or a third

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party! for which the #ank is financially compensated through earnings in the form of interest! fees! commission etc.

CORPORATE O'JECTIVES A%+ &OALS:

1. To build up 4uality loan asset portfolio7 %. To build stable retail low cost term deposit '. To build volume growth in low cost deposit base7 <. To reduce cost of deposits7 =. To step up net interest margin @*I987 &. To increase non"interest income7 /redit related services7 *on /redit related services7 Investment and forex operations7 .omestic treasury7 ,. To reduce the cash holding and bank balances7 +. To reduce operating cost7 3. ;ocus on recovery7 10. To increase >ross profit and the *et profit7 11. To absorb technology at a faster pace7 1%. 2repare for 6%$7
1'. Innovative products and services7

1<. Increase customer satisfaction7 1=. .evelop sales culture7 1&. Improve operational efficiency7 :oan origination process. /redit Investigation. :oan processing. .ecision"making. :oan documentation.
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 :oan review! monitoring and collection efficiency. /redit information system. 5ouse keeping! etc. 1,. ;ocus on skill development7 1+. To maintain personal integrity7 /ommitment to the 0rganization. /ompetence in the Bob. /reditability in the conduct.
So ia* A ti3iti!s The bank involved about <00 school children and about as many employees in cleaning up the /ubbon 2ark in #angalore and installing =0 garbage bins there! as part of a civic awareness drive. The bank also provided furniture for a few classrooms to a village school near #angalore as part of its social activities! apart sponsoring various other charitable causes and events. The bank! in association with help 1ge India! conducted *ostalgia Muiz competition for senior citizens during 9ay %00% at #angalore. #rainwave 4uiz competition was conducted during *ovember %00% at #angalore for the school students. 1 blood donation camp was organized at #angalore wherein 11< persons donated blood. The bank also provided the use of some its branches in different cities for promoting the art of up"coming artists and under"wrote some of the promotional expenses towards! the cause. 2ainting exhibitions and LIkebana @the Japanese art of arranging flowers8 exhibitions were held at several branches of the bank during the year. .istribution of free helmets for the public in promotion of safety of the riders.

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P!#fo#/an ! o3!# t4! d! ad!s In terms of pure numbers! the performance over the decades can better be appreciated from the following table7 Ta$*! ?:
Comparative Figures Rs. in millions

Y!a# 13<0 13=0 13&0 13,0 13+0 1330 %000 %001 %00% %00' %00< %00=

%!t 1o#t4 0.001 1.<0 1.&0 '.00 11.=0 1&%.10 =300.00 &=%,.00 &+&'.%< ,0&,.30 ,<,'.%0 ,03'.33

+!0osits 0.<00 =.'0 %0.10 31.=0 1<1<.'0 +=03.<0 ,<%<0.00 +1<11.10 +0&+0.00 31+,0.00 10<,+0.00 1%=&3'.0=

Ad3an !s 0.<0 '.+0 1'.=0 &%.+0 +1'.,0 <=+<.+0 '3'+0.00 <'1&'.10 <<1+0.00 =&1%0.00 ,0<&=.00 30+0=.3%

P#ofits 0.001 0.03 0.1' 0.,< 1.1' =0.'= <<'.10 ',1.30 &+,.=0 +&'.=0 =30.01 @'+1.,+8

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&#a04 ?:

Performance Over the years

120000 100000 Values 80000 60000 40000 20000 0 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 Years Networt !eposits "#van$es %ro&its 'utlets

THE STRUCTURAL CHA%&ES I% IV'L (tarting %001"%00%! I*> #ank implemented several management and operational changes in I*> Aysya #ank. These include reorganizing the organization structure! bringing in a new breed of professionals from other foreign and private banks as well as from Indian operations and implementing (1*/5EN! a core banking solution used by it at many locations globally.

I*> Aysya faces the challenge of changing the mindset of its existing employees to adapt to the new culture in tune with I*> s global systems and work in the new technology dominated environment. The bank is constantly imparting training to upgrade the skills of its employees. 1ll key functions are now headed by I*> >roup employees or experienced ex" foreign H new generation private bankers. I*> Aysya #ank is one of the oldest private sector banks in the country with a significant exposure to south India! in which the I*> group of the *etherlands has taken up a <<I stake. I*> s participation in the bank s management has brought about a turnaround of sorts in its functioning and! conse4uently! I*> Aysya #ank is emerging as one of the fast growing and better managed private sector banks in the country.

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1s mentioned above! I*> s involvement in the bank s management is the main reason for its improved performance over the last two years. I*> >roup is one of the largest universal banks in the world with an asset size of close to ?(O , trillion. The ac4uisition of Aysya #ank is part of I*> >roup s strategy for the Indian subcontinent. ;or I*> Aysya #ank! this has meant strong management and functional expertise that I*> group has been able to impart to it. I*> >roup s overall strategy for India is to develop a >reenfield presence in the country. This indicates that the parent may! at a latter stage! further increase its investments in the bank.

Int#odu tion to SME S!"/!nt of I%& Vysya 'an( SME:

1ll units engaged in introducing or distributors of commodities of foods of providing services or education institutions! units financed under structured products like Ays"deal! business loans trade! Ays" vyaper etc irrespective of 4uantum of finance F manufacturing units with annual sales turnover up to -s.=0 crores and having existing or proposed fund and non" fund based credit facilities not exceeding -s = crores comes under (9E. (9Es have been playing a very crucial pivotal and dominant role in the economic growth of our country. There is hardly any place whether it is rural! semi"urban! urban and metro where (9E business is not available. Innovation of new products and services is the biggest strength of (9E. They are playing vital role in the process of economic development by value addition! employment generation! e4uitable distribution of incomes! and regional disbursal of industries and mobilization of capital F entrepreneurial skills. It is found to be an indispensable link between manufacture F consumer in the economy. They are also contributing to a maBor share of export earnings i.e.! around '=I of total exports in the Indian economy. (mall and medium enterprises business which has accounted for a sizeable proportion of our total advances. This segment focuses on the needs of all business enterprises in hading of goods or services with annual sales turnover up to -s. ,= crores for both domestic and export credit re4uirements. (9E a large number of relationships which is a care strength enabling us to cross sell other products like savingsHcurrentHterm deposits! insurance and mutual fund investments! credit card! Ays".2 etc. SIT.P&+MS) Tu/(u# %,

(9E #usiness is primarily available in 100 networked branches spreading across 11 sub" regions of the #ank and having about 1&!=00 relationships with a total volume of -s.1=<0.+< crores under fund based limits and -s.=<<.%+ crores under non"fund based limits as on (eptember '0! %00<.

C4a#a t!#isti s f!atu#!s of SME

#usiness spread across all branches and focus is on 100 selected branches of new business. (ecurity oriented. Aaried constitution like individuals! proprieties! partnerships! 5indu undivided family! trusts! associations! companies etc. USPs of SME: 1. 5igh yield. %. /ollateral cover. '. -isk is spread across large number of borrowers. <. (cope for cross selling of products of products of insurance! cms! retail F low F no cost of deposits.

Vision:
1. 5istorically! the I*> Aysya bank has been activity financing to all trade related activities! which are the core strength of the bank! infactG it was identified as trader s bank. %. 9aking (9E to have a share of =0I in the credit portfolio of the bank in the next five years.

At a "*an ! a$out SME:

/onstitute <0I of bank advances. /ontributes significantly to the bottom line due to high yielding asset portfolio.

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100I export finance of bank through our (#?. #road borrower base with a dilution of risk. 9anufacturing units with credit re4uirements up to -s. = crores.

IMPROVI%& PERFORMA%CE:
1. 1 number of issues will affect current year s performance o :ack of total involvement of #ranch 9anager of important branches. o Turn 1mount Time o :ack of ade4uate people to do (9E business o :ack of discretion to recruit the people in the place of resignations! retirements! A-( etc o .elays in getting the documents of collaterals approved by /12? %. 1 number of factors will improve current year s performance o :ion #ranch F ;ocused #ranch concept o (uccessful"tackling of documentation problems o 9ore delegation to -9! -5(! -//( o 9ore co"ordination and interaction with -egional /E0s for providing manpower to the :ion and ;ocused #ranches o 9ore training to the -9s both in marketing and processing '. 5ow to leverage the factors over the issues o Early implementation of :ion #ranch and ;ocused #ranch concept o To advise the ;ocused #ranches to give leads and to book business despite absence of -9sH/(0s. o To co"ordinate with /orporate :egal .epartment @/:.8 to simplify the documentation o To co"ordinate with /:. about legal formalities with /12? o To constantly review the performance of -9s and -5s SIT.P&+MS) Tu/(u# %3

CUSTOMERS: Internal /ustomers -est of the bank External /ustomers #usiness concerns of all kinds! statutory bodies! 1uditors etc.

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O#"ani8ation C4a#t
The structure of the organization of /orporate 0ffice! #angalore is as followsG

CHAIRMA%

M-+ 7 C-E-O ;inancial (ervices #usiness 2rocess -e"Engineering Executive A.2Ps

9arket -isk 9anagement .epartment

#oard of .irectors

Investment (trategy 1nd -esearch

Aice 2residents

Treasury .epartment ;inance .epartment 29( and .epository 1griculture 1nd social #anking -etail banking 2rivate #anking /redit /ard .epartment :oan -eview .epartment /orporate Investment #anking 5uman -esource .epartment /entral 2rocessing ?nit /redit -isk 9anagement (ervices 1udit and Inspection (mall F 9edium Enterprises

9anagers

0fficersH/ontract ual 0fficers

/lerks

(ub"(taffs

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M 6ins!y H.S F#a/!1o#(

The ,"( model is better known as 9ckinsey ,"(! this is because the two persons who had developed this model! Tom 2eters F -obert )aterman! have been consultants at 9c$insey and /o at that time. They published their ,"( model in their article Q(tructure is *ot 0rganizationQ@13+08 F in their books QThe 1rt of Japanese 9anagementQ@13+18 F QIn search of ExcellenceQ@13+%8 The ,"( framework of 9c$insey is a value based management model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates-

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The model starts on the premise that an organization is not Bust (tructure! but consists of seven elements

S: Shared Value: The interconnecting center of 9c$inney s model is (hared Aalues. )hat does the organization stands for and what it believes in. /entral beliefs and attitudes. (hared values means that the employees share the same guiding values. Aalues are things that you would strive for if they were demonstrably not profitable. Aalues act as an organization conscience! providing guidance in times of crises. Identifying corporate values is the first essential step in defining the organization role in the larger community in which it functions. 0rganizations main values are stated in its Aision F 9ission statements. (o! it is the responsibility of every employee of the organizations to share their values. Every employee of the organization can give their best for the achievement of those values.

