ING Vysya Bank

ING Vysya Bank was a privately owned Indian bank headquartered in Bengaluru that operated across retail, wholesale, private, agricultural and rural banking. Its modern identity emerged from a long relationship between Vysya Bank and European financial institutions, particularly Belgian bank Banque Bruxelles Lambert (BBL). In 1995, Vysya Bank entered a strategic alliance with BBL and established an investment-banking joint venture involving KPMC Peat Marwick International and MC Securities, BBL's London investment-banking subsidiary. When ING Group acquired BBL in 1998, it inherited BBL's contractual and joint-venture interests in Vysya Bank, bringing the Indian institution into ING's international network. The relationship expanded beyond shareholding and investment banking. In 1999, Vysya Bank worked with ING Insurance to distribute life-insurance products in India and acquired a 26 percent interest in ING Asset Management Company. In 2000, Vysya Bank, ING Insurance and the Damani Group formed a life-insurance joint venture. The arrangement was notable as an early Indian bancassurance collaboration, combining bank distribution with insurance products. In 2002, Vysya Bank's board and the Reserve Bank of India approved a formal combination with ING Group. The transaction allowed ING to increase its equity holding under Indian banking rules from 20 percent to 44 percent and led to the ING Vysya Bank identity. Peter Alexander Smyth and Jacques PM Kemp joined the board, while Bart Hellemans became chief executive and managing director and G. Mallikarjuna Rao became chairman. The combination was described as the first merger between an Indian bank and a foreign bank. After the formal integration, the bank broadened its product and distribution platform. Its retail business offered current and savings accounts, deposits, consumer lending, wealth-management services, rural and agricultural finance, insurance distribution and money-transfer services. The private-banking unit followed an advisory-led model and added portfolio-management capabilities. Wholesale banking served companies and financial institutions through working-capital finance, trade and transaction services, foreign exchange, term lending and cash management. Agriculture and rural banking included farm and allied-activity lending, gold loans, self-help-group finance and government-sponsored lending programs. The bank also developed partnerships and products aimed at widening its customer base. Western Union worked with ING Vysya on inbound money transfers, Toyota partnered with it on vehicle financing, and Madras Fertiliser used its rural distribution network in a life-insurance co-marketing arrangement. ING Vysya introduced products such as the Orange savings account, endowment policies, a cheque account for mid-sized businesses and a proprietary online money-transfer service. By March 2013, ING Vysya was described as India's seventh-largest private-sector bank, with assets of approximately ₹548.36 billion and more than 1,000 outlets, including 527 branches, serving over two million customers. Its brand received recognition in Indian private-bank trust surveys, including an Economic Times Brand Equity–Nielsen ranking among the five most trusted private-sector banking brands in 2011. The bank's independent existence ended through an all-stock amalgamation with Kotak Mahindra Bank. The proposed merger was announced on 20 November 2014. The Reserve Bank of India approved it with effect from 1 April 2015, creating what was described at the time as India's fourth-largest private-sector bank. The integration process was completed in May 2016, after which ING Vysya Bank no longer operated as a separate banking brand.

ING Vysya Bank's development was rooted in Vysya Bank's Indian banking operations and its internationalization during the 1990s. In 1995, Vysya Bank entered a long-term strategic alliance with Banque Bruxelles Lambert, a Belgian bank. The relationship included an investment-banking joint venture involving KPMC Peat Marwick International and MC Securities, BBL's London investment-banking subsidiary. ING Group acquired BBL in 1998 and thereby assumed its interests connected with Vysya Bank. The relationship expanded into insurance and asset management. In 1999, Vysya Bank worked with ING Insurance to market and distribute life-insurance products in India and acquired a 26 percent stake in ING Asset Management Company. In 2000, Vysya Bank, ING Insurance and the Damani Group established a life-insurance joint venture. This was an early example of bancassurance in India, using a bank's customer and branch network to distribute insurance products. In 2002, Vysya Bank's board and the Reserve Bank of India approved a formal combination with ING Group. Indian regulations permitted ING to increase its holding from 20 percent to 44 percent. The resulting institution adopted the ING Vysya Bank name, with Peter Alexander Smyth and Jacques PM Kemp joining the board. Bart Hellemans became CEO and managing director, while G. Mallikarjuna Rao became chairman. The transaction was characterized as the first merger between an Indian bank and a foreign bank. The post-merger bank pursued a multi-line model. Retail banking covered deposits, transaction accounts, consumer credit, wealth management, insurance distribution and rural finance. Wholesale banking served companies and financial institutions through working-capital lending, term finance, trade services, foreign exchange, electronic banking and cash management. Private banking used an advisory-oriented approach and later included portfolio-management services. Agricultural and rural banking provided finance for farming and allied activities, gold loans, self-help groups and government-backed schemes, as well as loans for poultry, dairy and cold-storage businesses. The bank developed several external relationships during this period. Western Union partnered with it for inbound money transfers, Toyota worked with it on vehicle finance, and Madras Fertiliser collaborated on rural life-insurance distribution. ING Vysya also introduced endowment policies, the Orange savings account, a mid-sized-business cheque account and its own online money-transfer service. Leadership changed several times after the formal merger. Ned Swarup became CEO and managing director in 2005. Vaughn Richtor took the role in 2006 and, during his term, the bank went private and delisted from the Bangalore Stock Exchange while entering private banking and portfolio management. Shailendra Bhandari became CEO and managing director in 2009. Arun Thiagarajan was nominated chairman in 2010, succeeding K. R. Ramamoorthy. By March 2013, the bank had more than 1,000 outlets, including 527 branches, and served over two million customers. It was described as India's seventh-largest private-sector bank, with assets of approximately ₹548.36 billion at that date. ING Group held 44 percent, while Aberdeen Asset Management, ChrysCapital, Morgan Stanley and Citigroup were also identified among significant institutional shareholders. In the same period, ING announced plans to sell its stake in the Indian insurance and investment-management businesses associated with ING Vysya Life Insurance. On 20 November 2014, ING Vysya Bank and Kotak Mahindra Bank announced an all-stock merger. The Reserve Bank of India approved the transaction with effect from 1 April 2015. The combined institution was described as India's fourth-largest private-sector bank. The merger process was completed in May 2016, ending ING Vysya Bank as a standalone institution and transferring its banking operations into Kotak Mahindra Bank.

