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Rutger Koopmans
General Manager
ING Wholesale Banking Netherlands
9 November 2005, Brussels
Key message
• India is ‘hot’, but already well known to ING
• “India” hype may lead to losing sight of key issues
• The long term view could become ‘a fata morgana’:
‘the long and winding road’ (a steep learning curve)
• Embrace the cultural differences with knowledge
• Keep pace & manage expectations: things to do!!
1
ING’s perspective: ING in India
• India is a rapidly growing economy with one of the fastest
growing financial services industries in the world
• India is the second fastest growing insurance market in Asia,
second only to China
• ING has been in India since 1990 and is the only global player
in banking, asset management & insurance with non-Indian
management control
• ING Vysya Bank has the largest banking network amongst
international players in India
• ING Vysya Life Insurance is one of the fastest growing private
players in the Indian insurance market
2
ING Group in India – Key Milestones
3
ING Vysya Bank Overview
Key statistics
Branches: 454
Employees: 4,871
ATMs: 79 (access to more than
9,000 shared ATMs)
IVB Position (Private + Foreign Banks)
North & East Region
Position
# of Branches- 33
West Region
# of Branches- 30
South (ex AP)
# of Branches- 193
AP Region
IVB Position (Private
# of Branches-196
Regional Offices: 11
Universal banking franchise
Wholesale Bank
Bank
Share
1
2
3
4
5
6
7
8
9
10
11
12
ICICI Bank
HDFC Bank
UTI Bank
Citibank
Stanchart
J&K Bank
HSBC
Federal Bank
IndusInd Bank
ING Vysya
IDBI Bank
Karnataka Bank
4.3%
1.9%
1.3%
1.3%
1.3%
1.2%
1.0%
0.9%
0.7%
0.7%
0.6%
0.6%
17
ABN Amro
0.4%
21
Bank of Punjab
0.3%
33
BNP Paribas
0.1%
Market share based on size of deposits as on 31/3/04
Retail Bank
• Corporate & Investment
Banking
• Branch Banking
• Emerging Corporates
• Agri & Social Banking
• Banks & Financial Institutions
• Private Banking
• Financial Markets
• Distribution & Marketing
• Small & Medium Enterprises
4
ING Vysya Bank Capabilities
•
Leverage unique position as the first “Indian International” bank
•
Combines strengths of the erstwhile Vysya Bank and ING Group to
create an integrated platform delivering a complete range of banking
products to Indian and Global clients
• International Investment Banking
Capabilities
• Strong Rupee Balance Sheet
• Broad based India presence
• Strong Corporate Banking Franchise
• Wide commercial banking suite
• Global Network
Integrated approach allows ING Vysya Bank to follow a client centric approach and offer a
range of products and services leveraging local and international strengths
5
India: Strong Macroeconomics Fundamentals
GDP Growth (%age)
Exports & Imports (USD bn)
17,000
120
+6.5%
+4.0%
(USD bn)
14,000
100
+6.9%
15,000
+8.2%
13,000
12,000
65
58
60
63
78
70
53
45
40
2001/02
2002/03
2003/04
2004/05
2005/06F
2001/02
Real GDP
135
150
71
51
2002/03
2003/04
2003/04
2004/05F
2004/05E
2005/06F
Imports
Index of Industrial Production
103
2001/02
2002/03
Exports
FX Reserves (USD bn)
160
140
120
100
80
60
40
20
0
80
80
20
11,000
USD bn
(INR bn)
16,000
109
97
2005/06E
220
200
180
160
140
120
100
80
60
40
20
0
167.00
188.70 +8.3% 204.55
176.60
+6.9%
+5.7%
2001/02
2002/03
2003/04
FX Reserves
Note: Index of Industrial Production, Base 1993-94 = 100
Source: Economic Survey, Reserve Bank of India, Forecasts - Brokerage Report
6
2004/05
India: the challenges of a growing economy
•
High fiscal deficit
•
Inflationary pressure
•
Increasing government debt burden
•
A strong democracy, slow decision making process
•
Weak infrastructure (roads, airports, water management)
•
Maintaining pace of reform (upgrading public systems)
•
Bureaucracy, corruption, complex/antiquated regulations
7
“India” beyond the opportunities
•
Keep a close eye on these factors
•
Do not get hung up in long-term scenario
predictions
•
Focus on how to realize the “India” challenge
8
Embrace the differences
•
India has a unique cultural and religious heritage
•
It takes time to understand the history, the social
demography and the cultural values
9
Adopt and Adapt to the changes
• Indian businessmen in Europe have to adapt to a
different European outlook on India
• Business relations have changed and will change, a
new balance will occur
• Indian businessmen are part of ‘the Indian hype’ but:
don’t overlook Europe’s potential
10
Keep pace & Manage expectations
•
India is managing growth in a careful and diligent
way; manage your expectations in the same way
•
Looking ahead, the potential for economic and
political stability in India is enormous, but we must
be appreciate and respect that the road ahead
inhibits a steep learning curve
•
The outcome is clear, but there is a way to go!
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