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1 role of the vision statement is to impart to the organization. )hat the organization stands for and what it believes in. the organization not only formulate and constantly reiterate values and beliefs but also adhere to them if they are to shape people behavior in a lasting way

Vision stat!/!nt The Vision stat!/!nt of I*> Aysya #ank is Q I%& Vysya 'an( will be an Ent#!0#!n!u#ia* Int!"#at!d Finan ia* S!#3i !s Institution where Inno3ation F T#ansfo#/ation are the way of lifeD. Mission Stat!/!nt The Mission of I*> Aysya is Q To be a *!ndin") &*o$a*) C*i!nt.fo us!d) Inno3ati3! and *o1. ost provider of ;inancial (ervices through the +ist#i$ution C4ann!*s of the *i!nts 0#!f!#!n ! in markets where I%& can create 3a*u!Q. Corporate Statement )e! at I*> A6(61 #1*$ will provide banking solutions with new ideas to become the most preferred for our customers including the mid"income households and small and medium businesses! ensuring lasting relationship.D

/ore values the organization upholds most7

Int!"#at!d" I*> A6(61 #1*$ is committed to complete honesty and integrity in all aspects of business. T!a/1o#(" I*> A6(61 #ank is wedded to teamwork within the organization! between complementary and also with partners. P#of!ssiona*is/" I*> A6(61 #1*$ believes that professionalism throughout the bank is the key for delivering consistently superior customer services. )e should do what we say and we are going to do. Ent#!0#!n!u#s4i0" I*> A6(61 #1*$ affirms that long term success and profitability demand an innovative and entrepreneurial approach from the bank and all the employees. SIT.P&+MS) Tu/(u# '<

R!s0onsi$i*iti!s to usto/!# n!!ds" I*> A6(61 #1*$ recognizes imperative of being pro"active and responsive to customer needs in the markets it operates.

The I*> Aysya #ank believes that the fundamental capacities any individual would possess to be able to participate in the larger economy are in the areas of health! education! and to provide basic financial services. )ithin these broad areas infant health! education! and micro financial services define the areas in which the I*> Aysya #ank focuses.

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S: Strategy (trategy defines key actions and capabilities along the maBor dimensions of marketing product and services development! sales and channel distribution! business system and processes! and management of alliances and partnerships. (trategic thinking involves the understanding of basic economics of business! identifying ones sources of competitive advantage! and allocating resources to ensure that ones distinctive capabilities remain strong. (trategy s most important contribution is searching for! and redefining! context. (trategic thinking also creates a readiness to exploit unforeseen opportunities. 0bBectives of I*> Aysya The changed economic climate in India! with a growing emphasis in the market has hastened the need for an informed and participatory socio"economic order. 1s being one among the largest player in the economic landscape of the country! I*> Aysya believes that its involvement in the commercial sector must be backed by a simultaneous commitment in the social sector. I*> Aysya bank seeks to perform in the social sector by providing low cost financial services through the preferred channels of the clients. (trategic obBectives of I*> A6(61 #1*$7 To establish retail presence. To build and maintain investors relation. To build LI*> Aysya #ank in the market. To improve customer satisfaction. To implement the -isk management system. To develop a new organization structure. To develop a sales culture at all levels. To map competency re4uirement at all levels and plan development needs. To improve employee satisfaction scores.

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(trategies of I*> Aysya 1t a very basic level! the proBects supported by I*> Aysya are re4uired to cater to all the levels of the people with low cost financial services. This is in recognition of the fact that resources are limited and the efficient use is imperative if the maximum number is to be benefited. /ost effectiveness also facilitates the adoption of the initiative in other context. The initiative must be scalable. (calability implies the ability to draw upon the important elements of a program and adapt them to suit the needs of a specific situation. It should be possible to do so at the national level. Even if the program itself is not directly scalable. It should be possible to take away significant lessons from it in order to enrich work in other setting. 1ll supported initiatives should have the potential for both near and long"term impact. /onse4uently! it is important that the impact of this program s! in the near and long"term! be carefully understood and analyzed in a rigorous manner and not trough anecdotes. It is critical to clearly understand how an initiative is performing in terms of its predetermined goals and in comparison to alternatives.

S: Structure 0rganizations will find that changes to processes and style inevitability re4uire changes to their structure. To be responsive and results oriented an organization needs to move to a network structure. *etwork structure supports a responsive and result oriented organization. The way the organizations units relate to each other! centralized! functional divisions @top down8 decentralized @the trend in larger organization8! matrix! network! holding! etc. 0rganization structure defines the authority! responsibility and relationship in the organization. The organization structure mentioned below where we can observe that the .epartmenation is done on the basis of standard function of the management. The structure of I*> Aysya #ank is as follows7

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Each department is controlled and guided by the head of the department. 1ll departments have separate manager to control activity. The structure shows how the company is able to manage its staff and also involves everyone in the decision making process. 'oa#d of +i#! to#s &-M-Rao 'a#t H!**!/ans 6 R Ra/a Moo#t4y 6 R V Su$#a/ania/ S 6 %!1*ay IR'I %o/in!!J Jos!04 J 6!st!/ont P!t!# A*!Dand!# S/yt4 +a3id 5ood Hudson Anand Su#yadutt '4att Ryan And#!1 Pad"!tt A#un T4ia"a#a2an P#a(as4 & A0t! La#s 6#a/!# C!!s O3!*"onn! P!t!# Staa* /hairman 9anaging .irector F /E0

/0-20-1TE (E/-ET1-6
M V A00a Rao

(T1T?T0-6 1?.IT0-(
MKS '4a#at S Raut 7 oS: Skills (kills refer to distinctive capabilities of personnel or of the organization as a whole. (kills are that for which the staff to develop appropriate new skills! for which it re4uires a learning environment. If the staff managers are to ac4uire the skills! then there needs to be an appropriate learning environment. 0ne that7

Is driven by desire to realize the vision. 5as a sharing culture with mutual support. '+

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2rovides space and time for learning. 2referably closely linked to specific tasks and obBectives @Bust in time learning8. 1llows risk Tolerates failure! provided it is part of the learning process. 5as visible recognition for success that is built on new learning.

)here skills and experience cannot be resourced or developed internally within the re4uired timescales then external companies will need to be retained. In short skills refer to the fact that employees have the skills needed to carry out the company s strategy. Training and development ensuring people know how to do their Bobs and stay up to date the latest techni4ues. -obert $arz has identified three essential managerial skills. They are as follows7 ?- T! 4ni a* S(i**s: Technical skills encompass the ability to apply specialized know ledged or expertise. It involves working with tools and specific techni4ues. ;or example! 9echanics works with tools and their supervisors should have the ability to teach how to ?se these tools. A- Hu/an S(i**s: 5uman skills is the ability to work with people! it is cooperative effort! it is team work! it is the creation of an environment in which people feel secure and free to express there opinions. F- Con !0tua* S(i**s: It is the ability to see the big picture! to recognize the significant elements in a situation and to understand the relationship among the elements. .ifferent organization re4uires different skills. The skill set differs from one organization to organization. #ut when it comes to banking the skill set differs from that other type of organization. The skills possessed by different employees are depending on their grades. The following are the grades of I*> Aysya #ank employees. /hairman 9anaging .irectorH /E0 Executive A.2s Aise 2resident

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1ssistant A.2s 9anagers 0fficers /lerks (ub (taff

S: Systems The systems refers the procedure! processes and routine that characterize how important works has to be done like financial systems! hiring! promotion and performance appraisal systems! information systems. (ystems re4uire capabilities in both information technology and in organizational process methods and controls. The capabilities are re4uired in7 1. Information Technology F Information (ystem It is used for .esigning a user interface! analysis and design techni4ues! .evelopment of prototype! new product development! database! (ystem delivery like distribution to multiple users! locations! media type and combinations and operation of wide area network management! security management. %. (ales and service7 .esign! development and delivery of new responsive processes to support intimate customer relationship! operation sales! services! claims! %<H, day support. F- L!"a*L ;or like personalization and customization of productsHservices. The decision"making system within the organization can range from management institution! to structured computer system to complex expert system an artificial intelligence. It includes

Co/0ut!# syst!/ O0!#ationa* Syst!/ Hu/an R!sou# ! Syst!/ Ma#(!tin" Finan !

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Information Technology7 The bank is focusing on improvement in IT related functions to have an edge over other market players. The bank continues to leverage information technology as a strategic tool for its business operations! to gain competitive advantage by offering customer convenience and improved services as well as improving productivity and efficiency. I*> Aysya #ank technology strategy emphasis enhanced level of customer services through %<x, availability! multi channel banking and straight through processing! and cost efficiency through optimal use of electronic channel! wider and focus market reach and opportunities for cross selling. ;or this purpose core"banking solutions have been implemented in %'< locations. 1s a measure to reduce operational cost! increase the deposit base and enhance customer service! the bank in increasing the number of 1T9s. The bank has introduced the Internet banking facility"titled miR"banking. The following facilities are available through Internet banking! in addition to the regular features like viewing of balances! re4uest for che4uebook! instructions for funds transfer etc.! /ash 9anagement services. /orporate customers can login to the system and view their day"to"day transactions! pooling status and download daily reports. .2 facilities! the depository participants will be able to view their .2 transactions! download reports and communicate with the .2 cell. Electronic bill presentment and payment module is now live and will facilitate online bill payment.

P!#fo#/an ! A00#aisa*
I*>"Aysya #ank has the following performance appraisal techni4ues 1. 9erit based promotion %. 9onetary Incentives for clearing professional exams '. Employee of the month scheme @The chosen one8 <. #alanced core card techni4ue'&= deserving employees are promoted to next cadre and 3%' employees were transferred internally based on business re4uirement of the bank. SIT.P&+MS) Tu/(u# <1

(7 Style
(tyle refers to the employees shared and common way of thinking and behaving E unwritten norms of behavior and thought. The managerial approach is more proBects focused than process focused. The management is likely mixture of self"management for customer facing activities and task management for organizational activities. ;or ex7 if the staff is to treat customers as individuals! then they themselves will need to be managed as individuals! this suggests a self"management style. 9odels for leadership7 (haring leadership is key to the white stag philosophy of leadership because overtly promotes the distribution of the function of the leader among the group. /ompetitive styles of leadership are less and less responsive to complex society today. 2articipative of cooperative styles of interaction are the keys to our future. 1n individual s style in interacting with others is an outward sign of the substance within. )ith experience! we can really tell a lot about people s capabilities by looking at them! but it is better to watch them in action. 5ow does a good leader behave when the group is confronted with the need for decision.