• 2016

  Standalone operations end

  [1]ING Vysya Banken.wikipedia.org

  The merger integration was completed in May, ending ING Vysya Bank as a separate institution.

• 2015

  Merger takes effect

  [1]ING Vysya Banken.wikipedia.org

  The Reserve Bank of India approved the Kotak Mahindra Bank amalgamation with effect from 1 April.

• 2014

  Merger agreement with Kotak Mahindra Bank

  [1]ING Vysya Banken.wikipedia.org

  ING Vysya Bank agreed to an all-stock amalgamation with Kotak Mahindra Bank.

• 2006

  Delisting and private-banking expansion

  [1]ING Vysya Banken.wikipedia.org

  The bank went private, delisted from the Bangalore Stock Exchange and entered private banking and portfolio management.

• 2002

  ING Vysya Bank created

  [1]ING Vysya Banken.wikipedia.org

  The formal combination of Vysya Bank and ING received board and Reserve Bank of India approval, creating the ING Vysya Bank identity.

• 2000

  Bancassurance joint venture formed

  [1]ING Vysya Banken.wikipedia.org

  Vysya Bank, ING Insurance and the Damani Group created a life-insurance joint venture.

• 1998

  ING acquires BBL

  [1]ING Vysya Banken.wikipedia.org

  ING Group's acquisition of BBL transferred BBL's contractual and joint-venture interests in Vysya Bank to ING.

• 1995

  Strategic alliance with Banque Bruxelles Lambert

  [1]ING Vysya Banken.wikipedia.org

  Vysya Bank entered a long-term alliance with Belgian bank Banque Bruxelles Lambert and established an investment-banking joint venture connected with BBL.

A nationally distributed Indian private-sector bank combining ING's international financial-services capabilities with Vysya Bank's established Indian banking network. The brand competed through broad retail coverage, advisory-led private banking, corporate services and rural-finance reach.

• Banking

  Retail banking

  The retail franchise included savings and cheque accounts, deposits, consumer loans, wealth-management services, insurance distribution and money-transfer services. Its Orange savings account was promoted with additional accident-related benefits. The business was supported by a broad branch, office and ATM network serving consumers across India.

• Wealth management · 2006

  Private banking

  ING Vysya's private-banking operation used an advisory-led model for affluent customers. It emphasized specialized market research and tailored offerings, and was extended with portfolio-management services after the bank entered private banking during the 2000s.

• Corporate banking

  Wholesale banking

  The wholesale platform served corporate customers, emerging businesses, banks and financial institutions. Its services included working-capital finance, trade and transaction banking, foreign exchange, term loans, electronic banking and cash management, organized across corporate and investment banking, emerging corporates, financial institutions and financial-markets activities.

• Rural finance

  Agriculture and rural banking

  This business financed agriculture and allied activities, including poultry, dairy and cold-storage operations. It also offered gold loans, self-help-group lending and finance linked to government-sponsored schemes. The bank expanded agricultural lending in parts of North and Central India, including Rajasthan, Uttarakhand, Maharashtra, Gujarat and Madhya Pradesh.

• Insurance distribution · 1999

  Life-insurance distribution

  Through its relationship with ING Insurance and associated joint ventures, the bank distributed life-insurance products through its banking network. Products and distribution initiatives included endowment policies and rural outreach through the network of Madras Fertiliser.

• 2014

  All-stock merger with Kotak Mahindra BankM&A

  Background

  ING Vysya Bank and Kotak Mahindra Bank pursued a combination to consolidate their private-sector banking operations.

  Action taken

  The institutions announced an all-stock amalgamation on 20 November 2014.

  Aftermath

  After regulatory approval effective 1 April 2015 and completion of integration in May 2016, ING Vysya Bank ceased to exist as a standalone bank.

  Source

• 2006

  Move to private ownership and private bankingStrategy

  Background

  Under CEO and managing director Vaughn Richtor, the bank reviewed its ownership and service strategy.

  Action taken

  ING Vysya went private, delisted from the Bangalore Stock Exchange and entered private banking and portfolio management.

  Aftermath

  The bank shifted further toward a privately controlled, multi-segment financial-services model.

  Source

• 2002

  Formal combination with ING GroupM&A

  Background

  ING had inherited a strategic relationship with Vysya Bank through its acquisition of Banque Bruxelles Lambert and sought a formal banking combination within Indian regulatory limits.

  Action taken

  The Vysya Bank board and the Reserve Bank of India approved the transaction, allowing ING to raise its equity holding from 20 percent to 44 percent and creating ING Vysya Bank.

  Aftermath

  The new bank combined an Indian private-sector banking platform with ING's international financial-services network.

  Source

1. 1ING Vysya Banken.wikipedia.org