Ing Vysya Bank Limited

ING VYSYA BANK LIMITED (Originally incorporated as The Vysya Bank Limited on March 29, 1930 under the Mysore Companies Regulation, 1917 with its registered office at 489, Avenue Road, Bangalore City. Subsequently, the registered office was shifted to No. 72, St. Marks Road, Bangalore 560001. The name was changed to ING Vysya Bank Limited on December 7, 2002. On August 20, 2003 the registered office was shifted to ING Vysya House, No. 22, M.G.Road, Bangalore 560001, India) Registered and Corporate Office: ING Vysya House, No. 22, M.G.Road, Bangalore 560001, India Tel: (+91 80) 2500 5000 Fax: (+91 80) 2500 5555 E-mail: [email protected]; Website: www.ingvysyabank.com For private circulation to the Equity Shareholders of the Bank only LETTER OF OFFER ISSUE OF 6,82,40,214 EQUITY SHARES OF Rs. 10/- EACH AT A PREMIUM OF RS. 35/- PER SHARE AGGREGATING RS. 3,07,08,09,630 TO THE EQUITY SHAREHOLDERS ON RIGHTS BASIS IN THE RATIO OF 3 EQUITY SHARES FOR EVERY 1 EQUITY SHARE HELD ON FEBRUARY 28, 2005 ( i.e.THE RECORD DATE). THE ISSUE PRICE IS 4.5 TIMES OF THE FACE VALUE OF THE EQUITY SHARES GENERAL RISKS Investments in equity and equity related securities involve a degree of risk and Investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue. For taking an investment decision, Investors must rely on their own examination of the Issuer and the Issue including the risks involved. The securities have not been recommended or approved by the Securities and Exchange Board of India (SEBI) nor does SEBI guarantee the accuracy or adequacy of this document. Investors are advised to refer to “Risk Factors” on page iv of this Letter of Offer before making an investment in this Issue. ISSUER’S ABSOLUTE RESPONSIBILITY The Issuer, having made all reasonable inquiries, accepts responsibility for and confirms that this Letter of Offer contains all information with regard to the Issuer and the Issue, which is material in the context of this Issue, that the information contained in this Letter of Offer is true and correct in all material respects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Letter of Offer as a whole or any such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The existing Equity Shares of the Bank are listed on The Stock Exchange, Mumbai, The National Stock Exchange of India Limited (Designated Stock Exchange) and the Bangalore Stock Exchange. The Bank has received “in- principle” approvals from The Stock Exchange, Mumbai, The National Stock Exchange of India Limited and the Bangalore Stock Exchange for listing the Equity Shares arising from this Issue vide letters dated January 25,2005, January 17, 2005 and January 27,2005, respectively. LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE Enam Financial Consultants Private Limited Karvy Computershare Private Limited ENAM 801/802, Dalamal Towers, “Karvy House”; 46, Avenue 4, Street No. 1 Nariman Point, Mumbai 400021 Banjara Hills, Hyderabad 500 034 Tel: +91 22 5638 1800 TEL: +91 40 2331 2454 Fax: +91 22 2284 6824 FAX: +91 40 2331 1968 Email: [email protected] EMAIL: [email protected] ISSUE PROGRAMME ISSUE OPENS ON LAST DATE FOR REQUEST FOR ISSUE CLOSES ON SPLIT APPLICATION FORMS MARCH 15, 2005 MARCH 30, 2005 APRIL 13, 2005 CONTENTS ABBREVIATIONS AND TECHNICAL TERMS ........................................................................................................................ i RISK FACTORS ........................................................................................................................................................................ iv GENERAL INFORMATION ...................................................................................................................................................... 1 CAPITAL STRUCTURE............................................................................................................................................................ 7 TERMS OF THE ISSUE ........................................................................................................................................................... 13 OBJECTS OF THE ISSUE ....................................................................................................................................................... 24 INDIAN BANKING INDUSTRY ................................................................................................................................................ 25 BUSINESS OF THE BANK ...................................................................................................................................................... 32 HISTORY OF THE BANK AND OTHER CORPORATE MATTERS ...................................................................................... 55 MANAGEMENT......................................................................................................................................................................... 61 PROMOTERS ........................................................................................................................................................................... 73 SUBSIDIARY ............................................................................................................................................................................ 75 GROUP COMPANIES .............................................................................................................................................................. 76 FINANCIAL STATEMENTS ...................................................................................................................................................... 94 STATEMENT OF TAX BENEFITS ........................................................................................................................................... 136 MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION .......... 160 STOCK MARKET DATA FOR EQUITY SHARES OF THE BANK......................................................................................... 163 BASIS FOR ISSUE PRICE ...................................................................................................................................................... 165 PROMISE VERSUS PERFORMANCE ................................................................................................................................... 167 REGULATIONS AND POLICIES ............................................................................................................................................. 169 GOVERNMENT APPROVALS ................................................................................................................................................. 180 OUTSTANDING LITIGATIONS AND DEFAULTS ................................................................................................................... 182 MATERIAL DEVELOPMENTS ................................................................................................................................................. 208 STATUTORY AND OTHER INFORMATION ........................................................................................................................... 209 MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION ..................................................................................... 213 DECLARATION ......................................................................................................................................................................... 214 ABBREVIATIONS AND TECHNICAL TERMS In this Letter of Offer, the terms “we”, “us”, “our” or “the Bank”, unless the context otherwise implies, refer to ING Vysya Bank Limited. All references to “Rs.” refer to Rupees, the lawful currency of India, “USD” or “US$” refer to the United States Dollar, the lawful currency of the United States of America, references to the singular also refers to the plural and one gender also refer to any other gender, wherever applicable, and the words “Lakh” or “Lac” mean “one hundred thousand” and the word “million” means “ten lakh” and the word “crore” means “ten million” or “one hundred lakhs” and the word “billion” means “1,000 million” or “one hundred crores”. Any discrepancies in any table between total and the sums of the amount listed are due to rounding off. General Terms and Abbreviations Act The Companies Act, 1956 and amendments thereto Articles Articles of Association of the Bank Auditor BSR & Co. (earlier known as Bharat S. Raut & Co.), Chartered Accountants, KPMG House, 20/2, Vittal Mallya Road, Bangalore 560 001. AGM Annual General Meeting BgSE Bangalore Stock Exchange Board or Board of Directors Board of Directors of ING Vysya Bank Limited BR Act The Banking Regulation Act, 1949 and amendments thereto BSE The Stock Exchange, Mumbai Capital or Share Capital Share Capital of the Bank CDSL Central Depository Services (India) Limited DICGC Act, 1961 Deposits Insurance and Credit Guarantee Corporation Act, 1961 DP Depository Participant Equity Share(s) or Share(s) means the Equity Share of the Bank having a face value of Rs. 10/- Equity Shareholder means a holder of Equity Shares ESOS Employee

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