(electing a :eadership style7 There are several forces affecting the type of leadership style available to the leader. Influences affecting choice7 1 number of forces can affect a leader s choice of leadership style as shown in the forces affecting a leader s choice of leadership style. ;orces on :eader7 These can include his knowledge! skills! attitude! experience! background! values! personal goals! group goals! confidence in members! convictions about styles and his choice of style! pressures from outside groups! time! resources! personality! sensitivity! weight of responsibility. ;orces on team7

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These include the combination of personality in the group! values! expectations! willingness! and ability to make decisions! individual needs! team needs! interest! and competition! confidence! resources! workload! spirit! a communication and fatigue. ;orces in situation7 These include time! restraints of organization! environment! size or duration of Bob! conflict of goals! emergencies! hazards! desirability of the Bob! Bustice! legality! remove or lack of alternatives. :eadership (tyles in I*> Aysya #ank It has been observed in I*> Aysya #ank that the behavior of superior towards the subordinates is pleasant. They motivate fresher who are working under them. The superior tells the subordinates what he has to do. The obBective of the work is clearly defined to them. 0therwise the superior talks to the subordinate! ask the difficulties that the subordinate is facing! and tries to solve his problems. It is also been observed that in the organization that while speaking to their subordinates! superiors will be very friendly and affectionate to the subordinates. The superior in the I*> Aysya #ank gives e4ual importance to obBectives of the company as well as relationship with the subordinates @executive style8. (uperiors who act as leaders conduct meeting! discussions! presentations etc on regular basis and take the suggestions and ideas given by subordinates! the leaders take the final decisions only. This style of leadership is called 2articipative style of leadership.

S: Staff (taff means that the company has hired able people! trains them well and assigned them to the right Bobs. (election! training! reward and recognition! retention! motivation and assignment to appropriate work are all key issues. (o! it means how an organization effectively recruits! trained their people and assigned them the right Bob. Training and .evelopment I*> Aysya #ank has about =000 employee s spread over the branchesHoffices across the country. It was very difficult for the bank to provide proper training to all the employees. ;or this purpose in 13&+! (taff Training (chool was established and it was upgraded to (taff Training /ollege in 13,&. The college trains all the staff irrespective of the designation. The guest speakers are invited from different profession. Even other banks are invited to share their experience. The staffs are even sent to other institutions for training- The duration of the training depends on the type of training and the period varies from 1"day to ?.y!a#- On!.

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third of the employees undergo training every year! i.e.! all the employees are trained once in three years. 1part from this need based training is also given. Aice president who is also the principle of the college heads the training college. ;aculty members F administrators support him. 1nother important landmark was establishment of I*> Aysya :earning /enter @IA#/8 with the obBect of replicating the programs being provided by I*> #usiness (chool! 1msterdam and also to provide other training inputs needed by the I*> Aysya >roup! as well as the other units. The program conducted during the year"included changes :eadership! 2erformance 9anagement and maximizing customer profitability! benefiting ,, senior people. -ecruitment 2rocess of I*> Aysya #ank7 I*>"Aysya follows both Internal and External -ecruitment. If the suitable candidates are available internally! through circulars a notification is sent to the employees. If candidates are not available internally! external recruitment is followed. (ources used for External -ecruitment are mainly through /ampus -ecruitment! /onsultancies! etc.

The recruitment has been streamlined and uniform recruitment policy and process implemented. /ompetency profiling tools are being used to strengthen the campus recruitment process and match the profiles of the employees to the need of the organization. I*> Aysya bank also undertakes lateral recruitment to bring new skillsG competencies and experience interest the organization and meets the re4uirements of the rapidly growing business. 1 six"sigma initiative has been undertaken for the literal recruitment process to improve capabilities in this area. The rapidly changing business environment and the challenges it posses to organization and businesses make it imperative to continuously to enhance the knowledge and skill sets across the organization. I*> Aysya bank believes that building a learning organization is critical for being competitive in product and services and meeting customer s expectations.

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 (pecial programs on functional training and leadership development to build knowledge as well as management ability is conducted at dedicated training facility. I*> Aysya #ank also draws from the best available training programs and facility! both international and domestic! to meet its training and development needs and built globally benchmarks skills and capabilities. I*> Aysya #ank believes in defining clear performance parameters for employees and empowering them to achieve their goals. This has helped to create a culture of high performance across the organization.

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SWOT Analysis
()0T analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. ()0T analysis is an effective way of analyzing the organization potential by identifying your strengths F )eakness! F to examine the opportunities and threats! which may affect the organization. /arrying out an analysis using the ()0T tool will be enough to reveal changes! which can be implemented easily! F gain results.

S: Strength:

The bank has the backing of a globally respected brand QI*>Q! it is also supported by a sound network of '=+ #ranches! &1 Extension /ounters and ,% 1T9Ps at strategic locations in IndiaQ.

I*> Aysya bank stands one among the top ten banks in India and is ranked =th in the private sector banks. I*> Aysya provides end"to"end banking solutions under one roof. It also provides 111 @1nywhere 1nytime 1nyhow8 banking solution. I*> Aysya bank has in"depth local market knowledge through which it has established a wide range of client relationship. It has a large network of products and this has made it successful in creating #-1*. 1wareness.

The bank is having well experienced! well trained! most dedicated and committed staff! which is very much necessary for the banks. It has effective branch *etwork. I*> Aysya bank enBoys good reputation in the market! good will and market share in the economy.

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5: Weakness:

*o specific 9arketing .epartment in I*> A6(61 #1*$- 5ence it is facing stagnant sales in comparison with its competitors with respect to financial products. Tedious procedures have to be followed before advancing loans causing inconvenience to customers.

O: Opportunities

I*> Aysya #ank is having wide opportunity in the Third )orld /ountries like India to achieve the fastest sustainable growth in banking sector>lobal aspirations of Indian consumers and growing integration with *-Is. The bank can optimize the growth opportunities arising out of retail banking and small and medium enterprises. ;urther expansion of 1T9s networks and possible arrangements of sharing networks of other banks by issuing AI(1 /ards! 91(T-E0 /ards to its customers. It can attract new customers through new schemes and lessening the deposit amount on account opening. The regional office infrastructure can be developed and extended to support more attractions to customers.

T: Threat

#ank is facing competition from its >lobal /ompetitors like /ity #ank! I/I/I #ank! 1#*"19-0 #ank! .eustch #ank! 5(#/ etc /hanging economic policies of >overnment will have bad impact on interest rates and reserve ratio maintained with - # I. >lobalization has given raise to many more complications such as migration of human resource pool! resistance to change in different 1ccounting (tandards by its employees and maintenance of accounts under different 1ccounting (tandards.

The various schemes and comparatively higher interest rates offered by the other banks such as 5.;/! 5(#/! F (#I.

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SWOT ANALYSIS7
Strengths: 5igh yielding 1ll the loans are covered mostly by 100I of collaterals -isk spread across the number of borrowers (cope for cross selling of various products. (cope for canvassing low cost and no cost deposits.

Weakness: Ticket size in (9E is small. #ut! the processes and procedures being common for all types of loans and being stringent! causing hindrance for growth. 9onitoring is also man power intensive. 1lmost all accounts being collateral"based! the documentation process is consuming a lot of time. Each proposal being uni4ue by itself re4uires close studyHmonitoring.

Opportunities: )ith increased employment and increased level of consumption! large scope for continuous growth in the sector >rowing economy"expansion of existing units. Existence of (9E business at every place H centre. 5ardly any place where (9E business is not available. /ross selling of products of insurance! 9utual ;unds etc. to the borrowers and employees H relatives of borrowers. Threats: Increasing competition due to entry of new generation 2rivate sector #anks.

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.eclining spreads F conse4uent thinning of margins.

S!#3i ! 0#ofi*!:
Vysya $an( is the premier bank among the private sector banks of India. 5aving established benchmarks in many areas in the national banking stream! the bank goes global crossing the frontiers and oceans. Aysya #ank is the premier bank in the Indian private sector. The bank has been in service of the nation over the last sixty"eight years and has built strong financials! to emerge a stable and a strong #ank. 9oving towards the customer! bank has been constantly innovating. The bank offers today! a vast range of services! through its four hundred and fifty outlets! spread across the country. ;ollowing are the different services provided by the Aysya #ank to the customers. ?- sa3in"s $an(: It is an operational account designed for the convenience of individuals. 5?; and non trading organization H institutions. (tanding instructions for payment of :I/ premium! collection of dividends! etc.! for the account holder is accepted. Au##!nt A ount: /urrent deposit accounts are convenience accounts without any restrictions on operations. These accounts can be opened in the names of individuals either singly or Bointly. ;irms and companies can also open account. The account holder is re4uired to maintain a certain minimum balance as re4uired. *o interest is paid on the balance held in the account. Fu/u*ati3! d!0osit:

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1 recurring deposit scheme for those with regular monthly incomes. 2erfect way to save fixed sum every month for large outlays on consumer goods! item frame could be from a year to 10 years. The scheme offers an attractive rate of interest. <. ;ixed deposit7 The way to put a lumpsum to work. This scheme allows you to earn interest on your surplus ;unds! even if it is for a period! as short as 1= days. 1nd can be extended unto 10 years. -ates of interests vary depending on the length of period! deposit is made for. <- A(s4aya d!0osit: Interest on interest. That s what is offered by this scheme. 1 lumpsum needs to be deposited for a fixed length of time. The interest accrued on this deposit is clubbed along with the original deposit and this process continues till the end of the deposit period. =- Vysdou$*! d!0osit: 1n extension of 1kshaya .eposit! the scheme provides for doubling investment at specified time frames based on the ruling interest rates. It is the scheme to be opted to! when best yields are looked upon. H- Vysta# +!0osit: 1 short term deposit! it entails automatic renewal at the end of every fifteen days without the hassles of any documentation. It is an account best suited when a depositor is not in a position to firmly lock up the period of the deposit. M- F*!Di$*! fiD!d +!0osit: The high interest rate of a fixed deposit coupled with the flexibility of a current account. )ithdrawal upto ,=I of the deposit amount is allowed by way of overdraft. /on is opened by individuals! groups! firms! companies! societies! trusts! etc.

B- Ho/! *oan a ount:

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1 recurring deposit scheme with the assurance of a matching loan at lower rates of interest to realize the L;irst 5ome . The account provides flexibility not only in saving amounts but also for intervals in savings. The account while 4ualifying for tax concession provides for bridge loan facility to tide over emergencies! after completion of specified minimum period. ?>- Vysunits +!0osits: 1 term deposit! which provides for premature withdrawal of the deposit in units of -s. 1! 000! 00 it prevents premature closure of the entire deposit and the conse4uent loss of interest on total deposit. ??- Vysf*!Di +!0osit: Aysflexi deposit is a novel It driven product for customer s benefit. The scheme provides the freedom to the depositor to transfer excess funds in his savings #ank account to a Term .eposit of choice both under ;ixed and -einvestment plans. ?A- Vysya 'an( Citi$an( C#!dit Ca#d: The convenience of shopping! traveling or eating out without cash in your pocket. The facility of drawing money in an emergency. This card is accepted art thousands of establishments around the country. ;ree life insurance too. 2eriodical statement makes sure that cardholder have an accurate record of all their transactions. ?F- &ift C4!@u!s: 1 gift that is sure to be appreciated because it allows the receiver to decide how to use it. (afer and more attractive than giving cash and avoids the duplication of other gifts. ?G- R!/ittan !s: ;acilities for remittances available through .emand .raft @..8! 9oney transfer @9T8! 2ay 0rder @208! and Telegraphic Transfer @TT8 at most competitive rates across the spread of branches of the #ank.

