SUMMER INTERNSHIP PROGRAM

PROJECT PROPOSAL

1) PROJECT PROPOSED

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 BUSINESS BANKING SOLUTIONS FOR SMALL &
MEDIUM ENTERPRISES

2) DESCRIPTION OF THE PROJECT:

The central idea of the project is to understand the products , services and
process of business banking at ING.The core objective to improve SME access to
finance (including term finance), and business development services, thereby
fostering growth, competitiveness and employment creation that are key to
achieving economic growth.

The products of business banking at ING are broadly classified as:

1) Fund Based Limits: The funds are actually being provided to the customer for
business purposes i.e. actual money is involved. These are:

a) Cash Credit (CC limit) : ING’s Cash Credit facility provides a credit line
which helps the client meet short- term funding needs, such as increasing
inventory, dealing with seasonal cash flow issues, or taking advantage of the
unexpected opportunities. The client pays interest only on the amount utilized.

b) Business Term Loan: Term Loan is designed to provide credit facility to

meet the capital extensive expenditure of the client for Expansion/ Diversification/
Modernization/ Up gradation of technology/ Establishment.

c) Trade Finance: This tool helps in dealing with the complexities of Global
Trade. It facilitates financing the purchase, manufacturing or packaging of goods
prior to shipment/ post shipment credit to the clients from the date of shipment of
goods to the date of realization of the export proceedings.

2) Non-Fund Based Limits: The credit facilities given by the banks where actual
bank funds are not involved. These are:

a) Bank Guarantee:

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The bank guarantees the performance/ financial commitments of the clients and
undertakes to pay his liabilities, in the event of any default on his part. The
guarantees are well received in both domestic and international markets.

b) Letter of Credit:

When dealing with unfamiliar suppliers, the client can be certain that the payment
will not be made until the receipt of documents compliant with LC terms. While at
the same time the supplier can be assured of payment of the goods sent by him.

The project would also incorporate the process involved in sanction of these type
of limits from the actual proposal for the loan to the final disbursement of it. Some
of the documentations required are:

. Initial information report (application form) of the client

. Nature of business and the type requirement
. Internal analysis such as eligibility criteria’s
. External analysis being done on basis of last three year balance sheet, 6 months
A/c statements
. Security which includes primary, collateral and secondary.
. CIBIL report
. Stock statements on regular basis to find out drawing power

The project also aims at finding out the point of difference in the products being
offered by ING. The comparative study will be done with other banks which
include a nationalized bank, private bank and a foreign bank.

OBJECTIVES OF THE PROJECT:

Primary Objectives:

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 The following are the other objectives of the study undertaken:
• To understand the product and services being offered by ING for
business banking purposes for SME’s only.
• To study the whole process of business banking from initial proposal
to disbursement.
• To compare the products being offered by ING for business banking
and other banks.

Suggestive Objective:
To offer suggestions and recommendations based on the study
undertaken to the bank

METHODOLOGY:

. Conceptual understanding of the service from the company guide.

. Case samples drawn from the population on the basis of credit limit and time
horizon

• Reading the respective circulars for individual offering.

• Going through existing client reports and statements.

• Practically preparing new reports and analyzing forthcoming statements.

• Client visit

• Visiting the other banks for the purpose of comparison.

LIMITATIONS OF THE STUDY:

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The various limitations of the study are:

• Assessment of data:
The study has been undertaken by students possessing limited skills. It is
an arduous task to comprehend the vast amount of financial data and use
relevant information for the purpose of studying the given problem. High
levels of understanding of the various aspects of finance were called for
which is limited.

• Time constraints:
The project had to be undertaken in a specific time duration (i.e, only 14
weeks) which did not permit an analysis for quarterly and monthly basis
which are better indicators of performance of any company.

• Resource constraints:
The study is undertaken with limited resources and authority as it is
conducted by students.

REFERENCES:

Books referred: Legal Business Environment (ICMR)

www.google.com
www.ingvysyabank.com
www.investopedia.com