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C#!dit s 4!/!s to $!n!fit f#o/ 3ysya $an( *tdVYS VYAPAR

2rimarily a trade finances scheme! it is specially conceived to provide li4uidity in business at competitive interest rates. 1s an individual! if you are in business the scheme provides you the comfort in trading. VYSMO'ILE K VYS'I6E 1 /onvenient scheme for salariedH self employed individuals to own a new four" wheeler H two"wheeler. ?pto ,=I of the value of vehicle based on invoice price is sanctioned as loan to be repaid in 1%"&0 e4uated monthly installments through salary deductionH post dated che4ues. VYS'UY 1 pragmatic scheme to buy your dream consumer products. :oan upto -s. %0!000 are given to group of salaried employees of a companyHgovernment department to buy consumer durable. -epayment is through easy e4uated monthly installations. VYSHOME 0wn your dream house through the vyshome scheme. The scheme is intended for individuals aged %0 to =0 years for availing housing loans! ranging from over -s. % lakhs to a -s. %= lakhs with a maximum repayment period of 1= years. SELF 'A%6 *ow you have the convenience of round"the"clock banking and %<"hour cash. 0ur (E:;"#1*$ is Bust one more of the many technology driven products that we offer our customers. To bring real banking convenience closer to you. %o1 you 4a3! !asy a !ss to: cash withdrawal /he4ue deposit. =%

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%RI SCHEMES
The #ank with its wide ranging .eposits (chemes brings the gap between the re4uirement of the *-I s on one hand and the country on the other! canalizing saving with secure and steady returns to the investors. )ith all modern infrastructure and customer friendly employees the bank is geared to be in the lead! and also the services available to the customers are comparable to the best in the industry. %on R!sid!nt IEDt!#na*J A ount SAVI%&S 'A%6 ACCOU%T Interest payable at <.=I per annum. /onveniently che4ue 0perated 1ccount! with debts freely permitted! ideal for! giving out (tanding instructions. CURRE%T ACCOU%T The convenience of /he4ue operations to meet all the business needs back home. CUMULATIVE +EPOSIT ACCOU%T ;acilitates ;ixed (avings at 9onthly intervals. 1ttractive rates of interest! depending on the 2eriodicity of saving. FIXE+ +EPOSIT SCHEME ;acilitates higher earning on the .eposits.

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Interest payable 4uarterly! either through /redit to the operative account or remitted abroad. O#an"! sa3in"s: The orange savings 1H/ is a feature packed account 4uite different from any other savings 1H/ in the market. )ith features like free 1T9 transactions in +000 1T9s across banks! free personal accident insurance! free statement of 1H/ on e"mails etc. This is one 1H/ every customer should have current. O#an"! Cu##!nt A ount: The orange current account is an 1H/ that offers zero commission on demand drafts upto -s. % lakhs! free transfer of funds across branches! free demand! 1Hc opening and other features that make it the only current 1H/ that provides true value for money. HOME LOA%S: To make the customers dream homes a reality! the bank has introduced home loans that can be customized to customer s convenience! which offer protection in the form of free life insurance! for the full loan term and amountPERSO%AL LOA%S: Taking a personal loan is made easy! fast and with minimal paper work. 1ppointing representatives to guide the customers through the process is only one of the few steps the bank has taken to expedite the loan taking processT5O 5HEELER LOA%S: The bank has introduced two wheeler loans that are approved in record time and further enhanced by having re"payment options structured to customer s convenience. )ith minimum documentation flexible schemes and competitive rate of interest! the bank s two wheeler loans are the fastest and most convenient option in the market. MPO5ER SALARY ACCOU%T: The 9power salary account expedites the process of salary payment thus facilitating both employers and employees. The account makes customers lives easier and has many SIT.P&+MS) Tu/(u# =<

features like overdraft facilityG value added service and personal assistance and free international debit card with free access to more than +000 1T9 s across banks! leaving them free to concentrate on their work. CRE+IT CAR+S: The banks credit card is uni4ue because it charges an extremely nominal rate of 1=I on cash withdrawal and not Bust thatS There is no transaction fee what so ever on fuel purchased! through the card. The cards also give customers global access to over '0 million merchant establishment s world wide. )hich means where ever the customers go! the I*> Aysya #ank credit card is accepted.

PRO+UCT RA%&E

.E20(IT(HI*AE(T9E*T( /?--E*T 1H/ (1AI*>( #1*$ A6(;:ETI A6(;:ETI TE-9 .E20(IT (/5E9E( ";ITE. "1$(5161 "/?9?:1TIAE /E-TI:;I/1TE 0; .E20(IT(

:01*( A6(A6121A6(-E*T A6(#I$E A6(EM?IT6 0T5ET-1.ITI0*1: :01.* 2-0.?/T( /1(5 /-E.IT #I::( :/s >?-1*TEE( /099E-/I1: 212E-( ;0-EI>* /-E.IT #0T5 2-E(5I29E*T 1*. 20(T(5I29E*T I*;-1(T-?/T-E ;I*1*/I*>

(E-AI/E( -E9ITT1*/E(@..H9TH2 0HTT8 :0/$E-( >?1-1*TEE( >I;T /5EM?E( /-E.IT /1-.( /1(5 91*1>E9E*T (E-AI/E( AIN. /1(5 /0*/E*T-1TI0* 1H/! NE-0 #1:1*/E 1H/! -12I. /0::E/TI0* 1H/ ET/. 2169E*T 1*. /0::E/TI0* (E-AI/E( A6()I;T ;0-EI>* ET/51*>E T-1*(;E-( /0::E/TI0* 0; #I::(

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SME PRO+UCTS:

SI-%O1. %. '. <. =. &. ,. +. 3. 10. 11. 1%. 1'. 1<. 1=. 1&. 1,. 1+.

%a/! of t4! 0#odu t Ays"-ent #usiness loans"Trade 9power #usiness account Ays"-ice 9ill Ays"/ontractors Ays"Aidyalaya Ays"#1: .iscounting -#I -elief #onds )are 5ouse -eceipts U)5-V Ays"9ahindra /astrol India :td. $odak India :td. -aymonds :td. Ays"Ayapar Ays"Ayapar 2lus Ays"Trade 2roperty .evelopment 1pollo /linics

'#i!f d!s #i0tion 1 scheme for discounting of rentals of commercial properties. 1 scheme for traders @upto maximum of -s. %= lakhs8. 1 destination product for all the (9E over draft accounts with value added features. 1 product for financing to rice mills 1 scheme for financing to contractors. 1 scheme of financing to Educational institutions. 1 scheme for discounting of bills drawn on 9H(. #aBaB 1uto :td. 1n overdraft scheme for financing against >ovt. of India -elief #onds. 1 scheme for providing short term loans against )5-. (cheme for financing working capital to the dealers of 9ahindra F 9ahindra. 1 scheme of extended credit facility to /astrol dealers. 1 scheme for financing to the clients of $odak. 1 scheme for financing -aymond distributors. Exclusive loan product for traders against stock 1 scheme of secured overdraft for tradersHcommission agents. (implified scheme for renewal of small sized credits i.e.! credit exposure upto -s. 10 lakhs. (cheme for financing real estate activities. (cheme for financing term loansH working capital limits to 1pollo /linics.

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RE.I%VESTME%T PLA%S OR A6SHAYA +EPOSITS 0ne time investment that earns interest on interest! compounded at Muarterly rests.

Ad3anta"!s:
Earns a higher rate of interest. *o income"Tax on interest earned. #alance held in the exempt from )ealth Tax. >ifts made out from these accounts are free >ift Tax;ree repartribility of the balances held in the account inclusive of interest wherever desired. /ompliance of all standing instructions eliminates all botherations back home. 2articipation in the Indian /apital 9arket freely possible from of out the balances in the account! so also ac4uisition of real estate. T4! %RO A ount: This is a designated account of a person on his departure abroad for employment! business or vacation or an account can be opened by an *-I for domestic transactions. The *-0 account can be opened by any *-I savings! current or even fixed deposit account. T4! %RE ACCOU%T This is an account maintained in Indian rupees that offers you the convenience of being fully repatriable. The *-E account can be opened by any *-I as a savings! current or even fixed deposit account. THE FC%R A ount: This is a fixed deposit account that is free from any exchange risks and offers competitive interest rates. The ;/*- account can be opened by any *-I as a fixed deposit account or -e"investment deposit. SIT.P&+MS) Tu/(u# =,

THE RFC A ount: The -;/ account is for the benefit of those *-Is who have returned home for permanent settlement! after a minimum stay of one year abroad. The -;/ account can be opened by an *-I who has permanently returned home to settle down and can be opened as a savings! current even as a fixed deposit account. JOI%T ACCOU%TS: 1 *on"resident account can be opened in the Boint names of two or more non"residents. In case of *-0 accounts! Boint accounts can be opened with close relatives and residents in India too. -emedies from abroad can be made in any of the designated currencies by way of telegraphic transfer! mail transfer! demand drafts! che4ues! etc.! preferably abroad. TELE&RAPHIC TRA%SFER: Instruct your banker to remit the funds to the credit of I*> Aysya bank s 1ccount maintained with the foreign correspondents by furnishing the name of the branch where you wish to open the account along with relevant details. In case of operational accounts like savings and current accounts! the period of deposit need not be specified. -emittances can be sent through our correspondent banks as listed. +EMA%+ +RAFT: Instruct your banker to send the demand draft along with the completed application form to the bank s branch where the account is to be opened. The branch will arrange to issue the deposit receipt! effective from the date of value realization. -emittances received in other designated currencies will be converted to the re4uired currency! at the option of the depositor at the cross currency rates. 5ESTER% U%IO% FI%A%CIAL SERVICES: Inbound -upee remittances from across the globe are also possible through )estern union money transfer services. This is the 4uickest mode of the transfer from any part of the world with the beneficiary receiving the funds! in a span of Bust a few minutes. SIT.P&+MS) Tu/(u# =+

1 -esident can receive funds up to a maximum of ?(O%=00 or its e4uivalent per remittance with an annual ceiling of 1% remittances per resident. ;oreign tourists and students can also avail this service. /redit to *-EH;/*- accounts is not permissible. Int!#n!t 'an(in": mi"bRnk gives you access to your bank account from the comfort of your home! or any other location in the world! %<H,. F#!! Int!#nationa* +!$it Ca#d: ;ree access to I*> Aysya #ank s own 1T9s! plus free transactions at over +000 non" I*> Aysya #ank 1T9s displaying the cirrusH9aestro symbol. ;lexibility of unlimited shopping in India and abroad Uti*ity Pay/!nts: ;ree electronic bill payment facility enables online payment of utility bills in India. S/a#ts!#3: ;ree access to personal assistants! which facilitates routine errands as well as home delivery of tickets! flowers and gifts. 2ay your children s school fees without the hassle of follow"up. Lo (!# Fa i*ity: 1vailable in our select outlets throughout India in over %00 branches or more. +!/at A ounts: ;ree .emat accounts that enable you to buy! sell! hold or transfer securities in electronic format. Po#tfo*io Mana"!/!ntN: )e manage your funds to double your income through private banking.

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Lif! Insu#an !: The simplest way to secure your life is through I*> Aysya :ife Insurance! which is world renowned for protection! saving and investment. Mutua* Funds: 1dditional script to reroute your pocket funds to build a separate folder. Indian Ca0ita* Ma#(!t: 1. 2rimary 9arket7 It s a simple way to reap the benefits from the primary market. In fact! your decision ends with direction to buyHsell. The #ank does the rest. %. (econdary 9arket7 1 novel scheme providing an easy access to the secondary capital market in India. Enrolment under the scheme entitles you to Lbuy and sell . Loans and O3!#d#afts: :oans and 0verdrafts can be availed against *-EH*-0H;/*- term deposits up to 3=I of the deposits amount. :oansHoverdrafts are not permitted against -;/ accounts.

%ro#u$t %ro&ile
I*> Aysya is oriented toward providing integrated financial services to meet all your #anking! Insurance and Investments re4uirements under a single ?mbrella. The products are classified under different heads7 ;inancial 2roducts -etail #anking 2roducts :oans 2roducts

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 Insurance 2roducts Term .eposit Finan ia* P#odu ts: ?-C#!dit Ca#ds:

0ver '0 million establishments worldwide accept I*> Aysya #ank /redit /ard )ith I*> Aysya #ank /redit /ards you get unmatched benefits and service that only I*> Aysya #ank can offer *o 2etrol Transaction ;ee E 1s an introductory offer! the I*> Aysya #ank /redit /ard provides the exclusive benefit of no transaction fee on petrol purchases at any petrol pump that accepts the cards in India! as against the normal fee of %.=I as charged by other banks. -educed (ervice /harge on Emergency /ash E Every time you withdraw cash! a reduced service charge of 1.=I will be levied from the date of withdrawal to the date of billing! as against the normal service charge of %.3=I per month charged by other banks.

A-+!$it Ca#ds7 1 .ebit /ard provides for on"line electronic payment from savings H current accounts for purchases and access to 1T9s for cash withdrawals and en4uiries. It can be used both as an 1T9 card and as a method of payment @instead of cash H che4ues8 when purchasing goods and services! in India and overseas. 9ost of the .ebit /ards issued by banks are also 1T9 cards. 5ence they are also sometimes called as Q.ebit cum 1T9 cardQ. )hile 1T9 /ards can only be used to access cash! .ebit /ards can be used to make purchases at retail shops in the same way /redit /ards are used. There is no credit check re4uired to apply for a .ebit /ard. *ormally all savings accounts and current account holders are eligible for a .ebit /ard. .ebit /ard can be used at any merchant location displaying the AisaHAisa Electron logo and at any 1T9 displaying the AisaH2:?( logo. #esides that! one can always use it at any of the #anks 1T9Ps as a normal 1T9 /ard. I*> Aysya #ank issues 1T9 cum .ebit /ard in association with 9aster /ard International which are /irrus H 9aestro compliant. The I*> Aysya #ank E International .ebit /ards thus have wide acceptance! both locally and globally

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1ccordingly! the .ebit cum 1T9 /ard! gives you the freedom to access your savings or current account at merchant locations and 1T9s! across banks. )henever you make payments! the amount will be instantly debited from your 1ccount The .ebit cum 1T9 cards allow you to access your account %< hours a day! all through the year. F-+!/at A ount 9Vys +P:: A6(.2 .emat account is an account in electronic form! which will enable you to purchaseH.ematHhold or transfer securities. 1 .epository is like a bank where securities are held in electronic @dematerialised8 form. In India! there are two .epositories "*ational (ecurities .epositories :imited @*(.:8 and /entral .epository (ervices :imited @/.(:8. ?nder the .epositories 1ct! investors can avail of the services of the .epositories through .epository 2articipants @.28 such as I/I/I #ank. .2s are like bank branches wherein shares in physical form need to be deposited for converting the same to electronic @demat8 form. .ematerialisation is the process of converting the securities held in physical form @certificates8 to an e4uivalent number of securities in electronic form and crediting the same to the investorPs demat 1ccount .ematerialised securities do not have any certificate numbers or distinctive numbers and are dealt only in 4uantity i.e. the securities are fungible. .emat is an online trading account for investing in stocks foregoing the cumbersome paperwork with total control over trades. G-Mutua* Funds: 9utual ;unds are collective investment vehicles that pool together the funds of a number of investors to invest on their behalf in order to achieve a common obBective. They invest in a wide spectrum of investment avenues like E4uities! .ebentures! #onds! *on" /onvertible .ebentures! >overnment (ecurities! T"bills! /2s! -E20s! etc.! depending upon the nature of the scheme.

RETAIL 'A%6I%& +EPOSITS

?-O!#o 'a*an ! A ount: 1 roaming facility! with all the benefits of a current account! the Nero #alance 1ccount! delivers a seamless transaction between deposits and withdrawals! anywhere in the country. SIT.P&+MS) Tu/(u# &%

A-Cu##!nt A ount: 1 convenient account that allows unlimited transactions to business concerns! entrepreneurs and self"employed professionals. F-Cas4 Con !nt#ation A ount: .issolving geographical boundaries! /a(in" funds a3ai*a$*! any ti/!) !3!#y ti/!! our inter"city #anking services provides! freedom of choice! action and satisfaction 9aking investment and borrowing decisions easy. G-Sa3in"s 'an( A ount: 1 secure and li4uid account designed to fulfill the needs for savings and thrift of common people <-O#an"! Sa3in"s A ount: 1 uni4ue business 1ccount with a suite of value additions addressing the current day demands. =-S/a#t S!#3:
(martserv!

a comprehensive personal assistance service is brought to you by I*> Aysya

#ank in association with :es /oncierges :ife sciences 2vt :td! the industry leader in providing personal assistance service. .esigned exclusively for customers of I*> Aysya #ank! this service provides you with convenience in your personal and professional life. H- M0o1!# . Co#0o#at! Sa*a#y A ount7 " The 9power account benefits both the employees and employer alike. ;or employees! it provides convenient and value"added banking facilities across networked branchesG while employers benefit from a hassle free salary disbursement system I*> Aysya #ank is one of the few banks offering this product in the industry. M- A !ss P*us:

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#y using 1ccess 2lus! operate a single /urrent 1ccount from + cities. F!atu#!s

1 single /urrent 1ccount! with access from + cities in India (eparate /he4ue books for each center for easy reconciliation 2ooling of funds in the city of residence 1 cost effective product

1sset 2roducts

1.AysAyapar Wfor business enterprisesX P#o !!din" F y!a#s of $usin!ss a ti3ity /ust #!f*! t as4 0#ofit- T4! $o##o1!# /ust $! 3ou 4!d saf! $y $an( /ana"!# o# any 3a*u!d *i!nt of t4! $an() fo# #!dit 1o#t4in!ss

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A-Loans a"ainst +!/at S! u#iti!s: F!atu#!s ?se the power of your portfolio in the demat formP 1dvance against demat securities ! from I*> Aysya #ank! is an overdraft facility to use the power of your portfolio! without selling the shares. 6ou will continue to enBoy appreciation! dividends! rights! bonus and all other benefits! on your investments. F-Ho/! Loans: The I*> Aysya 5ome :oan has been carefully and thoughtfully designed. It s flexible! it s sensitive! and it s so convenient. 1nd! most of all! it s generous! in many little ways.

;ree life insurance to the extent of full term for the full loan amount ;ree property insurance for the first year (cheme for 100I funding available ;inance including stamp duty! registration fee! power F water deposits etc. ;ixed rate and floating rate options available ;loating rate loans are linked to 9I#0- @9umbai Inter #ank 0ffer -ate8 with a 4uarterly reset. 9I#0- is a transparent third party financial market index :oan repayment is E9I based. Interest will be calculated on a daily reducing method.

G-Vys Mo$i*! Ifo# Ca# LoansJ: Ays9obile car :oans come with convenient repayment options F attractive interest rates. They re4uire minimal paperwork and are approved speedily. These loans are available under Income 2rogram! (urrogate 2rogram and *o Income .ocuments 2rogram. <-Vys S1ift Co**! tion S!#3i !: /utting distance! electronically! Ays(wift /ollection (ervice! is a dynamic facility! providing 4uick! efficient! assured fiscal support across the country. 1 service that uses high" end technology! for companies! dealing in high volumes of out station che4ues. =-VysUnits:

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Ays?nits offers the depositor functional short"term disinvestments! without effecting change on the contracted rate of interest.

H-Vis 'i(! fo# t1o 14!!*!#sF!atu#!s:

/onvenient repayment options of & H 1% H 1+ H %< H '0 H '& months. :oan under income program and no"income program. )ide network of dealers. 9ultiple loan options like .own payment option! 1dvance E9I 0ption F tailor"made schemes for specific period of time.

M-VysR!nt: Ays-ent is a product for individuals! proprietorship F partnership concerns! companies F registered organization like trusts and educational institutions for availing loan under this scheme. B-S4o#t T!#/ Loans: -eaching out to the hinterlands of India! we have redefined -ural #anking in terms of products and services. 2roviding a boost to the potential existing in the rural sector! short terms loans are categorized interest these segments.

/rop :oans )orking /apital :oans to 2oultryH;isheries etc >old :oans for 1griculture 2urposes

?>- T!#/ Loans: -eaching out to the hinterlands of India! we have redefined -ural #anking in terms of products and services. 2roviding a boost to the potential existing in the rural sector! term loans are categorized interest these segments.

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2oultry .airy )ells 2ump sets TractorsH2ower Tillers 2lantation /rops

Insu#an ! P#odu ts: I%& Vysya Lif! Insu#an ! is a Boint venture between I*> >roup and The I*> Aysya #ank :td. The I*> >roup is the worldPs fourth largest financial services company and also the world s largest life insurance provider. It brings to you 1=0 years of experience and the heritage of a name trusted in =0 countries. 9ore than =0 million customers around the world have entrusted it with over O,=0 billion of their wealth. I*> Aysya :ife Insurance is here to provide you with innovative and well"designed products that effectively meet your life insurance needs. ?T4! R!assu#in" Lif! Endo1/!nt P*an-eassuring :ife Endowment 2lan Ideally! once your protection needs are met! consider a saving plan. The -eassuring :ife Endowment 2lan with r is one such offering. #esides being a savings option! it also acts as a highly reliable safety net for your family in case something happens to you. The -eassuring :ife 2lan is ideal because it gives you the incredible benefit of a r which enhances your life cover! and hence your sum assured! dramatically! every year. (o when the policy matures you can receive almost double the initial sum assured A'!st y!a#s R!ti#!/!nt P*an: The #est 6ears -etirement 2lan is more than Bust a long"term investment plan. It enables you to create a sizeable financial asset for your family! in case you re not around. #esides! this plan also gives you the freedom to live a secure and peaceful retired life. I*> Aysya :ife s #est 6ears -etirement 2lan gives you capital guarantee while protecting you from market swings. It also gives you an 0pportunity to invest in a range of investments at a lower cost. SIT.P&+MS) Tu/(u# &,

F-

Con@u!#in" *if! i**n!ss C#iti a* P*an: The /on4uering :ife 2lan is ideal because it provides protection to you and safeguards

your family s lifestyle through an easily affordable! pure risk life cover. 1nd more importantly! it covers you against ten life" threatening critical illnesses. The critical illnesses covered are cancer! heart attack! coronary artery bypass graft! stroke! kidney failure! a maBor organ transplant! brain Tumor! paralysis! coma and blindness. GC#!atin" Lif! C4i*d P#ot! tion P*an: If you have children! you must have a /reating :ife /hild 2rotection 2lan. This plan ensures that your child s future is secure in case of your untimely death. /reating :ife also creates a financial asset for your child. The /reating :ife 2lan is ideal because it provides the sum assured to your child immediately in case of your untimely death. <Fu*fi**in" Lif! Anti i0at!d 54o*! of Lif! P*an: ;ulfilling :ife 1nticipated )hole of :ife 2lan is a uni4ue plan that fulfills your need for protection! saving and investment. It gives a double benefit of a whole life cover along with regular cash returns in your lifetime.

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=-

MaDi/i8in" Lif! Mon!y 'a ( P*an: The 9aximizing :ife 9oney #ack 2lan gives you the benefits of protection and saving.

It s the perfect life span plan! since it helps you meet any large financial re4uirements during your life. The 9aximizing :ife 2lan is ideal because you receive a life cover plus periodic cash flows! which take care of your financial needs at different stages of your life. HR!1a#din" Lif! 54o*! of Lif! You# Lif! P*an: -ewarding :ife )hole of :ife 2lan is an offering that enables you to protect! save and invest. )ith this plan! you can create a sizeable financial asset to pass on to your family. The -ewarding :ife 2lan covers you for the whole of your life even after the premium paying term have ended. T!#/ +!0osits: A(s4aya +!0osits: 1 reinvestment deposits wherein a lump"sum amount is deposited at one time! and the principal and interests thereon are repaid on maturity. 1 fixed deposit account that offers reinvestment of the interest accrued on the deposits kept with the #ank. In short! interest also earns interest every 4uarter. 'u*( +!0osits: 9aking money work with value! competition! interest and dedication! providing a new threshold of opportunities in the market place. Cu/u*ati3! +!0osits: /umulative .eposit provides the facility of monthlyHperiodic savings in the account to earn higher interest than (avings #ank 1ccount customers can deposit money according to their ability to save.

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P#as4anti: 1n exclusive deposit scheme from I*> Aysya #ank for the (enior /itizens. ?nder

this scheme! your deposits of one year and above maturities earn extra interest over and above the normal rates. FiD!d +!0osit7

1 term deposit allowing for a lump"sum deposit at one time for a fixed period ;ixed .eposit offers higher interest rates to customers as compared to the ordinary (avings #ank 1ccount

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Minin" Indust#y in India

9inerals constitute the back bone of economic growth of any nation and India has been eminently endeared with this gift of nature these are many evidence that exploitation of minerals like coal! iron"ore! /opper! :ead! Ninc has been going on in the country from time immemorial. 5owever first recorded history of mining in India dates back to 1,,< when an English company for mining coal in -aniganB. 9H( John Taylor F sons >old mining in $olar >old ;ields in the year 1++0. The first oil well was drilled in .igboi the year 1+&& Bust seven years after the first ever oil well was drilled anywhere in the world Aiz. in 2ennsylvania state! ?(1 in 1+=3. 9ining activities country however remained primitive in nature Fmodest in scale up till the beginning of the current century. 5ereafter! with progressive industrialization the demand for and hence the production of various minerals gradually went up. 1fter India became independent! the growth of mining under the impact of successive five year plans has been very fast! there are ambitious plans in coal! metalliferuous and sectors to increase production of minerals during the +th five year plan and thereafter.

O0!#atin" Min!s:
India has a uni4ue blend of big and small! manual and mechanized! open cast and underground mines. The total number of working coal mines as on date are =,%! in oil sector there are %3 oil proBects excluding installations off"shore beyond territorial waters. 1s for as metalliferouses are concerned the number of mines which are returns stands at about %=00. 5owever! mines a fair estimate indicates that total number of metalliferous are about &000. Total workforce of the mining industry in India consists of about one million workers. 9inerals are essential inputs in the economic and social development of a nation. This sector plays a vital role in meeting the every re4uirement and socio"economic growth of the country. The minerals sector in India is on the threshold of maBor expansion with more and more mines being opened up. India is a leading producer and exporter for a diverse range of minerals. 9ining industry in many countries are impacted by privatization! liberalization and globalization. )hile most of the countries are eagerly looking forward to using the latest technology and machinery and e4uipment! which will shape the future of mining and minerals based industries. The mining industry has been key to the development of civilization! the industrial revolution and infrastructure of today s information age. SIT.P&+MS) Tu/(u# ,1

6a#nata(a Min!s 7 Min!#a*s

Min!#a* R!sou# !s of 6a#nata(a
$arnataka has an ancient history in mining extending to the very dawn of civilization. >ommateswara! sculptures of 5oysala and AiBayanagara Empire are the atheistics creations in different stones. $arnataka boasts of innumerable sites where ancients practiced the art and science of mining! the winning of useful metals from the mother earth. $arnataka is one of the mineral rich states of the country. It has more than <0!000 s4.kms of greenstone belts! which are known to contain vast mineral deposits such as >old! (ilver! 2latinum! /opper! .iamond Iron ore! 9anganese! /hromite! limestone! .olomite except hydrocarbons. $arnataka is well known for its >old and other precious metal resources in the country. $arnataka has great potential for explanation of >old and other precious mineral. It is also well known for iron ore deposits. The first Iron and steel plant in India was established at #hadravathi! which is now known as Aishveshwaraiah Iron and (teel :td. (imilarly the state has large deposits of chromite and manganese.

Minin" A ti3iti!s in 6a#nata(a

1t present about %0 varieties of maBor minerals and = varieties of minor minerals are being exploited in the state. =1& mining leases of maBor minerals! =,<' 4uarry leases of minor minerals have been sanctioned in the state by %00<. This includes <&= mining leases granted for ornamental granites large workable reserves of Iron! 9anganese! /hromite and >old have been identified and proved.

Ot4!# Min!#a*s:
In addition to the above! $arnataka is known to have appreciable reserves of 1sbestos! #auxite! china clay! /hromite! /opper ore! 9anganese! Muartz and (ilica! (and! Aanadium! Talc! /lay! $yanite and 9agnesite. These are some of important industrial minerals which can be exploited to establish mineral based industries in the state important mineral based industries.

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SI-%O 1. %. '. <. =. &. ,. +.

Min!#a*sKM!ta*s /ement grade lime $aolin Iron ore >old 9anganese #arnite Muartz F(ilica (oap stone /ement

Indust#i!s

/eramic! 2aper! Textile Toothpaste F 2esticides >old F extraction Iron F(teel! ;erromanganese! #attery 1luminum! -efractories >lassware! /eramics -efractories! lusecticides

Fu#t4!# S o0! fo# Min!#a* +!3!*o0/!nt:

Excluding )estern >hats! more than <0!000 s4.kms of the state is occupied by green belts which are rich in mineral deposits. These are more than 100 old workings of gold. These are reported occurrence of diamond in some part of the state.

'AC6&ROU%+
The 9ines and 9inerals @.evelopment and -egulation 1ct! 13=,! @L99.- 8 and the 9ines 1ct! 13=%! together with the rules and regulations framed under them! constitute the basic laws governing the mining sector in India. The relevant rules of force under the 99.- 1ct! are the mineral concession -ules! 13&0! and the 9ineral /onservation and .evelopment -ules! 13++. The health and safely of the workers is governed by the 9ines -ules! 13== created under the Burisdiction of the 9ines 1ct! 13=%. The 9ineral /oncession -ules! 13&0 outline the procedures and conditions for obtaining a 2rospecting :icense or 9ining :ease. The 9ineral /onservation and .evelopment -ules! 13++ lays down guidelines for ensuring mining on a scientific basis! while at the same

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time! conserving the environment. The provisions of 9ineral /oncession -ules and 9ineral /onservation and .evelopment rules are! however not applicable to coal! atomic minerals and mineral minerals. The minor minerals are separately notified and come under the purview of the (tate >overnments. The (tate >overnments have for this purpose formulated the 9inor 9ineral /oncession -ules. The Indian #ureau of mines @I#98 established in 13<+! is a multi"disciplinary government organization under the .epartment of 9ines! 9inistry of 9ines! engaged in promotion of conservation! scientific development of mineral resources and protection of environment in mines other than coal! petroleum and natural gas! atomic minerals and minor minerals. ;rom a small beginning as a purely advisory body! the I#9 has emerged into a premier national organization involved deeply into the various aspects of the mineral industry. The current functions of I#9 include promoting conservation of mineral resources by way of inspection of mines! geological studies! scrutiny and approval of mining plans and mining schemes! conducting environmental studies and environment related activities! evolving technologies for up gradation feasibility reports for mining and beneficiation proBects! preparation of minerals maps and *ational 9ineral Inventory of minerals resourcesG providing technical consultancy services to mineral industry! and functioning as a data bank for mines and minerals! and preparing of technical and statistical publications. 5eaded by the /ontroller >eneral! I#9 has six technical divisions with its head 4uarters at *agpur. There is a 9odern 9ineral 2rocessing :aboratory and 2ilot 2lant established with the assistance of ?nited *ations .evelopment programme at *agpur. I#9 has ' Nonal 0ffices! 1% -egional 0ffices and % (ub"-egional 0ffices! % -egional 0re .ressing :aboratories and 2ilot 2lants spread over the /ountry. The I#9 offices are located at 1Bmer #angalore! #hubaneshwar! $olkata! /hennai! .ehra .un! >oa! >uwahati! 5yderabad! Jabalpur! *agpur! *ellore! -anchi and ?daipurG and 2ilot plants and 0re .ressing :aboratories at 1Bmer! #angalore and *agpur.

MI%ERAL RESOURCES OF 6AR%ATA6A

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S*-%o1. %. '. <. =. &. ,. +. 3. 10. 11. 1%. 1'. 1<. 1=. 1&. 1,. 1+. 13. %0. %1. %%. %'. %<. 1sbestos #auxite /hina clay /hromite /opper /orundum @t8 .olomite ;eldspar ;ire clay ;ullers earth @t8 >old @t8 0re

Min!#a*

R!s!#3!s Iin P>>> tonn!sJ +%+%<=,.00 <=+31.%3 %=,01&.<& %11<.'= ,1<+.00 1=+30.<= =<30,<.<< ='&3&&.'0 1+1+1.0% %11331&.00 1&,,'%1<+.00 3,<00&=.&= &1&%00.00 1'1=&&'.'' '+<'3'3.00 <''1%''.00 =1<''+&%.00 &<&=.13 =,,,0.00 11%'=3.03 =3,=1'+.00 %%==.%0 +%1%03&.00 10%=%0.00

>ranite @L000 /um8 >raphite Iron 0re @5ematite8 Iron 0re 9agnetite $yanite @t8 :imestone 9agnesite MuartzHsilica sand 9anganese (ilver @t8 0re TalcH(oap (tone Titanieferrous 9agnetite Aermiculate @t8

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IMPORTA%T MI%OR MI%ERALS PRO+UCE+

S*-%o1. %. '. <. =. Min!#a* #uilding (tone 0rdinary sand (habad (tones (ift #rick earth >ranite 9t. /ube Quantity Min!d 1'1%=%< 3+'0% ,,=<&'< <=+0 1,0,1<

MI%ERAL PRO+UCTIO% I% 6AR%ATA6A AS O% F?.>F.A>>G

S*-%o1. %. '. <. =. &. ,. +. 3. 10. 11. 1%. 1'. 1<. 1=. 1&. 1,. Min!#a* #auxite /hromite >old @in $gs8 (ilver @in $gs8 Iron 0re 9anganese 0re ;ire /lay .olomite ;elsite $aolin $yanite :ime (hell :imestone 9agnesite (ilica (and -ed 0chre (hale P#odu tion in ton!s =+3&0 3,'+ '<=0 '', '<1+,%&& '=3%+< '1%0= %&%%=1 3%0 =+%, '01, 3%+'& 1'=3133& 13&3' 1==+,, <00 &,1<'& = ' 1 < < , *1 , 1 % & 1 < 10 , < *1 A** India Position

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FI%A%CIAL A%ALYSIS
In o/!
)ith nearly ,< years of experience in the #anking industry! the #ank income is substantially is showing increasing income till %00<. #ut this year there is decrease in income F it stood at -s.11! 110!,1+ @in L0008. Table below shows the income for past & years.

Ta$*! A: In o/! f#o/ A>>> to A>>G:

In o/!
U-s in! 000V 3!+0=!&'3 10!1'1!',& 1%!0'3!%&' 1%!&%+!1,0 1%!+,<!1<= 11!110!,1+

Y!a#s

%000 %001 %00% %00' %00< %00= &#a04 A

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Income over the years

14)000)000 12)000)000 10)000)000 8)000)000 6)000)000 4)000)000 2)000)000 0 2000 2001 2002 Year 2003 2004

P#ofit
The division is continuously making good profits since its incorporation. #ut this year there is loss of -s @'+1.,+8 millions during %00<. loss in profits may de due to the decrease in the interest rates and some provisions being made. Table below shows profits F loss made by the #ank during past 10 decades.

Ta$*! F : P#ofits f#o/ ?BG> to A>><

U-s in 9illionsV

Y!a#
13<0 13=0 13&0 13,0 13+0 1330 %000 %001 %00% %00' %00< %00= &#a04 F

P#ofits
0.001 0.03 0.1' 0.,< 1.1' =0.'= <<'.1 ',1.3 &+,.= +&'.= =30.01 '+1.,+

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Profits Over the year

1000 900 800 700 600 500 400 300 200 100 0 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 Year

Ratio Ana*ysis
Table <! shows key ratios for I*> Aysya from %000 to %00=.

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P#ofita$i*ity Ratios These ratios measure operating efficiency of a #ank. 9aBor profitability ratios are7 O0!#atin" Ma#"in7 This ratio is calculated by dividing operating profit @E#IT8 sales. The operating margin for the #ank is showing a decreasing sign throughout the years. This ratio stood at =,.&+I during %00<. %!t P#ofit Ma#"in7 This ratio is calculated by dividing *et profit @21T8 sales. This ratio is showing a cyclical trend over the years. It stood at <.+&I during %00<. R!tu#n on Ca0ita* E/0*oy!d IROCEJ7 This ratio is calculated by dividing *et 2rofit by /apital Employed or *et assets. This ratio is also showing a cyclical trend over the years. This ratio for %00< is 0.=1I. Ea#nin" Po1!#7 This ratio is a measure of operating profitability. It is calculated by dividing operating profit by average total assets. This ratio is decreasing over the years. It stood at =.33I during %00<. R!tu#n on E@uity7 This ratio is a measure of profitability of e4uity funds invested in the firm. It is regarded as a very important measure because it reflects the productivity of the ownership capital employed in the firm. It is calculated by dividing net profit by net worth. This ratio for the bank is showing a cyclical trend over the years. -0E during %00< was +.',I.

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Ta$*! G: 6!y Ratios Fo# I%& Vysya 'an( f#o/ A>>> to A>>G

SL 1 % '

PARTICULARS LIQUI+TY RATIOS /urrent -atio Muick -atio :i4uid 1ssets -atio LEVERA&E RATIOS

A>>> 1'.&, 1'.&, %.%3

A>>? 1%.01 1%.01 %.&0

A>>A 1'.=% 1'.=% %.10

A>>F 1<.&% 1<.&% 1.&1

A>>G 1%.,= 1%.,= 1.00

1 % '

.ebt" E4uity -atio .ebt to 1ssets -atio Interest /overage -atio TUR%OVER RATIOS

<3.<+I '.%,I 1.1'

+<.1<I 1,=.%0I 1'%.1%I 1%3.0<I =.<1I 1.03 11.%%I 1.03 +.0=I 1.1' ,.'1I 1.03

1 %

;ixed 1ssets Turnover Total 1ssets Turnover PROFITA'ILITY RATIOS

%.3, 0.11

%.3% 0.10

'.=& 0.11

'.&& 0.11

'.+= 0.10

1 % ' < =

0perating 9argin -atio *et 2rofit 9argin -atio -eturn on /apital Employed Earning 2ower -eturn on E4uity

,+.33I 3.'%I 1.10I +.&,I 1=.<+I

,,.%,I '.&+I 0.<0I ,.,1I =.,1I

&,.%%I '.=+I 0.<'I ,.==I &.%+I

&1.%3I &.00I 0.,0I &.3<I 10.,%I

=,.&+I <.+&I 0.=1I =.33I +.',I

SOURCE: Computed from annual reports of I ! Vysya "ank #td$

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Su//a#y of My Ass!ss/!nt:
The extent of finance is ,0I of cost in IA#: on an average! where as the extent of finance in other #anks is &=I on an average only. In the light of the above study IA#: performance appears to be good. *umber of entrepreneurs in $(;/ is comparatively higher since it comes under special category. In other banks the number of entrepreneurs is less than 10! IA#: also comes under this category! as these #anks come under general banking operations. There is uniformity in repayment facility in all the #anks i.e.! '"= yrs expect in $(;/ where it is =", yrs. The reason is that $(;/ is exclusively meant to finance industries F business sectorsG it has no other social obligations. 1verage domestic rate of interest varies from 1%.%=I to 1'.0&I F in the export sector it is ,I. 1s compared with the above the domestic rate of interest IA#: varies from 11.%=I to 1'.%=I F in the export sector it is ,.=I. 1verage extent of finance to working capital is <0I in the other banks as compared with above figure! the extent of finance to working capital in IA#: is ,0I which is really a huge sum of money! the bank is financing to the mining sectors. The average number of units financed by the banks other than the IA#: is 1<. Though the number of units financed by IA#: is = only! the assistance provided so far amounts to -s.100 crores to the working capital F -s.10 crores under term loan. The other banks have financed -s.1+ crores on an average to the working capital F -s.'%.13 crores under term loan.

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;rom the above statistical data! it can be seen that the assistance by IA#: to the mining sectors is very much higher than the assistance given by other banks. In the mining sectors the companies are switching over to other lending institutions other than $(;/ due to reduced rate of interest F liberal terms F conditions.

/ase study7 MKS A'C Minin" Co- P3t Ltd?- 'ORRO5ERK CRE+IT 'ASE 9Hs 1#/ 9ining /o. 2vt :td. Is a company formed under companies 1ct 13=&. The company is doing extraction and sale of Iron ore and fines including export sales. The company has &= acres of mines in 1#/ about in #ellary. The lease of the mines is valid till %01,. The company supplies ores and fines to local buyers @within India8 and export to /hina. Though the company was incorporated in %00% actual commercial activities started during the year %00' only. The company has shown good results for the year %00'"0<. .etailed fin sped is enclosed. The company was doing local sales till .ecember %00'. They have entered into the export market from the past one"year due to spurt in demand from /hina. The sudden spurt in exports to /hina is due to following reasons7 18 (hifting of some steel industries to /hina from $orea and Japan because of the open market conditions and cheap labour cost. #8 /hina has become member of the )orld Trade 0rganization. /8 Infrastructure .evelopment is being given more thrust due to the ensuing 0lympics to be held in %00+ which has increased demand for iron and steel. The company is enBoying credit facilities with /entral #ank of India to the extent of -s. 1'0.00 lakhs //. The #1: 0( is in credit. The company been banking with our (astrynagar branch through their current account for the past & months. The operations in the account have been satisfactory. 1s per the statement of account submitted for .ec %00<" Jan %00= the company is maintaining an average credit balance of over -s. ,0.00 lakhs. The balance 0( in /1 as on date is -s.+1.=% lakhs. The .irectors and their net worth are as follows7 (l *o. *ame of the .irectors *et worth in lakhs 1 #.A. 9anBunath 2atil ,+.&' % >. Janardhana 2atil +=.0, ' >. :akshmi 1runa %+.3% SIT.P&+MS) Tu/(u# +'

< .. *agaraB 2atil 1<0.+, = #. (reeramulu 1+<.0= The current account is opened on 1<.0&.%00<. There are no instances of che4ue returns in the account. The average balance in account is around -s.,0lakhs.

A- RELATIO%SHIPK'USI%ESS RATIO%LE a. Relationship The company is having current account since June 0' and maintaining a average balance oHs -s.,0.00lakhs. )e have recently sanctioned a #.H:/ limit of -s.1=0.00lakhs and negotiated a bill against :/ opened by our 9ount -oad! /hennai branch. The same is realized on due date. The company has taken loan against .eposits of -s.1%0.<<lakhs for purchase of machinery. 2resent balance outstanding is -s.1%'.3&lakhs @including interest8.the same will be closed on release of Term loan re4uested now. )e have also sanctioned #> of -s.1+.'' lakhs against 100I deposit margin favoring /ommissioner of /ustoms for import of machinery. They are presently enBoying // limit of -s.1%=lakhs with /entral #ank of India. The account is presently running under /redit balance. 0n constant persuasion! they have agreed Export /redit limits from us. They are yet to decide on shifting the // limits from their present #ankers. b. Business Rationale The transaction will increase the advances of the branch and also interest income of the bank. -ecently they have invested -s.+00 lakhs in -#I bonds through our #ank and we have earned an income of -s.' lakhs from this single transaction alone. In future also! they have assured to invest through our #ank only. F- PURPOSE OF APPLICATIO%: 2urpose of the application is to 1. (anction of a term loan of -s.1&=.00 lakhs for purchase of machineries at IA-@against applicable rate of IA-- Y%I for ;-- E<8 i.e.! reduction by %00bps repayable in 1+ monthly installments. Interest to be recovered on a monthly basis! as and when debited. %. (anction of 2/: of -s.1000 lakhs at IA-- E<.00I @as against applicable rate of IA-- E '.=0I8 i.e.! reduction by %=bps. '. (anction of ;.# limit of -s.1000.00 lakhs @with sub Elimit of -s.<00 lakhs for ?sance #ills with maximum <= days ?sance8 for export of Iron ore against :/s opened by prime banks at IA-- E<.00I @against applicable rate of IA-- E'.,=I8 i.e.! reduction by %=bps. -educed rates are re4uested since other #anks! like (#I and /entral #ank of India are offering these facilities at ,.00 to ,.=I. G- FI%A%CIAL A%ALYSIS a. istori!al The company has commenced its operations during 1pril 0'. SIT.P&+MS) Tu/(u# +<

The company has done sales of -s.'=.=% crores for %00'"0< out of which -s.<.&, crores is export. (ales in tonnage terms during %00'"0< were <%0=%1 9 Tons and during %00<"0= till date! it is &+=<=& 9 Tons. The gross profits is ,.,I and *et profit is %I /urrent assets consist mainly of cash and inventory. (ince the company is engaged in 9ining value addition to stocks will be only after its extraction from mines and transported to port for shipment. 1s on '1.0'.%00< the fixed assets are less because the company was doing only domestic sales on a small scale and selling to exports within India. They were hiring machineries. The company has been sanctioned a // limit of -s.1%=.00lakhs by /#I and the limit is rarely being used now as they are concentrating on exports. They have also availed one" time 2/ limit of -s.1=0lakhsduring June %00' from /entral #ank for their export business. 0f which an amount of -s.3.&3 lakhs is outstanding as on '1.0'.0<. .uring *ovember %00< they have done export sales of -s.'+ crores for which no finance was availed. Export was done out of own funds and #ill was sent on collection basis. 1s for as domestic sales is concerned! the realization period is around %H' weeks. Export receivables depend on terms of :/. (ince most of the :/s are on sight basis! realization time is around %0"'0 days. /reditors are the payment to be made to machinery suppliers! fuel and oil for machines etc. it is only <.'I of the total liabilities. 0ther current liabilities include port charges payable and IT payable. 0ther liabilities are the advances received from their customers in the form of security deposits for supply of Iron ore to the extent of -s.=3=.%% lakhs. The same has been adBusted against sales subse4uently. :oans and advances of -s.'%0.3, lakhs for '1.0'.0< includes 1dvances paid to .irectors! (taff advances! .eposits with -ailways and Telephone department and an amount of -s.%%3.33 lakhs paid to (ree -aghavendra /onstructions E their associate concern for utilizing the services for extraction of ore. This amount is adBusted against the #ills submitted by the firm. The authorized capital of the company is -s.1=0.00 lakhs. Issued paid up capital is -s.10.00 lakhs and reserves and surpluses is -s.&&.0% lakhs. E#IT.1 for %00'"0< is -s.1'1.'' lakhs and net profit is -s.&&.0% lakhs. Interest coverage ratio is <.3&. /urrent ratio is 0.33.TI#.HT*) is 0.1+. *et cash after operations is Yve for '1.0'.%00<. b. "uture (ales proBected for the ' years ending 0= and 0& is -s.3=00.00 lakhs! -s.10=00.00 lakhs. 1s on date the company has already achieved sales of -s.&%=%.1% lakhs and is expecting to cross -s.3=00.00 lakhs for '1.0'.0=. >ross profit proBected is around 1="1+I and net profit around ,.=I due to higher margins in the export market. *et profit as per provisional financials for '1.1%.0< was -s.<0+.%, lakhs @&.='I8.

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/urrent assets consist of inventory! cash and receivables. It forms ,=I of the total assets. The company has added machineries of value -s.%'3.00 lakhs already and has re4uested for the loan for additional machineries of value -s.%0'.00 lakhs. 1s the business of the company is increasing they need more machinery for their operations. ;1 is around %0I of the total assets. Though the firm has re4uested for 2/: F ;.#* limit of -s.1000.00 lakhs each same is not shown in the proBected #( as the liability will be existing for %0"%= days at a time. 0nly the // limit is reflected in the proBected #(. :ong term debts include term loan from bank and security deposit received from the local buyers. The net worth of the company is proBected to increase consistently on account of addition of the profits to reserves and surpluses. 1s per the provisional financials provided fro '1.1%.0<. The net worth of the firm stood at -s.<+&.'0 lakhs and ?nsecured loans from .irectors stood at -s.&+=.&& lakhs. (ince most of the profits are proposed to be retained in the business itself! they are not in favour of subordination of ?(:s. Interest coverage ration for future years is comfortable and net cash after operations is Yve for %00&. /urrent ration is around 1.%1. TI#.HT#) is decreased on account of increase in T*).

<- RIS6 APPRAISAL a. Business Risk and "uture Outlook The firm has its own mines taken on lease for a long time. The lease is till %01,. The ore is exported through Aishakapatnam and /hennai ports. The main buyers are in china. 1s the export is only through :/s opened by prime banks payments are assured. There are around <3 mining ?nits in #ellary! 5ospet and (andur #elt. 0ut of these about 1% are maBor players. (ome of them are #ellary Iron 0res 2vt. :td! #harat 9ines F 9inerals! .eccan 9ining (yndicate! 5othur Traders! $arignur 9inerals and 9ining Industry! (andur 9anganese F Iron 0re :td.! A( :ad F (ons! Aibhutigudda 9ines 2vt. :td.! etc. Though there are many competitors! 1#/ 9ines have ores with good L;e content upto &,I which is considered to be of good 4uality. b. Manage#ent Risk The directors are well educated and have experience in mining. They will be able to manage the affairs. They also appointed an engineer for managing the mines. 1s such the management risk is low. !. Stru!ture Risk The limit and -0I are as per our bank norms and considering the competition. d. $ndustry Se!tor %on!entration #ellary and 5ospet are having many mines and companies doing this business. #ecause of good demand their business is not affected.

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a. %ountry Risk &delete i' n.a.( The export is to /hina and there may be a little risk. #ut as the export is against :/s opened by prime banks the risk is low. b. )n*iron#ental Risk &delete i' n.a.( *1 !. Regulatory Risk &delete i' n.a.( >ovt. policies in India are favourable for export at present. d. $NG +ysya Bank,s Reputation Risk &delete i' n.a.( *1 e. Spe!i'i! -urpose o' .sset %ollateral &delete i' n.a.( *1 '. .ny Other Risk &delete i' n.a.( *I: =- TA6E OUT The term loan will be repaid out of sales and profits. 2/: and ;.#* are self li4uidating. /ollateral property is located in #ellary in a prime place. -eliability is good. H- COVER K COLLATERALS A%+ COVE%A%TS 2rimary (ecurity The 2/: is covered by primary security of stocks of Iron at mines! stock in transit! finished goods stored at various points with %=I margin. ;or ;.#* E Export documents covering export of Iron by irrevocable prime bank :/s. ;or Term loan " 5ypothecation of two Aolvo :oader 9odel %0E costing -s.1&3.'% lakhs and 5ypothecation of one Aolvo 5ydraulic excavator costing -s.=1.,1lakhs. /ollateral security a8 E9 of -esidential house situated at 2lot no.1<! >aneshnagar! (iruguppa -oad! #ellary in the name of sri. . 2arameswara -eddy valued approximately at -s.,= lakhs. b8 E9 of 1,.%= acres of landed property at (urvey no.=3,"#%aHaHc! *ear T # (anitorium! #ellary! situated on the :ink -oad linking *5 *o.&' and #ellary" #angalore -oad! standing in the name of (ri. . 2arameswara -eddy valued approximately at -s.&30 lakhs.

COVE % TS
The term loan should be released only after obtaining! bills! invoices! receipts etc of the machineries. ;or the machinery already purchased! the release of Term loan will be by way of reimbursement. #efore release of 2/: F ;.#* branch to obtain permission giving details of the :/.

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2/: F ;.#* should be released only against bills drawn under :/s opened by prime banks. #ranch should obtain E/>/ cover for the 2/: F export bills negotiated under :/. #ranch to obtain fresh valuation report and legal opinion on the propertied offered as security from our panel Aaluer and 1dvocate. #ranch to submit ;orm no.'11 for the propertied offered as security. #ranch to obtain latest (earch -eport from -0/. #ranch to ensure that necessary charges are recorded with -0/ within stipulated time. #ranch to ensure that necessary formalities with respect to change in .irectors are completed. /opy of ;orm"'% to obtained and kept on record.

M- POLICY +EVIATIO% /urrent ratio is 0.33 as against minimum 1 as per credit policy. The deviation is very marginal. The same is expected improve to 1.%1 for '1.0'.0=. E#IT.1H(ales is <I as against minimum =I as per credit policy. The margins were thin since they were doing only local sales till .ecember %00'. 5owever since they have entered into the export market! the margins are proBected at 1'I for next year. -0I proposed for term loan is %00 basis points less than applicable rate. -0I proposed for 2/:H;.#* limit is %= bps less than the applicable rate. B- RIS6 RATI%&KRIS6.RE5AR+KPROFITA'ILITY a. Risk Rating The /-- rating is ' and ;-- rating for term loan is < and 2/: it is '. b. Re/ards 0 -ro'itability The transaction will increase the advances of the branch and interest income and /E# income will also increase. ?>- CO%CLUSIO%KRECOMME%+ATIO% In view of the viability of the proBect we recommend the following limits7 (lno *ature of facility 1mount of facility -ate of interest 9argin 2eriodHrepayment 1 ;?*. 1 Term loan 1&=.00 IA-%=I % ;.#* 1000.00 IA--"<I *I: @(ub"limit for ?sance bills8 @<00.008 IA-- E<I *I: ' 2/: 1000.00 IA--"<I %=I tenure Total ;und @18 # *0* ;?*. 1 Total *on fund @#8 %1&=.00

1+months (ight :/s <= .ays :cbasis 30days.

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(I..1>1*>1 (/500: 0; 91*1>E9E*T

/0-20-1TE ET20(?-E F :E1-*I*> )EE$:6 -E20-T *ame of student *ame of 0rganization )eek I @.ates8 @from E to8 )ork done during the week

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E4uipments usually financed by different banks7

1. :orries %. /ranes '. Tippers <. Jeeps =. Excavators &. /rushers ,. :oaders +. .rilling E4uipments 3. /onveyor (ystems 10. (creening 2lants 11. Earth 9oving machines 1%. )agner s

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